Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q1 2009 Earnings Presentation
174 slides from Huntington Bancshares's earnings presentation, May 15, 2009
Slide 1: 2009 Second Quarter Investor Handout
May 12, 2009 2009 Second Quarter Investor Handout 1
Slide 2: 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 3: Basis of Presentation
Basis of Presentation Rounding Please note that columns of data in the following slides may not add due to rounding. Earnings per share equivalent data Significant income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better
Slide 4: 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
Slide 5: Steinour Overview Discussion
Steinour Overview Discussion 5
Slide 6: 2009 First Quarter Achievements
2009 First Quarter Achievements Successfully restructured Franklin Credit relationship Increased capital ratios Cut the common stock dividend Converted a portion of Series A preferred stock to common Increased balance sheet efficiency... automobile loan securitization, mortgage loan sale, and munici
Slide 7: 2009 First Quarter Achievements - Risk Management Enhancements
2009 First Quarter Achievements - Risk Management Enhancements Objective / Strategy More centralized view of portfolio management and risk appetite Establish common risk criteria and approval process Strengthen accountability Actions Adjusted consumer and commercial credit policies Created commercia
Slide 8: 90-Day Report Card
90-Day Report Card Objectives Intensively manage the Franklin relationship and address this as an investor concern while creating opportunities to build shareholder value Review the 2009 budget in light of the expense initiative and current economic conditions By March 31st announce organizational c
Slide 9: The Next 90-Days
The Next 90-Days Objectives Optimize total balance sheet for maximum net interest income Drive fee income results through cross-sell Implement recently announced reorganization Launch strategic plan for select business segment growth and investment Aggressively manage expenses... exceed targeted sav
Slide 10: Important Messages
Important Messages Franklin... addressed credit exposure... positioned to capture value in servicing platform... opportunity for recovery With the economy weak, levels of problem loans, net charge-offs, and provision expense are expected to remain elevated... no "blow outs" expected Auto, home equit
Slide 11: 2009 Outlook
2009 Outlook (1) No significant economic turnaround will occur this year Elevated charge-offs throughout the year Continue to expect that provisioning will remain elevated Net interest margin under modest pressure from 1Q09 level of 2.97% Continue to expect core deposit growth Low interest rate envi
Slide 12: Huntington Review
Huntington Review (Huntington
Slide 13: Table of Contents
Table of Contents 2009 First Quarter Overview 14 Quarterly Financial Review 20 Quarterly earnings summaries 21 Significant items impacting comparisons 25 Income Statement 26 Net income & EPS 27 Pre-tax, pre-provision income 28 Net interest margin 29 Noninterest income 35 Expense trends 41 Operating
Slide 14: 2009 First Quarter Overview
2009 First Quarter Overview 14
Slide 15: 1Q09 Earnings Summary
1Q09 Earnings Summary After-tax EPS Net loss $(2,433.2) MM Net loss applicable to common shares $(2,492.0) MM $(6.79) Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Goodwill impairment charge $(2,602.7) $(7.09) Preferred stock conversion NA (0.08) Franklin restructuring 159.9 (2) 0.4
Slide 16: Quarterly Earnings
Quarterly Earnings (SMM) Net interest income Provision Noninterest income Noninterest expense Pre-tax income/(loss) Net Income/(loss) EPS NM - not meaningful (@ Huntington Change Better (Worse) vs. 4008 1Q08 1009 4Q08 1008 Amt. ‘Amt Pot. 3 3375 S$ 3764 S$ 3768 [$ (389) [S$ (93) ~ (1% (218) (7226) (8
Slide 17: 2009 First Quarter Performance Highlights
2009 First Quarter Performance Highlights $(6.79) EPS; $(0.06) EPS excluding impact of Significant Items Goodwill impairment charge $(7.09) Franklin restructuring 0.44 Preferred stock conversion (0.08) $225 million pre-tax pre-provision income, up $25 million, or 13%, linked-quarter 4.65% TCE ratio,
Slide 18: Pre-tax, Pre-provision Income Trends
Pre-tax, Pre-provision Income Trends $25.0 MM Linked-Quarter Increase Reflected: Better/(Worse) Higher mortgage banking income $42.2 MM Lower expenses, excluding goodwill impairment 21.0 Higher brokerage and insurance income 8.7 Lower net interest income (38.9) All other (8.0) 18
Slide 19: Quarterly Performance Highlights
Quarterly Performance Highlights 1Q09 4Q08 3Q08 2Q08 1Q08 EPS $(6.79) $(1.20) $0.17 $0.25 $0.35 Pre-tax pre-provision income ($MM) (1) $224.6 $199.6 $310.8 $265.7 $259.6 Net interest margin 2.97% 3.18% 3.29% 3.29% 3.23% Efficiency ratio (2) 60.5% 64.6% 50.3% 56.9% 57.0% Loan & lease growth (3) (6)%
Slide 20: 2009 - 2008 Quarterly Financial Review
20 2009 - 2008 Quarterly Financial Review
Slide 21: 4Q08 Earnings Summary
4Q08 Earnings Summary After-tax EPS Net loss $(417.3) MM Net loss applicable to common shares $(440.4) MM $(1.20) Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Franklin relationship $(454.3) $(0.81) Net market-related loss (3) (141.7) (0.25) VISA(r) indemnification 4.6 0.01 VISA(r)-
Slide 22: 3Q08 Earnings Summary
3Q08 Earnings Summary After-tax EPS Net income $75.1 MM Net income applicable to common shares $63.0 MM $0.17 Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Net market-related losses (3) $(47.1) $(0.08) VISA(r)-related deferred tax valuation allowance provision (3.7) (2) (0.01) (1) P
Slide 23: 2Q08 Earnings Summary
2Q08 Earnings Summary After-tax EPS Net income $101.4 MM Net income applicable to common shares $90.2 MM $0.25 Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) VISA(r)-related deferred tax valuation allowance benefit $3.4 (2) $0.01 Merger / restructuring costs (14.6) (0.03) Net market-
Slide 24: 1Q08 Earnings Summary
1Q08 Earnings Summary After-tax EPS Net income $127.1 MM $0.35 Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Aggregate impact of Visa (r) IPO (3) $37.5 $0.07 VISA(r)-related deferred tax valuation allowance benefit 11.1 (2) 0.03 Net market-related losses (4) (20.0) (0.04) Asset impa
Slide 25: 2009 - 2008 Quarterly Significant Items Reconciliation
2009 - 2008 Quarterly 25 Significant Items * Impacting Financial Performance Comparisons - Reconciliation
Slide 26: Income Statement
Income Statement (Huntington
Slide 27: Net Income & EPS
Amount 3Q02 0.36 4Q02 0.29 1Q03 0.39 2Q03 0.42 3Q03 0.39 0.06 4Q03 0.4 1Q04 0.45 2Q04 0.47 3Q04 0.4 4Q04 0.39 1Q05 0.41 2Q05 0.45 3Q05 0.47 4Q05 0.44 1Q06 0.45 2Q06 0.46 3Q06 0.46 0.19 4Q06 0.375 1Q07 0.4 2Q07 0.34 3Q07 0.38 4Q07 -0.65 1Q08 0.35 2Q08 0.25 3Q08 0.17 4Q08 -1.2 1Q09 -6.79 Amount 3Q02 8
Slide 28: Pre-tax, Pre-provision Income
Pre-tax, Pre-provision Income (1) 28 1Q08 259.6 2Q08 265.7 3Q08 310.8 4Q08 199.6 1Q09 224.6 (1) Excluding securities gains (losses) and amortization of intangibles
Slide 29: Net Interest Margin
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 Amount 1Q04 225.708 2Q04 225.482 3Q
Slide 30: Net Interest Margin - Yields & Rate Trends
Net Interest Margin - Yields & Rate Trends 30 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 E/A Yield 0.0572 0.0542 0.0523 0.0511 0.0489 0.0476 0.0489 0.0505 0.0521 0.0552 0.0572 0.0601 0.0621 0.0655 0.0673 0.0686 0.0698
Slide 31: Managing Interest Rate Risk
Managing Interest Rate Risk Net Interest Income at Risk = Interest Rate Risk + Business Risk Interest Rate Risk The exposure of income (short-term interest rate risk) and economic values (long-term interest rate risk) to changes in market interest rates Business Risk Examples: Credit and liquidity r
Slide 32: Managing Interest Rate Risk - Philosophy
Managing Interest Rate Risk Philosophy Relatively stable net interest margin Maintain long-term perspective... avoid speculating on the short-term movement in interest rates Policy metrics to manage interest rate risk include: Net interest income at risk simulation model - short-term interest rate r
Slide 33: Net Interest Income at Risk
Net Interest Income at Risk 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 4Q03
Slide 34: Managing Interest Rate Risk - Modeled Exposure
Managing Interest Rate Risk Modeled Exposure Net Interest Income at Risk (S-T measure) (1) bp change (200) bp (100) bp +100 bp +200 bp 3/31/09 0.1%(3) (0.1)%(3) 1.3 % 2.3 % 12/31/08 (0.3)%(3) (0.9)%(3) 0.6 % 1.1 % 9/30/08 (2.3) (0.7) 0.5 0.8 6/30/08 (0.3) 0.0 (0.3) (0.6) 3/31/08 (1.6) (0.4) (0.1) (0
Slide 35: Noninterest Income Trends Linked Quarter
Noninterest Income Trends 35 Linked Quarter
Slide 36: Noninterest Income Trends Prior-year Quarter
Noninterest Income Trends 36 Prior-year Quarter
Slide 37: Mortgage Banking Income
Mortgage Banking Income ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Origination & secondary marketing $30.0 $7.2 $7.6 $13.1 $9.3 Servicing fees 11.8 11.7 11.8 11.2 10.9 Amortz. capitalized servicing (12.3) (6.5) (6.2) (7.0) (6.9) Other mortgage banking income 9.4 3.0 3.5 6.0 4.3 Sub-total 38.9 15.3 16.8 23.2 17.
Slide 38: Noninterest Income Trends
Noninterest Income Trends 4Q07 200.032 1Q08 201.322 2Q08 218.342 3Q08 210.795 4Q08 199.213 1Q09 222.182 Mrtg Bnk MSR-related Sec. gains (losses) Other (1) 4Q07 -11.766 -11.551 -6.158 1Q08 -24.706 1.429 57.707 2Q08 -10.697 2.073 26.712 3Q08 -6.468 -73.79 37.32 4Q08 -22.084 -127.082 17.052 1Q09 -3.506
Slide 39: Service Charge Income
Service Charge Income 3Q04 43.9 4Q04 41.7 1Q05 39.4 2Q05 41.5 3Q05 44.8 4Q05 42.1 1Q06 41.2 2Q06 47.2 3Q06 48.7 4Q06 48.5 1Q07 44.8 2Q07 50 3Q07 54 24.1 4Q07 81.3 1Q08 72.67 2Q08 79.63 3Q08 80.508 4Q08 75.247 1Q09 69.878 Oper. Lease Inc. 4Q05 11.5 1Q06 11.5 2Q06 13 3Q06 13 4Q06 13.8 1Q07 13.2 2Q07 1
Slide 40: Trust and Brokerage / Insurance Income
3Q04 13.2 4Q04 12.9 1Q05 13 2Q05 13.5 3Q05 13.9 4Q05 13.1 1Q06 15.2 2Q06 14.3 3Q06 14.7 4Q06 14.6 1Q07 16.1 2Q07 17.2 3Q07 28.8 4Q07 30.3 1Q08 36.6 2Q08 35.694 3Q08 34.309 4Q08 31.233 1Q09 39.948 Trust and Brokerage / Insurance Income 3Q04 17.1 4Q04 17.3 1Q05 18.2 2Q05 19.1 3Q05 19.7 4Q05 20.4 1Q06
Slide 41: Expense Trends Linked Quarter
Expense Trends Linked Quarter 41
Slide 42: Expense Trends Prior-year Quarter
Expense Trends 42 Prior-year Quarter
Slide 43: Noninterest Expense Trends
Noninterest Expense Trends Personnel Other 1Q08 201.943 149.621 2Q08 199.991 158.485 3Q08 184.827 134.706 4Q08 196.785 174.122 1Q09 175.932 173.989 4Q07 11925 1Q08 11787 2Q08 11251 3Q08 10901 4Q08 10951 1Q09 10533 Noninterest Expense (1) Number of Employees (FTE) ($MM) 43 (1) Excluding amortization
Slide 44: Efficiency Ratio Trends
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 Efficiency Ratio - Reported 0.663 0.625 0.6 0.671 0.651 0.623 0.663 0.664 0.637 0.618 0.574 0.57 0.583 0.581 0.578 0.633 0.592 0.578 0.577 0.735 0.57 0.569 0.503 0.646 0.605 E
Slide 45: Operating Leverage & Efficiency Ratio Trends
Operating Leverage & Efficiency Ratio Trends 45
Slide 46: Balance Sheet
Balance Sheet (Huntington
Slide 47: Balance Sheet - Assets
Balance Sheet - Assets Change 2009 2008. 2008 aren '0 v.08. Taos) March 31, December 33,__“Wen 37, Amount Perea pases “Cash ad due fom banks S$ 2m 8 oor S122 $1000 29% Federal funds sald and secuites purchased under resale agreements = 38 41030” (4036) -1000% Inlerest bearing depos in banks 33 203 2
Slide 48: Balance Sheet - Liabilities & Shareholders' Equity
Balance Sheet - Liabilities & Shareholders' Equity 48
Slide 49: Investment Securities
Investment Securities (Huntington
Slide 50: Investment Securities
Investment Securities 4Q05 0.146 1Q06 0.155 2Q06 0.158 3Q06 0.155 4Q06 0.138 1Q07 0.134 2Q07 0.123 3Q07 0.099 4Q07 0.095 1Q08 0.094 2Q08 0.097 3Q08 0.098 4Q08 0.094 1Q09 0.0950376 Investment Securities Average Balances % of Average Earning Assets ($MM) Investment Securities 4Q05 4290 0.0496 1Q06 468
Slide 51: AFS Securities Overview - 3/31/09
Auto Trust 210 Pooled Trust Pfrd (1) 131 Alt-A Mortg. 356 Prime CMO 512 Agency 1742 Other 62 TLGP Debt 187 US Treas & Agency 1153 FRB/FHLB Stock 427 Municipal Bonds 125 Asset Backed 696 Mortgage Backed 2254 AFS Securities Overview - 3/31/09 Total Fair Value - $4.9 Billion ($MM) Mortgage & Asset Back
Slide 52: Investment Securities - Assessment
Investment Securities - Assessment (1) 52 Par Value Book Value Market Value OCI Alt-A mortgage backed $543 MM $365 MM $356 MM $(6) MM - Purchased 2006 % to Par Value 66% - 25 securities - senior tranche - 10/1 ARMs or 15 / 30 year fixed; no option ARMs - Cash flow analysis performed monthly to test
Slide 53: Available for Sale Securities Mix
Mortgage Backed Agency Asset Backed Muni's Treasuries TLGP Debt Other 12/31/03 0.448 0.234 0.13 0.088 0.061 0 0.039 12/31/04 0.337 0.228 0.283 0.098 0.005 0 0.049 12/30/05 0.3695 0.0732 0.3952 0.1204 0.0043 0 0.0374 12/31/06 0.429 0.034 0.362 0.136 0.001 0 0.038 12/31/07 0.521 0.033 0.193 0.154 0 0
Slide 54: Investment Securities - Credit Quality
AAA AA A BBB Not Rated / BBB- and lower FRB & FHLB Stock 12/03 0.798 0.088 0.057 0.022 0.018 0.017 12/04 0.6 0.09 0.25 0.05 0.01 0.02 12/05 0.581 0.145 0.235 0.038 0 0.02 12/06 0.8233 0.062 0.094 0.021 0 0.035 12/07 0.891 0.047 0.057 0.001 0.004 0.093 12/08 0.689 0.142 0.076 0.016 0.077 0.099 3/09 0
Slide 55: Loan Portfolio Overview
Loan Portfolio Overview (Huntington
Slide 56: Credit Exposure Composition
Credit Exposure Composition ($MM) 3/31/09 3/31/09 12/31/08 12/31/08 12/31/07 12/31/07 12/31/06 12/31/06 12/31/05 12/31/05 Amt Pct Amt Pct Amt Pct Amt Pct Amt Pct Commercial & industrial $13.8 35 % $13.5 33 % $13.1 33 % $7.8 30 % $6.8 28 % Commercial real estate 9.3 23 10.1 24 9.2 23 4.5 17 4.0 16 To
Slide 57: Credit Portfolio Overview - 3/31/09
Other 656.868 Auto loan/lease 3361.905 Residential mortgages 4837 Home equity 7663 CRE 9261.024 C&I 13767.983 SFHB 1240 Other CRE 8021 Credit Portfolio Overview - 3/31/09 $39.5 Billion ($MM) CRE 57
Slide 58: Loan and Lease Trends Linked Quarter
Loan and Lease Trends 58 Linked Quarter
Slide 59: Loan and Lease Trends Prior-year Quarter
Loan and Lease Trends 59 Prior-year Quarter
Slide 60: Franklin Credit Relationship
60 Franklin Credit Relationship
Slide 61: Franklin Credit Relationship Update
Improved alignment of interest beginning in 12/08 as evidenced by: $22.4 million in collections in March Material increase in OREO sales proceeds evident over the last 4 months $8.5 million in incremental payoffs from refinance efforts Expected April results slightly higher than March Interest colle
Slide 62: Franklin Impact
Franklin Impact 62 Change 3/31/09 vs. 12/31/08 ($MM) Assets NALs OREO Total NPAs Loans and Leases C&I $(650.2) $(650.2) $(650.2) Residential mortgage 427.9 360.1 360.1 Home equity 65.6 6.0 6.0 Total (156.7) (284.1) (284.1) OREO assets 79.6 -- $79.6 79.6 Total $(77.1) $(284.1) $79.6 $(204.5) Change i
Slide 63: Commercial Loans and Leases
Commercial Loans and Leases 63
Slide 64: Total Commercial Loans by Industry Sector
Public Admin & Other 0.01 Agriculture 0.0093 Energy 0.0194 Transportation 0.0373 Wholesale Trade 0.0444 Construction 0.056 Manufacturing 0.1038 Retail Trade 0.1011 Services 0.2058 Finance, Insurance, RE 0.414 Total Commercial Loans - 3/31/09 By Industry Sector Loans Outstanding - $23.0 Billion 64
Slide 65: Total Commercial Loans by Size
< $5 MM 42387 $5+ MM 851 Total Commercial Loans - 3/31/09 # of Loans by Size Loans by Dollar Size (1) $5 MM - < $10 MM 526 $10 MM - < $25 MM 288 $25 MM - < $50 MM 53 > $50 MM 6 Total 873 Loans Outstanding - $23.0 Billion < $5 MM 0.5659 $5 MM - < $10 MM 0.1589 $10 MM - <$25 MM 0.1867 $25 MM - < $50 M
Slide 66: Commercial Loans Average Balances
Commercial Loans Average Balances ($B) C&I CRE Small Business C&I/CRE 1Q04 4.44 3.149 1.974 2Q04 4.555 3.191 2.018 3Q04 4.298 3.427 2.081 4Q04 4.503 3.429 2.136 1Q05 4.71 3.525 2.183 2Q05 4.901 3.583 2.23 3Q05 4.708 3.642 2.251 4Q05 4.95 3.6 2.23 1Q06 6.773 4.357 2.035 2Q06 7.287 4.669 2.351 3Q06 7.
