Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q1 2021 Earnings Presentation
84 slides from Huntington Bancshares's earnings presentation, May 1, 2021
Slide 1: 2021 Second Quarter Investor Presentation
2021 Second Quarter Investor Presentation May 1, 2021 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2021 Huntington Bancshares Incorporated.
Slide 2: Table of Contents
Table of Contents Franchise and Leadership 3 Balance Sheet 37 Economic Footprint 4 Earning Assets 38 Leadership Team 5 Loan Composition 39 Board of Directors 6 Commercial Loans 41 Environmental, Social, & Governance 10 Consumer Loans 45 Strategy 13 Investment Securities 55 Purpose Drives Performance
Slide 3: Franchise and Leadership
Franchise and Leadership (@) Huntington Welcome: exe
Slide 4: Huntington Overview
Huntington Overview We serve our customers through a banking network of over 800 retail branches as well as digital, telephone, and ATM banking capabilities. OUR GEOGRAPHIC FOOTPRINT RETAIL FOOTPRINT PRODUCTS: EXTENDED FOOTPRINT PRODUCTS: Consumer Asset Finance Business Banking Auto Commercial Corpo
Slide 5: Experienced, Diverse Executive Leadership Team
Experienced, Diverse Executive Leadership Team Stephen Steinour Donald Dennis Paul Heller Chairman, President, and CEO, Executive Vice President, Senior Executive Vice President, Huntington Bancshares Incorporated Chief Diversity, Equity, and Chief Technology and Operations and The Huntington Nation
Slide 6: Deeply Engaged, Diverse Board of Directors
Deeply Engaged, Diverse Board of Directors Stephen Steinour Lizabeth Ardisana Alanna Cotton Chairman, President, and CEO, CEO and Principal Owner Global Chief Marketing Officer Huntington Bancshares Incorporated ASG Renaissance, LLC Still Beverages, and The Huntington National Bank The Coca-Cola Com
Slide 7: Board Commitment to Strong Corporate Governance and Engagement
Board Commitment to Strong Corporate Governance and Engagement Meetings 2010 2011 2012 2013 2014(1) 2015 2016 2017 2018 2019 2020 HBI Board Meeting 12 9 13 16 12 15 15 16 17 12 25 HBI Audit Committee(2) 16 15 11 13 11 12 10 11 19 17 15 HBI Capital Planning Committee(3) 8 8 HBI Community Development
Slide 8: Board Skills, Knowledge, and Experience
Board Skills, Knowledge, and Experience Directors embody a well-rounded variety of skills, knowledge, and experience, as demonstrated in the chart below Experience/Background # of Directors Audit / Financial Reporting 9 Client / Consumer Marketing, Branding & Communication 5 Technology / Cybersecuri
Slide 9: Management / Shareholder Alignment
Management / Shareholder Alignment Driving reduced earnings volatility, more stable returns, higher capital generation, and stronger shareholder value creation Board and CEO Significant “Everyone Disciplined set the investment in Owns Risk” management “Tone at the Top” risk management culture of cre
Slide 10: Delivering on Our Purpose
Delivering on Our Purpose Our Commitment to Environmental, Social, & Governance (ESG) Our commitment to ESG, or Corporate Sustainability, is a reaffirmation of our long-held commitment to do the right thing for our shareholders, customers, colleagues, and communities. 2019 ESG Report Recent ESG Reco
Slide 11: Our ESG Journey
Our ESG Journey 2016 2018 2020 Issued our first Enhanced our ESG Finalized our ESG goals and ESG report disclosures while grounding formalized our ESG policy & our report in materiality integration into business planning 2017 2019 Conducted a materiality Established a formal ESG assessment to determ
Slide 12: ESG Highlights
ESG Highlights Our Approach Our Priorities Our Impact • Our colleague-first • Financial performance #1 originator of SBA 7(a) loans investment drives our • performance Corporate governance and transparency 93% to goal in year 3 of 5-year $16 billion community • We’re for People: Making a • Enterpris
Slide 13: Strategy
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Slide 14: Building the Leading People-First, Digitally Powered Bank
Building the Leading People-First, Digitally Powered Bank Creating a sustainable competitive advantage with focused investment in customer experience, product differentiation, and key growth initiatives We are a Purpose-driven company Our Purpose is to make people’s lives better, help businesses t
Slide 15: Purpose Drives Performance
Purpose Drives Performance Huntington’s approach to shareholder value creation The best way to achieve our long-term financial goals and generate sustainable, through-the-cycle returns is to fulfill our purpose to make people’s lives better, help businesses thrive, and strengthen the communities we
Slide 16: Huntington's Digital Evolution
Huntington’s Digital Evolution Digital Differentiation Building our Core and Transformation Owning our online, mobile, and alerts Driving engagement and profitability platforms, leveraging agile through digital tools, AI, segmentation, development, and partnering to and mobility further enhance cust
Slide 17: Differentiating with Digital & Product
Differentiating with Digital & Product 100+ digital projects launched over 2 years, driving value Customers that are engaged with The Hub tools demonstrate higher levels of satisfaction, lower levels of attrition, and higher profitability Differentiated Digital Services 2 New Products Money Personal
Slide 18: Digital Transformation
Digital Transformation Tailored Customer Mobility Experiences Customer centric experiences designed to support the Invest in mobile as the platform of choice for our unique needs of our Consumer, Business Banking, customers while leveraging new technology and AI to Private Bank, and Commercial custo
Slide 19: Industry-leading Mobile and Online Customer Satisfaction
Industry-leading Mobile and Online Customer Satisfaction Honored for the second consecutive year for consumer mobile and digital banking customer satisfaction August 1, 2019 Huntington Online Banking and Mobile App Rank Highest in Two J.D. Power 2019 Banking Satisfaction Studies Awards reflect focus
Slide 20: COVID Has Not Changed the Importance of Branches, But It Has Changed the Branch Experience
COVID Has Not Changed the Importance of Branches, But It Has Changed the Branch Experience Branch Toolset Digital Capabilities Built on the premise of the Built to drive Product customer physically being Selection, self service, present in branch and satisfaction We leverage digital technology to op
Slide 21: Delivering a Multi-Channel Customer Experience
Delivering a Multi-Channel Customer Experience Digital and mobile adoption accelerating without diminishing branch importance Physical Retail Full-Service Branch Distribution Network 1,091 Branches represent a vital 956 component in delivering a multi- 944 channel experience; branch usage 856 tren
Slide 22: TCF Integration Update
TCF Integration Update Dec. 13, 2020 Feb. 12, 2021 Apr. 5, 2021 Late 2Q21 Announced Completed joint Submitted Expected legal acquisition of proxy Capital Plan close of TCF Financial transaction Actions Taken Next Steps Jan. 11, 2021 Mar. 25, 2021 May 2021 Late 3Q21 Filed applications Received Antici
Slide 23: Financial Update
Financial Update (@) Huntington Welcome: exe
Slide 24: 2021 First Quarter Financial Highlights
2021 First Quarter Financial Highlights Revenue growth of 19% year-over-year supporting strategic investment Revenue (FTE) EPS TBVPS $1.4 billion $0.48 $8.64 19% Y/Y $0.45 per share 4% Y/Y Efficiency Ratio ROA ROTCE 57.0% 1.76% 23.7% 1.6 percentage pts Y/Y 159 basis points Y/Y 21.9 percentage pts Y/
Slide 25: Pretax, Pre-Provision Earnings
Pretax, Pre-Provision Earnings Continued momentum in PTPP growth illustrates strong underlying earnings power and economic recovery taking hold Year-Over-Year Change ($ in millions) 1Q21 1Q20 $ % Net interest income (FTE) $978 $796 $182 23% Noninterest income $395 $361 $34 9% Total revenue $1,373 $1
Slide 26: Positioned for Strong Relative Performance Through-the-Cycle
Positioned for Strong Relative Performance Through-the-Cycle Strengthened Pretax Pre-Provision Net Revenue (1) Well-Diversified Balance Sheet $ billions 2.3 2.0 2.0 1.8 1.9 1Q21 1Q21 Avg Loans 47% 47% Avg Core 53% Deposits 53% $83 B $96 B (2) 2017 2018 2019 2020 1Q21 2.24% 2.23% 2.28% 2.30% 2.59% Co
Slide 27: Strategic Portfolio Mix
