Huntington Bancshares Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 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 (See Note 13). Potentially dilutive common shares are excluded from the computation of diluted earnings per share in 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 2017 total diluted average common shares issued and outstanding was impacted by using the if-converted method. The calculation of basic and diluted earnings per share for each of the three years ended December 31 was as follows:



	Year Ended December 31,
(dollar amounts in millions, except per share amounts)	2017			2016			2015
Basic earnings per common share:
Net income	$	1,186		$	712		$	693
Preferred stock dividends	(76		)	(65		)	(32		)
Net income available to common shareholders	$	1,110		$	647		$	661
Average common shares issued and outstanding (000)	1,084,686			904,438			803,412
Basic earnings per common share	$	1.02		$	0.72		$	0.82
Diluted earnings per common share:
Net income available to common shareholders	$	1,110		$	647		$	661
Effect of assumed preferred stock conversion	31			—			—
Net income applicable to diluted earnings per share	$	1,141		$	647		$	661
Average common shares issued and outstanding (000)	1,084,686			904,438			803,412
Dilutive potential common shares
Stock options and restricted stock units and awards	17,883			11,728			11,633
Shares held in deferred compensation plans	3,160			2,486			1,912
Other	30,457			138			172
Dilutive potential common shares	51,500			14,352			13,717
Total diluted average common shares issued and outstanding (000)	1,136,186			918,790			817,129
Diluted earnings per common share	$	1.00		$	0.70		$	0.81

Approximately 1.0 million, 3.1 million, and 1.6 million options to purchase shares of common stock outstanding at the end of December 31, 2017, 2016, and 2015, respectively, were not included in the computation of diluted earnings per share because the effect would be antidilutive.