Huntington National Bank 2011 Annual Report Download - page 112

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The decrease in net income reflected a combination of factors including:
• $89.9 million, or 27%, decrease in noninterest income.
Partially offset by:
• $43.6 million, or 46%, decrease in the provision for credit losses.
• $30.3 million, or 18%, increase in net interest income.
The increase in net interest income from the year-ago period reflected:
• $0.6 billion, or 13%, increase in average total loans and leases.
• $1.1 billion, or 16%, increase in average total deposits.
Partially offset by:
• 7 basis point decrease in the net interest margin.
The increase in total average loans and leases from the year-ago period reflected:
• $0.5 billion, or 16%, increase in the residential mortgage portfolio driven by historically low interest
rates.
The increase in average total deposits from the year-ago period reflected:
• $0.8 billion, or 27%, increase in money market deposits.
• $0.7 billion or 60% increase in non-interest bearing demand deposits driven by increases in commercial
deposits expected to be short term and checking deposits of governmental entities.
Partially offset by:
• $0.3 billion, or 25%, decrease in interest-bearing demand deposits.
The decrease in the provision for credit losses from the year-ago period reflected:
• $22.2 million, or 28%, decrease in NCOs. Expressed as a percentage of related average balance, NCOs
decreased to 1.06% in 2011 from 1.65% in 2010. The overall decline in NCOs was the result of improved
credit quality of the portfolio.
The decrease in noninterest income from the year-ago period reflected:
• $91.5 million, or 61%, decrease in mortgage banking income due to a $52.8 million decline from MSR
activity and hedging costs and a $39.6 million decline in other mortgage banking income due primarily to
lower origination volumes in 2011 compared to 2010.
• $3.1 million, or 24%, decrease in insurance-related income which reflected lower sales of wealth transfer
products in 2011.
Partially offset by:
• $6.8 million, or 6%, increase in trust service income reflecting a $1.3 billion increase in average assets
under management and a $3.2 billion increase in average custodial assets.
• $2.0 million, or 5%, increase in brokerage income. Brokerage commissions increased $9.3 million, or
15%. The increase in retail brokerage commissions reflected improved sales of structured investment
products. Institutional brokerage was transferred to the Regional and Commercial segment and the
amount reported in WGH declined by $6.7 million.
98