Exhibit 99.3
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HUNTINGTON
SECOND QUARTER EARNINGS REVIEW
JULY 18, 2002
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MEETING PARTICIPANTS
Tom Hoaglin
- - Chairman, President and Chief Executive Officer
Mike McMennamin
- - Vice Chairman and Chief Financial Officer
Jay Gould
- - Sr. Vice President - Investor Relations
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BASIS OF PRESENTATION - OPERATING BASIS
REVISED DEFINITION
Reported results for the past five quarters have been significantly impacted by
a number of items, primarily related to the strategic restructuring
announced in July 2001 and the subsequent sale of the Florida banking
operations in the 2002 first quarter. In addition, reported 2002 first
quarter results included Florida operations for only half the quarter
versus a full quarter for each prior quarter.
Therefore, to better understand underlying trends, the following slides and
discussion are on an OPERATING basis, which excludes the effect of these
items from all prior periods, including the impact of the Florida
operations.
Please refer to the schedules accompanying the 2002 second quarter earnings
press release, as well as the 2002 second quarter Quarterly Financial
Review for schedules reconciling reported with operating earnings and
additional schedules excluding the impact of the Florida operations.
This presentation basis is the same used in prior quarterly review conference
calls with the one exception that the impact of the sold Florida banking
operations are now EXCLUDED. Refer to Appendix B for selected slides using
the prior operating basis definition.
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RECENT DEVELOPMENTS
THIRD QUARTER EVENTS
7/02/02 - Sold J. Rolfe Davis Insurance Agency, Inc.
- - Consistent with Florida strategy
- - Terms not disclosed
- - No material financial impact going forward
- - Remain committed to growing insurance business within footprint
7/18/02 - Restructured ownership interest in Huntington Merchant Services, LLC
- - Consistent with Florida strategy
- - Terms not disclosed
- - Estimated $25 million pre-tax ($16 million after tax) gain on sale
- - No material financial impact going forward
- - Remain committed to growing merchant services business within footprint
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SECOND QUARTER HIGHLIGHTS
Solid financial performance
- -----------------------------------
- - EPS of $0.33 met expectations
- - 7% annualized growth in loans
- - 19% annualized growth in deposits
- - Improved credit quality trends
- Lower net charge-offs
- Lower NPAs
- - 2.00% loan loss reserve ratio
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SECOND QUARTER HIGHLIGHTS
Key Accomplishments
- -------------------
- - Hired Mary Navarro to head Retail Bank
- - Launched new business 401(k) product
- - Completed installation and initial training of the new
banking office Customer Service System platform
- - Installed new teller technology in 13% of the
branches completion by year end
- - Repurchased 7.3 million shares 8.8 million shares
to date
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FINANCIAL
PERFORMANCE
7
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2002 SECOND QUARTER PERFORMANCE HIGHLIGHTS (1)
($MM)
- - Net income $81.7
- - Earnings per share $0.33
- - Managed loan growth 7%annualized
- - Core deposit growth 19%annualized
- - Net interest margin 4.30%
- - Efficiency ratio 53.2%
- - Net charge-offs - adjusted (2) 0.88%
- - NPAs $223.2
- - Loan loss reserve / loans 2.00%
- - Tangible common equity ratio 8.41%
(1) Excludes impact of Florida banking operations sold in 1Q02 and Florida
insurance agency sold 7/2/02
(2) Excludes impact of net charge-offs on exited portfolios
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SECOND QUARTER 2002 EARNINGS
FLORIDA
($MM) REPORTED OPERATIONS (1) OPERATING
-------- -------------- ---------
Net interest income $ 241.9 $ 241.9
Provision (53.9) (53.9)
Non-interest income 117.0 $ 2.7 114.3
Securities gains 1.0 1.0
Non-interest expense (192.1) (1.9) (190.2)
------- ------ ------
Pretax income 113.9 0.8 113.1
------- ------ ------
Net income $ 82.2 $ 0.5 $ 81.7
------- ------ ------
EPS $ 0.33 $ 0.00 $ 0.33
======= ====== ======
(1) J. Rolfe Davis Insurance Agency, Inc.
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PERFORMANCE HIGHLIGHTS (1)
2Q02 1Q02 2Q01
---- ---- ----
EPS - operating $0.33 $0.32 $0.30
ROA 1.31% 1.30% 1.20%
ROE 14.0 13.6 12.6
Efficiency ratio (2) 53.2 54.1 56.0
NIM 4.30 4.21 4.03
Tangible common equity/assets (3) 8.41 9.03 5.97
(1) Operating basis - Excludes after tax impact of restructuring and other
charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain
on the sale of Florida operations in 1Q02, the impact of Florida banking
operations sold in 1Q02 and Florida insurance agency sold 7/2/02
(2) Excludes intangible amortization of $0.3 MM in 1Q02 and $0.2 MM in 2Q02
(3) Period end.
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2002 SECOND QUARTER EARNINGS (1)
CHANGE B (W) VS.
--------------------------
1Q02 2Q01
---------------
($MM) 2Q02 1Q02 2Q01 Amt. Amt. Pct.
---- ---- ---- ---- ---- ----
Net interest income $241.9 $233.1 $225.9 $ 8.8 $16.0 7.1%
Provision (53.9) (50.6) (41.9) (3.3) (12.0) (28.5)
Non-interest income 114.3 115.0 110.9 (0.7) 3.4 3.1
Securities gains 1.0 0.5 2.7 0.5 (1.8) (64.8)
Non-interest expense (190.2) (189.1) (192.4) (1.1) 2.3 1.2
------ ------ ------ ------ ----- ---
Pretax income 113.1 108.9 105.1 4.1 7.9 7.6
------ ------ ------ ------ ----- ---
Net income $ 81.7 $ 79.5 $ 75.6 $ 2.2 $ 6.1 8.1%
====== ====== ====== ===== ===== ====
EPS $ 0.33 $ 0.32 $ 0.30 $ 0.01 $0.03 10.0 %
Revenue (FTE) (2) $357.2 $349.3 $338.4 $ 8.0 $18.9 5.6%
(1) Operating basis - Excludes after tax impact of restructuring and other
charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain
on the sale of Florida operations in 1Q02, the impact of Florida banking
operations sold in 1Q02 and Florida insurance agency sold 7/2/02
(2) Calculated assuming a 35% tax rate and excluding securities gains
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PERFORMANCE TRENDS (1)
[GRAPHS]
EARNINGS PER SHARE
- ------------------
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
$0.28 $0.30 $0.32 $0.32 $0.32 $0.33
PRETAX INCOME BEFORE LLP AND
- ----------------------------
SECURITIES GAINS
----------------
($MM)
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
$125 $144 $153 $162 $159 $166
(1) Operating basis - Excludes after tax impact of restructuring and other
charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain
on the sale of Florida operations in 1Q02, the impact of Florida banking
operations sold in 1Q02 and Florida insurance agency sold 7/2/02
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PERFORMANCE TRENDS (1)
[GRAPHS]
NET INTEREST INCOME & Margin (FTE)
- ----------------------------------
($MM)
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
Margin 3.99% 4.03% 4.17% 4.26% 4.21% 4.30%
NII $224 $227 $232 $237 $234 $243
EARNING ASSET MIX (AVG)
- -----------------------
LOANS SECURITIES OTHER EA
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
Other EA 5% 2% 2% 2% 2% 1%
Securities 17% 16% 14% 13% 13% 13%
Loans 78% 82% 84% 85% 85% 86%
(1) Excludes impact of Florida banking operations sold in 1Q02
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MANAGED LOAN GROWTH (1)
AVERAGE ($B) ANNUALIZED GROWTH
- ------- -----------------
2Q02 vs. 1Q02 vs. 2Q02 vs.
2Q02 1Q02 4Q01 2Q01
---- ---- ---- ----
Commercial $ 5.6 (3)% (6) % (6)%
Commercial real estate 3.7 6 16 15
----
Total commercial/CRE 9.3 --- 2 1
----
Auto loan / lease 6.9 (3) (1) 1
Home equity 2.9 17 5 9
Residential real estate 1.2 75 62 43
Other consumer 0.4 (10) (19) (15)
----
Total consumer 11.4 13 8 7
----
Managed loans $20.7 7 % 5 % 5 %
=====
(1) Growth percentages normalized for residential real estate loan
securitizations and impact of Florida banking operations sold in 1Q02
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CORE DEPOSIT TRENDS (1)
AVERAGE ($B) ANNUALIZED GROWTH
- ------- -----------------
2Q02 vs. 1Q02 vs. 2Q02 vs.
2Q02 1Q02 4Q01 2Q01
---- ---- ---- ----
Demand $ 2.7 ---% (12)% 3%
Interest bearing 4.9 51 35 42
Savings 2.8 (3) (5) (6)
CD's 4.2 12 (3) 7
-----
Total $14.7 19% 6% 13%
=====
(1) Growth percentages normalized for impact of Florida banking operations sold
in 1Q02
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TOTAL DEPOSITS PER BRANCH (1)
AVERAGE ($MM)
June '02 June '01 % Change
-------- -------- --------
Central Ohio / WV $62.4 $48.0 30%
N. Ohio 46.9 36.5 28
W. Michigan 34.4 25.4 36
E. Michigan 48.6 43.5 12
Cincinnati / Dayton / KY 34.5 30.9 12
Indiana 29.0 24.7 18
Total average / branch $45.7 $36.4 26%
# of branches 331 369 (10)
(1) Excludes deposits attributable to Dealer Sales and PFG lines of business,
brokered deposits, and negotiable CDs.
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NON-INTEREST INCOME (1)
($MM) BETTER OR (WORSE) VS.
----- ---------------------
2Q02 1Q02 1Q02(2) 2Q01
---- ---- ------- ----
Deposit service charges $ 35.4 $ 1.1 3% 8%
Mortgage banking 10.7 (8.9) (45) (39)
Brokerage / insurance 15.0 0.4 3 14
Trust income 16.2 1.2 8 13
Bank Owned Life Ins. 11.4 (0.2) (2) 20
Other service charges 10.5 1.4 15 12
Other 15.0 4.4 42 8
------
Total $114.3 $ (0.7) (1)% 3%
======
Total excl mortgage banking $103.6 $ 8.2 9 % 11%
(1) Excludes security gains and gain on sale of the Florida banking operations
in 1Q02 and Florida insurance agency sold 7/2/02
(2) Linked quarter percentage growth is not annualized.
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NON-INTEREST EXPENSE (1)
($MM) BETTER OR (WORSE) VS.
---------------------
2Q02 1Q02 1Q02(2) 2Q01
---- ---- ------- ----
Personnel costs $103.6 $ 0.7 1% --%
Occupancy & equipment 31.3 (0.9) (3) --
Outside services 16.6 0.5 3 (10)
Marketing 7.2 -- (1) (6)
Amortization of intangibles 0.2 -- 19 93
Other 31.3 (1.5) (5) 5
------ ------
Total $190.2 $ (1.1) (1)% 1%
======
(1) Excludes pretax impact of restructuring charges and other charges of $56.2
MM in 1Q02 and $34.0 MM in 2Q01 and Florida insurance agency sold 7/2/02
(2) Linked quarter percentage growth is not annualized
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EFFICIENCY RATIO (1)
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
59.5% 56.0% 54.0% 52.7% 54.1% 53.2%
(1) FTE Revenue excluding securities gains and gain on sale of Florida
operations / non-interest expense excludes intangible amortization and
restructuring and other charges. Excludes impact of Florida banking
operations sold in 1Q02 and Florida insurance agency sold 7/2/02
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CREDIT REVIEW
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CREDIT QUALITY OVERVIEW (1)
2Q02 1Q02 2Q01
---- ---- ----
NPAs / total loans + OREO 1.14% 1.17% 0.85%
Net charge-offs - adjusted (2) 0.88 0.97 0.74
90+ days past due 0.30 0.32 0.29
Consumer 0.41 0.44 0.47
Commercial 0.15 0.14 0.08
Commercial RE 0.20 0.26 0.16
Reserve / total loans 2.00 2.00 1.76
Reserve / NPAs 176 171 207
(1) Excludes impact of Florida banking operations sold in 1Q02.
(2) Excludes impact of net charge-offs on exited portfolios.
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NON-PERFORMING ASSET COMPOSITION (1)
($MM)
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
NPA $117.0 $156.9 $201.2 $219.6 $225.5 $223.2
% Lns + OREO 0.63% 0.85% 1.06% 1.16% 1.17% 1.14%
(1) Excludes impact of Florida banking operations sold in 1Q02.
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NON-PERFORMING ASSET FLOW ANALYSIS -
REPORTED BASIS(1)
PERIOD END ($MM)
- -----------
2Q02 1Q02 4Q01 3Q01 2Q01
---- ---- ---- ---- ----
NPA beginning of period $225.5 $227.5 $210.1 $166.0 $124.9
- ------------------------------------------------------------------------------------------------
New NPAs 73.0 74.4 86.0 95.0 95.0
- ------------------------------------------------------------------------------------------------
Loan losses (28.3) (26.1) (34.6) (12.5) (13.2)
Payments (44.3) (37.7) (28.3) (34.2) (19.3)
Sales (2) (2.4) (8.9) (4.1) (3.3) (21.3)
Other (0.3) (3.7) (1.5) (0.9) (0.1)
------ ------ ------ ------ ------
NPA end of period $223.2 $225.5 $227.5 $210.1 $166.0
(1) Impact of Florida not material.
(2) 1Q02 includes $6.5 MM related to the sale of Florida banking operations
and 2Q01 includes $14.9 MM related to PG & E.
