Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q2 2021 Earnings Presentation
80 slides from Huntington Bancshares's earnings presentation, Aug 1, 2021
Slide 1: 2021 Third Quarter Investor Presentation
2021 Third Quarter Investor Presentation August 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 Strategy 3 Non-Equity Funding 44 Huntington Overview 4 Deposit Composition 45 Purpose Drives Performance 5 Wholesale Funding 47 Digital Strategy 8 Capital 49 TCF Integration Timeline 12 Credit Quality 52 Financial Update 13 Allowance for Credit Losses 54 2Q21 Highlights 14 Asset Qu
Slide 3: Strategy
Strategy
Slide 4: Huntington Overview
Huntington Overview Over 150 years of serving the financial needs of our customers Density and Scale in Attractive Markets Well-Diversified Balance Sheet With $175 billion of total assets(1), Huntington is a Top 25 bank holding company in the US 2Q21 45% 2Q21 46% Loans(1) Deposits(1) 55% $112 B $143
Slide 5: 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 6: 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 7: What People-First, Digitally Powered Means to Huntington
What People-First, Digitally Powered Means to Huntington People-First Digitally Powered Fulfilling our purpose to make people’s lives better, Leveraging technology to expand channel capabilities, help businesses thrive, and strengthen the enhance experiences for all customer segments, and communitie
Slide 8: Building a Best-in-Class Customer Experience
Building a Best-in-Class Customer Experience Consumer Banking Digital Origination Capabilities June 2021 Product Launches Average Monthly Active Checking Household Growth Digital Users(1) (Thousands) Checking (Millions) Digital-only 2.38 2,263 Savings Unsecured Line of Credit 2.21 Mortgage 2,180 Hom
Slide 9: Consumer and Business Banking Digital Metrics
Consumer and Business Banking Digital Metrics Digital Engagement Digital Originations Average Monthly Active Digital Users(1) New Consumer Deposit Accounts(3) (Millions) Includes Checking, Savings, MMA +9% YoY 2.39 49% 49% 2.37 43% 44% 2.26 28% 2.23 2.20 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21
Slide 10: Industry-leading Mobile Customer Satisfaction
Industry-leading Mobile Customer Satisfaction Honored for the third consecutive year for consumer mobile 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 on listening to customers and d
Slide 11: 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 12: TCF Integration Update
TCF Integration Update Speedy close accelerates focus on realizing synergies June 9, 2021 Transaction closed; Subsidiary bank merger Dec. 13, 2020 Early 2Q21 completed 3Q21 1H22 Announced Key management Management and Two mock core Select facilities acquisition of selection completed org
Slide 13: Financial Update
Financial Update (@) Huntington Welcome: \ C “
Slide 14: 2021 Second Quarter Financial Highlights
2021 Second Quarter Financial Highlights Closed TCF and continued focus on execution of organic growth initiatives EPS Efficiency Ratio ROTCE GAAP Reported ($0.05) 83.1% (2.1%) Adjusted (1) $0.35 62.0% 16.6% Closed TCF Closed transaction June 9; continue to expect to deliver targeted financial ret
Slide 15: 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 2.2 1.9 2.0 1.8 2Q21 2Q21 End of Period 45% 46% End of Period 55% Loans Deposits 54% $112 B $143 B (2) 2017 2018 2019 2020 YTD 2021(3) 2.24% 2.
Slide 16: 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 6/30/21: As of 6/30/21: Continued steady consumer loan Strengthening commercial loan production, particularly in home activ
Slide 17: Paycheck Protection Program (PPP) Update
Paycheck Protection Program (PPP) Update $7.00 PPP Loans PPP Loans as of 6/30/2021 $6.1 $6.2 $6.00 $5.8 Loans (for HBAN and TCF combined) Total program: $11.4 billion (83,900) of total loans approved $5.00 $5.1 $4.2 Original program: $8.6 billion (55,200) total loans approved $4.00 $4.1 New pr
Slide 18: Income Statement
Income Statement (@) Huntington Welcome: \ C “
Slide 19: Growing Net Interest Income
Growing Net Interest Income NIM compression versus linked quarter driven primarily by negative mark-to- market on interest rate caps $ in millions Net Interest Income (FTE) $1,00 0.00 4.20% $978 4.00% $950. 00 NIM change LQ 1Q21: 3.48% +6% 3.80% Hedging / derivatives (0.79) $900. 00 Interest rate ca
Slide 20: Net Interest Margin (FTE)
Net Interest Margin (FTE) NIM down 28 basis points year-over-year due to volatility on interest rate caps Net Interest Margin Trends Components of Cost of Interest-Bearing Liabilities 3.35% 3.48% 3.22% 3.13% 2.96% 4.97% 3.11% 2.94% 2.96% 2.94% 2.66% 2.58% 1.87% 1.72% 0.57% 0.45% 0.47% 0.47% 0.39% 0.
