Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

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)	2023		2022		2023		2022
Net income	$	763	$	747	$	1,312	$	1,351
Less:
Preferred stock dividends	(37)		(35)		(60)		(55)
Dividends and undistributed earnings allocated to participating securities(1)	—		—		(1)		(1)
Net income available to common shareholders	$	726	$	712	$	1,251	$	1,295
Average common shares outstanding (In thousands):
Basic average common shares	329,383		367,375		335,212		366,961
Effect of dilutive securities: equity-based awards	4,157		4,748		4,261		5,119
Diluted average common shares	333,540		372,123		339,473		372,080
Anti-dilutive securities(2)	2,282		1,990		1,380		741
Earnings per common share:
Basic	$	2.20	$	1.94	$	3.73	$	3.53
Diluted(3)	2.17		1.91		3.68		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 169 to 171 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2022 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.