Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Investor Presentation (May 2012)
117 slides from Huntington Bancshares's investor presentation, May 14, 2012
Slide 1: 2012 Second Quarter Investor Handout
2012 Second Quarter Investor Handout 1 May 14, 2012
Slide 2: Table of Contents
Table of Contents Current Topics 3 OCR Performance Review 9 Financial Review 17 Significant items impacting comparisons 23 Income Statement 25 Revenue Growth 26 Net interest margin 28 Noninterest income 30 Noninterest expense 33 Balance Sheet 35 Investment Securities 39 Loan Portfolio Overview 44 Cr
Slide 3: Current Topics
Current Topics 3
Slide 4: Our "Break Away" Strategic Plan
Optimize Current Franchise Profitability / pricing Cross-sell / share-of-wallet Launch new brand Invest in capabilities and begin hiring Our "Break Away" Strategic Plan 4 Lay the Foundation Capital and liquidity Organiza-tional changes Build management depth Credit and Risk management Invest in the
Slide 5: Our "Break Away" Strategic Plan: Invest in the Core
Our "Break Away" Strategic Plan 5 Invest in the Core Build out sales forces, channels, and products Continued brand roll-out Enhance investment discipline 2011 Opened 28 Giant Eagle in-store branches Third largest Small Business Administration (7a loans) lender in the country Launched Asterisk-Free
Slide 6: Our "Break Away" Strategic Plan: 2012 Focus
Our "Break Away" Strategic Plan 6 Build out of the capital market teams Launching healthcare and not-for- profit verticals within the commercial segment Opening >40 Giant Eagle in-store branches Rationalizing the branch network, closing or combining 29 branches (on a base of 650) Implementing branch
Slide 7: Job numbers are improving; Midwest recovery
Job numbers are improving Unemployment - Trend Nation (2/12) 8.3% Ohio (2/12) 7.6% Pennsylvania 7.6% West Virginia 7.2% Indiana 8.4% Michigan 8.8% lowest since 12/08 Non-farm payroll growth - 2/11 vs. 2/12 Nation +1.55% 6-state region +1.34% fasted since 2006 Michigan 1.76% Real estate is improving
Slide 8: Important Messages: Managing Our Break Away Strategy
Important Messages Executing our long-term strategic plan Strategic initiatives are increasingly adding to revenue "Fair Play" is working... accelerated growth in consumer checking households and increasing cross sell OCR is working... accelerated growth in commercial relationships and revenue contr
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 segment Defined accountability for relationships, by segment Aligned goals and incentives at all levels and in all business segments One relationship management system - MAX Weekly executive results tracking, accountability, and
Slide 11: Consumer Checking Account Household Growth
Consumer Checking Account Household Growth 14.2% annualized linked quarter growth, 11.7% full year growth 75.1% with 4+ products or services penetration 1Q12 revenue of $237 MM, up from $231 MM in 4Q11 Consumer Checking Households 11.7% (000s) 11
Slide 12: Consumer Checking Household Revenue
Consumer Checking Household Revenue ($MM) 12 Pre-Reg E Post-Durbin
Slide 13: Product Penetration - 4+ Services / HH
Product Penetration - 4+ Services / HH Not Just More Households... But More Products and Services to Drive Total Revenue 25 potential products or services counted: checking, savings, online bill pay, mortgage, brokerage account, insurance, etc. Product Penetration - 1 Services / HH Product Penetrati
Slide 14: Commercial Relationship Growth
Commercial Relationship (1) Growth Commercial Relationships 9.8% (1) Checking account 13.3% annualized linked quarter growth, 9.8% full year growth 32.7% with 4+ products or services penetration 1Q12 revenue of $170 MM, down from $175 MM in 4Q11, up from $158 MM in 1Q11 (000s) 14
Slide 15: Product Penetration - Commercial Relationships
Product Penetration - 2-3 Services / Relationship Commercial Relationship (1) Product Penetration Product Penetration - 4+ Services / Relationship Deepening relationships and accelerating product or service cross-sell Product Penetration - 1 Services / Relationship 15 (1) Checking account
Slide 16: Commercial Relationship Revenue
Migration from credit dependent to relationship based / cross-sell culture Revenue mix has improved dramatically 16 Commercial Relationship (1) Revenue ($MM) +7 .6% (1) Checking account
Slide 17: Financial Review
Financial Review 17
Slide 18: 2012 First Quarter Highlights
$153.3 MM reported net income, or $0.17 EPS 1.13% return on average assets 13.5% return on average tangible common equity $58.6 MM, or 9%, increase in fully-taxable equivalent revenue $56.0 MM, or 24%, increase in noninterest income $23.0 million related to a $1.3 billion automobile loan securitizat
Slide 19: 2012 First Quarter Highlights (cont.)
