Huntington National Bank 2003 Annual Report Download - page 122

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following provides a brief description of the four operating segments of Huntington:
Regional Banking: This segment provides products and services to retail, business banking, and commercial customers. This segment’s
products and services are offered in seven operating regions within the five states of Ohio, Michigan, West Virginia, Indiana, and
Kentucky through Huntington’s traditional banking network. Each region is further divided into Retail and Commercial Banking
units. Retail products and services include home equity loans and lines of credit, first mortgage loans, direct installment loans, business
loans, personal and business deposit products, as well as sales of investment and insurance services. Retail products and services
comprise 51% and 84%, of total regional banking loans and deposits, respectively. These products and services are delivered to
customers through banking offices, ATMs, Direct Bank—Huntington’s customer service center, and Web Bank at huntington.com.
Commercial banking products include middle-market and large commercial banking relationships which use a variety of banking
products and services including, but not limited to, commercial and industrial loans, international trade, and cash management,
leasing, interest rate protection products, capital market alternatives, 401(k) plans, and mezzanine investment capabilities.
Dealer Sales: This segment serves automotive dealerships within Huntington’s primary banking markets, as well as in Arizona, Florida,
Georgia, Pennsylvania, and Tennessee. This segment finances the purchase of automobiles by customers of the automotive dealerships,
purchases automobiles from dealers and simultaneously leases the automobiles under long-term direct financing leases, finances the
dealership’s floor plan inventories, real estate, or working capital needs, and provides other banking services to the automotive
dealerships and their owners.
Private Financial Group: This segment provides products and services designed to meet the needs of Huntington’s higher net worth
customers. Revenue is derived through trust, asset management, investment advisory, brokerage, insurance, and private banking
products and services. The trust division provides fiduciary services to more than 11,000 accounts with assets totaling $37.5 billion,
including $8.4 billion managed by the Private Financial Group (PFG). In addition, PFG has over $500 million in assets managed by
Haberer Registered Investment Advisor, which provides investment management services to nearly 400 customers.
Treasury/Other: This segment includes revenue and expense related assets, liabilities, and equity that are not directly assigned or
allocated to one of the three business segments. Assets included in this segment include bank owned life insurance, investment
securities, and mezzanine loans originated through Huntington Capital Markets.
Since a funds transfer pricing system is used to attribute appropriate funding interest income and interest expense to other business
segments, Treasury/Other segment results include the net impact of any over or under allocations arising from centralized
management of interest rate risk. This includes the net impact of derivatives used to hedge interest rate sensitivity. Furthermore, this
segment’s results include the net impact of administering Huntington’s investment securities portfolios as part of overall liquidity
management. Additionally, gains or losses not allocated to other business segments are also a component.
120 HUNTINGTON BANCSHARES INCORPORATED