Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

For the three and nine months ended September 30, 2023 and 2022, 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. For further details surrounding the EPS computation, see Item 8 – Note 25 in the 2022 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,
	2023				2022				2023				2022
	Common Stock		Nonvoting Common Stock		Common Stock		Nonvoting Common Stock		Common Stock		Nonvoting Common Stock		Common Stock		Nonvoting Common Stock
Basic earnings per share:
Numerator
Net income	$	1,094	$	31	$	1,956	$	64	$	3,910	$	112	$	5,014	$	201
Preferred stock dividends and other (1)	(105)		(3)		(132)		(4)		(291)		(8)		(385)		(16)
Net income available to common stockholders	$	989	$	28	$	1,824	$	60	$	3,619	$	104	$	4,629	$	185
Denominator
Weighted-average common shares outstanding — basic	1,770		51		1,827		60		1,774		51		1,819		73
Basic earnings per share	$	.56	$	.56	$	1.00	$	1.00	$	2.04	$	2.04	$	2.54	$	2.54
Diluted earnings per share:
Numerator
Net income available to common stockholders	$	989	$	28	$	1,824	$	60	$	3,619	$	104	$	4,629	$	185
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares	28		—		60		—		104		—		185		—
Allocation of net income available to common stockholders:	$	1,017	$	28	$	1,884	$	60	$	3,723	$	104	$	4,814	$	185
Denominator
Weighted-average common shares outstanding — basic	1,770		51		1,827		60		1,774		51		1,819		73
Conversion of nonvoting shares to voting shares	51		—		60		—		51		—		73		—
Common stock equivalent shares related to stock incentive plans	6		—		8		—		7		—		9		—
Weighted-average common shares outstanding — diluted (2)	1,827		51		1,895		60		1,832		51		1,901		73
Diluted earnings per share	$	.56	$	.56	$	.99	$	.99	$	2.03	$	2.03	$	2.53	$	2.53

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

(2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million and 18 million for the three and nine months ended September 30, 2023, respectively, and 13 million and 15 million for the three and nine months ended September 30, 2022, respectively.