Regions Bank 2008 Annual Report Download - page 139

NOTE 17. EARNINGS PER COMMON SHARE
The following table sets forth the computation of basic earnings per common share and diluted earnings per
common share for the years ended December 31:
2008 2007 2006
(In thousands, except per share amounts)
Numerator:
Income (loss) from continuing operations .................... $(5,584,313) $1,393,163 $1,372,521
Less: Preferred stock dividends ............................ (26,236) — —
Income (loss) from continuing operations available to common
shareholders ......................................... (5,610,549) 1,393,163 1,372,521
Loss from discontinued operations, net of tax ................. (11,461) (142,068) (19,376)
Net income (loss) available to common shareholders ........... $(5,622,010) $1,251,095 $1,353,145
Denominator:
Weighted-average common shares outstanding—basic ......... 695,003 707,981 501,681
Common stock equivalents ............................... — 4,762 5,308
Weighted-average common shares outstanding—diluted ........ 695,003 712,743 506,989
Earnings (loss) per common share from continuing operations(1):
Basic ................................................. $ (8.07) $ 1.97 $ 2.74
Diluted ............................................... (8.07) 1.95 2.71
Earnings (loss) per common share from discontinued operations(1):
Basic ................................................. (0.02) (0.20) (0.04)
Diluted ............................................... (0.02) (0.20) (0.04)
Earnings (loss) per common share(1):
Basic ................................................. (8.09) 1.77 2.70
Diluted ............................................... (8.09) 1.76 2.67
(1) Certain per share amounts may not appear to reconcile due to rounding.
The effect from the assumed exercise of 52,955,000, 31,382,000 and 412,000 stock options was not
included in the above computation of diluted earnings per common share for 2008, 2007 and 2006, respectively,
because such amounts would have an antidilutive effect on earnings per common share.
NOTE 18. SHARE-BASED PAYMENTS
Regions has stock option and long-term incentive compensation plans, which permit the granting of
incentive awards in the form of stock options, restricted stock, restricted stock units and stock appreciation rights.
While Regions has the ability to issue stock appreciation rights, as of December 31, 2008, 2007 and 2006, there
were no outstanding stock appreciation rights. The terms of all awards issued under these plans are determined
by the Compensation Committee of the Board of Directors, but no options may be granted after the tenth
anniversary of the plans’ adoption. Options and restricted stock granted usually vest based on employee service
and generally vest within three years from the date of the grant. Grants of performance-based restricted stock
typically have a one-year performance period, after which shares vest within three years after the grant date.
Restricted stock units, which were granted in 2008 and 2007, have a vesting period of five years. Generally, the
terms of these plans stipulate that the exercise price of options may not be less than the fair market value of
Regions’ common stock at the date the options are granted; however, under prior stock option plans,
non-qualified options could be granted with a lower exercise price than the fair market value of Regions’
common stock on the date of grant. The contractual life of options granted under these plans ranges from seven
to ten years from the date of grant. Regions issues new shares from authorized reserves upon exercise. Grantees
of restricted stock awards or units must either remain employed with the Company for certain periods from the
date of grant in order for shares to be released or issued or retire after meeting the standards of a retiree, at which
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