Huntington National Bank 2003 Annual Report Download - page 103

CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended December 31,
(in thousands of dollars) 2003 2002 2001
Operating Activities
Net income $ 372,363 $ 323,731 $ 134,796
Adjustments to reconcile net income to net cash provided by operating activities
Cumulative effect of change in accounting principle, net of tax 13,330 —
Provision for loan and lease losses 163,993 194,426 257,326
Depreciation on operating lease assets 367,489 435,822 468,739
Other depreciation and amortization 120,600 58,132 101,233
Deferred income tax expense 258 96,718 91,598
(Increase) decrease in trading account securities (7,348) 13,151 (8,669)
Decrease in mortgages held for sale 301,650 101,007 (474,282)
Gains on sales of securities available for sale (5,258) (4,902) (723)
Gains on sales/securitizations of loans (45,610) (11,031) (9,464)
Gain on sale of branch offices (13,112) — —
Gain on sale of Florida banking and insurance operations — (182,470) —
Gain on restructuring of Huntington Merchant Services LLC — (24,550) —
Loss on early extinguishment of debt 15,250 — —
Restructuring (releases) charges (6,666) 48,973 79,957
Other, net 61,467 (18,946) (143,505)
Net Cash Provided by Operating Activities 1,338,406 1,030,061 497,006
Investing Activities
Decrease (increase) in interest bearing deposits in banks 3,673 (16,095) (16,235)
Proceeds from:
Maturities and calls of investment securities 3,744 4,771 4,009
Maturities and calls of securities available for sale 1,582,235 1,031,935 1,021,766
Sales of securities available for sale 1,161,325 855,309 1,410,304
Purchases of securities available for sale (4,341,946) (1,959,137) (1,056,840)
Proceeds from sales/securitizations of loans 2,576,869 465,699 514,897
Net loan and lease originations, excluding sales (4,408,975) (3,867,300) (1,605,519)
Decrease (increase) in operating lease assets 572,596 369,501 (540,094)
Proceeds from the sale of branch offices 81,367 — —
Proceeds from sale of premises and equipment 7,382 19,390 3,714
Purchases of premises and equipment (62,503) (57,761) (63,177)
Proceeds from sales of other real estate 14,083 13,112 15,733
Consolidation of cash of securitization trust 58,500 — —
Net cash paid in purchase acquisitions — (8,305) —
Proceeds from restructuring of Huntington Merchant Services, LLC — 27,000 —
Net cash paid related to sale of Florida banking and insurance operations — (1,277,767) —
Net Cash Used for Investing Activities (2,751,650) (4,399,648) (311,442)
Financing Activities
Increase in total deposits 915,518 2,073,891 423,157
(Decrease) increase in short-term borrowings (688,712) 537,770 (31,833)
Proceeds from issuance of subordinated notes 198,430 — —
Maturity of subordinated notes (250,000) — —
Proceeds from Federal Home Loan Bank advances 270,000 1,000,000 —
Maturity of Federal Home Loan Bank advances (10,000) (4,000) (8,000)
Proceeds from issuance of long-term debt 2,075,000 1,025,000 715,000
Maturity of long-term debt (895,250) (932,150) (1,330,000)
Dividends paid on common stock (151,023) (167,002) (190,792)
Repurchases of common stock (81,061) (370,012) —
Net proceeds from issuance of common stock 8,082 3,212 2,662
Net Cash Provided by (Used for) Financing Activities 1,390,984 3,166,709 (419,806)
Change in Cash and Cash Equivalents (22,260) (202,878) (234,242)
Cash and Cash Equivalents at Beginning of Period 1,018,763 1,221,641 1,455,883
Cash and Cash Equivalents at End of Period $ 996,503 $ 1,018,763 $ 1,221,641
Supplemental Disclosures
Income taxes paid $ 72,128 $ 70,463 $ 175
Interest paid 469,331 560,731 986,108
Non-cash activities:
Mortgage loans securitized 354,200 386,385 —
Common stock dividends accrued, not paid 31,113 28,032 —
Stock issued for purchase acquisitions — 19,151 —
See notes to consolidated financial statements.
HUNTINGTON BANCSHARES INCORPORATED 101