EXHIBIT 99.2
[LOGO]SUNTRUST
Acquisition of Huntington's Florida Franchise
September 26, 2001
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Forward Looking Statement
This presentation contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, (i) statements about the benefits of an acquisition of the
Huntington Florida Franchise, including future financial and operating results,
cost savings and accretion to reported and cash earnings that may be realized
from such acquisition; (ii) statements with respect to SunTrust's plans,
objectives, expectations and intentions and other statements that are not
historical facts; and (iii) other statements identified by words such as
"believes", "expects", "anticipates", "estimates", "intends", "plans",
"targets", "projects", and similar expressions. These statements are based upon
the current beliefs and expectations of SunTrust's management and are subject to
significant risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements.
The following factors, among others, could cause actual results to differ
materially from the anticipated results or other expectations expressed in the
forward-looking statements: (1) the businesses of SunTrust and Huntington
Florida may not be integrated successfully or such integration may be more
difficult, time-consuming or costly than expected; (2) expected revenue
synergies and cost savings from the acquisition may not be fully realized or
realized within the expected time frame; (3) revenues following the acquisition
may be lower than expected; (4) deposit attrition, operating costs, customer
loss and business disruption, including, without limitation, difficulties in
maintaining relationships with employees, customers, clients or suppliers, may
be greater than expected following the acquisition; (5) the regulatory approvals
required for the acquisition may not be obtained on the proposed terms or on the
anticipated schedule; (6) competitive pressures among depository and other
financial institutions may increase significantly and may have an effect on
pricing, spending, third-party relationships and revenues; (7) the strength of
the United States economy in general and the strength of the local economies in
which the combined company will conduct operations may be different than
expected, resulting in, among other things, a deterioration in credit quality or
a reduced demand for credit, including the resultant effect on the combined
company's loan portfolio and allowance for loan losses; (8) changes in the U.S.
and foreign legal and regulatory framework; and (9) adverse conditions in the
stock market, the public debt market and other capital markets (including
changes in interest rate conditions) and the impact of such conditions on the
combined company's capital markets and asset management activities.
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Overview
Transaction Terms
Premium: 15% Deposit Premium
Cost Savings: $48 million
36% of estimated
Huntington Florida
core expense base
Divestitures: +/-5% of deposits
Restructuring Charge: $100 Million
Loan Loss Allowance
Increase: $40 Million
Accounting/Structure: Purchase; cash
Steps to Completion: Customary regulatory
approvals
Expected Closing: February 2002
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Overview
Context
. Huntington announced company restructuring including sale of their Florida
franchise July 12, 2001
. Size of transaction limits integration risk
- SunTrust Florida organization to manage the top two priorities:
customer/employee retention and customer/employee integration
- On-going minimal impact to corporate resources and non-Florida market
areas/(1)/
. Have factored in economic slowdown due to recent events
/(1)/ Other than data conversion resources
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Overview
Precedent Transaction Analysis
Announce Entity Assets Premium/
Date Buyer Seller Sold (Deposits) Sold Deposits
-------- ---------------------- ---------------------- ----------------- --------------------- ---------------
5/17/99 Charter One St. Paul Bank Sale 5.9 Billion 21%
Financial Bancorp, Inc.
6/16/99 Fifth Third CNB Bank Sale 7.2 Billion 37%
Bancorp Bancshares, Inc.
6/21/99 Citizens UST Bank Sale 5.9 Billion 23%
Financial, Inc. Corporation
2/7/00 BB&T One Valley Bank Sale 6.6 Billion 16%
Corporation Bancorp, Inc.
