Stockholders' Equity

9 Months Ended

Sep. 30, 2019

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, 2019 and the year ended December 31, 2018:



	September 30, 2019		December 31, 2018
Balance, beginning of period	125,279,455		125,131,593
Issuance of common stock	6,099,012		26,203
Nonvested share-based awards, net of withheld shares ⁽¹⁾	(10,269	)	121,659
Balance, end of period	131,368,198		125,279,455

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(1)	The Company's former Executive Chairman, David R. Emery, died on September 30, 2019 resulting in $2.9 million of expenses associated with the acceleration of his outstanding nonvested share-based awards. In connection with the vesting, 80,490 shares were withheld to pay employee federal income taxes.

Equity Offering

On March 19, 2019, the Company issued 3,737,500 shares of common stock, par value $0.01 per share, at $31.40 per share in an underwritten public offering pursuant to the Company's existing effective registration statement. The net proceeds of the offering, after underwriting discounts and offering expenses, were approximately $115.8 million.

At-The-Market Equity Offering Program

The Company sold 4,694,624 shares under the Company's at-the-market equity offering program from January 1, 2019 through October 31, 2019. The sales generated $153.7 million in net proceeds at prices to the public ranging from $32.01 to $33.77 per share (weighted average of $33.31 per share). The sales occurred during the following time periods:


•	During the first quarter of 2019, the Company sold 135,265 shares generating $4.3 million in net proceeds at prices to the public ranging from $32.01 to $32.86 per share (weighted average of $32.36 per share).


•	No shares were sold in the second quarter of 2019.


•	During the third quarter of 2019, the Company sold 2,191,522 shares generating $71.6 million in net proceeds at prices to the public ranging from $32.62 to $33.77 per share (weighted average of $33.15 per share).


•	During October 2019, the Company sold 2,367,837 shares generating $78.2 million in net proceeds at prices to the public ranging from $33.17 to $33.74 per share (weighted average of $33.52 per share).

The Company had 1,174,073 authorized shares remaining available to be sold under the current sales agreements as of October 31, 2019.

Common Stock Dividends

During the nine months ended September 30, 2019, the Company declared and paid common stock dividends totaling $0.90 per share. On October 29, 2019, the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on November 29, 2019 to stockholders of record on November 14, 2019.

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, 2019 and 2018.



	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2019			2018			2019			2018
Weighted average Common Shares outstanding
Weighted average Common Shares outstanding	129,865,985			125,233,462			128,348,638			125,206,342
Nonvested shares	(1,775,911		)	(1,933,653		)	(1,777,743		)	(1,925,589		)
Weighted average Common Shares outstanding—Basic	128,090,074			123,299,809			126,570,895			123,280,753
Weighted average Common Shares outstanding—Basic	128,090,074			123,299,809			126,570,895			123,280,753
Dilutive effect of employee stock purchase plan	78,610			52,147			85,690			54,763
Weighted average Common Shares outstanding—Diluted	128,168,684			123,351,956			126,656,585			123,335,516
Net Income	$	2,601		$	6,548		$	11,975		$	53,456
Dividends paid on nonvested share-based awards	(534		)	(580		)	(1,603		)	(1,740		)
Net income applicable to common stockholders	$	2,067		$	5,968		$	10,372		$	51,716
Basic earnings per common share - Net income	$	0.02		$	0.05		$	0.08		$	0.42
Diluted earnings per common share - Net income	$	0.02		$	0.05		$	0.08		$	0.42

Incentive Plans

A summary of the activity under the Company's share-based incentive plans for the three and nine months ended September 30, 2019 and 2018 is included in the table below.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Share-based awards, beginning of period	1,778,134		1,938,100		1,769,863		1,907,645
Granted	—		—		89,767		107,751
Vested ⁽¹⁾	(204,548	)	(5,051	)	(286,044	)	(82,347	)
Share-based awards, end of period	1,573,586		1,933,049		1,573,586		1,933,049

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(1)	The Company's former Executive Chairman, David R. Emery, died on September 30, 2019 resulting in the accelerated vesting of 204,548 outstanding nonvested share-based awards.

During the nine months ended September 30, 2019 and 2018, the Company withheld 100,036 and 22,555 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, 2019 and 2018 is included in the table below.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Outstanding and exercisable, beginning of period	363,218		350,535		328,533		318,100
Granted	—		—		235,572		203,836
Exercised	(9,927	)	(2,531	)	(28,943	)	(13,236	)
Forfeited	(11,762	)	(9,583	)	(51,559	)	(34,489	)
Expired	—		—		(142,074	)	(135,790	)
Outstanding and exercisable, end of period	341,529		338,421		341,529		338,421