EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2026

Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity.

Net income (loss) per common share has been computed as shown below, based upon weighted average common basic and dilutive shares outstanding.


(Dollars in millions, except per share amounts)	Three Months Ended March 31,
	2026		2025
Net income (loss) per share:
Numerator
Net income (loss)	$	653	$	210
Less: dividends declared - common shares and unvested common shares	(80)		(85)
Undistributed earnings	573		125
Percentage allocated to common shareholders (1)	98.7%		98.9%
	566		123
Add: dividends declared - common shareholders	79		84
Numerator for basic and diluted earnings per common share	$	645	$	208

Denominator
Denominator for basic earnings per weighted-average common shares	39.8		42.3
Effect of dilutive securities:
ESPP Offering	—		—
Denominator for diluted earnings per adjusted weighted-average common shares	39.8		42.3

Per common share net income (loss)
Basic	$	16.21	$	4.90
Diluted	$	16.21	$	4.90

(1) Basic weighted - average common shares outstanding	39.8		42.3
Basic weighted - average common shares outstanding and unvested common shares expected to vest	40.3		42.8
Percentage allocated to common shareholders	98.7%		98.9%

(Some amounts may not reconcile due to rounding.)

The ESPP Offering has a weighted average dilutive effect of 1,804 shares for the three months ended March 31, 2026, based upon the outstanding rights to purchase shares through the ESPP offering purchase date of March 31, 2026.