Exhibit 99.3 [LOGO] HUNTINGTON SECOND QUARTER EARNINGS REVIEW JULY 18, 2002 [LOGO] MEETING PARTICIPANTS Tom Hoaglin - - Chairman, President and Chief Executive Officer Mike McMennamin - - Vice Chairman and Chief Financial Officer Jay Gould - - Sr. Vice President - Investor Relations 2 [LOGO] BASIS OF PRESENTATION - OPERATING BASIS REVISED DEFINITION Reported results for the past five quarters have been significantly impacted by a number of items, primarily related to the strategic restructuring announced in July 2001 and the subsequent sale of the Florida banking operations in the 2002 first quarter. In addition, reported 2002 first quarter results included Florida operations for only half the quarter versus a full quarter for each prior quarter. Therefore, to better understand underlying trends, the following slides and discussion are on an OPERATING basis, which excludes the effect of these items from all prior periods, including the impact of the Florida operations. Please refer to the schedules accompanying the 2002 second quarter earnings press release, as well as the 2002 second quarter Quarterly Financial Review for schedules reconciling reported with operating earnings and additional schedules excluding the impact of the Florida operations. This presentation basis is the same used in prior quarterly review conference calls with the one exception that the impact of the sold Florida banking operations are now EXCLUDED. Refer to Appendix B for selected slides using the prior operating basis definition. 3 [LOGO] RECENT DEVELOPMENTS THIRD QUARTER EVENTS 7/02/02 - Sold J. Rolfe Davis Insurance Agency, Inc. - - Consistent with Florida strategy - - Terms not disclosed - - No material financial impact going forward - - Remain committed to growing insurance business within footprint 7/18/02 - Restructured ownership interest in Huntington Merchant Services, LLC - - Consistent with Florida strategy - - Terms not disclosed - - Estimated $25 million pre-tax ($16 million after tax) gain on sale - - No material financial impact going forward - - Remain committed to growing merchant services business within footprint 4 [LOGO] SECOND QUARTER HIGHLIGHTS Solid financial performance - ----------------------------------- - - EPS of $0.33 met expectations - - 7% annualized growth in loans - - 19% annualized growth in deposits - - Improved credit quality trends - Lower net charge-offs - Lower NPAs - - 2.00% loan loss reserve ratio 5 [LOGO] SECOND QUARTER HIGHLIGHTS Key Accomplishments - ------------------- - - Hired Mary Navarro to head Retail Bank - - Launched new business 401(k) product - - Completed installation and initial training of the new banking office Customer Service System platform - - Installed new teller technology in 13% of the branches completion by year end - - Repurchased 7.3 million shares 8.8 million shares to date 6 [LOGO] FINANCIAL PERFORMANCE 7 [LOGO] 2002 SECOND QUARTER PERFORMANCE HIGHLIGHTS (1) ($MM) - - Net income $81.7 - - Earnings per share $0.33 - - Managed loan growth 7%annualized - - Core deposit growth 19%annualized - - Net interest margin 4.30% - - Efficiency ratio 53.2% - - Net charge-offs - adjusted (2) 0.88% - - NPAs $223.2 - - Loan loss reserve / loans 2.00% - - Tangible common equity ratio 8.41% (1) Excludes impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 (2) Excludes impact of net charge-offs on exited portfolios 8 [LOGO] SECOND QUARTER 2002 EARNINGS
FLORIDA ($MM) REPORTED OPERATIONS (1) OPERATING -------- -------------- --------- Net interest income $ 241.9 $ 241.9 Provision (53.9) (53.9) Non-interest income 117.0 $ 2.7 114.3 Securities gains 1.0 1.0 Non-interest expense (192.1) (1.9) (190.2) ------- ------ ------ Pretax income 113.9 0.8 113.1 ------- ------ ------ Net income $ 82.2 $ 0.5 $ 81.7 ------- ------ ------ EPS $ 0.33 $ 0.00 $ 0.33 ======= ====== ======
(1) J. Rolfe Davis Insurance Agency, Inc. 9 [LOGO]
PERFORMANCE HIGHLIGHTS (1) 2Q02 1Q02 2Q01 ---- ---- ---- EPS - operating $0.33 $0.32 $0.30 ROA 1.31% 1.30% 1.20% ROE 14.0 13.6 12.6 Efficiency ratio (2) 53.2 54.1 56.0 NIM 4.30 4.21 4.03 Tangible common equity/assets (3) 8.41 9.03 5.97
(1) Operating basis - Excludes after tax impact of restructuring and other charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain on the sale of Florida operations in 1Q02, the impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 (2) Excludes intangible amortization of $0.3 MM in 1Q02 and $0.2 MM in 2Q02 (3) Period end. 10 [LOGO] 2002 SECOND QUARTER EARNINGS (1)
CHANGE B (W) VS. -------------------------- 1Q02 2Q01 --------------- ($MM) 2Q02 1Q02 2Q01 Amt. Amt. Pct. ---- ---- ---- ---- ---- ---- Net interest income $241.9 $233.1 $225.9 $ 8.8 $16.0 7.1% Provision (53.9) (50.6) (41.9) (3.3) (12.0) (28.5) Non-interest income 114.3 115.0 110.9 (0.7) 3.4 3.1 Securities gains 1.0 0.5 2.7 0.5 (1.8) (64.8) Non-interest expense (190.2) (189.1) (192.4) (1.1) 2.3 1.2 ------ ------ ------ ------ ----- --- Pretax income 113.1 108.9 105.1 4.1 7.9 7.6 ------ ------ ------ ------ ----- --- Net income $ 81.7 $ 79.5 $ 75.6 $ 2.2 $ 6.1 8.1% ====== ====== ====== ===== ===== ==== EPS $ 0.33 $ 0.32 $ 0.30 $ 0.01 $0.03 10.0 % Revenue (FTE) (2) $357.2 $349.3 $338.4 $ 8.0 $18.9 5.6%
(1) Operating basis - Excludes after tax impact of restructuring and other charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain on the sale of Florida operations in 1Q02, the impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 (2) Calculated assuming a 35% tax rate and excluding securities gains 11 [LOGO] PERFORMANCE TRENDS (1) [GRAPHS] EARNINGS PER SHARE - ------------------ 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 $0.28 $0.30 $0.32 $0.32 $0.32 $0.33 PRETAX INCOME BEFORE LLP AND - ---------------------------- SECURITIES GAINS ---------------- ($MM) 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 $125 $144 $153 $162 $159 $166 (1) Operating basis - Excludes after tax impact of restructuring and other charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain on the sale of Florida operations in 1Q02, the impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 12 [LOGO] PERFORMANCE TRENDS (1) [GRAPHS] NET INTEREST INCOME & Margin (FTE) - ---------------------------------- ($MM) 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 Margin 3.99% 4.03% 4.17% 4.26% 4.21% 4.30% NII $224 $227 $232 $237 $234 $243 EARNING ASSET MIX (AVG) - ----------------------- LOANS SECURITIES OTHER EA 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 Other EA 5% 2% 2% 2% 2% 1% Securities 17% 16% 14% 13% 13% 13% Loans 78% 82% 84% 85% 85% 86% (1) Excludes impact of Florida banking operations sold in 1Q02 13 MANAGED LOAN GROWTH (1) AVERAGE ($B) ANNUALIZED GROWTH - ------- -----------------
2Q02 vs. 1Q02 vs. 2Q02 vs. 2Q02 1Q02 4Q01 2Q01 ---- ---- ---- ---- Commercial $ 5.6 (3)% (6) % (6)% Commercial real estate 3.7 6 16 15 ---- Total commercial/CRE 9.3 --- 2 1 ---- Auto loan / lease 6.9 (3) (1) 1 Home equity 2.9 17 5 9 Residential real estate 1.2 75 62 43 Other consumer 0.4 (10) (19) (15) ---- Total consumer 11.4 13 8 7 ---- Managed loans $20.7 7 % 5 % 5 % =====
(1) Growth percentages normalized for residential real estate loan securitizations and impact of Florida banking operations sold in 1Q02 14 [LOGO] CORE DEPOSIT TRENDS (1)
AVERAGE ($B) ANNUALIZED GROWTH - ------- ----------------- 2Q02 vs. 1Q02 vs. 2Q02 vs. 2Q02 1Q02 4Q01 2Q01 ---- ---- ---- ---- Demand $ 2.7 ---% (12)% 3% Interest bearing 4.9 51 35 42 Savings 2.8 (3) (5) (6) CD's 4.2 12 (3) 7 ----- Total $14.7 19% 6% 13% =====
(1) Growth percentages normalized for impact of Florida banking operations sold in 1Q02 15 [LOGO] TOTAL DEPOSITS PER BRANCH (1) AVERAGE ($MM)
June '02 June '01 % Change -------- -------- -------- Central Ohio / WV $62.4 $48.0 30% N. Ohio 46.9 36.5 28 W. Michigan 34.4 25.4 36 E. Michigan 48.6 43.5 12 Cincinnati / Dayton / KY 34.5 30.9 12 Indiana 29.0 24.7 18 Total average / branch $45.7 $36.4 26% # of branches 331 369 (10)
(1) Excludes deposits attributable to Dealer Sales and PFG lines of business, brokered deposits, and negotiable CDs. 16 [LOGO]
NON-INTEREST INCOME (1) ($MM) BETTER OR (WORSE) VS. ----- --------------------- 2Q02 1Q02 1Q02(2) 2Q01 ---- ---- ------- ---- Deposit service charges $ 35.4 $ 1.1 3% 8% Mortgage banking 10.7 (8.9) (45) (39) Brokerage / insurance 15.0 0.4 3 14 Trust income 16.2 1.2 8 13 Bank Owned Life Ins. 11.4 (0.2) (2) 20 Other service charges 10.5 1.4 15 12 Other 15.0 4.4 42 8 ------ Total $114.3 $ (0.7) (1)% 3% ====== Total excl mortgage banking $103.6 $ 8.2 9 % 11%
(1) Excludes security gains and gain on sale of the Florida banking operations in 1Q02 and Florida insurance agency sold 7/2/02 (2) Linked quarter percentage growth is not annualized. 17 [LOGO]
NON-INTEREST EXPENSE (1) ($MM) BETTER OR (WORSE) VS. --------------------- 2Q02 1Q02 1Q02(2) 2Q01 ---- ---- ------- ---- Personnel costs $103.6 $ 0.7 1% --% Occupancy & equipment 31.3 (0.9) (3) -- Outside services 16.6 0.5 3 (10) Marketing 7.2 -- (1) (6) Amortization of intangibles 0.2 -- 19 93 Other 31.3 (1.5) (5) 5 ------ ------ Total $190.2 $ (1.1) (1)% 1% ======
(1) Excludes pretax impact of restructuring charges and other charges of $56.2 MM in 1Q02 and $34.0 MM in 2Q01 and Florida insurance agency sold 7/2/02 (2) Linked quarter percentage growth is not annualized 18 [LOGO] EFFICIENCY RATIO (1) [GRAPH] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 59.5% 56.0% 54.0% 52.7% 54.1% 53.2% (1) FTE Revenue excluding securities gains and gain on sale of Florida operations / non-interest expense excludes intangible amortization and restructuring and other charges. Excludes impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 19 [LOGO] CREDIT REVIEW 20 [LOGO] CREDIT QUALITY OVERVIEW (1)
2Q02 1Q02 2Q01 ---- ---- ---- NPAs / total loans + OREO 1.14% 1.17% 0.85% Net charge-offs - adjusted (2) 0.88 0.97 0.74 90+ days past due 0.30 0.32 0.29 Consumer 0.41 0.44 0.47 Commercial 0.15 0.14 0.08 Commercial RE 0.20 0.26 0.16 Reserve / total loans 2.00 2.00 1.76 Reserve / NPAs 176 171 207
(1) Excludes impact of Florida banking operations sold in 1Q02. (2) Excludes impact of net charge-offs on exited portfolios. 21 [LOGO] NON-PERFORMING ASSET COMPOSITION (1) ($MM) [GRAPH] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 NPA $117.0 $156.9 $201.2 $219.6 $225.5 $223.2 % Lns + OREO 0.63% 0.85% 1.06% 1.16% 1.17% 1.14% (1) Excludes impact of Florida banking operations sold in 1Q02. 22 [LOGO] NON-PERFORMING ASSET FLOW ANALYSIS - REPORTED BASIS(1) PERIOD END ($MM) - -----------
2Q02 1Q02 4Q01 3Q01 2Q01 ---- ---- ---- ---- ---- NPA beginning of period $225.5 $227.5 $210.1 $166.0 $124.9 - ------------------------------------------------------------------------------------------------ New NPAs 73.0 74.4 86.0 95.0 95.0 - ------------------------------------------------------------------------------------------------ Loan losses (28.3) (26.1) (34.6) (12.5) (13.2) Payments (44.3) (37.7) (28.3) (34.2) (19.3) Sales (2) (2.4) (8.9) (4.1) (3.3) (21.3) Other (0.3) (3.7) (1.5) (0.9) (0.1) ------ ------ ------ ------ ------ NPA end of period $223.2 $225.5 $227.5 $210.1 $166.0
(1) Impact of Florida not material. (2) 1Q02 includes $6.5 MM related to the sale of Florida banking operations and 2Q01 includes $14.9 MM related to PG & E. 23 [LOGO] NON-PERFORMING ASSETS - BY SECTOR $223 MM @ 6/30/02 [GRAPH] Services 30% Manufacturing 30% F.I.R.E. 14% Construction 6% Retail 3% Trade Agriculture 3% Trans./Comm. 2% Wholesale Trade 0% Energy 0% Other 10% % OF $120 MM CHANGE VS 12/31/00 Services 45% Manufacturing 42% F.I.R.E. 9% Construction 5% Retail 6% Trade Agriculture 3% Trans./Comm. 0% Wholesale Trade 2% Energy 0% Other -12% 24 [LOGO] NET CHARGE-OFFS - ADJUSTED (1) ($MM) [GRAPH] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 $ 26 $34 $29 $47 $46 $43 0.57% 0.74% 0.61% 0.99% 0.97% 0.88% 2Q02 1Q02 2Q01 Commercial 1.53 % 1.15 % 0.64 % Commercial real estate 0.22 0.42 0.21 ---- ---- ---- Total commercial 1.02 0.86 0.49 ---- ---- ---- Consumer Auto loans - indirect 0.92 1.45 1.49 Auto lease 1.08 1.64 1.37 ---- ---- ---- Indirect 1.01 1.56 1.42 Other direct 1.22 1.08 0.91 Home equity 0.43 0.41 0.35 Residential real estate 0.18 0.05 0.14 ---- ---- ---- Total consumer 0.75 1.07 0.99 ---- ---- ---- Total 0.88 % 0.97 % 0.74 % (1) Excludes impact of net charge-offs on exited portfolios. Reported total consumer net charge-offs were 0.83% in 2Q02, 1.22% in 1Q02, and 2.07% in 2Q01. Reported total net charge-offs were 0.92% in 2Q02, 1.05% in 1Q01, and 1.33% in 2Q01. Excludes impact of Florida banking operations sold in 1Q02. 25 [LOGO] VINTAGE PERFORMANCE AUTO LOANS - INDIRECT [GRAPHS] Cumulative Charge-off Rate % of Portfolio @ ---------------- 12/00 12/01 3/02 6/02 ----- ----- ---- ---- Pre - 4Q98 22% 8% 4% 3% 4Q98 - 3Q99 24% 12% 11% 9% 4Q99 - 3Q00 42% 25% 24% 20% 4Q00 - 4Q01 12% 55% 61% 43% 1Q02 - 2Q02 -- -- -- 25% --- --- --- --- 100% 100% 100% 100%
# Quarters After Origination 4Q98 - 3Q99 4Q99 - 3Q00 4Q00 - 4Q01 1Q02 - 2Q02 1 0.00% 0.00% 0.00% 0.00% 2 0.04% 0.08% 0.05% 0.00% 3 0.22% 0.42% 0.30% 4 0.48% 0.87% 0.65% 5 0.65% 1.35% 1.00% 6 0.85% 1.89% 1.25% 7 1.00% 2.15% 1.49% 8 1.20% 2.40% 9 1.41% 2.45% 10 1.58% 2.50% 11 1.69% 12 1.85% 13 1.89%
AUTO LEASES Cumulative Charge-off Rate % of Portfolio @ ---------------- 12/00 12/01 3/02 6/02 ----- ----- ---- ---- Pre-4Q98 16% 6% 4% 3% 4Q98 - 3Q99 33% 22% 19% 16% 4Q99 - 3Q00 42% 31% 30% 27% 4Q00 - 4Q01 9% 41% 47% 38% 1Q02 - 2Q02 -- -- -- 16% --- --- --- --- 100% 100% 100% 100%
# Quarters After Origination 4Q98 - 3Q99 4Q99 - 3Q00 4Q00 - 4Q01 1Q02 - 2Q02 1 0.00% 0.01% 0.01% 0.01% 2 0.04% 0.05% 0.06% 0.03% 3 0.15% 0.33% 0.30% 4 0.27% 0.72% 0.67% 5 0.38% 1.30% 1.00% 6 0.55% 1.85% 1.22% 7 0.75% 2.05% 1.34% 8 0.95% 2.40% 9 1.21% 2.45% 10 1.39% 2.50% 11 1.60% 12 1.76% 13 1.80%
26 [LOGO] CONSUMER DELINQUENCY TRENDS (1) 30+ Days - -------- 2Q01 3Q01 4Q01 1Q02 2Q02 2.88% 3.10% 3.32% 2.36% 2.26% 90+ Days - -------- 2Q01 3Q01 4Q01 1Q02 2Q02 0.47% 0.55% 0.60% 0.44% 0.41% (1) % of related outstandings at EOP. Excludes impact of Florida banking operations sold in 1Q02 27 [LOGO] LOAN LOSS RESERVE (1) LOAN LOSS RESERVE FLOW ANALYSIS ($MM) 2Q02 1Q02 4Q01 LLR- beginning $ 386.1 $ 387.0 $ 334.8 Charge-offs (57.5) (60.2) (60.1) Recoveries 12.6 10.9 10.0 ------- ------- ------- Net charge-offs (44.9) (49.3) (50.1) Provision exp. 53.9 50.6 54.3 Provision exp.-other --- --- 50.0 Assets sold --- --- --- Loans securitized (2.0) (2.2) (2.0) ------- ------- ------- LLR-ending $ 393.0 $ 386.1 $ 387.0 [GRAPH] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 1.51% 1.76% 1.77% 2.05% 2.00% 2.00% $276 $326 $335 $387 $386 $393 (1) Excludes impact of Florida banking operations sold in 1Q02 28 [LOGO] CAPITAL REVIEW 29 [LOGO] CAPITAL TRENDS - REPORTED BASIS 2Q02 1Q02 2Q01 ---- ---- ---- Tier 1 risk-based capital 9.72% 10.26 % 7.01% Total risk-based capital 12.75 13.40 10.20 Tier 1 leverage 9.94 9.72 6.96 Tangible equity / assets 8.41 (1) 9.03 5.97 Double leverage 83 78 110 (1) Estimated at 7.5%-8.0% by 12/31/02 assuming continuation of share repurchase program 30 [LOGO] SHARE REPURCHASE PROGRAM COMMITMENT TO REPURCHASE $300 - 400 MM - - Program commenced February 21 - - Repurchased 8.8 million shares through June 30 $175 million - - Committed to continued repurchase at reasonable prices and volumes 31 [LOGO] PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD LOOKING STATEMENT DISCLOSURE This presentation and discussion, including related questions and answers, may contain forward-looking statements, including certain plans, expectations, goals, and projections which are subject to numerous assumptions, risks, and uncertainties. A number of factors, including but not limited to those set forth under the heading "Business Risks" included in Item 1 of Huntington's Annual Report on Form 10-K for the year ended December 31, 2001, and other factors described from time to time in Huntington's other filings with the Securities and Exchange Commission, could cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. All forward-looking statements included in this discussion, including related questions and answers, are based on information available at the time of the discussion. Huntington assumes no obligation to update any forward-looking statement. 32 [LOGO] Huntington [LOGO] APPENDIX A 34 [LOGO] MANAGING INTEREST RATE RISK NET INTEREST INCOME AT RISK FORWARD CURVE +/- 2% GRADUAL CHANGE IN RATES [GRAPHS] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 2% Rate Fall 1.7% 1.8% 1.5% 0.8% 1.4% 0.9% 2% Rate Rise -2.1% -2.1% -1.7% -1.2% -1.6% -1.3% ECONOMIC VALUE AT RISK PARALLEL YIELD CURVE SHIFT +/-2% INSTANTANEOUS CHANGE IN RATES 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 +2% Rate Shock -5.7% -6.2% -3.7% -2.4% -3.8% -3.0% - -2% Rate Shock 3.3% 3.6% 0.7% -0.7% 0.8% 0.1% 35 [LOGO] LOAN PORTFOLIO - 6/30/02 BY TYPE OF LOAN - MANAGED ($B) Amt Pct Commercial $ 5.6 26.9% Commercial RE 3.7 17.8 ----- ----- Total commercial 9.3 44.7 ----- ----- Auto leases 3.1 15.0 Auto loans 3.8 18.2 Home equity lines 3.0 14.4 Residential real estate 1.2 5.8 Other consumer 0.4 1.9 ----- ----- Total consumer 11.5 55.3 ----- ----- Total loans $20.8 100.0% By Region or LOB - Managed [GRAPH] Central OH/WV 18% Northern OH 13% W. Michigan 9% S. Ohio/KY 7% E. Michigan 5% Indiana 3% Auto 37% PFG 4% Mortgage 4% 36 [LOGO] PERFORMANCE TRENDS (1) LOAN LOSS PROVISION ($MM) [GRAPHS] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 $30 $42 $46 $54 $51 $54 NET INCOME ($MM) 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 $72 $76 $81 $80 $80 $82 (1) Operating basis - Excludes after tax impact of restructuring and other charges, gain on sale of Florida operations in 1Q02, impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 37 [LOGO] PERFORMANCE TRENDS (1) REVENUE (FTE) ($MM) [GRAPH] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 $321 $338 $342 $351 $349 $357 (1) Excludes security gains and gain on sale of the Florida banking operations in 1Q02, impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 38 [LOGO] PERFORMANCE TRENDS (1) RETURN ON AVERAGE ASSETS [GRAPHS] 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 1.16% 1.20% 1.30% 1.28% 1.30% 1.31% RETURN ON AVERAGE EQUITY 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 12.0% 12.6% 13.5% 13.4% 13.6% 14.0% (1) Operating basis - Excludes after tax impact of restructuring and other charges of $36.5 MM in 1Q02, $72.1 MM in 2Q01, the $56.8 MM after tax gain on the sale of Florida operations in 1Q02, the impact of Florida banking operations sold in 1Q02 and Florida insurance agency sold 7/2/02 39 [LOGO] APPENDIX B OPERATING INCLUDING FLORIDA NOTE: Slides in Appendix B show operating results INCLUDING Florida, the way they were previously presented for analytical purposes prior to 2Q02. As such, these are the same slides and data contained in the 1Q02 conference call presentation materials. With the sale of the Florida banking operations in 1Q02, and to provide better analytical comparisons to prior periods, beginning with 2Q02 reporting, operating results are now defined to exclude the impact of the Florida banking operations. 40 [LOGO] FIRST QUARTER 2002 EARNINGS One-time ($MM) Reported charges Operating -------- ------- --------- Net interest income $ 242.8 $ 242.8 Provision (55.8) (55.8) Non-interest income 125.6 125.6 Florida gain 175.4 $ 175.4 - Security gains 0.5 0.5 Non-interest expense (263.6) (56.2) (207.4) ------- ------- ------- Pretax income 224.9 119.2 105.7 ------- ------- ------- Net income $ 97.7 $ 20.3 $ 77.5 ======= ======= ======= EPS $ 0.39 $ 0.08 $ 0.31 41 [LOGO] PERFORMANCE HIGHLIGHTS (1) 1Q02 4Q01 1Q01 ---- ---- ---- EPS - operating $0.31 $0.30 $0.27 EPS - cash basis (2) 0.31 0.33 0.30 ROA 1.18 % 1.07 % 0.97 % ROE 13.3 12.7 11.5 Efficiency ratio (2) 55.7 55.8 62.0 NIM 4.14 4.11 3.93 Tangible common equity/assets (3) 9.03 6.04 6.01 (1) Operating basis - Excluding after tax impact of restructuring and other charges of $36.5 MM in 1Q02, $9.8 MM in 4Q01 and the after tax gain on the sale of Florida operations of $56.8 MM in 1Q02 (2) Based on operating earnings excluding intangible amortization of $1.4 MM in 1Q02, $10.1 MM in 4Q01 and $10.6 MM in 1Q01 (3) Period end 42 [LOGO] INCOME STATEMENT (1) ($MM) 1Q02 4Q01 1Q01 ---- ---- ---- Net interest income $242.8 $255.2 $243.1 Provision (55.8) (58.3) (33.5) Non-interest income 125.6 133.0 115.6 Security gains 0.5 0.1 2.1 Non-interest expense (207.4) (227.3) (234.0) ------ ------ ------ Pretax income 105.7 102.7 93.3 ------ ------ ------ Net income $77.5 $75.5 $67.9 ====== ====== ====== EPS $0.31 $0.30 $0.27 (1) Operating basis - Excluding after tax impact of restructuring and other charges of $36.5 MM in 1Q02, $9.8 MM in 4Q01 and the after tax gain on the sale of Florida operations of $56.8 MM in 1Q02 43 [LOGO] PERFORMANCE TRENDS (1) Earnings Per Share - ------------------ [GRAPHS] 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL $0.40 $0.33 $0.30 $0.27 $0.30 $0.30 $0.30 $0.31 $0.32 Pretax Income Before LLP and Securities Gains - --------------------------------------------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL $150 $133 $139 $125 $145 $150 $161 $161 $159 (1) Operating basis - Excludes after tax impact of restructuring and other charges of $115.0 MM in 2001, $32.5 MM in 2000, and $36.5 MM in 1Q02, and after tax gain on the sale of Florida operations of $56.8 MM in 1Q02. 44 [LOGO] [GRAPHS] PERFORMANCE TRENDS Net Interest Income & Margin (FTE) - ---------------------------------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL Margin 3.72% 3.74% 3.70% 3.93% 3.97% 4.04% 4.11% 4.14% 4.21% NII $235 $238 $235 $245 $250 $251 $256 $244 $233 Earning Asset Mix (Avg) - ----------------------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 Other EA 1% 1% 1% 2% 2% 2% 2% 2% Securities 17% 18% 18% 15% 14% 12% 12% 12% Loans 82% 81% 81% 83% 84% 86% 86% 86% 45 [LOGO] PERFORMANCE TRENDS [GRAPHS] Loans - ----- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL Com'l $ 6.4 $ 6.5 $ 6.5 $ 6.7 $ 6.7 $ 6.7 $ 6.5 $ 6.0 Com'l RE 3.4 3.5 3.5 3.6 3.6 3.7 3.9 3.8 Auto Ln/Lse 6.0 5.7 5.7 5.6 5.8 6.0 6.1 5.9 HEL 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.4 Res Mtg 1.5 1.3 0.9 1.0 0.9 0.9 0.9 1.0 Other 1.6 1.6 1.8 1.6 1.7 1.6 1.6 1.4 ----- ----- ----- ----- ----- ----- ----- ----- ----- $20.8 $20.6 $20.5 $20.7 $21.0 $21.3 $21.5 $20.5 $19.1 ===== ===== ===== ===== ===== ===== ===== ===== ===== Core Deposits - ------------- 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL Non. Int. Brg. DDA $ 3.2 $ 3.3 $ 3.3 $ 3.4 $ 3.0 Int. Brg. DDA 4.6 4.8 5.1 5.5 5.1 Savings 3.5 3.5 3.5 3.4 3.1 Other Dom. Tire 6.0 5.7 5.9 5.9 5.1 ----- ----- ----- ----- ----- ----- $17.3 $17.3 $17.8 $18.2 $16.3 $14.0 ===== ===== ===== ===== ===== ===== 46 [LOGO] PERFORMANCE TRENDS (1) Non-Interest Income - -------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL Dep. Sv. Chg. $ 40 $ 40 $ 39 $ 39 $ 41 $ 42 $43 $ 39 Brkg/Ins. 14 16 17 19 19 20 21 19 Mtg. Bnkg. 8 9 12 10 19 15 16 20 Trust Svc. 13 13 14 14 15 15 15 16 Other S. Chg. 11 11 12 11 12 12 13 10 BOLI 10 10 11 10 10 10 10 12 Other 20 11 25 13 15 15 15 10 ----- ---- ---- ---- ---- ---- ---- ---- ---- $116 $110 $130 $116 $131 $129 $133 $126 $115 ==== ==== ==== ==== ==== ==== ==== ==== ====
Revenue (Fte) - ------------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL $350 $348 $365 $361 $380 $381 $390 $370 $349 (1) Excluding securities gains and gain on sale of Florida operations in 1Q02 47 [LOGO] [GRAPHS] PERFORMANCE TRENDS Non-interest Expense (1) - ------------------------
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL Personnel $104 $110 $106 $118 $122 $121 $118 $114 Equip/Occ. 36 39 39 40 38 39 41 34 Outside DP/ Other Svc. 15 16 16 17 18 17 18 18 Other 43 49 63 59 55 52 50 41 ---- ---- ---- ---- ---- ---- ---- ---- ----- $198 $214 $224 $234 $233 $229 $227 $207 $189 ==== ==== ==== ==== ==== ==== ==== ==== ====
Efficiency Ratio (2) - -------------------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 53.9% 58.4% 58.5% 62.0% 58.6% 57.5% 55.8% 55.7% XFL 60.2% 56.2% 54.0% 52.5% 54.1% (1) Operating basis - Excludes impact of restructuring and other charges (2) FTE Revenue excludes securities gains and gain on sale of Florida operations / non-interest expense excludes intangible amortization and 48 restructuring and other charges 48 [LOGO] [GRAPH] LOAN LOSS RESERVE 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1.45% 1.45% 1.45% 1.45% 1.67% 1.67% 1.90% 2.00% $297 $295 $298 $302 $352 $360 $411 $386 Loan Loss Reserve Flow Analysis - ------------------------------- ($MM) 1Q02 4Q01 3Q01 ---- ---- ---- LLR- beginning $410.6 $360.4 $352.2 Charge-offs (67.5) (66.8) (49.4) Recoveries 11.7 10.7 9.6 ---- ---- --- Net charge-offs (55.8) (56.1) (39.8) Provision exp. 55.8 58.3 49.6 Provision exp.-other 50.0 Assets sold (22.3) Loans securitized (2.2) (2.0) (1.6) ---- ---- --- LLR-ending $386.1 $410.6 $360.4 49 [LOGO] [GRAPHS] PERFORMANCE TRENDS (1) Loan Loss Provision - ------------------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL $16 $26 $33 $33 $46 $50 $58 $56 $51 Net Income - ---------- 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02 XFL $98 $83 $76 $68 $75 $76 $75 $77 $80 (1) Operating basis - Excludes after tax impact of restructuring and other charges and gain on sale of Florida operations in 1Q02 50 [LOGO] CREDIT QUALITY OVERVIEW 1Q02 4Q01 1Q01 ---- ---- ---- NPAs / total loans + OREO 1.17 % 1.05 % 0.60 % Net charge-offs - Reported 1.11 1.04 0.55 - Adjusted (1) 1.04 0.98 0.55 - Adjusted Xcld. Florida 1.00 1.04 0.57 90+ days past due 0.32 0.42 0.49 Consumer 0.44 0.61 0.69 Commercial / CRE 0.19 0.22 0.29 Reserve / total loans 2.00 1.90 1.45 Reserve / NPAs 171 180 239 (1) Excludes impact of net charge-offs on exited portfolios 51 [LOGO] NON-PERFORMING ASSET FLOW ANALYSIS Period End ($MM) - ---------- 1Q02 4Q01 3Q01 2Q01 1Q01 ---- ---- ---- ---- ---- NPA beginning of period $227.5 $210.1 $166.0 $124.9 $105.4 New NPAs 74.4 86.0 95.0 95.0 53.9 Loan losses (26.1) (34.6) (12.5) (13.2) (7.2) Payments (37.7) (28.3) (34.2) (19.3) (25.0) Sales (1) (8.9) (4.1) (3.3) (21.3) (1.9) Other (3.7) (1.6) (0.9) (0.1) (0.3) ------ ------ ------ ------ ------ NPA end of period $225.5 $227.5 $210.1 $166.0 $124.9 % of loans and OREO 1.17% 1.05% 0.97% 0.79% 0.60% (1) 1Q02 includes $6.5 MM related to the sale of Florida banking operations and 2Q01 includes $14.9 MM related to PG & E. 52 [LOGO] [GRAPH] NET CHARGE-OFFS - ADJUSTED (1) 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 0.30% 0.46% 0.50% 0.55% 0.73% 0.61% 0.98% 1.04% $16 $24 $25 $29 $37 $33 $53 $52 1Q02 4Q01 1Q01 ---- ---- ---- Commercial 1.31 % 1.39 % 0.41 % Commercial real estate 0.42 0.08 0.15 Consumer Auto loans - indirect 1.59 1.46 1.43 Auto lease 1.64 1.55 0.89 ---- ---- ---- Indirect 1.62 1.51 1.13 Installment 1.01 0.86 0.61 Home equity lines 0.36 0.38 0.34 Residential real estate 0.05 0.17 0.03 ---- ---- ---- Total consumer 1.10 1.05 0.78 ---- ---- ---- Total 1.04 % 0.98 % 0.55 % Total - Excluding Florida 1.00 % 1.04 % 0.57 % (1) Excludes impact of net charge-offs on exited portfolios. Reported total consumer net charge-offs were 1.23% in 1Q02, 1.17% in 4Q01, and 0.78% in 1Q01. Reported total net charge-offs were 1.11% in 1Q02, 1.04% in 4Q01, and 0.55% in 1Q01. 53 [LOGO] [GRAPHS] DELINQUENCY TRENDS - 30+ DAYS (1) Total Loans - ----------- 1Q01 2Q01 3Q01 4Q01 1Q02 2.15% 2.31% 2.33% 2.31% 1.89% Consumer Loans - -------------- 1Q01 2Q01 3Q01 4Q01 1Q02 2.67% 2.75% 2.97% 3.21% 2.36 (1) % of related outstanding at EOP. Data before 1Q02 includes Florida. 54 [LOGO] [GRAPHS] PERFORMANCE TRENDS (1) Return on Average Assets - ------------------------ 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL 1.37% 1.15% 1.06% 0.97% 1.05% 1.07% 1.07% 1.18% 1.30% Return on Average Equity - ------------------------ 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 1Q02XFL 17.8% 14.0% 12.9% 11.5% 12.4% 12.6% 12.7% 13.3% 13.6% (1) Operating basis - Excludes after tax impact of restructuring and other charges and gain on sale of Florida operations in 1Q02 55 55 HUNTINGTON BANCSHARES INCORPORATED QUARTERLY FINANCIAL REVIEW JUNE 2002 TABLE OF CONTENTS REPORTED BASIS Consolidated Statements of Income 1 Consolidated Balance Sheets 2 Loans and Deposits 3 Quarterly Net Interest Margin Analysis 4 & 5 Selected Quarterly Income Statement Data 6 Loan Loss Reserves and Net Charge-Off Analysis 7 Non-Performing Assets and Past Due Loans 8 Stock Summary, Capital, and Other Data 9 OPERATING BASIS - Definition of Operating Basis 10 - Consolidated Statements of Income 11 - Loans and Deposits 12 - Quarterly Net Interest Margin Analysis 13 & 14 - Selected Quarterly Income Statement Data 15 - Loan Loss Reserves and Net Charge-Off Analysis 16 - Non-Performing Assets and Past Due Loans 17
HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME REPORTED BASIS
THREE MONTHS ENDED JUNE 30, - ------------------------------------------------------------------------------------------------------------ (in thousands, except per share amounts) 2002 2001 - ------------------------------------------------------------------------------------------------------------ Net Interest Income $ 241,859 $ 248,033 Provision for loan losses 53,892 117,495 - ------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 187,967 130,538 - ------------------------------------------------------------------------------------------------------------ Total non-interest income 117,980 128,203 Total non-interest expense 192,060 267,293 - ------------------------------------------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES 113,887 (8,552) Income taxes 31,647 (10,929) - ------------------------------------------------------------------------------------------------------------ NET INCOME $ 82,240 $ 2,377 - ------------------------------------------------------------------------------------------------------------ PER COMMON SHARE Net income Basic $0.33 $0.01 Diluted $0.33 $0.01 Cash dividends declared $0.16 $0.20 AVERAGE COMMON SHARES Basic 246,106 251,024 Diluted 247,867 251,448 - ------------------------------------------------------------------------------------------------------------------ SIX MONTHS ENDED JUNE 30, - ------------------------------------------------------------------------------------------------------------ (in thousands, except per share amounts) 2002 2001 - ------------------------------------------------------------------------------------------------------------ Net Interest Income $ 484,684 $ 491,157 Provision for loan losses 109,673 150,959 - ------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 375,011 340,198 - ------------------------------------------------------------------------------------------------------------ Total non-interest income 419,408 245,927 Total non-interest expense 455,630 501,383 - ------------------------------------------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES 338,789 84,742 Income taxes 158,822 14,499 - ------------------------------------------------------------------------------------------------------------ NET INCOME $ 179,967 $ 70,243 - ------------------------------------------------------------------------------------------------------------ PER COMMON SHARE Net income Basic $0.72 $0.28 Diluted $0.72 $0.28 Cash dividends declared $0.32 $0.40 AVERAGE COMMON SHARES Basic 248,415 250,984 Diluted 249,946 251,479
THREE MONTHS ENDED JUNE 30, CHANGE - ---------------------------------------------------------------------- --------------------------------- (in thousands, except per share amounts) Amount Percent - ---------------------------------------------------------------------- --------------------------------- Net Interest Income $ (6,174) (2.5)% Provision for loan losses (63,603) (54.1) - ---------------------------------------------------------------------- --------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 57,429 44.0 - ---------------------------------------------------------------------- --------------------------------- Total non-interest income (10,223) (8.0) Total non-interest expense (75,233) (28.1) - ---------------------------------------------------------------------- --------------------------------- INCOME BEFORE INCOME TAXES 122,439 N.M. Income taxes 42,576 N.M. - ---------------------------------------------------------------------- --------------------------------- NET INCOME $ 79,863 N.M.% - ---------------------------------------------------------------------- --------------------------------- PER COMMON SHARE Net income Basic $ 0.32 N.M.% Diluted $ 0.32 N.M.% Cash dividends declared $ (0.04) (20.0)% AVERAGE COMMON SHARES Basic (4,918) (2.0)% Diluted (3,581) (1.4)% - ---------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED JUNE 30, CHANGE - ---------------------------------------------------------------------- --------------------------------- (in thousands, except per share amounts) Amount Percent - ---------------------------------------------------------------------- --------------------------------- Net Interest Income $ (6,473) (1.3)% Provision for loan losses (41,286) (27.3) - ---------------------------------------------------------------------- --------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 34,813 10.2 - ---------------------------------------------------------------------- --------------------------------- Total non-interest income 173,481 70.5 Total non-interest expense (45,753) (9.1) - ---------------------------------------------------------------------- --------------------------------- INCOME BEFORE INCOME TAXES 254,047 N.M. Income taxes 144,323 N.M. - ---------------------------------------------------------------------- --------------------------------- NET INCOME $ 109,724 N.M.% - ---------------------------------------------------------------------- --------------------------------- PER COMMON SHARE Net income Basic $ 0.44 N.M.% Diluted $ 0.44 N.M.% Cash dividends declared $ (0.08) (20.0)% AVERAGE COMMON SHARES Basic (2,569) (1.0)% Diluted (1,533) (0.6)%
N.M. - Not Meaningful. Page 1 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED BALANCE SHEETS REPORTED BASIS
- ----------------------------------------------------------------------------------------------------------------------------------- JUNE 30, December 31, June 30, (in thousands) 2002 2001 2001 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $ 858,561 $ 1,138,366 $ 908,686 Interest bearing deposits in banks 28,385 21,205 4,893 Trading account securities 10,532 13,392 4,291 Federal funds sold and securities purchased under resale agreements 75,824 83,275 59,725 Loans held for sale 190,724 629,386 376,671 Securities available for sale - at fair value 3,006,273 2,849,579 3,190,686 Investment securities - fair value $10,963; $12,499; and $15,159, respectively 10,769 12,322 14,978 Total loans (1) 19,652,170 21,601,873 21,127,862 Less allowance for loan losses 393,011 410,572 352,243 - ---------------------------------------------------------------------------------------------------------------------------------- Net loans 19,259,159 21,191,301 20,775,619 - ---------------------------------------------------------------------------------------------------------------------------------- Bank owned life insurance 863,327 843,183 824,062 Premises and equipment 353,931 452,036 457,749 Goodwill and other intangible assets 210,685 716,054 737,437 Customers' acceptance liability 16,778 13,670 15,335 Accrued income and other assets 496,468 536,390 578,018 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 25,381,416 $ 28,500,159 $ 27,948,150 - ---------------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Total deposits (1) $ 16,861,100 $ 20,187,304 $ 18,996,922 Short-term borrowings 2,064,275 1,955,926 2,585,773 Bank acceptances outstanding 16,778 13,670 15,337 Medium-term notes 1,782,438 1,795,002 1,983,603 Subordinated notes and other long-term debt 943,706 944,330 890,371 Company obligated mandatorily redeemable preferred capital securities of subsidiary trusts holding solely junior subordinated debentures of the Parent Company 300,000 300,000 300,000 Accrued expenses and other liabilities 1,061,259 887,487 822,622 - ---------------------------------------------------------------------------------------------------------------------------------- Total Liabilities 23,029,556 26,083,719 25,594,628 - ---------------------------------------------------------------------------------------------------------------------------------- Shareholders' equity Preferred stock - authorized 6,617,808 shares; none outstanding --- --- --- Common stock - without par value; authorized 500,000,000 shares; issued 257,866,255; 257,866,255; and 257,866,255 shares, respectively; outstanding 242,919,872; 251,193,814; and 251,056,761 shares, respectively 2,487,887 2,490,724 2,490,682 Less 14,946,383; 6,672,441; and 6,809,494 treasury shares, respectively (289,705) (123,849) (125,095) Accumulated other comprehensive income (loss) 28,655 25,488 (8,388) Retained earnings (deficit) 125,023 24,077 (3,677) - ----------------------------------------------------------------------------------------------------------------------------------- Total Shareholders' Equity 2,351,860 2,416,440 2,353,522 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 25,381,416 $ 28,500,159 $ 27,948,150 - -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------ ------------------------------------- Change June '02 vs. '01 ------------------------------------- Amount Percent - ------------------------------------------------------------ ------------------ ---------------- ASSETS Cash and due from banks $ (50,125) (5.5)% Interest bearing deposits in banks 23,492 N.M. Trading account securities 6,241 N.M. Federal funds sold and securities purchased under resale agreements 16,099 27.0 Loans held for sale (185,947) (49.4) Securities available for sale - at fair value (184,413) (5.8) Investment securities - fair value $10,963; $12,499; and $15,159, respectively (4,209) (28.1) Total loans (1) (1,475,692) (7.0) Less allowance for loan losses 40,768 11.6 - ------------------------------------------------------------ ------------------------------------- Net loans (1,516,460) (7.3) - ------------------------------------------------------------ ------------------------------------- Bank owned life insurance 39,265 4.8 Premises and equipment (103,818) (22.7) Goodwill and other intangible assets (526,752) (71.4) Customers' acceptance liability 1,443 9.4 Accrued income and other assets (81,550) (14.1) - ------------------------------------------------------------ ------------------------------------- TOTAL ASSETS $(2,566,734) (9.2)% - ------------------------------------------------------------ ------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Total deposits (1) $(2,135,822) (11.2)% Short-term borrowings (521,498) (20.2) Bank acceptances outstanding 1,441 9.4 Medium-term notes (201,165) (10.1) Subordinated notes and other long-term debt 53,335 6.0 Company obligated mandatorily redeemable preferred capital securities of subsidiary trusts holding solely junior subordinated debentures of the Parent Company --- --- Accrued expenses and other liabilities 238,637 29.0 - ------------------------------------------------------------ ------------------------------------- Total Liabilities (2,565,072) (10.0)% - ------------------------------------------------------------ ------------------------------------- Shareholders' equity Preferred stock - authorized 6,617,808 shares; none outstanding --- --- Common stock - without par value; authorized 500,000,000 shares; issued 257,866,255; 257,866,255; and 257,866,255 shares, respectively; outstanding 242,919,872; 251,193,814; and 251,056,761 shares, respectively (2,795) (0.1) Less 14,946,383; 6,672,441; and 6,809,494 treasury shares, respectively (164,610) N.M. Accumulated other comprehensive income (loss) 37,043 N.M. Retained earnings (deficit) 128,700 N.M. - ------------------------------------------------------------ ------------------------------------- Total Shareholders' Equity (1,662) (0.1) - ------------------------------------------------------------ ------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $(2,566,734) (9.2)% - ------------------------------------------------------------ -------------------------------------
(1) See Page 3 for detail of Loans and Deposits. N.M. - Not Meaningful. Page 2 HUNTINGTON BANCSHARES INCORPORATED LOANS AND DEPOSITS REPORTED BASIS LOAN PORTFOLIO COMPOSITION BY LOAN TYPE AND BY BUSINESS SEGMENT - ------------------------------------------------------------------------------- (in thousands)
JUNE 30, 2002 - ------------------------------------------------------------------------------------------------------------------ BY LOAN TYPE BALANCE % - ------------------------------------------------------------------------------------------------------------------ Commercial $ 5,591,280 28.5 Commercial real estate 3,699,424 18.8 - ------------------------------------------------------------------------------------------------------------------ TOTAL COMMERCIAL AND COMMERCIAL REAL ESTATE 9,290,704 47.3 - ------------------------------------------------------------------------------------------------------------------ Consumer Auto leases - Indirect (unearned income $456,485, $500,430, and $524,029) 3,120,317 15.9 Auto loans - Indirect 2,630,541 13.4 Home equity loans & lines of credit 2,990,726 15.2 Residential mortgage 1,210,991 6.2 Other loans 408,891 2.0 - ------------------------------------------------------------------------------------------------------------------ Total Consumer 10,361,466 52.7 - ------------------------------------------------------------------------------------------------------------------ TOTAL LOANS $ 19,652,170 100.0 - ------------------------------------------------------------------------------------------------------------------ TOTAL LOANS BY BUSINESS SEGMENT - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 4,587,849 23.3 Northern Ohio 2,722,936 13.9 Southern Ohio / Kentucky 1,433,434 7.3 West Michigan 1,835,321 9.3 East Michigan 1,050,648 5.3 Indiana 683,268 3.5 - ------------------------------------------------------------------------------------------------------------------- TOTAL REGIONAL BANKING 12,313,456 62.6 - ------------------------------------------------------------------------------------------------------------------- Dealer Sales 6,377,265 32.5 Private Financial Group 861,762 4.4 Treasury / Other 99,687 0.5 - ------------------------------------------------------------------------------------------------------------------- TOTAL LOANS EXCLUDING FLORIDA 19,652,170 100.0 - ------------------------------------------------------------------------------------------------------------------- Florida --- --- - ------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 19,652,170 100.0 - -------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION BY DEPOSIT TYPE AND BY BUSINESS SEGMENT - ------------------------------------------------------------------------------- (in thousands)
JUNE 30, 2002 - ------------------------------------------------------------------------------------------------------------------ BY DEPOSIT TYPE BALANCE % - ------------------------------------------------------------------------------------------------------------------ Demand deposits Non-interest bearing $ 2,769,936 16.4 Interest bearing 5,105,196 30.3 Savings deposits 2,839,115 16.8 Other domestic time deposits 4,238,688 25.1 - ------------------------------------------------------------------------------------------------------------------ TOTAL CORE DEPOSITS (1) 14,952,935 88.6 - ------------------------------------------------------------------------------------------------------------------ Domestic time deposits of $100,000 or more 765,163 4.5 Brokered time deposits and negotiable CDs 849,347 5.1 Foreign time deposits 293,655 1.8 - ------------------------------------------------------------------------------------------------------------------ TOTAL DEPOSITS $ 16,861,100 100.0 - ------------------------------------------------------------------------------------------------------------------ TOTAL DEPOSITS BY BUSINESS SEGMENT - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 5,301,871 31.4 Northern Ohio 3,377,763 20.0 Southern Ohio / Kentucky 1,345,096 8.0 West Michigan 2,546,364 15.1 East Michigan 1,944,617 11.5 Indiana 609,676 3.6 - ----------------------------------------------------------------------------------------------------------------- Total Regional Banking 15,125,387 89.6 - ----------------------------------------------------------------------------------------------------------------- Dealer Sales 50,363 0.3 Private Financial Group 811,470 4.8 Treasury / Other (2) 873,880 5.3 - ----------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS EXCLUDING FLORIDA 16,861,100 100.0 - ----------------------------------------------------------------------------------------------------------------- Florida --- --- - ----------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 16,861,100 100.0 - -----------------------------------------------------------------------------------------------------------------
DECEMBER 31, 2001 - --------------------------------------------------------------------------------------------------------------- BY LOAN TYPE BALANCE % - ------------------------------------------------------------------------------------------------------------------- Commercial $ 6,439,372 29.8 Commercial real estate 3,975,562 18.4 - ------------------------------------------------------------------------------------------------------------------- Total Commercial and Commercial Real Estate 10,414,934 48.2 - ------------------------------------------------------------------------------------------------------------------- Consumer Auto leases - Indirect (unearned income $456,485, $500,430, and $524,029) 3,207,514 14.8 Auto loans - Indirect 2,883,279 13.3 Home equity loans & lines of credit 3,582,028 16.6 Residential mortgage 970,704 4.5 Other loans 543,414 2.6 - ------------------------------------------------------------------------------------------------------------------- Total Consumer 11,186,939 51.8 - ------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 21,601,873 100.0 - ------------------------------------------------------------------------------------------------------------------- TOTAL LOANS BY BUSINESS SEGMENT - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 4,264,143 19.7 Northern Ohio 2,694,081 12.5 Southern Ohio / Kentucky 1,327,355 6.1 West Michigan 1,837,094 8.5 East Michigan 936,899 4.3 Indiana 695,354 3.2 - -------------------------------------------------------------------------------------------------------------------- Total Regional Banking 11,754,926 54.3 - -------------------------------------------------------------------------------------------------------------------- Dealer Sales 6,239,117 29.0 Private Financial Group 762,771 3.5 Treasury / Other 121,534 0.6 - -------------------------------------------------------------------------------------------------------------------- TOTAL LOANS EXCLUDING FLORIDA 18,878,348 87.4 - -------------------------------------------------------------------------------------------------------------------- Florida 2,723,525 12.6 - -------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 21,601,873 100.0 - --------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION BY DEPOSIT TYPE AND BY BUSINESS SEGMENT - ------------------------------------------------------------------------------- (in thousands)
DECEMBER 31, 2001 - ------------------------------------------------------------------------------- -------------------------------- BY DEPOSIT TYPE BALANCE % - -------------------------------------------------------------------------------------------------------------------------- Demand deposits Non-interest bearing $ 3,635,173 18.0 Interest bearing 5,723,160 28.4 Savings deposits 3,466,305 17.2 Other domestic time deposits 5,868,451 29.1 - -------------------------------------------------------------------------------------------------------------------------- TOTAL CORE DEPOSITS (1) 18,693,089 92.7 - -------------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 1,130,563 5.6 Brokered time deposits and negotiable CDs 137,915 0.7 Foreign time deposits 225,737 1.0 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 20,187,304 100.0 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS BY BUSINESS SEGMENT - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 5,217,459 25.8 Northern Ohio 3,255,847 16.1 Southern Ohio / Kentucky 1,290,832 6.4 West Michigan 2,226,500 11.0 East Michigan 1,895,470 9.4 Indiana 577,699 2.9 - -------------------------------------------------------------------------------------------------------------------------- Total Regional Banking 14,463,807 71.6 - -------------------------------------------------------------------------------------------------------------------------- Dealer Sales 82,684 0.4 Private Financial Group 716,693 3.6 Treasury / Other (2) 256,201 1.3 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS EXCLUDING FLORIDA 15,519,385 76.9 - -------------------------------------------------------------------------------------------------------------------------- Florida 4,667,919 23.1 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 20,187,304 100.0 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS BY BUSINESS SEGMENT - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 5,217,459 25.8 Northern Ohio 3,255,847 16.1 Southern Ohio / Kentucky 1,290,832 6.4 West Michigan 2,226,500 11.0 East Michigan 1,895,470 9.4 Indiana 577,699 2.9 - -------------------------------------------------------------------------------------------------------------------------- Total Regional Banking 14,463,807 71.6 - -------------------------------------------------------------------------------------------------------------------------- Dealer Sales 82,684 0.4 Private Financial Group 716,693 3.6 Treasury / Other (2) 256,201 1.3 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS EXCLUDING FLORIDA 15,519,385 76.9 - -------------------------------------------------------------------------------------------------------------------------- Florida 4,667,919 23.1 - -------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 20,187,304 100.0 - --------------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO COMPOSITION BY LOAN TYPE AND BY BUSINESS SEGMENT - ------------------------------------------------------------------------------- (in thousands)
JUNE 30, 2001 - -------------------------------------------------------------------------------- --------------------------------- BY LOAN TYPE BALANCE % - ---------------------------------------------------------------------------------------------------------------------- Commercial $ 6,753,809 32.0 Commercial real estate 3,639,811 17.2 - ---------------------------------------------------------------------------------------------------------------------- Total Commercial and Commercial Real Estate 10,393,620 49.2 - ---------------------------------------------------------------------------------------------------------------------- Consumer Auto leases - Indirect (unearned income $456,485, $500,430, and $524,029) 3,194,592 15.1 Auto loans - Indirect 2,675,479 12.7 Home equity loans & lines of credit 3,406,465 16.1 Residential mortgage 844,417 4.0 Other loans 613,289 2.9 - ---------------------------------------------------------------------------------------------------------------------- Total Consumer 10,734,242 50.8 - ---------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 21,127,862 100.0 - ---------------------------------------------------------------------------------------------------------------------- Total Loans by Business Segment - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 4,241,112 20.1 Northern Ohio 2,761,361 13.1 Southern Ohio / Kentucky 1,286,152 6.1 West Michigan 1,845,281 8.7 East Michigan 819,537 3.9 Indiana 663,425 3.1 - ---------------------------------------------------------------------------------------------------------------------- Total Regional Banking 11,616,868 55.0 - ---------------------------------------------------------------------------------------------------------------------- Dealer Sales 6,206,823 29.4 Private Financial Group 638,803 3.0 Treasury / Other 86,088 0.4 - ---------------------------------------------------------------------------------------------------------------------- TOTAL LOANS EXCLUDING FLORIDA 18,548,582 87.8 - ---------------------------------------------------------------------------------------------------------------------- Florida 2,579,280 12.2 - ---------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 21,127,862 100.0 - ----------------------------------------------------------------------------------------------------------------------
DEPOSIT COMPOSITION BY DEPOSIT TYPE AND BY BUSINESS SEGMENT - ------------------------------------------------------------------------------- (in thousands)
JUNE 30, 2001 - -------------------------------------------------------------------------------- --------------------------------- BY DEPOSIT TYPE BALANCE % - --------------------------------------------------------------------------------------------------------------------- Demand deposits Non-interest bearing $ 3,258,252 17.2 Interest bearing 4,878,355 25.7 Savings deposits 3,640,318 19.2 Other domestic time deposits 5,542,738 29.2 - --------------------------------------------------------------------------------------------------------------------- TOTAL CORE DEPOSITS (1) 17,319,663 91.3 - --------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 1,167,206 6.1 Brokered time deposits and negotiable CDs 100,233 0.5 Foreign time deposits 409,820 2.1 - --------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 18,996,922 100.0 - --------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS BY BUSINESS SEGMENT - -------------------------------------------------------------------------- Regional Banking Central Ohio / West Virginia $ 4,702,728 24.8 Northern Ohio 3,033,586 16.0 Southern Ohio / Kentucky 1,206,253 6.3 West Michigan 2,207,616 11.6 East Michigan 1,741,008 9.2 Indiana 542,694 2.9 - --------------------------------------------------------------------------------------------------------------------- Total Regional Banking 13,433,885 70.8 - --------------------------------------------------------------------------------------------------------------------- Dealer Sales 87,688 0.4 Private Financial Group 595,424 3.1 Treasury / Other (2) 420,678 2.2 - --------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS EXCLUDING FLORIDA 14,537,675 76.5 - --------------------------------------------------------------------------------------------------------------------- Florida 4,459,247 23.5 - --------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 18,996,922 100.0 - ---------------------------------------------------------------------------------------------------------------------
(1) Core deposits include non-interest bearing and interest bearing demand deposits, savings deposits, CDs under $100,000, and IRA deposits. (2) Comprised largely of brokered deposits and negotiable CDs. Page 3 HUNTINGTON BANCSHARES INCORPORATED - ------------------------------------------------------------------------------- CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS REPORTED BASIS (in millions)
AVERAGE BALANCES ------------------------------------------------------------------ 2002 2001 - ---------------------------------------------------------------------------------- -------------------------------------- Fully Tax Equivalent Basis (1) SECOND First Fourth Third Second - -------------------------------------------------------------------------------------------------------------------------- ASSETS Interest bearing deposits in banks $ 29 $ 34 $ 14 $ 5 $ 5 Trading account securities 6 5 8 8 39 Federal funds sold and securities purchased under resale agreements 68 62 86 86 93 Mortgages held for sale 174 381 433 344 420 Securities: Taxable 2,735 2,713 2,720 2,896 3,368 Tax exempt 96 101 108 140 201 - -------------------------------------------------------------------------------------------------------------------------- Total Securities 2,831 2,814 2,828 3,036 3,569 - -------------------------------------------------------------------------------------------------------------------------- Loans: Commercial 5,614 6,045 6,491 6,681 6,741 Real Estate Construction 1,420 1,455 1,492 1,388 1,303 Commercial 2,233 2,364 2,397 2,346 2,294 Consumer Auto leases - Indirect 3,113 3,166 3,229 3,243 3,222 Auto loans - Indirect 2,597 2,730 2,903 2,806 2,575 Home equity loans & lines of credit 2,911 3,209 3,554 3,456 3,344 Residential mortgage 1,229 1,021 892 854 942 Other loans 413 482 554 574 600 - -------------------------------------------------------------------------------------------------------------------------- Total Consumer 10,263 10,608 11,132 10,933 10,683 - -------------------------------------------------------------------------------------------------------------------------- Total Loans 19,530 20,472 21,512 21,348 21,021 - -------------------------------------------------------------------------------------------------------------------------- Allowance for loan losses 400 415 393 358 316 - -------------------------------------------------------------------------------------------------------------------------- Net loans 19,130 20,057 21,119 20,990 20,705 - -------------------------------------------------------------------------------------------------------------------------- Total earning assets 22,638 23,768 24,881 24,827 25,147 - -------------------------------------------------------------------------------------------------------------------------- Cash and due from banks 722 819 876 910 910 All other assets 1,997 2,372 2,613 2,609 2,608 - -------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $24,957 $ 26,544 $ 27,977 $ 27,988 $ 28,349 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Core deposits Non-interest bearing deposits $2,739 $ 3,041 $ 3,406 $ 3,341 $ 3,252 Interest bearing demand deposits 4,920 5,148 5,519 5,096 4,799 Savings deposits 2,808 3,097 3,388 3,472 3,547 Other domestic time deposits 4,218 5,015 5,923 5,940 5,718 - -------------------------------------------------------------------------------------------------------------------------- Total core deposits 14,685 16,301 18,236 17,849 17,316 - -------------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 852 1,052 1,199 1,262 1,294 Brokered time deposits and negotiable CDs 649 302 109 120 118 Foreign time deposits 296 270 230 257 377 - -------------------------------------------------------------------------------------------------------------------------- Total deposits 16,482 17,925 19,774 19,488 19,105 - -------------------------------------------------------------------------------------------------------------------------- Short-term borrowings 1,886 1,998 1,907 2,140 2,759 Medium-term notes 1,910 1,967 1,863 1,990 2,005 Subordinated notes and other long-term debt, including preferred capital securities 1,229 1,233 1,183 1,184 1,180 - -------------------------------------------------------------------------------------------------------------------------- Total interest bearing liabilities 18,768 20,082 21,321 21,461 21,797 - -------------------------------------------------------------------------------------------------------------------------- All other liabilities 1,107 1,051 889 811 897 Shareholders' equity 2,343 2,370 2,361 2,375 2,403 - -------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $24,957 $ 26,544 $ 27,977 $ 27,988 $ 28,349 - --------------------------------------------------------------------------------------------------------------------------
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. Page 4 HUNTINGTON BANCSHARES INCORPORATED - ------------------------------------------------------------------------------- CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS REPORTED BASIS (in millions)
AVERAGE RATES (3) ------------------------------------------------------------- 2002 2001 - ------------------------------------------------------------------------------------ -------------------------------- Fully Tax Equivalent Basis (1) SECOND First Fourth Third Second - ---------------------------------------------------------------------------------------------------------------------- ASSETS Interest bearing deposits in banks 2.44% 2.02% 2.09% 3.75% 5.09% Trading account securities 5.37 2.79 3.59 3.83 5.15 Federal funds sold and securities purchased under resale agreements 1.51 1.43 2.18 3.20 4.21 Mortgages held for sale 7.07 6.51 6.64 7.18 6.96 Securities: Taxable 6.33 6.43 6.62 6.71 6.26 Tax exempt 7.69 7.76 7.81 7.38 7.26 - ---------------------------------------------------------------------------------------------------------------------- Total Securities 6.37 6.48 6.66 6.75 6.32 - ---------------------------------------------------------------------------------------------------------------------- Loans: Commercial 5.50 5.39 5.86 6.92 7.44 Real Estate Construction 4.81 4.91 5.50 6.62 7.43 Commercial 6.36 6.62 6.85 7.54 7.92 Consumer Auto leases - Indirect 6.42 6.62 6.58 6.67 6.71 Auto loans - Indirect 7.98 8.03 8.24 8.45 8.70 Home equity loans & lines of credit 5.72 6.30 7.20 7.87 8.56 Residential mortgage 6.23 6.57 7.17 7.54 7.72 Other loans 7.47 7.41 8.12 7.89 8.01 - ---------------------------------------------------------------------------------------------------------------------- Total Consumer 6.64 6.92 7.34 7.65 7.94 - ---------------------------------------------------------------------------------------------------------------------- Total Loans 6.15 6.29 6.71 7.34 7.75 - ---------------------------------------------------------------------------------------------------------------------- Loan fees 0.55 0.48 0.51 0.53 0.56 - ---------------------------------------------------------------------------------------------------------------------- Total Loans with fees (2) 6.70 6.77 7.22 7.87 8.31 - ---------------------------------------------------------------------------------------------------------------------- Total earning assets 6.64% 6.71% 7.12% 7.70% 7.98% - ---------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Core deposits Non-interest bearing deposits Interest bearing demand deposits 1.84% 1.80% 2.00% 2.74% 2.87% Savings deposits 1.83 1.87 2.11 3.00 3.42 Other domestic time deposits 4.61 4.99 5.19 5.52 5.83 - ---------------------------------------------------------------------------------------------------------------------- Total core deposits 2.29 2.46 2.68 3.20 3.42 - ---------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 2.82 3.05 4.68 4.82 5.33 Brokered time deposits and negotiable CDs 2.48 2.48 3.55 4.42 5.57 Foreign time deposits 1.38 1.91 1.99 3.39 4.11 - ---------------------------------------------------------------------------------------------------------------------- Total deposits 2.31 2.49 2.80 3.32 3.58 - ---------------------------------------------------------------------------------------------------------------------- Short-term borrowings 1.97 2.36 2.65 3.69 4.37 Medium-term notes 3.21 3.43 4.58 6.12 6.59 Subordinated notes and other long-term debt, including preferred capital securities 4.05 4.14 4.96 5.19 5.96 - ---------------------------------------------------------------------------------------------------------------------- Total interest bearing liabilities 2.82% 3.04% 3.51% 4.23% 4.62% - ---------------------------------------------------------------------------------------------------------------------- Net interest rate spread 3.82% 3.67% 3.61% 3.47% 3.36% Impact of non-interest bearing funds on margin 0.48 0.47 0.50 0.57 0.61 - ---------------------------------------------------------------------------------------------------------------------- NET INTEREST MARGIN 4.30% 4.14% 4.11% 4.04% 3.97% - ----------------------------------------------------------------------------------------------------------------------
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Total loans with fees rate includes loan fees, whereas individual loan components above are shown exclusive of fees. (3) Loan and deposit average rates include impact of applicable derivatives. Page 5 HUNTINGTON BANCSHARES INCORPORATED SELECTED QUARTERLY INCOME STATEMENT DATA REPORTED BASIS
2002 - ------------------------------------------------------------------------------------------------------------------ (in thousands, except per share amounts) SECOND First - ------------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME $241,859 $ 242,825 Provision for loan losses 53,892 55,781 - ------------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 187,967 187,044 - ------------------------------------------------------------------------------------------------------------------ Service charges on deposit accounts 35,354 38,530 Brokerage and insurance income 17,677 18,792 Trust services 16,247 15,501 Mortgage banking 10,725 19,565 Bank Owned Life Insurance income 11,443 11,676 Other service charges and fees 10,529 10,632 Other 15,039 10,931 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST INCOME BEFORE GAIN ON SALE OF FLORIDA OPERATIONS AND SECURITIES GAINS (LOSSES) 117,014 125,627 Gain on sale of Florida operations --- 175,344 Securities gains (losses) 966 457 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST INCOME 117,980 301,428 - ------------------------------------------------------------------------------------------------------------------ Personnel costs 105,146 114,285 Outside data processing and other services 16,592 18,439 Equipment 16,659 16,949 Net occupancy 14,756 17,239 Marketing 7,231 7,003 Professional services 6,267 5,401 Telecommunications 5,320 6,018 Printing and supplies 3,683 3,837 Franchise and other taxes 2,313 2,328 Amortization of intangible assets 235 1,376 Other 13,858 14,511 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES 192,060 207,386 Special charges --- 56,184 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST EXPENSE AFTER SPECIAL CHARGES 192,060 263,570 - ------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) BEFORE INCOME TAXES 113,887 224,902 Income taxes 31,647 127,175 - ------------------------------------------------------------------------------------------------------------------ NET INCOME $ 82,240 $ 97,727 - ------------------------------------------------------------------------------------------------------------------ PER COMMON SHARE Net Income - Diluted $0.33 $0.39 Cash Dividends Declared $0.16 $0.16 RETURN ON: Average total assets 1.32% 1.49% Average total shareholders' equity 14.1% 16.7% Net interest margin (1) 4.30% 4.14% Efficiency ratio (2) 53.3% 55.7% REVENUE - FULLY TAXABLE EQUIVALENT (FTE) Net Interest Income $241,859 $ 242,825 Tax Equivalent Adjustment (1) 1,071 1,169 - ------------------------------------------------------------------------------------------------------------------ Net Interest Income 242,930 243,994 Non-Interest Income 117,980 301,428 - ------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE $360,910 $ 545,422 - ------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE EXCLUDING SECURITIES GAINS (LOSSES) $359,944 $ 544,965 - ------------------------------------------------------------------------------------------------------------------
2001 - ------------------------------------------------------------------------ -------------------------------------------------------- (in thousands, except per share amounts) Fourth Third Second - --------------------------------------------------------------------------------------------------------------------------------- NET INTEREST INCOME $255,238 $249,787 $248,033 Provision for loan losses 108,275 49,559 117,495 - --------------------------------------------------------------------------------------------------------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 146,963 200,228 130,538 - --------------------------------------------------------------------------------------------------------------------------------- Service charges on deposit accounts 42,753 41,719 40,673 Brokerage and insurance income 20,966 19,912 19,388 Trust services 15,321 15,485 15,178 Mortgage banking 15,768 14,616 18,733 Bank Owned Life Insurance income 9,560 9,560 9,561 Other service charges and fees 12,552 12,350 12,217 Other 16,088 15,755 14,956 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL NON-INTEREST INCOME BEFORE GAIN ON SALE OF FLORIDA OPERATIONS AND SECURITIES GAINS (LOSSES) 133,008 129,397 130,706 Gain on sale of Florida operations --- --- --- Securities gains (losses) 89 1,059 (2,503) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL NON-INTEREST INCOME 133,097 130,456 128,203 - --------------------------------------------------------------------------------------------------------------------------------- Personnel costs 118,143 120,767 122,068 Outside data processing and other services 17,992 17,375 17,671 Equipment 20,593 20,151 19,844 Net occupancy 19,950 19,266 18,188 Marketing 6,345 6,921 7,852 Professional services 6,235 5,912 6,763 Telecommunications 6,793 6,859 7,207 Printing and supplies 4,293 4,450 4,565 Franchise and other taxes 2,893 2,470 2,246 Amortization of intangible assets 10,100 10,114 10,435 Other 14,017 14,605 16,457 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES 227,354 228,890 233,296 Special charges 15,143 50,817 33,997 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL NON-INTEREST EXPENSE AFTER SPECIAL CHARGES 242,497 279,707 267,293 - --------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 37,563 50,977 (8,552) Income taxes (28,086) 8,348 (10,929) - --------------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 65,649 $ 42,629 $ 2,377 - --------------------------------------------------------------------------------------------------------------------------------- PER COMMON SHARE Net Income - Diluted $0.26 $0.17 $0.01 Cash Dividends Declared $0.16 $0.16 $0.20 RETURN ON: Average total assets 0.93% 0.60% 0.03% Average total shareholders' equity 11.0% 7.1% 0.4% Net interest margin (1) 4.11% 4.04% 3.97% Efficiency ratio (2) 55.8% 57.5% 58.6% REVENUE - FULLY TAXABLE EQUIVALENT (FTE) Net Interest Income $255,238 $249,787 $248,033 Tax Equivalent Adjustment (1) 1,292 1,442 1,616 - --------------------------------------------------------------------------------------------------------------------------------- Net Interest Income 256,530 251,229 249,649 Non-Interest Income 133,097 130,456 128,203 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUE $389,627 $381,685 $377,852 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUE EXCLUDING SECURITIES GAINS (LOSSES) $389,538 $380,626 $380,355 - ---------------------------------------------------------------------------------------------------------------------------------
(1) Calculated assuming a 35% tax rate. (2) Excludes gain on sale of Florida operations and special charges. Page 6 HUNTINGTON BANCSHARES INCORPORATED LOAN LOSS RESERVE AND NET CHARGE-OFF ANALYSIS REPORTED BASIS
2002 - --------------------------------------------------------------------------------------------------------------------- (in thousands) SECOND First - ------------------------------------------------------------------------------------------------------------------------ ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $386,053 $410,572 Loan losses (57,482) (67,527) Recoveries of loans previously charged off 12,582 11,746 - ------------------------------------------------------------------------------------------------------------------------ Net loan losses (44,900) (55,781) - ------------------------------------------------------------------------------------------------------------------------ Allowance of assets sold --- (22,297) Allowance of securitized loans (2,034) (2,222) Provision for loan losses 53,892 55,781 - ------------------------------------------------------------------------------------------------------------------------ ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $393,011 $386,053 - ------------------------------------------------------------------------------------------------------------------------ Allowance for loan losses as a % of total loans 2.00% 2.00% Allowance for loan losses as a % of non-performing loans 185.3% 175.9% Allowance for loan losses and OREO as a % of non-performing assets 175.7% 170.9% NET CHARGE-OFFS BY LOAN TYPE Commercial $ 21,528 $ 19,586 Commercial real estate 2,037 3,983 - ------------------------------------------------------------------------------------------------------------------------ Total commercial and commercial real estate 23,565 23,569 Consumer Auto leases 8,401 12,809 Auto loans 7,356 12,759 Home equity loans & lines of credit 3,096 3,950 Residential mortgage 555 122 Other loans 1,927 2,572 - ------------------------------------------------------------------------------------------------------------------------ Total consumer 21,335 32,212 - ------------------------------------------------------------------------------------------------------------------------ TOTAL NET CHARGE-OFFS $ 44,900 $ 55,781 - ------------------------------------------------------------------------------------------------------------------------ NET CHARGE-OFFS - ANNUALIZED PERCENTAGES Commercial 1.54% 1.31% Commercial real estate 0.22 0.42 - ------------------------------------------------------------------------------------------------------------------------ Total commercial and commercial real estate 1.02 0.97 Consumer Auto leases 1.08 1.64 Auto loans 1.14 1.90 Home equity loans & lines of credit 0.43 0.50 Residential mortgage 0.18 0.05 Other loans 1.87 2.16 - ------------------------------------------------------------------------------------------------------------------------ Total consumer 0.83 1.23 - ------------------------------------------------------------------------------------------------------------------------ TOTAL NET CHARGE-OFFS 0.92% 1.11% - ------------------------------------------------------------------------------------------------------------------------ NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING EXITED BUSINESSES 0.88% 1.04% - ------------------------------------------------------------------------------------------------------------------------
2001 - --------------------------------------------------------------- ----------------------------------------------------------- (in thousands) Fourth Third Second - ------------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $360,446 $352,243 $301,777 Loan losses (66,808) (49,386) (75,472) Recoveries of loans previously charged off 10,662 9,643 10,007 - ------------------------------------------------------------------------------------------------------------------------------- Net loan losses (56,146) (39,743) (65,465) - ------------------------------------------------------------------------------------------------------------------------------- Allowance of assets sold --- --- --- Allowance of securitized loans (2,003) (1,613) (1,564) Provision for loan losses 108,275 49,559 117,495 - ------------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $410,572 $360,446 $352,243 - ------------------------------------------------------------------------------------------------------------------------------- Allowance for loan losses as a % of total loans 1.90% 1.67% 1.67% Allowance for loan losses as a % of non-performing loans 185.7% 178.4% 225.7% Allowance for loan losses and OREO as a % of non-performing assets 180.1% 171.1% 211.2% NET CHARGE-OFFS BY LOAN TYPE Commercial $ 22,555 $ 10,141 $ 13,190 Commercial real estate 797 3 1,624 - ------------------------------------------------------------------------------------------------------------------------------- Total commercial and commercial real estate 23,352 10,144 14,814 Consumer Auto leases 12,634 10,395 17,535 Auto loans 13,106 11,306 24,568 Home equity loans & lines of credit 4,153 4,866 2,936 Residential mortgage 376 109 241 Other loans 2,525 2,923 5,371 - ------------------------------------------------------------------------------------------------------------------------------- Total consumer 32,794 29,599 50,651 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL NET CHARGE-OFFS $ 56,146 $ 39,743 $ 65,465 - ------------------------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS - ANNUALIZED PERCENTAGES Commercial 1.38% 0.60% 0.78% Commercial real estate 0.08 0.00 0.18 - ------------------------------------------------------------------------------------------------------------------------------- Total commercial and commercial real estate 0.89 0.39 0.57 Consumer Auto leases 1.55 1.27 2.17 Auto loans 1.79 1.60 3.83 Home equity loans & lines of credit 0.46 0.56 0.35 Residential mortgage 0.17 0.05 0.10 Other loans 1.81 2.02 3.59 - ------------------------------------------------------------------------------------------------------------------------------- Total consumer 1.17 1.07 1.90 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL NET CHARGE-OFFS 1.04% 0.74% 1.25% - ------------------------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING EXITED BUSINESSES 0.98% 0.61% 0.73% - -------------------------------------------------------------------------------------------------------------------------------
Page 7 HUNTINGTON BANCSHARES INCORPORATED NON-PERFORMING ASSETS AND PAST DUE LOANS REPORTED BASIS
2002 - ---------------------------------------------------------------------------------------------------------------- (in thousands) SECOND First - ---------------------------------------------------------------------------------------------------------------- Non-accrual loans: Commercial $ 156,252 $ 162,959 Commercial real estate 45,795 43,295 Residential mortgage 8,776 11,896 - ---------------------------------------------------------------------------------------------------------------- Total Nonaccrual Loans 210,823 218,150 Renegotiated loans 1,268 1,268 - ---------------------------------------------------------------------------------------------------------------- TOTAL NON-PERFORMING LOANS 212,091 219,418 Other real estate, net 11,146 6,112 - ---------------------------------------------------------------------------------------------------------------- TOTAL NON-PERFORMING ASSETS $ 223,237 $ 225,530 - ---------------------------------------------------------------------------------------------------------------- Non-performing loans as a % of total loans 1.08% 1.13% Non-performing assets as a % of total loans and other real estate 1.14% 1.17% ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 58,449 $ 61,746
2002 - ---------------------------------------------------------------------------------------------------------------- (in thousands) SECOND First - ---------------------------------------------------------------------------------------------------------------- NON-PERFORMING ASSETS, BEGINNING OF PERIOD $ 225,530 $ 227,493 New non-performing assets 73,002 74,446 Loan losses (28,297) (26,072) Payments (44,303) (37,663) Sales (2,358) (8,925)(1) Other (337) (3,749) - ---------------------------------------------------------------------------------------------------------------- NON-PERFORMING ASSETS, END OF PERIOD $ 223,237 $ 225,530 - ----------------------------------------------------------------------------------------------------------------
2001 - --------------------------------------------------------------------------------------------------------------------------- (in thousands) Fourth Third Second - --------------------------------------------------------------------------------------------------------------------------- Non-accrual loans: Commercial $ 159,637 $ 148,177 $ 116,044 Commercial real estate 48,360 40,882 26,870 Residential mortgage 11,836 11,666 11,868 - --------------------------------------------------------------------------------------------------------------------------- Total Nonaccrual Loans 219,833 200,725 154,782 Renegotiated loans 1,276 1,286 1,290 - --------------------------------------------------------------------------------------------------------------------------- TOTAL NON-PERFORMING LOANS 221,109 202,011 156,072 Other real estate, net 6,384 8,050 9,913 - --------------------------------------------------------------------------------------------------------------------------- TOTAL NON-PERFORMING ASSETS $ 227,493 $ 210,061 $ 165,985 - --------------------------------------------------------------------------------------------------------------------------- Non-performing loans as a % of total loans 1.02% 0.94% 0.74% Non-performing assets as a % of total loans and other real estate 1.05% 0.97% 0.79% ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 91,635 $ 92,791 $ 67,077
2001 - --------------------------------------------------------------------------------------------------------------------------- (in thousands) Fourth Third Second - --------------------------------------------------------------------------------------------------------------------------- NON-PERFORMING ASSETS, BEGINNING OF PERIOD $ 210,061 $ 165,985 $ 124,886 New non-performing assets 85,986 94,990 95,037(2) Loan losses (34,580) (12,480) (13,188) Payments (28,315) (34,219) (19,332) Sales (4,131) (3,331) (21,306)(2) Other (1,528) (884) (112) - --------------------------------------------------------------------------------------------------------------------------- NON-PERFORMING ASSETS, END OF PERIOD $ 227,493 $ 210,061 $ 165,985 - ---------------------------------------------------------------------------------------------------------------------------
(1) Includes $6.5 million related to the sale of Florida operations. (2) Includes $14.9 million related to investment in Pacific Gas & Electric commercial paper. Page 8 HUNTINGTON BANCSHARES INCORPORATED STOCK SUMMARY, CAPITAL, AND OTHER DATA REPORTED BASIS
2002 - -------------------------------------------------------------------------------------------------------------- SECOND First - -------------------------------------------------------------------------------------------------------------- High $ 21.770 $ 20.310 Low 18.590 16.660 Close 19.420 19.700 Average Closing Price 20.089 18.332 Cash dividends declared $ 0.16 $ 0.16 Note: Intra-day and closing stock price quotations were obtained from NASDAQ. - --------------------------------------------------------------------------------------------------------------
CAPITAL DATA - END OF PERIOD 2002 - -------------------------------------------------------------------------------------------------------------- (in millions) SECOND (1) First - -------------------------------------------------------------------------------------------------------------- Total Risk-Adjusted Assets $ 25,320 $ 24,935 Tier 1 Risk-Based Capital Ratio 9.72% 10.26% Total Risk-Based Capital Ratio 12.75% 13.40% Tier 1 Leverage Ratio 9.94% 9.72% Tangible Equity / Asset Ratio 8.41% 9.03% - --------------------------------------------------------------------------------------------------------------
OTHER DATA - END OF PERIOD 2002 - -------------------------------------------------------------------------------------------------------------- SECOND First - -------------------------------------------------------------------------------------------------------------- Number of employees (full-time equivalent) Huntington, excluding Florida operations 8,174 8,342 Florida operations (2) --- --- - -------------------------------------------------------------------------------------------------------------- Total Huntington 8,174 8,342 - --------------------------------------------------------------------------------------------------------------
2001 - ----------------------------------------------------------------------- ------------------------------------------------------ Fourth Third Second - ---------------------------------------------------------------------------------------------------------------------------------- High $ 17.490 $ 19.280 $ 17.000 Low 14.510 15.150 13.875 Close 17.190 17.310 16.375 Average Closing Price 16.269 17.696 14.936 Cash dividends declared $ 0.16 $ 0.16 $ 0.20 Note: Intra-day and closing stock price quotations were obtained from NASDAQ. - ----------------------------------------------------------------------------------------------------------------------------------
CAPITAL DATA - END OF PERIOD 2001 - ----------------------------------------------------------------------- ------------------------------------------------------ (in millions) Fourth Third Second - ---------------------------------------------------------------------------------------------------------------------------------- Total Risk-Adjusted Assets $ 27,896 $ 27,757 $ 27,375 Tier 1 Risk-Based Capital Ratio 7.24% 6.97% 7.01% Total Risk-Based Capital Ratio 10.29% 10.13% 10.20% Tier 1 Leverage Ratio 7.41% 7.10% 6.96% Tangible Equity / Asset Ratio 6.04% 5.96% 5.97%
OTHER DATA - END OF PERIOD 2001 - ----------------------------------------------------------------------- --------------------------------------------------------- Fourth Third Second - --------------------------------------------------------------------------------------------------------------------------------- Number of employees (full-time equivalent) Huntington, excluding Florida operations 8,521 8,487 8,566 Florida operations (2) 1,222 1,232 1,215 - --------------------------------------------------------------------------------------------------------------------------------- Total Huntington 9,743 9,719 9,781 - ---------------------------------------------------------------------------------------------------------------------------------
(1) Estimated. (2) Excludes impact of support staff for Florida operations outside of Florida. Page 9 SUPPLEMENTAL SELECTED INFORMATION -- OPERATING BASIS EXCLUDES: - RESULTS OF FLORIDA OPERATIONS - GAIN FROM SALES OF FLORIDA OPERATIONS - RESTRUCTURING AND OTHER CHARGES Page 10 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME OPERATING BASIS (1)
THREE MONTHS ENDED JUNE 30, - --------------------------------------------------------------------------------------------------------- (in thousands, except per share amounts) 2002 2001 - --------------------------------------------------------------------------------------------------------- Net Interest Income $ 241,859 $225,883 Provision for loan losses 53,892 41,937 - --------------------------------------------------------------------------------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 187,967 183,946 - --------------------------------------------------------------------------------------------------------- Total non-interest income 115,270 113,608 Total non-interest expense 190,185 192,443 - --------------------------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 113,052 105,111 Income taxes 31,344 29,509 - --------------------------------------------------------------------------------------------------------- NET INCOME $ 81,708 $ 75,602 - --------------------------------------------------------------------------------------------------------- PER COMMON SHARE Net income Basic $0.33 $0.30 Diluted $0.33 $0.30 Cash dividends declared $0.16 $0.20 AVERAGE COMMON SHARES Basic 246,106 251,024 Diluted 247,867 251,448 - -----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, - --------------------------------------------------------------------------------------------------------- (in thousands, except per share amounts) 2002 2001 - --------------------------------------------------------------------------------------------------------- Net Interest Income $ 474,960 $447,901 Provision for loan losses 104,487 71,646 - --------------------------------------------------------------------------------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 370,473 376,255 - --------------------------------------------------------------------------------------------------------- Total non-interest income 230,721 212,259 Total non-interest expense 379,236 386,260 - --------------------------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 221,958 202,254 Income taxes 60,737 55,197 - --------------------------------------------------------------------------------------------------------- NET INCOME $ 161,221 $147,057 - --------------------------------------------------------------------------------------------------------- PER COMMON SHARE Net income Basic $0.65 $0.58 Diluted $0.65 $0.58 Cash dividends declared $0.32 $0.40 AVERAGE COMMON SHARES Basic 248,415 250,984 Diluted 249,946 251,479
THREE MONTHS ENDED JUNE 30, CHANGE - ---------------------------------------------------------------------- ----------------------------------- (in thousands, except per share amounts) Amount Percent - ---------------------------------------------------------------------- ----------------------------------- Net Interest Income $ 15,976 7.1% Provision for loan losses 11,955 28.5 - ---------------------------------------------------------------------- ----------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 4,021 2.2 - ---------------------------------------------------------------------- ----------------------------------- Total non-interest income 1,662 1.5 Total non-interest expense (2,258) (1.2) - ---------------------------------------------------------------------- ----------------------------------- INCOME BEFORE INCOME TAXES 7,941 7.6 Income taxes 1,835 6.2 - ---------------------------------------------------------------------- ----------------------------------- NET INCOME $ 6,106 8.1% - ---------------------------------------------------------------------- ----------------------------------- PER COMMON SHARE Net income Basic $ 0.03 10.0% Diluted $ 0.03 10.0% Cash dividends declared $ (0.04) (20.0)% AVERAGE COMMON SHARES Basic (4,918) (2.0)% Diluted (3,581) (1.4)% - ----------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, CHANGE - ---------------------------------------------------------------------- ----------------------------------- (in thousands, except per share amounts) Amount Percent - ---------------------------------------------------------------------- ----------------------------------- Net Interest Income $ 27,059 6.0% Provision for loan losses 32,841 45.8 - ---------------------------------------------------------------------- ----------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (5,782) (1.5) - ---------------------------------------------------------------------- ----------------------------------- Total non-interest income 18,462 8.7 Total non-interest expense (7,024) (1.8) - ---------------------------------------------------------------------- ----------------------------------- INCOME BEFORE INCOME TAXES 19,704 9.7 Income taxes 5,540 10.0 - ---------------------------------------------------------------------- ----------------------------------- NET INCOME $ 14,164 9.6% - ---------------------------------------------------------------------- ----------------------------------- PER COMMON SHARE Net income Basic $ 0.07 12.1% Diluted $ 0.07 12.1% Cash dividends declared $ (0.08) (20.0)% AVERAGE COMMON SHARES Basic (2,569) (1.0)% Diluted (1,533) (0.6)%
(1) See page 10 for definition of Operating Basis. of related income taxes. The first six months of 2002 excludes the pre-tax impact of the $175.3 million gain on the sale of the Florida operations along with $56.2 million of restructuring and other charges and $98.9 million of related income taxes. The first six months of 2001 excludes $111.0 million of pre-tax restructuring and other charges and $38.8 million of related income taxes. All periods presented also exclude the results of the Florida operations, including the J. Rolfe Davis Insurance Agency, Inc. up to the date of sale in the second quarter 2002. Page 11 HUNTINGTON BANCSHARES INCORPORATED LOANS AND DEPOSITS OPERATING BASIS (1)
2002 - -------------------------------------------------------------------------------------------------------------------- (in thousands) SECOND First - -------------------------------------------------------------------------------------------------------------------- LOAN PORTFOLIO COMPOSITION - AVERAGE - ------------------------------------------------------------------------- Commercial $ 5,613,550 $ 5,661,005 Commercial real estate 3,652,906 3,601,097 - ---------------------------------------------------------------------------------------------------------------------- Total Commercial and Commercial Real Estate 9,266,456 9,262,102 - ---------------------------------------------------------------------------------------------------------------------- Consumer Auto leases - Indirect 3,113,148 3,166,161 Auto loans - Indirect 2,596,908 2,559,700 Home equity loans & lines of credit 2,910,612 2,788,083 Residential mortgage 1,229,390 904,277 Other loans 413,975 424,111 - ---------------------------------------------------------------------------------------------------------------------- Total Consumer 10,264,033 9,842,332 - ---------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 19,530,489 $ 19,104,434 - ---------------------------------------------------------------------------------------------------------------------- LOAN PORTFOLIO COMPOSITION - END OF PERIOD - ------------------------------------------------------------------------- Commercial $ 5,591,280 $ 5,681,788 Commercial real estate 3,699,424 3,645,114 - ---------------------------------------------------------------------------------------------------------------------- Total Commercial and Commercial Real Estate 9,290,704 9,326,902 - ---------------------------------------------------------------------------------------------------------------------- Consumer Auto leases - Indirect 3,120,317 3,126,101 Auto loans - Indirect 2,630,541 2,561,936 Home equity loans & lines of credit 2,990,726 2,830,814 Residential mortgage 1,210,991 1,075,141 Other loans 408,891 418,053 - ---------------------------------------------------------------------------------------------------------------------- Total Consumer 10,361,466 10,012,045 - ---------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 19,652,170 $ 19,338,947 - ---------------------------------------------------------------------------------------------------------------------- DEPOSIT COMPOSITION - AVERAGE - ------------------------------------------------------------------------- Demand deposits Non-interest bearing $ 2,738,621 $ 2,737,978 Interest bearing 4,920,120 4,362,050 Savings deposits 2,807,874 2,829,922 Other domestic time deposits 4,218,104 4,097,383 - ---------------------------------------------------------------------------------------------------------------------- TOTAL CORE DEPOSITS (2) 14,684,719 14,027,333 - ---------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 852,407 958,812 Brokered time deposits and negotiable CDs 649,340 301,612 Foreign time deposits 296,428 267,512 - ---------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 16,482,894 $ 15,555,269 - ---------------------------------------------------------------------------------------------------------------------- DEPOSIT COMPOSITION - END OF PERIOD - ------------------------------------------------------------------------- Demand deposits Non-interest bearing $ 2,769,936 $ 2,857,233 Interest bearing 5,105,196 4,747,283 Savings deposits 2,839,115 2,895,445 Other domestic time deposits 4,238,688 4,179,814 - ---------------------------------------------------------------------------------------------------------------------- TOTAL CORE DEPOSITS (2) 14,952,935 14,679,775 - ---------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 765,163 895,427 Brokered time deposits and negotiable CDs 849,347 451,173 Foreign time deposits 293,655 240,410 - ---------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 16,861,100 $ 16,266,785 - ----------------------------------------------------------------------------------------------------------------------
2001 - ---------------------------------------------------------------------------------------------------------------------------------- (in thousands) Fourth Third Second - ---------------------------------------------------------------------------------------------------------------------------------- LOAN PORTFOLIO COMPOSITION - AVERAGE - ------------------------------------------------------------------------- Commercial $ 5,750,830 $ 5,945,639 $ 5,986,587 Commercial real estate 3,467,082 3,314,778 3,183,814 - ---------------------------------------------------------------------------------------------------------------------------------- Total Commercial and Commercial Real Estate 9,217,912 9,260,417 9,170,401 - ---------------------------------------------------------------------------------------------------------------------------------- Consumer Auto leases - Indirect 3,229,203 3,242,864 3,221,612 Auto loans - Indirect 2,489,183 2,445,459 2,289,014 Home equity loans & lines of credit 2,753,141 2,709,125 2,663,676 Residential mortgage 671,967 619,578 696,160 Other loans 445,740 458,999 485,096 - ---------------------------------------------------------------------------------------------------------------------------------- Total Consumer 9,589,234 9,476,025 9,355,558 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 18,807,146 $ 18,736,442 $ 18,525,959 - ---------------------------------------------------------------------------------------------------------------------------------- LOAN PORTFOLIO COMPOSITION - END OF PERIOD - ------------------------------------------------------------------------- Commercial $ 5,685,719 $ 5,912,371 $ 6,012,647 Commercial real estate 3,555,354 3,432,502 3,227,577 - ---------------------------------------------------------------------------------------------------------------------------------- Total Commercial and Commercial Real Estate 9,241,073 9,344,873 9,240,224 - ---------------------------------------------------------------------------------------------------------------------------------- Consumer Auto leases - Indirect 3,207,514 3,221,300 3,194,592 Auto loans - Indirect 2,501,054 2,509,504 2,300,212 Home equity loans & lines of credit 2,754,612 2,742,016 2,689,868 Residential mortgage 736,802 652,373 623,492 Other loans 437,293 475,552 500,194 - ---------------------------------------------------------------------------------------------------------------------------------- Total Consumer 9,637,275 9,600,745 9,308,358 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL LOANS $ 18,878,348 $ 18,945,618 $ 18,548,582 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT COMPOSITION - AVERAGE - ------------------------------------------------------------------------- Demand deposits Non-interest bearing $ 2,824,035 $ 2,761,240 $ 2,667,334 Interest bearing 4,013,874 3,687,335 3,455,963 Savings deposits 2,862,649 2,922,867 2,976,864 Other domestic time deposits 4,123,478 4,126,677 3,942,256 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CORE DEPOSITS (2) 13,824,036 13,498,119 13,042,417 - ---------------------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 1,007,978 1,053,133 1,077,601 Brokered time deposits and negotiable CDs 108,591 119,646 118,321 Foreign time deposits 223,675 249,753 371,276 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 15,164,280 $ 14,920,651 $ 14,609,615 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT COMPOSITION - END OF PERIOD - ------------------------------------------------------------------------- Demand deposits Non-interest bearing $ 2,997,449 $ 2,889,319 $ 2,660,607 Interest bearing 4,197,893 3,841,646 3,521,499 Savings deposits 2,943,508 2,929,922 3,061,890 Other domestic time deposits 4,077,510 4,214,865 3,833,761 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CORE DEPOSITS (2) 14,216,360 13,875,752 13,077,757 - ---------------------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 944,361 1,114,421 955,616 Brokered time deposits and negotiable CDs 137,915 128,878 100,233 Foreign time deposits 220,749 359,452 404,069 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS $ 15,519,385 $ 15,478,503 $ 14,537,675 - ----------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis. (2) Core deposits include non-interest bearing and interest bearing demand deposits, savings deposits, CDs under $100,000, and IRA deposits. Page 12 HUNTINGTON BANCSHARES INCORPORATED - ------------------------------------------------------------------------------- CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS OPERATING BASIS (1) (in millions)
AVERAGE BALANCES ------------------------------------------------------------------- 2002 2001 - --------------------------------------------------------------------------------------- -------------------------------------- Fully Tax Equivalent Basis (2) SECOND First Fourth Third Second - ------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest bearing deposits in banks $ 29 $ 34 $ 14 $ 5 $ 5 Trading account securities 6 5 8 8 39 Federal funds sold and securities purchased under resale agreements 68 62 86 86 93 Mortgages held for sale 174 381 433 344 420 Securities: Taxable 2,735 2,713 2,720 2,896 3,368 Tax exempt 96 102 108 140 201 - ------------------------------------------------------------------------------------------------------------------------------- Total Securities 2,831 2,815 2,828 3,036 3,569 - ------------------------------------------------------------------------------------------------------------------------------- Loans: Commercial 5,614 5,661 5,751 5,946 5,986 Real Estate Construction 1,420 1,405 1,386 1,281 1,190 Commercial 2,233 2,196 2,081 2,034 1,994 Consumer Auto leases - Indirect 3,113 3,166 3,229 3,243 3,222 Auto loans - Indirect 2,597 2,560 2,489 2,445 2,289 Home equity loans & lines of credit 2,911 2,788 2,753 2,709 2,664 Residential mortgage 1,229 904 672 619 696 Other loans 413 424 446 459 485 - ------------------------------------------------------------------------------------------------------------------------------- Total Consumer 10,263 9,842 9,589 9,475 9,356 - ------------------------------------------------------------------------------------------------------------------------------- Total Loans 19,530 19,104 18,807 18,736 18,526 - ------------------------------------------------------------------------------------------------------------------------------- Allowance for loan losses 400 403 371 315 279 - ------------------------------------------------------------------------------------------------------------------------------- Net loans 19,130 18,701 18,436 18,421 18,247 - ------------------------------------------------------------------------------------------------------------------------------- Total earning assets 22,638 22,401 22,176 22,215 22,652 - ------------------------------------------------------------------------------------------------------------------------------- Cash and due from banks 722 774 798 831 830 All other assets 1,997 2,008 2,010 2,002 1,990 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 24,957 $24,780 $ 24,613 $24,733 $ 25,193 - ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Core deposits Non-interest bearing deposits $ 2,739 $ 2,738 $ 2,824 $ 2,761 $ 2,667 Interest bearing demand deposits 4,920 4,362 4,014 3,687 3,456 Savings deposits 2,808 2,830 2,863 2,923 2,977 Other domestic time deposits 4,218 4,097 4,123 4,127 3,942 - ------------------------------------------------------------------------------------------------------------------------------- Total core deposits 14,685 14,027 13,824 13,498 13,042 - ------------------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 852 959 1,008 1,053 1,078 Brokered time deposits and negotiable CDs 649 302 109 120 118 Foreign time deposits 296 268 224 250 371 - ------------------------------------------------------------------------------------------------------------------------------- Total deposits 16,482 15,556 15,165 14,921 14,609 - ------------------------------------------------------------------------------------------------------------------------------- Short-term borrowings 1,886 1,925 1,745 1,998 2,628 Medium-term notes 1,910 2,645 3,272 3,443 3,476 Subordinated notes and other long-term debt, including preferred capital securities 1,229 1,232 1,183 1,184 1,180 - ------------------------------------------------------------------------------------------------------------------------------- Total interest bearing liabilities 18,768 18,620 18,541 18,785 19,226 - ------------------------------------------------------------------------------------------------------------------------------- All other liabilities 1,107 1,052 887 812 897 Shareholders' equity 2,343 2,370 2,361 2,375 2,403 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 24,957 $24,780 $ 24,613 $24,733 $ 25,193 - -------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis. (2) Fully tax equivalent yields are calculated assuming a 35% tax rate. Page 13 HUNTINGTON BANCSHARES INCORPORATED - ------------------------------------------------------------------------------- CONSOLIDATED QUARTERLY NET INTEREST MARGIN ANALYSIS OPERATING BASIS (1) (IN MILLIONS)
AVERAGE RATES (4) ------------------------------------------------------------------- 2002 2001 - --------------------------------------------------------------------------------------- -------------------------------------- Fully Tax Equivalent Basis (2) SECOND First Fourth Third Second - ------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest bearing deposits in banks 2.44% 2.02% 2.09% 3.75% 5.09% Trading account securities 5.37 2.79 3.59 3.83 5.15 Federal funds sold and securities purchased under resale agreements 1.51 1.43 2.18 3.20 4.21 Mortgages held for sale 7.07 6.51 6.64 7.18 6.96 Securities: Taxable 6.33 6.43 6.62 6.71 6.26 Tax exempt 7.69 7.76 7.81 7.38 7.26 - ------------------------------------------------------------------------------------------------------------------------------- Total Securities 6.37 6.48 6.66 6.75 6.32 - ------------------------------------------------------------------------------------------------------------------------------- Loans: Commercial 5.50 5.37 5.81 6.93 7.41 Real Estate Construction 4.81 4.91 5.49 6.60 7.44 Commercial 6.36 6.66 6.88 7.58 7.95 Consumer Auto leases - Indirect 6.42 6.62 6.58 6.67 6.71 Auto loans - Indirect 7.98 7.98 8.29 8.61 8.86 Home equity loans & lines of credit 5.72 6.09 7.05 7.73 8.47 Residential mortgage 6.23 6.60 7.10 7.55 7.70 Other loans 7.47 7.64 8.26 8.04 8.14 - ------------------------------------------------------------------------------------------------------------------------------- Total Consumer 6.64 6.86 7.27 7.59 7.88 - ------------------------------------------------------------------------------------------------------------------------------- Total Loans 6.15 6.25 6.65 7.32 7.71 - ------------------------------------------------------------------------------------------------------------------------------- Loan fees 0.55 0.49 0.53 0.56 0.60 - ------------------------------------------------------------------------------------------------------------------------------- Total Loans with fees (3) 6.70 6.74 7.18 7.88 8.31 - ------------------------------------------------------------------------------------------------------------------------------- Total earning assets 6.64% 6.68% 7.08% 7.69% 7.94% - ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Core deposits Non-interest bearing deposits Interest bearing demand deposits 1.84% 1.79% 1.93% 2.73% 2.87% Savings deposits 1.83 1.85 2.08 3.04 3.46 Other domestic time deposits 4.61 4.99 5.18 5.52 5.83 - ------------------------------------------------------------------------------------------------------------------------------- Total core deposits 2.29 2.39 2.54 3.09 3.31 - ------------------------------------------------------------------------------------------------------------------------------- Domestic time deposits of $100,000 or more 2.82 2.91 4.66 4.70 5.23 Brokered time deposits and negotiable CDs 2.48 2.48 3.55 4.42 5.57 Foreign time deposits 1.38 1.92 1.99 3.40 4.11 - ------------------------------------------------------------------------------------------------------------------------------- Total deposits 2.31 2.41 2.68 3.22 3.49 - ------------------------------------------------------------------------------------------------------------------------------- Short-term borrowings 1.97 2.39 2.73 3.75 4.40 Medium-term notes 3.21 3.00 3.45 4.82 5.51 Subordinated notes and other long-term debt, including preferred capital securities 4.05 4.14 4.96 5.19 5.96 - ------------------------------------------------------------------------------------------------------------------------------- Total interest bearing liabilities 2.82% 2.96% 3.37% 4.17% 4.62% - ------------------------------------------------------------------------------------------------------------------------------- Net interest rate spread 3.82% 3.72% 3.71% 3.52% 3.32% Impact of non-interest bearing funds on margin 0.48 0.49 0.55 0.65 0.71 - ------------------------------------------------------------------------------------------------------------------------------- NET INTEREST MARGIN 4.30% 4.21% 4.26% 4.17% 4.03% - -------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis. (2) Fully tax equivalent yields are calculated assuming a 35% tax rate. (3) Total loans with fees rate includes loan fees, whereas individual loan components above are shown exclusive of fees. (4) Loan and deposit average rates include impact of applicable derivatives. Page 14 HUNTINGTON BANCSHARES INCORPORATED SELECTED QUARTERLY INCOME STATEMENT DATA OPERATING BASIS (1)
