Huntington National Bank 2004 Annual Report Download - page 139

GLOSSARY OF SELECTED FINANCIAL TERMS HUNTINGTON BANCSHARES INCORPORATED
Allowances for Credit Losses (ACL) – The reserves established by Management to cover unrecognized credit losses inherent in both
loan and lease portfolio and unfunded commitments and represents the sum of the allowance for lease losses (ALLL) and the
allowance for unfunded loan commitments and letters of credit (AULC).
Book Value Per Common Share – Total common shareholders’ equity divided by the total number of common shares outstanding.
Common Shares Outstanding – Total number of shares of common stock issued less common shares held in treasury.
Core Deposits – Total deposits, excluding foreign deposits, brokered time deposits, negotiable certificates of deposit, and domestic
time deposits greater than $100,000.
Derivative – A contractual agreement between two parties to exchange cash or other assets in response to changes in an external
factor, such as an interest rate or a foreign exchange rate.
Dividend Payout Ratio – Dividends per common share divided by net income per diluted common share.
Effective Tax Rate – Income tax expense divided by income before taxes.
Efficiency Ratio – Non-interest expense (excluding amortization of intangible assets) divided by the sum of fully taxable equivalent
net interest income and non-interest income (excluding net securities transactions).
Goodwill – The excess of the purchase price of net assets over the fair value of net assets acquired in a business combination.
Net Charge-Offs – Loan and lease losses less related recoveries of loans and leases previously charged off.
Net Income Per Common Share – Basic – Net income divided by the number of weighted-average common shares outstanding.
Net Income Per Common Share – Diluted – Net income divided by the sum of weighted-average common shares outstanding plus
the effect of common stock equivalents that have the potential to be converted into common shares outstanding.
Net Interest Income – The difference between interest income and interest expense.
Net Interest Margin – Net interest income on a fully taxable equivalent basis divided by total average earning assets.
Non-Core Funding – Includes domestic time deposits of $100,000 or more, brokered time deposits and negotiable CDs, foreign time
deposits, short-term borrowings, Federal Home Loan Bank advances, subordinated notes, and other long-term debt. It also represents
total liabilities less core deposits, accrued expenses, and other liabilities.
Non-Performing Assets (NPAs) – Loans and leases on which interest income is not being accrued for financial reporting purposes;
loans for which the interest rates or terms of repayment have been renegotiated; and real estate which has been acquired through
foreclosure.
Provision For Credit Losses – The periodic expense needed to maintain the level of the allowance for loan and lease losses and
allowance for unfunded commitments and letters of credit.
Reported Basis – Amounts presented in accordance with accounting principles generally accepted in the United States (GAAP).
Residual Value – The expected value of a leased asset at the end of the lease term.
Return on Average Total Assets (ROA) – Net income as a percent of average total assets.
Return on Average Total Equity (ROE) – Net income as a percent of average shareholders’ equity.
Servicing Right – A contractual agreement to provide certain billing, bookkeeping, and collection services with respect to a pool
of loans.
Tangible Equity Ratio – Total equity less intangible assets, primarily goodwill, divided by total assets less intangible assets.
Tier 1 Leverage Ratio – Tier 1 Risk-Based Capital divided by average adjusted quarterly total assets. Average adjusted quarterly assets
are adjusted to exclude non-qualifying intangible assets.
Tier 1 Risk-Based Capital – Total shareholders’ equity (excluding unrealized gains and losses on securities available for sale) less non-
qualifying goodwill and other intangibles.
137