Huntington National Bank 2003 Annual Report Download - page 125

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
19. Earnings Per Share
Basic earnings per share is the amount of earnings for the period 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 for the potential issuance of common shares for stock options. The calculation of basic and diluted earnings
per share for each of the three years ended December 31 is as follows:
(in thousands, except per share amounts) 2003 2002 2001
Income Before Cumulative Effect of Accounting Change $385,693 $323,731 $134,796
Net income $372,363 $323,731 $134,796
Average common shares outstanding 229,401 242,279 251,078
Dilutive effect of common stock equivalents 2,181 1,733 638
Diluted Average Common Shares Outstanding 231,582 244,012 251,716
Earnings Per Share
Basic
Income before cumulative effect of accounting change $ 1.68 $ 1.34 $ 0.54
Net income $ 1.62 $ 1.34 $ 0.54
Diluted
Income before cumulative effect of accounting change $ 1.67 $ 1.33 $ 0.54
Net income $ 1.61 $ 1.33 $ 0.54
The average market price of Huntington’s common stock for the period was used in determining the dilutive effect of outstanding
stock options. Common stock equivalents are computed based on the number of shares subject to stock options that have an exercise
price less than the average market price of Huntington’s common stock for the period.
Approximately 2.8 million, 7.7 million, and 9.9 million stock options were outstanding at the end of 2003, 2002, and 2001, respectively.
These outstanding options were not included in the computation of diluted earnings per share because the options’ exercise price was
greater than the average market price of the common shares for the period and, therefore, the effect would be antidilutive. The
weighted average exercise price for these options was $26.74 per share, $22.19 per share, and $20.96 per share at the end of the same
respective periods.
At December 31, 2003, a total of 544,357 common shares associated with a recent acquisition were held in escrow, subject to future
issuance contingent upon meeting certain contractual performance criteria. These shares, which were included in treasury stock, will
be included in the computation of basic and diluted earnings per share at the beginning of the period when all conditions necessary for
their issuance have been met. Dividends paid on these shares are reinvested in common stock and are also held in escrow.
HUNTINGTON BANCSHARES INCORPORATED 123