Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Common Share

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Earnings Per Common Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Common Share
NOTE 13 – Earnings Per Common Share

The calculation of earnings per common share (EPS) and diluted EPS for the three and nine months ended September 30, 2012 and 2011 is presented below. See Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation's 2011 Annual Report on Form 10-K for additional information on the calculation of EPS.

 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions, except per share information; shares in thousands)
2012
 
2011
 
2012

2011
Earnings (loss) per common share
 
 
 
 
 
 
 
Net income (loss)
$
340

 
$
6,232

 
$
3,456

 
$
(545
)
Preferred stock dividends
(373
)
 
(343
)
 
(1,063
)
 
(954
)
Net income (loss) applicable to common shareholders
$
(33
)
 
$
5,889

 
$
2,393

 
$
(1,499
)
Dividends and undistributed earnings allocated to participating securities
—

 
(30
)
 
(2
)
 
(1
)
Net income (loss) allocated to common shareholders
$
(33
)
 
$
5,859

 
$
2,391

 
$
(1,500
)
Average common shares issued and outstanding
10,776,173

 
10,116,284

 
10,735,461

 
10,095,859

Earnings (loss) per common share
$
0.00

 
$
0.58

 
$
0.22

 
$
(0.15
)
 
 
 
 
 
 
 
 
Diluted earnings (loss) per common share
 
 
 
 
 
 
 
Net income (loss) applicable to common shareholders
$
(33
)
 
$
5,922

 
$
2,393

 
$
(1,499
)
Dividends and undistributed earnings allocated to participating securities
—

 
(29
)
 
(2
)
 
(1
)
Net income (loss) allocated to common shareholders
$
(33
)
 
$
5,893

 
$
2,391

 
$
(1,500
)
Average common shares issued and outstanding
10,776,173

 
10,116,284

 
10,735,461

 
10,095,859

Dilutive potential common shares (1)
—

 
348,111

 
91,042

 
—

Total diluted average common shares issued and outstanding
10,776,173

 
10,464,395

 
10,826,503

 
10,095,859

Diluted earnings (loss) per common share
$
0.00

 
$
0.56

 
$
0.22

 
$
(0.15
)
(1) 
Includes incremental shares from RSUs, restricted stock, stock options and warrants.

Due to the net loss applicable to common shareholders for the three months ended September 30, 2012 and the nine months ended September 30, 2011, no dilutive potential common shares were included in the calculation of diluted EPS because they would have been antidilutive.

For the three and nine months ended September 30, 2012, average options to purchase 159 million and 166 million shares of common stock were outstanding but not included in the computation of EPS because they were antidilutive under the treasury stock method compared to 213 million and 219 million for the same periods in 2011. For both the three and nine months ended September 30, 2012 and 2011, average warrants to purchase 272 million shares of common stock were outstanding but not included in the computation of EPS because they were antidilutive under the treasury stock method. For both the three and nine months ended September 30, 2012, 62 million average dilutive potential common shares associated with the 7.25% Non-cumulative Perpetual Convertible Preferred Stock, Series L were not included in the diluted share count because the result would have been antidilutive under the “if-converted” method compared to 67 million for the same periods in 2011. For both the three and nine months ended September 30, 2012, 700 million average dilutive potential common shares associated with the Series T 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 September 30, 2011, 228 million average dilutive potential common shares associated with the Series T Preferred Stock were included in the computation of diluted EPS. For the nine months ended September 30, 2011, 77 million average dilutive potential common shares associated with the Series T Preferred Stock were not included in the diluted share count because the result would have been antidilutive under the "if-converted" method.