Huntington National Bank 2010 Annual Report Download - page 110

Retail and Business Banking
Table 49 — Key Performance Indicators for Retail and Business Banking
2010 2009 Amount Percent 2008
Change from 2009
(Dollar amounts in thousands unless otherwise noted)
Net interest income .................... $867,069 $810,658 $ 56,411 7% $859,477
Provision for credit losses ............... 157,994 470,152 (312,158) (66) 196,224
Noninterest income .................... 394,705 415,471 (20,766) (5) 409,151
Noninterest expense .................... 902,186 796,714 105,472 13 675,720
Provision (benefit) for income taxes ........ 70,558 (14,258) 84,816 N.R. 138,840
Net income (loss) ..................... $131,036 $ (26,479) $ 157,515 N.R.% $257,844
Number of employees (full-time equivalent) . . 5,501 4,911 590 12% 5,348
Total average assets (in millions) .......... $ 13,161 $ 13,413 $ (252) (2) $ 14,084
Total average loans/leases (in millions)...... 11,668 12,269 (601) (5) 12,850
Total average deposits (in millions) ........ 28,774 27,604 1,170 4 25,994
Net interest margin .................... 3.00% 2.93% 0.07% 2 3.32%
NCOs .............................. $287,320 $325,210 $ (37,890) (12) $134,094
NCOs as a % of average loans and leases.... 2.46% 2.65% (0.19)% (7) 1.04%
Return on average common equity ......... 9.1 (2.4) 11.5 N.R. 28.8
Retail banking # demand deposit account
(DDA) households (eop)............... 982,610 921,695 60,915 7 896,412
Retail banking New-to-Bank DDA
relationships 90-day cross-sell (eop) ...... 3.68 3.27 0.41 13 2.12
Business banking # business DDA
relationships (eop) ................... 118,843 113,009 5,834 5 107,241
Business banking New-to-Bank DDA
relationships 90-day cross-sell (eop) ...... 2.67 1.94 0.73 38 2.03
N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current
period.
eop — End of Period.
2010 versus 2009
Retail and Business Banking reported net income of $131.0 million in 2010, compared with a net loss of
$26.5 million in 2009. As discussed further below, the $157.5 million increase included a $312.2 million, or
66%, decline in the provision for credit losses, partially offset by a $105.5 million, or 13%, increase in
noninterest expense.
Net interest income increased $56.4 million, or 7%, primarily reflecting a $1.2 billion increase in average
total deposits, a 19 basis point improvement in our deposit spread, and a 7% increase in the number of DDA
households. These increases were the result of increased marketing initiatives in 2010 and sales efforts
throughout 2009 and 2010, particularly in our checking and money market deposit products.
The $0.6 billion, or 5%, decline in total average loans and leases primarily reflected small business and
consumer loan sales.
Provision for credit losses declined $312.2 million, or 66%, reflecting lower NCOs, a $0.6 billion
decrease in related average loans and leases, and an improvement in delinquencies. NCOs declined
$37.9 million, or 12%, and reflected a $102.5 million decline in total small business NCOs partially offset by
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