Huntington National Bank 2014 Annual Report Download - page 44

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Provision for Credit Losses
(This section should be read in conjunction with the Credit Risk section.)
The provision for credit losses is the expense necessary to maintain the ALLL and the AULC at levels appropriate to absorb our
estimate of credit losses in the loan and lease portfolio and the portfolio of unfunded loan commitments and letters-of-credit.
The provision for credit losses in 2014 was $81.0 million, down $9.1 million, or 10%, from 2013, reflecting a $64.0 million, or
34%, decrease in NCOs. The provision for credit losses in 2014 was $43.6 million less than total NCOs.
The provision for credit losses in 2013 was $90.0 million, down $57.3 million, or 39%, from 2012, reflecting a $153.8 million, or
45%, decrease in NCOs. The provision for credit losses in 2013 was $98.6 million less than total NCOs.
Noninterest Income
(This section should be read in conjunction with Significant Item 6.)
The following table reflects noninterest income for the past three years:
Table 7 - Noninterest Income
Twelve Months Ended December 31,
Change from 2013 Change from 2012
(dollar amounts in thousands) 2014 Amount Percent 2013 Amount Percent 2012
Service charges on deposit accounts $ 273,741 $ 1,939 1 % $ 271,802 $ 9,623 4 % $ 262,179
Trust services 115,972 (7,035) (6) 123,007 1,110 1 121,897
Electronic banking 105,401 12,810 14 92,591 10,301 13 82,290
Mortgage banking income 84,887 (41,968) (33) 126,855 (64,237) (34) 191,092
Brokerage income 68,277 (1,347) (2) 69,624 (3,060) (4) 72,684
Insurance income 65,473 (3,791) (5) 69,264 (2,055) (3) 71,319
Bank owned life insurance income 57,048 629 1 56,419 377 1 56,042
Capital markets fees 43,731 (1,489) (3) 45,220 (2,940) (6) 48,160
Gain on sale of loans 21,091 2,920 16 18,171 (40,011) (69) 58,182
Securities gains (losses) 17,554 17,136 4,100 418 (4,351) (91) 4,769
Other income 126,004 (12,821) (9) 138,825 1,118 1 137,707
Total noninterest income $ 979,179 $ (33,017) (3)% $ 1,012,196 $ (94,125) (9)% $ 1,106,321
2014 vs. 2013
Noninterest income decreased $33.0 million, or 3%, from the prior year, primarily reflecting:
x $42.0 million, or 33%, decrease in mortgage banking income primarily driven by a $27.7 million, or 33%, reduction in
origination and secondary marketing revenue as originations decreased and gain-on-sale margins compressed, and a $14.2
million negative impact from net MSR hedging activity.
x $12.8 million, or 9%, decrease in other income primarily due to a decrease in LIHTC gains and lower fees associated with
commercial loan activity.
x $7.0 million, or 6%, decrease in trust services primarily due to a reduction in fees.
Partially offset by:
x $17.1 million increase in securities gains as we adjusted the mix of our securities portfolio to prepare for the LCR
requirements.
x $12.8 million, or 14%, increase in electronic banking income due to higher card related income and underlying customer
growth.