Strategic Portfolio Mix Thoughtful diversification is a vital component of our credit risk management Consumer Bank Commercial and Business Bank Period End Period End As of 3/31/21: As of 3/31/21: Continued steady consumer loan Strengthening commercial loan production, particularly in home activ
Slide 28: Paycheck Protection Program (PPP) Update
Paycheck Protection Program (PPP) Update $7.00 Average PPP Loans PPP Loans as of 3/31/2021 $6.00 $6.1 $6.2 Loans $5.00 $5.8 Original program: $6.6 billion of loans approved $4.00 $4.1 ➢ 38,500 total loans approved $3.00 Current program: $1.8 billion of loans approved with expectation of $2.00 ap
Slide 29: Income Statement
Income Statement (@) Huntington Welcome: exe
Slide 30: Net Interest Income
Net Interest Income Year-over-year 12% increase in average earning assets and 34 basis points of net interest margin expansion drive net interest income growth $ in millions Net Interest Income (FTE) $1,000.00 +23% 3.80% $950.00 $978 3.70% 3.60% NIM change LQ 4Q20: 2.94% 3.48% $900.00 Hedging / deri
Slide 31: Interest Rate Caps
Interest Rate Caps Capital protection strategy Objective Interest Rate Caps The caps strategy was designed to protect capital against rising interest rates 3.00% over the intermediate to long term $5,000 Initial Action 0.98% $3,000 Purchased $5 billion (long position) of interest rate caps in 4Q
Slide 32: Net Interest Margin (FTE)
Net Interest Margin (FTE) NIM up 34 basis points year-over-year reflecting the benefit of interest rate caps mark-to-market and PPP loans Net Interest Margin Trends Components of Cost of Interest-Bearing Liabilities 3.88% 2.70% 2.58% 3.48% 3.35% 3.22% 3.13% 1.46% 1.87% 1.72% 3.14% 3.11% 2.94% 2.96%
Slide 33: Balance Sheet Management Strategy
Balance Sheet Management Strategy Loan by Rate Index(1) Loan by Rate Index(1) Hybrid ARMs Hybrid ARMs 9% Variable 9% Variable (>1-month) (>1-month) 4% 4% Variable Fixed Fixed (1-month) 49% Variable 49% Unhedged (1-month) Impact of Hedging 20% 38% Variable (1-month) Hedged 18% An integral part of o
Slide 34: Noninterest Income
Noninterest Income Continued strength in mortgage banking income drives year-over-year growth in noninterest income Change in Quarterly Noninterest Income Year-over-Year Total Noninterest Income Mtg banking: +$42 72% +9% Cards & payment: +$7 12% $409 $395 $361 Trust & inv mgmt: +$5 11% Insurance: +$
Slide 35: Mortgage Banking Noninterest Income Summary
Mortgage Banking Noninterest Income Summary $145 Mortgage Banking Income (MBI) Salable Production Mix $122 $125 $2 $120 $100 $105 $96 $90 $5 55% 54% 56% $85 $96 $95 $95 65% 68% $65 $58 $4 $45 $54 4.67% $25 3.93% 3.85% 3.55% 45% 46% 44% 3.13% 35% $5 32% $(5) $(15) 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3
Slide 36: Noninterest Expense
Noninterest Expense Continued investment in talent and technology drive expense growth Change in Quarterly Noninterest Expense Year-over-Year Total Expense +22% Personnel costs: +$73 18% $793 Outside data processing: +$30 35% $756 Other expense: +$22 43% $652 Professional services: +$6 55% Equipment
Slide 37: Balance Sheet
Balance Sheet (@) Huntington Welcome: exe
Slide 38: Average Earning Assets
Average Earning Assets Elevated deposits at the Federal Reserve Bank and PPP loans drive year-over- year earning asset growth Average Quarterly Growth Year-over-Year Average Growth Linked Quarter Other Earning Assets: +$5.9 350% Total Securities: +$2.1 9% C&I: +$3.5 11% Other Earning Assets: +$0.6 9
Slide 39: Average Loan Composition: $80.3 Billion
Average Loan Composition: $80.3 Billion 1Q21 average balances Average Balance by Type Average Balance by Segment 1% 8% 5% 43% 34% 15% 25% 11% 9% 16% 33% C&I $34.4B Commercial Real Estate $7.2B Consumer and Business Banking: $27.1B Auto $12.7B Commercial Banking: $26.7B Home Equity $8.8B Vehicle Fina
Slide 40: Consumer and Commercial Asset Trends
Consumer and Commercial Asset Trends 1Q21 vs 1Q21 vs Average ($ in billions) 1Q21 4Q20(1) 1Q20 Commercial Commercial and industrial loans $ 34.4 (6) % 11) % Commercial real estate: Construction loans 1.1 (12) (10) Commercial loans 6.1 2) 10) Total commercial loans 41.5 (5) 11) Commercial bonds(2) 3.
