Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2024

EARNINGS PER SHARE (“EPS”)

Earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding equity awards or convertible notes. Diluted EPS reflects the potential dilution that could occur if stock options, convertible notes, employee stock purchase program (“ESPP”) shares, or other contracts to issue common stock were exercised or converted to common stock that would then share in earnings. For the years ended December 31, 2024, 2023, and 2022, stock options and restricted share awards of 494,883, 866,959, and 693,668 shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were anti-dilutive.

In 2018, the Company issued $217.5 million in convertible senior notes maturing on May 15, 2038, of which $444 thousand remained outstanding at December 31, 2024. The convertible notes can be converted into the Company’s shares of common stock at an initial rate of 45.0760 shares per $1,000 principal amount of the notes (See Note 10 “Convertible Notes and Subordinated Debentures” for additional information regarding convertible notes issued). For the years ended December 31, 2024, 2023, and 2022, shares related to the convertible notes issued were not included in the Company’s diluted EPS calculation. In accordance with the terms of the convertible notes and settlement options available to the Company, no shares would have been delivered to investors of the convertible notes upon assumed conversion based on the Company’s common stock price during the years ended December 31, 2024, 2023, and 2022 as the conversion price exceeded the market price of the Company’s stock.

In January 2022, the Company’s Board of Directors approved a share repurchase program that authorizes the Company to repurchase $50.0 million of its common stock. During the year ended December 31, 2022, the Company repurchased 1,038,986 shares of common stock totaling $14.7 million. During the years ended December 31, 2023 and 2024, the Company did not repurchase any shares of common stock as part of the share repurchase program.

The following table presents the computation of basic and diluted EPS for the years ended December 31, 2024, 2023, and 2022.


	Net Income (Numerator)		Weighted-Average Shares (Denominator)	Earnings Per Share
	(Dollars in thousands, except share and per share data)
2024
Basic EPS - common stock	$	99,630	120,583,147	$	0.83
Effect of dilutive securities:
Stock options and restricted stock			525,447
Diluted EPS - common stock	$	99,630	121,108,594	$	0.82

2023
Basic EPS - common stock	$	133,673	119,906,109	$	1.11
Effect of dilutive securities:
Stock options and restricted stock			487,148
Diluted EPS - common stock	$	133,673	120,393,257	$	1.11

2022
Basic EPS - common stock	$	218,277	119,824,970	$	1.82
Effect of dilutive securities:
Stock options, restricted stock, and ESPP shares			647,375
Diluted EPS - common stock	$	218,277	120,472,345	$	1.81