Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q4 2009 Earnings Presentation
176 slides from Huntington Bancshares's earnings presentation, Feb 25, 2010
Slide 1: 2010 First Quarter Investor Handout
February 25, 2010 2010 First Quarter Investor Handout 1
Slide 2: Table of Contents
Table of Contents Overview Discussion 3 4Q09 Financial Overview 13 Quarterly performance highlights 14 Significant items impacting comparisons 18 Income Statement 19 Pre-tax, pre-provision trends 20 Net interest margin 21 Noninterest income 25 Noninterest expense 28 Efficiency ratio / operating leve
Slide 3: Overview Discussion
Overview Discussion (Huntington —
Slide 4: 2009 Report Card
2009 Report Card Strengthened the balance sheet Built liquidity Addressed credit risk Enhanced risk management practices and oversight Franklin Commercial real estate Commercial and business banking Consumer loans Built loan loss reserves Improved deposit mix Reduced wholesale funding Strengthened c
Slide 5: 2010 Outlook
2010 Outlook (1) Economy stabilizes at or near its current level throughout the year Net charge-offs and provision expense meaningfully below 2009 levels Allowance for credit losses expected to decline on an absolute basis from 12/31/09 level, reflecting utilization of existing reserves for elevated
Slide 6: 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 Return to quarterly profitability some time during the year Move to a Higher Performance / Exec
Slide 7: Improve 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 2Q10 3Q10 4Q10 Improve Pre-Tax, Pre-Provision Income (1) 7 (1) See Basis of Presentation for definition, as well as reconciliation slide in the Appendix ($MM) $275.0 3Q10 Target Drivers Higher net interest i
Slide 8: Staged Strategic Plan Implementation
Optimize Current Franchise 8 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, c
Slide 9: Organizational structure and segment leadership
Retail and Business Banking Commercial Banking Commercial Real Estate Auto Finance and Dealer Services Private Financial Group Retail and Business Banking Deposit Product Pricing Director Fee Income Director Consumer Lending Director Payments & Channels Director Chief Marketing Officer Treasury Mana
Slide 10: A Comprehensive, Integrated Strategy
10 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 11: 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 12: Important Messages
Important Messages Balance sheet has been strengthened and is getting stronger... loans, investment securities, deposits, and other funding Sufficient capital raised to weather a stressed economic scenario... no current plans to raise new capital Credit outlook is improving Increased opportunities /
Slide 13: 2009 Fourth Quarter Overview
2009 Fourth Quarter Overview 13
Slide 14: Quarterly Performance Highlights
Quarterly Performance Highlights 4Q09 3Q09 2Q09 1Q09 4Q08 EPS $(0.56) $(0.33) $(0.40) $(6.79) $(1.20) Pre-tax pre-provision income ($MM) (1) $242.1 $237.1 $229.3 $224.6 $195.1 Net interest margin 3.19% 3.20% 3.10% 2.97% 3.18% Efficiency ratio (2) 49.0% 61.4% 51.0% 60.5% 64.6% Loan & lease growth (3)
Slide 15: 2009 Fourth Quarter Highlights
2009 Fourth Quarter Highlights $369.7 million reported net loss or $(0.56) EPS $242.1 million pre-tax, pre-provision income (1), up $4.9 million, or 2%, linked-quarter $11.2 MM, or 3%, increase in net interest income Reviewed reserving assumptions and practices in view of continued economic weakness
Slide 16: 2009 Fourth Quarter Highlights: Capital
2009 Fourth Quarter Highlights Capital remains a positive story 12.05% and 14.43% Tier 1 and Total risk-based capital ratios, respectively... $2.6 billion and $1.9 billion, respectively, above well capitalized thresholds 5.92% tangible common equity ratio, down 54 bps linked-quarter Liquidity positi
Slide 17: Quarterly Earnings
Quarterly Earnings (SMM) Net interest income Provision Noninterest income Noninterest expense Pre-tax income/(loss) Net Income/(loss) PS NM- not meaningful Change Better (Worse) vs. 4008 4009 3009 4008 Ant. Amt _ Pet $37mat $3628 Sars [S$ 112 [$F 23 (H% (894.0) (475.1) (722.6) | (418.9) | (1714) (24
Slide 18: Quarterly Significant Items Impacting Comparisons
2009 - 2008 Quarterly 18 Significant Items (1) Impacting Financial Performance Comparisons - Reconciliation
Slide 19: Income Statement
Income Statement (Huntington —
Slide 20: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income (1) 20
Slide 21: Net Interest Margin and Net Interest Income
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 A
Slide 22: 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 Loans 0.0553 0.049 0.0502 0.0504 0.0507 Investment Securities 0.0594 0.0571 0.0469 0.0404 0.0325 E/A yield 0.0557 0.0499 0.0499 0.0486 0.047 22 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4
Slide 23: Earning Assets and Funding Composition Trends
Earning Assets and Funding Composition Trends 4Q08 1Q09 2Q09 3Q09 4Q09 Loans and leases 0.87 0.88 0.86 0.83 0.79 Investment securities 0.09 0.1 0.12 0.15 0.19 Other E/A 0.03 0.03 0.03 0.02 0.02 Earning Asset Composition Funding 23 (1) Average balances 4Q08 1Q09 2Q09 3Q09 4Q09 Core dep. - xld DDA 0.5
Slide 24: 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 2% Rate Fall 1% Rate Fall 2Q01 -0.021 3Q01 -0.017 4Q01 -0.012 1Q02 -0.016 2Q02 -0.013 3Q02 -0.005 4Q02 -0.007 -0.002 1Q03 -0.006 -0.001 2Q03 -0.008 -0.001 3Q03 -0.01 -0.003
Slide 25: Noninterest Income Trends Linked Quarter
Noninterest Income Trends 25 Linked Quarter
Slide 26: Noninterest Income Trends Prior-year Quarter
Noninterest Income Trends 26 Prior-year Quarter
Slide 27: Mortgage Banking Income
Mortgage Banking Income ($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 Origination & secondary marketing $16.5 $16.5 $31.8 $30.0 $7.2 Servicing fees 12.3 12.3 12.0 11.8 11.7 Amortization of capitalized servicing (10.8) (10.1) (14.4) (12.3) (6.5) Other mortgage banking income 4.5 4.1 5.4 9.4 3.0 Sub-total 22.4 22.9
Slide 28: Noninterest Expense Trends Linked Quarter
Noninterest Expense Trends Linked Quarter 28
Slide 29: Noninterest Expense Trends Prior-year Quarter
Noninterest Expense Trends 29 Prior-year Quarter
Slide 30: Noninterest Expense Trends
Noninterest Expense Trends Personnel Other 1Q08 201.943 149.621 2Q08 199.991 177.812 3Q08 184.827 154.169 4Q08 196.785 193.309 1Q09 175.932 191.124 2Q09 171.735 231.4 3Q09 172.152 228.945 4Q09 180.663 215.548 4Q07 11925 1Q08 11787 2Q08 11251 3Q08 10901 4Q08 10951 1Q09 10540 2Q09 10342 3Q09 10194 4Q0
Slide 31: Efficiency Ratio Trends
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Efficiency Ratio - Reported 0.569 0.503 0.646 0.605 0.51 0.614 0.49 Efficiency Ratio - Adjusted 0.54 0.496 0.837 0.598 0.604 0.608 0.601 Efficiency Ratio Trends (1) Reported revenue and expenses adjusted for automobile operating lease expense and other items affect
Slide 32: Operating Leverage & Efficiency Ratio Trends
Operating Leverage & Efficiency Ratio Trends 32
Slide 33: Balance Sheet
Balance Sheet (Huntington —
Slide 34: Balance Sheet - Assets
Balance Sheet — Assets Change 2009 2009 2008 December 09 vs. 08 Tamang} December 31, Soplenber 30 Dacenber37_ _Armeunt Percent Assets ‘Cash and due frombanks Sagar S$ tesz $m S715 BOK Federal funds sol and secures purchased under resale agreement = = 38 (a) -100.0% Interest bearing deposts in banks
Slide 35: Balance Sheet - Liabilities & Shareholders' Equity
Balance Sheet - Liabilities & Shareholders' Equity 35
Slide 36: Investment Securities
Investment Securities (Huntington —
Slide 37: Investment Securities Average Balances & Yield
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 38: Investment Securities Trends Linked Quarter
Investment Securities Trends Linked Quarter - Average 38 Treasury/Agency debt with final maturities less < 2 years Agency CMOs with weighted average life of 2.5 years
Slide 39: AFS Securities Overview - 12/31/09
AFS Securities Overview - 12/31/09 39
Slide 40: Investment Securities - Assessment
Investment Securities - Assessment (1) 40 Par Value Book Value Market Value OCI Alt-A mortgage backed $155 MM $136 MM $117 MM $(19) MM - Purchased 2006 % to Par Value 75% - 8 securities - senior tranche - 10/1 ARMs or 15 / 30 year fixed; no option ARMs - Cash flow analysis performed monthly to test
Slide 41: Available for Sale Securities Mix
Mortgage Backed Agency Asset Backed Muni's Treasuries TLGP Debt Other 12/31/03 0.448 0.234 0.13 0.088 0.061 0 0.039 12/31/04 0.337 0.228 0.283 0.098 0.005 0 0.049 12/30/05 0.3695 0.0732 0.3952 0.1204 0.0043 0 0.0374 12/31/06 0.429 0.034 0.362 0.136 0.001 0 0.038 12/31/07 0.521 0.033 0.193 0.154 0 0
Slide 42: Investment Securities - Credit Quality
AAA AA A BBB Not Rated / BBB- and lower FRB & FHLB Stock 12/03 0.798 0.088 0.057 0.022 0.018 0.017 12/04 0.6 0.09 0.25 0.05 0.01 0.02 12/05 0.581 0.145 0.235 0.038 0 0.02 12/06 0.8233 0.062 0.094 0.021 0 0.035 12/07 0.891 0.047 0.057 0.001 0.004 0.093 12/08 0.689 0.142 0.076 0.016 0.077 0.099 12/09
Slide 43: Loan Portfolio Overview
Loan Portfolio Overview (Huntington —
Slide 44: Credit Exposure Composition
Credit Exposure Composition ($B) 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 12/31/05 12/31/05 12/31/05 Amt Pct Amt Pct Amt Pct Amt Pct Amt Pct Commercial & industrial $12.9 35 % $13.5 33 % $13.1 33 % $7.8 30 % $6.8 28 % Commercial real
Slide 45: Credit Portfolio Overview
