Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q2 2009 Earnings Presentation
191 slides from Huntington Bancshares's earnings presentation, Aug 13, 2009
Slide 1: 2009 Third Quarter Investor Handout
August 10, 2009 2009 Third Quarter Investor Handout 1
Slide 2: Table of Contents
Table of Contents Overview Discussion 7 2009 Second Quarter Overview 13 Quarterly Financial Review 17 Quarterly earnings summaries 19 Significant items impacting comparisons 24 Income Statement 25 Net income & EPS 26 Pre-tax, pre-provision income 27 Net interest margin 29 Noninterest income 35 Expen
Slide 3: Basis of Presentation: Use of non-GAAP financial measures
Basis of Presentation 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 operations or financial position. Where non-GAAP financial measures are used
Slide 4: Basis of Presentation: Significant Items
Basis of Presentation 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 outsi
Slide 5: Basis of Presentation: Fully-taxable equivalent
Basis of Presentation Fully-taxable equivalent interest income and net interest margin Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. This adjustment puts all earning assets, most n
Slide 6: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or imp
Slide 7: Overview Discussion
Overview Discussion (Huntington —
Slide 8: 2009 Second Quarter Highlights
2009 Second Quarter Highlights $125.1 million reported net loss or $(0.40) EPS $229.3 million pre-tax, pre-provision income (1), up $4.7 million, or 2%, linked- quarter 3.10% net interest margin, up 13 bps linked-quarter 17% annualized linked-quarter growth in average total core deposits 18% annuali
Slide 9: 2009 Second Quarter Highlights (cont'd)
2009 Second Quarter Highlights (cont'd) Strengthened liquidity position $1.3 billion increase in cash on the balance sheet and $1.8 billion increase in unpledged investment securities since December 31, 2008 $8.0 billion borrowing capacity Improved loan-to-deposit ratio to 98% at June 30, down from
Slide 10: 2009 Outlook
2009 Outlook No significant economic turnaround expected by year-end Net charge-offs, provision expense, and loan loss reserves likely to remain elevated Modest but steady improvement in pre-tax, pre-provision income from 2Q09 Net interest margin is expected to be flat to slightly improving from the
Slide 11: Important Messages
Important Messages Good progress on improving pre-tax, pre-provision performance Improving our loan and deposit pricing discipline Focus on growing core deposits is gaining traction Opportunities to grow fee income exist Will maintain expense discipline Have an improved understanding of risks in our
Slide 12: 2009 Second Half Goals
2009 Second Half Goals Objectives Improving pre-tax, pre-provision income from 1H09 Grow core deposits Complete strategic plan and begin implementation Complete colleague survey and develop 2010 action plans Complete 2010 budget 12
Slide 13: 2009 Second Quarter Overview
2009 Second Quarter Overview 13
Slide 14: 2Q09 Earnings Summary
2Q09 Earnings Summary After-tax EPS Net loss $(125.1) MM Net loss applicable to common shares $(182.5) MM $(0.40) Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Gain on the redemption of junior subordinated debt $67.4 MM $0.10 Gain related to Visa (r) stock 31.4 0.04 Preferred stock
Slide 15: Pre-tax, Pre-provision Income
Pre-tax, Pre-provision Income (1) $4.7 MM Linked-Quarter Increase Reflected: Better/(Worse) Higher net interest income $12.4 MM Higher service charges on deposits 5.5 Lower occupancy expense 4.8 Lower personnel expense 4.2 Higher OREO costs (16.6) Lower brokerage and insurance income (7.9) All other
Slide 16: Quarterly Performance Highlights
Quarterly Performance Highlights 2Q09 1Q09 4Q08 3Q08 2Q08 EPS $(0.40) $(6.79) $(1.20) $0.17 $0.25 Pre-tax pre-provision income ($MM) (1) $229.3 $224.6 $199.6 $310.8 $265.7 Net interest margin 3.10% 2.97% 3.18% 3.29% 3.29% Efficiency ratio (2) 51.0% 60.5% 64.6% 50.3% 56.9% Loan & lease growth (3) (18
Slide 17: 2009 - 2008 Quarterly Financial Review
2009 - 2008 Quarterly Financial Review 17
Slide 18: Quarterly Earnings
Quarterly Earnings (sy Net interest income Provision Noninterest income Noninterest expense Pre-tax income/(loss) Net Incomer(loss) EPS NM - not meaningful 2009 _ $49.9 (413.7) ¥ $ 1909 (291.8) 239.1 (2,969.8) (2,685.0) (2,433.2) (6.79) $ 375 Amt. $ 124 (121.9) Change Better (Worse) \s. 1Q09 2008 ia
Slide 19: 1Q09 Earnings Summary
1Q09 Earnings Summary After-tax EPS Net loss $(2,433.2) MM Net loss applicable to common shares $(2,492.0) MM $(6.79) Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Goodwill impairment charge $(2,602.7) MM $(7.09) Preferred stock conversion deemed dividend NA (0.08) Franklin relation
Slide 20: 4Q08 Earnings Summary
4Q08 Earnings Summary After-tax EPS Net loss $(417.3) MM Net loss applicable to common shares $(440.4) MM $(1.20) Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Visa(r) indemnification $4.6 MM $0.01 Visa(r)- related deferred tax valuation allowance provision (2.9) (2) (0.01) (1) Impa
Slide 21: 3Q08 Earnings Summary
3Q08 Earnings Summary After-tax EPS Net income $75.1 MM Net income applicable to common shares $63.0 MM $0.17 Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Visa(r)- related deferred tax valuation allowance provision $(3.7) MM(2) $(0.01) (1) Impact on GAAP earnings; pre-tax unless ot
Slide 22: 2Q08 Earnings Summary
2Q08 Earnings Summary After-tax EPS Net income $101.4 MM Net income applicable to common shares $90.2 MM $0.25 Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Visa(r)- related deferred tax valuation allowance benefit $3.4 MM (2) $0.01 Merger / restructuring costs (14.6) (0.03) (1) Imp
Slide 23: 1Q08 Earnings Summary
1Q08 Earnings Summary After-tax EPS Net income $127.1 MM $0.35 Significant Items Favorable/(Unfavorable) Earnings (1) EPS (2) Aggregate impact of Visa (r) IPO (3) $37.5 MM $0.07 Visa(r)-related deferred tax valuation allowance benefit 11.1 (2) 0.03 Merger costs (7.3) (0.01) (1) Impact on GAAP earnin
Slide 24: Quarterly Significant Items Impacting Comparisons - Reconciliation
2009 - 2008 Quarterly 24 Significant Items (1) Impacting Financial Performance Comparisons - Reconciliation
Slide 25: Income Statement
Income Statement (Huntington —
Slide 26: Net Income and EPS
Amount 3Q02 0.36 4Q02 0.29 1Q03 0.39 2Q03 0.42 3Q03 0.39 0.06 4Q03 0.4 1Q04 0.45 2Q04 0.47 3Q04 0.4 4Q04 0.39 1Q05 0.41 2Q05 0.45 3Q05 0.47 4Q05 0.44 1Q06 0.45 2Q06 0.46 3Q06 0.46 0.19 4Q06 0.375 1Q07 0.4 2Q07 0.34 3Q07 0.38 4Q07 -0.65 1Q08 0.35 2Q08 0.25 3Q08 0.17 4Q08 -1.2 1Q09 -6.79 2Q09 -0.4 Amo
Slide 27: Pre-tax, Pre-provision Income
Pre-tax, Pre-provision Income (1) 27 1Q08 234.5 2Q08 265.7 3Q08 310.8 4Q08 199.6 1Q09 224.6 2Q09 229.3 (1) See Basis of Presentation for definition, as well as reconciliation slide # 29 Linked-quarter % Change 2% 13%
Slide 28: Pre-tax, Pre-provision Income - Reconciliation
Pre-tax, Pre-provision Income - Reconciliation (1) 28
Slide 29: Net Interest Margin
Amount 1Q04 0.0336 2Q04 0.0329 3Q04 0.033 4Q04 0.0338 0.0332 1Q05 0.0331 2Q05 0.0336 3Q05 0.0331 4Q05 0.0334 1Q06 0.0332 2Q06 0.0334 3Q06 0.0322 4Q06 0.0328 1Q07 0.0336 2Q07 0.0326 3Q07 0.0352 4Q07 0.0326 1Q08 0.0323 2Q08 0.0329 3Q08 0.0329 4Q08 0.0318 1Q09 0.0297 2Q09 0.031 Amount 1Q04 225.708 2Q04
Slide 30: Net Interest Margin - Yields & Rate Trends
Net Interest Margin - Yields & Rate Trends 30 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 E/A Yield 0.0572 0.0542 0.0523 0.0511 0.0489 0.0476 0.0489 0.0505 0.0521 0.0552 0.0572 0.0601 0.0621 0.0655 0.0673 0.0686 0.
