Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q1 2010 Earnings Presentation
187 slides from Huntington Bancshares's earnings presentation, May 17, 2010
Slide 1: 2010 Second Quarter Investor Handout
May 15, 2010 2010 Second Quarter Investor Handout 1
Slide 2: Table of Contents
Table of Contents Overview Discussion 3 Quarterly Financial Review 27 Quarterly performance highlights 28 Pre-tax, pre-provision income 30 Significant items impacting comparisons 31 Income Statement 32 Net interest margin 33 Noninterest income 37 Noninterest expense 40 Operating leverage / efficienc
Slide 3: Overview Discussion
Overview Discussion (Huntington —
Slide 4: Earnings Performance Assessment
Earnings Performance Assessment Return to profitability $39.7 MM reported net income $0.01 EPS Includes $38.2 MM, or $0.05 EPS, net tax benefit One year ahead of analysts consensus expectations Anticipate full-year profitability in 2010 Pre-tax, pre-provision income growing $251.8 MM pre-tax, pre-pr
Slide 5: Pre-Tax, Pre-Provision Income
1Q08 214.8 2Q08 251.2 3Q08 289.4 4Q08 195.1 1Q09 224.6 2Q09 229.3 3Q09 237.1 4Q09 242.1 1Q10 251.8 2Q10 3Q10 4Q10 Pre-Tax, Pre-Provision Income (1) 5 ($MM) $275 Target PTPP/Avg RWA PTPP/Avg Assets 4Q08 0.0154 0.0143 1Q09 0.0178 0.0166 2Q09 0.02 0.0178 3Q09 0.0212 0.0184 4Q09 0.0222 0.0185 1Q10 0.023
Slide 6: Pre-Tax, Pre-Provision Earnings Power Sensitivity Analysis on $275 MM
Pre-Tax, Pre-Provision Earnings Power 6 Sensitivity Analysis on $275 MM
Slide 7: Balance Sheet Assessment
Balance Sheet Assessment Liquidity position has never been stronger $10.3 billion in cash and investment securities Funding has never been more balanced 92% loan-to-deposit ratio Growth of low-cost core deposits Capital levels are adequate Raised $1.7 billion of regulatory capital in 2009... $1.3 bi
Slide 8: Credit Quality Assessment
Credit Quality Assessment Loan Portfolio Significantly De-Risked Delinquencies are trending down Commercial "criticized" loan migration slowing Overall "criticized" loans declining Decline in 30 days past due and accruing loans... down 13% for total commercial loans and 4% for total consumer loans C
Slide 9: Net Interest Income Trends
Net Interest Income Trends Net Interest Margin Roll-off of higher priced CDs Mix shift to lower cost deposits Loan pricing opportunities Positioning for higher interest rates Earning Assets Loans Opportunities: C&I, small business, and auto Challenges: CRE, home equity, residential mortgage Investme
Slide 10: Deposit Trends and CD Maturities
4Q09 1.9 0.0305 1Q10 2.7 0.028 2Q10 2.9 0.0278 3Q10 2.5 0.0287 4Q10 1.3 0.0211 1Q11 1.1 0.0185 DDA-Nonint. Bearing DDA-Int. Bearing MMA Savings / Other Core CDs Noncore 1Q09 0.145 0.107 0.146 0.132 0.335 0.135 2Q09 0.152 0.115 0.161 0.127 0.316 0.133 3Q09 0.156 0.13 0.192 0.121 0.294 0.111 4Q09 0.16
Slide 11: Fee Income Trends
Fee Income Trends Drivers of Growth Trust income Brokerage income Treasury management Challenges Mortgage banking income Deposit service charge outlook / Reg. E impact Insurance income Electronic service charges 11
Slide 12: Trust Income Fee Income Trends
Trust Income 1Q09 24.81 2Q09 25.722 3Q09 25.832 4Q09 27.275 1Q10 27.765 Fee Income Trends 12 Trust Services Retail Investment Products Trust Income 1Q09 18.3 2Q09 14.1 3Q09 16.4 4Q09 16.1 1Q10 16.9 ($MM) ($MM)
Slide 13: Deposit Service Charges Trends
Personal Commercial 1Q09 42.682 27.197 2Q09 48.946 26.407 3Q09 53.286 27.524 4Q09 50.093 26.664 1Q10 43.1036 26.236 Deposit Service Charges Trends 13 Commercial Service Charges Personal Service Charges Other NSF/OD (Other) NSF/OD( ATM/DC) 1Q09 12.6 10.5 19.6 2Q09 14.654 12 22.3 3Q09 15.347 13.3 24.7
Slide 14: Positioning to Grow Revenues - 2009
Positioning to Grow Revenues - 2009 Timing Segment Description # Staff 3Q09 PFG Columbus investment staff expansion 4 3Q09 PFG HIC new independent advisor channel launched 3Q09 PFG Three new mutual funds launched 3Q09 PFG National Settlements Service launched 4 3Q09 Corporate/Marketing Chief marketi
Slide 15: Positioning to Grow Revenues - 2010
Positioning to Grow Revenues - 2010 Timing Segment Description # Staff 1Q10 Corporate/Technology Initiated development of cross-sell system (MAX) 1 1Q10 Retail Banking Cleveland expanded hours / 7 days a week banking service initiated 150 1Q10 Commercial Banking East Michigan commercial banking team
Slide 16: Noninterest Expense Trends
Noninterest Expense Trends Investments in Growth Retail and Business Banking Commercial Banking Private Financial Group Technology Marketing Opportunities for Reductions Collection expense ORE and foreclosure expense Sourcing initiatives 16
Slide 17: Provision, NCO, and ACL Trends
LLP NCO 1Q09 291.837 341.491 2Q09 413.707 334.407 3Q09 475.136 355.942 4Q09 893.991 444.747 1Q10 235.008 238.481 Provision, NCO, and ACL Trends Allowance for Credit Losses vs. NALs (2) 17 ($MM) Loan Loss Provision vs. Net Charge-offs (1) (1) NCO % annualized End of period ACL % Lns/Lse ACL % NALs 1Q
Slide 18: Capital Outlook
Capital Outlook Current levels are adequate TCE opportunities TCE Tier 1 Common Internal generation of capital DTA recapture -- bp 92 bp Conversion of convertible preferred 71 bp 85 bp No current plans to raise new capital 18
Slide 19: Capital Analysis - 3/31/10
MTB 0.12 PNC 0.134 ZION 0.1368 MI 0.14 HBAN 0.1428 CMA 0.1493 RF 0.158 BBT 0.159 KEY 0.1711 FITB 0.1755 ASBC 0.1815 FHN 0.2139 Capital Analysis - 3/31/10 19 Regulatory Tier 1 Regulatory Total MTB 0.086 PNC 0.099 CMA 0.104 ASBC 0.1057 ZION 0.1101 MI 0.111 BBT 0.117 RF 0.117 HBAN 0.1197 KEY 0.1296 FIT
