Huntington National Bank 2012 Annual Report Download - page 46

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Noninterest Expense
(This section should be read in conjunction with Significant Items 3 and 6.)
The following table reflects noninterest expense for the past three years:
Table 8 - Noninterest Expense
Twelve Months Ended December 31,
Change from 2011 Change from 2010
(dollar amounts in thousands) 2012 Amount Percent 2011 Amount Percent 2010
Personnel costs $ 988,193 $ 95,659 11 % $ 892,534 $ 93,561 12 % $ 798,973
Outside data processing and other
services 190,255 1,081 1 189,174 27,360 17 161,814
N
et occupancy 111,160 2,031 2 109,129 1,267 1 107,862
Equipment 102,947 10,403 11 92,544 6,624 8 85,920
Deposit and other insurance expense 68,330 (9,362) (12) 77,692 (19,856) (20) 97,548
Professional services 65,758 (2,858) (4) 68,616 (17,595) (20) 86,211
Marketing 64,263 (1,297) (2) 65,560 9,213 16 56,347
Amortization of intangibles 46,549 (6,769) (13) 53,318 (7,160) (12) 60,478
OREO and foreclosure expense 18,271 265 1 18,006 (21,043) (54) 39,049
Gain on early extinguishment of debt (798) 8,899 (92) (9,697) (9,697) --- ---
Other expense 180,948 9,324 5 171,624 (7,979) (4) 179,603
Total noninterest expense $ 1,835,876 $ 107,376 6 % $ 1,728,500 $ 54,695 3 % $ 1,673,805
N
umber of employees (full-time
equivalent), at period-end 11,806 561 5 % 11,245 (96) (1)% 11,341
2012 vs. 2011
Noninterest expense increased $107.4 million, or 6%, from 2011, and primarily reflected:
x$95.7 million, or 11%, increase in personnel costs, primarily reflecting an increase in bonuses, commissions, and full-time
equivalent employees, as well as increased salaries and benefits.
x$10.4 million, or 11%, increase in equipment, primarily reflecting the impact of depreciation from our in-store branch
expansions and other technology investments.
x$9.3 million, or 5%, increase in other expense primarily reflecting higher litigation reserves, increased sponsorships and
public relations expense, and an increase in the provision for mortgage representations and warranties.
Partially offset by:
x$9.4 million, or 12%, decline in deposit and other insurance expense.
2011 vs. 2010
Noninterest expense increased $54.7 million, or 3%, from 2010, and primarily reflected:
x$93.6 million, or 12%, increase in personnel costs, primarily reflecting an increase in salary and benefit-related expenses.
x$27.4 million, or 17%, 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.
x$9.2 million, or 16%, increase in marketing expense, reflecting higher advertising costs.
Partially offset by:
x$21.0 million, or 54%, decrease in OREO and foreclosure expenses as OREO balances declined 42% in 2011.
x$19.9 million, or 20%, decrease in deposit and other insurance expense.