Huntington National Bank 2015 Annual Report Download - page 84

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(1) Checking account required.
(2) The definitions and measurements used in our OCR process are periodically reviewed and updated prospectively.
By focusing on targeted relationships we are able to achieve higher product service penetration among our commercial
relationships, and leverage these relationships to generate a deeper share of wallet. The percent of commercial relationships with 4 or
more product services at the end of 2015 was 44.3%, up from 41.9% at the end of last year. Total commercial relationship revenue in
2015 was $890 million, up $39 million, or 5%, from 2014.
Retail and Business Banking
Table 35 - Key Performance Indicators for Retail and Business Banking
(dollar amounts in thousands unless otherwise noted)
Year ended December 31, Change from 2014
2015 2014 Amount Percent 2013
Net interest income $ 1,030,238 $ 912,992 $ 117,246 13% $ 902,526
Provision for credit losses 42,828 75,529 (32,701) (43) 137,978
Noninterest income 440,261 409,746 30,515 7 398,065
Noninterest expense 1,029,727 982,288 47,439 5 964,193
Provision for income taxes 139,280 92,722 46,558 50 69,447
Net income $ 258,664 $ 172,199 $ 86,465 50% $ 128,973
Number of employees (average full-time equivalent) 5,449 5,239 210 4% 5,212
Total average assets (in millions) $ 15,645 $ 14,861 $ 784 5 $ 14,371
Total average loans/leases (in millions) 13,637 13,034 603 5 12,638
Total average deposits (in millions) 30,138 29,023 1,115 4 28,309
Net interest margin 3.49% 3.19% 0.30 % 9 3.22%
NCOs $ 62,721 $ 90,628 $ (27,907) (31) $ 131,377
NCOs as a % of average loans and leases 0.46% 0.70% (0.24)% (34) 1.04%
2015 vs. 2014
Retail and Business Banking reported net income of $259 million in 2015. This was an increase of $86 million, or 50%,
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:
• $1.1 billion, or 4%, increase in total average deposits and a 23 basis point increase in deposit spreads, as a result of an
increase in the funds transfer price rates assigned to deposits.
• $0.6 billion or 5%, increase in total average loans combined with a 10 basis point increase in loan spreads, as a result of a
reduction in the funds transfer price rates assigned to loans and improved effective rates.
The decrease in the provision for credit losses from the year-ago period reflected:
• $28 million, or 31%, decrease in NCOs, and updated assumptions made to the ACL estimation process.
The increase in total average loans and leases from the year-ago period reflected:
• $0.3 billion, or 7%, increase in commercial loans, primarily due to the impact of core portfolio growth.
• $0.3 billion, or 4%, increase in consumer loans, primarily due to growth in home equity lines of credit, credit card, and
residential mortgages, as well as the impact of the Camco acquisition in the 2014 first quarter.
The increase in total average deposits from the year-ago period reflected:
• $0.6 billion in combined deposit growth due to household growth, the Camco acquisition in the 2014 first quarter and the
Bank of America branch acquisition in the 2014 third quarter.
• $0.3 billion deposit growth from our In-store branch network.
The increase in noninterest income from the year-ago period reflected: