Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Review
December 2003
Table of Contents
Reported Basis |
||||
Consolidated Balance Sheets |
1 | |||
Loans and Leases and Deposits |
2 | |||
Consolidated Average Balance Sheets |
3 | |||
Consolidated Quarterly Net Interest Margin Analysis |
4 | |||
Selected Quarterly Income Statement Data |
5 | |||
Quarterly Loan Loss Reserve and Net Charge-Off Analysis |
6 | |||
Quarterly Non-Performing Assets and Past Due Loans and Leases |
7 | |||
Quarterly Stock Summary, Capital, and Other Data |
8 | |||
Quarterly Operating Lease Performance |
9 | |||
Consolidated Annual Average Balance Sheets and Net Interest Margin Analysis |
10-11 | |||
Selected Annual Income Statement Data |
12 | |||
Annual Loan Loss Reserve and Net Charge-Off Analysis |
13 | |||
Annual Non-Performing Assets and Past Due Loans and Leases |
14 |
Note:
The preparation of financial statements in conformity with accounting principals generally accepted
in the United States requires management to make estimates and assumptions that affect amounts
reported in the financial statements. Actual results could differ from those estimates. Certain prior
period amounts have been reclassified to conform to the current years presentation.
Huntington Bancshares Incorporated
Consolidated Balance Sheets
December 31, | December 31, | Change December '03 vs. '02 | ||||||||||||||
(in thousands) | 2003 | 2002 | Amount | Percent | ||||||||||||
Assets |
||||||||||||||||
Cash and due from banks |
$ | 899,689 | $ | 969,483 | $ | (69,794 | ) | (7.2 | )% | |||||||
Federal funds sold and securities
purchased under resale agreements |
96,814 | 49,280 | 47,534 | 96.5 | ||||||||||||
Interest bearing deposits in banks |
33,627 | 37,300 | (3,673 | ) | (9.8 | ) | ||||||||||
Trading account securities |
7,589 | 241 | 7,348 | N.M. | ||||||||||||
Mortgage loans held for sale |
226,729 | 528,379 | (301,650 | ) | (57.1 | ) | ||||||||||
Securities available for sale at fair value |
4,925,232 | 3,403,369 | 1,521,863 | 44.7 | ||||||||||||
Investment securities fair value $3,937
and $7,725, respectively |
3,828 | 7,546 | (3,718 | ) | (49.3 | ) | ||||||||||
Total loans and leases(1) |
21,075,118 | 18,587,403 | 2,487,715 | 13.4 | ||||||||||||
Less allowance for loan and lease losses |
335,254 | 336,648 | (1,394 | ) | (0.4 | ) | ||||||||||
Net loans and leases |
20,739,864 | 18,250,755 | 2,489,109 | 13.6 | ||||||||||||
Operating lease assets |
1,260,440 | 2,200,525 | (940,085 | ) | (42.7 | ) | ||||||||||
Bank owned life insurance |
927,671 | 886,214 | 41,457 | 4.7 | ||||||||||||
Premises and equipment |
349,712 | 341,366 | 8,346 | 2.4 | ||||||||||||
Goodwill and other intangible assets |
217,009 | 218,567 | (1,558 | ) | (0.7 | ) | ||||||||||
Customers acceptance liability |
9,553 | 16,745 | (7,192 | ) | (43.0 | ) | ||||||||||
Accrued income and other assets |
786,047 | 618,162 | 167,885 | 27.2 | ||||||||||||
Total Assets |
