Huntington National Bank 2013 Annual Report Download - page 43

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Noninterest Income
(This section should be read in conjunction with Significant Items 4 and 6.)
The following table reflects noninterest income for the past three years:
Table 7 - Noninterest Income
Twelve Months Ended December 31,
Change from 2012 Change from 2011
(dollar amounts in thousands) 2013 Amount Percent 2012 Amount Percent 2011
Service charges on deposit accounts $ 271,802 $ 9,623 4 % $ 262,179 $ 18,672 8 % $ 243,507
Mortgage banking income 126,855 (64,237) (34) 191,092 107,684 129 83,408
Trust services 123,007 1,110 1 121,897 2,515 2 119,382
Electronic banking 92,591 10,301 13 82,290 (29,407) (26) 111,697
Insurance income 69,264 (2,055) (3) 71,319 1,849 3 69,470
Brokerage income 69,189 (3,037) (4) 72,226 (8,141) (10) 80,367
Bank owned life insurance income 56,419 377 1 56,042 (6,294) (10) 62,336
Capital markets fees 45,220 (2,940) (6) 48,160 11,620 32 36,540
Gain on sale of loans 18,171 (40,011) (69) 58,182 26,238 82 31,944
Securities gains (losses) 418 (4,351) (91) 4,769 8,450 N.R. (3,681)
Other income 125,059 (4,642) (4) 129,701 (15,952) (11) 145,653
Total noninterest income $ 997,995 $ (99,862) (9)% $ 1,097,857 $ 117,234 12 % $ 980,623
N
.R. - Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.
2013 vs. 2012
Noninterest income decreased $99.9 million, or 9%, from the prior year, primarily reflecting:
x $64.2 million, or 34%, decrease in mortgage banking income primarily driven by 9% reduction in volume, lower gain on sale
margin, and a higher percentage of originations held on the balance sheet.
x $40.0 million, or 69%, decrease in gain on sale of loans as no auto loan securitizations occurred in 2013 compared to $2.3
billion of auto loan securitizations in 2012.
x $4.6 million, or 4%, decrease in other income as the prior year included an $11.2 million bargain purchase gain associated
with the FDIC-assisted Fidelity Bank acquisition partially offset by an increase in fees associated with commercial loan
activity.
x $4.4 million, or 91%, decrease in securities gains as the prior year had certain securities designated as available-for-sale that
were sold and the proceeds from those sales were reinvested into the held-to-maturity portfolio.
Partially offset by:
x $10.3 million, or 13%, increase in electronic banking income due to continued consumer household growth.
x $9.6 million, or 4%, increase in service charges on deposit accounts reflecting 8% consumer household and 6% commercial
relationship growth and changing customer usage patterns. This more than offset the approximately $28.0 million negative
impact of the February 2013 implementation of a new posting order for consumer transaction accounts.
2012 vs. 2011
Noninterest income increased $117.2 million, or 12%, from the prior year, primarily reflecting:
x $107.7 million, or 129%, increase in mortgage banking income. This primarily reflected a $78.6 million increase in
origination and secondary marketing income. Additionally, we recorded a $14.3 million net trading gain related to MSR
hedging in 2012 compared to a net trading loss related to MSR hedging of $11.9 million in 2011.
x $26.2 million, or 82%, increase in gain on sale of loans.