Earnings Per Share

3 Months Ended

Mar. 31, 2024

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


EARNINGS PER SHARE COMPUTATIONS
	Three Months Ended March 31,
(Dollars in millions, except per share data; shares in thousands)	2024		2023
Net income	$	197	$	255
Net income attributable to noncontrolling interest	5		4
Net income attributable to controlling interest	192		251
Preferred stock dividends	8		8
Net income available to common shareholders	$	184	$	243

Weighted average common shares outstanding—basic	554,977		536,938
Effect of dilutive restricted stock, performance equity awards and options	2,896		7,541
Effect of dilutive convertible preferred stock (a)	—		27,512
Weighted average common shares outstanding—diluted	557,873		571,991

Basic earnings per common share	$	0.33	$	0.45
Diluted earnings per common share	$	0.33	$	0.43

(a) On February 28, 2022, FHN issued $494 million of Series G Convertible Preferred Stock, which was converted into common stock on June 26, 2023, following the termination of the TD Merger Agreement. Conversion occurred at the rate of 4,000 common shares per Series G preferred share resulting in 19,742,776 additional common shares outstanding. 2023 includes the impact of the Series G preferred shares based on the original maximum conversion rate (prior to the termination of the TD Merger Agreement).

The following table presents average 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:


ANTI-DILUTIVE EQUITY AWARDS
	Three Months Ended March 31,
(Shares in thousands)	2024		2023
Stock options excluded from the calculation of diluted EPS	1,652		—
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	16.53	$	24.36
Other equity awards excluded from the calculation of diluted EPS	8,382		3,803