Huntington National Bank 2005 Annual Report Download - page 137

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NOTES TOCONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
Statements of Cash Flows Year Ended December 31,
(in thousands of dollars) 2005 2004 2003
Operating activities
Net income $ 412,091 $ 398,925 $ 372,363
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of change in accounting principle —— 2,442
Equity in undistributed net income of subsidiaries (223,397) (4,934) (210,275)
Depreciation and amortization 2,674 2,690 2,211
Gain on sales of securities available for sale —— (5)
Change in other, net (49,557) (13,609) (67,852)
Net cash provided by operating activities 141,811 383,072 98,884
Investing activities
Repayments from subsidiaries 154,152 117,314 27,001
Advances to subsidiaries (206,765) (80,197) (74,650)
Proceeds from sale of securities available for sale ——46
Net cash provided by (used in) investing activities (52,613) 37,117 (47,603)
Financing activities
Proceeds from issuance of long-term borrowings —— 100,000
Payment of borrowings (99,437) (101,541) (41,544)
Dividends paid on common stock (200,628) (168,075) (151,023)
Acquisition of treasury stock (231,656) — (81,061)
Proceeds from issuance of common stock 39,194 47,239 8,082
Net cash used for financing activities (492,527) (222,377) (165,546)
Change in cash and cash equivalents (403,329) 197,812 (114,265)
Cash and cash equivalents at beginning of year 630,444 432,632 546,897
Cash and cash equivalents at end of year $ 227,115 $ 630,444 $ 432,632
Supplemental disclosure:
Interest paid $ 22,754 $ 18,495 $ 13,157
25. ACQUISITIONS AND DIVESTITURES
A
CQUISITIONS
On January 27, 2004, Huntington announced the signing of a definitive agreement to acquire Unizan Financial Corp. (Unizan), a
financial holding company based in Canton, Ohio. On November 12, 2004, Huntington and Unizan jointly announced entering
into an amendment to their January 26, 2004 merger agreement extending the term of the agreement for one year from
January 27, 2005 to January 27, 2006. On the same date, Huntington also announced that it withdrew its application with the
FRBC to acquire Unizan. On October 24, 2005, Huntington announced that after consultation with the FRBC, it had re-filed its
application to acquire Unizan. On January 26, 2006, Huntington announced that the Federal Reserve Board had approved its
merger application. The merger is scheduled to close March 1, 2006.
D
IVESTITURES
During 2003, Huntington sold four banking offices located in eastern West Virginia. This sale included approximately $50 million
of loans and $130 million of deposits. Huntington’s pre-tax gain from this sale was $13.1 million in 2003 and is reflected as a
separate component of non-interest income.
26. SEGMENT REPORTING
Huntington has three distinct lines of business: Regional Banking, Dealer Sales, and the Private Financial and Capital Markets
Group (PFCMG). A fourth segment includes the Company’s Treasury function and other unallocated assets, liabilities, revenue,
and expense. Lines of business results are determined based upon the Company’s management reporting system, which assigns
balance sheet and income statement items to each of the business segments. The process is designed around Huntington’s
organizational and management structure and, accordingly, the results below are not necessarily comparable with similar
135