Exhibit 99.3
HUNTINGTON BANCSHARES
INCORPORATED
[HUNTINGTON BANCSHARES LOGO]
THIRD QUARTER 2001
EARNINGS REVIEW
OCTOBER 16, 2001
MEETING PARTICIPANTS [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
Tom Hoaglin
Chairman, President and Chief Executive Officer
Mike McMennamin
Vice Chairman and Chief Financial Officer
Jay Gould
Sr. Vice President - Investor Relations
1
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
FORWARD LOOKING STATEMENT DISCLOSURE
--------------------------------------------------------------------------------
Today's conference call and discussion, including related questions and answers,
may contain forward-looking statements, including certain plans, expectations,
goals, and projections which are subject to numerous assumptions, risks and
uncertainties. Actual results could differ materially from those contained or
implied by such statements for a variety of factors including:
- Change in economic conditions - The successful integration of acquired
business
- Movements in interest rates - The nature, extent and timing of
governmental actions and reforms.
- Competitive pressures on product
pricing and service - Extended disruption of vital
infrastructure
- Success and timing of business
strategies
[HUNTINGTON All forward-looking statements included in this conference call
BANCSHARES and discussion, included related questions and answers, are based
LOGO] on information available at the time of the call. Huntington
assumes no obligation to update any forward-looking statement.
2
THIRD QUARTER ACCOMPLISHMENTS [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
- Earnings exceeded consensus
- Agreement to sell Florida operations
- Improved operating margins
- Expanding NIM
- Increasing fee income
- Decreasing expenses
3
THIRD QUARTER PERFORMANCE HIGHLIGHTS - VS. 2Q01(1) [HUNTINGTON BANCSHARES
LOGO]
--------------------------------------------------------------------------------
Positives
---------
- 7% annualized growth in loans
- 11% annualized growth in core deposits
- 7 bp increase in NIM
- 17% increase in fee income from a year ago
- $4.4MM decrease in NIE
Negatives
---------
- 27% increase in NPAs
(1) Excluding after-tax impact of restructuring and other charges of $33.0MM in
3Q01 and $72.1MM in 2Q01
4
THIRD QUARTER 2001 EARNINGS [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
REPORTED CHARGES OPERATING
-------- ------- ---------
Net Interest Income $ 249.8 $ 249.8
Provision (49.6) (49.6)
Non-Interest Income 129.4 129.4
Security Gains 1.1 1.1
Non-Interest Expense (279.7) $ (50.8) (228.9)
------- ------- -------
Pre-Tax Income 51.0 (50.8) 101.8
------- ------- -------
Net Income $ 42.6 $ (33.0) $ 75.7
------- ======= -------
EPS $ 0.17 $ 0.30
======= =======
5
ESTIMATED RESTRUCTURING AND OTHER CHARGES [HUNTINGTON BANCSHARES LOGO]
------------- ------------
($MM) Original 4Q01-1Q02 Current
Estimate 2Q01 A 3Q01 A Estimate Estimate
-------- ------ ------ -------- --------
Restructuring $ 64 --- $ 33 $37 $ 70
-------------
Branches/ATMs/ops
Fla. retention/transition
Corporate overhead
Facilities
e-Commerce
Impairment 45 37 --- 2 39
----------
I/O strip
PG & E
Auto residuals
Other
Credit 72 72 --- --- 72
------
120 day delinquencies
Exited Tier II
Exited truck & equipment
Other 34 2 18 14 34
-----
----- ----- ---- ---- -----
Total pre-tax charge $ 215 $ 111 $ 51 $ 53 $ 215
----- -----
6
EARNINGS PER SHARE [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
3Q01 2Q01 3Q00
----- ----- -----
Operating EPS(1) $0.30 $0.30 $0.33
Core basis(2) 0.30 0.28 0.29
Cash basis(3) 0.33 0.33 0.36
(1) Excluding after-tax impact of restructuring and other charges of $33.0MM in
3Q01, $72.1MM in 2Q01, and $32.5MM in 3Q00.
(2) Non-core Items ($MM)
--------------------
Security Gains $1.1 $2.7 $11.4
Mortgage Loan Sale -- 2.0 --
Branch Sale Gain -- 1.2 --
Other -- -- 3.0
---- ---- -----
Total $1.1 $5.9 $14.4
(3) Cash basis ratios are based on Cash basis ratios are based on operating
earnings excluding goodwill amortization of $7.8 million (3Q01),
$7.7 million (2Q01), and $7.6 million (3Q00), net of tax
7
KEY PERFORMANCE RATIOS(1) [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
3Q01 2Q01 3Q00
---- ---- ----
ROA 1.07% 1.05% 1.15%
ROE 12.6 12.4 14.0
Efficiency Ratio 57.5 58.6 58.4
NIM 4.04 3.97 3.74
Tangible Equity/Assets(2) 5.96 5.97 5.73
(1) Excluding after-tax impact of restructuring and other charges of $33.0MM in
3Q01, $72.1MM in 2Q01, and $32.5MM in 3Q00.
(2) Period end
8
INCOME STATEMENT(1) [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
3Q01 2Q01 3Q00
------- ------- -------
Net Interest Income $ 249.8 $ 248.0 $ 235.9
Provision (49.6) (45.8) (26.4)
Non-Interest Income 129.4 130.7 110.3
Security Gains 1.1 2.7 11.4
Non-Interest Expense (228.9) (233.3) (213.6)
------- ------- -------
Pre-Tax Income 101.8 102.4 117.5
------- ------- -------
Net Income $ 75.7 $ 74.5 $ 83.0
======= ======= =======
(1) Excluding after-tax impact of restructuring and other charges of $33.0MM in
3Q01, $72.1MM in 2Q01, and $32.5MM in 3Q00.
9
NET INTEREST MARGIN [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
$260 4.20%
4.04%
3.93% 3.97%
4.00%
3.74% $248.0 $249.8
$250
3.70% 3.80%
$243.1
$240 3.60%
$235.9
$233.1 3.40%
$230
3.20%
$220 3.00%
3Q00 4Q00 1Q01 2Q01 3Q01
[ ] Net Interest Income [ ] Margin
10
MANAGED LOAN GROWTH [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
(Average)
Annualized Growth
-----------------
3Q01 vs. 2Q01 vs. 3Q01 vs.
