Earnings Per Share

3 Months Ended

Mar. 31, 2023

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)	2023		2022
Net income	$	255	$	198
Net income attributable to noncontrolling interest	4		3
Net income attributable to controlling interest	251		195
Preferred stock dividends	8		8
Net income available to common shareholders	$	243	$	187

Weighted average common shares outstanding—basic	536,938		533,218
Effect of dilutive restricted stock, performance equity awards and options	7,541		6,809
Effect of dilutive convertible preferred stock (a)	27,512		9,782
Weighted average common shares outstanding—diluted	571,991		549,809

Basic earnings per common share	$	0.45	$	0.35
Diluted earnings per common share	$	0.43	$	0.34

(a) On February 28, 2022, FHN issued $494 million of Series G Convertible Preferred Stock, which will be converted into common stock following 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)	2023		2022
Stock options excluded from the calculation of diluted EPS	—		72
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	24.36	$	24.86
Other equity awards excluded from the calculation of diluted EPS	3,803		791