Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Barclays Global Financial Services Conference 2016
15 slides from Huntington Bancshares's conference presentation, Sep 12, 2016
Slide 1: Huntington Bancshares Incorporated – Barclays Global Financial Services Conference
Welcome ©2016 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN) Huntington Bancshares Incorporated Barclays Global Financial Services Conference September 12, 2016 Exhibit 99.1
Slide 2: Disclaimer – Caution Regarding Forward-Looking Statements
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 u
Slide 3: Huntington's Core Strategy Implemented in 2009
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 an
Slide 4: FirstMerit Acquisition: Classic In-market Deal
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 sales and credit cultures Pro forma #1 deposit market share in OH, signi
Slide 5: Projected cost savings and integration planning
Zero-base budgeting by Finance Team allowed for unusual level of granularity during due diligence, then further refined during integration planning Projected cost savings = ~$255MM based on 2016 projected non-interest expense (excluding intangible amortization), expected to grow at ~3% per year Equa
Slide 6: Significant Branch Overlap Drives Consolidation
Significant Branch Overlap Drives Consolidation Pro Forma #1 Branch Share in Ohio and in Michigan provides immediate and future consolidation opportunities Pro Forma Michigan: # 1 (12%) branch market share #6 (8%) deposit market share 20% of total HBAN deposits Sources: FDIC, SNL Financial Pro Forma
Slide 7: High Concentration of Top Market Share MSAs
High Concentration of Top Market Share MSAs(1) Compact & Stable Footprint Yields Operational Efficiency Source: SNL Financial. FDIC branch information as of June 30, 2015 and is pro forma for all announced acquisitions. (1) Top 20 Banks by Assets, excluding credit card and trust banks. (2) Rank base
Slide 8: Opportunity to Expand Fee Income at FirstMerit
Opportunity to Expand Fee Income at FirstMerit Revenue Synergies Not Modeled into Deal Economics + Noninterest Income 34% Net Interest Income - FTE 66% 2015 Total Revenues: $3.0 Billion Net Interest Income - FTE 74% Noninterest Income 26% 2015 Total Revenues: $1.0 Billion Noninterest Income 32% Net
Slide 9: Third Party “Clean Room” Process & Findings
Third Party “Clean Room” Process & Findings Category Selected Actions Taken Potential Benefits Retail and Business Banking retention and cross-sell Identified high value and shared customers Created communication strategies in advance of consolidation notices Improve retention in consumer deposits I
Slide 10: Revenue Enhancements Opportunities Provide Additional Upside
Revenue Enhancements Opportunities Provide Additional Near-Term and Long-term Upside (1) Source: businesses with less than 500 employees, 2013 County Business Patterns, U.S. Census Bureau Home Lending Expansion Limited FMER home lending presence in Chicago and WI markets Annual loan production oppor
Slide 11: FirstMerit Balance Sheet Tracked with Modeled Expectations
FirstMerit Balance Sheet Tracked with Modeled Expectations From Due Diligence Illustrates Continued Strong Engagement by FirstMerit Colleagues Between Announcement and Closing % of Assumed Balance Sheet at Close 3/16 4/16 5/16 6/16 7/16 Commercial 96% 96% 96% 96% 97% Total Indirect 94% 96% 97% 99% 1
Slide 12: Re-mixing the Investment Portfolio
Re-mixing the Investment Portfolio Taking advantage of market opportunities to improve yield while reducing risk Sold $3.3B of FMER securities at yield of 1.55% and have re-invested $2.1B at yield of 2.12% to date Remainder of purchases projected at yield of 2.00% Balance will be unchanged by end of
Slide 13: Integration Governance Structure
Integration Governance Structure Extensive Board & Senior Management Oversight Reflects Enterprise-wide Focus on Strong Execution Senior Management Integration Governance Group Integration Executive Leadership (Mac McCullough & Paul Heller) Integration Management Office Integration Oversight Special
Slide 14: FirstMerit Acquisition Milestones
FirstMerit Acquisition Milestones Effectively Managing Execution Risk is THE Immediate Focus Acquisition Announcement Back Office Consolidations (1Q17) Acquisition Closing Due Diligence Integration Planning Shareowner Approvals DOJ Approval (Branch Divestiture) Federal Reserve and OCC Approvals Tale
Slide 15: Important Messages
Focus on delivery of consistent, through the cycle, shareholder returns Driving loan and core deposit growth through execution and a differentiated customer experience Enhancing sales management to improve productivity Data analytics increasing revenue generating product penetration Significant prog
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