Huntington National Bank 2012 Annual Report Download - page 33

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(1) Comparisons for presented periods are impacted by a number of factors. Refer to the Significant Items for additional discussion
regarding these key factors.
(2) Includes FHLB advances, subordinated notes, and other long-term debt. At December 31, 2012, FHLB advances excludes $1.0
billion of advances that are short-term in nature.
(3) On an FTE basis assuming a 35% tax rate.
(4) Net income (loss) less expense excluding amortization of intangibles for the period divided by average tangible shareholders'
equity. Average tangible shareholders' equity equals average total shareholders' equity less average intangible assets and goodwill.
Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a
35% tax rate.
(5) Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income
excluding securities gains.
(6) Tangible common equity (total common 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 calculated assuming a 35% tax rate.
(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 calculated assuming a 35% tax rate.
(8) Tier 1 common equity, tangible equity, tangible common equity, and tangible assets are non-GAAP financial measures.
Additionally, 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 condition and capital strength. Other
companies may calculate these financial measures differently.
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 147 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, insurance service programs, and other financial products and
services. Our over 690 branches are located in Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. Selected
financial services and other activities are also conducted in various other 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. Our foreign banking activities, in total or with any individual country, are not significant.
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:
xExecutive 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 2013 expectations.
xDiscussion of Results of Operations - Reviews financial performance from a consolidated 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.
xRisk Management and Capital - Discusses credit, market, liquidity, operational risks, and compliance 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.
xBusiness 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.
xResults for the Fourth Quarter - Provides a discussion of results for the 2012 fourth quarter compared with the 2011 fourth
quarter.
xAdditional Disclosures - Provides comments on important matters including forward-looking statements, critical accounting
policies and use of significant estimates, recent accounting pronouncements and developments, and acquisitions.