NOTE 9 – NET INCOME PER COMMON SHARE

Equivalent shares of less than 1 million and 8 million related to common stock options and common stock warrants outstanding at September 30, 2017 and 2016, respectively, were excluded from the computations of diluted net income per average common share because they would have been anti-dilutive.

Reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding are presented in the following table.



	Three Months Ended September 30						Nine Months Ended September 30
(Dollars and shares in millions, except per share data)	2017			2016			2017			2016
Net income		$538			$474			$1,533			$1,413
Less:
Preferred stock dividends	(26		)	(17		)	(65		)	(49		)
Dividends and undistributed earnings allocated to unvested common share awards	—			—			—			(1		)
Net income available to common shareholders		$512			$457			$1,468			$1,363

Average basic common shares outstanding	478			496			484			501
Add dilutive securities:
Stock options	1			2			1			2
RSUs, warrants, and restricted stock	5			3			4			3
Average diluted common shares outstanding	484			501			489			506

Net income per average common share - diluted		$1.06			$0.91			$3.00			$2.70
Net income per average common share - basic	1.07			0.92			3.04			2.72