Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Common Share

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Earnings Per Common Share
 3 Months Ended
Mar. 31, 2014
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 months ended March 31, 2014 and 2013 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 2013 Annual Report on Form 10-K.

 
Three Months Ended March 31
(Dollars in millions, except per share information; shares in thousands)
2014
 
2013
Earnings (loss) per common share
 
 
 
Net income (loss)
$
(276
)
 
$
1,483

Preferred stock dividends
(238
)
 
(373
)
Net income (loss) applicable to common shareholders
$
(514
)
 
$
1,110

Average common shares issued and outstanding
10,560,518

 
10,798,975

Earnings (loss) per common share
$
(0.05
)
 
$
0.10

 
 
 
 
Diluted earnings (loss) per common share
 
 
 
Net income (loss) applicable to common shareholders
$
(514
)
 
$
1,110

Average common shares issued and outstanding
10,560,518

 
10,798,975

Dilutive potential common shares (1)
—

 
355,803

Total diluted average common shares issued and outstanding
10,560,518

 
11,154,778

Diluted earnings (loss) per common share
$
(0.05
)
 
$
0.10

(1) 
Includes incremental dilutive shares from restricted stock units, restricted stock, stock options and warrants. There were no potential common shares that are dilutive for the three months ended March 31, 2014 because of the net loss.

The Corporation previously issued a warrant to purchase 700 million shares of the Corporation's common stock to the holder of the Corporation's 6% Cumulative Perpetual Preferred Stock, Series T (the Series T Preferred Stock). The warrant may be exercised, at the option of the holder, through tendering the Series T Preferred Stock or paying cash. For the three months ended March 31, 2014, 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 March 31, 2013, the impact of the 700 million average dilutive potential common shares was included in the diluted share count under the treasury stock method, as it was more advantageous for the holder to tender cash to exercise the warrant.

For both the three months ended March 31, 2014 and 2013, 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. For the three months ended March 31, 2014, average options to purchase 101 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 compared to 135 million for the same period in 2013. For both the three months ended March 31, 2014 and 2013, average warrants to purchase 272 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.