Note 19: Earnings and Dividends Per Common Share

Table 19.1 shows earnings per common share and diluted earnings per common share and reconciles the numerator and denominator of both earnings per common share calculations.

Table 19.1: Earnings Per Common Share Calculations



	Quarter ended September 30,			Nine months ended September 30,
(in millions, except per share amounts)	2018		2017	2018		2017
Wells Fargo net income (1)	$	6,007	4,542	$	16,329	16,032
Less: Preferred stock dividends and other (2)	554		411	1,351		1,218
Wells Fargo net income applicable to common stock (numerator) (1)	$	5,453	4,131	$	14,978	14,814
Earnings per common share
Average common shares outstanding (denominator)	4,784.0		4,948.6	4,844.8		4,982.1
Per share (1)	$	1.14	0.83	$	3.09	2.97
Diluted earnings per common share
Average common shares outstanding	4,784.0		4,948.6	4,844.8		4,982.1
Add: Stock options	7.5		15.8	8.5		18.1
Restricted share rights	26.5		22.4	25.9		24.1
Warrants	5.2		10.0	5.8		11.1
Diluted average common shares outstanding (denominator)	4,823.2		4,996.8	4,885.0		5,035.4
Per share (1)	$	1.13	0.83	$	3.07	2.94


(1)	Financial information for the prior period has been revised to reflect the impact of the adoption of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, effective January 1, 2017.


(2)	The quarter and nine months ended September 30, 2018, includes $155 million as a result of eliminating the discount on our Series J Preferred Stock, which was redeemed on September 17, 2018.

Table 19.2 presents the outstanding options to purchase shares of common stock that were anti-dilutive (the exercise

price was higher than the weighted-average market price), and therefore not included in the calculation of diluted earnings per common share.

Table 19.2: Outstanding Anti-Dilutive Options



	Weighted-average shares
	Quarter ended September 30,		Nine months ended September 30,
(in millions)	2018	2017	2018	2017
Options	—	1.8	0.4	2.0

Table 19.3 presents dividends declared per common share.

Table 19.3: Dividends Declared Per Common Share



	Quarter ended September 30,			Nine months ended September 30,
	2018		2017	2018	2017
Per common share	$	0.430	0.390	1.210	1.150