Huntington National Bank 2007 Annual Report Download - page 21

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Table 3 — Selected Annual Income Statements
(1)
(in thousands, except per share amounts) 2007 Amount % 2006 Amount % 2005 2004 2003
Change from 2006 Change from 2005
Year Ended December 31,
Interest income $2,742,963 $ 672,444 32.5% $2,070,519 $428,754 26.1%$1,641,765 $1,347,315 $1,305,756
Interest expense 1,441,451 390,109 37.1 1,051,342 371,988 54.8 679,354 435,941 456,770
Net interest income 1,301,512 282,335 27.7 1,019,177 56,766 5.9 962,411 911,374 848,986
Provision for credit losses 643,628 578,437 N.M. 65,191 (16,108) (19.8) 81,299 55,062 163,993
Net interest income after provision for
credit losses 657,884 (296,102) (31.0) 953,986 72,874 8.3 881,112 856,312 684,993
Service charges on deposit accounts 254,193 68,480 36.9 185,713 17,879 10.7 167,834 171,115 167,840
Trust services 121,418 31,463 35.0 89,955 12,550 16.2 77,405 67,410 61,649
Brokerage and insurance income 92,375 33,540 57.0 58,835 5,216 9.7 53,619 54,799 57,844
Other service charges and fees 71,067 19,713 38.4 51,354 7,006 15.8 44,348 41,574 41,446
Bank owned life insurance income 49,855 6,080 13.9 43,775 3,039 7.5 40,736 42,297 43,028
Mortgage banking 29,804 (11,687) (28.2) 41,491 13,158 46.4 28,333 26,786 58,180
Securities (losses) gains (29,738) 43,453 (59.4) (73,191) (65,136) N.M. (8,055) 15,763 5,258
Automobile operating lease income 7,810 (35,305) (81.9) 43,115 (89,900) (67.6) 133,015 285,431 489,698
Other 79,819 (40,203) (33.5) 120,022 24,975 26.3 95,047 113,423 144,210
Total non-interest income 676,603 115,534 20.6 561,069 (71,213) (11.3) 632,282 818,598 1,069,153
Personnel costs 686,828 145,600 26.9 541,228 59,570 12.4 481,658 485,806 447,263
Outside data processing and other services 127,245 48,466 61.5 78,779 4,141 5.5 74,638 72,115 66,118
Net occupancy 99,373 28,092 39.4 71,281 189 0.3 71,092 75,941 62,481
Equipment 81,482 11,570 16.5 69,912 6,788 10.8 63,124 63,342 65,921
Amortization of intangibles 45,151 35,189 N.M. 9,962 9,133 N.M. 829 817 816
Marketing 46,043 14,315 45.1 31,728 5,449 20.7 26,279 24,600 25,648
Professional services 40,320 13,267 49.0 27,053 (7,516) (21.7) 34,569 36,876 42,448
Telecommunications 24,502 5,250 27.3 19,252 604 3.2 18,648 19,787 21,979
Printing and supplies 18,251 4,387 31.6 13,864 1,291 10.3 12,573 12,463 13,009
Automobile operating lease expense 5,161 (26,125) (83.5) 31,286 (72,564) (69.9) 103,850 235,080 393,270
Other 137,488 30,839 28.9 106,649 24,089 29.2 82,560 95,417 91,206
Total non-interest expense 1,311,844 310,850 31.1 1,000,994 31,174 3.2 969,820 1,122,244 1,230,159
Income before income taxes 22,643 (491,418) (95.6) 514,061 (29,513) (5.4) 543,574 552,666 523,987
(Benefit) provision for income taxes (52,526) (105,366) N.M. 52,840 (78,643) (59.8) 131,483 153,741 138,294
Income before cumulative effect of change
in accounting principle 75,169 (386,052) (83.7) 461,221 49,130 11.9 412,091 398,925 385,693
Cumulative effect of change in accounting
principle, net of tax
(2)
——— — — — — — (13,330)
Net income $ 75,169 $(386,052) (83.7)% $ 461,221 $ 49,130 11.9%$ 412,091 $ 398,925 $ 372,363
Average common shares — basic 300,908 64,209 27.1% 236,699 6,557 2.8%230,142 229,913 229,401
Average common shares — diluted 303,455 63,535 26.5 239,920 6,445 2.8 233,475 233,856 231,582
Per common share:
Income before cumulative effect of change
in accounting principle — basic $ 0.25 $ (1.70) (87.2)% $ 1.95 $ 0.16 8.9%$ 1.79 $ 1.74 $ 1.68
Net income — basic 0.25 (1.70) (87.2) 1.95 0.16 8.9 1.79 1.74 1.62
Income before cumulative effect of change
in accounting principle — diluted 0.25 (1.67) (87.0) 1.92 0.15 8.5 1.77 1.71 1.67
Net income — diluted 0.25 (1.67) (87.0) 1.92 0.15 8.5 1.77 1.71 1.61
Cash dividends declared 1.060 0.06 6.0 1.000 0.16 18.3 0.845 0.750 0.670
Revenue — fully taxable equivalent (FTE)
Net interest income $1,301,512 $ 282,335 27.7% $1,019,177 $ 56,766 5.9%$ 962,411 $ 911,374 $ 848,986
FTE adjustment 19,249 3,224 20.1 16,025 2,632 19.7 13,393 11,653 9,684
Net interest income
(3)
1,320,761 285,559 27.6 1,035,202 59,398 6.1 975,804 923,027 858,670
Non-interest income 676,603 115,534 20.6 561,069 (71,213) (11.3) 632,282 818,598 1,069,153
Total revenue
(3)
$1,997,364 $ 401,093 25.1% $1,596,271 $(11,815) (0.7)%$1,608,086 $1,741,625 $1,927,823
N.M., not a meaningful value.
(1) Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Factors Influencing Financial Performance Comparisons” for additional discussion regarding
these key factors.
(2) Due to adoption of FASB Interpretation No. 46 for variable interest entities.
(3) On a fully taxable equivalent (FTE) basis assuming a 35% tax rate.
19
MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED