Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
2003
(in thousands, except per share
amounts) Third Second First
Total Interest Income $333,320 $317,325 $320,014
Total Interest Expense 112,849 114,884 118,255
Net Interest Income 220,471 202,441 201,759
Provision for loan and lease losses 51,615 49,193 36,844
Net Interest Income After
Provision for Loan and Lease Losses 168,856 153,248 164,915
Operating lease income 117,624 128,574 138,193
Service charges on deposit accounts 42,294 40,914 39,869
Trust services 15,365 15,580 14,911
Brokerage and insurance income 13,807 14,196 15,497
Other service charges and fees 10,499 11,372 10,338
Bank Owned Life Insurance income 10,438 11,043 11,137
Mortgage banking 30,193 7,185 11,125
Merchant Services gain --- --- ---
Gain on sales of automobile loans --- 11,626 8,250
Gain on sale of branch offices 13,112 --- ---
Securities (losses) gains (4,107) 6,887 1,198
Other 23,543 29,574 22,406
Total Non-Interest Income 272,768 276,951 272,924
Personnel costs 113,170 105,242 113,089
Operating lease expense 93,134 102,939 111,588
Equipment 16,328 16,341 16,412
Outside data processing and other
services 17,478 16,104 16,579
Net occupancy 15,619 15,426 16,657
Professional services 11,116 9,872 9,285
Marketing 5,515 8,454 6,626
Telecommunications 5,612 5,394 5,701
Printing and supplies 3,658 2,253 3,681
Restructuring (releases) charges --- (5,315) (1,000)
Other 18,601 20,372 16,909
Total Non-Interest Expense 300,231 297,082 315,527
Income Before Income Taxes 141,393 133,117 122,312
Income taxes 37,213 36,659 30,613
Income before cumulative effect of
change in accounting principle 104,180 96,458 91,699
Cumulative effect of change in
accounting principle, net of tax (a) (13,330) --- ---
Net Income $90,850 $96,458 $91,699
Per Common Share
Income before cumulative effect of
change in accounting principle -
Diluted $0.45 $0.42 $0.39
Net Income - Diluted $0.39 $0.42 $0.39
Cash Dividends Declared $0.175 $0.16 $0.16
Return on:
Average total assets (b) 1.38% 1.38% 1.36%
Average total shareholders'
equity (b) 18.4% 18.0% 17.2%
Net interest margin (c) 3.46% 3.47% 3.63%
Efficiency ratio (d) 60.0% 62.6% 66.3%
Effective tax rate 26.3% 27.5% 25.0%
Revenue - Fully Taxable Equivalent
(FTE)
Net Interest Income $220,471 $202,441 $201,759
Tax Equivalent Adjustment (c) 2,558 2,076 2,096
Net Interest Income 223,029 204,517 203,855
Non-Interest Income 272,768 276,951 272,924
Total Revenue $495,797 $481,468 $476,779
Total Revenue Excluding Securities
(Losses) Gains $499,904 $474,581 $475,581
(a) Due to the prospective adoption of FASB Interpretation No. 46 for
variable interest entities.
(b) Based on income before cumulative effect of change in accounting
principle, net of tax.
(c) On a fully taxable equivalent basis assuming a 35% tax rate.
(d) Non-interest expense less amortization of intangible assets divided
by the sum of fully taxable equivalent net interest income and non-
interest income excluding securities (losses) gains.
N.M. - Not Meaningful.
Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
2002
(in thousands, except per share
amounts) Fourth Third
Total Interest Income $329,340 $324,177
Total Interest Expense 130,161 132,912
Net Interest Income 199,179 191,265
Provision for loan and lease losses 51,236 54,304
Net Interest Income After
Provision for Loan and Lease Losses 147,943 136,961
Operating lease income 149,259 160,164
Service charges on deposit accounts 41,435 37,706
Trust services 15,306 14,997
Brokerage and insurance income 13,941 13,664
Other service charges and fees 10,890 10,837
Bank Owned Life Insurance income 10,722 10,723
Mortgage banking 5,530 2,594
Merchant Services gain --- 24,550
Gain on sales of automobile loans --- ---
Gain on sale of branch offices --- ---
Securities (losses) gains 2,339 1,140
Other 22,433 22,227
Total Non-Interest Income 271,855 298,602
Personnel costs 110,231 100,662
Operating lease expense 120,747 125,743
Equipment 17,337 17,378
Outside data processing and other
services 17,209 15,128
Net occupancy 13,422 14,727
Professional services 9,111 9,680
Marketing 6,186 7,491
Telecommunications 5,714 5,609
Printing and supplies 3,999 3,679
Restructuring (releases) charges (7,211) ---
Other 32,616 19,450
Total Non-Interest Expense 329,361 319,547
Income Before Income Taxes 90,437 116,016
Income taxes 21,208 28,034
Income before cumulative effect of
change in accounting principle 69,229 87,982
Cumulative effect of change in
accounting principle, net of tax (a) --- ---
Net Income $69,229 $87,982
Per Common Share
Income before cumulative effect of
change in accounting
principle - Diluted $0.29 $0.36
Net Income - Diluted $0.29 $0.36
Cash Dividends Declared $0.16 $0.16
Return on:
Average total assets (b) 1.02% 1.35%
Average total shareholders'
equity (b) 12.7% 15.8%
Net interest margin (c) 3.62% 3.69%
Efficiency ratio (d) 69.9% 65.2%
Effective tax rate 23.5% 24.2%
Revenue - Fully Taxable Equivalent
(FTE)
Net Interest Income $199,179 $191,265
Tax Equivalent Adjustment (c) 1,869 1,096
Net Interest Income 201,048 192,361
Non-Interest Income 271,855 298,602
Total Revenue $472,903 $490,963
Total Revenue Excluding Securities
(Losses) Gains $470,564 $489,823
(a) Due to the prospective adoption of FASB Interpretation No. 46 for
variable interest entities.
(b) Based on income before cumulative effect of change in accounting
principle, net of tax.
(c) On a fully taxable equivalent basis assuming a 35% tax rate.
(d) Non-interest expense less amortization of intangible assets divided
by the sum of fully taxable equivalent net interest income and non-
interest income excluding securities (losses) gains.
N.M. - Not Meaningful.
Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
Third Quarter 2003
Percent Change vs.
(in thousands, except per share
amounts) 2Q03 3Q02
Total Interest Income 5.0 % 2.8 %
Total Interest Expense (1.8) (15.1)
Net Interest Income 8.9 15.3
Provision for loan and lease losses 4.9 (5.0)
Net Interest Income After
Provision for Loan and Lease Losses 10.2 23.3
Operating lease income (8.5) (26.6)
Service charges on deposit accounts 3.4 12.2
Trust services (1.4) 2.5
Brokerage and insurance income (2.7) 1.0
Other service charges and fees (7.7) (3.1)
Bank Owned Life Insurance income (5.5) (2.7)
Mortgage banking N.M. N.M.
Merchant Services gain --- (100.0)
Gain on sales of automobile loans (100.0) ---
Gain on sale of branch offices --- ---
Securities (losses) gains (159.6) N.M.