3Q01 2Q01 1Q01 3Q00
---- ---- ---- ----
Commercial $ 6.7 B (4)% 4% 4%
Commercial Real Estate 3.7 16 1 7
----- --- --- ---
Total Commercial/CRE 10.4 3 3 5
----- --- --- ---
Auto Loan/Lease 7.3 13 6 9
Consumer 4.1 9 8 11
Residential Real Estate 0.8 -- -- 7
----- --- --- ---
Total Consumer 12.2 10 6 9
----- --- --- ---
Managed Loans $22.6 B 7% 5% 7%
=====
11
Note: Growth percentages normalized for acquisitions, portfolio sales and
securitizations
CORE DEPOSIT TRENDS [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
(Average) Annualized Growth
-----------------
3Q01 vs. 2Q01 vs. 3Q01 vs.
3Q01 2Q01 1Q01 3Q00
---- ---- ---- ----
Demand $ 3.3 B 12% 4% (3)%
Interest bearing 5.1 27 19 16
Savings 3.5 (8) 5 (2)
Time 7.2 11 (16) (3)
----- --- --- ---
Total $19.1 B 11% (1)% 2%
12
NON-INTEREST INCOME [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
Better or (Worse) vs.
---------------------
3Q01 2Q01 2Q01(1) 3Q00
------ ------ ---- ----
Service Charges $ 41.7 $ 1.0 3% 5%
Brokerage/Insurance 19.9 0.5 3 28
Trust Income 15.5 0.3 2 17
Electronic Banking 12.4 0.2 1 10
Mortgage Banking 14.6 (4.1) (22) 55
Other 25.3 0.8 3 20
------ ------ --- ---
Total Non-Interest Income (2) $129.4 $ (1.3) (1)% 17%
====== ======
(1) Linked quarter percentage growth is not annualized
(2) Excludes security gains
13
NON-INTEREST EXPENSE(1) [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
Better or (Worse) vs.
---------------------
3Q01 2Q01 2Q01(2) 3Q00
------ ---- ---- ----
Personnel & Related Costs $120.8 $1.3 1% (10)%
Occupancy & Equipment 39.4 (1.4) (4) (2)
Outside Services 17.4 0.3 2 (12)
Amortization of Intangibles 10.1 0.3 3 2
Marketing 6.9 1.0 12 19
Other 34.3 2.9 8 (10)
------ ---- --- ---
Non-Interest Expense $228.9 $4.4 2% (7)%
====== ====
(1) Excluding after-tax impact of restructuring and other charges of $33.0MM in
3Q01, $72.1MM in 2Q01, and $32.5MM in 3Q00.
(2) Linked quarter percentage growth is not annualized
14
CREDIT QUALITY OVERVIEW [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
3Q01 2Q01 3Q00
---- ---- ----
NPAs/Total Loans+OREO 0.97% 0.79% 0.44%
Net Charge-offs(1) 0.61 0.73 0.46
90+ Days Past Due 0.43 0.32 0.39
Consumer 0.55 0.48 0.57
Com/CRE 0.30 0.15 0.21
Reserve/Total Loans 1.67 1.67 1.45
Reserve/NPAs 171 211 327
(1) Including impact of special charges, the ratios were 3Q01 = 0.74% and 2Q01
= 1.25%
15
NON-PERFORMING ASSET COMPOSITION [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
$250 0.97% 1.00%
$210.1
$200 0.79% 0.80
$166.0
$150 0.60% 0.60
0.51% $124.9
$105.4
$100 0.45% 0.46% 0.44% 0.40
$92.2 $95.1
$88.5
$ 50 0.20
$ 0 0
Mar00 Jun00 Sep00 Dec00 Mar01 Jun01 Sep01
[ ] Commercial [ ] Commercial RE [ ] Residential RE [ ] OREO
%=NPA/Loans +OREO
[GRAPH]
<Table>
<Caption>
($MM) Mar 00 Jun 00 Sep 00 Dec 00 Mar 01 Jun 01 Sep 01
Commercial 40.6 45.138 44.917 55.805 62.716 116.045 148.177
Commercial RE 24.5 22.678 23.006 28.006 36.191 28.159 42.168
Residential RE 10.892 11.548 8.589 10.174 11.949 11.868 11.666
OREO 16.251 15.669 11.982 11.413 14.031 9.913 8.051
</Table>
16
COMMERCIAL AND COMMERCIAL R/E PORTFOLIOS
SELECTED SEGMENTS [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
At September 30, 2001 Total Portfolio = $10.4 billion
($MM) % of Com'l
& Com'l R/E
O/S Portfolio NPA
----- ----------- ---
Hotels $ 214 2.1% $ 1
Restaurants 184 1.8 1
Amusement/
Recreation 166 1.6 4
Insurance 68 0.7 1
Airlines 14 0.1 --
----- ----- ---
Total $ 646 6.3% $ 7
===== ===== ===
17
NET CHARGE-OFFS SUMMARY [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
3Q01 2Q01 3Q00
---- ---- ----
Operating Basis(1)
Commercial 0.56% 0.67% 0.24%
Commercial R/E 0.00 0.18 0.07
Consumer 0.85 0.95 0.72
---- ---- ----
0.61% 0.73% 0.46%
Reported 0.74% 1.25% 0.46%
(1) 3Q01 and 2Q01 exclude impact of restructuring and other charges
18
CONSUMER NET CHARGE-OFFS [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
3Q01 2Q01 3Q00
---- ---- ----
Operating Basis (1)
Indirect (2) 1.05% 1.50% 1.33%
Vehicle Lease 1.27 1.37 0.80
---- ---- ----
Subtotal 1.17 1.43 1.05
Installment 0.88 0.63 0.54
Home Equity Lines 0.34 0.31 0.33
Residential R/E 0.05 0.10 0.06
---- ---- ----
0.85% 0.95% 0.72%
Reported 1.07% 1.90% 0.72%
(1) 3Q01 and 2Q01 exclude impact of restructuring and other charges
(2) Beginning in 3Q01, losses on Tier II loans are charged to the special
reserve established in 2Q01. Excluding Tier II losses from 2Q01 would have
reduced the net chare -off rate from 1.50% to 1.30%
19
ALLOWANCE FOR LOAN LOSSES [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM) Operating Special Reporting
--------- ------- ---------
Balance at June 30, 2001 $ 307.9 $ 44.3 $ 352.2
Net charge-offs (32.6) (7.1) (39.7)
Provision details:
Net charge-offs 32.6 7.1 39.7
Loan growth 9.9 -- 9.9
Other 7.1 (7.1) --
--------- -------- --------
