Huntington National Bank 2007 Annual Report Download - page 30

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Table 7 — Consolidated Average Balance Sheet and Net Interest Margin Analysis
Fully-taxable equivalent basis
(1)
(in millions of dollars) 2007 Amount % 2006 Amount % 2005 2004 2003
Change from
2006
Change from
2005
Average Balances
Assets
Interest bearing deposits in banks $ 260 $ 207 N.M.% $53 $— —%$53$66$37
Trading account securities 642 550 N.M. 92 (115) (55.6) 207 105 14
Federal funds sold and securities purchased under resale agreement 591 270 84.1 321 59 22.5 262 319 87
Loans held for sale 362 87 31.6 275 (43) (13.5) 318 243 564
Investment securities:
Taxable 3,653 (544) (13.0) 4,197 514 14.0 3,683 4,425 3,533
Tax-exempt 646 76 13.3 570 95 20.0 475 412 334
Total investment securities 4,299 (468) (9.8) 4,767 609 14.6 4,158 4,837 3,867
Loans and leases:
(3)
Commercial:
Middle market commercial and industrial
(4)
8,252 2,694 48.5 5,558 741 15.4 4,817 4,456 4,633
Construction
(4)
1,511 261 20.9 1,250 (428) (25.5) 1,678 1,420 1,219
Commercial
(4)
4,267 1,516 55.1 2,751 843 44.2 1,908 1,922 1,800
Middle market commercial real estate 5,778 1,777 44.4 4,001 415 11.6 3,586 3,342 3,019
Small business commercial and industrial and commercial real estate
(4)
3,413 1,107 48.0 2,306 82 3.7 2,224 2,003 1,787
Total commercial 17,443 5,578 47.0 11,865 1,238 11.6 10,627 9,801 9,439
Consumer:
Automobile loans 2,633 576 28.0 2,057 14 0.7 2,043 2,285 3,260
Automobile leases 1,485 (546) (26.9) 2,031 (391) (16.1) 2,422 2,192 1,423
Automobile loans and leases 4,118 30 0.7 4,088 (377) (8.4) 4,465 4,477 4,683
Home equity 6,173 1,203 24.2 4,970 218 4.6 4,752 4,244 3,400
Residential mortgage 4,939 358 7.8 4,581 500 12.3 4,081 3,212 2,076
Other loans 529 90 20.5 439 54 14.0 385 393 426
Total consumer 15,759 1,681 11.9 14,078 395 2.9 13,683 12,326 10,585
Total loans and leases 33,202 7,259 28.0 25,943 1,633 6.7 24,310 22,127 20,024
Allowance for loan and lease losses (382) (95) 33.1 (287) (19) 7.1 (268) (298) (330)
Net loans and leases 32,820 7,164 27.9 25,656 1,614 6.7 24,042 21,829 19,694
Total earning assets 39,356 7,905 25.1 31,451 2,143 7.3 29,308 27,697 24,593
Automobile operating lease assets — (93) N.M. 93 (258) (73.5) 351 891 1,697
Cash and due from banks 930 105 12.7 825 (20) (2.4) 845 843 774
Intangible assets 2,019 1,452 N.M. 567 349 N.M. 218 216 218
All other assets 2,789 326 13.2 2,463 278 12.7 2,185 2,084 2,020
Total Assets $44,712 $9,600 27.3% $35,112 $2,473 7.6% $32,639 $31,433 $28,972
Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — non-interest bearing $ 4,438 $ 908 25.7% $ 3,530 $ 151 4.5% $ 3,379 $ 3,230 $ 3,080
Demand deposits — interest bearing 3,129 991 46.4 2,138 218 11.4 1,920 1,953 1,822
Money market deposits 6,173 569 10.2 5,604 (134) (2.3) 5,738 5,254 4,371
Savings and other domestic time deposits 3,895 903 30.2 2,992 (163) (5.2) 3,155 3,431 3,462
Core certificates of deposit 8,057 3,007 59.5 5,050 1,716 51.5 3,334 2,689 3,115
Total core deposits 25,692 6,378 33.0 19,314 1,788 10.2 17,526 16,557 15,850
Other domestic time deposits of $100,000 or more 1,494 381 34.2 1,113 203 22.3 910 593 389
Brokered time deposits and negotiable CDs 3,239 (3) (0.1) 3,242 123 3.9 3,119 1,837 1,419
Deposits in foreign offices 641 126 24.5 515 58 12.7 457 508 500
Total deposits 31,066 6,882 28.5 24,184 2,172 9.9 22,012 19,495 18,158
Short-term borrowings 2,245 445 24.7 1,800 421 30.5 1,379 1,410 1,600
Federal Home Loan Bank advances 2,027 658 48.1 1,369 264 23.9 1,105 1,271 1,258
Subordinated notes and other long-term debt 3,688 114 3.2 3,574 (490) (12.1) 4,064 5,379 4,559
Total interest bearing liabilities 34,588 7,191 26.2 27,397 2,216 8.8 25,181 24,325 22,495
All other liabilities 1,054 (185) (14.9) 1,239 (257) (17.2) 1,496 1,504 1,201
Shareholders’ equity 4,632 1,686 57.2 2,946 363 14.1 2,583 2,374 2,196
Total Liabilities and Shareholders’ Equity $44,712 $9,600 27.3% $35,112 $2,473 7.6% $32,639 $31,433 $28,972
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) 2006 reflects a net reclassification of average balances and related interest income from small business commercial and industrial and commercial real estate to middle market commercial and industrial
and middle market commercial real estate.
28
MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED