Stockholders' Equity

3 Months Ended

Mar. 31, 2022

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 three months ended March 31, 2022 and the twelve months ended December 31, 2021:

	THREE MONTHS ENDED	TWELVE MONTHS ENDED
	MARCH 31, 2022	DECEMBER 31, 2021
Balance, beginning of period	150,457,433	139,487,375
Issuance of common stock	740,818	10,899,301
Non-vested share-based awards, net of withheld shares	407,161	70,757
Balance, end of period	151,605,412	150,457,433

At-The-Market Equity Offering Program

On August 6, 2021 and November 5, 2021, the Company entered into equity distribution agreements with 12 investment banks to allow for issuance and sale under its at-the-market equity offering program of up to an aggregate of $750.0 million of common stock. The following table details the Company's forward at-the-market activity:

	WEIGHTED AVERAGE SALE PRICE per share		FORWARD SHARE CONTRACTS	SHARES SETTLED	SHARES REMAINING TO BE SETTLED	NET PROCEEDS in millions
Balance at December 31, 2021	$	—	—	—	727,400	$	—
1Q 2022	$	31.73	—	727,400	—	$	22.3

The Company has approximately $686.0 million remaining available to be sold under the current equity distribution agreements at the date of this report.

Common Stock Dividends

During the three months ended March 31, 2022, the Company declared and paid common stock dividends totaling $0.31 per share. On May 3, 2022, the Company declared a quarterly common stock dividend in the amount of $0.31 per share payable on May 27, 2022 to stockholders of record on May 16, 2022.

Earnings Per Common Share

The Company uses the two-class method of computing net earnings per common shares. The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method.

During the three months ended March 31, 2022, the Company did not enter into any forward sale agreements to sell shares of common stock through the Company's at-the market equity offering program.

The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021.

	THREE MONTHS ENDED MARCH 31,
Dollars in thousands, except per share data	2022		2021
Weighted average common shares outstanding
Weighted average common shares outstanding	150,834,888		140,567,352
Non-vested shares	(1,871,858)		(1,793,598)
Weighted average common shares outstanding - basic	148,963,030		138,773,754
Weighted average common shares outstanding - basic	148,963,030		138,773,754
Dilutive effect of employee stock purchase plan	88,234		97,064
Weighted average common shares outstanding - diluted	149,051,264		138,870,818
Net Income	$	42,227	$	24,022
Dividends paid on nonvested share-based awards	(605)		(540)
Net income applicable to common stockholders	$	41,622	$	23,482
Basic earnings per common share - net income	$	0.28	$	0.17
Diluted earnings per common share - net income	$	0.28	$	0.17

Incentive Plans

Restricted Common Shares

During the three months ended March 31, 2022, the Company made the following stock awards:

•On January 1, 2022, the Company granted non-vested stock awards to certain officers with a grant date fair value of $0.5 million, which consisted of an aggregate of 17,381 non-vested shares through its salary deferral program.

•On January 3, 2022, the Company granted non-vested stock awards to its named executive officers, and certain other members of senior management and employees, with a grant date fair value of $7.9 million, which consisted of an aggregate of 249,689 non-vested shares, with a five-year vesting period.

•On February 7, 2022, the Company granted a non-vested stock award to a new employee, which consisted of 1,980 non-vested shares.

•On February 22, 2022, the Company granted a performance-based award to its named executive officers, senior vice presidents, and first vice presidents with a grant date fair value of $3.9 million, which consisted of an aggregate of 126,930 non-vested shares with a five-year vesting period.

•On February 22, 2022, the Company granted a performance-based award to its officers, excluding its named executive officers, senior vice presidents, and first vice presidents, with a grant date fair value of $0.6 million, which consisted of an aggregate of 19,204 non-vested shares with vesting periods ranging from three to eight years.

A summary of the activity under the Company's share-based incentive plans for the three months ended March 31, 2022 and 2021 is included in the table below.

	THREE MONTHS ENDED MARCH 31,
	2022	2021
Share-based awards, beginning of period	1,562,028	1,766,061
Granted	415,184	165,723
Vested	(24,365)	(145,413)
Forfeited	(1,296)	—
Share-based awards, end of period	1,951,551	1,786,371

Restricted Stock Units

Prior to 2022, the Company granted long-term incentive awards, comprised of restricted stock, based on backward-looking performance measured at the end of the calendar year. The Company adopted a new incentive compensation structure effective January 2022, comprised of restricted stock and restricted stock units ("RSUs"). The RSUs are granted at the beginning of the year with three-year forward-looking performance targets.

On January 3, 2022, the Company granted restricted stock units to its named executive officers, and certain other members of senior management and officers, with a grant date fair value of $9.7 million, which consisted of an aggregate 294,932 RSUs with a five-year vesting period.

Approximately 43% of the RSUs vest based on two market performance conditions. Relative and absolute total shareholder return ("TSR") awards containing these market performance conditions were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair values of $30.56 for the absolute TSR component and $41.30 for the relative TSR component for the January 2022 grant using the following assumptions:

	THREE MONTHS ENDED MARCH 31,
Volatility	30.0	%
Dividend assumption	Accrued
Expected term in years	3 years
Risk-free rate	1.02	%
Stock price (per share)	$31.68

The remaining 57% of the restricted stock units vest upon certain operating performance conditions. With respect to the operating performance conditions of the January grant, the grant date fair value was $31.68 based on the Company's share price on the date of grant. The combined weighted average grant date fair value of the January restricted stock units was $33.04 per share.

The following is a summary of the RSU activity during the three months ended March 31, 2022:

	THREE MONTHS ENDED MARCH 31,
	Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested as of December 31, 2021	—	—
Granted	294,932	$	33.04
Vested	—	—
Non-vested as of March 31, 2022	294,932

During the three months ended March 31, 2022 and 2021, the Company withheld 6,727 and 50,240 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 Employee Stock Purchase Plan. A summary of the activity under the Purchase Plan for the three months ended March 31, 2022 and 2021 is included in the table below.

	THREE MONTHS ENDED MARCH 31,
	2022	2021
Outstanding and exercisable, beginning of period	348,514	341,647
Granted	255,960	253,200
Exercised	(10,553)	(15,965)
Forfeited	(25,486)	(19,161)
Expired	(140,633)	(144,422)
Outstanding and exercisable, end of period	427,802	415,299