Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q4 2011 Earnings Presentation
122 slides from Huntington Bancshares's earnings presentation, Feb 14, 2012
Slide 1: 2012 First Quarter Investor Handout
2012 First Quarter Investor Handout 1 February 14, 2012
Slide 2: Table of Contents
Table of Contents Current Topics 3OCR Performance Review 9Financial Review 18 Significant items impacting comparisons 24Income Statement 25 Revenue & PTPP Growth 26 Net interest margin 28 Noninterest income 31 Noninterest expense 34Balance Sheet 36Investment Securities 40Loan Portfolio Overview 46 C
Slide 3: Current Topics
Current Topics 3
Slide 4: Our "Break Away" Strategic Plan
OptimizeCurrentFranchiseProfitability / pricingCross-sell / share-of- walletLaunch new brandInvest in capabilities and begin hiring Our "Break Away" Strategic Plan 4 LaytheFoundationCapital and liquidityOrganiza- tional changes Build management depthCredit and Risk management Invest in theCoreBuild
Slide 5: Our "Break Away" Strategic Plan: 2011 Accomplishments
Our "Break Away" Strategic Plan 5 Invest in theCoreBuild out sales forces, channels, and productsContinued brand roll- outEnhance investment discipline 2011 Opened 28 Giant Eagle in-store branchesThird largest Small Business Administration (7a loans) lender in the countryLaunched Asterisk-Free Check
Slide 6: Our "Break Away" Strategic Plan: 2012 Focus
Our "Break Away" Strategic Plan 6 Build out of the capital market teamsLaunching healthcare and not-for- profit verticals within the commercial segmentOpening >40 Giant Eagle in-store branchesRationalizing the branch network, closing or combining 29 branches (on a base of 650)Implementing branch ima
Slide 7: Job numbers are improving; Midwest recovery
Job numbers are improvingUnemployment - TrendNation (1/12) 8.3%Ohio (12/11) 8.1%Pennsylvania 7.6%West Virginia 7.9%Indiana 9.0%Michigan 9.3% lowest since 12/08Non-farm payroll growth - 6/09 to12/11Nation +1.08%6-state region +1.72% Michigan 2.45%Public sector supportPure Michigan Business Connect -
Slide 8: Important Messages
Important Messages Executing our long-term strategic planStrategic initiatives are increasingly adding to revenue"Fair Play" is working... accelerated growth in consumer checking households and increasing cross sellOCR is working... accelerated growth in commercial relationships and revenue contribu
Slide 9: OCR Performance Review
OCR Performance Review 9
Slide 10: OCR Drives Higher Customer Profitability
OCR Drives Higher Customer Profitability Clearly outlined activities by segmentDefined accountability for relationships, by segmentAligned goals and incentives at all levels and in all business segmentsOne relationship management system - MAXWeekly executive results tracking, accountability, and act
Slide 11: Consumer Checking Account Household Growth
(CHART) Consumer Checking Account Household Growth Consumer Checking Households 10.3% 10.3% growth in 201117.8% growth, 166k new households since 4Q09 (000s) 11 17.8%
Slide 12: Consumer Checking Household Revenue
Consumer Checking Household Revenue (CHART) (1) ($MM) 4Q11 adjusted for debit card interchange fee impact exceeds pre-"Fair Play" and Reg E level 12 Pre-Reg E Reflects lower balances on certificates of deposit Reflects debit card interchange impact and lower balances on certificates of deposit (2) P
Slide 13: More Products and Services to Drive Total Revenue
(CHART) Not Just More Households... But More Products and Services to Drive Total Revenue Product Penetration - 4+ Services / HH 25 potential products or services counted: checking, savings, online bill pay, mortgage, brokerage account, insurance, etc. (CHART) (CHART) Product Penetration - 1 Service
Slide 14: New Branch Customer Demographics
New Branch Customer Demographics 14 (CHART) Income Mix Home Owner Mix (CHART) Net Worth Mix (CHART) New customers look nearly identical pre and post the launch in May of Asterisk-Free Checking(tm)IncomeNet WorthHome Owner vs. RenterIn-store and online channels:Similar income levels Lower net worth
Slide 15: Commercial Relationships
(CHART) Commercial Relationships 8.4% (1) Checking account 8.4% growth in 201113.4% growth, 16k new commercial relationships since 4Q09 (000s) 15 Commercial Relationship (1) Growth 13.4%
Slide 16: Commercial Relationship Product Penetration
Product Penetration - 2-3 Services / Relationship (CHART) Commercial Relationship (1) Product Penetration Product Penetration - 4+ Services / Relationship Deepening relationships and accelerating product or service cross-sell (CHART) (CHART) Product Penetration - 1 Services / Relationship 16 (1) Che
Slide 17: Commercial Relationship Revenue
Migration from credit dependent to relationship based / cross-sell cultureRevenue mix has improved dramatically (CHART) 17 Commercial Relationship (1) Revenue ($MM) + 9.1% (1) Checking account
Slide 18: Financial Review
Financial Review 18
Slide 19: 2011 Full Year Highlights
$542.6 MM reported net income, or $0.59 EPS, up from $312.3 million, or $0.19 EPS, in 2010$47.0 MM, or 2%, decrease in fully-taxable equivalent revenue$61.2 MM, or 6%, decrease in noninterest income$92.4 MM decrease in mortgage banking income$23.5 MM decrease in service charges on deposit accounts$7
Slide 20: 2011 Fourth Quarter Highlights
$126.9 MM reported net income, or $0.14 EPS0.92% return on average assets11.2% return on average tangible common equity$20.8 MM, or 3%, decrease in fully-taxable equivalent revenue$29.2 MM, or 11%, decrease in noninterest income$17.3 MM debit card interchange reduction related to Durbin Amendment$15
Slide 21: 2011 Fourth Quarter Highlights (cont.)
Continued customer growth and OCR (1) successConsumer checking account households10.3% full year growth 73.5% with 4+ products or services penetration, up from 69.4% in 4Q10Commercial relationships8.4% full year growth31.4% with 4+ products or services penetration, up from 24.2% in 4Q10Continued imp
Slide 22: Quarterly Performance Highlights
Quarterly Performance Highlights 4Q11 3Q11 2Q11 1Q11 4Q10 EPS $0.14 $0.16 $0.16 $0.14 $0.05 Net interest margin 3.38% 3.34% 3.40% 3.42% 3.37% Efficiency ratio (1) 64.0% 63.5% 62.7% 64.7% 61.4% Return on average assets 0.92% 1.05% 1.11% 0.96% 0.90% Return on average tangible common equity 11.2% 13.0%
Slide 23: Quarterly Earnings
Quarterly Earnings (SMM) Net interest income. Provision Noninterest income Noninterest expense Pre-tax income Net hoome EPS 2586 430.1 Te23 ERLE $016 Change vs. 3am a7 Art ___ Pot 7 Pat S85 ~ 2%/S CO) — OW wo 4 (417) (48) (292) (11) (49) (19) 6) = 43) wy 708 7 3 $ (0.02) (13) %]$ 0.09 180 %
Slide 24: Significant Items Impacting Financial Performance Comparisons
Significant Items Impacting Financial Performance Comparisons - Reconciliation 2011 - 2010 Quarterly 24
Slide 25: Income Statement
Income Statement 25
Slide 26: Revenue and PTPP Growth
(CHART) Revenue and PTPP Growth (1) ($MM) (CHART) (1) Revenue is FTE; See Basis of Presentation for definition of PTPP, as well as PTPP Income reconciliation slide(2) Annualized PTPP Earnings Power (2) Revenue and PTPP Trends 26
Slide 27: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income (1) 27
Slide 28: Net Interest Income and Margin
(CHART) (CHART) Change 4Q11 vs. 3Q11:Deposits, rate & mix 15 bpsLoans, yield & mix (4) Other Incld. Securitization (4)Investments / liquidity (3)Total change 4 bps Net Interest Income and Margin (1) ($MM) (1) Fully-taxable equivalent basis Net Interest Margin (FTE) Net Interest Income (FTE) 28
Slide 29: Net Interest Margin - Yields and Rates
Net Interest Margin - Yields and Rates (CHART) (CHART) Earning Assets Total Deposits Fed Funds Net Interest Margin Loans Available-for-Sale and Other Securities Earning Asset Yields NIM - Yields & Rates 29
Slide 30: Net Interest Income at Risk
Net Interest Income at Risk (1) Forward Curve +2%, +1%, & -1% Gradual Change in Rates(CHART) Managing Interest Rate Risk Estimated impact on annualized net interest income over the next 12-month period assuming a gradual change in rates over the next 12-month period above and beyond any rate change
Slide 31: Noninterest Income Trends Linked Quarter
Noninterest Income Trends Linked Quarter 31
Slide 32: Noninterest Income Trends Prior-Year Quarter
Noninterest Income Trends Prior-Year Quarter 32
Slide 33: Mortgage Banking Income
Mortgage Banking Income ($MM) 4Q11 3Q11 2Q11 1Q11 4Q10 Origination and secondary marketing $21.2 $15.6 $11.5 $19.8 $48.2 Servicing fees 12.0 12.1 12.4 12.5 11.5 Amortization of capitalized servicing (8.8) (9.6) (9.1) (9.9) (14.0) Other mortgage banking income 3.7 3.8 4.3 3.8 4.8 Sub-total 28.1 22.0
Slide 34: Noninterest Expense Trends Linked Quarter
Noninterest Expense Trends Linked Quarter 34
Slide 35: Noninterest Expense Trends Prior-Year Quarter
Noninterest Expense Trends Prior-Year Quarter 35
Slide 36: Balance Sheet
Balance Sheet 36
Slide 37: Balance Sheet — Assets
Balance Sheet — Assets Dec. tt vs. "10 in millions) “Amount Percent ‘Cash and due from banks s 316% Interest bearing deposits in banks (44) 32.7% acing account securties (140) -75.2%% Loans hel forsale Cone and ndtalnae an aten Commercial real estate lo Residential mortgage loans Toans and least “Al
Slide 38: Balance Sheet - Liabilities and Shareholders' Equity
Balance Sheet - Liabilities and Shareholders' Equity 38
Slide 39: Earning Assets and Funding Composition
Earning Assets and Funding Composition (1) (CHART) (1) Average balances (2) Interest bearing liabilities + DDA noninterest bearing Funding (2) Earning Asset Composition 39 (CHART)
Slide 40: Investment Securities
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Slide 41: Available-For-Sale and Other Securities
(CHART) (CHART) Available-For-Sale and Other Securities ($MM) % of Average Earning Assets Average Balance & Yield 41
Slide 42: Securities Trends
Securities Trends (1) Linked Quarter - Average Treasury/Agency debt with a duration of approximately 2.7 yearsAgency mortgages with a duration of approximately 3.6 years 42
Slide 43: Securities Mix Analysis
(CHART) Securities Mix Analysis 12/31/10$9.8B (1)3.2 Years 12/31/08$4.4 B5.2 Years 12/31/09$8.6B2.4 Years Excludes variable rate demand notes: $139 million at 12/31/10 and $84 million at 12/31/11$641 MM of Agency CMO / MBS classified as HTM included at amortized cost (1) 12/31/11$8.6 B (1) (2)3.1 Ye
Slide 44: Securities Overview - 12/31/11
Securities Overview (1) - 12/31/11 44
Slide 45: Selected Securities - Assessment
Selected Securities - Assessment (1) Par Value Book Value Market Value MTMAlt-A mortgage backed $61 MM $58 MM $48 MM $(10) MM - Purchased 2006 % to Par Value 79% - 3 securities - senior tranche - 10/1 ARMs or 30 year fixed; no option ARMs - Cash flow analysis performed monthly to test for OTTI with
Slide 46: Loan Portfolio Overview
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Slide 47: Credit Exposure Composition
($B) 12/31/11 12/31/11 12/31/11 9/30/11 9/30/11 9/30/11 12/31/10 12/31/10 12/31/10 12/31/09 12/31/09 12/31/09 12/31/08 12/31/08 12/31/08 Amt Pct Amt Pct Amt Pct Amt Pct Amt Pct Commercial & industrial $14.7 38 % $13.9 36 % $13.1 34 % $12.9 35 % $13.5 33 % Commercial real estate 5.8 14 5.9 15 6.7 18
Slide 48: Total Loans and Leases Portfolio Overview
(CHART) Total Loans and Leases Portfolio Overview ($B) $19.8 $6.1 $2.8 $1.4 $2.7 $0.8 $0.8 $3.8 EOP Outstandings - $38.9 Billion (1) (1) 12/31/11 By State 48
Slide 49: Linked Quarter Loan and Lease Trends
Linked Quarter Loan and Lease Trends 49
Slide 50: Loan and Lease Trends Prior-Year Quarter
Loan and Lease Trends 50 Prior-Year Quarter
Slide 51: Gross Loan Growth
Gross Loan Growth (CHART) (CHART) Source: SNL; company reportsMTB's growth includes acquisition of Wilmington Trust's Loan Portfolio CMA's growth includes acquisition of Sterling Bank's Loan Portfolio Prior Year Quarter4Q10-4Q11 Linked Quarter3Q11-4Q11 51
Slide 52: Total Commercial Loans
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Slide 53: Total Commercial Loans - Granularity
(CHART) Total Commercial Loans - Granularity EOP Outstandings - $20.5 Billion (1) (CHART) 841 2% 34,52798% (1) 12/31/11 Loans by Dollar Size # of Loans by Size $5 MM - < $10 MM 441$10 MM - < $25 MM 327$25 MM - < $50 MM 64> $50 MM 9Total 841 53
Slide 54: Commercial Loans - Risk Grade Distribution
(CHART) Commercial Loans - Risk Grade Distribution PD Risk Grades (Moody's or Regulatory Definition) Percent of End of Period Balances ($B) $23.6 $20.6 19% 16% 10% 42% 29% 11% $19.7 15% 8% $20.5 54 26% 33% 24% 24% 34% 32% 18% 34% 41% (CHART) Change 12/11 vs. 12/08
Slide 55: Commercial and Industrial: Credit Quality Trends
Diversified by sector and geographically within our Midwest footprintFocus on middle market companies with $25-$500 million in salesLend to defined relationship oriented clients where we understand our client's market / industry and their durable competitive advantageUnderwrite to historical cash fl
Slide 56: C&I Loan Portfolio Composition
(CHART) C&I Loan Portfolio Composition ($B) EOP Outstandings - $14.7 Billion (1) (1) 12/31/11 By Maturity $2.0 $5.9 $1.7 $1.7 $1.9 $1.0 $0.3 56
Slide 57: C&I - Trends
(CHART) C&I - Trends ($MM) Change Analysis Period-End Balance ($MM) 4Q11 vs. 3Q11 4Q11 vs. 4Q10 Originations $1,063 $3,664 Net payments / payoffs / takedowns (335) (2,015) Net reclassifications 55 (104) Charge-offs (23) (177) Net change $760 $1,636 5.5% 12.5% 57
Slide 58: C&I - Auto Industry
C&I - Auto Industry (1) Outstandings (2) ($MM) 4Q11 3Q11 2Q11 1Q11 4Q10 Suppliers Domestic $ 145 $ 153 $ 127 $ 135 $ 127 Foreign 18 20 20 23 22 Total suppliers 163 173 146 157 149 Dealers Floorplan-domestic 781 625 651 620 599 Floorplan-foreign 388 289 329 463 457 Total floorplan 1,169 913 980 1083
Slide 59: Commercial Real Estate
Commercial Real Estate: $5.8 Billion (1) CRE - Core ($4.0 Billion)Long-term meaningful relationships... many have been customers for 20+ years with opportunities for additional cross-sellPrimarily Midwest footprint projects generating adequate return on capitalProven CRE participants... 28+ years av
Slide 60: CRE - Portfolio Composition
(CHART) CRE - Portfolio Composition Permanent 27% Mini-perm Traditional45% Construction 10% Non Project Loans 7% (CHART) Lines / Letters of Credit2% (1) 12/31/11 Permanent Qualified10% Mini-perm Traditional - Typically 2- to 5-year term loans to allow properties to reach stabilized operating levels
