HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - QUARTERLY FINANCIAL SUPPLEMENT

Attached files

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EX-99.1 - NEWS RELEASE - HUNTINGTON BANCSHARES INC /MD/	d612230dex991.htm
8-K - CURRENT REPORT - HUNTINGTON BANCSHARES INC /MD/	d612230d8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

September 2013

Table of Contents


Quarterly Key Statistics			1

Year To Date Key Statistics			2

Key Statistics Footnotes			3

Consolidated Balance Sheets			4

Loans and Leases Composition			5

Deposits Composition			6

Consolidated Quarterly Average Balance Sheets			7

Consolidated Quarterly Net Interest Margin - Interest Income / Expense			8

Consolidated Quarterly Net Interest Margin - Yield			9

Selected Quarterly Income Statement Data			10

Quarterly Mortgage Banking Income			11

Quarterly Credit Reserves Analysis			12

Quarterly Net Charge-Off Analysis			13

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			14

Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			15

Quarterly Common Stock Summary, Capital, and Other Data			16

Consolidated Year To Date Average Balance Sheets			17

Consolidated Year To Date Net Interest Margin - Interest Income / Expense			18

Consolidated Year To Date Net Interest Margin - Yield			19

Selected Year To Date Income Statement Data			20

Year To Date Mortgage Banking Income			21

Year To Date Credit Reserves Analysis			22

Year To Date Net Charge-Off Analysis			23

Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			24

Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans			25

Notes:

The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Non-Regulatory Capital Ratios

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

•

Tangible common equity to tangible assets,

•

Tier 1 common equity to risk-weighted assets using Basel I and Basel III definitions, and

•

Tangible common equity to risk-weighted assets using Basel I definition.

These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.

Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure. Basel III Tier 1 common capital ratio estimates are based on management’s current interpretation, expectations, and understanding of the final U.S. Basel III rules adopted by the Federal Reserve Board and released on July 2, 2012.

Huntington Bancshares Incorporated

Quarterly Key Statistics⁽¹⁾

(Unaudited)


	2013						2012			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Third			Second			Third			2Q13			3Q12
Net interest income	$	424,852		$	424,937		$	430,298			—	%		(1	)%
Provision for credit losses		11,400			24,722			37,004			(54	)		(69	)
Noninterest income		250,503			248,655			261,067			1			(4	)
Noninterest expense		423,336			445,865			458,303			(5	)		(8	)

Income before income taxes		240,619			203,005			196,058			19			23
Provision for income taxes		62,132			52,354			28,291			19			120

Net income	$	178,487		$	150,651		$	167,767			18	%		6	%

Dividends on preferred shares		7,967			7,967			7,983			—			—

Net income applicable to common shares	$	170,520		$	142,684		$	159,784			20	%		7	%

Net income per common share—diluted	$	0.20		$	0.17		$	0.19			18	%		5	%
Cash dividends declared per common share		0.05			0.05			0.04			—			25
Book value per common share at end of period		6.72			6.51			6.34			3			6
Tangible book value per common share at end of period		6.10			5.88			5.71			4			7
Average common shares—basic		830,398			834,730			857,871			(1	)		(3	)
Average common shares—diluted		841,015			843,840			863,588			—			(3	)
Return on average assets		1.27	%		1.08	%		1.19	%
Return on average common shareholders’ equity		12.3			10.4			11.9
Return on average tangible common shareholders’ equity⁽²⁾		14.1			12.0			13.9
Net interest margin⁽³⁾		3.34			3.38			3.38
Efficiency ratio⁽⁴⁾		60.6			64.0			64.5
Noninterest Income/Total Revenue		36.7			36.6			37.5
Effective tax rate		25.8			25.8			14.4
Average loans and leases	$	41,994,204		$	41,280,065		$	40,119,938			2			5
Average loans and leases—linked quarter annualized growth rate		6.9	%		4.1	%		(10.3	)%
Average earning assets	$	51,247,215		$	51,156,168		$	51,330,241			—			—
Average total assets		55,914,791			55,889,271			56,138,175			—			—
Average core deposits⁽⁵⁾		43,773,153			43,768,948			43,763,695			—			—
Average core deposits—linked quarter annualized growth rate		—	%		1.4	%		9.2	%
Average shareholders’ equity	$	5,879,479		$	5,888,206		$	5,730,951			—			3
Total assets at end of period		56,648,251			56,113,687			56,443,000			1			—
Total shareholders’ equity at end of period		5,961,579			5,783,515			5,807,604			3			3
Net charge-offs (NCOs)		55,742			34,790			105,095			60			(47	)
NCOs as a % of average loans and leases		0.53	%		0.34	%		1.05	%
Nonaccrual loans and leases (NALs)	$	333,106		$	363,546		$	445,046			(8	)		(25	)
NAL ratio		0.78	%		0.87	%		1.11	%
Nonperforming assets (NPAs)⁽⁶⁾	$	374,260		$	396,699		$	509,728			(6	)		(27	)
NPA ratio⁽⁶⁾		0.88	%		0.95	%		1.26	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		1.57			1.76			1.96
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		1.72			1.86			2.09
ACL as a % of NALs		220			214			189
ACL as a % of NPAs		196			196			165
Tier 1 leverage ratio⁽⁷⁾		10.85			10.64			10.29
Tier 1 common risk-based capital ratio⁽⁷⁾		10.85			10.71			10.28
Tier 1 risk-based capital ratio⁽⁷⁾		12.36			12.24			11.88
Total risk-based capital ratio⁽⁷⁾		14.67			14.57			14.36
Tangible common equity / tangible assets ratio⁽⁸⁾		9.02			8.78			8.74

See Notes to the Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year To Date Key Statistics⁽¹⁾

(Unaudited)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except per share amounts)	2013			2012			Amount			Percent
Net interest income	$	1,273,959		$	1,276,469		$	(2,510	)		—	%
Provision for credit losses		65,714			107,930			(42,216	)		(39	)
Noninterest income		751,367			800,206			(48,839	)		(6	)
Noninterest expense		1,311,994			1,365,248			(53,254	)		(4	)

Income before income taxes		647,618			603,497			44,121			7
Provision for income taxes		166,700			129,754			36,946			28

Net Income	$	480,918		$	473,743		$	7,175			2	%

Dividends on preferred shares		23,904			24,016			(112	)		—

Net income applicable to common shares	$	457,014		$	449,727		$	7,287			2	%

Net income per common share—diluted	$	0.54		$	0.52		$	0			4	%
Cash dividends declared per common share		0.14			0.12			0.02			17
Average common shares—basic		835,410			861,543			(26,133	)		(3	)
Average common shares—diluted		844,521			866,768			(22,247	)		(3	)
Return on average assets		1.15	%		1.14	%
Return on average common shareholders’ equity		11.1			11.5
Return on average tangible common shareholders’ equity⁽²⁾		12.9			13.5
Net interest margin⁽³⁾		3.38			3.40
Efficiency ratio⁽⁴⁾		62.6			63.7
Noninterest Income/Total Revenue		36.8			38.3
Effective tax rate		25.7			21.5
Average loans and leases	$	41,383,537		$	40,147,614		$	1,235,923			3
Average earning assets		51,122,168			50,717,991			404,177			1
Average total assets		55,844,746			55,546,026			298,720			1
Average core deposits⁽⁵⁾		43,719,823			42,647,918			1,071,905			3
Average shareholders’ equity		5,867,457			5,614,026			253,431			5
Net charge-offs (NCOs)		142,219			272,332			(130,113	)		(48	)%
NCOs as a % of average loans and leases		0.46	%		0.90	%

See Notes to the Annual and Quarterly Key Statistics.

Key Statistics Footnotes

⁽¹⁾	Comparisons for all presented periods are impacted by a number of factors. Refer to Significant Items.

⁽²⁾

Net income excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽³⁾	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁴⁾	Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

⁽⁵⁾	Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.

⁽⁶⁾	NPAs include other real estate owned.

⁽⁷⁾	September 30, 2013, figures are estimated.

⁽⁸⁾	Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

Huntington Bancshares Incorporated

Consolidated Balance Sheets


	2013			2012						Percent Changes vs.
	September 30,			December 31,			September 30,			4Q12			3Q12
(dollar amounts in thousands, except number of shares)	*(Unaudited)*						(Unaudited)
Assets
Cash and due from banks	$	1,107,658		$	1,262,806		$	797,601			(12	)%		39	%
Interest-bearing deposits in banks		63,100			70,921			65,635			(11	)		(4	)
Trading account securities		74,167			91,205			91,970			(19	)		(19	)
Loans held for sale		345,621			764,309			1,852,919			(55	)		(81	)
Available-for-sale and other securities		6,446,681			7,566,175			7,778,568			(15	)		(17	)
Held-to-maturity securities		2,236,121			1,743,876			1,582,150			28			41
Loans and leases⁽¹⁾		42,555,833			40,728,425			40,260,417			4			6
Allowance for loan and lease losses		(666,030	)		(769,075	)		(789,142	)		(13	)		(16	)

Net loans and leases		41,889,803			39,959,350			39,471,275			5			6

Bank owned life insurance		1,633,247			1,596,056			1,586,902			2			3
Premises and equipment		639,632			617,257			590,750			4			8
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		103,512			132,157			143,804			(22	)		(28	)
Accrued income and other assets		1,664,441			1,904,805			2,037,158			(13	)		(18	)

Total assets	$	56,648,251		$	56,153,185		$	56,443,000			1	%		—	%

Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	46,564,046		$	46,252,683		$	46,741,286			1	%		—	%
Short-term borrowings		660,932			589,814			1,259,771			12			(48	)
Federal Home Loan Bank advances		333,352			1,008,959			9,406			(67	)		3,444
Other long-term debt		904,668			158,784			185,613			470			387
Subordinated notes		1,111,598			1,197,091			1,306,273			(7	)		(15	)
Accrued expenses and other liabilities		1,112,076			1,155,643			1,133,047			(4	)		(2	)

Total liabilities		50,686,672			50,362,974			50,635,396			1			—

Shareholder’s equity
Preferred stock—authorized 6,617,808 shares-Series A, 8.50% fixed rate, non-cumulative perpetual convertible preferred stock, par value of $0.01, and liquidation value per share of $1,000		362,507			362,507			362,507			—			—
Series B, floating rate, non-voting, non-cumulative perpetual preferred stock, par value of $0.01, and liquidation value per share of $1,000		23,785			23,785			23,785			—			—
Common stock—Par value of $0.01		8,315			8,441			8,567			(1	)		(3	)
Capital surplus		7,387,033			7,475,149			7,551,509			(1	)		(2	)
Less treasury shares, at cost		(10,893	)		(10,921	)		(10,817	)		—			1
Accumulated other comprehensive loss		(230,767	)		(150,817	)		(84,542	)		53			173
Retained earnings		(1,578,401	)		(1,917,933	)		(2,043,405	)		(18	)		(23	)

Total shareholders’ equity		5,961,579			5,790,211			5,807,604			3			3

Total liabilities and shareholders’ equity	$	56,648,251		$	56,153,185		$	56,443,000			1	%		—	%

Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		831,516,546			844,105,349			856,748,584
Common shares outstanding		830,144,646			842,812,709			855,485,376
Treasury shares outstanding		1,371,900			1,292,640			1,263,208
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		398,007			398,007			398,007

⁽¹⁾	See page 5 for detail of loans and leases.

⁽²⁾	See page 6 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition


	2013													2012
	September 30,				June 30,					March 31,				December 31,				September 30,
(dollar amounts in millions)	*(Unaudited)*				(Unaudited)					(Unaudited)								(Unaudited)
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	17,335	41	%	$	17,113		41	%	$	17,267	42	%	$	16,971	42	%	$	16,478	41	%
Commercial real estate:
Construction		544	1			607		1			574	1			648	2			541	1
Commercial		4,328	10			4,286		10			4,485	11			4,751	12			4,956	12

Commercial real estate		4,872	11			4,893		11			5,059	12			5,399	14			5,497	13

Total commercial		22,207	52			22,006		52			22,326	54			22,370	56			21,975	54

Consumer:
Automobile		6,317	15			5,810		14			5,036	12			4,634	11			4,276	11
Home equity		8,347	20			8,369		20			8,474	21			8,335	20			8,381	21
Residential mortgage		5,307	12			5,168		12			5,051	12			4,970	12			5,192	13
Other consumer		378	1			387		2			397	1			419	1			436	1

Total consumer		20,349	48			19,734		48			18,958	46			18,358	44			18,285	46

Total loans and leases	$	42,556	100	%	$	41,740		100	%	$	41,284	100	%	$	40,728	100	%	$	40,260	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	12,673	30	%	$	12,642		30	%	$	12,749	31	%	$	12,644	31	%	$	12,656	31	%
Regional and Commercial Banking		11,397	27			11,119		27			11,166	27			10,679	26			10,463	26
AFCRE		12,484	29			12,119		29			11,526	28			11,396	28			11,019	27
WGH		5,961	14			5,868		14			5,767	14			5,887	15			6,053	16
Treasury / Other		41	—			(8	)	—			76	—			122	—			69	—

Total loans and leases	$	42,556	100	%	$	41,740		100	%	$	41,284	100	%	$	40,728	100	%	$	40,260	100	%


	2013													2012
	Third				Second					First				Fourth				Third
Average Balances by Business Segment:
Retail and Business Banking	$	12,633	30	%	$	12,688		31	%	$	12,693	31	%	$	12,677	31	%	$	12,703	32	%
Regional and Commercial Banking		11,150	27			11,058		27			10,987	27			10,390	26			10,427	26
AFCRE		12,239	29			11,683		28			11,454	28			11,221	28			10,949	27
WGH		5,923	14			5,837		14			5,711	14			6,054	15			5,993	15
Treasury / Other		49	—			14		—			19	—			55	—			48	—

Total loans and leases	$	41,994	100	%	$	41,280		100	%	$	40,864	100	%	$	40,397	100	%	$	40,120	100	%

⁽¹⁾	As defined by regulatory guidance, there were no commercial loans outstanding that would be considered a concentration of lending to a particular industry or group of industries.

Huntington Bancshares Incorporated

Deposits Composition


	2013												2012
	September 30,				June 30,				March 31,				December 31,				September 30,
(dollar amounts in millions)	*(Unaudited)*				(Unaudited)				(Unaudited)								(Unaudited)
Ending Balances by Type:
Demand deposits—noninterest-bearing	$	13,421	29	%	$	13,491	29	%	$	12,757	27	%	$	12,600	27	%	$	12,680	27	%
Demand deposits—interest-bearing		5,856	13			5,977	13			6,135	13			6,218	13			5,909	13
Money market deposits		16,212	34			15,131	33			15,165	32			14,691	32			14,926	32
Savings and other domestic deposits		4,946	11			5,054	11			5,174	11			5,002	11			4,949	11
Core certificates of deposit		4,108	9			4,353	9			5,170	11			5,516	12			5,817	12

Total core deposits		44,543	96			44,006	95			44,401	94			44,027	95			44,281	95
Other domestic deposits of $250,000 or more		268	1			283	1			355	1			354	1			352	1
Brokered deposits and negotiable CDs		1,366	3			1,695	4			1,807	4			1,594	3			1,795	4
Deposits in foreign offices		387	—			347	—			304	1			278	1			313	—

Total deposits	$	46,564	100	%	$	46,331	100	%	$	46,867	100	%	$	46,253	100	%	$	46,741	100	%

Total core deposits:
Commercial	$	19,526	44	%	$	18,922	43	%	$	18,502	42	%	$	18,358	42	%	$	19,207	43	%
Consumer		25,017	56			25,084	57			25,899	58			25,669	58			25,074	57