Continued customer growth and OCR (1) success Consumer checking account households 14.2% annualized growth and 11.7% growth since 1Q 2011 75.1% with 4+ products or services penetration, up from 70.5% in 1Q11 Commercial relationships 13.3% annualized growth and 9.8% growth since 1Q 2011 32.7% with 4+
Slide 20: Other Highlights
$1.3 B auto loan securitization FDIC-assisted purchase of Fidelity Bank in Michigan $0.8B in assets acquired and $0.8B in liabilities assumed $0.4 B equipment finance purchase Branch Repositioning 29 traditional branches consolidated 49 Giant Eagle in-store branches... 14 opened in 2012 with 27 more
Slide 21: Quarterly Performance Highlights
Quarterly Performance Highlights 1Q12 4Q11 3Q11 2Q11 1Q11 EPS $0.17 $0.14 $0.16 $0.16 $0.14 Net interest margin 3.40% 3.38% 3.34% 3.40% 3.42% Efficiency ratio (1) 63.8% 64.0% 63.5% 62.7% 64.7% Return on average assets 1.13% 0.92% 1.05% 1.11% 0.96% Return on average tangible common equity 13.5% 11.2%
Slide 22: Quarterly Earnings Analysis - Adjusted for Significant Items
Quarterly Earnings Analysis - Adjusted for Significant Items (1) 22 (1) Refer to appendix slide "Significant Items Impacting Financial Performance Comparisons - Reconciliation
Slide 23: Significant Items Impacting Financial Performance Comparisons - Reconciliation
Significant Items Impacting Financial Performance Comparisons - Reconciliation 2012 - 2011 Quarterly 23
Slide 24: Fidelity Bank FDIC-Assisted Acquisition
24 Fidelity Bank FDIC-Assisted Acquisition Deposit Composition (Dec - 11) Loan Composition (Dec - 11) Market Share Branch Footprint Loans: $666MM/Yield: 5.61% (2) Deposits: $748MM/Cost: 0.93% (1) Source: SNL Financial. Regulatory information as of 31-Dec-11. Branch and market share information as of
Slide 25: Income Statement
rae ile as ncome Statement
Slide 26: Revenue Growth
Revenue Growth (1) ($MM) (1) Revenue is FTE (2) Annualized Revenue Earnings Power (2) Revenue Trends 26
Slide 27: Net Interest Income and Margin
Change 1Q12 vs. 4Q11: Deposits, rate & mix 7 bps Earning Asset, yield & mix (4) Other (1) Total change 2 bps Net Interest Income and Margin (1) ($MM) (1) Fully-taxable equivalent basis Net Interest Margin (FTE) Net Interest Income (FTE) 27
Slide 28: Net Interest Margin - Yields and Rates
Net Interest Margin - Yields and Rates Earning Assets Total Deposits Fed Funds Net Interest Margin Loans Available-for-Sale and Other Securities Earning Asset Yields NIM - Yields & Rates 28
Slide 29: Net Interest Income at Risk
Net Interest Income at Risk (1) Forward Curve +2%, +1%, & -1% Gradual Change in Rates Managing Interest Rate Risk Estimated impact on annualized net interest income over the next 12-month period assuming a gradual change in rates over the next 12-month period above and beyond any rate change already
Slide 30: Noninterest Income Trends Linked Quarter
Noninterest Income Trends Linked Quarter 30
Slide 31: Noninterest Income Trends Prior-Year Quarter
Noninterest Income Trends Prior-Year Quarter 31
Slide 32: Mortgage Banking Income
Mortgage Banking Income ($MM) 1Q12 4Q11 3Q11 2Q11 1Q11 Origination and secondary marketing $31.3 $21.2 $15.6 $11.5 $19.8 Servicing fees 11.8 12.0 12.1 12.4 12.5 Amortization of capitalized servicing (9.3) (8.8) (9.6) (9.1) (9.9) Other mortgage banking income 5.0 3.7 3.8 4.3 3.8 Sub-total 38.8 28.1 2
