Huntington National Bank 2005 Annual Report Download - page 25

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23
DEALER SALES
KEY FINANCIAL MEASURES
in thousands 2005 2004
Operating Revenues (fully taxable equivalent) $ 315,370 $ 469,945
Operating Earnings 67,184 65,639
Total Loans and Leases (December 31) 5,241,036 5,346,214
Operating Lease Assets (December 31) 189,002 574,042
PROFILE
Automobile lending activities and relationships with more than 3,500 automobile dealers in Huntington’s fi ve banking
states, plus Arizona, Florida, Georgia, North Carolina, Pennsylvania, South Carolina, and Tennessee.
Products and services include indirect consumer loans and leases, as well as dealer fl oor plan and other commercial
fi nancing and banking services.
REVIEW
Dealer Sales has been a major Huntington line of business for more than 50 years. More than 85% of our Dealer Sales
assets are generated through automobile dealers within our fi ve-state footprint, with the remainder originated in
seven additional states. In order to be close to our more than 3,500 customers, we maintain seven regional sales and
underwriting offi ces.
Our focus is on relationships and profi tability. Last year, we maintained our top market position in all our markets,
despite intense competition, by focusing on our essential partnership with dealers and delivering “Simply the Best”
service. As an essential partner, we provide dealers with automobile loans and leases as well as commercial fl oor plan
loans and a wide range of fi nancing and cash management services. Many of our competitors build temporary mar-
ket share by offering discounted pricing. In contrast, we build profi table relationships for the long term.
The automobile business changes every year, and automobile manufacturer product offerings vary by type and price.
Our business is accustomed to these changes, and our service is fl exible to meet the needs of the customer. While every
car sale is a personal buyer decision, we personalize the service and make the transaction easy for both buyer and dealer.
Total U.S. auto sales in 2005 were comparable to 2004. In contrast, our production level declined due to a greater focus
by the captive fi nance companies on new car leasing. However, in the face of elevated competition, we maintained our
level of credit quality and reduced costs associated with operating the business.
We also maintained our objective to limit our automobile loan and lease credit exposure to 20% or less of Huntington’s
total credit exposure. To help accomplish this objective, we entered into an agreement to sell 50%-75% of our new
automobile loan originations. This reduces our risk profi le, while retaining the high-return servicing right for these
credits and providing a stable source of non-interest income.
By focusing on the basics of disciplined pricing, consistent underwriting, and exceptional service, we have excellent
future prospects for quality, profi table growth in Dealer Sales in 2006.