Total core deposits	$	44,543	100	%	$	44,006	100	%	$	44,401	100	%	$	44,027	100	%	$	44,281	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	28,200	61	%	$	28,209	61	%	$	28,719	61	%	$	28,367	61	%	$	28,220	60	%
Regional and Commercial Banking		6,191	13			5,639	12			5,627	12			5,863	13			6,205	13
AFCRE		1,084	2			1,021	2			970	2			995	2			922	2
WGH		9,935	22			10,069	22			10,015	22			9,508	21			9,816	22
Treasury / Other⁽¹⁾		1,154	2			1,393	3			1,536	3			1,520	3			1,578	3

Total deposits	$	46,564	100	%	$	46,331	100	%	$	46,867	100	%	$	46,253	100	%	$	46,741	100	%


	2013												2012
	Third				Second				First				Fourth				Third
Average Balances by Business Segment:
Retail and Business Banking	$	28,172	61	%	$	28,345	61	%	$	28,331	62	%	$	28,301	61	%	$	28,248	61	%
Regional and Commercial Banking		5,912	13			5,506	12			5,668	12			6,120	13			5,715	12
AFCRE		1,018	2			954	2			922	2			949	2			942	2
WGH		9,593	21			9,919	22			9,623	21			9,873	21			9,735	21
Treasury / Other⁽¹⁾		1,275	3			1,463	3			1,469	3			1,524	3			1,658	4

Total deposits	$	45,970	100	%	$	46,187	100	%	$	46,013	100	%	$	46,767	100	%	$	46,298	100	%

⁽¹⁾	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Average Balances
	2013									2012						Percent Changes vs.
(dollar amounts in millions)	Third			Second			First			Fourth			Third			2Q13			3Q12
Assets
Interest-bearing deposits in banks	$	54		$	84		$	72		$	73		$	82			(36	)%		(34	)%
Loans held for sale		379			678			709			840			1,829			(44	)		(79	)
Securities:
Available-for-sale and other securities:
Taxable		6,040			6,728			6,964			7,131			8,014			(10	)		(25	)
Tax-exempt		565			591			549			492			423			(4	)		34

Total available-for-sale and other securities		6,605			7,319			7,513			7,623			8,437			(10	)		(22	)
Trading account securities		76			84			85			97			66			(10	)		15
Held-to-maturity securities—taxable		2,139			1,711			1,717			1,652			796			25			169

Securities		8,820			9,114			9,315			9,372			9,299			(3	)		(5	)

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		17,032			17,033			16,954			16,507			16,343			—			4
Commercial real estate:
Construction		565			586			598			576			569			(4	)		(1	)
Commercial		4,345			4,429			4,694			4,897			5,153			(2	)		(16	)

Commercial real estate		4,910			5,015			5,292			5,473			5,722			(2	)		(14	)

Total commercial		21,942			22,048			22,246			21,980			22,065			—			(1	)

Consumer:
Automobile		6,075			5,283			4,833			4,486			4,065			15			49
Home equity		8,341			8,263			8,395			8,345			8,369			1			—
Residential mortgage		5,256			5,225			4,978			5,155			5,177			1			2
Other consumer		380			461			412			431			444			(18	)		(14	)

Total consumer		20,052			19,232			18,618			18,417			18,055			4			11

Total loans and leases		41,994			41,280			40,864			40,397			40,120			2			5
Allowance for loan and lease losses		(717	)		(746	)		(772	)		(783	)		(855	)		(4	)		(16	)

Net loans and leases		41,277			40,534			40,092			39,614			39,265			2			5

Total earning assets		51,247			51,156			50,960			50,682			51,330			—			—

Cash and due from banks		944			940			904			1,459			960			—			(2	)
Intangible assets		552			563			571			581			597			(2	)		(8	)
All other assets		3,889			3,976			4,065			4,115			4,106			(2	)		(5	)

Total assets	$	55,915		$	55,889		$	55,728		$	56,054		$	56,138			—	%		—	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	13,088		$	12,879		$	12,165		$	13,121		$	12,329			2	%		6	%
Demand deposits—interest-bearing		5,763			5,927			5,977			5,843			5,814			(3	)		(1	)

Total demand deposits		18,851			18,806			18,142			18,964			18,143			—			4
Money market deposits		15,739			15,069			15,045			14,749			14,515			4			8
Savings and other domestic deposits		5,007			5,115			5,083			4,960			4,975			(2	)		1
Core certificates of deposit		4,176			4,778			5,346			5,637			6,131			(13	)		(32	)

Total core deposits		43,773			43,768			43,616			44,310			43,764			—			—
Other domestic deposits of $250,000 or more		268			324			360			359			300			(17	)		(11	)
Brokered deposits and negotiable CDs		1,553			1,779			1,697			1,756			1,878			(13	)		(17	)
Deposits in foreign offices		376			316			340			342			356			19			6

Total deposits		45,970			46,187			46,013			46,767			46,298			—			(1	)
Short-term borrowings		710			701			762			1,012			1,329			1			(47	)
Federal Home Loan Bank advances		549			757			686			42			107			(27	)		413
Subordinated notes and other long-term debt		1,753			1,292			1,348			1,374			1,638			36			7

Total interest-bearing liabilities		35,894			36,058			36,644			36,074			37,043			—			(3	)

All other liabilities		1,054			1,064			1,085			1,017			1,035			(1	)		2
Shareholders’ equity		5,879			5,888			5,834			5,842			5,731			—			3

Total liabilities and shareholders’ equity	$	55,915		$	55,889		$	55,728		$	56,054		$	56,138			—	%		—	%

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin—Interest Income / Expense (1)

(Unaudited)


	Interest Income / Expense
	2013						2012
(dollar amounts in thousands)	Third		Second		First		Fourth		Third
Assets
Interest-bearing deposits in banks	$	9	$	57	$	29	$	51	$	42
Loans held for sale		3,699		5,739		5,702		6,675		14,548
Securities:
Available-for-sale and other securities:
Taxable		35,280		38,538		40,185		41,335		45,936
Tax-exempt		5,700		5,829		5,438		4,968		4,383

Total available-for-sale and other securities		40,980		44,367		45,623		46,303		50,319
Trading account securities		43		126		106		245		178
Held-to-maturity securities—taxable		12,220		9,778		9,838		9,244		5,591

Total securities		53,243		54,272		55,567		55,792		56,088

Loans and leases:
Commercial:
Commercial and industrial		160,285		161,543		162,396		163,644		162,998
Commercial real estate:
Construction		5,650		5,829		6,045		6,075		5,583
Commercial		45,525		46,214		46,978		52,543		50,704

Commercial real estate		51,175		52,043		53,023		58,618		56,287

Total commercial		211,460		213,586		215,419		222,262		219,285

Consumer:
Automobile		58,216		52,159		51,013		50,930		49,718
Home equity		86,131		85,796		86,991		88,541		89,388
Residential mortgage		50,111		49,912		49,353		52,440		51,981
Other consumer		6,677		7,650		7,169		7,775		7,991

Total consumer		201,135		195,517		194,526		199,686		199,078

Total loans and leases		412,595		409,103		409,945		421,948		418,363

Total earning assets	$	469,546	$	469,170	$	471,243	$	484,466	$	489,041

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits—interest-bearing		636		617		642		734		1,013

Total demand deposits		636		617		642		734		1,013
Money market deposits		10,211		8,886		8,438		9,843		12,025
Savings and other domestic deposits		3,134		3,416		3,818		4,150		4,576
Core certificates of deposit		11,094		13,410		15,710		17,144		19,237

Total core deposits		25,075		26,329		28,608		31,871		36,851
Other domestic deposits of $250,000 or more		300		406		465		553		511
Brokered deposits and negotiable CDs		2,145		2,746		2,823		3,141		3,356
Deposits in foreign offices		136		110		140		152		164

Total deposits		27,656		29,591		32,036		35,717		40,882
Short-term borrowings		158		179		234		363		544
Federal Home Loan Bank advances		197		272		301		129		135
Subordinated notes and other long-term debt		10,049		7,603		8,578		8,731		11,928

Total interest bearing liabilities		38,060		37,645		41,149		44,940		53,489

Net interest income	$	431,486	$	431,525	$	430,094	$	439,526	$	435,552

⁽¹⁾	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 10 for the FTE adjustment.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin—Yield

(Unaudited)


	Average Rates (2)
	2013									2012
Fully-taxable equivalent basis⁽¹⁾	Third			Second			First			Fourth			Third
Assets
Interest-bearing deposits in banks		0.07	%		0.27	%		0.16	%		0.28	%		0.21	%
Loans held for sale		3.89			3.39			3.22			3.18			3.18
Securities:
Available-for-sale and other securities:
Taxable		2.34			2.29			2.31			2.32			2.29
Tax-exempt		4.04			3.94			3.96			4.03			4.15

Total available-for-sale and other securities		2.48			2.42			2.43			2.43			2.39
Trading account securities		0.23			0.60			0.50			1.01			1.07
Held-to-maturity securities—taxable		2.29			2.29			2.29			2.24			2.81

Total securities		2.41			2.38			2.39			2.38			2.41
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		3.68			3.75			3.83			3.88			3.90
Commercial real estate:
Construction		3.91			3.93			4.05			4.13			3.84
Commercial		4.10			4.13			4.00			4.20			3.85

Commercial real estate		4.08			4.09			4.01			4.19			3.85

Total commercial		3.77			3.83			3.87			3.96			3.89

Consumer:
Automobile		3.80			3.96			4.28			4.52			4.87
Home equity		4.10			4.16			4.20			4.24			4.27
Residential mortgage		3.81			3.82			3.97			4.07			4.02
Other consumer		6.98			6.66			7.05			7.16			7.16

Total consumer		3.99			4.07			4.22			4.33			4.40

Total loans and leases		3.87			3.95			4.03			4.13			4.12

Total earning assets		3.64	%		3.68	%		3.75	%		3.80	%		3.79	%

Liabilities
Deposits:
Demand deposits—noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits—interest-bearing		0.04			0.04			0.04			0.05			0.07

Total demand deposits		0.01			0.01			0.01			0.02			0.02
Money market deposits		0.26			0.24			0.23			0.27			0.33
Savings and other domestic deposits		0.25			0.27			0.30			0.33			0.37
Core certificates of deposit		1.05			1.13			1.19			1.21			1.25

Total core deposits		0.32			0.34			0.37			0.41			0.47
Other domestic deposits of $250,000 or more		0.44			0.50			0.52			0.61			0.68
Brokered deposits and negotiable CDs		0.55			0.62			0.67			0.71			0.71
Deposits in foreign offices		0.14			0.14			0.17			0.18			0.18

Total deposits		0.33			0.36			0.38			0.42			0.48
Short-term borrowings		0.09			0.10			0.12			0.14			0.16
Federal Home Loan Bank advances		0.14			0.14			0.18			1.20			0.50
Subordinated notes and other long-term debt		2.29			2.35			2.54			2.55			2.91

Total interest-bearing liabilities		0.42			0.42			0.45			0.50			0.58

Net interest rate spread		3.20			3.26			3.30			3.30			3.21
Impact of noninterest-bearing funds on margin		0.14			0.12			0.12			0.15			0.17

Net interest margin		3.34	%		3.38	%		3.42	%		3.45	%		3.38	%

Commercial Loan Derivative Impact

(Unaudited)


	Average Rates (2)
	2013									2012
Fully-taxable equivalent basis⁽¹⁾	Third			Second			First			Fourth			Third
Commercial loans⁽²⁾⁽³⁾		3.58	%		3.57	%		3.58	%		3.72	%		3.61	%
Impact of commercial loan derivatives		0.19			0.26			0.29			0.24			0.28

Total commercial—as reported		3.77	%		3.83	%		3.87	%		3.96	%		3.89	%

Average 30 day LIBOR		0.19	%		0.20	%		0.20	%		0.21	%		0.24	%

⁽¹⁾	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 10 for the FTE adjustment.

⁽²⁾	Loan, lease, and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.

⁽³⁾	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data⁽¹⁾

(Unaudited)


	2013								2012				Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Third		Second			First			Fourth		Third		2Q13			3Q12
Interest income	$	462,912	$	462,582		$	465,319		$	478,995	$	483,787		0	%		(4	)%
Interest expense		38,060		37,645			41,149			44,940		53,489		1			(29	)

Net interest income		424,852		424,937			424,170			434,055		430,298		(0	)		(1	)
Provision for credit losses		11,400		24,722			29,592			39,458		37,004		(54	)		(69	)

Net interest income after provision for credit losses		413,452		400,215			394,578			394,597		393,294		3			5

Service charges on deposit accounts		72,918		68,009			60,883			68,083		67,806		7			8
Mortgage banking income		23,621		33,659			45,248			61,711		44,614		(30	)		(47	)
Trust services		30,470		30,666			31,160			31,388		29,689		(1	)		3
Electronic banking		24,282		23,345			20,713			21,011		22,135		4			10
Brokerage income		16,532		19,546			17,995			17,415		16,526		(15	)		0
Insurance income		17,269		17,187			19,252			17,268		17,792		0			(3	)
Gain on sale of loans		5,063		3,348			2,616			20,690		6,591		51			(23	)
Bank owned life insurance income		13,740		15,421			13,442			13,767		14,371		(11	)		(4	)
Capital markets fees		12,825		12,229			7,834			12,694		11,596		5			11
Securities gains (losses)		98		(410	)		(509	)		863		4,169		(124	)		N.R.
Other income		33,685		25,655			33,575			32,761		25,778		31			31

Total noninterest income		250,503		248,655			252,209			297,651		261,067		1			(4	)

Personnel costs		229,326		263,862			258,895			253,952		247,709		(13	)		(7	)
Outside data processing and other services		49,313		49,898			49,265			48,699		50,396		(1	)		(2	)
Net occupancy		35,591		27,656			30,114			29,008		27,599		29			29
Equipment		28,191		24,947			24,880			26,580		25,950		13			9
Deposit and other insurance expense		11,155		13,460			15,490			16,327		15,534		(17	)		(28	)
Professional services		12,487		9,341			7,192			22,514		17,510		34			(29	)
Marketing		12,271		14,239			10,971			16,456		16,842		(14	)		(27	)
Amortization of intangibles		10,362		10,362			10,320			11,647		11,431		—			(9	)
OREO and foreclosure expense		2,053		(271	)		2,666			4,233		4,982		(858	)		(59	)
Loss (Gain) on early extinguishment of debt		—		—			—			—		1,782		—			(100	)
Other expense		32,587		32,371			33,000			41,212		38,568		1			(16	)

Total noninterest expense		423,336		445,865			442,793			470,628		458,303		(5	)		(8	)

Income before income taxes		240,619		203,005			203,994			221,620		196,058		19			23
Provision for income taxes		62,132		52,354			52,214			54,341		28,291		19			120

Net income	$	178,487	$	150,651		$	151,780		$	167,279	$	167,767		18	%		6	%

Dividends on preferred shares		7,967		7,967			7,970			7,973		7,983		—			(0	)

Net income applicable to common shares	$	170,520	$	142,684		$	143,810		$	159,306	$	159,784		—			7	%

Average common shares—basic		830,398		834,730			841,103			847,220		857,871		—			(3	)%
Average common shares—diluted		841,015		843,840			848,708			853,306		863,588		(0	)%		(3	)
Per common share
Net income—basic	$	0.21	$	0.17		$	0.17		$	0.19	$	0.19		24	%		11	%
Net income—diluted		0.20		0.17			0.17			0.19		0.19		18			5
Cash dividends declared		0.05		0.05			0.04			0.04		0.04		—			25
Revenue—fully-taxable equivalent (FTE)
Net interest income	$	424,852	$	424,937		$	424,170		$	434,055	$	430,298		(0	)		(1	)%
FTE adjustment		6,634		6,587			5,923			5,470		5,254		1			26

Net interest income⁽²⁾		431,486		431,524			430,093			439,525		435,552		(0	)		(1	)
Noninterest income		250,503		248,655			252,209			297,651		261,067		1			(4	)

Total revenue⁽²⁾	$	681,989	$	680,179		$	682,302		$	737,176	$	696,619		0	%		(2	)%

(1)	Comparisons for presented periods are impacted by a number of factors. Refer to Significant Items.

