Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2019

Computation of Basic and Diluted Earnings Per Share

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



	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions, except per share amounts)	2019			2018			2019			2018
Net income	$	587		$	733		$	1,095		$	1,392
Less:
Preferred stock dividends	(50		)	(36		)	(105		)	(91		)
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	—			—			(1		)	(1		)
Net income available to common shareholders	$	537		$	697		$	989		$	1,300
Average common shares outstanding (In thousands):
Basic average common shares	373,773			365,619			375,832			366,524
Effect of dilutive securities: equity-based awards	3,804			4,791			3,633			4,891
Diluted average common shares	377,577			370,410			379,465			371,415
Anti-dilutive securities⁽²⁾	3,345			1,206			2,665			2
Earnings per common share:
Basic	$	1.44		$	1.91		$	2.63		$	3.55
Diluted⁽³⁾	1.42			1.88			2.61			3.50

⁽¹⁾Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

⁽²⁾Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 72 to 74 in Note 18 to the consolidated financial statements in the 2018 Annual Financial Statements.

⁽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.