Slide 33: Noninterest Expense Trends Linked Quarter
Noninterest Expense Trends Linked Quarter 33
Slide 34: Noninterest Expense Trends Prior-Year Quarter
Noninterest Expense Trends Prior-Year Quarter 34
Slide 35: Balance Sheet
Balance Sheet 35
Slide 36: Balance Sheet — Assets
Balance Sheet — Assets Mar. "12 v8.11 in mitions) ‘Dee Si, Mor Si _ Amount Percent ‘Assets (Cash and de frombanks 116-5 12009 S (98) -8.1% Federal funds sold and securties purchased under resale agreements ° ° 2 Interest bearing deposts in banks 1 130 2 169% Trading account securties “6 164 (105) 63
Slide 37: Balance Sheet - Liabilities and Shareholders' Equity
Balance Sheet - Liabilities and Shareholders' Equity 37
Slide 38: Earning Assets and Funding Composition
Earning Assets and Funding Composition (1) (1) Average balances (2) Interest bearing liabilities + DDA noninterest bearing Funding (2) Earning Asset Composition 38
Slide 39: Investment Securities
ivestment Securities Tt TI J ey O FY Ss ww 7 \¢ 7 a OL oe -SZS ry \f VW OSC “OY =
Slide 40: Available-For-Sale and Other Securities
Available-For-Sale and Other Securities ($MM) % of Average Earning Assets Average Balance & Yield 40
Slide 41: Securities Overview - 3/31/12
Securities Overview (1) - 3/31/12 41
Slide 42: Securities Mix Analysis
Securities Mix Analysis 12/31/11 $8.6B (1) 3.2 Years 12/31/09 $8.6 B 2.5 Years 12/31/10 $9.8B (1) 2.4 Years Excludes variable rate demand notes: $139 million at 12/31/10, $84 million at 12/31/11, and $75 million at 3/31/12. $622 MM of Agency CMO / MBS classified as HTM included at amortized cost (1)
Slide 43: Selected Securities - Assessment
Selected Securities - Assessment (1) Par Value Book Value Market Value MTM Alt-A mortgage backed $58 MM $55 MM $49 MM $(7) MM - Purchased 2006 % to Par Value 83% - 3 securities - senior tranche - 10/1 ARMs or 30 year fixed; no option ARMs - Cash flow analysis performed monthly to test for OTTI with
Slide 44: Loan Portfolio Overview
an Portfolio Overview TI Bi) SG VAS 0: 4 jj ._ = < oa eh — O OH eee*s Ot HG
Slide 45: Credit Exposure Composition
($B) 3/31/12 3/31/12 3/31/12 12/31/11 12/31/11 12/31/11 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 $15.8 39 % $14.7 38 % $13.1 34 % $12.9 35 % $13.5 33 % Commercial real estate 6.0 14 5.8 14 6.7 18
Slide 46: Total Loans and Leases Portfolio Overview
Total Loans and Leases Portfolio Overview ($B) $20.7 $6.8 $2.9 $1.3 $2.9 $1.4 $0.8 $3.8 EOP Outstandings - $40.7Billion (1) (1) 3/31/12 By State 46
Slide 47: Linked Quarter Loan and Lease Trends
Linked Quarter Loan and Lease Trends 47
Slide 48: Loan and Lease Trends Prior-Year Quarter
Loan and Lease Trends 48 Prior-Year Quarter
Slide 49: Gross Loan Growth
Gross Loan Growth Source: SNL; company reports MTB's growth includes acquisition of Wilmington Trust's Loan Portfolio CMA's growth includes acquisition of Sterling Bank's Loan Portfolio PNC's growth includes acquisition of RBC USA Prior Year Quarter 1Q11-1Q12 Linked Quarter 4Q11-1Q12 49
Slide 50: Total Commercial Loans
tal Commercial Loans Tt TI J ey O FY Ss ww 7 \¢ 7 1" OL oe -SZS ry \f VW estes “OY =
Slide 51: Total Commercial Loans - Granularity
Total Commercial Loans - Granularity EOP Outstandings - $21.9 Billion (1) 918 2% 36,820 98% (1) 3/31/12 Loans by Dollar Size # of Loans by Size $5 MM - < $10 MM 481 $10 MM - < $25 MM 365 $25 MM - < $50 MM 65 > $50 MM 7 Total 841 51
