Huntington National Bank 2006 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 of the 2006 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 130

  • 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED
from the acquisition, and are not necessarily indicative of what actually would have occurred if the acquisition had been
completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results.
Effective at the end of the day on December 31, 2006, Huntington acquired Unified Fund Services, Inc. and Unified Financial
Securities, Inc. (Unified), an Indianapolis, Indiana based provider of fund accounting, administration, distribution and transfer
agent services to mutual funds. Unified will operate as a wholly owned subsidiary of Huntington. The total purchase price for
Unified has been allocated to the tangible and intangible assets and liabilities based on their respective fair values as of the
acquisition date. Such allocations have not been finalized, and therefore, the allocation of the purchase price included in the
Consolidated Balance Sheet is preliminary. The purchase price of this acquisition was immaterial to Huntington’s financial
statements.
9. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes to the carrying amount of goodwill by line of business for the years ended December 31, 2006 and 2005, were as
follows:
Regional Dealer Treasury/ Huntington
(in thousands of dollars) Banking Sales PFCMG Other Consolidated
Balance, December 31, 2005 $ 199,971 $ — $ 12,559 $ — $ 212,530
Goodwill acquired during the period 335,884 — 22,462 — 358,346
Balance, December 31, 2006 $535,855 $ — $35,021 $ — $570,876
As further described in Note 8, of the goodwill acquired during 2006, $353.9 million was a result of the completion of the
merger with Unizan and $4.4 million was a result of the acquisition of Unified. There were no impairment losses for the three
years ended December 31, 2006, 2005, and 2004.
At December 31, 2006 and 2005, Huntington’s other intangible assets consisted of the following:
Gross
Carrying Accumulated Net
(in thousands of dollars) Amount Amortization Carrying Value
December 31, 2006
Leasehold purchased $23,655 $ (19,631) $ 4,024
Core deposit intangible 45,000 (7,525) 37,475
Borrower relationship 6,570 (456) 6,114
Trust customers 11,430 (796) 10,634
Other 1,622 (382) 1,240
Total other intangible assets $88,277 $ (28,790) $ 59,487
December 31, 2005
Leasehold purchased $23,655 $ (18,816) $ 4,839
Trust customers 130 (13) 117
Total other intangible assets $23,785 $ (18,829) $ 4,956
Amortization expense of other intangible assets for the three years ended December 31, 2006, 2005 and 2004 was $10.0 million,
$0.8 million, and $0.8 million, respectively.
The estimated amortization expense of other intangible assets for the next five annual years are as follows:
Amortization
(in thousands of dollars) Expense
Fiscal year:
2007 $10,040
2008 8,856
2009 7,928
2010 7,106
2011 6,312
103