Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
3 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

11. 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 each of the three-month and six-month periods ended June 30, 2014 and 2013, was as follows:

    Three Months Ended   Six Months Ended
      June 30,     June 30,
(dollar amounts in thousands, except per share amounts)   2014     2013     2014     2013
                         
Basic earnings per common share:                      
Net income $ 164,619   $ 151,000   $ 313,762   $ 304,274
Preferred stock dividends   (7,963)     (7,967)     (15,927)     (15,937)
  Net income available to common shareholders $ 156,656   $ 143,033   $ 297,835   $ 288,337
Average common shares issued and outstanding   821,546     834,730     825,603     837,917
Basic earnings per common share $ 0.19   $ 0.17   $ 0.36   $ 0.34
                         
Diluted earnings per common share:                      
Net income available to common shareholders $ 156,656   $ 143,033   $ 297,835   $ 288,337
Effect of assumed preferred stock conversion   ---     ---     ---     ---
  Net income applicable to diluted earnings per share $ 156,656   $ 143,033   $ 297,835   $ 288,337
Average common shares issued and outstanding   821,546     834,730     825,603     837,917
Dilutive potential common shares:                      
  Stock options and restricted stock units and awards   11,395     7,758     11,426     7,019
  Shares held in deferred compensation plans   1,245     1,352     1,249     1,338
  Other   501     ---     268     ---
Dilutive potential common shares:   13,141     9,110     12,943     8,357
  Total diluted average common shares issued and outstanding   834,687     843,840     838,546     846,274
Diluted earnings per common share $ 0.19   $ 0.17   $ 0.36   $ 0.34
                         

For the three-month periods ended June 30, 2014 and 2013, approximately 3.1 million and 11.2 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 six-month periods ended June 30, 2014 and 2013, amounts not included in the computation of diluted earnings per share were 2.6 million and 11.1 million shares, respectively.