Earnings Per Common Share

6 Months Ended

Jun. 30, 2021

For additional information on our earnings per share calculation methodologies, refer to pages 181 to 182 in Note 23 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2020 Form 10-K.

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)	2021		2020		2021		2020
Net income	$	763	$	694	$	1,282	$	1,328
Less:
Preferred stock dividends	(34)		(32)		(64)		(85)
Dividends and undistributed earnings allocated to participating securities(1)	(1)		—		(1)		(1)
Net income available to common shareholders	$	728	$	662	$	1,217	$	1,242
Average common shares outstanding (In thousands):
Basic average common shares	345,889		352,157		348,303		352,952
Effect of dilutive securities: equity-based awards	5,693		4,256		5,131		4,076
Diluted average common shares	351,582		356,413		353,434		357,028
Anti-dilutive securities(2)	176		2,989		192		1,580
Earnings per common share:
Basic	$	2.11	$	1.88	$	3.49	$	3.52
Diluted(3)	2.07		1.86		3.44		3.48

(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 176 and 177 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2020 Form 10-K.

(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.