Huntington National Bank 2014 Annual Report Download - page 75

69
On January 22, 2015, our board of directors also declared a quarterly cash dividend on our Floating Rate Series B Non-
Cumulative Perpetual Preferred Stock of $7.38 per share. The dividend is payable on April 15, 2015. Also, cash dividends of $7.33,
$7.33, $7.32 and $7.35 per share were declared on October 15, 2014, July 16, 2014, April 16, 2014 and January 16, 2014,
respectively.
Share Repurchases
From time to time the board of directors authorizes the Company to repurchase shares of our common stock. Although we
announce when the board of directors authorizes share repurchases, we typically do not give any public notice before we repurchase
our shares. Future stock repurchases may be private or open-market repurchases, including block transactions, accelerated or delayed
block transactions, forward transactions, and similar transactions. Various factors determine the amount and timing of our share
repurchases, including our capital requirements, the number of shares we expect to issue for employee benefit plans and acquisitions,
market conditions (including the trading price of our stock), and regulatory and legal considerations, including the FRB’s response to
our capital plan.
On March 26, 2014, Huntington announced that the Federal Reserve did not object to Huntington's proposed capital actions
included in Huntington's capital plan submitted to the Federal Reserve in January 2014. These actions included a potential repurchase
of up to $250 million of common stock from the second quarter of 2014 through the first quarter of 2015. Huntington’s board of
directors authorized a share repurchase program consistent with Huntington’s capital plan. This repurchase authorization represents a
$23 million, or 10%, increase from the prior common stock repurchase authorization. During 2014, we repurchased 35.7 million
shares, with a weighted average price of $9.37. Purchases of common stock may include open market purchases, privately negotiated
transactions, and accelerated repurchase programs. We have approximately $51.7 million remaining under the current authorization.
BUSINESS SEGMENT DISCUSSION
Overview
Our business segments are based on our internally-aligned segment leadership structure, which is how we monitor results and
assess performance. During the 2014 first quarter, we reorganized our business segments to drive our ongoing growth and leverage
the knowledge of our highly experienced team. We now have five major business segments: Retail and Business Banking,
Commercial Banking, Automobile Finance and Commercial Real Estate (AFCRE), Regional Banking and The Huntington Private
Client Group (RBHPCG), and Home Lending. A Treasury / Other function includes technology and operations, other unallocated
assets, liabilities, revenue, and expense. All periods presented have been reclassified to conform to the current period classification.
Business segment results are determined based upon our management reporting system, which assigns balance sheet and income
statement items to each of the business segments. The process is designed around our organizational and management structure and,
accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions.
Revenue Sharing
Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is recorded to allocate
portions of such revenue to other business segments involved in selling to, or providing service to customers. Results of operations
for the business segments reflect these fee sharing allocations.
Expense Allocation
The management accounting process that develops the business segment reporting utilizes various estimates and allocation
methodologies to measure the performance of the business segments. Expenses are allocated to business segments using a two-phase
approach. The first phase consists of measuring and assigning unit costs (activity-based costs) to activities related to product
origination and servicing. These activity-based costs are then extended, based on volumes, with the resulting amount allocated to
business segments that own the related products. The second phase consists of the allocation of overhead costs to all five business
segments from Treasury / Other. We utilize a full-allocation methodology, where all Treasury / Other expenses, except reported
Significant Items, and a small amount of other residual unallocated expenses, are allocated to the five business segments.