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Net income per common share

9 Months Ended

Sep. 30, 2020

Note 26 – Net income per common shareThe following table sets forth the computation of net income per common share (“EPS”), basic and diluted, for the quarters and nine months ended September 30, 2020 and 2019:

	Quarters ended September 30,				Nine months ended September 30,
(In thousands, except per share information)	2020		2019		2020		2019
Net income	$	168,416	$	165,319	$	330,346	$	504,350
Preferred stock dividends		(352)		(930)		(1,405)		(2,792)
Net income applicable to common stock	$	168,064	$	164,389	$	328,941	$	501,558
Average common shares outstanding		83,809,272		96,357,117		86,567,680		97,073,177
Average potential dilutive common shares		26,879		121,210		78,011		139,219
Average common shares outstanding - assuming dilution		83,836,151		96,478,327		86,645,691		97,212,396
Basic EPS	$	2.01	$	1.71	$	3.80	$	5.17
Diluted EPS	$	2.00	$	1.70	$	3.80	$	5.16

As disclosed in Note 18, on May 27, 2020, the Corporation completed its $500 million accelerated share repurchase transaction (“ASR”) in 2020. Under the ASR, the Corporation received from the dealer counterparty an initial delivery of 7,055,919 shares of common stock on February 3, 2020. As part of the final settlement of the ASR, the Corporation received an additional 4,763,216 shares of common stock after the early termination date of March 19, 2020. The early termination resulted from the exercise by the dealer counterparty of its contractual right to terminate the transaction due to the trading price of the Corporation’s common stock falling below a specified level due to the effects of the COVID-19 pandemic on the global markets. The Corporation accounted for the ASR as a treasury stock transaction.

For the quarter and nine months ended September 30, 2020, the Corporation calculated the impact of potential dilutive common shares under the treasury stock method, consistent with the method used for the preparation of the financial statements for the year ended December 31, 2019. For a discussion of the calculation under the treasury stock method, refer to Note 33 of the Consolidated Financial Statements included in the 2019 Form 10-K.