Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.6
Earnings Per Share
 3 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

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 six-month periods ended June 30, 2012 and 2011, was as follows:

    Three Months Ended   Six Months Ended
      June 30,     June 30,
(dollar amounts in thousands, except per share amounts)   2012     2011     2012     2011
                         
Basic earnings per common share:                      
Net income $ 152,706   $ 145,918   $ 305,976   $ 272,364
Preferred stock dividends   (7,984)     (7,704)     (16,033)     (15,407)
  Net income available to common shareholders $ 144,722   $ 138,214   $ 289,943   $ 256,957
Average common shares issued and outstanding   862,261     863,358     863,380     863,358
Basic earnings per common share $ 0.17   $ 0.16   $ 0.34   $ 0.30
                         
Diluted earnings per common share                      
Net income available to common shareholders $ 144,722   $ 138,214   $ 289,943   $ 256,957
Effect of assumed preferred stock conversion   ---     ---     ---     ---
  Net income applicable to diluted earnings per share $ 144,722   $ 138,214   $ 289,943   $ 256,957
Average common shares issued and outstanding   862,261     863,358     863,380     863,358
Dilutive potential common shares:                      
  Stock options and restricted stock units and awards   4,075     3,171     3,769     3,084
  Shares held in deferred compensation plans   1,215     940     1,208     911
  Conversion of preferred stock   ---     ---     ---     ---
Dilutive potential common shares:   5,290     4,111     4,977     3,995
  Total diluted average common shares issued and outstanding   867,551     867,469     868,357     867,353
Diluted earnings per common share $ 0.17   $ 0.16   $ 0.33   $ 0.30

Approximately 17.7 million and 15.3 million options to purchase shares of common stock outstanding at the end of June 30, 2012 and 2011, 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 $14.27 per share and $19.69 per share at the end of each respective period.