Exhibit 99.2
[HUNTINGTON LOGO]
SALOMON SMITH BARNEY
FINANCIAL SERVICES EQUITY CONFERENCE
NEW YORK CITY
JANUARY 31, 2002
1
AGENDA
- -OVERVIEW AND PROGRESS UPDATE HOAGLIN
- -CREDIT REVIEW
MCMENNAMIN
- -FINANCIAL PERFORMANCE TRENDS
& ACHIEVEMENTS MCMENNAMIN
- -2002 OUTLOOK & KEY PRIORITIES HOAGLIN
2
OVERVIEW AND
PROGRESS UPDATE
3
HUNTINGTON BANCSHARES OVERVIEW (1)
MIDWEST FINANCIAL SERVICES HOLDING COMPANY
FOUNDED - 1866
HEADQUARTERS - COLUMBUS, OHIO
TOTAL ASSETS - $26 BILLION
FRANCHISE:
RETAIL AND COMMERCIAL BANKING 5 STATES / 6 REGIONS
332 OFFICES / 954 ATMS
DEALER SALES 5 STATES + FL, TN, PA, AZ
PRIVATE FINANCIAL GROUP 5 STATES + FL
MORTGAGE BANKING 5 STATES + FL, MD, NJ
(1) EXCLUDES FLORIDA RETAIL AND COMMERCIAL BANKING OPERATIONS PENDING SALE TO
SUNTRUST
4
THE HUNTINGTON FRANCHISE
FOCUS ON THE MIDWEST 4Q01 LINE OF BUSINESS EARNINGS
- -------------------- ------------------------------
CONTRIBUTION (1)
MICHIGAN ----------------
Mortgage Banking - 8%
OFFICES 114 Retail Banking - 38%
ATMS 192 Corporate Banking - 17%
DETROIT 3% Dealer Sales - 20%
GRAND RAPIDS 10% Private Financial Group - 17%
OHIO
OFFICES 155 (1) OPERATING BASIS AND BEFORE
ATMS 544 TREASURY/OTHER AND INTERNAL ALLOCATIONS
CINCINNATI 2%
CLEVELAND 3%
COLUMBUS 13%
DAYTON 3%
TOLEDO 9%
INDIANA
OFFICES 21
ATMS 86
INDIANAPOLIS 2%
KENTUCKY
OFFICES 12
ATMS 42
WEST VIRGINIA
OFFICES 30
ATMS 90
CHARLESTON 9%
5
2001 OBJECTIVES REPORT CARD
- - DIVEST FLORIDA BANKING OPERATIONS 2/15/02
- - CONSOLIDATE NON-FLORIDA BANKING OFFICES DONE
- - REDUCE THE DIVIDEND DONE
- - BUILD NEW MANAGEMENT TEAM DONE
- - RESTRUCTURE THE BALANCE SHEET DONE
- - IMPROVE OPERATING EFFICIENCIES
- GROW REVENUES DONE
- REMOVE $36 MILLION OF NIE GROWTH DONE
- - BUILD CAPITAL DONE
- - EXIT UNPROFITABLE E-BUSINESSES DONE
6
BUILDING A NEW CULTURE
<Table>
OBJECTIVE ACTION
--------- ------
- - EMPOWERED EMPLOYEES WITH A SENSE OF - "GO AHEAD" EMPHASIS
URGENCY
- - DECISION MAKING CLOSER TO CUSTOMERS - ESTABLISHED REGIONAL BANKING STRUCTURE
WITH 5 NEW PRESIDENTS
- - BROADER ASSOCIATE OWNERSHIP
- COMPANY-WIDE STOCK OPTION GRANT
- - SALES CULTURE - INITIATED WEEKLY SALES MANAGEMENT PROCESS
- IMPROVED FINANCIAL REPORTING WITH BANKING
- - ACCOUNTABILITY OFFICE P & LS THIS YEAR
- - PAY FOR PROFITABLE PERFORMANCE - CHANGED INCENTIVE COMPENSATION PLANS
</Table>
7
STRENGTHEN COMMERCIAL CREDIT CULTURE
IMPROVED CREDIT PROCESS CREDIT APPROVAL
- ----------------------- ---------------
- - CREATED NEW SENIOR
LENDER POSITION CENTRAL REGIONS
- - SEPARATED CREDIT APPROVAL ------- -------
FROM ORIGINATION CHIEF CREDIT ____
- - CENTRALIZATION OF SHARED OFFICER |
NATIONAL CREDIT REVIEW / >$40 MM |
APPROVAL |
- - CREATED SYNDICATION SENIOR LENDER____|
FUNCTION $15-$40 MM |
- - FOCUS ON WHAT |
CONSTITUTES A REGIONAL CREDIT__|
"HUNTINGTON" DEAL OFFICER |
$10-$15 MM |
|
|____PORTFOLIO
MANAGER <$10 MM
8
STRENGTHEN COMMERCIAL CREDIT CULTURE
A "HUNTINGTON" DEAL
- -------------------
- - HUNTINGTON IS THEIR PRIMARY BANK
- - WE KNOW THEIR MANAGEMENT
- - IN MARKET
- - DEFINED LEVERAGE STANDARDS
- - PROVEN CASH FLOW
- - SECONDARY SOURCE OF REPAYMENT CAPACITY
- - DEFINED EXPOSURE LIMITS GIVEN RISK RATING
- - PRICING THAT MEETS OR EXCEEDS PRICING GRID
9
STRENGTHEN AUTO CREDIT FOCUS
- - REDUCED ORIGINATION VOLUME IN LOWEST FICO SCORE TIER
1Q00 4Q01
---- ----
LOANS 20% 3%
LEASES 15% 4%
- - RAISED AVERAGE FICO SCORES ON TOTAL ORIGINATIONS
- - REDUCED POLICY EXCEPTIONS
- - EXPECTED LOSSES ON 2001 LOAN ORIGINATIONS TARGETED AT
40% BELOW 4Q99-3Q00 ORIGINATION EXPERIENCE
10
REGIONAL BANKING
RETAIL AND COMMERCIAL 2001 PROGRESS SNAPSHOTS
- ---------------------------------------------
- - 5 OF 6 REGIONAL PRESIDENTS ARE NEW
- - TOP 25 POINT-OF-SALE MERCHANT SERVICES PROVIDER
- - ENHANCED TREASURY MANAGEMENT CAPABILITIES
- - EMPOWERED EMPLOYEES
- - NEW AD CAMPAIGN - "LOCAL BANK WITH NATIONAL RESOURCES"
- - NEW "BUSINESS MONEY MANAGER" ACCOUNT - BUNDLED PRODUCT SET FOR SMALL
BUSINESSES
- - NEW EQUIPMENT LEASING AND SYNDICATION CAPABILITIES
- - NEW CUSTOMER DERIVATIVES CAPABILITY...$8 MILLION IN NEW FEES
11
REGIONAL BANKING LOAN AND DEPOSIT GROWTH
CHANGE IN 4Q01 VS. 2Q01 AVERAGES
- --------------------------------
LOANS CORE DEPOSITS
-------------- -------------
($MM) RETAIL COM'L RETAIL COM'L
------ ----- ------ -----
CENTRAL OHIO / WV $(32.3) $55.6 $208.7 $35.9
NORTHERN OHIO 16.6 9.9 97.7 43.7
SOUTHERN OHIO / KY 9.9 48.1 67.4 16.5
INDIANA 9.3 29.2 (0.2) 4.8
MICHIGAN 53.7 27.3 206.2 (39.9)
----- ------ ------ -----
TOTAL $57.2 $170.1 $579.8 $61.0
ANNUALIZED % CHANGE 2.8% 5.4% 10.4% 7.2%
12
RETAIL BANKING
IMMEDIATE PRIORITIES NET HOUSEHOLD ACQUISITIONS
- -------------------- --------------------------
- - IMPROVE CUSTOMER SERVICE LOST HH NEW HH
JAN-00 6,084 5,316
- - INCREASE CUSTOMER RETENTION FEB-00 6,733 5,423
MAR-00 6,996 5,626
- - INCREASE REVENUES THROUGH STRONGER SALES APR-00 5,935 4,713
MAY-00 5,737 5,398
- ATTRACT NEW CUSTOMERS JUN-00 4,933 6,614
JUL-00 3,944 5,882
- INCREASE CROSS-SELLS TO AUG-00 4,420 7,832
