Huntington National Bank 2005 Annual Report Download - page 44

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
Table 5 — Consolidated Average Balance Sheet and Net Interest Margin Analysis
Average Balances
Change from 2004 Change from 2003
Fully taxable equivalent basis(1)
(in millions of dollars) 2005 Amount % 2004 Amount % 2003 2002 2001
Assets
Interest bearing deposits in banks $ 53 $ (13) (19.7)% $ 66 $ 29 78.4% $ 37 $ 33 $ 7
Trading account securities 207 102 97.1 105 91 N.M. 14 7 25
Federal funds sold and securities purchased under
resale agreements 262 (57) (17.9) 319 232 N.M. 87 72 107
Loans held for sale 318 75 30.9 243 (321) (56.9) 564 322 360
Investment securities:
Taxable 3,683 (742) (16.8) 4,425 892 25.2 3,533 2,859 3,144
Tax-exempt 475 63 15.3 412 78 23.4 334 135 174
Total investment securities 4,158 (679) (14.0) 4,837 970 25.1 3,867 2,994 3,318
Loans and leases:(3)
Commercial:
Middle market commercial and industrial(4) 4,817 361 8.1 4,456 (177) (3.8) 4,633 4,810 5,075
Construction 1,678 258 18.2 1,420 201 16.5 1,219 1,151 1,040
Commercial(4) 1,908 (14) (0.7) 1,922 122 6.8 1,800 1,670 1,522
Middle market commercial real estate 3,586 244 7.3 3,342 323 10.7 3,019 2,821 2,562
Small business commercial and industrial and
commercial real estate 2,224 221 11.0 2,003 216 12.1 1,787 1,642 2,574
Total commercial 10,627 826 8.4 9,801 362 3.8 9,439 9,273 10,211
Consumer:
Automobile loans 2,043 (242) (10.6) 2,285 (975) (29.9) 3,260 2,744 N.M.
Automobile leases 2,422 230 10.5 2,192 769 54.0 1,423 452 N.M.
Automobile loans and leases 4,465 (12) (0.3) 4,477 (206) (4.4) 4,683 3,196 2,839
Home equity 4,636 449 10.7 4,187 746 21.7 3,441 3,029 3,334
Residential mortgage 4,081 869 27.1 3,212 1,186 58.5 2,026 1,438 1,048
Other loans 501 51 11.3 450 15 3.4 435 481 654
Total consumer 13,683 1,357 11.0 12,326 1,741 16.4 10,585 8,144 7,875
Total loans and leases 24,310 2,183 9.9 22,127 2,103 10.5 20,024 17,417 18,086
Allowance for loan and lease losses (268) 30 (10.1) (298) 32 (9.7) (330) (344) (286)
Net loans and leases 24,042 2,213 10.1 21,829 2,135 10.8 19,694 17,073 17,800
Total earning assets 29,308 1,611 5.8 27,697 3,104 12.6 24,593 20,845 21,903
Operating lease assets 372 (525) (58.5) 897 (800) (47.1) 1,697 2,602 2,970
Cash and due from banks 845 2 0.2 843 69 8.9 774 757 912
Intangible assets 218 2 0.9 216 (2) (0.9) 218 293 736
All other assets 2,164 86 4.1 2,078 58 2.9 2,020 1,910 1,891
Total Assets $32,639 $ 1,206 3.8% $31,433 $2,461 8.5% $28,972 $26,063 $28,126
Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — non-interest bearing $ 3,379 $ 149 4.6% $ 3,230 $ 150 4.9% $ 3,080 $ 2,902 $ 3,304
Demand deposits — interest bearing 7,658 451 6.3 7,207 1,014 16.4 6,193 5,161 5,005
Savings and other domestic time deposits 3,155 (276) (8.0) 3,431 (31) (0.9) 3,462 3,583 4,381
Certificates of deposit less than $100,000 2,952 535 22.1 2,417 (285) (10.5) 2,702 3,619 4,980
Total core deposits 17,144 859 5.3 16,285 848 5.5 15,437 15,265 17,670
Domestic time deposits of $100,000 or more 1,292 427 49.4 865 63 7.9 802 851 1,280
Brokered time deposits and negotiable CDs 3,119 1,282 69.8 1,837 418 29.5 1,419 731 128
Deposits in foreign offices 457 (51) (10.0) 508 8 1.6 500 337 283
Total deposits 22,012 2,517 12.9 19,495 1,337 7.4 18,158 17,184 19,361
Short-term borrowings 1,379 (31) (2.2) 1,410 (190) (11.9) 1,600 1,856 2,099
Federal Home Loan Bank advances 1,105 (166) (13.1) 1,271 13 1.0 1,258 279 19
Subordinated notes and other long-term debt 4,064 (1,315) (24.4) 5,379 820 18.0 4,559 3,335 3,411
Total interest bearing liabilities 25,181 856 3.5 24,325 1,830 8.1 22,495 19,752 21,586
All other liabilities 1,496 (8) (0.5) 1,504 303 25.2 1,201 1,170 905
Shareholders’ equity 2,583 209 8.8 2,374 178 8.1 2,196 2,239 2,331
Total Liabilities and Shareholders’ Equity $ 32,639 $ 1,206 3.8% $31,433 $2,461 8.5% $28,972 $26,063 $28,126
Net interest income
Net interest rate spread
Impact of non-interest bearing funds on margin
Net Interest Margin
N.M., not a meaningful value.
(1) Fully taxable equivalent (FTE) yields are calculated assuming a 35% tax rate.
(2) Loan and lease and deposit average rates include impact of applicable derivatives and non-deferrable fees.
(3) For purposes of this analysis non-accrual loans are reflected in the average balances of loans.
(4) 2005 reflects a net reclassification of $500 million from middle market commercial real estate to middle market commercial and industrial, on November 1, 2005.
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