Huntington National Bank 2011 Annual Report Download - page 115

The increase in average total deposits from the year-ago quarter reflected:
• $2.4 billion, or 6%, growth in average total core deposits which included a $3.8 billion, or 30%, growth in
average total demand deposits, partially offset by $1.9 billion, or 22%, decline in average core certificates
of deposit.
Partially offset by:
• $0.3 billion, or 45%, decline in average other domestic deposits of $250,000 or more, reflecting a strategy
to reduce such noncore funding.
Provision for Credit Losses
The provision for credit losses in the 2011 fourth quarter was $45.3 million, down $41.7 million, or 48%,
from the year-ago quarter, reflecting a reduction of the ACL as a result of the improvement in the underlying
credit quality of the loan portfolio. The 2011 fourth quarter provision for credit losses was $38.6 million less than
total NCOs, reflecting the resolution of problem loans for which reserves had been previously established.
Noninterest Income
(This section should be read in conjunction with Significant Item 2.)
Noninterest income decreased $34.9 million, or 13%, from the year-ago quarter.
Table 49 — Noninterest Income — 2011 Fourth Quarter vs. 2010 Fourth Quarter
Fourth Quarter Change
2011 2010 Amount Percent
(dollar amounts in thousands)
Service charges on deposit accounts ............ $ 63,324 $ 55,810 $ 7,514 13%
Trust services .............................. 28,775 29,394 (619) (2)
Electronic banking .......................... 18,282 28,900 (10,618) (37)
Mortgage banking income .................... 24,098 53,170 (29,072) (55)
Brokerage income ........................... 18,688 16,953 1,735 10
Insurance income ........................... 17,906 19,678 (1,772) (9)
Bank owned life insurance income ............. 14,271 16,113 (1,842) (11)
Capital markets fees ......................... 9,811 8,779 1,032 12
Gain on sale of loans ........................ 2,884 3,423 (539) (16)
Automobile operating lease income ............. 4,727 10,463 (5,736) (55)
Securities gains (losses) ...................... (3,878) (103) (3,775) 3665
Other income .............................. 30,464 21,640 8,824 41
Total noninterest income ...................... $229,352 $264,220 $(34,868) (13)%
The $34.9 million decrease reflected:
• $29.1 million, or 55%, decrease in mortgage banking income. This primarily reflected a $27.0 million
decrease in origination and secondary marketing income, as originations decreased 39% from the
year-ago quarter. Also impacting the year-over-year comparison was a $4.0 million net MSR hedging loss
in the current quarter compared to a net MSR hedging gain of $3.3 million in the year-ago quarter.
• $10.6 million, or 37%, decrease in electronic banking income, primarily due to the $10.4 million negative
impact related to implementing the mandated lower debit card interchange fee structure.
• $5.7 million, or 55%, decline in automobile operating lease income reflecting the impact of a declining
portfolio as a result of having exited that business in 2008.
101