Slide 20: Capital Analysis - 3/31/10
Capital Analysis - 3/31/10 20 Tangible Common Equity Tier 1 Common Risk-Based MTB 0.0539 HBAN 0.0596 RF 0.0609 PNC 0.0614 BBT 0.0625 ZION 0.063 FITB 0.0661 HBAN+CP (1) 0.0667 KEY 0.0737 FHN 0.0767 ASBC 0.0773 MI 0.0799 CMA 0.0965 Source: SNL, Company reports (1) . Includes impact of convertible pref
Slide 21: TARP Repayment
TARP Repayment Positioned for repayment Strong balance sheet liquidity Current regulatory capital in excess "well capitalized" thresholds Standard guidelines for repayment not defined New regulatory capital thresholds not known Want repayment to be as shareholder friendly as possible Internally gene
Slide 22: 2010 Objectives
2010 Objectives Grow revenue Improve cross sell and share-of-wallet profitability across all business segments Grow key fee businesses... existing and new Lower NCOs and NPAs Reduce CRE "noncore" exposure Report full-year profitability 22
Slide 23: Staged Strategic Plan Implementation
Optimize Current Franchise 23 Staged Strategic Plan Implementation Lay the Foundation Invest in the Core Capital and liquidity Organizational changes Build management depth Credit and risk management Cross-sell / share of wallet Profitability / pricing Invest in capabilities Build out sales forces,
Slide 24: A Comprehensive, Integrated Strategy
24 De-risked balance sheet Enhanced oversight and governance Move away from thrift-like balance sheet of CRE and CDs Improved deposit and loan spreads Greater customer share- of-wallet and profitability Primary bank - what we measure and reward Sales management and capacity Distribution / channels B
Slide 25: Why We Will Succeed
Why We Will Succeed Right-sized our risk appetite Incentive plans requiring cross-sell / share of wallet improvement Enhanced relationship management technology and upgraded MIS / performance tracking mechanisms Rigorous goal setting with frequent, methodical, face-to- face follow-up Improved collea
Slide 26: Important Messages
Important Messages Balance sheet is strong Sufficient capital... returning to generating capital internally... no current plans to raise new capital Credit performance continues to improve Underlying earnings and earning power are growing Increased opportunities / attention on growing revenue Making
Slide 27: Quarterly Financial Review
Quarterly Financial Review 27
Slide 28: Quarterly Performance Highlights
Quarterly Performance Highlights 1Q10 4Q09 3Q09 2Q09 1Q09 EPS $0.01 $(0.56) $(0.33) $(0.40) $(6.79) Pre-tax pre-provision income ($MM) (1) $251.8 $242.1 $237.1 $229.3 $224.6 Net interest margin 3.47% 3.19% 3.20% 3.10% 2.97% Efficiency ratio (2) 60.1% 49.0% 61.4% 51.0% 60.5% Loan & lease growth (3) (
Slide 29: Quarterly Earnings
Quarterly Earnings (sm) Net interest income Provision Noninterest income Noninterest expense Pre-tax income/(loss) Net Income/(loss) PS NM - not meaningful Change Better (Worse) vs. 4009 7009, 1010 4009 1009 Art. Ant $339 Sai S$ s75 |S 198 [S 564 (235.0) (894.0) (291.8) | 659.0 568 19 240.9 248.5 23
Slide 30: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income (1) 30
Slide 31: Quarterly Significant Items Impacting Comparisons - Reconciliation
2010 - 2009 Quarterly 31 Significant Items (1) Impacting Financial Performance Comparisons - Reconciliation
Slide 32: Income Statement
Income Statement (Huntington
Slide 33: Net Interest Margin Trends
Amount 1Q04 0.0336 2Q04 0.0329 3Q04 0.033 4Q04 0.0338 0.0332 1Q05 0.0331 2Q05 0.0336 3Q05 0.0331 4Q05 0.0334 1Q06 0.0332 2Q06 0.0334 3Q06 0.0322 4Q06 0.0328 1Q07 0.0336 2Q07 0.0326 3Q07 0.0352 4Q07 0.0326 1Q08 0.0323 2Q08 0.0329 3Q08 0.0329 4Q08 0.0318 1Q09 0.0297 2Q09 0.031 3Q09 0.032 4Q09 0.0319 1
Slide 34: Net Interest Margin - Yields & Rate Trends
Net Interest Margin - Yields & Rate Trends NIM - Yields & Rates Earning Assets Yield E/A Yield 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Loans 0.0553 0.049 0.0502 0.0504 0.0507 0.0521 Investment Securities 0.0594 0.0571 0.0469 0.0404 0.0325 0.0301 E/A yield 0.0557 0.0499 0.0499 0.0486 0.047 0.047 34 1Q03 2Q03 3
Slide 35: Earning Assets and Funding Composition Trends
Earning Assets and Funding Composition Trends 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Loans and leases 0.87 0.88 0.86 0.83 0.79 0.8 Investment securities 0.09 0.1 0.12 0.15 0.19 0.18 Other E/A 0.03 0.03 0.03 0.02 0.02 0.02 Earning Asset Composition Funding 35 (1) Average balances 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Slide 36: Net Interest Income at Risk
Net Interest Income at Risk (1) Forward Curve +2%, +2%, & -1% Gradual Change in Rates Managing Interest Rate Risk 2% Rate Rise 1% Rate Rise 1% Rate Fall 1Q08 -0.007 -0.001 -0.004 2Q08 -0.006 -0.003 0 3Q08 0.008 0.005 -0.007 4Q08 0.011 0.006 -0.009 1Q09 0.029 0.016 -0.015 2Q09 0.018 0.008 -0.012 3Q09
Slide 37: Noninterest Income Trends Linked Quarter
Noninterest Income Trends 37 Linked Quarter
Slide 38: Noninterest Income Trends Prior-Year Quarter
Noninterest Income Trends 38 Prior-Year Quarter
Slide 39: Mortgage Banking Income
Mortgage Banking Income ($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 Origination & secondary marketing $13.6 $16.5 $16.5 $31.8 $30.0 Servicing fees 12.4 12.3 12.3 12.0 11.8 Amortization of capitalized servicing (10.1) (10.8) (10.1) (14.4) (12.3) Other mortgage banking income 3.2 4.5 4.1 5.4 9.4 Sub-total 19.1 22.
