Huntington National Bank 2008 Annual Report Download - page 5

that they are living up to our value proposition of
delivering a “simply the best” customer experience
each and every time.
Being local also means we know our customers well
and are better positioned to assist them in managing
their financial affairs, in good times, as well as in times
like the present. In challenging times, being local has
special customer appeal. We are here. You can come in
and talk with us. We are better able to understand your
circumstances. Access matters. Relationships endure.
Through our active community service and
volunteerism, Huntington partners with customers,
and together we become an important part of the
fabric of the community. This positively differentiates
Huntington in the eyes of the customers and our
communities and provides a significant strategic
advantage. And we know we are joining many of our
customers and their management teams in sharing
our beliefs of giving back to the community. Last year,
our associates contributed many thousands of hours
in community service activities.
Because we believe that relationships matter, which
motivates our associates to provide differentiating
customer service, because our investments in technology
give us a strong core platform, because we, today,
have the products and services most customers
want, Huntington is well positioned to grow and
take market share.
STRENGTHS
As a company that has served its customers and
communities for 143 years, Huntington has many
structural positives that will help us grow and deliver
shareholder value. Some are in place and delivering.
Some are small and need to get larger. Others are
emerging and have growth potential.
Huntington has good overall banking office
distribution, an infrastructure built for growth with
scalability. We have lots of interesting options. We have
multiple branch clusters in interesting markets in six
states. Each forms a nucleus from which we can grow.
Our product and services menu for both retail
customers and commercial businesses is robust.
We already have what is essential to compete.
Our technology is very good. Over the years, we
invested significantly in our information technology
platforms. Our internet banking channels are
recognized as among the best in the industry.
We have both the capability and capacity to expand
and bolt on new businesses.
Our private banking and investment management
areas are terrific businesses. They deliver high quality
products and services and are very scalable. Our auto
finance and dealer services business is one of the best
run in the country.
We also have a strong balance sheet. Throughout
the year, we continued to make loans and grow core
deposits. The TARP capital infusion late in the year
added to our capacity. Over the last 45 days of 2008,
we originated or extended $1.2 billion of credit to
corporations and businesses and $500 million in loans
to consumers. Each day we deepen our relationships
with existing customers and attract new ones.
CHALLENGING TIMES EQUAL GREAT OPPORTUNITIES
We clearly recognize that 2008 was challenging and
expect 2009 will be even more so. The main challenge
will come from higher credit costs in the form of
higher net charge-offs, as well as in loan collection,
modification, and resolution costs. While this will
have a negative impact on earnings performance,
we are committed to continue to grow revenue and
be even more focused and disciplined on expenses.
Our primary efforts right now are to grow the
company organically. We have the products, we have
the infrastructure, and we have dedicated and focused
associates that can make this happen.
In addition, I have always found that great
opportunities arise in such challenging times. Some
banks in our markets have been recently acquired.
This always results in customer disruptions, which
afford Huntington the opportunity to take market share.
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LETTER TO SHAREHOLDERS