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

9 Months Ended

Sep. 30, 2015

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 three-month and nine-month periods ended September 30, 2015 and 2014, was as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(dollar amounts in thousands, except per share amounts)	2015			2014			2015			2014
Basic earnings per common share:
Net income	$	152,588		$	155,016		$	514,648		$	468,778
Preferred stock dividends	(7,968		)	(7,964		)	(23,901		)	(23,891		)
Net income available to common shareholders	$	144,620		$	147,052		$	490,747		$	444,887
Average common shares issued and outstanding	800,883			816,497			805,851			820,884
Basic earnings per common share	$	0.18		$	0.18		$	0.61		$	0.54
Diluted earnings per common share:
Net income available to common shareholders	$	144,620		$	147,052		$	490,747		$	444,887
Effect of assumed preferred stock conversion	—			—			—			—
Net income applicable to diluted earnings per share	$	144,620		$	147,052		$	490,747		$	444,887
Average common shares issued and outstanding	800,883			816,497			805,851			820,884
Dilutive potential common shares:
Stock options and restricted stock units and awards	11,285			11,367			11,554			11,397
Shares held in deferred compensation plans	1,997			1,506			1,872			1,443
Other	161			253			181			203
Dilutive potential common shares:	13,443			13,126			13,607			13,043
Total diluted average common shares issued and outstanding	814,326			829,623			819,458			833,927
Diluted earnings per common share	$	0.18		$	0.18		$	0.60		$	0.53

For the three-month periods ended September 30, 2015 and 2014, approximately 1.7 million and 2.6 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, 2015 and 2014, approximately 1.5 million and 2.7 million were not included, respectively.