EXISTING CUSTOMERS SEP-00 3,512 6,662
OCT-00 5,211 7,050
- - IMPLEMENT BANKING OFFICE NOV-00 3,860 5,844
P & L's / STRENGTHEN DEC-00 3,682 5,422
ACCOUNTABILITY JAN-01 4,820 6,411
FEB-01 4,425 6,143
- - ACCELERATE WEST MICHIGAN MAR-01 4,334 6,922
TURNAROUND APR-01 4,928 7,430
MAY-01 5,674 7,125
- - FOCUS ON BUSINESS BANKING JUN-01 5,640 7,810
JUL-01 5,578 10,545
AUG-01 5,851 12,313
SEP-01 4,503 7,238
OCT-01 6,217 7,587
NOV-01 5,207 7,414
DEC-01 5,023 6,931
13
COMMERCIAL BANKING
IMMEDIATE PRIORITIES
- --------------------
- - RELENTLESS FOCUS ON MANAGING CREDIT RISK
- - IMPROVE CUSTOMER SERVICE
- - EXECUTION OF DEPOSIT RE-INTERMEDIATION STRATEGY
- - CROSS-SELL FOCUS OF PRODUCTS AND SERVICES
- TREASURY MANAGEMENT
- CAPITAL MARKETS
- INVESTMENTS
- 401K
- - IMPROVE MARKET PENETRATION
- INDIANA
- EAST MICHIGAN
14
DEALER SALES
2001 PROGRESS SNAPSHOTS
- -----------------------
- - IMPROVED CREDIT QUALITY OF NEW ORIGINATIONS
- - PURCHASED LEASE RESIDUAL INSURANCE
- - LEADER IN MAJOR MARKETS
- MAINTAINED #1, 2 OR 3 RANKING BEHIND CAPTIVES IN OHIO,
MICHIGAN AND FLORIDA
- ROA ON LOAN ORIGINATIONS EXPANDED 30 BASIS POINTS
IMMEDIATE PRIORITIES
- --------------------
- - CONTINUE EMPHASIS ON CREDIT QUALITY OF NEW ORIGINATIONS
- - INTRODUCE BEHAVIORAL SCORING INTO COLLECTIONS STRATEGY
15
PRIVATE FINANCIAL GROUP
2001 PROGRESS SNAPSHOTS
- -----------------------
- - 5 NEW HUNTINGTON FUNDS
- - 14 OF 17 HUNTINGTON FUNDS POSTED POSITIVE RETURNS
- - 12% HUNTINGTON FUND ASSET GROWTH
- - 27% PRIVATE BANKING LOAN GROWTH
- - 61% INCREASE IN ANNUITY SALES. . . RECORD YEAR
- - NEW INTERNET ACCESS FOR TRUST CUSTOMERS
IMMEDIATE PRIORITIES
- --------------------
- - GROW HUNTINGTON FUNDS AND TOTAL ASSETS UNDER MANAGEMENT
- - GROW INSTITUTIONAL AND MUTUAL FUND CUSTODY BUSINESS
- - PROMOTE NEW INTERNET-BASED 401K PRODUCT
16
MORTGAGE BANKING
2001 PROGRESS SNAPSHOTS
- -----------------------
- - $3.5 BILLION OF ORIGINATIONS. . . HIGHEST SINCE 1993
- - $5.1 BILLION OF MORTGAGES SERVICED
- - DEPLOYED INTERNET FUNCTIONALITY FOR BROKER ORIGINATIONS
IMMEDIATE PRIORITIES
- --------------------
- - CROSS-SELL WITH HELOC EMPHASIS
- - MARKET INTERMEDIATE ARM ORIGINATIONS
17
CREDIT REVIEW
18
LOAN PORTFOLIO - 12/31/01
BY TYPE OF LOAN - MANAGED BY REGION OR LOB
- ------------------------- ----------------
($B) AMT PCT
--- --- CENTRAL OH/WV 16%
COMMERCIAL $ 6.4 28.1 NORTHERN OH 12%
COMMERCIAL RE 4.0 17.5 W. MICHIGAN 8%
------ ----- S. OHIO/KY 6%
TOTAL COMMERCIAL 10.4 45.6 E. MICHIGAN 4%
