Huntington National Bank 2014 Annual Report Download - page 47

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2014 vs. 2013
Noninterest expense increased $124.3 million, or 7%, from 2013:
x $47.1 million, or 5%, increase in personnel costs. Excluding the impact of significant items, personnel costs were relatively
unchanged.
x $33.4 million, or 24%, increase in other noninterest expense. Excluding the impact of significant items, other noninterest
expense increased $11.2 million, or 8%, due to an increase in state franchise taxes, protective advances, and litigation
expense.
x $19.0 million, or 47%, increase in professional services. Excluding the impact of significant items, professional services
increased $16.7 million, or 41%, reflecting an increase in outside consultant expenses related to strategic planning and legal
services.
x $13.0 million, or 7%, increase in outside data processing and other services. Excluding the impact of significant items,
outside data processing and other services increased $8.9 million, or 4%, primarily reflecting higher debit and credit card
processing costs and increased other technology investment expense, as we continue to invest in technology supporting our
products, services, and our Continuous Improvement initiatives.
x $12.9 million, or 12%, increase in equipment. Excluding the impact of significant items, equipment increased $13.0 million,
or 12%, primarily reflecting higher depreciation expense.
2013 vs. 2012
Noninterest expense decreased $77.9 million, or 4%, from 2012, and primarily reflected:
x $57.8 million, or 29%, decline in other expense, reflecting a reduction in litigation expense, mortgage repurchases and
warranty expense, OREO and foreclosure costs, and reduction in operating lease expense.
x $25.2 million, or 38%, decrease in professional services, reflecting a decrease in outside consultant expenses and legal
services, primarily collections.
x $18.2 million, or 27%, decrease in deposit and other insurance expense due to lower insurance premiums.
x $13.1 million, or 20%, decrease in marketing, primarily reflecting lower levels of advertising, and reduced promotional
offers.
x $5.2 million, or 11%, decrease due to the continued amortization of core deposit intangibles.
Partially offset by:
x $14.2 million, or 13%, increase in net occupancy expense, reflecting $12.1 million of franchise repositioning expense related
to branch consolidation and facilities optimization.
x $13.4 million, or 1%, increase in personnel costs, primarily reflecting the $38.8 million increase in salaries due to a 4%
increase in the number of average full-time equivalent employees as employee count increased mainly in technology and
consumer areas and $6.7 million of franchise repositioning expense related to branch consolidation and severance expenses.
This was partially offset by the $33.9 million one-time, non-cash gain related to the pension curtailment.
x $9.3 million, or 5%, increase in outside data processing as we continue to invest in technology supporting our products,
services, and our Continuous Improvement initiatives.
x $3.9 million, or 4%, increase in equipment, including $2.4 million of branch consolidation and facilities optimization related
expenses.