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, 2011

10. 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 Huntington'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 Huntington'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, 2011 and 2010, was as follows:

		Three Months Ended				Nine Months Ended
			September 30,				September 30,
(dollar amounts in thousands, except per share amounts)			2011		2010		2011		2010

Basic earnings per common share:
Net income		$	143,391	$	100,946	$	415,755	$	189,447
Preferred stock dividends, deemed dividend and accretion of discount			(7,703)		(29,495)		(23,110)		(88,278)
	Net income available to common shareholders	$	135,688	$	71,451	$	392,645	$	101,169
Average common shares issued and outstanding			863,911		716,911		863,542		716,604
Basic earnings per common share		$	0.16	$	0.10	$	0.45	$	0.14

Diluted earnings per common share
Net income available to common shareholders		$	135,688	$	71,451	$	392,645	$	101,169
Effect of assumed preferred stock conversion			---		---		---		---
	Net income applicable to diluted earnings per share	$	135,688	$	71,451	$	392,645	$	101,169
Average common shares issued and outstanding			863,911		716,911		863,542		716,604
Dilutive potential common shares:
	Stock options and restricted stock units and awards		2,646		1,764		2,938		1,711
	Shares held in deferred compensation plans		1,076		892		966		867
	Conversion of preferred stock		---		---		---		---
Dilutive potential common shares:			3,722		2,656		3,904		2,578
	Total diluted average common shares issued and outstanding		867,633		719,567		867,446		719,182
Diluted earnings per common share		$	0.16	$	0.10	$	0.45	$	0.14

Approximately 24.6 million and 19.2 million options to purchase shares of common stock outstanding at the end of September 30, 2011 and 2010, respectively, were not included in the computation of diluted earnings per share because the effect would be antidilutive. The weighted average exercise price for these options was $12.57 per share and $18.06 per share at the end of each respective period.