Huntington National Bank 2004 Annual Report Download - page 29

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION HUNTINGTON BANCSHARES INCORPORATED
AND RESULTS OF OPERATIONS
INTRODUCTION
Huntington Bancshares Incorporated (Huntington or the Company) is a multi-state diversified financial holding company organized
under Maryland law in 1966 and headquartered in Columbus, Ohio. Through its subsidiaries, Huntington is engaged in providing
full-service commercial and consumer banking services, mortgage banking services, automobile financing, equipment leasing,
investment management, trust services, and discount brokerage services, as well as reinsuring credit life and disability insurance, and
selling other insurance and financial products and services. Huntington’s banking offices are located in Ohio, Michigan, West
Virginia, Indiana, and Kentucky. Certain activities are also conducted in other states including Arizona, Florida, Georgia, Maryland,
Nevada, New Jersey, Pennsylvania, and Tennessee. Huntington has a foreign office in the Cayman Islands and a foreign office in Hong
Kong. The Huntington National Bank (the Bank), organized in 1866, is Huntington’s only bank subsidiary.
The following discussion and analysis provides investors and others with information that Management believes to be necessary for an
understanding of Huntington’s financial condition, changes in financial condition, results of operations, and cash flows, and should
be read in conjunction with the financial statements, notes, and other information contained in this report.
The reader should note the following discussion is divided into key segments:
–I NTRODUCTION — Provides overview comments on important matters including risk factors, the Securities and Exchange
Commission (SEC) investigation and banking regulatory agreements, and critical accounting policies and use of significant
estimates. These are essential for understanding the Company’s performance and prospects.
–D ISCUSSION OF R ESULTS — Reviews financial performance from a consolidated perspective. It also includes a Significant
Factors Influencing Financial Performance Comparisons section that summarizes key issues important for a complete
understanding of performance trends. Key consolidated balance sheet and income statement trends are discussed in this
section.
–R ISK M ANAGEMENT — Discusses credit and market risks, including how these risks are managed, as well as performance
trends. It also includes a discussion of liquidity policies, how funding is managed, and related performance. In addition, there
is a discussion of guarantees and/or commitments made for items such as standby letters of credit and commitments to sell
loans, and a discussion that reviews the adequacy of capital including regulatory classifications.
–L INES OF B USINESS D ISCUSSION — Provides an overview of financial performance for each major line of business and provides
additional discussion of trends underlying consolidated financial performance.
–R ESULTS FOR THE F OURTH Q UARTER — Provides a discussion of results for the 2004 fourth quarter compared with the year-
earlier quarter.
A reading of each section is important for investors and others to achieve a full understanding of the nature of the Company’s
financial performance and prospects.
Forward-Looking Statements
This report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-
looking statements about Huntington. These include descriptions of products or services, plans or objectives of Management for
future operations, including any pending acquisitions, and forecasts of revenues, earnings, cash flows, or other measures of economic
performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.
By their nature, forward-looking statements are subject to numerous assumptions, risks, and uncertainties. A number of factors could
cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. These factors
include, but are not limited to, those set forth under the heading ‘‘Business Risks’’ included in Item 1 of Huntington’s Annual Report
on Form 10-K for the year ended December 31, 2004, and other factors described in this report and from time-to-time in other filings
with the SEC.
Management encourages readers of this report to understand forward-looking statements to be strategic objectives rather than
absolute forecasts of future performance. Forward-looking statements speak only as of the date they are made. Huntington assumes
no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking
statements were made or to reflect the occurrence of unanticipated events.
Risk Factors
Huntington, like other financial companies, is subject to a number of risks, many of which are outside of Management’s control,
though efforts are made to manage those risks while optimizing returns. Among the risks assumed are: (1) credit risk, which is the
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