7/31/00 Firstar First Union 41 TN 1.8 Billion 20%
Corporation Corporation branches (deposits) (est)
1/24/01 BB&T F&M National Bank Sale 3.6 Billion 26%
Corporation Corporation
7/17/01 Royal Bank of Mellon Financial 345 DE, NJ, 13.4 Billion 16%
Scotland Corporation PA (deposits)
branches
9/24/01 SunTrust Huntington- Subject 4.7 Billion 15%
Florida Transaction (deposits)
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Overview
Huntington Florida Franchise
. Retail, Commercial Banking and Private Client Services operations in
central and southwestern Florida
. Integrated delivery network:
- 141 branches 106 traditional
35 in-stores (Albertson's, 1 Wal-Mart)
- 5 Private Client Services offices/(1)/
- 456 store-based and remote ATM's
. Ranks among the top six banks within current Florida MSA's, with
approximately 6% market share in Florida overall
/(1)/ Huntington will retain three Florida wealth management locations, their
Florida Indirect Loan origination business and their Florida mortgage
origination platform.
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Overview
Huntington Florida Franchise
Loans ($Millions) Deposits ($Millions)
------------------------ ------------------------
Retail 845 DDA 581
Indirect 325 MMA 849
Residential 249 NOW 538
Commercial 735 SAV 555
Commercial RE 421 Time 2,042
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2,575 Repos 139
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Total Deposits 4,704
. Includes $860MM of trust assets under management
As of July 31, 2001
. Transaction value is based primarily on an attractive retail customer base
that is complementary to the existing SunTrust Florida franchise
. Not dependent upon Florida tourism
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Strategic Benefits
Huntington Operates In Rapidly Growing Markets With Attractive Demographics
[GRAPHIC]
Strategic Benefits
Forecast Median
Household Forecast
Key Huntington Markets Income Growth(1) Population Growth(1)
---------------------- ---------------- --------------------
Orlando 8.8% 10.9%
Sarasota 12.9% 7.3%
Tampa - St. Petersburg 12.2% 5.4%
Lakeland/Winter Haven 8.1% 7.6%
Daytona 6.9% 9.4%
National Averages 12.4% 4.5%
(1) Forecast 2000-2005
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Strategic Benefits
Huntington Enhances SunTrust's Position In Key High Opportunity Florida Markets
SunTrust Current SunTrust + Huntington,
Market Deposit Share/Rank Deposit Share/Rank
----------------------------- ------------------------- ----------------------------
Tampa 9.3%, 4 14% 2
Lakeland/Winter Haven 17.1% 3 26% 1
Orlando 24.7% 2 29% 1
Daytona 18.0% 3 21% 2
Sarasota/Bradenton 12.2% 2 18% 2
Strategic Benefits
Market demographics include strong mix
of affluent, middle market and retirees
Note: Market share data as of 6/30/01 excluding credit union balances
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Financial Impacts
Value Creation Through Appropriate Cost Savings
Annual Cost Savings: $48 million
Cumulative Phase In:
Year 1 65%
Year 2 100%
Traditional Branch Consolidations: 45
% of Huntington Core Expense: 36%
Estimated Restructure Charge: $100 Million
Position Reductions: 600
Financial Impacts
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Combined companies' employee attrition will support majority
of headcount reductions. Job assurances have been given to
Huntington teller and certain other personnel(1).
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(1) Exception: Employees on disciplinary action
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Financial Impacts
Branch Proximity Allows Low
Customer Impact Consolidations
(less than).25 .25 - .50 .50 - .75 .75 - 1.0 (greater than)1.0
Miles Miles Miles Miles Miles Total
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Number
of Traditional
Branches 22 15 3 4 1 45
% of Total
Closed
Branches 49% 33% 7% 9% 2% 100%
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82% of branch consolidations within 1/2 mile
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Financial Impacts
Attractive Pricing Produces Earnings Accretion And Supports A Return Over Cost
Of Capital
Cash EPS Accretion:
- Neutral in 2002
- Accretive in subsequent years
Transaction IRR: 11-13% compared to SunTrust cost of equity of 11%
Conservative Assumptions:
- Account Deposit and Loan Attrition at 10-12%
- Assumes no revenue enhancements
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Summary
. Enhances current SunTrust Florida franchise
- Strengthens positions in some of the best markets
. Proximity of branches allows cost savings without significant customer
disruption
. Low integration risk given size of transaction and Company's integration
experience
. Financially attractive using conservative assumptions
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