Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — RBC Capital Markets Financial Institutions Conference 2020
14 slides from Huntington Bancshares's conference presentation, Mar 11, 2020
Slide 1: RBC Capital Markets Financial Institutions Conference
RBC Capital Markets Financial Institutions Conference March 11, 2020 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2020 Huntington Bancshares Incorporated.
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: Positioned for Strong Relative Performance Through-the-Cycle
Positioned for Strong Relative Performance Through-the-Cycle Strengthened Pretax Pre-Provision Net Revenue (1) Well-Diversified Balance Sheet $ billions $1.9 $2.0 $1.8 $1.4 $1.1 Core Loans (2) 44% Deposits (2) 50% $75 B 50% $80 B 56% 2015 2016 2017 2018 2019 1.86% 1.75% 2.26% 2.22% 2.27% Commercial
Slide 4: Strategic Portfolio Mix
Strategic Portfolio Mix Thoughtful diversification is a vital component of our credit risk management Consumer Bank Commercial and Business Bank Period End Period End As of 12/31/19: As of 12/31/19: Consumer remains strong More measured tone from commercial clients 51% of Auto momentum remains
Slide 5: Historical Yield Curves
Historical Yield Curves Yield curve moved lower and inverted LIBOR / Swap Curves 2.00% 12/31/19 1.75% 1/23/20 1.50% 1.25% 1.00% 3/6/20 0.75% 0.50% 1mL 3mL 6mL 12mL 2y 3y 4y 5y 7y 10y 1 month 2 year 4 year 10 year Rate LIBOR swap swap swap 12/31/19 1.76% 1.70% 1.70% 1.90% 1/23/20 1.66 1.58 1.54 1.68
Slide 6: Hedging Program Overview
Hedging Program Overview Loan by Rate Index Loan by Rate Index as of 2/29/20 as of 2/29/20 Variable Variable (>1-month)* (>1-month)* 16% 16% Fixed Fixed 40% 40% Variable Impact of Hedging (1-month) Variable Hedged (1-month) Variable 19% 44% (1-month) Unhedged 25% *Includes mortgage ARM products *Inc
Slide 7: Deposit Repricing Overview
Deposit Repricing Overview CD and MMA Promo Rate Maturities ($ billion) Monthly Interest-Bearing Deposit Cost 1.01% 1.00% 0.98% 0.96% 0.95% 2Q20 0.91% 0.90% $3.3 4Q19 $4.8 0.80% 0.77% 1Q20 0.74% $4.9 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Leveraging market- and custo
Slide 8: Asset Quality and Reserve Trends
Asset Quality and Reserve Trends Overall credit quality metrics remain strong Net Charge-off Ratio ALLL Ratio 0.38% 0.39% 0.39% 0.27% 1.05% 0.25% 1.03% 1.02% 1.03% 1.04% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 NPA Ratio Criticized Asset Ratio 0.64% 0.66% 0.61% 0.61% 3.62% 3.64% 0.52% 3.43%
Slide 9: Capital and Liquidity
Capital and Liquidity Managing capital and liquidity conservatively within uncertain economic outlook and consistent with our aggregate moderate-to-low risk appetite Loan to Deposit Ratio $1.60 Modified Liquidity Coverage Ratio $0.95 $1.55 156% $0.93 $1.50 93% $0.91 150% 91% 92% $1.45 148% 149% 91%
Slide 10: Important Messages
Important Messages Building long-term shareholder value Consistent organic growth Maintain aggregate moderate-to-low risk appetite Minimize earnings volatility through the cycle Disciplined capital allocation Focus on top quartile financial performance relative to peers Strategic focus on Cu
Slide 11: x Ss
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Slide 12: Basis of Presentation: Use of Non-GAAP Financial Measures
Basis of Presentation Use of Non-GAAP Financial Measures This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, th
Slide 13: Basis of Presentation: Rounding and Significant Items
Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Significant Items From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may
Slide 14: Reconciliation: Pretax Pre-Provision Net Revenue (PPNR)
Reconciliation Pretax Pre-Provision Net Revenue (PPNR) ($ in millions) 2019 2018 2017 2016 2015 Net interest income – FTE $3,239 $3,219 $3,052 $2,412 $1,983 Noninterest income 1,454 1,321 1,307 1,151 1,039 Total revenue 4,693 4,540 4,359 3,563 3,022 Less: Significant Items 0 0 2 1 3 Less: gain / (lo
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