Huntington National Bank 2009 Annual Report Download - page 41

occur due to chan
g
es in tax rates, implementation of new business strate
g
ies, resolution of issues with taxin
g
aut
h
or
i
t
i
es re
g
ar
di
n
g
prev
i
ous
ly
ta
k
en tax pos
i
t
i
ons an
d
new
ly
enacte
d
statutor
y
,
j
u
di
c
i
a
l
,an
d
re
g
u
l
ator
y
g
uidance. Such chan
g
es could affect the amount of our accrued taxes and could be material to our financia
l
p
osition and/or results of o
p
erations
.
(See Note 19 of the Notes to the Consolidated Financial Statements.
)
DEFERRED TAX A
SS
ET
S
At December 31
,
2009
,
we had a net federal deferred tax asset of $480.5 million
,
and a net state deferre
d
tax asset of
$
0.8 million. Based on our abilit
y
to offset the net deferred tax asset a
g
ainst taxable income i
n
pr
i
or carr
yb
ac
ky
ears an
d
t
h
e
l
eve
l
o
f
our
f
orecast o
ff
uture taxa
bl
e
i
ncome, t
h
ere was no
i
mpa
i
rment o
f
t
he
deferred tax asset at December 31, 2009. All available evidence, both positive and ne
g
ative, was considered t
o
determine whether, based on the wei
g
ht of that evidence, impairment should be reco
g
nized. However, ou
r
f
orecast process
i
nc
l
u
d
es
j
u
dg
menta
l
an
d
quant
i
tat
i
ve e
l
ements t
h
at ma
yb
esu
bj
ect to s
ig
n
ifi
cant c
h
an
g
e. I
f
our
f
orecast o
f
taxa
bl
e
i
ncome w
i
t
hi
nt
h
e carr
yb
ac
k
/carr
yf
orwar
d
per
i
o
d
sava
il
a
bl
eun
d
er app
li
ca
bl
e
l
aw
i
s not
sufficient to cover the amount of net deferred tax assets, such assets ma
y
be impaired
.
Recent Account
i
n
g
Pronouncements and Development
s
Note 3 to t
h
e Conso
lid
ate
d
F
i
nanc
i
a
l
Statements
di
scusses new account
i
n
g
pronouncements a
d
opte
d
d
ur
i
n
g
2009 an
d
t
h
e expecte
di
mpact o
f
account
i
n
g
pronouncements recent
ly i
ssue
db
ut not
y
et requ
i
re
d
to
be
adopted. To the extent the adoption of new accountin
g
standards materiall
y
affect financial condition, result
s
of operations, or liquidit
y
, the impacts are discussed in the applicable section of this MD&A and the Notes t
o
t
h
e Conso
lid
ate
d
F
i
nanc
i
a
l
Statements.
Ac
q
uisition
s
S
ky
Financia
l
Grou
p
, Inc. (S
ky
Financia
l
)
T
h
e mer
g
er w
i
t
h
S
ky
F
i
nanc
i
a
l
was comp
l
ete
d
on Ju
ly
1, 2007. At t
h
et
i
me o
f
acqu
i
s
i
t
i
on, S
ky
F
i
nanc
i
a
l
had assets of $16.8 billion, includin
g
$13.3 billion of loans, and total deposits of $12.9 billion. The impact o
f
t
hi
s acqu
i
s
i
t
i
on was
i
nc
l
u
d
e
di
n our conso
lid
ate
d
resu
l
ts
f
or t
h
e
l
ast s
i
x mont
h
so
f
2007. A
ddi
t
i
ona
lly
,
in
Septem
b
er 2007, S
ky
Ban
k
an
d
S
ky
Trust, Nat
i
ona
l
Assoc
i
at
i
on (S
ky
Trust), mer
g
e
di
nto t
h
e Ban
k
an
d
s
y
stems inte
g
ration was completed. As a result, performance comparisons between 2008 and 2007 ar
e
affected
.
As a result of this acquisition, we have a si
g
nificant loan relationship with Franklin. This relationship i
s
di
scusse
di
n
g
reater
d
eta
il i
nt
h
e “Commerc
i
a
l
Cre
di
t” an
d
“Cr
i
t
i
ca
l
Account
i
n
g
Po
li
c
i
es an
d
Use o
f
S
ig
n
ifi
cant Est
i
mates” sect
i
ons o
f
t
hi
s report
.
Unizan Financial Cor
p
. (Unizan
)
The mer
g
er with Unizan was completed on March 1, 2006. At the time of acquisition, Unizan had asset
s
of $2.5 billion, includin
g
$1.6 billion of loans and core deposits of $1.5 billion. The impact of this acquisitio
n
was included in our consolidated results for the last ten months of 200
6.
I
m
p
act Methodolog
y
For both the Sk
y
Financial and Unizan acquisitions, comparisons of the reported results are impacted a
s
follo
w
s
:
• Increased the absolute level of reported avera
g
e balance sheet, revenue, expense, and the absolute leve
l
o
f
certa
i
n cre
di
t qua
li
t
y
resu
l
ts
.
• Increased the absolute level of re
p
orted noninterest ex
p
ense items because of costs incurred as
p
art o
f
mer
g
er
i
nte
g
rat
i
on act
i
v
i
t
i
es, most nota
bly
emp
l
o
y
ee retent
i
on
b
onuses, outs
id
e pro
g
ramm
i
n
g
serv
i
ce
s
re
l
ate
d
to s
y
stems convers
i
ons, occupanc
y
expenses, an
d
mar
k
et
i
n
g
expenses re
l
ate
d
to custome
r
retention initiati
v
es.
33