Slide 40: Noninterest Expense Trends Linked Quarter
Noninterest Expense Trends Linked Quarter 40
Slide 41: Noninterest Expense Trends Prior-Year Quarter
Noninterest Expense Trends 41 Prior-Year Quarter
Slide 42: Noninterest Expense Trends
Noninterest Expense Trends Personnel Other 1Q08 201.943 149.621 2Q08 199.991 177.812 3Q08 184.827 154.169 4Q08 196.785 193.309 1Q09 175.932 191.124 2Q09 171.735 231.4 3Q09 172.152 228.945 4Q09 180.663 215.548 1Q10 183.642 214.451 4Q07 11925 1Q08 11787 2Q08 11251 3Q08 10901 4Q08 10951 1Q09 10540 2Q09
Slide 43: Operating Leverage & Efficiency Ratio Trends
Operating Leverage & Efficiency Ratio Trends 43
Slide 44: Efficiency Ratio Trends
1Q09 2Q09 3Q09 4Q09 1Q10 Efficiency Ratio - Reported 0.605 0.51 0.614 0.49 0.601 Efficiency Ratio - Adjusted 0.598 0.604 0.608 0.601 0.595 Efficiency Ratio Trends (1) Reported revenue and expenses adjusted for automobile operating lease expense and other items affecting comparability including merge
Slide 45: Balance Sheet
Balance Sheet (Huntington —
Slide 46: Balance Sheet — Assets
Balance Sheet — Assets PO en cam ene eae chaastevene tim 6 1a sams pa on Fe on ete reer 2 eeeteaenians ao G renga a 2 a Pern a & AR seer ao mp Se Sr a Pa ey ao ge ee pa red LA fies ae ames at — 3 eee a au a ee Sramooe! ci entan esate mers feet baw mo oT i 8 aa Semvostes me Se ae ee re ae ees a i er
Slide 47: Balance Sheet - Liabilities & Shareholders' Equity
Balance Sheet - Liabilities & Shareholders' Equity 47
Slide 48: Investment Securities
Investment Securities (@ Huntington —
Slide 49: Investment Securities
Investment Securities 4Q05 4290 0.0496 1Q06 4686 0.0523 2Q06 5050 0.0551 3Q06 4945 0.0564 4Q06 4386 0.0613 1Q07 4186 0.0621 2Q07 3882 0.062 3Q07 4626 0.0619 4Q07 4496 0.061 1Q08 4477 0.0588 2Q08 4688 0.0569 3Q08 4687 0.0573 4Q08 4478 0.0594 1Q09 4426 0.0571 2Q09 5307 0.0469 3Q09 6639 0.0404 4Q09 883
Slide 50: Investment Securities Trends
Investment Securities Trends (1) Linked Quarter - Average 50 Treasury/Agency debt with weighted average life of < 2 years Agency CMOs with weighted average life of 3.5 years
Slide 51: AFS Securities Overview - 3/31/10
AFS Securities Overview (1) - 3/31/10 51
Slide 52: Investment Securities - Assessment
Investment Securities - Assessment (1) 52 3/31/10 OCI - accumulated other comprehensive income; pre-tax OTTI - other-than-temporary impairment Par Value Book Value Market Value OCI Alt-A mortgage backed $145 MM $131 MM $114 MM $(17) MM - Purchased 2006 % to Par Value 78% - 7 securities - senior tran
Slide 53: Available for Sale Securities Mix
Mortgage Backed Agency Asset Backed Muni's Treasuries TLGP Debt Other 12/31/03 0.448 0.234 0.13 0.088 0.061 0 0.039 12/31/04 0.337 0.228 0.283 0.098 0.005 0 0.049 12/30/05 0.3695 0.0732 0.3952 0.1204 0.0043 0 0.0374 12/31/06 0.429 0.034 0.362 0.136 0.001 0 0.038 12/31/07 0.521 0.033 0.193 0.154 0 0
Slide 54: Total Loan Portfolio Overview
Total Loan Portfolio Overview 54
Slide 55: Credit Exposure Composition
Credit Exposure Composition ($B) 3/31/10 3/31/10 3/31/10 12/31/09 12/31/09 12/31/09 12/31/08 12/31/08 12/31/08 12/31/07 12/31/07 12/31/07 12/31/06 12/31/06 12/31/06 Amt Pct Amt Pct Amt Pct Amt Pct Amt Pct Commercial & industrial $12.2 33 % $12.9 35 % $13.5 33 % $13.1 33 % $7.8 30 % Commercial real e
Slide 56: Total Loans and Leases - By Business Segment
Total Loans and Leases - By Business Segment ($B) Retail & Business Banking Comm'l Banking Comm'l Real Estate AFDS PFG Treas. / Other Total C&I $2.9 $7.0 $0.8 $1.0 $0.6 $-- $12.3 CRE 0.6 0.4 6.6 -- 0.2 -- 7.7 Total commercial 3.5 7.4 7.4 1.0 0.8 -- 20.0 Automobile loans / leases -- -- -- 4.3 -- -- 4
Slide 57: Total Loans and Leases Portfolio Overview By State
Other 0.08 Florida 0.02 Kentucky 0.03 West Virginia 0.05 Pennsylvania 0.06 Indiana 0.07 Michigan 0.15 Ohio 0.54 Total Loans and Leases Portfolio Overview EOP Outstandings - $36.9 Billion (1) ($B) 57 By State $20.1 $5.5 $2.5 $1.3 $2.3 $1.9 $0.6 $3.0 (1) 3/31/10
Slide 58: Loan and Lease Trends Linked Quarter - Average
Loan and Lease Trends Linked Quarter - Average 58
Slide 59: Loan and Lease Trends Prior-Year Quarter - Average
Loan and Lease Trends Prior-Year Quarter - Average 59
Slide 60: Total Commercial Loans
Total Commercial Loans (Huntington —
Slide 61: Total Commercial Loans By Industry Sector
Public Admin & Other 0.0067 Agriculture 0.0102 Energy 0.0214 Wholesale Trade 0.036 Transportation 0.038 Construction 0.0492 Retail Trade 0.0976 Manufacturing 0.1046 Services 0.2174 Finance, Insurance, RE 0.419 Total Commercial Loans By Industry Sector EOP Outstandings - $19.7 Billion (1) 61 $8.3 $4.
Slide 62: Commercial Loans - Risk Grade Distribution
Commercial Loans - Risk Grade Distribution by % 62 PD Risk Grades (Moody's or Regulatory Definition) 12/08 6/09 9/09 12/09 3/10 1-3 (A1) 680 505 406 377 373 4 (Ba1) 2928 2120 2105 2069 1988 5 (Ba2) 3266 2821 2860 2643 2622 6 (Ba3) 5105 3930 3554 3559 3509 7 (B1) 4779 4127 3626 3253 2923 8 (B2) 3569
Slide 63: Total Commercial Loans by Size
< $5 MM 38427 $5+ MM 738 Total Commercial Loans # of Loans by Size Loans by Dollar Size (1) $5 MM - < $10 MM 421 $10 MM - < $25 MM 265 $25 MM - < $50 MM 45 > $50 MM 7 Total 738 EOP Outstandings - $19.7 Billion (1) < $5 MM 0.5572 $5 MM - < $10 MM 0.1474 $10 MM - <$25 MM 0.1992 $25 MM - < $50 MM 0.073
Slide 64: Total Commercial Loan Delinquencies
Total Commercial Loan Delinquencies (1) 30+ Days 90+ Days With 1Q08 0.0018 2Q08 0.0014 3Q08 0.0035 4Q08 0.003 1Q09 0 2Q09 0 3Q09 0.0001 4Q09 0 1Q10 0 With 1Q08 0.016 2Q08 0.0106 3Q08 0.0145 4Q08 0.0166 1Q09 0.0095 2Q09 0.0125 3Q09 0.0113 4Q09 0.01 1Q10 0.0091 (1) Period end; delinquent but accruing
Slide 65: Commercial Loans - Criticized Loan Flow Analysis
($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 Criticized beginning-of-period $4,972 $4,855 $4,679 $3,174 $3,330 Additions / increases 306 950 795 2,086 877 Advances 91 110 71 73 137 Upgrades to "Pass" (266) (134) (136) (151) (100) Paydowns (331) (428) (298) (226) (912) Charge-offs (164) (381) (256) (277) (158) Cri
Slide 66: Commercial and Industrial Loans (C&I)
Commercial and Industrial Loans (C&I) 66
Slide 67: C&I Portfolio Overview and Credit Quality Trends