Other (20.4) 5.9
Total Non-Interest Income (1.5) (8.7)
Personnel costs 7.5 12.4
Operating lease expense (9.5) (25.9)
Equipment (0.1) (6.0)
Outside data processing and other
services 8.5 15.5
Net occupancy 1.3 6.1
Professional services 12.6 14.8
Marketing (34.8) (26.4)
Telecommunications 4.0 0.1
Printing and supplies 62.4 (0.6)
Restructuring (releases) charges --- ---
Other (8.7) (4.4)
Total Non-Interest Expense 1.1 (6.0)
Income Before Income Taxes 6.2 21.9
Income taxes 1.5 32.7
Income before cumulative effect of
change in
accounting principle 8.0 18.4
Cumulative effect of change in
accounting principle, net of tax (a) --- ---
Net Income (5.8)% 3.3 %
Per Common Share
Income before cumulative effect of
change in accounting principle - Diluted 7.1 % 25.0 %
Net Income - Diluted (7.1)% 8.3 %
Cash Dividends Declared 9.4 % 9.4 %
Return on:
Average total assets (b)
Average total shareholders'
equity (b)
Net interest margin (c)
Efficiency ratio (d)
Effective tax rate
Revenue - Fully Taxable Equivalent
(FTE)
Net Interest Income 8.9 % 15.3 %
Tax Equivalent Adjustment (c) 23.2 133.4
Net Interest Income 9.1 15.9
Non-Interest Income (1.5) (8.7)
Total Revenue 3.0 % 1.0 %
Total Revenue Excluding Securities
(Losses) Gains 5.3 % 2.1 %
(a) Due to the prospective adoption of FASB Interpretation No. 46 for
variable interest entities.
(b) Based on income before cumulative effect of change in accounting
principle, net of tax.
(c) On a fully taxable equivalent basis assuming a 35% tax rate.
(d) Non-interest expense less amortization of intangible assets divided
by the sum of fully taxable equivalent net interest income and non-
interest income excluding securities (losses) gains.
N.M. - Not Meaningful.
Huntington Bancshares Incorporated
Selected YTD Income Statement Data
Nine Months Ended
(in thousands, except per share September 30, Percent
amounts) 2003 2002 Change
Total Interest Income $970,659 $963,762 0.7 %
Total Interest Expense 345,988 413,367 (16.3)
Net Interest Income 624,671 550,395 13.5
Provision for loan and lease losses 137,652 143,190 (3.9)
Net Interest Income After
Provision for Loan and Lease Losses 487,019 407,205 19.6
Operating lease income 384,391 507,815 (24.3)
Service charges on deposit accounts 123,077 112,129 9.8
Trust services 45,856 46,745 (1.9)
Brokerage and insurance income 43,500 48,168 (9.7)
Mortgage banking 48,503 26,503 83.0
Bank Owned Life Insurance income 32,618 32,401 0.7
Other service charges and fees 32,209 31,998 0.7
Gain on sale of Florida operations --- 181,188 (100.0)
Merchant Services gain --- 24,550 (100.0)
Gain on sales of automobile loans 19,876 --- ---
Gain on sale of branch offices 13,112 --- ---
Securities gains 3,978 2,563 N.M.
Other 75,523 54,507 38.6
Total Non-Interest Income 822,643 1,068,567 (23.0)
Personnel costs 331,501 307,806 7.7
Operating lease expense 307,661 398,223 (22.7)
Equipment 49,081 50,986 (3.7)
Outside data processing and other
services 50,161 50,159 0.0
Net occupancy 47,702 46,323 3.0
Professional services 30,273 23,974 26.3
Marketing 20,595 21,725 (5.2)
Telecommunications 16,707 16,947 (1.4)
Printing and supplies 9,592 11,199 (14.3)
Restructuring (releases) charges (6,315) 56,184 (111.2)
Other 55,882 61,466 (9.1)
Total Non-Interest Expense 912,840 1,044,992 (12.6)
Income Before Income Taxes 396,822 430,780 (7.9)
Income taxes 104,485 177,245 (41.1)
Income before cumulative effect of
change in accounting principle 292,337 253,535 15.3
Cumulative effect of change in
accounting principle, net of tax (a) (13,330) --- ---
Net Income $279,007 $253,535 10.0 %
Per Common Share
Income before cumulative effect of
change in accounting
principle - Diluted $1.26 $1.03 22.3 %
Net Income - Diluted $1.21 $1.03 17.5 %
Cash Dividends Declared $0.495 $0.48 3.1 %
Return on:
Average total assets (b) 1.37% 1.32%
Average total shareholders' equity
(b) 17.8% 14.9%
Net interest margin (c) 3.52% 3.64%
Efficiency ratio (d) 62.9% 64.4%
Effective tax rate 26.3% 41.1%
Revenue - Fully Taxable Equivalent
(FTE)
Net Interest Income $624,671 $550,395 13.5 %
Tax Equivalent Adjustment (c) 6,730 3,336 101.7
Net Interest Income 631,401 553,731 14.0
Non-Interest Income 822,643 1,068,567 (23.0)
Total Revenue $1,454,044 $1,622,298 (10.4)
Total Revenue Excluding Securities
Gains $1,450,066 $1,619,735 (10.5)%
(a) Due to the prospective adoption of FASB Interpretation No. 46 for
variable interest entities.
(b) Based on income before cumulative effect of change in accounting
principle, net of tax.
(c) On a fully taxable equivalent basis assuming a 35% tax rate.
(d) Non-interest expense less amortization of intangible assets divided
by the sum of fully taxable equivalent net interest income and non-
interest income excluding securities gains.
N.M. - Not Meaningful.
Huntington Bancshares Incorporated
Quarterly Loan and Lease Loss Reserve and Net Charge-off Analysis
2003
(in thousands) Third Second First
Allowance for Loan and Lease Losses,
Beginning of Period $340,947 $337,017 $336,648
Loan and lease losses (43,261) (49,985) (40,265)
Recoveries of loans and leases
previously charged off 10,487 8,929 7,429
Net loan and lease losses (32,774) (41,056) (32,836)
Provision for loan and lease losses 51,615 49,193 36,844
Allowance of assets (sold) / purchased --- (3,477) (2,981)
Allowance of securitized loans (a) 10,347 (730) (658)
Allowance for Loan and Lease Losses,
End of Period $370,135 $340,947 $337,017
Allowance for loan and lease losses
as a % of total loans and leases 1.75 % 1.79 % 1.78 %
Allowance for loan and lease losses
as a % of non-performing loans and
leases 304 % 284 % 266 %
Allowance for loan and lease losses
as a % of non-performing assets 270 % 255 % 239 %
Net Charge-offs by Type
Commercial $12,222 $26,546 $14,904
Commercial real estate 3,621 607 546
Total commercial and commercial real
estate 15,843 27,153 15,450
Consumer
Automobile direct financing leases 1,450 1,422 920
Automobile loans 10,773 7,524 10,623
Home equity 3,416 3,671 4,053
Residential mortgage 246 267 145
Other loans 1,046 1,019 1,645
Total consumer 16,931 13,903 17,386
Total Net Charge-offs $32,774 $41,056 $32,836
Net Charge-offs as a % of Average Loans
and Leases
Commercial 0.91 % 1.89 % 1.06 %
Commercial real estate 0.36 0.06 0.06
Total commercial and commercial real
estate 0.68 1.14 0.66
Consumer
Automobile direct financing leases 0.36 0.44 0.37
Automobile loans 1.20 1.06 1.38
Home equity 0.39 0.44 0.50
Residential mortgage 0.05 0.06 0.03
Other loans 1.14 1.08 1.69
Total consumer 0.61 0.57 0.73
Net Charge-offs as a % of Average Loans
and Leases 0.64 % 0.85 % 0.69 %
(a) The third quarter 2003 includes the reserve for loan losses associated
with automobile loans contained in one of Huntington's securitization
trusts consolidated as a result of the adoption of FASB Interpretation
No. 46 on July 1, 2003.
