Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
3 Months Ended
Sep. 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 nine-month periods ended September 30, 2014 and 2013, was as follows:

Three Months Ended Nine Months Ended
September 30, September 30,
(dollar amounts in thousands, except per share amounts) 2014 2013 2014 2013
Basic earnings per common share:
Net income $ 155,016 $ 178,836 $ 468,778 $ 483,110
Preferred stock dividends (7,964) (7,967) (23,891) (23,904)
Net income available to common shareholders $ 147,052 $ 170,869 $ 444,887 $ 459,206
Average common shares issued and outstanding 816,497 830,398 820,884 835,410
Basic earnings per common share $ 0.18 $ 0.21 $ 0.54 $ 0.55
Diluted earnings per common share:
Net income available to common shareholders $ 147,052 $ 170,869 $ 444,887 $ 459,206
Effect of assumed preferred stock conversion --- --- --- ---
Net income applicable to diluted earnings per share $ 147,052 $ 170,869 $ 444,887 $ 459,206
Average common shares issued and outstanding 816,497 830,398 820,884 835,410
Dilutive potential common shares:
Stock options and restricted stock units and awards 11,367 9,254 11,397 7,764
Shares held in deferred compensation plans 1,506 1,373 1,443 1,350
Other 253 --- 203 ---
Dilutive potential common shares: 13,126 10,627 13,043 9,114
Total diluted average common shares issued and outstanding 829,623 841,025 833,927 844,524
Diluted earnings per common share $ 0.18 $ 0.20 $ 0.53 $ 0.54

For the three-month periods ended September 30, 2014 and 2013, approximately 2.6 million and 5.6 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, 2014 and 2013, amounts not included in the computation of diluted earnings per share were 2.7 million and 9.7 million shares, respectively.