Earnings Per Share

3 Months Ended

Dec. 31, 2022

EARNINGS PER SHAREBasic earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. For purposes of computing earnings per share amounts, outstanding shares include shares held by the public, shares held by the ESOP that have been allocated to participants or committed to be released for allocation to participants, and the 227,119,132 shares held by Third Federal Savings, MHC. For purposes of computing dilutive earnings per share, stock options and restricted and performance share units with a dilutive impact are added to the outstanding shares used in the basic earnings per share calculation. Unvested shares awarded pursuant to the Company's restricted stock plans are treated as participating securities in the computation of EPS pursuant to the two-class method as they contain nonforfeitable rights to dividends. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. Performance share units, determined to be contingently issuable and not participating securities, are excluded from the calculation of basic EPS. At December 31,

2022 and 2021, respectively, the ESOP held 3,033,376 and 3,466,716 shares, respectively, that were neither allocated to participants nor committed to be released to participants.

The following is a summary of the Company's earnings per share calculations.


	For the Three Months Ended December 31,
	2022					2021
	Income		Shares	Per share amount		Income		Shares	Per share amount
	(Dollars in thousands, except per share data)
Net income	$	22,193				$	16,140
Less: income allocated to restricted stock units	389					369
Basic earnings per share:
Income available to common shareholders	$	21,804	277,320,904	$	0.08	$	15,771	277,225,121	$	0.06
Diluted earnings per share:
Effect of dilutive potential common shares			1,142,033					1,678,252
Income available to common shareholders	$	21,804	278,462,937	$	0.08	$	15,771	278,903,373	$	0.06

The following is a summary of outstanding stock options and restricted and performance share units that are excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive.


	For the Three Months Ended December 31,
		2022	2021
Options to purchase shares		2,043,575	133,800
Restricted and performance stock units		40,000	—