Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Common Share

v3.19.1
Earnings Per Common Share
 3 Months Ended
Mar. 31, 2019
Earnings Per Share [Abstract]  
Earnings Per Common Share Earnings Per Common Share
The calculation of earnings per common share (EPS) and diluted EPS for the three months ended March 31, 2019 and 2018 is presented below. For more information on the calculation of EPS, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.
 
 
 
 
 
Three Months Ended March 31
 
(In millions, except per share information)
2019
 
2018
Earnings per common share
 

 
 

Net income
$
7,311

 
$
6,918

Preferred stock dividends
(442
)
 
(428
)
Net income applicable to common shareholders
$
6,869

 
$
6,490

Average common shares issued and outstanding
9,725.9

 
10,322.4

Earnings per common share
$
0.71

 
$
0.63

 
 
 
 
Diluted earnings per common share
 

 
 

Net income applicable to common shareholders
$
6,869

 
$
6,490

Average common shares issued and outstanding
9,725.9

 
10,322.4

Dilutive potential common shares (1)
61.4

 
150.3

Total diluted average common shares issued and outstanding
9,787.3

 
10,472.7

Diluted earnings per common share
$
0.70

 
$
0.62

(1) 
Includes incremental dilutive shares from RSUs, restricted stock and warrants.
For both the three months ended March 31, 2019 and 2018, 62 million average dilutive potential common shares associated with the Series L preferred stock were not included in the diluted share count because the result would have been antidilutive under the “if-converted” method. For the three months ended March 31, 2018, average options to purchase seven million shares of common stock were outstanding but not included in the computation of EPS because the result would have been antidilutive under the treasury stock method. For the three months
ended March 31, 2018, average warrants to purchase 122 million shares of common stock were included in the computation of EPS under the treasury stock method. These warrants expired on October 29, 2018. For the three months ended March 31, 2019 and 2018, average warrants to purchase 14 million and 142 million shares of common stock were included in the diluted EPS calculation under the treasury stock method. Substantially all of these warrants were exercised on or before their expiration date of January 16, 2019.