Slide 21: Balance Sheet Management
Balance Sheet Management Hedging and Securities strategy update 4Q19-2Q21 Cumulative Securities Impact Notional Value of Outstanding Hedges & on Other Comprehensive Income (OCI) Modeled NIM Benefit from Hedging(1) vs. Caps Mark-to Market $21.9 $21.8 $21.1 $20.2 $5.2 $5.2 $5.2 $17.3 $5.2 $16.2 $16.2
Slide 22: Noninterest Income
Noninterest Income Deposit services charges and late-quarter TCF acquisition drive year-over-year growth in noninterest income Change in Quarterly Noninterest Income Year-over-Year Total Noninterest Income +14% Deposit svc chgs: +$28 47% Cards & payment: +$21 36% $444 Other & sec. losses: +$19 44% $
Slide 23: Mortgage Banking Noninterest Income Summary
Mortgage Banking Noninterest Income Summary $1 45 Mortgage Banking Income (MBI) Salable Production Mix $122 $1 25 $2 $96 $120 $100 $90 $5 $1 05 54% 56% 51% $96 $95 $95 65% 68% $67 $8 5 $6 5 $69 $4 5 4.67% 3.93% 3.85% 3.55% 49% $2 5 46% 44% $5 3.01% 35% 32% $(5) $(2) $( 15 ) 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 24: Noninterest Expense
Noninterest Expense Late-quarter TCF acquisition and corresponding notable expense items drive expense growth Change in Quarterly Noninterest Expense Year-over-Year Total Expense +59% Personnel costs: +$174 42% $1,072 Outside data processing: +$72 80% Other expense: +$58 126% Professional services:
Slide 25: Balance Sheet
Balance Sheet (@) Huntington Welcome:
Slide 26: Loan Growth Driven by TCF Acquisition
Loan Growth Driven by TCF Acquisition Securities, elevated deposits at the Fed drive year-over-year earning asset growth Total Loan and Lease Balances Average Earning Assets Quarterly Growth Year-over-Year $111.9 Total Securities: +$6.5 27% Other Earning Assets: +$4.6 100% $87.4 Residential Mortgage
Slide 27: Ending Loan Composition: $111.9 Billion
Ending Loan Composition: $111.9 Billion 2Q21 end of period balances Ending Balance by Type Ending Balance by Segment 2% 1% 4% 7% 17% 18% 33% 37% 10% 12% 13% 42% 4% C&I $41.9B Consumer and Business Banking $36.8B Commercial Real Estate $14.8B Commercial Banking $46.6B Lease Financing $5.0B Auto $13.2
Slide 28: Consumer and Commercial Asset Trends
Consumer and Commercial Asset Trends 2Q21 2Q21 vs 2Q21 vs 2Q21 ($ in billions) Average 1Q21(1) 2Q20 Ending Commercial Commercial and industrial loans $ 34.1 25) % 3) % $ 41.9 Commercial real estate: Construction loans 1.3 98) 9) 1.9 Commercial loans 7.8 108) 32) 12.8 Commercial real estate 9.1 106)
Slide 29: Commercial and Industrial: $41.9 Billion
Commercial and Industrial: $41.9 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 <$20 million i
Slide 30: C&I – Auto Industry
C&I – Auto Industry End of period balances Outstandings ($ in millions) 2Q21 1Q21 4Q20 3Q20 2Q20 Suppliers(1) Domestic $ 1,125 $ 922 $ 923 $ 910 $ 977 Foreign 0 0 0 0 0 Total suppliers 1,125 922 923 910 977 Dealers Floorplan-domestic 1,027 1,377 1,725 1,593 1,562 Floorplan-foreign 569 862 944 810 88
Slide 31: Commercial Real Estate: $14.8 Billion
Commercial Real Estate: $14.8 Billion Long-term, meaningful relationships with opportunities for additional cross-sell Improved geographic and project type diversification with the TCF portfolio Specialized national businesses Experienced, proven real estate developer focus Credit Quality Re
Slide 32: Huntington Auto Finance
Huntington Auto Finance Significant presence in our markets and in our industry 12 strategically located regional offices servicing our dealer partners in 27 states Huntington is the 22nd largest auto loan lender and 10th largest auto loan bank lender in the U.S.(1) Huntington is the #1 auto loan le
Slide 33: Automobile: $13.2 Billion
Automobile: $13.2 Billion Extensive relationships with high quality dealers o Huntington consistently in the market for nearly 70 years o Dominant market position in the Midwest with ~4,200 dealers o Floorplan and dealership real estate lending, core deposit relationship, full Treasury Management,
