The following table presents the computation of basic and diluted earnings per share:

	Three months ended June 30,						Nine months ended June 30,
	2011			2010			2011			2010
	(in thousands, except per share amounts)
Income for basic earnings per common share:
Net income attributable to RJF	$	46,786		$	60,687		$	209,426		$	159,218
Less allocation of earnings and dividends to participating securities (1)		(1,392	)		(2,554	)		(6,811	)		(6,726	)
Net income attributable to RJF common shareholders	$	45,394		$	58,133		$	202,615		$	152,492

Income for diluted earnings per common share:
Net income attributable to RJF	$	46,786		$	60,687		$	209,426		$	159,218
Less allocation of earnings and dividends to participating securities (1)		(1,387	)		(2,548	)		(6,791	)		(6,715	)
Net income attributable to RJF common shareholders	$	45,399		$	58,139		$	202,635		$	152,503

Common shares:
Average common shares in basic computation		123,238			119,622			122,200			119,180
Dilutive effect of outstanding stock options and certain restricted stock units		720			397			489			276
Average common shares used in diluted computation		123,958			120,019			122,689			119,456

Earnings per common share:
Basic	$	0.37		$	0.49		$	1.66		$	1.28
Diluted	$	0.37		$	0.48		$	1.65		$	1.28
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive		534			3,395			1,035			3,485

(1)

Represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 3.8 million and 5.3 million for the three months ended June 30, 2011 and 2010, respectively. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 4.1 million and 5.3 million for the nine months ended June 30, 2011 and 2010, respectively. Dividends paid to participating securities amounted to $486,000 and $559,000 for the three months ended June 30, 2011 and 2010, respectively. Dividends paid to participating securities amounted to $1.5 million and $1.7 million during the nine months ended June 30, 2011 and 2010, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.