Huntington National Bank 2012 Annual Report Download - page 44

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36
x$0.4 billion, or 5%, increase in average home equity loans.
Partially offset by:
x$1.0 billion, or 14%, decrease in the average CRE portfolio reflecting the continued execution of our plan to reduce the
total CRE exposure, primarily in the noncore CRE portfolio.
The $1.5 billion, or 4%, increase in average total deposits from the prior year reflected:
x$1.9 billion, or 5%, increase in average total core deposits. The drivers of this change were a $1.8 billion, or 26%,
increase in average noninterest-bearing demand deposits and a $1.6 billion, or 13%, increase in average money market
deposits, partially offset by a $1.5 billion, or 16%, decline in average core certificates of deposits.
Partially offset by:
x$0.2 billion, or 33%, decline in average other domestic deposits of $250,000 or more, which reflected a strategy of
reducing such noncore funding.
Provision for Credit Losses
(This section should be read in conjunction with Significant Item 5 and the Credit Risk section.)
The provision for credit losses is the expense necessary to maintain the ALLL and the AULC at levels appropriate to absorb our
estimate of inherent credit losses in the loan and lease portfolio and the portfolio of unfunded loan commitments and letters-of-credit.
The provision for credit losses in 2012 was $147.4 million, down $26.7 million, or 15%, from 2011, including a $94.6 million, or
22%, decrease in NCOs. The provision for credit losses in 2012 was $195.1 million less than total NCOs (see Credit Quality
discussion).
Noninterest Income
(This section should be read in conjunction with Significant Items 2 and 4.)
The following table reflects noninterest income for the past three years:
Table 7 - Noninterest Income
Twelve Months Ended December 31,
Change from 2011 Change from 2010
(dollar amounts in thousands) 2012 Amount Percent 2011 Amount Percent 2010
Service charges on deposit accounts $ 262,179 $ 18,672 8 % $ 243,507 $ (23,508) (9)% $ 267,015
Mortgage banking income 191,092 107,684 129 83,408 (92,374) (53) 175,782
Trust services 121,897 2,515 2 119,382 6,827 6 112,555
Electronic banking 82,290 (29,407) (26) 111,697 1,463 1 110,234
Brokerage income 72,226 (8,141) (10) 80,367 11,512 17 68,855
Insurance income 71,319 1,849 3 69,470 (6,943) (9) 76,413
Gain on sale of loans 58,182 26,238 82 31,944 25,669 409 6,275
Bank owned life insurance income 56,042 (6,294) (10) 62,336 1,270 2 61,066
Capital markets fees 48,160 11,620 32 36,540 12,654 53 23,886
Securities gains (losses) 4,769 8,450 N.R. (3,681) (3,407) 1,243 (274)
Other income 129,701 (15,952) (11) 145,653 5,602 4 140,051
Total noninterest income $ 1,097,857 $ 117,234 12 % $ 980,623 $ (61,235) (6)% $ 1,041,858
N
.R. - Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.