SunTrust 2008 Annual Report Download - page 92

Table 23 – Reconcilement of Non-U.S. GAAP Measures – Quarterly
Three Months Ended
2008 2007
(Dollars in millions, except per share and other data) December 31 September 30 June 30 March 31 December 31 September 30 June 30 March 31
Net income/(loss) ($347.6) $312.4 $540.4 $290.6 $11.1 $420.2 $681.4 $521.3
Securities losses/(gains), net of tax (254.9) (107.3) (345.9) 37.5 (3.5) (0.6) (146.6) -
Net income/(loss) excluding net securities losses/(gains) (602.5) 205.1 194.5 328.1 7.6 419.6 534.8 521.3
Coke stock dividend, net of tax (10.1) (10.1) (14.7) (14.7) (13.2) (13.2) (13.2) (14.6)
Net income/(loss) excluding net securities losses/(gains) and the Coke stock
dividend, net of tax (612.6) 195.0 179.8 313.4 (5.6) 406.4 521.6 506.7
Less: Series A preferred dividends 5.0 5.1 5.1 7.0 7.9 7.6 7.5 7.4
Less: U.S. Treasury preferred dividends 26.6 -------
Net income/(loss) available to common shareholders excluding net securities
losses/(gains) and the
Coke stock dividend, net of tax ($644.2) $189.9 $174.7 $306.4 ($13.5) $398.8 $514.1 $499.3
Efficiency ratio182.47 % 67.78 % 53.06 % 56.40 % 82.19 % 63.35 % 52.69 % 59.79 %
Impact of excluding amortization/impairment of intangible assets other than
MSRs (0.90) (0.75) (2.49) (0.93) (1.33) (1.22) (1.05) (1.14)
Tangible efficiency ratio281.57 % 67.03 % 50.57 % 55.47 % 80.86 % 62.13 % 51.64 % 58.65 %
Total average assets $177,047.3 $173,888.5 $175,548.8 $176,916.9 $175,130.5 $174,653.4 $179,996.5 $181,506.4
Average net unrealized securities gains (1,371.6) (1,526.4) (2,296.0) (2,454.0) (2,408.6) (2,091.9) (2,398.7) (2,305.3)
Average assets less net unrealized securities gains $175,675.7 $172,362.1 $173,252.8 $174,462.9 $172,721.9 $172,561.5 $177,597.8 $179,201.1
Total average common shareholders’ equity $17,487.1 $17,481.9 $17,593.2 $17,561.7 $17,532.8 $17,050.2 $17,428.1 $17,220.4
Average accumulated other comprehensive income (997.0) (871.4) (1,488.3) (1,533.4) (1,292.8) (998.6) (1,206.5) (1,074.5)
Total average realized common shareholders’ equity $16,490.1 $16,610.5 $16,104.9 $16,028.3 $16,240.0 $16,051.6 $16,221.6 $16,145.9
Return on average total assets (0.78) % 0.71 % 1.24 % 0.66 % 0.03 % 0.95 % 1.52 % 1.16 %
Impact of excluding net realized and unrealized securities losses/(gains) and the
Coke stock dividend (0.61) (0.26) (0.82) 0.06 (0.04) (0.02) (0.34) (0.01)
Return on average total assets less net realized and unrealized securities losses/
(gains) and the
Coke stock dividend3(1.39) % 0.45 % 0.42 % 0.72 % (0.01) % 0.93 % 1.18 % 1.15 %
Return on average common shareholders’ equity (8.63) % 6.99 % 12.24 % 6.49 % 0.07 % 9.60 % 15.51 % 12.10 %
Impact of excluding net realized and unrealized securities losses/(gains) and the
Coke stock dividend (6.91) (2.44) (7.88) 1.20 (0.40) 0.26 (2.80) 0.44
Return on average realized common shareholders’ equity4(15.54) % 4.55 % 4.36 % 7.69 % (0.33) % 9.86 % 12.71 % 12.54 %
Total shareholders’ equity $22,388.1 $17,956.0 $17,907.1 $18,431.4 $18,052.5 $17,907.2 $17,368.9 $17,968.5
Goodwill (6,941.1) (7,062.9) (7,056.0) (6,923.0) (6,921.5) (6,912.1) (6,897.1) (6,896.7)
Other intangible assets including MSRs (978.2) (1,328.0) (1,394.9) (1,379.5) (1,308.6) (1,269.1) (1,290.5) (1,293.5)
MSRs 810.5 1,150.0 1,193.5 1,143.4 1,049.4 996.0 942.0 921.3
Tangible equity 15,279.3 10,715.1 10,649.7 11,272.3 10,871.8 10,722.0 10,123.3 10,699.6
Preferred stock (5,221.7) (500.0) (500.0) (500.0) (500.0) (500.0) (500.0) (500.0)
Tangible common equity $10,057.6 $10,215.1 $10,149.7 $10,772.3 $10,371.8 $10,222.0 $9,623.3 $10,199.6
Total assets $189,138.0 $174,776.8 $177,232.7 $178,986.9 $179,573.9 $175,857.2 $180,314.4 $186,384.8
Goodwill (7,043.5) (7,062.9) (7,056.0) (6,923.0) (6,921.5) (6,912.1) (6,897.1) (6,896.7)
Other intangible assets including MSRs (1,035.4) (1,390.0) (1,442.1) (1,430.3) (1,363.0) (1,327.1) (1,290.5) (1,293.5)
MSRs 810.5 1,150.0 1,193.5 1,143.4 1,049.4 996.0 942.0 921.3
Tangible assets $181,869.6 $167,473.9 $169,928.1 $171,777.0 $172,338.8 $168,614.0 $173,068.8 $179,115.9
Tangible equity to tangible assets58.40 % 6.40 % 6.27 % 6.56 % 6.31 % 6.36 % 5.85 % 5.97 %
