Earnings Per Share
The computations of basic and diluted earnings per common share were as follows.
Table 8.15.1
EARNINGS PER SHARE COMPUTATIONS
(Dollars in millions, except per share data; shares in thousands)202520242023
Net income$998 $794 $916 
Net income attributable to noncontrolling interest16 19 19 
Net income attributable to controlling interest982 775 897 
Preferred stock dividends26 37 32 
Net income available to common shareholders$956 $738 $865 
Weighted average common shares outstanding—basic505,130 540,317 548,410 
Effect of dilutive restricted stock, performance equity awards and options5,977 3,968 3,802 
Effect of dilutive convertible preferred stock (a) — 9,520 
Weighted average common shares outstanding—diluted511,107 544,285 561,732 
Basic earnings per common share $1.89 $1.37 $1.58 
Diluted earnings per common share $1.87 $1.36 $1.54 
(a) On February 28, 2022, FHN issued $494 million of Series G Convertible Preferred Stock, which was converted into common stock on June 26, 2023, following the termination of the TD Merger Agreement. Conversion occurred at the rate of 4,000 common shares per Series G preferred share resulting in 19,742,776 additional common shares outstanding. 2023 includes the impact of the Series G based on the final conversion rate.
The following table presents average outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met.
Table 8.15.2
ANTI-DILUTIVE EQUITY AWARDS
(Shares in thousands)202520242023
Stock options excluded from the calculation of diluted EPS 26 — 
Weighted average exercise price of stock options excluded from the calculation of diluted EPS$ $19.73 $24.36 
Other equity awards excluded from the calculation of diluted EPS2,398 2,439 2,242 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 23, 2024

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.