------ ----- INDIANA 3%
AUTO LEASES 3.2 14.0 AUTO 32%
AUTO LOANS 4.1 18.0 PFG 4%
HOME EQUITY LINES 2.5 11.0 MORTGAGE 3%
RESIDENTIAL REAL ESTATE 1.0 4.4 FLORIDA 12%
OTHER CONSUMER 1.6 7.0
------ -----
TOTAL CONSUMER 12.4 54.4
------ -----
TOTAL LOANS $ 22.8 100.0
19
COMMERCIAL LOAN PORTFOLIO - 12/31/01
$10.4 B BY INDUSTRY SECTOR # OF LOANS BY SIZE
- -------------------------- ------------------
SERVICES 25% < $5 MM - 26,063 (98.6%)
$5 + MM - 365 (1.4%)
MANUFACTURING 14%
$5 MM - < $10 MM 225
F.I.R.E. 29% $10 MM - < $25 MM 119
$25 MM - < $50 MM 19
RETAIL TRADE 11% $50+ MM 2
---
CONSTRUCTION 7% TOTAL 365
WHOLESALE TRADE 6%
TRANS./COMM. 3%
AGRICULTURE 2%
ENERGY 1%
OTHER 2%
20
NON-PERFORMING ASSETS - BY SECTOR
$227 MM @ 12/31/01 % OF $122 MM CHANGE VS 12/31/00
- ------------------ -------------------------------
SERVICES 28% SERVICES 30%
MANUFACTURING 25% MANUFACTURING 39%
F.I.R.E. 15% F.I.R.E 20%
RETAIL TRADE 8% RETAIL TRADE 12%
CONSTRUCTION 6% CONSTRUCTION 4%
WHOLESALE TRADE 5% WHOLESALE TRADE 6%
TRANS./COMM. 2% TRANS./COMM. 2%
AGRICULTURE 2% AGRICULTURE 1%
ENERGY 0% ENERGY 0%
OTHER 9% OTHER -12%
21
INDIRECT LOAN PORTFOLIO ORIGINATIONS
AUTO LOANS AND LEASES
- ---------------------
2000 = $3.3 B
- -------------
LOANS 60% $2.0B
LEASES 40% $1.3B
2001 = $3.4 B
- -------------
LOANS 65% $2.2 B
LEASES 35% $1.2 B
NEW CAR VS. USED CAR
- --------------------
2000
- ----
USED 45% $1.5B
NEW 55% $1.8B
2001
- ----
USED 41% $1.4 B
NEW 59% $2.0 B
22
VINTAGE PERFORMANCE
AUTO LOANS - INDIRECT - CUMULATIVE CHARGE-OFF RATE
- --------------------------------------------------
# Quarters
After Origination 4Q98 - 3Q99 4Q99 - 3Q00 4Q00 - 4Q01
1 0.00% 0.00% 0.00%
2 0.04% 0.08% 0.05%
3 0.22% 0.42% 0.30%
4 0.48% 0.87% 0.65%
5 0.65% 1.35% 1.00%
6 0.85% 1.89%
7 1.00% 2.15%
8 1.20% 2.40%
9 1.41%
10 1.58%
11 1.69%
12 1.85%
% OF PORTFOLIO @
----------------
12/00 12/01
----- -----
Pre-4Q98 22% 8%
4Q98-3Q99 24% 12%
4Q99-3Q00 42% 25%
4Q00-3Q01 12% 55%
---- ----
100% 100%
AUTO LEASES - CUMULATIVE CHARGE-OFF RATE
- ----------------------------------------
# Quarters
After Origination 4Q98 - 3Q99 4Q99 - 3Q00 4Q00 - 4Q01
1 0.00% 0.01% 0.01%
2 0.04% 0.05% 0.06%
3 0.15% 0.33% 0.30%
4 0.27% 0.72% 0.67%
5 0.38% 1.30% 1.00%
6 0.55% 1.85%
7 0.75% 2.05%
8 0.95% 2.40%
9 1.21%
10 1.39%
11 1.60%
12 1.76%
% OF PORTFOLIO @
----------------
12/00 12/01
----- -----
Pre-4Q98 16% 6%
4Q98-3Q99 33% 22%
4Q99-3Q00 42% 31%
4Q00-3Q01 9% 41%
---- ----
100% 100%
23
NET CHARGE-OFFS - ADJUSTED (1)
