Regions Bank 2010 Annual Report Download - page 66

For Years Ended December 31
2010 2009 2008 2007 2006
(In millions, except per share data)
TANGIBLE COMMON RATIOS(1)
Ending stockholders’ equity (GAAP) .............. $ 16,734 $ 17,881 $ 16,813 $ 19,823 $ 20,701
Less: Ending intangible assets (GAAP) ............ 5,946 6,060 6,186 12,252 12,133
Ending deferred tax liability related to intangibles
(GAAP) ............................... (240) (269) (303) (339) (401)
Ending preferred equity (GAAP) ............. 3,380 3,602 3,307 — —
Ending tangible common stockholders’ equity (non-
GAAP) ................................... I $ 7,648 $ 8,488 $ 7,623 $ 7,910 $ 8,969
Ending total assets (GAAP) ..................... 132,351 142,318 146,248 141,042 143,369
Less: Ending intangible assets (GAAP) ............ 5,946 6,060 6,186 12,252 12,133
Ending deferred tax liability related to intangibles
(GAAP) ............................... (240) (269) (303) (339) (401)
Ending tangible assets (non-GAAP) ............... J $126,645 $136,527 $140,365 $129,129 $131,637
End of period shares outstanding ................. K 1,256 1,193 691 694 730
Tangible common stockholders’ equity to tangible
assets (non-GAAP) .......................... I/J 6.04% 6.22% 5.43% 6.13% 6.81%
Tangible common book value per share
(non-GAAP) ............................... I/K $ 6.09 $ 7.11 $ 11.03 $ 11.40 $ 12.29
TIER 1 COMMON RISK-BASED RATIO
Stockholders’ equity (GAAP) .................... $ 16,734 $ 17,881 $ 16,813
Accumulated other comprehensive (income) loss .... 260 (130) 8
Non-qualifying goodwill and intangibles ........... (5,706) (5,792) (5,864)
Disallowed deferred tax assets(2) ................. (424) (947) —
Disallowed servicing assets ..................... (27) (25) (16)
Qualifying non-controlling interests ............... 92 91 91
Qualifying trust preferred securities ............... 846 846 1,036
Tier 1 capital (regulatory) ....................... 11,775 11,924 12,068
Qualifying non-controlling interests ............... (92) (91) (91)
Qualifying trust preferred securities ............... (846) (846) (1,036)
Preferred stock ............................... (3,380) (3,602) (3,307)
Tier 1 common equity (non-GAAP) ............... L $ 7,457 $ 7,385 $ 7,634
Risk-weighted assets (regulatory) ................. M 94,966 103,330 116,251
Tier 1 common risk-based ratio (non-GAAP) ....... L/M 7.85% 7.15% 6.57%
(1) Beginning in 2010, tangible ratios are computed net of deferred taxes associated with intangible assets. Prior periods
have been revised to conform with current presentation.
(2) Only one year of projected future taxable income may be applied in calculating deferred tax assets for regulatory
capital purposes.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
In preparing financial information, management is required to make significant estimates and assumptions
that affect the reported amounts of assets, liabilities, income and expenses for the periods shown. The accounting
principles followed by Regions and the methods of applying these principles conform with accounting principles
generally accepted in the U.S. and general banking practices. Estimates and assumptions most significant to
Regions are related primarily to the allowance for credit losses, fair value measurements, intangible assets
(goodwill and other identifiable intangible assets), mortgage servicing rights and income taxes, and are
summarized in the following discussion and in the notes to the consolidated financial statements.
Allowance for Credit Losses
The allowance for credit losses (“allowance”) consists of the allowance for loan losses and the reserve for
unfunded credit commitments. These two components reflect management’s judgment of probable credit losses
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