Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Review
December 2010
Table of Contents
         
Consolidated Balance Sheets
    1  
 
       
Loans and Leases Composition
    2  
 
       
Deposits Composition
    3  
 
       
Consolidated Quarterly Average Balance Sheets
    4  
 
       
Consolidated Quarterly Net Interest Margin Analysis
    5  
 
       
Selected Quarterly Income Statement Data
    6 - 7  
 
       
Quarterly Mortgage Banking Income
    8  
 
       
Quarterly Credit Reserves Analysis
    9  
 
       
Quarterly Net Charge-Off Analysis
    10  
 
       
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
    11  
 
       
Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
    12  
 
       
Quarterly Common Stock Summary, Capital, and Other Data
    13  
 
       
Consolidated Annual Average Balance Sheets
    14  
 
       
Consolidated Annual Net Interest Margin Analysis
    15  
 
       
Selected Annual Income Statement Data
    16 - 17  
 
       
Annual Mortgage Banking Income
    18  
 
       
Annual Credit Reserves Analysis
    19  
 
       
Annual Net Charge-Off Analysis
    20  
 
       
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
    21  
 
       
Annual Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
    22  
Notes:
The preparation of financial statement data in conformity with accounting principles generally accepted in the United States 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.

 

 


 

Huntington Bancshares Incorporated
Consolidated Balance Sheets
                                         
                            Change  
    2010     2009     December ’10 vs ’09  
(in thousands, except numbers of shares)   December 31,     September 30,     December 31,     Amount     Percent  
            (Unaudited)                          
Assets
                                       
Cash and due from banks
  $ 847,888     $ 1,139,226     $ 1,521,344     $ (673,456 )     (44 )%
Interest bearing deposits in banks
    135,038       274,240       319,375       (184,337 )     (58 )
Trading account securities
    185,404       138,677       83,657       101,747       122  
Loans held for sale
    793,285       744,439       461,647       331,638       72  
Investment securities
    9,895,244       9,723,558       8,587,914       1,307,330       15  
Loans and leases(1)
    38,106,507       37,500,587       36,790,663       1,315,844       4  
Allowance for loan and lease losses
    (1,249,008 )     (1,336,352 )     (1,482,479 )     233,471       (16 )
 
                             
Net loans and leases
    36,857,499       36,164,235       35,308,184       1,549,315       4  
 
                             
Bank owned life insurance
    1,458,224       1,450,335       1,412,333       45,891       3  
Premises and equipment
    491,602       489,349       496,021       (4,419 )     (1 )
Goodwill
    444,268       444,268       444,268              
Other intangible assets
    228,620       243,666       289,098       (60,478 )     (21 )
Accrued income and other assets
    2,482,570       2,434,783       2,630,824       (148,254 )     (6 )
 
                             
Total Assets
  $ 53,819,642     $ 53,246,776     $ 51,554,665     $ 2,264,977       4 %
 
                             
 
                                       
Liabilities and Shareholders’ Equity
                                       
Liabilities
                                       
Deposits(2)
  $ 41,853,898     $ 41,072,371     $ 40,493,927     $ 1,359,971       3 %
Short-term borrowings
    2,040,732       1,859,134       876,241       1,164,491       133  
Federal Home Loan Bank advances
    172,519       23,643       168,977       3,542       2  
Other long-term debt
    2,144,092       2,393,071       2,369,491       (225,399 )     (10 )
Subordinated notes
    1,497,216       1,202,568       1,264,202       233,014       18  
Accrued expenses and other liabilities
    1,130,643       1,128,586       1,045,825       84,818       8  
 
                             
Total Liabilities
    48,839,100       47,679,373       46,218,663       2,620,437       6  
 
                             
 
                                       
Shareholder’s Equity
                                       
Preferred stock — authorized 6,617,808 shares-
                                       
 
                                       
5.00% Series B Non-voting, Cumulative Preferred Stock, par value of $0.01 and liquidation value per share of $1,000
          1,337,749       1,325,008       (1,325,008 )     (100 )
 
                                       
8.50% Series A Non-cumulative Perpetual Convertible Preferred Stock, par value and liquidiation value per share of $1,000
    362,507       362,507       362,507              
 
                                       
Common stock -
                                       
Par value of $0.01
    8,642       7,180       7,167       1,475       21  
Capital surplus
    7,630,093       6,743,724       6,731,796       898,297       13  
Less treasury shares at cost
    (8,771 )     (8,969 )     (11,465 )     2,694       (23 )
Accumulated other comprehensive income (loss):
                                       
Unrealized losses on investment securities
    (101,717 )     4,568       (103,382 )     1,665       (2 )
Unrealized gains (losses) on cash flow hedging derivatives
    35,710       76,006       58,865       (23,155 )     (39 )
Pension and other postretirement benefit adjustments
    (131,489 )     (108,970 )     (112,468 )     (19,021 )     17  
Retained (deficit) earnings
    (2,814,433 )     (2,846,392 )     (2,922,026 )     107,593       (4 )
 
                             
Total Shareholders’ Equity
    4,980,542       5,567,403       5,336,002       (355,460 )     (7 )
 
                             
Total Liabilities and Shareholders’ Equity
  $ 53,819,642     $ 53,246,776     $ 51,554,665     $ 2,264,977       4 %
 
                             
 
                                       
Common shares authorized (par value of $0.01)
    1,500,000,000       1,500,000,000       1,000,000,000                  
Common shares issued
    864,195,369       718,015,276       716,741,249                  
Common shares outstanding
    863,319,435       717,132,197       715,761,672                  
Treasury shares outstanding
    875,934       883,079       979,577                  
Preferred shares issued
    1,967,071       1,967,071       1,967,071                  
Preferred shares outstanding
    362,507       1,760,578       1,760,578                  
     
(1)  
See page 2 for detail of loans and leases.
 
(2)  
See page 3 for detail of deposits.

 

1


 

Huntington Bancshares Incorporated
Loans and Leases Composition
                                                                                 
    2010     2009  
(dollar amounts in millions)   December 31,     September 30,     June 30,     March 31,     December 31,  
          (Unaudited)     (Unaudited)     (Unaudited)        
 
                                                                               
Ending Balances by Type
                                                                               
Commercial:(1)
                                                                               
Commercial and industrial(2)
  $ 13,063       34 %   $ 12,425       34 %   $ 12,392       34 %   $ 12,245       33 %   $ 12,888       35 %
Commercial real estate:
                                                                               
Construction
    650       2       738       2       1,106       3       1,443       4       1,469       4  
Commercial(2)
    6,001       16       6,174       16       6,078       16       6,013       16       6,220       17  
 
                                                           
Commercial real estate(2)
    6,651       18       6,912       18       7,184       19       7,456       20       7,689       21  
 
                                                           
Total commercial
    19,714       52       19,337       52       19,576       53       19,701       53       20,577       56  
 
                                                           
Consumer:
                                                                               
Automobile loans and leases(3)
    5,614       15       5,385       14       4,847       13       4,403       12       3,390       10  
Home equity
    7,713       20       7,690       21       7,510       20       7,514       20       7,563       21  
Residential mortgage
    4,500       12       4,511       12       4,354       12       4,614       12       4,510       12  
Other loans
    566       1       578       1       683       2       700       3       751       1  
 
                                                           
Total consumer
    18,393       48       18,164       48       17,394       47       17,231       47       16,214       44  
 
                                                           
Total loans and leases
  $ 38,107       100 %   $ 37,501       100 %   $ 36,970       100 %   $ 36,932       100 %   $ 36,791       100 %
 
                                                           
 
                                                                               
Ending Balances by Business Segment
                                                                               
Retail and Business Banking
  $ 11,717       31 %   $ 11,804       31 %   $ 11,772       32 %   $ 11,751       32 %   $ 11,792       32 %
Commercial Banking
    7,792       20       7,373       20       7,317       20       7,227       20       7,658       21  
Auto Finance and Commercial Real Estate
    13,283       35       13,167       35       12,931       35       12,739       34       12,139       33  
HWG
    5,176       14       5,066       14       4,864       13       4,722       13       4,670       13  
Treasury / Other(4)
    139             91             86             493       1       532       1  
 
                                                           
Total loans and leases
  $ 38,107       100 %   $ 37,501       100 %   $ 36,970       100 %   $ 36,932       100 %   $ 36,791       100 %
 
                                                           
    2010     2009  
    Fourth     Third     Second     First     Fourth  
Average Balances by Business Segment
                                                                               
Retail and Business Banking
  $ 11,794       31 %   $ 11,817       32 %   $ 11,809       32 %   $ 11,779       32 %   $ 11,899       32 %
Commercial Banking
    7,657       20       7,419       20       7,247       20       7,316       20       7,792       21  
Auto Finance and Commerical Real Estate
    13,299       35       13,085       35       12,890       35       12,817       35       12,348       33  
HWG
    5,050       14       4,894       13       4,729       12       4,631       12       4,569       13  
Treasury / Other(4)
                            414       1       437       1       481       1  
 
                                                           
Total loans and leases
  $ 37,800       100 %   $ 37,215       100 %   $ 37,089       100 %   $ 36,980       100 %   $ 37,089       100 %
 
                                                           
     
(1)  
There were no commercial loans outstanding that would be considered a concentration of lending to a particular industry.
 
(2)  
The 2009 fourth quarter reflected net reclassifications from commercial real estate loans to commercial and industrial loans of $589.0 million.
 
(3)  
The 2010 first quarter included an increase of $730.5 million resulting from the adoption of a new accounting standard to consolidate a previously off-balance automobile loan securitization transaction.
 
(4)  
Comprised primarily of Franklin loans through the 2010 second quarter.

 

2


 

Huntington Bancshares Incorporated
Deposits Composition
                                                                                 
    2010     2009  
(dollar amounts in millions)   December 31,     September 30,     June 30,     March 31,     December 31,  
          (Unaudited)     (Unaudited)     (Unaudited)        
 
                                                                               
Ending Balances by Type
                                                                               
Demand deposits — non-interest bearing
  $ 7,217       17 %   $ 6,926       17 %   $ 6,463       16 %   $ 6,938       17 %   $ 6,907       17 %
Demand deposits — interest bearing
    5,469       13       5,347       13       5,850       15       5,948       15       5,890       15  
Money market deposits
    13,410       32       12,679       31       11,437       29       10,644       26       9,485       23  
Savings and other domestic deposits
    4,643       11       4,613       11       4,652       12       4,666       12       4,652       11  
Core certificates of deposit
    8,525       20       8,765       21       8,974       23       9,441       23       10,453       26  
 
                                                           
Total core deposits
    39,264       93       38,330       93       37,376       95       37,637       93       37,387       92  
Other domestic deposits of $250,000 or more
    675       2       730       2       678       2       684       2       652       2  
Brokered deposits and negotiable CDs
    1,532       4       1,576       4       1,373       3       1,605       4       2,098       5  
Deposits in foreign offices
    383       1       436       1       422             377       1       357       1  
 
                                                           
Total deposits
  $ 41,854       100 %   $ 41,072       100 %   $ 39,849       100 %   $ 40,303       100 %   $ 40,494       100 %
 
                                                           
 
                                                                               
Total core deposits:
                                                                               
Commercial
  $ 12,476       32 %   $ 12,262       32 %   $ 11,515       31 %   $ 11,844       31 %   $ 11,368       30 %
Personal
    26,788       68       26,068       68       25,861       69       25,793       69       26,019       70  
 
                                                           
Total core deposits
  $ 39,264       100 %   $ 38,330       100 %   $ 37,376       100 %   $ 37,637       100 %   $ 37,387       100 %
 
                                                           
 
                                                                               
Ending Balances by Business Segment:
                                                                               
Retail and Business Banking
  $ 29,298       70 %   $ 28,808       70 %   $ 28,542       72 %   $ 28,335       70 %   $ 28,512       70 %
Commercial Banking
    3,538       8       3,245       8       2,861       7       3,003       7       3,056       8  
Auto Finance and Commercial Real Estate
    753       2       739       2       725       2       653       2       618       2  
HWG
    7,449       18       7,184       17       6,734       17       7,134       18       6,749       17  
Treasury / Other(1)
    816       2       1,096       3       987       2       1,178       3       1,559       4  
 
                                                           
Total deposits
  $ 41,854       100 %   $ 41,072       100 %   $ 39,849       100 %   $ 40,303       100 %   $ 40,494       101 %
 
                                                           
    2010     2009  
    Fourth     Third     Second     First     Fourth  
Average Balances by Business Segment:
                                                                               
Retail and Business Banking
  $ 29,241       70 %   $ 28,874       71 %   $ 28,592       71 %   $ 28,371       71 %   $ 28,381       71 %
Commercial Banking
    3,471       8       3,090       8       3,001       7       3,130       8       3,014       7  
Auto Finance and Commercial Real Estate
    752       2       714       1       672       2       636       1       610       2  
HWG
    7,333       18       6,867       17       6,994       17       6,759       17       6,477       16  
Treasury / Other (1)
    907       2       1,101       3       1,108       3       1,327       3       1,732       4  
 
                                                           
Total deposits
  $ 41,704       100 %   $ 40,646       100 %   $ 40,367       100 %   $ 40,223       100 %   $ 40,214       100 %
 
                                                           
     
(1)  
Comprised primarily of national market deposits.

 

3


 

Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets

(Unaudited)
                                                         
    Average Balances     Change  
    2010     2009     4Q10 vs 4Q09  
(dollar amounts in millions)   Fourth     Third     Second     First     Fourth     Amount     Percent  
Assets
                                                       
Interest bearing deposits in banks
  $ 218     $ 282     $ 309     $ 348     $ 329     $ (111 )     (34 )%
Trading account securities
    297       110       127       96       110       187       170  
Federal funds sold and securities purchased under resale agreements
                            15       (15 )     (100 )
Loans held for sale
    779       663       323       346       470       309       66  
Investment securities:
                                                       
Taxable
    9,747       8,876       8,369       8,027       8,698       1,049       12  
Tax-exempt
    449       365       389       443       136       313       230  
 
                                         
Total investment securities
    10,196       9,241       8,758       8,470       8,834       1,362       15  
Loans and leases:(1)
                                                       
Commercial:
                                                       
Commercial and industrial
    12,767       12,393       12,244       12,314       12,570       197       2  
Commercial real estate:
                                                       
Construction
    716       989       1,279       1,409       1,651       (935 )     (57 )
Commercial
    6,082       6,084       6,085       6,268       6,807       (725 )     (11 )
 
                                         
Commercial real estate
    6,798       7,073       7,364       7,677       8,458       (1,660 )     (20 )
 
                                         
Total commercial
    19,565       19,466       19,608       19,991       21,028       (1,463 )     (7 )
 
                                         
Consumer:
                                                       
Automobile loans and leases
    5,520       5,140       4,634       4,250       3,326       2,194       66  
Home equity
    7,709       7,567       7,544       7,539       7,561       148       2  
Residential mortgage
    4,430       4,389       4,608       4,477       4,417       13        
Other loans
    576       653       695       723       757       (181 )     (24 )
 
                                         
Total consumer
    18,235       17,749       17,481       16,989       16,061       2,174       14  
 
                                         
Total loans and leases
    37,800       37,215       37,089       36,980       37,089       711       2  
Allowance for loan and lease losses
    (1,323 )     (1,384 )     (1,506 )     (1,510 )     (1,029 )     (294 )     29  
 
                                         
Net loans and leases
    36,477       35,831       35,583       35,470       36,060       417       1  
 
                                         
Total earning assets
    49,290       47,511       46,606       46,240       46,847       2,443       5  
 
                                         
Cash and due from banks
    1,187       1,618       1,509       1,761       1,947       (760 )     (39 )
Intangible assets
    679       695       710       725       737       (58 )     (8 )
All other assets
    4,313       4,277       4,384       4,486       3,956       357       9  
 
                                         
Total Assets
  $ 54,146     $ 52,717     $ 51,703     $ 51,702     $ 52,458     $ 1,688       3 %
 
                                         
 
                                                       
Liabilities and Shareholders’ Equity
                                                       
Deposits:
                                                       
Demand deposits — noninterest-bearing
  $ 7,188     $ 6,768     $ 6,849     $ 6,627     $ 6,466     $ 722       11 %
Demand deposits — interest-bearing
    5,317       5,319       5,971       5,716       5,482       (165 )     (3 )
Money market deposits
    13,158       12,336       11,103       10,340       9,271       3,887       42  
Savings and other domestic deposits
    4,640       4,639       4,677       4,613       4,686       (46 )     (1 )
Core certificates of deposit
    8,646       8,948       9,199       9,976       10,867       (2,221 )     (20 )
 
                                         
Total core deposits
    38,949       38,010       37,799       37,272       36,772       2,177       6  
Other domestic deposits of $250,000 or more
    737       690       661       698       667       70       10  
Brokered deposits and negotiable CDs
    1,575       1,495       1,505       1,843       2,353       (778 )     (33 )
Deposits in foreign offices
    443       451       402       410       422       21       5  
 
                                         
Total deposits
    41,704       40,646       40,367       40,223       40,214       1,490       4  
Short-term borrowings
    2,134       1,739       966       927       879       1,255       143  
Federal Home Loan Bank advances
    112       188       212       179       681       (569 )     (84 )
Subordinated notes and other long-term debt
    3,558       3,672       3,836       4,062       3,908       (350 )     (9 )
 
                                         
Total interest bearing liabilities
    40,320       39,477       38,532       38,764       39,216       1,104       3  
 
                                         
All other liabilities
    993       952       924       947       1,042       (49 )     (5 )
Shareholders’ equity
    5,645       5,520       5,398       5,364       5,734       (89 )     (2 )
 
                                         
Total Liabilities and Shareholders’ Equity
  $ 54,146     $ 52,717     $ 51,703     $ 51,702     $ 52,458     $ 1,688       3 %
 
                                         
     
(1)  
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

 

4


 

Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin Analysis

(Unaudited)
                                         
    Average Rates (2)  
    2010     2009  
Fully-taxable equivalent basis(1)   Fourth     Third     Second     First     Fourth  
Assets
                                       
