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, 2016

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 the three and nine-month periods ended September 30, 2016 and 2015, was as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(dollar amounts in thousands, except per share amounts)	2016			2015			2016			2015
Basic earnings per common share:
Net income	$	127,004		$	152,588		$	472,858		$	514,648
Preferred stock dividends	(18,537		)	(7,968		)	(46,409		)	(23,901		)
Net income available to common shareholders	$	108,467		$	144,620		$	426,449		$	490,747
Average common shares issued and outstanding	938,578			800,883			844,167			805,851
Basic earnings per common share	$	0.12		$	0.18		$	0.51		$	0.61
Diluted earnings per common share:
Net income available to common shareholders	$	108,467		$	144,620		$	426,449		$	490,747
Effect of assumed preferred stock conversion	—			—			—			—
Net income applicable to diluted earnings per share	$	108,467		$	144,620		$	426,449		$	490,747
Average common shares issued and outstanding	938,578			800,883			844,167			805,851
Dilutive potential common shares:
Stock options and restricted stock units and awards	10,714			11,285			10,295			11,554
Shares held in deferred compensation plans	2,654			1,997			2,337			1,872
Other	135			161			135			181
Dilutive potential common shares:	13,503			13,443			12,767			13,607
Total diluted average common shares issued and outstanding	952,081			814,326			856,934			819,458
Diluted earnings per common share	$	0.11		$	0.18		$	0.50		$	0.60

For the three-month periods ended September 30, 2016 and 2015, approximately 3.5 million and 1.7 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 nine-month periods ended September 30, 2016 and 2015, approximately 3.3 million and 1.5 million were not included, respectively.