Huntington National Bank 2004 Annual Report Download - page 116

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
At December 31, 2004, none of Huntington’s goodwill is deductible for tax purposes. Goodwill and other intangible assets, net of
accumulated amortization, and related activity, by segment, for the years ended December 31, 2004 and 2003, were as follows:
Regional Dealer Treasury/ Huntington
(in thousands of dollars) Banking Sales PFG Other Consolidated
Balance, January 1, 2003 $ 198,335 — $ 12,947 $ 7,285 $218,567
Disposals (333) — — — (333)
Amortization — — — (816) (816)
Adjustments (409) — — — (409)
Balance, December 31, 2003 197,593 — 12,947 6,469 217,009
Amortization — — — (817) (817)
Adjustments — — (385) — (385)
Balance, December 31, 2004 $197,593 $ — $ 12,562 $ 5,652 $215,807
The $0.4 million adjustment in 2004 relates to goodwill recorded as part of the Haberer Registered Investment Advisor, Inc.
acquisition in 2002. During 2003, Huntington completed the sale of certain banking offices in West Virginia, resulting in a
$0.3 million write-off of the remaining associated goodwill. The remaining $0.4 million write-off in 2003 related to an adjustment of
the goodwill amount recorded as part of the LeaseNet, Inc. acquisition in 2002. No impairment of goodwill was recognized in 2004,
2003, or 2002.
A substantial portion of the remaining goodwill is attributable to the previously acquired banking operations reported under the
Regional Banking line of business. For the years 2005 through 2009, amortization expense associated with the leasehold intangible is
expected to be $0.8 million each year.
10. SHORT-TERM BORROWINGS
At December 31, short-term borrowings were comprised of the following:
At December 31,
(in thousands of dollars) 2004 2003
Federal funds purchased $ 30,620 $ 230,585
Securities sold under agreements to repurchase 1,093,247 1,147,473
Commercial paper 1,928 3,481
Other 81,438 70,765
Total Short-term Borrowings $1,207,233 $1,452,304
Information concerning securities sold under agreements to repurchase at December 31 is summarized as follows:
Year Ended December 31,
(in thousands of dollars) 2004 2003
Average balance during the year $1,410,174 $ 880,363
Average interest rate during the year 0.93% 0.73%
Maximum month-end balance during the year $1,500,267 $1,276,761
Commercial paper is issued by Huntington Bancshares Financial Corporation, a non-bank subsidiary, with principal and interest
guaranteed by the parent company.
11. FEDERAL HOME LOAN BANK ADVANCES
Huntington’s long-term advances from the Federal Home Loan Bank had weighted average interest rates of 2.32% and 1.23% at
December 31, 2004 and 2003, respectively. These advances, which predominately had variable interest rates, were collateralized by
qualifying real estate loans. As of December 31, 2004 and 2003, Huntington’s maximum borrowing capacity was $1.5 billion and
$1.4 billion, respectively. The advances of $1.3 billion mature over the next 15 years as follows: $100 million in 2005; none in 2006;
$900 million in 2007; $270 million in 2008; none in 2009, and $1 million thereafter. The terms of advances include various restrictive
covenants including limitations on the acquisition of additional debt in excess of specified levels, dividend payments, and the
disposition of subsidiaries. As of December 31, 2004, Huntington was in compliance with all such covenants.
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