Huntington National Bank 2007 Annual Report Download - page 115

(in thousands) 2007 2006 2005
Statements of Cash Flows Year Ended December 31,
Operating activities
Net income $ 75,169 $ 461,221 $ 412,091
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in equity in undistributed net income of subsidiaries 200,315 146,463 (223,397)
Depreciation and amortization 4,367 2,150 2,674
Other, net (51,283) 170,367 (49,557)
Net cash provided by operating activities 228,568 780,201 141,811
Investing activities
Net cash paid for acquisition (313,311) ——
Repayments from subsidiaries 333,469 370,049 154,152
Advances to subsidiaries (442,418) (397,216) (206,765)
Proceeds from sale of securities available for sale ———
Net cash provided by (used in) investing activities (422,260) (27,167) (52,613)
Financing activities
Proceeds from issuance of long-term borrowings 250,010 250,200 —
Payment of borrowings (42,577) (249,515) (99,437)
Dividends paid on common stock (289,758) (231,117) (200,628)
Acquisition of treasury stock —(378,835) (231,656)
Proceeds from issuance of common stock 16,782 41,842 39,194
Net cash used for financing activities (65,543) (567,425) (492,527)
Change in cash and cash equivalents (259,235) 185,609 (403,329)
Cash and cash equivalents at beginning of year 412,724 227,115 630,444
Cash and cash equivalents at end of year $ 153,489 $ 412,724 $ 227,115
Supplemental disclosure:
Interest paid $ 41,189 $ 17,856 $ 22,754
24. 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 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 the Company’s organizational and
management structure and, accordingly, the results derived are not necessarily comparable with similar information published by
other financial institutions. An overview of this system is provided below, along with a description of each segment and discussion
of financial results.
The following provides a brief description of the four operating segments of Huntington:
Regional Banking: This segment provides traditional banking products and services to consumer, small business and commercial
customers located in its 13 operating regions within the six states of Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and
Kentucky. It provides these services through a banking network of over 600 branches, and over 1,400 ATMs, along with Internet
and telephone banking channels. It also provides certain services outside of these six states, including mortgage banking and
equipment leasing. Each region is further divided into retail and commercial banking units. Retail products and services include
home equity loans and lines of credit, first mortgage loans, direct installment loans, small business loans, personal and business
deposit products, as well as sales of investment and insurance services. At December 31, 2007, Retail Banking accounted for 51%
and 80% of total Regional Banking loans and deposits, respectively. Commercial Banking serves middle market and large
commercial banking relationships, which use a variety of banking products and services including, but not limited to, commercial
loans, international trade, cash management, leasing, interest rate protection products, capital market alternatives, 401(k) plans,
and mezzanine investment capabilities.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED