Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Bank of America Merrill Lynch Banking & Financial Services Conference 2013
19 slides from Huntington Bancshares's conference presentation, Nov 13, 2013
Slide 1: Bank of America Merrill Lynch Banking & Financial Services Conference
Exhibit 99.1 Bank of America Merrill Lynch Banking & Financial Services Conference Steve Steinour November 13, 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements may be identified by words such as expect,
Slide 3: Participants and Discussion Topics
Participants Presenter Steve Steinour Chairman, President, & Chief Executive Officer Also Present Todd Beekman – Senior Vice President – Investor Relations Mark Muth – Vice President – Investor Relations Discussion Topics • Who is Huntington • 2010 Strategy and Investments – Visible Results: Custome
Slide 4: Who is Huntington (HBAN)
Who is Huntington (HBAN) Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Branches 731 (2) Total assets - $57 Billion ATMs 1,516 Total loans - $43 Billion, 90% in footprint (1) Employees - 11,956 Deposits - Top 12 MSAs MSA Rank Branches Deposits Share Columbus,
Slide 5: Continuing To Invest But At a Moderated Pace
Continuing To Invest But At a Moderated Pace Investing for the Long Term 2009 2010 2011 2012 2013 Foundation of Service Credit & Risk Management and IT Infrastructure Strategic Plan Common Sales Process: OCR / Cross Sell Building a Powerful Brand Retail and 24-Hour Grace ® Asterisk-Free Checking™ Bu
Slide 6: Huntington's Strategy Since 2010
Huntington’s Strategy Since 2010 Grow market share and share of wallet • How – Best in class consumer products – Commercial focus on Small & Middle Market and select Specialty Verticals – Best in class customer service with increased marketing & branding – Deep community involvement – Alignment of e
Slide 7: Outcome… Growing "Stickier" Customers With Increased Share of Wallet
Outcome… Growing “Stickier” Customers With Increased Share of Wallet • Average expected length of consumer relationship is up over 10% Consumer Checking Households (000s) 4+ Services / Consumer Household 1,350 78% 1,300 77% 1,315 76% 1,250 76% 74% 1,200 1,150 72% 1,167 1,100 71% 70% 1,050 68% 1,000
Slide 8: Outcome… Better Deposit Mix at Lower Costs
Outcome… Better Deposit Mix at Lower Costs • Targeted mix of noninterest bearing of low to mid 30%’s • Deposit cost, in a higher interest rate environment, should be below peers Avg. Total Deposits – Mix Avg. Total Deposits – Rate 100% 5% 5% 5% 1.20 6% Noncore 1.14 90% 9% bp 15% 19% 3Q13 vs. HBAN Pe
Slide 9: Outcome… Disciplined Loan Growth With More Stable Asset Yields
Outcome… Disciplined Loan Growth With More Stable Asset Yields Loan Growth & Loan Growth & Declining Yield Increasing Yield HBAN Loans Decline & Loans Decline & Declining Yield Increasing Yield 9 Source: SNL Financial Peers include ASBC, BBT, CMA, FHN, FITB, FNFG, KEY, MTB, PNC, RF, STI, & ZION
Slide 10: Outcome… Relationship Growth and Product Penetration Offsetting Fee Income Headwinds
Outcome… Relationship Growth and Product Penetration are Offsetting Fee Income Headwinds 10 LQ % Change Noninterest Income 5 6 5 1 0 -1 -4 -5 LQ % Change Noninterest Income -5 Excluding Mortgage 15 -10 -12 -13 -14 15 -15 -16 10 -20 5 5 4 1 2 LQ % Change Mortgage Banking Income 0 200 -1 -1 150 159 -5
Slide 11: Execution of Long Term Strategic Plan Driving Differentiated Results
Execution of Long Term Strategic Plan Driving Differentiated Results 2009 2010 2011 2012 2013 2014 Lay Optimize Invest Focus Extend and Disciplined the Current in the Future Expand Execution Foundation Franchise Core • Capital and • Profitability / • Build out • Build out • Monetize • Capital liquid
Slide 12: Continued Execution is Driving Results
Continued Execution is Driving Results • Disciplined Capital Management 2014 • Grow the core business Disciplined • Support the dividend Execution • All other - Repurchase, M&A, TruPS, … • Capital • Operating Leverage / Continuous Improvement Management • Deliver full-year positive operating leverag
Slide 13: Strategy & Execution Differentiate Results
Strategy & Execution Differentiate Results Comparison of Selected Performance Metrics Among Top 100 Bank Holding Companies (1) Best HBAN HBAN HBAN HBAN Peers Peers HBAN HBAN HBAN Peers HBAN HBAN HBAN Peers Peers HBAN Peers Peers Peers Peers Peers Peers Peers HBAN Worst (1) 100 largest BHCs, ranked b
Slide 14: Expectations… Next Several Quarters
Expectations… Next Several Quarters Challenge / HBAN Opportunity Economy Customer uncertainty from Midwestern strength (e.g., manufacturing and housing recovery) and soundness uneven U.S. economic of HBAN strategy will drive growth. recovery Disciplined Economic uncertainty • C&I growth to increase
Slide 15: Important Messages
Important Messages • Driving revenue with a continued focus on expense and rate of investment + Multi-year process of executing our long-term strategic plan + Prior investments are not mature …. should continue to drive growth + Moderating level of investment given economic uncertainty + Continuous
Slide 16: Basis of Presentation
Do we consolidate Basis of Presentation this and next slide? Use of non-GAAP financial measures This document may contain GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Wher
Slide 17: Basis of Presentation
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 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Total Noninterest Mortgage Banking Noninterest Income ($000) Income Income Excluding Mortgage 3Q 2013 2Q 2013 Change 3Q 2013 2Q 2013 Change 3Q 2013 2Q 2013 Change HBAN 250,405 249,065 1% 33,659 23,621 -30% 215,406 226,784 5% ASBC 70,668 84,276 -16% 15,399 6,015 -61% 6
Slide 19: untington
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