Huntington Bancshares Incorporated Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2017

Basic earnings per share is the amount of earnings (adjusted for dividends declared on preferred stock) available to each share of common stock outstanding during the reporting period. Diluted earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options, restricted stock units and awards, distributions from deferred compensation plans, and the conversion of the Company’s convertible preferred stock. Potentially dilutive common shares are excluded from the computation of diluted earnings per share during periods in which the effect would be antidilutive. For diluted earnings per share, net income available to common shares can be affected by the conversion of the Company’s convertible preferred stock. Where the effect of this conversion would be dilutive, net income available to common shareholders is adjusted by the associated preferred dividends and deemed dividend.

The calculation of basic and diluted earnings per share for the three and nine-month periods ended September 30, 2017 and 2016, was as shown in the table.



	Three Months Ended September 30,						Nine Months Ended September 30,
(dollar amounts in thousands, except per share amounts)	2017			2016			2017			2016
Basic earnings per common share:
Net income	$	274,568		$	127,004		$	754,403		$	472,858
Preferred stock dividends	(18,903		)	(18,537		)	(56,670		)	(46,409		)
Net income available to common shareholders	$	255,665		$	108,467		$	697,733		$	426,449
Average common shares issued and outstanding	1,086,038			938,578			1,087,115			844,167
Basic earnings per common share	$	0.24		$	0.12		$	0.64		$	0.51
Diluted earnings per common share:
Net income available to common shareholders	$	255,665		$	108,467		$	697,733		$	426,449
Effect of assumed preferred stock conversion	—			—			—			—
Net income applicable to diluted earnings per share	$	255,665		$	108,467		$	697,733		$	426,449
Average common shares issued and outstanding	1,086,038			938,578			1,087,115			844,167
Dilutive potential common shares:
Stock options and restricted stock units and awards	17,079			10,714			17,515			10,295
Shares held in deferred compensation plans	3,228			2,654			3,096			2,337
Other	146			135			152			135
Dilutive potential common shares	20,453			13,503			20,763			12,767
Total diluted average common shares issued and outstanding	1,106,491			952,081			1,107,878			856,934
Diluted earnings per common share	$	0.23		$	0.11		$	0.63		$	0.50

For the three-month periods ended September 30, 2017 and 2016, approximately 1.5 million and 3.5 million, respectively, of options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive. For the nine-month periods ended September 30, 2017 and 2016, approximately 0.9 million and 3.3 million, respectively, were not included.