Huntington National Bank 2014 Annual Report Download - page 33

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Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations
INTRODUCTION
We are a multi-state diversified regional bank holding company organized under Maryland law in 1966 and headquartered in
Columbus, Ohio. Through the Bank, we have 149 years of servicing the financial needs of our customers. Through our subsidiaries,
we provide full-service commercial and consumer banking services, mortgage banking services, automobile financing, equipment
leasing, investment management, trust services, brokerage services, insurance service programs, and other financial products and
services. Our 715 branches are located in Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. Selected financial
services and other activities are also conducted in various other states. International banking services are available through the
headquarters office in Columbus, Ohio and a limited purpose office located in the Cayman Islands and another limited purpose office
located in Hong Kong. Our foreign banking activities, in total or with any individual country, are not significant.
This MD&A provides information we believe necessary for understanding our financial condition, changes in financial condition,
results of operations, and cash flows. The MD&A should be read in conjunction with the Consolidated Financial Statements, Notes to
Consolidated Financial Statements, and other information contained in this report.
Our discussion is divided into key segments:
x Executive Overview - Provides a summary of our current financial performance and business overview, including our
thoughts on the impact of the economy, legislative and regulatory initiatives, and recent industry developments. This section
also provides our outlook regarding our expectations for the next several quarters.
x Discussion of Results of Operations - Reviews financial performance from a consolidated Company perspective. It also
includes a Significant Items section that summarizes key issues helpful for understanding performance trends. Key
consolidated average balance sheet and income statement trends are also discussed in this section.
x Risk Management and Capital - Discusses credit, market, liquidity, operational, and compliance risks, including how these
are managed, as well as performance trends. It also includes a discussion of liquidity policies, how we obtain funding, and
related performance. In addition, there is a discussion of guarantees and / or commitments made for items such as standby
letters of credit and commitments to sell loans, and a discussion that reviews the adequacy of capital, including regulatory
capital requirements.
x Business Segment Discussion - Provides an overview of financial performance for each of our major business segments and
provides additional discussion of trends underlying consolidated financial performance.
x Results for the Fourth Quarter - Provides a discussion of results for the 2014 fourth quarter compared with the 2013 fourth
quarter.
x Additional Disclosures - Provides comments on important matters including forward-looking statements, critical accounting
policies and use of significant estimates, and recent accounting pronouncements and developments.
A reading of each section is important to understand fully the nature of our financial performance and prospects.
EXECUTIVE OVERVIEW
2014 Financial Performance Review
In 2014, we reported net income of $632.4 million, or $0.72 per common share, relatively unchanged from the prior year. This
resulted in a 1.01% return on average assets and a 11.8% return on average tangible common equity. In addition, we grew our base of
consumer and business customers as we increased 2014 average earning assets by $6.1 billion, or 12%, over the prior year. Our
strategic business investments and OCR sales approach continued to generate positive results in 2014. (Also, see Significant Items
Influencing Financial Performance Comparisons within the Discussion of Results of Operations.)