Interest bearing deposits in banks
    0.63 %     0.21 %     0.20 %     0.18 %     0.16 %
Trading account securities
    1.98       1.20       1.74       2.15       1.89  
Federal funds sold and securities purchased under resale agreements
                            0.03  
Loans held for sale
    4.01       5.75       5.02       4.98       5.13  
Investment securities:
                                       
Taxable
    2.42       2.77       2.85       2.94       3.20  
Tax-exempt
    4.59       4.70       4.62       4.37       6.42  
 
                             
Total investment securities
    2.52       2.84       2.93       3.01       3.25  
Loans and leases:(2)(3)
                                       
Commercial:
                                       
Commercial and industrial
    4.94       5.14       5.31       5.60       5.20  
Commercial real estate:
                                       
Construction
    3.07       2.83       2.61       2.66       2.63  
Commercial
    3.92       3.91       3.69       3.60       3.40  
 
                             
Commercial real estate
    3.83       3.76       3.49       3.43       3.25  
 
                             
Total commercial
    4.56       4.64       4.63       4.76       4.41  
 
                             
Consumer:
                                       
Automobile loans and leases
    5.46       5.79       6.46       6.63       7.09  
Home equity
    4.64       4.74       5.26       5.59       5.82  
Residential mortgage
    4.82       4.97       4.70       4.89       5.04  
Other loans
    7.92       7.10       6.84       7.00       6.90  
 
                             
Total consumer
    5.04       5.19       5.49       5.73       5.92  
 
                             
Total loans and leases
    4.79       4.90       5.04       5.21       5.07  
 
                             
Total earning assets
    4.29 %     4.49 %     4.63 %     4.82 %     4.70 %
 
                             
 
                                       
Liabilities and Shareholders’ Equity
                                       
Deposits:
                                       
Demand deposits — noninterest-bearing
    %     %     %     %     %
Demand deposits — interest-bearing
    0.13       0.17       0.22       0.22       0.22  
Money market deposits
    0.77       0.86       0.93       1.00       1.21  
Savings and other domestic deposits
    0.90       0.99       1.07       1.19       1.27  
Core certificates of deposit
    2.11       2.31       2.68       2.93       3.07  
 
                             
Total core deposits
    1.05       1.18       1.33       1.51       1.71  
Other domestic deposits of $250,000 or more
    1.21       1.28       1.37       1.44       1.88  
Brokered deposits and negotiable CDs
    1.53       2.21       2.56       2.49       2.52  
Deposits in foreign offices
    0.17       0.22       0.19       0.19       0.18  
 
                             
Total deposits
    1.06       1.21       1.37       1.55       1.75  
Short-term borrowings
    0.20       0.22       0.21       0.21       0.24  
Federal Home Loan Bank advances
    0.95       1.25       1.93       2.71       1.01  
Subordinated notes and other long-term debt
    2.15       2.15       2.05       2.25       2.67  
 
                             
Total interest bearing liabilities
    1.11       1.25       1.41       1.60       1.80  
 
                             
Net interest rate spread
    3.16       3.24       3.22       3.22       2.90  
Impact of noninterest bearing funds on margin
    0.21       0.21       0.24       0.25       0.29  
 
                             
Net interest margin
    3.37 %     3.45 %     3.46 %     3.47 %     3.19 %
 
                             
     
(1)  
Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 6 for the FTE adjustment.
 
(2)  
Loan, lease, and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
 
(3)  
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

 

5


 

Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
(1)
(Unaudited)
                                                         
    2010     2009     4Q10 vs 4Q09  
(dollar amounts in thousands, except per share amounts)   Fourth     Third     Second     First     Fourth     Amount     Percent  
Interest income
  $ 528,291     $ 534,669     $ 535,653     $ 546,779     $ 551,335     $ (23,044 )     (4 )%
Interest expense
    112,997       124,707       135,997       152,886       177,271       (64,274 )     (36 )
 
                                         
Net interest income
    415,294       409,962       399,656       393,893       374,064       41,230       11  
Provision for credit losses
    86,973       119,160       193,406       235,008       893,991       (807,018 )     (90 )
 
                                         
Net interest income (loss) after provision for credit losses
    328,321       290,802       206,250       158,885       (519,927 )     848,248       N.R.  
 
                                         
Service charges on deposit accounts
    55,810       65,932       75,934       69,339       76,757       (20,947 )     (27 )
Mortgage banking income
    53,170       52,045       45,529       25,038       24,618       28,552       116  
Trust services
    29,394       26,997       28,399       27,765       27,275       2,119       8  
Electronic banking
    28,900       28,090       28,107       25,137       25,173       3,727       15  
Insurance income
    19,678       19,801       18,074       18,860       16,128       3,550       22  
Brokerage income
    16,953       16,575       18,425       16,902       16,045       908       6  
Bank owned life insurance income
    16,113       14,091       14,392       16,470       14,055       2,058       15  
Automobile operating lease income
    10,463       11,356       11,842       12,303       12,671       (2,208 )     (17 )
Securities (losses) gains
    (103 )     (296 )     156       (31 )     (2,602 )     2,499       (96 )
Other income
    33,842       32,552       28,785       29,069       34,426       (584 )     (2 )
 
                                         
Total noninterest income
    264,220       267,143       269,643       240,852       244,546       19,674       8  
 
                                         
Personnel costs
    212,184       208,272       194,875       183,642       180,663       31,521       17  
Outside data processing and other services
    40,943       38,553       40,670       39,082       36,812       4,131       11  
Net occupancy
    26,670       26,718       29,719       24,755       26,273       397       2  
Deposit and other insurance expense
    23,320       23,406       21,736       29,086       24,420       (1,100 )     (5 )
Professional services
    21,021       20,672       35,555       11,530       25,146       (4,125 )     (16 )
Equipment
    22,060       21,651       21,585       20,624       20,454       1,606       8  
Marketing
    16,168       20,921       6,138       22,697       9,074       7,094       78  
Amortization of intangibles
    15,046       15,145       15,141       15,146       17,060       (2,014 )     (12 )
OREO and foreclosure expense
    10,502       12,047       6,434       10,066       18,520       (8,018 )     (43 )
Automobile operating lease expense
    8,142       9,159       8,580       11,153       10,440       (2,298 )     (22 )
Goodwill impairment
                                         
Gain on early extinguishment of debt (2)
                            (73,615 )     73,615       (100 )
Other expense
    38,537       30,765       33,377       30,312       27,349       11,188       41  
 
                                         
Total noninterest expense
    434,593       427,309       413,810       398,093       322,596       111,997       35  
 
                                         
Income (loss) before income taxes
    157,948       130,636       62,083       1,644       (597,977 )     755,925       N.R.  
Provision (benefit) for income taxes
    35,048       29,690       13,319       (38,093 )     (228,290 )     263,338       N.R.  
 
                                         
Net income (loss)
  $ 122,900     $ 100,946     $ 48,764     $ 39,737     $ (369,687 )   $ 492,587       N.R.  
 
                                         
Dividends on preferred shares
    83,754       29,495       29,426       29,357       29,289       54,465       186  
 
                                         
Net income (loss) applicable to common shares
  $ 39,146     $ 71,451     $ 19,338     $ 10,380     $ (398,976 )   $ 438,122       N.R.  
 
                                         
 
                                                       
Average common shares — basic
    757,924       716,911       716,580       716,320       715,336       42,588       6 %
Average common shares — diluted (3)
    760,582       719,567       719,387       718,593       715,336       45,246       6  
 
                                                       
Per common share
                                                       
Net income (loss) — basic
  $ 0.05     $ 0.10     $ 0.03     $ 0.01     $ (0.56 )   $ 0.61       N.R.  
Net income (loss) — diluted
    0.05       0.10       0.03       0.01       (0.56 )     0.61       N.R.  
Cash dividends declared
    0.01       0.01       0.01       0.01       0.01              
 
                                                       
Return on average total assets
    0.90 %     0.76 %     0.38 %     0.31 %     (2.80 )%     3.70 %     N.R.  
Return on average common shareholders’ equity
    3.8       7.4       2.1       1.1       (39.1 )     42.9       N.R.  
Return on average common tangible shareholders’ equity (4)
    5.6       10.0       3.8       2.7       (45.1 )     50.70       N.R.  
Net interest margin (5)
    3.37       3.45       3.46       3.47       3.19       0.18       6  
Efficiency ratio (6)
    61.4       60.6       59.4       60.1       49.0       12.4       25  
Effective tax rate (benefit)
    22.2       22.7       21.5             (38.2 )     60.4       N.R.  
 
                                                       
Revenue — fully-taxable equivalent (FTE)
                                                       
Net interest income
  $ 415,294     $ 409,962     $ 399,656     $ 393,893     $ 374,064     $ 41,230       11  
FTE adjustment
    3,708       2,631       2,490       2,248       2,497       1,211       48  
 
                                         
Net interest income (5)
    419,002       412,593       402,146       396,141       376,561       42,441       11  
Noninterest income
    264,220       267,143       269,643       240,852       244,546       19,674       8  
 
                                         
 
                                                       
Total revenue (5)
  $ 683,222     $ 679,736     $ 671,789     $ 636,993     $ 621,107     $ 62,115       10 %
 
                                         
     
N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.