Slide 61: CRE - Trends
(CHART) CRE - Trends ($MM) Change Analysis Period-End Balance ($MM) 4Q11 vs. 3Q11 4Q11 vs. 4Q10 Originations $ 291 $ 612 Takedowns 224 776 Net payments / payoffs / other (589) (2,035) Charge-offs (36) (178) Net change $(108) $(825) (1.8)% (12.4)% 61
Slide 62: CRE - Core vs. Noncore
CRE - Core vs. Noncore ($MM) O/S ACL Criticized NALs Prior Charge-offs(1) ACL Credit Mark (2) 9/30/11 Core Total $3,872 $122 $504 $25 $ 16 3.15% 3.56% Noncore SAD 910 213 502 202 286 23.43 41.72 Noncore Other 1,153 89 196 30 14 7.72 8.84 Noncore Total 2,063 302 698 232 300 14.65 25.48 CRE Total $5,9
Slide 63: CRE - Maturity Schedule By Loan Type
CRE - Maturity Schedule By Loan Type - 12/31/11 ($MM) Within 12 Mos. 1 - 2 Years 2 - 5 Years 5+ Years Total Construction $ 278 $ 163 $ 106 $ 33 $ 580 Lines / letters of credit 26 14 44 9 93 Non project loans 147 60 107 106 419 Mini-perm traditional 1,338 663 611 10 2,621 Permanent qualified 168 151
Slide 64: Total Consumer Loans and Leases
Total Consumer Loans and Leases 64
Slide 65: Total Consumer Loans and Leases
Total Consumer Loans and Leases - 12/31/11 ($B) Amt. Pct. Home equity $ 8.2 45% Residential RE 5.2 28 Automobile 4.5 24 Other consumer 0.5 3 Total consumer $18.4 100% (CHART) By Loan Type 65
Slide 66: Indirect Auto Lending Overview
Deep local relationships with high quality DealersConsistently in the market for over 50 years#1 Bank in the U.S. in Dealer Satisfaction, with dominant market position in the Midwest with over 2,700 dealersFloorplan and dealership real estate lending, core deposit relationship, full Treasury Managem
Slide 67: Auto Loans - Production and Credit Quality Overview
Auto Loans - Production and Credit Quality Overview Auto Loans - Production and Credit Quality Overview (1) Annualized 67
Slide 68: Home Equity
Home Equity: $8.2 Billion (1) Focused on geographies within our Midwest footprint with relationship customersUS Federal Housing Finance Agency (FHFA): only an 8% average decline in Ohio home values since 2005 Credit Quality Trends 4Q11 3Q11 2Q11 1Q11 4Q10 30+ days PD & accruing (2) 1.18% 1.17% 1.09%
Slide 69: Residential Mortgages
Focused on geographies within our Midwest footprintTraditional product mix... very limited nontraditional exposure as we never originated sub-prime, payment option ARMs, or negative amortization loans$499 MM of Interest Only loans... targeted within executive relocation activities$274 MM of Alt-A mo
Slide 70: Residential Mortgages - LTV, FICO, Originations
Residential Mortgages - LTV, FICO, Originations (1) Weighted average FICOs reflect currently updated customer credit scores(2) Only owned-portfolio originationsWeighted average at origination 4Q11 3Q11 2Q11 1Q11 4Q10 Ending balance ($B) $5.2 $5.0 $4.8 $4.5 $4.5 Average LTV 77% 78% 78% 78% 77% Averag
Slide 71: Other Consumer Loans
Other Consumer loans EOP Outstandings - $0.5 Billion (1)CollateralizedAutos, untitled vehicles, small boats, mobile homes and other miscellaneousPrimarily for existing customersPerformed within expectations over the past year, though varies by collateral type (1) 12/31/11 71
Slide 72: Credit Quality Review
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Slide 73: Credit Quality Trends Overview
Credit Quality Trends Overview Credit Quality Trends Overview Excludes loans guaranteed by the U.S. Government NALs divided by total loans and leases(3) NPAs divided by the sum of loans and leases, impaired loans held for sale, net other real estate and other NPAs(4) Criticized assets = commercial c
