Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q2 2003 Earnings Presentation
69 slides from Huntington Bancshares's earnings presentation, Jul 22, 2003
Slide 1: 2003 Second Quarter Earnings Review
2003 Second Quarter Earnings Review July 17, 2003
Slide 2: Basis of Presentation
Basis of Presentation All prior period data reflect the restatement announced July 17, 2003. 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 opera
Slide 3: Agenda
Agenda Earnings restatement / actions Today's dividend announcement Second quarter performance highlights Second quarter financial review FIN 46 implementation 2003 Outlook
Slide 4: Earnings Restatement / Actions
Earnings Restatement / Actions Voluntary action related to SEC formal investigation Adjusts previously reported earnings: After tax 2003 first quarter $ 2 MM 2000-2002 (5) 1999 & prior (27) Total $ (30) MM Cumulative impact represents 1% of 3/31/03 equity before restatement Corrects certain timing e
Slide 5: Earnings Restatement / Actions
Earnings Restatement / Actions Prospective deferral of all loan and lease origination fees and costs effective 7/1/03 Will file an amended... 2002 Annual Report on Form 10-K/A 2003 First Quarter Form 10-Q/A
Slide 6: Dividend Announcement
al Dividend Announcement
Slide 7: Dividend Announcement
Dividend Announcement Increased quarterly dividend 9.4% to $0.175 per share Payable date: October 1, 2003 Record date: September 19, 2003 Increasing dividend payout range target to 40%-45%
Slide 8: Dividend Policy Consideration
Dividend Policy Consideration Positive progress in improving financial performance and prospects Strong capital position Improved internal capital generation to 9%+
Slide 9: Second Quarter Performance Highlights
Second Quarter Performance Highlights
Slide 10: 2003 Second Quarter Performance Highlights
2003 Second Quarter Performance Highlights 2Q03 1Q03 Net income $97.4 MM $90.6 MM Earnings per share $0.42 $0.39 Loan and lease growth-linked quarter 2 % 4 % Loan and lease growth-linked quarter annualized 7 % 16 % Core deposit growth excld. retail CD's-linked quarter 5 % 3 % Core deposit growth exc
Slide 11: Financial Review
al Financial Review
Slide 12: Performance Highlights
2Q03 1Q03 4Q02 3Q02 2Q02 (1) EPS $0.42 $0.39 $0.30 $0.38 $0.29 ROA 1.39% 1.34% 1.04% 1.40% 1.17% ROE 17.5% 16.3% 12.5% 15.7% 12.5% Net interest margin 3.69% 3.84% 3.86% 4.00% 3.94% Efficiency ratio 63.1% 67.2% 70.3% 65.3% 69.1% Loan and lease growth (2) 7% 16% 22% 17% (19)% Core deposit growth excld
Slide 13: 2003 Second Quarter Earnings Change
2003 Second Quarter Earnings Change B (W) vs. 1Q03 2Q02 ($MM) 2Q03 1Q03 2Q02 Amt. Amt. Pct. Net interest income $215.6 $213.7 $192.0 $ 1.8 $ 23.6 12.3 % Provision (49.2) (36.8) (49.9) (12.3) 0.7 1.4 Non-interest income 274.2 268.0 287.7 6.2 (13.5) (4.7) Non-interest expense (306.0) (324.3) (331.7) 1
Slide 14: Performance Trends: Net Interest Income & Margin
Performance Trends Net Interest Income & Margin (FTE) (1) Net Interest Margin Drivers Loan mix Higher rate mortgage loan prepayments Lower rate mortgage originations Lower rate / higher quality auto loan originations Rapid growth of lower rate direct financing leases Growth in lower rate securities
Slide 15: Managing Interest Rate Risk