Slide 41: Total Commercial Loans – Granularity
Total Commercial Loans – Granularity End of period outstandings of $41.6 billion # of Loans by Size Loans by Dollar Size 9% 16% 35% 64,713 97% 1,714 27% 13% 3% < $5 MM $5+ MM < $5 MM: $14.7B $5 MM - < $10 MM 762 $5 MM - < $10 MM: $5.3B $10 MM - < $25 MM 697 $10 MM - <$25 MM: $11.0B $25 MM - < $50 MM
Slide 42: Commercial and Industrial: $34.5 Billion
Commercial and Industrial: $34.5 Billion Diversified by sector and geographically within our Midwest footprint; asset finance and specialty lending in extended footprint Strategic focus on middle market companies with $20 - $500 million in sales and Business Banking customers with <$20 million i
Slide 43: C&I – Auto Industry
C&I – Auto Industry End of period balances Outstandings ($ in millions) 1Q21 4Q20 3Q20 2Q20 1Q20 Suppliers(1) Domestic $ 922 $ 923 $ 910 $ 977 $ 883 Foreign 0 0 0 0 0 Total suppliers 922 923 910 977 883 Dealers Floorplan-domestic 1,377 1,725 1,593 1,562 2,309 Floorplan-foreign 862 944 810 883 1,207
Slide 44: Commercial Real Estate: $7.2 Billion
Commercial Real Estate: $7.2 Billion Long-term, meaningful relationships with opportunities for additional cross-sell o Primarily Midwest footprint projects generating adequate return on capital o Proven CRE participants… 28+ years average CRE experience o >80% of the loans have personal guarantee
Slide 45: Huntington Auto Finance
Huntington Auto Finance Significant presence in our markets and in our industry 11 strategically located regional offices servicing our dealer partners in 23 states: Ohio New Hampshire Indiana Tennessee Michigan Minnesota West Virginia New Jersey Pennsylvania Connecticut Kentucky Iowa Illinois North
Slide 46: Automobile: $12.6 Billion
Automobile: $12.6 Billion Extensive relationships with high quality dealers o Huntington consistently in the market for nearly 70 years o Dominant market position in the Midwest with ~4,200 dealers o Floorplan and dealership real estate lending, core deposit relationship, full Treasury Management,
Slide 47: Auto Loans – Origination Trends
Auto Loans – Origination Trends Loan originations from 2014 through 1Q21 demonstrate strong characteristics and continued improvements from pre-2010 Credit scoring model most recently updated in January 2017 2016-2019 net charge-offs impacted by acquisition of FirstMerit, including purchase acco
Slide 48: Home Equity: $8.7 Billion
Home Equity: $8.7 Billion Focused on geographies within our Midwest footprint with relationship customers Focused on high quality borrowers… portfolio as of 1Q21: o Average weighted FICO scores of 750+ o Average weighted LTVs of <85% for junior liens and <75% for 1st-liens o Approximately 61% ar
Slide 49: Home Equity – Origination Trends
Home Equity – Origination Trends Consistent origination strategy since 2010 HPI Index is at highest level since pre-2007 – consistent with general assessment of the overall market Focused on high quality borrowers… 1Q21 originations: o Average weighted FICO scores of 750+ o Average weighted LT
Slide 50: Residential Mortgages: $12.1 Billion