AMOUNT($MM) PERCENT
1Q00 $18 0.35%
2Q00 $16 0.30%
3Q00 $24 0.46%
4Q00 $25 0.50%
1Q01 $29 0.55%
2Q01 $37 0.73%
3Q01 $33 0.61%
4Q01 $53 0.98%
4Q01 3Q01 4Q00
---- ---- ----
COMMERCIAL 1.39 % 0.56 % 0.29 %
COMMERCIAL REAL ESTATE 0.08 ---- 0.01
CONSUMER
AUTO LOANS - INDIRECT 1.46 1.05 1.46
AUTO LEASE 1.55 1.27 0.86
---- ---- ----
INDIRECT 1.51 1.17 1.14
INSTALLMENT 0.86 0.88 0.62
HOME EQUITY LINES 0.38 0.34 0.28
RESIDENTIAL REAL ESTATE 0.17 0.05 0.15
---- ---- ----
TOTAL CONSUMER 1.05 0.85 0.79
---- ---- ----
TOTAL 0.98 % 0.61 % 0.50 %
(1) EXCLUDES IMPACT OF NET CHARGE-OFFS ON EXITED PORTFOLIOS FOR WHICH RESERVES
WERE PREVIOUSLY ESTABLISHED
24
LOAN LOSS RESERVE STRENGTHENED
AMOUNT PERCENT
($MM)
1Q00 $297 1.45%
2Q00 $297 1.45%
3Q00 $295 1.45%
4Q00 $298 1.45%
1Q01 $302 1.45%
2Q01 $352 1.67%
3Q01 $360 1.67%
4Q01 $411 1.90%
LLR / LOANS - 12/31/01
- ----------------------
KEYCORP 2.65%
UNIONBANC CAL 2.54
HUNTINGTON - 12/31/01 #3 1.90
HIBERNIA 1.74
M&T BANK 1.69
COMERICA 1.59
FIRST TENNESSEE 1.57
ZIONS 1.50
FIFTH THIRD 1.50
BANKNORTH GROUP 1.49
UNION PLANTERS 1.48
NATIONAL CITY 1.47
HUNTINGTON - 12/31/00 #8 1.45
AMSOUTH 1.45
SOUTHTRUST 1.45
COMPASS BANCSHARES 1.40
MARSHALL & ILSLEY 1.39
BB & T 1.36
REGIONS FINANCIAL 1.36
NATIONAL COMMERCE 1.31
CHARTER ONE 0.98
19 BHC MEDIAN X HBAN 1.48
25
FINANCIAL
PERFORMANCE TRENDS
& ACHIEVEMENTS
26
2H01 PERFORMANCE REPORT CARD
TARGET - 7/12/01 3Q01 4Q01
---------------- ----- ----
LOAN GROWTH (1) 6% - 8% 7% 2%
NET INTEREST MARGIN 3.90% - 3.95% 4.04% 4.11%
REVENUE GROWTH (1) 2% - 4% 0.5% 9.6%
EFFICIENCY RATIO 57% - 59% 57.5% 55.8%
NET CHARGE-OFFS 0.65% 0.74% 1.04%
LLR / LOANS RATIO 1.45% 1.67% 1.90%
2H01 EPS (2) $0.58 - $0.60 $0.30 $0.30
(1) ANNUALIZED
(2) OPERATING BASIS - EXCLUDES AFTER TAX IMPACT OF RESTRUCTURING AND OTHER
CHARGES OF $115.0 MM IN 2001 AND $32.5 MM IN 2000
27
PERFORMANCE TRENDS (1)
PRETAX INCOME BEFORE LLP AND
EARNINGS PER SHARE SECURITIES GAINS
- ------------------ ----------------
AMOUNT AMOUNT ($MM)
1Q00 $0.42 1Q00 $142
2Q00 $0.40 2Q00 $150
3Q00 $0.33 3Q00 $133
4Q00 $0.30 4Q00 $139
1Q01 $0.27 1Q01 $125
2Q01 $0.30 2Q01 $145
3Q01 $0.30 3Q01 $150
4Q01 $0.30 4Q01 $161
(1) OPERATING BASIS - EXCLUDES AFTER TAX IMPACT OF RESTRUCTURING AND OTHER
CHARGES OF $115.0 MM IN 2001 AND $32.5 MM IN 2000
28
PERFORMANCE TRENDS
NET INTEREST INCOME & MARGIN (FTE)
- ----------------------------------
AMOUNT PERCENT
($MM)
1Q00 $241 3.78%
2Q00 $233 3.72%
3Q00 $236 3.74%
4Q00 $233 3.70%
1Q01 $243 3.93%
2Q01 $248 3.97%
3Q01 $250 4.04%
4Q01 $255 4.11%
EARNING ASSET MIX
- -----------------
LOANS SECURITIES OTHER EA
1Q00 81% 19% 0%
2Q00 82% 17% 1%
3Q00 81% 18% 1%
4Q00 81% 18% 1%
1Q01 83% 15% 2%
2Q01 84% 14% 2%
3Q01 86% 12% 2%
4Q01 86% 11% 3%
29
MANAGING INTEREST RATE RISK
NET INTEREST INCOME AT RISK +/- 2%
- ----------------------------------
GRADUAL CHANGE IN RATES
-----------------------
2% RATE RISE 2% RATE FALL
1Q00 -1.8% 0.9%
2Q00 -2.0% 1.6%
3Q00 -2.2% 1.8%
4Q00 -2.6% 2.0%
1Q01 -2.1% 1.7%
2Q01 -2.1% 1.8%
3Q01 -1.7% 1.5%
4Q01 -1.2% 0.8%
BOARD POLICY LIMIT - -4.0%
ECONOMIC VALUE AT RISK +/- 2%
- -----------------------------
INSTANTANEOUS CHANGE IN RATES
-----------------------------
+2% RATE SHOCK -2% RATE SHOCK
3Q00 -9.2% 5.3%
4Q00 -8.8% 4.6%
1Q01 -5.7% 3.3%
2Q01 -6.2% 3.6%
3Q01 -3.7% 0.7%
4Q01 -2.4% -0.7%
BOARD POLICY LIMIT - -15.0%
30
PERFORMANCE TRENDS (1)
REVENUE - EXCLUDING SECURITIES GAINS EFFICIENCY RATIO
- ------------------------------------ ----------------
AMOUNT
($MM)
1Q00 $342 1Q00 53.9%
2Q00 $348 2Q00 53.9%
3Q00 $346 3Q00 58.4%
4Q00 $363 4Q00 58.5%
1Q01 $359 1Q01 62.0%
2Q01 $379 2Q01 58.6%
3Q01 $379 3Q01 57.5%
4Q01 $388 4Q01 55.8%
(1) OPERATING BASIS - EXCLUDES AFTER TAX IMPACT OF RESTRUCTURING AND OTHER
CHARGES
31
PERFORMANCE TRENDS
TANGIBLE COMMON EQUITY /
- ------------------------
TANGIBLE ASSETS RATIO
---------------------
1Q00 5.49%
2Q00 5.78%
3Q00 5.73%
4Q00 5.87%
1Q01 6.01%
2Q01 5.97%
3Q01 5.96%
4Q01 6.04%
DRIVERS OF TCE/TA RATIO INCREASE
- --------------------------------
1Q00 5.49%
EARNINGS NET OF DIVIDENDS
+0.81%
EMPIRE ACQUISITION
+0.16%
TANGIBLE ASSET DECLINE
+0.08%
OTHER
+0.03%
CHARGES
- -0.53%
4Q01 6.04%
32
2001 FINANCIAL PERFORMANCE SUMMARY
ACCOMPLISHMENTS (1) # CONSECUTIVE
- ------------------- QUARTERS
--------
- - REVENUE GROWTH, EXCLUDING SECURITIES GAINS 3
- - NET INTEREST MARGIN INCREASE 4
- - CORE DEPOSIT GROWTH 2
- - EXPENSE DECLINES 3
- - IMPROVED EFFICIENCY RATIO 3
CHALLENGES
- ----------
- - LOAN LOSS PROVISION EXPENSE INCREASE 7
(1) OPERATING BASIS. EXCLUDES AFTER TAX IMPACT OF RESTRUCTURING AND OTHER
CHARGES OF $115.0 MM IN 2001 AND $32.5 MM IN 2000
33
2002 OUTLOOK &
KEY PRIORITIES
34
2002 ECONOMIC ENVIRONMENT ASSUMPTIONS
- - FIRST HALF OF THE YEAR
- WEAK ECONOMY CONTINUES
- CREDIT QUALITY TRENDS REMAIN NEGATIVE
- - SECOND HALF OF THE YEAR
- MODEST ECONOMIC RECOVERY BEGINS
- CREDIT QUALITY TRENDS MODESTLY IMPROVE
- - INTEREST RATES
- MODEST INCREASES THROUGHOUT THE YEAR
- FLATTENING OF THE YIELD CURVE
35
2002 PERFORMANCE ASSUMPTIONS
- - OPERATING EARNINGS OF $1.32 - $1.36 PER SHARE
- - CONTINUED HIGH LEVELS OF CHARGE-OFFS AND NPAS
- - MODEST GROWTH IN LOANS
- - CONTINUED GROWTH IN CORE DEPOSITS
- - EXPANSION OF THE NET INTEREST MARGIN
- - MODEST EXPENSE GROWTH
- - CONTINUED IMPROVEMENT IN THE EFFICIENCY RATIO
- - A $300 - $400 MILLION SHARE REPURCHASE PROGRAM
36
2002 KEY PRIORITIES
- - COMPLETE SALE OF FLORIDA
- - INITIATE STOCK REPURCHASE PROGRAM
- - IMPROVE CUSTOMER SERVICE
- - CONTINUE WEST MICHIGAN TURNAROUND
- - IMPROVE CROSS-SELL PERFORMANCE
- - INCREASE REVENUE
- - IMPROVE OPERATING EFFICIENCIES
- - IMPROVE FINANCIAL REPORTING / ACCOUNTABILITY
EXECUTE THE GAME PLAN - MAKE CONSISTENT PROGRESS
37
LONG-TERM FINANCIAL PERFORMANCE TARGETS
EPS GROWTH 10% - 12%
RETURN ON AVERAGE EQUITY 18% - 20%
DIVIDEND PAYOUT RATIO 35% - 45%
TANGIBLE COMMON EQUITY RATIO 6.5%+
RISK-BASED CAPITAL RATIO 11.0%+
38
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
FORWARD LOOKING STATEMENT DISCLOSURE
THIS PRESENTATION AND DISCUSSION, INCLUDING RELATED QUESTIONS AND ANSWERS, MAY
CONTAIN FORWARD-LOOKING STATEMENTS, INCLUDING CERTAIN PLANS, EXPECTATIONS,
GOALS, AND PROJECTIONS WHICH ARE SUBJECT TO NUMEROUS ASSUMPTIONS, RISKS, AND
UNCERTAINTIES. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE CONTAINED OR
IMPLIED BY SUCH STATEMENTS FOR A VARIETY OF FACTORS INCLUDING:
- - CHANGES IN ECONOMIC CONDITIONS - THE SUCCESSFUL INTEGRATION OF ACQUIRED
- - MOVEMENTS IN INTEREST RATES BUSINESSES
- - COMPETITIVE PRESSURES ON PRODUCT - THE NATURE, EXTENT AND TIMING OF
PRICING AND SERVICES GOVERNMENTAL ACTIONS AND REFORMS
- - SUCCESS AND TIMING OF BUSINESS - EXTENDED DISRUPTION OF VITAL
STRATEGIES INFRASTRUCTURE
ALL FORWARD-LOOKING STATEMENTS INCLUDED IN THIS DISCUSSION, INCLUDING RELATED
QUESTIONS AND ANSWERS, ARE BASED ON INFORMATION AVAILABLE AT THE TIME OF THE
DISCUSSION. HUNTINGTON ASSUMES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING
STATEMENT.
39
[HUNTINGTON LOGO]
40
APPENDIX
41
PERFORMANCE TRENDS
LOANS (AVG)($B)
COM'L COM'L RE AUTO LN/LSE HEL RES MTG OTHER TOTAL
1Q00 $6.3 $3.4 $6.4 $1.7 $1.4 $1.5 $20.8
2Q00 $6.4 $3.4 $6.0 $1.9 $1.5 $1.5 $20.8
3Q00 $6.5 $3.5 $5.7 $2.0 $1.3 $1.6 $20.6
4Q00 $6.5 $3.5 $5.7 $2.1 $0.9 $1.7 $20.5
1Q01 $6.7 $3.6 $5.6 $2.2 $1.0 $1.7 $20.7
2Q01 $6.7 $3.6 $5.8 $2.3 $0.9 $1.7 $21.0
3Q01 $6.7 $3.7 $6.0 $2.4 $0.9 $1.7 $21.3
4Q01 $6.5 $3.9 $6.1 $2.5 $0.9 $1.6 $21.5
CORE DEPOSITS (AVG)($B)
NON. INT. BRG. DDA INT. BRG. DDA SAVINGS CDS TOTAL
