Huntington National Bank 2004 Annual Report Download - page 133

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
Statements of Cash Flows Year Ended December 31,
(in thousands of dollars) 2004 2003 2002
Operating Activities
Net Income $398,925 $372,363 $323,731
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of change in accounting principle —2,442 —
Equity in undistributed net income of subsidiaries (4,934) (210,275) (83,983)
Depreciation and amortization 2,690 2,211 1,254
Gain on sales of securities available for sale —(5) (709)
Change in other assets and other liabilities (13,609) (67,852) 45,575
Restructuring charges —— 6,859
Net Cash Provided by Operating Activities 383,072 98,884 292,727
Investing Activities
Decrease in investments in subsidiaries —— 670,000
Repayments from subsidiaries 117,314 27,001 66,258
Advances to subsidiaries (80,197) (74,650) (58,861)
Proceeds from sale of securities available for sale —46 8,977
Net Cash Provided by (Used in) Investing Activities 37,117 (47,603) 686,374
Financing Activities
Proceeds from issuance of other long-term debt —100,000 100,000
Payment of other long-term debt (101,541) (41,544) (154,020)
Dividends paid on common stock (168,075) (151,023) (167,002)
Acquisition of treasury stock —(81,061) (370,012)
Proceeds from issuance of treasury stock 47,239 8,082 3,212
Net Cash Used for Financing Activities (222,377) (165,546) (587,822)
Change in Cash and Cash Equivalents 197,812 (114,265) 391,279
Cash and Cash Equivalents at beginning of year 432,632 546,897 155,618
Cash and Cash Equivalents at end of year $630,444 $432,632 $546,897
Supplemental disclosure:
Interest paid $ 18,495 $ 13,157 $ 20,779
Common stock issued in purchase acquisitions —— 19,151
26. RESTRUCTURING RESERVES
On a quarterly basis, Huntington assesses its remaining restructuring reserves, primarily related to lease obligations, and makes
adjustments to those reserves as necessary. During 2004, Huntington released $1.2 million of restructuring reserves through a credit to
the restructuring charges line of non-interest expense in the accompanying consolidated income statement. As of December 31, 2004,
Huntington had remaining reserves for restructuring of $5.3 million. Huntington expects that the reserves will be adequate to fund
the estimated cash outlays necessary to complete the exit activities.
27. ACQUISITIONS AND DIVESTITURES
A
CQUISITIONS
On January 27, 2004, Huntington announced the signing of a definitive agreement to acquire Unizan Financial Corp. (Unizan), a
financial holding company based in Canton, Ohio. On June 16, 2004, Huntington announced that the closing of the Unizan merger
would be delayed beyond the early July 2004 targeted date as the FRBC had informed the Company it was extending its merger
application review period to coordinate further with the staff of the SEC regarding the SEC’s formal investigation and to complete its
review of the Community Reinvestment Act aspects of the merger. On November 3, 2004, Huntington announced that it was
negotiating a one-year extension of its pending merger agreement with Unizan. It was also announced that Huntington was
withdrawing its current application with the FRBC to acquire Unizan and intends to resubmit the application for regulatory approval
of the merger once Huntington has successfully resolved the pending SEC and banking regulatory concerns. On November 11, 2004,
Huntington and Unizan jointly announced they had entered into an amendment to their January 26, 2004 merger agreement. The
amendment extends the term of the agreement for one year from January 27, 2005 to January 27, 2006.
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