Slide 31: Managing Interest Rate Risk
Managing Interest Rate Risk Net Interest Income at Risk = Interest Rate Risk + Business Risk Interest Rate Risk The exposure of income (short-term interest rate risk) and economic values (long-term interest rate risk) to changes in market interest rates Business Risk Examples: Credit and liquidity r
Slide 32: Managing Interest Rate Risk: Philosophy
Managing Interest Rate Risk Philosophy Relatively stable net interest margin Maintain long-term perspective... avoid speculating on the short-term movement in interest rates Policy metrics to manage interest rate risk include: Net interest income at risk simulation model - short-term interest rate r
Slide 33: Net Interest Income at Risk
Net Interest Income at Risk Forward Curve +2%, -2%, & -1% Gradual Change in Rates Managing Interest Rate Risk 2% Rate Rise 2% Rate Fall 1% Rate Fall 2Q01 -0.021 3Q01 -0.017 4Q01 -0.012 1Q02 -0.016 2Q02 -0.013 3Q02 -0.005 4Q02 -0.007 -0.002 1Q03 -0.006 -0.001 2Q03 -0.008 -0.001 3Q03 -0.01 -0.003 4Q03
Slide 34: Managing Interest Rate Risk: Modeled Exposure
Managing Interest Rate Risk Modeled Exposure Net Interest Income at Risk (S-T measure) (1) bp change (200) bp (100) bp +100 bp +200 bp 6/30/09 (1.5)%(3) (1.2)%(3) 0.8 % 1.8 % 3/31/09 (0.4)%(3) (1.6)%(3) 1.7 % 3.0 % 12/31/08 (0.3)%(3) (0.9)%(3) 0.6 % 1.1 % 9/30/08 (2.3) (0.7) 0.5 0.8 6/30/08 (0.3) 0.
Slide 35: Noninterest Income Trends Linked Quarter
Noninterest Income Trends 35 Linked Quarter
Slide 36: Noninterest Income Trends Prior-year Quarter
Noninterest Income Trends 36 Prior-year Quarter
Slide 37: Mortgage Banking Income
Mortgage Banking Income ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 Origination & secondary marketing $31.8 $30.0 $7.2 $7.6 $13.1 Servicing fees 12.0 11.8 11.7 11.8 11.2 Amortz. capitalized servicing (14.4) (12.3) (6.5) (6.2) (7.0) Other mortgage banking income 5.4 9.4 3.0 3.5 6.0 Sub-total 34.8 38.9 15.3 16.8 2
Slide 38: Noninterest Income Trends
Noninterest Income Trends 4Q07 200.032 1Q08 201.322 2Q08 218.342 3Q08 210.795 4Q08 199.213 1Q09 222.182 2Q09 219.751 Mrtg Bnk MSR-related Sec. gains (losses) Other (1) 4Q07 -11.766 -11.551 -6.158 1Q08 -24.706 1.429 57.707 2Q08 -10.697 2.073 26.712 3Q08 -6.468 -73.79 37.32 4Q08 -22.084 -127.082 17.05
Slide 39: Service Charge Income
Service Charge Income 3Q04 43.9 4Q04 41.7 1Q05 39.4 2Q05 41.5 3Q05 44.8 4Q05 42.1 1Q06 41.2 2Q06 47.2 3Q06 48.7 4Q06 48.5 1Q07 44.8 2Q07 50 3Q07 54 24.1 4Q07 81.3 1Q08 72.67 2Q08 79.63 3Q08 80.508 4Q08 75.247 1Q09 69.878 2Q09 75.353 Electronic Bnkg 4Q05 11.5 1Q06 11.5 2Q06 13 3Q06 13 4Q06 13.8 1Q07
Slide 40: Trust and Brokerage / Insurance Income
3Q04 13.2 4Q04 12.9 1Q05 13 2Q05 13.5 3Q05 13.9 4Q05 13.1 1Q06 15.2 2Q06 14.3 3Q06 14.7 4Q06 14.6 1Q07 16.1 2Q07 17.2 3Q07 28.8 4Q07 30.3 1Q08 36.6 2Q08 35.694 3Q08 34.309 4Q08 31.233 1Q09 39.948 2Q09 32.052 Trust and Brokerage / Insurance Income 3Q04 17.1 4Q04 17.3 1Q05 18.2 2Q05 19.1 3Q05 19.7 4Q0
Slide 41: Expense Trends Linked Quarter
Expense Trends Linked Quarter 41
Slide 42: Expense Trends Prior-year Quarter
Expense Trends 42 Prior-year Quarter
Slide 43: Noninterest Expense Trends
Noninterest Expense Trends Personnel Other 1Q08 201.943 149.621 2Q08 199.991 177.812 3Q08 184.827 154.169 4Q08 196.785 193.309 1Q09 175.932 191.124 2Q09 171.735 164.016 4Q07 11925 1Q08 11787 2Q08 11251 3Q08 10901 4Q08 10951 1Q09 10540 2Q09 10252 Noninterest Expense (1) Number of Employees (FTE) ($MM
Slide 44: Noninterest Expense Trends
Noninterest Expense Trends Outside Data Processing & Other Services Other Expense ($MM) ($MM) 44 (1) Cost to Franklin for loan servicing beginning 2Q09 (1)
Slide 45: Efficiency Ratio Trends
2Q08 3Q08 4Q08 1Q09 2Q09 Efficiency Ratio - Reported 0.569 0.503 0.646 0.605 0.51 Efficiency Ratio - Adjusted 0.54 0.496 0.837 0.598 0.604 Efficiency Ratio Trends (1) Reported revenue and expenses adjusted for automobile operating lease expense and other items affecting comparability including merge
Slide 46: Operating Leverage & Efficiency Ratio Trends
Operating Leverage & Efficiency Ratio Trends 46
Slide 47: Balance Sheet
Balance Sheet (Huntington
Slide 48: Balance Sheet — Assets
Balance Sheet — Assets ‘hanes 200 he We 08 Gomi) ‘une 99, Decentar3t, ne 0, at s 2m $0 or §1t@ wo mae a %8 ie 196) 1000% = 2 oo o 2i% * = 4.056 (4000) -91.9% Py x0 = ot sat soa at nr et 13320 fas tae am) at 00 10.00 8701 a6 206 Zee Cte) 0% 7288 001 378 )-2h0% = 9 (a2) 41% 709t 150 7a10 30% 4 4701 40
