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, 2019

Basic earnings per common 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 common 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.

The 2018 and 2017 total diluted average common shares issued and outstanding was impacted by using the if-converted method. 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,
(amounts in millions, except per share data, share count in thousands)	2019			2018			2017
Basic earnings per common share:
Net income	$	1,411		$	1,393		$	1,186
Preferred stock dividends	(74		)	(70		)	(76		)
Net income available to common shareholders	$	1,337		$	1,323		$	1,110
Average common shares issued and outstanding	1,038,840			1,081,542			1,084,686
Basic earnings per common share	$	1.29		$	1.22		$	1.02
Diluted earnings per common share:
Net income available to common shareholders	$	1,337		$	1,323		$	1,110
Effect of assumed preferred stock conversion	—			—			31
Net income applicable to diluted earnings per share	$	1,337		$	1,323		$	1,141
Average common shares issued and outstanding	1,038,840			1,081,542			1,084,686
Dilutive potential common shares
Stock options and restricted stock units and awards	12,994			16,529			17,883
Shares held in deferred compensation plans	4,245			3,511			3,160
Dilutive impact of Preferred Stock	—			4,403			30,330
Other	—			—			127
Dilutive potential common shares	17,239			24,443			51,500
Total diluted average common shares issued and outstanding	1,056,079			1,105,985			1,136,186
Diluted earnings per common share	$	1.27		$	1.20		$	1.00
Anti-dilutive awards (1)	5,253			2,307			1,009

(1)

Reflects the total number of shares related to outstanding options that have been excluded from the computation of diluted earnings per share because the impact would have been anti-dilutive.