Huntington National Bank 2011 Annual Report Download - page 123

market acceptance of any new products or services introduced to implement our “Fair Play” banking philosophy;
(6) changes in accounting policies and principles and the accuracy of our assumptions and estimates used to
prepare our financial statements; (7) extended disruption of vital infrastructure; (8) the final outcome of
significant litigation; (9) the nature, extent, and timing of governmental actions and reforms, including the Dodd-
Frank Act, as well as future regulations which will be adopted by the relevant regulatory agencies, including the
CFPB, to implement the Dodd-Frank Act’s provisions; and (10) the outcome of judicial and regulatory decisions
regarding practices in the residential mortgage industry, including among other things the processes followed for
foreclosing residential mortgages.
All forward-looking statements speak only as of the date they are made and are based on information
available at that time. We assume no obligation to update forward-looking statements to reflect circumstances or
events that occur after the date the forward-looking statements were made or to reflect the occurrence of
unanticipated events except as required by federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
Non-Regulatory Capital Ratios
In addition to capital ratios defined by banking regulators, the Company considers various other measures
when evaluating capital utilization and adequacy, including:
• Tangible common equity to tangible assets,
• Tier 1 common equity to risk-weighted assets using Basel I definition, and
• Tangible common equity to risk-weighted assets using Basel I definition.
These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the
level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios
allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ
from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities,
the nature and extent of which varies among different financial services companies. These ratios are not defined
in Generally Accepted Accounting Principles (“GAAP”) or federal banking regulations. As a result, these
non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.
Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s
calculation methods may differ from those used by other financial services companies. Also, there may be limits
in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the
consolidated financial statements and other financial information contained in this Form 10-K in their entirety,
and not to rely on any single financial measure.
Pretax, Pre-provision Income
Pretax, pre-provision income is a non-GAAP financial measure. Any ratio utilizing this financial measure is
also non-GAAP. This financial measure has been included as it is considered to be an important metric with
which to analyze and evaluate our results of operations and financial strength. Other companies may calculate
this financial measure differently. Going forward we do not intend to report a PTPP metric with our credit costs
now returning to more normal levels.
Risk Factors
More information on risk is set forth under the heading Risk Factors included in Item 1A and incorporated
by reference into this MD&A. Additional information regarding risk factors can also be found in the Risk
Management and Capital discussion, as well as the Regulatory Matters section included in Item 1 and
incorporated by reference into the MD&A.
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