Earnings Per Share

9 Months Ended

Sep. 30, 2019

The Company calculates basic earnings per common share by dividing net income attributable to the Company's common stockholders for the period by weighted-average shares of common stock outstanding for that period. Diluted earnings per common share takes into account the effect of dilutive instruments, such as convertible notes and performance stock units, and the number of incremental shares that are to be added to the weighted-average number of shares outstanding.

During the three and nine months ended September 30, 2019 and 2018, the Company's Convertible Notes were determined to be dilutive and were included in the calculation of diluted earnings per common share under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the 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.

During the three and nine months ended September 30, 2019 and 2018, performance stock units ("PSUs") awarded under the Company's 2017 Equity Incentive Plan (as amended, the "2017 Plan," see Note 18) were determined to be dilutive and were included in the calculation of diluted earnings per common share under the treasury stock method. Under this method, common equivalent shares are calculated assuming that target PSUs vest according to the PSU award agreements ("PSU Agreements") and unrecognized compensation cost is used to repurchase shares of the Company’s outstanding common stock at the average market price during the reported period.

The following table presents the computation of basic and diluted earnings per common share for the periods indicated (dollar and share amounts in thousands, except per share amounts):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Basic Earnings per Common Share
Net income attributable to Company	$	41,379		$	33,973		$	108,254		$	93,285
Less: Preferred stock dividends	(6,544		)	(5,925		)	(18,726		)	(17,775		)
Net income attributable to Company's common stockholders	$	34,835		$	28,048		$	89,528		$	75,510
Basic weighted average common shares outstanding	234,043			132,413			203,270			119,955
Basic Earnings per Common Share	$	0.15		$	0.21		$	0.44		$	0.63

Diluted Earnings per Common Share:
Net income attributable to Company	$	41,379		$	33,973		$	108,254		$	93,285
Less: Preferred stock dividends	(6,544		)	(5,925		)	(18,726		)	(17,775		)
Add back: Interest expense on convertible notes for the period, net of tax	2,674			2,570			7,981			7,838
Net income attributable to Company's common stockholders	$	37,509		$	30,618		$	97,509		$	83,348
Weighted average common shares outstanding	234,043			132,413			203,270			119,955
Net effect of assumed convertible notes conversion to common shares	19,694			19,694			19,694			19,694
Net effect of assumed PSUs vested	1,800			620			1,781			395
Diluted weighted average common shares outstanding	255,537			152,727			224,745			140,044
Diluted Earnings per Common Share	$	0.15		$	0.20		$	0.43		$	0.60