Earnings Per Common Share

12 Months Ended

Dec. 31, 2023

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, 2023, 2022, and 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. 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,	2023				2022				2021
	Common Stock		Nonvoting Common Stock		Common Stock		Nonvoting Common Stock		Common Stock		Nonvoting Common Stock
Basic earnings per share:
Numerator
Net income	$	4,925	$	142	$	6,926	$	257	$	5,610	$	245
Preferred stock dividends and other (1)	(406)		(12)		(528)		(20)		(474)		(21)
Net income available to common stockholders	$	4,519	$	130	$	6,398	$	237	$	5,136	$	224
Denominator
Weighted-average common shares outstanding — basic	1,773		51		1,818		67		1,808		79
Basic earnings per share	$	2.55	$	2.55	$	3.52	$	3.52	$	2.84	$	2.84
Diluted earnings per share:
Numerator
Net income available to common stockholders	$	4,519	$	130	$	6,398	$	237	$	5,136	$	224
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares	130		—		237		—		224		—
Allocation of net income available to common stockholders:	$	4,649	$	130	$	6,635	$	237	$	5,360	$	224
Denominator
Weighted-average common shares outstanding — basic	1,773		51		1,818		67		1,808		79
Conversion of nonvoting shares to voting shares	51		—		67		—		79		—
Common stock equivalent shares related to stock incentive plans	7		—		9		—		10		—
Weighted-average common shares outstanding — diluted (2)	1,831		51		1,894		67		1,897		79
Diluted earnings per share	$	2.54	$	2.54	$	3.50	$	3.50	$	2.83	$	2.83

(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 19 million, 15 million, and 16 million in 2023, 2022, and 2021, respectively.