Managing Interest Rate Risk (1) Net Interest Income at Risk Forward Curve +/- 2% Gradual Change in Rates Economic Value at Risk Parallel Yield Curve Shift +/- 2% Instantaneous Change in Rates 2% Rate Rise 2% Rate Fall 2Q01 -0.021 0.018 3Q01 -0.017 0.015 4Q01 -0.012 0.008 1Q02 -0.016 0.014 2Q02 -0.01
Slide 16: Loan, Lease and Operating Lease Asset Growth
Loan, Lease and Operating Lease Asset Growth Average ($B) Annualized Growth (1) 2Q03 vs. 1Q03 vs. 2Q03 vs. 2Q03 1Q03 4Q02 2Q02 Commercial $ 5.6 -- % 5 % -- % Commercial real estate 3.9 12 9 11 Total commercial/CRE 9.5 5 6 4 Auto loans 2.9 (32) 19 10 Auto direct financing leases (2) 1.3 nm nm nm Home
Slide 17: Auto Loan Sales Strategy
Auto Loan Sales Strategy Lower balance sheet exposure to auto business Actions 2Q03 1Q03 Sold $569 million $558 million Financial impact Gain on sale $11.6 million $8.3 million Decrease net interest margin 3 bp 7 bp Credit quality impact Increase auto net charge-offs 4 bp 8 bp Increase total net cha
Slide 18: Operating Lease Trends
Operating Lease Trends (1) Operating Leases 1Q02 3.041 2Q02 2.906 3Q02 2.657 4Q02 2.382 1Q03 2.126 2Q03 1.848 6/30/2003 1.7 ($B) (1) After April 2002 all new auto leases accounted for as direct financing leases Average balances EOP balance
Slide 19: Core Deposit Trends
Core Deposit Trends Average ($B) Annualized Growth (1) 2Q03 vs. 1Q03 vs. 2Q03 vs. 2Q03 1Q03 4Q02 2Q02 Demand $ 3.0 12 % -- % 11 % Interest bearing demand 6.1 36 22 24 Savings 2.8 5 4 -- Other time 0.7 (5) (11) (6) Core deposits excl. CD's 12.6 20 10 13 Retail CD's 2.8 (22) (41) (20) Total $15.4 12 %
Slide 20: PFG - Retail Investment Sales Success
PFG - Retail Investment Sales Success (1) 2Q03 1Q03 2002 2002 Industry Huntington Huntington Huntington Average Top Quartile Sales penetration (2) 6.1% 6.1% 6.0% 3.4% 4.4% Revenue penetration (3) $2,869 $3,168 $3,214 $1,722 $2,266 Profit penetration (4) $1,157 $1,245 $1,110 $ 549 $ 702 2Q03 1Q03 200
Slide 21: Non-interest Income
Non-interest Income ($MM) Better or (Worse) vs. 2Q03 1Q03 1Q03(1) 2Q02 Operating lease income $124.2 $ (9.5) (7) % (26)% Deposit service charges 40.9 1.0 3 15 Trust services 15.6 0.7 4 (4) Brokerage / insurance 14.2 (1.3) (8) (16) Other service charges 11.4 1.0 10 8 Bank Owned Life Ins. 11.0 (0.1) (
Slide 22: Mortgage Banking
Mortgage Banking 2Q03 1Q03 4Q02 3Q02 2Q02 Investor servicing portfolio $5.1 B $4.4 B $3.8 B $3.2 B $2.7 B Originations $1.7 B $1.3 B $1.5 B $1.0 B $0.7 B Mortgage servicing rights $36.7 MM $35.4 MM $29.3 MM $27.9 MM $26.9 MM MSR impairment $6.4 MM --- MM $6.2 MM $6.6 MM -- MM MSR % of investor servi
Slide 23: Non-interest Expense
Non-interest Expense ($MM) Better or (Worse) vs. 2Q03 1Q03 1Q03(1) 2Q02 Personnel costs $114.0 $ 7.7 6 % (7) % Operating lease expense 102.9 8.6 8 22 Equipment 16.3 0.1 -- 2 Outside services 16.1 0.5 3 3 Net occupancy 15.6 1.2 7 (6) Professional services 9.9 (0.6) (6) (26) Marketing 8.5 (1.8) (28) (
Slide 24: Efficiency Ratio
Amount 1Q02 0.6087 2Q02 0.691 3Q02 0.653 4Q02 0.703 1Q03 0.672 2Q03 0.631 Efficiency Ratio (1) (1) Non-interest expense excluding intangible amortization divided by FTE revenue excluding securities gains. The run-off in the operating lease portfolio positively impacted 2Q03 efficiency ratio by appro
Slide 25: Credit Quality Overview
Credit Quality Overview 2Q03 1Q03 2Q02 NPAs / total loans & leases + OREO 0.70 % 0.74 % 1.33 % Net charge-offs 0.85 0.69 0.90 90+ days past due 0.29 0.31 0.28 Consumer 0.42 0.50 0.42 Commercial 0.21 0.15 0.15 Commercial RE 0.08 0.07 0.21 Reserve / total loans & leases 1.79 1.78 2.10 Reserve / NPAs 2