Slide 67: C&I Loan Portfolio Composition by Industry
67 Public Admin. & Unclass. 0.0122 Agriculture 0.0145 Energy 0.0307 Contractors & Construction 0.0376 Transportation 0.0547 Wholesale Trade 0.071 Retail Trade 0.1616 Finance & Real Estate 0.1664 Manufacturing 0.1706 Services 0.2807 Total C & I Loan Portfolio Composition - 3/31/09 By Industry As % of
Slide 68: C&I Loan Portfolio Composition by Region
68 Other 0.0032 East Michigan 0.0357 Indiana 0.0378 Mahoning Valley 0.0393 Pittsburgh 0.0524 West Virginia 0.0542 Northwest Ohio 0.0586 Akron/Canton 0.068 HBEF 0.0741 Southern OH/KY 0.079 Cleveland 0.086 West Michigan 0.0923 Dealer Sales 0.0915 Central Ohio 0.2281 Total C & I Loan Portfolio Composit
Slide 69: C&I Loan Portfolio by Obligor Size
69 <$500M 0.2188 $500M - <$1MM 0.101 $1MM - <$5MM 0.3043 $5MM - <$10MM 0.1503 $10MM - <$20MM 0.1279 $20MM - <$50MM 0.0753 $50MM and greater 0.0224 Total C & I Loan Portfolio Composition - 3/31/09 By Loan Outstanding Obligor Size & Number of Obligors 69 4 38 131 301 1,976 1,963 31,424 Loans Outstandi
Slide 70: Commercial & Industrial Lending
Loans Outstanding - $13.8 Billion Risk Mitigation Focus on Ideal Huntington Client within our footprint Granular portfolio with geographic and sector diversification Seeking measured growth - have not sacrificed credit quality and profitability for short-term growth 1Q09 portfolio growth was associa
Slide 71: Portfolio Overview - Commercial & Industrial
Loans Outstanding: $13.8 Billion (2) Net charge-offs 1Q09: 255 bp 2008: 83 bp Diversified by sector and geographically within our Midwest footprint Granular 3 loans >$50 million... 1% of portfolio 51 loans $25-$50 million... 7% of the portfolio Focus on middle market companies with $10-$100 MM in sa
Slide 72: Total C&I Loan Portfolio Asset Quality
Total C & | Loan Portfolio Asset Quality Portfolio Performance by Segment — as of 3/31/09 (sm) OS 30+PD Class. + NAL’'s = ACL Accruing cal $12,498 0.69% 6.40% 2.76% 2.45% (Exc. Below Segments) Res. Homebuilder Related 516 074 15.44 = 5.90 4.24 Const & Contractors 512 077 «957 3.44 2.84 Auto Industry
Slide 73: C&I Loans to Auto Industry
73 C&I Loans to Auto Industry (1) Outstandings (2) ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Loans to suppliers $ 242 $ 215 $ 226 $ 237 $ 264 Dealer floorplan 944 961 745 839 846 Dealer non-floorplan 347 346 352 339 336 Total $1,533 $1,521 $1,323 $1,414 $1,446 NPLs Suppliers 6.44 % 6.71 % 2.36 % 2.23 % 1.58 %
Slide 74: Commercial Real Estate Loans - 3/31/09
Agriculture 0.0001 Recreational 0.0046 Raw Land & Other Land Uses 0.0211 Health Care 0.0304 Hotel 0.034 Warehouse & Industrial 0.117 Non Project Loans 0.1224 Office 0.1245 Single Family Home Builder 0.1331 Multi Family 0.1585 Retail Properties 0.2542 Commercial Real Estate Loans - 3/31/09 By Propert
Slide 75: CRE Loan Portfolio Composition by Location and Loan Type
75 Construction Mini-Perm Permanent Non Project Loans Line/Letter of Credit 0.22 0.34 0.27 0.12 0.05 Total CRE Loan Portfolio Composition - 3/31/09 By Property Location By Loan Type $9.3 Billion - ($10.1 billion at 12/31/08) (1) Permanent 27% Mini-perm 38% Construction 17% Non Project Loans 13% 75 O
Slide 76: CRE Loan Portfolio Composition by Property Type
Other 0.005 Raw land & other land uses 0.021 Health Care 0.03 Hotel 0.034 Industrial & warehouse 0.116 Lines to real estate companies 0.122 Office 0.124 Single family home builder 0.134 Multi family 0.158 Retail properties 0.256 76 Total CRE Loan Portfolio Composition - 3/31/09 By Property Type By P
Slide 77: Portfolio Overview - Commercial Real Estate
Portfolio Overview- Commercial Real Estate 77 (1) 3/31/09 Loans Outstanding: $9.3 Billion (1) Net charge-offs 1Q09: 327 bp 2008: 71 bp Single Family Homebuilder ($1.2 Billion; $1.6 million average loan size) Weakest commercial loan segment Diversified geographically within our Midwest footprint CRE
Slide 78: CRE Portfolio Performance by Segment
78 Portfolio Performance by Segment - as of 3/31/09 78 Total CRE Loan Portfolio Asset Quality ($MM) O/S 30+ PD Accruing Class. NAL's ACL CRE (Exc. SFHB & Retail) $5,654 1.07% 8.91% 4.69% 2.54% Single Family Homebuilder 1,240 2.20 38.72 23.33 8.71 Retail 2,367 1.63 12.19 4.34 4.56 Total CRE $9,261 1.
Slide 79: Commercial Real Estate Lending
(1) 3/31/09; $2.1 B Construction + $7.2 B Nonconstruction (2) Annualized (3) Period end Loans Outstanding - $9.3 Billion (1) Risk Mitigation Granular portfolio with geographic and project diversification throughout our footprint LTV, debt service coverage, and equity requirements underwritten to app
Slide 80: CRE Credit Quality Data by Property Type
80 By Property Type 80 Total CRE Loan Portfolio Credit Quality Data Net Charge-offs Quarter Ended March 31, 2009 Net Charge-offs Quarter Ended March 31, 2009 Net Charge-offs Quarter Ended March 31, 2009 Nonaccrual Loans At March 31, 2009 Nonaccrual Loans At March 31, 2009 ($MM) Amount Annualized % %
Slide 81: Single Family Home Builder Portfolio Reconciliation
81 81 Single Family Home Builder Portfolio Reconciliation 12/31/08 Balance $1,589 MM Less: Mobile Home Parks (93) Less: 1-4 Family Rentals (206) Less: Other net changes (50) 3/31/09 Balance $1,240 MM The elimination of Mobile Home Parks and 1-4 Family Rental Properties is consistent with industry pr
Slide 82: Single Family Home Builder Exposure
Loans Outstanding - $1.2 Billion (1) Portfolio Characteristics Granular portfolio - only 15 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 b
Slide 83: Single Family Home Builder Portfolio Performance
Loans Outstanding - $1.2 Billion (1) Portfolio Performance 83 Single Family Home Builder Exposure ($MM) 1Q09 (3) 4Q08 3Q08 2Q08 1Q08 30+ days PD & accruing (2) - $ $267 $228 $229 $159 $143 - % 21.5% 14.4% 14.4% 9.7% 8.4% Classified - $ $480 $369 $287 $245 $210 - % 38.7% 23.2% 18.0% 14.9% 12.4% NALs
Slide 84: CRE - Retail Exposure
84 Period end CRE - Retail Exposure ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Retail exposure trends $2,367 $2,241 $2,173 $2,064 $2,007 Loans Outstanding - $2.4 Billion (1) Portfolio Characteristics Pre-leasing requirements with construction loans generate adequate NOI to cover interest expense at full funded
