Earnings Per Common Share

9 Months Ended

Sep. 30, 2021

For the three and nine months ended September 30, 2021, the Company had voting and nonvoting common stock outstanding. Since the rights of the voting and nonvoting common stock are identical, except with respect to voting, the net income of the Company has been allocated on a proportionate basis to the two classes. Diluted earnings per share is calculated using the treasury stock method for outstanding stock options and non-vested restricted stock units and the if-converted method for nonvoting common stock. For further details surrounding the EPS computation, see Note 25 in the 2020 Form 10-K.

EPS under the basic and diluted computations for both common stock and nonvoting common stock are as follows:


	Three Months Ended September 30,							Nine Months Ended September 30,
	2021				2020			2021				2020
	Common Stock		Nonvoting Common Stock (1)		Common Stock		Nonvoting Common Stock (1)	Common Stock		Nonvoting Common Stock (1)		Common Stock		Nonvoting Common Stock (1)
Basic earnings per share:
Numerator
Net income	$	1,462	$	64	$	698	N/A	$	4,096	$	179	$	2,164	N/A
Preferred stock dividends and other (2)	(115)		(5)		(83)		N/A	(349)		(15)		(171)		N/A
Net income available to common stockholders	$	1,347	$	59	$	615	N/A	$	3,747	$	164	$	1,993	N/A
Denominator
Weighted-average common shares outstanding — basic	1,809		79		1,289		N/A	1,806		79		1,288		N/A
Basic earnings per share	$	.74	$	.74	$	.48	N/A	$	2.07	$	2.07	$	1.55	N/A
Diluted earnings per share:
Numerator
Net income available to common stockholders	$	1,347	$	59	$	615	N/A	$	3,747	$	164	$	1,993	N/A
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares	59		—		N/A		N/A	164		—		N/A		N/A
Allocation of net income available to common stockholders:	$	1,406	$	59	$	615	N/A	$	3,911	$	164	$	1,993	N/A
Denominator
Weighted-average common shares outstanding — basic	1,809		79		1,289		N/A	1,806		79		1,288		N/A
Conversion of nonvoting shares to voting shares	79		—		N/A		N/A	79		—		N/A		N/A
Common stock equivalent shares related to stock incentive plans	10		—		5		N/A	10		—		6		N/A
Weighted-average common shares outstanding — diluted (3)	1,898		79		1,294		N/A	1,895		79		1,294		N/A
Diluted earnings per share	$	.74	$	.74	$	.48	N/A	$	2.06	$	2.06	$	1.54	N/A

(1) Nonvoting common stock was issued in conjunction with the October 6, 2020 acquisition of TD Ameritrade. As such, nonvoting common stock is not applicable for the basic and diluted EPS computations for the three and nine months ended September 30, 2020.

(2) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units.

(3) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 13 million and 15 million for the three and nine months ended September 30, 2021, respectively, and 19 million and 20 million for the three and nine months ended September 30, 2020, respectively.

N/A Not applicable.