(2)	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Income

(Unaudited)


	2013									2012						Percent Changes vs.
(dollar amounts in thousands, except as noted)	Third			Second			First			Fourth			Third			2Q13			3Q12
Mortgage banking income
Origination and secondary marketing	$	15,568		$	27,915		$	27,330		$	44,497		$	40,860			(44	)%		(62	)%
Servicing fees		10,868			10,898			11,241			11,491			11,308			—			(4	)
Amortization of capitalized servicing		(6,783	)		(7,998	)		(7,903	)		(9,116	)		(8,405	)		(15	)		(19	)
Other mortgage banking income		3,685			4,470			4,654			4,828			5,000			(18	)		(26	)

Subtotal		23,338			35,285			35,322			51,700			48,763			(34	)		(52	)
MSR valuation adjustment⁽¹⁾		173			14,128			17,798			11,747			(19,543	)		(99	)		(101	)
Net trading gains (losses) related to MSR hedging		110			(15,755	)		(7,872	)		(1,736	)		15,395			(101	)		(99	)

Total mortgage banking income	$	23,621		$	33,658		$	45,248		$	61,711		$	44,615			(30	)%		(47	)%

Mortgage originations (in millions)	$	1,176		$	1,282		$	1,119		$	1,161		$	1,224			(8	)%		(4	)%
Average trading account securities used to hedge MSRs (in millions)		—			—			—			1			4			—			(100	)
Capitalized mortgage servicing rights⁽²⁾		158,776			155,522			139,927			120,747			108,074			2			47
Total mortgages serviced for others (in millions)⁽²⁾		15,231			15,213			15,367			15,623			15,571			—			(2	)
MSR % of investor servicing portfolio⁽²⁾		1.04	%		1.02	%		0.91	%		0.77	%		0.69	%		2			5,072

Net impact of MSR hedging																	—
MSR valuation adjustment⁽¹⁾	$	173		$	14,128		$	17,798		$	11,747		$	(19,543	)		(99	)%		(101	)%
Net trading gains (losses) related to MSR hedging		110			(15,755	)		(7,872	)		(1,736	)		15,395			(101	)		(99	)
Net interest income (loss) related to MSR hedging		—			—			—			—			4			—			(100	)

Net gain (loss) of MSR hedging	$	283		$	(1,627	)	$	9,926		$	10,011		$	(4,144	)		(117	)%		(107	)%

⁽¹⁾	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

⁽²⁾	At period end.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)


	2013									2012
(dollar amounts in thousands)	Third			Second			First			Fourth			Third
Allowance for loan and lease losses, beginning of period	$	733,076		$	746,769		$	769,075		$	789,142		$	859,646
Loan and lease losses		(85,252	)		(63,238	)		(84,142	)		(106,962	)		(132,186	)
Recoveries of loans previously charged off		29,510			28,448			32,455			36,832			27,091

Net loan and lease losses		(55,742	)		(34,790	)		(51,687	)		(70,130	)		(105,095	)

Provision for loan and lease losses		(11,234	)		21,354			29,388			52,370			34,419
Allowance of assets sold or transferred to loans held for sale		(70	)		(257	)		(7	)		(2,307	)		172

Allowance for loan and lease losses, end of period	$	666,030		$	733,076		$	746,769		$	769,075		$	789,142

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	44,223		$	40,855		$	40,651		$	53,563		$	50,978
Provision for (reduction in) unfunded loan commitments and letters of credit losses		22,634			3,368			204			(12,912	)		2,585

Allowance for unfunded loan commitments and letters of credit, end of period	$	66,857		$	44,223		$	40,855		$	40,651		$	53,563

Total allowance for credit losses, end of period	$	732,887		$	777,299		$	787,624		$	809,726		$	842,705

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.57	%		1.76	%		1.81	%		1.89	%		1.96	%
Nonaccrual loans and leases (NALs)		200			202			196			189			177
Nonperforming assets (NPAs)		178			185			180			173			155
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.72	%		1.86	%		1.91	%		1.99	%		2.09	%
Nonaccrual loans and leases		220			214			207			199			189
Nonperforming assets		196			196			190			182			165

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	2013									2012
(dollar amounts in thousands)	Third			Second			First			Fourth			Third
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	1,661		$	1,586		$	3,317		$	7,052		$	13,023
Commercial real estate:
Construction		6,165			1,079			(798	)		11,038			(280	)
Commercial		6,398			1,305			13,575			10,333			17,654

Commercial real estate		12,563			2,384			12,777			21,371			17,374

Total commercial		14,224			3,970			16,094			28,423			30,397

Consumer:
Automobile		2,721			1,463			2,594			1,896			4,019
Home equity		27,175			14,654			19,983			25,013			46,592
Residential mortgage		4,789			8,620			6,148			9,687			16,880
Other consumer		6,833			6,083			6,868			5,111			7,207

Total consumer		41,518			30,820			35,593			41,707			74,698

Total net charge-offs	$	55,742		$	34,790		$	51,687		$	70,130		$	105,095

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.04	%		0.04	%		0.08	%		0.17	%		0.32	%
Commercial real estate:
Construction		4.36			0.74			(0.53	)		7.67			(0.20	)
Commercial		0.59			0.12			1.16			0.84			1.37

Commercial real estate		1.02			0.19			0.97			1.56			1.21

Total commercial		0.26			0.07			0.29			0.52			0.55

Consumer:
Automobile		0.18			0.11			0.21			0.17			0.40
Home equity		1.30			0.71			0.95			1.20			2.23
Residential mortgage		0.36			0.66			0.49			0.75			1.30
Other consumer		7.19			5.28			6.67			4.74			6.49

Total consumer		0.83			0.64			0.76			0.91			1.65

Net charge-offs as a % of average loans		0.53	%		0.34	%		0.51	%		0.69	%		1.05	%

Huntington Bancshares Incorporated

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)


	2013									2012
(dollar amounts in thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	68,034		$	80,037		$	80,928		$	90,705		$	109,452
Commercial real estate		80,295			93,643			110,803			127,128			148,986
Automobile		5,972			7,743			6,770			7,823			11,814
Residential mortgage		116,260			122,040			118,405			122,452			123,140
Home equity		62,545			60,083			63,405			59,525			51,654

Total nonaccrual loans and leases		333,106			363,546			380,311			407,633			445,046
Other real estate, net:
Residential		16,610			17,353			19,538			21,378			23,640
Commercial		12,544			3,713			5,601			6,719			30,566

Total other real estate, net		29,154			21,066			25,139			28,097			54,206
Other NPAs⁽¹⁾		12,000			12,087			10,045			10,045			10,476

Total nonperforming assets⁽⁴⁾	$	374,260		$	396,699		$	415,495		$	445,775		$	509,728

Nonaccrual loans and leases as a % of total loans and leases		0.78	%		0.87	%		0.92	%		1.00	%		1.11	%
NPA ratio⁽²⁾		0.88			0.95			1.01			1.09			1.26
(NPA+90days)/(Loan+OREO)⁽³⁾		0.93			1.38			1.48			1.59			1.75

	2013									2012
	Third			Second			First			Fourth			Third
Nonperforming assets, beginning of period	$	396,699		$	415,495		$	445,775		$	509,728		$	523,250
New nonperforming assets⁽⁴⁾		139,767			101,840			115,061			175,083			210,995
Returns to accruing status		(31,293	)		(18,915	)		(19,537	)		(23,553	)		(45,729	)
Loan and lease losses		(65,823	)		(40,546	)		(51,019	)		(82,759	)		(78,308	)
OREO (losses) gains		1,053			1,874			840			283			73
Payments		(61,116	)		(54,242	)		(64,045	)		(81,940	)		(90,535	)
Sales		(5,027	)		(8,807	)		(11,580	)		(51,067	)		(10,018	)

Nonperforming assets, end of period	$	374,260		$	396,699		$	415,495		$	445,775		$	509,728

⁽¹⁾	Other nonperforming assets includes certain impaired investment securities.