Total provision 49.6 -- 49.6
Loan securitizations (1.6) -- (1.6)
--------- -------- --------
Balance at September 30, 2001 $ 323.3 $ 37.2 $ 360.5
========= ======== ========
Annualized loan losses 0.61% 0.74%
Reserve as a % of total loans
June 30, 2001 1.67%
September 30, 2001 1.67%
20
EXCESS CAPITAL - FLORIDA SALE [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
($MM)
Capital Generated/Released Estmated
--------
- Intangibles $505
- Sale of $2.9B assets (@6.50%) 189
- After tax gain (deposit premium > than book value - expenses) 122
----
- Total capital available $816
Capital Required
- After-tax charge $(140)
- Replenish capital to 6.50% -- (140)
------ -----
Net capital available for stock repurchase $676
21
GOODWILL AND CDI AMORTIZATION [HUNTINGTON BANCSHARES LOGO]
--------------------------------------------------------------------------------
Projected Balances at March 2002
--------------------------------
Assets ($MM) HBI Florida HBI ex-Florida
------ ------ ------- --------------
Goodwill $ 663 $ 451 $ 212
Core deposit intangible 54 54 --
------ ----- -------
$ 717 $ 505 $ 212
Amortization Per Share(1)
----------------------
Goodwill $ 0.11 $ .07 $ .04
Core deposit intangible .02 .02 --
------ ----- -------
$ 0.13 $ .09 $ .04
(1) Prior to pending change in accounting for goodwill
- Assumes 251.5 million shares outstanding
22
[HUNTINGTON BANCSHARES LOGO]
HUNTINGTON BANCSHARES INCORPORATED
QUARTERLY FINANCIAL REVIEW
SEPTEMBER 2001
TABLE OF CONTENTS
-----------------
Consolidated Financial Highlights ............................... 1
Consolidated Balance Sheets ..................................... 2
Consolidated Statements of Income ............................... 3
Loans and Deposits .............................................. 4
Non-Interest Income and Non-Interest Expense .................... 5
Consolidated Average Balances and Interest Rates (Quarterly) .... 6 & 7
Selected Quarterly Income Statement Data ........................ 8
Stock Summary, Key Ratios and Statistics, and Capital Data ...... 9
Loan Loss Reserves and Asset Quality ............................ 10
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED FINANCIAL HIGHLIGHTS
ON AN OPERATING BASIS (1)
(in thousands, except per share amounts)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 2000 % Change
---------------------------------------------- -------------- ----------- --------
NET INCOME ................................... $ 75,660 $ 83,030 (8.9)%
PER COMMON SHARE AMOUNTS (2)
Net income
Basic .............................. $ 0.30 $ 0.33 (9.1)
Diluted ............................ $ 0.30 $ 0.33 (9.1)
Cash dividends declared ................. $ 0.16 $ 0.20 (20.0)
AVERAGE COMMON SHARES OUTSTANDING-DILUTED (2) 252,203 252,033 0.1
KEY RATIOS
Return on:
Average total assets .................... 1.07% 1.15% (7.0)
Average shareholders' equity ............ 12.64% 14.04% (10.0)
Efficiency ratio ............................. 57.48% 58.38% (1.6)
Average equity/average assets ................ 8.49% 8.20% 3.5
Net interest margin .......................... 4.04% 3.74% 8.0
TANGIBLE OR "CASH BASIS" RATIOS (3)
Net Income Per Common Share -- Diluted (2) ... $ 0.33 $ 0.36 (8.3)
Return on:
Average total assets .................... 1.21% 1.29% (6.2)
Average shareholders' equity ............ 13.93% 15.33% (9.1)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 2000 % Change
---------------------------------------- -------------- ----------- --------
NET INCOME ................................... $ 218,030 $ 284,724 (23.4)%
PER COMMON SHARE AMOUNTS (2)
Net income
Basic .............................. $ 0.87 $ 1.15 (24.3)
Diluted ............................ $ 0.87 $ 1.14 (23.7)
Cash dividends declared ................. $ 0.56 $ 0.56 0.0
AVERAGE COMMON SHARES OUTSTANDING-DILUTED (2) 251,537 248,909 1.1
KEY RATIOS
Return on:
Average total assets .................... 1.03% 1.32% (22.0)
Average shareholders' equity ............ 12.20% 16.87% (27.7)
Efficiency ratio ............................. 59.30% 55.39% 7.0
Average equity/average assets ................ 8.47% 7.84% 8.0
Net interest margin .......................... 3.99% 3.74% 6.7
TANGIBLE OR "CASH BASIS" RATIOS (3)
Net Income Per Common Share -- Diluted (2) ... $ 0.96 $ 1.23 (22.0)
Return on:
Average total assets .................... 1.17% 1.45% (19.3)
Average shareholders' equity ............ 13.51% 18.08% (25.3)
(1) Income component excludes the after-tax impact of Restructuring and Other
Charges. ($33,031 in 3Q '01; $72,127 in 2Q '01; $32,500 in 3Q '00)
(2) Adjusted for stock splits and stock dividends, as applicable.
(3) Tangible or "Cash Basis" net income excludes amortization of goodwill.
Related asset amount excluded from total assets and shareholders' equity.
Page 1
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
SEPTEMBER 30, December 31, September 30,
2001 2000 2000
---------------- ------------- -------------
ASSETS
Cash and due from banks .................................... $ 1,110,287 $ 1,322,700 $ 980,199
Interest bearing deposits in banks ......................... 4,958 4,970 4,922
Trading account securities ................................. 2,292 4,723 17,770
Federal funds sold and securities
purchased under resale agreements ..................... 63,311 133,183 127,141
Loans held for sale ........................................ 294,077 155,104 115,541
Securities available for sale - at fair value .............. 2,991,167 4,090,525 4,696,241
Investment securities - fair value $14,868; $16,414;
and $17,000, respectively ............................. 14,629 16,336 17,053
Total loans (1) ............................................ 21,583,611 20,610,191 20,328,152
Less allowance for loan losses ........................ 360,446 297,880 294,686
------------ ------------ ------------
Net loans .................................................. 21,223,165 20,312,311 20,033,466
------------ ------------ ------------
Bank owned life insurance .................................. 833,623 804,941 793,856
Premises and equipment ..................................... 447,774 454,844 442,676
Customers' acceptance liability ............................ 16,382 17,366 14,065
Accrued income and other assets ............................ 1,314,510 1,282,374 1,334,263
------------ ------------ ------------
TOTAL ASSETS ............................................... $ 28,316,175 $ 28,599,377 $ 28,577,193
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Total deposits (1) ......................................... $ 20,071,388 $ 19,777,245 $ 19,533,166
Short-term borrowings ...................................... 1,789,043 1,987,759 2,133,311
Bank acceptances outstanding ............................... 16,382 17,366 14,065
Medium-term notes .......................................... 1,995,603 2,467,150 2,702,150
Subordinated notes and other long-term debt ................ 899,605 870,976 870,889
Company obligated mandatorily redeemable preferred
capital securities of subsidiary trusts holding solely
junior subordinated debentures of the Parent Company .... 300,000 300,000 300,000
Accrued expenses and other liabilities ..................... 839,748 812,834 740,047
------------ ------------ ------------
Total Liabilities ..................................... 25,911,769 26,233,330 26,293,628
------------ ------------ ------------
Shareholders' equity
Preferred stock - authorized 6,617,808 shares;
none outstanding ................................. -- -- --
Common stock - without par value; authorized
500,000,000 shares; issued 257,866,255;
257,866,255; and 257,866,255 shares, respectively;
outstanding 251,193,211; 250,859,470; and
250,849,574 shares, respectively ................. 2,489,564 2,493,645 2,493,912
Less 6,673,044; 7,006,785; and 7,016,681
treasury shares, respectively .................... (122,485) (129,432) (128,995)
Accumulated other comprehensive income ................ 38,708 (24,520) (81,647)
Retained earnings ..................................... (1,381) 26,354 295
------------ ------------ ------------
Total Shareholders' Equity ............................ 2,404,406 2,366,047 2,283,565
------------ ------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................. $ 28,316,175 $ 28,599,377 $ 28,577,193
============ ============ ============
(1) See page 4 for detail of total loans and total deposits.
Page 2
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------------------------- --------------------------------
On an Operating Basis (1) 2001 2000 2001 2000
--------------------------------------------------- ------------------ ----------------- ------------- --------------
Interest and fee income
Loans ........................................ $ 421,337 $ 459,860 $ 1,302,819 $ 1,348,103
Securities ................................... 50,495 71,385 169,763 211,427
Other ........................................ 7,002 4,546 23,186 11,314
------------ ------------ ------------ ------------
TOTAL INTEREST INCOME .............. 478,834 535,791 1,495,768 1,570,844
------------ ------------ ------------ ------------
Interest expense
Deposits ..................................... 162,982 202,659 518,351 577,521
Short-term borrowings ........................ 19,932 30,998 83,134 80,978
Medium-term notes ............................ 30,647 44,292 100,250 143,489
Subordinated notes and other long-term debt .. 15,486 21,973 53,089 59,490
------------ ------------ ------------ ------------
TOTAL INTEREST EXPENSE ............. 229,047 299,922 754,824 861,478
------------ ------------ ------------ ------------
NET INTEREST INCOME ................ 249,787 235,869 740,944 709,366
Provision for loan losses ......................... 49,559 26,396 128,800 57,931
------------ ------------ ------------ ------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 200,228 209,473 612,144 651,435
------------ ------------ ------------ ------------
Total non-interest income (2) ..................... 130,456 121,652 381,633 363,010
Total non-interest expense (2) .................... 228,890 213,585 696,276 611,767
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAXES ......... 101,794 117,540 297,501 402,678
Provision for income taxes ........................ 26,134 34,510 79,471 117,954
------------ ------------ ------------ ------------
NET INCOME ......................... $ 75,660 $ 83,030 $ 218,030 $ 284,724
============ ============ ============ ============
PER COMMON SHARE (3)
Net income
Basic ................................... $ 0.30 $ 0.33 $ 0.87 $ 1.15
Diluted ................................. $ 0.30 $ 0.33 $ 0.87 $ 1.14
Cash dividends declared ...................... $ 0.16 $ 0.20 $ 0.56 $ 0.56
AVERAGE COMMON SHARES (3)
Basic ................................... 251,147,660 251,113,540 251,039,150 247,983,936
Diluted ................................. 252,203,027 252,032,874 251,537,099 248,908,848
(1) Excludes the after-tax impact of Restructuring and Other Charges ($33,031
in 3Q '01; $72,127 in 2Q '01; $32,500 in 3Q '00).
(2) See page 5 for detail of non-interest income and non-interest expense.
(3) Adjusted for stock splits and stock dividends, as applicable.
