Huntington National Bank 2009 Annual Report Download - page 47

noninterest ex
p
ense included
p
ositive im
p
acts associated with the Vis
a
»
IPO, earl
y
extin
g
uishment of debt
,
and liti
g
ation reserves. Performance of the remainin
g
components of noninterest expense was mixed. ORE
O
and foreclosure expense, as well as professional services expense, increased as the econom
y
continued t
o
weaken. Automobile operatin
g
lease expense and deposit and other insurance expense also increased. Thes
e
i
ncreases are part
i
a
lly
o
ff
set
by
a
d
ec
li
ne
i
n personne
l
expense, as we
ll
as ot
h
er expense cate
g
or
i
es,
d
ue t
o
mer
g
er/restructur
i
n
g
e
ffi
c
i
enc
i
es.
S
i
g
nificant Item
s
D
e
f
inition o
f
Signi
f
icant Item
s
From time to time, revenue, expenses, or taxes, are impacted b
y
items
j
ud
g
ed b
y
us to be outside o
f
or
di
nar
yb
an
ki
n
g
act
i
v
i
t
i
es an
d
/or
by i
tems t
h
at, w
hil
et
h
e
y
ma
yb
e assoc
i
ate
d
w
i
t
h
or
di
nar
yb
an
ki
n
g
act
i
v
i
t
i
es
,
are so unusua
lly l
ar
g
et
h
at t
h
e
i
r outs
i
ze
di
mpact
i
s
b
e
li
eve
dby
us at t
h
at t
i
me to
b
e
i
n
f
requent or s
h
ort-term
in
nature. We re
f
er to suc
hi
tems as “S
ig
n
ifi
cant Items”. Most o
f
ten, t
h
ese S
ig
n
ifi
cant Items resu
l
t
f
rom
f
actor
s
ori
g
inatin
g
outside the compan
y
;e.
g
., re
g
ulator
y
actions/assessments, windfall
g
ains, chan
g
es in accountin
g
pr
i
nc
i
p
l
es, one-t
i
me tax assessments/re
f
un
d
s, etc. In ot
h
er cases t
h
e
y
ma
y
resu
l
t
f
rom our
d
ec
i
s
i
ons assoc
i
ate
d
w
i
t
h
s
ig
n
ifi
cant corporate act
i
ons out o
f
t
h
eor
di
nar
y
course o
fb
us
i
ness; e.
g
., mer
g
er/restructur
i
n
g
c
h
ar
g
es
,
recap
i
ta
li
zat
i
on act
i
ons,
g
oo
d
w
ill i
mpa
i
rment, etc
.
Even t
h
ou
gh
certa
i
n revenue an
d
expense
i
tems are natura
lly
su
bj
ect to more vo
l
at
ili
t
y
t
h
an ot
h
ers
d
ue t
o
chan
g
es in market and economic environment conditions, as a
g
eneral rule volatilit
y
alone does not define
a
S
ig
n
ifi
cant Item. For examp
l
e, c
h
an
g
es
i
nt
h
e prov
i
s
i
on
f
or cre
di
t
l
osses,
g
a
i
ns/
l
osses
f
rom
i
nvestmen
t
act
i
v
i
t
i
es, asset va
l
uat
i
on wr
i
te
d
owns, etc., re
fl
ect or
di
nar
yb
an
ki
n
g
act
i
v
i
t
i
es an
d
are, t
h
ere
f
ore, t
y
p
i
ca
lly
exc
l
u
d
e
df
rom cons
id
erat
i
on as a S
ig
n
ifi
cant Item
.
We
b
e
li
eve t
h
e
di
sc
l
osure o
f
“S
ig
n
ifi
cant Items”
i
n current an
d
pr
i
or per
i
o
d
resu
l
ts a
id
s
i
n
b
etter
understandin
g
our performance and trends to ascertain which of such items, if an
y
, to include or exclude fro
m
an ana
ly
s
i
so
f
our per
f
ormance;
i
.e., w
i
t
hi
nt
h
e context o
fd
eterm
i
n
i
n
gh
ow t
h
at per
f
ormance
diff
ere
df
ro
m
expectat
i
ons, as we
ll
as
h
ow,
if
at a
ll
,toa
dj
ust est
i
mates o
ff
uture per
f
ormance accor
di
n
gly
.Tot
hi
sen
d
,we
adopted a practice of listin
g
“Si
g
nificant Items” in our external disclosure documents (e.
g
., earnin
g
s pres
s
releases, investor
p
resentations, Forms 10-Q and 10-K).
“Si
g
nificant Items” for an
y
particular period are not intended to be a complete list of items that ma
y
mater
i
a
lly i
mpact current or
f
uture per
i
o
d
per
f
ormance
.
Signi
f
icant Items In
fl
uencing Financia
l
Per
f
ormance Com
p
arison
s
Earn
i
n
g
s compar
i
sons amon
g
t
h
et
h
ree
y
ears en
d
e
d
Decem
b
er 31, 2009, 2008, an
d
2007 were
i
mpacte
d
b
y
a number of si
g
nificant items summarized below
.
1.
Goo
d
wi
ll
Im
p
airment
.
T
h
e
i
mpacts o
fg
oo
d
w
ill i
mpa
i
rment on our reporte
d
resu
l
ts were as
f
o
ll
ows:
• Dur
i
n
g
t
h
e 2009
fi
rst quarter,
b
an
k
stoc
k
pr
i
ces cont
i
nue
d
to
d
ec
li
ne s
ig
n
ifi
cant
ly
. Our stoc
k
pr
i
ce
declined 78% from $7.66
p
er share at December 31, 2008 to $1.66
p
er share at March 31, 2009. Given
this si
g
nificant decline, we conducted an interim test for
g
oodwill impairment. As a result, we recorde
d
a noncash
$
2,602.7 million (
$
4.88 per common share) pretax char
g
e
.
(
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” section
f
or
a
dditional in
f
ormation).
• Durin
g
the 2009 second quarter, a pretax
g
oodwill impairment of $4.2 million ($0.01 per common
share) was recorded relatin
g
to the sale of a small pa
y
ments-related business in Jul
y
2009
.
2
.
Sky Financial Ac
q
uisition
.
The mer
g
er with Sk
y
Financial was completed on Jul
y
1, 2007. The
i
mpacts o
f
S
ky
F
i
nanc
i
a
l
on t
h
e 2008 reporte
d
resu
l
ts compare
d
w
i
t
h
t
h
e 2007 reporte
d
resu
l
ts are as
f
o
ll
ows
:
• Increase
d
t
h
ea
b
so
l
ute
l
eve
l
o
f
reporte
d
avera
g
e
b
a
l
ance s
h
eet, revenue, expense, an
d
cre
di
t qua
li
t
y
resu
l
ts (e.
g
., NCOs).
3
9