Huntington National Bank 2011 Annual Report Download - page 99

Other Capital Matters
Beginning with the cash dividend declared on July 21, 2011, our quarterly cash dividend increased to $0.04
per common share from $0.01 per common share.
We consider disciplined capital management as a key objective, with dividends representing one
component. Our strong capital ratios and expectations for continued earnings growth positions us to continue to
actively explore additional capital management opportunities.
We are participating in the Federal Reserve’s CapPR stress test process and made our capital plan
submission in January 2012. The Federal Reserve will evaluate our capital plan based on our risk profile and the
strength of our internal capital assessment process under regulatory capital standards currently applicable and in
accordance with our plans to address proposed revisions to the regulatory capital framework as set forth in Basel
III and relevant provisions of the Dodd-Frank Act. The Federal Reserve’s evaluation will take into consideration
any capital distribution plans, such as plans to increase common stock dividends or to reinstate common stock
repurchase programs and we expect to receive the results of their evaluation by the end of the 2012 first
quarter. While we can give no assurances as to the outcome or specific interactions with the regulators, we
believe we have a strong capital position.
BUSINESS SEGMENT DISCUSSION
Overview
We have four major business segments: Retail and Business Banking; Regional and Commercial Banking;
Automobile Finance and Commercial Real Estate; and Wealth Advisors, Government Finance, and Home
Lending. A Treasury / Other function also includes our insurance business and other unallocated assets,
liabilities, revenue, and expenses. While this section reviews financial performance from a business segment
perspective, it should be read in conjunction with the Discussion of Results of Operations, Note 25 of the Notes
to Consolidated Financial Statements, and other sections for a full understanding of our consolidated financial
performance.
Business segment results are determined based upon our management reporting system, which assigns
balance sheet and income statement items to each of the business segments. The process is designed around our
organizational and management structure and, accordingly, the results derived are not necessarily comparable
with similar information published by other financial institutions.
Optimal Customer Relationship (OCR)
Our OCR initiative is a cross-business segment strategy designed to increase overall customer profitability
and retention by deepening product and service penetration to consumer and commercial customers. We believe
this can be accomplished by taking our broad array of services and products and delivering them through a
rigorous and disciplined sales management process that is consistent across all business segments and regions. It
is also supported by robust sales and cross-referral technology.
OCR was introduced in late 2009. Through 2010, much of the effort was spent on defining processes, sales
training, and systems development to fully capture and measure OCR performance metrics. This year, we
introduced OCR-related metrics for commercial relationships, which complements the previously disclosed
consumer OCR-related metrics.
CONSUMER OCR PERFORMANCE
For consumer OCR performance there are three key performance metrics: (1) the number of checking
account households, (2) the number of product penetration per consumer checking account household, and (3) the
revenue generated.
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