Huntington National Bank 2015 Annual Report Download - page 52

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Adjusted Noninterest Expense (Non-GAAP):
Year Ended December 31, Change from 2014 Change from 2013
(dollar amounts in thousands) 2015 2014 2013 Amount Percent Amount Percent
Personnel costs $ 1,116,725 $ 1,028,925 $ 1,028,886 $ 87,800 9% $ 39 —%
Outside data processing and other
services 226,988 207,079 198,197 19,909 10 8,882 4
Equipment 124,847 117,415 104,429 7,432 6 12,986 12
Net occupancy 117,294 116,923 113,227 371 — 3,696 3
Marketing 52,185 49,203 51,185 2,982 6 (1,982) (4)
Professional services 45,204 57,327 40,587 (12,123) (21) 16,740 41
Deposit and other insurance expense 44,609 49,044 50,161 (4,435) (9) (1,117) (2)
Amortization of intangibles 27,867 39,277 41,364 (11,410) (29) (2,087) (5)
Other expense 161,822 151,670 140,432 10,152 7 11,238 8
Total adjusted noninterest expense $ 1,917,541 $ 1,816,863 $ 1,768,468 $ 100,678 6% $ 48,395 3%
2015 vs. 2014
Noninterest expense increased $94 million, or 5%, from 2014:
• $73 million, or 7%, increase in personnel costs. Excluding the impact of significant items, personnel costs increased
$88 million, or 9%, reflecting a $79 million increase in salaries related to the 2015 second quarter implementation of
annual merit increases, the addition of Huntington Technology Finance, and a 3% increase in the number of average
full-time equivalent employees, largely related to the build-out of the in-store strategy.
• $26 million, or 15%, increase in other noninterest expense. Excluding the impact of significant items, other noninterest
expense increased $10 million, or 7%, due to an increase in operating lease expense related to Huntington Technology
Finance.
• $19 million, or 9%, increase in outside data processing and other services. Excluding the impact of significant items,
outside data processing and other services increased $20 million, or 10%, 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.
Partially offset by:
• $11 million, or 29%, decrease in amortization of intangibles reflecting the full amortization of the core deposit
intangible at the end of the 2015 second quarter from the Sky Financial acquisition.
• $9 million, or 16%, decrease in professional services. Excluding the impact of significant items, professional services
decreased $12 million, or 21%, reflecting a decrease in outside consultant expenses related to strategic planning.
• $6 million, or 5%, decrease in net occupancy. Excluding the impact of significant items, net occupancy remained
relatively unchanged.
2014 vs. 2013
Noninterest expense increased $124 million, or 7%, from 2013:
• $47 million, or 5%, increase in personnel costs. Excluding the impact of significant items, personnel costs were
relatively unchanged.
• $33 million, or 24%, increase in other noninterest expense. Excluding the impact of significant items, other noninterest
expense increased $11 million, or 8%, due to an increase in state franchise taxes, protective advances, and litigation
expense.
• $19 million, or 47%, increase in professional services. Excluding the impact of significant items, professional services
increased $16 million, or 41%, reflecting an increase in outside consultant expenses related to strategic planning and
legal services.
• $13 million, or 7%, increase in outside data processing and other services. Excluding the impact of significant items,
outside data processing and other services increased $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.