Slide 26: Non-performing Asset Trends
% Lns + OREO 1Q02 225.53 0.0138 2Q02 223.237 0.0133 3Q02 214.1 0.012 4Q02 136.723 0.0073 1Q03 140.725 0.0074 2Q03 133.722 0.007 Non-performing Asset Trends ($MM)
Slide 27: Non-Performing Asset Flow Analysis
Non-Performing Asset Flow Analysis Period End ($MM) 2Q03 1Q03 4Q02 3Q02 2Q02 NPA beginning of period $140.7 $136.7 $214.1 $223.2 $225.5 4Q02 credit actions: New 29.9 Loan and lease losses (51.3) Sales (1) (25.8) Net impact (47.2) New 83.1 48.4 35.6 47.2 73.0 Returns to accruing status (9.9) (6.0) (1
Slide 28: Loan & Lease Net Charge-offs
Loan & Lease Net Charge-offs Amount Percent 1Q02 39.2 0.0092 2Q02 37 0.009 3Q02 33.8 0.0078 4Q02 83.1 0.0183 1Q03 32.8 0.0069 2Q03 41.1 0.0085 ($MM) 2Q03 1Q03 2Q02 Commercial 1.89 % 1.06 % 1.54 % Commercial real estate 0.06 0.06 0.23 Total commercial 1.15 0.66 1.04 Consumer Auto loans 1.06 1.38 1.14
Slide 29: Auto Loan Vintage Performance
Auto Loan Vintage Performance % of Portfolio - EOP Cumulative Charge-off Vintage 12/00 12/01 6/02 12/02 3/03 6/03 6 Mo. 12 Mo. 18 Mo. Pre - 4Q98 18 % 6 % 2 % 1 % 1 % 0 % 4Q98 - 3Q99 25 12 9 5 4 3 4Q99 - 4Q00 57 34 26 17 14 13 0.07% 0.79% 1.72% 1Q01 - 4Q01 -- 48 38 27 23 15 0.04 0.52 1.05 1Q02 - 4Q02
Slide 30: Consumer Delinquency Trends
Consumer Delinquency Trends (1) 30+ Days 1Q02 0.0233 2Q02 0.022 3Q02 0.0199 4Q02 0.0208 1Q03 0.0184 2Q03 0.0186 90+ Days 1Q02 0.0048 2Q02 0.0042 3Q02 0.0042 4Q02 0.0043 1Q03 0.005 2Q03 0.0042 (1) % of related outstandings at EOP; includes DFL leases only since 4/02
Slide 31: Allowance for Loan & Lease Losses Flow Analysis
Allowance for Loan & Lease Losses (ALLL) Flow Analysis ($M) 2Q03 1Q03 4Q02 ALLL- beginning $ 337.0 $ 336.6 $ 371.0 Gross charge-offs (50.0) (40.3) (42.6) Recoveries 8.9 7.4 10.7 Net charge-offs (41.1) (32.8) (31.9) Provision exp. 49.2 36.8 51.2 Credit actions chg-offs -- -- (51.3) Assets purchased/(
Slide 32: Capital Trends
Capital Trends (1) 2Q03 1Q03 2Q02 Tier 1 risk-based capital (2) 8.60 % 8.43 % 9.64 % Total risk-based capital (2) 11.42 11.32 12.67 Tier 1 leverage (2) 8.48 8.48 9.86 Tangible equity / assets 7.31 7.25 8.42 Double leverage (3) 93 91 83 (1) Period end (2) 2Q03 ratios are estimates (3) (Parent company
Slide 33: FIN 46 Implementation
al FIN 46 Implementation
Slide 34: FIN 46 Background
FIN 46 Background Impacts $1.0 billion of indirect auto loans securitized in 2000 At that time, 3% outside ownership interest was sufficient to qualify for off balance sheet treatment as a special purpose entity (SPE) New accounting rules (FIN 46) require SPEs with less than a 10% outside ownership
Slide 35: FIN 46 Cumulative Effect of an Accounting Change
FIN 46 "Cumulative Effect of an Accounting Change" Period of adoption reflects a net negative impact consisting of Write-off of securitization's retained interest and servicing assets Positive impact of recognition of the trust net asset value including excess loan collateralization and cash assets
Slide 36: FIN 46 - 3Q03 Impact as Cumulative Effect
FIN 46 - 3Q03 Impact as a "Cumulative Effect of an Accounting Change" (1) Write-off of retained interest $ (155) MM Write-off of servicing asset (12) Recognize excess cash in securitization trust 110 Recognize over collateralization 14 Recognize dealer reserve 23 Mark to market the cash value of ret
