Huntington National Bank 2010 Annual Report Download - page 104

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 44 — Capital Adequacy
2010 2009 2008 2007 2006
December 31,
(Dollar amounts in millions)
Consolidated capital calculations:
Common shareholders’ equity ................ $ 4,618 $ 3,648 $ 5,351 $ 5,951 $ 3,016
Preferred shareholders’ equity ................ 363 1,688 1,878 — —
Total shareholders’ equity ..................... 4,981 5,336 7,229 5,951 3,016
Goodwill ................................ (444) (444) (3,055) (3,059) (571)
Intangible assets........................... (229) (289) (357) (428) (59)
Intangible asset deferred tax liability(1) ......... 80 101 125 150 21
Total tangible equity(2) ....................... 4,388 4,704 3,942 2,614 2,407
Preferred shareholders’ equity ................ (363) (1,688) (1,878) — —
Total tangible common equity(2) ................ $ 4,025 $ 3,016 $ 2,064 $ 2,614 $ 2,407
Total assets .............................. $53,820 $51,555 $54,353 $54,697 $35,329
Goodwill ................................ (444) (444) (3,055) (3,059) (571)
Other intangible assets ...................... (229) (289) (357) (428) (59)
Intangible asset deferred tax liability(1) ......... 80 101 125 150 21
Total tangible assets(2) ....................... $53,227 $50,923 $51,066 $51,360 $34,720
Tier 1 equity ............................. $ 5,022 $ 5,201 $ 5,036 $ 3,460 $ 2,784
Preferred shareholders’ equity ................ (363) (1,688) (1,878) — —
Trust-preferred securities .................... (570) (570) (736) (785) (320)
REIT preferred stock ....................... (50) (50) (50) (50) (50)
Tier 1 common equity(2) ...................... $ 4,039 $ 2,893 $ 2,372 $ 2,625 $ 2,414
Risk-weighted assets (RWA) ................... $43,471 $43,248 $46,994 $46,044 $31,155
Tier 1 common equity / RWA ratio(2) ............ 9.29% 6.69% 5.05% 5.70% 7.75%
Tangible equity / tangible asset ratio(2) ........... 8.24 9.24 7.72 5.09 6.93
Tangible common equity / tangible asset ratio(2) .... 7.56 5.92 4.04 5.09 6.93
Tangible common equity / RWA ratio(2) .......... 9.26 6.97 4.39 5.68 7.73
(1) Intangible assets are net of deferred tax liability and calculated assuming a 35% tax rate.
(2) Tangible equity, Tier 1 common equity, tangible common equity, and tangible assets are non-GAAP finan-
cial measures. Additionally, any ratios utilizing these financial measures are also non-GAAP. These finan-
cial measures have been included as they are considered to be critical metrics with which to analyze and
evaluate financial condition and capital strength. Other companies may calculate these financial measures
differently.
Our consolidated TCE ratio was 7.56% at December 31, 2010, an increase from 5.92% at December 31,
2009. The significant increase from December 31, 2009, primarily reflected the increased capital resulting
from our $920.0 million common stock issuance during the 2010 fourth quarter, and to a lesser extent, 2010
earnings.
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