$ | 30,483,804 | $ | 27,527,932 | $ | 2,955,872 | 10.7 | % | ||||||||
Liabilities and Shareholders Equity |
||||||||||||||||
Total deposits(1) |
$ | 18,487,395 | $ | 17,499,326 | $ | 988,069 | 5.6 | % | ||||||||
Short-term borrowings |
1,452,304 | 2,141,016 | (688,712 | ) | (32.2 | ) | ||||||||||
Bank acceptances outstanding |
9,553 | 16,745 | (7,192 | ) | (43.0 | ) | ||||||||||
Federal Home Loan Bank Advances |
1,273,000 | 1,013,000 | 260,000 | 25.7 | ||||||||||||
Subordinated notes |
990,470 | 738,678 | 251,792 | 34.1 | ||||||||||||
Other long-term debt |
4,544,509 | 2,495,123 | 2,049,386 | 82.1 | ||||||||||||
Company obligated mandatorily redeemable preferred
capital securities of subsidiary trusts holding solely
junior subordinated debentures of the Parent Company(2) |
| 300,000 | (300,000 | ) | (100.0 | ) | ||||||||||
Accrued expenses and other liabilities |
1,451,571 | 1,134,251 | 317,320 | 28.0 | ||||||||||||
Total Liabilities |
28,208,802 | 25,338,139 | 2,870,663 | 11.3 | ||||||||||||
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
shares; outstanding 229,008,088 and
232,878,851 shares, respectively |
2,483,542 | 2,484,421 | (879 | ) | (0.0 | ) | ||||||||||
Less 28,858,167 and 24,987,404
treasury shares, respectively |
(548,576 | ) | (475,399 | ) | (73,177 | ) | 15.4 | |||||||||
Accumulated other comprehensive income |
2,678 | 62,300 | (59,622 | ) | (95.7 | ) | ||||||||||
Retained earnings |
337,358 | 118,471 | 218,887 | N.M. | ||||||||||||
Total Shareholders Equity |
2,275,002 | 2,189,793 | 85,209 | 3.9 | ||||||||||||
Total Liabilities and Shareholders Equity |
$ | 30,483,804 | $ | 27,527,932 | $ | 2,955,872 | 10.7 | % | ||||||||
(1) |
See Page 2 for detail of Loans and Deposits. | |
(2) |
In accordance with FIN 46, capital securities issued by Huntington Capital I and II, previously regarded as consolidated subsidiary trusts, are no longer reflected in Huntingtons balance sheet. The related parent company debt to these entities is reported in Subordinated notes. | |
N.M. Not Meaningful |
Page 1
Huntington Bancshares Incorporated
Loans, Leases and Deposits
Loans and Leases (Direct Financing and Operating)
(in thousands) |
December 31, 2003 | December 31, 2002 | |||||||||||||||
By Type | Balance | % | Balance | % | ||||||||||||
Commercial |
$ | 5,313,517 | 23.8 | $ | 5,608,443 | 27.0 | ||||||||||
Commercial real estate |
4,172,083 | 18.7 | 3,722,992 | 17.9 | ||||||||||||
Total Commercial and Commercial Real Estate |
9,485,600 | 42.5 | 9,331,435 | 44.9 | ||||||||||||
Consumer |
||||||||||||||||
Automobile loans |
2,991,642 | 13.4 | 3,041,954 | 14.6 | ||||||||||||
Automobile leases |
1,902,170 | 8.5 | 873,599 | 4.2 | ||||||||||||
Home equity |
3,792,189 | 17.0 | 3,198,487 | 15.4 | ||||||||||||
Residential mortgage |
2,530,665 | 11.3 | 1,746,177 | 8.4 | ||||||||||||
Other loans |
372,852 | 1.7 | 395,751 | 1.9 | ||||||||||||
Total Consumer |
11,589,518 | 51.9 | 9,255,968 | 44.5 | ||||||||||||
Total Loans and Direct Financing Leases |
21,075,118 | 94.4 | 18,587,403 | 89.4 | ||||||||||||
Operating Lease Assets |
1,260,440 | 5.6 | 2,200,525 | 10.6 | ||||||||||||
Total |
$ | 22,335,558 | 100.0 | $ | 20,787,928 | 100.0 | ||||||||||
By Business Segment |
||||||||||||||||
Regional Banking |
||||||||||||||||
Central Ohio / West Virginia |
$ | 5,453,855 | 24.4 | $ | 4,823,142 | 23.2 | ||||||||||
Northern Ohio |
2,575,793 | 11.5 | 2,606,688 | 12.5 | ||||||||||||
Southern Ohio / Kentucky |
1,676,790 | 7.5 | 1,505,494 | 7.2 | ||||||||||||
West Michigan |
2,077,035 | 9.3 | 1,871,239 | 9.0 | ||||||||||||
East Michigan |
1,268,423 | 5.7 | 1,191,665 | 5.7 | ||||||||||||
Indiana |
730,620 | 3.3 | 682,579 | 3.3 | ||||||||||||
Total Regional Banking |
13,782,516 | 61.7 | 12,680,807 | 60.9 | ||||||||||||
Dealer Sales |
7,058,563 | 31.6 | 6,882,395 | 33.1 | ||||||||||||
Private Financial Group |
1,298,843 | 5.8 | 1,061,528 | 5.1 | ||||||||||||
Treasury / Other |
195,636 | 0.9 | 163,198 | 0.9 | ||||||||||||
Total Loans and Leases |
$ | 22,335,558 | 100.0 | $ | 20,787,928 | 100.0 | ||||||||||
Deposit Liabilities (in thousands) |
December 31, 2003 | December 31, 2002 | |||||||||||||||
By Type | Balance | % | Balance | % | ||||||||||||
Demand deposits |
||||||||||||||||
Non-interest bearing |
$ | 2,986,992 | 16.2 | $ | 3,058,044 | 17.5 | ||||||||||
Interest bearing |
6,411,380 | 34.7 | 5,389,920 | 30.8 | ||||||||||||
Savings deposits |
2,959,993 | 16.0 | 2,851,158 | 16.3 | ||||||||||||
Retail certificates of deposit |
2,461,531 | 13.3 | 3,261,403 | 18.6 | ||||||||||||
Other domestic time deposits |
631,205 | 3.4 | 694,903 | 4.0 | ||||||||||||
Total Core Deposits |
15,451,101 | 83.6 | 15,255,428 | 87.2 | ||||||||||||
Domestic time deposits of $100,000 or more |
789,341 | 4.3 | 731,959 | 4.2 | ||||||||||||
Brokered time deposits and negotiable CDs |
1,771,738 | 9.6 | 1,092,754 | 6.2 | ||||||||||||
Foreign time deposits |
475,215 | 2.5 | 419,185 | 2.4 | ||||||||||||
Total Deposits |
$ | 18,487,395 | 100.0 | $ | 17,499,326 | 100.0 | ||||||||||
By Business Segment |
||||||||||||||||
Regional Banking |
||||||||||||||||
Central Ohio / West Virginia |
$ | 5,422,558 | 29.3 | $ | 5,361,063 | 30.6 | ||||||||||
Northern Ohio |
3,587,861 | 19.4 | 3,610,980 | 20.6 | ||||||||||||
Southern Ohio / Kentucky |
1,441,418 | 7.8 | 1,365,225 | 7.8 | ||||||||||||
West Michigan |
2,457,318 | 13.3 | 2,409,743 | 13.8 | ||||||||||||
East Michigan |
1,988,772 | 10.8 | 1,948,252 | 11.1 | ||||||||||||
Indiana |
648,205 | 3.5 | 603,854 | 3.5 | ||||||||||||
Total Regional Banking |
15,546,132 | 84.1 | 15,299,117 | 87.4 | ||||||||||||
Dealer Sales |
71,249 | 0.4 | 58,249 | 0.3 | ||||||||||||
Private Financial Group |
1,162,969 | 6.3 | 937,997 | 5.4 | ||||||||||||
Treasury / Other(1) |
1,707,045 | 9.2 | 1,203,963 | 6.9 | ||||||||||||
Total Deposits |
$ | 18,487,395 | 100.0 | $ | 17,499,326 | 100.0 | ||||||||||
(1) Comprised largely of brokered deposits and negotiable CDs.
