Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Goldman Sachs US Financial Services Conference 2016
19 slides from Huntington Bancshares's conference presentation, Dec 7, 2016
Slide 1: Huntington Bancshares Incorporated - Goldman Sachs US Financial Services Conference
Welcome ©2016 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN) Huntington Bancshares Incorporated Goldman Sachs US Financial Services Conference December 7, 2016 Exhibit 99.1
Slide 2: Disclaimer: Caution Regarding Forward-Looking Statements
2 Disclaimer 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's Core Strategy Implemented in 2009
3 Huntington’s Core Strategy Implemented in 2009 Grow market share and share of wallet 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
Slide 4: FirstMerit Acquisition Milestones
4 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 an
Slide 5: Significant Branch Overlap Drives Consolidation
Significant Branch Overlap Drives Consolidation #1 Branch Share in Ohio and in Michigan provides immediate and future consolidation opportunities 5 Michigan: • # 1 (14%) branch market share • #6 (8%) deposit market share • 20% of total HBAN deposits Sources: FDIC, SNL Financial Ohio: • #1 (15%) bran
Slide 6: Implementation of Cost Savings on Pace
Implementation of Cost Savings on Pace 6 Significant progress toward achieving ~$255 million annualized cost savings target: o Approximately 25% implemented during 3Q16 o Expect to have 50% implemented by year end o The majority of remaining cost savings to be implemented in 1Q17 coincident with o
Slide 7: Acquisition Accelerates Achievement of our Long-Term Financial Goals
7 L-T Goal 3Q16 (GAAP) 3Q16 Adjusted (1) (Non-GAAP) 2018 Target Revenue (FTE) Growth 4%-6% +24% +24% Expense Growth +Op Lev +35% +14% Efficiency Ratio 56%-59% 75% 58% NCO 35-55 bp 26 bp 26 bp ROTCE 13%-15% 7% 14% Acquisition Accelerates Achievement of our Long-Term Financial Goals 59% Cost s
Slide 8: Expected Impact of Purchase Accounting
Expected Impact of Purchase Accounting 8 • Reflects purchase accounting impact exclusively related to the FirstMerit acquisition • Projected purchase accounting accretion represents scheduled amortization, and does not include impact of any accelerated payoffs.
Slide 9: Opportunity to Expand Fee Income at FirstMerit
9 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 10: Revenue Enhancement Opportunities Provide Additional Upside
Revenue Enhancements Opportunities Provide Additional Near-Term and Long-Term Upside 10 (1) Source: businesses with less than 500 employees, 2013 County Business Patterns, U.S. Census Bureau Home Lending Expansion • Annual loan production opportunity of up ~$900 million within two years • Began recr
Slide 11: Initial 2017 Expectations
Budgeting for unchanged interest rates for remainder of 2016 and 2017 Full year revenue growth of 20%+ Targeting positive operating leverage o Implementation of all planned cost savings by 3Q17 Average balance sheet growth of 20%+ Net charge-offs below our long-term expectations of 35–55 b
Slide 12: Important Messages
Focus on delivery of consistent, through-the-cycle shareholder returns Consistent core strategy since 2009 o Focused on areas of expertise with sustainable competitive advantages: Consumer Banking, Small Business and Middle Market Commercial, and Auto Finance o Track record of achieving results
Slide 13: Appendix
Appendix 13
Slide 14: Huntington Bancshares Overview
Huntington Bancshares Overview Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $101 Billion Employees(1) - 14,511 Franchise: 14 (1) 3Q16 Average full-time equivalent (FTE) (2) Includes 26 Private Client Group Offices Branches 1,129(2) ATMs 1,979
Slide 15: Huntington's Peer Group
Huntington’s Peer Group 15 $ in millions Total Assets Total Deposits Total Loans Market Capitalization Price / Dividend Yield Consensus 2017E Tangible Book PNC Financial Services Group, Inc. $369,348 $259,895 $210,446 $54,780 14.9x 1.7x 2.0% BB&T Corporation 222,622 159,915 142,423 37,196 15.0x 2.3x
Slide 16: Loan Portfolio Composition
16 Loan Portfolio Composition 3Q16 Average Balances
Slide 17: Deposit Composition
17 Deposit Composition 3Q16 Average Balances
Slide 18: Reconciliation: Noninterest Expense Growth, Efficiency Ratio, and ROTCE
Reconciliation Noninterest Expense Growth, Efficiency Ratio, and ROTCE 18 ($ in millions) GAAP Adjustment (1) Adjusted 3Q16 Noninterest expense $712 $159 (2) $553 3Q15 Noninterest expense $527 $43 (2) $483 3Q16 Noninterest expense growth 35% 14% 3Q16: Noninterest expense $712 $159 (2) $553 Amortizat
Slide 19: Investor Relations Contact
Welcome ©2016 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN) Mark A. Muth Director of Investor Relations Office: 614.480.4720 E-mail: mark.muth@huntington.com
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