Huntington National Bank 2011 Annual Report Download - page 100

The growth in consumer checking account number of households is a result of both new sales of checking
accounts and improved retention of existing checking account households. The overall objective is to grow the
number of households, along with an increase in product penetration.
We use the checking account since it typically represents the primary banking relationship product. Further,
in our definition of a checking account household, we only count a product or service once. We believe this is a
better metric in that consumer behavior and loyalty are driven more by the variety of products used rather than
just the number of products. For example, a household that has one checking account and one mortgage, we
count as having two services. A household with four checking accounts, we count as having one service. The
household relationship utilizing two services is viewed to be more profitable and loyal, even though it has a
smaller number of accounts. The overall objective, therefore, is to decrease the percentage of 1-3 services per
consumer checking account household, while increasing the percentage of those with 4 or more services.
The following table presents consumer checking account household OCR metrics:
Table 38 — Consumer Checking Household OCR Cross-sell Report
2011 2010
Fourth Third Second First Fourth
Number of households ................... 1,095,638 1,073,708 1,042,424 1,015,951 993,272
Product Penetration by Number of Services
1 Service .............................. 4.1% 4.4% 4.5% 4.9% 5.3%
2-3 Services ........................... 22.4 22.8 24.2 24.6 25.3
4+ Services ............................ 73.5 72.8 71.3 70.5 69.4
Total revenue (in millions) ................ $ 230.6 $ 251.9 $ 260.0 $ 248.6 $ 240.3
Our emphasis on cross-sell, coupled with customers increasingly being attracted by benefits such as
24-Hour Grace®on overdrafts and more recently the launch of Asterisk-Free Checking™, are having a positive
effect. The percent of consumer households utilizing over four products at the end of the 2011 fourth quarter was
73.5%, up from 69.4% at the end of last year. In 2011, consumer checking account households grew at 10%.
Total consumer checking account household revenue in the 2011 fourth quarter was $230.6 million, down $21.3
million, or 8%, from the 2011 third quarter, and down $9.7 million, or 4%, from the year-ago quarter. These
declines were primarily driven by a decline in interchange revenue related to the implementation of the Durbin
amendment for the 2011 fourth quarter and the decline in the FTP-related net interest income on core certificates
of deposit.
COMMERCIAL OCR PERFORMANCE
For commercial OCR performance there are three key performance metrics: (1) the number of commercial
relationships, (2) the number of product penetration per commercial relationship, and (3) the revenue generated.
The growth in the number of commercial relationships is a result of both new sales of checking accounts
and improved retention of existing commercial accounts. The overall objective is to grow the number of
relationships, along with an increase in product service distribution.
The commercial relationship is defined as a business banking or commercial banking customer with a
checking account relationship. We use this metric because we believe that the checking account anchors a
business relationship and creates the opportunity to increase our cross-sell.
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