Huntington Bancshares Incorporated
Quarterly Loan and Lease Loss Reserve and Net Charge-off Analysis
2002
(in thousands) Fourth Third
Allowance for Loan and Lease Losses,
Beginning of Period $371,033 $351,696
Loan and lease losses (93,890) (43,748)
Recoveries of loans and leases
previously charged off 10,732 9,963
Net loan and lease losses (83,158) (33,785)
Provision for loan and lease losses 51,236 54,304
Allowance of assets (sold) /
purchased --- 1,264
Allowance of securitized loans (a) (2,463) (2,446)
Allowance for Loan and Lease Losses,
End of Period $336,648 $371,033
Allowance for loan and lease losses
as a % of total loans and leases 1.81 % 2.08 %
Allowance for loan and lease losses
as a % of non-performing loans and
leases 263 % 182 %
Allowance for loan and lease losses
as a % of non-performing assets 246 % 173 %
Net Charge-offs by Type
Commercial $59,811 $16,837
Commercial real estate 7,536 4,085
Total commercial and commercial
real estate 67,347 20,922
Consumer
Automobile direct financing leases 730 202
Automobile loans 10,398 8,602
Home equity 3,526 2,934
Residential mortgage 72 123
Other loans 1,085 1,002
Total consumer 15,811 12,863
Total Net Charge-offs $83,158 $33,785
Net Charge-offs as a % of Average
Loans and Leases
Commercial 4.31 % 1.21 %
Commercial real estate 0.82 0.45
Total commercial and commercial
real estate 2.92 0.92
Consumer
Automobile direct financing leases 0.38 0.17
Automobile loans 1.41 1.23
Home equity 0.45 0.38
Residential mortgage 0.02 0.03
Other loans 1.09 0.98
Total consumer 0.71 0.62
Net Charge-offs as a % of Average
Loans and Leases 1.83 % 0.78 %
(a) The third quarter 2003 includes the reserve for loan losses associated
with automobile loans contained in one of Huntington's securitization
trusts consolidated as a result of the adoption of FASB Interpretation
No. 46 on July 1, 2003.
Huntington Bancshares Incorporated
YTD Loan and Lease Loss Reserve and Net Charge-off Analysis
Nine Months Ended
September 30,
(in thousands) 2003 2002
Allowance for Loan and Lease Losses,
Beginning of Period $336,648 $369,332
Loan and lease losses (133,511) (140,462)
Recoveries of loans and leases
previously charged off 26,845 26,708
Net loan and lease losses (106,666) (113,754)
Provision for loan and lease losses 137,652 143,190
Allowance of assets (sold) /
purchased (6,458) (21,033)
Allowance of securitized loans (a) 8,959 (6,702)
Allowance for Loan and Lease Losses,
End of Period $370,135 $371,033
Allowance for loan and lease losses
as a % of total loans and leases 1.75 % 2.08 %
Allowance for loan and lease losses
as a % of non-performing loans and
leases 304 % 182 %
Allowance for loan and lease losses
as a % of non-performing assets 270 % 173 %
Net Charge-offs by Type
Commercial $53,672 $57,951
Commercial real estate 4,774 10,105
Total commercial and commercial
real estate 58,446 68,056
Consumer
Automobile direct financing leases 3,792 700
Automobile loans 28,920 28,717
Home equity 11,140 9,980
Residential mortgage 658 800
Other loans 3,710 5,501
Total consumer 48,220 45,698
Total Net Charge-offs $106,666 $113,754
Net Charge-offs as a % of Average
Loans and Leases
Commercial 1.29 % 1.35 %
Commercial real estate 0.16 0.38
Total commercial and commercial
real estate 0.83 0.98
Consumer
Automobile direct financing leases 0.39 0.39
Automobile loans 1.22 1.43
Home equity 0.44 0.44
Residential mortgage 0.05 0.08
Other loans 1.31 1.68
Total consumer 0.63 0.78
Net Charge-offs as a % of Average
Loans and Leases 0.73 % 0.89 %
(a) 2003 includes the reserve for loan losses associated with automobile
loans contained in one of Huntington's securitization trusts
consolidated as a result of the adoption of FASB Interpretation No. 46
on July 1, 2003.
