Earnings Per Common Share

6 Months Ended

Jun. 30, 2024

Earnings per Common Share

The following table provides the basic and diluted earnings per common share computations for the three and six months ended June 30, 2024 and 2023.

Table 20.1 – Basic and Diluted Earnings per Common Share


	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands, except Share Data)	2024		2023		2024		2023
Basic Earnings per Common Share:
Net income available to common stockholders	$	13,777	$	1,115	$	42,289	$	4,316
Less: Dividends and undistributed earnings allocated to participating securities	(985)		(876)		(2,028)		(2,280)
Net income available to common stockholders	$	12,792	$	239	$	40,261	$	2,036
Basic weighted average common shares outstanding	132,115,854		114,051,017		131,843,100		113,830,347
Basic Earnings per Common Share	$	0.10	$	—	$	0.31	$	0.02
Diluted Earnings per Common Share:
Net income available to common stockholders	$	13,777	$	1,115	$	42,289	$	4,316
Less: Dividends and undistributed earnings allocated to participating securities	(985)		(876)		(2,028)		(2,280)

Net income available to common stockholders	$	12,792	$	239	$	40,261	$	2,036
Weighted average common shares outstanding	132,115,854		114,051,017		131,843,100		113,830,347
Net effect of dilutive equity awards	7,848		394,245		3,924		424,945
Net effect of assumed convertible notes conversion to common shares	—		—		—		—
Diluted weighted average common shares outstanding	132,123,702		114,445,262		131,847,024		114,255,292
Diluted Earnings per Common Share	$	0.10	$	—	$	0.31	$	0.02

We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances.

During the three and six months ended June 30, 2024 and 2023, none of our convertible notes were determined to be dilutive and were not included in the calculation of diluted EPS under the "if-converted" method. Under this method, for convertible and exchangeable notes due in 2024 and 2025, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. For convertible notes due in 2027, if the potential conversion of the debt is dilutive, then the number of shares needed to settle the conversion premium are added to the shares outstanding used to calculate dilutive EPS.

During the three and six months ended June 30, 2024, none of our Warrants were determined to be dilutive to our calculation of dilutive earnings per common share. The warrants would have a dilutive effect on earnings per common share to the extent that the Warrants are vested and exercisable, and the market value per share of our common stock exceeds the strike price of the Warrants.

For the three and six months ended June 30, 2024, 34,537,361 and 35,105,457 of common shares, respectively, related to the assumed conversion of our convertible notes, were antidilutive and were excluded in the calculation of diluted earnings per share. For the three and six months ended June 30, 2023, 44,712,499 and 45,509,857 of common shares, respectively, related to the assumed conversion of our convertible notes, were antidilutive and were excluded in the calculation of diluted earnings per share. For the three and six months ended June 30, 2024, the number of outstanding equity awards that were antidilutive totaled 20,376 and 42,537 common shares, respectively. For the three and six months ended June 30, 2023, the number of outstanding equity awards that were antidilutive totaled 27,408 and 55,882 common shares, respectively.