Slide 34: Auto Loans – Origination Trends
Auto Loans – Origination Trends Loan originations from 2014 through 2Q21 demonstrate strong characteristics and continued improvements from pre-2010 Credit scoring model most recently updated in January 2017 ($ in billions) 2021 YTD 2020 2019 2018 2017 2016 2015 2014 Originations $3.4 $5.9 $6.1 $5
Slide 35: Home Equity: $11.3 Billion
Home Equity: $11.3 Billion Focused on geographies within our Midwest footprint with relationship customers Focused on high quality borrowers… portfolio as of 2Q21: o Average weighted FICO scores of 750+ o Average weighted LTVs of <85% for junior liens and <75% for 1st-liens o Approximately 62% a
Slide 36: 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… 2Q21 originations: o Average weighted FICO scores of 750+ o Average weighted LT
Slide 37: Residential Mortgages: $18.7 Billion
Residential Mortgages: $18.7 Billion Traditional product mix focused on geographies within our Midwest footprint Early identification of at-risk borrowers Credit Quality Review 2Q21 1Q21 4Q20 3Q20 2Q20 Period end balance ($ in billions) $18.7 $12.1 $12.1 $12.0 $11.6 30+ days PD and accruing 1.30
Slide 38: Residential Mortgages – Origination Trends
Residential Mortgages – Origination Trends Consistent origination strategy since 2010 HPI Index is at highest level since pre-2007 – consistent with general assessment of the overall market Average 2Q21 portfolio origination: purchased / refinance mix of 55% / 45% ($ in billions) 2021 YTD 2020
Slide 39: 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 40: RV and Marine: $5.0 Billion
RV and Marine: $5.0 Billion Indirect origination via established dealers in 34 states o Entered business in 2016 via FirstMerit acquisition; 2017-2018 expansion into new states Centrally underwritten with focus on super prime borrowers Underwriting aligns with Huntington’s origination standard
Slide 41: RV and Marine – Origination Trends
RV and Marine – Origination Trends Tightened underwriting standards post-FirstMerit acquisition along with geographic expansion, primarily into the Southeast and the West ($ in billions) 2021 YTD 2020 2019 2018 2017 Portfolio originations $0.8 $1.6 $1.0 $1.4 $1.0 Avg. LTV(1) 110.4% 108.0% 105.5% 1
Slide 42: Securities Mix and Yield
Securities Mix and Yield(1) Securities Portfolio Mix Securities Portfolio Yield (Average, $ in billions) Held-to-maturity Available-for-sale 3.25% $30 2.94% 3.00% 2.87% $25 2.79% 2.75% 2.75% 2.54% 2.51% $20 2.50% 2.50% 2.50% 22.9 2.39% 17.5 13.9 2.28% 14.4 14.8 2.39% 13.4 14.0 13.9 13.5 $15 2.25% 2.
Slide 43: AFS and HTM Securities Overview
AFS and HTM Securities Overview(1) June 30, 2021 March 31, 2021 December 31, 2020 ($mm) % of Remaining % of Remaining % of Remaining AFS Portfolio Carry Value Portfolio Life to Maturity Yield Carry Value Portfolio Life to Maturity Yield Carry Value Portfolio Life to Maturity Yield U.S. Treasuries 5
Slide 44: Deposit Growth Driven by Acquisition, Elevated Liquidity
Deposit Growth Driven by Acquisition, Elevated Liquidity Demand deposits drive robust year-over-year growth in core deposits Total Deposit Balances Average Liabilities Quarterly Growth Year-over-Year $142.8 DDA-Nonint. Bearing: +$8.9 35% $112.7 DDA-Int. Bearing: +$5.9 25% $95.0 $95.6 $99.3 65.6 $93.
Slide 45: Ending Deposit Composition: $142.8 Billion
Ending Deposit Composition: $142.8 Billion 2Q21 end of period balances Ending Balance by Type Ending Balance by Segment 2% 0% 3% 1% 3% 6% 15% 32% 23% 24% 67% 24% Demand - Noninterest Bearing $45.2B Consumer and Business Banking $95.7B Demand - Interest Bearing $34.9B Commercial Banking $32.6B Money
Slide 46: Total Core Deposit Trends
Total Core Deposit Trends 2Q21 2Q21 vs 2Q21 vs 2Q21 ($ in billions) Average 1Q21(1) 2Q20 Ending Commercial Demand deposits – noninterest bearing $ 25.3 59) % 31) % $ 31.4 Demand deposits – interest bearing 16.4 30) 15) 18.5 Total commercial DDA 41.7 47) 24) 49.9 Other core deposits(2) 8.9 50) 3) 11.