 

6


 

     
(1)  
Comparisons for presented periods are impacted by a number of factors. Refer to “Significant Items” for additional discussion regarding these key factors.
 
(2)  
The 2009 fourth quarter gain related to the purchase of certain subordinated bank notes.
 
(3)  
For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
 
(4)  
Net income (loss) excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total 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.
 
(5)  
On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
 
(6)  
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).

 

7


 

Huntington Bancshares Incorporated
Quarterly Mortgage Banking Income

(Unaudited)
                                                         
    2010     2009     4Q10 vs 4Q09  
(in thousands, except as noted)   Fourth     Third     Second     First     Fourth     Amount     Percent  
Mortgage Banking Income
                                                       
Origination and secondary marketing
  $ 48,236     $ 35,840     $ 19,778     $ 13,586     $ 16,473     $ 31,763       193 %
Servicing fees
    11,474       12,053       12,178       12,418       12,289       (815 )     (7 )
Amortization of capitalized servicing
    (13,960 )     (13,003 )     (10,137 )     (10,065 )     (10,791 )     (3,169 )     29  
Other mortgage banking income
    4,790       4,966       3,664       3,210       4,466       324       7  
 
                                         
 
                                                       
Subtotal
    50,540       39,856       25,483       19,149       22,437       28,103       125  
 
                                                       
MSR valuation adjustment(1)
    31,319       (12,047 )     (26,221 )     (5,772 )     15,491       15,828       102  
Net trading gains (losses) related to MSR hedging
    (28,689 )     24,236       46,268       11,661       (13,310 )     (15,379 )     116  
 
                                         
Total mortgage banking income
  $ 53,170     $ 52,045     $ 45,530     $ 25,038     $ 24,618     $ 28,552       116 %
 
                                         
 
                                                       
Mortgage originations (in millions)
  $ 1,827     $ 1,619     $ 1,161     $ 869     $ 1,131     $ 696       62 %
Average trading account securities used to hedge MSRs (in millions)
    184       23       28       18       19       165       868  
Capitalized mortgage servicing rights(2)
    196,194       161,594       179,138       207,552       214,592       (18,398 )     (9 )
Total mortgages serviced for others (in millions)(2)
    15,933       15,713       15,954       15,968       16,010       (77 )      
MSR % of investor servicing portfolio
    1.23 %     1.03 %     1.12 %     1.30 %     1.34 %     (0.11 )%     (8 )
 
                                         
 
                                                       
Net Impact of MSR Hedging
                                                       
MSR valuation adjustment(1)
  $ 31,319     $ (12,047 )   $ (26,221 )   $ (5,772 )   $ 15,491     $ 15,828       102 %
Net trading gains (losses) related to MSR hedging
    (28,689 )     24,236       46,268       11,661       (13,310 )     (15,379 )     116  
Net interest income related to MSR hedging
    713       32       58       169       168       545       324  
 
                                         
 
                                                       
Net impact of MSR hedging
  $ 3,343     $ 12,221     $ 20,105     $ 6,058     $ 2,349     $ 994       42 %
 
                                         
     
(1)  
The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
 
(2)  
At period end.

 

8


 

Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis

(Unaudited)
                                         
    2010     2009  
(dollar amounts in thousands)   Fourth     Third     Second     First     Fourth  
 
                                       
Allowance for loan and lease losses, beginning of period
  $ 1,336,352     $ 1,402,160     $ 1,477,969     $ 1,482,479     $ 1,031,971  
Loan and lease losses
    (205,587 )     (221,144 )     (312,954 )     (264,222 )     (471,486 )
Recoveries of loans previously charged off
    33,336       36,630       33,726       25,741       26,739  
 
                             
Net loan and lease losses
    (172,251 )     (184,514 )     (279,228 )     (238,481 )     (444,747 )
 
                             
Provision for loan and lease losses
    84,907       118,788       203,633       233,971       895,255  
Allowance of assets sold
          (82 )     (214 )            
Allowance for loans transferred to held-for-sale
                             
 
                             
Allowance for loan and lease losses, end of period
  $ 1,249,008     $ 1,336,352     $ 1,402,160     $ 1,477,969     $ 1,482,479  
 
                             
Allowance for unfunded loan commitments and letters of credit, beginning of period
  $ 40,061     $ 39,689     $ 49,916     $ 48,879     $ 50,143  
Provision for (Reduction in) unfunded loan commitments and letters of credit losses
    2,066       372       (10,227 )     1,037       (1,264 )
 
                             
Allowance for unfunded loan commitments and letters of credit, end of period
  $ 42,127     $ 40,061     $ 39,689     $ 49,916     $ 48,879  
 
                             
Total allowance for credit losses
  $ 1,291,135     $ 1,376,413     $ 1,441,849     $ 1,527,885     $ 1,531,358  
 
                             
 
                                       
Allowance for loan and lease losses (ALLL) as % of:
                                       
Total loans and leases
    3.28 %     3.56 %     3.79 %     4.00 %     4.03 %
Nonaccrual loans and leases (NALs)
    161       136       117       84       77  
Nonperforming assets (NPAs)
    148       121       89       77       72  
 
                                       
Total allowance for credit losses (ACL) as % of:
                                       
Total loans and leases
    3.39 %     3.67 %     3.90 %     4.14 %     4.16 %
Nonaccrual loans and leases
    166       140       120       87       80  
Nonperforming assets
    153       125       91       80       74  

 

9


 

Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis

(Unaudited)
                                         
    2010     2009  
(dollar amounts in thousands)   Fourth     Third     Second     First     Fourth  
 
                                       
Net charge-offs by loan and lease type:
                                       
Commercial:
                                       
Commercial and industrial
  $ 59,124     $ 62,241     $ 58,128     $ 75,439     $ 109,816  
Commercial real estate:
                                       
Construction
    11,084       17,936       45,562       34,426       85,345  
Commercial
    33,787       45,725       36,169       50,873       172,759  
 
                             
Commercial real estate
    44,871       63,661       81,731       85,299       258,104  
 
                             
Total commercial
    103,995       125,902       139,859       160,738       367,920  
 
                             
Consumer:
                                       
Automobile loans and leases
    7,035       5,570       5,436       8,531       12,928  
Home equity
    29,175       27,827       44,470 (1)     37,901       35,764  
Residential mortgage
    26,775 (3)     18,961       82,848 (2)     24,311       17,789  
Other loans
    5,271       6,254       6,615       7,000       10,346  
 
                             
Total consumer
    68,256       58,612       139,369       77,743       76,827  
 
                             
Total net charge-offs
  $ 172,251     $ 184,514     $ 279,228     $ 238,481     $ 444,747  
 
                             
 
                                       
Net charge-offs — annualized percentages:
                                       
Commercial:
                                       
Commercial and industrial
    1.85 %     2.01 %     1.90 %     2.45 %     3.49 %
Commercial real estate:
                                       
Construction
    6.19       7.25       14.25       9.77       20.68  
Commercial
    2.22       3.01       2.38       3.25       10.15  
 
                             
Commercial real estate
    2.64       3.60       4.44       4.44       12.21  
 
                             
Total commercial
    2.13       2.59       2.85       3.22       7.00  
 
                             
Consumer:
                                       
Automobile loans and leases
    0.51       0.43       0.47       0.80       1.55  
Home equity(1)
    1.51       1.47       2.36       2.01       1.89  
Residential mortgage(2)
    2.42       1.73       7.19       2.17       1.61  
Other loans
    3.66       3.83       3.81       3.87       5.47  
 
                             
Total consumer
    1.50       1.32       3.19       1.83       1.91  
 
                             
Net charge-offs as a % of average loans
    1.82 %     1.98 %     3.01 %     2.58 %     4.80 %
 
                             
     
(1)  
The 2010 second quarter included net charge-offs of $14,678 thousand associated with the transfer of Franklin-related loans to loans held for sale and $1,262 thousand of other Franklin-related net charge-offs.
 
(2)  
The 2010 second quarter included net charge-offs of $60,822 thousand associated with the transfer of Franklin-related loans to loans held for sale and $3,403 thousand of other Franklin-related net charge-offs.
 
(3)  
The 2010 fourth quarter included net charge-offs of $16,389 thousand related to the sale of certain underperforming residential mortgage loans.

