Huntington National Bank 2008 Annual Report Download - page 80

Table51—SelectedQuarterlyIncomeStatementData
(1)
(in thousands, except per share amounts) Fourth Third Second First Fourth Third Second First
2008 2007
Interest income $ 662,508 $685,728 $696,675 $753,411 $ 814,398 $851,155 $542,461 $534,949
Interest expense 286,143 297,092 306,809 376,587 431,465 441,522 289,070 279,394
Net interest income 376,365 388,636 389,866 376,824 382,933 409,633 253,391 255,555
Provision for credit losses 722,608 125,392 120,813 88,650 512,082 42,007 60,133 29,406
Net interest income (loss) after provision for
credit losses (346,243) 263,244 269,053 288,174 (129,149) 367,626 193,258 226,149
Service charges on deposit accounts 75,247 80,508 79,630 72,668 81,276 78,107 50,017 44,793
Brokerage and insurance income 31,233 34,309 35,694 36,560 30,288 28,806 17,199 16,082
Trust services 27,811 30,952 33,089 34,128 35,198 33,562 26,764 25,894
Electronic banking 22,838 23,446 23,242 20,741 21,891 21,045 14,923 13,208
Bank owned life insurance income 13,577 13,318 14,131 13,750 13,253 14,847 10,904 10,851
Automobile operating lease income 13,170 11,492 9,357 5,832 2,658 653 1,611 2,888
Mortgage banking (loss) income (6,747) 10,302 12,502 (7,063) 3,702 9,629 7,122 9,351
Securities (losses) gains (127,082) (73,790) 2,073 1,429 (11,551) (13,152) (5,139) 104
Other income (loss) 17,052 37,320 26,712 57,707 (6,158) 31,177 32,792 22,006
Total noninterest income 67,099 167,857 236,430 235,752 170,557 204,674 156,193 145,177
Personnel costs 196,785 184,827 199,991 201,943 214,850 202,148 135,191 134,639
Outside data processing and other services 31,230 32,386 30,186 34,361 39,130 40,600 25,701 21,814
Net occupancy 22,999 25,215 26,971 33,243 26,714 33,334 19,417 19,908
Equipment 22,329 22,102 25,740 23,794 22,816 23,290 17,157 18,219
Amortization of intangibles 19,187 19,463 19,327 18,917 20,163 19,949 2,519 2,520
Professional services 17,420 13,405 13,752 9,090 14,464 11,273 8,101 6,482
Marketing 9,357 7,049 7,339 8,919 16,175 13,186 8,986 7,696
Automobile operating lease expense 10,483 9,093 7,200 4,506 1,918 337 875 2,031
Telecommunications 5,892 6,007 6,864 6,245 8,513 7,286 4,577 4,126
Printing and supplies 4,175 4,316 4,757 5,622 6,594 4,743 3,672 3,242
Other expense 50,237 15,133 35,676 23,841 68,215 29,417 18,459 21,395
Total noninterest expense 390,094 338,996 377,803 370,481 439,552 385,563 244,655 242,072
(Loss) Income before income taxes (669,238) 92,105 127,680 153,445 (398,144) 186,737 104,796 129,254
(Benefit) Provision for income taxes (251,949) 17,042 26,328 26,377 (158,864) 48,535 24,275 33,528
Net (loss) income $(417,289) $ 75,063 $101,352 $127,068 $(239,280) $138,202 $ 80,521 $ 95,726
Dividends on preferred shares 23,158 12,091 11,151 — ————
Net income (loss) applicable to common shares $(440,447) $ 62,972 $ 90,201 $127,068 $(239,280) $138,202 $ 80,521 $ 95,726
Average common shares — basic 366,054 366,124 366,206 366,235 366,119 365,895 236,032 235,586
Average common shares — diluted
(2)
366,054 367,361 367,234 367,208 366,119 368,280 239,008 238,754
Per common share
Net (loss) income — basic $ (1.20) $ 0.17 $ 0.25 $ 0.35 $ (0.65) $ 0.38 $ 0.34 $ 0.40
Net (loss) income — diluted (1.20) 0.17 0.25 0.35 (0.65) 0.38 0.34 0.40
Cash dividends declared 0.1325 0.1325 0.1325 0.2650 0.2650 0.2650 0.2650 0.2650
Return on average total assets (3.04)% 0.55% 0.73% 0.93% (1.74)% 1.02% 0.92% 1.11%
Return on average total shareholders’ equity (23.7) 4.7 6.4 8.7 (15.3) 8.8 10.6 12.9
Return on average tangible shareholders’ equity
(3)
(43.2) 11.6 15.0 22.0 (30.7) 19.7 13.5 16.4
Net interest margin
(4)
3.18 3.29 3.29 3.23 3.26 3.52 3.26 3.36
Efficiency ratio
(5)
64.6 50.3 56.9 57.0 73.5 57.7 57.8 59.2
Effective tax rate (benefit) (37.6) 18.5 20.6 17.2 (39.9) 26.0 23.2 25.9
Revenue — fully taxable equivalent (FTE)
Net interest income $ 376,365 $388,636 $389,866 $376,824 $ 382,933 $409,633 $253,391 $255,555
FTE adjustment 3,641 5,451 5,624 5,502 5,363 5,712 4,127 4,047
Net interest income
(4)
380,006 394,087 395,490 382,326 388,296 415,345 257,518 259,602
Noninterest income 67,099 167,857 236,430 235,752 170,557 204,674 156,193 145,177
Total revenue
(4)
$ 447,105 $561,944 $631,920 $618,078 $ 558,853 $620,019 $413,711 $404,779
(1) Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” section for additional discussion
regarding these key factors.
(2) For the three-month periods ended December 31, 2008, September 30, 2008, and June 30, 2008, the impact of the convertible preferred stock issued in
April of 2008 totaling 47.6 million shares, 47.6 million shares, and 39.8 million shares, respectively, were excluded from the diluted share calculations.
They were excluded because the results would have been higher than basic earnings per common share (anti-dilutive) for the periods.
(3) Net income excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible
shareholders’ equity equals average total stockholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles
and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(4) On a fully taxable equivalent (FTE) basis assuming a 35% tax rate.
(5) Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities
(losses) gains.
78
Management’s Discussion and Analysis Huntington Bancshares Incorporated