Slide 49: Balance Sheet - Liabilities & Shareholders' Equity
Balance Sheet - Liabilities & Shareholders' Equity 49
Slide 50: Investment Securities
Investment Securities (Huntington
Slide 51: Investment Securities
Investment Securities Average Balances % of Average Earning Assets ($MM) Investment Securities 4Q05 4290 0.0496 1Q06 4686 0.0523 2Q06 5050 0.0551 3Q06 4945 0.0564 4Q06 4386 0.0613 1Q07 4186 0.0621 2Q07 3882 0.062 3Q07 4626 0.0619 4Q07 4496 0.061 1Q08 4477 0.0588 2Q08 4688 0.0569 3Q08 4687 0.0573 4Q0
Slide 52: AFS Securities Overview - 6/30/09
AFS Securities Overview - 6/30/09 52
Slide 53: Investment Securities - Assessment
Investment Securities - Assessment (1) 53 Par Value Book Value Market Value OCI Alt-A mortgage backed $421 MM $286 MM $274 MM $(12) MM - Purchased 2006 % to Par Value 65% - 20 securities - senior tranche - 10/1 ARMs or 15 / 30 year fixed; no option ARMs - Cash flow analysis performed monthly to test
Slide 54: Available for Sale Securities Mix
Mortgage Backed Agency Asset Backed Muni's Treasuries TLGP Debt Other 12/31/03 0.448 0.234 0.13 0.088 0.061 0 0.039 12/31/04 0.337 0.228 0.283 0.098 0.005 0 0.049 12/30/05 0.3695 0.0732 0.3952 0.1204 0.0043 0 0.0374 12/31/06 0.429 0.034 0.362 0.136 0.001 0 0.038 12/31/07 0.521 0.033 0.193 0.154 0 0
Slide 55: Investment Securities - Credit Quality
AAA AA A BBB Not Rated / BBB- and lower FRB & FHLB Stock 12/03 0.798 0.088 0.057 0.022 0.018 0.017 12/04 0.6 0.09 0.25 0.05 0.01 0.02 12/05 0.581 0.145 0.235 0.038 0 0.02 12/06 0.8233 0.062 0.094 0.021 0 0.035 12/07 0.891 0.047 0.057 0.001 0.004 0.093 12/08 0.689 0.142 0.076 0.016 0.077 0.099 6/09 0
Slide 56: Loan Portfolio Overview
Loan Portfolio Overview (Huntington
Slide 57: Credit Exposure Composition
Credit Exposure Composition ($MM) 6/30/09 6/30/09 6/30/09 12/31/08 12/31/08 12/31/08 12/31/07 12/31/07 12/31/07 12/31/06 12/31/06 12/31/06 12/31/05 12/31/05 12/31/05 Amt Pct Amt Pct Amt Pct Amt Pct Amt Pct Commercial & industrial $13.3 34 % $13.5 33 % $13.1 33 % $7.8 30 % $6.8 28 % Commercial real e
Slide 58: Credit Portfolio Overview
Other (11 states) 0.077 Kentucky 0.027 Florida 0.036 West Virginia 0.051 Pennsylvania 0.055 Indiana 0.067 Michigan 0.14 Ohio 0.547 Credit Portfolio Overview EOP Outstandings - $38.5 Billion (1) ($B) 58 By State $21.0 $5.4 $2.6 $1.4 $2.1 $2.0 $1.0 $3.0 (1) 6/30/09
Slide 59: Loan and Lease Trends Linked Quarter - Average
Loan and Lease Trends 59 Linked Quarter - Average
Slide 60: Loan and Lease Trends Prior-year Quarter - Average
Loan and Lease Trends 60 Prior-year Quarter - Average
Slide 61: Total Loans - By Business Segment
Total Loans - By Business Segment ($B) Regional & Business Banking Commercial Banking Commercial Real Estate AFDS PFG Treasury / Other Total C&I $3.5 $7.3 $0.5 $1.2 $1.1 $-- $13.5 CRE 1.5 0.9 6.7 -- 0.1 -- 9.2 Total commercial 4.9 8.2 7.2 1.2 1.2 -- 22.7 Automobile loans/leases -- -- -- 3.3 -- -- 3.
Slide 62: Total Commercial Loans
Total Commercial Loans (Huntington —
Slide 63: Total Commercial Loans By Industry Sector
Public Admin & Other 0.0083 Agriculture 0.0098 Energy 0.0196 Transportation 0.0367 Wholesale Trade 0.0387 Construction 0.0548 Retail Trade 0.0949 Manufacturing 0.109 Services 0.2178 Finance, Insurance, RE 0.41 Total Commercial Loans By Industry Sector EOP Outstandings - $22.3 Billion (1) 63 $9.1 $4.
Slide 64: Total Commercial Loans by Size
< $5 MM 41542 $5+ MM 810 Total Commercial Loans # of Loans by Size Loans by Dollar Size (1) $5 MM - < $10 MM 481 $10 MM - < $25 MM 275 $25 MM - < $50 MM 47 > $50 MM 7 Total 810 EOP Outstandings - $22.3 Billion (1) < $5 MM 0.574 $5 MM - < $10 MM 0.1529 $10 MM - <$25 MM 0.1866 $25 MM - < $50 MM 0.0643
Slide 65: Total Commercial Loans Average Balances
Total Commercial Loans Average Balances ($B) C&I CRE Small Business C&I/CRE 1Q04 4.44 3.149 1.974 2Q04 4.555 3.191 2.018 3Q04 4.298 3.427 2.081 4Q04 4.503 3.429 2.136 1Q05 4.71 3.525 2.183 2Q05 4.901 3.583 2.23 3Q05 4.708 3.642 2.251 4Q05 4.95 3.6 2.23 1Q06 6.773 4.357 2.035 2Q06 7.287 4.669 2.351 3
Slide 66: Commercial Loans - Risk Grade Distribution
Commercial Loans - Risk Grade Distribution by % 66 Risk Grade 1-3 (A1) 4 (Ba1) 5 (Ba2) 6 (Ba3) 7 (B1) 8 (B2) 9 (OLEM) 10+ (Classified) Q308 0.03 0.12 0.14 0.22 0.2 0.15 0.04 0.1 Q408 0.03 0.12 0.14 0.22 0.2 0.15 0.04 0.1 Q109 0.03 0.11 0.14 0.22 0.2 0.16 0.04 0.1 Q209 0.02 0.1 0.13 0.18 0.19 0.18 0.
Slide 67: Commercial Loan Delinquencies
Commercial Loan Delinquencies (1) 30+ Days 90+ Days With 1Q08 0.0018 2Q08 0.0014 3Q08 0.0035 4Q08 0.003 1Q09 0 2Q09 0 With 1Q08 0.016 2Q08 0.0106 3Q08 0.0145 4Q08 0.0166 1Q09 0.0095 2Q09 0.0125 (1) Period end; delinquent but accruing as a % of related outstandings at EOP 67
Slide 68: Commercial and Industrial Loans (C&I)
Commercial and Industrial Loans (C&I) 68
Slide 69: C&I - Portfolio Composition By Industry
69 Other 0.001 Public administration 0.009 Energy 0.015 Agriculture and forestry 0.031 Wholesale Trade 0.038 Transportation, communication & utilities 0.054 Contractors & construction 0.063 Retail trade- auto dealers 0.067 Retail trade- other 0.086 Finance, insurance & real estate 0.164 Manufacturin
Slide 70: C&I - Portfolio Composition By Obligor Size
70 <$500M 0.2157 $500M - <$1MM 0.1006 $1MM - <$5MM 0.3103 $5MM - <$10MM 0.1476 $10MM - <$20MM 0.1293 $20MM - <$50MM 0.068 $50MM and greater 0.0285 C & I - Portfolio Composition By Loan Outstanding Obligor Size & Number of Obligors 70 5 34 127 284 1,950 1,900 30,622 EOP Outstandings - $13.3 Billion (
Slide 71: C&I - Change Analysis
C&I - Change Analysis ($MM) Total C&I March 31, 2009 balance $13,768 New originations 148 Net pay-offs / takedowns (479) Charge-offs (98) Classification changes (19) June 30, 2009 balance $13,320 71 By Activity
Slide 72: C&I Portfolio Characteristics and Credit Quality Trends
EOP Outstandings - $13.3 Billion (2) Diversified by sector and geographically within our Midwest footprint Granular 5 loans >$50 million... 3% of portfolio 34 loans $20-$50 million... 7% of the portfolio Focus on middle market companies with $10-$100 MM in sales 2Q09 portfolio originations associate
Slide 73: C&I - Credit Quality By Segment
73 By Segment - 6/30/09 73 C & I - Credit Quality ($MM) O/S 30+ PD Accruing Class. NAL's ACL C & I (Excluding segments below) $12,105 0.75% 8.03% 3.16% 2.39% Residential homebuilder related 491 0.90 19.88 4.78 4.34 Construction & contractors 496 1.71 12.62 5.27 3.98 Auto industry suppliers 228 3.19
Slide 74: C&I - Credit Quality
74 C & I - Credit Quality 74 Net Charge-offs Net Charge-offs Net Charge-offs Nonaccrual Loans Nonaccrual Loans ($ MM) Amount Pct. (2) % of Total Amount Pct. (3) Services $19.8 1.99% 20.1% $113.5 2.8% Manufacturing 39.6 6.67 40.3 109.6 4.6 Finance, insurance & real estate 15.1 2.71 15.4 74.8 3.4 Reta
Slide 75: C&I - Auto Industry
75 C & I - Auto Industry (1) Outstandings (2) ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 Suppliers Domestic $ 196 $ 209 $ 182 $ na $ na Foreign 33 33 33 na na Total suppliers 228 242 215 216 237 Dealers Floorplan-domestic 444 549 553 na na Floorplan-foreign 339 395 408 na na Total floorplan 783 944 961 745 839
Slide 76: Commercial Real Estate Loans (CRE)
Commercial Real Estate Loans (CRE) 76
Slide 77: CRE - Portfolio Composition
77 Construction Mini-Perm Permanent Non Project Loans Line/Letter of Credit 0.1552 0.4106 0.2813 0.1091 0.0438 CRE - Portfolio Composition By Property Location By Loan Type EOP Outstandings - $8.9 Billion (1) Permanent 28% Mini-perm 41% Construction 16% Non Project Loans 11% 77 Other (33) 0.1254 Ken
Slide 78: CRE - Portfolio Composition by Property Type and Location
78 CRE - Portfolio Composition - 6/30/09 78 By Property Type and Property Location ($MM) OH MI PA IN WV FL KY Other Total % Port. Retail properties $921 $265 $161 $217 $48 $86 $1 $592 $2,301 25.7% Multi family 836 142 103 76 79 7 40 130 1,413 15.8 Single family homebuilders 684 122 63 37 20 135 26 7
Slide 79: CRE - Change Analysis
CRE - Change Analysis ($MM) SFHB Retail Other Total CRE March 31, 2009 balance $1,240 $2,368 $5,653 $9,261 New originations 0 0 30 30 Net pay-offs / takedowns (33) (9) (83) (125) Charge-offs (52) (54) (67) (173) Classification changes 7 (4) (50) (47) June 30, 2009 balance $1,162 $2,301 $5,483 $8,946
Slide 80: CRE Portfolio Characteristics
EOP Outstandings - $8.9 Billion (1) Granular portfolio with geographic and project diversification throughout our footprint Construction lending targeted to major metro markets Minimal new production - footprint projects to existing borrowers - no SFHB or Retail Single Family Homebuilder ($1.2 Billi
Slide 81: CRE - Credit Quality Overview
81 By Segment - 6/30/09 81 CRE - Credit Quality Overview ($MM) O/S 30+ PD Accruing Class. NAL's ACL Write-downs % CRE (Exc. SFHB & Retail) $5,483 1.30% 12.96% 5.41% 3.06% 1.85% Single family homebuilder 1,162 3.65 46.40 24.97 8.81 8.33 Retail 2,301 2.10 17.80 11.47 4.76 3.52 Total CRE $8,946 1.81% 1
Slide 82: CRE - Credit Quality
82 CRE - Credit Quality 82 ($ MM) Net Charge-offs Net Charge-offs Net Charge-offs Nonaccrual Loans Nonaccrual Loans Amount Pct. (2) % of Total Amount Pct. (3) Retail properties $53.8 9.35% 31.2% $263.9 11.5% Multi-family 17.4 4.72 10.1 104.5 7.4 Single family homebuilders 52.2 17.98 30.2 290.0 25.0
Slide 83: CRE - Single Family Homebuilders
EOP Outstandings - $1.2 Billion (1) Portfolio Characteristics Granular portfolio - only 17 projects over $10 million Geographic diversification Primary customers are middle market builders building 50-100 homes per year, limited production builder exposure Continuous monitoring Increased reserves ba
Slide 84: CRE - Single Family Homebuilder - Credit Quality
EOP Outstandings - $1.2 Billion (1) Portfolio Performance 84 CRE - Single Family Homebuilder - Credit Quality ($MM) 2Q09 1Q09 (4) 4Q08 3Q08 2Q08 30+ days PD & accruing (2,3) - $ $263 $267 $228 $229 $159 - % 22.6% 21.5% 14.4% 14.4% 9.7% Classified (2) - $ $539 $480 $369 $287 $245 - % 46.4% 38.7% 23.2
Slide 85: CRE - Retail
85 (1) 6/30/09 (2) End of period CRE - Retail ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 Community centers $1,180 1,222 na na na Mixed / lifestyle 262 259 na na na Regional centers 191 194 na na na Credit / freestanding 294 304 na na na Other 374 388 na na na Retail exposure trends (2) $2,301 $2,367 $2,241 $2,1
Slide 86: CRE - Retail - Credit Quality
EOP Outstandings - $2.3 Billion (1) Portfolio Performance 86 CRE - Retail - Credit Quality ($MM) 2Q09 1Q09 (4) 4Q08 3Q08 2Q08 30+ days PD & accruing (2,3) - $ $217 $121 $137 $95 $78 - % 9.43% 5.11% 5.1% 3.6% 3.1% Classified (2) - $ $410 $289 $165 $131 $98 - % 17.8% 12.2% 6.1% 4.9% 3.9% NALs (include
Slide 87: Total Consumer Loans and Leases
Total Consumer Loans and Leases 87
Slide 88: Consumer Loans and Leases - 6/30/09