Page 3
HUNTINGTON BANCSHARES INCORPORATED
LOANS AND DEPOSITS
(in thousands of dollars)
--------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
SEPTEMBER 30, 2001
--------------------------------
BALANCE %
------------------- ----------
Commercial and Commercial Real Estate
Commercial (unearned income $1,080; $1,538; $1,728) ................ $ 6,655,550 30.8
Real Estate
Construction.................................................... 1,483,871 6.9
Commercial...................................................... 2,374,168 11.0
-----------
TOTAL COMMERCIAL AND COMMERCIAL REAL ESTATE................... 10,513,589 48.7
-----------
Consumer
Loans (unearned income $3,005; $4,150; $4,523) .................. 6,989,965 32.4
Leases (unearned income $517,195; $515,445; $503,369)............ 3,221,300 14.9
Residential Mortgage............................................... 858,757 4.0
-----------
TOTAL CONSUMER................................................ 11,070,022 51.3
-----------
TOTAL LOANS....................................................... $ 21,583,611 100.0
============
December 31, 2000
-------------------------------
Balance %
------------------- ---------
Commercial and Commercial Real Estate
Commercial (unearned income $1,080; $1,538; $1,728) ................ $ 6,633,985 32.2
Real Estate
Construction.................................................... 1,318,899 6.4
Commercial...................................................... 2,253,477 10.9
-----------
TOTAL COMMERCIAL AND COMMERCIAL REAL ESTATE................... 10,206,361 49.5
-----------
Consumer
Loans (unearned income $3,005; $4,150; $4,523) .................. 6,388,036 31.0
Leases (unearned income $517,195; $515,445; $503,369)............ 3,069,210 14.9
Residential Mortgage............................................... 946,584 4.6
-----------
TOTAL CONSUMER................................................ 10,403,830 50.5
-----------
TOTAL LOANS....................................................... $ 20,610,191 100.0
============
September 30, 2000
-------------------------------
Balance %
------------------- ---------
Commercial and Commercial Real Estate
Commercial (unearned income $1,080; $1,538; $1,728) ................ $ 6,494,013 32.0
Real Estate
Construction.................................................... 1,288,897 6.3
Commercial...................................................... 2,218,825 10.9
-----------
TOTAL COMMERCIAL AND COMMERCIAL REAL ESTATE................... 10,001,735 49.2
-----------
Consumer
Loans (unearned income $3,005; $4,150; $4,523) .................. 6,403,858 31.5
Leases (unearned income $517,195; $515,445; $503,369)............ 3,007,446 14.8
Residential Mortgage............................................... 915,113 4.5
-----------
TOTAL CONSUMER................................................ 10,326,417 50.8
-----------
TOTAL LOANS....................................................... $ 20,328,152 100.0
============
--------------------------------------------------------------------------------
DEPOSIT COMPOSITION
--------------------------------------------------------------------------------
SEPTEMBER 30, 2001 December 31, 2000 September 30, 2000
---------------------- -------------------------- -------------------------
BALANCE % Balance % Balance %
------------ ------ --------------- ------- ------------ ----------
Demand deposits
Non-interest bearing .. $ 3,464,430 17.4 $ 3,480,876 17.6 $ 3,169,099 16.3
Interest bearing ...... 5,302,394 26.4 4,645,127 23.5 4,359,430 22.4
Savings deposits ........... 3,458,986 17.2 3,527,796 17.8 3,541,828 18.1
Certificates of deposit
Less than $100,000 ..... 5,936,652 29.6 5,938,486 30.0 5,927,733 30.3
$100,000 or more ....... 1,413,068 7.0 1,520,547 7.7 1,547,529 7.9
---------- ---------- ----------
TOTAL CORE DEPOSITS .. 19,575,530 97.6 19,112,832 96.6 18,545,619 95.0
---------- ---------- ----------
Other domestic time deposits 128,878 0.6 256,106 1.3 666,693 3.4
Foreign time deposits ...... 366,980 1.8 408,307 2.1 320,854 1.6
---------- ---------- ----------
TOTAL DEPOSITS ...... $20,071,388 100.0 $19,777,245 100.0 $19,533,166 100.0
=========== =========== ===========
Page 4
HUNTINGTON BANCSHARES INCORPORATED
NONINTEREST INCOME AND NONINTEREST EXPENSE
(in thousands of dollars)
--------------------------------------------------------------------------------
ANALYSIS OF NON-INTEREST INCOME
--------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- PERCENT ------------------- PERCENT
On an Operating Basis (1) 2001 2000 CHANGE 2001 2000 CHANGE
------------------------------------------- -------- -------- ------ -------- -------- -------
Service charges on deposit accounts ....... $ 41,719 $ 39,722 5.0% $121,299 $121,479 (0.1)%
Brokerage and insurance income ............ 19,912 15,564 27.9 58,068 44,793 29.6
Trust services ............................ 15,485 13,181 17.5 44,977 39,209 14.7
Mortgage banking .......................... 14,616 9,412 55.3 43,380 26,049 66.5
Electronic banking fees ................... 12,350 11,238 9.9 35,665 32,337 10.3
Bank Owned Life Insurance income .......... 9,560 9,786 (2.3) 28,681 28,458 0.8
Other ..................................... 15,755 11,370 38.6 43,679 34,429 26.9
-------- -------- -------- --------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
GAINS .................................. 129,397 110,273 17.3 375,749 326,754 15.0
Securities gains .......................... 1,059 11,379 N.M. 5,884 36,256 N.M.
-------- -------- -------- --------
TOTAL NON-INTEREST INCOME ................. $130,456 $121,652 7.2% $381,633 $363,010 5.1%
======== ======== ======== ========
--------------------------------------------------------------------------------
ANALYSIS OF NON-INTEREST EXPENSE
--------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- PERCENT -------------------- PERCENT
On an Operating Basis (1) 2001 2000 CHANGE 2001 2000 CHANGE
------------------------------------------------- -------- ---------- ------- --------- -------- -------
Personnel and related costs...................... $120,767 $109,463 10.3% $360,497 $315,940 14.1%
Equipment ....................................... 20,151 18,983 6.2 59,967 57,258 4.7
Net occupancy ................................... 19,266 19,520 (1.3) 57,234 57,268 (0.1)
Outside data processing and other services....... 17,375 15,531 11.9 51,700 45,869 12.7
Amortization of intangible assets................ 10,114 10,311 (1.9) 31,125 28,713 8.4
Marketing........................................ 6,921 8,557 (19.1) 24,712 24,292 1.7
Telecommunications............................... 6,859 6,480 5.9 21,191 19,701 7.6
Legal and other professional services............ 5,912 4,719 25.3 17,644 14,034 25.7
Printing and supplies............................ 4,450 4,849 (8.2) 14,074 14,422 (2.4)
Franchise and other taxes........................ 2,470 2,841 (13.1) 6,836 7,914 (13.6)
Other............................................ 14,605 12,331 18.4 51,296 26,356 94.6
-------- -------- ------- -------
TOTAL NON-INTEREST EXPENSE ...................... $228,890 $213,585 7.2% $696,276 $611,767 13.8%
======== ======== ======== ========
(1) Excludes the impact Restructuring and Other Charges.
N.M. = Not Meaningful.
Page 5
HUNTINGTON BANCSHARES INCORPORATED
--------------------------------------------------------------------------------
CONSOLIDATED AVERAGE BALANCES AND INTEREST RATES (QUARTERLY DATA)
THIRD QUARTER 2001 SECOND QUARTER 2001 FIRST QUARTER 2001
------------------------ ------------------------- -----------------------
Fully Tax Equivalent Basis (1) AVERAGE YIELD/ AVERAGE YIELD/ AVERAGE YIELD/
(in millions of dollars) BALANCE RATE BALANCE RATE BALANCE RATE
---------------------------------------------- -------- ---------- --------- ---------- -------- ----------
ASSETS
Interest bearing deposits in banks ........... $ 5 3.75% $ 5 5.09% $ 5 5.24%
Trading account securities ................... 8 3.83 39 5.15 48 5.52
Federal funds sold and securities purchased
under resale agreements ................... 86 3.20 93 4.21 164 5.78
Loans held for sale .......................... 344 7.18 420 6.96 240 7.19
Securities:
Taxable ................................ 2,896 6.71 3,368 6.26 3,606 6.72
Tax exempt ............................. 140 7.38 201 7.26 248 7.55
------- ------- --------
Total Securities .................. 3,036 6.75 3,569 6.32 3,854 6.77
------- ------- --------
Loans:
Commercial .............................. 6,681 6.92 6,741 7.44 6,678 8.19
Real Estate
Construction ....................... 1,388 6.62 1,303 7.43 1,263 8.31
Commercial ......................... 2,346 7.54 2,294 7.92 2,324 8.40
Consumer
Loans ............................. 6,865 8.12 6,552 8.57 6,397 8.95
Leases ............................ 3,214 6.66 3,189 6.71 3,082 6.90
Residential Mortgage .............. 854 7.54 942 7.72 960 7.91
------- ------- --------
Total Consumer .................... 10,933 7.65 10,683 7.94 10,439 8.25
------- ------- --------
Total Loans .................................. 21,348 7.34 21,021 7.75 20,704 8.25
------- ------- --------
Allowance for loan losses .................... 358 316 307
------- ------- --------
Net loans (2) ................................ 20,990 7.87 20,705 8.31 20,397 8.74
------- ------- --------
Total earning assets ......................... 24,827 7.70% 25,147 7.98% 25,015 8.39%
------- ------- --------
Cash and due from banks ...................... 910 910 952
All other assets ............................. 2,609 2,608 2,579
------- ------- --------
TOTAL ASSETS ................................. $27,988 $28,349 $ 28,239
======= ======= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits ........... $ 3,341 $ 3,252 $ 3,213
Interest bearing demand deposits ........ 5,096 2.74% 4,799 2.87% 4,597 3.29%
Savings deposits ........................ 3,472 3.00 3,547 3.42 3,505 3.85
Certificates of deposit ................. 7,202 5.40 7,012 5.74 7,318 6.01
------- ------- --------
Total core deposits ................ 19,111 3.31 18,610 3.55 18,633 3.89
------- ------- --------
Other domestic time deposits ................. 120 4.42 118 5.57 167 6.37
Foreign time deposits ........................ 257 3.39 377 4.11 267 5.45
------- ------- --------
Total deposits .......................... 19,488 3.32 19,105 3.58 19,067 3.94
------- ------- --------
Short-term borrowings ........................ 2,157 3.69 2,759 4.37 2,504 5.37
Medium-term notes ............................ 1,990 6.12 2,005 6.59 2,240 6.64
Subordinated notes and other long-term debt,
including preferred capital securities .... 1,167 5.19 1,180 5.96 1,171 6.81
------- ------- --------
Interest bearing liabilities ............ 21,461 4.23% 21,797 4.62% 21,769 5.12%
------- ------- --------
All other liabilities ........................ 811 897 869
Shareholders' equity ......................... 2,375 2,403 2,388
------- ------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ... $27,988 $28,349 $ 28,239
======= ======= ========
Net interest rate spread ..................... 3.47% 3.36% 3.27%
Impact of non-interest bearing funds on margin 0.57% 0.61% 0.66%
NET INTEREST MARGIN .......................... 4.04% 3.97% 3.93%
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate.
(2) Net loan rate includes loan fees, whereas individual loan components above
are shown exclusive of fees.
Page 14
HUNTINGTON BANCSHARES INCORPORATED
--------------------------------------------------------------------------------
CONSOLIDATED AVERAGE BALANCES AND INTEREST RATES (QUARTERLY DATA)
FOURTH QUARTER 2000 THIRD QUARTER 2000
---------------------------- --------------------------------
Fully Tax Equivalent Basis (1) AVERAGE YIELD/ AVERAGE YIELD/
(in millions of dollars) BALANCE RATE BALANCE RATE
------------------------------------------------ ----------- ---------- -------------- -------------
ASSETS
Interest bearing deposits in banks ........... $ 5 5.50% $ 5 6.13%
Trading account securities ................... 17 6.56 11 6.54
Federal funds sold and securities purchased
under resale agreements ................... 85 6.53 136 6.43
Loans held for sale .......................... 129 7.74 99 8.51
Securities:
Taxable ................................ 4,410 6.31 4,273 6.33
Tax exempt ............................. 264 7.53 270 7.57
------- --------
Total Securities .................. 4,674 6.38 4,543 6.40
------- --------
Loans:
Commercial .............................. 6,543 8.65 6,454 8.74
Real Estate
Construction ....................... 1,306 8.87 1,283 8.88
Commercial ......................... 2,227 8.64 2,193 8.60
Consumer
Loans ............................. 6,425 8.90 6,392 8.82
Leases ............................ 3,049 6.92 2,976 6.79
Residential Mortgage .............. 940 7.94 1,325 7.64
------- --------
Total Consumer .................... 10,414 8.24 10,693 8.11
------- --------
Total Loans .................................. 20,490 8.45 20,623 8.41
------- --------
Allowance for loan losses .................... 302 302
------- --------
Net loans (2) ................................ 20,188 8.96 20,321 8.90
------- --------
Total earning assets ......................... 25,400 8.47% 25,417 8.43%
------- --------
Cash and due from banks ...................... 960 968
All other assets ............................. 2,597 2,615
------- --------
TOTAL ASSETS ................................. $28,655 $ 28,698
======= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits ........... $ 3,308 $ 3,425
Interest bearing demand deposits ........ 4,496 3.62% 4,385 3.47%
Savings deposits ........................ 3,498 4.28 3,528 4.14
Certificates of deposit ................. 7,522 6.07 7,450 5.94
------- --------
Total core deposits ................ 18,824 4.96 18,788 4.82
------- --------
Other domestic time deposits ................. 365 6.68 433 6.55
Foreign time deposits ........................ 322 6.37 561 6.63
------- --------
Total deposits .......................... 19,511 5.02 19,782 4.93
------- --------
Short-term borrowings ........................ 2,133 6.00 2,014 6.12
Medium-term notes ............................ 2,665 6.85 2,592 6.81
Subordinated notes and other long-term debt,
including preferred capital securities .... 1,171 7.42 1,171 7.39
------- --------
Interest bearing liabilities ............ 22,172 5.46% 22,134 5.39%
------- --------
All other liabilities ........................ 822 787
Shareholders' equity ......................... 2,353 2,352
------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ... $28,655 $ 28,698
======= ========
Net interest rate spread ..................... 3.01% 3.04%
Impact of non-interest bearing funds on margin 0.69% 0.70%
NET INTEREST MARGIN .......................... 3.70% 3.74%
----------------------------------
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate.
