Huntington National Bank 2011 Annual Report Download - page 56

The following table reflects noninterest expense for the past three years:
Table 9 — Noninterest Expense
Twelve Months Ended December 31,
Change from 2010 Change from 2009
2011 Amount Percent 2010 Amount Percent 2009
(dollar amounts in thousands)
Personnel costs ........ $ 892,534 $ 93,561 12% $ 798,973 $ 98,491 14% $ 700,482
Outside data processing
and other services .... 187,195 27,947 18 159,248 11,153 8 148,095
Net occupancy ........ 109,129 1,267 1 107,862 2,589 2 105,273
Equipment ............ 92,544 6,624 8 85,920 2,803 3 83,117
Deposit and other
insurance expense .... 77,692 (19,856) (20) 97,548 (16,282) (14) 113,830
Marketing ............ 75,627 9,703 15 65,924 32,875 99 33,049
Professional services .... 70,595 (18,183) (20) 88,778 12,412 16 76,366
Amortization of
intangibles .......... 53,318 (7,160) (12) 60,478 (7,829) (11) 68,307
Automobile operating
lease expense ....... 20,018 (17,016) (46) 37,034 (6,326) (15) 43,360
OREO and foreclosure
expense ............ 18,006 (21,043) (54) 39,049 (54,850) (58) 93,899
Goodwill impairment . . . ——— — (2,606,944) (100) 2,606,944
Gain on early
extinguishment of
debt ............... (9,697) (9,697) — — 147,442 (100) (147,442)
Other expense ......... 141,539 8,548 6 132,991 24,828 23 108,163
Total noninterest
expense .............. $1,728,500 $ 54,695 3% $1,673,805 $(2,359,638) (59)% $4,033,443
Number of employees (full-
time equivalent), at
period-end ............ 11,245 (96) (1)% 11,341 1,069 10% 10,272
2011 vs. 2010
Noninterest expense increased $54.7 million, or 3%, from 2010, and primarily reflected:
• $93.6 million, or 12%, increase in personnel costs, primarily reflecting an increase in salary and benefit-
related expenses.
• $27.9 million, or 18%, increase in outside data processing and other services, reflecting the costs
associated with the conversion to a new debit card processor and the implementation of strategic
initiatives.
• $9.7 million, or 15%, increase in marketing expense, reflecting higher advertising costs.
• $8.5 million, or 6%, increase in other expense primarily reflecting the 2011 first quarter $17.0 million
addition to litigation reserves (see Significant items), partially offset by a $6.1 million decrease in
representation and warranty expenses.
Partially offset by:
• $21.0 million, or 54%, decrease in OREO and foreclosure expenses as OREO balances declined 42% in
2011.
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