Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Reconciliation Of Earnings/(Loss) Per Common And Diluted Share

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


EARNINGS PER SHARE COMPUTATIONS
	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions, except per share data; shares in thousands)	2022		2021		2022		2021
Net income	$	268	$	235	$	642	$	781
Net income attributable to noncontrolling interest	3		3		8		9
Net income attributable to controlling interest	265		232		634		772
Preferred stock dividends	8		8		24		29
Net income available to common shareholders	$	257	$	224	$	610	$	743

Weighted average common shares outstanding—basic	535,986		545,818		534,613		549,434
Effect of dilutive restricted stock, performance equity awards and options	6,655		4,001		7,258		4,765
Effect of dilutive convertible preferred stock (a)	27,512		—		21,667		—
Weighted average common shares outstanding—diluted	570,153		549,819		563,538		554,199

Basic earnings per common share	$	0.48	$	0.41	$	1.14	$	1.35
Diluted earnings per common share	$	0.45	$	0.41	$	1.08	$	1.34

(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 Pending 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.

Schedule of Anti-Dilutive Options and Awards

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 September 30,				Nine Months Ended September 30,
(Shares in thousands)	2022		2021		2022		2021
Stock options excluded from the calculation of diluted EPS	11		2,901		35		1,431
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	26.03	$	17.75	$	25.65	$	20.64
Other equity awards excluded from the calculation of diluted EPS	493		2,464		199		1,394