Earnings Per Common Share

3 Months Ended

Mar. 31, 2020


NOTE 7. EARNINGS PER COMMON SHARE

The following is an analysis of People’s United’s basic and diluted earnings per common share (“EPS”), reflecting the application of the two-class method, as described below:


	Three Months Ended March 31,
(in millions, except per common share data)	2020		2019
Net income available to common shareholders	$	126.9	$	111.1
Dividends paid on and undistributed earnings allocated to participating securities	—		—
Earnings attributable to common shareholders	$	126.9	$	111.1
Weighted average common shares outstanding for basic EPS	427.2		370.7
Effect of dilutive equity-based awards	2.6		3.4
Weighted average common shares and common-equivalent shares for diluted EPS	429.8		374.1
EPS:
Basic	$	0.30	$	0.30
Diluted	0.30		0.30

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including People’s United, are required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by People’s United prior to 2017 are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

All unallocated ESOP common shares and all common shares accounted for as treasury shares have been excluded from the calculation of basic and diluted EPS. Anti-dilutive equity-based awards totaling 12.9 million shares and 7.2 million shares for the three months ended March 31, 2020 and 2019, respectively, have also been excluded from the calculation of diluted EPS.