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Huntington Bancshares Annual Report (Amendment), Year Ended Dec 31, 2002

Filing Date
Filed November 14, 2003
Period End
December 31, 2002
In the record · 2016–202610-K1110-Q338-K254

HBAN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 254 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · Jun ’19Jun ’19
  3. Material agreement8-K · Aug ’21Aug ’21
  4. Material agreement8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K/A filed November 14, 2003. Cited figures are marked; the original filing is the authoritative source.

Huntington Bancshares Incorporated's Form 10-K/A (Amendment No. 2) for fiscal year 2002 restates previously reported results to correct timing errors and apply deferral accounting for loan and lease origination fees and costs.

It also incorporates Amendment No. 1, which reclassified certain automobile leases from direct financing to operating lease accounting. Restated 2002 net income is $323.7 milliona, or $1.33 per diluted share, versus $134.8 million, or $0.54 per diluted share, in 2001 and $322.4 million, or $1.29 per diluted share, in 2000. The filing states that the amendment speaks as of the original March 20, 2003 filing date and has not been updated for later events.

The cumulative effect of the Amendment No. 2 restatement reduced retained earnings at December 31, 2002 by $100.7 millionb. Restated total assets at year-end 2002 were $27.43 billion, and shareholders' equity was $2.19 billion. Net income for 2002 was reduced by $9.3 million by the restatement, with a $0.03 per-share impact.

Reported 2002 results include a $182.5 millionc pre-tax gain on the sale of the Florida banking operations and a $24.6 million Merchant Services gain. Operating-basis net income was $279.7 million, or $1.15 per diluted share.

The filing reports a Tier 1 risk-based capital ratio of 8.34%d, a total risk-based capital ratio of 11.25%, and a Tier 1 leverage ratio of 8.51% at December 31, 2002. It also states that the bank subsidiary would have been classified as adequately capitalized but not well-capitalized because of the restatements, and that management expects it to return to well-capitalized status by the end of the second quarter of 2003.

02—Key points

Key Highlights

  1. Restated 2002 net income of $323.7 million, or $1.33 per diluted share, includes a $182.5 million pre-tax gain on the sale of Florida banking operations and a $24.6 million Merchant Services gain.
  2. Amendment No. 2 reduced cumulative retained earnings at December 31, 2002 by $100.7 million and reduced 2002 net income by $9.3 million ($0.03 per diluted share).
  3. Operating-basis 2002 net income was $279.7 million, or $1.15 per diluted share, compared with $246.6 million, or $0.98 per diluted share, in 2001.
  4. Restated total assets were $27.43 billion and shareholders' equity was $2.19 billion at December 31, 2002.
  5. Tier 1 risk-based capital ratio of 8.34%, total risk-based capital ratio of 11.25%, and Tier 1 leverage ratio of 8.51% at year-end 2002.
  6. Because of the restatements, the bank subsidiary would have been classified as adequately capitalized but not well-capitalized; management expected it to regain well-capitalized status by the end of the second quarter of 2003.
  7. Automobile leases originated before May 2002 were reclassified to operating leases, with $2.2 billion of operating lease assets at year-end 2002.

03—Questions

Frequently Asked Questions

  1. Why did Huntington restate its 2002 and 2001 financial results?

    Amendment No. 2 corrects timing errors in recognizing certain revenues and expenses and applies deferral accounting to loan and lease origination fees and costs on a retroactive basis. Amendment No. 1 separately reclassified certain automobile leases from direct financing to operating lease accounting because of residual value insurance provisions.

  2. How much did the restatement change 2002 earnings?

    The restatement reduced 2002 net income by $9.3 million, or $0.03 per diluted share. Cumulative retained earnings at December 31, 2002 were reduced by $100.7 million.

  3. What one-time items affected 2002 reported results?

    Reported 2002 results include a $182.5 million pre-tax gain on the sale of the Florida banking operations and a $24.6 million pre-tax Merchant Services gain. Pre-tax restructuring charges were $49.0 million. Excluding these items, operating-basis net income was $279.7 million, or $1.15 per diluted share.

  4. What was the bank's capital position after the restatement?

    At December 31, 2002, the holding company's Tier 1 risk-based capital ratio was 8.34%, its total risk-based capital ratio was 11.25%, and its Tier 1 leverage ratio was 8.51%. The filing states that the bank subsidiary would have been classified as adequately capitalized but not well-capitalized because of the restatements, and management expected it to return to well-capitalized status by the end of the second quarter of 2003.

04—Continue

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