1Q00 $3.5 $4.1 $3.6 $7.3 $18.4
2Q00 $3.5 $4.2 $3.6 $7.2 $18.5
3Q00 $3.4 $4.4 $3.5 $7.5 $18.8
4Q00 $3.3 $4.5 $3.5 $7.5 $18.8
1Q01 $3.2 $4.6 $3.5 $7.3 $18.6
2Q01 $3.3 $4.8 $3.5 $7.0 $18.6
3Q01 $3.3 $5.1 $3.5 $7.2 $19.1
4Q01 $3.4 $5.5 $3.4 $7.1 $19.4
42
PERFORMANCE TRENDS
NON-INTEREST INCOME ($MM) (1)
- -----------------------------
DEP. SVC. CHG. BRKG/INS. MTG. BNKG. TRUST SVC. OTHR S.CHG. BOLI OTHER TOTAL
1Q00 $41.7 $15.3 $8.5 $12.9 $9.8 $9.2 $3.6 $100.9
2Q00 $40.1 $13.9 $8.1 $13.2 $11.3 $9.5 $19.5 $115.6
3Q00 $39.7 $15.6 $9.4 $13.2 $11.2 $9.8 $11.4 $100.3
4Q00 $39.2 $17.1 $12.0 $14.4 $11.5 $11.1 $24.4 $129.7
1Q01 $38.9 $18.8 $10.0 $14.3 $11.1 $9.6 $13.0 $115.6
2Q01 $40.7 $19.4 $18.7 $15.2 $12.2 $9.6 $15.0 $130.7
3Q01 $41.7 $19.9 $14.6 $15.5 $12.4 $9.6 $15.8 $129.4
4Q01 $42.8 $21.0 $15.8 $15.3 $12.6 $9.6 $16.1 $133.0
(1) EXCLUDING SECURITIES GAINS
NON-INTEREST EXPENSE ($MM) (2)
- ------------------------------
PERSONNEL EQUIP / OCC. OUTSIDE DP / OTHR SVC. OTHER TOTAL
1Q00 $102.3 $38.5 $15.0 $44.2 $200.1
2Q00 $104.1 $36.4 $15.3 $41.1 $198.1
3Q00 $109.5 $39.4 $15.5 $50.1 $213.6
4Q00 $105.8 $39.4 $16.1 $62.5 $223.9
1Q01 $117.7 $39.7 $16.7 $60.0 $234.1
2Q01 $122.1 $38.0 $17.7 $55.5 $233.3
3Q01 $120.8 $39.4 $17.4 $51.3 $228.9
4Q01 $118.1 $40.5 $18.0 $50.7 $227.4
(2) OPERATING BASIS - EXCLUDES AFTER TAX IMPACT
OF RESTRUCTURING AND OTHER CHARGES
43
PERFORMANCE TRENDS (1)
LOAN LOSS PROVISION NET INCOME
- ------------------------- ----------------
AMOUNT ($MM)
1Q00 $16 AMOUNT ($MM)
2Q00 $16 1Q00 $104
3Q00 $26 2Q00 $98
4Q00 $33 3Q00 $83
1Q01 $33 4Q00 $76
2Q01 $46 1Q01 $68
3Q01 $50 2Q01 $75
4Q01 $58 3Q01 $76
4Q01 $75
(1) OPERATING BASIS - EXCLUDES AFTER TAX IMPACT OF RESTRUCTURING AND OTHER
CHARGES
44
NON-PERFORMING ASSETS
AMOUNT($MM) PERCENT
1Q00 $92 0.45%
2Q00 $95 0.46%
3Q00 $88 0.44%
4Q00 $105 0.51%
1Q01 $125 0.60%
2Q01 $166 0.79%
3Q01 $210 0.97%
4Q01 $227 1.05%
$227 MM @ 12/31/01
- ------------------
SERVICES 28%
MANUFACTURING 25%
F.I.R.E. 15%
RETAIL TRADE 8%
CONSTRUCTION 6%
WHOLESALE TRADE 5%
TRANS./COMM. 2%
AGRICULTURE 2%
ENERGY 0%
OTHER 9%
45
PERFORMANCE TRENDS (1)
RETURN ON AVERAGE ASSETS RETURN ON AVERAGE EQUITY
- ------------------------ ------------------------
1Q00 1.45% 1Q00 19.0%
2Q00 1.37% 2Q00 17.8%
3Q00 1.15% 3Q00 14.0%
4Q00 1.06% 4Q00 12.9%
1Q01 0.97% 1Q01 11.5%
2Q01 1.05% 2Q01 12.4%
3Q01 1.07% 3Q01 12.6%
4Q01 1.07% 4Q01 12.7%
(1) Operating basis - Excludes after tax impact of restructuring and other
charges
46