Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Common Share

 v2.3.0.11
Earnings Per Common Share
 6 Months Ended
Jun. 30, 2011
Earnings Per Common Share [Abstract]  
Earnings Per Common Share
NOTE 14 – Earnings Per Common Share
     The calculation of earnings per common share (EPS) and diluted EPS for the three and six months ended June 30, 2011 and 2010 is presented below. See Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2010 Annual Report on Form 10-K for additional information on the calculation of EPS.
                                 
    Three Months Ended June 30   Six Months Ended June 30
(Dollars in millions, except per share information; shares in thousands)   2011   2010   2011   2010
 
Earnings (loss) per common share
                               
Net income (loss)
  $ (8,826 )   $ 3,123     $ (6,777 )   $ 6,305  
Preferred stock dividends
    (301 )     (340 )     (611 )     (688 )
 
Net income (loss) applicable to common shareholders
  $ (9,127 )   $ 2,783     $ (7,388 )   $ 5,617  
Dividends and undistributed earnings allocated to participating securities
    -       (42 )     (1 )     (286 )
 
Net income (loss) allocated to common shareholders
  $ (9,127 )   $ 2,741     $ (7,389 )   $ 5,331  
 
Average common shares issued and outstanding
    10,094,928       9,956,773       10,085,479       9,570,166  
 
Earnings (loss) per common share
  $ (0.90 )   $ 0.28     $ (0.73 )   $ 0.56  
 
 
                               
Diluted earnings (loss) per common share
                               
Net income (loss) applicable to common shareholders
  $ (9,127 )   $ 2,783     $ (7,388 )   $ 5,617  
Dividends and undistributed earnings allocated to participating securities
    -       (42 )     (1 )     (79 )
 
Net income (loss) allocated to common shareholders
  $ (9,127 )   $ 2,741     $ (7,389 )   $ 5,538  
 
Average common shares issued and outstanding
    10,094,928       9,956,773       10,085,479       9,570,166  
Dilutive potential common shares (1)
    -       73,003       -       450,760  
 
Total diluted average common shares issued and outstanding
    10,094,928       10,029,776       10,085,479       10,020,926  
 
Diluted earnings (loss) per common share
  $ (0.90 )   $ 0.27     $ (0.73 )   $ 0.55  
 
(1)  
Includes incremental shares from RSUs, restricted stock shares, stock options and warrants.
     Due to the net loss for the three and six months ended June 30, 2011, no dilutive potential common shares were included in the calculations of diluted EPS because they would have been antidilutive.
     For the three and six months ended June 30, 2011, average options to purchase 215 million and 223 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 269 million and 277 million for the same periods in 2010. For both the three and six months ended June 30, 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 compared to 122 million for the same periods in 2010. For both the three and six months ended June 30, 2011, 67 million average dilutive potential common shares associated with the 7.25% Non-cumulative Perpetual Convertible Preferred Stock, Series L (Series L Preferred Stock) were excluded from the diluted share count because the result would have been antidilutive under the “if-converted” method. For both the three and six months ended June 30, 2010, 117 million average dilutive potential common shares associated with the Series L Preferred Stock and the Merrill Lynch & Co., Inc. Mandatory Convertible Preferred Stock Series 2 and Series 3 were excluded from the diluted share count because the result would have been antidilutive under the “if-converted” method. For purposes of computing basic EPS, Common Equivalent Securities were considered to be participating securities prior to February 24, 2010.