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, 2016

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 13). 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)	2016			2015			2014
Basic earnings per common share:
Net income	$	711,821		$	692,957		$	632,392
Preferred stock dividends	(65,274		)	(31,873		)	(31,854		)
Net income available to common shareholders	$	646,547		$	661,084		$	600,538
Average common shares issued and outstanding	904,438			803,412			819,917
Basic earnings per common share:	$	0.72		$	0.82		$	0.73
Diluted earnings per common share
Net income available to common shareholders	$	646,547		$	661,084		$	600,538
Effect of assumed preferred stock conversion	—			—			—
Net income applicable to diluted earnings per share	$	646,547		$	661,084		$	600,538
Average common shares issued and outstanding	904,438			803,412			819,917
Dilutive potential common shares:
Stock options and restricted stock units and awards	11,728			11,633			11,421
Shares held in deferred compensation plans	2,486			1,912			1,420
Other	138			172			323
Dilutive potential common shares:	14,352			13,717			13,164
Total diluted average common shares issued and outstanding	918,790			817,129			833,081
Diluted earnings per common share	$	0.70		$	0.81		$	0.72

Approximately 3.1 million, 1.6 million, and 2.6 million options to purchase shares of common stock outstanding at the end of December 31, 2016, 2015, and 2014, respectively, were not included in the computation of diluted earnings per share because the effect would be antidilutive.