Huntington National Bank 2014 Annual Report Download - page 98

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While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which
could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) worsening of
credit quality performance due to a number of factors such as the underlying value of collateral that could prove less valuable than
otherwise assumed and assumed cash flows may be worse than expected; (2) changes in general economic, political, or industry
conditions; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility
and disruptions in global capital and credit markets; (3) movements in interest rates; (4) competitive pressures on product pricing and
services; (5) success, impact, and timing of our business strategies, including market acceptance of any new products or services
implementing 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, timing, and results of governmental actions, examinations, reviews, reforms,
regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the
Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and CFPB; 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:
x Tangible common equity to tangible assets,
x Tier 1 common equity to risk-weighted assets using Basel I and Basel III definitions, and
x 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 are 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.
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.
Critical Accounting Policies and Use of Significant Estimates
Our Consolidated Financial Statements are prepared in accordance with GAAP. The preparation of financial statements in
conformity with GAAP requires us to establish accounting policies and make estimates that affect amounts reported in our
Consolidated Financial Statements. Note 1 of the Notes to Consolidated Financial Statements, which is incorporated by reference into
this MD&A, describes the significant accounting policies we use in our Consolidated Financial Statements.