Huntington National Bank 2008 Annual Report Download - page 39

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– $12.3 million, or 9%, decline in other noninterest expense primarily reflecting lower lease residual value expenses.
– $7.2 million, or 14%, decline in marketing expense.
Partially offset by:
– $6.9 million, or 6%, increase in outside data processing and other services expenses related to: (a) higher debit card
transaction volume, and (b) additional expenditures related to technology-related initiatives.
Provision for Income Taxes
(This section should be read in conjunction with Significant Items 1, 2, and 6.)
The provision for income taxes was a benefit of $182.2 million for 2008 compared with a benefit of $52.5 million in 2007 and a
$52.8 million provision in 2006. The tax benefit in 2008 was a result of a pretax loss combined with the favorable impact of the
decrease to the capital loss valuation reserve, tax exempt income, bank owned life insurance, asset securitization activities, and
general business credits from investments in low income housing and historic property partnerships. The tax benefit in 2007 was a
result of lower pretax income combined with the favorable impact of tax exempt income, bank owned life insurance, asset
securitization activities, and general business credits from investments in low income housing and historic property partnerships.
The 2006 provision for income taxes included a release of previously established federal income tax reserves due to the resolution
of a federal income tax audit covering tax years 2002 and 2003, as well as the recognition of a federal tax loss carryback.
During 2008, the Internal Revenue Service (IRS) completed the audit of our consolidated federal income tax returns for tax years
2004 and 2005. In addition, we are subject to ongoing tax examinations in various state and local jurisdictions. Both the IRS and
state tax officials have proposed adjustments to the Company’s previously filed tax returns. Management believes that the tax
positions taken by the Company related to such proposed adjustments were correct and supported by applicable statutes,
regulations, and judicial authority, and intends to vigorously defend them. It is possible that the ultimate resolution of the
proposed adjustments, if unfavorable, may be material to the results of operations in the period it occurs. However, although no
assurances can be given, we believe that the resolution of these examinations will not, individually or in the aggregate, have a
material adverse impact on our consolidated financial position.
37
Management’s Discussion and Analysis Huntington Bancshares Incorporated