Earnings Per Common Share

12 Months Ended

Dec. 31, 2021

EPS is computed using the two-class method. Preferred stock dividends, and undistributed earnings and dividends allocated to participating securities are subtracted from net income in determining net income available to common stockholders. Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated similar to basic EPS except that the numerator and denominator are adjusted as necessary for any effects of dilutive potential common shares, which include, if dilutive, outstanding stock options and non-vested restricted stock units.

For the years ended December 31, 2021 and 2020, 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. The if-converted method assumes conversion of all nonvoting common stock to common stock.

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


Year Ended December 31,	2021				2020				2019
	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	$	5,610	$	245	$	3,255	$	44	$	3,704	N/A
Preferred stock dividends and other (2)	(474)		(21)		(253)		(3)		(178)		N/A
Net income available to common stockholders	$	5,136	$	224	$	3,002	$	41	$	3,526	N/A
Denominator
Weighted-average common shares outstanding — basic	1,808		79		1,410		19		1,311		N/A
Basic earnings per share	$	2.84	$	2.84	$	2.13	$	2.13	$	2.69	N/A
Diluted earnings per share:
Numerator
Net income available to common stockholders	$	5,136	$	224	$	3,002	$	41	$	3,526	N/A
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares	224		—		41		—		N/A		N/A
Allocation of net income available to common stockholders:	$	5,360	$	224	$	3,043	$	41	$	3,526	N/A
Denominator
Weighted-average common shares outstanding — basic	1,808		79		1,410		19		1,311		N/A
Conversion of nonvoting shares to voting shares	79		—		19		—		N/A		N/A
Common stock equivalent shares related to stock incentive plans	10		—		6		—		9		N/A
Weighted-average common shares outstanding — diluted (3)	1,897		79		1,435		19		1,320		N/A
Diluted earnings per share	$	2.83	$	2.83	$	2.12	$	2.12	$	2.67	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 in 2019.

(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 16 million, 22 million, and 21 million in 2021, 2020, and 2019 respectively.

N/A Not applicable.