Huntington National Bank 2010 Annual Report Download - page 38

(7) Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total
assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax, and calcu-
lated assuming a 35% tax rate.
(8) Tangible equity, tangible common equity, and tangible assets are non-GAAP financial measures. Addition-
ally, any ratios utilizing these financial measures are also non-GAAP. These financial measures have been
included as they are considered to be critical metrics with which to analyze and evaluate financial condi-
tion and capital strength. Other companies may calculate these financial measures differently.
(9) Comparisons are affected by the Sky Financial acquisition in 2007, and the Unizan acquisition in 2006.
Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations
INTRODUCTION
We are a multi-state diversified regional bank holding company organized under Maryland law in 1966
and headquartered in Columbus, Ohio. Through the Bank, we have 145 years of servicing the financial needs
of our customers. Through our subsidiaries, we provide full-service commercial and consumer banking
services, mortgage banking services, automobile financing, equipment leasing, investment management, trust
services, brokerage services, customized insurance service programs, and other financial products and services.
Our over 600 banking offices are located in Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and West
Virginia. Selected financial service and other activities are also conducted in various states throughout the
United States. International banking services are available through the headquarters office in Columbus, Ohio
and a limited purpose office located in the Cayman Islands and another limited purpose office located in Hong
Kong.
The following MD&A provides information we believe necessary for understanding our financial
condition, changes in financial condition, results of operations, and cash flows. The MD&A should be read in
conjunction with the Consolidated Financial Statements, Notes to Consolidated Financial Statements, and other
information contained in this report.
Our discussion is divided into key segments:
•Executive Overview — Provides a summary of our current financial performance, and business
overview, including our thoughts on the impact of the economy, legislative and regulatory initiatives,
and recent industry developments. This section also provides our outlook regarding our 2011
expectations.
•Discussion of Results of Operations — Reviews financial performance from a consolidated Company
perspective. It also includes a Significant Items section that summarizes key issues helpful for
understanding performance trends. Key consolidated average balance sheet and income statement trends
are also discussed in this section.
•Risk Management and Capital — Discusses credit, market, liquidity, and operational risks, including
how these are managed, as well as performance trends. It also includes a discussion of liquidity
policies, how we obtain funding, and related performance. In addition, there is a discussion of
guarantees and / or commitments made for items such as standby letters of credit and commitments to
sell loans, and a discussion that reviews the adequacy of capital, including regulatory capital
requirements.
•Business Segment Discussion — Provides an overview of financial performance for each of our major
business segments and provides additional discussion of trends underlying consolidated financial
performance.
•Results for the Fourth Quarter — Provides a discussion of results for the 2010 fourth quarter compared
with the 2009 fourth quarter.
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