|6 Months Ended|
Jun. 30, 2020
In June 2020, the Board of Governors of the Federal Reserve System (Federal Reserve) announced that due to economic uncertainty resulting from COVID-19, all large banks will be required to suspend share repurchase programs in the third quarter of 2020, except for repurchases to offset shares awarded under equity-based compensation plans, and limit dividends to existing rates that do not exceed the average of the last four quarters’ net income.
The Federal Reserve’s directive regarding share repurchases aligns with the Corporation's decision to voluntarily suspend repurchases in the first quarter of 2020 from the date of the announcement on March 15, 2020 through the end of the second quarter of 2020. The suspension of the Corporation's repurchases did not include repurchases to offset shares awarded under its equity-based compensation plans.
During the three and six months ended June 30, 2020, the Corporation repurchased and retired 12 million and 212 million shares of common stock in connection with the Board of Directors' (the Board) 2019 repurchase authorizations, which reduced shareholders’ equity by $286 million and $6.6 billion.
During the six months ended June 30, 2020, in connection with employee stock plans, the Corporation issued 63 million shares of its common stock and, to satisfy tax withholding obligations, repurchased 24 million shares of its common stock. At June 30, 2020, the Corporation had reserved 516 million unissued shares of common stock for future issuances under employee stock plans, convertible notes and preferred stock.
On July 22, 2020 the Board declared a quarterly common stock dividend at the existing rate of $0.18 per share.
During the three months ended March 31, 2020 and June 30, 2020, the Corporation declared $469 million and $249 million of cash dividends on preferred stock, or a total of $718 million for the six months ended June 30, 2020. For more information on the Corporation's preferred stock, including liquidation preference, dividend requirements and redemption period, see Note 14 – Shareholders’ Equity to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef