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, 2015

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 12). 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 each of the three years ended December 31 was as follows:



	Year ended December 31,
(dollar amounts in thousands, except per share amounts)	2015			2014			2013
Basic earnings per common share:
Net income	$	692,957		$	632,392		$	641,282
Preferred stock dividends	(31,873		)	(31,854		)	(31,869		)
Net income available to common shareholders	$	661,084		$	600,538		$	609,413
Average common shares issued and outstanding	803,412			819,917			834,205
Basic earnings per common share:	$	0.82		$	0.73		$	0.73
Diluted earnings per common share
Net income available to common shareholders	$	661,084		$	600,538		$	609,413
Effect of assumed preferred stock conversion	—			—			—
Net income applicable to diluted earnings per share	$	661,084		$	600,538		$	609,413
Average common shares issued and outstanding	803,412			819,917			834,205
Dilutive potential common shares:
Stock options and restricted stock units and awards	11,633			11,421			8,418
Shares held in deferred compensation plans	1,912			1,420			1,351
Other	172			323			—
Dilutive potential common shares:	13,717			13,164			9,769
Total diluted average common shares issued and outstanding	817,129			833,081			843,974
Diluted earnings per common share	$	0.81		$	0.72		$	0.72

Approximately 1.6 million, 2.6 million, and 6.6 million options to purchase shares of common stock outstanding at the end of December 31, 2015, 2014, and 2013, respectively, were not included in the computation of diluted earnings per share because the effect would be antidilutive.