NOTE 21. EARNINGS PER COMMON SHARE

The following table presents the computation of basic and diluted earnings per common share for the years ended December 31 (dollars in millions, except per share amounts, and shares in thousands):

 

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

193

 

 

$

180

 

 

$

171

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding-basic

 

 

80,975

 

 

 

78,725

 

 

 

76,396

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Performance and restricted stock awards

 

 

76

 

 

 

95

 

 

 

100

 

Weighted-average number of common shares outstanding-diluted

 

 

81,051

 

 

 

78,820

 

 

 

76,495

 

Earnings per common share (1):

 

 

 

 

 

 

 

 

 

Basic

 

$

2.38

 

 

$

2.29

 

 

$

2.24

 

Diluted

 

$

2.38

 

 

$

2.29

 

 

$

2.24

 

 

(1)
Per share amounts may not recalculate due to rounding of numerator and denominator amounts within this table.

There were no shares excluded from the calculation because they were antidilutive.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.