EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2020

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock.

Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the dilutive effect of potential common shares issuable for stock options and restricted shares, as calculated using the treasury stock method. Diluted weighted average common shares for 2019 have also been adjusted for the dilutive effect of potential common shares issuable for warrants, which have all been exercised or forfeited during 2019. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share.

The following table sets forth the computation of basic and diluted earnings per common share:

TABLE 16.1


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions, except per share data)	2020		2019		2020		2019
Net income	$	83	$	103	$	214	$	292
Less: Preferred stock dividends	2		2		6		6
Net income available to common stockholders	$	81	$	101	$	208	$	286
Basic weighted average common shares outstanding	323,379,720		325,031,140		323,642,925		324,875,436
Net effect of dilutive stock options, warrants and restricted stock	2,283,060		1,068,730		2,051,221		893,725
Diluted weighted average common shares outstanding	325,662,780		326,099,870		325,694,146		325,769,161
Earnings per common share:
Basic	$	0.25	$	0.31	$	0.64	$	0.88
Diluted	$	0.25	$	0.31	$	0.64	$	0.88

The following table shows the average shares excluded from the above calculation as their effect would have been anti-dilutive:

TABLE 16.2


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Average shares excluded from the diluted earnings per common share calculation	44,755	1	22,263	122