Earnings (Loss) Per Common Share and Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Earnings (Loss) Per Common Share and Stockholders' Equity

Earnings (Loss) Per Common Share

The following table sets forth the computation of earnings (loss) per common share and earnings (loss) per common share - assuming dilution:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(Dollars in thousands, except per share data)
Numerator:
Net income (loss) available to common stockholders - numerator for earnings (loss) per common share	$	349,661	$	(65,613)	$	904,965	$	206,152

Denominator:
Weighted average common shares outstanding	92,543,850		94,800,734		94,693,048		95,265,212
Effect of dilutive securities:
Stock options and deferred compensation agreements	487,883		255,426		550,073		218,240
Restricted stock and restricted stock units	343,005		322,503		408,964		311,132
Denominator for earnings (loss) per common share - assuming dilution	93,374,738		95,378,663		95,652,085		95,794,584

Earnings (loss) per common share	$	3.78	$	(0.69)	$	9.56	$	2.16
Earnings (loss) per common share - assuming dilution	$	3.74	$	(0.69)	$	9.46	$	2.15

There were no options to purchase shares of our common stock outstanding excluded from the computation of diluted earnings per common share during the three and six months ended June 30, 2022, as the exercise price of all options outstanding was less than the average market price of our common shares. During the three and six months ended June 30, 2021, there were 182,689 options to purchase shares of our common stock outstanding, with an exercise price of $31.63 - $32.58, excluded from the computation of diluted earnings (loss) per common share.

Stockholders' Equity

On June 10, 2020, we issued 12,000 shares of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B ("Series B") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $290.3 million.

On November 21, 2019 we issued 16,000 shares of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A ("Series A") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $388.9 million.

Dividends on the Series A and Series B preferred stock are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the first day of March, June, September and December of each year, commencing on March 1, 2020 for Series A and on December 1, 2020 for Series B. For the three and six months ended June 30, 2022, we paid dividends totaling $6.0 million and $11.9 million on the Series A preferred stock and $4.9 million and $9.9 million on the Series B preferred stock, respectively. For the three and six months ended June 30, 2021, we paid dividends totaling $6.0 million and $11.9 million on the Series A preferred stock and $4.9 million and $9.9 million on the Series B preferred stock, respectively. The Series A and Series B preferred stock rank senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference. The Series A and Series B preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions.

Brookfield Asset Management Equity Investment

On October 18, 2020, we announced an agreement with Brookfield Asset Management, Inc. and its affiliated entities (collectively, "Brookfield") under which Brookfield would acquire up to a 19.9% ownership interest of common stock in the Company. The equity investment by Brookfield took place in two stages: an initial purchase of a 9.9% equity interest at $37.00 per share which closed on November 30, 2020 with Brookfield purchasing 9,106,042 shares, and a second purchase of an additional 6,775,000 shares which were issued to Brookfield at $37.33 per share in January of 2022 as regulatory approval related to the second equity investment was received in December of 2021. Brookfield also received the right to nominate one candidate for the Company’s Board of Directors following the initial equity investment.

Share Repurchase Program

On October 18, 2020, the Company's Board of Directors approved a $500 million share repurchase program. On November 19, 2021, the Company's Board of Directors authorized the repurchase of an additional $500 million of Company common stock. The purpose of the share repurchase program is to both offset dilution from the issuance of shares to Brookfield and to institute a regular cash return program for shareholders.

From the 2020 inception of the share repurchase program through June 30, 2022, we have repurchased approximately 18.5 million shares of our common stock at an average price of $34.20 per common share, including 9.4 million shares repurchased during the six months ended June 30, 2022. As of June 30, 2022, we had $367 million remaining under our share repurchase program.

Treasury Stock

As of June 30, 2022, we held 19,220,002 shares of treasury stock with a carrying value of $607.1 million. As of December 31, 2021, we held 9,936,715 shares of treasury stock with a carrying value of $260.6 million.