Slide 37: 2003 Outlook
al 2003 Outlook
Slide 38: 2003 EPS Guidance Trends
2003 EPS Guidance Trends EPS Guidance @ 5/20/03 $1.48 - $1.52 Restatement impact on 1Q03 ($0.38 to $0.39) $0.01 2Q03 loan sale gain $0.03 Cumulative effect of an accounting change - FIN 46 ($0.05) Other adjustments $0.01 EPS Guidance @ 7/17/03 $1.48 - $1.52
Slide 39: Forward Looking Statement Disclosure
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD LOOKING STATEMENT DISCLOSURE This presentation and discussion, including related questions and answers, may contain forward-looking statements, including certain plans, expectations, goals, and projections which are subject to numerous assumpt
Slide 40: Appendix
al Appendix
Slide 41: Loan & Lease Portfolio - 6/30/03
Loan & Lease Portfolio - 6/30/03 By Type ($B) Amt Pct Commercial $ 5.5 26.6% Commercial RE 4.0 19.0 Total commercial 9.5 45.6 Auto loans 2.4 11.4 Auto direct fin. leases 1.5 7.3 Home equity 3.4 16.5 Residential real estate 1.9 9.2 Other consumer 0.4 1.8 Total consumer 9.6 46.2 Total loans & leases 1
Slide 42: Commercial Loan Portfolio - 6/30/03
Commercial Loan Portfolio - 6/30/03 $9.5 B By Industry Sector Services 0.24 Manufacturing 0.12 F.I.R.E. 0.3 Retail Trade 0.13 Construction 0.08 Wholesale Trade 0.05 Trans./Comm. 0.03 Agriculture 0.01 Energy 0.01 Other 0.02 Public Administration 0.01
Slide 43: Commercial Loan Portfolio - By Size
< $5 MM 18785 $5+ MM 370 $5 MM - < $10 MM 258 $10 MM - < $25 MM 115 $25 MM - < $50 MM 6 $50+ MM 1 Total 380 < $5 MM 0.6 $5 MM - < $10 MM 0.19 $10 MM - <$25 MM 0.18 $25 MM - < $50 MM 0.02 $50 MM + 0.01 Commercial Loan Portfolio - 6/30/03 # of Loans By Size 18,857 98.0% 380 2.0% Loans By $ Size 60% 2%
Slide 44: Commercial Real Estate Portfolio - 6/30/03
Columbus Cleveland Cincinnati W. MI E. MI WV ID FL 0.191 0.23 0.154 0.15 0.14 0.07 0.058 0.006 Commercial Real Estate Portfolio - 6/30/03 Construction Owner Occupied Mini-Perm Permanent 0.389 0.32 0.14 0.152 Cincinnati 15% Columbus 19% W. Michigan 15% E. Michigan 14% W. Virginia 7% Indiana 6% Clevel
Slide 45: Commercial Real Estate Portfolio - Including Owner Occupied
Commercial Real Estate Portfolio - 6/30/03 Retail Industrial Office Multifamily Land Devel Single-family Hotel Health Care Raw Land Other 0.22 0.18 0.15 0.14 0.08 0.06 0.04 0.02 0.03 0.08 Retail Industrial Office Multi-family Land Devel. Hotel Single-family Health Care Other $4.0 Billion Including O
Slide 46: Commercial Real Estate Portfolio - Excluding Owner Occupied
Commercial Real Estate Portfolio - 6/30/03 Retail Industrial Office Multifamily Land Devel Single-family Hotel Health Care Raw Land Other 0.21 0.12 0.13 0.21 0.11 0.07 0.07 0.02 0.03 0.03 Retail Industrial Office Multi-family Land Devel. Hotel Single-family Health Care Other $2.9 Billion Excluding O
Slide 47: Consumer Loan & Lease Portfolio - 6/30/03
Consumer Loan & Lease Portfolio - 6/30/03 By Type ($B) Amt Pct Auto loans $2.4 21.0% Auto direct fin. leases 1.5 13.3 Home equity * 3.4 30.3 Residential real estate 1.9 16.9 Other consumer 0.4 3.3 Total consumer $9.6 84.9 Auto oper. lease assets $1.7 15.1 Total $11.3 100.0% * Home equity lines $2.9
Slide 48: Indirect Auto - Quarterly Production
