Huntington National Bank 2006 Annual Report Download - page 58

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
additional services are cross-sold to customers after first establishing a DDA account. As a result, growth in average deposits was
also broad-based:
Regional Banking Average Deposits
Change
from
(in millions of dollars) 2006 2005 2005 2004
Region
Central Ohio $ 4,744 6% $ 4,496 $ 4,186
Northern Ohio 3,594 3 3,495 3,266
Southern Ohio/Kentucky 2,182 19 1,829 1,551
Eastern Ohio(1) 1,554 N.M. 570 523
West Michigan 2,827 5 2,687 2,610
East Michigan 2,299 1 2,271 2,089
West Virginia 1,499 7 1,399 1,341
Indiana 829 14 728 656
Mortgage and equipment leasing groups 182 (8) 198 214
Total deposits $ 19,710 12%$17,673 $16,436
N.M., not a meaningful value.
(1) Eastern Ohio results reflect the impact of the Unizan acquisition.
The 12% increase in average deposits reflected 43% growth in domestic time deposits. Interest bearing and non-interest bearing
deposits grew 1% and 6%, respectively, from the year-ago period, while savings deposits declined 10%. The number of on-line
consumer banking customers at December 31, 2006 grew 18% to 289,868 customers.
2005 versus 2004 Performance
Regional Banking contributed $292.4 million, or 71%, of our net operating earnings in 2005, up $42.5 million, or 17% from
2004. This increase primarily reflected a $104.3 million, or 11% increase in fully taxable equivalent revenue partially offset by a
$43.5 million increase in provision for credit losses. Net interest income increased $101.5 million, primarily driven by a 13%
increase in average loans, and a 5 basis point rise in net interest margin. The ROA and ROE for Regional Banking were 1.58%
and 28.9%, respectively, up from 1.52% and 24.2% in 2004.
56