Residential Mortgages: $12.1 Billion Traditional product mix focused on geographies within our Midwest footprint Early identification of at-risk borrowers. “Home Savers” program has a 75% success rate Credit Quality Review 1Q21 4Q20 3Q20 2Q20 1Q20 Period end balance ($ in billions) $12.1 $12.1 $
Slide 51: Residential Mortgages – Origination Trends
Residential Mortgages – Origination Trends Consistent origination strategy since 2010 HPI Index is at highest level since pre-2007 – consistent with general assessment of the overall market Average 1Q21 portfolio origination: purchased / refinance mix of 30% / 70% ($ in billions) 1Q21 2020 201
Slide 52: Recreational Vehicle & Marine
Recreational Vehicle & Marine Expansion of legacy FirstMerit product leveraging additional industry and regional credit and relationship manager expertise and Huntington Auto Finance’s existing infrastructure Experienced team with 20+ years average industry experience Centrally underwritten wi
Slide 53: RV and Marine: $4.2 Billion
RV and Marine: $4.2 Billion Indirect origination via established dealers in 34 states o Entered business in 2016 via FirstMerit acquisition; 2017-2018 expansion into new states Centrally underwritten with focus on super prime borrowers Underwriting aligns with Huntington’s origination standard
Slide 54: RV and Marine – Origination Trends
RV and Marine – Origination Trends Tightened underwriting standards post-FirstMerit acquisition along with geographic expansion, primarily into the Southeast and the West Net charge-offs impacted by acquisition of FirstMerit, including purchase accounting treatment of acquired portfolio A ($ in
Slide 55: Securities Mix and Yield
Securities Mix and Yield(1) Securities Portfolio Mix Securities Portfolio Yield $30 ($ in billions) 3.25% Held-to-maturity Available-for-sale 3.01% 2.94% 3.00% 2.87% $25 2.79% 2.75% 2.75% $20 2.52% 2.54% 2.51% 2.50% 2.50% 2.50% 2.39% 17.5 13.9 14.4 14.8 2.28% 13.4 14.0 13.8 13.9 13.5 2.39% $15 2.25%
Slide 56: AFS and HTM Securities Overview
AFS and HTM Securities Overview(1) March 31, 2021 December 31, 2020 March 31, 2020 ($mm) % of Remaining % of Remaining % of Remaining AFS Portfolio Carry Value Portfolio Life to Maturity Yield(3) Carry Value Portfolio Life to Maturity Yield(3) Carry Value Portfolio Life to Maturity Yield(3) U.S. Tre
Slide 57: Average Non-Equity Funding
Average Non-Equity Funding Demand deposits drive robust year-over-year growth in core deposits Average Quarterly Growth Year-over-Year Average Growth Linked Quarter DDA-Nonint. Bearing: +$9.0 45% DDA-Int. Bearing: +$1.7 7% DDA-Int. Bearing: +$5.6 26% DDA-Nonint. Bearing: +$1.0 3% Savings / Other: +$
Slide 58: Average Deposit Composition: $99.3 Billion
Average Deposit Composition: $99.3 Billion 1Q21 average balances Average Balance by Type Average Balance by Segment 1% 0% 3% 4% 1% 7% 12% 29% 25% 26% 63% 27% Demand - Noninterest Bearing $29.1B Consumer and Business Banking: $62.3B Demand - Interest Bearing $26.8B Commercial Banking: $25.1B Money Ma
Slide 59: Total Core Deposit Trends
Total Core Deposit Trends 1Q21 vs 1Q21 vs Average ($ in billions) 1Q21 4Q20(1) 1Q20 Commercial Demand deposits – noninterest bearing $ 22.0 6) % 47) % Demand deposits – interest bearing 15.2 24) 22) Total commercial DDA 37.2 13) 36) Other core deposits(2) 7.9 4) 1) Total commercial core deposits 45.
