Non-GAAP Reconciliation ($ in thousands) 44 4Q13 3Q13 2Q13 1Q13 4Q12 2013 2012 Return on Average Tangible Equity Income statement data Net income 41,341 $ 44,291 $ 45,648 $ 42,399 $ 43,174 $ 173,679 $ 141,172 $ Amortization of intangibles, net of taxes at 35% 1,822 1,626 1,984 2,124 2,127 7,557 8,141 Net tangible income (numerator) 43,163 $ 45,917 $ 47,632 $ 44,523 $ 45,301 $ 181,236 $ 149,313 $ Average balance sheet data Shareholders' equity 2,679,242 $ 2,642,806 $ 2,648,314 $ 2,614,319 $ 2,597,254 $ 2,646,339 $ 2,511,604 $ Goodwill and other intangible assets (1,308,690) (1,310,155) (1,312,257) (1,312,662) (1,311,192) (1,310,928) (1,270,053) Tangible common equity (denominator) 1,370,552 $ 1,332,651 $ 1,336,057 $ 1,301,657 $ 1,286,062 $ 1,335,411 $ 1,241,551 $ Return on equity (GAAP basis) 6.12% 6.65% 6.91% 6.58% 6.61% 6.56% 5.62% Effect of goodwill and other intangibles 6.37% 7.02% 7.39% 7.29% 7.40% 7.01% 6.41% Return on average tangible equity 12.49% 13.67% 14.30% 13.87% 14.01% 13.57% 12.03% Tangible Book Value per Common Share End of period balance sheet data Shareholders' equity 2,717,587 $ 2,679,348 $ 2,644,940 $ 2,639,489 $ 2,595,909 $ 2,717,587 $ 2,595,909 $ Goodwill and other intangible assets (1,307,701) (1,309,105) (1,311,176) (1,313,648) (1,311,691) (1,307,701) (1,311,691) Tangible common equity (numerator) 1,409,886 $ 1,370,243 $ 1,333,764 $ 1,325,841 $ 1,284,218 $ 1,409,886 $ 1,284,218 $ Common shares outstanding (denominator) 187,363 187,225 187,023 186,800 186,554 187,363 186,554 Tangible book value per common share 7.52 $ 7.32 $ 7.13 $ 7.10 $ 6.88 $ 7.52 $ 6.88 $ Tangible book value per share is a non-GAAP based financial measure calculated using non-GAAP based amounts. The most directly comparable GAAP based measure is book value per share. In order to calculate tangible book value per share, we divide tangible common equity, which is a non-GAAP based measure calculated as common shareholders’ equity less intangible assets, by the number of shares of common stock outstanding. In contrast, book value per share is calculated by dividing total common shareholders’ equity by the number of shares of common stock outstanding. Management uses tangible book value per share to assess our capital position and ratios. 12 Months Ended December 31, Return on average tangible equity is a non-GAAP based financial measure calculated using non-GAAP based amounts. The most directly comparable GAAP-based measure is return on average equity. We calculate return on average tangible equity by excluding the balance of intangible assets and their related amortization expense from our calculation of return on average equity. Management uses the return on average tangible equity in order to review our core operating results. Management believes that this is a better measure of our performance. In addition, this is consistent with the treatment by bank regulatory agencies, which excludes goodwill and other intangible assets from the calculation of risk-based capital ratios. |