Indirect Auto - Quarterly Production ($MM) 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Auto Loans Production $454 $426 $613 $667 $504 $486 $498 $715 $609 $711 $644 % new vehicles 45% 43% 47% 50% 39% 47% 58% 57% 52% 52% 55% Avg. FICO 712 716 722 721 723 730 732 737 735 733 735 % < 640 9.2%
Slide 49: Home Equity - Quarterly Production
Home Equity - Quarterly Production ($MM) 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Loans Production $74.2 $70.5 $93.6 $72.8 $83.2 $76.2 $81.8 $63.7 $64.1 $54.2 $64.4 Avg. LTV 79% 80% 80% 78% 77% 79% 75% 72% 72% 69% 70% Avg. FICO 684 689 692 695 697 697 699 698 698 697 701 % < 640 23.0%
Slide 50: Non-performing Assets - By Sector
Non-performing Assets - By Sector Services 0.18 Manufacturing 0.32 F.I.R.E. 0.15 Construction 0.03 Retail Trade 0.04 Agriculture 0.01 Trans./Comm. 0.02 Wholesale Trade 0.05 Energy 0.01 Other 0.19 $134 MM @ 6/30/03
Slide 51: Performance Trends: Loan Loss Provision
Performance Trends Loan Loss Provision (1) (1) 4Q02 excludes credit actions taken during quarter Net Charge-offs Add'l Provision 1Q02 43 -4 2Q02 37 12.9 3Q02 33.8 20 4Q02 31.9 19.3 1Q03 33 3.9 2Q03 41.056 8.137 ($MM) $50 $54 $51 $37 $49
Slide 52: Retail Banking - Total Deposits Excluding Time
Retail Banking - Total Deposits Excluding Time 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Total corporate excluding MMA 7014 7179 7343 7576 7803 8131 8260 8374 8689 9108 6% ($MM) 6% Quarterly Growth Rates-Annualized 16% 19%
Slide 53: Retail Banking - Deposits Growth by Market
Retail Banking - Total Deposits Excluding Time Growth by Market Average ($B) Annualized Growth 2Q03 vs. 1Q03 vs. 2Q03 vs. 2Q03 1Q03 4Q02 2Q02 Central OH / WV Region $ 3.3 16 % 17 % 12 % No. Ohio Region 2.1 18 11 12 Cincinnati / Dayton Region 0.8 22 24 16 Indiana Region 0.3 21 20 19 E. Michigan Regio
Slide 54: Retail Banking - Consumer Loan Growth by Market
Retail Banking - Consumer Loan Growth by Market Average ($B) Annualized Growth 2Q03 vs. 1Q03 vs. 2Q03 vs. 2Q03 1Q02 4Q02 2Q02 Central OH / WV Region $ 1.0 5 % 1 % 7 % No. Ohio Region 0.8 10 6 11 Cincinnati / Dayton Region 0.5 12 6 13 Indiana Region 0.3 8 7 14 E. Michigan Region 0.3 17 15 20 W. Michi
Slide 55: Retail Banking - Business Banking Loan Growth
Retail Banking - Business Banking Loan Growth 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Total corporate excluding MMA 1537 1532 1509 1522 1552 1564 1563 1595 1607 1660 8% ($MM) 0% Quarterly Growth Rates-Annualized 3% 13%
Slide 56: Retail Banking - Service Charge Income
Retail Banking - Service Charge Income 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Personal 17.812 18.906 18.631 19.589 17.757 19.216 20.926 24.334 22.1 23.9 Corporate 6.318 6.569 6.775 6.793 7.128 7.269 7.155 7.255 7.3 7.5 20% ($MM) 11% Year-Over-Year Change 18% 18%
Slide 57: Commercial Banking - Total Deposits
Commercial Banking - Total Deposits (1) 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Total corporate excluding MMA 1850.3 1932.9 1941.6 1971.5 2163.2 2369.1 2235.2 2241.6 2446.92 (23)% ($MM) 38% Quarterly Growth Rates-Annualized 1% (1) Commercial banking does not include business banking 37%
Slide 58: Commercial Banking - Total Deposits Growth by Market
Commercial Banking - Total Deposits Growth by Market (1) Average ($B) Annualized Growth 2Q03 vs. 1Q03 vs. 2Q03 vs. 2Q03 1Q03 4Q02 2Q02 Central OH / WV Region $0.7 30 % (17) % 3 % No. Ohio Region 0.7 36 (31) 24 Cincinnati / Dayton Region 0.2 118 (60) 17 Indiana Region 0.1 34 (20) -- E. Michigan Regio
