SunTrust 2009 Annual Report Download - page 93

Table 22 – Reconcilement of Non-U.S. GAAP Measures – Quarterly
Three Months Ended
2009 2008
(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) ($248.1) ($316.9) ($183.5) ($815.2) ($347.6) $312.4 $540.4 $290.6
Securities gains/(losses), net of tax 45.2 29.0 (15.4) 2.1 254.9 107.3 345.9 (37.5)
Net income/(loss) excluding net securities gains/(losses), net of tax (293.3) (345.9) (168.1) (817.3) (602.5) 205.1 194.5 328.1
Coke stock dividend, net of tax (10.9) (10.9) (10.9) (10.9) (10.1) (10.1) (14.7) (14.7)
Net income/(loss) excluding net securities gains/(losses) and Coke stock
dividend, net of tax (304.2) (356.8) (179.0) (828.2) (612.6) 195.0 179.8 313.4
Preferred dividends, Series A (1.8) (1.8) (5.6) (5.0) (5.1) (5.1) (5.1) (7.0)
U.S. Treasury preferred dividends and accretion of discount (66.5) (66.4) (66.5) (66.3) (26.6) - - -
Dividends and undistributed earnings allocated to unvested shares - 3.1 1.8 11.1 4.3 (2.9) (5.3) (2.0)
Gain on purchase of Series A preferred stock - 4.9 89.4 - ----
Net income/(loss) available to common shareholders excluding net securities
gains/(losses) and the Coke stock dividend, net of tax ($372.5) ($417.0) ($159.9) ($888.4) ($640.0) $187.0 $169.4 $304.4
Net income/(loss) available to common shareholders ($316.4) ($377.1) ($164.4) ($875.4) ($374.9) $304.4 $530.0 $281.6
Goodwill/intangible impairment charges other than MSRs attributable to
common shareholders, after tax - - - (714.8) - - (27.0) -
Net income/(loss) available to common shareholders excluding goodwill/
intangible impairment charges other than MSRs, after tax8($316.4) ($377.1) ($164.4) ($160.6) ($374.9) $304.4 $557.0 $281.6
Efficiency ratio174.58 % 73.53 % 69.68 % 97.22 % 82.34 % 67.67 % 52.94 % 56.27 %
Impact of excluding amortization/impairment of goodwill/intangible assets
other than MSRs (0.62) (0.71) (0.63) (34.25) (0.90) (0.75) (2.49) (0.93)
Tangible efficiency ratio273.96 % 72.82 % 69.05 % 62.97 % 81.44 % 66.92 % 50.45 % 55.34 %
Total average assets $174,040.5 $172,463.2 $176,480.5 $178,871.3 $177,047.3 $173,888.5 $175,548.8 $176,916.9
Average net unrealized securities gains 1,985.7 1,607.3 1,506.5 1,341.2 1,371.6 1,526.4 2,296.0 2,454.0
Average assets less net unrealized securities gains $172,054.8 $170,855.9 $174,974.0 $177,530.1 $175,675.7 $172,362.1 $173,252.8 $174,462.9
Total average common shareholders’ equity $17,467.0 $17,556.4 $16,699.7 $17,144.2 $17,600.1 $17,597.4 $17,709.3 $17,678.7
Average accumulated other comprehensive income (698.3) (504.0) (745.2) (824.3) (997.0) (871.4) (1,488.3) (1,533.4)
Total average realized common shareholders’ equity $16,768.7 $17,052.4 $15,954.5 $16,319.9 $16,603.1 $16,726.0 $16,221.0 $16,145.3
Return on average total assets (0.57) % (0.73) % (0.42) % (1.85) % (0.78) % 0.71 % 1.24 % 0.66 %
Impact of excluding net realized and unrealized securities gains/(losses) and
the Coke stock dividend (0.13) (0.10) 0.01 (0.04) (0.61) (0.26) (0.82) 0.06
Return on average total assets less net unrealized securities gains/(losses)3(0.70) % (0.83) % (0.41) % (1.89) % (1.39) % 0.45 % 0.42 % 0.72 %
Return on average common shareholders’ equity (7.19) % (8.52) % (3.95) % (20.71) % (8.47) % 6.88 % 12.04 % 6.41 %
Impact of excluding net realized and unrealized securities gains/(losses) and
the Coke stock dividend (1.62) (1.18) (0.07) (1.37) (6.86) (2.43) (7.72) 1.17
Return on average realized common shareholders’ equity4(8.81) % (9.70) % (4.02) % (22.08) % (15.33) % 4.45 % 4.32 % 7.58 %
Total shareholders’ equity $22,530.9 $22,908.3 $22,953.2 $21,645.6 $22,500.8 $18,069.4 $18,023.1 $18,548.6
Goodwill, net of deferred taxes (6,204.4) (6,204.9) (6,213.2) (6,224.6) (6,941.1) (7,062.8) (7,056.0) (6,923.0)
Other intangible assets including MSRs, net of deferred taxes (1,671.1) (1,559.8) (1,468.3) (1,049.1) (978.2) (1,328.1) (1,395.0) (1,379.5)
