EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2021

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 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 15.1


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions, except per share data)	2021		2020		2021		2020
Net income	$	111	$	83	$	306	$	214
Less: Preferred stock dividends	2		2		6		6
Net income available to common stockholders	$	109	$	81	$	300	$	208
Basic weighted average common shares outstanding	319,512,598		323,379,720		320,023,695		323,642,925
Net effect of dilutive stock options, warrants and restricted stock	3,348,329		2,283,060		3,611,960		2,051,221
Diluted weighted average common shares outstanding	322,860,927		325,662,780		323,635,655		325,694,146
Earnings per common share:
Basic	$	0.34	$	0.25	$	0.94	$	0.64
Diluted	$	0.34	$	0.25	$	0.93	$	0.64

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

TABLE 15.2


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Average shares excluded from the diluted earnings per common share calculation	—	44,755	—	22,263