Huntington National Bank 2011 Annual Report Download - page 107

Significant investments have been made in our sales process, which entails robust customer relationship
planning, as well as a renewed investment in technology, including OCR; a referral tracking system and new
customer relationship management system. These investments have resulted in a 32% increase in loan
originations over the last 12 months. Additionally, the Commercial Relationship Manager sales teams were
focused on the importance of deposit relationships as well as partnering with Treasury Management to deliver
customer-focused liquidity management solutions.
The increase in net income reflected a combination of factors including:
• $93.7 million, or 89%, decline in the provision for credit losses.
• $32.9 million, or 16%, increase in net interest income.
• $16.1 million, or 14%, increase in noninterest income.
Partially offset by:
• $32.8 million, or 21%, increase in noninterest expense, due to our strategic initiatives investments.
The increase in net interest income from the year-ago period reflected:
• $0.9 billion, or 12%, increase in total average loans and leases.
• $0.7 billion, or 22%, increase in average core deposits.
• 10 basis point increase in the net interest margin due to a 29 basis point increase in the commercial loan
spread. The commercial loan spread increase reflected lower cost of funds on our renewals. In addition, as
the liquidity position of the Bank improved in 2010, the liquidity premium was lowered for new and
renewed loans.
The increase in total average loans and leases from the year-ago period reflected:
• $0.5 billion, or 67%, increase in the large corporate portfolio average balance due to establishing
relationships with targeted prospects within our footprint.
• $0.4 billion, or 10%, increase in the core middle market loan portfolio average balances. The majority of
this growth was due to marketing efforts and community development within our Michigan and
Cleveland markets.
• $0.2 billion, or 23%, increase in the equipment finance portfolio average balance which reflected our
focus on developing vertical strategies in business aircraft, rail industry, lender finance and syndications.
Partially offset by:
• $0.3 billion, or 37%, decline in commercial loans managed by SAD reflecting improved credit quality in
the portfolio.
The increase in total average deposits from the year-ago period reflected:
• $0.8 billion, or 26%, increase in average core deposits reflected a $0.4 billion increase in both average
DDA and money market deposits. In 2011, a money desk was created to assist commercial bankers with
tailored solutions for customers having large dollar depository needs. This additional support and
expertise provided additional value and helped our bankers win relationships and encouraged their
expanded prospecting efforts.
• Strategic initiatives to deepen customer relationships, new and innovative product offerings, pricing
discipline, and sales and retention initiatives.
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