Huntington National Bank 2005 Annual Report Download - page 41

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
7. O
THER SIGNIFICANT ITEMS INFLUENCING EARNINGS PERFORMANCE COMPARISONS
.— From the first quarter of 2003 through
the fourth quarter of 2005, and in addition to other items discussed separately in this section, a number of significant
items impacted financial results. These included:
2005
– $8.1 million pre-tax of investment securities losses related to a decision made during the 2005 fourth quarter to
restructure a portion of the investment portfolio to replace lower rate securities with higher rate securities. This
item lowered non-interest income.
– $5.1 million pre-tax of severance and consolidation expenses associated with the consolidation of certain operations
functions, including the closing of an item-processing center in Michigan. This item increased non-interest expense.
– $2.1 million pre-tax write-off of an equity investment in the 2005 second quarter. This item lowered non-interest
income.
2004
– $7.8 million pre-tax of property lease impairments. This item increased non-interest expense.
– $3.6 million pre-tax of Unizan system conversion expense. This item increased non-interest expense.
– $3.7 million pre-tax one-time funding cost adjustment for a securitization structure consolidated in a prior period,
which lowered interest expense and increased net interest income, as well as the net interest margin.
– $1.2 million pre-tax restructuring reserve release related to reserves established in conjunction with the 2002 sale of
the Florida banking and insurance operations that were no longer needed. This item lowered non-interest expense.
2003
– $15.3 million pre-tax non-interest expense due to the early termination of long-term debt. This item increased non-
interest expense.
– $13.1 million pre-tax gain from the sale of our Martinsburg, West Virginia area branches. This item increased non-
interest income.
– $13.3 million after-tax cumulative effect of adopting FASB Interpretation No. 46, Consolidation of Variable Interest
Entities. This item lowered net income.
– $6.7 million pre-tax restructuring reserve release related to reserves that were no longer needed, which were
established in conjunction with the sale of the Florida banking and insurance operations. This item lowered non-
interest expense.
39