Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

Basic Earnings Per Common Share is calculated by dividing net income, less income allocated to participating securities, by the weighted average number of common shares outstanding during the period, excluding unvested shares of restricted stock. For the Company, participating securities include unvested shares of restricted stock. Diluted Earnings Per Common Share is computed by assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. For the periods presented, the Company’s potentially dilutive common stock issuances related to unvested shares of restricted stock and stock option grants under the Company’s equity-based plans, as well as contingently issuable shares.

In computing Diluted Earnings Per Common Share, adjustments are made to the computation of Basic Earnings Per Common shares, as follows. As it relates to unvested shares of restricted stock, the number of shares added to the denominator is equal to the total number of weighted average unvested shares outstanding. As it relates to stock options, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period. The difference between the number of shares assumed to be exercised and the number of shares bought back is included in the calculation of dilutive securities.

As it relates to contingently issuable shares, the number of shares that are included in the calculation of dilutive securities is based on the weighted average number of shares that would have been issuable if the end of the reporting period were the end of the contingency period. If any of the potentially dilutive common stock issuances have an anti-dilutive effect, the potentially dilutive common stock issuance is disregarded.

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share:


	For the Three Months Ended September 30,
	2020					2019
($ in thousands except per share amounts)	Per Share Amount		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	23,297				$	25,019
Less: income allocated to participating securities	(67)					(119)
Basic EPS per common share	$	23,230	28,857,111	$	0.81	$	24,900	29,542,001	$	0.84

Diluted EPS:
Net income	$	23,297	28,857,111			$	25,019	29,542,001
Effect of Dilutive Securities	—		82,907			—		142,104
Diluted EPS per common share	$	23,297	28,940,018	$	0.81	$	25,019	29,684,105	$	0.84


	For the Nine Months Ended September 30,
	2020					2019
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	57,829				$	71,163
Less: income allocated to participating securities	$	(279)				$	(329)
Basic EPS per common share	$	57,550	28,962,576	$	1.99	$	70,834	29,585,383	$	2.39

Diluted EPS:
Net income	$	57,829	28,962,576			$	71,163	29,585,383
Effect of Dilutive Securities	—		140,377			—		174,076
Diluted EPS per common share	$	57,829	29,102,953	$	1.99	$	71,163	29,759,459	$	2.39

There were no antidilutive options for any of the periods presented.