Huntington National Bank 2005 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2005 Huntington National Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Table 2 — Selected Annual Income Statements
Year Ended December 31,
Change from 2004 Change from 2003
(in thousands, except per share amounts) 2005 Amount % 2004 Amount % 2003 2002 2001
Interest income $1,641,765 $ 294,450 21.9% $1,347,315 $ 41,559 3.2% $1,305,756 $1,293,195 $1,654,789
Interest expense 679,354 243,413 55.8 435,941 (20,829) (4.6) 456,770 543,621 939,501
Net interest income 962,411 51,037 5.6 911,374 62,388 7.3 848,986 749,574 715,288
Provision for credit losses 81,299 26,237 47.7 55,062 (108,931) (66.4) 163,993 194,426 257,326
Net interest income after provision for
credit losses 881,112 24,800 2.9 856,312 171,319 25.0 684,993 555,148 457,962
Service charges on deposit accounts 167,834 (3,281) (1.9) 171,115 3,275 2.0 167,840 153,564 165,012
Operating lease income 138,433 (148,658) (51.8) 287,091 (202,607) (41.4) 489,698 657,074 691,733
Trust services 77,405 9,995 14.8 67,410 5,761 9.3 61,649 62,051 60,298
Brokerage and insurance income 53,619 (1,180) (2.2) 54,799 (3,045) (5.3) 57,844 62,109 75,013
Other service charges and fees 44,348 2,774 6.7 41,574 128 0.3 41,446 42,888 48,217
Mortgage banking 41,710 9,414 29.1 32,296 (25,884) (44.5) 58,180 32,033 54,518
Bank owned life insurance income 40,736 (1,561) (3.7) 42,297 (731) (1.7) 43,028 43,123 41,123
Gain on sales of automobile loans 1,211 (12,995) (91.5) 14,206 (25,833) (64.5) 40,039
Gain on sale of branch offices ——— — (13,112) N.M. 13,112 — —
Gain on sale of Florida operations ——— — — — — 182,470 —
Merchant services gain —— — — — — 24,550 —
Securities gains (losses) (8,055) (23,818) N.M. 15,763 10,505 N.M. 5,258 4,902 723
Other 75,041 (17,006) (18.5) 92,047 988 1.1 91,059 76,940 63,305
Total non-interest income 632,282 (186,316) (22.8) 818,598 (250,555) (23.4) 1,069,153 1,341,704 1,199,942
Personnel costs 481,658 (4,148) (0.9) 485,806 38,543 8.6 447,263 418,037 454,210
Operating lease expense 108,376 (128,102) (54.2) 236,478 (156,792) (39.9) 393,270 518,970 558,626
Outside data processing and other services 74,638 2,523 3.5 72,115 5,997 9.1 66,118 67,368 69,692
Net occupancy 71,092 (4,849) (6.4) 75,941 13,460 21.5 62,481 59,539 76,449
Equipment 63,124 (218) (0.3) 63,342 (2,579) (3.9) 65,921 68,323 80,560
Professional services 34,569 (2,307) (6.3) 36,876 (5,572) (13.1) 42,448 33,085 32,862
Marketing 28,077 1,588 6.0 26,489 (1,001) (3.6) 27,490 27,911 31,057
Telecommunications 18,648 (1,139) (5.8) 19,787 (2,192) (10.0) 21,979 22,661 27,984
Printing and supplies 12,573 110 0.9 12,463 (546) (4.2) 13,009 15,198 18,367
Amortization of intangibles 829 12 1.5 817 1 0.1 816 2,019 41,225
Restructuring reserve (releases) charges — 1,151 N.M. (1,151) 5,515 (82.7) (6,666) 48,973 79,957
Loss on early extinguishment of debt ——— — (15,250) N.M. 15,250 — —
Other 76,236 (17,045) (18.3) 93,281 12,501 15.5 80,780 92,063 91,438
Total non-interest expense 969,820 (152,424) (13.6) 1,122,244 (107,915) (8.8) 1,230,159 1,374,147 1,562,427
Income before income taxes 543,574 (9,092) (1.6) 552,666 28,679 5.5 523,987 522,705 95,477
Provision (benefit) for income taxes(3) 131,483 (22,258) (14.5) 153,741 15,447 11.2 138,294 198,974 (39,319)
Income before cumulative effect of change
in accounting principle 412,091 13,166 3.3 398,925 13,232 3.4 385,693 323,731 134,796
Cumulative effect of change in accounting
principle, net of tax(1) ——— — 13,330 N.M. (13,330) — —
Net income $ 412,091 $ 13,166 3.3% $ 398,925 $ 26,562 7.1% $ 372,363 $ 323,731 $ 134,796
Average common shares — basic 230,142 229 0.1% 229,913 512 0.2% 229,401 242,279 251,078
Average common shares — diluted 233,475 (381) (0.2) 233,856 2,274 1.0 231,582 244,012 251,716
Per common share:
Income before cumulative effect of change
in accounting principle — basic $ 1.79 $ 0.05 2.9% $ 1.74 $ 0.06 3.6% $ 1.68 $ 1.34 $ 0.54
Net income — basic 1.79 0.05 2.9 1.74 0.12 7.4 1.62 1.34 0.54
Income before cumulative effect of change
in accounting principle — diluted 1.77 0.06 3.5 1.71 0.04 2.4 1.67 1.33 0.54
Net income — diluted 1.77 0.06 3.5 1.71 0.10 6.2 1.61 1.33 0.54
Cash dividends declared 0.845 0.10 12.7 0.750 0.08 11.9 0.670 0.640 0.720
Revenue — fully taxable equivalent (FTE)
Net interest income $ 962,411 $ 51,037 5.6% $ 911,374 $ 62,388 7.3% $ 848,986 $ 749,574 $ 715,288
FTE adjustment 13,393 1,740 14.9 11,653 1,969 20.3 9,684 5,205 6,352
Net interest income(2) 975,804 52,777 5.7 923,027 64,357 7.5 858,670 754,779 721,640
Non-interest income 632,282 (186,316) (22.8) 818,598 (250,555) (23.4) 1,069,153 1,341,704 1,199,942
Total revenue(2) $1,608,086 $ (133,539) (7.7)% $1,741,625 $(186,198) (9.7)% $1,927,823 $2,096,483 $1,921,582
N.M., not a meaningful value.
(1) Due to adoption of FASB Interpretation No. 46 for variable interest entities.
(2) Calculated assuming a 35% tax rate.
(3) 2001 reflects a $32.5 million reduction related to the issuance of $400 million REIT subsidiary preferred stock, of which $50 million was sold to the public.
35