⁽²⁾	Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

⁽³⁾	The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.

⁽⁴⁾	Includes $57.9 at September 30, 2013; $59.6 million at June 30, 2013; $59.9 million at March 31, 2013; $60.1 million at December 31, 2012; $63.0 million at September 30, 2012; related to Chapter 7 bankruptcy loans.

Huntington Bancshares Incorporated

Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)


	2013									2012
(dollar amounts in thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	19,217		$	24,851		$	26,547		$	26,648		$	26,117
Commercial real estate		44,026			45,051			56,007			56,660			45,131
Automobile		3,599			3,392			3,531			4,418			3,857
Residential mortgage (excluding loans guaranteed by the U.S. Government)		13,978			5,217			6,187			2,718			10,687
Home equity		13,044			14,245			15,044			18,200			21,343
Other consumer		1,102			1,367			1,107			1,672			1,084

Total, excl. loans guaranteed by the U.S. Government		94,966			94,123			108,423			110,316			108,219
Add: loans guaranteed by U.S. Government		81,770			87,135			88,596			90,816			87,463

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	176,736		$	181,258		$	197,019		$	201,132		$	195,682

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.22	%		0.23	%		0.26	%		0.27	%		0.27	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.20			0.21			0.21			0.22			0.22
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.42			0.43			0.48			0.49			0.49
Accruing troubled debt restructured loans:
Commercial and industrial	$	85,687		$	94,583		$	90,642		$	76,586		$	55,809
Commercial real estate		204,597			184,372			192,167			208,901			222,155
Automobile		30,981			32,768			34,379			35,784			33,719
Home equity (1)		153,591			135,759			162,087			110,581			92,763
Residential mortgage		300,809			293,933			288,041			290,011			280,890
Other consumer		959			3,383			2,514			2,544			2,644

Total accruing troubled debt restructured loans	$	776,624		$	744,798		$	769,830		$	724,407		$	687,980

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	8,643		$	14,541		$	14,970		$	19,268		$	28,859
Commercial real estate		22,695			26,118			26,588			32,548			20,284
Automobile		5,972			7,743			6,770			7,823			11,814
Home equity		11,434			10,227			11,235			6,951			7,756
Residential mortgage		77,525			80,563			84,317			84,515			83,163
Other consumer		—			—			—			113			113

Total nonaccruing troubled debt restructured loans	$	126,269		$	139,192		$	143,880		$	151,218		$	151,989

(1)	The 2013 second quarter includes a $43.1 million reduction of home equity TDRs incorrectly reflected as new TDRs in the 2013 first quarter.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Capital, and Other Data

(Unaudited)

Quarterly common stock summary


	2013									2012
(dollar amounts in thousands, except per share amounts)	Third			Second			First			Fourth			Third
Common stock price, per share
High⁽¹⁾	$	8.780		$	7.960		$	7.550		$	7.200		$	7.200
Low⁽¹⁾		7.900			6.820			6.480			5.900			6.160
Close		8.260			7.870			7.370			6.390			6.895
Average closing price		8.445			7.457			7.073			6.416			6.561
Dividends, per share
Cash dividends declared per common share	$	0.05		$	0.05		$	0.04		$	0.04		$	0.04
Common shares outstanding
Average—basic		830,398			834,730			841,103			847,220			857,871
Average—diluted		841,015			843,840			848,708			853,306			863,588
Ending		830,145			829,675			838,758			842,813			855,485
Book value per common share	$	6.72		$	6.51		$	6.53		$	6.41		$	6.34
Tangible book value per common share⁽²⁾		6.10			5.88			5.91			5.78			5.71
Common share repurchases
Number of shares repurchased		1,974			9,996			4,738			13,160			3,742

	2013									2012
(dollar amounts in millions)	September 30,			June 30,			March 31,			December 31,			September 30,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	5,962		$	5,784		$	5,867		$	5,790		$	5,808
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(104	)		(114	)		(124	)		(132	)		(144	)
Add: related deferred tax liability⁽²⁾		36			40			43			46			50

Total tangible equity		5,450			5,266			5,342			5,260			5,270
Less: preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)

Total tangible common equity	$	5,064		$	4,880		$	4,956		$	4,874		$	4,884

Total assets	$	56,648		$	56,114		$	56,055		$	56,153		$	56,443
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(104	)		(114	)		(124	)		(132	)		(144	)
Add: related deferred tax liability⁽²⁾		36			40			43			46			50

Total tangible assets	$	56,136		$	55,596		$	55,530		$	55,623		$	55,905

Tangible equity / tangible asset ratio		9.71	%		9.47	%		9.62	%		9.46	%		9.43	%
Tangible common equity / tangible asset ratio		9.02			8.78			8.92			8.76			8.74
Tier 1 common risk-based capital ratio:⁽⁴⁾
Tier 1 capital	$	6,018		$	5,885		$	5,829		$	5,741		$	5,720
Shareholders’ preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)
Trust preferred securities		(299	)		(299	)		(299	)		(299	)		(335	)
REIT preferred stock		(50	)		(50	)		(50	)		(50	)		(50	)

Tier 1 common	$	5,283		$	5,150		$	5,094		$	5,006		$	4,949

Total risk-weighted assets⁽⁴⁾	$	48,687		$	48,080		$	47,937		$	47,773		$	48,147
Tier 1 common risk-based capital ratio⁽⁴⁾		10.85	%		10.71	%		10.62	%		10.48	%		10.28	%
Other capital data:
Tier 1 leverage ratio⁽⁴⁾		10.85			10.64			10.57			10.36			10.29
Tier 1 risk-based capital ratio⁽⁴⁾		12.36			12.24			12.16			12.02			11.88
Total risk-based capital ratio⁽⁴⁾		14.67			14.57			14.55			14.50			14.36
Tangible common equity / risk-weighted assets ratio⁽⁴⁾		10.40			10.15			10.34			10.20			10.14
Other data:
Number of employees (full-time equivalent)		11,956			12,155			12,052			11,806			11,731
Number of domestic full-service branches⁽³⁾		731			727			717			705			699

⁽¹⁾	High and low stock prices are intra-day quotes obtained from NASDAQ.

⁽²⁾	Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽³⁾	Includes WGH offices.

⁽⁴⁾	September 30, 2013, figures are estimated and are presented on a basel 1 basis.