(2) Net loan rate includes loan fees, whereas individual loan components above
are shown exclusive of fees.
Page 15
HUNTINGTON BANCSHARES INCORPORATED
SELECTED QUARTERLY INCOME STATEMENT DATA
(in thousands of dollars, except per share amounts)
2001 2000
------------------------------ -------------------
On an Operating Basis (1) 3Q 2Q 1Q 4Q 3Q
------------------------------------------- -------- -------- -------- -------- --------
TOTAL INTEREST INCOME ..................... $478,834 $498,959 $517,975 $537,661 $535,791
TOTAL INTEREST EXPENSE .................... 229,047 250,926 274,851 304,595 299,922
-------- -------- -------- -------- --------
NET INTEREST INCOME ....................... 249,787 248,033 243,124 233,066 235,869
Provision for loan losses ................. 49,559 45,777 33,464 32,548 26,396
-------- -------- -------- -------- --------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ............... 200,228 202,256 209,660 200,518 209,473
-------- -------- -------- -------- --------
Service charges on deposit accounts ....... 41,719 40,673 38,907 39,248 39,722
Brokerage and insurance income ............ 19,912 19,388 18,768 17,078 15,564
Trust services ............................ 15,485 15,178 14,314 14,404 13,181
Mortgage banking .......................... 14,616 18,733 10,031 11,976 9,412
Electronic banking fees ................... 12,350 12,217 11,098 11,546 11,238
Bank Owned Life Insurance income .......... 9,560 9,561 9,560 11,086 9,786
Other ..................................... 15,755 14,956 12,968 24,366 11,370
-------- -------- -------- -------- --------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
GAINS .................................. 129,397 130,706 115,646 129,704 110,273
Securities gains .......................... 1,059 2,747 2,078 845 11,379
-------- -------- -------- -------- --------
TOTAL NON-INTEREST INCOME ................. 130,456 133,453 117,724 130,549 121,652
-------- -------- -------- -------- --------
Personnel and related costs ............... 120,767 122,068 117,662 105,810 109,463
Equipment ................................. 20,151 19,844 19,972 20,811 18,983
Net occupancy ............................. 19,266 18,188 19,780 18,614 19,520
Outside data processing and other services 17,375 17,671 16,654 16,142 15,531
Amortization of intangible assets ......... 10,114 10,435 10,576 10,494 10,311
Marketing ................................. 6,921 7,852 9,939 10,592 8,557
Telecommunications ........................ 6,859 7,207 7,125 6,524 6,480
Legal and other professional services ..... 5,912 6,763 4,969 6,785 4,719
Printing and supplies ..................... 4,450 4,565 5,059 5,212 4,849
Franchise and other taxes ................. 2,470 2,246 2,120 3,163 2,841
Other ..................................... 14,605 16,457 20,234 19,703 12,331
-------- -------- -------- -------- --------
TOTAL NON-INTEREST EXPENSE ................ 228,890 233,296 234,090 223,850 213,585
-------- -------- -------- -------- --------
INCOME BEFORE INCOME TAXES ................ 101,794 102,413 93,294 107,217 117,540
Provision for income taxes ................ 26,134 27,909 25,428 30,995 34,510
-------- -------- -------- -------- --------
NET INCOME ................................ $ 75,660 $ 74,504 $ 67,866 $ 76,222 $ 83,030
======== ======== ======== ======== ========
PER COMMON SHARE (2)
Net income
Diluted .............................. $ 0.30 $ 0.30 $ 0.27 $ 0.30 $ 0.33
Diluted - Cash Basis ................. $ 0.33 $ 0.33 $ 0.30 $ 0.33 $ 0.36
Cash Dividends Declared .................. $ 0.16 $ 0.20 $ 0.20 $ 0.20 $ 0.20
FULLY TAX EQUIVALENT MARGIN:
Net Interest Income ....................... $249,787 $248,033 $243,124 $233,066 $235,869
Tax Equivalent Adjustment (3) ............. 1,442 1,616 2,002 2,057 2,022
-------- -------- -------- -------- --------
Tax Equivalent Net Interest Income ........ $251,229 $249,649 $245,126 $235,123 $237,891
======== ======== ======== ======== ========
(1) Excludes the after-tax impact of Restructuring and Other Charges ($33,031
in 3Q '01; $72,127 in 2Q '01; $32,500 in 3Q '00).
(2) Adjusted for stock splits and stock dividends, as applicable.
(3) Calculated assuming a 35% tax rate.
Page 8
HUNTINGTON BANCSHARES INCORPORATED
STOCK SUMMARY, KEY RATIOS AND STATISTICS, AND CAPITAL DATA
--------------------------------------------------------------------------------
QUARTERLY COMMON STOCK SUMMARY (1)
--------------------------------------------------------------------------------
2001 2000
--------------------------------------- ----------------------------
3 Q 2 Q 1 Q 4 Q 3 Q
--------- --------- --------- --------- -----------
High ......................................... $ 19.280 $ 17.000 $ 18.000 $ 16.375 $ 18.813
Low .......................................... 15.150 13.875 12.625 12.516 14.375
Close ........................................ 17.310 16.375 14.250 16.188 14.688
Cash dividends declared ...................... $ 0.16 $ 0.20 $ 0.20 $ 0.20 $ 0.20
Note: Stock price quotations were obtained from NASDAQ.