MSRs 1,539.4 1,422.7 1,322.3 894.8 810.5 1,150.0 1,193.5 1,143.4
Tangible equity 16,194.8 16,566.3 16,594.0 15,266.7 15,392.0 10,828.5 10,765.6 11,389.5
Preferred stock (4,917.3) (4,911.4) (4,918.9) (5,227.4) (5,221.7) (500.0) (500.0) (500.0)
Tangible common equity $11,277.5 $11,654.9 $11,675.1 $10,039.3 $10,170.3 $10,328.5 $10,265.6 $10,889.5
Total assets $174,164.7 $172,717.7 $176,735.0 $179,116.4 $189,138.0 $174,776.8 $177,232.7 $178,986.9
Goodwill (6,319.1) (6,314.4) (6,314.4) (6,309.4) (7,043.5) (7,062.8) (7,056.0) (6,923.0)
Other intangible assets including MSRs (1,711.3) (1,604.1) (1,517.5) (1,103.4) (1,035.4) (1,390.0) (1,442.1) (1,430.2)
MSRs 1,539.4 1,422.7 1,322.3 894.8 810.5 1,150.0 1,193.5 1,143.4
Tangible assets $167,673.7 $166,221.9 $170,225.4 $172,598.4 $181,869.6 $167,474.0 $169,928.1 $171,777.1
Tangible equity to tangible assets59.66 % 9.96 % 9.75 % 8.85 % 8.46 % 6.47 % 6.34 % 6.63 %
Tangible book value per common share6$22.59 $23.35 $23.41 $28.15 $28.69 $29.18 $29.04 $31.13
Net interest income $1,176.5 $1,137.5 $1,089.7 $1,062.1 $1,176.8 $1,146.2 $1,156.7 $1,139.9
Taxable-equivalent adjustment 30.3 30.7 31.4 30.9 31.8 29.5 28.3 27.9
Net interest income - FTE 1,206.8 1,168.2 1,121.1 1,093.0 1,208.6 1,175.7 1,185.0 1,167.8
Noninterest income 742.3 775.0 1,071.7 1,121.2 717.8 1,285.2 1,413.0 1,057.5
Total revenue - FTE 1,949.1 1,943.2 2,192.8 2,214.2 1,926.4 2,460.9 2,598.0 2,225.3
Securities gains/(losses), net 72.9 46.7 (24.9) 3.4 411.1 173.0 549.8 (60.6)
Total revenue - FTE excluding net securities gains/(losses), net7$1,876.2 $1,896.5 $2,217.7 $2,210.8 $1,515.3 $2,287.9 $2,048.2 $2,285.9
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.
3Computed by dividing annualized net income/(loss), excluding tax effected net securities gains/(losses) and the Coke stock dividend, by average assets less net unrealized gains on securities. 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 the our return on assets because it more accurately reflects the return on the assets that are related to
our core businesses which are primarily client relationship and client transaction driven.
4Computed by dividing annualized net income/(loss) available to common shareholders, excluding tax effected net securities gains/(losses) and the Coke stock dividend, by average realized common shareholders’ equity. We 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.
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 book value per common share that excludes the after-tax impact of purchase accounting intangible assets and also excludes preferred stock from tangible equity. We believe this measure is useful to investors because, by
removing the effect of intangible assets that result from merger and acquisition activity as well as preferred stock (the level of which may vary from company to company), it allows investors to more easily compare our book value on common
stock to other companies in the industry. This measure is also used by management to analyze capital adequacy.
7We present total revenue- FTE excluding realized securities gains/(losses), net. We believe noninterest income without net securities gains/(losses) is more indicative of our performance because it isolates income that is primarily client
relationship and client transaction driven and is more indicative of normalized operations.
8We present net income/(loss) available to common shareholders that excludes the impairment charge on goodwill. We believe this measure is useful to investors, because removing the non-cash impairment charge provides a more
representative view of normalized operations and the measure also allows better comparability with peers in the industry who also provide a similar presentation when applicable. In addition, management uses this measure internally to analyze
performance.
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