Huntington National Bank 2007 Annual Report Download - page 33

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2007 VERSUS 2006
Non-interest income increased $115.5 million, or 21%, from a year ago. The $137.4 million of merger-related non-interest income
drove the increase, as non-merger-related non-interest income declined. The following table details the estimated merger-related
impact on our reported non-interest income:
Table 9 — Non-Interest Income — Estimated Merger-Related Impact
(in thousands) 2007 2006 Amount %
Merger
Related Amount %
(1)
Twelve Months Ended
December 31, Change
Non-merger
Related
Service charges on deposit accounts $254,193 $185,713 $ 68,480 36.9% $ 48,220 $ 20,260 8.7%
Trust services 121,418 89,955 31,463 35.0 14,018 17,445 16.8
Brokerage and insurance income 92,375 58,835 33,540 57.0 34,122 (582) (0.6)
Other service charges and fees 71,067 51,354 19,713 38.4 11,600 8,113 12.9
Bank owned life insurance income 49,855 43,775 6,080 13.9 3,614 2,466 5.2
Mortgage banking income 29,804 41,491 (11,687) (28.2) 12,512 (24,199) (44.8)
Securities losses (29,738) (73,191) 43,453 (59.4) 566 42,887 (59.1)
Other income 79,819 120,022 (40,203) (33.5) 12,780 (52,983) (39.9)
Sub-total before automobile operating lease income 668,793 517,954 150,839 29.1 137,432 13,407 2.0
Automobile operating lease income 7,810 43,115 (35,305) (81.9) — (35,305) (81.9)
Total non-interest income $676,603 $561,069 $115,534 20.6% $137,432 $(21,898) (3.1)%
(1) Calculated as non-merger related/(prior period + merger-related)
The $21.9 million, or 3%, decrease non-merger-related decline primarily reflected:
– $53.0 million, or 40%, decline in other income. This decline primarily reflected: (a) $34.0 million loss in 2007 on loans
held-for-sale, and (b) $20.0 million of public equity investment losses in 2007 compared with $7.4 million of such gains in
2006.
– $35.3 million, or 82%, decline in automobile operating lease income.
– $24.2 million, or 45%, decrease in mortgage banking income primarily reflecting a $28.4 million net negative impact
between periods related to MSR valuation, net of hedge-related trading activity (see Table 10).
Partially offset by:
– $42.9 million less in investment securities losses. Virtually all of the losses in 2006 related to the balance sheet restructuring
(see “Significant Items”) and 2007 losses primarily related to the securities impairment losses recognized on certain
investment securities.
– $20.3 million, or 9%, increase in service charges on deposit accounts, primarily reflecting higher personal and commercial
service charge income.
– $17.4 million, or 17%, increase in trust services income. This increase reflected: (a) $9.7 million of revenues associated with
the acquisition of Unified Fund Services, and (b) $4.8 million increase in Huntington Fund fees due to growth in
Huntington Funds’ managed assets.
– $8.1 million, or 13%, increase in other service charges and fees primarily reflecting increased debit card fees due to higher
volume.
2006 VERSUS 2005
Non-interest income in 2006 decreased $71.2 million, or 11%, from 2005, including an $89.9 million decline in automobile
operating lease income. Non-interest income before automobile operating lease income increased $18.7 million, or 4%
($23.9 million Unizan merger-related), reflecting:
– $23.1 million increase in other income ($7.1 million Unizan merger-related), primarily reflecting $7.0 million in higher
equity investment gains, a $5.7 million increase in equipment operating lease income, a $3.3 million gain on sale of
MasterCard»stock, and a $2.6 million increase in corporate derivative sales.
– $17.9 million, or 11% ($5.3 million Unizan merger-related), increase in service charges on deposit accounts, reflecting a
$14.3 million, or 13%, increase in personal service charges, primarily non-sufficient fund/overdraft fees, and a $3.6 million,
or 6%, increase in commercial service charge income.
31
MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED