Huntington National Bank 2003 Annual Report Download - page 44

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MANAGEMENT’S DISCUSSION AND ANALYSIS
Table 4—Consolidated Average Balance Sheets and Net Interest Margin Analysis
Average Balance
2003 2002 2001 2000 1999
Fully Tax Equivalent Basis (1) Change from 2002 Change from 2001
(in millions of dollars) Amount Percent Amount Percent
Assets
Interest bearing deposits in banks $ 37 $ 4 12.1% $ 33 $ 26 NM% $ 7 $ 6 $ 9
Trading account securities 14 7 NM 7 (18) (72.0) 25 15 13
Federal funds sold and securities purchased under
resale agreements 87 15 20.8 72 (35) (32.7) 107 87 22
Mortgages held for sale 564 242 75.2 322 (38) (10.6) 360 109 232
Securities:
Taxable 3,533 674 23.6 2,859 (285) (9.1) 3,144 4,316 4,885
Tax exempt 334 199 NM 135 (39) (22.4) 174 273 297
Total securities 3,867 873 29.2 2,994 (324) (9.8) 3,318 4,589 5,182
Loans and leases:
C&I 5,502 (177) (3.1) 5,679 (971) (14.6) 6,650 6,450 6,133
CRE
Construction 1,246 30 2.5 1,216 (5) (0.4) 1,221 1,184 999
Commercial 2,691 313 13.2 2,378 38 1.6 2,340 2,186 2,234
Consumer
Automobile loans 3,260 516 18.8 2,744 NM NM NM NM NM
Automobile leases 1,423 971 NM 452 NM NM NM NM NM
Automobile loans and leases 4,683 1,487 46.5 3,196 357 12.6 2,839 3,123 3,535
Home equity 3,446 361 11.7 3,085 (313) (9.2) 3,398 2,990 2,345
Residential mortgage 2,076 638 44.4 1,438 390 37.2 1,048 1,379 1,488
Other loans 380 (45) (10.6) 425 (165) (28.0) 590 530 1,102
Total consumer 10,585 2,441 30.0 8,144 269 3.4 7,875 8,022 8,470
Total loans and leases 20,024 2,607 15.0 17,417 (669) (3.7) 18,086 17,842 17,836
Allowance for loan losses 358 (16) (4.3) 374 67 21.8 307 274 280
Net loans and leases 19,666 2,623 15.4 17,043 (736) (4.1) 17,779 17,568 17,556
Total earning assets 24,593 3,748 18.0 20,845 (1,058) (4.8) 21,903 22,648 23,294
Operating lease inventory 1,697 (905) (34.8) 2,602 (368) (12.4) 2,970 2,751 2,179
Cash and due from banks 774 17 2.2 757 (155) (17.0) 912 1,008 1,039
Intangible assets 218 (75) (25.6) 293 (443) (60.2) 736 709 682
All other assets 2,020 110 5.8 1,910 19 1.0 1,891 1,729 1,707
Total Assets $28,944 $2,911 11.2% $26,033 $(2,072) (7.4)% $28,105 $28,571 $28,621
Liabilities and Shareholders’ Equity
Core deposits
Non-interest bearing deposits $ 3,080 $ 178 6.1% $ 2,902 $ (402) (12.2)% $ 3,304 $ 3,421 $ 3,497
Interest bearing demand deposits 6,193 1,032 20.0 5,161 156 3.1 5,005 4,291 4,097
Savings deposits 2,802 (51) (1.8) 2,853 (625) (18.0) 3,478 3,563 3,740
Retail certificates of deposit 2,702 (917) (25.3) 3,619 (1,361) (27.3) 4,980 4,930 4,791
Other domestic time deposits 660 (70) (9.6) 730 (173) (19.2) 903 942 1,032
Total core deposits 15,437 172 1.1 15,265 (2,405) (13.6) 17,670 17,147 17,157
Domestic time deposits of $100,000 or more 802 (49) (5.8) 851 (429) (33.5) 1,280 1,502 1,449
Brokered time deposits and negotiable CDs 1,419 688 94.1 731 603 NM 128 502 238
Foreign time deposits 500 163 48.4 337 54 19.1 283 539 363
Total deposits 18,158 974 5.7 17,184 (2,177) (11.2) 19,361 19,690 19,207
Short-term borrowings 1,600 (256) (13.8) 1,856 (243) (11.6) 2,099 1,966 2,549
Federal Home Loan Bank advances 1,258 979 NM 279 260 NM 19 13 5
Subordinated notes and other long-term debt,
including preferred capital securities 4,559 1,224 36.7 3,335 (76) (2.2) 3,411 4,005 4,120
Total interest bearing liabilities 22,495 2,743 13.9 19,752 (1,834) (8.5) 21,586 22,253 22,384
All other liabilities 1,173 33 2.9 1,140 256 29.0 884 705 648
Shareholders’ equity 2,196 (43) (1.9) 2,239 (92) (3.9) 2,331 2,192 2,092
Total Liabilities and Shareholders’ Equity $28,944 $2,911 11.2% $26,033 $(2,072) (7.4)% $28,105 $28,571 $28,621
Net Interest Income
Net interest rate spread
Impact of non-interest bearing funds on margin
Net Interest Margin
(1) Fully taxable equivalent yields are calculated assuming a 35% tax rate.
(2) Average rates computed using historical cost average balances and do not give effect to changes in fair value of securities available for sale.
(3) Individual loan and lease components include fees and cash basis interest received on non-accrual loans.
(4) Loan and lease and deposit average rates include the impact of applicable derivatives.
NM, not a meaningful value.
42 HUNTINGTON BANCSHARES INCORPORATED