Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q4 2020 Earnings Presentation
86 slides from Huntington Bancshares's earnings presentation, Feb 1, 2021
Slide 1: 2021 First Quarter Investor Presentation
2021 First Quarter Investor Presentation February 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 39 Economic Footprint 4 Earning Assets 40 Leadership Team 5 Loan Composition 41 Board of Directors 6 Commercial Loans 43 Environmental, Social, & Governance 10 Consumer Loans 47 Strategy 13 Investment Securities 56 Purpose Drives Performance
Slide 3: Franchise and Leadership
Franchise and Leadership (4) Huntington Welcome: JOC mW se We A
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 Chairman, President, and CEO Steve Steinour Consumer and Business Banking Regional Banking and the Private Client Group Andy Harmening Sandy Pierce Commercial Banking Vehicle Finance Scott Kleinman Sandy Pierce Finance & Strategy Risk Zach Wasserman Hel
Slide 6: Deeply Engaged, Diverse Board of Directors
Deeply Engaged, Diverse Board of Directors Our Board sets the strategy, risk management culture, and ethical standards for the entire organization Our directors represent a well‐rounded diversity of skills, knowledge, and experience aligned with our strategy. o Our Board is committed to board re
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 HBI Board Meeting 12 9 13 16 12 15 15 16 17 12 HBI Audit Committee(2) 16 15 11 13 11 12 10 11 19 17 HBI Capital Planning Committee(3) 8 8 HBI Community Development Committee 4
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 8 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 Finalize our ESG goals and ESG report disclosures while grounding formalize our ESG policy & our report in materiality integration into business planning 2017 2019 Conducted a materiality Established a formal ESG assessment to determin
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: Extending Digital Origination Capabilities
Extending Digital Origination Capabilities Digital Originations In 2020, Huntington aggressively extended origination capabilities to New Consumer Deposit Accounts Includes Checking, Savings, MMA ensure all core product families 44% within consumer and business banking 29% 28% can originate digitall
Slide 20: Consumer and Business Digital Engagement Metrics
Consumer and Business Digital Engagement Metrics Active Digital Users Active Mobile Users Digital Logins (Millions) (Millions) (Millions) +6% YoY +9% YoY +25% YoY 2.18 3.01 3.04 2.12 2.99 2.10 139.4 2.95 2.05 124.2 128.4 2.88 2.00 102.3 108.7 26.0 22.5 22.6 23.2 23.8 113.4 101.7 105.8 79.1 84.9 4Q19
Slide 21: 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 22: COVID Has Not Changed the Importance of Branches
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 23: 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 24: Financial Update
Financial Update (4) Huntington Welcome: ; JOC ATX
Slide 25: 2020 Full Year Financial Highlights
2020 Full Year Financial Highlights Delivered positive operating leverage for the 8th consecutive year Revenue (FTE) EPS TBVPS $4.8 billion $0.69 $8.51 3% Y/Y 46% Y/Y 3% Y/Y ROA ROCE ROTCE 0.70% 6.8% 8.9% 61 basis points Y/Y 6.1 percentage pts Y/Y 8.0 percentage pts Y/Y Average loans increased $4.
Slide 26: 2020 Fourth Quarter Financial Highlights
2020 Fourth Quarter Financial Highlights Revenue growth of 7% year‐over‐year supporting continued investment Revenue (FTE) EPS TBVPS $1.2 billion $0.27 $8.51 7% Y/Y 4% Y/Y 3% Y/Y ROA ROCE ROTCE 1.04% 10.4% 13.3% 11 basis points Y/Y 0.7 percentage pts Y/Y 1.0 percentage pts Y/Y Average loans increa
Slide 27: Pretax, Pre-Provision Earnings (PTPP)
Pretax, Pre‐Provision Earnings (PTPP) Solid growth in PTPP in face of challenging environment illustrates underlying earnings power Y/Y Change Y/Y Change ($ in millions) 4Q20 4Q19 2020 2019 $ % $ % Net interest income (FTE) $830 $786 $44 6% $3,245 $3,239 $6 0% Noninterest income $409 $372 $37 10% $1
Slide 28: 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 $2.0 $2.0 $1.9 $1.8 $1.4 4Q20 4Q20 48% 48% Avg Core 52% Avg Loans 52% Deposits $81 B $92 B 2016 2017 2018 2019 2020 1.78% 2.24% 2.23% 2.28% 2.30% C
Slide 29: 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 12/31/21: As of 12/31/21: Continued steady consumer loan Strengthening commercial loan production, particularly in home act
Slide 30: Income Statement
Income Statement (4) Huntington Welcome: ; JOC ATX
Slide 31: Net Interest Income
Net Interest Income Year‐over‐year 12% increase in average earning assets outpaced 18 basis points of net interest margin compression $ in millions Net Interest Income (FTE) $840.00 +6% 3.90% $830.00 $830 $820.00 $822 3.70% $810.00 3.50% NIM change LQ 3Q20: 2.96% $800.00 Rates / mix / other (0.03) $
Slide 32: Net Interest Margin (FTE)
Net Interest Margin (FTE) NIM down 18 basis points year‐over‐year reflecting lower market interest rates and inherent asset sensitivity of balance sheet Net Interest Margin Trends Components of Cost of Interest‐Bearing Liabilities 3.50% 4.03% 3.88% 3.35% 2.70% 3.22% 3.13% 2.58% 1.66% 3.12% 3.14% 1.4
Slide 33: Hedging Program Overview
Hedging Program Overview 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 19% 38% Variable (1‐month) Hedged 19% Wtd. Avg. Wtd Avg. Wtd. Notional
Slide 34: Noninterest Income
Noninterest Income Mortgage banking income remained robust Change in Quarterly Noninterest Income Year‐over‐Year Total Noninterest Income Mtg banking: +$32 55% +10% $430 Other & sec. losses: +$21 105% $409 $372 Capital Markets: +$3 10% Trust & inv mgmt: +$2 4% Cards & payment: +$1 2% Insurance: +$1
Slide 35: Mortgage Banking Noninterest Income Summary
Mortgage Banking Noninterest Income Summary Mortgage Banking Income (MBI) Salable Production Mix $150 $130 $122 $110 $96 $120 $90 $90 $96 $95 51% 55% 54% 56% 65% $70 $58 $58 $4 $50 $11 $54 4.67% $47 $30 3.93% 3.85% 49% 45% 46% 44% $10 3.13% 35% 2.64% $(10) $(5) 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q2
Slide 36: Balance Sheet & Key Fee Income Drivers Trends
Balance Sheet & Key Fee Income Drivers Trends Quarterly growth driven by PPP, deposit inflows, and mortgage originations Period‐End Total Commercial Loan Balances ($ billions) Period‐End Total Deposit Balances ($ billions) Salable Mortgage Origination Volume ($ millions) Debit Card Volume (YoY Chang
Slide 37: Noninterest Expense
Noninterest Expense Continued investment in talent and technology drive expense growth Change in Quarterly Noninterest Expense Year‐over‐Year Total Expense +8% Outside data processing: +$22 25% $756 Other expense: +$19 33% Equipment: +$7 17% $712 $701 Professional services: +$7 49% Marketing: +$6 67
Slide 38: Tax Rate Summary
Tax Rate Summary Reported vs. FTE adjusted ($ in millions) 4Q20 3Q20 4Q19 2020 2019 Reported (GAAP) Income before income taxes $375 $358 $372 $972 $1,659 Provision for income taxes $59 $55 $55 $155 $248 Effective tax rate 15.8% 15.2% 14.8% 15.9% 15.0% FTE Adjustment Income before income taxes $5 $5
Slide 39: Balance Sheet
Balance Sheet (4) Huntington Welcome: ; JOC ATX
Slide 40: Average Earning Assets
