Huntington National Bank 2012 Annual Report Download - page 200

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25. SEGMENT REPORTING
We have four major business segments: Retail and Business Banking, Regional and Commercial Banking, Automobile Finance
and Commercial Real Estate, and Wealth Advisors, Government Finance, and Home Lending. A Treasury / Other function includes
our insurance business and other unallocated assets, liabilities, revenue, and expense.
Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and
income statement items to each of the business segments. The process is designed around the Company’s organizational and
management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other
financial institutions. A description of each segment and table of financial results is presented below.
Retail and Business Banking: The Retail and Business Banking segment provides a wide array of financial products and services to
consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts,
certificates of deposit, consumer loans, and small business loans and leases. Other financial services available to consumer and small
business customers include investments, insurance services, interest rate risk protection products, foreign exchange hedging, and
treasury management services. Huntington serves customers primarily through our network of traditional branches in Ohio, Michigan,
Pennsylvania, Indiana, West Virginia, and Kentucky. Huntington also has branches located in grocery stores in Ohio and Michigan.
In addition to our extensive branch network, customers can access Huntington through online banking, mobile banking, telephone
banking, and over 1,350 ATMs.
Huntington established a “Fair Play” banking philosophy and built a reputation for meeting the banking needs of consumers in a
manner which makes them feel supported and appreciated. Huntington believes customers are recognizing this and other efforts as key
differentiators and it is earning us more customers and deeper relationships.
Business Banking is a dynamic and growing part of our business and we are committed to being the bank of choice for small
businesses in our markets. Business Banking is defined as companies with revenues up to $25 million and consists of approximately
163,000 businesses. Huntington continues to develop products and services that are designed specifically to meet the needs of small
business. Huntington continues to look for ways to help companies find solutions to their capital needs.
Regional and Commercial Banking: This segment provides a wide array of products and services to the middle market and large
corporate customers base located primarily within our eleven regional commercial banking markets. Products and services are
delivered through a relationship banking model and include commercial lending, as well as depository and liquidity management
products. Dedicated teams collaborate with our relationship bankers to deliver complex and customized treasury management
solutions, equipment and technology leasing, international services, capital markets services such as interest rate risk protection
products, foreign exchange hedging and sales, trading of securities, mezzanine investment capabilities, and employee benefit
programs (insurance, 401(k)). The Commercial Banking team specializes in serving a number of industry segments such as not-for-
profit organizations, health-care entities, and large publicly traded companies.
Automobile Finance and Commercial Real Estate: This segment provides lending and other banking products and services to
customers outside of our normal retail and commercial banking segments. Our products and services include financing for the
purchase of automobiles by customers at automotive dealerships, financing the acquisition of new and used vehicle inventory of
automotive dealerships, and financing for land, buildings, and other commercial real estate owned or constructed by real estate
developers, automobile dealerships, or other customers with real estate project financing needs. Products and services are delivered
through highly specialized relationship-focused bankers and product partners. Huntington creates well-defined relationship plans
which identify needs where solutions are developed and customer commitments are obtained.
The Automotive Finance team services automobile dealerships, its owners, and consumers buying automobiles through these
dealerships. Huntington has provided new and used automobile financing and dealer services throughout the Midwest since the early
1950s. This consistency in the market and our focus on working with strong dealerships, has allowed us to expand into selected
markets outside of the Midwest and to actively deepen relationships while building a strong reputation.
The Commercial Real Estate team serves real estate developers, REITs, and other customers with lending needs that are secured
by commercial properties. Most of our customers are located within our footprint.
Wealth Advisors, Government Finance, and Home Lending: This segment consists of our wealth management, government
banking, and home lending businesses. In wealth management, Huntington provides financial services to high net worth clients in our
primary banking markets and Florida. Huntington provides these services through a unified sales team, which consists of private
bankers, trust officers, and investment advisors. Aligned with the eleven regional commercial banking markets, this coordinated
service model delivers products and services directly and through the other segment product partners. A fundamental point of
differentiation is our commitment to be in the market, working closely with clients and their other advisors to identify needs, offer
solutions and provide ongoing advice in an optimal client experience.