Huntington National Bank 2009 Annual Report Download - page 126

resultin
g
from credit actions taken durin
g
2009 (see “Commercial Loan Port
f
olio Review and Actions” section
located within the “Commercial Credit” section
f
or additional in
f
ormation)
,
and (c) a 119 basis
p
oint increas
e
in total NCOs. The increase in NCOs included a si
g
nificant increase in residential mort
g
a
g
e char
g
e-offs, as
a
result of, amon
g
other actions, a more conservative position re
g
ardin
g
the timin
g
of loss reco
g
nition.
Noninterest income decreased $14.0 million, or 5%, primaril
y
reflectin
g
a $21.4 million decline in trust
services revenue. The trust revenue decline reflected: (a) a market-driven
$
1.8 billion decline in avera
g
e tota
l
assets un
d
er mana
g
ement, (
b
)re
d
uce
d
propr
i
etar
y
mutua
lf
un
df
ees
d
ue to t
h
em
ig
rat
i
on o
f
propr
i
etar
y
mone
y
-
market mutual fund balances to the new deposit products noted above, and (c) the impact of reduced mone
y
market
y
ields. Also contributin
g
to the reduction in noninterest income was a $3.9 million decline i
n
d
er
i
vat
i
ves
i
ncome pr
i
mar
ily
as a resu
l
to
f
re
d
uce
d
commerc
i
a
ll
oan or
igi
nat
i
ons. T
h
ese
d
ecreases wer
e
partiall
y
offset b
y
a
$
10.4 million improvement in equit
y
investment portfolio valuation ad
j
ustments from
a
loss of $8.7 million in 2008 to a $1.7 million
g
ain in 2009.
Noninterest expense increased $24.1 million, or 10%. Performance for 2009 was unfavorabl
y
impacted b
y
the $28.9 million
g
oodwill impairment char
g
e and a $7.4 million increase in corporate and other overhea
d
expenses as a resu
l
to
f
t
h
e prev
i
ous
ly di
scusse
d
c
h
an
g
es
i
n our process
f
or a
ll
ocat
i
n
g
corporate over
h
ea
d
.A
f
ter
a
dj
ust
i
n
gf
or t
h
e over
h
ea
d
a
ll
ocat
i
on c
h
an
g
ean
d
t
h
e
g
oo
d
w
ill i
mpa
i
rment, non
i
nterest expense
d
ec
li
ne
d
$12.2 million. This net decline reflected reduced personnel expense of $16.8 million lar
g
el
y
as a result of th
e
implementation of several expense reduction initiatives, partiall
y
offset b
y
an increase of
$
3.8 million in
d
e
p
os
i
tan
d
ot
h
er
i
nsurance ex
p
ense, as we
ll
as
i
ncrease
d
OREO
l
osses
.
200
8 vs. 2
007
PFG re
p
orted net income of $46.2 million in 2008, com
p
ared with $33.9 million in 2007. This increas
e
primaril
y
reflected the impact of the Sk
y
Financial acquisition on Jul
y
1, 2007, and a
$
14.1 millio
n
i
mprovement
i
nt
h
e mar
k
et va
l
ue a
dj
ustments to t
h
e equ
i
t
yf
un
d
s port
f
o
li
o. T
h
ese
b
ene
fi
ts were part
i
a
lly
o
ff
se
t
b
y
: (a) $12.3 million increase in provision for credit losses resultin
g
from a $6.7 million increase in NCO
s
primaril
y
reflectin
g
increased char
g
e-offs in the home equit
y
portfolio, and (b) a decrease in total period-en
d
assets under mana
g
ement to
$
13.3 billion from
$
16.3 billion reflectin
g
the impact of lower market value
s
assoc
i
ate
d
w
i
t
h
t
h
e
d
ec
li
ne
i
nt
h
e
g
enera
l
econom
i
can
d
mar
k
et con
di
t
i
ons.
RE
S
ULT
S
FOR THE FOURTH
Q
UARTE
R
Earn
i
n
g
sD
i
scuss
i
on
2009 fourth
q
uarter results were a net loss of $369.7 million, or $0.56
p
er common share, com
p
ared wit
h
a net loss of
$
417.3 million, or
$
1.20 per common share, in the
y
ear-a
g
o quarter. Si
g
nificant items impactin
g
2009
f
ourt
hq
uarter
p
er
f
ormance
i
nc
l
u
d
e
d
(
see ta
bl
e
b
e
l
ow
)
:
•
$
73.6 million pretax
g
ain (
$
0.07 per common share) on the tender of
$
370.8 million of subordinate
d
bank notes reflected in other noninterest ex
p
ense
.
•
$
11.3 million (
$
0.02 per common share) benefit to provision for income taxes, representin
g
a reductio
n
to the previousl
y
established capital loss carr
y
-forward valuation allowance
.
11
8