Huntington National Bank 2012 Annual Report Download - page 90

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82
The decrease in total average loans and leases from the year-ago period reflected:
x$1.4 billion, or 23%, decrease in the average consumer automobile portfolio. This decrease was the result of automobile loan
securitizations, partially offset by continued strong originations.
x$0.2 billion, or 3%, decrease in our average commercial portfolio. This decrease primarily reflected a $0.5 billion decrease in
CRE loans partially offset by a $0.3 billion increase in automobile floor plan loans. The decline in CRE loans continued to
reflect our managed reduction of this overall exposure, particularly in the noncore portfolio. The increase in average floor
plan loans reflected new dealer relationships as well as strong line utilization levels.
The increase in total average deposits from the year-ago period reflected:
x$90 million, or 12%, increase in average core deposits reflecting our commitment to strengthen relationships with core
customers and prospects, as well as new commercial automobile dealer relationships.
The reduction in the provision for credit losses from the year-ago period reflected:
x$66.6 million, or 50%, decrease in CRE NCOs. Expressed as a percentage of related average balances, CRE NCO’s
decreased to 1.40% in 2012 from 2.52% in 2011.
x$6.9 million, or 46%, decrease in indirect automobile-related NCOs. As a percentage of related average balances, indirect
automobile-related NCO’s were 0.18% in 2012 compared to 0.26% in 2011. This decrease reflected our consistent focus on
high credit quality of originations combined with a strong resale market for used vehicles.
The increase in noninterest income from the year-ago period reflected:
x$26.9 million, or 174%, increase in gain on sales of loans.
Partially offset by:
x$16.5 million, or 62%, decrease in automobile operating lease income resulting from the continued runoff of that portfolio, as
we exited that business at the end of 2008.
The decrease in noninterest expense from the year-ago period reflected:
x$12.3 million, or 61%, decrease in automobile operating lease expense resulting from the continued runoff of that portfolio.
x$5.1 million, or 29%, decrease in legal, professional, outside data processing, and other services resulting from a decrease in
collection related activities.
x$2.6 million, or 9%, decrease in personnel costs, which primarily related to cost deferrals resulting from increased loan
origination activities.
Partially offset by:
x$11.6 million increase in FDIC insurance expense.
2011 vs. 2010
AFCRE reported net income of $186.2 million in 2011, compared with a net income of $46.5 million in 2010. The $139.7
million increase included a $26.1 million, or 8%, increase in net interest income and a $193.7 million, or 105%, decrease in the
provision for credit losses, partially offset by a $8.7 million, or 6%, increase in noninterest expense.