NOTE 27 – Earnings Per Share (“EPS”)

Basic EPS is computed by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Diluted earnings per share include dilutive stock options and stock units under the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2025, 2024, and 2023 (in thousands, except per share data):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net income

 

$

683,779

 

 

$

731,379

 

 

$

522,536

 

Preferred dividends

 

 

37,281

 

 

 

37,281

 

 

 

37,281

 

Net income available to common shareholders

 

$

646,498

 

 

$

694,098

 

 

$

485,255

 

Shares for basic and diluted calculation:

 

 

 

 

 

 

 

 

 

Average shares used in basic computation

 

 

103,497

 

 

 

104,066

 

 

 

106,661

 

Dilutive effect of stock options and units (1)

 

 

6,555

 

 

 

6,909

 

 

 

6,792

 

Average shares used in diluted computation

 

 

110,052

 

 

 

110,975

 

 

 

113,453

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

6.25

 

 

$

6.67

 

 

$

4.55

 

Diluted

 

$

5.87

 

 

$

6.25

 

 

$

4.28

 

(1)
Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Diluted earnings per share include units.

For the years ended December 31, 2025, 2024, and 2023, the anti-dilutive effect from restricted stock units was immaterial.

Cash Dividends

During the year ended December 31, 2025, we declared and paid cash dividends of $1.84 per common share. During the year ended December 31, 2024, we declared and paid cash dividends of $1.68 per common share. During the year ended December 31, 2023, we declared and paid cash dividends of $1.44 per common share.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 19, 2020
2018Feb 20, 2019
2017Feb 26, 2018
2016Feb 23, 2017
2015Mar 1, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.