Slide 52: Commercial Loans - Risk Grade Distribution
Commercial Loans - Risk Grade Distribution PD Risk Grades (Moody's or Regulatory Definition) Percent of End of Period Balances(1) ($B) $20.6 $19.7 26% 11% 16% 33% 25% 8% $20.5 15% 7% $21.4 52 24% 34% 32% 18% 34% 41% 17% 36% 45% Change 3/12 vs. 3/09 (1) Excludes loans acquired in the FDIC-assisted Fi
Slide 53: Commercial and Industrial Loans: Credit Quality Trends
Diversified by sector and geographically within our Midwest footprint Focus on middle market companies with $25-$500 million in sales Lend to defined relationship oriented clients where we understand our client's market / industry and their durable competitive advantage Underwrite to historical cash
Slide 54: C&I - Trends
C&I - Trends ($MM) Change Analysis Period-End Balance ($MM) 1Q12 vs. 4Q11 1Q12 vs. 1Q11 New $1,378 $4,294 Net payments / payoffs / takedowns (205) (1,715) Net reclassifications 0 73 Charge-offs (34) (114) Net change $1,139 $2,539 7.7% 19.1% 54
Slide 55: C&I - Auto Industry
C&I - Auto Industry (1)(4) Outstandings (2) 1Q12 4Q11 3Q11 2Q11 1Q11 Suppliers Domestic $ 178 $ 145 $ 153 $ 127 $ 135 Foreign 19 18 20 20 23 Total suppliers 197 163 173 146 157 Dealers Floorplan-domestic 831 781 625 651 620 Floorplan-foreign 478 388 289 329 463 Total floorplan 1,309 1,169 913 980 10
Slide 56: Commercial Real Estate: $5.7 Billion
Commercial Real Estate: $5.7 Billion (1)(2) CRE - Core ($3.9 Billion) Long-term meaningful relationships... many have been customers for 20+ years with opportunities for additional cross-sell Primarily Midwest footprint projects generating adequate return on capital Proven CRE participants... 28+ ye
Slide 57: CRE - Portfolio Composition
CRE - Portfolio Composition Permanent 24% Mini-perm Traditional 49% Construction 10% Non Project Loans 8% Lines / Letters of Credit 1% Permanent Qualified 9% Mini-perm Traditional - Typically 2- to 5-year term loans to allow properties to reach stabilized operating levels after construction, rehab,
Slide 58: CRE - Core vs. Noncore
CRE (1) - Core vs. Noncore ($MM) O/S ACL Criticized NALs Prior Charge-offs(2) ACL Credit Mark (3) 12/31/11 Core Total $3,978 $125 $563 $26 $ 25 3.13% 3.75% Noncore SAD 735 182 460 195 253 24.76 44.03 Noncore Other 1,113 88 151 9 17 7.91 9.29 Noncore Total 1,848 270 611 204 270 14.61 25.50 CRE Total
Slide 59: CRE - Maturity Schedule By Loan Type
CRE (1) - Maturity Schedule By Loan Type - 3/31/12 ($MM) Within 12 Mos. 1 - 2 Years 2 - 5 Years 5+ Years Total Construction $ 270 $ 194 $ 114 $20 $ 597 Lines / letters of credit 31 4 41 8 84 Non project loans 134 48 174 108 465 Mini-perm traditional 1,194 616 715 31 2,556 Permanent qualified 172 129
Slide 60: Total Consumer Loans and Leases
Total Consumer Loans and Leases 60
Slide 61: Total Consumer Loans and Leases
Total Consumer Loans and Leases - 3/31/12 ($B) Amt. Pct. Home equity $ 8.3 44% Residential RE 5.3 28 Automobile 4.8 25 Other consumer 0.5 3 Total consumer $18.8 100% By Loan Type 61
Slide 62: Indirect Auto Lending
Deep local relationships with high quality Dealers Consistently in the market for over 50 years #1 Bank in the U.S. in Dealer Satisfaction, with dominant market position in the Midwest with over 2,700 dealers Floorplan and dealership real estate lending, core deposit relationship, full Treasury Mana
