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Stockholders' Equity
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Stockholders' equity Stockholders' Equity
Common Stock    
The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2020 and the year ended December 31, 2019:
 
JUNE 30, 2020

DECEMBER 31, 2019

Balance, beginning of period
134,706,154

125,279,455

Issuance of common stock
1,286,743

9,251,440

Nonvested share-based awards, net of withheld shares
55,274

175,259

Balance, end of period
136,048,171

134,706,154



At-The-Market Equity Offering Program
On February 14, 2020, the Company entered into sales agreements with six investment banks to allow sales under its at-the-market equity offering program of up to an aggregate of $500.0 million of common stock. The Company sold 1,268,237 shares under the Company's at-the market equity offering program during the six months ended June 30, 2020. The sales generated $39.9 million in net proceeds at prices to the public ranging from $30.50 to $36.15 per share (weighted average of $31.86 per share). The sales occurred during the following time periods:
•
During the first quarter of 2020, the Company sold 196,250 shares under the Company's at-the-market equity offering program generating approximately $7.0 million in net proceeds at prices to the public ranging from $33.00 to $36.15 per share (weighted average of $36.09 per share).
•
During the second quarter of 2020, the Company sold 1,071,987 shares under the Company's at-the-market equity offering program generating approximately $32.9 million in net proceeds at prices to the public ranging from $30.50 to $31.29 per share (weighted average of $31.08 per share).
In addition, the Company entered into two forward equity agreements:
•
In the second quarter of 2020, the Company entered into a forward equity agreement for a total of 1,579,371 shares at an aggregate price of $31.66 per share, subject to adjustments as provided in the forward equity agreements. This agreement matures in June 2021.
•
In July 2020, the Company entered into an additional forward equity agreement for a total of 764,472 shares at an aggregate price of $31.84 per share, subject to adjustments as provided in the forward equity agreements. This agreement matures in July 2021.
Including the forward equity contracts discussed above, the Company has approximately $385.3 million remaining available to be sold under the current sales agreements at the date of this filing.
Common Stock Dividends
During the six months ended June 30, 2020, the Company declared and paid common stock dividends totaling $0.60 per share. On August 4, 2020, the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on August 31, 2020 to stockholders of record on August 17, 2020.
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.
In June 2020, the Company entered into a forward sale agreement pursuant to a forward equity arrangement to sell approximately 1.6 million shares of common stock through the Company's at-the-market equity offering program.
The Company considered the accounting guidance governing financial instruments and derivatives to account for this agreement and concluded that it was not a liability as it did not embody obligations to repurchase our shares of common stock nor did it embody obligations to issue a variable number of shares for which the monetary value was predominately fixed, varying with something other than the fair value of the shares or varying inversely in relation to the shares. In addition, the Company evaluated whether the agreement met the derivative and hedging guidance
scope exception to be accounted for as an equity instrument and concluded that the agreement can be classified as equity.
The Company used the treasury method to determine the dilution from the forward equity agreement during the period of time prior to settlement. The number of weighted-average shares outstanding used in the computation of earnings per common share for the three and six months ended June 30, 2020, included the effect from the assumed issuance of 1.6 million shares of common stock pursuant to the settlement of the forward equity agreements at the contractual price, less the assumed repurchase of the common stock at the average market price using the proceeds of approximately $50.0 million, adjusted for costs to borrow. For the three months ended June 30, 2020, 11,331 weighted-average incremental shares of common stock were excluded from the computation of weighted-average common shares outstanding - diluted, as the impact was anti-dilutive.
The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2020 and 2019.
 
THREE MONTHS ENDED JUNE 30,
SIX MONTHS ENDED JUNE 30,
Dollars in thousands, except per share data
2020

2019

2020

2019

Weighted average common shares outstanding
 
 
 
 
Weighted average common shares outstanding
135,367,081

129,228,102

135,062,708

127,577,389

Non-vested shares
(1,733,435
)
(1,778,648
)
(1,727,762
)
(1,778,674
)
Weighted average common shares outstanding - basic
133,633,646

127,449,454

133,334,946

125,798,715

 
 
 
 
 
Weighted average common shares outstanding - basic
133,633,646

127,449,454

133,334,946

125,798,715

Dilutive effect of forward equity shares
—

—

2,149

—

Dilutive effect of employee stock purchase plan
62,266

75,153

83,217

90,640

Weighted average common shares outstanding - diluted
133,695,912

127,524,607

133,420,312

125,889,355

 
 
 
 
 
Net Income
$
75,513

$
4,484

$
79,828

$
9,375

Dividends paid on nonvested share-based awards
(521
)
(534
)
(1,039
)
(1,070
)
Net income applicable to common stockholders
$
74,992

$
3,950

$
78,789

$
8,305

 
 
 
 
 
Basic earnings per common share - net income
$
0.56

$
0.03

$
0.59

$
0.07

Diluted earnings per common share - net income
$
0.56

$
0.03

$
0.59

$
0.07



Incentive Plans
A summary of the activity under the Company's share-based incentive plans for the three and six months ended June 30, 2020 and 2019 is included in the table below.
 
THREE MONTHS ENDED JUNE 30,
SIX MONTHS ENDED JUNE 30,
 
2020

2019

2020

2019

Share-based awards, beginning of period
1,724,761

1,784,127

1,754,066

1,769,863

Granted
39,493

24,996

78,837

89,767

Vested
(24,996
)
(30,989
)
(93,645
)
(81,496
)
Share-based awards, end of period
1,739,258

1,778,134

1,739,258

1,778,134


During the six months ended June 30, 2020 and 2019, the Company withheld 23,563 and 19,546 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 six months ended June 30, 2020 and 2019 is included in the table below.
 
THREE MONTHS ENDED JUNE 30,
SIX MONTHS ENDED JUNE 30,
 
2020

2019

2020

2019

Outstanding and exercisable, beginning of period
370,696

390,776

332,659

328,533

Granted
—

—

212,716

235,572

Exercised
(2,463
)
(4,386
)
(14,367
)
(19,016
)
Forfeited
(6,514
)
(23,172
)
(29,495
)
(39,797
)
Expired
—

—

(139,794
)
(142,074
)
Outstanding and exercisable, end of period
361,719

363,218

361,719

363,218