Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
 6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
EARNINGS PER SHARE
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.
On February 22, 2018, Huntington converted all its outstanding 8.50% Series A Non-Cumulative Perpetual Convertible Preferred Stock to 30.3 million shares of common stock. Following the conversion, the additional shares were included in average common shares issued and outstanding. The 2018 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 the three and six-month periods ended June 30, 2018 and 2017 was as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(dollar amounts in millions, except per share amounts)
2018
 
2017
 
2018
 
2017
Basic earnings per common share:
 
 
 
 
 
 
 
Net income
$
355

 
$
272

 
$
681

 
$
480

Preferred stock dividends
(21
)
 
(19
)
 
(33
)
 
(38
)
Net income available to common shareholders
$
334

 
$
253

 
$
648

 
$
442

Average common shares issued and outstanding (000)
1,103,337

 
1,088,934

 
1,093,587

 
1,087,654

Basic earnings per common share
$
0.30

 
$
0.23

 
$
0.59

 
$
0.41

Diluted earnings per common share:
 
 
 
 
 
 
 
Net income available to common shareholders
$
334

 
$
253

 
$
648

 
$
442

Effect of assumed preferred stock conversion
—

 
—

 
—

 
—

Net income applicable to diluted earnings per share
$
334

 
$
253

 
$
648

 
$
442

Average common shares issued and outstanding (000)
1,103,337

 
1,088,934

 
1,093,587

 
1,087,654

Dilutive potential common shares:
 
 
 
 
 
 
 
Stock options and restricted stock units and awards
15,803

 
16,329

 
17,830

 
17,734

Shares held in deferred compensation plans
3,472

 
3,108

 
3,350

 
3,030

Dilutive impact of Preferred Stock
—

 
—

 
8,879

 
—

Other
—

 
156

 
—

 
154

Dilutive potential common shares
19,275

 
19,593

 
30,059

 
20,918

Total diluted average common shares issued and outstanding (000)
1,122,612

 
1,108,527

 
1,123,646

 
1,108,572

Diluted earnings per common share
$
0.30

 
$
0.23

 
$
0.58

 
$
0.40


There were approximately 2.5 million and 2.6 million of options to purchase shares of common stock outstanding for the three-month periods ended June 30, 2018 and 2017, respectively. There were approximately 1.6 million and 1.8 million of options to purchase shares of common stock outstanding for the six-month periods ended June 30, 2018 and 2017. These options were not included in the computation of diluted earnings per share because the effect would be antidilutive.