Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 8 – Earnings Per Share

The following tables provide a reconciliation of the numerators used in calculating earnings/(loss) per share attributable to common shareholders:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2012		2011			2012	2011
Income/(loss) from continuing operations	$	28,574	$	34,152	$	(60,037)	$	95,449
Income/(loss) from discontinued operations, net of tax		108		4,828		160		9,369
Net income/(loss)		28,682		38,980		(59,877)		104,818
Net income attributable to noncontrolling interest		2,875		2,875		8,563		8,563
Net income/(loss) available to common shareholders	$	25,807	$	36,105	$	(68,440)	$	96,255
Income/(loss) from continuing operations	$	28,574	$	34,152	$	(60,037)	$	95,449
Net income attributable to noncontrolling interest		2,875		2,875		8,563		8,563
Net income/(loss) from continuing operations available to common shareholders	$	25,699	$	31,277	$	(68,600)	$	86,886

The component of Income/(loss) from continuing operations attributable to FHN as the controlling interest holder of the subsidiary preferred stock issued by First Horizon Preferred Funding, LLC, First Horizon Preferred Funding II, LLC, and FTBNA was $25.7million and $31.3 million during the three months ended September 30, 2012 and 2011, respectively, and $(68.6) million and $86.9 million during the nine months ended September 30, 2012 and 2011, respectively.

The following table provides a reconciliation of weighted average common shares to diluted average common shares:
	Three Months Ended			Nine Months Ended
	September 30			September 30
(Shares in thousands)		2012	2011	2012	2011
Weighted average common shares outstanding - basic	246,628		261,284	249,742	261,250
Effect of dilutive securities	1,678		1,519	-	2,447
Weighted average common shares outstanding - diluted	248,306		262,803	249,742	263,697

The following tables provide a reconciliation of earnings/(loss) per common and diluted share:
	Three Months Ended				Nine Months Ended
	September 30				September 30
Earnings/(loss) per common share:	2012		2011		2012		2011
Income/(loss) per share from continuing operations available to common shareholders	$	0.10	$	0.12	$	(0.27)	$	0.33
Income/(loss) per share from discontinued operations, net of tax		-		0.02		-		0.04
Net income/(loss) per share available to common shareholders	$	0.10	$	0.14	$	(0.27)	$	0.37
Diluted earnings/(loss) per common share:
Diluted income/(loss) per share from continuing operations available to common shareholders	$	0.10	$	0.12	$	(0.27)	$	0.33
Diluted income/(loss) per share from discontinued operations, net of tax		-		0.02		-		0.04
Diluted income/(loss) per share available to common shareholders	$	0.10	$	0.14	$	(0.27)	$	0.37

For the three months ended September 30, 2012, the dilutive effect for all potential common shares was 1.7 million. For the nine months ended September 30, 2012, all potential common shares were antidilutive due to the net loss attributable to common shareholders for that period. For the three and nine months ended September 30, 2011, the dilutive effect for all potential common shares was 1.5 million and 2.4 million, respectively.10.0million and 10.7million stock options, with weighted average exercise prices of $21.27and $24.34per share for the three months ended September 30, 2012 and 2011, respectively, were excluded from diluted shares because including such shares would be antidilutive. 10.4million and 10.1million stock options, with weighted averageexercise prices of $21.94and $25.91per share for the nine months ended September 30, 2012 and 2011, respectively, were also excluded from diluted shares. Other equity awards of1.1 million for the three months ended September 30,2011 were excluded from diluted shares while other equity awards of 3.5million and .3 million for the nine months ended September 30,2012 and 2011, respectively, were excluded from diluted shares because including such shares would have been antidilutive. The CPP common stock warrant, which was dilutive for the nine-month period ended September 30, 2011, was repurchased in2011 and is not included in diluted shares in 2012.