Earnings Per Share

3 Months Ended

Mar. 31, 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
	March 31			March 31
(Dollars in thousands)	2012			2011
Income/(loss) from continuing operations	$	33,806		$	42,132
Income/(loss) from discontinued operations, net of tax		(435	)		871
Net income/(loss)		33,371			43,003
Net income attributable to noncontrolling interest		2,844			2,844
Net income/(loss) available to common shareholders		30,527			40,159
Income/(loss) from continuing operations		33,806			42,132
Net income attributable to noncontrolling interest		2,844			2,844
Net income/(loss) from continuing operations available to common shareholders	$	30,962		$	39,288

The component of Income 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 $31.0 million and $39.3 million during the three months ended March 31, 2012 and 2011, respectively.

The following table provides a reconciliation of weighted average common shares to diluted average common shares:

	Three Months Ended
	March 31		March 31
(Shares in thousands)	2012		2011
Weighted average common shares outstanding - basic		253,527		261,174
Effect of dilutive securities		1,842		4,382
Weighted average common shares outstanding - diluted		255,369		265,556

The following tables provide a reconciliation of earnings/(loss) per common and diluted share:

	Three Months Ended
	March 31		March 31
Earnings/(loss) per common share:	2012		2011
Income/(loss) per share from continuing operations available to common shareholders	$	0.12	$	0.15
Income/(loss) per share from discontinued operations, net of tax		—		—
Net income/(loss) per share available to common shareholders	$	0.12	$	0.15
Diluted earnings/(loss) per common share:
Diluted income/(loss) per share from continuing operations available to common shareholders	$	0.12	$	0.15
Diluted income/(loss) per share from discontinued operations, net of tax		—		—
Diluted income/(loss) per share available to common shareholders	$	0.12	$	0.15

For the three months ended March 31, 2012, the dilutive effect for all potential common shares was 1.8 million compared to 4.4 million in 2011. 9.9 million and 10.5 million stock options, with weighted average exercise prices of $23.96 and $26.70 per share for the three months ended March 31, 2012 and 2011, respectively, were excluded from diluted shares because including such shares would be antidilutive. All other equity award grants, which include restricted stock and units, were dilutive for the period ended March 31, 2012. Other equity awards of .1 million for the three months ended March 31, 2011, were excluded from diluted shares because including such shares would have been antidilutive. The CPP common stock warrant, which was dilutive in first quarter 2011, was repurchased in 2011 and is not included in diluted shares in 2012.