| | NOTE 11—EARNINGS PER COMMON SHARE |
The following table sets forth the computation of basic and diluted earnings per common share. Table 11.1: Computation of Basic and Diluted Earnings per Common Share | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (Dollars and shares in millions, except per share data) | | 2019 | | 2018 | | 2019 | | 2018 | Income from continuing operations, net of tax | | $ | 1,329 |
| | $ | 1,501 |
| | $ | 4,355 |
| | $ | 4,761 |
| Income (loss) from discontinued operations, net of tax | | 4 |
| | 1 |
| | 15 |
| | (7 | ) | Net income | | 1,333 |
| | 1,502 |
| | 4,370 |
| | 4,754 |
| Dividends and undistributed earnings allocated to participating securities | | (10 | ) | | (9 | ) | | (34 | ) | | (32 | ) | Preferred stock dividends | | (53 | ) | | (53 | ) | | (185 | ) | | (185 | ) | Net income available to common stockholders | | $ | 1,270 |
| | $ | 1,440 |
| | $ | 4,151 |
| | $ | 4,537 |
| | | | | | | | | | Total weighted-average basic shares outstanding | | 469.5 |
| | 477.8 |
| | 469.9 |
| | 483.2 |
| Effect of dilutive securities: | | | | | | | | | Stock options | | 1.3 |
| | 1.5 |
| | 1.2 |
| | 1.8 |
| Other contingently issuable shares | | 1.0 |
| | 1.1 |
| | 1.0 |
| | 1.1 |
| Warrants(1) | | 0.0 |
| | 0.5 |
| | 0.0 |
| | 0.6 |
| Total effect of dilutive securities | | 2.3 |
| | 3.1 |
| | 2.2 |
| | 3.5 |
| Total weighted-average diluted shares outstanding | | 471.8 |
| | 480.9 |
| | 472.1 |
| | 486.7 |
| Basic earnings per common share: | | | | | | | | | Net income from continuing operations | | $ | 2.70 |
| | $ | 3.01 |
| | $ | 8.80 |
| | $ | 9.40 |
| Income (loss) from discontinued operations | | 0.01 |
| | 0.00 |
| | 0.03 |
| | (0.01 | ) | Net income per basic common share | | $ | 2.71 |
| | $ | 3.01 |
| | $ | 8.83 |
| | $ | 9.39 |
| Diluted earnings per common share:(2) | | | | | | | | | Net income from continuing operations | | $ | 2.68 |
| | $ | 2.99 |
| | $ | 8.76 |
| | $ | 9.33 |
| Income (loss) from discontinued operations | | 0.01 |
| | 0.00 |
| | 0.03 |
| | (0.01 | ) | Net income per diluted common share | | $ | 2.69 |
| | $ | 2.99 |
| | $ | 8.79 |
| | $ | 9.32 |
|
| | (1) | Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program which had all been exercised or expired on November 14, 2018. |
(2) Excluded from the computation of diluted earnings per share were 92 thousand shares related to options with an exercise price of $86.34 for the nine months ended September 30, 2019, and 44 thousand shares related to awards for the nine months ended September 30, 2018, because their inclusion would be anti-dilutive.
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