Huntington Bancshares Incorporated
Quarterly Non-Performing Assets and Past Due Loans and Leases
2003 2002
(in thousands) Third Second First Fourth Third
Non-accrual loans and
leases:
Commercial $82,413 $86,021 $94,754 $91,861 $147,392
Commercial real
estate 30,545 22,398 22,585 26,765 47,537
Residential mortgage 8,923 11,735 9,302 9,443 8,488
Total Nonaccrual Loans
and Leases 121,881 120,154 126,641 128,069 203,417
Renegotiated loans --- --- --- --- 37
Total Non-Performing
Loans and Leases 121,881 120,154 126,641 128,069 203,454
Other real estate, net 15,196 13,568 14,084 8,654 10,675
Total Non-Performing
Assets $137,077 $133,722 $140,725 $136,723 $214,129
Non-performing loans and
leases as a % of total
loans and leases 0.58% 0.63% 0.67% 0.69% 1.14%
Non-performing assets as
a % of total loans and
leases and other real
estate 0.65% 0.70% 0.74% 0.74% 1.20%
Accruing loans and
leases past due 90 days
or more $66,060 $55,287 $57,241 $61,526 $57,337
Accruing loans and
leases past due 90 days
or more as a percent of
total loans and leases 0.31% 0.29% 0.30% 0.33% 0.32%
2003 2002
(in thousands) Third Second First Fourth Third
Non-Performing Assets,
Beginning of Period $133,722 $140,725 $136,723 $214,129 $223,237
New non-performing
assets 52,213 83,104 48,359 65,506 47,275
Returns to accruing
status (319) (9,866) (5,993) (12,658) (380)
Loan and lease losses (22,090) (30,204) (17,954) (72,767) (25,480)
Payments (18,905) (26,831) (15,440) (28,500) (26,308)
Sales (7,544) (23,206) (4,970) (28,987) (4,215)
Non-Performing Assets,
End of Period $137,077 $133,722 $140,725 $136,723 $214,129
Huntington Bancshares Incorporated
Quarterly Stock Summary, Capital, and Other Data
Quarterly Common Stock Summary
2003 2002
Third Second First Fourth Third
High $20.890 $21.540 $19.800 $19.980 $20.430
Low 19.220 18.030 17.780 16.160 16.000
Close 19.850 19.510 18.590 18.710 18.190
Average closing price 20.199 19.790 18.876 18.769 19.142
Cash dividends declared $0.175 $0.16 $0.16 $0.16 $0.16
Common shares outstanding
(000s)
Average -- Basic 228,715 228,633 231,355 233,581 239,925
Average -- Diluted 230,966 230,572 232,805 235,083 241,357
Ending 228,870 228,660 228,642 232,879 237,544
Common Share Repurchase
Programs (000s) (A)
Number of shares repurchased --- --- 4,300 4,110 6,262
Note: Intra-day and closing stock price quotations were
obtained from NASDAQ.
Capital Data - End of Period
2003 2002
(in millions) Third(B) Second First Fourth Third
Total risk-weighted assets $28,042 $27,569 $27,436 $27,149 $26,229
Tier 1 risk-based capital
ratio 8.38% 8.32% 8.14% 8.32% 8.82%
Total risk-based capital
ratio 11.16% 11.12% 11.01% 11.22% 11.79%
Tier 1 leverage ratio 7.95% 8.26% 8.22% 8.49% 9.06%
Tangible Equity / Assets
Ratio 6.78% 7.07% 7.02% 7.23% 7.65%
Tangible Equity / Risk-
Weighted Assets Ratio 7.23% 7.20% 7.07% 7.27% 7.72%
Other Data - End of Period
2003 2002
Third Second First Fourth Third
Number of employees (full-
time equivalent) 8,054 8,093 8,134 8,177 8,117
Number of domestic full-
service banking offices (C) 337 341 342 343 336
(A) Under the current authorization, there were 3.9 million of shares
available to be repurchased at September 30, 2003.
(B) Estimated.
(C) Includes three Private Financial Group offices in Florida.
