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12. Capital Stock and Earnings Per Share (OMH Only) |
CAPITAL STOCK
OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors (the “Board”) and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.
Par value and shares authorized at December 31, 2025 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | OMH | | OMFC |
| | Preferred Stock * | | Common Stock | | Special Stock * | | Common Stock |
| | | | | | | | |
| Par value | | $ | 0.01 | | | $ | 0.01 | | | $ | — | | | $ | 0.50 | |
| Shares authorized | | 300,000,000 | | | 2,000,000,000 | | | 25,000,000 | | | 25,000,000 | |
* No shares of OMH preferred stock or OMFC special stock were issued and outstanding at December 31, 2025 or 2024.
Changes in OMH shares of common stock issued and outstanding were as follows: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| At or for the Years Ended December 31, | | | | | | 2025 | | 2024 | | 2023 |
| | | | | | | | | | |
| Balance at beginning of period | | | | | | 119,360,509 | | | 119,757,277 | | | 121,042,125 | |
| Common shares issued | | | | | | 290,803 | | | 279,812 | | | 285,480 | |
| | | | | | | | | | |
Common shares repurchased | | | | | | (2,528,390) | | | (755,274) | | | (1,651,717) | |
| Treasury stock issued | | | | | | 73,870 | | | 78,694 | | | 81,389 | |
| Balance at end of period | | | | | | 117,196,792 | | | 119,360,509 | | | 119,757,277 | |
OMFC shares issued and outstanding were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Special Stock | | Common Stock |
| | 2025 | | 2024 | | 2025 | | 2024 |
| | | | | | | | |
| Shares issued and outstanding | | — | | | — | | | 10,160,021 | | | 10,160,021 | |
EARNINGS PER SHARE (OMH ONLY)
The computation of earnings per share was as follows: | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share data) | | | | | | | | | | |
| | | | | | |
| Years Ended December 31, | | | | | | 2025 | | 2024 | | 2023 |
| | | | | | | | | | |
| Numerator (basic and diluted): | | | | | | | | | | |
| Net income | | | | | | $ | 783 | | | $ | 509 | | | $ | 641 | |
| Denominator: | | | | | | | | | | |
| Weighted average number of shares outstanding (basic) | | | | | | 118,664,220 | | | 119,659,278 | | | 120,382,227 | |
| Effect of dilutive securities * | | | | | | 604,336 | | | 460,705 | | | 247,363 | |
| Weighted average number of shares outstanding (diluted) | | | | | | 119,268,556 | | | 120,119,983 | | | 120,629,590 | |
| Earnings per share: | | | | | | | | | | |
| Basic | | | | | | $ | 6.59 | | | $ | 4.26 | | | $ | 5.33 | |
| Diluted | | | | | | $ | 6.56 | | | $ | 4.24 | | | $ | 5.32 | |
* We have excluded weighted-average unvested restricted stock units totaling 501,400, 667,918, and 1,048,970 for 2025, 2024, and 2023, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future.
Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units (“RSUs”).