Huntington National Bank 2012 Annual Report Download - page 93

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RESULTS FOR THE FOURTH QUARTER
Earnings Discussion
In the 2012 fourth quarter, we reported net income of $167.3 million, or $0.19 per common share, compared with net income of
$126.9 million, or $0.14 per common share, in the year-ago quarter. Significant items impacting fourth quarter performance included:
Table 45 - Significant Items Influencing Earnings Performance Comparison
(dollar amounts in millions, except per share amounts)
Impact(1)
Three Months Ended: After-tax EPS(2)
December 31, 2012 - GAAP income $ 167.3 $ 0.19
December 31, 2011 - GAAP income $ 126.9 $ 0.14
• Gain on early extinguishment of debt 9.7 0.01
• Visa®-related derivative loss (6.4) ---
(1) Favorable (unfavorable) impact on GAAP earnings; pretax unless otherwise noted.
(2) After-tax. EPS is reflected on a fully diluted basis.
Net Interest Income / Average Balance Sheet
FTE net interest income increased $21.0 million, or 5%, from the year-ago quarter. This reflected the $1.5 billion, or 3%,
increase in average total earning assets and 7 basis point increase in the fully-taxable equivalent net interest margin.
The following table presents the $0.9 billion, or 2%, increase in average total loans and leases:
Table 46 - Average Loans/Leases - 2012 Fourth Quarter vs. 2011 Fourth
Quarter
Fourth Quarter Change
(dollar amounts in millions) 2012 2011 Amount Percent
Average Loans/Leases
Commercial and industrial $ 16,507 $ 14,219 $ 2,288 16 %
Commercial real estate 5,473 5,958 (485) (8)
Total commercial 21,980 20,177 1,803 9
Automobile 4,486 5,639 (1,153) (20)
Home equity 8,345 8,149 196 2
Residential mortgage 5,155 5,043 112 2
Other consumer 431 511 (80) (16)
Total consumer 18,417 19,342 (925) (5)
Total loans/leases $ 40,397 $ 39,519 $ 878 2 %
The increase in average total loans and leases reflected:
x$2.3 billion, or 16%, increase in average C&I portfolio. This reflected the continued growth across most business lines
including equipment finance, dealer floorplan, large corporate, and middle market.
Partially offset by:
x$1.2 billion, or 20%, decrease in average automobile loans. The decrease reflected the impact of our continued program of
securitization and sale of such loans. Specifically, $1.3 billion of such loans in the 2012 first quarter and $1.0 billion in the
2012 fourth quarter were securitized and sold. Automobile loan originations remained strong during the 2012 fourth quarter
and 2012 was a record year with over $4.0 billion of originations.
x$0.5 billion, or 8%, decrease in average CRE loans. This reflected continued runoff of the noncore portfolio.