------------------------------------------------------------------------------
KEY RATIOS AND STATISTICS
------------------------------------------------------------------------------
MARGIN ANALYSIS - AS A % 2001 2000
OF AVERAGE EARNING ASSETS (2) -------------------------------------- ----------------------------
---------------------------------------------- 3 Q 2 Q 1 Q 4 Q 3 Q
-------- --------- --------- --------- -----------
Interest Income .............................. 7.70% 7.98% 8.39% 8.47% 8.43%
Interest Expense ............................. 3.66% 4.01% 4.46% 4.77% 4.69%
------ ------ ------ ------ -------
Net Interest Margin ..................... 4.04% 3.97% 3.93% 3.70% 3.74%
====== ====== ====== ====== =======
RETURN ON (3)
----------------------------------------------
Average total assets ......................... 1.07% 1.05% 0.97% 1.06% 1.15%
Average total assets - cash basis ............ 1.21% 1.19% 1.11% 1.19% 1.29%
Average shareholders' equity ................. 12.64% 12.43% 11.53% 12.89% 14.04%
Average shareholders' equity - cash basis .... 13.93% 13.72% 12.86% 14.20% 15.33%
Efficiency Ratio (3) ......................... 57.48% 58.59% 61.95% 58.48% 58.38%
Effective tax rate (3) ....................... 25.67% 27.25% 27.26% 28.91% 29.36%
------------------------------------------------------------------------------
CAPITAL DATA
------------------------------------------------------------------------------
2001 2000
--------------------------------------- ---------------------------
(in millions of dollars) 3 Q 2 Q 1 Q 4 Q 3 Q
---------------------------------------------- -------- --------- --------- --------- ----------
Total Risk-Adjusted Assets (4) ............... $ 27,764 $ 27,375 $ 27,230 $ 26,880 $ 26,370
Tier 1 Risk-Based Capital Ratio (4) .......... 6.97% 7.01% 7.19% 7.19% 7.20%
Total Risk-Based Capital Ratio (4) ........... 10.13% 10.20% 10.31% 10.46% 10.64%
Tier 1 Leverage Ratio (4) .................... 7.10% 6.96% 7.12% 6.93% 6.80%
Tangible Equity/Asset Ratio .................. 5.96% 5.97% 6.01% 5.87% 5.73%
(1) Adjusted for stock splits and stock dividends, as applicable.
(2) Presented on a fully tax equivalent basis assuming a 35% tax rate.
(3) Income component excludes the impact of Restructuring and Other Charges.
(4) Estimated.
Page 9
HUNTINGTON BANCSHARES INCORPORATED
LOAN LOSS RESERVES AND ASSET QUALITY
(in thousands of dollars)
--------------------------------------------------------------------------------
LOAN LOSS EXPERIENCE
--------------------------------------------------------------------------------
-------------------------- --------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2001 (1) 2000 2001 (1) 2000
--------- --------- --------- ---------
ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD ................. $ 352,243 $ 296,891 $ 297,880 $ 299,309
Allowance acquired ............................................. -- -- -- 7,900
Loan Losses .................................................... (49,386) (29,499) (160,507) (77,916)
Recoveries of loans previously charged off ..................... 9,643 5,705 27,206 20,325
Allowance of securitized loans ................................. (1,613) (4,807) (4,651) (12,863)
Provision for loan losses ...................................... 49,559 26,396 200,518 57,931
--------- --------- --------- ---------
ALLOWANCE FOR LOAN LOSSES END OF PERIOD ........................ $ 360,446 $ 294,686 $ 360,446 $ 294,686
========= ========= ========= =========
AS A % OF AVERAGE TOTAL LOANS
Net loan losses--annualized .................................. 0.74% 0.46% 0.85% 0.37%
Net loan losses--annualized excluding special charges ........ 0.61% 0.46% 0.63% 0.37%
Allowance for loan losses as a % of total loans ................ 1.67% 1.45% 1.67% 1.45%
Net loan loss coverage (2) ..................................... 3.81x 6.05x 3.20x 8.00x
(1) Including restructuring and other charges unless otherwise indicated.
(2) Income before taxes (excluding restructuring and other charges) and the
provision for loan losses to net loan losses.
</Table>
--------------------------------------------------------------------------------
NON-PERFORMING ASSETS AND PAST DUE LOANS--END OF PERIOD
--------------------------------------------------------------------------------
<Table>
---------------------------------------- ------------------------
2001 2000
---------------------------------------- ------------------------
3 Q 2 Q 1 Q 4 Q 3 Q
-------- -------- -------- -------- --------
Non-accrual loans:
Commercial ......................................... $148,177 $116,044 $ 62,716 $ 55,804 $ 44,918
Real Estate
Construction .................................... 10,983 4,572 6,735 8,687 7,973
Commercial ...................................... 29,899 22,298 28,158 18,015 13,722
Residential ..................................... 11,666 11,868 11,949 10,174 8,588
-------- -------- -------- -------- --------
Total Nonaccrual Loans ............................. 200,725 154,782 109,558 92,680 75,201
Renegotiated loans ................................. 1,286 1,290 1,297 1,304 1,311
-------- -------- -------- -------- --------
TOTAL NON-PERFORMING LOANS ......................... 202,011 156,072 110,855 93,984 76,512
Other real estate, net ............................. 8,050 9,913 14,031 11,413 11,982
-------- -------- -------- -------- --------
TOTAL NON-PERFORMING ASSETS ........................ $210,061 $165,985 $124,886 $105,397 $ 88,494
======== ======== ======== ======== ========
Non-performing loans as a
% of total loans ................................ 0.94% 0.74% 0.53% 0.46% 0.38%
Non-performing assets as a
% of total loans and other real estate .......... 0.97% 0.79% 0.60% 0.51% 0.44%
Allowance for loan losses as a % of
non-performing loans ............................ 178.43% 225.69% 272.23% 316.95% 385.15%
Allowance for loan losses and other real
estate as a % of non-performing assets .......... 171.08% 211.20% 239.42% 279.16% 326.77%
Accruing loans past due 90 days or more ............ $ 92,791 $ 67,077 $102,658 $ 80,306 $ 80,290
======== ======== ======== ======== ========
Page 10