Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

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)	2022		2021		2022		2021
Net income	$	747	$	763	$	1,351	$	1,282
Less:
Preferred stock dividends	(35)		(34)		(55)		(64)
Dividends and undistributed earnings allocated to participating securities(1)	—		(1)		(1)		(1)
Net income available to common shareholders	$	712	$	728	$	1,295	$	1,217
Average common shares outstanding (In thousands):
Basic average common shares	367,375		345,889		366,961		348,303
Effect of dilutive securities: equity-based awards	4,748		5,693		5,119		5,131
Diluted average common shares	372,123		351,582		372,080		353,434
Anti-dilutive securities(2)	1,990		176		741		192
Earnings per common share:
Basic	$	1.94	$	2.11	$	3.53	$	3.49
Diluted(3)	1.91		2.07		3.48		3.44

(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 173 and 175 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2021 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.