Earnings Per Share

12 Months Ended

Dec. 31, 2022

The computations of basic and diluted earnings per common share were as follows:

Table 8.15.1

EARNINGS PER SHARE COMPUTATIONS


(Dollars in millions, except per share data; shares in thousands)	2022		2021		2020
Net income	$	912	$	1,010	$	857
Net income attributable to noncontrolling interest	12		11		12
Net income attributable to controlling interest	900		999		845
Preferred stock dividends	32		37		23
Net income available to common shareholders	868		962		822

Weighted average common shares outstanding—basic	535,033		546,354		432,125
Effect of dilutive restricted stock, performance equity awards and options	7,830		4,887		1,592
Effect of dilutive convertible preferred stock (a)	23,141		—		—
Weighted average common shares outstanding—diluted	566,004		551,241		433,717

Basic earnings per common share	$	1.62	$	1.76	$	1.90
Diluted earnings per common share	$	1.53	$	1.74	$	1.89

(a) On February 28, 2022, FHN issued $494 million of Series G Convertible Preferred Stock, which is convertible into common stock upon completion of the Pending TD Merger or the termination of the TD Merger Agreement. For more information on the convertible features, including the conversion rate, see Note 11 - Preferred Stock.

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher

than the weighted-average market price for the period) or the performance conditions have not been met:

Table 8.15.2

ANTI-DILUTIVE EQUITY AWARDS


(Shares in thousands)	2022		2021		2020
Stock options excluded from the calculation of diluted EPS	29		1,366		4,595
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	25.64	$	20.44	$	17.47
Other equity awards excluded from the calculation of diluted EPS	144		1,531		3,639