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NON-PERFORMING ASSETS - BY SECTOR
$223 MM @ 6/30/02
[GRAPH]
Services 30% Manufacturing 30%
F.I.R.E. 14% Construction 6%
Retail 3% Trade Agriculture 3%
Trans./Comm. 2% Wholesale Trade 0%
Energy 0% Other 10%
% OF $120 MM CHANGE VS 12/31/00
Services 45% Manufacturing 42%
F.I.R.E. 9% Construction 5%
Retail 6% Trade Agriculture 3%
Trans./Comm. 0% Wholesale Trade 2%
Energy 0% Other -12%
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NET CHARGE-OFFS - ADJUSTED (1)
($MM)
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
$ 26 $34 $29 $47 $46 $43
0.57% 0.74% 0.61% 0.99% 0.97% 0.88%
2Q02 1Q02 2Q01
Commercial 1.53 % 1.15 % 0.64 %
Commercial real estate 0.22 0.42 0.21
---- ---- ----
Total commercial 1.02 0.86 0.49
---- ---- ----
Consumer
Auto loans - indirect 0.92 1.45 1.49
Auto lease 1.08 1.64 1.37
---- ---- ----
Indirect 1.01 1.56 1.42
Other direct 1.22 1.08 0.91
Home equity 0.43 0.41 0.35
Residential real estate 0.18 0.05 0.14
---- ---- ----
Total consumer 0.75 1.07 0.99
---- ---- ----
Total 0.88 % 0.97 % 0.74 %
(1) Excludes impact of net charge-offs on exited portfolios. Reported total
consumer net charge-offs were 0.83% in 2Q02, 1.22% in 1Q02, and 2.07% in
2Q01. Reported total net charge-offs were 0.92% in 2Q02, 1.05% in 1Q01, and
1.33% in 2Q01. Excludes impact of Florida banking operations sold in 1Q02.
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VINTAGE PERFORMANCE
AUTO LOANS - INDIRECT
[GRAPHS]
Cumulative Charge-off Rate
% of Portfolio @
----------------
12/00 12/01 3/02 6/02
----- ----- ---- ----
Pre - 4Q98 22% 8% 4% 3%
4Q98 - 3Q99 24% 12% 11% 9%
4Q99 - 3Q00 42% 25% 24% 20%
4Q00 - 4Q01 12% 55% 61% 43%
1Q02 - 2Q02 -- -- -- 25%
--- --- --- ---
100% 100% 100% 100%
<Table>
<Caption>
# Quarters After Origination 4Q98 - 3Q99 4Q99 - 3Q00 4Q00 - 4Q01 1Q02 - 2Q02
1 0.00% 0.00% 0.00% 0.00%
2 0.04% 0.08% 0.05% 0.00%
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% 1.25%
7 1.00% 2.15% 1.49%
8 1.20% 2.40%
9 1.41% 2.45%
10 1.58% 2.50%
11 1.69%
12 1.85%
13 1.89%
</Table>
AUTO LEASES
Cumulative Charge-off Rate
% of Portfolio @
----------------
12/00 12/01 3/02 6/02
----- ----- ---- ----
Pre-4Q98 16% 6% 4% 3%
4Q98 - 3Q99 33% 22% 19% 16%
4Q99 - 3Q00 42% 31% 30% 27%
4Q00 - 4Q01 9% 41% 47% 38%
1Q02 - 2Q02 -- -- -- 16%
--- --- --- ---
100% 100% 100% 100%
<Table>
<Caption>
# Quarters After Origination 4Q98 - 3Q99 4Q99 - 3Q00 4Q00 - 4Q01 1Q02 - 2Q02
1 0.00% 0.01% 0.01% 0.01%
2 0.04% 0.05% 0.06% 0.03%
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% 1.22%
7 0.75% 2.05% 1.34%
8 0.95% 2.40%
9 1.21% 2.45%
10 1.39% 2.50%
11 1.60%
12 1.76%
13 1.80%
</Table>
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CONSUMER DELINQUENCY TRENDS (1)
30+ Days
- --------
2Q01 3Q01 4Q01 1Q02 2Q02
2.88% 3.10% 3.32% 2.36% 2.26%
90+ Days
- --------
2Q01 3Q01 4Q01 1Q02 2Q02
0.47% 0.55% 0.60% 0.44% 0.41%
(1) % of related outstandings at EOP. Excludes impact of Florida banking
operations sold in 1Q02
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LOAN LOSS RESERVE (1)
LOAN LOSS RESERVE FLOW ANALYSIS
($MM) 2Q02 1Q02 4Q01
LLR- beginning $ 386.1 $ 387.0 $ 334.8
Charge-offs (57.5) (60.2) (60.1)
Recoveries 12.6 10.9 10.0
------- ------- -------
Net charge-offs (44.9) (49.3) (50.1)
Provision exp. 53.9 50.6 54.3
Provision exp.-other --- --- 50.0
Assets sold --- --- ---
Loans securitized (2.0) (2.2) (2.0)
------- ------- -------
LLR-ending $ 393.0 $ 386.1 $ 387.0
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
1.51% 1.76% 1.77% 2.05% 2.00% 2.00%
$276 $326 $335 $387 $386 $393
(1) Excludes impact of Florida banking operations sold in 1Q02
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CAPITAL REVIEW
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CAPITAL TRENDS - REPORTED BASIS
2Q02 1Q02 2Q01
---- ---- ----
Tier 1 risk-based capital 9.72% 10.26 % 7.01%
Total risk-based capital 12.75 13.40 10.20
Tier 1 leverage 9.94 9.72 6.96
Tangible equity / assets 8.41 (1) 9.03 5.97
Double leverage 83 78 110
(1) Estimated at 7.5%-8.0% by 12/31/02 assuming continuation of share
repurchase program
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SHARE REPURCHASE PROGRAM
COMMITMENT TO REPURCHASE $300 - 400 MM
- - Program commenced February 21
- - Repurchased 8.8 million shares through
June 30 $175 million
- - Committed to continued repurchase at reasonable
prices and volumes
31
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PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
FORWARD LOOKING STATEMENT DISCLOSURE
This presentation and discussion, including related questions and answers,
may contain forward-looking statements, including certain plans,
expectations, goals, and projections which are subject to numerous
assumptions, risks, and uncertainties.
A number of factors, including but not limited to those set forth under the
heading "Business Risks" included in Item 1 of Huntington's Annual Report
on Form 10-K for the year ended December 31, 2001, and other factors
described from time to time in Huntington's other filings with the Securities
and Exchange Commission, could cause actual conditions, events, or results
to differ significantly from those described in the forward-looking statements.
All forward-looking statements included in this discussion, including
related questions and answers, are based on information available
at the time of the discussion. Huntington assumes no
obligation to update any forward-looking statement.
32
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Huntington
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APPENDIX A
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MANAGING INTEREST RATE RISK
NET INTEREST INCOME AT RISK
FORWARD CURVE +/- 2%
GRADUAL CHANGE IN RATES
[GRAPHS]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
2% Rate Fall 1.7% 1.8% 1.5% 0.8% 1.4% 0.9%
2% Rate Rise -2.1% -2.1% -1.7% -1.2% -1.6% -1.3%
ECONOMIC VALUE AT RISK
PARALLEL YIELD CURVE SHIFT +/-2%
INSTANTANEOUS CHANGE IN RATES
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
+2% Rate Shock -5.7% -6.2% -3.7% -2.4% -3.8% -3.0%
- -2% Rate Shock 3.3% 3.6% 0.7% -0.7% 0.8% 0.1%
35
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LOAN PORTFOLIO - 6/30/02
BY TYPE OF LOAN - MANAGED
($B) Amt Pct
Commercial $ 5.6 26.9%
Commercial RE 3.7 17.8
----- -----
Total commercial 9.3 44.7
----- -----
Auto leases 3.1 15.0
Auto loans 3.8 18.2
Home equity lines 3.0 14.4
Residential real estate 1.2 5.8
Other consumer 0.4 1.9
----- -----
Total consumer 11.5 55.3
----- -----
Total loans $20.8 100.0%
By Region or LOB - Managed
[GRAPH]
Central OH/WV 18% Northern OH 13%
W. Michigan 9% S. Ohio/KY 7%
E. Michigan 5% Indiana 3%
Auto 37% PFG 4%
Mortgage 4%
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PERFORMANCE TRENDS (1)
LOAN LOSS PROVISION
($MM)
[GRAPHS]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
$30 $42 $46 $54 $51 $54
NET INCOME
($MM)
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
$72 $76 $81 $80 $80 $82
(1) Operating basis - Excludes after tax impact of restructuring and other
charges, gain on sale of Florida operations in 1Q02, impact of Florida
banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02
37
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PERFORMANCE TRENDS (1)
REVENUE (FTE)
($MM)
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
$321 $338 $342 $351 $349 $357
(1) Excludes security gains and gain on sale of the Florida banking operations
in 1Q02, impact of Florida banking operations sold in 1Q02 and Florida
insurance agency sold 7/2/02
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PERFORMANCE TRENDS (1)
RETURN ON AVERAGE ASSETS
[GRAPHS]
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
1.16% 1.20% 1.30% 1.28% 1.30% 1.31%
RETURN ON AVERAGE EQUITY
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02
12.0% 12.6% 13.5% 13.4% 13.6% 14.0%
(1) Operating basis - Excludes after tax impact of restructuring and other
charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain
on the sale of Florida operations in 1Q02, the impact of Florida banking
operations sold in 1Q02 and Florida insurance agency sold 7/2/02
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APPENDIX B OPERATING INCLUDING FLORIDA
NOTE: Slides in Appendix B show operating results INCLUDING Florida, the way
they were previously presented for analytical purposes prior to 2Q02.
As such, these are the same slides and data contained in the 1Q02
conference call presentation materials. With the sale of the Florida
banking operations in 1Q02, and to provide better analytical
comparisons to prior periods, beginning with 2Q02 reporting, operating
results are now defined to exclude the impact of the Florida banking
operations.
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FIRST QUARTER 2002 EARNINGS
One-time
($MM) Reported charges Operating
-------- ------- ---------
Net interest income $ 242.8 $ 242.8
Provision (55.8) (55.8)
Non-interest income 125.6 125.6
Florida gain 175.4 $ 175.4 -
Security gains 0.5 0.5
Non-interest expense (263.6) (56.2) (207.4)
------- ------- -------
Pretax income 224.9 119.2 105.7
------- ------- -------
Net income $ 97.7 $ 20.3 $ 77.5
======= ======= =======
EPS $ 0.39 $ 0.08 $ 0.31
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PERFORMANCE HIGHLIGHTS (1)
1Q02 4Q01 1Q01
---- ---- ----
EPS - operating $0.31 $0.30 $0.27
EPS - cash basis (2) 0.31 0.33 0.30
ROA 1.18 % 1.07 % 0.97 %
ROE 13.3 12.7 11.5
Efficiency ratio (2) 55.7 55.8 62.0
NIM 4.14 4.11 3.93
Tangible common equity/assets (3) 9.03 6.04 6.01
(1) Operating basis - Excluding after tax impact of restructuring and other
charges of $36.5 MM in 1Q02, $9.8 MM in 4Q01 and the after tax gain on
the sale of Florida operations of $56.8 MM in 1Q02
(2) Based on operating earnings excluding intangible amortization of $1.4
MM in 1Q02, $10.1 MM in 4Q01 and $10.6 MM in 1Q01
(3) Period end
42
[LOGO]
INCOME STATEMENT (1)
($MM) 1Q02 4Q01 1Q01
---- ---- ----
Net interest income $242.8 $255.2 $243.1
Provision (55.8) (58.3) (33.5)
Non-interest income 125.6 133.0 115.6
Security gains 0.5 0.1 2.1
Non-interest expense (207.4) (227.3) (234.0)
------ ------ ------
Pretax income 105.7 102.7 93.3
------ ------ ------
Net income $77.5 $75.5 $67.9
====== ====== ======
EPS $0.31 $0.30 $0.27
(1) Operating basis - Excluding after tax impact of restructuring and other
charges of $36.5 MM in 1Q02, $9.8 MM in 4Q01 and the after tax gain on
the sale of Florida operations of $56.8 MM in 1Q02
43
[LOGO]
PERFORMANCE TRENDS (1)
Earnings Per Share
- ------------------
[GRAPHS]
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
$0.40 $0.33 $0.30 $0.27 $0.30 $0.30 $0.30 $0.31 $0.32
Pretax Income Before LLP and Securities Gains
- ---------------------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
$150 $133 $139 $125 $145 $150 $161 $161 $159
(1) Operating basis - Excludes after tax impact of restructuring and other
charges of $115.0 MM in 2001, $32.5 MM in 2000, and $36.5 MM in 1Q02,
and after tax gain on the sale of Florida operations of $56.8 MM in
1Q02.