Average Earning Assets Commercial & industrial loans and elevated deposits at the Federal Reserve drive year‐over‐year earning asset growth Average Quarterly Growth Year‐over‐Year Average Growth Linked Quarter Other Earning Assets: +$5.2 291% Total Securities: +$1.2 5% C&I: +$4.5 15% Residential Mor
Slide 41: Average Loan Composition: $81.1 Billion
Average Loan Composition: $81.1 Billion 4Q20 average balances Average Balance by Type Average Balance by Segment 1% 8% 5% 43% 34% 15% 25% 11% 9% 16% 33% C&I $34.9B Commercial Real Estate $7.2B Consumer and Business Banking: $27.5B Auto $12.9B Commercial Banking: $26.7B Home Equity $8.9B Vehicle Fina
Slide 42: Consumer and Commercial Asset Trends
Consumer and Commercial Asset Trends 2020 vs 4Q20 vs 4Q20 vs Average ($ in billions) 2020 4Q20 2019 3Q20(1) 4Q19 Commercial Commercial and industrial loans $ 33.9 11) % $ 34.9 2) % 15) % Commercial real estate: Construction loans 1.2 (1) 1.1 (31) (8) Commercial loans 5.9 3) 6.1 3) 8) Total commercia
Slide 43: Total Commercial Loans – Granularity
Total Commercial Loans – Granularity End of period outstandings of $42.6 billion # of Loans by Size Loans by Dollar Size 8% 17% 36% 69,320 98% 1,766 26% 2% 13% < $5 MM $5+ MM < $5 MM: $15.3B $5 MM ‐ < $10 MM 810 $5 MM ‐ < $10 MM: $5.7B $10 MM ‐ < $25 MM 690 $10 MM ‐ <$25 MM: $10.9B $25 MM ‐ < $50 MM
Slide 44: Commercial and Industrial: $35.4 Billion
Commercial and Industrial: $35.4 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 <$20 million i
Slide 45: C&I – Auto Industry
C&I – Auto Industry End of period balances Outstandings ($ in millions) 4Q20 3Q20 2Q20 1Q20 4Q19 Suppliers(1) Domestic $ 923 $ 910 $ 977 $ 883 $ 759 Foreign 0 0 0 0 0 Total suppliers 923 910 977 883 759 Dealers Floorplan‐domestic 1,725 1,593 1,562 2,309 2,370 Floorplan‐foreign 944 810 883 1,207 986
Slide 46: 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 47: 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 48: Automobile: $12.8 Billion
Automobile: $12.8 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 49: Auto Loans – Origination Trends
Auto Loans – Origination Trends Loan originations from 2013 through 2020 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 50: Home Equity: $8.9 Billion
Home Equity: $8.9 Billion Focused on geographies within our Midwest footprint with relationship customers Focused on high quality borrowers… portfolio as of 4Q20: o Average weighted FICO scores of 750+ o Average weighted LTVs of <85% for junior liens and <75% for 1st‐liens o Approximately 60% ar
Slide 51: 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… 4Q20 originations: o Average weighted FICO scores of 750+ o Average weighted LT
Slide 52: Residential Mortgages: $12.1 Billion
Residential Mortgages: $12.1 Billion Traditional product mix focused on geographies within our Midwest footprint Early identification of at‐risk borrowers. “Home Savers” program has a 75% success rate Credit Quality Review 4Q20 3Q20 2Q20 1Q20 4Q19 Period end balance ($ in billions) $12.1 $12.0 $
Slide 53: 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 4Q20 portfolio origination: purchased / refinance mix of 40% / 60% ($ in billions) 2020 2019 201
Slide 54: 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 55: RV and Marine: $4.2 Billion
RV and Marine: $4.2 Billion Credit Quality Review 4Q20 3Q20 2Q20 1Q20 4Q19 Period end balance ($ in billions) $4.2 $4.1 $3.8 $3.6 $3.6 30+ days PD and accruing 0.54% 0.39% 0.33% 0.55% 0.52% 90+ days PD and accruing 0.06% 0.05% 0.05% 0.05% 0.05% NCOs 0.21% 0.38% 0.37% 0.27% 0.39% NALs 0.04% 0.03% 0.0
Slide 56: 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 3.04% 3.01% 3.00% 2.94% $25 2.87% 2.79% 2.75% 2.75% $20 2.52% 2.54% 2.51% 2.50% 2.50% 2.45% 13.9 14.4 2.50% 14.8 2.39% 13.4 14.0 13.8 13.9 13.5 13.5 $15 2.28%
Slide 57: AFS and HTM Securities Overview
AFS and HTM Securities Overview(1) December 31, 2020 September 30, 2020 December 31, 2019 ($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
