The following tables present the computation of basic and diluted earnings per common share for the periods indicated:



	Three Months Ended September 30,
(Dollars in millions, except per share amounts)	2014			2013
Net income	$	560		$	540
Less:
Preferred stock dividends	(18		)	(7		)
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	—			(2		)
Net income available to common shareholders	$	542		$	531
Average common shares outstanding (in thousands):
Basic average common shares	421,974			442,860
Effect of dilutive securities: common stock options and common stock awards	7,762			9,294
Diluted average common shares	429,736			452,154
Anti-dilutive securities⁽²⁾	876			1,788
Earnings per Common Share:
Basic	$	1.28		$	1.20
Diluted⁽³⁾	1.26			1.17



	Nine Months Ended September 30,
(Dollars in millions, except per share amounts)	2014			2013
Net income	$	1,545		$	1,583
Less:
Preferred stock dividends	(43		)	(20		)
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	(2		)	(6		)
Net income available to common shareholders	$	1,500		$	1,557
Average common shares outstanding (in thousands):
Basic average common shares	426,775			449,742
Effect of dilutive securities: common stock options and common stock awards	7,735			8,650
Diluted average common shares	434,510			458,392
Anti-dilutive securities⁽²⁾	1,502			2,384
Earnings per Common Share:
Basic	$	3.52		$	3.46
Diluted⁽³⁾	3.45			3.40

⁽¹⁾Represented the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

⁽²⁾Represented common stock options and other equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive.

⁽³⁾Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.