Bank of America Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Common Share

Earnings Per Common Share

12 Months Ended

Dec. 31, 2019

The calculation of EPS and diluted EPS for 2019, 2018 and 2017 is presented below. For more information on the calculation of EPS, see Note 1 – Summary of Significant Accounting Principles.




(In millions, except per share information)	2019			2018			2017
Earnings per common share
Net income	$	27,430		$	28,147		$	18,232
Preferred stock dividends	(1,432		)	(1,451		)	(1,614		)
Net income applicable to common shareholders	$	25,998		$	26,696		$	16,618
Average common shares issued and outstanding	9,390.5			10,096.5			10,195.6
Earnings per common share	$	2.77		$	2.64		$	1.63

Diluted earnings per common share
Net income applicable to common shareholders	$	25,998		$	26,696		$	16,618
Add preferred stock dividends due to assumed conversions ⁽¹⁾	—			—			186
Net income allocated to common shareholders	$	25,998		$	26,696		$	16,804
Average common shares issued and outstanding	9,390.5			10,096.5			10,195.6
Dilutive potential common shares ⁽²⁾	52.4			140.4			582.8
Total diluted average common shares issued and outstanding	9,442.9			10,236.9			10,778.4
Diluted earnings per common share	$	2.75		$	2.61		$	1.56


⁽¹⁾	Represents the Series T dividends under the "If-converted" method prior to conversion.


⁽²⁾	Includes incremental dilutive shares from RSUs, restricted stock and warrants.

For 2019, 2018 and 2017, 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 2018 and 2017, average options to purchase four million and 21 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 2017, 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 2019, 2018 and 2017, average warrants to purchase three million, 136 million and 143 million shares of common stock, respectively, 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.