Slide 58: 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: +$7.5 36% DDA‐Int. Bearing: +$1.2 5% DDA‐Int. Bearing: +$5.0 25% DDA‐Nonint. Bearing: +$0.7 3% Savings / Other: +$
Slide 59: Average Deposit Composition: $96.6 Billion
Average Deposit Composition: $96.6 Billion 4Q20 average balances Average Balance by Type Average Balance by Segment 2% 0% 4% 5% 1% 7% 12% 29% 25% 27% 62% 26% Demand ‐ Noninterest Bearing $28.1B Consumer and Business Banking: $60.2B Demand ‐ Interest Bearing $25.1B Commercial Banking: $24.1B Money Ma
Slide 60: Total Core Deposit Trends
Total Core Deposit Trends 2020 vs 4Q20 vs 4Q20 vs Average ($ in billions) 2020 4Q20 2019 3Q20(1) 4Q19 Commercial Demand deposits – noninterest bearing $ 19.2 27) % $ 21.7 16) % 37) % Demand deposits – interest bearing 13.7 20) 14.4 21) 23) Total commercial DDA 32.9 24) 36.1 18) 31) Other core deposi
Slide 61: Stable, Diversified Sources of Wholesale Funds
Stable, Diversified Sources of Wholesale Funds Historical issuance and current ratings Wholesale Funding Issuances and Maturities ($ in billions) 3.1 2.5 2.0 2.0 2.0 1.7 1.6 1.1 1.3 1.0 0.7 0.8 0.6 0.5 0.5 2015 2016 2017 2018 2019 2020 Preferred Equity Issued Senior Debt Matured Senior Debt Issued S
Slide 62: Stable, Diversified Sources of Wholesale Funds
Stable, Diversified Sources of Wholesale Funds Smooth runoff profile and optimization of funding costs 1.2 Quarterly Maturities Through 2025 HoldCo Sr. HoldCo Sub Bank Sr. 1.0 0.8 $ in billions 0.6 0.4 0.2 0.0 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 1Q25 3Q25 Objectives Annual Maturities ($ in milli
Slide 63: Capital
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Slide 64: 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 $2.00 EOP Modified Liquidity Coverage Ratio (1) 188% 183% $1.90 92% $0.90 90% $1.80 $0.85 170% 86% 85% $1.70 $0.80 82% $1.60 $0.75 150% 147% $1.50 $0.70 $1
Slide 65: Change in Common Shares Outstanding
Change in Common Shares Outstanding There were 0.4 million shares repurchased in 4Q20 to offset compensation plan‐related share issuances Share count in millions 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Beginning shares outstanding 1,017 1,017 1,014 1,020 1,033 1,038 1,046 1,047 Employee equity com
Slide 66: Credit Quality
Credit Quality (4) Huntington Welcome: ; JOC ATX
Slide 67: 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 68: Allowance for Credit Losses (ACL)
Allowance for Credit Losses (ACL) Stable ACL coverage ratio $1,878 $1,866 $1,821 2.50% of $1,603 2.45% of 2.46% of loans ex. loans ex. loans ex. PPP (1) PPP (1) PPP (1) Multiple scenarios utilized while using November baseline as foundation 2.31% of 2.29% of 2.27% of loans While baseline outlook
Slide 69: Credit Quality – NPAs and TDRs
Credit Quality – NPAs and TDRs Oil and gas impacts waning as aggressive reduction strategy takes hold Nonperforming Assets (NPAs): Q/Q Trend in Nonperforming Assets 4Q20 3Q20 0.89% ($ in millions) Change 0.66% 0.75% 0.74% 0.69% $56 $288 $148 Commercial and Industrial $353 $388 ($35) $195 $60 $442 $3
Slide 70: COVID Related Financial Accommodations
COVID Related Financial Accommodations Remaining deferrals represent less than 1% of the loan portfolio, compared to 9% at the June 30 peak. Active Commercial deferrals are down $4.8B from the June 30 peak. Only a modest amount of CRE and Business Banking deferrals remain. o Select Hospitality c
Slide 71: Asset Quality and Reserve Trends
Asset Quality and Reserve Trends Asset quality metrics improving despite challenging economic considerations Net Charge‐off Ratio ACL and ALLL Ratios ACL Ratio 0.62% ALLL Ratio 0.54% 0.56% 0.55% 2.27% 2.31% 2.29% 2.05% 0.39% 2.12% 2.21% 2.22% 1.18% 1.93% 1.04% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20
Slide 72: Credit Quality Trends Overview