Slide 85: CRE - Retail Portfolio Performance
Loans Outstanding - $2.4 Billion (1) Portfolio Performance 85 CRE - Retail Exposure ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 30+ days PD & accruing (2) - $ $121 $137 $95 $78 $43 - % 5.11% 5.1% 3.6% 3.1% 1.7% Classified - $ $289 $165 $131 $98 $87 - % 12.2% 6.1% 4.9% 3.9% 3.5% NALs (included in Classified) - $
Slide 86: Consumer Loans and Leases
Consumer Loans and Leases (Huntington
Slide 87: Consumer Loans and Leases - 3/31/09
Auto loans 0.18 Auto leases 0.03 Home equity 0.47 Residential mortgage 0.29 Other consumer 0.04 Consumer Loans and Leases - 3/31/09 By Type ($MM) Amt Pct Auto loans $2.9 18 % Auto leases 0.5 3 Home equity * 7.7 46 Residential real estate 4.8 29 Other consumer 0.7 4 Total consumer $16.5 100 % * Home
Slide 88: Auto Loans and Leases Trends
Auto Direct Finance Leases Auto Operating Leases 3Q02 0.461 2.597 4Q02 0.759 2.328 1Q03 1.006 2.076 2Q03 1.306 1.802 3Q03 1.59 1.565 4Q03 1.802 1.355 1Q04 1.99 1.17 2Q04 2.139 0.97 3Q04 2.25 0.79 4Q04 2.388 0.64 1Q05 2.461 0.51 2Q05 2.468 0.39 3Q05 2.424 0.29 4Q05 2.34 0.22 1Q06 2.221 0.16 2Q06 2.1
Slide 89: Portfolio Overview - Indirect Automobile Loans / Leases
Loans / Leases Outstanding: $3.4 Billion (1) Net charge-offs 1Q09: 166 bp FY08: 121 bp 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... >740 FICOs and >750 FICOs in 1H08 Credit qu
Slide 90: Indirect Auto Lending
Loans Outstanding - $3.4 Billion (1) Huntington differentiates itself by: Consistency of strategy and commitment to service Commitment to service quality for the full dealer relationship Fully automated origination and booking system Robust data modeling capabilities Comfortable with current risk pr
Slide 91: Indirect Auto Loan Portfolio Performance
Indirect Auto Loan Portfolio Performance 1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 2Q07 Portfolio Performance Portfolio Performance 30+ days PD & accruing % 2.20% 2.09% 1.68% 1.43% 1.45% 1.94% 1.55% 1.27% Year-to-Date NCO % 1.56% 1.12% 0.98% 0.95% 0.97% 0.65% 0.53% 0.40% Origination Quality Origination Qua
Slide 92: Indirect Auto Loan & Lease Production
Indirect Auto Loan & Lease Production ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 2Q07 Loans Loans Production $ 399 $ 360 $ 501 $ 673 $ 679 $ 487 $ 474 $ 503 % new vehicles 31% 41% 41% 44% 44% 44% 47% 49% Avg. LTV (1) 93% 93% 96% 96% 93% 95% 98% 98% Avg. FICO (1) Avg. FICO (1) 756 751 751 752 752 745 7
Slide 93: Indirect Auto Loans - Bookings by FICO Score Range
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 >740 205.16 236.18 218.38 235.28 374.09 369.13 276.74 194.34 237.7 700-739 133.42 152.57 147.67 144.73 195.9 199.97 147.48 109.93 108.5 670-699 82.72 91.24 84.27 81.09 85 83.98 61.11 43.33 42.5 <670 26.07 22.84 23.51 25.95 23.97 19.64 15.37 12.56 10.3 Ind
Slide 94: Indirect Auto Loans - Portfolio Composition by Rescored FICO
Indirect Auto Loans - Portfolio Composition by Rescored FICO Accounts with updated FICO scores <600 have remained constant over time, and showed a slight decline with the November 2008 re-score results The bulk of the portfolio losses in a 12-month period come from the <600 re-score segment 94 6/07
Slide 95: Indirect Auto Lending - Credit Risk Management Strategies
95 Indirect 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 elig
Slide 96: Residential Real Estate Loans Average Balances
96 Home Equity Loans/Lines Residential Mortgages Other 1Q04 3.833 2.674 0.402 2Q04 4.145 2.986 0.397 3Q04 4.408 3.484 0.39 4Q04 4.585 3.695 0.383 1Q05 4.676 3.919 0.374 2Q05 4.75 4.08 0.377 3Q05 4.801 4.157 0.387 4Q05 4.781 4.17 0.393 1Q06 4.833 4.31 0.447 2Q06 5.029 4.63 0.448 3Q06 5.041 4.748 0.43
Slide 97: Residential Real Estate Trends
Residential Real Estate Trends (Average $MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Home equity loans / lines $7,577 $7,523 $7,453 $7,365 $7,274 Residential mortgage 4,611 4,737 4,812 5,178 5,351 Interest only 678 697 699 702 799 Alt-A 436 450 468 484 532 Total $12,188 $12,260 $12,265 $12,543 $12,625 Outstandings
Slide 98: Home Equity Loans / Lines
HBAN HBAN 1Q03 3194 2Q03 3313 3Q03 3448 4Q03 3640 1Q04 3833 2Q04 4145 3Q04 4408 4Q04 4585 1Q05 4676 2Q05 4750 3Q05 4801 4Q05 4781 1Q06 4833 2Q06 5029 3Q06 5041 4Q06 4973 1Q07 4913 2Q07 4973 3Q07 5083 2385 4Q07 7297 1Q08 7274 2Q08 7365 3Q08 7453 4Q08 7523 1Q09 7577 Home Equity Loans / Lines Home Equi
Slide 99: Home Equity Portfolio Overview
Loans / Lines Outsanding: $7.7 Billion (1) Net charge-offs 1Q09: 93 bp 2008: 91 bp 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
Slide 100: Home Equity Lending
Loans 4Q06 0.0031 1Q07 0.0033 2Q07 0.0034 3Q07 0.0032 4Q07 0.0033 1Q08 0.0036 2Q08 0.0039 3Q08 0.0037 4Q08 0.0033 1Q09 0.0049 Loans 4Q06 0.0047 1Q07 0.0049 2Q07 0.0043 3Q07 0.0058 4Q07 0.0067 1Q08 0.0084 2Q08 0.0094 3Q08 0.0085 4Q08 0.0102 1Q09 0.0093 Home Equity Lending NALs / Loans (5) NCOs / Aver
Slide 101: Home Equity Loans and Lines - Channel Trends
Home Equity Loans and Lines - Channel Trends Retail Broker 3/05 3781 1033 4/05 3754 1119 5/05 3770 1116 6/05 3803 1114 7/05 3814 1108 8/05 3820 1099 9/05 3825 1092 10/05 3821 1082 11/05 3816 1067 12/05 3824 1046 1/06 3828 1033 2/06 3831 1016 3/06 3828 994 4/06 4241 981 5/06 4245 962 6/06 4255 949 7/
Slide 102: Home Equity Loans and Lines - Updated FICO Distribution
MONTH >720 660-719 600-659 <600 1/07 0.5674 0.2576 0.0954 0.0797 2/07 0.5637 0.2548 0.0944 0.0871 3/07 0.5627 0.255 0.0944 0.0879 4/07 0.5632 0.2546 0.0944 0.0878 5/07 0.5699 0.2465 0.095 0.0887 6/07 0.5708 0.2459 0.0953 0.088 7/07 0.5721 0.2452 0.0952 0.0875 9/07 0.5705 0.2425 0.0944 0.0926 11/07 0
Slide 103: Home Equity Loans and Lines - Performance by Updated FICO
103 Home Equity Loans and Lines - Performance by Updated FICO 103 (1) Period end The rank ordering of risk by updated FICO is clear in the performance metrics Lower concentrations in the <600 segment will result in lower loss rates in the future. 1Q08 2Q08 3Q08 4Q08 1Q09 >720 0.0006 0.0007 0.0013 0.
