Huntington National Bank 2004 Annual Report Download - page 71

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Table 24 — Regional Banking(1)
Change From 2003 Change From 2002
2004 Amount % 2003 Amount % 2002
INCOME STATEMENT (in thousands)
Net interest income $642,140 $ 36,762 6.1% $605,378 $ 21,379 3.7% $583,999
Provision for credit losses 7,565 (86,439) (92.0) 94,004 (39,903) (29.8) 133,907
Net Interest Income After Provision for Credit Losses 634,575 123,201 24.1 511,374 61,282 13.6 450,092
Operating lease income 1,660 1,660 N.M. ——— —
Service charges on deposit accounts 166,526 3,458 2.1 163,068 18,459 12.8 144,609
Brokerage and insurance income 15,066 (1,110) (6.9) 16,176 5,514 51.7 10,662
Trust services 1,005 37 3.8 968 (62) (6.0) 1,030
Mortgage banking 36,312 (21,141) (36.8) 57,453 25,914 82.2 31,539
Other service charges and fees 41,121 76 0.2 41,045 61 0.1 40,984
Other 45,415 6,438 16.5 38,977 3,775 10.7 35,202
Total Non-Interest Income Before Securities Gains 307,105 (10,582) (3.3) 317,687 53,661 20.3 264,026
Securities gains 14 14 N.M. ——— —
Total Non-Interest Income 307,119 (10,568) (3.3) 317,687 53,661 20.3 264,026
Operating lease expense 1,397 1,397 N.M. ——— —
Personnel costs 254,746 24,065 10.4 230,681 17,356 8.1 213,325
Other 331,968 (450) (0.1) 332,418 5,751 1.8 326,667
Total Non-Interest Expense 588,111 25,012 4.4 563,099 23,107 4.3 539,992
Income Before Provision for Income Taxes 353,583 87,621 32.9 265,962 91,836 52.7 174,126
Provision for income taxes(2) 123,755 30,669 32.9 93,086 32,142 52.7 60,944
Net Income — Operating(1) $229,828 $ 56,952 32.9% $172,876 $ 59,694 52.7% $113,182
Revenue — Fully Taxable Equivalent (FTE)
Net interest income $642,140 $ 36,762 6.1% $605,378 $ 21,379 3.7% $583,999
Tax equivalent adjustment(2) 1,015 (168) (14.2) 1,183 (442) (27.2) 1,625
Net interest income (FTE) 643,155 36,594 6.0 606,561 20,937 3.6 585,624
Non-interest income 307,119 (10,568) (3.3) 317,687 53,661 20.3 264,026
Total Revenue (FTE) $950,274 $ 26,026 2.8% $924,248 $ 74,598 8.8% $849,650
Total Revenue Excluding Securities Gains (FTE) $950,260 $ 26,012 2.8% $924,248 $ 74,598 8.8% $849,650
SELECTED AVERAGE BALANCES (in millions)
Loans:
Middle market C&I $ 3,246 $ (382) (10.5)% $ 3,628 $ (327) (8.3)% $ 3,955
Middle market CRE
Construction 1,390 211 17.9 1,179 53 4.7 1,126
Commercial 1,611 107 7.1 1,504 62 4.3 1,442
Small business loans 2,003 216 12.1 1,787 293 19.6 1,494
Total Commercial 8,250 152 1.9 8,098 81 1.0 8,017
Consumer
Auto loans — indirect 4 (3) (42.9) 7 (3) (30.0) 10
Home equity loans & lines of credit 3,887 703 22.1 3,184 459 16.8 2,725
Residential mortgage 2,694 1,092 68.2 1,602 427 36.3 1,175
Other loans 364 (3) (0.8) 367 (38) (9.4) 405
Total Consumer 6,949 1,789 34.7 5,160 845 19.6 4,315
Total Loans & Leases $ 15,199 $ 1,941 14.6% $ 13,258 $ 926 7.5% $ 12,332
Operating lease assets $ 6 $ 6 N.M.% $—$— —% $—
Deposits:
Non-interest bearing deposits $ 2,990 $ 112 3.9% $ 2,878 $ 235 8.9% $ 2,643
Interest bearing demand deposits 6,477 994 18.1 5,483 1,046 23.6 4,437
Savings deposits 2,783 34 1.2 2,749 — — 2,749
Domestic time deposits 3,778 (290) (7.1) 4,068 (773) (16.0) 4,841
Foreign time deposits 417 59 16.5 358 113 46.1 245
Total Deposits $ 16,445 $ 909 5.9% $ 15,536 $ 621 4.2% $ 14,915
N.M., not a meaningful value.
(1) Operating basis, see Lines of Business section for definition.
(2) Calculated assuming a 35% tax rate.
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