Huntington National Bank 2010 Annual Report Download - page 120

Table 57 — Noninterest Expense — 2010 Fourth Quarter vs. 2009 Fourth Quarter
2010 2009 Amount Percent
Fourth Quarter Change
(Dollar amounts in thousands)
Personnel costs ........................... $212,184 $180,663 $ 31,521 17%
Outside data processing and other services ....... 40,943 36,812 4,131 11
Net occupancy............................ 26,670 26,273 397 2
Deposit and other insurance expense ........... 23,320 24,420 (1,100) (5)
Professional services ....................... 21,021 25,146 (4,125) (16)
Equipment............................... 22,060 20,454 1,606 8
Marketing ............................... 16,168 9,074 7,094 78
Amortization of intangibles .................. 15,046 17,060 (2,014) (12)
OREO and foreclosure expense ............... 10,502 18,520 (8,018) (43)
Automobile operating lease expense ............ 8,142 10,440 (2,298) (22)
Gain on early extinguishment of debt ........... —(73,615) 73,615 (100)
Other expense ............................ 38,537 27,349 11,188 41
Total noninterest expense .................... $434,593 $322,596 $111,997 35%
Full-time equivalent employees, at period-end .... 11,341 10,272 1,069 10%
The $112.0 million increase reflected:
• $73.6 million gain on early extinguishment of debt that reduced expenses in the year-ago quarter.
• $31.5 million, or 17%, increase in personnel costs, primarily reflecting a 10% increase in full-time
equivalent staff in support of strategic initiatives, as well as higher commissions and other incentive
expenses, and the re-instatement of our 401(k) plan matching contribution in 2010.
• $11.2 million, or 41%, increase in other expense, reflecting $5.9 million associated with increases in
repurchase reserves related to representations and warranties made on mortgage loans sold, as well as
increased travel and miscellaneous fees.
• $7.1 million, or 78%, increase in marketing expense, reflecting increases in branding and product
advertising activities in support of strategic initiatives.
• $4.1 million, or 11%, increase in outside data processing and other services, reflecting higher outside
programming and other costs associated with the implementation of strategic initiatives, partially offset
by lower Franklin-related servicing costs.
Partially offset by:
• $8.0 million, or 43%, decline in OREO and foreclosure expense.
• $4.1 million, or 16%, decrease in professional services, reflecting lower legal expenses.
• $2.3 million, or 22%, decline in automobile operating lease expense as that portfolio continued to
runoff.
• $2.0 million, or 12%, decrease in the amortization of intangibles expense.
Income Taxes
The provision for income taxes in the 2010 fourth quarter was $35.0 million and a benefit of
$228.3 million in the fourth quarter 2009. The effective tax rate in the fourth quarter 2010 was 22.2%
compared to a tax benefit of 38.2% in the fourth quarter 2009. At December 31, 2010 and 2009 we had a
deferred tax asset of $538.3 million and $480.5 million, respectively. Based on both positive and negative
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