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

3 Months Ended

Mar. 31, 2017

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-month periods ended March 31, 2017 and 2016, was as follows:



	Three Months Ended March 31,
(dollar amounts in thousands, except per share amounts)	2017			2016
Basic earnings per common share:
Net income	$	208,094		$	171,314
Preferred stock dividends	(18,878		)	(7,998		)
Net income available to common shareholders	$	189,216		$	163,316
Average common shares issued and outstanding	1,086,374			795,755
Basic earnings per common share	$	0.17		$	0.21
Diluted earnings per common share:
Net income available to common shareholders	$	189,216		$	163,316
Effect of assumed preferred stock conversion	—			—
Net income applicable to diluted earnings per share	$	189,216		$	163,316
Average common shares issued and outstanding	1,086,374			795,755
Dilutive potential common shares:
Stock options and restricted stock units and awards	19,139			10,385
Shares held in deferred compensation plans	2,953			2,075
Other	151			134
Dilutive potential common shares:	22,243			12,594
Total diluted average common shares issued and outstanding	1,108,617			808,349
Diluted earnings per common share	$	0.17		$	0.20

For the three-month periods ended March 31, 2017 and 2016, approximately 0.9 million and 3.5 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.