Huntington National Bank 2009 Annual Report Download - page 125

increased focus and improved cross-sellin
g
efforts. To
g
row mana
g
ed assets, the HIC sales team has bee
n
utilized as the primar
y
distribution source for trust and investment mana
g
ement.
Table 59 — Ke
y
Performance Indicators for Private Financial Grou
p
(PFG
)
2
009 2008
A
mount Percent 2007
Chan
ge
(
In thousands unless otherwise noted
)
N
et interest incom
e
........................
$77
,
390 $74
,
651 $ 2
,
739 4% $ 57
,
98
5
Prov
i
s
i
on
f
or cre
di
t
l
osse
s
...................
5
7
,4
5
0
13
,
279 44
,
171 N.M. 9
61
N
on
i
nterest
i
ncome
........................
244,2
55 2
5
8,300
(
14,04
5) (5)
197,43
6
Non
i
nterest expense exc
l
u
di
n
gg
oo
d
w
ill
im
p
airmen
t
............................
243
,
738 248,540
(
4,802
)(
2
)
202,36
4
Goodwill im
p
airmen
t
.......................
28
,
895 —28
,
895 — —
(
Benefit
)
Provision for income taxes
...........
(2
,
953) 24,896
(
27,849
)
N.M. 18,23
4
Net
(
loss
)
incom
e
.........................
$(5
,
485
)
$ 46,236 $
(
51,721
)
N.M.% $ 33,86
2
T
otal avera
g
e assets (in millions
)
..............
$3
,
34
0
$2
,
977 $ 363 12% $ 2
,
37
2
T
ota
l
avera
g
e
l
oans/
l
eases (
i
nm
illi
ons)
.........
2,442
2
,
2
6
1 181 8 1
,
90
9
Net
i
nterest mar
gi
n
........................
3
.0
3%
3.19%
(
0.16
)
%
(5)
2.9
5%
Net c
h
ar
g
e-o
ff
s (NCOs)
.....................
$
37
,
84
4
$
8
,
199
$
29
,
645 N.M.
$
1
,
49
1
NCOs as a% o
f
avera
g
e
l
oans an
dl
ease
s
........
1.55
%
0.3
6
% 1.19% N.M. 0.08
%
Return on avera
g
e equit
y
....................
(
2.3
)
2
0.6
(
22.9
)
N.M. 21.
0
Noninterest income shared
w
ith other
business se
g
ments(1)
.......................
$35
,
47
0
$ 46,773 $
(
11,303
)(
24
)
$ 36,12
1
Tota
l
assets un
d
er mana
g
ement (
i
n
billi
ons)- eop . .
13
.
0
13.3
(
0.3
)(
2
)
1
6
.
3
Tota
l
trust assets (
i
n
billi
ons)- eo
p
.............
49
.
4
4
4.0
5
.4 12% 60.
1
eo
p
— End of Perio
d
N.M., not a mean
i
n
gf
u
l
va
l
u
e
(1) Amount
i
s not
i
nc
l
u
d
e
di
n non
i
nterest
i
ncome re
p
orte
d
a
b
ove
.
200
9 vs. 2
008
PFG re
p
orted a net loss of
$
5.5 million in 2009, com
p
ared with net income of
$
46.2 million in 2008. Th
e
decline reflected the ne
g
ative impact of several items outside of normal business activities. These items
included: (a)
$
28.9 million
g
oodwill impairment char
g
e recorded durin
g
200
9
(see “Goo
d
wi
ll
”
d
iscussio
n
l
ocate
d
wit
h
in t
h
e “Critica
l
Accounting Po
l
icies an
d
Use o
f
Signi
f
icant Estimates”
f
or a
dd
itiona
l
in
f
ormation;
(b)
$
20.1 million reduction in net interest income resultin
g
from the methodolo
gy
chan
g
e discussed earlier
,
and (c) $7.4 million increase in noninterest expense as a result of the previousl
y
discussed overhead allocatio
n
met
h
o
d
o
l
o
gy
c
h
an
g
e. A
f
ter a
dj
ust
i
n
gf
or t
h
e
g
oo
d
w
ill i
mpa
i
rment c
h
ar
g
e, an
d
t
h
ere
l
ate
d
tax
i
mpact, PFG’
s
net income decreased
$
15.1 million
.
Net interest income increased
$
2.7 million, or 4%, primaril
y
as a result of the 62%
g
rowth in avera
ge
d
epos
i
ts. A su
b
stant
i
a
l
port
i
on o
f
t
h
e
d
epos
i
t
g
rowt
h
resu
l
te
df
rom t
h
e
i
ntro
d
uct
i
on o
f
t
h
ree
d
epos
i
t pro
d
uct
s
durin
g
2009 desi
g
ned as alternative options for lower
y
ieldin
g
mone
y
market mutual funds. The new deposit
pro
d
ucts are: (a) t
h
e Hunt
i
ngton Conservat
i
ve Depos
i
t Account (HCDA), (
b
)t
h
e Hunt
i
ngton Protecte
d
Depos
it
Account (HPDA), an
d
(c) t
h
e Ban
k
De
p
os
i
t Swee
p
Pro
d
uct (BDSP). T
h
ese t
h
ree accounts
h
a
db
a
l
ances
in
excess of
$
1.2 billion at December 31
,
2009
.
Provision for credit losses increased
$
44.2 million reflectin
g
: (a) the continued economic weaknesses in
our markets, particularl
y
relatin
g
to the commercial portfolio, (b) an increase of commercial loan loss reserves
117