Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Common Share

Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

NOTE 13 – Earnings Per Common Share

The calculation of earnings per common share (EPS) and diluted EPS for both the three and six months ended June 30, 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 June 30						Six Months Ended June 30
(Dollars in millions, except per share information; shares in thousands)	2015			2014			2015			2014
Earnings per common share
Net income	$	5,320		$	2,291		$	8,677		$	2,015
Preferred stock dividends	(330		)	(256		)	(712		)	(494		)
Net income applicable to common shareholders	$	4,990		$	2,035		$	7,965		$	1,521
Average common shares issued and outstanding	10,488,137			10,519,359			10,503,379			10,539,769
Earnings per common share	$	0.48		$	0.19		$	0.76		$	0.14

Diluted earnings per common share
Net income applicable to common shareholders	$	4,990		$	2,035		$	7,965		$	1,521
Add preferred stock dividends due to assumed conversions	75			75			150			—
Net income allocated to common shareholders	$	5,065		$	2,110		$	8,115		$	1,521
Average common shares issued and outstanding	10,488,137			10,519,359			10,503,379			10,539,769
Dilutive potential common shares ⁽¹⁾	749,923			745,764			749,038			59,872
Total diluted average common shares issued and outstanding	11,238,060			11,265,123			11,252,417			10,599,641
Diluted earnings per common share	$	0.45		$	0.19		$	0.72		$	0.14


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

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 and six months ended June 30, 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 June 30, 2014, the 700 million average dilutive potential common shares were included in the diluted share count under the "if-converted" method. For the six months ended June 30, 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 both the three and six months ended June 30, 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 and six months ended June 30, 2015, average options to purchase 64 million and 68 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 89 million and 95 million for the same periods in 2014. For both the three and six months ended June 30, 2015 and 2014, average warrants to purchase 122 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 and average warrants to purchase 150 million shares of common stock were included in the diluted EPS calculation using the treasury stock method.