Slide 74: Total Commercial Loan - Delinquencies
Total Commercial Loan - Delinquencies (1) (CHART) (CHART) (1) Period end; delinquent but accruing as a % of related outstandings at EOP 90+ Days 30+ Days 74
Slide 75: Total Consumer Loan Delinquencies
(CHART) Total Consumer Loan Delinquencies (1) (CHART) 90+ Days 30+ Days Period end; delinquent but accruing as a % of related outstandings at EOPAdjusted to reflect 3Q11 $1.0 B securitization and 4Q11 movement of $1.3 B to held for sale. 75
Slide 76: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) (CHART) (1) Period end; delinquent but accruing as a % of related outstandings at EOPExcludes GNMA FAS 140 government guaranteed(3) Adjusted to reflect 3Q11 $1.0 B securitization and 4Q11 movement of $1.3 B to held for sale (CHART) (2) (2) (2) (2) 90+ Days 30+ Days 76
Slide 77: Net Charge-Offs
(CHART) Net Charge-Offs ($MM) ($MM) Consumer Loans Commercial Loans (2) (CHART) (1) Includes $16.4 MM related to $39.8 MM of residential mortgages sold and a $4.4 MM Franklin-related recovery (1) 77
Slide 78: Net Charge-Offs ($MM)
Net Charge-Offs ($MM) 4Q11 3Q11 2Q11 1Q11 4Q10 Commercial and industrial $10.9 $17.9 $18.7 $42.2 $59.1 Commercial real estate 28.4 24.4 27.6 67.7 44.9 Total commercial 39.3 42.3 46.3 109.9 104.0 Automobile 4.2 3.9 2.3 4.7 7.0 Home equity 23.4 26.2 25.4 26.7 29.2 Residential mortgages (1) 9.7 11.6 16
Slide 79: Nonaccrual Loans and Nonperforming Assets
(CHART) Nonaccrual Loans and Nonperforming Assets ($MM) (CHART) ($MM) (19)% (3)% (21)% (18)% (15)% NAL Inflows NALs & NPAs - EOP (8)% 10% (4)% 23% (27)% 79
Slide 80: Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs)
Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs) 80
Slide 81: Nonperforming Asset Flow Analysis
($MM) 4Q11 3Q11 2Q11 1Q11 4Q10 NPA beginning-of-period $614.0 $652.9 $690.9 $844.8 $1,104.9 Additions / increases 189.1 153.6 210.3 192.0 237.8 Return to accruing status (30.7) (25.8) (68.4) (70.9) (100.1) Loan and lease losses (79.1) (80.0) (74.9) (128.7) (126.0) OREO gains (losses) (0.9) (0.2) 0.4
Slide 82: Total Commercial Loans - Criticized Loan Flow Analysis
($MM) 4Q11 3Q11 2Q11 1Q11 4Q10 Criticized beginning-of-period $2,291 $2,379 $2,661 $3,074 $3,638 Additions / increases 291 357 250 170 290 Advances 42 46 44 62 52 Upgrades to "Pass" (139) (252) (272) (239) (383) Paydowns (280) (181) (232) (295) (401) Charge-offs (58) (58) (73) (112) (121) Criticized
Slide 83: Accruing Loans Days Past Due and Troubled Debt Restructured Loans
Accruing Loans 90 Days Past Due and Troubled Debt Restructured Loans 83
Slide 84: Provision, NCO, and ACL
(CHART) (CHART) Provision, NCO, and ACL ($MM) (1) End of period Allowance for Credit Losses vs.NALs (1) Loan Loss Provision vs.Net Charge-offs 84
Slide 85: Rapid Improvement in Credit Quality - Nonaccrual Loans Ratio
Rapid Improvement in Credit Quality - Nonaccrual Loans Ratio 12/31/11 Change from 12/31/10 (CHART) Source: SNL and company reports (CHART) 85
Slide 86: Relative Performance - LLR / NAL Coverage
(CHART) Relative Performance - LLR / NAL Coverage LLR / NAL: Defined as reserves on loses for loans and finance leases divided by nonaccrual loansSource: SNL and company reportsPeers: ASBC, BBT, CMA, FHN, FITB, KEY, ZION, MTB, PNC, RF 86
Slide 87: Rapid Improvement in Credit Quality - Loan Loss Reserves / Nonaccrual Loans
Rapid Improvement in Credit Quality - Loan Loss Reserves / Nonaccrual Loans (CHART) (CHART) Source: SNL and company reports 12/31/11 Change from 12/31/10 87
Slide 88: Relative Performance - LLR/Loans Ratios