Slide 47: 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 1.9 1.7 1.6 1.3 1.1 1.0 0.7 0.8 0.5 0.6 0.5 0.5 2016 2017 2018 2019 2020 YTD 6/30/21 Preferred Equity Issued Senior Debt Matured Senior De
Slide 48: Stable, Diversified Sources of Wholesale Funds
Stable, Diversified Sources of Wholesale Funds Smooth runoff profile and optimization of funding costs 1.2 HoldCo Sr. Quarterly Maturities Through 2025 HoldCo Sub 1.0 Bank Sr. 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 49: Capital
Capital
Slide 50: 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 $2.40 EOP Modified Liquidity Coverage Ratio (1) $2.30 222% $2.20 $0.90 $2.10 190% $0.85 86% 85% 188% $2.00 183% 82% $1.90 170% $0.80 $1.80 $0.75 79% 78% $1
Slide 51: Change in Common Shares Outstanding
Change in Common Shares Outstanding Issued 458 million shares in relation to the TCF acquisition There were no shares repurchased in 2Q21 Share count in millions 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 Beginning shares outstanding 1,018 1,017 1,017 1,017 1,014 1,020 1,033 1,038 Employee equity c
Slide 52: Credit Quality
Credit Quality (@) Huntington Welcome:
Slide 53: 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 54: Allowance for Credit Losses (ACL)
Allowance for Credit Losses (ACL) Reserve release and lower net charge-offs offset by accounting treatment on acquired TCF loans $2,322 Multiple scenarios utilized while using May baseline as foundation $1,878 TCF $1,821 $1,866 Huntington standalone reserve release of $1,741 2.50% of $145 millio
Slide 55: Asset Quality and Reserve Trends
Asset Quality and Reserve Trends Underlying asset quality trends positive, overall metrics impacted by acquired TCF portfolio Net Charge-off Ratio ACL and ALLL Ratios ACL Ratio ALLL Ratio 0.54% 0.56% 0.55% 2.27% 2.31% 2.29% 2.17% 2.08% 0.32% 2.21% 2.22% 0.28% 2.12% 2.12% 1.98% 2Q20 3Q20 4Q20 1Q21 2Q
Slide 56: Credit Quality Trends Overview
Credit Quality Trends Overview 2Q21 1Q21 4Q20 3Q20 2Q20 Net charge-off ratio 0.28% 0.32% 0.55% 0.56% 0.54% 90+ days PD and accruing 0.13 0.19 0.21 0.22 0.24 NAL ratio(1) 0.88 0.64 0.65 0.70 0.81 NPA ratio(2) 0.91 0.68 0.69 0.74 0.89 Criticized asset ratio(3) 4.32 3.97 3.91 4.35 4.95 ALLL ratio 1.98
Slide 57: Consumer Loan Delinquencies
Consumer Loan Delinquencies(1) 30+ Days 90+ Days 1.36% 1.18% 1.09% 1.06% 2.28% 2.29% 2.18% 1.88% 0.63% 1.26% 1.30% 1.11% 0.48% 1.03% 0.42% 0.41% 0.90% 0.93% 0.38% 0.80% 0.69% 0.27% 0.54% 0.53% 0.55% 0.16% 0.68% 0.12% 0.12% 0.11% 0.08% 0.51% 0.47% 0.47% 0.52% 0.06% 0.07% 0.07% 0.04% 0.03% 2Q20 3Q20 4
Slide 58: Total Commercial Loan Delinquencies
Total Commercial Loan Delinquencies 30+ Days(1) 90+ Days(2) 0.26% 0.15% 0.15% 0.19% 0.12% 0.03% 0.02% 0.02% 0.02% 0.02% 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 See notes on slide 80 2021 Third Quarter Investor Presentation 58
Slide 59: Net Charge-Offs
Net Charge-Offs Total Commercial Loans Total Consumer Loans ($ in millions) NCOs ($ in millions) NCOs Annualized % Annualized % 0.86% 0.75% 0.85% 0.47% $89 $90 $80 0.51% 0.30% $59 0.24% 0.22% $49 0.16% $27 $24 $22 0.02% $15 $3 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 2021 Third Quarter Inve
Slide 60: Nonperforming Asset Flow Analysis
Nonperforming Asset Flow Analysis End of Period ($ in millions) 2Q21 1Q21 4Q20 3Q20 2Q20 NPA beginning-of-period $544 $563 $602 $713 $586 TCF Additions 630 0 0 0 0 HBAN Additions / increases 115 129 248 190 279 Return to accruing status (46) (33) (108) (47) (25) Loan and lease losses (77) (52) (73)
Slide 61: Criticized Commercial Loan Analysis
Criticized Commercial Loan Analysis End of Period ($ in millions) 2Q21 1Q21 4Q20 3Q20 2Q20 Criticized beginning-of-period $2,871 $2,830 $3,173 $3,601 $2,473 TCF Additions (Net) 1,745 0 0 0 0 Additions / increases 405 339 473 355 1,411 Advances 108 214 86 120 329 Upgrades to “Pass” (253) (148) (395)