Page 2
Huntington Bancshares Incorporated Consolidated Quarterly Average Balance Sheets (in millions) |
2003 | 2002 | |||||||||||||||||||||||||||||||
Fully Tax Equivalent Basis(1) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Interest bearing deposits in banks |
$ | 32 | $ | 33 | $ | 45 | $ | 37 | $ | 34 | $ | 35 | $ | 29 | $ | 34 | ||||||||||||||||
Trading account securities |
11 | 11 | 23 | 12 | 9 | 7 | 6 | 5 | ||||||||||||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
117 | 103 | 69 | 57 | 83 | 76 | 68 | 62 | ||||||||||||||||||||||||
Mortgages held for sale |
295 | 898 | 602 | 459 | 467 | 267 | 174 | 381 | ||||||||||||||||||||||||
Securities: |
||||||||||||||||||||||||||||||||
Taxable |
4,081 | 3,646 | 3,382 | 3,014 | 3,029 | 2,953 | 2,735 | 2,713 | ||||||||||||||||||||||||
Tax exempt |
421 | 362 | 275 | 274 | 234 | 108 | 96 | 101 | ||||||||||||||||||||||||
Total Securities |
4,502 | 4,008 | 3,657 | 3,288 | 3,263 | 3,061 | 2,831 | 2,814 | ||||||||||||||||||||||||
Loans and Leases: |
||||||||||||||||||||||||||||||||
Commercial |
5,382 | 5,380 | 5,626 | 5,623 | 5,555 | 5,504 | 5,616 | 6,047 | ||||||||||||||||||||||||
Real Estate |
||||||||||||||||||||||||||||||||
Construction |
1,297 | 1,258 | 1,239 | 1,187 | 1,070 | 1,247 | 1,258 | 1,290 | ||||||||||||||||||||||||
Commercial |
2,830 | 2,744 | 2,621 | 2,565 | 2,601 | 2,315 | 2,232 | 2,363 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Automobile loans |
3,529 | 3,594 | 2,830 | 3,079 | 2,939 | 2,764 | 2,569 | 2,700 | ||||||||||||||||||||||||
Automobile leases |
1,802 | 1,590 | 1,306 | 1,006 | 759 | 461 | 164 | 92 | ||||||||||||||||||||||||
Automobile loans and leases |
5,331 | 5,184 | 4,136 | 4,085 | 3,698 | 3,225 | 2,733 | 2,792 | ||||||||||||||||||||||||
Home equity |
3,678 | 3,503 | 3,359 | 3,238 | 3,166 | 3,060 | 2,907 | 3,206 | ||||||||||||||||||||||||
Residential mortgage |
2,501 | 2,075 | 1,887 | 1,832 | 1,694 | 1,486 | 1,385 | 1,180 | ||||||||||||||||||||||||
Other loans |
387 | 367 | 379 | 389 | 399 | 406 | 415 | 483 | ||||||||||||||||||||||||
Total Consumer |
11,897 | 11,129 | 9,761 | 9,544 | 8,957 | 8,177 | 7,440 | 7,661 | ||||||||||||||||||||||||
Total Loans and Leases |
21,406 | 20,511 | 19,247 | 18,919 | 18,183 | 17,243 | 16,546 | 17,361 | ||||||||||||||||||||||||
Allowance for loan and lease losses |
384 | 363 | 338 | 349 | 386 | 367 | 357 | 371 | ||||||||||||||||||||||||
Net loans and leases |
21,022 | 20,148 | 18,909 | 18,570 | 17,797 | 16,876 | 16,189 | 16,990 | ||||||||||||||||||||||||
Total earning assets |
26,363 | 25,564 | 23,643 | 22,772 | 22,039 | 20,689 | 19,654 | 20,657 | ||||||||||||||||||||||||
Operating lease inventory |
1,355 | 1,565 | 1,802 | 2,076 | 2,328 | 2,597 | 2,842 | 2,976 | ||||||||||||||||||||||||
Cash and due from banks |
817 | 804 | 735 | 740 | 717 | 763 | 722 | 819 | ||||||||||||||||||||||||
Intangible assets |
217 | 218 | 218 | 218 | 225 | 202 | 213 | 536 | ||||||||||||||||||||||||
All other assets |
2,021 | 2,062 | 2,005 | 1,967 | 1,938 | 1,905 | 1,895 | 1,905 | ||||||||||||||||||||||||
Total Assets |
$ | 30,389 | $ | 29,850 | $ | 28,065 | $ | 27,424 | $ | 26,861 | $ | 25,789 | $ | 24,969 | $ | 26,522 | ||||||||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||||||||||||||
Core deposits |
||||||||||||||||||||||||||||||||
Non-interest bearing deposits |
$ | 3,131 | $ | 3,218 | $ | 3,046 | $ | 2,958 | $ | 2,955 | $ | 2,868 | $ | 2,739 | $ | 3,041 | ||||||||||||||||
Interest bearing demand deposits |
6,466 | 6,558 | 6,100 | 5,597 | 5,305 | 5,269 | 4,923 | 5,148 | ||||||||||||||||||||||||
Savings deposits |
2,824 | 2,808 | 2,804 | 2,771 | 2,746 | 2,766 | 2,808 | 3,097 | ||||||||||||||||||||||||
Retail certificates of deposit |
2,492 | 2,561 | 2,798 | 2,963 | 3,305 | 3,453 | 3,509 | 4,222 | ||||||||||||||||||||||||
Other domestic time deposits |
631 | 656 | 673 | 682 | 702 | 714 | 718 | 799 | ||||||||||||||||||||||||
Total core deposits |
15,544 | 15,801 | 15,421 | 14,971 | 15,013 | 15,070 | 14,697 | 16,307 | ||||||||||||||||||||||||
Domestic time deposits of $100,000 or more |
828 | 803 | 808 | 769 | 730 | 777 | 843 | 1,046 | ||||||||||||||||||||||||
Brokered time deposits and negotiable CDs |
1,851 | 1,421 | 1,241 | 1,155 | 1,057 | 907 | 649 | 302 | ||||||||||||||||||||||||
Foreign time deposits |
522 | 536 | 426 | 514 | 409 | 370 | 296 | 270 | ||||||||||||||||||||||||
Total deposits |
18,745 | 18,561 | 17,896 | 17,409 | 17,209 | 17,124 | 16,485 | 17,925 | ||||||||||||||||||||||||
Short-term borrowings |
1,433 | 1,393 | 1,635 | 1,947 | 2,115 | 1,793 | 1,636 | 1,748 | ||||||||||||||||||||||||
Federal Home Loan Bank advances |
1,273 | 1,273 | 1,267 | 1,216 | 848 | 228 | 14 | 17 | ||||||||||||||||||||||||
Subordinated notes and other long-term debt,
including preferred capital securities |
5,432 | 5,197 | 4,010 | 3,570 | 3,380 | 3,281 | 3,375 | 3,433 | ||||||||||||||||||||||||
Total interest bearing liabilities |
23,752 | 23,206 | 21,762 | 21,184 | 20,597 | 19,558 | 18,771 | 20,082 | ||||||||||||||||||||||||
All other liabilities |
1,278 | 1,187 | 1,106 | 1,116 | 1,146 | 1,149 | 1,181 | 1,089 | ||||||||||||||||||||||||
Shareholders equity |
2,228 | 2,239 | 2,151 | 2,166 | 2,163 | 2,214 | 2,278 | 2,310 | ||||||||||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 30,389 | $ | 29,850 | $ | 28,065 | $ | 27,424 | $ | 26,861 | $ | 25,789 | $ | 24,969 | $ | 26,522 | ||||||||||||||||
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. See page 5 for the fully taxable equivalent adjustment.
Page 3
Huntington Bancshares Incorporated Consolidated Quarterly Net Interest Margin Analysis (in millions) |
Average Rates(3) | ||||||||||||||||||||||||||||||||
2003 | 2002 | |||||||||||||||||||||||||||||||
Fully Tax Equivalent Basis(1) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Interest bearing deposits in banks |
1.52 | % | 1.38 | % | 1.58 | % | 1.61 | % | 1.93 | % | 2.06 | % | 2.44 | % | 1.96 | % | ||||||||||||||||
Trading account securities |
2.39 | 4.70 | 4.15 | 4.63 | 3.37 | 4.95 | 5.37 | 2.79 | ||||||||||||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
