Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — 2017 Barclays Americas Select Franchise Conference
27 slides from Huntington Bancshares's conference presentation, May 16, 2017
Slide 1: Welcome
Welcome ©2017 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN) Huntington Bancshares Incorporated 2017 Barclays Americas Select Franchise Conference May 16, 2017 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer 2 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and
Slide 3: Huntington Bancshares Overview
3 Huntington Bancshares Overview Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $100 Billion Employees(1) - 16,331 Franchise: (1) 1Q17 Average full-time equivalent (FTE) (2) Includes 12 Private Client Group Offices Branches 996(2) ATMs 1,855 %
Slide 4: Core Strategy Implemented in 2009
Core Strategy Implemented in 2009 Organically grow market share and share of wallet 4 Marketing: Expand industry-leading brand promise and delivery – “Category of One” Technology: Focus on Digitization, Omni-channel, Cyber-security Profitable Growth with Low Relative Volatility Customer Experience a
Slide 5: Actions Taken Since 2009 to Accelerate HBAN
5 Actions Taken Since 2009 to Accelerate HBAN Focused the Business Model Investing in the Franchise Built the Brand Disciplined Execution • Focus on Consumer, Small to Medium Enterprises (includes Commercial Real Estate), and Auto • Improve balance sheet mix (Deposits & Loans) • Intense execution an
Slide 6: Selected Recent Awards and Recognition
Selected Recent Awards and Recognition 6 #1 Small Business Administration 7(a) lender in the region (1) (Fiscal years: 2016, 2015, 2014, 2013, 2012, 2011, 2010, 2009) Greenwich Excellence Awards: • Middle Market Banking (2016, 2014, 2013, 2012) • Small Business Banking (2016, 2015, 2013) • Wealth an
Slide 7: FirstMerit Acquisition: Classic In-market Deal
7 FirstMerit Acquisition: Classic In-market Deal Expense Savings Drive Compelling Economics, while Revenue Enhancement Opportunities Provide Long-Term Upside Strong Cultural and Strategic Fit • Complementary businesses with similar cultures & customer profiles • Pro forma #2 deposit market share in
Slide 8: Pro forma deposit market share ranking vs. peers
Total U.S. Total % of Company MSAs 2016 Deposits Company Ranked No. 1 Top 3 Ranking Compete Efficiency Company (2) ($BN) MSAs in MSA in MSA with HBAN Ratio Wells Fargo & Co. 1,306$ 445 23.1% 65.8% 5.4% 60.0% Bank of America Corp. 1,261 224 12.1 57.6 3.6 65.2 Pro Forma HBAN + FMER 76 91 14.3 41.8 NA
Slide 9: Implementation of Cost Savings on Pace
9 Implementation of Cost Savings on Pace Significant progress toward achieving ~$255 million annualized cost savings target o Approximately 75% implemented by end of 1Q17 Expect to implement all cost savings within one year of acquisition closing Excludes intangible amortization expense and Si
Slide 10: Opportunity to Expand Fee Income at FirstMerit
10 Opportunity to Expand Fee Income at FirstMerit Revenue Synergies Not Modeled into Deal Economics Restoring the Noninterest Income contribution to 34% of Total Revenues represents an approximately $100 million revenue opportunity.