Slide 62: Leadership and ESG
Leadership and ESG (@) Huntington Welcome: \ C “
Slide 63: Experienced, Diverse Executive Leadership Team
Experienced, Diverse Executive Leadership Team 8 new ELT members since 2016 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 Operati
Slide 64: 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 65: 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 12 Client / Consumer Marketing, Branding & Communication 6 Technology / Cybersecur
Slide 66: 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 67: Delivering on Our Purpose
Delivering on Our Purpose Our Commitment to Environmental, Social, & Governance (ESG) Our commitment to ESG is a reaffirmation of our long-held commitment to do the right thing for our shareholders, customers, colleagues, and communities. 2020 ESG Report Recent ESG Recognition Ranked #66 overall
Slide 68: 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 69: 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 45% middle and executive management diversity • We’re for People: Making a • Enterprise risk m
Slide 70: Appendix
Appendix
Slide 71: 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 that are not historical facts. Such statements are subject to numerous assumptions
Slide 72: 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 73: Basis of Presentation
Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Notable 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 a
Slide 74: Reconciliation
Reconciliation Pretax Pre-Provision Net Revenue (PPNR) ($ in millions) YTD 2021 2020 2019 2018 2017 Net interest income – FTE $1,822 $3,224 $3,239 $3,219 $3,052 Noninterest income 839 1,591 1,454 1,321 1,307 Total revenue 2,661 4,836 4,693 4,540 4,359 Less: Notable Items 0 0 0 0 2 Less: gain / (loss
Slide 75: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible common equity, ROTCE ($ in millions) 2Q21 Average common shareholders’ equity $12,697 Less: intangible assets and goodwill 3,055 Add: net tax effect of intangible assets 44 Average tangible common shareholders’ equity (A) $9,686 Net income available to common ($58) A
Slide 76: Non-GAAP Reconciliation
Non-GAAP Reconciliation Noninterest expense, EPS Adjusted Noninterest Expense Noninterest Impact of Noninterest ($ in millions) Expense (GAAP) Notable Items Expense (Non- GAAP) Personnel costs $592 $110 $482 Outside data processing and other services 162 33 129 Equipment 55 3 52 Net occupancy 72 35
Slide 77: Non-GAAP Reconciliation
Non-GAAP Reconciliation Efficiency Ratio, NIM, ACL ratio ex. PPP loans Efficiency Ratio ($ in millions) Pre-tax Net Interest Margin (% in percent) 1Q21 2Q21 Noninterest expense (GAAP) $1,072 June 30, 2021 – Net Interest Margin 3.48% 2.66% Less: intangible amortization 11 Interest Rate Caps (0.50%) 0
Slide 78: Notes
Notes Slide 4: (1) For J.D. Power 2021 award information, visit jdpower.com/awards. Huntington received the highest score among regional banks in the J.D. Power 2021 U.S. Banking Mobile App Satisfaction Study of customers’ satisfaction with their financial institution’s mobile applications for banki
Slide 79: Notes
Notes Slide 28: (1) Linked quarter percent change annualized (2) Includes commercial bonds booked as investment securities under GAAP Slide 29: (1) All amounts represent accruing purchased impaired loans; under the applicable accounting guidance (ASC 310-30), the loans were recorded at fair value up
Slide 80: Notes
Notes Slide 42: (1) Trading Account and Other securities excluded Slide 43: (1) End of period (2) Tax-equivalent yield on municipal securities calculated as of June 30, 2021 using 21% corporate tax rate (3) Weighted average yields were calculated using carry value Slide 46: (1) Linked quarter percen
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