1.30 | 1.92 | 2.19 | 2.14 | 1.83 | 1.40 | 1.51 | 1.43 | ||||||||||||||||||||||||
Mortgages held for sale |
5.31 | 5.16 | 5.42 | 5.56 | 5.84 | 6.57 | 7.07 | 6.51 | ||||||||||||||||||||||||
Securities: |
||||||||||||||||||||||||||||||||
Taxable |
4.25 | 4.23 | 4.59 | 5.17 | 5.53 | 6.01 | 6.33 | 6.43 | ||||||||||||||||||||||||
Tax exempt |
6.97 | 6.85 | 7.29 | 7.22 | 7.15 | 7.52 | 7.69 | 7.76 | ||||||||||||||||||||||||
Total Securities |
4.50 | 4.46 | 4.79 | 5.34 | 5.64 | 6.07 | 6.37 | 6.48 | ||||||||||||||||||||||||
Loans and Leases:(2) |
||||||||||||||||||||||||||||||||
Commercial |
4.82 | 4.84 | 5.26 | 5.40 | 5.59 | 5.69 | 5.67 | 5.58 | ||||||||||||||||||||||||
Real Estate |
||||||||||||||||||||||||||||||||
Construction |
4.24 | 4.17 | 4.07 | 4.06 | 4.15 | 4.60 | 5.06 | 4.93 | ||||||||||||||||||||||||
Commercial |
4.99 | 5.22 | 5.28 | 5.60 | 5.79 | 6.17 | 6.39 | 6.66 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Automobile loans |
6.90 | 7.19 | 7.74 | 7.85 | 8.32 | 8.62 | 8.92 | 8.87 | ||||||||||||||||||||||||
Automobile leases |
4.98 | 4.99 | 4.69 | 6.04 | 5.93 | 7.78 | 4.72 | 4.69 | ||||||||||||||||||||||||
Automobile loans and leases |
6.25 | 6.51 | 6.78 | 7.40 | 7.83 | 8.50 | 8.67 | 8.73 | ||||||||||||||||||||||||
Home equity |
4.87 | 5.09 | 5.02 | 5.17 | 5.64 | 5.83 | 6.00 | 6.39 | ||||||||||||||||||||||||
Residential mortgage |
5.20 | 5.32 | 5.76 | 5.95 | 6.06 | 6.27 | 6.46 | 6.89 | ||||||||||||||||||||||||
Other loans |
7.19 | 7.38 | 7.22 | 6.60 | 7.21 | 7.66 | 7.70 | 7.75 | ||||||||||||||||||||||||
Total Consumer |
5.64 | 5.87 | 5.99 | 6.33 | 6.69 | 7.05 | 7.16 | 7.40 | ||||||||||||||||||||||||
Total Loans and Leases |
5.26 | 5.41 | 5.56 | 5.82 | 6.08 | 6.32 | 6.39 | 6.48 | ||||||||||||||||||||||||
Total earning assets |
5.11 | % | 5.23 | % | 5.42 | % | 5.72 | % | 5.99 | % | 6.26 | % | 6.37 | % | 6.46 | % | ||||||||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||||||||||||||
Core deposits |
||||||||||||||||||||||||||||||||
Non-interest bearing deposits
Interest bearing demand deposits |
0.91 | % | 1.04 | % | 1.39 | % | 1.43 | % | 1.54 | % | 1.74 | % | 1.80 | % | 1.76 | % | ||||||||||||||||
Savings deposits |
1.22 | 1.35 | 1.55 | 1.85 | 1.69 | 1.77 | 1.79 | 1.83 | ||||||||||||||||||||||||
Retail certificates of deposit |
3.54 | 3.51 | 3.75 | 3.87 | 4.36 | 4.37 | 4.51 | 4.98 | ||||||||||||||||||||||||
Other domestic time deposits |
3.69 | 3.89 | 3.85 | 4.00 | 4.19 | 4.37 | 4.48 | 4.76 | ||||||||||||||||||||||||
Total core deposits |
1.65 | 1.76 | 2.09 | 2.27 | 2.50 | 2.64 | 2.75 | 2.98 | ||||||||||||||||||||||||
Domestic time deposits of $100,000 or more |
2.37 | 2.32 | 2.55 | 2.76 | 2.64 | 3.27 | 3.12 | 3.04 | ||||||||||||||||||||||||
Brokered time deposits and negotiable CDs |
1.52 | 1.63 | 1.79 | 1.98 | 2.25 | 2.37 | 2.48 | 2.48 | ||||||||||||||||||||||||
Foreign time deposits |
0.75 | 0.85 | 1.03 | 1.06 | 1.29 | 1.43 | 1.38 | 1.91 | ||||||||||||||||||||||||
Total deposits |