2002 - -------------------------------------------------------------------------------------------------------------- (in thousands, except per share amounts) SECOND First - ------------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME $ 241,859 $233,101 Provision for loan losses 53,892 50,595 - ------------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 187,967 182,506 - ------------------------------------------------------------------------------------------------------------------ Service charges on deposit accounts 35,354 34,282 Brokerage and insurance income 14,967 14,587 Trust services 16,247 15,096 Mortgage banking 10,725 19,644 Bank Owned Life Insurance income 11,443 11,676 Other service charges and fees 10,529 9,118 Other 15,039 10,591 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST INCOME BEFORE SECURITIES GAINS 114,304 114,994 Securities gains 966 457 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST INCOME 115,270 115,451 - ------------------------------------------------------------------------------------------------------------------ Personnel costs 103,589 104,320 Outside data processing and other services 16,592 17,097 Equipment 16,608 15,582 Net occupancy 14,642 14,771 Marketing 7,219 7,174 Professional services 6,265 5,242 Telecommunications 5,302 5,282 Printing and supplies 3,671 3,519 Franchise and other taxes 2,313 2,326 Amortization of intangible assets 203 251 Other 13,781 13,487 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST EXPENSE 190,185 189,051 - ------------------------------------------------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES 113,052 108,906 Income taxes 31,344 29,393 - ------------------------------------------------------------------------------------------------------------------ NET INCOME $ 81,708 $ 79,513 - ------------------------------------------------------------------------------------------------------------------ NET INCOME PER COMMON SHARE - DILUTED $0.33 $0.32 RETURN ON Average total assets 1.31% 1.30% Average total shareholders' equity 14.0% 13.6% Net interest margin (2) 4.30% 4.21% Efficiency ratio 53.2% 54.1% Effective tax rate 27.7% 27.0% REVENUE - FULLY TAXABLE EQUIVALENT (FTE) Net Interest Income $ 241,859 $233,101 Tax Equivalent Adjustment (2) 1,071 1,169 - ------------------------------------------------------------------------------------------------------------------ Net Interest Income 242,930 234,270 Non-Interest Income 115,270 115,451 - ------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE $ 358,200 $349,721 - ------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE EXCLUDING SECURITIES GAINS $ 357,234 $349,264 - ------------------------------------------------------------------------------------------------------------------
2001 - ------------------------------------------------------------------------------------------------------------------------ (in thousands, except per share amounts) Fourth Third Second - ------------------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME $235,546 $230,462 $ 225,883 Provision for loan losses 54,281 46,027 41,937 - ------------------------------------------------------------------------------------------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 181,265 184,435 183,946 - ------------------------------------------------------------------------------------------------------------------------ Service charges on deposit accounts 35,220 33,593 32,650 Brokerage and insurance income 15,066 13,943 13,185 Trust services 14,679 14,816 14,431 Mortgage banking 15,049 13,859 17,672 Bank Owned Life Insurance income 9,560 9,560 9,561 Other service charges and fees 9,582 9,547 9,383 Other 15,135 14,722 13,979 - ------------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST INCOME BEFORE SECURITIES GAINS 114,291 110,040 110,861 Securities gains 89 1,059 2,747 - ------------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST INCOME 114,380 111,099 113,608 - ------------------------------------------------------------------------------------------------------------------------ Personnel costs 100,076 101,866 103,707 Outside data processing and other services 15,414 14,650 15,100 Equipment 18,117 17,580 17,363 Net occupancy 15,251 14,481 13,755 Marketing 5,305 5,717 6,807 Professional services 6,069 5,754 6,481 Telecommunications 5,647 5,728 5,964 Printing and supplies 3,511 3,693 3,688 Franchise and other taxes 2,885 2,439 2,229 Amortization of intangible assets 2,555 2,569 2,890 Other 12,599 12,577 14,459 - ------------------------------------------------------------------------------------------------------------------------ TOTAL NON-INTEREST EXPENSE 187,429 187,054 192,443 - ------------------------------------------------------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES 108,216 108,480 105,111 Income taxes 28,631 27,587 29,509 - ------------------------------------------------------------------------------------------------------------------------ NET INCOME $ 79,585 $ 80,893 $ 75,602 - ------------------------------------------------------------------------------------------------------------------------ NET INCOME PER COMMON SHARE - DILUTED $0.32 $0.32 $0.30 RETURN ON Average total assets 1.28% 1.30% 1.20% Average total shareholders' equity 13.4% 13.5% 12.6% Net interest margin (2) 4.26% 4.17% 4.03% Efficiency ratio 52.7% 54.0% 56.0% Effective tax rate 26.5% 25.4% 28.1% REVENUE - FULLY TAXABLE EQUIVALENT (FTE) Net Interest Income $235,546 $230,462 $ 225,883 Tax Equivalent Adjustment (2) 1,292 1,442 1,616 - ------------------------------------------------------------------------------------------------------------------------ Net Interest Income 236,838 231,904 227,499 Non-Interest Income 114,380 111,099 113,608 - ------------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE $351,218 $343,003 $ 341,107 - ------------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE EXCLUDING SECURITIES GAINS $351,129 $341,944 $ 338,360 - ------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis. (2) Calculated assuming a 35% tax rate. Page 15 HUNTINGTON BANCSHARES INCORPORATED LOAN LOSS RESERVE AND NET CHARGE-OFF ANALYSIS OPERATING BASIS (1)
2002 - ---------------------------------------------------------------------------------------------------------------- (in thousands) SECOND First - ------------------------------------------------------------------------------------------------------------------ ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $386,053 $386,956 Loan losses (57,482) (60,191) Recoveries of loans previously charged off 12,582 10,915 - ------------------------------------------------------------------------------------------------------------------ Net loan losses (44,900) (49,276) - ------------------------------------------------------------------------------------------------------------------ Allowance of assets sold --- --- Allowance of securitized loans (2,034) (2,222) Provision for loan losses 53,892 50,595 - ------------------------------------------------------------------------------------------------------------------ ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $393,011 $386,053 - ------------------------------------------------------------------------------------------------------------------ Allowance for loan losses as a% of total loans 2.00% 2.00% Allowance for loan losses as a% of non-performing loans 185.3% 175.9% Allowance for loan losses and OREO as a% of non-performing assets 175.7% 170.9% NET CHARGE-OFFS BY LOAN TYPE Commercial $ 21,528 $ 16,151 Commercial real estate 2,037 3,723 - ------------------------------------------------------------------------------------------------------------------ Total commercial and commercial real estate 23,565 19,874 Consumer Auto leases 8,401 12,809 Auto loans 7,356 11,430 Home equity loans & lines of credit 3,096 2,814 Residential mortgage 555 104 Other loans 1,927 2,245 - ------------------------------------------------------------------------------------------------------------------ Total consumer 21,335 29,402 - ------------------------------------------------------------------------------------------------------------------ TOTAL NET CHARGE-OFFS $ 44,900 $ 49,276 - ------------------------------------------------------------------------------------------------------------------ NET CHARGE-OFFS - ANNUALIZED PERCENTAGES Commercial 1.54% 1.16% Commercial real estate 0.22 0.42 - ------------------------------------------------------------------------------------------------------------------ Total commercial and commercial real estate 1.02 0.87 Consumer Auto leases 1.08 1.64 Auto loans 1.14 1.81 Home equity loans & lines of credit 0.43 0.41 Residential mortgage 0.18 0.05 Other loans 1.87 2.15 - ------------------------------------------------------------------------------------------------------------------ Total consumer 0.83 1.21 - ------------------------------------------------------------------------------------------------------------------ TOTAL NET CHARGE-OFFS 0.92% 1.05% - ------------------------------------------------------------------------------------------------------------------ NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING EXITED BUSINESSES 0.88% 0.97% - ------------------------------------------------------------------------------------------------------------------
2001 - ----------------------------------------------------------------------------------------------------------------------------------- (in thousands) Fourth Third Second - ----------------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES, BEGINNING OF PERIOD $334,827 $326,495 $276,116 Loan losses (60,110) (45,063) (71,104) Recoveries of loans previously charged off 9,961 8,981 9,392 - ----------------------------------------------------------------------------------------------------------------------------------- Net loan losses (50,149) (36,082) (61,712) - ----------------------------------------------------------------------------------------------------------------------------------- Allowance of assets sold --- --- --- Allowance of securitized loans (2,003) (1,613) (1,564) Provision for loan losses 104,281(3) 46,027 113,655(2) - ----------------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES, END OF PERIOD $386,956 $334,827 $326,495 - ----------------------------------------------------------------------------------------------------------------------------------- Allowance for loan losses as a% of total loans 2.05% 1.77% 1.76% Allowance for loan losses as a% of non-performing loans 181.4% 173.4% 222.1% Allowance for loan losses and OREO as a% of non-performing assets 175.8% 165.9% 207.1% NET CHARGE-OFFS BY LOAN TYPE Commercial $ 19,475 $ 9,422 $ 11,507 Commercial real estate 867 3 1,704 - ----------------------------------------------------------------------------------------------------------------------------------- Total commercial and commercial real estate 20,342 9,425 13,211 Consumer Auto leases 12,634 10,395 17,535 Auto loans 11,397 10,133 23,437 Home equity loans & lines of credit 3,313 3,772 2,311 Residential mortgage 370 93 241 Other loans 2,093 2,264 4,977 - ----------------------------------------------------------------------------------------------------------------------------------- Total consumer 29,807 26,657 48,501 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL NET CHARGE-OFFS $ 50,149 $ 36,082 $ 61,712 - ----------------------------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS - ANNUALIZED PERCENTAGES Commercial 1.34% 0.63% 0.77% Commercial real estate 0.10 0.00 0.21 - ---------------------------------------------------------------------------------------------------------------------------------- Total commercial and commercial real estate 0.88 0.40 0.58 Consumer Auto leases 1.55 1.27 2.17 Auto loans 1.82 1.64 4.11 Home equity loans & lines of credit 0.48 0.55 0.35 Residential mortgage 0.22 0.06 0.14 Other loans 1.86 1.96 4.12 - ---------------------------------------------------------------------------------------------------------------------------------- Total consumer 1.23 1.12 2.08 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL NET CHARGE-OFFS 1.06% 0.76% 1.33% - ---------------------------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS AS A% OF AVERAGE LOANS - EXCLUDING EXITED BUSINESSES 0.99% 0.61% 0.74% - ----------------------------------------------------------------------------------------------------------------------------------
(1) See page 10 for definition of Operating Basis. (2) Includes provision of $71.7 million recorded to recognize the estimated increased losses resulting from Huntington's decision to exit sub-prime automobile lending and truck and equipment leasing, to charge-off of delinquent consumer and small business loans more than 120 days past due, to increase reserves for consumer bankruptcies, and to increase commercial loan reserves. (3) Includes provision of $50.0 million recorded to increase the loan loss reserve in light of the higher charge-offs and non-performing assets experienced in the second half of 2001. Page 16 HUNTINGTON BANCSHARES INCORPORATED NON-PERFORMING ASSETS AND PAST DUE LOANS OPERATING BASIS (1)
2002 - -------------------------------------------------------------------------------------------------- (in thousands) SECOND First - ---------------------------------------------------------------------------------------------------- Non-accrual loans: Commercial $ 156,252 $ 162,959 Commercial real estate 45,795 43,295 Residential mortgage 8,776 11,896 - ---------------------------------------------------------------------------------------------------- Total Nonaccrual Loans 210,823 218,150 Renegotiated loans 1,268 1,268 - ---------------------------------------------------------------------------------------------------- TOTAL NON-PERFORMING LOANS 212,091 219,418 Other real estate, net 11,146 6,112 - ---------------------------------------------------------------------------------------------------- TOTAL NON-PERFORMING ASSETS $ 223,237 $ 225,530 - ---------------------------------------------------------------------------------------------------- Non-performing loans as a % of total loans 1.08% 1.13% Non-performing assets as a % of total loans and other real estate 1.14% 1.17% ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 58,449 $ 61,746
2001 - ------------------------------------------------------------------------------------------------------------------ (in thousands) Fourth Third Second - ------------------------------------------------------------------------------------------------------------------ Non-accrual loans: Commercial $ 155,720 $ 143,132 $ 111,363 Commercial real estate 45,180 37,772 23,418 Residential mortgage 11,086 10,923 10,916 - ------------------------------------------------------------------------------------------------------------------ Total Nonaccrual Loans 211,986 191,827 145,697 Renegotiated loans 1,276 1,286 1,290 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-PERFORMING LOANS 213,262 193,113 146,987 Other real estate, net 6,384 8,050 9,913 - ------------------------------------------------------------------------------------------------------------------ TOTAL NON-PERFORMING ASSETS $ 219,646 $ 201,163 $ 156,900 - ------------------------------------------------------------------------------------------------------------------ Non-performing loans as a % of total loans 1.13% 1.02% 0.79% Non-performing assets as a % of total loans and other real estate 1.16% 1.06% 0.85% ACCRUING LOANS PAST DUE 90 DAYS OR MORE $ 76,295 $ 79,339 $ 54,228
(1) See page 10 for definition of Operating Basis. Page 17