Slide 60: Stable, Diversified Sources of Wholesale Funds
Stable, Diversified Sources of Wholesale Funds Historical issuance and current ratings Wholesale Funding Issuances and Maturities ($ in billions) 2.5 2.0 2.0 2.0 1.7 1.6 1.3 1.1 1.0 1.1 0.7 0.8 0.5 0.6 0.5 0.5 2016 2017 2018 2019 2020 YTD 3/31/21 Preferred Equity Issued Senior Debt Matured Senior De
Slide 61: Stable, Diversified Sources of Wholesale Funds
Stable, Diversified Sources of Wholesale Funds Smooth runoff profile and optimization of funding costs 0.9 HoldCo Sr. Quarterly Maturities Through 2025 0.8 HoldCo Sub 0.7 Bank Sr. 0.6 $ in billions 0.5 0.4 0.3 0.2 0.1 0.0 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 4Q24 2Q25 4Q25 Objectives Annual Maturities
Slide 62: Capital
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Slide 63: Capital and Liquidity
Capital and Liquidity Managing capital and liquidity consistent with our aggregate moderate-to-low risk appetite $0.95 EOP Loan to Deposit Ratio $2.10 EOP Modified Liquidity Coverage Ratio (1) $2.00 $0.90 188% 190% 90% $1.90 183% $0.85 $1.80 86% 85% 170% $1.70 $0.80 82% $1.60 $0.75 79% 147% $1.50 $0
Slide 64: Change in Common Shares Outstanding
Change in Common Shares Outstanding There were no shares repurchased in 1Q21 Share count in millions 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 Beginning shares outstanding 1,017 1,017 1,017 1,014 1,020 1,033 1,038 1,046 Employee equity compensation 1 0 0 3 1 0 0 3 Share repurchases 0 0 0 0 (7) (13)
Slide 65: Credit Quality
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Slide 66: Strategic Credit Risk Management Actions Since 2009
Strategic Credit Risk Management Actions Since 2009 Positioned for top quartile through-the-cycle performance • Established clear credit risk appetite and aligned credit strategy and policy • Centralized credit and risk management (versus delegation to each region) 2009 • Established credit concentr
Slide 67: Allowance for Credit Losses (ACL)
Allowance for Credit Losses (ACL) Improving economic outlook drives reserve release $1,878 $1,866 $1,821 Multiple scenarios utilized while using February 2.50% of $1,741 2.45% of loans ex. 2.46% of baseline as foundation loans ex. PPP loans ex. PPP PPP 2.33% of loans ex. Economic outlook and vac
Slide 68: Asset Quality and Reserve Trends
Asset Quality and Reserve Trends Net charge-off ratio significantly improved and other asset quality metrics stable Net Charge-off Ratio ACL and ALLL Ratios ACL Ratio 0.62% ALLL Ratio 0.54% 0.56% 0.55% 2.27% 2.31% 2.29% 2.17% 2.05% 0.32% 2.21% 2.22% 2.12% 2.12% 1.93% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q
Slide 69: Credit Quality Trends Overview
Credit Quality Trends Overview 1Q21 4Q20 3Q20 2Q20 1Q20 Net charge-off ratio 0.32% 0.55% 0.56% 0.54% 0.62% 90+ days PD and accruing 0.19 0.21 0.22 0.24 0.21 NAL ratio(1) 0.64 0.65 0.70 0.81 0.72 NPA ratio(2) 0.68 0.69 0.74 0.89 0.75 Criticized asset ratio(3) 3.97 3.91 4.35 4.95 3.59 ALLL ratio 2.12
Slide 70: Consumer Loan Delinquencies
Consumer Loan Delinquencies(1) 30+ Days 90+ Days 1.36% 1.15% 1.18% 1.09% 1.06% 2.28% 2.29% 2.18% 2.10% 1.88% 1.22% 1.26% 1.11% 0.48% 1.03% 0.41% 0.42% 0.41% 0.88% 0.90% 0.93% 0.38% 0.69% 0.54% 0.53% 0.80% 0.16% 0.68% 0.13% 0.12% 0.12% 0.11% 0.51% 0.47% 0.47% 0.06% 0.06% 0.07% 0.07% 0.04% 1Q20 2Q20 3
Slide 71: Total Commercial Loan Delinquencies
Total Commercial Loan Delinquencies 30+ Days(1) 90+ Days(2) 0.30% 0.19% 0.15% 0.12% 0.15% 0.03% 0.03% 0.02% 0.02% 0.02% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 See notes on slide 84 2021 Second Quarter Investor Presentation 71
