Earnings Per Common Share

9 Months Ended

Sep. 30, 2019

The calculation of earnings per common share (EPS) and diluted EPS for the three and nine months ended September 30, 2019 and 2018 is presented below. For more information on the calculation of EPS, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.




	Three Months Ended September 30						Nine Months Ended September 30
(In millions, except per share information)	2019			2018			2019			2018
Earnings per common share
Net income	$	5,777		$	7,167		$	20,436		$	20,869
Preferred stock dividends	(505		)	(466		)	(1,186		)	(1,212		)
Net income applicable to common shareholders	$	5,272		$	6,701		$	19,250		$	19,657
Average common shares issued and outstanding	9,303.6			10,031.6			9,516.2			10,177.5
Earnings per common share	$	0.57		$	0.67		$	2.02		$	1.93

Diluted earnings per common share
Net income applicable to common shareholders	$	5,272		$	6,701		$	19,250		$	19,657
Average common shares issued and outstanding	9,303.6			10,031.6			9,516.2			10,177.5
Dilutive potential common shares ⁽¹⁾	49.4			139.2			49.5			140.4
Total diluted average common shares issued and outstanding	9,353.0			10,170.8			9,565.7			10,317.9
Diluted earnings per common share	$	0.56		$	0.66		$	2.01		$	1.91


⁽¹⁾	Includes incremental dilutive shares from restricted stock units, restricted stock and warrants.

For both the three and nine months ended September 30, 2019 and 2018, 62 million average dilutive potential common shares associated with the Series L preferred stock were not included in the diluted share count because the result would have been antidilutive under the “if-converted” method. For the three and nine months ended September 30, 2018, average options to purchase two million and five million shares of common stock were outstanding but not included in the computation of EPS because the result would have been antidilutive under the treasury stock method. For both the three and nine months ended September

30, 2018, average warrants to purchase 122 million shares of common stock were outstanding but not included in the computation of EPS because the result would have been antidilutive under the treasury stock method. These warrants expired on October 29, 2018. For the three and nine months ended September 30, 2018, average warrants to purchase 135 million and 139 million shares of common stock were included in the diluted EPS calculation under the treasury stock method. Substantially all of these warrants were exercised on or before their expiration date of January 16, 2019.