Other 0.073 Florida 0.023 Kentucky 0.0274 West Virginia 0.0485 Pennsylvania 0.0571 Indiana 0.0637 Michigan 0.1515 Ohio 0.5552 Credit Portfolio Overview EOP Outstandings - $36.8 Billion (1) ($B) 45 By State $20.1 $5.5 $2.3 $0.8 $2.1 $1.8 $0.8 $3.4 (1) 12/31/09
Slide 46: Loan and Lease Trends Linked Quarter
Loan and Lease Trends Linked Quarter - Average 46
Slide 47: Loan and Lease Trends Prior-year Quarter
Loan and Lease Trends Prior-year Quarter - Average 47
Slide 48: Total Loans - By Business Segment
Total Loans - By Business Segment ($B) Regional & Business Banking Comm'l Banking Comm'l Real Estate AFDS PFG Treas. / Other Total C&I $3.0 $6.9 $0.7 $1.0 $1.0 $-- $12.6 CRE 0.6 0.6 7.1 -- 0.1 -- 8.5 Total commercial 3.6 7.5 7.9 1.0 1.1 -- 21.0 Automobile loans/leases -- -- -- 3.3 -- -- 3.3 Home equ
Slide 49: Total Commercial Loans
Total Commercial Loans (Huntington —
Slide 50: Total Commercial Loans By Industry Sector
Public Admin & Other 0.0064 Agriculture 0.0101 Energy 0.0211 Wholesale Trade 0.0342 Transportation 0.0399 Construction 0.0506 Retail Trade 0.0927 Manufacturing 0.105 Services 0.2139 Finance, Insurance, RE 0.426 Total Commercial Loans By Industry Sector EOP Outstandings - $20.6 Billion (1) 50 $8.6 $4
Slide 51: Total Commercial Loans by Size
< $5 MM 40532 $5+ MM 791 Total Commercial Loans # of Loans by Size Loans by Dollar Size (1) $5 MM - < $10 MM 437 $10 MM - < $25 MM 279 $25 MM - < $50 MM 44 > $50 MM 5 Total 765 EOP Outstandings - $20.6 Billion (1) < $5 MM 0.5643 $5 MM - < $10 MM 0.1482 $10 MM - <$25 MM 0.2022 $25 MM - < $50 MM 0.068
Slide 52: Commercial Loans - Risk Grade Distribution
Commercial Loans - Risk Grade Distribution by % 52 PD Risk Grades (Moody's or Regulatory Definition) 12/08 6/09 9/09 12/09 1-3 (A1) 680 505 406 377 4 (Ba1) 2928 2120 2105 2069 5 (Ba2) 3266 2821 2860 2643 6 (Ba3) 5105 3930 3554 3559 7 (B1) 4779 4127 3626 3253 8 (B2) 3569 4083 3856 3702 9 (OLEM) 984 1
Slide 53: Commercial and Industrial Loans (C&I)
Commercial and Industrial Loans (C&I) 53
Slide 54: C&I Portfolio Composition By Industry
54 Other 0.0012 Public administration 0.0069 Agriculture and forestry 0.0153 Energy 0.0326 Contractors & construction 0.0367 Wholesale Trade 0.0543 Transportation, communication & utilities 0.0584 Retail trade- auto dealers 0.0714 Retail trade- other 0.073 Manufacturing 0.1713 Finance, insurance & r
Slide 55: C&I Portfolio Composition By Obligor Size
55 <$500M 0.217 $500M - <$1MM 0.0931 $1MM - <$5MM 0.3082 $5MM - <$10MM 0.1483 $10MM - <$20MM 0.1261 $20MM - <$50MM 0.0839 $50MM and greater 0.0234 C & I - Portfolio Composition By Loan Outstanding Obligor Size & Number of Obligors 55 4 39 119 274 1,874 1,709 29,333 EOP Outstandings - $12.9 Billion (
Slide 56: C&I - Change Analysis
C&I - Change Analysis ($MM) Total C&I September 30, 2009 balance $12,547 New originations 493 Net pay-offs / takedowns (631) Charge-offs (110) Classification changes 589 December 31, 2009 balance $12,888 56 By Activity
Slide 57: C&I Portfolio Characteristics and Credit Quality Trends
EOP Outstandings - $12.9 Billion (2) Diversified by sector and geographically within our Midwest footprint Granular 4 loans >$50 million... 3% of portfolio 30 loans $20-$50 million... 7% of the portfolio Focus on middle market companies with $10-$100 MM in sales 4Q09 portfolio originations associate
Slide 58: C&I - Credit Quality By Segment
58 By Segment - 12/31/09 58 C & I - Credit Quality ($MM) O/S 30+ PD Accruing Class. NAL's ACL C & I (Excluding segments below) $11,792 0.62% 10.01% 4.04% 3.87% Residential homebuilder related 449 1.26 26.76 6.67 6.83 Construction & contractors 460 0.87 19.65 9.03 5.79 Auto industry suppliers 187 0.7
Slide 59: C&I - Credit Quality Net Charge-offs and Nonaccruals
59 C & I - Credit Quality 59 Net Charge-offs Net Charge-offs Net Charge-offs Nonaccrual Loans Nonaccrual Loans ($ MM) Amount Pct. (2) % of Total Amount Pct. (3) Services $45.4 4.76% 41.3% $163.9 4.2% Manufacturing 19.6 3.66 17.8 136.8 6.4 Finance, insurance & real estate 9.3 1.61 8.5 98.0 4.1 Retail
Slide 60: C&I - Auto Industry
60 C & I - Auto Industry (1) Outstandings (2) ($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 Suppliers Domestic $ 163 $ 184 $ 196 $ 209 $ 182 Foreign 24 31 33 33 33 Total suppliers 187 215 229 242 215 Dealers Floorplan-domestic 388 298 444 549 553 Floorplan-foreign 283 252 339 395 408 Total floorplan 671 550 783 94
Slide 61: Commercial Real Estate Loans (CRE)
Commercial Real Estate Loans (CRE) 61
Slide 62: CRE - Portfolio Composition By Property Location and Loan Type
62 Construction Mini-Perm Traditional Perm Qualified Permanent Non Project Loans Line/Letter of Credit 0.1911 0.3461 0.077 0.2826 0.0747 0.0284 CRE - Portfolio Composition By Property Location By Loan Type EOP Outstandings - $7.7 Billion (1) Permanent 28% Mini-perm Traditional 35% Construction 19% N