44
[LOGO]
[GRAPHS]
PERFORMANCE TRENDS
Net Interest Income & Margin (FTE)
- ----------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
Margin 3.72% 3.74% 3.70% 3.93% 3.97% 4.04% 4.11% 4.14% 4.21%
NII $235 $238 $235 $245 $250 $251 $256 $244 $233
Earning Asset Mix (Avg)
- -----------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02
Other EA 1% 1% 1% 2% 2% 2% 2% 2%
Securities 17% 18% 18% 15% 14% 12% 12% 12%
Loans 82% 81% 81% 83% 84% 86% 86% 86%
45
[LOGO]
PERFORMANCE TRENDS
[GRAPHS]
Loans
- -----
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
Com'l $ 6.4 $ 6.5 $ 6.5 $ 6.7 $ 6.7 $ 6.7 $ 6.5 $ 6.0
Com'l RE 3.4 3.5 3.5 3.6 3.6 3.7 3.9 3.8
Auto Ln/Lse 6.0 5.7 5.7 5.6 5.8 6.0 6.1 5.9
HEL 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.4
Res Mtg 1.5 1.3 0.9 1.0 0.9 0.9 0.9 1.0
Other 1.6 1.6 1.8 1.6 1.7 1.6 1.6 1.4
----- ----- ----- ----- ----- ----- ----- ----- -----
$20.8 $20.6 $20.5 $20.7 $21.0 $21.3 $21.5 $20.5 $19.1
===== ===== ===== ===== ===== ===== ===== ===== =====
Core Deposits
- -------------
1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
Non. Int. Brg. DDA $ 3.2 $ 3.3 $ 3.3 $ 3.4 $ 3.0
Int. Brg. DDA 4.6 4.8 5.1 5.5 5.1
Savings 3.5 3.5 3.5 3.4 3.1
Other Dom. Tire 6.0 5.7 5.9 5.9 5.1
----- ----- ----- ----- ----- -----
$17.3 $17.3 $17.8 $18.2 $16.3 $14.0
===== ===== ===== ===== ===== =====
46
[LOGO]
PERFORMANCE TRENDS (1)
Non-Interest Income
- -------------------
<Table>
<Caption>
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL
Dep. Sv. Chg. $ 40 $ 40 $ 39 $ 39 $ 41 $ 42 $43 $ 39
Brkg/Ins. 14 16 17 19 19 20 21 19
Mtg. Bnkg. 8 9 12 10 19 15 16 20
Trust Svc. 13 13 14 14 15 15 15 16
Other S. Chg. 11 11 12 11 12 12 13 10
BOLI 10 10 11 10 10 10 10 12
Other 20 11 25 13 15 15 15 10
----- ---- ---- ---- ---- ---- ---- ---- ----
$116 $110 $130 $116 $131 $129 $133 $126 $115
==== ==== ==== ==== ==== ==== ==== ==== ====
Revenue (Fte)
- -------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL
$350 $348 $365 $361 $380 $381 $390 $370 $349
(1) Excluding securities gains and gain on sale of Florida operations in
1Q02
47
[LOGO]
[GRAPHS]
PERFORMANCE TRENDS
Non-interest Expense (1)
- ------------------------
<Table>
<Caption>
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL
Personnel $104 $110 $106 $118 $122 $121 $118 $114
Equip/Occ. 36 39 39 40 38 39 41 34
Outside DP/
Other Svc. 15 16 16 17 18 17 18 18
Other 43 49 63 59 55 52 50 41
---- ---- ---- ---- ---- ---- ---- ---- -----
$198 $214 $224 $234 $233 $229 $227 $207 $189
==== ==== ==== ==== ==== ==== ==== ==== ====
</Table>
Efficiency Ratio (2)
- --------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02
53.9% 58.4% 58.5% 62.0% 58.6% 57.5% 55.8% 55.7%
XFL 60.2% 56.2% 54.0% 52.5% 54.1%
(1) Operating basis - Excludes impact of restructuring and other charges
(2) FTE Revenue excludes securities gains and gain on sale of Florida
operations / non-interest expense excludes intangible amortization and
48 restructuring and other charges
48
[LOGO]
[GRAPH]
LOAN LOSS RESERVE
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02
1.45% 1.45% 1.45% 1.45% 1.67% 1.67% 1.90% 2.00%
$297 $295 $298 $302 $352 $360 $411 $386
Loan Loss Reserve Flow Analysis
- -------------------------------
($MM) 1Q02 4Q01 3Q01
---- ---- ----
LLR- beginning $410.6 $360.4 $352.2
Charge-offs (67.5) (66.8) (49.4)
Recoveries 11.7 10.7 9.6
---- ---- ---
Net charge-offs (55.8) (56.1) (39.8)
Provision exp. 55.8 58.3 49.6
Provision exp.-other 50.0
Assets sold (22.3)
Loans securitized (2.2) (2.0) (1.6)
---- ---- ---
LLR-ending $386.1 $410.6 $360.4
49
[LOGO]
[GRAPHS]
PERFORMANCE TRENDS (1)
Loan Loss Provision
- -------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL
$16 $26 $33 $33 $46 $50 $58 $56 $51
Net Income
- ----------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL
$98 $83 $76 $68 $75 $76 $75 $77 $80
(1) Operating basis - Excludes after tax impact of restructuring and other
charges and gain on sale of Florida operations in 1Q02
50
[LOGO]
CREDIT QUALITY OVERVIEW
1Q02 4Q01 1Q01
---- ---- ----
NPAs / total loans + OREO 1.17 % 1.05 % 0.60 %
Net charge-offs
- Reported 1.11 1.04 0.55
- Adjusted (1) 1.04 0.98 0.55
- Adjusted Xcld. Florida 1.00 1.04 0.57
90+ days past due 0.32 0.42 0.49
Consumer 0.44 0.61 0.69
Commercial / CRE 0.19 0.22 0.29
Reserve / total loans 2.00 1.90 1.45
Reserve / NPAs 171 180 239
(1) Excludes impact of net charge-offs on exited portfolios
51
[LOGO]
NON-PERFORMING ASSET FLOW ANALYSIS
Period End ($MM)
- ----------
1Q02 4Q01 3Q01 2Q01 1Q01
---- ---- ---- ---- ----
NPA beginning of period $227.5 $210.1 $166.0 $124.9 $105.4
New NPAs 74.4 86.0 95.0 95.0 53.9
Loan losses (26.1) (34.6) (12.5) (13.2) (7.2)
Payments (37.7) (28.3) (34.2) (19.3) (25.0)
Sales (1) (8.9) (4.1) (3.3) (21.3) (1.9)
Other (3.7) (1.6) (0.9) (0.1) (0.3)
------ ------ ------ ------ ------
NPA end of period $225.5 $227.5 $210.1 $166.0 $124.9
% of loans and OREO 1.17% 1.05% 0.97% 0.79% 0.60%
(1) 1Q02 includes $6.5 MM related to the sale of Florida banking operations
and 2Q01 includes $14.9 MM related to PG & E.
52
[LOGO]
[GRAPH]
NET CHARGE-OFFS - ADJUSTED (1)
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02
0.30% 0.46% 0.50% 0.55% 0.73% 0.61% 0.98% 1.04%
$16 $24 $25 $29 $37 $33 $53 $52
1Q02 4Q01 1Q01
---- ---- ----
Commercial 1.31 % 1.39 % 0.41 %
Commercial real estate 0.42 0.08 0.15
Consumer
Auto loans - indirect 1.59 1.46 1.43
Auto lease 1.64 1.55 0.89
---- ---- ----
Indirect 1.62 1.51 1.13
Installment 1.01 0.86 0.61
Home equity lines 0.36 0.38 0.34
Residential real estate 0.05 0.17 0.03
---- ---- ----
Total consumer 1.10 1.05 0.78
---- ---- ----
Total 1.04 % 0.98 % 0.55 %
Total - Excluding Florida 1.00 % 1.04 % 0.57 %
(1) Excludes impact of net charge-offs on exited portfolios. Reported total
consumer net charge-offs were 1.23% in 1Q02, 1.17% in 4Q01, and 0.78%
in 1Q01. Reported total net charge-offs were 1.11% in 1Q02, 1.04% in
4Q01, and 0.55% in 1Q01.
53
[LOGO]
[GRAPHS]
DELINQUENCY TRENDS - 30+ DAYS (1)
Total Loans
- -----------
1Q01 2Q01 3Q01 4Q01 1Q02
2.15% 2.31% 2.33% 2.31% 1.89%
Consumer Loans
- --------------
1Q01 2Q01 3Q01 4Q01 1Q02
2.67% 2.75% 2.97% 3.21% 2.36
(1) % of related outstanding at EOP. Data before 1Q02 includes Florida.
54
[LOGO]
[GRAPHS]
PERFORMANCE TRENDS (1)
Return on Average Assets
- ------------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
1.37% 1.15% 1.06% 0.97% 1.05% 1.07% 1.07% 1.18% 1.30%
Return on Average Equity
- ------------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL
17.8% 14.0% 12.9% 11.5% 12.4% 12.6% 12.7% 13.3% 13.6%
(1) Operating basis - Excludes after tax impact of restructuring and other
charges and gain on sale of Florida operations in 1Q02 55
55
HUNTINGTON BANCSHARES INCORPORATED
QUARTERLY FINANCIAL REVIEW
JUNE 2002
TABLE OF CONTENTS
REPORTED BASIS
Consolidated Statements of Income 1
Consolidated Balance Sheets 2
Loans and Deposits 3
Quarterly Net Interest Margin Analysis 4 & 5
Selected Quarterly Income Statement Data 6
Loan Loss Reserves and Net Charge-Off Analysis 7
Non-Performing Assets and Past Due Loans 8
Stock Summary, Capital, and Other Data 9
OPERATING BASIS
- Definition of Operating Basis 10
- Consolidated Statements of Income 11
- Loans and Deposits 12
- Quarterly Net Interest Margin Analysis 13 & 14
- Selected Quarterly Income Statement Data 15
- Loan Loss Reserves and Net Charge-Off Analysis 16
- Non-Performing Assets and Past Due Loans 17
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
REPORTED BASIS
THREE MONTHS ENDED JUNE 30,
- ------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) 2002 2001
- ------------------------------------------------------------------------------------------------------------
Net Interest Income $ 241,859 $ 248,033
Provision for loan losses 53,892 117,495
- ------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 187,967 130,538
- ------------------------------------------------------------------------------------------------------------
Total non-interest income 117,980 128,203
Total non-interest expense 192,060 267,293
- ------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 113,887 (8,552)
Income taxes 31,647 (10,929)
- ------------------------------------------------------------------------------------------------------------
NET INCOME $ 82,240 $ 2,377
- ------------------------------------------------------------------------------------------------------------
PER COMMON SHARE
Net income
Basic $0.33 $0.01
Diluted $0.33 $0.01
Cash dividends declared $0.16 $0.20
AVERAGE COMMON SHARES
Basic 246,106 251,024
Diluted 247,867 251,448
- ------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30,
- ------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) 2002 2001
- ------------------------------------------------------------------------------------------------------------
Net Interest Income $ 484,684 $ 491,157
Provision for loan losses 109,673 150,959
- ------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 375,011 340,198
- ------------------------------------------------------------------------------------------------------------
Total non-interest income 419,408 245,927
Total non-interest expense 455,630 501,383
- ------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 338,789 84,742
Income taxes 158,822 14,499
- ------------------------------------------------------------------------------------------------------------
NET INCOME $ 179,967 $ 70,243
- ------------------------------------------------------------------------------------------------------------
PER COMMON SHARE
Net income
Basic $0.72 $0.28
Diluted $0.72 $0.28
Cash dividends declared $0.32 $0.40
AVERAGE COMMON SHARES
Basic 248,415 250,984
Diluted 249,946 251,479
THREE MONTHS ENDED JUNE 30, CHANGE
- ---------------------------------------------------------------------- ---------------------------------
(in thousands, except per share amounts) Amount Percent
- ---------------------------------------------------------------------- ---------------------------------
Net Interest Income $ (6,174) (2.5)%
Provision for loan losses (63,603) (54.1)
- ---------------------------------------------------------------------- ---------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 57,429 44.0
- ---------------------------------------------------------------------- ---------------------------------
Total non-interest income (10,223) (8.0)
Total non-interest expense (75,233) (28.1)
- ---------------------------------------------------------------------- ---------------------------------
INCOME BEFORE INCOME TAXES 122,439 N.M.
Income taxes 42,576 N.M.
- ---------------------------------------------------------------------- ---------------------------------
NET INCOME $ 79,863 N.M.%
- ---------------------------------------------------------------------- ---------------------------------
PER COMMON SHARE
Net income
Basic $ 0.32 N.M.%
Diluted $ 0.32 N.M.%
Cash dividends declared $ (0.04) (20.0)%
AVERAGE COMMON SHARES
Basic (4,918) (2.0)%
Diluted (3,581) (1.4)%
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, CHANGE
- ---------------------------------------------------------------------- ---------------------------------
(in thousands, except per share amounts) Amount Percent
- ---------------------------------------------------------------------- ---------------------------------
Net Interest Income $ (6,473) (1.3)%
Provision for loan losses (41,286) (27.3)
- ---------------------------------------------------------------------- ---------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 34,813 10.2
- ---------------------------------------------------------------------- ---------------------------------
Total non-interest income 173,481 70.5
Total non-interest expense (45,753) (9.1)
- ---------------------------------------------------------------------- ---------------------------------
INCOME BEFORE INCOME TAXES 254,047 N.M.
Income taxes 144,323 N.M.
- ---------------------------------------------------------------------- ---------------------------------
NET INCOME $ 109,724 N.M.%
- ---------------------------------------------------------------------- ---------------------------------
PER COMMON SHARE
Net income
Basic $ 0.44 N.M.%
Diluted $ 0.44 N.M.%
Cash dividends declared $ (0.08) (20.0)%
AVERAGE COMMON SHARES
Basic (2,569) (1.0)%
Diluted (1,533) (0.6)%
N.M. - Not Meaningful.