EOP Outstandings - $12.2 Billion (2) Diversified by sector and geographically within our Midwest footprint Granular 6 loans >$50 million... 3% of portfolio 39 loans $20-$50 million... 9% of the portfolio Focus on middle market companies with $10-$100 million in sales 4Q09 portfolio originations asso
Slide 68: C&I - Credit Risk Management Strategies
68 C&I - Credit Risk Management Strategies What We Do Lend within our footprint Lending to defined relationship oriented clients Disciplined credit policies and processes Understanding our client's market / industry and their durable competitive advantage Underwriting to historical cash flows with c
Slide 69: C&I - Credit Risk Management Strategies Outlook
69 C&I - Credit Risk Management Strategies Outlook Target segments include Homebuilder-related entities - moderating stress based on improving economic conditions Construction and specialty contractors - continued higher risk Manufacturing - could be opportunity for measured growth Enhanced focus on
Slide 70: C&I - Portfolio Composition By Industry
70 Other 0.001 Public administration 0.0074 Agriculture and forestry 0.0153 Energy 0.033 Contractors & construction 0.0361 Transportation, communication & utilities 0.0553 Wholesale Trade 0.057 Retail trade - auto dealers 0.0733 Retail trade - other 0.0788 Manufacturing 0.1657 Finance, insurance & r
Slide 71: C&I - Trends
Amount 1Q09 13768 2Q09 13320 3Q09 12547 4Q09 12888 1Q10 12245 C&I - Trends Period-End Balances ($MM) 71 ($MM) Originations $1,055 Net reclassifications 654 Net payments, payoffs, takedowns (2,860) Charge-offs (372) Net change $(1,523) Change Analysis - 1Q10 vs. 1Q09
Slide 72: Total C&I Loan Portfolio Composition By Industry
72 Total C & I Loan Portfolio Composition 72 By Industry - % of Total C&I EOP Outstandings - $12.2 Billion (1) (1) 3/31/10 ($ MM) No. O/S % of Total Delinquent Classified NPA Services 12,324 $3,706 30.2% 3.3% 7.9% 3.6% Finance, insurance & real estate 4,165 2,134 17.4 2.9 10.4 3.8 Manufacturing 3,89
Slide 73: C&I Portfolio Composition By Loan Obligor Size
73 <$500M 0.2187 $500M - <$1MM 0.0953 $1MM - <$5MM 0.294 $5MM - <$10MM 0.1437 $10MM - <$20MM 0.1289 $20MM - <$50MM 0.0863 $50MM and greater 0.0332 C & I - Portfolio Composition By Loan Outstanding Obligor Size & Number of Obligors 73 6 38 115 257 1,718 1,645 28,739 EOP Outstandings - $12.2 Billion (
Slide 74: Total C&I Loan Portfolio Composition By Maturity
74 Franklin In Process 0.0318 Demand 0.0804 0 - 6 Months 0.1683 6 - 12 Months 0.1005 12Mth - 2 Yrs 0.1066 2 - 5 Yrs 0.3524 5+ Yrs 0.1601 Total C & I Loan Portfolio Composition By Maturity 74 EOP Outstandings - $12.2 Billion (1) (1) 3/31/10
Slide 75: C&I Composition Industry By Collateral Quality Assessment
75 Total C & I Loan Portfolio Composition Industry By Collateral Quality Assessment - 3/31/10 75 Strong: LGD 15% or less Average: LGD 16-35% Below Avg: LGD 36-55% Limited: LGD >55% * 1/3 of Limited is associated with unsecured loans ($ MM) O/S Strong Average Below Average Limited (1) Services $3,706
Slide 76: C&I - Change Analysis
C&I - Change Analysis ($MM) Total C&I December 31, 2009 $12,888 New originations 287 Net pay-offs / takedowns (547) Charge-offs (83) Classification changes (300) March 31, 2010 $12,245 76 By Activity
Slide 77: C&I - Credit Quality
77 C & I - Credit Quality 77 Net Charge-offs Net Charge-offs Net Charge-offs Nonaccrual Loans Nonaccrual Loans ($ MM) Amount Pct. (2) % of Total Amount Pct. (3) Services $26.1 2.85% 35.1% $135.0 3.6% Manufacturing 26.6 5.16 35.8 133.4 6.6 Finance, insurance & real estate 4.6 0.84 6.2 80.2 3.8 Retail
Slide 78: C&I - Credit Quality By Segment
78 By Segment - 3/31/10 78 C & I - Credit Quality ($MM) O/S 30+ PD Accruing Class. NAL's ACL C & I (Excluding segments below) $11,196 0.53% 9.50% 3.74% 3.91% Residential homebuilder related 439 0.28 26.75 9.98 6.32 Construction & contractors 439 2.87 15.74 6.14 3.92 Auto industry suppliers 171 2.46
Slide 79: C&I - Auto Industry
79 C & I - Auto Industry (1) Outstandings (2) ($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 Suppliers Domestic $ 147 $ 163 $ 184 $ 196 $ 209 Foreign 24 24 31 33 33 Total suppliers 171 187 215 229 242 Dealers Floorplan-domestic 363 388 298 444 549 Floorplan-foreign 296 283 252 339 395 Total floorplan 659 671 550 78
Slide 80: Commercial Real Estate Loans (CRE)
Commercial Real Estate Loans (CRE) 80
Slide 81: CRE Portfolio Overview
EOP Outstandings - $7.5 Billion (1) Granular portfolio with geographic and project diversification throughout our footprint Construction lending targeted to major metro markets CRE - Retail ($2.1 billion) Loans originated with quality developers that have experience and financial capacity to support
Slide 82: CRE - Portfolio Composition By Property Location and Loan Type
82 Construction Mini-Perm Traditional Perm Qualified Permanent Non Project Loans Line/Letter of Credit 0.1935 0.3475 0.0781 0.2797 0.0728 0.0285 CRE - Portfolio Composition By Property Location By Loan Type EOP Outstandings - $7.5 Billion (1) Permanent 28% Mini-perm Traditional 35% Construction 19%
Slide 83: CRE - Trends
Amount 4Q08 10098 1Q09 9261 2Q09 8946 3Q09 8715 4Q09 7689 1Q10 7456 CRE - Trends Period-End Balances ($MM) 83 ($MM) Originations $ 163 Takedowns 963 Payments (1,612) Reclassifications (624) Charge-offs (695) Net change $(1,805) Change Analysis - 1Q10 vs. 1Q09
Slide 84: CRE - Change Analysis
CRE - Change Analysis ($MM) SFHB Retail Other Total CRE December 31, 2009 $857 $2,115 $4,717 $7,689 New originations -- -- -- -- Net pay-offs / takedowns (36) (45) (55) (135) Charge-offs (23) (24) (43) (90) Net reclass 6 19 (32) (8) March 31, 2010 $805 $2,064 $4,587 $7,456 84 By Activity By Type ($M
Slide 85: CRE - Credit Quality Overview By Segment
85 By Segment - 3/31/10 85 CRE - Credit Quality Overview Current Coverage Current Coverage Current Coverage ($MM) O/S 30+ PD Accruing Class. NAL's ACL Write-downs (1) Credit Mark (2) CRE (Exc. SFHB & Retail) $4,587 1.12% 16.87% 7.80% 8.12% 3.70% 11.3% SFHB 805 3.47 59.08 27.13 18.63 17.55 30.8 Retai
Slide 86: CRE - Credit Quality
