Stockholders' Equity

9 Months Ended

Sep. 30, 2018

Common Stock

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the nine months ended September 30, 2018 and the year ended December 31, 2017:



	September 30, 2018	December 31, 2017
Balance, beginning of period	125,131,593	116,416,900
Issuance of common stock	20,395	8,395,607
Nonvested share-based awards, net of withheld shares	85,196	319,086
Balance, end of period	125,237,184	125,131,593

At-The-Market Equity Offering Program

No shares were sold under the Company's At-the-Market Equity Offering Program during the nine months ended September 30, 2018. The Company had 5,868,697 authorized shares remaining available to be sold under the current sales agreements as of October 26, 2018.

Common Stock Dividends

During the nine months ended September 30, 2018, the Company declared and paid common stock dividends totaling $0.90 per share. On October 30, 2018, the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on November 30, 2018 to stockholders of record on November 15, 2018.

Accumulated Other Comprehensive Income (Loss)

As of September 30, 2018, the Company had four outstanding interest rate swaps to hedge the variable cash flows associated with existing variable-rate debt. The Company continues to amortize the 2015 settlement of forward-starting interest rate swaps that were entered into in connection with the issuance of the Company's Senior Notes due 2025. This amount will be reclassified out of OCI impacting net income over the 10-year term of the associated senior note issuance. See Note 4 for more information regarding the Company's derivative instruments.

The following table represents the changes in balances of each component and the amounts reclassified out of OCI related to the Company during the nine months ended September 30, 2018 and 2017:



	Forward-starting Interest Rate Swaps
(Dollars in thousands)	2018			2017
Beginning balance	$	(1,299	)	$	(1,401	)
Gains arising during the period related to active interest rate swaps	1,403			—
Amounts reclassified from accumulated other comprehensive (income) loss	369			127
Net accumulated other comprehensive income	1,772			127
Ending balance	$	473		$	(1,274	)

The following table represents the details regarding the reclassifications from OCI during the nine months ended September 30, 2018:



Details about accumulated other comprehensive income (loss) components	Amount reclassified from accumulated other comprehensive income (loss)		Affected line item in the statement where net income is presented
(Dollars in thousands)
Amounts reclassified from accumulated other comprehensive income (loss) related to settled interest rate swaps	$	126	Interest Expense
Amounts reclassified from accumulated other comprehensive income (loss) related to current interest rate swaps	243		Interest Expense
	$	369

Earnings Per Common Share

The Company uses the two-class method of computing net earnings per common shares. The Company's nonvested share-based awards are considered participating securities pursuant to the two-class method. The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017.



	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2018			2017			2018			2017
Weighted average Common Shares outstanding
Weighted average Common Shares outstanding	125,233,462			120,895,835			125,206,342			117,981,159
Nonvested shares	(1,933,653		)	(1,797,686		)	(1,925,589		)	(1,800,180		)
Weighted average Common Shares outstanding—Basic	123,299,809			119,098,149			123,280,753			116,180,979
Weighted average Common Shares outstanding—Basic	123,299,809			119,098,149			123,280,753			116,180,979
Dilutive effect of employee stock purchase plan	52,147			83,242			54,763			96,260
Weighted average Common Shares outstanding—Diluted	123,351,956			119,181,391			123,335,516			116,277,239
Net Income	$	6,548		$	3,173		$	53,456		$	60,243
Dividends paid on nonvested share-based awards	(580		)	(538		)	(1,740		)	(1,609		)
Net income applicable to common stockholders	$	5,968		$	2,635		$	51,716		$	58,634
Basic earnings per common share - Net income	$	0.05		$	0.02		$	0.42		$	0.50
Diluted earnings per common share - Net income	$	0.05		$	0.02		$	0.42		$	0.50

Incentive Plans

A summary of the activity under the Company's share-based incentive plans for the three and nine months ended September 30, 2018 and 2017 is included in the table below.



	Three Months Ended September 30,			Nine Months Ended September 30,
	2018		2017	2018		2017
Share-based awards, beginning of period	1,938,100		1,797,686	1,907,645		1,786,497
Granted	—		—	107,751		103,615
Vested	(5,051	)	—	(82,347	)	(92,426	)
Share-based awards, end of period	1,933,049		1,797,686	1,933,049		1,797,686

During the nine months ended September 30, 2018 and 2017, the Company withheld 22,555 and 16,581 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested.

In addition to the share-based incentive plans, the Company maintains the 2000 Employee Stock Purchase Plan (the "Purchase Plan"). A summary of the activity under the Purchase Plan for the three and nine months ended September 30, 2018 and 2017 is included in the table below.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Outstanding and exercisable, beginning of period	350,535		344,572		318,100		316,321
Granted	—		—		203,836		206,824
Exercised	(2,531	)	(5,452	)	(13,236	)	(24,482	)
Forfeited	(9,583	)	(9,291	)	(34,489	)	(36,524	)
Expired	—		—		(135,790	)	(132,310	)
Outstanding and exercisable, end of period	338,421		329,829		338,421		329,829