Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Common Share

Earnings Per Common Share

6 Months Ended

Jun. 30, 2019

The calculation of earnings per common share (EPS) and diluted EPS for the three and six months ended June 30, 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 June 30						Six Months Ended June 30
(In millions, except per share information)	2019			2018			2019			2018
Earnings per common share
Net income	$	7,348		$	6,784		$	14,659		$	13,702
Preferred stock dividends	(239		)	(318		)	(681		)	(746		)
Net income applicable to common shareholders	$	7,109		$	6,466		$	13,978		$	12,956
Average common shares issued and outstanding	9,523.2			10,181.7			9,624.0			10,251.7
Earnings per common share	$	0.75		$	0.64		$	1.45		$	1.26

Diluted earnings per common share
Net income applicable to common shareholders	$	7,109		$	6,466		$	13,978		$	12,956
Average common shares issued and outstanding	9,523.2			10,181.7			9,624.0			10,251.7
Dilutive potential common shares ⁽¹⁾	36.4			127.7			48.4			138.2
Total diluted average common shares issued and outstanding	9,559.6			10,309.4			9,672.4			10,389.9
Diluted earnings per common share	$	0.74		$	0.63		$	1.45		$	1.25


⁽¹⁾	Includes incremental dilutive shares from restricted stock units, restricted stock and warrants.

For both the three and six months ended June 30, 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 and six months ended June 30, 2018, average options to purchase three million and six 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 both the three and six months ended June 30, 2018, average

warrants to purchase 122 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. These warrants expired on October 29, 2018. For the three and six months ended June 30, 2018, average warrants to purchase 140 million and 141 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.