Page 1
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED BALANCE SHEETS
REPORTED BASIS
- -----------------------------------------------------------------------------------------------------------------------------------
JUNE 30, December 31, June 30,
(in thousands) 2002 2001 2001
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 858,561 $ 1,138,366 $ 908,686
Interest bearing deposits in banks 28,385 21,205 4,893
Trading account securities 10,532 13,392 4,291
Federal funds sold and securities
purchased under resale agreements 75,824 83,275 59,725
Loans held for sale 190,724 629,386 376,671
Securities available for sale - at fair value 3,006,273 2,849,579 3,190,686
Investment securities - fair value $10,963; $12,499;
and $15,159, respectively 10,769 12,322 14,978
Total loans (1) 19,652,170 21,601,873 21,127,862
Less allowance for loan losses 393,011 410,572 352,243
- ----------------------------------------------------------------------------------------------------------------------------------
Net loans 19,259,159 21,191,301 20,775,619
- ----------------------------------------------------------------------------------------------------------------------------------
Bank owned life insurance 863,327 843,183 824,062
Premises and equipment 353,931 452,036 457,749
Goodwill and other intangible assets 210,685 716,054 737,437
Customers' acceptance liability 16,778 13,670 15,335
Accrued income and other assets 496,468 536,390 578,018
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 25,381,416 $ 28,500,159 $ 27,948,150
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Total deposits (1) $ 16,861,100 $ 20,187,304 $ 18,996,922
Short-term borrowings 2,064,275 1,955,926 2,585,773
Bank acceptances outstanding 16,778 13,670 15,337
Medium-term notes 1,782,438 1,795,002 1,983,603
Subordinated notes and other long-term debt 943,706 944,330 890,371
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 1,061,259 887,487 822,622
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 23,029,556 26,083,719 25,594,628
- ----------------------------------------------------------------------------------------------------------------------------------
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 242,919,872; 251,193,814; and
251,056,761 shares, respectively 2,487,887 2,490,724 2,490,682
Less 14,946,383; 6,672,441; and 6,809,494
treasury shares, respectively (289,705) (123,849) (125,095)
Accumulated other comprehensive income (loss) 28,655 25,488 (8,388)
Retained earnings (deficit) 125,023 24,077 (3,677)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Shareholders' Equity 2,351,860 2,416,440 2,353,522
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 25,381,416 $ 28,500,159 $ 27,948,150
- -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------ -------------------------------------
Change June '02 vs. '01
-------------------------------------
Amount Percent
- ------------------------------------------------------------ ------------------ ----------------
ASSETS
Cash and due from banks $ (50,125) (5.5)%
Interest bearing deposits in banks 23,492 N.M.
Trading account securities 6,241 N.M.
Federal funds sold and securities
purchased under resale agreements 16,099 27.0
Loans held for sale (185,947) (49.4)
Securities available for sale - at fair value (184,413) (5.8)
Investment securities - fair value $10,963; $12,499;
and $15,159, respectively (4,209) (28.1)
Total loans (1) (1,475,692) (7.0)
Less allowance for loan losses 40,768 11.6
- ------------------------------------------------------------ -------------------------------------
Net loans (1,516,460) (7.3)
- ------------------------------------------------------------ -------------------------------------
Bank owned life insurance 39,265 4.8
Premises and equipment (103,818) (22.7)
Goodwill and other intangible assets (526,752) (71.4)
Customers' acceptance liability 1,443 9.4
Accrued income and other assets (81,550) (14.1)
- ------------------------------------------------------------ -------------------------------------
TOTAL ASSETS $(2,566,734) (9.2)%
- ------------------------------------------------------------ -------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Total deposits (1) $(2,135,822) (11.2)%
Short-term borrowings (521,498) (20.2)
Bank acceptances outstanding 1,441 9.4
Medium-term notes (201,165) (10.1)
Subordinated notes and other long-term debt 53,335 6.0
Company obligated mandatorily redeemable preferred
capital securities of subsidiary trusts holding solely
junior subordinated debentures of the Parent Company --- ---
Accrued expenses and other liabilities 238,637 29.0
- ------------------------------------------------------------ -------------------------------------
Total Liabilities (2,565,072) (10.0)%
- ------------------------------------------------------------ -------------------------------------
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 242,919,872; 251,193,814; and
251,056,761 shares, respectively (2,795) (0.1)
Less 14,946,383; 6,672,441; and 6,809,494
treasury shares, respectively (164,610) N.M.
Accumulated other comprehensive income (loss) 37,043 N.M.
Retained earnings (deficit) 128,700 N.M.
- ------------------------------------------------------------ -------------------------------------
Total Shareholders' Equity (1,662) (0.1)
- ------------------------------------------------------------ -------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $(2,566,734) (9.2)%
- ------------------------------------------------------------ -------------------------------------
(1) See Page 3 for detail of Loans and Deposits.
N.M. - Not Meaningful.
Page 2
HUNTINGTON BANCSHARES INCORPORATED
LOANS AND DEPOSITS
REPORTED BASIS
LOAN PORTFOLIO COMPOSITION BY LOAN TYPE AND BY BUSINESS SEGMENT
- -------------------------------------------------------------------------------
(in thousands)
JUNE 30, 2002
- ------------------------------------------------------------------------------------------------------------------
BY LOAN TYPE BALANCE %
- ------------------------------------------------------------------------------------------------------------------
Commercial $ 5,591,280 28.5
Commercial real estate 3,699,424 18.8
- ------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL AND COMMERCIAL REAL ESTATE 9,290,704 47.3
- ------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect (unearned income $456,485,
$500,430, and $524,029) 3,120,317 15.9
Auto loans - Indirect 2,630,541 13.4
Home equity loans & lines of credit 2,990,726 15.2
Residential mortgage 1,210,991 6.2
Other loans 408,891 2.0
- ------------------------------------------------------------------------------------------------------------------
Total Consumer 10,361,466 52.7
- ------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 19,652,170 100.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL LOANS BY BUSINESS SEGMENT
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 4,587,849 23.3
Northern Ohio 2,722,936 13.9
Southern Ohio / Kentucky 1,433,434 7.3
West Michigan 1,835,321 9.3
East Michigan 1,050,648 5.3
Indiana 683,268 3.5
- -------------------------------------------------------------------------------------------------------------------
TOTAL REGIONAL BANKING 12,313,456 62.6
- -------------------------------------------------------------------------------------------------------------------
Dealer Sales 6,377,265 32.5
Private Financial Group 861,762 4.4
Treasury / Other 99,687 0.5
- -------------------------------------------------------------------------------------------------------------------
TOTAL LOANS EXCLUDING FLORIDA 19,652,170 100.0
- -------------------------------------------------------------------------------------------------------------------
Florida --- ---
- -------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 19,652,170 100.0
- -------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION BY DEPOSIT TYPE AND BY BUSINESS SEGMENT
- -------------------------------------------------------------------------------
(in thousands)
JUNE 30, 2002
- ------------------------------------------------------------------------------------------------------------------
BY DEPOSIT TYPE BALANCE %
- ------------------------------------------------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 2,769,936 16.4
Interest bearing 5,105,196 30.3
Savings deposits 2,839,115 16.8
Other domestic time deposits 4,238,688 25.1
- ------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (1) 14,952,935 88.6
- ------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 765,163 4.5
Brokered time deposits and negotiable CDs 849,347 5.1
Foreign time deposits 293,655 1.8
- ------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 16,861,100 100.0
- ------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS BY BUSINESS SEGMENT
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 5,301,871 31.4
Northern Ohio 3,377,763 20.0
Southern Ohio / Kentucky 1,345,096 8.0
West Michigan 2,546,364 15.1
East Michigan 1,944,617 11.5
Indiana 609,676 3.6
- -----------------------------------------------------------------------------------------------------------------
Total Regional Banking 15,125,387 89.6
- -----------------------------------------------------------------------------------------------------------------
Dealer Sales 50,363 0.3
Private Financial Group 811,470 4.8
Treasury / Other (2) 873,880 5.3
- -----------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS EXCLUDING FLORIDA 16,861,100 100.0
- -----------------------------------------------------------------------------------------------------------------
Florida --- ---
- -----------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 16,861,100 100.0
- -----------------------------------------------------------------------------------------------------------------
DECEMBER 31, 2001
- ---------------------------------------------------------------------------------------------------------------
BY LOAN TYPE BALANCE %
- -------------------------------------------------------------------------------------------------------------------
Commercial $ 6,439,372 29.8
Commercial real estate 3,975,562 18.4
- -------------------------------------------------------------------------------------------------------------------
Total Commercial and Commercial Real Estate 10,414,934 48.2
- -------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect (unearned income $456,485,
$500,430, and $524,029) 3,207,514 14.8
Auto loans - Indirect 2,883,279 13.3
Home equity loans & lines of credit 3,582,028 16.6
Residential mortgage 970,704 4.5
Other loans 543,414 2.6
- -------------------------------------------------------------------------------------------------------------------
Total Consumer 11,186,939 51.8
- -------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 21,601,873 100.0
- -------------------------------------------------------------------------------------------------------------------
TOTAL LOANS BY BUSINESS SEGMENT
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 4,264,143 19.7
Northern Ohio 2,694,081 12.5
Southern Ohio / Kentucky 1,327,355 6.1
West Michigan 1,837,094 8.5
East Michigan 936,899 4.3
Indiana 695,354 3.2
- --------------------------------------------------------------------------------------------------------------------
Total Regional Banking 11,754,926 54.3
- --------------------------------------------------------------------------------------------------------------------
Dealer Sales 6,239,117 29.0
Private Financial Group 762,771 3.5
Treasury / Other 121,534 0.6
- --------------------------------------------------------------------------------------------------------------------
TOTAL LOANS EXCLUDING FLORIDA 18,878,348 87.4
- --------------------------------------------------------------------------------------------------------------------
Florida 2,723,525 12.6
- --------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 21,601,873 100.0
- --------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION BY DEPOSIT TYPE AND BY BUSINESS SEGMENT
- -------------------------------------------------------------------------------
(in thousands)
DECEMBER 31, 2001
- ------------------------------------------------------------------------------- --------------------------------
BY DEPOSIT TYPE BALANCE %
- --------------------------------------------------------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 3,635,173 18.0
Interest bearing 5,723,160 28.4
Savings deposits 3,466,305 17.2
Other domestic time deposits 5,868,451 29.1
- --------------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (1) 18,693,089 92.7
- --------------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 1,130,563 5.6
Brokered time deposits and negotiable CDs 137,915 0.7
Foreign time deposits 225,737 1.0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 20,187,304 100.0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS BY BUSINESS SEGMENT
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 5,217,459 25.8
Northern Ohio 3,255,847 16.1
Southern Ohio / Kentucky 1,290,832 6.4
West Michigan 2,226,500 11.0
East Michigan 1,895,470 9.4
Indiana 577,699 2.9
- --------------------------------------------------------------------------------------------------------------------------
Total Regional Banking 14,463,807 71.6
- --------------------------------------------------------------------------------------------------------------------------
Dealer Sales 82,684 0.4
Private Financial Group 716,693 3.6
Treasury / Other (2) 256,201 1.3
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS EXCLUDING FLORIDA 15,519,385 76.9
- --------------------------------------------------------------------------------------------------------------------------
Florida 4,667,919 23.1
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 20,187,304 100.0
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS BY BUSINESS SEGMENT
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 5,217,459 25.8
Northern Ohio 3,255,847 16.1
Southern Ohio / Kentucky 1,290,832 6.4
West Michigan 2,226,500 11.0
East Michigan 1,895,470 9.4
Indiana 577,699 2.9
- --------------------------------------------------------------------------------------------------------------------------
Total Regional Banking 14,463,807 71.6
- --------------------------------------------------------------------------------------------------------------------------
Dealer Sales 82,684 0.4
Private Financial Group 716,693 3.6
Treasury / Other (2) 256,201 1.3
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS EXCLUDING FLORIDA 15,519,385 76.9
- --------------------------------------------------------------------------------------------------------------------------
Florida 4,667,919 23.1
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 20,187,304 100.0
- --------------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION BY LOAN TYPE AND BY BUSINESS SEGMENT
- -------------------------------------------------------------------------------
(in thousands)
JUNE 30, 2001
- -------------------------------------------------------------------------------- ---------------------------------
BY LOAN TYPE BALANCE %
- ----------------------------------------------------------------------------------------------------------------------
Commercial $ 6,753,809 32.0
Commercial real estate 3,639,811 17.2
- ----------------------------------------------------------------------------------------------------------------------
Total Commercial and Commercial Real Estate 10,393,620 49.2
- ----------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect (unearned income $456,485,
$500,430, and $524,029) 3,194,592 15.1
Auto loans - Indirect 2,675,479 12.7
Home equity loans & lines of credit 3,406,465 16.1
Residential mortgage 844,417 4.0
Other loans 613,289 2.9
- ----------------------------------------------------------------------------------------------------------------------
Total Consumer 10,734,242 50.8
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 21,127,862 100.0
- ----------------------------------------------------------------------------------------------------------------------
Total Loans by Business Segment
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 4,241,112 20.1
Northern Ohio 2,761,361 13.1
Southern Ohio / Kentucky 1,286,152 6.1
West Michigan 1,845,281 8.7
East Michigan 819,537 3.9
Indiana 663,425 3.1
- ----------------------------------------------------------------------------------------------------------------------
Total Regional Banking 11,616,868 55.0
- ----------------------------------------------------------------------------------------------------------------------
Dealer Sales 6,206,823 29.4
Private Financial Group 638,803 3.0
Treasury / Other 86,088 0.4
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LOANS EXCLUDING FLORIDA 18,548,582 87.8
- ----------------------------------------------------------------------------------------------------------------------
Florida 2,579,280 12.2
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 21,127,862 100.0
- ----------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION BY DEPOSIT TYPE AND BY BUSINESS SEGMENT
- -------------------------------------------------------------------------------
(in thousands)
JUNE 30, 2001
- -------------------------------------------------------------------------------- ---------------------------------
BY DEPOSIT TYPE BALANCE %
- ---------------------------------------------------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 3,258,252 17.2
Interest bearing 4,878,355 25.7
Savings deposits 3,640,318 19.2
Other domestic time deposits 5,542,738 29.2
- ---------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (1) 17,319,663 91.3
- ---------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 1,167,206 6.1
Brokered time deposits and negotiable CDs 100,233 0.5
Foreign time deposits 409,820 2.1
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 18,996,922 100.0
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS BY BUSINESS SEGMENT
- --------------------------------------------------------------------------
Regional Banking
Central Ohio / West Virginia $ 4,702,728 24.8
Northern Ohio 3,033,586 16.0
Southern Ohio / Kentucky 1,206,253 6.3
West Michigan 2,207,616 11.6
East Michigan 1,741,008 9.2
Indiana 542,694 2.9
- ---------------------------------------------------------------------------------------------------------------------
Total Regional Banking 13,433,885 70.8
- ---------------------------------------------------------------------------------------------------------------------
Dealer Sales 87,688 0.4
Private Financial Group 595,424 3.1
Treasury / Other (2) 420,678 2.2
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS EXCLUDING FLORIDA 14,537,675 76.5
- ---------------------------------------------------------------------------------------------------------------------
Florida 4,459,247 23.5
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 18,996,922 100.0
- ---------------------------------------------------------------------------------------------------------------------
(1) Core deposits include non-interest bearing and interest bearing demand
deposits, savings deposits, CDs under $100,000, and IRA deposits.
