SunTrust 2012 Annual Report Download - page 112

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Reconcilement of Non-U.S. GAAP Measures – Quarterly Table 40
Three Months Ended
(Dollars in millions, except per share
data)
2012 2011
December 31 September 30 June 30 March 31 December 31 September 30 June 30 March 31
Net income $356 $1,077 $275 $250 $74 $215 $178 $180
Preferred dividends (4) (2) (3) (3) (2) (2) (2) (2)
Dividends and accretion of
discount on preferred stock
issued to the U.S. Treasury — — — — — — — (66)
Accelerated accretion associated
with repurchase of preferred
stock issued to the U.S.
Treasury — — — — — — — (74)
Dividends and undistributed
earnings allocated to unvested
shares (2) (9) (2) (2) (1) (2) (2) —
Net income available to
common shareholders $350 $1,066 $270 $245 $71 $211 $174 $38
Net income available to
common shareholders excluding
accelerated accretion associated
with repurchase of preferred
stock issued to the U.S.
Treasury 1$350 $1,066 $270 $245 $71 $211 $174 $112
Efficiency ratio 265.93% 44.90% 68.83% 69.50% 81.45% 71.05% 70.17% 67.83%
Impact of excluding
amortization of intangible
assets/impairment of goodwill (0.30) (0.43) (0.50) (0.48) (0.46) (0.50) (0.53) (0.51)
Tangible efficiency ratio 365.63% 44.47% 68.33% 69.02% 80.99% 70.55% 69.64% 67.32%
Total shareholders’ equity $20,985 $20,399 $20,568 $20,241 $20,066 $20,200 $19,660 $19,223
Goodwill, net of deferred taxes 4(6,206) (6,210) (6,220) (6,180) (6,190) (6,195) (6,199) (6,185)
Other intangible assets, net of
deferred taxes, and MSRs 5(949) (888) (929) (1,142) (1,001) (1,120) (1,518) (1,635)
MSRs 899 831 865 1,070 921 1,033 1,423 1,538
Tangible equity 14,729 14,132 14,284 13,989 13,796 13,918 13,366 12,941
Preferred stock (725) (275) (275) (275) (275) (172) (172) (172)
Tangible common equity $14,004 $13,857 $14,009 $13,714 $13,521 $13,746 $13,194 $12,769
Total assets $173,442 $173,181 $178,257 $178,226 $176,859 $172,553 $172,173 $170,794
Goodwill (6,369) (6,369) (6,376) (6,344) (6,344) (6,344) (6,343) (6,324)
Other intangible assets
including MSRs (956) (896) (939) (1,155) (1,017) (1,138) (1,539) (1,659)
MSRs 899 831 865 1,070 921 1,033 1,423 1,538
Tangible assets $167,016 $166,747 $171,807 $171,797 $170,419 $166,104 $165,714 $164,349
Tangible equity to tangible
assets 68.82% 8.48% 8.31% 8.14% 8.10% 8.38% 8.07% 7.87%
Tangible book value per
common share 7$25.98 $25.72 $26.02 $25.49 $25.18 $25.60 $24.57 $23.79
Net interest income $1,246 $1,271 $1,274 $1,311 $1,294 $1,263 $1,259 $1,249
Taxable-equivalent adjustment 30 30 32 31 30 30 27 28
Net interest income - FTE 1,276 1,301 1,306 1,342 1,324 1,293 1,286 1,277
Noninterest income 1,015 2,542 940 876 723 903 912 883
Total revenue - FTE 2,291 3,843 2,246 2,218 2,047 2,196 2,198 2,160
Securities gains, net (1) (1,941) (14) (18) (19) (2) (32) (64)
Total revenue - FTE excluding
securities gains, net 8$2,290 $1,902 $2,232 $2,200 $2,028 $2,194 $2,166 $2,096
1We present net income available to common shareholders that excludes the accelerated accretion associated with the repurchase of preferred stock issued to the U.S. Treasury.
We believe this measure is useful to investors, because removing the non-cash accelerated accretion 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.
2Computed 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.
3We present a tangible efficiency ratio which excludes the impairment/amortization of goodwill/intangible assets. 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.
4Net of deferred taxes of $163 million, $159 million, $156 million, and $164 million, respectively, in 2012; and $154 million, $149 million, $144 million, and $139 million,
respectively, in 2011.
5Net of deferred taxes of $7 million, $8 million, $10 million, and $14 million in 2012; and $16 million, $18 million, $21 million, and $24 million, respectively, in 2011.
6We 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.