Slide 104: Home Equity Loans and Lines - Vintage Performance
104 Home Equity Loans and Lines - Vintage Performance 104 (1) Period end <80% 80-89% 90-99% 1 1/07 0.3884 0.4542 0.1077 0.0497 2/07 0.3872 0.4547 0.1089 0.0492 3/07 0.3871 0.4547 0.1094 0.0488 4/07 0.3898 0.4522 0.1094 0.0486 5/07 0.3899 0.4508 0.1109 0.0483 6/07 0.3902 0.4516 0.1102 0.048 7/07 0.39
Slide 105: Home Equity Loans and Lines - CLTV Loss Rates
1Q08 2Q08 3Q08 4Q08 1Q09 <80% 0.003 0.0029 0.0031 0.0034 0.0038 80-90% 0.0086 0.0104 0.0114 0.0114 0.0123 90-99% 0.0214 0.0265 0.0245 0.0274 0.0289 >100% 0.0315 0.0348 0.0357 0.039 0.0381 Total 0.0091 0.0108 0.0113 0.0113 0.0118 Home Equity Loans and Lines - CLTV Loss Rates End-of-period 105
Slide 106: 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 107: Home Equity - Credit Risk Management Strategies
107 Home Equity Loans and Lines - Credit Risk Management Strategies Performance Drivers Lien Position - 40%, or $2.8 B, of the portfolio is secured by a 1st mortgage Payments - 70% of borrowers conistently make more than required payment Borrower quality - as measured at origination by FICO score -
Slide 108: Residential Mortgages Average Balances
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 HBAN 1819 1870 2075 2501 2674 2986 3484 3695 3919 4080 4157 4165 4306 4629 4748 4635 4496 4351 4344 5437 5351 5178 4812 4737 4611 1112 Residential Real Estate Loans Residentia
Slide 109: Residential Mortgage Portfolio Overview
Loans Outstanding: $4.8 Billion (1) Net charge-offs 1Q09: 55 bp 2008: 42 bp Focused on geographies within our Midwest footprint Traditional product mix... very limited nontraditional exposure as we never originated sub-prime, payment option ARMs, or negative amortization loans 77% current LTV for to
Slide 110: Residential Mortgage Lending - Excluding Franklin
Residential Mortgage Lending - Excluding Franklin ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Production Originations (2) $56 $82 $172 $344 $237 Alt-A % of originations (3) -- -- -- -- -- Avg. FICO (4) 730 741 734 736 732 Avg. LTV (4) 79% 76% 74% 76% 72% (1) 3/31/09 reported $4,769MM less $360 MM of Franklin (2)
Slide 111: Residential Adjustable Rate Mortgages
Residential Adjustable Rate Mortgages Loans Outstanding - $2.8 Billion (1) ARMs 2009 resets $673 MM 2010 resets $564 MM FICO distribution > 670 70% 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
Slide 112: Residential Alt-A Mortgages
Residential Alt-A Mortgages Loans Outstanding - $428 Million (1) 2008 Production none 1Q09 Production none 1Q09 Net charge-offs 2.51% Current LTV (1Q09 values) 103% 70% greater than 90% Updated FICO score (1Q09) 666 Portfolio Information The original strategy was centered around stated income and hi
Slide 113: Interest Only Mortgages
Interest Only Mortgages Loans Outstanding - $664 Million (1) 2008 Production $121 MM 1Q09 Production $6 MM 1Q09 Net charge-offs 0.06% Current LTV (1Q09 values) 78% Updated FICO score (1Q09) 720 Portfolio Information High FICO, standard LTV structure primarily sourced via Huntington's executive reloc
Slide 114: Residential Mortgage - Credit Risk Management Strategies
114 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 115: Other Consumer
Loans Outstanding - $0.7 Billion (1) 80% collateralized Autos, untitled vehicles, small boats, mobile homes and other miscellaneous Primarily for existing customers Performed within expectations over the past year though varies by collateral type Other Consumer 115 (1) 3/31/09
Slide 116: Credit Quality Review
Credit Quality Review (Huntington
Slide 117: Credit Risk Management
117 Credit Risk Management Objective Manage the Probability of Default Footprint Portfolio... markets we know and understand Client Selection... bias for high quality customers and relationship lending vs. third party originations Disciplined Underwriting... borrower ability to repay, collateral val
Slide 118: Credit Quality Trends Overview
Credit Quality Trends Overview 1Q09 (1) 1Q09 (1) 1Q09 (1) 4Q08 (1) 4Q08 (1) 4Q08 (1) 4Q08 (1) Rptd Non-FCMC Rptd Non-FCMC 3Q08 2Q08 1Q08 NAL ratio (2) 3.93 % 3.04 % 3.66 % 2.11 % 1.42 % 1.30 % 0.92 % NPA ratio (3) 4.46 3.38 3.97 2.43 1.64 1.52 1.26 Net charge-off ratio 3.34 2.12 5.41 1.36 0.82 0.64
Slide 119: Key Loan Portfolio Credit Quality Metrics
Key Loan Portfolio Credit Quality Metrics 119
Slide 120: Net Charge-offs
Net Charge-offs ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Franklin $128.3 $423.3 $ -- $ -- $ -- Non-Franklin C&I 82.3 50.1 29.6 12.4 10.7 Total C&I 210.6 473.4 29.6 12.4 10.7 Commercial real estate 82.8 38.4 11.0 15.1 4.3 Total commercial 293.4 511.8 40.6 27.5 15.0 Auto loans 15.0 14.9 9.8 8.5 8.0 Auto leases
Slide 121: Net Charge-off Ratios
Net Charge-off Ratios (1) 1Q09 4Q08 3Q08 2Q08 1Q08 Franklin nmv % nmv % -- % -- % -- % Non-Franklin C&I 2.55 1.58 0.95 0.40 0.35 Total C&I 6.22 13.78 0.87 0.36 0.32 Commercial real estate 3.27 1.50 0.45 0.63 0.18 Total commercial 4.96 8.54 0.69 0.47 0.27 Auto loans 1.56 1.53 1.02 0.94 0.97 Auto leas
Slide 122: Nonaccrual Loans and Nonperforming Assets
Nonaccrual Loans and Nonperforming Assets 122
Slide 123: Nonaccrual Loans by Sector
($MM) 3/31/09 12/31/08 $ # $ # Commercial Franklin $0.0 0 $650.2 1 >$5 330.8 37 242.3 24 $2-<$5 260.8 85 155.6 50 <$2 436.6 330.2 Subtotal $1,028.2 $1,378.3 Residential RE and Home Equity Franklin 366.1 0.0 Other 158.8 123.8 Subtotal 524.9 123.8 Total NALs $1,553.1 $1,502.1 Nonaccrual Loans (NAL) by
Slide 124: Nonperforming Asset Flow Analysis
Nonperforming Asset Flow Analysis ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Period End NPA beginning of period $1,636.6 $675.3 $624.7 $520.4 $ 472.9 New 622.5 509.3 175.3 256.3 141.1 Franklin - net impact (204.5) 650.2 -- -- -- Returns to accruing status (36.1) (13.8) (9.1) (5.8) (13.5) Loan and lease losses (