Auto loans 0.176 Auto leases 0.024 Home equity 0.47 Residential mortgage 0.286 Other consumer 0.044 Consumer Loans and Leases - 6/30/09 By Type ($MM) Amt Pct Auto loans $2.9 18 % Auto leases 0.4 2 Home equity * 7.6 47 Residential real estate 4.6 29 Other consumer 0.7 4 Total consumer $16.2 100 % * H
Slide 89: Credit Risk Management
89 Credit Risk Management Objective Manage the Probability of Default Footprint Portfolio... markets we know and understand Client Selection... bias for high quality customers and relationship lending vs. third party originations Disciplined Underwriting... borrower ability to repay, collateral valu
Slide 90: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) 30+ Days 90+ Days Reported ex. GNMA FAS 140 ex. GNMA FAS 140 + FCMC 1Q08 0.0089 0.0056 2Q08 0.0089 0.0052 3Q08 0.0093 0.0054 4Q08 0.0115 0.0068 1Q09 0.0138 0.0085 2Q09 0.0152 0.009 0.0086 Reported ex. GNMA FAS 140 ex. GNMA FAS 140 + FCMC 1Q08 0.0285 0.0243 2Q08 0.0282
Slide 91: Consumer Loan Delinquencies
Consumer Loan Delinquencies (1) 30+ Days 90+ Days (1) Period end; delinquent but accruing as a % of related outstandings at EOP; Excluding GNMA FAS 140 and Franklin (see slide in appendix for GAAP delinquencies) 91
Slide 92: Automobile Loans & Leases
Automobile Loans & Leases (Huntington
Slide 93: Automobile Loans and Leases Balances
Auto Direct Finance Leases Auto Operating Leases 3Q02 0.461 2.597 4Q02 0.759 2.328 1Q03 1.006 2.076 2Q03 1.306 1.802 3Q03 1.59 1.565 4Q03 1.802 1.355 1Q04 1.99 1.17 2Q04 2.139 0.97 3Q04 2.25 0.79 4Q04 2.388 0.64 1Q05 2.461 0.51 2Q05 2.468 0.39 3Q05 2.424 0.29 4Q05 2.34 0.22 1Q06 2.221 0.16 2Q06 2.1
Slide 94: Auto Lending - Credit Risk Management Strategies
94 Auto Lending - Credit Risk Management Strategies Performance Drivers Borrower quality - as measured at origination by FICO score - Super Prime with consistent increasing trend FICO score distribution - consistent decline in <670 levels Custom Score - utilized to further segment FICO eligible appl
Slide 95: Auto Portfolio Characteristics and Credit Quality Trends
EOP Outstandings - $3.2 Billion (1) Consistency of strategy and commitment to dealers Focus on high service quality and high quality full dealer relationships Since 2001 focused on super-prime customers... >740 FICOs and >750 FICOs in 1H08 Fully automated origination and booking system Credit Qualit
Slide 96: Auto Loans - Portfolio Composition by Rescored FICO
Auto Loans - Portfolio Composition by Rescored FICO Accounts with updated FICO scores <600 have remained constant over time, and showed a slight decline with the November 2008 re-score results The bulk of the portfolio losses in a 12-month period come from the <600 re-score segment 96 6/07 9/07 12/0
Slide 97: Auto Loans & Leases - Production
Auto Loans & Leases - Production ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 Loans Production $ 280 $ 399 $ 360 $ 501 $ 673 $ 679 $ 487 $ 474 % new vehicles 21% 31% 41% 41% 44% 44% 44% 47% Avg. LTV (1) 95% 93% 93% 96% 96% 93% 95% 98% Avg. FICO (1) 759 756 751 751 752 752 745 743 Leases (2) Product
Slide 98: Auto Loans - Credit Quality Overview
Auto Loans - Credit Quality Overview 2Q09 1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 Portfolio Performance Portfolio Performance 30+ days PD & accruing % 2.06% 2.20% 2.09% 1.68% 1.43% 1.45% 1.94% 1.55% Year-to-Date NCO % 1.63% 1.56% 1.12% 0.98% 0.95% 0.97% 0.65% 0.53% Origination Quality Origination Quality
Slide 99: Auto Loans Accruing Delinquency and Net Charge-offs
Auto Loans Accruing Delinquency Net Charge-offs 99 0.23% 0.26% 0.33% 0.36% 0.31% 1.43% 1.68% 2.09% 2.20% 2.06% ($MM) L-Q % Change in $ (9)% (1) (1) 2Q09 reflects impact of $1.0 B 1Q09 securitization
Slide 100: Auto Loans - Origination Analysis
Auto Loans - Origination Analysis 100 Originations and Estimated Annualized Loss Rate ($MM) Estimated Annualized Loss Rate
Slide 101: Auto Loans - Vintage Performance
Auto Loans - Vintage Performance 101 Cumulative Loss
Slide 102: Auto Loans - Loss Rate Trends
Auto Loans - Loss Rate Trends Dramatic improvement in the early stage loss performance for the late 2007 and early 2008 vintages Losses peak in the 18-24 month range, and as 2008-2009 vintages make up a greater portion of the portfolio and reach their peak loss months, portfolio losses should declin
Slide 103: Residential Real Estate Loans
Residential Real Estate Loans 103
Slide 104: Residential Real Estate Loans Average Balances
104 Home Equity Loans/Lines Residential Mortgages Other 1Q04 3.833 2.674 0.402 2Q04 4.145 2.986 0.397 3Q04 4.408 3.484 0.39 4Q04 4.585 3.695 0.383 1Q05 4.676 3.919 0.374 2Q05 4.75 4.08 0.377 3Q05 4.801 4.157 0.387 4Q05 4.781 4.17 0.393 1Q06 4.833 4.31 0.447 2Q06 5.029 4.63 0.448 3Q06 5.041 4.748 0.4
Slide 105: Residential Real Estate Trends
Residential Real Estate Trends ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 Home equity loans / lines $7,640 $7,577 $7,523 $7,453 $7,365 Residential mortgage 4,657 4,611 4,737 4,812 5,178 Interest only 625 678 697 699 702 Alt-A 410 436 450 468 484 Total $12,297 $12,188 $12,260 $12,265 $12,543 Average Outstandings
Slide 106: Origination Strategies
Origination Strategies Focused on the Huntington core markets Utilize the Huntington office network as the primary source Traditional product mix - very limited nontraditional mortgage exposure Never originated sub-prime loans... payment option ARM structures... or negative amortization loans Polici
Slide 107: Home Equity Loans and Lines
Home Equity Loans and Lines 107
Slide 108: Home Equity Loans / Lines Average Balances
HBAN HBAN 1Q03 3194 2Q03 3313 3Q03 3448 4Q03 3640 1Q04 3833 2Q04 4145 3Q04 4408 4Q04 4585 1Q05 4676 2Q05 4750 3Q05 4801 4Q05 4781 1Q06 4833 2Q06 5029 3Q06 5041 4Q06 4973 1Q07 4913 2Q07 4973 3Q07 5083 2385 4Q07 7297 1Q08 7274 2Q08 7365 3Q08 7453 4Q08 7523 1Q09 7577 2Q09 7640 Home Equity Loans / Lines
Slide 109: Home Equity - Credit Risk Management Strategies
109 Home Equity Loans / Lines - Credit Risk Management Strategies Performance Drivers Lien Position - 40%, or $2.8 B, of the portfolio is secured by a 1st mortgage Payments - 70% of borrowers consistently make more than required payment Borrower quality - as measured at origination by FICO score - c
Slide 110: Home Equity Portfolio Characteristics and Credit Quality
