Huntington National Bank 2015 Annual Report Download - page 88

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• $4 million, or 15%, increase in personnel costs, primarily due to a higher number of employees, resulting from higher
production and business development activities, including community development.
2014 vs. 2013
AFCRE reported net income of $196 million in 2014, compared with a net income of $220 million in 2013. The $24 million
decrease included a $29 million, or 36%, decrease in the reduction in allowance for credit losses, $20 million, or 43%, decrease in
noninterest income partially offset by a $13 million, or 4%, increase in net interest income and a $13 million, or 11%, decrease in
provision for income taxes.
Regional Banking and The Huntington Private Client Group
Table 38 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
(dollar amounts in thousands unless otherwise noted)
Year ended December 31, Change from 2014
2015 2014 Amount Percent 2013
Net interest income $ 115,608 $ 101,839 $ 13,769 14 % $ 105,862
Provision (reduction in allowance) for credit losses 65 4,893 (4,828) (99) (5,376)
Noninterest income 153,160 173,550 (20,390) (12) 186,430
Noninterest expense 254,380 236,634 17,746 7 236,895
Provision for income taxes 5,013 11,852 (6,839) (58) 21,271
Net income $ 9,310 $ 22,010 $ (12,700) (58)% $ 39,502
Number of employees (average full-time equivalent) 977 1,022 (45) (4)% 1,065
Total average assets (in millions) $ 3,388 $ 3,812 $ (424) (11) $ 3,732
Total average loans/leases (in millions) 2,948 2,894 54 2 2,832
Total average deposits (in millions) 7,272 6,029 1,243 21 5,765
Net interest margin 1.61% 1.75% (0.14)% (8) 1.90%
NCOs $ 4,816 $ 8,143 $ (3,327) (41) $ 11,094
NCOs as a % of average loans and leases 0.16% 0.28% (0.12)% (43) 0.39%
Total assets under management (in billions)—eop $ 11.8 $ 14.8 $ (3.0) (20) $ 16.7
Total trust assets (in billions)—eop 81.6 81.5 0.1 — 80.9
eop—End of Period.
2015 vs. 2014
RBHPCG reported net income of $9 million in 2015. This was a decrease of $13 million, or 58%, when compared to the year-
ago period. The decrease in net income reflected a combination of factors described below.
The increase in net interest income from the year-ago period reflected:
• $1.2 billion, or 21%, increase in average total deposits, primarily due to growth in commercial money market deposits.
The decrease in the provision for credit losses reflected from the year-ago period reflected:
• $3 million, or 41%, decrease in NCOs and updated assumptions made to the ACL estimation process.
The decrease in noninterest income from the year-ago period reflected:
• $10 million, or 9%, decrease in trust services, primarily related to a decline in assets under management mainly from the
decline in proprietary mutual funds following the 2014 second quarter transition of the fixed income and 2015 transition of
the remaining Huntington Funds to a third-party and the movement of the fiduciary trust business to a more open
architecture platform.
• $6 million, or 14%, decrease in brokerage income, primarily reflecting a shift from upfront commission income to trailing
commissions and an increase in the sale of new open architecture advisory products.
• $3 million, or 30%, decrease in other noninterest income, primarily related to 2014 Huntington Community Development
Corporation activity.