Huntington National Bank 2011 Annual Report Download - page 47

The following table reflects the earnings impact of the above-mentioned significant items for periods
affected by this Results of Operations discussion:
Table 3 — Significant Items Influencing Earnings Performance Comparison (1)
2011 2010 2009
After-tax EPS After-tax EPS After-tax EPS
(dollar amounts in thousands, except per share
amounts)
Net income (loss) — GAAP .............. $542,613 $312,347 $(3,094,179)
Earnings per share, after-tax ............ $ 0.59 $ 0.19 $(6.14)
Change from prior year — $ .......... 0.40 6.33 (5.70)
Change from prior year — % ......... 211 % N.R.% N.R%
Significant items — favorable (unfavorable) impact: Earnings(2) EPS(3) Earnings(2) EPS(3) Earnings(2) EPS(3)
Litigation reserves addition ............... $ (17,028) $(0.01) $ —$—$ —$—
Visa®— related derivative loss ........... (6,385) — —— ——
Net tax benefit recognized(4) .............. ——38,222 0.05 — —
Franklin-related loans transferred to held for
sale ................................ ——(75,500) (0.07) — —
Franklin relationship restructuring(4) ........ —— — — 159,895 0.30
Gain related to sale of Visa®stock ......... —— — — 31,362 0.04
Deferred tax valuation allowance benefit(4) . . —— — — 12,847 0.02
Goodwill impairment .................... —— — — (2,606,944) (4.89)
FDIC special assessment ................. —— — — (23,555) (0.03)
Gain on early extinguishment of debt ....... 9,697 0.01 — — 141,024 0.18
Preferred stock conversion deemed
dividend ............................ —— — (0.08) — (0.11)
N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current
period.
(1) See Significant Factors Influencing Financial Performance discussion.
(2) Pretax unless otherwise noted.
(3) Based upon the annual average outstanding diluted common shares.
(4) After-tax.
Pretax, Pre-provision Income Trends
One non-GAAP performance measurement that we believe is useful in analyzing underlying performance
trends, particularly in times of economic stress, is pretax, pre-provision income. This is the level of earnings
adjusted to exclude the impact of: (a) provision expense, which is excluded because its absolute level is elevated
and volatile in times of economic stress, (b) investment securities gains/losses, which are excluded because
securities market valuations may also become particularly volatile in times of economic stress, (c) amortization
of intangibles expense, which is excluded because the return on tangible equity common equity is a key
measurement that we use to gauge performance trends, and (d) certain other items identified by us (see
Significant Items above) that we believe may distort our underlying performance trends.
With our credit costs now returning to more normal levels, going forward we do not intend to report a PTPP
metric.
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