Huntington National Bank 2010 Annual Report Download - page 47

(1) Pretax. Recorded to noninterest income, and represented a gain on the sale of ownership interest in
Visa». As part of the sale of our Visa»stock in 2009, we released $8.2 million, as of June 30, 2009, of
the remaining indemnification liability. Concurrently, we established a swap liability associated with the
conversion protection provided to the purchasers of the Visa»shares.
(2) Pretax. Recorded to noninterest expense, and represented our pro-rata portion of an indemnification lia-
bility provided to Visa»by its member banks for various litigation filed against Visa». Subsequently, in
2008, an escrow account was established by Visa»using a portion of the proceeds received from the IPO.
This action resulted in a reversal of a portion of the liability as the escrow account reduced our potential
exposure related to the indemnification.
7. Other Significant Items Influencing Earnings Performance Comparisons. In addition to the items dis-
cussed separately in this section, a number of other items impacted financial results. These included:
2009
• $23.6 million ($0.03 per common share) negative impact due to a special FDIC insurance premium
assessment. This amount was recorded to noninterest expense.
• $12.8 million ($0.02 per common share) benefit to provision for income taxes, representing a reduction
to the previously established capital loss carry-forward valuation allowance.
2008
• $20.4 million ($0.06 per common share) benefit to provision for income taxes, representing a reduction
to the previously established capital loss carry-forward valuation allowance.
• $21.8 million ($.04 per common share) negative impact due to the merger with Sky Financial
completed on July 1, 2007.
The following table reflects the earnings impact of the above-mentioned significant items for periods
affected by this Results of Operations discussion:
Table 4 — Significant Items Influencing Earnings Performance Comparison (1)
After-tax EPS After-tax EPS After-tax EPS
2010 2009 2008
(Dollar amounts in thousands, except per share amounts)
Net income (loss) — GAAP ......... $312,347 $(3,094,179) $(113,806)
Earnings per share, after-tax ........ $ 0.19 $(6.14) $(0.44)
Change from prior year — $........ 6.33 (5.70) (0.69)
Change from prior year — % ....... N.R.% N.R% N.R.%
N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current
period.
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