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

9 Months Ended

Sep. 30, 2011

NOTE 14 – Earnings Per Common Share

The calculation of earnings per common share (EPS) and diluted EPS for the three and nine months ended September 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 September 30						Nine Months Ended September 30
(Dollars in millions, except per share information; shares in thousands)	2011			2010			2011			2010
Earnings (loss) per common share
Net income (loss)	$	6,232		$	(7,299	)	$	(545	)	$	(994	)
Preferred stock dividends	(343		)	(348		)	(954		)	(1,036		)
Net income (loss) applicable to common shareholders	$	5,889		$	(7,647	)	$	(1,499	)	$	(2,030	)
Dividends and undistributed earnings allocated to participating securities	(30		)	(1		)	(1		)	(3		)
Net income (loss) allocated to common shareholders	$	5,859		$	(7,648	)	$	(1,500	)	$	(2,033	)
Average common shares issued and outstanding	10,116,284			9,976,351			10,095,859			9,706,951
Earnings (loss) per common share	$	0.58		$	(0.77	)	$	(0.15	)	$	(0.21	)

Diluted earnings (loss) per common share
Net income (loss) applicable to common shareholders	$	5,922		$	(7,647	)	$	(1,499	)	$	(2,030	)
Dividends and undistributed earnings allocated to participating securities	(29		)	(1		)	(1		)	(3		)
Net income (loss) allocated to common shareholders	$	5,893		$	(7,648	)	$	(1,500	)	$	(2,033	)
Average common shares issued and outstanding	10,116,284			9,976,351			10,095,859			9,706,951
Dilutive potential common shares ⁽¹⁾	348,111			—			—			—
Total diluted average common shares issued and outstanding	10,464,395			9,976,351			10,095,859			9,706,951
Diluted earnings (loss) per common share	$	0.56		$	(0.77	)	$	(0.15	)	$	(0.21	)


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

Due to the net loss for the nine months ended September 30, 2011, no dilutive potential common shares were included in the calculation of diluted EPS because they would have been antidilutive.

For the three and nine months ended September 30, 2011, average options to purchase 213 million and 219 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 265 million and 273 million for the same periods in 2010. For the three and nine months ended September 30, 2011 and 2010, 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. For both the three and nine months ended September 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 nine months ended September 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 the three months ended September 30, 2011, 228 million average dilutive potential common shares associated with the Series T Preferred Stock were included in the computation of diluted EPS. For the nine months ended September 30, 2011, 77 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 purposes of computing basic EPS, Common Equivalent Securities were considered to be participating securities prior to February 24, 2010.