86 CRE - Credit Quality 86 ($ MM) Net Charge-offs Net Charge-offs Net Charge-offs Nonaccrual Loans Nonaccrual Loans Amount Pct. (2) % of Total Amount Pct. (3) Retail properties $26.0 4.94% 31.3% $250.8 11.9% Multi-family 9.0 2.69 10.9 104.3 7.8 Single family homebuilders 18.4 8.78 22.1 218.4 26.1 Of
Slide 87: CRE - Credit Quality By Loan Type
87 By Loan Type - 3/31/10 87 CRE - Credit Quality ($MM) O/S 30+ PD Accruing Class. NAL's ACL Construction $1,443 0.64% 36.81% 21.04% 25.66% Lines / letters of credit 213 4.06 32.41 10.03 3.49 Non project loans 543 0.59 6.93 1.93 4.87 Mini-perm traditional 2,591 1.55 25.10 12.80 35.37 Permanent quali
Slide 88: CRE - Maturity Schedule
88 By Loan Type - 3/31/10 88 CRE - Maturity Schedule ($MM) Within 12 Mos. 1 - 2 Years 2 - 5 Years 5+ Years Total Construction $ 861 $ 379 $ 188 $ 15 $1,443 Lines / letters of credit 98 52 32 30 213 Non project loans 203 157 134 48 543 Mini-perm traditional 1,550 491 549 1 2,591 Permanent qualified 3
Slide 89: CRE - Retail
89 (1) 3/31/10 (2) End of period CRE - Retail ($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 Community centers (2) $1,011 $1,037 $1,127 $1,180 $1,222 Mixed / lifestyle (2) 255 253 274 262 259 Regional centers (2) 175 174 181 191 194 Credit / freestanding (2) 252 266 278 294 304 Other (2) 371 385 376 374 388 Retail
Slide 90: CRE - Retail - Credit Quality
EOP Outstandings - $2.1 Billion (1) Portfolio Performance 90 CRE - Retail - Credit Quality ($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 30+ days PD (2) - $ $190 $197 $220 $217 $121 - % 9.20% 9.32% 9.84% 9.43% 5.11% 30+ days PD & accruing (2) - $ $22 $42 $20 $48 $39 - % 1.06 1.98% 0.90% 2.10% 1.63% Classified (2)
Slide 91: CRE - Single Family Homebuilders
EOP Outstandings - $0.8 Billion (1) Portfolio Characteristics Granular portfolio - only 11 projects over $10 million Geographic diversification Primary customers are middle market builders building 50-100 homes per year, limited production builder exposure Continuous monitoring Increased reserves ba
Slide 92: CRE - Single Family Homebuilder - Credit Quality
EOP Outstandings - $0.8 Billion (1) Portfolio Performance 92 CRE - Single Family Homebuilder - Credit Quality ($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 30+ days PD (2) - $ $209 $201 $296 $263 $267 - % 26.0% 23.5% 28.5% 22.6% 21.5% 30+ days PD & accruing (2) - $ $28 $22 $29 $42 $27 - % 3.47% 2.57% 2.81% 3.65% 2
Slide 93: CRE - Portfolio Positioning Core and Noncore
CRE - Portfolio Positioning Segmented Into "Core" and "Noncore" Portfolios Core Well-seasoned regional or institutional owners, developers, and organizations Meaningful relationship in place - opportunities for additional cross-sell Primarily Midwest footprint projects generating adequate return on
Slide 94: CRE - Core vs. Noncore
94 94 CRE - Core vs. Noncore ($MM) O/S ACL Criticized NAL's Prior Charge-offs (1) ACL Credit Mark (2) 9/30/09 CRE Total $8,715 $451 $1,942 $1,134 $343 5.17% 8.77% 12/31/09 Core Total $4,038 $168 $530 $4 $ -- 4.16% 4.16% Noncore SAD $1,809 $410 $1,547 $861 $511 22.66% 39.70% Noncore Other 1,842 186 7
Slide 95: CRE - Core vs. Noncore Change Analysis
CRE - Core vs. Noncore Change Analysis ($MM) Core Noncore Total CRE December 31, 2009 $4,038 $3,651 $7,689 New originations -- -- -- Net pay-offs / takedowns (68) (67) (135) Charge-offs -- (90) (90) Classification changes -- (8) (8) March 31, 2010 $3,970 $3,487 $7,456 95 By Activity
Slide 96: CRE - Portfolio Composition By Property Type and Location
96 CRE - Portfolio Composition - 3/31/10 96 By Property Type and Property Location
Slide 97: CRE - Core Characteristics
EOP Outstandings - $4.0 Billion (1) Long-term relationships... many have been customers for 20+ years. Proven CRE participants... 28+ years average CRE experience 95% of the loans have personal guarantees Income producing loans have weighted average debt service coverage of 1.30X... based on 7% rate
Slide 98: CRE - Noncore Portfolio Composition
98 CRE - Noncore Portfolio Composition - 3/31/10 98 By Property Type and Property Location
Slide 99: CRE - Noncore Characteristics
EOP Outstandings - $3.5 Billion (1) Noncore-Overall 28% aggressive credit mark Updated values to incorporate current market conditions Limited future funding requirements... ~$150 million 95%+ have guarantors 98% is secured debt 89% is within our geographic footprint 73% are "pass" grade or better C
Slide 100: CRE - Noncore Segment Characteristics
CRE - Noncore Segment Characteristics Special Assets Division (SAD) ($1.7 billion) 42% aggressive credit mark Actively working to exit... more aggressive terms - e.g., higher pricing, shorter amortization, sale, etc. The majority of "criticized" loans are managed within SAD Other ($1.8 billion) 11%
Slide 101: Total Consumer Loans and Leases
Total Consumer Loans and Leases 101
Slide 102: Consumer Loans and Leases - 3/31/10 By Type
Auto loans 0.24 Auto leases 0.01 Home equity 0.44 Residential mortgage 0.27 Other consumer 0.04 Consumer Loans and Leases - 3/31/10 By Type 102 Amt. Pct. Auto loans $4.2 24% Auto leases 0.2 1 Home equity * 7.5 44 Residential RE 4.6 27 Other consumer 0.7 4 Total consumer $17.2 100% Home equity lines
Slide 103: Total Consumer Loan Delinquencies
Reported ex. GNMA FAS 140 ex. GNMA FAS 140 + FCMC 1Q08 0.0089 0.0056 2Q08 0.0089 0.0052 3Q08 0.0093 0.0054 4Q08 0.0115 0.0068 1Q09 0.0138 0.0085 0.0087 2Q09 0.0152 0.009 0.0086 3Q09 0.0142 0.0078 0.0069 4Q09 0.0153 0.009 0.0078 1Q10 0.0122 0.0065 0.0062 Total Consumer Loan Delinquencies (1) 30+ Days
Slide 104: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) 30+ Days 90+ Days Residential Mortgages Auto Loans & Lease Home Equity Loans & Lines 2Q08 0.0508 0.0148 0.0118 3Q08 0.0579 0.0174 0.0118 4Q08 0.0574 0.0212 0.0161 1Q09 0.0705 0.0222 0.0149 2Q09 0.0747 0.0214 0.0138 3Q09 0.0623 0.0212 0.0153 4Q09 0.0563 0.0206 0.0153 1
Slide 105: Consumer Loan Credit Risk Management
105 Consumer Loan Credit Risk Management Objective Manage the Probability of Default Footprint Portfolio... markets we know and understand Client Selection... bias for high quality customers and relationship lending vs. third-party originations Disciplined Underwriting... borrower ability to repay,
Slide 106: Automobile Loans & Leases
Automobile Loans & Leases 106
Slide 107: Automobile Loans and Leases Overview
