Huntington National Bank 2011 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 of the 2011 Huntington National Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 236

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236

Partially offset by:
• $13.9 million of lower equity funding related to lower rate environment.
The increase in total average loans and leases from the year-ago period reflected:
• $365 million, or 5%, increase in the home equity portfolio.
• $68 million, or 2%, increase in our Business Banking portfolio even though there was a $164 million
increase in sales of SBA loans, which generated $14.1 million in additional gains.
Partially offset by:
• $123 million, or 11%, decrease in the residential mortgage portfolio reflecting the continued strategy of
originating residential real estate for sale and not to hold in the portfolio.
• $90 million, or 17%, decrease in the CRE portfolio reflecting our commitment to reduce exposure to CRE
loans.
The decrease in total average deposits from the year-ago period reflected:
• $1.5 billion, or 16%, decrease in core certificates of deposit.
Partially offset by:
• $0.6 billion, or 18%, increase in noninterest-bearing demand deposits.
• $0.3 billion, or 6%, increase in interest-bearing demand deposits.
• $0.3 billion, or 4%, increase in money market deposits.
The decrease in the provision for credit losses from the year-ago period reflected:
• $97.2 million, or 43%, decrease in consumer NCOs and a $19.9 million, or 32%, decrease in commercial
NCOs. Expressed as an annualized percentage of related average balance, total NCOs decreased to 1.41%
in 2011 from 2.46% in 2010. The overall decline in NCOs was the result of improved credit quality of the
portfolio.
The increase in noninterest income from the year-ago period reflected:
• $29.2 million, or 99%, increase in other income, which is primarily related to a $20.2 million increase in
gains on sale of SBA loans and loan fees. The remainder reflects increases in both consumer and
commercial fee based income as well as other income associated with debit card processor conversion
based activities.
• $2.7 million, or 11%, increase in brokerage income, which reflected higher fee sharing from Huntington
Insurance due to increased sales of investment products.
Partially offset by:
• $21.1 million, or 10%, decrease in deposit service charge income due to the full year impact of Reg E
changes relating to certain overdraft fees and Huntington’s 24-Hour Grace®feature on all consumer
checking accounts.
• $2.4 million, or 8%, decrease in non-brokerage fee sharing, primarily due to lower mortgage fee share
revenue.
91