Huntington National Bank 2004 Annual Report Download - page 21
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KEY FINANCIAL MEASURES
in thousands 2004 2003
Operating Revenues (fully taxable equivalent) $ 469,685 $ 633,229
Operating Earnings 65,489 60,063
Total Loans and Leases (December 31) 5,346,228 5,835,460
Operating Lease Assets (December 31) 587,310 1,260,440
PROFILE
Automobile lending activities and relationships with more than 3,500 automobile dealers in Huntington’s five banking states, plus
Arizona, Florida, Georgia, Pennsylvania, and Tennessee.
Products and services include indirect consumer loans and leases, as well as dealer floor plan and other commercial financing and
banking services.
REVIEW
Dealer Sales has been a core business for Huntington since the early 1950s. It is an integral and significant part of our overall
financial services strategy. To build customer loyalty, a key objective is to provide dealers and their customers with “Simply the
Best” service. This is an important element in our continued success. Many of our competitors have built temporary market share
through discount pricing. Our objective is to build profitable relationships for the long term.
We provide financing services to dealers, including automobile loans and leases, as well as commercial floor plan loans. In spite
of the most aggressive marketing efforts in decades by automobile manufacturer captive finance companies, we were able to
maintain our historical high market position in 2004.
More than 85% of our Dealer Sales assets are developed through automobile dealers within our five-state footprint. We currently
originate loans and leases in 10 states and maintain seven regional sales and underwriting offices. We continue to follow a disciplined
approach to market pricing and continued to improve the asset quality of the loans and leases we originated in 2004. During 2004,
we sold $1.5 billion of automobile loans to balance our asset mix. Our target is to have about 20% of our total credit exposure in
automobile loans and leases.
Commercial loans increased by more than 15% for the second year in a row as a result of cultivating several new and important
dealer relationships. We have been successful in this industry segment because of our long-term commitment supported by
tenured management and its focus on cross-selling additional services to dealers including treasury, cash management, investment,
and private banking services.
By sticking to the basics – disciplined pricing, consistent underwriting, and exceptional service – we have excellent future prospects
for quality, profitable growth in Dealer Sales.
19
Dealer Sales
We have been successful in this industry segment because of our long-term
commitment supported by tenured management and its focus on cross-selling
additional services to dealers including treasury, cash management, investment,
and private banking services.
Nick Stanutz
Senior Executive Vice President, Dealer Sales
26 years experience in the financial services industry