EOP Outstandings - $4.4 Billion (1) Consistency of strategy and commitment to dealers Focus on high service quality and high quality full dealer relationships Since 2001 focused on super-prime customers>750 FICOs in 2009 Fully automated origination and booking system Credit Quality Trends 1Q10 4Q09
Slide 108: Auto Lending - Credit Risk Management Strategies
108 Auto Lending - Credit Risk Management Strategies Performance Drivers Borrower quality - as measured at origination by FICO score - Super Prime with consistent increasing trend FICO score distribution - consistent decline in <670 levels Custom Score - utilized to further segment FICO eligible app
Slide 109: Auto Loans - Production and Credit Quality Overview
Auto Loans - Production and Credit Quality Overview 1Q10 4Q09 3Q09 2Q09 1Q09 4Q08 3Q08 2Q08 Originations Amount ($MM) $ 678 $ 516 $ 394 $ 277 $ 399 $ 360 $ 501 $ 673 % new vehicles 42% 41% 44% 30% 31% 41% 41% 44% Avg. LTV (1) 87% 89% 91% 95% 93% 93% 96% 96% Avg. FICO (1) 769 771 763 759 756 751 751
Slide 110: Auto Loans Accruing Delinquency and Net Charge-offs
90+ DPD 30+ DPD 1Q08 7.7229 50.5184 2Q08 8.8247 53.8421 3Q08 10.1 65.8 4Q08 13 81.4 1Q09 10.5 63.7 2Q09 8.7 58.8 3Q09 9.6 59.2 4Q09 9.2 62.1 1Q10 7.3 54.9 Auto Loans Accruing Delinquency Net Charge-offs 110 1Q08 0.0097 2Q08 0.0094 3Q08 0.0102 4Q08 0.0153 1Q09 0.0156 2Q09 0.0173 3Q09 0.0125 4Q09 0.01
Slide 111: Auto Loans - Loss Rate Trends
Auto Loans - Loss Rate Trends Continued improvement in the early stage loss performance for the 2009 vintage Losses peak in the 18-24 month range, and as the 2009 vintage make up a greater portion of the portfolio and reach their peak loss months, portfolio losses should decline 111 7-9 Month 10-12
Slide 112: Home Equity Loans and Lines
Home Equity Loans and Lines 112
Slide 113: Home Equity Portfolio Overview
EOP Outstandings - $7.5 Billion (1) Focused on geographies within our Midwest footprint Focused on high quality borrowers... >730 FICOs Began exit of broker channel in 2005... <10% of outstandings today Conservative underwriting - manage the probability of default 70%+ of HELOC borrowers consistentl
Slide 114: Home Equity - Credit Risk Management Strategies
114 Home Equity Loans / Lines - Credit Risk Management Strategies Performance Drivers Borrower quality - as measured at origination by Custom Score - utilized to further segment FICO eligible applications - continues to enhance predictive modeling FICO score - consistent increasing trend, with very
Slide 115: Home Equity - Credit Risk Management Outlook
115 Home Equity Loans and Lines - Credit Risk Management Strategies Outlook Expect losses to be consistent to slightly lower throughout 2010 Consistent to improved borrower quality based on updated FICO scores Significant focus on loss mitigation in 2008-2009 - 75% of loan modifications are paying a
Slide 116: Home Equity Loans / Lines - LTV, FICO, Originations
Home Equity Loans / Lines - LTV, FICO, Originations (1) Primarily fixed-rate (2) Weighted average LTVs are cumulative LTVs reflecting the balance of any senior loans (3) Weighted average FICOs reflect currently updated customer credit scores (4) Weighted average at origination (5) Primarily variable
Slide 117: Home Equity - Originations Volume FICO
Home Equity Loans & Lines - Originations 117 Volume FICO 1st Lien New Volume 2nd Lien New Volume 1st Lien FICO 2nd Lien FICO 9/08 102.6408 94.539 760 755 10/08 93.2403 89.5731 765 755 11/08 73.6028 66.7473 764 755 12/08 94.4222 81.0533 767 756 1/09 102.4188 89.3469 768 760 2/09 119.981 100.0523 763
Slide 118: Home Equity Delinquency and Net Charge-offs
90+ DPD 30+ DPD 1Q08 26.5694 96.7818 2Q08 26.4636 87.5066 3Q08 23.2 88.8 4Q08 29 121.7 1Q09 35.7 114.5 2Q09 35.3 117.3 3Q09 45.3 131.2 4Q09 53.3 132.8 1Q10 29.4 105.9 Home Equity Loans and Lines Net Charge-offs 118 1Q08 0.0084 2Q08 0.0094 3Q08 0.0085 4Q08 0.0102 1Q09 0.0093 2Q09 0.0129 3Q09 0.0148 4
Slide 119: Home Equity Loans & Lines - Delinquencies
Home Equity Loans & Lines - Delinquencies (1) 119 $ Delinquent $ Outstanding Outstandings 30-59 $ DPD 60-89 $ DPD 90-119 $ DPD 120+ $ DPD 9/08 7590.1904 48.64468355 23.1994 12.6602 34.8262 10/08 7614.2567 55.45061196 22.6037 13.6441 34.8139 11/08 7622.3494 55.18718689 25.9486 15.0154 34.3289 12/08 7
Slide 120: Residential Mortgages
Residential Mortgages Huntington
Slide 121: Residential Mortgage Portfolio Overview
EOP Outstandings - $4.6 Billion (1) 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 $568 million of Interest Only loans... targeted within executi
Slide 122: Residential Mortgages - Credit Risk Management Strategies
122 Residential Mortgages - Credit Risk Management Strategies Performance Drivers Standard products and borrower quality - as measured at origination by Secondary market underwriting FICO score - consistent increasing trend FICO score distribution - consistent decline in low score levels Non-standar
Slide 123: Residential Mortgages - Borrower's Ability to Pay
123 Residential Mortgages - Credit Risk Management Strategies Continued Focus on Borrower's Ability to Pay for New Originations All loans are fully documented Underwritten to Secondary Market standards Enhanced Loss Mitigation Changed the reporting structure to take advantage of our successful home
Slide 124: Residential Mortgages - Credit Risk Management Outlook
124 Residential Mortgages - Credit Risk Management Strategies Outlook Foreclosure process We are reviewing all foreclosure situations under the revised loss mitigation strategies to minimize actual foreclosures Foreclosure process is slow in our markets, with an average time frame of 18 months Expec
Slide 125: Residential Mortgages - LTV, FICO, Originations
Residential Mortgages - LTV, FICO, Originations (1) Weighted average FICOs reflect currently updated customer credit scores (2) Only owned-portfolio originations Weighted average at origination Excludes Franklin - data NA 1Q10 4Q09 3Q09 2Q09 1Q09 Ending balance ($B) $4.6 $4.5 $4.5 $4.6 $4.4 Average
Slide 126: Residential Mortgages Delinquency and Net Charge-offs