1.64 | 1.75 | 2.06 | 2.23 | 2.45 | 2.63 | 2.73 | 2.96 | ||||||||||||||||||||||||
Short-term borrowings |
0.78 | 0.85 | 1.06 | 1.16 | 1.40 | 1.44 | 1.51 | 1.98 | ||||||||||||||||||||||||
Federal Home Loan Bank advances |
2.24 | 1.81 | 1.76 | 1.84 | 1.99 | 2.02 | 5.89 | 6.02 | ||||||||||||||||||||||||
Subordinated notes and other long-term debt,
including preferred capital securities |
2.63 | 2.78 | 2.85 | 3.12 | 3.52 | 3.70 | 3.64 | 3.79 | ||||||||||||||||||||||||
Total interest bearing liabilities |
1.85 | % | 1.93 | % | 2.11 | % | 2.26 | % | 2.50 | % | 2.69 | % | 2.79 | % | 3.01 | % | ||||||||||||||||
Net interest rate spread |
3.26 | % | 3.30 | % | 3.31 | % | 3.46 | % | 3.49 | % | 3.57 | % | 3.58 | % | 3.45 | % | ||||||||||||||||
Impact of non-interest bearing funds on margin |
0.16 | 0.16 | 0.16 | 0.17 | 0.13 | 0.12 | 0.12 | 0.08 | ||||||||||||||||||||||||
Net Interest Margin |
3.42 | % | 3.46 | % | 3.47 | % | 3.63 | % | 3.62 | % | 3.69 | % | 3.70 | % | 3.53 | % | ||||||||||||||||
(1) |
Fully tax equivalent yields are calculated assuming a 35% tax rate. See page 5 for the fully taxable equivalent adjustment. | |
(2) |
Individual loan and lease components include applicable fees. | |
(3) |
Loan and lease and deposit average rates include impact of applicable derivatives. |
Page 4
Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
2003 | 2002 | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Net Interest Income |
$ | 224,315 | $ | 220,471 | $ | 202,441 | $ | 201,759 | $ | 199,179 | $ | 191,265 | $ | 180,261 | $ | 178,869 | ||||||||||||||||
Provision for loan and lease losses |
26,341 | 51,615 | 49,193 | 36,844 | 51,236 | 54,304 | 49,876 | 39,010 | ||||||||||||||||||||||||
Net Interest Income After
Provision for Loan and Lease Losses |
197,974 | 168,856 | 153,248 | 164,915 | 147,943 | 136,961 | 130,385 | 139,859 | ||||||||||||||||||||||||
Operating lease income |
105,307 | 117,624 | 128,574 | 138,193 | 149,259 | 160,164 | 171,617 | 176,034 | ||||||||||||||||||||||||
Service charges on deposit accounts |
44,763 | 42,294 | 40,914 | 39,869 | 41,435 | 37,706 | 35,608 | 38,815 | ||||||||||||||||||||||||
Trust services |
15,793 | 15,365 | 15,580 | 14,911 | 15,306 | 14,997 | 16,247 | 15,501 | ||||||||||||||||||||||||
Brokerage and insurance income |
14,344 | 13,807 | 14,196 | 15,497 | 13,941 | 13,664 | 16,899 | 17,605 | ||||||||||||||||||||||||
Mortgage banking |
9,677 | 30,193 | 7,185 | 11,125 | 5,530 | 2,594 | 7,835 | 16,074 | ||||||||||||||||||||||||
Bank Owned Life Insurance income |
10,410 | 10,438 | 11,043 | 11,137 | 10,722 | 10,723 | 10,722 | 10,956 | ||||||||||||||||||||||||
Other service charges and fees |
9,237 | 10,499 | 11,372 | 10,338 | 10,890 | 10,837 | 10,529 | 10,632 | ||||||||||||||||||||||||
Gain on sales of automobile loans |
16,288 | | 13,496 | 10,255 | | | | | ||||||||||||||||||||||||
Gain on sale of branch offices |
| 13,112 | | | | | | | ||||||||||||||||||||||||
Securities gains (losses) |
1,280 | (4,107 | ) | 6,887 | 1,198 | 2,339 | 1,140 | 966 | 457 | |||||||||||||||||||||||
