Huntington National Bank 2010 Annual Report Download - page 48

Significant Items — Favorable (Unfavorable) Impact: Earnings(2) EPS(3) Earnings(2) EPS(3) Earnings(2) EPS(3)
2010 2009 2008
Franklin-related loans transferred to held
for sale ........................ $(75,500) $(0.07) $ — $— $ — $—
Net tax benefit recognized(4) .......... 38,222 0.05 —— ——
Franklin relationship restructuring(4) .... ——159,895 0.30 — —
Net gain on early extinguishment of
debt........................... ——141,024 0.18 23,542 0.04
Gain related to sale of Visa»stock ...... —— 31,362 0.04 25,087 0.04
Deferred tax valuation allowance
benefit(4) ...................... —— 12,847 0.02 20,357 0.06
Goodwill impairment ................ ——(2,606,944) (4.89) — —
FDIC special assessment ............. —— (23,555) (0.03) — —
Preferred stock conversion deemed
dividend ....................... — (0.08) — (0.11) — —
Visa»indemnification liability ......... —— — — 16,995 0.03
Merger/Restructuring costs ........... —— — — (21,830) (0.04)
(1) See Significant Factors Influencing Financial Performance discussion.
(2) Pretax unless otherwise noted.
(3) Based upon the annual average outstanding diluted common shares.
(4) After-tax.
Pretax, Pre-provision Income Trends
One non-GAAP performance measurement that we believe is useful in analyzing underlying performance
trends, particularly in times of economic stress, is pretax, pre-provision income. This is the level of earnings
adjusted to exclude the impact of: (1) provision expense, which is excluded because its absolute level is
elevated and volatile in times of economic stress, (2) investment securities gains/losses, which are excluded
because securities market valuations may also become particularly volatile in times of economic stress,
(3) amortization of intangibles expense, which is excluded because the return on tangible equity common
equity is a key measurement that we use to gauge performance trends, and (4) certain other items identified by
us (see Significant Items above) that we believe may distort our underlying performance trends.
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