(CHART) Relative Performance - LLR/Loans Ratios 88 LLR / Loans: Defined as Reserves for loan losses as a percent of gross loans including held-for-saleSource: SNL and company reportsPeers: ASBC, BBT, CMA, FHN, FITB, KEY, ZION, MTB, PNC, RF
Slide 89: Deposits and Other Funding
Deposits and Other Funding 89
Slide 90: Deposits
(CHART) (CHART) Deposits ($B) Avg. Total Deposits - Rate / Mix Core CD Maturities & Avg. Maturity Rate Rate 1.06% 0.90% 0.82% 0.77% 0.61% Estimates 90 4Q11, 61 bps total deposit cost... 11 bps above peer average (1) 4Q11 Source: SNL Peers: ASBC, BBT, CMA, FHN, FITB, KEY, ZION, MTB, PNC, RF
Slide 91: Deposit Trends Linked Quarter
Deposit Trends Linked Quarter 91
Slide 92: Deposit Trends Prior-Year Quarter
Deposit Trends Prior-Year Quarter 92
Slide 93: Total Core Deposit Trends
Total Core Deposit Trends Average erage (SB) 4ant Commercial ‘Demand deposits - non-interest bearing JER} Demand deposits - interest bearing 1.0 Other core deposits @ 64 Te 16.4 Consumer Demand deposits - non-interest bearing yun! Demand deposits - interest bearing 45 Other core deposits @ 19.7 Tota
Slide 94: Other Funding End of Period Balances
(CHART) Other Funding End of Period Balances ($B) 22% 25% 2% 27% 17% $6.6 23% 0% 19% 32% 22% $9.6 20% 33% 0% 27% 29% 94 5%
Slide 95: Capital
Capital 95
Slide 96: Capital
4Q11 3Q11 2Q11 1Q11 4Q10 Tang. common equity/ tang. assets 8.30% 8.22% 8.22% 7.81% 7.56% Tang. equity/tang. assets 9.02 8.88 8.91 8.51 8.24 Tier 1 common risk-based capital 10.00 10.17 9.92 9.75 9.29 Tier 1 leverage 10.28 10.24 10.25 9.80 9.41 Tier 1 risk-based capital 12.11 12.37 12.14 12.04 11.55
Slide 97: Capital Ratios
(CHART) Capital Ratios (1) End-of-period4Q10 - Raised $920 MM of common equity and repurchased $1.4 B of TARP related preferred shares (2) 97
Slide 98: Shareholders' Equity and Key Equity Ratios
(CHART) Shareholders' Equity - Avg. (CHART) Capital Key Equity Ratios - EOP ($B) 98 4Q10 - Raised $920 MM of common equity and repurchased $1.4 B of TARP related preferred shares
Slide 99: Capital Analysis - 12/31/11
(CHART) Capital Analysis - 12/31/11 (CHART) Source: SNL, Company reports. Tier 1 Common Risk-Based Tangible Common Equity TARP- fully repaid 99
Slide 100: Franchise and Leadership
Franchise and Leadership 100
Slide 101: Huntington Bancshares Overview
Huntington Bancshares Overview Midwest financial services holding companyFounded - 1866Headquarters - Columbus, OhioTotal assets - $54 Billion Employees (1) - 11,245Franchise: Footprint 6 states: OH, MI, PA, IN, WV, KY 652 branches / 1,331 ATMs Retail and Business Banking 5 Areas - Mortgage banking
Slide 102: A Strong Regional Presence
A Strong Regional Presence Source: SNL Financial, company presentations and filings FDIC deposit data as of June 30, 2011 Deposits - Top 12 MSAs MSA Rank BBs(2) Deposits ShareColumbus, OH 1 77 $10,318 24.1%Cleveland, OH 5 78 4,056 8.0Detroit, MI 8 52 3,239 4.3Toledo, OH 1 42 2,350 24.0Pittsburgh, PA
Slide 103: Leadership Team
Leadership Team Leadership Team Business Segments Insurance, 103
Slide 104: Senior Leadership Team
Senior Leadership Team (1) Includes related experience outside of banking 104
Slide 105: Business Segment Overview
Business Segment Overview 105
Slide 106: Business Segment Loans & Deposits - 4Q11
Business Segment Loans & Deposits - 4Q11 Average Total Deposits - $43.6 B Average Total Loans - $39.5 B (CHART) (CHART) AFCRE $12.5B 32% Retail & Business Banking $12.3B 31% Treasury / Other $0.1B 0% Regional & Comm'l Banking $8.9B 23% WGH $5.7B 15% AFCRE $0.8B 2% Treasury / Other $1.1B 3% Retail &
Slide 107: Total Loans and Leases - By Business Segment
Total Loans and Leases - By Business Segment Total Loans and Leases - By Business Segment Avg. Outstandings - $39.5 Billion 4Q11 107
Slide 108: Total Deposits - By Business Segment
Total Deposits - By Business Segment Total Deposits - By Business Segment Avg. Balances - $43.6 Billion 4Q11 108
Slide 109: Business Segment Contribution
Business Segment Contribution ($MM) 4Q11 2011 2010 2009 Retail & Business Banking $36.1 $175.4 $131.0 $(26.5) Regional & Comm'l Banking 40.7 109.9 38.5 (158.7) AFCRE 34.2 186.2 46.5 (588.2) WGH 7.8 25.9 34.8 1.8 Treas. / Other 8.1 45.3 61.6 (251.3) Goodwill Impairment (1) -- -- (2,573.8)(1) Total Ne
Slide 110: Business Segment Overview: Commercial Banking and Retail
Business Segment Overview Commercial BankingExecutive - Jim Dunlap11 Region PresidentsMiddle Market Commercial BankingSpecialty BankingLarge CorporateHealth-careNot-for-ProfitEquipment FinanceInternational ServicesTreasury ManagementCapital MarketsDerivativesForeign ExchangeSecurities Trading Retail
Slide 111: Commercial Banking Regions
11 Commercial Banking Regions GreaterAkron/Canton Mahoning Valley Central Ohio NW Ohio S. Ohio/KY GreaterCleveland Central Indiana West Michigan East Michigan West Virginia Pittsburgh Jim Dunlap 111
Slide 112: Regional Banking Presidents
Regional Banking Presidents 112
Slide 113: Retail and Business Banking Areas
5 Retail and Business Banking Areas Central Northwest West Northeast East Mary Navarro 113
Slide 114: Giant Eagle / Huntington Partnership: Increase Convenience
#1 in Ohio BranchesPlanned Rollout12% the cost of a traditional branch>40 opened>70 by end of 2012>100 by end of 2015Cash flow breakeven in < 2 years Increase Convenience - Ohio Branch share source, SNL Financial, 6/30/2010 % of Branches % of Branches % of Branches MSA 6/10 Pro Forma (1) Pro Forma (
Slide 115: Sales Transactions Shifting to Lower Cost Channels
Sales Transactions Shifting to Lower Cost Channels >25% growth in sales activity since '09>10% decline in cost of services since '09 115 (CHART) (CHART) % Mix by Channel >140k downloads of our mobile app since 6/11 launch Doubling # of In-Store Branches in 2012 Number of Checking Accounts Sold by Ch
Slide 116: Retail & Business Banking Executives
Retail & Business Banking Executives 116
Slide 117: Business Segment Overview: Wealth, Home Lending, Auto Finance and CRE
Business Segment Overview Wealth Advisors, Government Finance, and Home Lending Executive - Dan BenhaseWealth AdvisorsTrust / Portfolio ManagementPrivate BankingRetail BrokerageGovernment FinancePublic Funds - Treasury Services and LendingCorporate TrustNational SettlementHome LendingMortgage Bankin
Slide 118: Safe Harbor Disclosures
Safe Harbor Disclosures 118
Slide 119: Use of non-GAAP financial measures
Use of non-GAAP financial measuresThis document may contain 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, the comparable GAAP fi
Slide 120: Significant Items
Significant ItemsFrom 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 be associated with ordinary banking activities, are so unusually large that their outsized impact is believed b
Slide 121: Fully-taxable equivalent interest income and net interest margin
Fully-taxable equivalent interest income and net interest marginIncome from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. This adjustment puts all earning assets, most notably tax-exempt munic
Slide 122: Forward-looking statements
This document contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend
Huntington Bancshares — Q4 2011 Earnings Presentation on 6ix