90+ DPD 30+ DPD 1Q08 61.737 259.523 2Q08 62.006 249.152 3Q08 58.3 281.2 4Q08 71.6 273.5 1Q09 88.4 306.1 2Q09 97.9 321.7 3Q09 65.7 261 4Q09 78.9 243.5 1Q10 72.7 268.1 Residential Mortgages Net Charge-offs 126 1Q08 0.0022 2Q08 0.0033 3Q08 0.0056 4Q08 0.0062 1Q09 0.0055 2Q09 0.0147 3Q09 0.0615 0.0173 4
Slide 127: Residential Mortgages - Delinquencies
Residential Mortgages - Delinquencies 127 MONTH <640 640-669 670-700 >700 No Score Total 7/07 0.226 0.1057 0.0703 0.023 0.1117 0.0533 8/07 0.2158 0.1092 0.0766 0.0224 0.1537 0.0556 9/07 0.2384 0.1191 0.0834 0.0249 0.0954 0.0638 10/07 0.2139 0.1068 0.0792 0.0231 0.1008 0.0612 11/07 0.2386 0.1371 0.08
Slide 128: Other Consumer Loans
Other Consumer Loans (Huntington
Slide 129: Other Consumer Loans
EOP Outstandings - $0.7 Billion (1) 80% collateralized Autos, untitled vehicles, small boats, mobile homes and other miscellaneous Primarily for existing customers Performed within expectations over the past year though varies by collateral type Other Consumer Loans 129 (1) 3/31/10
Slide 130: Credit Quality Review
Credit Quality Review (Huntington —
Slide 131: Credit Quality Trends Overview
Credit Quality Trends Overview 1Q10 4Q09 3Q09 2Q09 1Q09 NAL ratio (1) 4.78% 5.21% 5.85% 4.72% 3.93% NPA ratio (2) 5.17 5.57 6.26 5.18 4.46 Net charge-off ratio 2.58 4.80 3.76 3.43 3.34 90+ days PD & accruing (3) 0.31 0.40 0.34 0.38 0.35 ALLL ratio 4.00 4.03 2.77 2.38 2.12 ALLL / NAL coverage 84 77 4
Slide 132: Key Loan Portfolio Credit Quality Metrics
Key Loan Portfolio Credit Quality Metrics 132
Slide 133: Net Charge-off Trends
Amount Annualized % 3Q08 40.631 0.0069 4Q08 511.807 0.0854 1Q09 293.429 0.0496 2Q09 270.921 0.0477 3Q09 238.067 0.0437 4Q09 367.92 0.07 1Q10 160.738 0.0322 Net Charge-off Trends 133 ($MM) Commercial Loans Consumer Loans ($MM) (1) $128.3 MM of Franklin Amount Annualized % 3Q08 43.12 0.0098 4Q08 48.81
Slide 134: Net Charge-offs
Net Charge-offs ($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 Commercial and industrial $75.4 $109.8 $68.8 $98.3 $210.6 Commercial real estate 85.3 258.1 169.2 172.6 82.8 Total commercial 160.7 367.9 238.1 270.9 293.4 Auto loans 7.7 11.4 9.0 12.4 15.0 Auto leases 0.9 1.6 1.8 2.2 3.1 Home equity loans / lines 37.9
Slide 135: Net Charge-off Ratios
Net Charge-off Ratios (1) 1Q10 4Q09 3Q09 2Q09 1Q09 Commercial and industrial 2.45% 3.49% 2.13% 2.91% 6.22% Commercial real estate 4.44 12.21 7.62 7.51 3.27 Total commercial 3.22 7.00 4.37 4.77 4.96 Auto loans 0.76 1.49 1.25 1.73 1.56 Auto leases 1.58 2.25 2.04 2.11 2.39 Home equity loans / lines 2.0
Slide 136: Nonaccrual Loans & Nonperforming Assets Trends
NAL OREO+Impaired NAL Ratio NPA Ratio 1Q09 1533.094 222.649 0.0393 0.0446 2Q09 1818.367 184.217 0.0472 0.0518 3Q09 2181.065 163.427 0.0585 0.0626 4Q09 1916.978 141.113 0.0521 0.0557 1Q10 1766.108 152.26 0.0478 0.0517 Nonaccrual Loans & Nonperforming Assets Trends 136 ($MM) New NALs % BOP Lns/Lse 1Q0
Slide 137: Nonperforming Asset Flow Analysis
($MM) 1Q10 4Q09 3Q09 2Q09 1Q09 NPA beginning of period $2,058.1 $2,344.0 $2,002.6 $1,775.7 $1,636.6 Additions / increases 237.9 494.6 899.9 (1) 750.3 622.5 Franklin - net impact 15.0 (31.0) (18.8) (57.4) (204.5) Return to accruing status (80.8) (85.9) (52.5) (40.9) (36.1) Loan and lease losses (185.
Slide 138: Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs)
Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs) 138
Slide 139: Nonaccrual Loans (NAL) - by Sector
Nonaccrual Loans (NAL) - by Sector $1,766 MM - 3/31/10 Agric. & Other 0.003 Energy 0.006 Consumer 0.013 Wholesale Trade 0.016 Transportation 0.023 Retail Trade 0.035 Construction 0.065 Manufacturing 0.077 Services 0.097 Residential RE 0.229 Finance, Ins., R/E 0.433 139 3/31/10 3/31/10 12/31/09 12/31
Slide 140: Accruing Restructured Loans
Accruing Restructured Loans 140
Slide 141: Accruing Restructured Loan Trends
Commercial Residential Mrtg. Other 1Q09 201.508 108.011 27.014 2Q09 267.975 158.568 35.72 3Q09 153.01 204.463 42.406 4Q09 157.049 219.639 52.871 1Q10 117.667 242.87 62.148 Accruing Restructured Loan Trends (1) 141 ($MM) LQ % Change 1Q09 0.088 2Q09 0.374 3Q09 -0.135 4Q09 0.074 1Q10 -0.016 Amount Link
Slide 142: Allowances for Credit Losses (ACL)
Allowances for Credit Losses (ACL) (1) ($MM) 1Q10 1Q10 4Q09 3Q09 2Q09 1Q09 Allowance for loan Allowance for loan and lease losses (ALLL) $1,478.0 $1,482.5 $1,032.0 $917.7 $838.5 Allowance for unfunded loan Allowance for unfunded loan commitments and LOCs (AULC) 49.9 48.9 50.1 47.1 47.0 Total allowan
Slide 143: Relative Performance - LLR Ratios
Relative Performance - LLR Ratios Reserve Ratios (1) LLR/NPL ratio 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 HBAN = (ALLL+AULC)/Loans 0.02 0.021 0.021 0.0208 0.0181 0.0178
Slide 144: Relative Performance - NAL/NPL Coverage
Relative Performance - NAL/NPL Coverage NAL / NPL Coverage Ratios (1) (1) Period end; 4Q07+ exclude Franklin LLR/NPL ratio 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 HBAN =
Slide 145: Non-Franklin Credit Metrics Reconciliations
Non-Franklin Credit Metrics Reconciliations 145
Slide 146: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 146
Slide 147: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 147
Slide 148: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 148
Slide 149: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 149
Slide 150: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 150
Slide 151: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 151
Slide 152: Nonaccrual Loans, Nonperforming Assets & Accruing Restructured Loans
152 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 153: Nonaccrual Loans, Nonperforming Assets & Accruing Restructured Loans
153 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 154: Nonaccrual Loans, Nonperforming Assets & Accruing Restructured Loans
154 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 155: Deposits and Other Funding
Deposits and Other Funding 155
Slide 156: Total Deposits - By Business Segment
Total Deposits - By Business Segment 156 Avg. Balances - $40.2 Billion ($B) Retail & Business Banking Comm'l Banking Comm'l Real Estate AFDS PFG Treas. / Other Total DDA-noninterest bearing $3.4 $2.3 $0.3 $ 0.1 $0.5 $0.1 $6.6 DDA-interest bearing 4.1 0.9 -- -- 0.7 -- 5.7 Money market deposits 6.7 1.
