Huntington Bancshares Incorporated Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2017

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. 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 the three and six-month periods ended June 30, 2017 and 2016, was as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(dollar amounts in thousands, except per share amounts)	2017			2016			2017			2016
Basic earnings per common share:
Net income	$	271,741		$	174,540		$	479,835		$	345,854
Preferred stock dividends	(18,889		)	(19,874		)	(37,767		)	(27,872		)
Net income available to common shareholders	$	252,852		$	154,666		$	442,068		$	317,982
Average common shares issued and outstanding	1,088,934			798,167			1,087,654			796,961
Basic earnings per common share	$	0.23		$	0.19		$	0.41		$	0.40
Diluted earnings per common share:
Net income available to common shareholders	$	252,852		$	154,666		$	442,068		$	317,982
Effect of assumed preferred stock conversion	—			—			—			—
Net income applicable to diluted earnings per share	$	252,852		$	154,666		$	442,068		$	317,982
Average common shares issued and outstanding	1,088,934			798,167			1,087,654			796,961
Dilutive potential common shares:
Stock options and restricted stock units and awards	16,329			9,785			17,734			10,085
Shares held in deferred compensation plans	3,108			2,282			3,030			2,178
Other	156			137			154			136
Dilutive potential common shares:	19,593			12,204			20,918			12,399
Total diluted average common shares issued and outstanding	1,108,527			810,371			1,108,572			809,360
Diluted earnings per common share	$	0.23		$	0.19		$	0.40		$	0.39

For the three-month periods ended June 30, 2017 and 2016, approximately 2.6 million and 4.7 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, 2017 and 2016, approximately 1.8 million and 4.0 million, respectively, were not included.