Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2026

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)	2026		2025
Net income	$	764	$	644
Less:
Preferred stock dividends	(58)		(46)
Dividends and undistributed earnings allocated to participating securities(1)	(1)		(1)
Net income available to common shareholders	$	705	$	597
Average common shares outstanding (In thousands):
Basic average common shares	278,434		288,562
Effect of dilutive securities: equity-based awards	4,440		4,154
Diluted average common shares	282,874		292,716
Anti-dilutive securities(2)	—		—
Earnings per common share:
Basic	$	2.53	$	2.07
Diluted(3)	2.49		2.04

(1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP 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 in Note 18 of the notes to consolidated financial statements in our 2025 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.