(2) Comprised largely of brokered deposits and negotiable CDs.
Page 3
HUNTINGTON BANCSHARES INCORPORATED
- -------------------------------------------------------------------------------
CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS
REPORTED BASIS
(in millions)
AVERAGE BALANCES
------------------------------------------------------------------
2002 2001
- ---------------------------------------------------------------------------------- --------------------------------------
Fully Tax Equivalent Basis (1) SECOND First Fourth Third Second
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest bearing deposits in banks $ 29 $ 34 $ 14 $ 5 $ 5
Trading account securities 6 5 8 8 39
Federal funds sold and securities purchased
under resale agreements 68 62 86 86 93
Mortgages held for sale 174 381 433 344 420
Securities:
Taxable 2,735 2,713 2,720 2,896 3,368
Tax exempt 96 101 108 140 201
- --------------------------------------------------------------------------------------------------------------------------
Total Securities 2,831 2,814 2,828 3,036 3,569
- --------------------------------------------------------------------------------------------------------------------------
Loans:
Commercial 5,614 6,045 6,491 6,681 6,741
Real Estate
Construction 1,420 1,455 1,492 1,388 1,303
Commercial 2,233 2,364 2,397 2,346 2,294
Consumer
Auto leases - Indirect 3,113 3,166 3,229 3,243 3,222
Auto loans - Indirect 2,597 2,730 2,903 2,806 2,575
Home equity loans & lines of credit 2,911 3,209 3,554 3,456 3,344
Residential mortgage 1,229 1,021 892 854 942
Other loans 413 482 554 574 600
- --------------------------------------------------------------------------------------------------------------------------
Total Consumer 10,263 10,608 11,132 10,933 10,683
- --------------------------------------------------------------------------------------------------------------------------
Total Loans 19,530 20,472 21,512 21,348 21,021
- --------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 400 415 393 358 316
- --------------------------------------------------------------------------------------------------------------------------
Net loans 19,130 20,057 21,119 20,990 20,705
- --------------------------------------------------------------------------------------------------------------------------
Total earning assets 22,638 23,768 24,881 24,827 25,147
- --------------------------------------------------------------------------------------------------------------------------
Cash and due from banks 722 819 876 910 910
All other assets 1,997 2,372 2,613 2,609 2,608
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $24,957 $ 26,544 $ 27,977 $ 27,988 $ 28,349
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits $2,739 $ 3,041 $ 3,406 $ 3,341 $ 3,252
Interest bearing demand deposits 4,920 5,148 5,519 5,096 4,799
Savings deposits 2,808 3,097 3,388 3,472 3,547
Other domestic time deposits 4,218 5,015 5,923 5,940 5,718
- --------------------------------------------------------------------------------------------------------------------------
Total core deposits 14,685 16,301 18,236 17,849 17,316
- --------------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 852 1,052 1,199 1,262 1,294
Brokered time deposits and negotiable CDs 649 302 109 120 118
Foreign time deposits 296 270 230 257 377
- --------------------------------------------------------------------------------------------------------------------------
Total deposits 16,482 17,925 19,774 19,488 19,105
- --------------------------------------------------------------------------------------------------------------------------
Short-term borrowings 1,886 1,998 1,907 2,140 2,759
Medium-term notes 1,910 1,967 1,863 1,990 2,005
Subordinated notes and other long-term debt,
including preferred capital securities 1,229 1,233 1,183 1,184 1,180
- --------------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities 18,768 20,082 21,321 21,461 21,797
- --------------------------------------------------------------------------------------------------------------------------
All other liabilities 1,107 1,051 889 811 897
Shareholders' equity 2,343 2,370 2,361 2,375 2,403
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $24,957 $ 26,544 $ 27,977 $ 27,988 $ 28,349
- --------------------------------------------------------------------------------------------------------------------------
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate.
Page 4
HUNTINGTON BANCSHARES INCORPORATED
- -------------------------------------------------------------------------------
CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS
REPORTED BASIS
(in millions)
AVERAGE RATES (3)
-------------------------------------------------------------
2002 2001
- ------------------------------------------------------------------------------------ --------------------------------
Fully Tax Equivalent Basis (1) SECOND First Fourth Third Second
- ----------------------------------------------------------------------------------------------------------------------
ASSETS
Interest bearing deposits in banks 2.44% 2.02% 2.09% 3.75% 5.09%
Trading account securities 5.37 2.79 3.59 3.83 5.15
Federal funds sold and securities purchased
under resale agreements 1.51 1.43 2.18 3.20 4.21
Mortgages held for sale 7.07 6.51 6.64 7.18 6.96
Securities:
Taxable 6.33 6.43 6.62 6.71 6.26
Tax exempt 7.69 7.76 7.81 7.38 7.26
- ----------------------------------------------------------------------------------------------------------------------
Total Securities 6.37 6.48 6.66 6.75 6.32
- ----------------------------------------------------------------------------------------------------------------------
Loans:
Commercial 5.50 5.39 5.86 6.92 7.44
Real Estate
Construction 4.81 4.91 5.50 6.62 7.43
Commercial 6.36 6.62 6.85 7.54 7.92
Consumer
Auto leases - Indirect 6.42 6.62 6.58 6.67 6.71
Auto loans - Indirect 7.98 8.03 8.24 8.45 8.70
Home equity loans & lines of credit 5.72 6.30 7.20 7.87 8.56
Residential mortgage 6.23 6.57 7.17 7.54 7.72
Other loans 7.47 7.41 8.12 7.89 8.01
- ----------------------------------------------------------------------------------------------------------------------
Total Consumer 6.64 6.92 7.34 7.65 7.94
- ----------------------------------------------------------------------------------------------------------------------
Total Loans 6.15 6.29 6.71 7.34 7.75
- ----------------------------------------------------------------------------------------------------------------------
Loan fees 0.55 0.48 0.51 0.53 0.56
- ----------------------------------------------------------------------------------------------------------------------
Total Loans with fees (2) 6.70 6.77 7.22 7.87 8.31
- ----------------------------------------------------------------------------------------------------------------------
Total earning assets 6.64% 6.71% 7.12% 7.70% 7.98%
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits
Interest bearing demand deposits 1.84% 1.80% 2.00% 2.74% 2.87%
Savings deposits 1.83 1.87 2.11 3.00 3.42
Other domestic time deposits 4.61 4.99 5.19 5.52 5.83
- ----------------------------------------------------------------------------------------------------------------------
Total core deposits 2.29 2.46 2.68 3.20 3.42
- ----------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 2.82 3.05 4.68 4.82 5.33
Brokered time deposits and negotiable CDs 2.48 2.48 3.55 4.42 5.57
Foreign time deposits 1.38 1.91 1.99 3.39 4.11
- ----------------------------------------------------------------------------------------------------------------------
Total deposits 2.31 2.49 2.80 3.32 3.58
- ----------------------------------------------------------------------------------------------------------------------
Short-term borrowings 1.97 2.36 2.65 3.69 4.37
Medium-term notes 3.21 3.43 4.58 6.12 6.59
Subordinated notes and other long-term debt,
including preferred capital securities 4.05 4.14 4.96 5.19 5.96
- ----------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities 2.82% 3.04% 3.51% 4.23% 4.62%
- ----------------------------------------------------------------------------------------------------------------------
Net interest rate spread 3.82% 3.67% 3.61% 3.47% 3.36%
Impact of non-interest bearing funds on margin 0.48 0.47 0.50 0.57 0.61
- ----------------------------------------------------------------------------------------------------------------------
NET INTEREST MARGIN 4.30% 4.14% 4.11% 4.04% 3.97%
- ----------------------------------------------------------------------------------------------------------------------
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate.
(2) Total loans with fees rate includes loan fees, whereas individual loan
components above are shown exclusive of fees.
(3) Loan and deposit average rates include impact of applicable derivatives.
Page 5
HUNTINGTON BANCSHARES INCORPORATED
SELECTED QUARTERLY INCOME STATEMENT DATA
REPORTED BASIS
2002
- ------------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) SECOND First
- ------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME $241,859 $ 242,825
Provision for loan losses 53,892 55,781
- ------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 187,967 187,044
- ------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 35,354 38,530
Brokerage and insurance income 17,677 18,792
Trust services 16,247 15,501
Mortgage banking 10,725 19,565
Bank Owned Life Insurance income 11,443 11,676
Other service charges and fees 10,529 10,632
Other 15,039 10,931
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME BEFORE GAIN ON SALE
OF FLORIDA OPERATIONS AND SECURITIES GAINS (LOSSES) 117,014 125,627
Gain on sale of Florida operations --- 175,344
Securities gains (losses) 966 457
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME 117,980 301,428
- ------------------------------------------------------------------------------------------------------------------
Personnel costs 105,146 114,285
Outside data processing and other services 16,592 18,439
Equipment 16,659 16,949
Net occupancy 14,756 17,239
Marketing 7,231 7,003
Professional services 6,267 5,401
Telecommunications 5,320 6,018
Printing and supplies 3,683 3,837
Franchise and other taxes 2,313 2,328
Amortization of intangible assets 235 1,376
Other 13,858 14,511
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES 192,060 207,386
Special charges --- 56,184
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE AFTER SPECIAL CHARGES 192,060 263,570
- ------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 113,887 224,902
Income taxes 31,647 127,175
- ------------------------------------------------------------------------------------------------------------------
NET INCOME $ 82,240 $ 97,727
- ------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE
Net Income - Diluted $0.33 $0.39
Cash Dividends Declared $0.16 $0.16
RETURN ON:
Average total assets 1.32% 1.49%
Average total shareholders' equity 14.1% 16.7%
Net interest margin (1) 4.30% 4.14%
Efficiency ratio (2) 53.3% 55.7%
REVENUE - FULLY TAXABLE EQUIVALENT (FTE)
Net Interest Income $241,859 $ 242,825
Tax Equivalent Adjustment (1) 1,071 1,169
- ------------------------------------------------------------------------------------------------------------------
Net Interest Income 242,930 243,994
Non-Interest Income 117,980 301,428
- ------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE $360,910 $ 545,422
- ------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE EXCLUDING SECURITIES GAINS (LOSSES) $359,944 $ 544,965
- ------------------------------------------------------------------------------------------------------------------
2001
- ------------------------------------------------------------------------ --------------------------------------------------------
(in thousands, except per share amounts) Fourth Third Second
- ---------------------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME $255,238 $249,787 $248,033
Provision for loan losses 108,275 49,559 117,495
- ---------------------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 146,963 200,228 130,538
- ---------------------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 42,753 41,719 40,673
Brokerage and insurance income 20,966 19,912 19,388
Trust services 15,321 15,485 15,178
Mortgage banking 15,768 14,616 18,733
Bank Owned Life Insurance income 9,560 9,560 9,561
Other service charges and fees 12,552 12,350 12,217
Other 16,088 15,755 14,956
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME BEFORE GAIN ON SALE
OF FLORIDA OPERATIONS AND SECURITIES GAINS (LOSSES) 133,008 129,397 130,706
Gain on sale of Florida operations --- --- ---
Securities gains (losses) 89 1,059 (2,503)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME 133,097 130,456 128,203
- ---------------------------------------------------------------------------------------------------------------------------------
Personnel costs 118,143 120,767 122,068
Outside data processing and other services 17,992 17,375 17,671
Equipment 20,593 20,151 19,844
Net occupancy 19,950 19,266 18,188
Marketing 6,345 6,921 7,852
Professional services 6,235 5,912 6,763
Telecommunications 6,793 6,859 7,207
Printing and supplies 4,293 4,450 4,565
Franchise and other taxes 2,893 2,470 2,246
Amortization of intangible assets 10,100 10,114 10,435
Other 14,017 14,605 16,457
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES 227,354 228,890 233,296
Special charges 15,143 50,817 33,997
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE AFTER SPECIAL CHARGES 242,497 279,707 267,293
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 37,563 50,977 (8,552)
Income taxes (28,086) 8,348 (10,929)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 65,649 $ 42,629 $ 2,377
- ---------------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE
Net Income - Diluted $0.26 $0.17 $0.01
Cash Dividends Declared $0.16 $0.16 $0.20
RETURN ON:
Average total assets 0.93% 0.60% 0.03%
Average total shareholders' equity 11.0% 7.1% 0.4%
Net interest margin (1) 4.11% 4.04% 3.97%
Efficiency ratio (2) 55.8% 57.5% 58.6%
REVENUE - FULLY TAXABLE EQUIVALENT (FTE)
Net Interest Income $255,238 $249,787 $248,033
Tax Equivalent Adjustment (1) 1,292 1,442 1,616
- ---------------------------------------------------------------------------------------------------------------------------------
Net Interest Income 256,530 251,229 249,649
Non-Interest Income 133,097 130,456 128,203
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE $389,627 $381,685 $377,852
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE EXCLUDING SECURITIES GAINS (LOSSES) $389,538 $380,626 $380,355
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Calculated assuming a 35% tax rate.
(2) Excludes gain on sale of Florida operations and special charges.
Page 6
HUNTINGTON BANCSHARES INCORPORATED
LOAN LOSS RESERVE AND NET CHARGE-OFF ANALYSIS
REPORTED BASIS
2002
- ---------------------------------------------------------------------------------------------------------------------
(in thousands) SECOND First
- ------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $386,053 $410,572
Loan losses (57,482) (67,527)
Recoveries of loans previously charged off 12,582 11,746
- ------------------------------------------------------------------------------------------------------------------------
Net loan losses (44,900) (55,781)
- ------------------------------------------------------------------------------------------------------------------------
Allowance of assets sold --- (22,297)
Allowance of securitized loans (2,034) (2,222)
Provision for loan losses 53,892 55,781
- ------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $393,011 $386,053
- ------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses as a % of total loans 2.00% 2.00%
Allowance for loan losses as a % of non-performing loans 185.3% 175.9%
Allowance for loan losses and OREO as a % of
non-performing assets 175.7% 170.9%
NET CHARGE-OFFS BY LOAN TYPE
Commercial $ 21,528 $ 19,586
Commercial real estate 2,037 3,983
- ------------------------------------------------------------------------------------------------------------------------
Total commercial and commercial real estate 23,565 23,569
Consumer
Auto leases 8,401 12,809
Auto loans 7,356 12,759
Home equity loans & lines of credit 3,096 3,950
Residential mortgage 555 122
Other loans 1,927 2,572
- ------------------------------------------------------------------------------------------------------------------------
Total consumer 21,335 32,212
- ------------------------------------------------------------------------------------------------------------------------
TOTAL NET CHARGE-OFFS $ 44,900 $ 55,781
- ------------------------------------------------------------------------------------------------------------------------
NET CHARGE-OFFS - ANNUALIZED PERCENTAGES
Commercial 1.54% 1.31%
Commercial real estate 0.22 0.42
- ------------------------------------------------------------------------------------------------------------------------
Total commercial and commercial real estate 1.02 0.97
Consumer
Auto leases 1.08 1.64
Auto loans 1.14 1.90
Home equity loans & lines of credit 0.43 0.50
Residential mortgage 0.18 0.05
Other loans 1.87 2.16
- ------------------------------------------------------------------------------------------------------------------------
Total consumer 0.83 1.23
- ------------------------------------------------------------------------------------------------------------------------
TOTAL NET CHARGE-OFFS 0.92% 1.11%
- ------------------------------------------------------------------------------------------------------------------------
NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING
EXITED BUSINESSES 0.88% 1.04%
- ------------------------------------------------------------------------------------------------------------------------
2001
- --------------------------------------------------------------- -----------------------------------------------------------
(in thousands) Fourth Third Second
- -------------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $360,446 $352,243 $301,777
Loan losses (66,808) (49,386) (75,472)
Recoveries of loans previously charged off 10,662 9,643 10,007
- -------------------------------------------------------------------------------------------------------------------------------
Net loan losses (56,146) (39,743) (65,465)
- -------------------------------------------------------------------------------------------------------------------------------
Allowance of assets sold --- --- ---
Allowance of securitized loans (2,003) (1,613) (1,564)
Provision for loan losses 108,275 49,559 117,495
- -------------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $410,572 $360,446 $352,243
- -------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses as a % of total loans 1.90% 1.67% 1.67%
Allowance for loan losses as a % of non-performing loans 185.7% 178.4% 225.7%
Allowance for loan losses and OREO as a % of
non-performing assets 180.1% 171.1% 211.2%
NET CHARGE-OFFS BY LOAN TYPE
Commercial $ 22,555 $ 10,141 $ 13,190
Commercial real estate 797 3 1,624
- -------------------------------------------------------------------------------------------------------------------------------
Total commercial and commercial real estate 23,352 10,144 14,814
Consumer
Auto leases 12,634 10,395 17,535
Auto loans 13,106 11,306 24,568
Home equity loans & lines of credit 4,153 4,866 2,936
Residential mortgage 376 109 241
Other loans 2,525 2,923 5,371
- -------------------------------------------------------------------------------------------------------------------------------
Total consumer 32,794 29,599 50,651
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL NET CHARGE-OFFS $ 56,146 $ 39,743 $ 65,465
- -------------------------------------------------------------------------------------------------------------------------------
NET CHARGE-OFFS - ANNUALIZED PERCENTAGES
Commercial 1.38% 0.60% 0.78%
Commercial real estate 0.08 0.00 0.18
- -------------------------------------------------------------------------------------------------------------------------------
Total commercial and commercial real estate 0.89 0.39 0.57
Consumer
Auto leases 1.55 1.27 2.17
Auto loans 1.79 1.60 3.83
Home equity loans & lines of credit 0.46 0.56 0.35
Residential mortgage 0.17 0.05 0.10
Other loans 1.81 2.02 3.59
- -------------------------------------------------------------------------------------------------------------------------------
Total consumer 1.17 1.07 1.90
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL NET CHARGE-OFFS 1.04% 0.74% 1.25%
- -------------------------------------------------------------------------------------------------------------------------------
NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING
EXITED BUSINESSES 0.98% 0.61% 0.73%
- -------------------------------------------------------------------------------------------------------------------------------
Page 7
HUNTINGTON BANCSHARES INCORPORATED
NON-PERFORMING ASSETS AND PAST DUE LOANS
REPORTED BASIS
2002
- ----------------------------------------------------------------------------------------------------------------
(in thousands) SECOND First
- ----------------------------------------------------------------------------------------------------------------
Non-accrual loans:
Commercial $ 156,252 $ 162,959
Commercial real estate 45,795 43,295
Residential mortgage 8,776 11,896
- ----------------------------------------------------------------------------------------------------------------
Total Nonaccrual Loans 210,823 218,150
Renegotiated loans 1,268 1,268
- ----------------------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING LOANS 212,091 219,418
Other real estate, net 11,146 6,112
- ----------------------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING ASSETS $ 223,237 $ 225,530
- ----------------------------------------------------------------------------------------------------------------
Non-performing loans as a % of total loans 1.08% 1.13%
Non-performing assets as a % of total loans
and other real estate 1.14% 1.17%
ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 58,449 $ 61,746
2002
- ----------------------------------------------------------------------------------------------------------------
(in thousands) SECOND First
- ----------------------------------------------------------------------------------------------------------------
NON-PERFORMING ASSETS, BEGINNING OF PERIOD $ 225,530 $ 227,493
New non-performing assets 73,002 74,446
Loan losses (28,297) (26,072)
Payments (44,303) (37,663)
Sales (2,358) (8,925)(1)
Other (337) (3,749)
- ----------------------------------------------------------------------------------------------------------------
NON-PERFORMING ASSETS, END OF PERIOD $ 223,237 $ 225,530
- ----------------------------------------------------------------------------------------------------------------
2001
- ---------------------------------------------------------------------------------------------------------------------------
(in thousands) Fourth Third Second
- ---------------------------------------------------------------------------------------------------------------------------
Non-accrual loans:
Commercial $ 159,637 $ 148,177 $ 116,044
Commercial real estate 48,360 40,882 26,870
Residential mortgage 11,836 11,666 11,868
- ---------------------------------------------------------------------------------------------------------------------------
Total Nonaccrual Loans 219,833 200,725 154,782
Renegotiated loans 1,276 1,286 1,290
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING LOANS 221,109 202,011 156,072
Other real estate, net 6,384 8,050 9,913
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING ASSETS $ 227,493 $ 210,061 $ 165,985
- ---------------------------------------------------------------------------------------------------------------------------
Non-performing loans as a % of total loans 1.02% 0.94% 0.74%
Non-performing assets as a % of total loans
and other real estate 1.05% 0.97% 0.79%
ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 91,635 $ 92,791 $ 67,077
2001
- ---------------------------------------------------------------------------------------------------------------------------
(in thousands) Fourth Third Second
- ---------------------------------------------------------------------------------------------------------------------------
NON-PERFORMING ASSETS, BEGINNING OF PERIOD $ 210,061 $ 165,985 $ 124,886
New non-performing assets 85,986 94,990 95,037(2)
Loan losses (34,580) (12,480) (13,188)
Payments (28,315) (34,219) (19,332)
Sales (4,131) (3,331) (21,306)(2)
Other (1,528) (884) (112)
- ---------------------------------------------------------------------------------------------------------------------------
NON-PERFORMING ASSETS, END OF PERIOD $ 227,493 $ 210,061 $ 165,985
- ---------------------------------------------------------------------------------------------------------------------------
(1) Includes $6.5 million related to the sale of Florida operations.
(2) Includes $14.9 million related to investment in Pacific Gas & Electric
commercial paper.
Page 8
HUNTINGTON BANCSHARES INCORPORATED
STOCK SUMMARY, CAPITAL, AND OTHER DATA
REPORTED BASIS
2002
- --------------------------------------------------------------------------------------------------------------
SECOND First
- --------------------------------------------------------------------------------------------------------------
High $ 21.770 $ 20.310
Low 18.590 16.660
Close 19.420 19.700
Average Closing Price 20.089 18.332
Cash dividends declared $ 0.16 $ 0.16
Note: Intra-day and closing stock price quotations were obtained from NASDAQ.
- --------------------------------------------------------------------------------------------------------------
CAPITAL DATA - END OF PERIOD
2002
- --------------------------------------------------------------------------------------------------------------
(in millions) SECOND (1) First
- --------------------------------------------------------------------------------------------------------------
Total Risk-Adjusted Assets $ 25,320 $ 24,935
Tier 1 Risk-Based Capital Ratio 9.72% 10.26%
Total Risk-Based Capital Ratio 12.75% 13.40%
Tier 1 Leverage Ratio 9.94% 9.72%
Tangible Equity / Asset Ratio 8.41% 9.03%
- --------------------------------------------------------------------------------------------------------------
OTHER DATA - END OF PERIOD
2002
- --------------------------------------------------------------------------------------------------------------
SECOND First
- --------------------------------------------------------------------------------------------------------------
Number of employees (full-time equivalent)
Huntington, excluding Florida operations 8,174 8,342
Florida operations (2) --- ---
- --------------------------------------------------------------------------------------------------------------
Total Huntington 8,174 8,342
- --------------------------------------------------------------------------------------------------------------
2001
- ----------------------------------------------------------------------- ------------------------------------------------------
Fourth Third Second
- ----------------------------------------------------------------------------------------------------------------------------------
High $ 17.490 $ 19.280 $ 17.000
Low 14.510 15.150 13.875
Close 17.190 17.310 16.375
Average Closing Price 16.269 17.696 14.936
Cash dividends declared $ 0.16 $ 0.16 $ 0.20
Note: Intra-day and closing stock price quotations were
obtained from NASDAQ.
- ----------------------------------------------------------------------------------------------------------------------------------
CAPITAL DATA - END OF PERIOD
2001
- ----------------------------------------------------------------------- ------------------------------------------------------
(in millions) Fourth Third Second
- ----------------------------------------------------------------------------------------------------------------------------------
Total Risk-Adjusted Assets $ 27,896 $ 27,757 $ 27,375
Tier 1 Risk-Based Capital Ratio 7.24% 6.97% 7.01%
Total Risk-Based Capital Ratio 10.29% 10.13% 10.20%
Tier 1 Leverage Ratio 7.41% 7.10% 6.96%
Tangible Equity / Asset Ratio 6.04% 5.96% 5.97%
OTHER DATA - END OF PERIOD
2001
- ----------------------------------------------------------------------- ---------------------------------------------------------
Fourth Third Second
- ---------------------------------------------------------------------------------------------------------------------------------
Number of employees (full-time equivalent)
Huntington, excluding Florida operations 8,521 8,487 8,566
Florida operations (2) 1,222 1,232 1,215
- ---------------------------------------------------------------------------------------------------------------------------------
Total Huntington 9,743 9,719 9,781
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Estimated.
(2) Excludes impact of support staff for Florida operations outside of Florida.
Page 9
SUPPLEMENTAL SELECTED INFORMATION -- OPERATING BASIS
EXCLUDES:
- RESULTS OF FLORIDA OPERATIONS
- GAIN FROM SALES OF FLORIDA OPERATIONS
- RESTRUCTURING AND OTHER CHARGES
Page 10
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
OPERATING BASIS (1)
THREE MONTHS ENDED JUNE 30,
- ---------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) 2002 2001
- ---------------------------------------------------------------------------------------------------------
Net Interest Income $ 241,859 $225,883
Provision for loan losses 53,892 41,937
- ---------------------------------------------------------------------------------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 187,967 183,946
- ---------------------------------------------------------------------------------------------------------
Total non-interest income 115,270 113,608
Total non-interest expense 190,185 192,443
- ---------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 113,052 105,111
Income taxes 31,344 29,509
- ---------------------------------------------------------------------------------------------------------
NET INCOME $ 81,708 $ 75,602
- ---------------------------------------------------------------------------------------------------------
PER COMMON SHARE
Net income
Basic $0.33 $0.30
Diluted $0.33 $0.30
Cash dividends declared $0.16 $0.20
AVERAGE COMMON SHARES
Basic 246,106 251,024
Diluted 247,867 251,448
- -----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30,
- ---------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) 2002 2001
- ---------------------------------------------------------------------------------------------------------
Net Interest Income $ 474,960 $447,901
Provision for loan losses 104,487 71,646
- ---------------------------------------------------------------------------------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 370,473 376,255
- ---------------------------------------------------------------------------------------------------------
Total non-interest income 230,721 212,259
Total non-interest expense 379,236 386,260
- ---------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 221,958 202,254
Income taxes 60,737 55,197
- ---------------------------------------------------------------------------------------------------------
NET INCOME $ 161,221 $147,057
- ---------------------------------------------------------------------------------------------------------
PER COMMON SHARE
Net income
Basic $0.65 $0.58
Diluted $0.65 $0.58
Cash dividends declared $0.32 $0.40
AVERAGE COMMON SHARES
Basic 248,415 250,984
Diluted 249,946 251,479
THREE MONTHS ENDED JUNE 30, CHANGE
- ---------------------------------------------------------------------- -----------------------------------
(in thousands, except per share amounts) Amount Percent
- ---------------------------------------------------------------------- -----------------------------------
Net Interest Income $ 15,976 7.1%
Provision for loan losses 11,955 28.5
- ---------------------------------------------------------------------- -----------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 4,021 2.2
- ---------------------------------------------------------------------- -----------------------------------
Total non-interest income 1,662 1.5
Total non-interest expense (2,258) (1.2)
- ---------------------------------------------------------------------- -----------------------------------
INCOME BEFORE INCOME TAXES 7,941 7.6
Income taxes 1,835 6.2
- ---------------------------------------------------------------------- -----------------------------------
NET INCOME $ 6,106 8.1%
- ---------------------------------------------------------------------- -----------------------------------
PER COMMON SHARE
Net income
Basic $ 0.03 10.0%
Diluted $ 0.03 10.0%
Cash dividends declared $ (0.04) (20.0)%
AVERAGE COMMON SHARES
Basic (4,918) (2.0)%
Diluted (3,581) (1.4)%
- ----------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, CHANGE
- ---------------------------------------------------------------------- -----------------------------------
(in thousands, except per share amounts) Amount Percent
- ---------------------------------------------------------------------- -----------------------------------
Net Interest Income $ 27,059 6.0%
Provision for loan losses 32,841 45.8
- ---------------------------------------------------------------------- -----------------------------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES (5,782) (1.5)
- ---------------------------------------------------------------------- -----------------------------------
Total non-interest income 18,462 8.7
Total non-interest expense (7,024) (1.8)
- ---------------------------------------------------------------------- -----------------------------------
INCOME BEFORE INCOME TAXES 19,704 9.7
Income taxes 5,540 10.0
- ---------------------------------------------------------------------- -----------------------------------
NET INCOME $ 14,164 9.6%
- ---------------------------------------------------------------------- -----------------------------------
PER COMMON SHARE
Net income
Basic $ 0.07 12.1%
Diluted $ 0.07 12.1%
Cash dividends declared $ (0.08) (20.0)%
AVERAGE COMMON SHARES
Basic (2,569) (1.0)%
Diluted (1,533) (0.6)%
(1) See page 10 for definition of Operating Basis.