Slide 11: Revenue Enhancements Opportunities Provide Additional Upside
11 Revenue Enhancements Opportunities Provide Additional Near-Term and Long-Term Upside Home Lending Expansion • Annual loan production opportunity of up ~$900 million within two years • Began recruiting prior to closing; 100 total incremental FTEs • Revenue opportunity of $17 million in 2017 and $2
Slide 12: DFAST Supervisory Severely Adverse Scenario
DFAST Supervisory Severely Adverse Scenario Projected cumulative loan losses among lowest in regional banks 12 Source: Federal Reserve (1) 2016 Huntington results inclusive of FirstMerit acquisition
Slide 13: Best-in-Class Balance Sheet Efficiency Optimization Strategy
13 Best-in-Class Balance Sheet Efficiency Optimization Strategy Completed During 4Q16: Optimized Structure, Enhanced Flexibility, and Improved Capital Efficiency Completed actions: o Sale of approximately $0.9 billion of non-relationship based C&I and CRE product that provided inadequate returns;
Slide 14: Acquisition Accelerates Achievement of our Long-Term Financial Goals
14 Acquisition Accelerates Achievement of our Long-Term Financial Goals 59% Cost savings 56% Cost savings plus rates Efficiency Ratio (1) See reconciliation on slides 26 & 27
Slide 15: Important Messages
Substantially complete with FirstMerit integration; confidence in delivery of cost savings and revenue enhancements Focused on three areas with sustainable competitive advantages o Consumer o Small to Medium Enterprises (including Commercial Real Estate) o Auto Consistent core strategy since 2
Slide 16: Appendix
Appendix 16
Slide 17: Huntington's Peer Group
Huntington’s Peer Group 17 Source: SNL Data as of 5/5/17
Slide 18: Deeply Engaged, Diverse Board of Directors
Deeply Engaged, Diverse Board of Directors Lizabeth Ardisana Principal / CEO, ASG Renaissance, LLC Gina D. France President and CEO, France Strategic Partners LLC Eddie R. Munson Retired Managing Partner and Director, KPMG LLC Ann ("Tanny") B. Crane President and CEO, Crane Group Company J. Michael
Slide 19: Risk Management is at the Core
• Board defined aggregate moderate-to-low risk appetite • Board and CEO set the “Tone at the Top” • Strong risk management processes; 3 lines of defense, data driven, concentrations & limits, high accountability • Significant investment in risk management personnel and process • “Everyone Owns Risk”
Slide 20: Management and Shareholder Alignment
Management and Shareholder Alignment 20 Incentive plan structures Hold-to-retirement / exit requirements on equity grants and awards Short-term incentive plan cash payout capped at 100% of target for executive leadership and senior managers; portions above 100% paid in RSUs (restricted stock uni
Slide 21: Our Commitment to Environmental, Social, & Governance (ESG)
Our Commitment to Environmental, Social, & Governance (ESG) 21 • Published in May 2017, our first ESG Annual Report signals our commitment to provide transparency and accountability in alignment with global standards for environmental, social, and governance considerations. • While the report is new
Slide 22: Footprint Economic Indicators
22 Footprint Economic Indicators Leading indicators signal optimism for 2017 Sources: US Bureau of Labor Statistics; Federal Reserve Bank of Philadelphia • According to the Philadelphia FRB coincident economic indicator, economic activity in Michigan, Ohio, and Indiana has grown faster than the U.S.
Slide 23: Expected Impact of Purchase Accounting
23 Expected Impact of Purchase Accounting Accelerated accretion continues to pull forward scheduled PAA • Reflects purchase accounting impact exclusively related to the FirstMerit acquisition • Projected purchase accounting accretion represents scheduled amortization, and does not include impact of
Slide 24: FirstMerit Acquisition Milestones
24 FirstMerit Acquisition Milestones Effectively Managing Execution Risk is THE Immediate Focus Back Office Consolidations (1Q17) Acquisition Closing Integration Execution Branch Divestiture Closing (4Q16) Network & Equipment Upgrades, and Permanent Signage Installed (4Q16) Standalone Applications a
Slide 25: FirstMerit Branch Conversion and Technology Conversions Completed
FirstMerit Branch Conversion and Majority of Technology Conversions Completed Over President’s Day Holiday Weekend in February • Over 1,000 total colleagues, including 200 technology colleagues, involved • Over 350 applications converted • Over 750 TB of data converted • 24 segment / business unit t
Slide 26: Reconciliation: Revenue, Noninterest Income, and Noninterest Expense Growth
26 Reconciliation Revenue, Noninterest Income, and Noninterest Expense Growth (1) Significant items related to FirstMerit acquisition related net expenses; (2) Pre-tax
Slide 27: Reconciliation: Efficiency Ratio and ROTCE
27 Reconciliation Efficiency Ratio and ROTCE (1) Significant items related to FirstMerit acquisition related net expenses; (2) Pre-tax (3) After-tax
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