Slide 59: Commercial Banking - Loan Growth
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 2216903957 2318488027 2403399725 2449714775 2480033613 2526890576 2471908987 2605663927 2713104825 Commercial Banking - Loan Growth (1) 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 C&I 4130968773 4211823376 4120572245 3982184947 3843323332 3730010968
Slide 60: Commercial Banking - C&I and Commercial RE Loan Growth by Market
Commercial Banking - C&I and Commercial RE Loan Growth by Market (1) Average ($B) Annualized Growth 2Q03 vs. 1Q03 vs. 2Q03 vs. 2Q03 1Q03 4Q02 2Q02 Central OH / WV Region (2) $1.9 (11) % (7) % (6) % No. Ohio Region 1.4 17 6 -- Cincinnati / Dayton Region 0.9 3 23 9 Indiana Region 0.3 6 6 (1) E. Michig
Slide 61: Commercial Banking - Service Charge Income
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Svc Chgs 17.812 6458966 7403466 7360399 8582637 7977019 8432256 8659132 9209259 8350772 Commercial Banking - Service Charge Income (1) ($MM) Year-Over-Year Change 14% 18% 7% (1) Commercial banking does not include business banking Maintenance fees Tr
Slide 62: Dealer Sales - Market Share in Major Markets
Dealer Sales - Market Share in Major Markets 2001 2002 2003 YTD OHIO GMAC 15.0 % 13.6 % 11.6 % Chase 4.2 5.0 8.3 Huntington 6.3 6.4 7.5 Ford Motor Credit 14.3 10.1 7.5 Fifth Third 4.7 5.9 6.2 National City 4.9 5.4 5.7 MICHIGAN GMAC 37.5 32.2 30.3 Ford Motor Credit 17.1 10.4 8.8 Chrysler Finance Corp
Slide 63: PFG - Business Overview - 2Q03
PFG - Business Overview - 2Q03 ($B) Asset Management / 6/30/03 Assets 3/31/03 Assets 6/30/02 Assets Investment Advisory Mngd Total Mngd Total Mngd Total Personal trust $4.7 $7.7 $4.1 $7.1 $4.6 $7.8 Huntington Funds 3.0 3.0 2.6 2.6 2.7 2.7 Institutional trust 0.5 20.3 0.5 20.1 0.5 12.9 Corporate trus
Slide 64: PFG - Business Overview - 2Q03
PFG - Business Overview - 2Q03 ($MM) 2Q03 vs. 2Q03vs Brokerage 2Q03 1Q03 2Q02 1Q03 (1) 2Q02 Mutual fund sales $ 76.0 $ 52.3 $ 54.6 45 % 39 % Annuity sales 142.3 173.9 152.6 (18) (7) $218.3 $226.2 $207.2 (3) % 5 % Huntington Fund Sales $ 29.8 $ 4.8 $ 7.9 % of Total Mutual Fund Sales 39% 9% 14% Privat
Slide 65: PFG - Fee Based Revenue
2Q03 Revenue ($MM) vs. 2Q02 Trust fees $ 15.6 (4)% Brokerage & Insurance 13.3 1 Other (1) 1.2 16 Total $ 30.0 (1) % (1) Misc. banking fees on loans / deposits PFG - Fee Based Revenue Trust Fees Brokerage & Insurance 1Q01 13.7 10.9 2Q01 14.4 11.1 3Q01 14.8 9.5 4Q01 14.7 12.7 1Q02 15.1 12.2 2Q02 16.2
Slide 66: PFG - Huntington Funds
PFG - Huntington Funds Lipper 1 Year (6/30/03) rankings... Dividend Capture Fund Top 18% of 492 International Equity Fund Top 18% of 818 Morningstar "4 Star" rating Growth Fund(1) Income Equity Fund (2) (1) 3, 5 and 10 year time periods (2) 3 year time period
Slide 67: Performance Trends: Revenue
Performance Trends (1) (1) Excluding securities gains Revenue (FTE) Amount 1Q02 488.9 2Q02 479.764 3Q02 502.134 4Q02 481.26 1Q03 482.665 2Q03 484.973 ($MM)
Slide 68: Performance Trends: Return on Assets and Equity
Performance Trends Return on Average Assets Return on Average Equity Amount 1Q02 0.0142 2Q02 0.0117 3Q02 0.014 4Q02 0.0104 1Q03 0.0134 2Q03 0.0139 Return on Common Equity 1Q02 0.158 2Q02 0.125 3Q02 0.157 4Q02 0.125 1Q03 0.163 2Q03 0.175
Slide 69: Huntington
(| Huntington
Huntington Bancshares — Q2 2003 Earnings Presentation on 6ix