EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2019

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock.

Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the dilutive effect of potential common shares issuable for stock options, warrants and restricted shares, as calculated using the treasury stock method. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share.

The following table sets forth the computation of basic and diluted earnings per common share:

TABLE 14.1



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions, except per share data)	2019		2018		2019		2018
Net income	$	95	$	85	$	189	$	172
Less: Preferred stock dividends	2		2		4		4
Net income available to common stockholders	$	93	$	83	$	185	$	168
Basic weighted average common shares outstanding	324,950,162		324,170,177		324,796,294		323,956,752
Net effect of dilutive stock options, warrants and restricted stock	999,191		1,559,872		900,927		1,772,440
Diluted weighted average common shares outstanding	325,949,353		325,730,049		325,697,221		325,729,192
Earnings per common share:
Basic	$	0.29	$	0.26	$	0.57	$	0.52
Diluted	$	0.29	$	0.26	$	0.57	$	0.52

The following table shows the average shares excluded from the above calculation as their effect would have been anti-dilutive:

TABLE 14.2



	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Average shares excluded from the diluted earnings per common share calculation	—	72	6	46