Huntington National Bank 2014 Annual Report Download - page 85

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Regional Banking and The Huntington Private Client Group
Table 39 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
Change from 2013
(dollar amounts in thousands unless otherwise noted) 2014 2013 Amount Percent 2012
N
et interest income $ 101,839 $ 105,862 $ (4,023) (4)% $ 104,329
Provision (reduction in allowance) for credit losses 4,893 (5,376) 10,269 N.R. 6,044
N
oninterest income 173,550 186,430 (12,880) (7) 181,650
N
oninterest expense 236,634 236,895 (261) --- 253,901
Provision for income taxes 11,852 21,271 (9,419) (44) 9,112
N
et income $ 22,010 $ 39,502 $ (17,492) (44)% $ 16,922
N
umber of employees (average full-time equivalent) 1,022 1,065 (43) (4)% 1,101
Total average assets (in millions) $ 3,812 $ 3,732 $ 80 2 $ 3,590
Total average loans/leases (in millions) 2,894 2,832 62 2 2,704
Total average deposits (in millions) 6,029 5,765 264 5 5,630
N
et interest margin 1.75 % 1.90 % (0.15)% (8) 1.89 %
N
COs $ 8,143 $ 11,094 $ (2,951) (27) $ 19,898
N
COs as a % of average loans and leases 0.28 % 0.39 % (0.11)% (28) 0.74 %
Return on average common equity 4.4 7.9 (3.5) (44) 3.3
Total assets under management (in billions) - eop $ 14.8 $ 16.7 $ (1.9) (11) $ 15.9
Total trust assets (in billions) - eop 81.5 80.9 0.6 1 73.9
N
.R. - Not relevant, as denominator of calculation is a reduction in allowance in prior period compared with a provision increase in the current period.
eop - End of Period.
2014 vs. 2013
RBHPCG reported net income of $22.0 million in 2014. This was a decrease of $17.5 million, or 44%, when compared to the
year-ago period. The decrease in net income reflected a combination of factors described below.
The decrease in net interest income from the year-ago period reflected:
x 15 basis point decrease in the net interest margin, primarily due to lower spreads on deposits.
Partially offset by:
x $0.3 billion, or 5%, increase in average total deposits, primarily due to increased focus on deposit growth resulting from the
alignment of private banking with the regional presidents.
The increase in provision for (reduction in allowance) credit losses reflected:
x Less improvement in the underlying credit quality of the loan portfolio compared to year-ago period, partially offset by
reduced level of NCOs.
The decrease in noninterest income from the year-ago period reflected:
x $8.3 million, or 7%, decrease in trust services, primarily due to reduced proprietary mutual fund revenue related to a
reduction in asset values and due to the sale of the fixed income funds.
x $3.4 million, or 27%, decrease in other noninterest income, primarily due to a gain realized from LIHTC investment sales in
the 2013.
x $1.5 million, or 25%, decrease in service charges on deposit accounts.