of related income taxes. The first six months of 2002 excludes the pre-tax
impact of the $175.3 million gain on the sale of the Florida operations
along with $56.2 million of restructuring and other charges and $98.9
million of related income taxes. The first six months of 2001 excludes
$111.0 million of pre-tax restructuring and other charges and $38.8 million
of related income taxes. All periods presented also exclude the results of
the Florida operations, including the J. Rolfe Davis Insurance Agency, Inc.
up to the date of sale in the second quarter 2002.
Page 11
HUNTINGTON BANCSHARES INCORPORATED
LOANS AND DEPOSITS
OPERATING BASIS (1)
2002
- --------------------------------------------------------------------------------------------------------------------
(in thousands) SECOND First
- --------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION - AVERAGE
- -------------------------------------------------------------------------
Commercial $ 5,613,550 $ 5,661,005
Commercial real estate 3,652,906 3,601,097
- ----------------------------------------------------------------------------------------------------------------------
Total Commercial and Commercial Real Estate 9,266,456 9,262,102
- ----------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect 3,113,148 3,166,161
Auto loans - Indirect 2,596,908 2,559,700
Home equity loans & lines of credit 2,910,612 2,788,083
Residential mortgage 1,229,390 904,277
Other loans 413,975 424,111
- ----------------------------------------------------------------------------------------------------------------------
Total Consumer 10,264,033 9,842,332
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 19,530,489 $ 19,104,434
- ----------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION - END OF PERIOD
- -------------------------------------------------------------------------
Commercial $ 5,591,280 $ 5,681,788
Commercial real estate 3,699,424 3,645,114
- ----------------------------------------------------------------------------------------------------------------------
Total Commercial and Commercial Real Estate 9,290,704 9,326,902
- ----------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect 3,120,317 3,126,101
Auto loans - Indirect 2,630,541 2,561,936
Home equity loans & lines of credit 2,990,726 2,830,814
Residential mortgage 1,210,991 1,075,141
Other loans 408,891 418,053
- ----------------------------------------------------------------------------------------------------------------------
Total Consumer 10,361,466 10,012,045
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 19,652,170 $ 19,338,947
- ----------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION - AVERAGE
- -------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 2,738,621 $ 2,737,978
Interest bearing 4,920,120 4,362,050
Savings deposits 2,807,874 2,829,922
Other domestic time deposits 4,218,104 4,097,383
- ----------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (2) 14,684,719 14,027,333
- ----------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 852,407 958,812
Brokered time deposits and negotiable CDs 649,340 301,612
Foreign time deposits 296,428 267,512
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 16,482,894 $ 15,555,269
- ----------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION - END OF PERIOD
- -------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 2,769,936 $ 2,857,233
Interest bearing 5,105,196 4,747,283
Savings deposits 2,839,115 2,895,445
Other domestic time deposits 4,238,688 4,179,814
- ----------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (2) 14,952,935 14,679,775
- ----------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 765,163 895,427
Brokered time deposits and negotiable CDs 849,347 451,173
Foreign time deposits 293,655 240,410
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 16,861,100 $ 16,266,785
- ----------------------------------------------------------------------------------------------------------------------
2001
- ----------------------------------------------------------------------------------------------------------------------------------
(in thousands) Fourth Third Second
- ----------------------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION - AVERAGE
- -------------------------------------------------------------------------
Commercial $ 5,750,830 $ 5,945,639 $ 5,986,587
Commercial real estate 3,467,082 3,314,778 3,183,814
- ----------------------------------------------------------------------------------------------------------------------------------
Total Commercial and Commercial Real Estate 9,217,912 9,260,417 9,170,401
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect 3,229,203 3,242,864 3,221,612
Auto loans - Indirect 2,489,183 2,445,459 2,289,014
Home equity loans & lines of credit 2,753,141 2,709,125 2,663,676
Residential mortgage 671,967 619,578 696,160
Other loans 445,740 458,999 485,096
- ----------------------------------------------------------------------------------------------------------------------------------
Total Consumer 9,589,234 9,476,025 9,355,558
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 18,807,146 $ 18,736,442 $ 18,525,959
- ----------------------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION - END OF PERIOD
- -------------------------------------------------------------------------
Commercial $ 5,685,719 $ 5,912,371 $ 6,012,647
Commercial real estate 3,555,354 3,432,502 3,227,577
- ----------------------------------------------------------------------------------------------------------------------------------
Total Commercial and Commercial Real Estate 9,241,073 9,344,873 9,240,224
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer
Auto leases - Indirect 3,207,514 3,221,300 3,194,592
Auto loans - Indirect 2,501,054 2,509,504 2,300,212
Home equity loans & lines of credit 2,754,612 2,742,016 2,689,868
Residential mortgage 736,802 652,373 623,492
Other loans 437,293 475,552 500,194
- ----------------------------------------------------------------------------------------------------------------------------------
Total Consumer 9,637,275 9,600,745 9,308,358
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LOANS $ 18,878,348 $ 18,945,618 $ 18,548,582
- ----------------------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION - AVERAGE
- -------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 2,824,035 $ 2,761,240 $ 2,667,334
Interest bearing 4,013,874 3,687,335 3,455,963
Savings deposits 2,862,649 2,922,867 2,976,864
Other domestic time deposits 4,123,478 4,126,677 3,942,256
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (2) 13,824,036 13,498,119 13,042,417
- ----------------------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 1,007,978 1,053,133 1,077,601
Brokered time deposits and negotiable CDs 108,591 119,646 118,321
Foreign time deposits 223,675 249,753 371,276
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 15,164,280 $ 14,920,651 $ 14,609,615
- ----------------------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION - END OF PERIOD
- -------------------------------------------------------------------------
Demand deposits
Non-interest bearing $ 2,997,449 $ 2,889,319 $ 2,660,607
Interest bearing 4,197,893 3,841,646 3,521,499
Savings deposits 2,943,508 2,929,922 3,061,890
Other domestic time deposits 4,077,510 4,214,865 3,833,761
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE DEPOSITS (2) 14,216,360 13,875,752 13,077,757
- ----------------------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 944,361 1,114,421 955,616
Brokered time deposits and negotiable CDs 137,915 128,878 100,233
Foreign time deposits 220,749 359,452 404,069
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS $ 15,519,385 $ 15,478,503 $ 14,537,675
- ----------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis.
(2) Core deposits include non-interest bearing and interest bearing demand
deposits, savings deposits, CDs under $100,000, and IRA deposits.
Page 12
HUNTINGTON BANCSHARES INCORPORATED
- -------------------------------------------------------------------------------
CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS
OPERATING BASIS (1)
(in millions)
AVERAGE BALANCES
-------------------------------------------------------------------
2002 2001
- --------------------------------------------------------------------------------------- --------------------------------------
Fully Tax Equivalent Basis (2) SECOND First Fourth Third Second
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest bearing deposits in banks $ 29 $ 34 $ 14 $ 5 $ 5
Trading account securities 6 5 8 8 39
Federal funds sold and securities purchased
under resale agreements 68 62 86 86 93
Mortgages held for sale 174 381 433 344 420
Securities:
Taxable 2,735 2,713 2,720 2,896 3,368
Tax exempt 96 102 108 140 201
- -------------------------------------------------------------------------------------------------------------------------------
Total Securities 2,831 2,815 2,828 3,036 3,569
- -------------------------------------------------------------------------------------------------------------------------------
Loans:
Commercial 5,614 5,661 5,751 5,946 5,986
Real Estate
Construction 1,420 1,405 1,386 1,281 1,190
Commercial 2,233 2,196 2,081 2,034 1,994
Consumer
Auto leases - Indirect 3,113 3,166 3,229 3,243 3,222
Auto loans - Indirect 2,597 2,560 2,489 2,445 2,289
Home equity loans & lines of credit 2,911 2,788 2,753 2,709 2,664
Residential mortgage 1,229 904 672 619 696
Other loans 413 424 446 459 485
- -------------------------------------------------------------------------------------------------------------------------------
Total Consumer 10,263 9,842 9,589 9,475 9,356
- -------------------------------------------------------------------------------------------------------------------------------
Total Loans 19,530 19,104 18,807 18,736 18,526
- -------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 400 403 371 315 279
- -------------------------------------------------------------------------------------------------------------------------------
Net loans 19,130 18,701 18,436 18,421 18,247
- -------------------------------------------------------------------------------------------------------------------------------
Total earning assets 22,638 22,401 22,176 22,215 22,652
- -------------------------------------------------------------------------------------------------------------------------------
Cash and due from banks 722 774 798 831 830
All other assets 1,997 2,008 2,010 2,002 1,990
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 24,957 $24,780 $ 24,613 $24,733 $ 25,193
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits $ 2,739 $ 2,738 $ 2,824 $ 2,761 $ 2,667
Interest bearing demand deposits 4,920 4,362 4,014 3,687 3,456
Savings deposits 2,808 2,830 2,863 2,923 2,977
Other domestic time deposits 4,218 4,097 4,123 4,127 3,942
- -------------------------------------------------------------------------------------------------------------------------------
Total core deposits 14,685 14,027 13,824 13,498 13,042
- -------------------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 852 959 1,008 1,053 1,078
Brokered time deposits and negotiable CDs 649 302 109 120 118
Foreign time deposits 296 268 224 250 371
- -------------------------------------------------------------------------------------------------------------------------------
Total deposits 16,482 15,556 15,165 14,921 14,609
- -------------------------------------------------------------------------------------------------------------------------------
Short-term borrowings 1,886 1,925 1,745 1,998 2,628
Medium-term notes 1,910 2,645 3,272 3,443 3,476
Subordinated notes and other long-term debt,
including preferred capital securities 1,229 1,232 1,183 1,184 1,180
- -------------------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities 18,768 18,620 18,541 18,785 19,226
- -------------------------------------------------------------------------------------------------------------------------------
All other liabilities 1,107 1,052 887 812 897
Shareholders' equity 2,343 2,370 2,361 2,375 2,403
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 24,957 $24,780 $ 24,613 $24,733 $ 25,193
- -------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis.
(2) Fully tax equivalent yields are calculated assuming a 35% tax rate.