Slide 63: CRE Portfolio Characteristics
EOP Outstandings - $7.7 Billion (1) Granular portfolio with geographic and project diversification throughout our footprint Construction lending targeted to major metro markets CRE - Retail ($2.1 billion) Loans originated with quality developers that have experience and financial capacity to support
Slide 64: CRE - Trends
Amount 4Q08 10098 1Q09 9261 2Q09 8946 3Q09 8715 4Q09 7689 CRE - Trends Period-End Balances ($MM) 64 ($MM) Originations $ 255 Takedowns 1,082 Payments (1,703) Reclassifications (1,355) Charge-offs (688) Net change $(2,409) Change Analysis - 4Q09 vs. 4Q08
Slide 65: CRE - Change Analysis
CRE - Change Analysis ($MM) SFHB Retail Other Total CRE September 30, 2009 $1,039 $2,237 $5,439 $8,715 New originations 2 6 61 69 Net pay-offs / takedowns (126) (32) (90) (248) Charge-offs (69) (119) (71) (258) Net reclass 11 22 (622) (589) December 31, 2009 $857 $2,115 $4,717 $7,689 65 By Activity
Slide 66: CRE - Credit Quality Overview By Segment
66 By Segment - 12/31/09 66 CRE - Credit Quality Overview Current Coverage Current Coverage Current Coverage ($MM) O/S 30+ PD Accruing Class. NAL's ACL Write-downs (1) Credit Mark (2) CRE (Exc. SFHB & Retail) $4,717 1.20% 18.06% 8.90% 7.38% 3.60% 10.9% SFHB 857 2.57 59.87 30.61 19.94 16.47 31.3 Reta
Slide 67: CRE - Credit Quality
67 CRE - Credit Quality 67 ($ MM) Net Charge-offs Net Charge-offs Net Charge-offs Nonaccrual Loans Nonaccrual Loans Amount Pct. (2) % of Total Amount Pct. (3) Retail properties $118.7 21.70% 46.0% $253.6 12.0% Multi-family 21.8 6.24 8.5 129.0 9.4 Single family homebuilders 68.5 29.05 26.5 262.4 30.6
Slide 68: CRE - Credit Quality By Loan Type
68 By Loan Type - 12/31/09 68 CRE - Credit Quality ($MM) O/S 30+ PD Accruing Class. NAL's ACL Construction $1,469 2.75% 34.98% 20.75% 15.06% Lines / letters of credit 219 3.85 34.98 12.80 13.11 Non project loans 574 1.17 6.70 2.29 6.62 Mini-perm traditional 2,661 1.65 26.73 14.74 11.06 Permanent qua
Slide 69: CRE - Maturity Schedule
69 By Loan Type - 12/31/09 69 CRE - Maturity Schedule ($MM) Within 12 Mos. 1 - 2 Years 2 - 5 Years 5+ Years Total Construction $ 912 $ 366 $ 191 $ 2 $1,469 Lines / letters of credit 101 24 61 32 219 Non project loans 247 190 86 51 574 Mini-perm traditional 1,496 660 499 6 2,661 Permanent qualified 2
Slide 70: CRE - Single Family Homebuilders
EOP Outstandings - $0.9 Billion (1) Portfolio Characteristics Granular portfolio - only 13 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 71: CRE - Single Family Homebuilder Credit Quality
EOP Outstandings - $0.9 Billion (1) Portfolio Performance 71 CRE - Single Family Homebuilder - Credit Quality ($MM) 4Q09 3Q09 2Q09 1Q09 (3) 4Q08 30+ days PD (2) - $ $201 $296 $263 $267 $228 - % 23.5% 28.5% 22.6% 21.5% 14.4% 30+ days PD & accruing (2) - $ $22 $29 $42 $27 $62 - % 2.57% 2.81% 3.7% 2.2%
Slide 72: CRE - Retail
72 (1) 12/31/09 (2) End of period CRE - Retail ($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 Community centers $1,037 $1,127 $1,180 1,222 na Mixed / lifestyle 253 274 262 259 na Regional centers 174 181 191 194 na Credit / freestanding 266 278 294 304 na Other 385 376 374 388 na Retail exposure trends (2) $2,115 $
Slide 73: CRE - Retail Credit Quality
EOP Outstandings - $2.1 Billion (1) Portfolio Performance 73 CRE - Retail - Credit Quality ($MM) 4Q09 3Q09 2Q09 1Q09 (3) 4Q08 30+ days PD (2) - $ $197 $220 $217 $121 $137 - % 9.32% 9.84% 9.43% 5.11% 5.10% 30+ days PD & accruing (2) - $ $42 $20 $48 $39 $46 - % 1.98% 0.90% 2.10% 1.63% 1.73% Classified
Slide 74: CRE - Portfolio Positioning: Core and Noncore
CRE - Portfolio Positioning Segmented CRE Into "Core" and "Noncore" Portfolios Core Well-seasoned regional or institutional owners, developers, and organizations Meaningful relationship in place - opportunities for additional cross- sell Midwest footprint projects generating adequate return on capit
Slide 75: CRE - Portfolio Composition By Property Type and Location
75 CRE - Portfolio Composition - 12/31/09 75 By Property Type and Property Location
Slide 76: CRE - Core vs. Noncore
76 76 CRE - Core vs. Noncore ($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 77: 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% rat
Slide 78: CRE - Noncore Portfolio Composition
78 CRE - Noncore Portfolio Composition - 12/31/09 78 By Property Type and Property Location
Slide 79: CRE - Noncore Characteristics
EOP Outstandings - $3.7 Billion (1) Noncore-Overall 27% 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 80: CRE - Noncore Segment Characteristics
CRE - Noncore Segment Characteristics Special Assets Division (SAD) ($1.8 billion) 39.70% 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 ($1.9 billion) 11.
