Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

v3.3.0.814
EARNINGS PER SHARE
9 Months Ended
Sep. 30, 2015
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. 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 calculation of basic and diluted earnings per share for three-month and nine-month periods ended September 30, 2015 and 2014, was as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands, except per share amounts)
2015
 
2014
 
2015
 
2014
Basic earnings per common share:
 
 
 
 
 
 
 
Net income
$
152,588

 
$
155,016

 
$
514,648

 
$
468,778

Preferred stock dividends
(7,968
)
 
(7,964
)
 
(23,901
)
 
(23,891
)
Net income available to common shareholders
$
144,620

 
$
147,052

 
$
490,747

 
$
444,887

Average common shares issued and outstanding
800,883

 
816,497

 
805,851

 
820,884

Basic earnings per common share
$
0.18

 
$
0.18

 
$
0.61

 
$
0.54

Diluted earnings per common share:
 
 
 
 
 
 
 
Net income available to common shareholders
$
144,620

 
$
147,052

 
$
490,747

 
$
444,887

Effect of assumed preferred stock conversion

 

 

 

Net income applicable to diluted earnings per share
$
144,620

 
$
147,052

 
$
490,747

 
$
444,887

Average common shares issued and outstanding
800,883

 
816,497

 
805,851

 
820,884

Dilutive potential common shares:
 
 
 
 
 
 
 
Stock options and restricted stock units and awards
11,285

 
11,367

 
11,554

 
11,397

Shares held in deferred compensation plans
1,997

 
1,506

 
1,872

 
1,443

Other
161

 
253

 
181

 
203

Dilutive potential common shares:
13,443

 
13,126

 
13,607

 
13,043

Total diluted average common shares issued and outstanding
814,326

 
829,623

 
819,458

 
833,927

Diluted earnings per common share
$
0.18

 
$
0.18

 
$
0.60

 
$
0.53


For the three-month periods ended September 30, 2015 and 2014, approximately 1.7 million and 2.6 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, 2015 and 2014, approximately 1.5 million and 2.7 million were not included, respectively.