Slide 72: Net Charge-Offs
Net Charge-Offs Total Commercial Loans Total Consumer Loans ($ in millions) NCOs ($ in millions) NCOs Annualized % Annualized % 0.89% 0.85% 0.86% 0.75% $89 $90 $83 $80 0.47% 0.35% 0.30% 0.24% 0.22% $49 0.16% $34 $27 $24 $22 $15 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2021 Second Quarter In
Slide 73: Nonperforming Asset Flow Analysis
Nonperforming Asset Flow Analysis End of Period ($ in millions) 1Q21 4Q20 3Q20 2Q20 1Q20 NPA beginning-of-period $563 $602 $713 $586 $498 Additions / increases 129 248 190 279 274 Return to accruing status (33) (108) (47) (25) (18) Loan and lease losses (52) (73) (102) (61) (91) Payments (55) (82) (
Slide 74: Criticized Commercial Loan Analysis
Criticized Commercial Loan Analysis End of Period ($ in millions) 1Q21 4Q20 3Q20 2Q20 1Q20 Criticized beginning-of-period $2,830 $3,173 $3,601 $2,473 $2,394 Additions / increases 339 473 355 1,411 510 Advances 214 86 120 329 187 Upgrades to “Pass” (148) (395) (407) (111) (100) Paydowns (330) (577) (
Slide 75: Appendix
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Slide 76: Disclaimer
Disclaimer CAUTION REGARDING FORWARD-LOOKING STATEMENTS This communication may contain certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectation
Slide 77: Basis of Presentation
Basis of Presentation Use of Non-GAAP Financial Measures This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, th
Slide 78: Basis of Presentation
Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Significant Items From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may
Slide 79: Reconciliation
Reconciliation Pretax Pre-Provision Net Revenue (PPNR) ($ in millions) 1Q21 2020 2019 2018 2017 Net interest income – FTE $978 $3,224 $3,239 $3,219 $3,052 Noninterest income 395 1,591 1,454 1,321 1,307 Total revenue 1,373 4,836 4,693 4,540 4,359 Less: Significant Items 0 0 0 0 2 Less: gain / (loss)
Slide 80: Reconciliation
Reconciliation Tangible common equity, ROTCE, and ACL ratio ex. PPP loans ($ in millions) 1Q21 4Q20 1Q20 Average common shareholders’ equity $10,858 $10,749 $10,433 Less: intangible assets and goodwill 2,176 2,185 2,217 Add: net tax effect of intangible assets 39 41 48 Average tangible common shareh
Slide 81: Reconciliation
Reconciliation 1Q21 Significant Items impacting financial performance comparisons Adjusted Noninterest Expense Noninterest Impact of Adjusted Noninterest ($ in millions) Expense (GAAP) Significant Items Expense (Non-GAAP) Personnel costs $468 $0 $468 Outside data processing and other services 115 8
Slide 82: Notes
Notes Slide 4: (1) Includes Regional Banking and The Huntington Private Client Group offices Slide 7: (1) Total does not include two 2020 Strategy Plan review sessions with the full Board (2) Total number of meetings for each of the Audit Committee and the Risk Oversight Committee include joint meet
Slide 83: Notes
Notes Slide 40: (1) Linked-quarter percent changes annualized (2) Includes commercial bonds booked as investment securities under GAAP Slide 42: (1) All amounts represent accruing purchased impaired loans; under the applicable accounting guidance (ASC 310-30), the loans were recorded at fair value u
Slide 84: Notes
Notes Slide 55: (1) Average balances; Trading Account and Other securities excluded Slide 56: (1) End of period (2) Tax-equivalent yield on municipal securities calculated as of March 31, 2021 using 21% corporate tax rate (3) Weighted average yields were calculated using carry value Slide 59: (1) Li
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