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, 2015
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, 2015 and 2014 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 2014 Annual Report on Form 10-K.

 
Three Months Ended March 31
(Dollars in millions, except per share information; shares in thousands)
2015
 
2014
Earnings (loss) per common share
 
 
 
Net income (loss)
$
3,357

 
$
(276
)
Preferred stock dividends
(382
)
 
(238
)
Net income (loss) applicable to common shareholders
$
2,975

 
$
(514
)
Average common shares issued and outstanding
10,518,790

 
10,560,518

Earnings (loss) per common share
$
0.28

 
$
(0.05
)
 
 
 
 
Diluted earnings (loss) per common share
 
 
 
Net income (loss) applicable to common shareholders
$
2,975

 
$
(514
)
Add preferred stock dividends due to assumed conversions
75

 
—

Net income (loss) allocated to common shareholders
$
3,050

 
$
(514
)
Average common shares issued and outstanding
10,518,790

 
10,560,518

Dilutive potential common shares (1)
747,721

 
—

Total diluted average common shares issued and outstanding
11,266,511

 
10,560,518

Diluted earnings (loss) per common share
$
0.27

 
$
(0.05
)
(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 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, 2015, the 700 million average dilutive potential common shares were included in the diluted share count under the "if-converted" method. For the three months ended March 31, 2014, the 700 million average dilutive potential common shares 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, 2015 and 2014, 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, 2015 and 2014, average options to purchase 73 million and 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. For the three months ended March 31, 2015 and 2014, average warrants to purchase 122 million and 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. For the three months ended March 31, 2015, average warrants to purchase 150 million shares of common stock were included in the diluted EPS calculation using the treasury stock method.