Earnings Per Share

3 Months Ended

Mar. 31, 2022

The computations of basic and diluted earnings per common share were as follows:


EARNINGS PER SHARE COMPUTATIONS
	Three Months Ended March 31,
(Dollars in millions, except per share data; shares in thousands)	2022		2021
Net income	$	198	$	236
Net income attributable to noncontrolling interest	3		3
Net income attributable to controlling interest	195		233
Preferred stock dividends	8		8
Net income available to common shareholders	$	187	$	225

Weighted average common shares outstanding—basic	533,218		552,249
Effect of dilutive restricted stock, performance equity awards and options	6,809		4,539
Effect of dilutive convertible preferred stock (a)	9,782		—
Weighted average common shares outstanding—diluted	549,809		556,788

Basic earnings per common share	$	0.35	$	0.41
Diluted earnings per common share	$	0.34	$	0.40

(a) During the first quarter of 2022, FHN issued $494 million of Series G Convertible Preferred Stock, which is convertible into common stock upon completion of the Proposed TD Merger or the termination of the TD Merger Agreement. For more information on the convertible features, including the conversion rate, see Note 7 - Preferred Stock.

The following table presents average outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher

than the weighted-average market price for the period) or the performance conditions have not been met:


ANTI-DILUTIVE EQUITY AWARDS
	Three Months Ended March 31,
(Shares in thousands)	2022		2021
Stock options excluded from the calculation of diluted EPS	72		3,827
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	24.86	$	18.11
Other equity awards excluded from the calculation of diluted EPS	791		2,784