Slide 63: Auto Loans - Production and Credit Quality Overview
Auto Loans - Production and Credit Quality Overview 1Q12 1Q12 4Q11 3Q11 2Q11 1Q11 4Q10 3Q10 2Q10 Originations Amount ($MM) $962 $962 $ 782 $ 980 $ 1,018 $ 795 $ 796 $ 1,010 $ 944 % new vehicles 47% 47% 57% 56% 52% 44% 48% 50% 49% Avg. LTV 88% 88% 87% 88% 89% 88% 88% 89% 88% Avg. FICO 756 756 761 762
Slide 64: Home Equity: $8.3 Billion
Home Equity: $8.3 Billion (1) Focused on geographies within our Midwest footprint with relationship customers US Federal Housing Finance Agency (FHFA): only an 8% average decline in Ohio home values since 2005 Credit Quality Trends 1Q12 4Q11 3Q11 2Q11 1Q11 30+ days PD & accruing (1) (2) 1.03% 1.18%
Slide 65: Residential Mortgages: $5.3 Billion
Focused on geographies within our Midwest footprint Traditional product mix... very limited nontraditional exposure as we never originated sub-prime, payment option ARMs, or negative amortization loans $481 MM of Interest Only loans... targeted within executive relocation activities $267 MM of Alt-A
Slide 66: Residential Mortgages - LTV, FICO, Originations
Residential Mortgages - LTV, FICO, Originations Weighted average FICOs reflect currently updated customer credit scores (2) Excludes loans acquired in the FDIC-assisted Fidelity Bank acquisition on March 30,2012 Only owned-portfolio originations Weighted average at origination 1Q12 4Q11 3Q11 2Q11 1Q
Slide 67: Other Consumer Loans
Other Consumer loans EOP Outstandings - $0.5 Billion (1) Collateralized Autos, untitled vehicles, small boats, mobile homes and other miscellaneous Primarily for existing customers Performed within expectations over the past year, though varies by collateral type (1) 3/31/12 67
Slide 68: Credit Quality Review
Credit Quality Review 68
Slide 69: Credit Quality Trends Overview
Credit Quality Trends Overview 1Q12 4Q11 3Q11 2Q11 1Q11 1Q10 Net charge-off ratio 0.85% 0.85% 0.92% 1.01% 1.73% 2.58% 90+ days PD and accruing (1,2) 0.15 0.19 0.16 0.15 0.19 0.31 NAL ratio (3) 1.15 1.39 1.45 1.57 1.66 4.78 NPA ratio (4) 1.29 1.51 1.57 1.67 1.80 5.17 Criticized asset ratio (5) 5.80 6
Slide 70: Total Commercial Loan - Delinquencies
Total Commercial Loan - Delinquencies (1) (2) Period end; delinquent but accruing as a % of related outstandings at EOP Excludes loans acquired in the FDIC-assisted Fidelity Bank acquisition on March 30,2012 90+ Days 30+ Days 70
Slide 71: Total Consumer Loan Delinquencies
Total Consumer Loan Delinquencies (1) (2) 90+ Days 30+ Days Period end; delinquent but accruing as a % of related outstandings at EOP Excludes loans acquired in the FDIC-assisted Fidelity Bank acquisition on March 30,2012 71
Slide 72: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) (2) Period end; delinquent but accruing as a % of related outstandings at EOP (2) Excludes loans acquired in the FDIC-assisted Fidelity Bank acquisition on March 30,2012 (3) Excludes GNMA FAS 140 government guaranteed (3) (3) 90+ Days 30+ Days 72
Slide 73: Net Charge-Offs
Net Charge-Offs ($MM) ($MM) Consumer Loans Commercial Loans (2) (1) 73
Slide 74: Net Charge-Offs ($MM)