EOP Outstandings - $7.6 Billion (1) Focused on geographies within our Midwest footprint Focused on high quality borrowers... >730 FICOs Began exit of broker channel in 2005... <10% of outstandings today Conservative underwriting - manage the probability of default 70%+ of HELOC borrowers consistentl
Slide 111: Home Equity Loans / Lines - LTV, FICO, Originations
Home Equity Loans / Lines - LTV, FICO, Originations (1) Primarily fixed-rate (2) Weighted average LTVs are cumulative LTVs reflecting the balance of any senior loans (3) Weighted average FICOs reflect currently updated customer credit scores (4) Weighted average at origination (5) Primarily variable
Slide 112: Home Equity Loans & Lines - Originations
Home Equity Loans & Lines - Originations 112 Volume FICO
Slide 113: Home Equity Loans and Lines Net Charge-offs
Home Equity Loans and Lines Net Charge-offs 113 0.36% 0.31% 0.38% 0.47% 0.46% 1.18% 1.18% 1.61% 1.49% 1.54% ($MM) L-Q % Change in $ 2% Accruing Delinquency (1) Reflects a few larger size losses associated with home builders and more active treatment decisions associated with loss mitigation and shor
Slide 114: Home Equity Loans & Lines - Delinquencies
Home Equity Loans & Lines - Delinquencies 114 $ Delinquent $ Outstanding
Slide 115: Home Equity Lines - Utilization and Customer Rate
Home Equity Lines - Utilization and Customer Rate 115 Utilization Rate Customer Interest Rate % % % % % % %
Slide 116: Home Equity Lines - Vintage Performance
Home Equity Lines - Vintage Performance 116 Months on Books Cumulative Loss
Slide 117: Home Equity Loans - Vintage Performance
Home Equity Loans - Vintage Performance 117 Cumulative Loss Months on Books
Slide 118: Residential Mortgages
Residential Mortgages (Huntington
Slide 119: Residential Mortgages Average Balances
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 HBAN 1819 1870 2075 2501 2674 2986 3484 3695 3919 4080 4157 4165 4306 4629 4748 4635 4496 4351 4344 5437 5351 5178 4812 4737 4611 4657 1112 Residential Mortgages (Avg. $M
Slide 120: Residential Mortgage - Credit Risk Management Strategies
120 Residential Mortgage - Credit Risk Management Strategies Performance Drivers Standard products and borrower quality - as measured at origination by Secondary market underwriting FICO score - consistent increasing trend FICO score distribution - consistent decline in low score levels Non-standard
Slide 121: Residential Mortgage Portfolio Characteristics and Credit Quality
EOP Outstandings - $4.6 Billion (1) Focused on geographies within our Midwest footprint Traditional product mix... very limited nontraditional exposure as we never originated sub-prime, payment option ARMs, or negative amortization loans $625 million of Interest Only loans... targeted within executi
Slide 122: Residential Mortgages - LTV, FICO, Originations
Residential Mortgages - LTV, FICO, Originations (1) Weighted average FICOs reflect currently updated customer credit scores (2) Only owned-portfolio originations Weighted average at origination Excludes Franklin - data NA 2Q09 1Q09 4Q08 3Q08 2Q08 Ending balance ($B) $4.6 $4.4 $4.8 $4.9 $4.9 Average
Slide 123: Residential Mortgages - ARMs
Residential Mortgages - ARMs EOP Outstandings - $2.7 Billion (1) ARMs 2009 resets $391 MM 2010 resets $753 MM FICO distribution > 670 70% Risk Mitigation Proactive customer contact at least 6 months prior to rate reset. Given the high quality borrower, this is a customer retention as well as risk mi
Slide 124: Residential Mortgage Interest Only
Residential Mortgage Interest Only EOP Outstandings - $645 Million (1) 2008 Production $121 MM YTD 2009 Production $8 MM 2Q09 Net charge-offs 2.74% Current LTV (2Q09 values) 78% Updated FICO score (2Q09) 720 Portfolio Information High FICO, standard LTV structure primarily sourced via Huntington's e
Slide 125: Residential Mortgages - Alt-A
Residential Mortgages - Alt-A EOP Outstandings - $417 Million (1) 2008 Production none YTD 2009 Production none 2Q09 Net charge-offs 3.27% Current LTV (2Q09 values) 101% 70% greater than 90% Updated FICO score (2Q09) 665 Portfolio Information The original strategy was centered around stated income a
Slide 126: Residential Mortgages Net Charge-offs
Residential Mortgages Net Charge-offs 126 1.06% 1.20% 1.50% 1.83% 2.11% 5.08% 5.79% 5.74% 6.33% 6.92% ($MM) L-Q % Change in $ 6% Accruing Delinquency (1) Excluding U.S. Government guaranteed loans Reflects more active treatment decisions associated with loss mitigation and short sale actions. (2)
Slide 127: Residential Mortgages - Delinquencies
Residential Mortgages - Delinquencies 127 MONTH ARM Fixed rate Interest only ARM Alt A Balloon Other Total 7/07 0.0384 0.0564 0.0293 0.0932 0.0261 0.1371 0.0533 8/07 0.0406 0.0553 0.0355 0.0962 0.0262 0.139 0.0556 9/07 0.0524 0.0751 0.0299 0.1129 0.0255 0.1451 0.0638 10/07 0.0535 0.0684 0.0303 0.107
Slide 128: Residential Mortgages - Delinquencies by FICO
Residential Mortgages - Delinquencies 128 MONTH <640 640-669 670-700 >700 No Score Total 7/07 0.226 0.1057 0.0703 0.023 0.1117 0.0533 8/07 0.2158 0.1092 0.0766 0.0224 0.1537 0.0556 9/07 0.2384 0.1191 0.0834 0.0249 0.0954 0.0638 10/07 0.2139 0.1063 0.0791 0.023 0.0994 0.0608 11/07 0.2374 0.1366 0.089
Slide 129: Other Consumer Loans
Other Consumer Loans (Huntington —
Slide 130: Other Consumer Loans
EOP Outstandings - $0.7 Billion (1) 80% collateralized Autos, untitled vehicles, small boats, mobile homes and other miscellaneous Primarily for existing customers Performed within expectations over the past year though varies by collateral type Other Consumer Loans 130 (1) 6/30/09
Slide 131: Franklin Credit Relationship
131 Franklin Credit Relationship
Slide 132: Franklin Credit Relationship Update
Improved alignment of interest beginning in 2009 as evidenced by: $64.2 million in collections in 2Q09, up 13% from 1Q09 Consistent OREO sales proceeds over the last 7 months 3Q09 results expected to be consistent with May/June run rate Interest collections remained consistent over the past 4 months
Slide 133: Credit Quality Review
Credit Quality Review (Huntington
Slide 134: Credit Quality Trends Overview
Credit Quality Trends Overview 2Q09 1Q09 4Q08 3Q08 2Q08 NAL ratio (1) 4.72% 3.93% 3.66% 1.42% 1.30% NPA ratio (2) 5.18 4.46 3.97 1.64 1.52 Net charge-off ratio 3.43 3.34 5.41 0.82 0.64 90+ days PD & accruing (3) 0.38 0.35 0.46 0.44 0.31 ALLL ratio 2.38 2.12 2.19 1.75 1.66 ALLL / NAL coverage 50 54 6
Slide 135: Total Loan Portfolio Asset Quality - 6/30/09
