Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Goldman Sachs 2017 US Financial Services Conference
26 slides from Huntington Bancshares's conference presentation, Dec 5, 2017
Slide 1: Goldman Sachs 2017 US Financial Services Conference
Huntington Bancshares Incorporated Goldman Sachs 2017 US Financial Services Conference December 6, 2017 Welcome ©2017 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN) Exhibit 99.1
Slide 2: Disclaimer
Disclaimer 2 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and
Slide 3: Discussion Topics
Huntington’s Strategy Delivering on our Commitments: FirstMerit Acquisition Expectations: 4Q17 and 2018 Important Messages Discussion Topics 3
Slide 4: a a PY J
Wy pO & N= w @ a a PY J 7) X \\ c > / ° — ate! » ( = If < _ } Pay ae [ _~ O°N pS , aie
Slide 5: Huntington Bancshares Overview
Ranked #2 in deposit market share in Ohio (15%) and #6 in Michigan (7%) Founded in 1866 in Columbus, Ohio Traditional regional bank with strategic focus on small to medium-sized businesses, consumers, and vehicle finance Huntington Bancshares Overview $102 billion asset Midwest financial service
Slide 6: Well-Defined Strategy Builds Upon Our Sustainable, Competitive Advantages
Small and Medium Businesses Consumer Vehicle Finance 6 Well-Defined Strategy Builds Upon Our Sustainable, Competitive Advantages Delivering consistent, through-the-cycle shareowner returns Drive continued growth in market share and share of wallet through execution of Optimal Customer Relationship
Slide 7: Driving Toward a Best-in-Class Return Profile
Driving Toward a Best-in-Class Return Profile Actions Taken Since 2009 Accelerated Performance 7 Focused the Business Model Aggregate Moderate-to-Low Risk Appetite Invested in the Franchise (1) See reconciliation on slide 22; Peer data on a core basis, source: SNL Financial Built the Brand Disciplin
Slide 8: Positioned for Strong Relative Performance Through-the-Cycle
Positioned for Strong Relative Performance Through-the-Cycle 8 (1) Non-GAAP financial metric; see Appendix slide 23; (2) Annualized; (3) 3Q17 average balances; (4) projected minimum in the Federal Reserve Severely Adverse Scenario Note: Ranking among 19 traditional commercial banks
Slide 9: Delivering on our Commitments: FirstMerit Acquisition
Delivering on our Commitments: FirstMerit Acquisition 9
Slide 10: High Confidence in FirstMerit Deal Economics
High Confidence in FirstMerit Deal Economics On pace to meet or exceed originally announced cost savings and revenue enhancements 10 $255+ MM Cost Savings ✔ Implementation of all cost savings complete ✔ Eliminated 42% of legacy FirstMerit expense base ✔ Fully converted all operating systems to Hunti
Slide 11: Delivering FirstMerit Economics
Delivering FirstMerit Economics Cost savings remain on pace and revenue initiatives ramping 11 FirstMerit Integration substantially complete o Systems conversions successfully completed o Consumer deposit retention has outperformed modeled assumptions with balances up 2%1 vs. 10% runoff assumption
Slide 12: FirstMerit Revenue Enhancement Initiatives
FirstMerit Revenue Enhancement Initiatives Initiatives provide additional near-term and long-term upside 12 Home Lending Expansion Small Business Administration (SBA) Lending Expansion RV & Boat Expansion Optimal Customer Relationship (OCR) Improvement (1) Source: SBA; rankings for SBA 2017 fiscal y
Slide 13: Net Impact of FirstMerit-Related Purchase Accounting and Provision
13 Net Impact of FirstMerit-Related Purchase Accounting and Provision Expected net impact on pre-tax income down to $1 million in 2018
Slide 14: Expectations: 4Q17 and 2018
Expectations: 4Q17 and 2018 14
Slide 15: FirstMerit Acquisition Accelerated Achievement of Our Long-Term Financial Goals
FirstMerit Acquisition Accelerated Achievement of Our Long-Term Financial Goals 15 Long-Term Financial Goal YTD 4Q Expectation 2018 Target Revenue (FTE) Growth (Y/Y) 4% - 6% +31% 3% - 4% Expense Growth (Y/Y) Positive Operating Leverage +21% (7%) - (8%) Efficiency Ratio 56% - 59% 63% ~55% NCO 3
Slide 16: 4Q Mid-Quarter Update
4Q Mid-Quarter Update1 16 Full year 2017 period-end loan growth expectation remains +3% to +4% Continued Consumer growth momentum 4Q historically a seasonally strong quarter Core NIM improvement Deposit pricing pressure remains largely confined to Corporate and upper end of Middle Mkt Lo
Slide 17: Initial 2018 Expectations
Initial 2018 Expectations 17 Avg Loan Balances 4% - 6% growth (assumes $500 MM Auto securitization in 3Q18) Avg Deposit Balances 3% - 5% growth Revenue 4% - 6% growth (assumes no rate hikes in December 2017 or full year 2018) Net Interest Margin GAAP NIM flat; Core NIM up modestly (new money yields
Slide 18: Important Messages
mor Important Messages VF RAR ASASAS EAS
Slide 19: Important Messages
Strong economic outlook for Midwest footprint FirstMerit integration substantially complete; Fully implemented all cost saves and executing on revenue synergies Focused on three areas with sustainable competitive advantages o Consumer o Small to Medium Enterprises (including Commercial Real Es
Slide 20: Appendix
Appendix 20
Slide 21: Huntington's Peer Group
Huntington’s Peer Group 21 $ in millions Total Assets Total Deposits Total Loans Market Capitalization Price / Dividend Yield Consensus 2017E Consensus 2018E Tangible Book PNC Financial Services Group, Inc. $375,191 $260,735 $221,109 $66,879 16.8x 15.0x 2.0x 2.1% BB&T Corporation 220,340 156,135 142
Slide 22: Reconciliation Efficiency Ratio, ROTCE, and ROCE
22 Reconciliation Efficiency Ratio, ROTCE, and ROCE ($ in millions) GAAP Adjustment (1) Adjusted YTD: Noninterest expense $2,082 $155 (2) $1,927 Amortization of intangibles $43 -- $43 Noninterest expense less amortization of intangibles A $2,040 $1,884 Total revenue (FTE) $3,237 ($2) $3,235 Securiti
Slide 23: Reconciliation Pretax Pre-Provision Net Revenue (PPNR)
23 Reconciliation Pretax Pre-Provision Net Revenue (PPNR) ($ in millions) YTD 17 2016 2015 2014 2013 Net interest income – FTE $2,269 $2,412 $1,983 $1,865 $1,732 Noninterest income 968 1,151 1,039 961 1,012 Total revenue 3,237 3,563 3,022 2,826 2,744 Less: significant items 2 1 3 1 0 Less: gain on s
Slide 24: Use of Non-GAAP Financial Measures
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, the comparable GAAP fina
Slide 25: Significant Items
Significant Items From time to time, revenue, expenses, or taxes are impacted by items judged by Management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed
Slide 26: Investor Relations Contact
Welcome ©2017 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN) Mark A. Muth Director of Investor Relations Office: 614.480.4720 E-mail: mark.muth@huntington.com For additional information, please visit: http://www.huntington.com
Huntington Bancshares — Goldman Sachs 2017 US Financial Services Conference on 6ix