Slide 81: Total Consumer Loans and Leases
Total Consumer Loans and Leases 81
Slide 82: Consumer Loans and Leases By Type
Amt Pct Auto loans $3.1 19 % Auto leases 0.2 2 Home equity * 7.6 47 Residential real estate 4.5 28 Other consumer 0.8 5 Total consumer $16.2 100 % * Home equity lines $ 4.9 Home equity loans 2.6 Auto loans 0.19 Auto leases 0.024 Home equity 0.47 Residential mortgage 0.28 Other consumer 0.05 Consumer
Slide 83: Credit Risk Management Objective
83 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, collateral valu
Slide 84: Automobile Loans & Leases
Automobile Loans & Leases (@) Huntington :
Slide 85: Auto Lending - Credit Risk Management Strategies
85 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 appl
Slide 86: Auto Portfolio Strategy and Credit Quality Trends
EOP Outstandings - $3.4 Billion (1) Consistency of strategy and commitment to dealers Focus on high service quality and high quality full dealer relationships Since 2001 focused on super-prime customers>750 FICOs in 2009 Fully automated origination and booking system Credit Quality Trends 4Q09 3Q09
Slide 87: Auto Loans & Leases - Production
Auto Loans & Leases - Production ($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 3Q08 2Q08 1Q08 Loans Production $ 516 $ 394 $ 277 $ 399 $ 360 $ 501 $ 673 $ 679 % new vehicles 41% 44% 30% 31% 41% 41% 44% 44% Avg. LTV (1) 89% 91% 95% 93% 93% 96% 96% 93% Avg. FICO (1) 771 763 759 756 751 751 752 752 Leases (2) Product
Slide 88: Auto Loans - Credit Quality Overview
Auto Loans - Credit Quality Overview 4Q09 3Q09 2Q09 1Q09 4Q08 3Q08 2Q08 1Q08 Portfolio Performance Portfolio Performance 30+ days PD & accruing % 1.98% 2.02% 2.06% 2.20% 2.09% 1.68% 1.43% 1.45% Year-to-Date NCO % 1.51% 1.52% 1.63% 1.56% 1.12% 0.98% 0.95% 0.97% Origination Quality Origination Quality
Slide 89: 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 Auto Loans Accruing Delinquency Net Charge-offs 89 1Q08 0.0097 2Q08 0.0094 3Q08 0.0102 4Q08 0.0153 1Q09 0.0156 2Q09 0.0173 3Q09 0.0125 4Q09 0.0149 0.33% 0.36%
Slide 90: 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 90 7-9 Month 10-12 M
Slide 91: Residential Real Estate Loans
Residential Real Estate Loans 91
Slide 92: Residential Real Estate Trends
Residential Real Estate Trends ($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 Home equity loans / lines $7,561 $7,581 $7,640 $7,577 $7,523 Residential mortgage 4,417 4,487 4,657 4,611 4,737 Interest only 577 614 625 678 697 Alt-A 363 398 410 436 450 Total $11,978 $12,068 $12,297 $12,188 $12,260 Average Outstandings
Slide 93: Origination Strategies
Origination Strategies Focused on the Huntington core markets Utilize the Huntington office network as the primary source Traditional product mix - very limited nontraditional mortgage exposure Never originated sub-prime loans... payment option ARM structures... or negative amortization loans Polici
Slide 94: Home Equity Loans and Lines
Home Equity Loans and Lines 94
Slide 95: Home Equity - Credit Risk Management Strategies
95 Home Equity Loans / Lines - Credit Risk Management Strategies Performance Drivers Lien Position - 40% of the portfolio is secured by a 1st mortgage Payments - 70% of borrowers consistently make more than required payment Borrower quality - as measured at origination by FICO score - consistent inc
Slide 96: Home Equity Portfolio and Credit Quality Trends
EOP Outstandings - $7.6 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 97: 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 98: Home Equity Loans & Lines - Originations
Home Equity Loans & Lines - Originations 98 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 7
Slide 99: 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 Home Equity Loans and Lines Net Charge-offs 99 1Q08 0.0084 2Q08 0.0094 3Q08 0.0085 4Q08 0.0102 1Q09 0.0093 2Q09 0.0129 3Q09 0.0148 4Q09 0.0189 0.38%
Slide 100: Home Equity Loans & Lines - Delinquencies
Home Equity Loans & Lines - Delinquencies 100 $ 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 7639.
Slide 101: Home Equity Lines - Utilization and Customer Rate
Home Equity Lines - Utilization and Customer Rate 101 Utilization Rate Customer Interest Rate Utilization Rate Customer Interest Rate 8/08 0.4722 0.0498 9/08 0.4754 0.0498 10/08 0.4786 0.0496 11/08 0.4803 0.045 12/08 0.483 0.0402 1/09 0.4867 0.0336 2/09 0.4889 0.0326 3/09 0.4919 0.0327 4/09 0.4959 0
Slide 102: Residential Mortgages
Residential Mortgages (@) Huntington .
