NOTE 16. Earnings Per Share

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

 

 

 

Year Ended December 31,

 

(in thousands, except per share amounts)

 

2025

 

 

2024

 

 

2023

 

Numerator for earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

 

330,062

 

 

$

 

288,864

 

 

$

 

213,157

 

Preferred stock dividends

 

 

 

(29,138

)

 

 

 

 

 

 

 

 

Net income attributable to preferred stockholders

 

 

 

(30,773

)

 

 

 

 

 

 

 

 

Income attributable to common stockholders for basic earnings per share(1)

 

$

 

270,151

 

 

$

 

288,864

 

 

$

 

213,157

 

Allocation adjustment to income attributable to preferred stockholders(2)

 

 

 

358

 

 

 

 

 

 

 

 

 

Income attributable to common stockholders for diluted earnings per share

 

$

 

270,509

 

 

$

 

288,864

 

 

$

 

213,157

 

Denominator for earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic: Weighted average number of shares outstanding

 

 

 

65,439

 

 

 

 

64,607

 

 

 

 

66,202

 

Plus: Incremental shares from assumed conversion of dilutive instruments

 

 

 

937

 

 

 

 

1,321

 

 

 

 

2,012

 

Diluted: Weighted average number of shares outstanding

 

 

 

66,376

 

 

 

 

65,928

 

 

 

 

68,214

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

 

4.13

 

 

$

 

4.47

 

 

$

 

3.22

 

Diluted:

 

$

 

4.08

 

 

$

 

4.38

 

 

$

 

3.12

 

 

(1)
Under the two-class method, total dividends provided to and undistributed earnings allocated to the preferred stockholders are subtracted from net income in determining income attributable to common stockholders.
(2)
This amount reflects the impact of reversing undistributed earnings allocated to preferred stockholders in the basic earnings per share calculation and reallocating undistributed earnings to preferred stockholders and common stockholders including the impact of dilutive instruments.

 

Outstanding instruments excluded from the computation of weighted average shares for diluted earnings per share because the effect would be anti-dilutive were de minimis for the years ended December 31, 2025, 2024 and 2023. Holders of non-vested share-based compensation awards do not have rights to receive nonforfeitable dividends on the shares covered by the awards.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Mar 6, 2023
2021Mar 14, 2022
2020Mar 15, 2021
2019Mar 13, 2020
2018Mar 15, 2019
2017Mar 29, 2018

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.