Earnings Per Common Share

3 Months Ended

Mar. 31, 2024

The Company has voting and nonvoting common stock outstanding. As 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 2023 Form 10-K.

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


	Three Months Ended March 31,
	2024				2023
	Common Stock		Nonvoting Common Stock		Common Stock		Nonvoting Common Stock
Basic earnings per share:
Numerator
Net income	$	1,324	$	38	$	1,559	$	44
Preferred stock dividends and other (1)	(108)		(3)		(68)		(2)
Net income available to common stockholders	$	1,216	$	35	$	1,491	$	42
Denominator
Weighted-average common shares outstanding — basic	1,774		51		1,783		51
Basic earnings per share	$	.69	$	.69	$	.84	$	.84
Diluted earnings per share:
Numerator
Net income available to common stockholders	$	1,216	$	35	$	1,491	$	42
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares	35		—		42		—
Allocation of net income available to common stockholders:	$	1,251	$	35	$	1,533	$	42
Denominator
Weighted-average common shares outstanding — basic	1,774		51		1,783		51
Conversion of nonvoting shares to voting shares	51		—		51		—
Common stock equivalent shares related to stock incentive plans	6		—		8		—
Weighted-average common shares outstanding — diluted (2)	1,831		51		1,842		51
Diluted earnings per share	$	.68	$	.68	$	.83	$	.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 18 million and 16 million for the three months ended March 31, 2024 and 2023, respectively.