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Huntington Bancshares Incorporated
Goldman Sachs 2017 US
Financial Services Conference
December 6, 2017
Welcome
©2017 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN)
Exhibit 99.1
Disclaimer
2
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals,
projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements
that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements.
Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar
expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking
statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause
actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political,
or industry conditions; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board;
volatility and disruptions in global capital and credit markets; movements in interest rates; competitive pressures on product pricing and
services; success, impact, and timing of our business strategies, including market acceptance of any new products or services
implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews,
reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and
the Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and CFPB; the possibility that the
anticipated benefits of the merger with FirstMerit Corporation are not realized completely or when expected, including as a result of the
impact of, or problems arising from, the strength of the economy and competitive factors in the areas where we do business; and other
factors that may affect our future results. Additional factors that could cause results to differ materially from those described above can be
found in our Annual Report on Form 10-K for the year ended December 31, 2016, and Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2017, June 30, 2017, and September 30, 2017, which are on file with the Securities and Exchange Commission (the
“SEC”) and available in the “Investor Relations” section of our website, http://www.huntington.com, under the heading “Publications and
Filings” and in other documents we file with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We do not
assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-
looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As
forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such
statements.
Huntington’s Strategy
Delivering on our Commitments: FirstMerit Acquisition
Expectations: 4Q17 and 2018
Important Messages
Discussion Topics
3
Huntington’s Strategy
4
Ranked #2 in deposit market share in
Ohio (15%) and #6 in Michigan (7%)
Founded in 1866 in Columbus, Ohio
Traditional regional bank with strategic focus on small to medium-sized businesses, consumers,
and vehicle finance
Huntington Bancshares Overview
$102 billion asset Midwest financial services holding company
Huntington’s top 10 deposit MSAs
represent ~78% of total deposits
Combined GDP of 8 state core footprint
represents 4th largest economy in world (1)
Ranked #1 in deposit share in 14% of
total footprint MSAs and top 3 in 41%
Ranked #1 in branch market share in
both Ohio (13%) and Michigan (12%)
Ranked #1 SBA 7(a) lender in footprint
and #2 in nation (2)
5
Ranked #4 mortgage lender in footprint (3)
$15B
$1B
$2B $2B
$50B
$4B
$2B
$1B
Source: SNL Financial, FDIC deposit data as of June 30, 2017
(1) Source: 2016 International Monetary Fund and US Bureau of Economic Analysis; (2) Rankings for SBA 2017 fiscal
year (September 30 year-end); (3) Ranking among Icon Advisory Group's Retail Mortgage Consortium of leading lenders YTD 9/17
Small and
Medium
Businesses
Consumer
Vehicle
Finance
6
Well-Defined Strategy Builds Upon Our
Sustainable, Competitive Advantages
Delivering consistent, through-the-cycle shareowner returns
Drive continued growth in market share
and share of wallet through execution of
Optimal Customer Relationship strategy
Deliver exceptional customer experiences
via our customer-focused culture,
Welcome brand, and promise to “Do the
Right Thing”
Maintain our aggregate moderate-to-low
risk appetite through disciplined risk
management and strong corporate
governance
Core Areas of Strategic Focus:
Driving Toward a Best-in-Class Return Profile
Actions Taken Since 2009 Accelerated Performance
7
Focused the
Business Model
Aggregate
Moderate-to-Low
Risk Appetite
Invested in
the Franchise
(1) See reconciliation on slide 22; Peer data on a core basis, source: SNL Financial
Built the
Brand
Disciplined
Execution
Strong Management /
Shareowner Alignment
Positioned for Strong Relative Performance
Through-the-Cycle
8
(1) Non-GAAP financial metric; see Appendix slide 23; (2) Annualized; (3) 3Q17 average balances;
(4) projected minimum in the Federal Reserve Severely Adverse Scenario
Note: Ranking among 19 traditional commercial banks
Delivering on our
Commitments:
FirstMerit Acquisition
9
High Confidence in FirstMerit Deal Economics
On pace to meet or exceed originally announced cost savings and
revenue enhancements
10
$255+ MM
Cost Savings
✔ Implementation of all cost
savings complete
✔ Eliminated 42% of legacy
FirstMerit expense base
✔ Fully converted all operating
systems to Huntington systems
✔ Consolidated 24 operations
centers and corporate offices
✔ Consolidated 101 branches in
1Q17; 38 additional full-service
branches and 7 drive-through
only locations were
consolidated in 3Q17
$100+ MM
Revenue Synergies
✔ Introducing full Huntington
product suite to FirstMerit
customer base through Optimal
Customer Relationships (OCR)
✔ Expanded SBA expertise to
Chicago / WI
✔ Expanded RV / Marine lending
to 17 new states
✔ Expanded Home Lending
business to Chicago / WI
Delivering FirstMerit Economics
Cost savings remain on pace and revenue initiatives ramping
11
FirstMerit Integration substantially complete
o Systems conversions successfully completed
o Consumer deposit retention has outperformed
modeled assumptions with balances up 2%1
vs. 10% runoff assumption
Achieving ~$255 million annualized cost savings
target set at announcement
o All remaining cost savings were implemented
during 3Q17
Revenue enhancement initiatives implemented
across the bank
o Expected to augment both net interest income
and noninterest income
o All four revenue segments developed targeted
strategies and initiatives
o Remain on pace to deliver $100+ million of total
revenue enhancements in 2018 with incremental
efficiency ratio of ~50%
(1) Consumer deposits from FMER customers and former FMER branches, June 30, 2017 vs. August 31, 2016
FirstMerit Revenue Enhancement Initiatives
Initiatives provide additional near-term and long-term upside
12
Home Lending Expansion
Small Business Administration
(SBA) Lending Expansion
RV & Boat Expansion
Optimal Customer Relationship
(OCR) Improvement
(1) Source: SBA; rankings for SBA 2017 fiscal year (September 30 year-end)
($ millions)
• Expanded HBAN SBA lending expertise into IL and WI
markets & deepened coverage in overlap markets
• SBA FY2017 YTD 1: #2 bank in dollars in IL, #3 bank in dollars
in WI & #2 bank in number of loans in both IL and WI
• Expansion of legacy FMER 17 state footprint to 34 states
• Annual Loan production of ~$200 million within two years
• Expansion into Chicago and WI markets and deeper
penetration in overlap markets
• Annual Loan production of ~$900 million within two years
• Cross-sell opportunities identified across business and
consumer client base:
– Capital Markets
– Treasury Management
– Private Banking
13
Net Impact of FirstMerit-Related Purchase
Accounting and Provision
Expected net impact on pre-tax income down to $1 million in 2018
Expectations:
4Q17 and 2018
14
FirstMerit Acquisition Accelerated Achievement
of Our Long-Term Financial Goals
15
Long-Term
Financial
Goal YTD
4Q
Expectation
2018
Target
Revenue (FTE) Growth (Y/Y) 4% - 6% +31% 3% - 4%
Expense Growth (Y/Y)
Positive
Operating
Leverage
+21% (7%) - (8%)
Efficiency Ratio 56% - 59% 63% ~55%
NCO 35 - 55 bp 23 bp 24 bp - 27 bp
ROTCE 13% - 15% 13% 15% - 16%
Note: All metrics presented on a GAAP basis
2017
4Q Mid-Quarter Update1
16
Full year 2017 period-end loan growth
expectation remains +3% to +4%
Continued Consumer growth momentum
4Q historically a seasonally strong quarter
Core NIM improvement
Deposit pricing pressure remains largely
confined to Corporate and upper end of
Middle Mkt
Loan yields on new production exceeds
3Q17 portfolio averages in all categories
Expect to achieve or slightly beat prior 4Q
expense guidance of $639 million
All expense saves were implemented in 3Q
Repurchased $82 million of common stock
(6 million shares at an average price of $13.61)
during October and November
(1) As of November 30, 2017
Initial 2018 Expectations
17
Avg Loan Balances 4% - 6% growth (assumes $500 MM Auto securitization in 3Q18)
Avg Deposit Balances 3% - 5% growth
Revenue
4% - 6% growth (assumes no rate hikes in December 2017 or full
year 2018)
Net Interest Margin
GAAP NIM flat; Core NIM up modestly (new money yields above
back book yields across all loan categories)
Non-Interest Expense 2% - 4% decrease
Efficiency Ratio 55% - 57%
Net charge-offs Remain below long-term expectations of 35 bp – 55 bp
Note: All metrics presented on a GAAP basis assuming an unchanged rate environment
Important Messages
18
Strong economic outlook for Midwest footprint
FirstMerit integration substantially complete; Fully implemented all cost saves
and executing on revenue synergies
Focused on three areas with sustainable competitive advantages
o Consumer
o Small to Medium Enterprises (including Commercial Real Estate)
o Vehicle Finance
Consistent core strategy since 2009
o Delivering on growth strategies with sustained investment
o Meaningful investment in people, technology, and brand – continuously improving
o Disciplined risk management – aggregate moderate-to-low risk profile
Driving core deposit and loan growth through disciplined execution and a
differentiated customer experience
Focused on delivery of consistent through-the-cycle shareholder returns
High level of colleague and shareholder alignment
Important Messages
19
Appendix
20
Huntington’s Peer Group
21
$ in millions
Total
Assets
Total
Deposits
Total
Loans
Market
Capitalization
Price /
Dividend
Yield Consensus
2017E
Consensus
2018E
Tangible
Book
PNC Financial Services Group, Inc. $375,191 $260,735 $221,109 $66,879 16.8x 15.0x 2.0x 2.1%
BB&T Corporation 220,340 156,135 142,794 38,988 15.9x 14.4x 2.4x 2.7%
SunTrust Banks, Inc. 208,252 162,737 144,264 29,338 15.3x 13.9x 1.8x 2.6%
Citizens Financial Group, Inc. 151,356 113,235 110,151 20,024 15.8x 14.5x 1.6x 1.8%
Fifth Third Bancorp 142,264 101,452 91,883 21,527 12.2x 14.9x 1.7x 2.1%
KeyCorp 136,733 103,446 86,492 20,411 13.8x 12.5x 1.8x 2.2%
Regions Financial Corporation 123,271 97,591 79,356 19,244 16.6x 14.7x 1.8x 2.2%
M&T Bank Corporation 120,402 93,513 87,354 25,430 18.4x 17.1x 2.5x 1.8%
Comerica Incorporated 72,017 57,819 49,209 14,489 17.5x 15.4x 2.0x 1.4%
Zions Bancorporation 65,564 52,099 44,156 9,897 17.8x 15.8x 1.6x 1.3%
CIT Group 49,336 29,595 35,230 6,542 16.8x 14.0x 1.0x 1.3%
Median $136,733 $101,452 $87,354 $20,411 16.6x 14.7x 1.8x 2.1%
Huntington Bancshares Incorporated $101,988 $78,445 $68,587 $15,566 14.7x 13.5x 2.1x 3.1%
Source: SNL, data as of 11/30/17
22
Reconciliation
Efficiency Ratio, ROTCE, and ROCE
($ in millions) GAAP Adjustment (1) Adjusted
YTD:
Noninterest expense $2,082 $155 (2) $1,927
Amortization of intangibles $43 -- $43
Noninterest expense less amortization of intangibles A $2,040 $1,884
Total revenue (FTE) $3,237 ($2) $3,235
Securities gains $0 -- $0
Total revenue (FTE) less securities gains B $3,237 $3,235
Efficiency ratio A / B 63% 58%
Net income applicable to common shares C $698 $99 (3) $797
Less: Amortization of intangibles (net of deferred tax) D $28 (3) -- $28 (3)
Net income applicable to common shares less amortization of intangibles C + D = E $726 $825
Average tangible common equity F $7,277 -- $7,277
Average common equity G $9,517 -- $9,517
Return on average tangible common equity (ROTCE): E / F * 4/3 13% 15%
Return on average common equity (ROCE): C / G * 4/3 10% 11%
(2) Pre-tax (3) After-tax
(1) Significant items related to FirstMerit acquisition related net expenses
23
Reconciliation
Pretax Pre-Provision Net Revenue (PPNR)
($ in millions) YTD 17 2016 2015 2014 2013
Net interest income – FTE $2,269 $2,412 $1,983 $1,865 $1,732
Noninterest income 968 1,151 1,039 961 1,012
Total revenue 3,237 3,563 3,022 2,826 2,744
Less: significant items 2 1 3 1 0
Less: gain on securities 0 0 1 18 0
Total revenue – adjusted A 3,235 3,562 3,018 2,807 2,744
Noninterest expense 2,082 2,408 1,976 1,882 1,758
Add: provision for unfunded loans (19) 21 11 (2) 22
Less: significant items 154 239 58 65 (10)
Noninterest expense – adjusted B 1,909 2,191 1,929 1,815 1,791
Pretax pre-provision net revenue (PPNR) A - B $1,326 $1,372 $1,089 $1,011 $953
Risk-weighted assets (RWA) $78,631 $78,263 $58,420 $54,479 $49,690
PPNR as % of RWA 2.25% 1.75% 1.86% 1.86% 1.92%
Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be
helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are
used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can
be found in this document, the earnings press release, or the Form 8-K related to this document, all of which can be found
on Huntington’s website at www.huntington-ir.com.
Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for
analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or
year-over-year amounts. For example, loan and deposit growth rates, as well as net charge-off percentages, are most often
expressed in terms of an annual rate like 8%. As such, a 2% growth rate for a quarter would represent an annualized 8%
growth rate.
Fully-Taxable Equivalent Interest Income and Net Interest Margin
Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this
income had been taxable at statutory rates. This adjustment puts all earning assets, most notably tax-exempt municipal
securities and certain lease assets, on a common basis that facilitates comparison of results to results of competitors.
Earnings per Share Equivalent Data
Significant income or expense items may be expressed on a per common share basis. This is done for analytical and
decision-making purposes to better discern underlying trends in total corporate earnings per share performance excluding
the impact of such items. Investors may also find this information helpful in their evaluation of the company’s financial
performance against published earnings per share mean estimate amounts, which typically exclude the impact of Significant
Items. Earnings per share equivalents are usually calculated by applying an effective tax rate to a pre-tax amount to derive
an after-tax amount, which is divided by the average shares outstanding during the respective reporting period. Occasionally,
when the item involves special tax treatment, the after-tax amount is disclosed separately, with this then being the amount
used to calculate the earnings per share equivalent.
Rounding
Please note that columns of data in this document may not add due to rounding.
Basis of Presentation
24
Do we
consolidate
this and
next slide?
Significant Items
From time to time, revenue, expenses, or taxes are impacted by items judged by Management to be outside of ordinary
banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually
large that their outsized impact is believed by Management at that time to be infrequent or short term in nature. We refer
to such items as “Significant Items”. Most often, these Significant Items result from factors originating outside the
company – e.g., regulatory actions/assessments, windfall gains, changes in accounting principles, one-time tax
assessments/refunds, litigation actions, etc. In other cases they may result from Management decisions associated with
significant corporate actions out of the ordinary course of business – e.g., merger/restructuring charges, recapitalization
actions, goodwill impairment, etc.
Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in
market and economic environment conditions, as a general rule volatility alone does not define a Significant Item. For
example, changes in the provision for credit losses, gains/losses from investment activities, asset valuation write-downs,
etc., reflect ordinary banking activities and are, therefore, typically excluded from consideration as a Significant Item.
Management believes the disclosure of “Significant Items”, when appropriate, aids analysts/investors in better
understanding corporate performance and trends so that they can ascertain which of such items, if any, they may wish
to include/exclude from their analysis of the company’s performance - i.e., within the context of determining how that
performance differed from their expectations, as well as how, if at all, to adjust their estimates of future performance
accordingly. To this end, Management has adopted a practice of listing “Significant Items” in its external disclosure
documents (e.g., earnings press releases, quarterly performance discussions, investor presentations, Forms 10-Q and
10-K).
“Significant Items” for any particular period are not intended to be a complete list of items that may materially impact
current or future period performance. A number of items could materially impact these periods, including those
described in Huntington’s 2016 Annual Report on Form 10-K and other factors described from time to time in
Huntington’s other filings with the Securities and Exchange Commission.
Basis of Presentation
25
Welcome
©2017 Huntington Bancshares Incorporated. All rights reserved. (NASDAQ: HBAN)
Mark A. Muth
Director of Investor Relations
Office: 614.480.4720
E-mail: mark.muth@huntington.com
For additional information,
please visit:
http://www.huntington.com