Page 13
HUNTINGTON BANCSHARES INCORPORATED
- -------------------------------------------------------------------------------
CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS
OPERATING BASIS (1)
(IN MILLIONS)
AVERAGE RATES (4)
-------------------------------------------------------------------
2002 2001
- --------------------------------------------------------------------------------------- --------------------------------------
Fully Tax Equivalent Basis (2) SECOND First Fourth Third Second
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest bearing deposits in banks 2.44% 2.02% 2.09% 3.75% 5.09%
Trading account securities 5.37 2.79 3.59 3.83 5.15
Federal funds sold and securities purchased
under resale agreements 1.51 1.43 2.18 3.20 4.21
Mortgages held for sale 7.07 6.51 6.64 7.18 6.96
Securities:
Taxable 6.33 6.43 6.62 6.71 6.26
Tax exempt 7.69 7.76 7.81 7.38 7.26
- -------------------------------------------------------------------------------------------------------------------------------
Total Securities 6.37 6.48 6.66 6.75 6.32
- -------------------------------------------------------------------------------------------------------------------------------
Loans:
Commercial 5.50 5.37 5.81 6.93 7.41
Real Estate
Construction 4.81 4.91 5.49 6.60 7.44
Commercial 6.36 6.66 6.88 7.58 7.95
Consumer
Auto leases - Indirect 6.42 6.62 6.58 6.67 6.71
Auto loans - Indirect 7.98 7.98 8.29 8.61 8.86
Home equity loans & lines of credit 5.72 6.09 7.05 7.73 8.47
Residential mortgage 6.23 6.60 7.10 7.55 7.70
Other loans 7.47 7.64 8.26 8.04 8.14
- -------------------------------------------------------------------------------------------------------------------------------
Total Consumer 6.64 6.86 7.27 7.59 7.88
- -------------------------------------------------------------------------------------------------------------------------------
Total Loans 6.15 6.25 6.65 7.32 7.71
- -------------------------------------------------------------------------------------------------------------------------------
Loan fees 0.55 0.49 0.53 0.56 0.60
- -------------------------------------------------------------------------------------------------------------------------------
Total Loans with fees (3) 6.70 6.74 7.18 7.88 8.31
- -------------------------------------------------------------------------------------------------------------------------------
Total earning assets 6.64% 6.68% 7.08% 7.69% 7.94%
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits
Interest bearing demand deposits 1.84% 1.79% 1.93% 2.73% 2.87%
Savings deposits 1.83 1.85 2.08 3.04 3.46
Other domestic time deposits 4.61 4.99 5.18 5.52 5.83
- -------------------------------------------------------------------------------------------------------------------------------
Total core deposits 2.29 2.39 2.54 3.09 3.31
- -------------------------------------------------------------------------------------------------------------------------------
Domestic time deposits of $100,000 or more 2.82 2.91 4.66 4.70 5.23
Brokered time deposits and negotiable CDs 2.48 2.48 3.55 4.42 5.57
Foreign time deposits 1.38 1.92 1.99 3.40 4.11
- -------------------------------------------------------------------------------------------------------------------------------
Total deposits 2.31 2.41 2.68 3.22 3.49
- -------------------------------------------------------------------------------------------------------------------------------
Short-term borrowings 1.97 2.39 2.73 3.75 4.40
Medium-term notes 3.21 3.00 3.45 4.82 5.51
Subordinated notes and other long-term debt,
including preferred capital securities 4.05 4.14 4.96 5.19 5.96
- -------------------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities 2.82% 2.96% 3.37% 4.17% 4.62%
- -------------------------------------------------------------------------------------------------------------------------------
Net interest rate spread 3.82% 3.72% 3.71% 3.52% 3.32%
Impact of non-interest bearing funds on margin 0.48 0.49 0.55 0.65 0.71
- -------------------------------------------------------------------------------------------------------------------------------
NET INTEREST MARGIN 4.30% 4.21% 4.26% 4.17% 4.03%
- -------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis.
(2) Fully tax equivalent yields are calculated assuming a 35% tax rate.
(3) Total loans with fees rate includes loan fees, whereas individual loan
components above are shown exclusive of fees.
(4) Loan and deposit average rates include impact of applicable derivatives.
Page 14
HUNTINGTON BANCSHARES INCORPORATED
SELECTED QUARTERLY INCOME STATEMENT DATA
OPERATING BASIS (1)
2002
- --------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) SECOND First
- ------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME $ 241,859 $233,101
Provision for loan losses 53,892 50,595
- ------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 187,967 182,506
- ------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 35,354 34,282
Brokerage and insurance income 14,967 14,587
Trust services 16,247 15,096
Mortgage banking 10,725 19,644
Bank Owned Life Insurance income 11,443 11,676
Other service charges and fees 10,529 9,118
Other 15,039 10,591
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES GAINS 114,304 114,994
Securities gains 966 457
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME 115,270 115,451
- ------------------------------------------------------------------------------------------------------------------
Personnel costs 103,589 104,320
Outside data processing and other services 16,592 17,097
Equipment 16,608 15,582
Net occupancy 14,642 14,771
Marketing 7,219 7,174
Professional services 6,265 5,242
Telecommunications 5,302 5,282
Printing and supplies 3,671 3,519
Franchise and other taxes 2,313 2,326
Amortization of intangible assets 203 251
Other 13,781 13,487
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 190,185 189,051
- ------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 113,052 108,906
Income taxes 31,344 29,393
- ------------------------------------------------------------------------------------------------------------------
NET INCOME $ 81,708 $ 79,513
- ------------------------------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE - DILUTED $0.33 $0.32
RETURN ON
Average total assets 1.31% 1.30%
Average total shareholders' equity 14.0% 13.6%
Net interest margin (2) 4.30% 4.21%
Efficiency ratio 53.2% 54.1%
Effective tax rate 27.7% 27.0%
REVENUE - FULLY TAXABLE EQUIVALENT (FTE)
Net Interest Income $ 241,859 $233,101
Tax Equivalent Adjustment (2) 1,071 1,169
- ------------------------------------------------------------------------------------------------------------------
Net Interest Income 242,930 234,270
Non-Interest Income 115,270 115,451
- ------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE $ 358,200 $349,721
- ------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE EXCLUDING SECURITIES GAINS $ 357,234 $349,264
- ------------------------------------------------------------------------------------------------------------------
2001
- ------------------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) Fourth Third Second
- ------------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME $235,546 $230,462 $ 225,883
Provision for loan losses 54,281 46,027 41,937
- ------------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 181,265 184,435 183,946
- ------------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 35,220 33,593 32,650
Brokerage and insurance income 15,066 13,943 13,185
Trust services 14,679 14,816 14,431
Mortgage banking 15,049 13,859 17,672
Bank Owned Life Insurance income 9,560 9,560 9,561
Other service charges and fees 9,582 9,547 9,383
Other 15,135 14,722 13,979
- ------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES GAINS 114,291 110,040 110,861
Securities gains 89 1,059 2,747
- ------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST INCOME 114,380 111,099 113,608
- ------------------------------------------------------------------------------------------------------------------------
Personnel costs 100,076 101,866 103,707
Outside data processing and other services 15,414 14,650 15,100
Equipment 18,117 17,580 17,363
Net occupancy 15,251 14,481 13,755
Marketing 5,305 5,717 6,807
Professional services 6,069 5,754 6,481
Telecommunications 5,647 5,728 5,964
Printing and supplies 3,511 3,693 3,688
Franchise and other taxes 2,885 2,439 2,229
Amortization of intangible assets 2,555 2,569 2,890
Other 12,599 12,577 14,459
- ------------------------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 187,429 187,054 192,443
- ------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 108,216 108,480 105,111
Income taxes 28,631 27,587 29,509
- ------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 79,585 $ 80,893 $ 75,602
- ------------------------------------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE - DILUTED $0.32 $0.32 $0.30
RETURN ON
Average total assets 1.28% 1.30% 1.20%
Average total shareholders' equity 13.4% 13.5% 12.6%
Net interest margin (2) 4.26% 4.17% 4.03%
Efficiency ratio 52.7% 54.0% 56.0%
Effective tax rate 26.5% 25.4% 28.1%
REVENUE - FULLY TAXABLE EQUIVALENT (FTE)
Net Interest Income $235,546 $230,462 $ 225,883
Tax Equivalent Adjustment (2) 1,292 1,442 1,616
- ------------------------------------------------------------------------------------------------------------------------
Net Interest Income 236,838 231,904 227,499
Non-Interest Income 114,380 111,099 113,608
- ------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE $351,218 $343,003 $ 341,107
- ------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUE EXCLUDING SECURITIES GAINS $351,129 $341,944 $ 338,360
- ------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis.
(2) Calculated assuming a 35% tax rate.
Page 15
HUNTINGTON BANCSHARES INCORPORATED
LOAN LOSS RESERVE AND NET CHARGE-OFF ANALYSIS
OPERATING BASIS (1)
2002
- ----------------------------------------------------------------------------------------------------------------
(in thousands) SECOND First
- ------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $386,053 $386,956
Loan losses (57,482) (60,191)
Recoveries of loans previously charged off 12,582 10,915
- ------------------------------------------------------------------------------------------------------------------
Net loan losses (44,900) (49,276)
- ------------------------------------------------------------------------------------------------------------------
Allowance of assets sold --- ---
Allowance of securitized loans (2,034) (2,222)
Provision for loan losses 53,892 50,595
- ------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $393,011 $386,053
- ------------------------------------------------------------------------------------------------------------------
Allowance for loan losses as a% of total loans 2.00% 2.00%
Allowance for loan losses as a% of non-performing loans 185.3% 175.9%
Allowance for loan losses and OREO as a% of
non-performing assets 175.7% 170.9%
NET CHARGE-OFFS BY LOAN TYPE
Commercial $ 21,528 $ 16,151
Commercial real estate 2,037 3,723
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Total commercial and commercial real estate 23,565 19,874
Consumer
Auto leases 8,401 12,809
Auto loans 7,356 11,430
Home equity loans & lines of credit 3,096 2,814
Residential mortgage 555 104
Other loans 1,927 2,245
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Total consumer 21,335 29,402
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TOTAL NET CHARGE-OFFS $ 44,900 $ 49,276
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NET CHARGE-OFFS - ANNUALIZED PERCENTAGES
Commercial 1.54% 1.16%
Commercial real estate 0.22 0.42
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Total commercial and commercial real estate 1.02 0.87
Consumer
Auto leases 1.08 1.64
Auto loans 1.14 1.81
Home equity loans & lines of credit 0.43 0.41
Residential mortgage 0.18 0.05
Other loans 1.87 2.15
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Total consumer 0.83 1.21
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TOTAL NET CHARGE-OFFS 0.92% 1.05%
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NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING
EXITED BUSINESSES 0.88% 0.97%
- ------------------------------------------------------------------------------------------------------------------
2001
- -----------------------------------------------------------------------------------------------------------------------------------
(in thousands) Fourth Third Second
- -----------------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $334,827 $326,495 $276,116
Loan losses (60,110) (45,063) (71,104)
Recoveries of loans previously charged off 9,961 8,981 9,392
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Net loan losses (50,149) (36,082) (61,712)
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Allowance of assets sold --- --- ---
Allowance of securitized loans (2,003) (1,613) (1,564)
Provision for loan losses 104,281(3) 46,027 113,655(2)
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ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $386,956 $334,827 $326,495
- -----------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses as a% of total loans 2.05% 1.77% 1.76%
Allowance for loan losses as a% of non-performing loans 181.4% 173.4% 222.1%
Allowance for loan losses and OREO as a% of
non-performing assets 175.8% 165.9% 207.1%
NET CHARGE-OFFS BY LOAN TYPE
Commercial $ 19,475 $ 9,422 $ 11,507
Commercial real estate 867 3 1,704
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Total commercial and commercial real estate 20,342 9,425 13,211
Consumer
Auto leases 12,634 10,395 17,535
Auto loans 11,397 10,133 23,437
Home equity loans & lines of credit 3,313 3,772 2,311
Residential mortgage 370 93 241
Other loans 2,093 2,264 4,977
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Total consumer 29,807 26,657 48,501
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TOTAL NET CHARGE-OFFS $ 50,149 $ 36,082 $ 61,712
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NET CHARGE-OFFS - ANNUALIZED PERCENTAGES
Commercial 1.34% 0.63% 0.77%
Commercial real estate 0.10 0.00 0.21
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Total commercial and commercial real estate 0.88 0.40 0.58
Consumer
Auto leases 1.55 1.27 2.17
Auto loans 1.82 1.64 4.11
Home equity loans & lines of credit 0.48 0.55 0.35
Residential mortgage 0.22 0.06 0.14
Other loans 1.86 1.96 4.12
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Total consumer 1.23 1.12 2.08
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TOTAL NET CHARGE-OFFS 1.06% 0.76% 1.33%
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NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING
EXITED BUSINESSES 0.99% 0.61% 0.74%
- ----------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis.
(2) Includes provision of $71.7 million recorded to recognize the estimated
increased losses resulting from Huntington's decision to exit sub-prime
automobile lending and truck and equipment leasing, to charge-off of
delinquent consumer and small business loans more than 120 days past due,
to increase reserves for consumer bankruptcies, and to increase commercial
loan reserves.
(3) Includes provision of $50.0 million recorded to increase the loan loss
reserve in light of the higher charge-offs and non-performing assets
experienced in the second half of 2001.
Page 16
HUNTINGTON BANCSHARES INCORPORATED
NON-PERFORMING ASSETS AND PAST DUE LOANS
OPERATING BASIS (1)
2002
- --------------------------------------------------------------------------------------------------
(in thousands) SECOND First
- ----------------------------------------------------------------------------------------------------
Non-accrual loans:
Commercial $ 156,252 $ 162,959
Commercial real estate 45,795 43,295
Residential mortgage 8,776 11,896
- ----------------------------------------------------------------------------------------------------
Total Nonaccrual Loans 210,823 218,150
Renegotiated loans 1,268 1,268
- ----------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING LOANS 212,091 219,418
Other real estate, net 11,146 6,112
- ----------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING ASSETS $ 223,237 $ 225,530
- ----------------------------------------------------------------------------------------------------
Non-performing loans as a % of total loans 1.08% 1.13%
Non-performing assets as a % of total loans
and other real estate 1.14% 1.17%
ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 58,449 $ 61,746
2001
- ------------------------------------------------------------------------------------------------------------------
(in thousands) Fourth Third Second
- ------------------------------------------------------------------------------------------------------------------
Non-accrual loans:
Commercial $ 155,720 $ 143,132 $ 111,363
Commercial real estate 45,180 37,772 23,418
Residential mortgage 11,086 10,923 10,916
- ------------------------------------------------------------------------------------------------------------------
Total Nonaccrual Loans 211,986 191,827 145,697
Renegotiated loans 1,276 1,286 1,290
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING LOANS 213,262 193,113 146,987
Other real estate, net 6,384 8,050 9,913
- ------------------------------------------------------------------------------------------------------------------
TOTAL NON-PERFORMING ASSETS $ 219,646 $ 201,163 $ 156,900
- ------------------------------------------------------------------------------------------------------------------
Non-performing loans as a % of total loans 1.13% 1.02% 0.79%
Non-performing assets as a % of total loans
and other real estate 1.16% 1.06% 0.85%
ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 76,295 $ 79,339 $ 54,228
(1) See page 10 for definition of Operating Basis.
Page 17