Net Charge-Offs ($MM) 1Q12 4Q11 3Q11 2Q11 1Q11 Commercial and industrial $28.5 $10.9 $17.9 $18.7 $42.2 Commercial real estate 10.5 28.4 24.4 27.6 67.7 Total commercial 39.0 39.3 42.3 46.3 109.9 Automobile 3.1 4.2 3.9 2.3 4.7 Home equity 23.7 23.4 26.2 25.4 26.7 Residential mortgages 10.6 9.7 11.6 16
Slide 75: Continued Decline in Nonaccrual Loans
Continued Decline in Nonaccrual Loans ($MM) ($MM) 10% (8)% (18)% (3)% (19)% NAL Inflows NALs- EOP (4)% (27)% (15)% (38)% 23% 75 1Q12 vs. % ^ 1Q10 -74% 1Q11 -27% 4Q11 -14% (32)%
Slide 76: Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs)
Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs) 76
Slide 77: Nonperforming Asset Flow Analysis
($MM) 1Q12 4Q11 3Q11 2Q11 1Q11 NPA beginning-of-period $590.3 $614.0 $652.9 $690.9 $844.8 Additions / increases 134.6(1) 189.1 153.6 210.3 192.0 Return to accruing status (32.1) (30.7) (25.8) (68.4) (70.9) Loan and lease losses (75.4) (79.1) (80.0) (74.9) (128.7) OREO gains (losses) (0.3) (0.9) (0.2
Slide 78: Total Commercial Loans - Criticized Loan Flow Analysis
($MM) 1Q12 4Q11 3Q11 2Q11 1Q11 Criticized beginning-of-period $2,147 $2,291 $2,379 $2,661 $3,074 Additions / increases 210 291 357 250 170 Advances 25 42 46 44 62 Upgrades to "Pass" (137) (139) (252) (272) (239) Paydowns (217) (280) (181) (232) (295) Charge-offs (51) (58) (58) (73) (112) Criticized
Slide 79: Accruing Loans Days Past Due and Troubled Debt Restructured Loans
Accruing Loans 90 Days Past Due and Troubled Debt Restructured Loans 79
Slide 80: Provision, NCO, and ACL
Provision, NCO, and ACL ($MM) (1) End of period Allowance for Credit Losses vs. NALs (1) Loan Loss Provision vs. Net Charge-offs 80 1Q12 vs. LLP NCO 1Q10 -85% -65% 1Q11 -30% -50% 4Q11 -24% -1%
Slide 81: Rapid Improvement in Credit Quality - Nonaccrual Loans Ratio
Rapid Improvement in Credit Quality - Nonaccrual Loans Ratio 3/31/12 Change from 3/31/11 Source: SNL and company reports 81
Slide 82: Relative Performance - LLR / NAL Coverage
Relative Performance - LLR / NAL Coverage LLR / NAL: Defined as reserves on loses for loans and finance leases divided by nonaccrual loans Source: SNL and company reports Peers: ASBC, BBT, CMA, FHN, FITB, KEY, ZION, MTB, PNC, RF 82
Slide 83: Rapid Improvement in Credit Quality - Loan Loss Reserves / Nonaccrual Loans
Rapid Improvement in Credit Quality - Loan Loss Reserves / Nonaccrual Loans Source: SNL and company reports 3/31/12 Change from 3/31/11 83
Slide 84: Relative Performance - LLR/Loans Ratios
Relative Performance - LLR/Loans Ratios 84 LLR / Loans: Defined as Reserves for loan losses as a percent of gross loans including held-for-sale Source: SNL and company reports Peers: ASBC, BBT, CMA, FHN, FITB, KEY, ZION, MTB, PNC, RF
Slide 85: Deposits
Deposits 85
Slide 86: Deposits
Deposits ($B) Avg. Total Deposits - Rate / Mix Core CD Maturities & Avg. Maturity Rate Rate 0.90% 0.82% 0.77% 0.61% 0.55% Estimates 86
Slide 87: Deposit Trends Linked Quarter
Deposit Trends Linked Quarter 87
Slide 88: Deposit Trends Prior-Year Quarter
Deposit Trends Prior-Year Quarter 88
Slide 89: Total Core Deposit Trends
Average ($8) Commercial Derrand deposits - non-interest bearing NCA 1012 Demand deposits - interest bearing 1.0 Other core deposits ® 59 Total 166 Consumer Demand deposits - non-interest bearing juumEC) Demand deposits - interest bearing 47 Other core deposits ® 18.5 Total 248 Total Demand deposits
Slide 90: Capital