Slide 125: Nonperforming Assets & Accruing Restructured Loans
Non-Franklin-related Franklin-related 4Q07 472.902 1187.368 1Q08 580.229 1157.361 2Q08 711.887 1130.412 3Q08 781.839 1094.564 4Q08 1292.838 650.225 1Q09 1684.621 445.702 NPA & ARL Ratio (1) 1Q08 0.0422 2Q08 0.0448 3Q08 0.0455 4Q08 0.0471 1Q09 0.0536 Nonperforming Assets (NPA) & Accruing Restructured
Slide 126: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) 30+ Days 90+ Days With ex. GNMA FAS 140 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 With ex. GNMA FAS 140 1Q08 0.0285 0.0243 2Q08 0.0282 0.0237 3Q08 0.0312 0.0263 4Q08 0.0346 0.0289 1Q09 0.0373 0.0308 (1) Period end;
Slide 127: Indirect Auto Loans Accruing Delinquency and Net Charge-offs
90+ DPD 30+ DPD 1Q08 7.7229 50.5184 2Q08 8.8247 53.8421 3Q08 10.0539 65.7946 4Q08 13.01 81.3802 1Q09 10.521 63.674 Indirect Auto Loans Accruing Delinquency Net Charge-offs 127 1Q08 0.0097 2Q08 0.0094 3Q08 0.0102 4Q08 0.0153 1Q09 0.0156 0.22% 0.23% 0.26% 0.33% 0.36% 1.45% 1.43% 1.68% 2.09% 2.20% ($MM
Slide 128: Indirect Auto Loans - Loss Rate Trends
Indirect Auto Loans - Loss Rate Trends Dramatic improvement in the early stage loss performance for the late 2007 and early 2008 vintages Losses peak in the 18-24 month range, and as 2008-2009 vintages make up a greater portion of the portfolio and reach their peak loss months, portfolio losses shou
Slide 129: Home Equity Delinquency and Net Charge-offs
90+ DPD 30+ DPD 1Q08 26.5694 96.7818 2Q08 26.4636 87.5066 3Q08 23.2243 88.7857 4Q08 29.0388 121.7395 1Q09 35.717 114.494 Home Equity Loans and Lines Net Charge-offs 129 1Q08 0.0084 2Q08 0.0094 3Q08 0.0085 4Q08 0.0102 1Q09 0.0093 0.36% 0.36% 0.31% 0.38% 0.47% 1.33% 1.18% 1.18% 1.61% 1.49% ($MM) L-Q %
Slide 130: Residential Mortgage Delinquency and Net Charge-offs
90+ DPD 30+ DPD 1Q08 61.737 259.523 2Q08 62.006 249.152 3Q08 58.28 281.203 4Q08 71.553 273.475 1Q09 88.381 306.108 Residential Mortgage Loans Net Charge-offs 130 1Q08 0.0022 2Q08 0.0033 3Q08 0.0056 4Q08 0.0062 1Q09 0.0055 1.15% 1.06% 1.20% 1.50% 1.83% 4.84% 5.08% 5.79% 5.74% 6.33% ($MM) L-Q % Change
Slide 131: Commercial Loan Delinquencies
Commercial Loan Delinquencies (1) 30+ Days 90+ Days With 1Q08 0.0018 2Q08 0.0014 3Q08 0.0035 4Q08 0.003 1Q09 0 With 1Q08 0.016 2Q08 0.0106 3Q08 0.0145 4Q08 0.0166 1Q09 0.0095 (1) Period end; delinquent but accruing as a % of related outstandings at EOP 131
Slide 132: Allowances for Credit Losses
Allowances for Credit Losses (ACL) (1) ($MM) 1Q09 4Q08 3Q08 2Q08 1Q08 Allowance for loan Allowance for loan and lease losses (ALLL) $838.5 $900.2 $720.7 $679.4 $627.6 Allowance for unfunded loan Allowance for unfunded loan commitments and LOCs (AULC) 47.0 44.1 61.6 61.3 57.6 Total allowance Total al
Slide 133: Allowance for Credit Losses Methodology
Allowance for Credit Losses Methodology Allowance for loan and lease loses (ALLL) An estimate of loss based on characteristics of each commercial and consumer loan, lease, or loan commitment, and An estimate of loss based on a review of each impaired loan >$500,000 Generally developed to cover a def
Slide 134: Relative Performance - NCOs & ACL Coverage
Relative Performance - NCO's & ACL Coverage - 1Q09 134 Net Charge-off ratio (1) ACL / NCO (2) MTB 0.0083 PNC 0.0101 CMA 0.0126 ASBC 0.0142 ZION 0.0147 BBT 0.0158 RF 0.0164 HBAN x FCMC 0.0212 FITB 0.0237 KEY 0.0265 MI 0.0267 HBAN 0.0334 CNB 0.0372 FHN 0.0397 HBAN 0.65 HBAN x FCMC 1.04 KEY 1.14 FHN 1.
Slide 135: Relative Performance - ALLL
PNC Financial Services 145% KeyCorp 126 Regions Financial 113 Fifth Third 110 BB&T 108 M&T Bank 85 Comerica 83 First Horizon 83 Huntington (1) 71 Associated Ban-Corp 69 Marshall & Ilsley Corp. 65 Zions Bancorporation 58 Colonial 50 12 BHC Median X HBAN 84 First Horizon 4.57 % Fifth Third 3.71 Coloni
Slide 136: Relative Performance - NPAs & NCOs
Relative Performance - NPAs & NCOs (1) NPA Ratio (2) NCO Ratio (3) 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 HBAN 0.0123 0.0139 0.0133 0.012 0.0074 0.0074 0.007 0.0065 0.0041 0.0043 0.0034 0.0
Slide 137: 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 HBAN = (ALLL+AULC)/Loans 0.02 0.021 0.021 0.0208 0.0181 0.0178 0.0179 0.0175 0.0159
Slide 138: 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 HBAN = (ALLL+AULC)/NPL 1.67
Slide 139: Non-Franklin Credit Metric Reconciliations
Non-Franklin Credit Metric Reconciliations 139
Slide 140: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 140
Slide 141: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 141
Slide 142: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 142
Slide 143: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconcilation (1) (1) Annualized 143
Slide 144: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconcilation (1) (1) Annualized 144
Slide 145: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconcilation (1) (1) Annualized 145
Slide 146: Nonaccrual Loans, NPAs & Accruing Restructured Loans
146 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 147: Nonaccrual Loans, NPAs & Accruing Restructured Loans
147 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 148: Deposits and Other Funding
Deposits and Other Funding 148
Slide 149: Deposit Trends Linked Quarter
Deposit Trends 149 Linked Quarter
Slide 150: Deposit Trends Prior-year Quarter
Deposit Trends 150 Prior-year Quarter
Slide 151: Deposit Trends
Demand, Savings & Other Core CDs Non-core 1Q03 12.008 3.415 1.986 2Q03 12.623 3.245 2.028 3Q03 13.24 2.97 2.351 4Q03 13.052 2.84 2.853 1Q04 13.08 2.664 2.979 2Q04 13.83 2.669 2.805 3Q04 14.096 2.691 2.84 4Q04 14.454 2.733 3.124 1Q05 14.556 2.809 4.098 2Q05 14.258 3.067 4.584 3Q05 14.04 3.557 4.619 4