Huntington Bancshares Incorporated
Quarterly and YTD Operating Lease Performance
2003
Third Second First
Balance Sheet (in millions)
Average operating lease assets
outstanding $1,565 $1,802 $2,076
Income Statement (in thousands)
Net rental income $109,645 $120,502 $130,274
Fees 5,372 5,414 5,633
Recoveries - early terminations 2,607 2,658 2,286
Total Operating Lease Income 117,624 128,574 138,193
Depreciation and residual losses at
termination 83,112 91,387 99,283
Losses - early terminations 10,022 11,552 12,305
Total Operating Lease
Expense 93,134 102,939 111,588
Net Earnings Contribution $24,490 $25,635 $26,605
Earnings ratios (a)
Net rental income 28.02% 26.75% 25.10%
Depreciation 21.24% 20.29% 19.13%
Definition of terms:
Net rental income includes the lease payments earned on the vehicles that
Huntington leases to its customers under operating leases. Fees include late
fees, early payment fees and other non-origination fees. Recoveries represent
payments received on a cash basis subsequent to a customer's default on an
operating lease and a recognition of an impairment loss on the lease.
Depreciation represents the periodic depreciation of vehicles to their
residual value owned by Huntington under operating leases and any accelerated
depreciation where Huntington expects to receive less than the residual value
from the sale of the vehicle and from insurance proceeds at the end of the
lease term. Losses represent impairments recognized on vehicles where the
lessee has defaulted on the operating lease.
(a) As a percent of average operating lease assets, quarterly and
year-to-date amounts annualized.
Huntington Bancshares Incorporated
Quarterly and YTD Operating Lease Performance
2002
Fourth Third
Balance Sheet (in millions)
Average operating lease assets
outstanding $2,328 $2,597
Income Statement (in thousands)
Net rental income $139,610 $150,016
Fees 7,081 7,220
Recoveries - early terminations 2,568 2,928
Total Operating Lease Income 149,259 160,164
Depreciation and residual losses at
termination 106,399 112,900
Losses - early terminations 14,348 12,843
Total Operating Lease
Expense 120,747 125,743
Net Earnings Contribution $28,512 $34,421
Earnings ratios (a)
Net rental income 23.99% 23.11%
Depreciation 18.28% 17.39%
Definition of terms:
Net rental income includes the lease payments earned on the vehicles that
Huntington leases to its customers under operating leases. Fees include late
fees, early payment fees and other non-origination fees. Recoveries represent
payments received on a cash basis subsequent to a customer's default on an
operating lease and a recognition of an impairment loss on the lease.
Depreciation represents the periodic depreciation of vehicles to their
residual value owned by Huntington under operating leases and any accelerated
depreciation where Huntington expects to receive less than the residual value
from the sale of the vehicle and from insurance proceeds at the end of the
lease term. Losses represent impairments recognized on vehicles where the
lessee has defaulted on the operating lease.
(a) As a percent of average operating lease assets, quarterly and
year-to-date amounts annualized.
Huntington Bancshares Incorporated
Quarterly and YTD Operating Lease Performance
Nine Months
2003 2002
Balance Sheet (in millions)
Average operating lease assets
outstanding $1,812 $2,804
Income Statement (in thousands)
Net rental income $360,421 $475,715
Fees 16,419 21,589
Recoveries - early terminations 7,551 10,511
Total Operating Lease Income 384,391 507,815
Depreciation and residual losses at
termination 273,782 357,085
Losses - early terminations 33,879 41,138
Total Operating Lease
Expense 307,661 398,223
Net Earnings Contribution $76,730 $109,592
Earnings ratios (a)
Net rental income 26.52% 22.62%
Depreciation 20.15% 16.98%
Definition of terms:
Net rental income includes the lease payments earned on the vehicles that
Huntington leases to its customers under operating leases. Fees include late
fees, early payment fees and other non-origination fees. Recoveries represent
payments received on a cash basis subsequent to a customer's default on an
operating lease and a recognition of an impairment loss on the lease.
Depreciation represents the periodic depreciation of vehicles to their
residual value owned by Huntington under operating leases and an accelerated
depreciation where Huntington expects to receive less than the residual value
from the sale of the vehicle and from insurance proceeds at the end of the
lease term. Losses represent impairments recognized on vehicles where the
lessee has defaulted on the operating lease.
(a) As a percent of average operating lease assets, quarterly and
year-to-date amounts annualized.
SOURCE Huntington Bancshares Incorporated
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Related links:
http://www.huntington.com
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