SunTrust 2010 Annual Report Download - page 103

Table 33 – Reconcilement of Non-U.S. GAAP Measures – Quarterly
Three Months Ended
(Dollars in millions, except per share and other data)
2010 2009
December 31 September 30 June 30 March 31 December 31 September 30 June 30 March 31
Net income/(loss) $185 $153 $12 ($161) ($248) ($317) ($183) ($815)
Securities (gains)/losses, net of tax (39) (43) (35) (1) (45) (29) 15 (2)
Net income/(loss) excluding net securities (gains)/losses, net of tax 146 110 (23) (162) (293) (346) (168) (817)
Coke stock dividend, net of tax (12) (12) (12) (12) (11) (11) (11) (11)
Net income/(loss) excluding net securities (gains)/losses and Coke stock dividend, net of tax 134 98 (35) (174) (304) (357) (179) ($828)
Preferred dividends, Series A (2) (2) (2) (2) (2) (2) (6) (5)
U.S. Treasury preferred dividends and accretion of discount (67) (67) (66) (66) (66) (66) (66) (66)
Dividends and undistributed earnings allocated to unvested shares (2) - - - -3211
Gain on purchase of Series A preferred stock ----- 5 89 -
Net income/(loss) available to common shareholders excluding securities (gains)/losses and the Coke stock
dividend $63 $29 ($103) ($242) ($372) ($417) ($160) ($888)
Net income/(loss) available to common shareholders $114 $84 ($56) ($229) ($316) ($377) ($164) ($875)
Goodwill/intangible impairment charges other than MSRs attributable to common shareholders, after tax ----- - - (715)
Net income/(loss) available to common shareholders excluding goodwill/intangible impairment charges other
than MSRs, after tax 8$114 $84 ($56) ($229) ($316) ($377) ($164) ($160)
Efficiency ratio 166.57 % 64.80 % 69.57 % 71.60 % 74.58 % 73.53 % 69.68 % 97.19 %
Impact of excluding amortization/impairment of goodwill/intangible assets other than MSRs (0.50) (0.56) (0.61) (0.69) (0.62) (0.71) (0.63) (34.64)
Tangible efficiency ratio 266.07 % 64.24 % 68.96 % 70.91 % 73.96 % 72.82 % 69.05 % 62.55 %
Total average assets $174,768 $171,999 $171,273 $171,429 $174,041 $172,463 $176,480 $178,871
Average net unrealized securities gains (2,664) (2,395) (1,969) (1,884) (1,986) (1,607) (1,506) (1,341)
Average assets less net unrealized securities gains $172,104 $169,604 $169,304 $169,545 $172,055 $170,856 $174,974 $177,530
Total average common shareholders’ equity $18,638 $18,159 $17,387 $17,419 $17,467 $17,556 $16,700 $17,144
Average accumulated other comprehensive income (2,055) (1,721) (998) (889) (698) (504) (745) (824)
Total average realized common shareholders’ equity $16,583 $16,438 $16,389 $16,530 $16,769 $17,052 $15,955 $16,320
Return on average total assets 0.42 % 0.35 % 0.03 % (0.38)% (0.57)% (0.73)% (0.42)% (1.85)%
Impact of excluding net realized and unrealized securities (gains)/losses and the Coke stock dividend (0.11) (0.12) (0.11) (0.04) (0.13) (0.10) 0.01 (0.04)
Return on average total assets less net unrealized securities (gains)/losses 30.31 % 0.23 % (0.08)% (0.42)% (0.70)% (0.83)% (0.41)% (1.89)%
Return on average common shareholders’ equity 2.44 % 1.83 % (1.29)% (5.34)% (7.19)% (8.52)% (3.95)% (20.71)%
Impact of excluding net realized and unrealized securities (gains)/losses and the Coke stock dividend (0.91) (1.13) (1.24) (0.59) (1.62) (1.18) (0.07) (1.37)
Return on average realized common shareholders’ equity 41.53 % 0.70 % (2.53)% (5.93)% (8.81)% (9.70)% (4.02)% (22.08)%
Total shareholders’ equity $23,130 $23,438 $23,024 $22,620 $22,531 $22,908 $22,953 $21,646
Goodwill, net of deferred taxes (6,189) (6,192) (6,197) (6,202) (6,204) (6,205) (6,213) (6,225)
Other intangible assets including MSRs, net of deferred taxes (1,545) (1,174) (1,409) (1,761) (1,671) (1,560) (1,468) (1,049)
MSRs 1,439 1,072 1,298 1,641 1,540 1,423 1,322 895
Tangible equity 16,835 17,144 16,716 16,298 16,196 16,566 16,594 15,267
Preferred stock (4,942) (4,936) (4,929) (4,923) (4,917) (4,911) (4,919) (5,227)
Tangible common equity $11,893 $12,208 $11,787 $11,375 $11,279 $11,655 $11,675 $10,040
Total assets $172,874 $174,703 $170,668 $171,796 $174,165 $172,718 $176,735 $179,116
Goodwill (6,323) (6,323) (6,323) (6,323) (6,319) (6,314) (6,314) (6,309)
Other intangible assets including MSRs (1,571) (1,204) (1,443) (1,800) (1,711) (1,604) (1,517) (1,103)
MSRs 1,439 1,072 1,298 1,641 1,540 1,423 1,322 895
Tangible assets $166,419 $168,248 $164,200 $165,314 $167,675 $166,223 $170,226 $172,599
Tangible equity to tangible assets 510.12 % 10.19 % 10.18 % 9.86 % 9.66 % 9.96 % 9.75 % 8.85 %
Tangible book value per common share 6$23.76 $24.42 $23.58 $22.76 $22.59 $23.35 $23.41 $28.15
Net interest income $1,266 $1,238 $1,178 $1,172 $1,177 $1,138 $1,090 $1,062
Taxable-equivalent adjustment 28 28 30 30 30 30 31 31
Net interest income - FTE 1,294 1,266 1,208 1,202 1,207 $1,168 1,121 1,093
Noninterest income 1,032 1,047 952 698 742 775 1,072 1,121
Total revenue - FTE 2,326 2,313 2,160 1,900 1,949 1,943 2,193 2,214
securities (gains)/losses, net (64) (69) (57) (1) (73) (47) 25 (3)
Total revenue - FTE excluding net securities (gains)/losses 7$2,262 $2,244 $2,103 $1,899 $1,876 $1,896 $2,218 $2,211
1Computed by dividing noninterest expense by total revenue - FTE. 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 goodwill/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 shares of Coke. 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. The return on average assets less net unrealized gains on securities is computed by dividing annualized net
income/(loss), excluding securities (gains)/losses and the Coke stock dividend, net of tax, by average assets less net unrealized securities (gains)/losses.
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/(loss) available to common shareholders, excluding securities (gains)/losses and the Coke stock 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 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.
7We present total revenue- FTE excluding net securities (gains)/losses. 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 portion of the impairment charges on goodwill and intangible assets other than MSRs allocated to the common shareholders. 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, we use this measure internally to analyze performance.
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