Credit Quality Trends Overview 4Q20 3Q20 2Q20 1Q20 4Q19 Net charge‐off ratio 0.55% 0.56% 0.54% 0.62% 0.39% 90+ days PD and accruing 0.21 0.22 0.24 0.21 0.23 NAL ratio(1) 0.65 0.70 0.81 0.72 0.62 NPA ratio(2) 0.69 0.74 0.89 0.75 0.66 Criticized asset ratio(3) 3.91 4.35 4.95 3.59 3.64 ALLL ratio 2.22
Slide 73: Consumer Loan Delinquencies
Consumer Loan Delinquencies(1) 30+ Days 90+ Days 1.36% 1.15% 1.18% 1.13% 1.09% 2.40% 2.28% 2.29% 2.18% 2.10% 1.36% 1.22% 1.26% 1.11% 0.48% 0.95% 1.03% 0.42% 0.41% 0.42% 0.41% 0.88% 0.90% 0.69% 0.54% 0.87% 0.80% 0.16% 0.16% 0.68% 0.13% 0.12% 0.12% 0.51% 0.47% 0.07% 0.06% 0.06% 0.07% 0.07% 4Q19 1Q20 2
Slide 74: Total Commercial Loan Delinquencies
Total Commercial Loan Delinquencies 30+ Days(1) 90+ Days(2) 0.30% 0.21% 0.19% 0.15% 0.15% 0.03% 0.03% 0.03% 0.02% 0.02% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 See notes on slide 85 2021 First Quarter Investor Presentation 74
Slide 75: Net Charge-Offs
Net Charge‐Offs Total Commercial Loans Total Consumer Loans ($ in millions) Oil & Gas NCOs ($ in millions) NCOs CML NCOs ex‐Oil & Gas Annualized % Annualized % Annualized ex‐Oil & Gas 0.89% 0.86% 0.85% 0.75% 0.65% 0.74% 0.47% 0.38% 0.39% 0.35% 0.30% 0.24% 0.22% 0.19% $89 $90 $83 0.20% $80 $12 $22 $4
Slide 76: Nonperforming Asset Flow Analysis
Nonperforming Asset Flow Analysis End of Period ($ in millions) 4Q20 3Q20 2Q20 1Q20 4Q19 NPA beginning‐of‐period $602 $713 $586 $498 $482 Additions / increases 248 190 279 274 175 Return to accruing status (108) (47) (25) (18) (20) Loan and lease losses (73) (102) (61) (91) (48) Payments (82) (77) (
Slide 77: Criticized Commercial Loan Analysis
Criticized Commercial Loan Analysis End of Period ($ in millions) 4Q20 3Q20 2Q20 1Q20 4Q19 Criticized beginning‐of‐period $3,173 $3,601 $2,473 $2,394 $2,365 Additions / increases 473 355 1,411 510 479 Advances 86 120 329 187 109 Upgrades to “Pass” (395) (407) (111) (100) (174) Paydowns (577) (429) (
Slide 78: Appendix
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Slide 79: Disclaimer
Disclaimer CAUTION REGARDING FORWARD‐LOOKING STATEMENTS This communication may contain certain forward‐looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectation
Slide 80: Basis of Presentation
Basis of Presentation Use of Non‐GAAP Financial Measures This document contains GAAP financial measures and non‐GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non‐GAAP financial measures are used, th
Slide 81: Reconciliation
Reconciliation Pretax Pre‐Provision Net Revenue (PPNR) ($ in millions) 2020 2019 2018 2017 2016 Net interest income – FTE $3,224 $3,239 $3,219 $3,052 $2,412 Noninterest income 1,591 1,454 1,321 1,307 1,151 Total revenue 4,836 4,693 4,540 4,359 3,563 Less: Significant Items 0 0 0 2 1 Less: gain / (lo
Slide 82: Reconciliation
Reconciliation Tangible common equity, ROTCE, and ACL ratio ex. PPP loans ($ in millions) 4Q20 3Q20 4Q19 Average common shareholders’ equity $10,749 $10,701 $10,681 Less: intangible assets and goodwill 2,185 2,195 2,228 Add: net tax effect of intangible assets 41 43 50 Average tangible common shareh
Slide 83: 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 84: Notes
Notes Slide 42: (1) Linked‐quarter percent changes annualized (2) Includes commercial bonds booked as investment securities under GAAP Slide 44: (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 85: Notes
Notes Slide 56: (1) Averages balances; Trading Account and Other securities excluded Slide 57: (1) End of period (2) Tax‐equivalent yield on municipal securities calculated as of December 31, 2020 using 21% corporate tax rate (3) Weighted average yields were calculated using carry value Slide 60: (1
Slide 86: Investor Relations Contacts
Mark A. Muth Director of Investor Relations Office: 614.480.4720 E‐mail: mark.muth@huntington.com Adrienne Atkinson Asst. Dir. of Investor Relations Office: 614.480.6077 E‐mail: adrienne.atkinson@huntington.com For additional information, please visit: http://www.huntington.com The Huntington Nation
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