135 135 Total Loan Portfolio Asset Quality - 6/30/09 ($MM) O/S NAL NAL ACL ACL ACL / NAL 30+ PD Accruing CRE Single family homebuilder $1,162 $290 24.97% $102 8.81% 35% 3.65% Retail 2,301 264 11.47 110 4.76 42 2.10 Other 5,483 297 5.41 168 3.06 57 1.30 C&I 13,320 457 3.43 381 2.86 83 0.88 Auto loans
Slide 136: Key Loan Portfolio Credit Quality Metrics
Key Loan Portfolio Credit Quality Metrics 136
Slide 137: Net Charge-offs
Net Charge-offs ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 Franklin $(9.9) $128.3 $423.3 $ -- $ -- Non-Franklin C&I 108.2 82.3 50.1 29.6 12.4 Total C&I 98.3 210.6 473.4 29.6 12.4 Commercial real estate 172.6 82.8 38.4 11.0 15.1 Total commercial 270.9 293.4 511.8 40.6 27.5 Auto loans 12.4 15.0 14.9 9.8 8.5 Auto
Slide 138: Net Charge-off Ratios
Net Charge-off Ratios (1) 2Q09 1Q09 4Q08 3Q08 2Q08 Franklin nmv% nmv% nmv% --% --% Non-Franklin C&I 3.20 2.55 1.58 0.95 0.40 Total C&I 2.91 6.22 13.78 0.87 0.36 Commercial real estate 7.51 3.27 1.50 0.45 0.63 Total commercial 4.77 4.96 8.54 0.69 0.47 Auto loans 1.73 1.56 1.53 1.02 0.94 Auto leases 2
Slide 139: Nonaccrual Loans and Nonperforming Assets
Nonaccrual Loans and Nonperforming Assets 139
Slide 140: Nonaccrual Loans (NAL) - by Sector
($MM) 6/30/09 3/31/09 $ # $ # Commercial >$5 $389.1 39 $330.8 37 $2-<$5 375.8 121 260.8 85 <$2 542.6 436.6 Subtotal $1,307.6 $1,028.2 Residential RE and Home Equity Franklin 344.6 366.1 Other 166.2 158.8 Subtotal 510.8 524.9 Total NALs $1,818.4 $1,553.1 Nonaccrual Loans (NAL) - by Sector $1,818.4 MM
Slide 141: Nonperforming Asset Flow Analysis
Nonperforming Asset Flow Analysis ($MM) 2Q09 1Q09 4Q08 3Q08 2Q08 NPA beginning of period $1,775.7 $1,636.6 $675.3 $624.7 $520.4 Additions / increases 750.3 622.5 509.3 175.3 256.3 Franklin - net impact (57.4) (204.5) 650.2 -- -- Return to accruing status (40.9) (36.1) (13.8) (9.1) (5.8) Charge-offs
Slide 142: Nonperforming Asset Analysis
Nonperforming Asset Analysis 142 ACL ($MM) Total Coverage Total nonaccrual loans (NALs) $1,818 53% Total nonperforming assets (NPAs) 2,003 48% Prior Charge-offs Prior Charge-offs Less: Loans written down to collateral value (1) Amount Percent Commercial impaired $ 410 NA $ 212 34% Franklin 345 NA $
Slide 143: Allowances for Credit Losses (ACL)
Allowances for Credit Losses (ACL) (1) ($MM) 2Q09 2Q09 1Q09 1Q09 4Q08 4Q08 3Q08 3Q08 2Q08 2Q08 Allowance for loan Allowance for loan and lease losses (ALLL) $917.7 $838.5 $900.2 $720.7 $679.4 Allowance for unfunded loan Allowance for unfunded loan commitments and LOCs (AULC) 47.1 47.0 44.1 61.6 61.3
Slide 144: Allowance for Credit Losses Methodology
Allowance for Credit Losses Methodology Allowance for loan and lease loses (ALLL) An estimate of loss based on characteristics of each commercial and consumer loan, lease, or loan commitment, and An estimate of loss based on a review of each impaired loan >$500,000 Generally developed to cover a def
Slide 145: Illustrative SCAP Analysis - 5/20/09
Illustrative SCAP Analysis - 5/20/09 145
Slide 146: Illustrative SCAP Analysis: Peer Comparison
HBAN 0.0038 BBT 0.0076 KEY 0.0082 RF 0.0138 STI 0.0186 FITB 0.0347 HBAN 0.0122 KEY 0.0124 BBT 0.0129 RF 0.0174 FITB 0.0217 STI 0.027 RF 0.0067 KEY 0.015 BBT 0.0163 HBAN 0.0213 FITB 0.0508 STI 0.0522 RF 0.0008 HBAN 0.0052 BBT 0.0062 KEY 0.0081 FITB 0.018 STI 0.03 BBT 0.0093 STI 0.01 RF 0.0135 HBAN 0.
Slide 147: Illustrative SCAP Analysis
147 Illustrative SCAP Analysis Note: Loan balances based on regulatory financials. Excludes Franklin Credit. (1) Loss ranges represent ranges from SCAP analysis relating to the following banks: BBT, FITB, KEY, PNC, RF and STI Outstandings 2-Yr Cumulative Losses (1) 2-Yr Cumulative Losses (1) 2-Yr Cu
Slide 148: Illustrative SCAP Analysis: Tier 1 Common
148 Illustrative SCAP Analysis Includes potential additional liability management initiatives, exchange of other capital instruments, adoption of new accounting standards and other management initiatives Per 10% rule 2-Year Cumulative Losses 2-Yr Cumulative Losses 2-Yr Cumulative Losses 2-Yr Cumulat
Slide 149: Illustrative SCAP Analysis Non-Franklin Regulatory Reporting Reconciliations
Illustrative SCAP Analysis 149 Non-Franklin Regulatory Reporting Reconciliations
Slide 150: Illustrative SCAP Analysis Non-Franklin Regulatory Reporting Reconciliations
Illustrative SCAP Analysis 150 Non-Franklin Regulatory Reporting Reconciliations
Slide 151: Non-Franklin Credit Metrics Reconciliations
Non-Franklin Credit Metrics Reconciliations 151
Slide 152: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 152
Slide 153: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 153
Slide 154: Non-Franklin Credit Metrics Reconciliation
Non-Franklin Credit Metrics Reconciliation 154
Slide 155: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 155
Slide 156: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 156
Slide 157: Quarterly Net Charge-off Reconciliation
Quarterly Net Charge-off Reconciliation (1) (1) Annualized 157
Slide 158: Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
158 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 159: Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
159 Nonaccrual Loans (NALs), Nonperforming Assets (NPA) & Accruing Restructured Loans (ARLs)
Slide 160: Deposits and Other Funding
Deposits and Other Funding 160
Slide 161: Total Deposits - By Business Segment
Total Deposits - By Business Segment 161 Avg. Balances - $39.5 Billion ($B) Regional & Business Banking Commercial Banking Commercial Real Estate AFDS PFG Treasury / Other Total DDA-noninterest bearing $3.4 $1.9 $0.2 $ 0.1 $0.3 $0.1 $6.0 DDA-interest bearing 3.5 0.7 -- -- 0.3 -- 4.5 Money market dep
Slide 162: Deposit Trends Linked Quarter
Deposit Trends 162 Linked Quarter
Slide 163: Deposit Trends Prior-year Quarter
Deposit Trends 163 Prior-year Quarter
Slide 164: Deposit Trends
Demand, Savings & Other Core CDs Non-core 1Q03 12.008 3.415 1.986 2Q03 12.623 3.245 2.028 3Q03 13.24 2.97 2.351 4Q03 13.052 2.84 2.853 1Q04 13.08 2.664 2.979 2Q04 13.83 2.669 2.805 3Q04 14.096 2.691 2.84 4Q04 14.454 2.733 3.124 1Q05 14.556 2.809 4.098 2Q05 14.258 3.067 4.584 3Q05 14.04 3.557 4.619 4
Slide 165: Core Deposits Average Balances
3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 HBAN 3276 3401 3314 3352 3406 3444 3436 3594 3509 3580 16191 16392 16575 26452 26481 26653 26958 27110 27494 28434 HBAN 9680 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