Huntington Bancshares Incorporated

Consolidated Year To Date Average Balance Sheets

(Unaudited)


	YTD Average Balances
	Nine Months Ended September 30,						Change
(dollar amounts in millions)	2013			2012			Amount			Percent
Assets
Interest bearing deposits in banks	$	70		$	102		$	(32	)		(31	)%
Loans held for sale		588			1,170			(582	)		(50	)
Securities:
Available-for-sale and other securities:
Taxable		6,574			8,156			(1,582	)		(19	)
Tax-exempt		568			405			163			40

Total available-for-sale and other securities		7,142			8,561			(1,419	)		(17	)
Trading account securities		82			57			25			44
Held-to-maturity securities—taxable		1,857			680			1,177			173

Total Securities		9,081			9,298			(217	)		(2	)

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		17,007			15,756			1,251			8
Commercial real estate:
Construction		583			584			(1	)		—
Commercial		4,488			5,299			(811	)		(15	)

Commercial real estate		5,071			5,883			(812	)		(14	)

Total commercial		22,078			21,639			439			2

Consumer:
Automobile		5,402			4,540			862			19
Home equity		8,299			8,305			(6	)		—
Residential mortgage		5,154			5,201			(47	)		(1	)
Other consumer		451			463			(12	)		(3	)

Total consumer		19,306			18,509			797			4

Total loans and leases		41,384			40,148			1,236			3
Allowance for loan and lease losses		(745	)		(908	)		163			(18	)

Net loans and leases		40,639			39,240			1,399			4

Total earning assets		51,123			50,718			405			1

Cash and due from banks		930			967			(37	)		(4	)
Intangible assets		562			606			(44	)		(7	)
All other assets		3,974			4,163			(189	)		(5	)

Total assets	$	55,844		$	55,546		$	298			1	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	12,714		$	11,890		$	824			7	%
Demand deposits—interest-bearing		5,888			5,800			88			2

Total demand deposits		18,602			17,690			912			5
Money market deposits		15,287			13,616			1,671			12
Savings and other domestic deposits		5,068			4,924			144			3
Core certificates of deposit		4,761			6,419			(1,658	)		(26	)

Total core deposits		43,718			42,649			1,069			3
Other domestic deposits of $250,000 or more		317			315			2			1
Brokered deposits and negotiable CDs		1,676			1,535			141			9
Deposits in foreign offices		344			381			(37	)		(10	)

Total deposits		46,055			44,880			1,175			3
Short-term borrowings		724			1,410			(686	)		(49	)
Federal Home Loan Bank advances		663			383			280			73
Subordinated notes and other long-term debt		1,467			2,178			(711	)		(33	)

Total interest-bearing liabilities		36,195			36,961			(766	)		(2	)

All other liabilities		1,068			1,081			(13	)		(1	)
Shareholders’ equity		5,867			5,614			253			5

Total liabilities and shareholders’ equity	$	55,844		$	55,546		$	298			1	%

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin—Interest Income / Expense (1)

(Unaudited)


	YTD Interest Income / Expense
	Nine Months Ended September 30,
(dollar amounts in thousands)	2013		2012
Assets
Interest bearing deposits in banks	$	94	$	151
Loans held for sale		15,319		30,094
Securities:
Available-for-sale and other securities:
Taxable		114,004		143,005
Tax-exempt		16,967		12,691

Total available-for-sale and other securities		130,971		155,696
Trading account securities		275		608
Held-to-maturity securities—taxable		31,835		14,844

Total Securities		163,081		171,148
Loans and leases:
Commercial:
Commercial and industrial		484,045		475,814
Commercial real estate:
Construction		17,524		16,811
Commercial		138,717		156,008

Commercial real estate		156,241		172,819

Total commercial		640,286		648,633

Consumer:
Automobile		161,389		163,124
Home equity		257,375		267,328
Residential mortgage		149,376		160,221
Other consumer		23,037		25,505

Total consumer		591,177		616,178

Total loans and leases		1,231,463		1,264,811

Total earning assets	$	1,409,957	$	1,466,204

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—
Demand deposits—interest-bearing		1,894		2,845

Total demand deposits		1,894		2,845
Money market deposits		27,534		30,322
Savings and other domestic deposits		10,367		14,779
Core certificates of deposit		40,214		67,838

Total core deposits		80,009		115,784
Other domestic deposits of $250,000 or more		1,171		1,587
Brokered deposits and negotiable CDs		7,715		8,553
Deposits in foreign offices		386		526

Total deposits		89,281		126,450
Short-term borrowings		571		1,685
Federal Home Loan Bank advances		771		690
Subordinated notes and other long-term debt		26,231		45,974

Total interest-bearing liabilities		116,854		174,799

Net interest income	$	1,293,103	$	1,291,405

⁽¹⁾	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 20 for the FTE adjustment.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin—Yield

(Unaudited)


	YTD Average Rates (2)
	Nine Months Ended September 30,
Fully-taxable equivalent basis⁽¹⁾	2013			2012
Assets
Interest bearing deposits in banks		0.18	%		0.20	%
Loans held for sale		3.47			3.43
Securities:
Available-for-sale and other securities:
Taxable		2.31			2.34
Tax-exempt		3.98			4.18

Total available-for-sale and other securities		2.45			2.42
Trading account securities		0.45			1.42
Held-to-maturity securities—taxable		2.29			2.91

Total Securities		2.39			2.45

Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		3.75			3.97
Commercial real estate:
Construction		3.96			3.78
Commercial		4.08			3.87

Commercial real estate		4.06			3.86

Total commercial		3.82			3.94

Consumer:
Automobile		3.99			4.80
Home equity		4.15			4.29
Residential mortgage		3.86			4.11
Other consumer		6.82			7.35

Total consumer		4.09			4.44

Total loans and leases		3.95			4.17

Total earning assets		3.69	%		3.86	%

Liabilities
Deposits:
Demand deposits—noninterest-bearing		—	%		—	%
Demand deposits—interest-bearing		0.04			0.07

Total demand deposit		0.01			0.02
Money market deposits		0.24			0.30
Savings and other domestic deposits		0.27			0.40
Core certificates of deposit		1.13			1.41

Total core deposits		0.35			0.50
Other domestic deposits of $250,000 or more		0.49			0.67
Brokered deposits and negotiable CDs		0.62			0.74
Deposits in foreign offices		0.15			0.18

Total deposits		0.36			0.51
Short-term borrowings		0.11			0.16
Federal Home Loan Bank advances		0.15			0.24
Subordinated notes and other long-term debt		2.39			2.81

Total interest bearing liabilities		0.43			0.63

Net interest rate spread		3.26			3.23
Impact of noninterest-bearing funds on margin		0.12			0.17

Net interest margin		3.38	%		3.40	%

Commercial Loan Derivative Impact

(Unaudited)


	YTD Average Rates (2)
	Nine Months Ended September 30,
Fully-taxable equivalent basis⁽¹⁾	2013			2012
Commercial loans⁽²⁾⁽³⁾		3.57	%		3.65	%
Impact of commercial loan derivatives		0.25			0.29

Total commercial—as reported		3.82	%		3.94	%

Average 30 day LIBOR		0.20	%		0.22	%

⁽¹⁾	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 20 for the FTE adjustment.

⁽²⁾	Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.

⁽³⁾	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data

(Unaudited)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except per share amounts)	2013			2012			Amount			Percent
Interest income	$	1,390,813		$	1,451,268		$	(60,455	)		(4	)%
Interest expense		116,854			174,799			(57,945	)		(33	)

Net interest income		1,273,959			1,276,469			(2,510	)		—
Provision for credit losses		65,714			107,930			(42,216	)		(39	)

Net interest income after provision for credit losses		1,208,245			1,168,539			39,706			3

Service charges on deposit accounts		201,810			194,096			7,714			4
Mortgage banking income		102,528			129,381			(26,853	)		(21	)
Trust services		92,296			90,509			1,787			2
Electronic banking		68,340			61,279			7,061			12
Brokerage income		54,073			54,811			(738	)		(1	)
Insurance income		53,708			54,051			(343	)		(1	)
Gain on sale of loans		11,027			37,492			(26,465	)		(71	)
Bank owned life insurance income		42,603			42,275			328			1
Capital markets fees		32,888			34,652			(1,764	)		(5	)
Securities gains (losses)		(821	)		3,906			(4,727	)		(121	)
Other income		92,915			97,754			(4,839	)		(5	)

Total noninterest income		751,367			800,206			(48,839	)		(6	)

Personnel costs		752,083			734,241			17,842			2
Outside data processing and other services		148,476			141,556			6,920			5
Net occupancy		93,361			82,152			11,209			14
Equipment		78,018			76,367			1,651			2
Deposit and other insurance expense		40,105			52,003			(11,898	)		(23	)
Professional services		29,020			43,244			(14,224	)		(33	)
Marketing		37,481			47,807			(10,326	)		(22	)
Amortization of intangibles		31,044			34,902			(3,858	)		(11	)
OREO and foreclosure expense		4,448			14,038			(9,590	)		(68	)
Gain on early extinguishment of debt		—			(798	)		798			(100	)
Other expense		97,958			139,736			(41,778	)		(30	)

