Huntington National Bank 2003 Annual Report Download - page 95

MANAGEMENT’S DISCUSSION AND ANALYSIS
Table 26—Selected Quarterly Income Statements
2003 2002
(in thousands, except per share amounts) Fourth Third Second First Fourth Third Second First
Net Interest Income $224,315 $220,471 $202,441 $201,759 $199,179 $191,265 $180,261 $178,869
Provision for loan and lease losses 26,341 51,615 49,193 36,844 51,236 54,304 49,876 39,010
Net Interest Income After Provision for
Loan and Lease Losses 197,974 168,856 153,248 164,915 147,943 136,961 130,385 139,859
Operating lease income 105,307 117,624 128,574 138,193 149,259 160,164 171,617 176,034
Service charges on deposit accounts 44,763 42,294 40,914 39,869 41,435 37,706 35,608 38,815
Trust services 15,793 15,365 15,580 14,911 15,306 14,997 16,247 15,501
Brokerage and insurance income 14,344 13,807 14,196 15,497 13,941 13,664 16,899 17,605
Mortgage banking 9,677 30,193 7,185 11,125 5,530 2,594 7,835 16,074
Bank Owned Life Insurance income 10,410 10,438 11,043 11,137 10,722 10,723 10,722 10,956
Other service charges and fees 9,237 10,499 11,372 10,338 10,890 10,837 10,529 10,632
Gain on sales of automobile loans 16,288 — 13,496 10,255 — — — —
Gain on sale of branch offices — 13,112 — — — — — —
Securities gains (losses) 1,280 (4,107) 6,887 1,198 2,339 1,140 966 457
Gain on sale of Florida Operations — — — — — — — 182,470
Merchant Services gain — — — — — 24,550 — —
Other 19,411 23,543 27,704 20,401 22,433 22,227 18,291 13,989
Total Non-Interest Income 246,510 272,768 276,951 272,924 271,855 298,602 288,714 482,533
Personnel costs 115,762 113,170 105,242 113,089 110,231 100,662 99,115 108,029
Operating lease expense 85,609 93,134 102,939 111,588 120,747 125,743 131,695 140,785
Outside data processing and other services 15,957 17,478 16,104 16,579 17,209 15,128 16,592 18,439
Equipment 16,840 16,328 16,341 16,412 17,337 17,378 16,659 16,949
Net occupancy 14,925 15,570 15,377 16,609 13,370 14,676 14,504 16,989
Professional services 12,175 11,116 9,872 9,285 9,111 9,680 7,864 6,430
Marketing 6,895 5,515 8,454 6,626 6,186 7,491 7,231 7,003
Telecommunications 5,272 5,612 5,394 5,701 5,714 5,609 5,320 6,018
Loss on early extinguishment of debt 15,250 — — — — — — —
Printing and supplies 3,417 3,658 2,253 3,681 3,999 3,679 3,683 3,837
Amortization of intangibles 204 204 204 204 204 204 235 1,376
Restructuring (releases) charges (351) — (5,315) (1,000) (7,211) — — 56,184
Other 25,510 18,397 20,168 16,705 32,412 19,246 20,848 19,557
Total Non-Interest Expense 317,465 300,182 297,033 315,479 329,309 319,496 323,746 401,596
Income Before Income Taxes 127,019 141,442 133,166 122,360 90,489 116,067 95,353 220,796
Income taxes 33,758 37,230 36,676 30,630 21,226 28,052 24,375 125,321
Income before cumulative effect of change
in accounting principle 93,261 104,212 96,490 91,730 69,263 88,015 70,978 95,475
Cumulative effect of change in accounting
principle, net of tax (1) — (13,330) — — — — — —
Net Income $ 93,261 $ 90,882 $ 96,490 $ 91,730 $ 69,263 $ 88,015 $ 70,978 $ 95,475
Income before cumulative effect of change
in accounting principle—Diluted $ 0.40 $ 0.45 $ 0.42 $ 0.39 $ 0.29 $ 0.36 $ 0.29 $ 0.38
Net Income Per Common Share— Diluted 0.40 0.39 0.42 0.39 0.29 0.36 0.29 0.38
Cash Dividends Declared Per Common Share 0.175 0.175 0.16 0.16 0.16 0.16 0.16 0.16
Revenue—Fully Taxable Equivalent (FTE)
Net interest income $224,315 $220,471 $202,441 $201,759 $199,179 $191,265 $180,261 $175,869
Tax equivalent adjustment (2) 2,954 2,558 2,076 2,096 1,869 1,096 1,071 1,169
Net Interest Income—FTE $227,269 $223,029 $204,517 $203,855 $201,048 $192,361 $181,332 $180,038
(1) Due to the adoption of FASB Interpretation No. 46 for variable interest entities.
(2) Calculated assuming a 35% tax rate.
HUNTINGTON BANCSHARES INCORPORATED 93