Slide 103: Residential Mortgage - Credit Risk Management Strategies
103 Residential Mortgage - 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-standard
Slide 104: Residential Mortgage Portfolio and Credit Quality Trends
EOP Outstandings - $4.5 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 $577 million of Interest Only loans... targeted within executi
Slide 105: Residential Mortgages - LTV, FICO, Originations
Residential Mortgages - LTV, FICO, Originations (1) Weighted average FICOs reflect currently updated customer credit scores (2) Only owned-portfolio originations Weighted average at origination Excludes Franklin - data NA 4Q09 3Q09 2Q09 1Q09 4Q08 Ending balance ($B) $4.5 $4.5 $4.6 $4.4 $4.8 Average
Slide 106: Residential Mortgages - ARMs
Residential Mortgages - ARMs EOP Outstandings - $2.6 Billion (1) ARMs 2010 resets $598 MM 2011 resets $334 MM FICO distribution > 670 71% Risk Mitigation Proactive customer contact at least 6 months prior to rate reset. Given the high quality borrower, this is a customer retention as well as risk mi
Slide 107: Residential Mortgages - Interest Only
Residential Mortgages - Interest Only EOP Outstandings - $577 Million (1) 2008 Production $131 MM 2009 Production $26 MM 4Q09 Net charge-offs 0.90% Current LTV (4Q09 values) 77% Updated FICO score (4Q09) 720 Portfolio Information High FICO, standard LTV structure primarily sourced via Huntington's e
Slide 108: Residential Mortgages - Alt-A
Residential Mortgages - Alt-A EOP Outstandings - $363 Million (1) 2008 Production none 2009 Production none 4Q09 Net charge-offs 3.86% Current LTV (4Q09 values) 87% Updated FICO score (4Q09) 662 Portfolio Information The original strategy was centered around stated income and higher LTVs associated
Slide 109: 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 Residential Mortgages Net Charge-offs 109 1Q08 0.0022 2Q08 0.0033 3Q08 0.0056 4Q08 0.0062 1Q09 0.0055 2Q09 0.0147 3Q09 0.0615 0.0173 4Q09 0.0161 1.50%
Slide 110: Residential Mortgages - Delinquencies
Residential Mortgages - Delinquencies 110 MONTH ARM Fixed rate Interest only ARM Alt A Balloon Other Total 7/07 0.0384 0.0564 0.0293 0.0932 0.0261 0.1371 0.0533 8/07 0.0406 0.0553 0.0355 0.0962 0.0262 0.139 0.0556 9/07 0.0524 0.0751 0.0299 0.1129 0.0255 0.1451 0.0638 10/07 0.0543 0.0686 0.0303 0.107
Slide 111: Residential Mortgages - Delinquencies by FICO
Residential Mortgages - Delinquencies 111 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 112: Other Consumer Loans
Other Consumer Loans (Huntington —
Slide 113: Other Consumer Loans
EOP Outstandings - $0.8 Billion (1) 80% collateralized Autos, untitled vehicles, small boats, mobile homes and other miscellaneous Primarily for existing customers Performed within expectations over the past year though varies by collateral type Other Consumer Loans 113 (1) 12/31/09
Slide 114: Credit Quality Review
Credit Quality Review @ Huntington —
Slide 115: Credit Quality Trends Overview
Credit Quality Trends Overview 4Q09 3Q09 2Q09 1Q09 4Q08 NAL ratio (1) 5.21% 5.85% 4.72% 3.93% 3.66% NPA ratio (2) 5.57 6.26 5.18 4.46 3.97 Net charge-off ratio 4.80 3.76 3.43 3.34 5.41 90+ days PD & accruing (3) 0.40 0.34 0.38 0.35 0.46 ALLL ratio 4.03 2.77 2.38 2.12 2.19 ALLL / NAL coverage 77 47 5
Slide 116: Key Loan Portfolio Credit Quality Metrics
Key Loan Portfolio Credit Quality Metrics 116
Slide 117: Total Commercial Loan Delinquencies
Total Commercial Loan Delinquencies (1) 30+ Days 90+ Days With 1Q08 0.0018 2Q08 0.0014 3Q08 0.0035 4Q08 0.003 1Q09 0 2Q09 0 3Q09 0.0001 4Q09 0 With 1Q08 0.016 2Q08 0.0106 3Q08 0.0145 4Q08 0.0166 1Q09 0.0095 2Q09 0.0125 3Q09 0.0113 4Q09 0.01 (1) Period end; delinquent but accruing as a % of related o
Slide 118: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) 30+ Days 90+ Days Residential Mortgages Auto Loans & Lease Home Equity Loans & Lines 2Q08 0.0508 0.0148 0.0118 3Q08 0.0579 0.0174 0.0118 4Q08 0.0574 0.0212 0.0161 1Q09 0.0705 0.0222 0.0149 2Q09 0.0747 0.0214 0.0138 3Q09 0.0623 0.0212 0.0153 4Q09 0.0563 0.0206 0.0153 (
Slide 119: Total Consumer Loan Delinquencies
Reported ex. GNMA FAS 140 ex. GNMA FAS 140 + FCMC 1Q08 0.0089 0.0056 2Q08 0.0089 0.0052 3Q08 0.0093 0.0054 4Q08 0.0115 0.0068 1Q09 0.0138 0.0085 0.0087 2Q09 0.0152 0.009 0.0086 3Q09 0.0142 0.0078 0.0069 4Q09 0.0153 0.009 0.0078 Total Consumer Loan Delinquencies (1) 30+ Days 90+ Days Reported ex. GNM
Slide 120: Net Charge-offs
Net Charge-offs ($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 Commercial and industrial $109.8 $68.8 $98.3 $210.6 $473.4 Commercial real estate 258.1 169.2 172.6 82.8 38.4 Total commercial 367.9 238.1 270.9 293.4 511.8 Auto loans 11.4 9.0 12.4 15.0 14.9 Auto leases 1.6 1.8 2.2 3.1 3.7 Home equity loans / lines 35.
Slide 121: Net Charge-off Ratios
Net Charge-off Ratios (1) 4Q09 3Q09 2Q09 1Q09 4Q08 Commercial and industrial 3.49% 2.13% 2.91% 6.22% 13.78% Commercial real estate 12.21 7.62 7.51 3.27 1.50 Total commercial 7.00 4.37 4.77 4.96 8.54 Auto loans 1.49 1.25 1.73 1.56 1.53 Auto leases 2.25 2.04 2.11 2.39 2.31 Home equity loans / lines 1.
Slide 122: Nonaccrual Loans, Nonperforming Assets and Accruing Restructured Loans
Nonaccrual Loans, Nonperforming Assets and Accruing Restructured Loans 122
Slide 123: Nonaccrual Loans (NAL) - by Sector
($MM) 12/31/09 9/30/09 $ # $ # Commercial >$5 $475.1 49 $647.7 62 $2-<$5 434.8 141 473.5 152 <$2 604.3 625.1 Subtotal $1,514.2 $1,746.4 Residential RE and Home Equity Franklin 314.7 338.5 Other 88.1 96.2 Subtotal 402.8 434.7 Total NALs $1,917.0 $2,181.1 Nonaccrual Loans (NAL) - by Sector $1,917.0 MM
Slide 124: Nonperforming Asset Flow Analysis
($MM) 4Q09 3Q09 2Q09 1Q09 4Q08 NPA beginning of period $2,344.0 $2,002.6 $1,775.7 $1,636.6 $675.3 Additions / increases 494.6 899.9 (1) 750.3 622.5 509.3 Franklin - net impact (31.0) (18.8) (57.4) (204.5) 650.2 Return to accruing status (85.9) (52.5) (40.9) (36.1) (13.8) Loan and lease losses (391.6
Slide 125: Allowances for Credit Losses (ACL)
Allowances for Credit Losses (ACL) (1) ($MM) 4Q09 4Q09 3Q09 2Q09 1Q09 4Q08 Allowance for loan Allowance for loan and lease losses (ALLL) $1,482.5 $1,032.0 $917.7 $838.5 $900.2 Allowance for unfunded loan Allowance for unfunded loan commitments and LOCs (AULC) 48.9 50.1 47.1 47.0 44.1 Total allowance
Slide 126: Relative Performance - ALLL
Relative Performance - ALLL - 12/31/09 ALLL / Loans ALLL / NPL ALLL = Allowance for Loan and Lease Losses (1) Excluding FCMC 126 Fifth Third 127% KeyCorp 116 BB&T 96 First Horizon 96 Huntington (1) 93 PNC Financial Services 89 Comerica 83 Regions Financial 82 Huntington 77 Marshall & Ilsley Corp. 72
Slide 127: 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 HBAN = (ALLL+AULC)/Loans 0.02 0.021 0.021 0.0208 0.0181 0.0178 0.017
Slide 128: 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 HBAN = (ALLL
Slide 129: Non-Franklin Credit Metrics Reconciliations
Non-Franklin Credit Metrics Reconciliations 129
Slide 130: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 130
Slide 131: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 131
Slide 132: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 132
Slide 133: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 133
Slide 134: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 134
Slide 135: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 135
Slide 136: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 136
Slide 137: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 137
Slide 138: Nonaccrual Loans, NPAs & Accruing Restructured Loans
138 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 139: Nonaccrual Loans, NPAs & Accruing Restructured Loans
139 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 140: Nonaccrual Loans, NPAs & Accruing Restructured Loans
140 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 141: Nonaccrual Loans, NPAs & Accruing Restructured Loans
141 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 142: Deposits and Other Funding
Deposits and Other Funding 142
Slide 143: Deposit Trends Linked Quarter - Average
Deposit Trends 143 Linked Quarter - Average
Slide 144: Deposit Trends Prior-year Quarter
Deposit Trends 144 Prior-year Quarter
Slide 145: Total Core Deposit Trends
Total Core Deposit Trends 145
Slide 146: Total Deposits - By Business Segment
Total Deposits - By Business Segment 146 Avg. Balances - $40.2 Billion ($B) Regional & Business Banking Comm'l Banking Comm'l Real Estate AFDS PFG Treas. / Other Total DDA-noninterest bearing $3.5 $2.1 $0.3 $ 0.1 $0.4 $0.1 $6.5 DDA-interest bearing 3.9 0.8 -- -- 0.7 -- 5.5 Money market deposits 6.0
Slide 147: Other Funding
12/08 3/09 6/09 9/09 12/09 Noncore Deposits 5.6 5.6 4.5 3.7 3.1 S-T Borrowings & Other Liab. 2.3 2.2 1.9 2 1.9 FHLB Advances 2.6 1 0.9 0.9 0.2 Other L-T Debt 2.3 2.7 2.5 2.4 2.4 Subordinated Notes 1.9 1.9 1.7 1.7 1.3 Other Funding 147 End of Period Balances ($B) $14.8 $13.4 $11.5 $10.7 13% 14% 22% 1
Slide 148: Illustrative Internal SCAP Analysis
Illustrative Internal Supervisory Capital Assessment Program (SCAP) Analysis 148
Slide 149: Illustrative SCAP: 2-Year Cumulative Losses
Outstandings 2-Yr. Cumulative Losses (2) 2-Yr. Cumulative Losses (2) 2-Yr. Cumulative Losses (2) Implied Cumulative Losses Implied Cumulative Losses Implied Cumulative Losses ($ B) 9/30/09 Low Median High Low Median High First lien mortgage loans $6.2 3.4% 6.3% 10.3% $0.2 $0.4 $0.6 Second / junior l
Slide 150: Illustrative SCAP: Tier 1 Common Equity Outcomes
2-Yr Cumulative Losses (12/10-12/12) 2-Yr Cumulative Losses (12/10-12/12) 2-Yr Cumulative Losses (12/10-12/12) 2-Yr Cumulative Losses (12/10-12/12) ($ MM) 7% 8% 9% 10% Tier 1 Common equity - 12/31/09 $2,894 $2,894 $2,894 $2,894 Pre-tax, pre-provision net revenue (after tax) 1,170 1,170 1,170 1,170 C
Slide 151: 9/30/09 Illustrative SCAP Analysis Reconciliations
9/30/09 - Illustrative SCAP Analysis (1) 151 Non-Franklin Regulatory Reporting Reconciliations (1) This will be updated with 4Q09 data once the FRY-9C reports have been generated and filed.
Slide 152: 9/30/09 Illustrative SCAP Analysis Reconciliations
9/30/09 - Illustrative SCAP Analysis (1) 152 Non-Franklin Regulatory Reporting Reconciliations (1) This will be updated with 4Q09 data once the FRY-9C reports have been generated and filed.
Slide 153: Capital
Capital (Huntington —
Slide 154: Capital Actions
Capital Actions (Sand Shares in millions) 1009 Frank restruoturng Conversion of preferred stock (other tangibie capital improverrents CComron Stock Shares Amount ose m6 114A 1009 Total 748 2000 Dacretonary equty Bavance mT wes 178 DOscretonary equty ssvance #2 es 74a Conversion of preferred stock 52
Slide 155: Capital
Capital (1) 4Q09 4Q09 3Q09 2Q09 1Q09 4Q08 Total risk-weighted assets ($B) $43.3 $44.1 $45.5 $46.4 $47.0 Tier 1 leverage 10.09% 11.30% 10.62% 9.67% 9.82% Tier 1 risk-based capital 12.03 13.04 11.85 11.14 10.72 Total risk-based capital 14.41 16.23 14.94 14.26 13.91 Tangible common equity/assets 5.92 6
Slide 156: Capital Trends
LLR/NPL ratio 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 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 Tang. Common Equity / Assets (TCE Ratio) 0.0492 0.0481 0.0488 0.0404 0.0465 0.056
Slide 157: Capital Ratio Trends
Total Risk-based Capital Tier I Risk-based Capital Tang. Equity / Risk Weighted Assets 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 0.0723 0.0706 3Q03 0.1119 0.084 0.0724 0.0677 4Q03 0.1195 0.0853 0.0731 0.0679 1Q04 0.1213 0.087
Slide 158: Regulatory Capital - 12/31/09 vs. Peers
Regulatory Capital - 12/31/09 158 Tier 1 Capital Total Capital MTB 0.0859 ZION 0.1032 MI 0.11 PNC 0.115 BBT 0.115 RF 0.116 HBAN 0.1203 CMA 0.1246 ASBC 0.1252 KEY 0.1268 FITB 0.1331 FHN 0.1628 MTB 0.123 ZION 0.1305 ASBC 0.1424 HBAN 0.1441 MI 0.1442 PNC 0.151 BBT 0.157 RF 0.158 KEY 0.1685 CMA 0.1693 F
Slide 159: Credit Ratings
Credit Ratings Senior Subordinated Comm'l. Paper / Notes Notes Short-term Outlook Huntington Bancshares Moody's 4/7/09 Baa2 Baa3 P-2 Negative S&P 6/17/09 BB+ BB B 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+ A-3 N
Slide 160: Franchise
Franchise (Huntington —
Slide 161: Huntington Bancshares Overview
Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $52 billion Employees (1) - 10,272 Franchise: Footprint 6 states: OH, MI, PA, IN, WV, KY 602 offices / 1,347 ATMs Retail and Business Banking 5 Areas - Mortgage banking + MD, NJ Commercial Banking
Slide 162: Focus on the Midwest
Focus on the Midwest (1) Offices 115 ATMs 237 Detroit 3% Grand Rapids 10% Offices 340 ATMs 750 Akron 8% Canton 25% Cincinnati 4% Cleveland 5% Columbus 28% Dayton 6% Toledo 21% Youngstown 20% Offices 50 ATMs 84 Indianapolis 6% Offices 13 ATMs 31 Offices 28 ATMs 130 Charleston 11% Excludes 3 PFG offic
Slide 163: 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 BOs 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 164: Organization
Organization (Huntington —
Slide 165: Leadership Team: 2009 Appointments
Leadership Team Leadership Team 165 2009 Appointments
Slide 166: 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 26 9 Kevin Blakely SEVP-Chief Risk Officer 3Q09 35 <1 Jim Dunlap SEVP-Regional & Commercial Banking Director 1Q06 30 30
Slide 167: 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 Jerry Kelsheimer Greater Cleveland 1Q05 22 14 Frank Hierro Mahoning Valley
Slide 168: 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 169: Business Segment Summary
Business Segment Summary 169
Slide 170: Business Segment Loans & Deposits
Business Segment Loans & Deposits - 12/31/09 Total Loans - $36.8 B Total Deposits - $40.5 B 170 Retail and Business Banking 0.71 Commercial Banking 0.15 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 171: Business Segment Contribution
171 Business Segment Contribution
Slide 172: Safe Harbor Disclosures
Safe Harbor Disclosures (Huntington —
Slide 173: Basis of Presentation: Use of non-GAAP financial measures
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 174: 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 outsi
Slide 175: 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 176: 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 — Q4 2009 Earnings Presentation on 6ix