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, 2020

The calculation of EPS and diluted EPS for 2020, 2019 and 2018 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)	2020		2019		2018
Earnings per common share
Net income	$	17,894	$	27,430	$	28,147
Preferred stock dividends	(1,421)		(1,432)		(1,451)
Net income applicable to common shareholders	$	16,473	$	25,998	$	26,696


Average common shares issued and outstanding	8,753.2		9,390.5		10,096.5
Earnings per common share	$	1.88	$	2.77	$	2.64

Diluted earnings per common share

Net income applicable to common shareholders	$	16,473	$	25,998	$	26,696


Average common shares issued and outstanding	8,753.2		9,390.5		10,096.5
Dilutive potential common shares (1)	43.7		52.4		140.4
Total diluted average common shares issued and outstanding	8,796.9		9,442.9		10,236.9
Diluted earnings per common share	$	1.87	$	2.75	$	2.61

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

For 2020, 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 2018, average options to purchase four 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 2019 and 2018, average warrants to purchase three million and 136 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.