Huntington National Bank 2012 Annual Report Download - page 80

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Share Repurchases
From time to time the board of directors authorizes the Company to repurchase shares of our common stock. Although we
announce when the Board authorizes share repurchases, we typically do not give any public notice before we repurchase our shares.
Future stock repurchases may be private or open-market repurchases, including block transactions, accelerated or delayed block
transactions, forward transactions, and similar transactions. Various factors determine the amount and timing of our share
repurchases, including our capital requirements, the number of shares we expect to issue for employee benefit plans and acquisitions,
market conditions (including the trading price of our stock), and regulatory and legal considerations, including the FRB’s response to
our capital plan.
Our board of directors has authorized a share repurchase program consistent with our capital plan. During 2012, we repurchased
23.3 million common shares at a weighted average share price of $6.36. No shares were repurchased in 2011.
Other Capital Matters
TARP Capital
In 2011, we fully exited our TARP relationship by repurchasing for $49.1 million the ten-year warrant we had issued to the
Treasury as part of the TARP. Refer to the 2010 Form 10-K for a complete discussion regarding the repayment of our TARP Capital.
BUSINESS SEGMENT DISCUSSION
Overview
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 also
includes our insurance business and other unallocated assets, liabilities, revenue, and expenses. While this section reviews financial
performance from a business segment perspective, it should be read in conjunction with the Discussion of Results of Operations, Note
25 of the Notes to Consolidated Financial Statements, and other sections for a full understanding of our consolidated financial
performance.
Business segment results are determined based upon our management reporting system, which assigns balance sheet and income
statement items to each of the business segments. The process is designed around our organizational and management structure and,
accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions.
Optimal Customer Relationship (OCR)
Our OCR initiative is a cross-business segment strategy designed to increase overall customer profitability and retention by
deepening product and service penetration to consumer and commercial customers. We believe this can be accomplished by taking
our broad array of services and products and delivering them through a rigorous and disciplined sales management process that is
consistent across all business segments and regions. It is also supported by robust sales and cross-referral technology.
OCR was introduced in late 2009. Through 2010, much of the effort was spent on defining processes, sales training, and systems
development to fully capture and measure OCR performance metrics. In 2011, we introduced OCR-related metrics for commercial
relationships, which complements the previously disclosed consumer OCR-related metrics. In 2012, we continued to experience
strong consumer household and commercial relationship growth.
CONSUMER OCR PERFORMANCE
For consumer OCR performance there are three key performance metrics: (1) the number of checking account households, (2) the
number of product penetration per consumer checking account household, and (3) the revenue generated. Consumer households from
all business segments are included.
The growth in consumer checking account number of households is a result of both new sales of checking accounts and improved
retention of existing checking account households. The overall objective is to grow the number of households, along with an increase
in product penetration.