Huntington National Bank 2011 Annual Report Download - page 97

Capital Adequacy
The following table presents risk-weighted assets and other financial data necessary to calculate certain
financial ratios, including the Tier 1 common equity ratio, which we use to measure capital adequacy:
Table 36 — Capital Adequacy
December 31,
2011 2010 2009 2008 2007
(dollar amounts in millions)
Consolidated capital calculations:
Common shareholders’ equity ..................... $ 5,032 $ 4,618 $ 3,648 $ 5,351 $ 5,951
Preferred shareholders’ equity ..................... 386 363 1,688 1,878 —
Total shareholders’ equity ........................... 5,418 4,981 5,336 7,229 5,951
Goodwill ...................................... (444) (444) (444) (3,055) (3,059)
Other intangible assets ........................... (175) (229) (289) (357) (428)
Other intangible asset deferred tax liability(1) .......... 61 80 101 125 150
Total tangible equity(2) ............................. 4,860 4,388 4,704 3,942 2,614
Preferred shareholders’ equity ..................... (386) (363) (1,688) (1,878) —
Total tangible common equity(2) ...................... $ 4,474 $ 4,025 $ 3,016 $ 2,064 $ 2,614
Total assets .................................... $54,451 $53,820 $51,555 $54,353 $54,697
Goodwill ...................................... (444) (444) (444) (3,055) (3,059)
Other intangible assets ........................... (175) (229) (289) (357) (428)
Other intangible asset deferred tax liability(1) .......... 61 80 101 125 150
Total tangible assets(2) ............................. $53,893 $53,227 $50,923 $51,066 $51,360
Tier 1 capital ................................... $ 5,557 $ 5,022 $ 5,201 $ 5,036 $ 3,460
Preferred shareholders’ equity ..................... (386) (363) (1,688) (1,878) —
Trust-preferred securities ......................... (532) (570) (570) (736) (785)
REIT-preferred stock ............................. (50) (50) (50) (50) (50)
Tier 1 common equity(2) ............................ $ 4,589 $ 4,039 $ 2,893 $ 2,372 $ 2,625
Risk-weighted assets (RWA) ........................ $45,891 $43,471 $43,248 $46,994 $46,044
Tier 1 common equity / RWA ratio(2) .................. 10.00% 9.29% 6.69% 5.05% 5.70%
Tangible equity / tangible asset ratio(2) ................. 9.02 8.24 9.24 7.72 5.09
Tangible common equity / tangible asset ratio(2) ......... 8.30 7.56 5.92 4.04 5.09
Tangible common equity / RWA ratio(2) ............... 9.75 9.26 6.97 4.39 5.68
(1) Intangible assets are net of deferred tax liability and calculated assuming a 35% tax rate.
(2) See Non-Regulatory and Capital Ratios located in the Additional Disclosure section.
Capital continued to strengthen as period-end capital ratios improved compared to December 31, 2010. Our
Tier 1 common risk-based ratio improved 71 basis points to 10.00% at December 31, 2011. This increase
primarily reflected the combination of an increase in retained earnings and a reduction in the disallowed tax
deferred asset, partially offset by an increase in risk-weighted assets and the impacts related to the payments of
dividends and the repurchase of the TARP warrants.
Although not a regulatory capital ratio, the Tier 1 common risk-based ratio has gained prominence with our
regulators and investors. The Dodd-Frank Act requires that any bank with assets over $50.0 billion would be
subject to additional scrutiny. U.S. regulators have identified such qualifying banks as SIFIs. With $54.5 billion
in assets at December 31, 2011, we are at the lower range of the SIFI group. Although we do not have sufficient
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