Capital 90
Slide 91: Capital
1Q12 4Q11 3Q11 2Q11 1Q11 Tang. common equity/ tang. assets 8.33% 8.30% 8.22% 8.22% 7.81% Tang. equity/tang. assets 9.03 9.02 8.88 8.91 8.51 Tier 1 common risk-based capital 10.15 10.00 10.17 9.92 9.75 Tier 1 leverage 10.55 10.28 10.24 10.25 9.80 Tier 1 risk-based capital 12.22 12.11 12.37 12.14 12.0
Slide 92: Capital Ratios
Capital Ratios (1) End-of-period 4Q10 - Raised $920 MM of common equity and repurchased $1.4 B of TARP related preferred shares (2) 92
Slide 93: Capital Analysis - 3/31/12
Capital Analysis - 3/31/12 Source: SNL, Company reports. Tier 1 Common Risk-Based Tangible Common Equity TARP- fully repaid 93
Slide 94: Franchise and Leadership
Franchise and Leadership 94
Slide 95: Huntington Bancshares Overview
Huntington Bancshares Overview Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $56 Billion Employees (1) - 11,166 Franchise: Footprint 6 states: OH, MI, PA, IN, WV, KY 669 branches / 1,368 ATMs Retail and Business Banking 5 Areas - Mortgage bank
Slide 96: 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 Share Columbus, OH 1 77 $10,318 24.1% Cleveland, OH 5 78 4,056 8.0 Detroit, MI 8 52 3,239 4.3 Toledo, OH 1 42 2,350 24.0 Pittsburg
Slide 97: Increase Convenience - Ohio: Giant Eagle Partnership
#1 in Ohio Branches Planned Rollout 12% the cost of a traditional branch >40 opened >70 by end of 2012 >100 by end of 2015 Cash flow breakeven in < 2 years Increase Convenience - Ohio (1) Branch share source, SNL Financial, 6/30/2010 % of Branches % of Branches % of Branches MSA 6/10 Pro Forma (1) P
Slide 98: In-Store: A More Efficient Alternative
In-Store: A More Efficient Alternative Giant Eagle - A great partner with high quality customers On average, customer traffic is 5-6 times more than a traditional branch with an average supermarket customers visiting 2-2.5 times per week A targeted customer base with very attractive demographics Pla
Slide 99: Increase Convenience - Michigan: Meijer Partnership
136 Branches + 80 In-Store = 216 Branches Over Time Michigan Branches #6 in FDIC Deposit Market Share Planned Rollout 1 opening in May 2012 >20 by end of 2012 >35 by end of 2013 Increase Convenience - Michigan (1) Branch share source, SNL Financial, 6/30/2011 % of Branches % of Branches % of Branche
Slide 100: 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 '09 100 % 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 Channel
Slide 101: Leadership Team
Leadership Team Leadership Team Business Segments 101
Slide 102: Leadership Team Experience
Experience - Yrs Experience - Yrs Appointed Banking HBAN Stephen Steinour Chairman, President and CEO 1Q09 30 3 Zahid Afzal SEVP - Chief Information Officer 1Q06 27 (1) 6 Dan Benhase SEVP - Wealth Advisors, Government Finance, and Home Lending 2Q06 29 11 Jim Dunlap SEVP - Regional & Commercial Banki
Slide 103: Business Segment Overview
Business Segment Overview 103
Slide 104: Business Segment Loans & Deposits - 1Q12
Business Segment Loans & Deposits - 1Q12 Average Total Deposits - $43.5 B Average Total Loans - $39.1 B AFCRE $11.5B 29% Retail & Business Banking $12.4B 32% Treasury / Other $0.1B 0% Regional & Comm'l Banking $9.3B 24% WGH $5.9B 15% AFCRE $0.8B 2% Treasury / Other $1.1B 3% Retail & Business Banking
Slide 105: Total Loans and Leases - By Business Segment
Total Loans and Leases - By Business Segment ($B) Retail & Business Banking Regional & Comm'l Banking AFCRE WGH Treas. / Other Total C&I $3.2 $8.8 $2.0 $0.8 $0.1 $14.8 CRE 0.4 0.4 4.8 0.2 0.0 5.9 Total commercial 3.6 9.2 6.8 1.0 0.1 20.7 Automobile loans & leases 0.0 0.0 4.6 0.0 0.0 4.6 Home equity
Slide 106: Total Deposits - By Business Segment
Total Deposits - By Business Segment ($B) Retail & Business Banking Regional & Comm'l Banking AFCRE WGH Treas. / Other Total DDA-noninterest bearing $4.4 $2.7 $0.5 $ 3.5 $0.2 $11.3 DDA-interest bearing 4.5 0.1 0.0 0.9 0.0 5.6 Money market deposits 7.4 1.6 0.2 3.9 0.0 13.1 Savings and other domestic
Slide 107: Business Segment Contribution
Business Segment Contribution ($MM) 1Q12 2011 2010 2009 Retail & Business Banking $17.5 $175.4 $131.0 $(26.5) Regional & Comm'l Banking 24.0 109.9 38.5 (158.7) AFCRE 83.5 186.2 46.5 (588.2) WGH 18.9 25.9 34.8 1.8 Treas. / Other 9.3 45.3 61.6 (251.3) Goodwill Impairment (1) -- -- (2,573.8)(1) Total N
Slide 108: Business Segment Overview: Commercial and Retail Banking
Business Segment Overview Commercial Banking Executive - Jim Dunlap 11 Region Presidents Middle Market Commercial Banking Specialty Banking Large Corporate Health-care Not-for-Profit Equipment Finance International Services Treasury Management Capital Markets Derivatives Foreign Exchange Securities
Slide 109: Commercial Banking Regions
11 Commercial Banking Regions Greater Akron/Canton Mahoning Valley Central Ohio NW Ohio S. Ohio/KY Greater Cleveland Central Indiana West Michigan East Michigan West Virginia Pittsburgh Jim Dunlap 109
Slide 110: Regional Banking Presidents
Experience - Yrs Experience - Yrs Region Appointed Banking HBAN Jim Dunlap West Michigan 1Q06 32 32 Mike Fezzey East Michigan 4Q10 1 1 David Hammer Pittsburgh 3Q09 24 2 Frank Hierro Mahoning Valley 1Q00 33 28 Jim Kunk Central Ohio 1Q94 30 30 Mike Newbold Central Indiana 4Q06 34 7 Mark Reitzes Southe
Slide 111: Retail and Business Banking Areas
5 Retail and Business Banking Areas Central Northwest West Northeast East Mary Navarro 111
Slide 112: Retail & Business Banking Executives
Experience - Yrs Experience - Yrs Area Appointed Banking HBAN Jim Baron Branch Sales & Service 4Q10 32 7 Jonathan Greenwood Central Retail Area 2Q11 26 18 Kevin Grose West Retail Area 1Q12 22 20 Loretta Stanton Northeast Retail Area 2Q10 21 21 Robert Soroka East Retail Area 2Q09 26 8 Tracey Bailey N
Slide 113: Business Segment Overview: Wealth, Home Lending, Auto Finance and CRE
Business Segment Overview Wealth Advisors, Government Finance, and Home Lending Executive - Dan Benhase Wealth Advisors Trust / Portfolio Management Private Banking Retail Brokerage Government Finance Public Funds - Treasury Services and Lending Corporate Trust National Settlement Home Lending Mortg
Slide 114: Safe Harbor Disclosures
Safe Harbor Disclosures 114
Slide 115: Use of non-GAAP financial measures
Use of non-GAAP financial measures This 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 f
Slide 116: Significant Items
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 be associated with ordinary banking activities, are so unusually large that their outsized impact is believed
Slide 117: 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 — Investor Presentation (May 2012) on 6ix