 

10


 

Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)
                                         
    2010     2009  
(dollar amounts in thousands)   December 31,     September 30,     June 30,     March 31,     December 31,  
 
                                       
Nonaccrual loans and leases (NALs):
                                       
Commercial and industrial
  $ 346,720     $ 398,353     $ 429,561     $ 511,588     $ 578,414  
Commercial real estate
    363,692       478,754       663,103       826,781       935,812  
Total residential mortgages
    45,010       82,984       86,486       372,950       362,630  
Home equity
    22,526       21,689       22,199       54,789       40,122  
 
                             
 
                                       
Total nonaccrual loans and leases
    777,948       981,780       1,201,349       1,766,108       1,916,978  
 
                                       
Other real estate, net:
                                       
Residential
    31,649       65,775       71,937       68,289       71,427  
Commercial
    35,155       57,309       67,189       83,971       68,717  
 
                             
Total other real estate, net
    66,804       123,084       139,126       152,260       140,144  
Impaired loans held for sale(1)
                242,227             969  
 
                             
Total nonperforming assets
  $ 844,752     $ 1,104,864     $ 1,582,702     $ 1,918,368     $ 2,058,091  
 
                             
 
                                       
Nonperforming Franklin assets:
                                       
Residential mortgage
  $     $     $     $ 297,967     $ 299,670  
Home Equity
                      31,067       15,004  
OREO
    9,477       15,330       24,515       24,423       23,826  
Impaired loans held for sale
                242,227              
 
                             
Total nonperforming Franklin assets
  $ 9,477     $ 15,330     $ 266,742     $ 353,457     $ 338,500  
 
                             
 
                                       
Nonaccrual loans and leases as a % of total loans and leases
    2.04 %     2.62 %     3.25 %     4.78 %     5.21 %
 
                                       
NPA ratio(2)
    2.21       2.94       4.24       5.17       5.57  
                                         
    2010     2009  
    Fourth     Third     Second     First     Fourth  
 
                                       
Nonperforming assets, beginning of period
  $ 1,104,864     $ 1,582,702     $ 1,918,368     $ 2,058,091     $ 2,344,042  
New nonperforming assets
    237,802       278,388       171,595       237,914       494,607  
Franklin impact, net
    (5,853 )     (244,389 )     (86,715 )     14,957       (30,996 )
Returns to accruing status
    (100,051 )     (111,168 )     (78,739 )     (80,840 )     (85,867 )
Loan and lease losses
    (126,047 )     (155,553 )     (173,159 )     (185,387 )     (391,635 )
OREO losses
    (5,117 )     (5,302 )     2,483       (4,160 )     (7,394 )
Payments
    (191,296 )     (213,095 )     (140,881 )     (107,640 )     (222,790 )
Sales
    (69,550 )     (26,719 )     (30,250 )     (14,567 )     (41,876 )
 
                             
Nonperforming assets, end of period
  $ 844,752     $ 1,104,864     $ 1,582,702     $ 1,918,368     $ 2,058,091  
 
                             
     
(1)  
The June 30, 2010, figure represented NALs associated with the transfer of Franklin-related residential mortgage and home equity loans to loans held for sale. The December 31, 2009, figure primarily represented impaired loans obtained from the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.
 
(2)  
Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, and net other real estate.

 

11


 

Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans

(Unaudited)
                                         
    2010     2009  
(dollar amounts in thousands)   December 31,     September 30,     June 30,     March 31,     December 31,  
 
                                       
Accruing loans and leases past due 90 days or more:
                                       
Commercial and industrial
  $     $     $     $ 475     $  
Commercial real estate
                             
Residential mortgage (excluding loans guaranteed by the U.S. Government)
    53,983       56,803       47,036       72,702       78,915  
Home equity
    23,497       27,160       26,797       29,438       53,343  
Other loans and leases
    10,177       11,423       9,533       10,598       13,400  
 
                             
Total, excl. loans guaranteed by the U.S. Government
    87,657       95,386       83,366       113,213       145,658  
Add: loans guaranteed by U.S. Government
    98,288       94,249       95,421       96,814       101,616  
 
                             
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government
  $ 185,945     $ 189,635     $ 178,787     $ 210,027     $ 247,274  
 
                             
 
                                       
Ratios:
                                       
 
                                       
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
    0.23 %     0.25 %     0.23 %     0.31 %     0.40 %
 
                                       
Guaranteed by U.S. Government, as a percent of total loans and leases
    0.26 %     0.26 %     0.26 %     0.26 %     0.28 %
 
                                       
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
    0.49 %     0.51 %     0.49 %     0.57 %     0.68 %
 
                                       
Accruing troubled debt restructured loans
                                       
Commercial
  $ 171,830     $ 157,971     $ 141,353     $ 117,667     $ 157,049  
Total residential mortgages
    313,020       287,481       269,570       242,870       219,639  
Other
    76,586       73,210       65,061       62,148       52,871  
 
                             
Total accruing troubled debt restructured loans
  $ 561,436     $ 518,662     $ 475,984     $ 422,685     $ 429,559  
 
                             

 

12


 

Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Capital, and Other Data

(Unaudited)
Quarterly common stock summary
                                         
    2010     2009  
(dollar amounts in thousands, except per share amounts)   Fourth     Third     Second     First     Fourth  
 
                                       
Common stock price, per share
                                       
High(1)
  $ 7.000     $ 6.450     $ 7.400     $ 5.810     $ 4.770  
Low(1)
    5.430       5.040       5.260       3.650       3.500  
Close
    6.870       5.690       5.540       5.390       3.650  
Average closing price
    6.050       5.787       6.130       4.840       3.970  
 
                                       
Dividends, per share
                                       
Cash dividends declared per common share
  $ 0.01     $ 0.01     $ 0.01     $ 0.01     $ 0.01  
 
                                       
Common shares outstanding
                                       
Average — basic
    757,924       716,911       716,580       716,320       715,336  
Average — diluted(2)
    760,582       719,567       719,387       718,593       715,336  
Ending
    863,319       717,132       716,623       716,557       715,762  
 
                                       
Book value per common share
  $ 5.35     $ 5.39     $ 5.22     $ 5.13     $ 5.10  
Tangible book value per common share(3)
    4.66       4.55       4.37       4.26       4.21  
Capital data
                                         
    2010     2009  
(dollar amounts in millions)   December 31,     September 30,     June 30,     March 31,     December 31,  
 
                                       
Calculation of tangible equity / asset ratio:
                                       
Total shareholders’ equity
  $ 4,981     $ 5,567     $ 5,438     $ 5,370     $ 5,336  
Less: goodwill
    (444 )     (444 )     (444 )     (444 )     (444 )
Less: other intangible assets
    (229 )     (244 )     (259 )     (274 )     (289 )
Add: related deferred tax liability(3)
    80       85       91       95       101  
 
                             
Total tangible equity
    4,388       4,964       4,826       4,747       4,704  
Less: Preferred equity
    (363 )     (1,700 )     (1,696 )     (1,692 )     (1,688 )
 
                             
Total tangible common equity
  $ 4,025     $ 3,264     $ 3,130     $ 3,055     $ 3,016  
 
                             
 
                                       
Total assets
  $ 53,820     $ 53,247     $ 51,771     $ 51,867     $ 51,555  
Less: goodwill
    (444 )     (444 )     (444 )     (444 )     (444 )
Less: other intangible assets
    (229 )     (244 )     (259 )     (274 )     (289 )
Add: related deferred tax liability(3)
    80       85       91       95       101  
 
                             
Total tangible assets
  $ 53,227     $ 52,644     $ 51,159     $ 51,244     $ 50,923  
 
                             
 
                                       
Tangible equity / tangible asset ratio
    8.24 %     9.43 %     9.43 %     9.26 %     9.24 %
Tangible common equity / tangible asset ratio
    7.56       6.20       6.12       5.96       5.92  
 
                                       
Other capital data:
                                       
Total risk-weighted assets
  $ 43,678     $ 42,759     $ 42,486     $ 42,418     $ 42,816  
 
                                       
Tier 1 leverage ratio(4)
    9.41 %     10.54 %     10.45 %     10.05 %     10.09 %
Tier 1 common risk-based capital ratio(4)
    9.25       7.39       7.06       6.55       6.76  
Tier 1 risk-based capital ratio(4)
    11.50       12.82       12.51       12.00       12.15  
Total risk-based capital ratio(4)
    14.39       15.08       14.79       14.31       14.55  
 
                                       
Tangible common equity / risk-weighted assets ratio
    9.22       7.63       7.37       7.20       7.04  
 
                                       
Other data:
                                       
Number of employees (full-time equivalent)
    11,341       11,279       11,117       10,678       10,272  
Number of domestic full-service branches(5)
    620       617       617       617       611  
     
(1)  
High and low stock prices are intra-day quotes obtained from NASDAQ.
 
(2)  
For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
 
(3)  
Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
 
(4)  
December 31, 2010, figures are estimated. Based on an interim decision by the banking agencies on December 14, 2006, Huntington has excluded the impact of adopting ASC Topic 715, “Compensation — Retirement Benefits”, from the regulatory capital calculations.
 
(5)  
Includes 9 Private Financial Group offices.

 

13


 

Huntington Bancshares Incorporated
Consolidated Annual Average Balance Sheets

(Unaudited)
                                                         
    Annual Average Balances  
            Change from 2009             Change from 2008        
(dollar amounts in millions)   2010     Amount     %     2009     Amount     %     2008  
Assets
                                                       
Interest bearing deposits in banks
  $ 289     $ (72 )     (20 )%   $ 361     $ 58       19 %   $ 303  
Trading account securities
    158       13       9       145       (945 )     (87 )     1,090  
Federal funds sold and securities purchased under resale agreements
          (10 )     (100 )     10       (425 )     (98 )     435  
Loans held for sale
    529       (53 )     (9 )     582       166       40       416  
Investment securities:
                                                       
Taxable
    8,760       2,659       44       6,101       2,223       57       3,878  
Tax-exempt
    411       197       92       214       (491 )     (70 )     705  
 
                                         
Total investment securities
    9,171       2,856       45       6,315       1,732       38       4,583  
Loans and leases:(1)
                                                       
Commercial:
                                                       
Commercial and industrial
    12,431       (705 )     (5 )     13,136       (452 )     (3 )     13,588  
Commercial real estate:
                                                       
Construction
    1,096       (762 )     (41 )     1,858       (203 )     (10 )     2,061  
Commercial
    6,129       (1,169 )     (16 )     7,298       (373 )     (5 )     7,671  
 
                                         
Commercial real estate
    7,225       (1,931 )     (21 )     9,156       (576 )     (6 )     9,732  
 
                                         
Total commercial
    19,656       (2,636 )     (12 )     22,292       (1,028 )     (4 )     23,320  
 
                                         
Consumer:
                                                       
Automobile loans and leases
    4,890       1,344       38       3,546       (981 )     (22 )     4,527  
Home equity
    7,590                   7,590       186       3       7,404  
Residential mortgage
    4,476       (66 )     (1 )     4,542       (476 )     (9 )     5,018  
Other loans
    661       (61 )     (8 )     722       31       4       691  
 
                                         
Total consumer
    17,617       1,217       7       16,400       (1,240 )     (7 )     17,640  
 
                                         
Total loans and leases
    37,273       (1,419 )     (4 )     38,692       (2,268 )     (6 )     40,960  
Allowance for loan and lease losses
    (1,430 )     (474 )     50       (956 )     (261 )     38       (695 )
 
                                         
Net loans and leases
    35,843       (1,893 )     (5 )     37,736       (2,529 )     (6 )     40,265  
 
                                         
Total earning assets
    47,420       1,315       3       46,105       (1,682 )     (4 )     47,787  
 
                                         
Cash and due from banks
    1,518       (614 )     (29 )     2,132       1,174       123       958  
Intangible assets
    702       (700 )     (50 )     1,402       (2,044 )     (59 )     3,446  
All other assets
    4,364       607       16       3,757       332       10       3,425  
 
                                         
Total Assets
  $ 52,574     $ 134       %   $ 52,440     $ (2,481 )     (5 )%   $ 54,921  
 
                                         
 
                                                       
Liabilities and Shareholders’ Equity
                                                       
Deposits:
                                                       
Demand deposits — noninterest-bearing
  $ 6,859     $ 802       13 %   $ 6,057     $ 962       19 %   $ 5,095  
Demand deposits — interest-bearing
    5,579       763       16       4,816       813       20       4,003  
Money market deposits
    11,743       4,527       63       7,216       1,123       18       6,093  
Savings and other domestic deposits
    4,642       (239 )     (5 )     4,881       (266 )     (5 )     5,147  
Core certificates of deposit
    9,188       (2,756 )     (23 )     11,944       307       3       11,637  
 
                                         
Total core deposits
    38,011       3,097       9       34,914       2,939       9       31,975  
Other domestic deposits of $250,000 or more
    697       (144 )     (17 )     841       (802 )     (49 )     1,643  
Brokered deposits and negotiable CDs
    1,603       (1,544 )     (49 )     3,147       (96 )     (3 )     3,243  
Deposits in foreign offices
    427       (60 )     (12 )     487       (488 )     (50 )     975  
 
                                         
Total deposits
    40,738       1,349       3       39,389       1,553       4       37,836  
Short-term borrowings
    1,446       513       55       933       (1,441 )     (61 )     2,374  
Federal Home Loan Bank advances
    173       (1,063 )     (86 )     1,236       (2,045 )     (62 )     3,281  
Subordinated notes and other long-term debt
    3,780       (541 )     (13 )     4,321       227       6       4,094  
 
                                         
Total interest bearing liabilities
    39,278       (544 )     (1 )     39,822       (2,668 )     (6 )     42,490  
 
                                         
All other liabilities
    956       182       24       774       (166 )     (18 )     940  
Shareholders’ equity
    5,481       (306 )     (5 )     5,787       (609 )     (10 )     6,396  
 
                                         
Total Liabilities and Shareholders’ Equity
  $ 52,574     $ 134       %   $ 52,440     $ (2,481 )     (5 )%   $ 54,921  
 
                                         
     
(1)  
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

 

14


 

Huntington Bancshares Incorporated
Consolidated Annual Net Interest Margin Analysis
(Unaudited)
                         
    Annual Average Rates(2)  
Fully-taxable equivalent basis(1)   2010     2009     2008  
Assets
                       
Interest bearing deposits in banks
    0.28 %     0.32 %     2.53 %
Trading account securities
    1.82       2.99       5.28  
Federal funds sold and securities purchased under resale agreements
          0.13       2.46  
Loans held for sale
    4.85       5.15       6.01  
Investment securities:
                       
Taxable
    2.73       4.10       5.62  
Tax-exempt
    4.56       6.68       6.83  
 
                 
Total investment securities
    2.81       4.18       5.81  
Loans and leases:(3)
                       
Commercial:
                       
Commercial and industrial
    5.31       5.06       5.67  
Commercial real estate:
                       
Construction
    2.79       2.74       5.05  
Commercial
    3.83       3.59       5.61  
 
                 
Commercial real estate
    3.67       3.42       5.49  
 
                 
Total commercial
    4.71       4.39       5.59  
 
                 
Consumer:
                       
Automobile loans and leases
    6.04       7.12       6.88  
Home equity
    5.06       5.62       6.42  
Residential mortgage
    4.84       5.23       5.83  
Other loans
    7.18       7.78       9.85  
 
                 
Total consumer
    5.35       5.93       6.50  
 
                 
Total loans and leases
    5.02       5.04       5.99  
 
                 
Total earning assets
    4.55 %     4.88 %     5.90 %
 
                 
 
                       
Liabilities and Shareholders’ Equity
                       
Deposits:
                       
Demand deposits — noninterest-bearing
    %     %     %
Demand deposits — interest-bearing
    0.19       0.20       0.55  
Money market deposits
    0.88       1.16       1.93  
Savings and other domestic deposits
    1.04       1.37       1.95  
Core certificates of deposit
    2.52       3.43       4.26  
 
                 
Total core deposits
    1.26       1.97       2.74  
Other domestic deposits of $250,000 or more
    1.32       2.48       3.77  
Brokered deposits and negotiable CDs
    2.21       2.64       3.66  
Deposits in foreign offices
    0.20       0.19       1.56  
 
                 
Total deposits
    1.30       2.02       2.85  
Short-term borrowings
    0.21       0.25       1.78  
Federal Home Loan Bank advances
    1.80       1.04       3.29  
Subordinated notes and other long-term debt
    2.15       2.88       4.51  
 
                 
Total interest bearing liabilities
    1.34       2.04       2.98  
 
                 
 
                       
Net interest rate spread
    3.21       2.84       2.92  
Impact of noninterest bearing funds on margin
    0.23       0.27       0.33  
 
                 
Net interest margin
    3.44 %     3.11 %     3.25 %
 
                 
     
(1)  
Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 16 for the FTE adjustment.
 
(2)  
Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
 
(3)  
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

 

15


 

Huntington Bancshares Incorporated
Selected Annual Income Statement Data
(1)
(Unaudited)
                                                         
    Year Ended December 31,  
            Change from 2009             Change from 2008        
(dollar amounts in thousands, except per share amounts)   2010     Amount     %     2009     Amount     %     2008  
Interest income
  $ 2,145,392     $ (92,750 )     (4 )%   $ 2,238,142     $ (560,180 )     (20 )%   $ 2,798,322  
Interest expense
    526,587       (287,268 )     (35 )     813,855       (452,776 )     (36 )     1,266,631  
 
                                         
Net interest income
    1,618,805       194,518       14       1,424,287       (107,404 )     (7 )     1,531,691  
Provision for credit losses
    634,547       (1,440,124 )     (69 )     2,074,671       1,017,208       96       1,057,463  
 
                                         
Net interest income (loss) after provision for credit losses
    984,258       1,634,642       N.R.       (650,384 )     (1,124,612 )     N.R.       474,228  
 
                                         
Service charges on deposit accounts
    267,015       (35,784 )     (12 )     302,799       (5,254 )     (2 )     308,053  
Mortgage banking income
    175,782       63,484       57       112,298       103,304       1,149       8,994  
Trust services
    112,555       8,916       9       103,639       (22,341 )     (18 )     125,980  
Electronic banking
    110,234       10,083       10       100,151       9,884       11       90,267  
Insurance income
    76,413       3,087       4       73,326       702       1       72,624  
Brokerage income
    68,855       4,012       6       64,843       (329 )     (1 )     65,172  
Bank owned life insurance income
    61,066       6,194       11       54,872       96             54,776  
Automobile operating lease income
    45,964       (5,846 )     (11 )     51,810       11,959       30       39,851  
Securities losses
    (274 )     9,975       (97 )     (10,249 )     187,121       (95 )     (197,370 )
Other income
    124,248       (27,907 )     (18 )     152,155       13,364       10       138,791  
 
                                         
Total noninterest income
    1,041,858       36,214       4       1,005,644       298,506       42       707,138  
 
                                         
Personnel costs
    798,973       98,491       14       700,482       (83,064 )     (11 )     783,546  
Outside data processing and other services
    159,248       11,153       8       148,095       17,869       14       130,226  
Net occupancy
    107,862       2,589       2       105,273       (3,155 )     (3 )     108,428  
Deposit and other insurance expense
    97,548       (16,282 )     (14 )     113,830       91,393       407       22,437  
Professional services
    88,778       12,412       16       76,366       26,753       54       49,613  
Equipment
    85,920       2,803       3       83,117       (10,848 )     (12 )     93,965  
Marketing
    65,924       32,875       99       33,049       385       1       32,664  
Amortization of intangibles
    60,478       (7,829 )     (11 )     68,307       (8,587 )     (11 )     76,894  
OREO and foreclosure expense
    39,049       (54,850 )     (58 )     93,899       60,444       181       33,455  
Automobile operating lease expense
    37,034       (6,326 )     (15 )     43,360       12,078       39       31,282  
Goodwill impairment
          (2,606,944 )     (100 )     2,606,944       2,606,944              
Gain on early extinguishment of debt(2)
          147,442       (100 )     (147,442 )     (123,900 )     526       (23,542 )
Other expense
    132,991       24,828       23       108,163       (30,243 )     (22 )     138,406  
 
                                         
Total noninterest expense
    1,673,805       (2,359,638 )     (59 )     4,033,443       2,556,069       173       1,477,374  
 
                                         
Income (loss) before income taxes
    352,311       4,030,494       N.R.       (3,678,183 )     (3,382,175 )     1,143       (296,008 )
Provision (benefit) for income taxes
    39,964       623,968       N.R.       (584,004 )     (401,802 )     221       (182,202 )
 
                                         
Net income (loss)
  $ 312,347     $ 3,406,526       N.R.     $ (3,094,179 )   $ (2,980,373 )     2,619     $ (113,806 )
 
                                         
Dividends on preferred shares
    172,032       (2,724 )     (2 )     174,756       128,356       277.0       46,400  
 
                                         
Net income (loss) applicable to common shares
  $ 140,315     $ 3,409,250       N.R.     $ (3,268,935 )   $ (3,108,729 )     1,940 %   $ (160,206 )
 
                                         
 
                                                       
Average common shares — basic
    726,934       194,132       36 %     532,802       166,647       46 %     366,155  
Average common shares — diluted(3)
    729,532       196,730       37       532,802       166,647       46       366,155  
 
                                                       
Per common share
                                                       
Net income (loss) — basic
  $ 0.19     $ 6.33       N.R.     $ (6.14 )   $ (5.70 )     1,295 %   $ (0.44 )
Net income (loss) — diluted
    0.19       6.33       N.R.       (6.14 )     (5.70 )     1,295       (0.44 )
Cash dividends declared
    0.0400                   0.0400       (0.6225 )     (94 )     0.6625  
 
Return on average total assets
    0.59 %     6.49 %     N.R.       (5.90 )%     (5.69 )%     2,710 %     (0.21 )%
Return on average common shareholders’ equity
    3.7       84.5       N.R.       (80.8 )     (79.0 )     4,389       (1.8 )
Return on average tangible common shareholders’ equity(4)
    5.6       28.0       N.R.       (22.4 )     (18.8 )     522       (3.6 )
Net interest margin(5)
    3.44       0.33       11       3.11       (0.14 )     (4 )     3.25  
Efficiency ratio(6)
    60.4       5.0       9       55.4       (1.6 )     (3 )     57.0  
Effective tax rate (benefit)
    11.3       27.2       N.R.       (15.9 )     45.7       (74 )     (61.6 )
 
                                                       
Revenue — fully taxable equivalent (FTE)
                                                       
Net interest income
  $ 1,618,805     $ 194,518       14 %   $ 1,424,287     $ (107,404 )     (7 )%   $ 1,531,691  
FTE adjustment(5)
    11,077       (395 )     (3 )     11,472       (8,746 )     (43 )     20,218  
 
                                         
Net interest income
    1,629,882       194,123       14       1,435,759       (116,150 )     (7 )     1,551,909  
Noninterest income
    1,041,858       36,214       4       1,005,644       298,506       42       707,138  
 
                                         
Total revenue
  $ 2,671,740     $ 230,337       9 %   $ 2,441,403     $ 182,356       8 %   $ 2,259,047  
 
                                         
     
N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.
 
(1)  
Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” discussion.

 

16


 

     
(2)  
The 2009 gain included $67.4 million related to the purchase of certain trust preferred securities.
 
(3)  
For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
 
(4)  
Net income excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total 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.
 
(5)  
On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
 
(6)  
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).

 

17


 

Huntington Bancshares Incorporated
Annual Mortgage Banking Income

(Unaudited)
                                         
    Year Ended December 31,  
(dollar amounts in thousands, except as noted)   2010     2009     2008     2007     2006  
Mortgage Banking Income
                                       
Origination and secondary marketing
  $ 117,440     $ 94,711     $ 37,257     $ 25,965     $ 18,217  
Servicing fees
    48,123       48,494       45,558       36,012       24,659  
Amortization of capitalized servicing
    (47,165 )     (47,571 )     (26,634 )     (20,587 )     (15,144 )
Other mortgage banking income
    16,629       23,360       16,768       13,198       10,173  
 
                             
Subtotal
    135,027       118,994       72,949       54,588       37,905  
 
                                       
MSR valuation adjustment(1)
    (12,721 )     34,305       (52,668 )     (16,131 )     4,871  
Net trading gains (losses) related to MSR hedging
    53,476       (41,001 )     (11,287 )     (8,653 )     (1,285 )
 
                             
Total mortgage banking income
  $ 175,782     $ 112,298     $ 8,994     $ 29,804     $ 41,491  
 
                             
 
                                       
Mortgage originations (in millions)
  $ 5,476     $ 5,262     $ 3,773     $ 3,493     $ 2,822  
Average trading account securities used to hedge MSRs (in millions)
    64       70       1,031       594       26  
Capitalized mortgage servicing rights(2)
    196,194       214,592       167,438       207,894       131,104  
Total mortgages serviced for others (in millions)(2)
    15,933       16,010       15,754       15,088       8,252  
MSR % of investor servicing portfolio
    1.23 %     1.34 %     1.06 %     1.38 %     1.59 %
 
                             
 
                                       
Net Impact of MSR Hedging
                                       
MSR valuation adjustment(1)
  $ (12,721 )   $ 34,305     $ (52,668 )   $ (16,131 )   $ 4,871  
Net trading gains (losses) related to MSR hedging
    53,476       (41,001 )     (11,287 )     (8,653 )     (1,285 )
Net interest income related to MSR hedging
    972       2,999       33,139       5,797       36  
 
                             
Net impact of MSR hedging
  $ 41,727     $ (3,697 )   $ (30,816 )   $ (18,987 )   $ 3,622  
 
                             
     
(1)  
The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
     
(2)  
At period end.

 

18


 

Huntington Bancshares Incorporated
Annual Credit Reserves Analysis
(Unaudited)
                                         
    Year Ended December 31,  
(dollar amounts in thousands)   2010     2009     2008     2007     2006  
 
                                       
Allowance for loan and lease losses, beginning of period
  $ 1,482,479     $ 900,227     $ 578,442     $ 272,068     $ 268,347  
Acquired allowance for loan and lease losses
                      188,128       23,785  
Loan and lease losses
    (1,003,907 )     (1,561,378 )     (806,330 )     (517,942 )     (119,692 )
Recoveries of loans previously charged off
    129,433       84,791       48,263       40,311       37,316  
 
                             
Net loan and lease losses
    (874,474 )     (1,476,587 )     (758,067 )     (477,631 )     (82,376 )
 
                             
Provision for loan and lease losses
    641,299       2,069,931       1,067,789       628,802       62,312  
Economic reserve transfer
                12,063              
Allowance of assets sold
    (296 )     (9,188 )                  
Allowance for loans transferred to held-for-sale
          (1,904 )           (32,925 )      
 
                             
Allowance for loan and lease losses, end of period
  $ 1,249,008     $ 1,482,479     $ 900,227     $ 578,442     $ 272,068  
 
                             
 
                                       
Allowance for unfunded loan commitments and letters of credit, beginning of period
  $ 48,879     $ 44,139     $ 66,528     $ 40,161     $ 36,957  
Acquired AULC
                      11,541       325  
(Reduction in) Provision for unfunded loan commitments and letters of credit losses
    (6,752 )     4,740       (10,326 )     14,826       2,879  
Economic reserve transfer
                (12,063 )            
 
                             
Allowance for unfunded loan commitments and letters of credit, end of period
  $ 42,127     $ 48,879     $ 44,139     $ 66,528     $ 40,161  
 
                             
Total allowance for credit losses
  $ 1,291,135     $ 1,531,358     $ 944,366     $ 644,970     $ 312,229  
 
                             
 
                                       
Allowance for loan and lease losses (ALLL) as % of:
                                       
Total loans and leases
    3.28 %     4.03 %     2.19 %     1.44 %     1.04 %
Nonaccrual loans and leases (NALs)
    161       77       60       181       189  
Nonperforming assets (NPAs)
    148       72       55       122       141  
 
                                       
Total allowance for credit losses (ACL) as % of:
                                       
Total loans and leases
    3.39 %     4.16 %     2.30 %     1.61 %     1.19 %
Nonaccrual loans and leases (NALs)
    166       80       63       202       217  
Nonperforming assets (NPAs)
    153       74       58       136       161  

 

19


 

Huntington Bancshares Incorporated
Annual Net Charge-Off Analysis

(Unaudited)
                                         
    Year Ended December 31,  
(dollar amounts in thousands)   2010     2009     2008     2007     2006  
 
                                       
Net charge-offs by loan and lease type:
                                       
Commercial:
                                       
Commercial and industrial(1)(2)(3)(4)
  $ 254,932     $ 487,606     $ 526,165     $ 345,840     $ 20,868  
Commercial real estate:
                                       
Construction
    109,008       192,706       6,626       11,854       3,553  
Commercial
    166,554       490,025       62,114       27,250       3,230  
 
                             
Commercial real estate
    275,562       682,731       68,740       39,104       6,783  
 
                             
Total commercial
    530,494       1,170,337       594,905       384,944       27,651  
 
                             
Consumer:
                                       
Automobile loans and leases
    26,572       56,332       54,565       27,692       18,775  
Home equity(5)
    139,373       106,176       67,556       34,426       21,854  
Residential mortgage(6)(7)
    152,895       110,202       21,247       11,371       4,505  
Other loans
    25,140       33,540       19,794       19,198       9,591  
 
                             
Total consumer
    343,980       306,250       163,162       92,687       54,725  
 
                             
Total net charge-offs
  $ 874,474     $ 1,476,587     $ 758,067     $ 477,631     $ 82,376  
 
                             
 
                                       
Net charge-offs — annualized percentages:
                                       
Commercial:
                                       
Commercial and industrial’(1)(2)(3)(4)
    2.05 %     3.71 %     3.87 %     3.25 %     0.28 %
Commercial real estate:
                                       
Construction
    9.95       10.37       0.32       0.77       0.28  
Commercial
    2.72       6.71       0.81       0.52       0.10  
 
                             
Commercial real estate
    3.81       7.46       0.71       0.57       0.15  
 
                             
Total commercial
    2.70       5.25       2.55       2.21       0.23  
 
                             
Consumer:
                                       
Automobile loans and leases
    0.54       1.59       1.21       0.67       0.46  
Home equity(5)
    1.84       1.40       0.91       0.56       0.44  
Residential mortgage(6)(7)
    3.42       2.43       0.42       0.23       0.10  
Other loans
    3.80       4.65       2.86       3.63       2.18  
 
                             
Total consumer
    1.95       1.87       0.92       0.59       0.39  
 
                             
Net charge-offs as a % of average loans
    2.35 %     3.82 %     1.85 %     1.44 %     0.32 %
 
                             
     
(1)  
2010 included net recoveries associated with the Franklin relationship totaling $5.1 million.
 
(2)  
2009 included net charge-offs associated with the Franklin relationship totaling $114.5 million.
 
(3)  
2008 included net charge-offs associated with the Franklin relationship totaling $423.3 million.
 
(4)  
2007 included net charge-offs associated with the Franklin restructuring totaling $397.0 million. These net charge-offs were reduced by the unamortized discount with the loans and by other amounts received by Franklin totaling $88.5 million, resulting in net charge-offs totaling $308.5 million.
 
(5)  
2010 included net charge-offs of $14.7 million associated with the transfer of Franklin-related loans to loans held for sale and $6.1 million of other Franklin-related net charge-offs.
 
(6)  
2010 included net charge-offs of $60.8 million associated with the transfer of Franklin-related loans to loans held for sale and $10.5 million of other Franklin-related net charge-offs.
 
(7)  
Effective in 2009, a change to accelerate the timing of when a partial charge-off is recognized was made. This change resulted in $32.0 million of charge-offs in 2009.

 

20


 

Huntington Bancshares Incorporated
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)
                                         
    December 31,  
(dollar amounts in thousands)   2010     2009     2008     2007     2006  
 
                                       
Nonaccrual loans and leases (NALs):
                                       
Commercial and industrial (1)
  $ 346,720     $ 578,414     $ 932,648     $ 87,679     $ 58,393  
Commercial real estate
    363,692       935,812       445,717       148,467       37,947  
Total residential mortgages (1)
    45,010       362,630       98,951       59,557       32,527  
Home equity
    22,526       40,122       24,831       24,068       15,266  
 
                             
Total nonaccrual loans and leases
    777,948       1,916,978       1,502,147       319,771       144,133  
 
                                       
Other real estate, net:
                                       
Residential
    31,649       71,427       63,058       60,804       47,898  
Commercial
    35,155       68,717       59,440       14,467       1,589  
 
                             
Total other real estate, net
    66,804       140,144       122,498       75,271       49,487  
Impaired loans held for sale (2)
          969       12,001       73,481        
Other NPAs (3)
                      4,379        
 
                             
Total nonperforming assets
  $ 844,752     $ 2,058,091     $ 1,636,646     $ 472,902     $ 193,620  
 
                             
 
                                       
Nonperforming Franklin assets:
                                       
Commercial
  $     $     $ 650,225     $     $  
Residential mortgage
          299,670                    
Home Equity
          15,004                    
OREO
    9,477       23,826                    
 
                             
Total nonperforming Franklin assets
  $ 9,477     $ 338,500     $ 650,225     $     $  
 
                             
 
                                       
Nonaccrual loans and leases as a % of total loans and leases
    2.04 %     5.21 %     3.66 %     0.80 %     0.55 %
 
                                       
NPA ratio (4)
    2.21       5.57       3.97       1.18       0.74  
 
                                       
                                         
    December 31,  
(dollar amounts in thousands)   2010     2009     2008     2007     2006  
 
 
Nonperforming assets, beginning of period
  $ 2,058,091     $ 1,636,646     $ 472,902     $ 193,620     $ 117,155  
New nonperforming assets
    925,699       2,767,295       1,082,063       468,056       222,043  
Franklin impact, net
    (322,000 )     (311,726 )     650,225              
Acquired nonperforming assets
                      144,492       33,843  
Returns to accruing status
    (370,798 )     (215,336 )     (42,161 )     (24,952 )     (43,999 )
Loan and lease losses
    (640,146 )     (1,148,135 )     (202,249 )     (120,959 )     (45,648 )
OREO losses
    (12,096 )     (62,665 )     (19,582 )     (5,795 )     (543 )
Payments
    (652,912 )     (497,076 )     (194,692 )     (86,093 )     (59,469 )
Sales
    (141,086 )     (110,912 )     (109,860 )     (95,467 )     (29,762 )
 
                             
Nonperforming assets, end of period
  $ 844,752     $ 2,058,091     $ 1,636,646     $ 472,902     $ 193,620  
 
                             
     
(1)  
Franklin loans were reported as commercial accruing restructured loans at December 31, 2007. At December 31, 2008, Franklin loans were reported as nonaccrual commercial and industrial loans. At December 31, 2009, nonaccrual Franklin loans were reported as residential mortgage loans, home equity loans, and OREO, reflecting the 2009 first quarter restructuring.
 
(2)  
Represents impaired loans obtained from the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.
 
(3)  
Other NPAs represent certain investment securities backed by mortgage loans to borrowers with lower FICO scores.
 
(4)  
Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, net other real estate, and other NPAs.

 

21


 

Huntington Bancshares Incorporated
Annual Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans

(Unaudited)
                                         
    December 31,  
(dollar amounts in thousands)   2010     2009     2008     2007     2006  
 
                                       
Accruing loans and leases past due 90 days or more:
                                       
Commercial and industrial
  $     $     $ 10,889     $ 10,474     $ 170  
Commercial real estate
                59,425       25,064       1,711  
Residential mortgage (excluding loans guaranteed by the U.S. Government)
    53,983       78,915       71,553       67,391       35,555  
Home equity
    23,497       53,343       29,039       24,086       13,423  
Other loans and leases
    10,177       13,400       18,039       13,962       6,650  
 
                             
 
                                       
Total, excl. loans guaranteed by the U.S. Government
    87,657       145,658       188,945       140,977       57,509  
 
                                       
Add: loans guaranteed by U.S. Government
    98,288       101,616       82,576       51,174       31,308  
 
                             
 
                                       
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government
  $ 185,945     $ 247,274     $ 271,521     $ 192,151     $ 88,817  
 
                             
Ratios:
                                       
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
    0.23 %     0.40 %     0.46 %     0.35 %     0.22 %
 
                                       
Guaranteed by U.S. Government, as a percent of total loans and leases
    0.26 %     0.28 %     0.20 %     0.13 %     0.12 %
 
                                       
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
    0.49 %     0.68 %     0.66 %     0.48 %     0.34 %
 
                                       
Accruing troubled debt restructured loans
                                       
 
                                       
Commercial
  $ 171,830     $ 157,049     $ 185,333     $ 1,187,368     $  
 
                                       
Total residential mortgages
    313,020       219,639       82,857       32,005       7,496  
Other
    76,586       52,871       41,094              
 
                             
 
                                       
Total accruing troubled debt restructured loans
  $ 561,436     $ 429,559     $ 309,284     $ 1,219,373     $ 7,496  
 
                             

 

22