Total noninterest expense		1,311,994			1,365,248			(53,254	)		(4	)

Income before income taxes		647,618			603,497			44,121			7
Provision for income taxes		166,700			129,754			36,946			28

Net income	$	480,918		$	473,743		$	7,175			2	%

Dividends on preferred shares		23,904			24,016			(112	)		—

Net income applicable to common shares	$	457,014		$	449,727		$	7,287			2	%

Average common shares—basic		835,410			861,543			(26,133	)		(3	)%
Average common shares—diluted		844,521			866,768			(22,247	)		(3	)
Per common share
Net income—basic	$	0.55		$	0.52		$	0.03			6	%
Net income—diluted		0.54			0.52			0.02			4
Cash dividends declared		0.14			0.12			0.02			17
Revenue—fully taxable equivalent (FTE)
Net interest income	$	1,273,959		$	1,276,469		$	(2,510	)		—	%
FTE adjustment⁽²⁾		19,144			14,936			4,208			28

Net interest income		1,293,103			1,291,405			1,698			—
Noninterest income		751,367			800,206			(48,839	)		(6	)

Total revenue	$	2,044,470		$	2,091,611		$	(47,141	)		(2	)%

Comparisons for presented periods are impacted by a number of factors. Refer to Significant Items.

On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

Huntington Bancshares Incorporated

Year To Date Mortgage Banking Income

(Unaudited)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except as noted)	2013			2012			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	70,815		$	102,348		$	(31,533	)		(31	)%
Servicing fees		33,007			34,686			(1,679	)		(5	)
Amortization of capitalized servicing		(22,684	)		(26,792	)		4,108			(15	)
Other mortgage banking income		12,809			14,779			(1,970	)		(13	)

Subtotal		93,947			125,021			(31,074	)		(25	)
MSR valuation adjustment⁽¹⁾		32,098			(28,649	)		60,747			(212	)
Net trading gains (losses) related to MSR hedging		(23,517	)		33,009			(56,526	)		(171	)

Total mortgage banking income	$	102,528		$	129,381		$	(26,853	)		(21	)%

Mortgage originations (in millions)	$	3,577		$	3,672		$	(95	)		(3	)%
Average trading account securities used to hedge MSRs (in millions)		—			4			(4	)		(100	)
Capitalized mortgage servicing rights⁽²⁾		158,776			108,074			50,702			47
Total mortgages serviced for others (in millions)⁽²⁾		15,231			15,571			(340	)		(2	)
MSR % of investor servicing portfolio		1.04	%		0.69	%		0.35	%		51

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	32,098		$	(28,649	)	$	60,747			(212	)%
Net trading gains (losses) related to MSR hedging		(23,517	)		33,009			(56,526	)		(171	)
Net interest income related to MSR hedging		—			(26	)		26			(100	)

Net gain (loss) on MSR hedging	$	8,581		$	4,334		$	4,247			98	%

⁽¹⁾	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

⁽²⁾	At period end.

Huntington Bancshares Incorporated

Year To Date Credit Reserves Analysis

(Unaudited)


	Nine Months Ended September 30,
(dollar amounts in thousands)	2013			2012
Allowance for loan and lease losses, beginning of period	$	769,075		$	964,828
Loan and lease losses		(232,632	)		(348,238	)
Recoveries of loans previously charged off		90,413			75,906

Net loan and lease losses		(142,219	)		(272,332	)

Provision for loan and lease losses		39,508			102,823
Allowance of assets sold or transferred to loans held for sale		(334	)		(6,177	)

Allowance for loan and lease losses, end of period	$	666,030		$	789,142

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	40,651		$	48,456
Provision for (reduction in) unfunded loan commitments and letters of credit losses		26,206			5,107

Allowance for unfunded loan commitments and letters of credit, end of period	$	66,857		$	53,563

Total allowance for credit losses	$	732,887		$	842,705

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.57	%		1.96	%
Nonaccrual loans and leases (NALs)		200			177
Nonperforming assets (NPAs)		178			155
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.72	%		2.09	%
Nonaccrual loans and leases (NALs)		220			189
Nonperforming assets (NPAs)		196			165

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)


	Nine Months Ended September 30,
(dollar amounts in thousands)	2013			2012
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	6,564		$	57,196
Commercial real estate:
Construction		6,446			(2,997	)
Commercial		21,278			60,055

Commercial real estate		27,724			57,058

Total commercial		34,288			114,254

Consumer:
Automobile		6,778			7,546
Home equity		61,812			91,370
Residential mortgage		19,557			38,236
Other consumer		19,784			20,926

Total consumer		107,931			158,078

Total net charge-offs	$	142,219		$	272,332

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.05	%		0.48	%
Commercial real estate:
Construction		1.47			(0.68	)
Commercial		0.63			1.51

Commercial real estate		0.73			1.29

Total commercial		0.21			0.70

Consumer:
Automobile		0.17			0.22
Home equity		0.99			1.47
Residential mortgage		0.51			0.98
Other consumer		5.85			6.03

Total consumer		0.75			1.14

Net charge-offs as a % of average loans		0.46	%		0.90	%

Huntington Bancshares Incorporated

Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)


	September 30,
(dollar amounts in thousands)	2013			2012
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	68,034		$	109,452
Commercial real estate		80,295			148,986
Automobile		5,972			11,814
Residential mortgage		116,260			123,140
Home equity		62,545			51,654

Total nonaccrual loans and leases		333,106			445,046
Other real estate, net:
Residential		16,610			23,640
Commercial		12,544			30,566

Total other real estate, net		29,154			54,206
Other NPAs (1)		12,000			10,476

Total nonperforming assets (3)	$	374,260		$	509,728

Nonaccrual loans and leases as a % of total loans and leases		0.78	%		1.11	%
NPA ratio (2)		0.88			1.26

	Nine Months Ended September 30,
(dollar amounts in thousands)	2013			2012
Nonperforming assets, beginning of period	$	445,775		$	590,276
New nonperforming assets		356,668	⁽⁴⁾		566,641
Returns to accruing status		(69,745	)		(117,161	)
Loan and lease losses		(157,388	)		(228,220	)
OREO losses (gains)		3,767			(681	)
Payments		(179,403	)		(220,674	)
Sales		(25,414	)		(80,453	)

Nonperforming assets, end of period	$	374,260		$	509,728

(1)	Other nonperforming assets represent an investment security backed by a municipal bond.

(2)	Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

(3)	Includes $57.9 million at September 30, 2013 and $63.0 million at September 30, 2012, related to chapter 7 bankruptcy loans.

Huntington Bancshares Incorporated

Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)


	September 30,
(dollar amounts in thousands)	2013			2012
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	19,217		$	26,117
Commercial real estate		44,026			45,131
Automobile		3,599			3,857
Residential mortgage (excluding loans guaranteed by the U.S. Government)		13,978			10,687
Home equity		13,044			21,343
Other consumer		1,102			1,084

Total, excl. loans guaranteed by the U.S. Government		94,966			108,219
Add: loans guaranteed by U.S. Government		81,770			87,463

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	176,736		$	195,682

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.22	%		0.27	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.20	%		0.22	%
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.42	%		0.49	%
Accruing troubled debt restructured loans:
Commercial and industrial	$	85,687		$	55,809
Commercial real estate		204,597			222,155
Automobile		30,981			33,719
Home equity		153,591			92,763
Residential mortgage		300,809			280,890
Other consumer		959			2,644

Total accruing troubled debt restructured loans	$	776,624		$	687,980

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	8,643		$	28,859
Commercial real estate		22,695			20,284
Automobile		5,972			11,814
Home equity		11,434			7,756
Residential mortgage		77,525			83,163
Other consumer		—			113

Total nonaccruing troubled debt restructured loans	$	126,269		$	151,989

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - QUARTERLY FINANCIAL SUPPLEMENT - October 17, 2013

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports