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, 2015

NOTE 13 – Earnings Per Common Share

The calculation of earnings per common share (EPS) and diluted EPS for both the three and nine months ended September 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 September 30						Nine Months Ended September 30
(Dollars in millions, except per share information; shares in thousands)	2015			2014			2015			2014
Earnings (loss) per common share
Net income (loss)	$	4,508		$	(232	)	$	13,185		$	1,783
Preferred stock dividends	(441		)	(238		)	(1,153		)	(732		)
Net income (loss) applicable to common shareholders	$	4,067		$	(470	)	$	12,032		$	1,051
Average common shares issued and outstanding	10,444,291			10,515,790			10,483,466			10,531,688
Earnings (loss) per common share	$	0.39		$	(0.04	)	$	1.15		$	0.10

Diluted earnings (loss) per common share
Net income (loss) applicable to common shareholders	$	4,067		$	(470	)	$	12,032		$	1,051
Add preferred stock dividends due to assumed conversions	75			—			225			—
Net income (loss) allocated to common shareholders	$	4,142		$	(470	)	$	12,257		$	1,051
Average common shares issued and outstanding	10,444,291			10,515,790			10,483,466			10,531,688
Dilutive potential common shares ⁽¹⁾	752,912			—			750,659			56,153
Total diluted average common shares issued and outstanding	11,197,203			10,515,790			11,234,125			10,587,841
Diluted earnings (loss) per common share	$	0.37		$	(0.04	)	$	1.09		$	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 September 30, 2014 because of the net loss applicable to common shareholders.

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 nine months ended September 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 and nine months ended September 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 nine months ended September 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 nine months ended September 30, 2015, average options to purchase 64 million and 67 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 88 million and 92 million for the same periods in 2014. For the three and nine months ended September 30, 2015, 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. For the three and nine months ended September 30, 2014, average warrants to purchase 272 million and 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. For the nine months ended September 30, 2014, average warrants to purchase 150 million shares of common stock were included in the diluted EPS calculation using the treasury stock method.