Net Income Per Share

3 Months Ended

Mar. 31, 2026

Basic and diluted earnings or loss per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s Restricted Stock Awards (“RSA”) are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term.

The computation of diluted EPS includes additional common shares, such as unvested Restricted Stock Units (“RSU”) and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2026 and 2025 (in thousands, except for earnings per share):


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income available to common shareholders	$	123,870	$	114,595

Denominator:
Basic weighted-average common shares outstanding	28,445		30,387
Effect of diluted shares	517		809
Diluted weighted-average common shares outstanding	28,962		31,196

Earnings per common share:
Net income per common share—Basic	$	4.35	$	3.77
Net income per common share—Diluted	$	4.28	$	3.67

For the three months ended March 31, 2026 and 2025, the computation of diluted EPS excludes the effect of (in thousands) 0.5 and 80.1 stock options, respectively, due to each respective period’s average fair value of the Company’s common stock not exceeding the exercise prices.