Huntington National Bank 2012 Annual Report Download - page 43

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2012 vs. 2011
Fully-taxable equivalent net interest income for 2012 increased $86.8 million, or 5%, from 2011. This reflected the favorable
impact of a $2.1 billion, or 4%, increase in average earning assets and a 3 basis point increase in the FTE net interest margin. The
increase in average earning assets reflected:
x$1.9 billion, or 10%, increase in average total commercial loans.
x$0.8 billion, or 277%, increase in average loans held for sale.
Partially offset by:
x$0.6 billion, or 3% decrease in average consumer loans including a $1.4 billion, or 23%, decrease in automobile loans,
reflecting $2.5 billion of automobile loans sold throughout the year.
The 3 basis point increase in the FTE net interest margin reflected:
xThe positive impact of a 29 basis point decline in total deposit costs.
Partially offset by:
x24 basis point declines in the yield on earnings assets and a 2 basis point decrease related to non-deposit funding and
other items.
The $3.1 billion, or 8%, increase in average total core deposits from the prior year reflected:
x$3.8 billion, or 27%, increase in total demand deposits.
x$0.6 billion, or 4%, increase in money market deposits.
Partially offset by:
x$1.5 billion, or 19%, decrease in core certificates of deposits.
2011 vs. 2010
Fully-taxable equivalent net interest income for 2011 increased $14.2 million, or 1%, from 2010. This reflected the favorable
impact of a $1.2 billion, or 2%, increase in average earning assets, partially offset by a 6 basis point decline in the net interest margin.
The increase in average earning assets reflected:
x$1.6 billion, or 4%, increase in average total loans and leases.
Partially offset by:
x$0.4 billion, or 4%, decrease average total available-for-sale and other securities.
The 6 basis point decline in the net interest margin reflected lower loan and securities yields partially offset by the positive
impacts of growth in low cost deposits and lower deposit pricing.
The $1.6 billion, or 4%, increase in average total loans and leases from the prior year primarily reflected:
x$1.2 billion, or 9%, increase in the average C&I portfolio due to a combination of factors. This included benefits from
our strategic initiatives focusing on large corporate, asset based lending, and equipment finance. In addition, we
continued to see growth in more traditional middle-market, business banking, and automobile floorplan loans. This
growth was evident despite utilization rates that remained well below historical norms.
x$1.0 billion, or 20%, increase in the average automobile portfolio. Automobile lending is a core competency and
continues to be an area of targeted growth. The growth from the prior year exhibited further penetration within our
historical geographic footprint, as well as the positive impacts of our expansion into Eastern Pennsylvania and five New
England states.