Slide 152: Core Deposits Trends
3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 HBAN 3276 3401 3314 3352 3406 3444 3436 3594 3509 3580 16191 16392 16575 26452 26481 26350 26659 26793 27207 HBAN 9680 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4
Slide 153: Total Core Deposits Trends
Total Core Deposits Trends 153
Slide 154: Other Funding - 3/31/09
Other Funding - 3/31/09 Non-core Deposits 0.417 S-T Borrowings & Other Liab. 0.165 FHLB Advances 0.071 Other L-T Debt 0.204 Subordinated Notes 0.142 $13.4 Billion Noncore Deposits $5.6 B / 42% S-T Borrowings & Other Liabilities $2.2 B / 17% FHLB Advances $1.0 B / 7% Other L-T Debt $2.7 B / 20% Subor
Slide 155: Funding Assessment
Funding Assessment (1) Holding Company Sufficient cash for operations over a twelve-month period without relying on the bank for dividends Next borrowing maturity not until 2013: $50 million Bank Level $780 million of unsecured borrowing maturities in 2009 $600 million medium-term bank notes settled
Slide 156: Capital
Capital (Huntington
Slide 157: Recent Developments - Capital Impacts
Recent Developments Series A Preferred Stock Conversion 4/2/09 - Settled last of 1Q09 Series A 8.50% Non-cumulative Perpetual Convertible Preferred stock conversions 4.7 million common shares issued Descretionary Equity Issuance Program (DEIP) 5/7/09 - Announced completetion of DEIP $120 million, or
Slide 158: Capital
Capital (1) 1Q09 4Q08 3Q08 2Q08 1Q08 Total risk-weighted assets ($B) Total risk-weighted assets ($B) $46.3 $47.0 $46.6 $46.6 $46.5 Tier 1 leverage Tier 1 leverage 9.67 % 9.82 % 7.99 % 7.88 % 6.83 % Tier 1 risk-based capital Tier 1 risk-based capital 11.16 10.72 8.80 8.82 7.56 Total risk-based capita
Slide 159: Capital Trends
LLR/NPL ratio 1Q08 2Q08 3Q08 4Q08 1Q09 Tang. Equity / Risk-Weighted Assets 0.0558 0.0659 0.066 0.0839 0.0894 Tang. Equity / Assets (TE Ratio) 0.0492 0.059 0.0599 0.0772 0.0812 Tang. Common Equity / Assets (TCE Ratio) 0.0492 0.048 0.0488 0.0404 0.0465 Tang. Common Equity / Risk-Weighted Assets 0.0558
Slide 160: Capital Trends
Capital Trends Shareholders’ Equity (average $8) $8.0 $75 $70 $65 $6.0 $55 $5.0 $45 $40 $35 $3.0 $25 $20 $15 st0 $05, $0.0 ya08 2008 (@ Huntington $7.23 Key Equity Ratios 18.0% 16.0% 140% 120% 10.0% 80% 40% —t-Total Risk-based Capital Tier | Risk-based Capital 2 Tang. Equity / Risk Weighted Assets E
Slide 161: Regulatory Capital - 3/31/09
Regulatory Capital - 3/31/09 161 Tier 1 Capital Total Capital CNB 0.0733 MTB 0.0876 ZION 0.0933 MI 0.0949 PNC 0.102 RF 0.1037 FITB 0.1093 CMA 0.1108 KEY 0.1116 HBAN 0.1116 HBAN (2) 0.1141 ASBC 0.1193 BBT 0.121 FHN 0.1498 CNB 0.1156 MTB 0.1274 MI 0.1319 ZION 0.1323 ASBC 0.1379 PNC 0.138 HBAN 0.1428 R
Slide 162: Tangible Common Equity Ratios - 3/31/09
Tangible Common Equity Ratios - 3/31/09 162 TCE / Tangible Assets TCE / Risk-weighted Assets (1) CNB 0.0321 PNC 0.033 FITB 0.0423 HBAN 0.0465 MTB 0.0486 HBAN (2) 0.0492 ZION 0.0526 RF 0.0541 BBT 0.057 KEY 0.0606 ASBC 0.061 MI 0.064 FHN 0.0707 CMA 0.0727 PNC 0.026 FITB 0.0464 MTB 0.0481 ZION 0.0511 H
Slide 163: Credit Ratings
Credit Ratings Senior Subordinated Com'l Paper / Notes Notes Short-term Outlook Huntington Bancshares Moody's 4/7/09 Baa2 Baa3 P-2 Negative S&P 5/4/09 BBB BBB- A-2 Credit Watch Negative Fitch 4/22/09 BBB+ BBB F2 Negative The Huntington National Bank Moody's 4/7/09 Baa1 Baa2 P-2 Negative S&P 5/4/09 B
Slide 164: Franchise
Franchise (Huntington
Slide 165: Huntington Bancshares Overview
Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $52 billion Employees (1) - 10,533 Franchise: Regional Banking 6 States / 11 Regions - Retail & Commercial Banking 599 Offices / 1,363 ATMs - Mortgage Banking 6 States + MD, NJ Auto Finance & Deale
Slide 166: The Huntington Franchise - 3/31/09
Focus on the Midwest (1) Offices 115 ATMs 239 Detroit 3% Grand Rapids 10% Offices 342 ATMs 741 Akron 8% Canton 25% Cincinnati 3% Cleveland 6% Columbus 27% Dayton 6% Toledo 24% Youngstown 21% Offices 51 ATMs 84 Indianapolis 7% Offices 13 ATMs 32 Offices 28 ATMs 131 Charleston 10% Excludes 3 PFG offic
Slide 167: A Strong Regional Presence
A Strong Regional Presence Source: SNL Financial, company presentations and filings FDIC deposit data as of June 30, 2008 Deposits - Top 12 MSAs MSA Rank BOs Deposits Share Columbus, OH 1 69 $8,843 27.2% Cleveland, OH 6 62 3,631 5.7 Detroit, MI 8 44 2,582 2.8 Toledo, OH 1 42 2,324 23.5 Pittsburgh, P
Slide 168: Strategy, Organization and History
Strategy, Organization and History 168
Slide 169: Organization
Organization Organization 169
Slide 170: Senior Leadership Team
Senior Leadership Team Experience-Yrs Position Appointed Banking HBAN Stephen Steinour Chairman, President and CEO 1Q09 29 new Dan Benhase SEVP-Private Financial Group Director 2Q06 26 9 Jim Dunlap SEVP-Regional & Commercial Banking Director 1Q06 30 30 Don Kimble SEVP-Chief Financial Officer 3Q04 22
Slide 171: 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 172: Commercial Banking Regions
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 172
Slide 173: Regional Banking Presidents
Regional Banking Presidents Experience - Yrs Region Appointed Banking HBAN Jim Dunlap* West Michigan 1Q06 30 30 Rebecca Smith East Michigan 1Q07 32 2 Sharon Speyer Northwest Ohio 1Q01 21 17 Jerry Kelsheimer Greater Cleveland 1Q05 21 13 Vincent Locher Pittsburgh 3Q02 23 21 Jim Kunk Central Ohio 1Q94
Slide 174: Retail and Business Banking Areas
Retail and Business Banking Areas Central Northwest West Northeast East Mary Navarro 174
Huntington Bancshares — Q1 2009 Earnings Presentation on 6ix