Huntington National Bank 2009 Annual Report Download - page 62

quarter. This deposit insurance credit offset substantiall
y
all of our assessment in 2008. Hi
g
her levels o
f
deposits also contributed to the increase.
•
$
60.4 million increase in OREO and foreclosure expense, reflectin
g
hi
g
her levels of problem assets, as
well as loss miti
g
ation activities.
•
$
26.8 million, or 54%, increase in professional services, reflectin
g
hi
g
her consultin
g
and collection
-
related ex
p
enses.
• $17.9 million, or 14%, increase in outside data processin
g
and other services, primaril
y
reflectin
g
port
f
o
li
o serv
i
c
i
ng
f
ees pa
id
to Fran
kli
n resu
l
t
i
ng
f
rom t
h
e 2009
fi
rst quarter restructur
i
ng o
f
t
his
re
l
at
i
ons
hip.
•
$
12.1 million, or 39%, increase in automobile operatin
g
lease expense, primaril
y
reflectin
g
a21
%
i
ncrease
i
n avera
g
e operat
i
n
gl
eases. However, as prev
i
ous
ly di
scusse
d
,weex
i
te
d
t
h
e automo
bil
e
l
easin
g
business durin
g
the 2008 fourth quarter
.
Partiall
y
offset b
y:
•
$
123.9 million positive impact related to
g
ains on earl
y
extin
g
uishment of debt
.
•
$
83.1 million, or 11%, decline in personnel expense, reflectin
g
a decline in salaries, and lower benefit
s
and commission expense. Full-time equivalent staff declined 6% from the comparable
y
ear-a
g
o period
.
•
$
25.8 million, or 27%, decline in other noninterest expense primaril
y
reflectin
g
lower automobile lease
residual value ex
p
ense as used vehicle
p
rices im
p
roved
.
• $10.8 million, or 12%, decline in equipment costs, reflectin
g
lower depreciation costs, as well as lowe
r
re
p
a
i
ran
d
ma
i
ntenance costs.
200
8 versus 2
007
Noninterest ex
p
ense increased
$
165.5 million, or 13%, from 2007
.
Table 15 — Non
i
nterest Expense — Est
i
mated Merger-Related Impact — 2008 vs. 200
7
2008 2007
A
m
ou
nt P
e
r
ce
nt
Merger
Rela
t
ed
Merger
Restructurin
g$
%(1
)
T
we
l
eve
M
o
nth
s
En
ded
December 31, Change Other
Merger-
Merger
C
hange attr
i
butable to
:
(
In thousands
)
Personne
l
costs .
.
..............
$
783
,
546
$
686,828
$
96,718 14%
$
136,500
$(
17,633
)$(
22,149
)(
3
)%
Outside data processin
g
and other
ser
v
ices .
...................
130,226
129,226 1,000 1 24,
5
24
(
16,017
)(
7,
5
07
) (5)
De
p
os
i
tan
d
ot
h
er
i
nsurance ex
p
ense .
.
22,437
13
,
78
5
8
,
6
5
2 63 808 — 7
,
844
54
N
et occupanc
y
...
..............
108,428
99,373 9,0
55
9 20,368
(
6,487
)(
4,826
)(
4
)
OREO an
df
orec
l
osure ex
p
ense .
.
....
33,4
5
5
1
5,
18
5
18
,
270 N.M. 2
,5
92 — 1
5,
678 8
8
E
q
ui
p
ment
...................
93,965
81
,
482 12
,
483 1
5
9
,5
98 942 1
,
943 2
Professional service
s
.............
49,613
37,390 12,223 33
5
,414
(
6,399
)
13,208 36
Amort
i
zat
i
on o
fi
ntan
gibl
e
s
........
7
6,894
45
,1
5
1 31,743 70 32,962 —
(
1,219
)(
2
)
Automo
bil
e operat
i
ng
l
ease expense .
.
31,282
5,
161 26
,
121 N.M. — — 26
,
121 N.M.
Marketin
g.
...................
3
2
,
66
4
46,043
(
13,379
)(
29
)
8,722
(
13,410
)(
8,691
)(
21
)
Te
l
eco
mm
u
ni
cat
i
o
n
s
.............
25
,
00
8
24,502 506 2 4,448
(
550
)(
3,392
)(
12
)
Pr
i
nt
i
n
g
an
d
supp
li
e
s
.............
18,8
7
0
18,2
5
1 619 3 2,748
(
1,433
)(
696
)(
4
)
Ga
i
n on ear
ly
ext
i
n
g
u
i
s
h
ment o
fd
e
bt
.........................
(
23
,
542
)
(
8,0
5
8
)(
1
5
,484
)
N.M. — —
(
1
5
,484
)
N.M
.
Ot
h
er expense . .
.
..............
94
,5
28
117,
5
2
5
(22,997) (20) 22,696 (2,267) (43,426) (31)
Total non
i
nterest ex
p
ense
..........
$
1
,
477
,
37
4
$
1,311,844
$
165,530 13%
$
271,380
$(
63,254
)$(
42,596
)(
3
)%
(1) Calculated as other / (prior period + mer
g
er-related
)
54