Huntington National Bank 2010 Annual Report Download - page 116

Conservative Deposit Account, (2) the Huntington Protected Deposit Account, (3) the Collateral Backed
Deposit Account, and (4) the Bank Deposit Sweep Product. These four deposit products had balances in
excess of $1.2 billion at December 31, 2010.
2009 vs. 2008
WGH reported net income of $1.7 million in 2009, a $41.3 million decline compared with 2008. The
provision for credit losses increased by $92.6 million, reflecting an $81.4 million increase in NCOs, including
a $58.3 million increase in residential mortgage NCOs. Credit quality was stressed during 2009 consistent with
economic conditions in the Company’s markets. Mortgage banking income increased $100.5 million due to
more favorable lending conditions in the first half of 2009. Partially offsetting that increase, trust services
declined $21.4 million, net interest income was $24.9 million lower, and noninterest expense was $27.0 million
higher.
Average total loans decreased $0.5 billion, or 9%, primarily reflecting residential mortgage sales during
2009.
RESULTS FOR THE FOURTH QUARTER
Earnings Discussion
In the 2010 fourth quarter, we reported net income of $122.9 million, or $0.05 per common share,
compared with a net loss of $369.7 million, or $0.56 per common share, in the year-ago quarter. Significant
items impacting 2010 fourth quarter performance included (see table below):
Table 53 — Significant Items Influencing Earnings Performance Comparison
After-tax EPS(2)
Impact(1)
(Dollar amounts in millions, except per share amounts)
Three Months Ended:
December 31, 2010 — GAAP income ............................ $ 122.9 $ 0.05
• Preferred stock conversion deemed dividend .................... — (0.07)
December 31, 2009 — GAAP loss .............................. $(369.7) $(0.56)
• Gain on the early extinguishment of debt ...................... 73.6 0.07
• Deferred tax valuation allowance benefit....................... 11.3(2) 0.02
(1) Favorable (unfavorable) impact on GAAP earnings; pretax unless otherwise noted.
(2) After-tax. EPS is reflected on a fully diluted basis.
Net Interest Income / Average Balance Sheet
FTE net interest income increased $42.4 million, or 11%, from the year-ago quarter. This reflected the
favorable impact of the significant increase in the net interest margin to 3.37% from 3.19%. This also reflected
the benefit of a $2.4 billion, or 5%, increase in average total earning assets due to a $1.4 billion, or 15%,
increase in average total investment securities, and a $0.7 billion, or 2%, increase in average total loans and
leases.
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