Slide 166: Total Core Deposit Trends
Total Core Deposit Trends 166
Slide 167: Other Funding - 6/30/09
Other Funding - 6/30/09 Non-core Deposits 0.3896 S-T Borrowings & Other Liab. 0.1657 FHLB Advances 0.0807 Other L-T Debt 0.2183 Subordinated Notes 0.1456 $11.5 Billion Noncore Deposits $4.5 B / 39% S-T Borrowings & Other Liabilities $1.9 B / 17% FHLB Advances $0.9 B / 8% Other L-T Debt $2.5 B / 22%
Slide 168: Funding Assessment
Funding Assessment (1) Holding Company Sufficient cash for operations over a twelve-month period without relying on the bank for dividends Next borrowing maturity not until 2013: $50 million Bank Level Funding expected to be met primarily through: Core deposits FHLB advances National market deposits
Slide 169: Capital
Capital (Huntington
Slide 170: Capital
Capital (1) 2Q09 2Q09 1Q09 4Q08 3Q08 2Q08 Total risk-weighted assets ($B) $45.4 $46.3 $47.0 $46.6 $46.6 Tier 1 leverage 10.62% 9.67% 9.82% 7.99% 7.88% Tier 1 risk-based capital 11.87 11.16 10.72 8.80 8.82 Total risk-based capital 14.96 14.28 13.91 12.03 12.05 Tangible common equity/assets 5.68 4.65
Slide 171: Capital Actions
Capital Actions Other Common Stock Retained (Sand Shares in MM) Shares Amount Eamings| Total 1Q09 Franklin restructuring - - $ 1599]§ 159.9 Conversion of preferred stock : Other tangible capital improvements 47A 1Q09 Total 207.0| 324.1 2Q09 Discretionary equity issuance #1 385 1176 - | 176 Discretio
Slide 172: Capital Raising Efficiency vs. SCAP Peers
Amount RF -0.227 KEY -0.135 STI -0.132 FITB -0.068 HBAN -0.034 PNC 0.034 BBT 0.069 USB 0.179 Amount RF -0.709 HBAN -0.551 KEY -0.504 STI -0.398 FITB -0.378 PNC -0.033 BBT -0.154 USB -0.078 Capital Raising Efficiency vs. SCAP Peers Share Count (Dilution) / Accretion TBV Per Share (Dilution) / Accreti
Slide 173: Capital Raising Efficiency - Detail
Capital Raising Efficiency - Detail 173 Share Count vs. Tangible Book Value Per Share Dilution
Slide 174: Capital Trends
LLR/NPL ratio 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Tang. Equity / Risk-Weighted Assets 0.0558 0.0659 0.066 0.0839 0.0894 0.1004 Tang. Equity / Assets (TE Ratio) 0.0492 0.059 0.0599 0.0772 0.0812 0.0899 Tang. Common Equity / Assets (TCE Ratio) 0.0492 0.0481 0.0488 0.0404 0.0465 0.0568 Tier 1 Common Risk-Bas
Slide 175: Capital Ratios Trends
Total Risk-based Capital Tier I Risk-based Capital Tang. Equity / Risk Weighted Assets Tang. Equity / Assets 3Q02 0.1178 0.0881 0.0764 4Q02 0.1125 0.0834 0.0722 1Q03 0.1104 0.0816 0.07 2Q03 0.1111 0.0832 0.0723 0.0706 3Q03 0.1119 0.084 0.0724 0.0677 4Q03 0.1195 0.0853 0.0731 0.0679 1Q04 0.1213 0.087
Slide 176: Regulatory Capital - 6/30/09
Regulatory Capital - 6/30/09 176 Tier 1 Capital Total Capital CNB 0.0544 MTB 0.0817 ZION 0.0964 MI 0.0988 PNC 0.105 BBT 0.106 CMA 0.1157 HBAN 0.1187 RF 0.122 KEY 0.1242 ASBC 0.1245 FITB 0.129 FHN 0.154 CNB 0.0943 MTB 0.1187 ZION 0.1284 MI 0.1362 PNC 0.141 ASBC 0.1435 HBAN 0.1496 BBT 0.152 CMA 0.1596
Slide 177: Credit Ratings
Credit Ratings Senior Subordinated Comm'l. Paper / Notes Notes Short-term Outlook Huntington Bancshares Moody's 4/7/09 Baa2 Baa3 P-2 Negative S&P 6/17/09 BB+ BB B Negative Fitch 4/23/09 BBB BBB- F2 Negative The Huntington National Bank Moody's 4/7/09 Baa1 Baa2 P-2 Negative S&P 6/17/09 BBB- BB+ A-3 N
Slide 178: Franchise
Franchise () Huntington “
Slide 179: Huntington Bancshares Overview
Midwest financial services holding company Founded - 1866 Headquarters - Columbus, Ohio Total assets - $51 billion Employees (1) - 10,252 Franchise: Footprint 6 states: OH, MI, PA, IN, WV, KY 601 offices / 1,360 ATMs Retail and Business Banking 5 Areas - Mortgage banking + MD, NJ Commercial Banking
Slide 180: Focus on the Midwest
Focus on the Midwest (1) Offices 115 ATMs 238 Detroit 3% Grand Rapids 10% Offices 339 ATMs 751 Akron 8% Canton 25% Cincinnati 3% Cleveland 6% Columbus 27% Dayton 6% Toledo 24% Youngstown 21% Offices 50 ATMs 84 Indianapolis 7% Offices 13 ATMs 31 Offices 28 ATMs 129 Charleston 10% Excludes 3 PFG offic
Slide 181: A Strong Regional Presence
A Strong Regional Presence Source: SNL Financial, company presentations and filings FDIC deposit data as of June 30, 2008 Deposits - Top 12 MSAs MSA Rank BOs Deposits Share Columbus, OH 1 69 $8,843 27.2% Cleveland, OH 6 62 3,631 5.7 Detroit, MI 8 44 2,582 2.8 Toledo, OH 1 42 2,324 23.5 Pittsburgh, P
Slide 182: Strategy, Organization and History
Strategy, Organization and History 182
Slide 183: Organization
Organization Organization 183
Slide 184: Senior Leadership Team
Senior Leadership Team Experience-Yrs Position Appointed Banking HBAN Stephen Steinour Chairman, President and CEO 1Q09 29 new Dan Benhase SEVP-Private Financial Group Director 2Q06 26 9 Kevin Blakely SEVP-Chief Risk Officer 3Q09 35 new Jim Dunlap SEVP-Regional & Commercial Banking Director 1Q06 30
Slide 185: Regional Banking Structure
Regional Banking Structure Commercial Banking Executive - Jim Dunlap 11 Region Presidents Direct reporting responsibility for: Commercial banking Treasury management sales Regional marketing / community affairs Increased responsibility around: New business rainmaker Portfolio and risk management Com
Slide 186: Commercial Banking Regions
11 Commercial Banking Regions Greater Akron/Canton Mahoning Valley Central Ohio NW Ohio S. Ohio/KY Greater Cleveland Central Indiana West Michigan East Michigan West Virginia Pittsburgh Jim Dunlap 186
Slide 187: Regional Banking Presidents
Regional Banking Presidents Experience - Yrs Region Appointed Banking HBAN Jim Dunlap* West Michigan 1Q06 30 30 Rebecca Smith East Michigan 1Q07 32 2 Sharon Speyer Northwest Ohio 1Q01 21 17 Jerry Kelsheimer Greater Cleveland 1Q05 22 14 Vincent Locher Pittsburgh 3Q02 23 21 Jim Kunk Central Ohio 1Q94
Slide 188: Retail and Business Banking Areas
5 Retail and Business Banking Areas Central Northwest West Northeast East Mary Navarro 188
Slide 189: Business Segment Summary
Business Segment Summary 189
Slide 190: Business Segment Loans & Deposits - 6/30/09
Business Segment Loans & Deposits - 6/30/09 Total Credit Exposure - $38.5 B Total Deposits - $39.2 B 190 Retail and Business Banking 0.711 Commercial Banking 0.143 Commercial Real Estate 0.01 Dealer sales 0.002 PFG 0.07 Treasury / Other 0.064 Retail & Business Banking 0.412 Commercial Banking 0.21 C
Slide 191: Business Segment Contribution
191 Business Segment Contribution
Huntington Bancshares — Q2 2009 Earnings Presentation on 6ix