Huntington National Bank 2011 Annual Report Download - page 185

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 stock
and warrants (See Note 14). 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 (loss) per share, net
income (loss) 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 (loss) available to common
shareholders is adjusted by the associated preferred dividends and deemed dividend. The calculation of basic and
diluted (loss) earnings per share for each of the three years ended December 31 was as follows:
Year ended December 31,
2011 2010 2009
(dollar amounts in thousands, except per share amounts)
Basic earnings (loss) per common share:
Net income (loss) .................................. $542,613 $ 312,347 $(3,094,179)
Preferred stock dividends, deemed dividends and accretion
of discount ..................................... (30,813) (172,032) (174,756)
Net income (loss) available to common shareholders .... $511,800 $ 140,315 $(3,268,935)
Average common shares issued and outstanding .......... 863,691 726,934 532,802
Basic earnings (loss) per common share ............... $ 0.59 $ 0.19 $ (6.14)
Diluted earnings (loss) per common share
Net income (loss) available to common shareholders ...... $511,800 $ 140,315 $(3,268,935)
Effect of assumed preferred stock conversion ............ ———
Net income (loss) applicable to diluted earnings per
share ........................................ $511,800 $ 140,315 $(3,268,935)
Average common shares issued and outstanding .......... 863,691 726,934 532,802
Dilutive potential common shares:
Stock options and restricted stock units and awards ..... 2,916 1,722 —
Shares held in deferred compensation plans ........... 1,017 876 —
Conversion of preferred stock ...................... ———
Dilutive potential common shares: ..................... 3,933 2,598 —
Total diluted average common shares issued and
outstanding ................................... 867,624 729,532 532,802
Diluted earnings (loss) per common share ............. $ 0.59 $ 0.19 $ (6.14)
Due to the loss attributable to common shareholders for the year ended December 31, 2009, no potentially
dilutive shares are included in loss per share calculation as including such shares in the calculation would reduce
the reported loss per share. Approximately 23.6 million, 18.5 million, and 23.7 million options to purchase shares
of common stock outstanding at the end of 2011, 2010, and 2009, 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 $12.52 per share, $18.05 per share, and $19.71 per share at the end of each
respective period.
16. SHARE-BASED COMPENSATION
Huntington sponsors nonqualified and incentive share based compensation plans. These plans provide for
the granting of stock options and other awards to officers, directors, and other employees. Compensation costs
are included in personnel costs on the Consolidated Statements of Income. Stock options are granted at the
closing market price on the date of the grant. Options granted typically vest ratably over three years or when
other conditions are met. Stock options, which represented a significant portion of our grant values, have no
intrinsic value until the stock price increases. Options granted prior to May 2004 have a term of ten years. All
options granted after May 2004 have a term of seven years.
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