Tangible common equity to tangible assets65.53 % 6.10 % 5.97 % 6.27 % 6.02 % 6.06 % 5.56 % 5.69 %
Net interest income $1,176.9 $1,146.2 $1,156.7 $1,139.8 $1,167.5 $1,192.2 $1,195.3 $1,164.6
Taxable - equivalent adjustment 31.8 29.5 28.3 28.0 27.3 27.0 24.7 23.7
Net interest income - FTE 1,208.7 1,175.7 1,185.0 1,167.8 1,194.8 1,219.2 1,220.0 1,188.3
Noninterest income 717.8 1,285.2 1,413.0 1,057.5 576.0 819.1 1,154.6 878.9
Total revenue - FTE 1,926.5 2,460.9 2,598.0 2,225.3 1,770.8 2,038.3 2,374.6 2,067.2
Securities losses/(gains), net (411.1) (173.0) (549.8) 60.6 (5.7) (1.0) (236.4) -
Total revenue - FTE excluding net securities losses/(gains)7$1,515.4 $2,287.9 $2,048.2 $2,285.9 $1,765.1 $2,037.3 $2,138.2 $2,067.2
1Computed by dividing noninterest expense by total revenue—FTE. The efficiency ratios are presented on an FTE basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. We believe
this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.
2We present a tangible efficiency ratio which excludes the amortization/impairment of intangible assets other than MSRs. We believe this measure is useful to investors because, by removing the effect of these intangible asset costs (the level
of which may vary from company to company), it allows investors to more easily compare our efficiency to other companies in the industry. This measure is utilized by us to assess our efficiency and that of our lines of business.
3We present a return on average assets less net unrealized gains on securities. The foregoing numbers primarily reflect adjustments to remove the effects of the securities portfolio which includes our ownership of common stock of The Coca-
Cola Company. We use this information internally to gauge our actual performance in the industry. We believe that the return on average assets less the net unrealized securities gains is more indicative of our return on assets because it more
accurately reflects the return on the assets that are related to our core businesses which are primarily customer relationship and customer transaction driven. The return on average assets less net unrealized gains on securities is computed by
dividing annualized net income, excluding securities gains/losses and The Coca-Cola Company dividend, net of tax, by average assets less net unrealized securities gains.
4We believe that the return on average realized common shareholders’ equity is more indicative of our return on equity because the excluded equity relates primarily to the holding of a specific security. The return on average realized
common shareholders’ equity is computed by dividing annualized net income available to common shareholders, excluding securities gains/losses and The Coca -Cola Company dividend, net of tax, by average realized common
shareholders’ equity.
5We present a tangible equity to tangible assets ratio that excludes the after-tax impact of purchase accounting intangible assets. We believe this measure is useful to investors because, by removing the effect of intangible assets that result
from merger and acquisition activity (the level of which may vary from company to company), it allows investors to more easily compare our capital adequacy to other companies in the industry. This measure is used by us to analyze capital
adequacy.
6We present a tangible common equity to tangible assets ratio that excludes preferred stock from tangible equity. We believe this measure is useful to investors because, by removing the preferred stock (the level of which may vary from
company to company), it allows investors to more easily compare our capital adequacy to other companies in the industry who also use this measure. This measure is also used by us to analyze capital adequacy.
7We present total revenue- FTE excluding realized securities losses/(gains), net. We believe noninterest income without net securities (gains)/losses is more indicative of our performance because it isolates income that is primarily customer
relationship and customer transaction driven and is more indicative of normalized operations.
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