Slide 157: Deposit Trends Linked Quarter - Average
Deposit Trends 157 Linked Quarter - Average
Slide 158: Deposit Trends Prior-Year Quarter
Deposit Trends 158 Prior-Year Quarter
Slide 159: Total Core Deposit Trends
Total Core Deposit Trends 159
Slide 160: Other Funding
12/08 3/09 6/09 9/09 12/09 3/10 Noncore Deposits 5.6 5.6 4.5 3.7 3.1 2.7 S-T Borrowings & Other Liab. 2.3 2.2 1.9 2 1.9 2.041 FHLB Advances 2.6 1 0.9 0.9 0.2 0.157 Other L-T Debt 2.3 2.7 2.5 2.4 2.4 2.728 Subordinated Notes 1.9 1.9 1.7 1.7 1.3 1.2667 Other Funding 160 End of Period Balances ($B) $14
Slide 161: Capital
Capital Huntington
Slide 162: Capital
Capital (1) 1Q10 1Q10 4Q09 3Q09 2Q09 1Q09 Total risk-weighted assets ($B) $42.5 $43.2 $44.1 $45.5 $46.4 Tier 1 leverage 10.05% 10.09% 11.30% 10.62% 9.67% Tier 1 risk-based capital 11.97 12.03 13.04 11.85 11.14 Total risk-based capital 14.28 14.41 16.23 14.94 14.26 Tangible common equity/assets 5.96
Slide 163: Capital Trends
LLR/NPL ratio 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Tang. Equity / Risk-Weighted Assets 0.0558 0.0659 0.066 0.0839 0.0894 0.1004 Tang. Equity / Assets (TE Ratio) 0.0492 0.059 0.0599 0.0772 0.0812 0.0899 0.0971 0.0924 0.0926 Tang. Common Equity / Assets (TCE Ratio) 0.0492 0.0481 0.0488 0.0404
Slide 164: Capital Ratio Trends
Total Risk-based Capital Tier I Risk-based Capital Tang. Equity / Assets 3Q02 0.1178 0.0881 0.0764 4Q02 0.1125 0.0834 0.0722 1Q03 0.1104 0.0816 0.07 2Q03 0.1111 0.0832 0.0706 3Q03 0.1119 0.084 0.0677 4Q03 0.1195 0.0853 0.0679 1Q04 0.1213 0.0874 0.0697 2Q04 0.1256 0.0898 0.0695 3Q04 0.1253 0.091 0.07
Slide 165: Credit Ratings
Credit Ratings Senior Subordinated Comm'l. Paper / Notes Notes Short-Term Outlook Huntington Bancshares Moody's 4/7/09 Baa2 Baa3 WR Negative S&P 6/17/09 BB+ BB WR Negative Fitch 9/14/09 BBB BBB- F2 Negative The Huntington National Bank Moody's 4/7/09 Baa1 Baa2 P-2 Negative S&P 6/17/09 BBB- BB+ WR Ne
Slide 166: Franchise
Franchise (Huntington —
Slide 167: Huntington Bancshares Overview
Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $52 billion Employees (1) - 10,678 Franchise: Footprint 6 states: OH, MI, PA, IN, WV, KY 608 branches / 1,352 ATMs Retail and Business Banking 5 Areas - Mortgage banking + MD, NJ Commercial Banking
Slide 168: The Huntington Franchise - 3/31/10
Focus on the Midwest (1) Branches 119 ATMs 240 Detroit 3% Grand Rapids 10% Branches 341 ATMs 734 Akron 8% Canton 25% Cincinnati 4% Cleveland 5% Columbus 28% Dayton 6% Toledo 21% Youngstown 20% Branches 50 ATMs 53 Indianapolis 6% Branches 13 ATMs 30 Branches 28 ATMs 132 Charleston 11% Excludes 9 PFG
Slide 169: A Strong Regional Presence
A Strong Regional Presence Source: SNL Financial, company presentations and filings FDIC deposit data as of June 30, 2009 Deposits - Top 12 MSAs MSA Rank BBs Deposits Share Columbus, OH 1 68 $10,231 27.6% Cleveland, OH 5 60 3,613 5.5 Detroit, MI 8 45 2,874 3.1 Toledo, OH 2 42 2,186 20.6 Pittsburgh,
Slide 170: Organization
Organization (@) Huntington .
Slide 171: Leadership Team
Leadership Team Leadership Team 171 Business Segments
Slide 172: Senior Leadership Team
Senior Leadership Team Experience-Yrs Position Appointed Banking HBAN Stephen Steinour Chairman, President and CEO 1Q09 29 1 Dan Benhase SEVP-Private Financial Group Director 2Q06 27 9 Kevin Blakely SEVP-Chief Risk Officer 3Q09 35 <1 Jim Dunlap SEVP-Regional & Commercial Banking Director 1Q06 30 30
Slide 173: Business Segment Summary
Business Segment Summary 173
Slide 174: Regional Banking Structure
Regional Banking Structure Commercial Banking Executive - Jim Dunlap 11 Region Presidents Direct reporting responsibility for: Commercial banking Treasury management sales Regional marketing / community affairs Increased responsibility around: New business rainmaker Portfolio and risk management Com
Slide 175: 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 175
Slide 176: Regional Banking Presidents
Regional Banking Presidents Experience - Yrs Region Appointed Banking HBAN Jim Dunlap* West Michigan 1Q06 30 30 Jim Dunlap (interim) East Michigan Mike Newbold Central Indiana 4Q06 33 6 Sharon Speyer Northwest Ohio 1Q01 21 17 Daniel Walsh, Jr. Greater Cleveland 2Q10 14 < 1 Frank Hierro Mahoning Vall
Slide 177: Retail and Business Banking Areas
5 Retail and Business Banking Areas Central Northwest West Northeast East Mary Navarro 177
Slide 178: Retail and Business Banking Executives
Retail and Business Banking Executives Experience - Yrs Area Appointed Banking HBAN Robert Soroka Northeast Area 2Q09 25 7 Deborah Stein Central Area 2Q09 26 6 Cindy Keitch East Area 2Q09 36 15 Brian Bromley Northwest Area 2Q09 25 23 Jonathan Greenwood West Area 2Q09 24 16 Jeff Rosen Business Bankin
Slide 179: Other Business Segments
Other Business Segments Private Financial Group Executive - Dan Benhase Trust - $52.5 B in assets Asset management Investment advisory Brokerage Insurance National settlements Private banking Corporate / institutional Investment banking Securities sales/trading Interest rate risk management Foreign
Slide 180: Business Segment Loans & Deposits - 3/31/10
Business Segment Loans & Deposits - 3/31/10 Total Loans - $36.9 B Total Deposits - $40.3 B 180 Retail and Business Banking 0.71 Commercial Banking 0.16 Commercial Real Estate 0.01 Dealer sales 0.006 PFG 0.08 Treasury / Other 0.04 Retail & Business Banking 0.39 Commercial Banking 0.2 Commercial Real
Slide 181: Business Segment Contribution
181 Business Segment Contribution
Slide 182: Business Segment Contribution
182 Business Segment Contribution
Slide 183: Safe Harbor Disclosures
Safe Harbor Disclosures Huntington —
Slide 184: Basis of Presentation
Basis of Presentation Use of non-GAAP financial measures This presentation 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
Slide 185: Basis of Presentation - Significant Items
Basis of Presentation 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 outsiz
Slide 186: Basis of Presentation - Fully-taxable equivalent
Basis of Presentation Fully-taxable equivalent interest income and net interest margin Income 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 n
Slide 187: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or imp
Huntington Bancshares — Q1 2010 Earnings Presentation on 6ix