Huntington National Bank 2014 Annual Report Download - page 81
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75
Commercial Banking
Table 37 - Key Performance Indicators for Commercial Banking
Change from 2013
(dollar amounts in thousands unless otherwise noted) 2014 2013 Amount Percent 2012
N
et interest income $ 306,434 $ 281,461 $24,973 9 % $ 294,333
Provision for credit losses 31,521 27,464 4,057 15 4,602
N
oninterest income 209,238 200,573 8,665 4 197,191
N
oninterest expense 249,300 254,629 (5,329) (2) 248,157
Provision for income taxes 82,198 69,979 12,219 17 83,568
N
et income $ 152,653 $ 129,962 $ 22,691 17 % $ 155,197
N
umber of employees (average full-time equivalent) 1,026 1,072 (46) (4)% 1,023
Total average assets (in millions) $ 14,145 $ 11,821 $ 2,324 20 $ 10,986
Total average loans/leases (in millions) 11,901 10,804 1,097 10 9,913
Total average deposits (in millions) 10,207 9,429 778 8 9,033
N
et interest margin 2.53 % 2.72 % (0.19)% (7) 2.88 %
N
COs $ 7,852 $ (196) $ 8,048 N.
R
$ 30,497
N
COs as a % of average loans and leases 0.07 % --- % 0.07 % --- 0.31 %
Return on average common equity 10.6 11.1 (0.5) (5) 16.7
N
.R. - Not relevant, as denominator of calculation is a net recovery in prior period compared with net loss in current period.
2014 vs. 2013
Commercial Banking reported net income of $152.7 million in 2014. This was an increase of $22.7 million, or 17%, compared to
the year-ago period. The increase 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 10%, increase in average loans/leases.
x $0.9 billion, or 906%, increase in average available-for-sale securities, primarily related to direct purchase municipal
securities.
x $0.8 billion, or 8%, increase in average total deposits.
Partially offset by:
x 19 basis point decrease in the net interest margin, primarily due to a 9 basis point compression in commercial loan spreads,
driven by a 6 basis point compression stemming from growth in the international portfolio with products such as bankers
acceptances and foreign insured receivables, as well as compressed deposit margins resulting from declining rates and
reduced FTP rates.
The increase in the provision for credit losses from the year-ago period reflected:
x An increase related to loan growth and an $8.0 million increase in NCOs. The increase in NCOs primarily reflects a net
recovery in the prior year and the return to net charge-offs in 2014.