Huntington National Bank 2013 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2013 Huntington National Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 204

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204

74
Regional and Commercial Banking
Table 38 - Key Performance Indicators for Regional and Commercial Banking
Change from 2012
(dollar amounts in thousands unless otherwise noted) 2013 2012 Amount Percent 2011
N
et interest income $ 276,480 $ 273,869 $ 2,611 1 % $ 244,392
Provision for credit losses 16,982 10,689 6,293 59 11,013
N
oninterest income 140,639 138,454 2,185 2 127,315
N
oninterest expense 219,029 203,000 16,029 8 191,701
Provision for income taxes 63,388 69,522 (6,134) (9) 59,147
N
et income $ 117,720 $ 129,112 $ (11,392) (9)% $ 109,846
N
umber of employees (average full-time
equivalent) 668 630 38 6 % 592
Total average assets (in millions) $ 12,008 $ 10,961 $ 1,047 10 $ 9,283
Total average loans/leases (in millions) 11,185 10,076 1,109 11 8,326
Total average deposits (in millions) 5,871 5,324 547 10 3,882
N
et interest margin 2.59 % 2.80 % (0.21)% (8) 2.95 %
N
COs $ (2,927) $ 35,217 $ (38,144) (108) $ 39,568
N
COs as a % of average loans and leases (0.03)% 0.35 % (0.38)% (109) 0.48 %
Return on average common equity 10.6 14.8 (4.2) (28) 15.1
2013 vs. 2012
Regional and Commercial Banking reported net income of $117.7 million in 2013. This was a decrease of $11.4 million, or 9%,
compared to the year-ago period. The decrease in net income reflected a combination of factors described below.
The increase in net interest income from the year-ago period reflected:
x $1.1 billion, or 11%, increase in total average loans and leases.
x $0.5 billion, or 10%, increase in average total deposits.
Partially offset by:
x 21 basis point decrease in the net interest margin, primarily due to compressed deposit spreads resulting from declining rates
and reduced FTP rates.
The increase in total average loans and leases from the year-ago period reflected:
x $0.4 billion, or 18%, increase in the equipment finance portfolio average balance, primarily due to our focus on developing
vertical strategies in business aircraft, rail industry, lender finance, municipal, and syndications.
x $0.4 billion, or 39%, increase in the healthcare portfolio average balance, primarily due to a strategic focus on the banking
needs of the healthcare industry, specifically targeting alternate site real estate, seniors’ real estate, medical technology,
community hospitals, metro hospitals, and health care services.
x $0.3 billion, or 7%, in the middle market portfolio average balance, primarily in our major metro markets overcoming a $0.1
billion, or 4%, reduction in the funded balances of lines of credit due to a reduction in the average utilization rate.
The increase in total average deposits from the year-ago period reflected:
x $0.5 billion, or 10%, increase in core deposits, primarily due to a $0.3 billion, or 14%, increase in money market account
deposits and a $0.2 billion, or 8%, increase in noninterest-bearing demand deposits. Regional and Commercial Banking
initiated a strategic focus to gain a deeper share of wallet with certain key relationships. This focus was specifically targeted
to liquidity solutions for these customers and resulted in significant deposit growth. Middle market accounts, such as not-for-