Huntington National Bank 2015 Annual Report Download - page 85

77
• $14 million, or 14%, increase in cards and payment processing income, primarily due to higher debit and credit card-
related transaction volumes and an increase in the number of households.
• $9 million, or 60%, increase in mortgage banking income, primarily driven by increased referrals to Home Lending due to
an improved mortgage refinance market.
• $7 million, or 41%, increase in gain on sale of loans, primarily due to increased SBA loan sale volumes.
The increase in noninterest expense from the year-ago period reflected:
• $28 million, or 10%, increase in personnel costs, primarily due to the Bank of America branch acquisition in the 2014 third
quarter and the Camco acquisition in the 2014 first quarter, along with the expansion of our In-store branch network. The
increase also reflects additional cost from increased employee benefit expense and annual merit salary adjustments and
incentives.
• $19 million, or 4%, increase in other noninterest expense, primarily reflecting an increase in allocated overhead expense
and additional expense related to the Bank of America branch and the Camco acquisitions.
• $7 million, or 16%, increase in outside data processing and other services expense, mainly the result of transaction volumes
associated with debit and credit card activity.
• $4 million, or 8%, increase in marketing, primarily due to direct mail campaigns in 2015.
Partially offset by:
• $11 million, or 41%, decrease in amortization of intangibles, reflecting the full amortization of the core deposit intangible
from the Sky Financial acquisition.
2014 vs. 2013
Retail and Business Banking reported net income of $172 million in 2014, compared with a net income of $129 million in 2013.
The $43 million increase included a $62 million, or 45%, decrease in provision for credit losses, a $12 million, or 3%, increase
noninterest income, and a $10 million, or 1%, increase in net interest income partially offset by a $23 million, or 34%, increase in
provision for income taxes and a $18 million, or 2%, increase in noninterest expense.
Commercial Banking
Table 36 - Key Performance Indicators for Commercial Banking
(dollar amounts in thousands unless otherwise noted)
Year ended December 31, Change from 2014
2015 2014 Amount Percent 2013
Net interest income $ 365,181 $ 306,434 $ 58,747 19% $ 281,461
Provision for credit losses 49,460 31,521 17,939 57 27,464
Noninterest income 258,191 209,238 48,953 23 200,573
Noninterest expense 283,448 249,300 34,148 14 254,629
Provision for income taxes 101,662 82,198 19,464 24 69,979
Net income $ 188,802 $ 152,653 $ 36,149 24% $ 129,962
Number of employees (average full-time equivalent) 1,136 1,026 110 11% 1,072
Total average assets (in millions) $ 16,038 $ 14,145 $ 1,893 13 $ 11,821
Total average loans/leases (in millions) 12,757 11,901 856 7 10,804
Total average deposits (in millions) 11,246 10,207 1,039 10 9,429
Net interest margin 2.69% 2.53% 0.16% 6 2.72%
NCOs $ 22,226 $ 7,852 $ 14,374 183 $ (196)
NCOs as a % of average loans and leases 0.17 0.07 0.10% 143 —%
2015 vs. 2014
Commercial Banking reported net income of $189 million in 2015. This was an increase of $36 million, or 24%, 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: