Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31,
(Dollars in millions, except per share amounts)	2024		2023
Net income	$	463	$	549
Less:
Preferred stock dividends	(45)		(23)
Dividends and undistributed earnings allocated to participating securities(1)	—		(1)
Net income available to common shareholders	$	418	$	525
Average common shares outstanding (In thousands):
Basic average common shares	301,991		341,106
Effect of dilutive securities: equity-based awards	3,952		4,366
Diluted average common shares	305,943		345,472
Anti-dilutive securities(2)	1,329		23
Earnings per common share:
Basic	$	1.38	$	1.54
Diluted(3)	1.37		1.52

(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 171 to 173 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2023 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.