Gain on sale of Florida Operations |
| | | | | | | 182,470 | ||||||||||||||||||||||||
Merchant Services gain |
| | | | | 24,550 | | | ||||||||||||||||||||||||
Other |
19,411 | 23,543 | 27,704 | 20,401 | 22,433 | 22,227 | 18,291 | 13,989 | ||||||||||||||||||||||||
Total Non-Interest Income |
246,510 | 272,768 | 276,951 | 272,924 | 271,855 | 298,602 | 288,714 | 482,533 | ||||||||||||||||||||||||
Personnel costs |
115,762 | 113,170 | 105,242 | 113,089 | 110,231 | 100,662 | 99,115 | 108,029 | ||||||||||||||||||||||||
Operating lease expense |
85,609 | 93,134 | 102,939 | 111,588 | 120,747 | 125,743 | 131,695 | 140,785 | ||||||||||||||||||||||||
Outside data processing and other services |
15,957 | 17,478 | 16,104 | 16,579 | 17,209 | 15,128 | 16,592 | 18,439 | ||||||||||||||||||||||||
Equipment |
16,840 | 16,328 | 16,341 | 16,412 | 17,337 | 17,378 | 16,659 | 16,949 | ||||||||||||||||||||||||
Net occupancy |
14,925 | 15,570 | 15,377 | 16,609 | 13,370 | 14,676 | 14,504 | 16,989 | ||||||||||||||||||||||||
Professional services |
12,175 | 11,116 | 9,872 | 9,285 | 9,111 | 9,680 | 7,864 | 6,430 | ||||||||||||||||||||||||
Marketing |
6,895 | 5,515 | 8,454 | 6,626 | 6,186 | 7,491 | 7,231 | 7,003 | ||||||||||||||||||||||||
Telecommunications |
5,272 | 5,612 | 5,394 | 5,701 | 5,714 | 5,609 | 5,320 | 6,018 | ||||||||||||||||||||||||
Loss on early extinguishment of debt |
15,250 | | | | | | | | ||||||||||||||||||||||||
Printing and supplies |
3,417 | 3,658 | 2,253 | 3,681 | 3,999 | 3,679 | 3,683 | 3,837 | ||||||||||||||||||||||||
Amortization of intangibles |
204 | 204 | 204 | 204 | 204 | 204 | 235 | 1,376 | ||||||||||||||||||||||||
Restrucuturing (releases) charges |
(351 | ) | | (5,315 | ) | (1,000 | ) | (7,211 | ) | | | 56,184 | ||||||||||||||||||||
Other |
25,510 | 18,397 | 20,168 | 16,705 | 32,412 | 19,246 | 20,848 | 19,557 | ||||||||||||||||||||||||
Total Non-Interest Expense |
317,465 | 300,182 | 297,033 | 315,479 | 329,309 | 319,496 | 323,746 | 401,596 | ||||||||||||||||||||||||
Income Before Income Taxes |
127,019 | 141,442 | 133,166 | 122,360 | 90,489 | 116,067 | 95,353 | 220,796 | ||||||||||||||||||||||||
Income taxes |
33,758 | 37,230 | 36,676 | 30,630 | 21,226 | 28,052 | 24,375 | 125,321 | ||||||||||||||||||||||||
Income before cumulative effect of change in
accounting principle |
93,261 | 104,212 | 96,490 | 91,730 | 69,263 | 88,015 | 70,978 | 95,475 | ||||||||||||||||||||||||
Cumulative effect of change in accounting
principle, net of tax(1) |
| (13,330 | ) | | | | | | | |||||||||||||||||||||||
Net Income |
$ | 93,261 | $ | 90,882 | $ | 96,490 | $ | 91,730 | $ | 69,263 | $ | 88,015 | $ | 70,978 | $ | 95,475 | ||||||||||||||||
Per Common Share |
||||||||||||||||||||||||||||||||
Income before cumulative effect of
change in accounting
principle Diluted |
$ | 0.40 | $ | 0.45 | $ | 0.42 | $ | 0.39 | $ | 0.29 | $ | 0.36 | $ | 0.29 | $ | 0.38 | ||||||||||||||||
Net Income Diluted |
$ | 0.40 | $ | 0.39 | $ | 0.42 | $ | 0.39 | $ | 0.29 | $ | 0.36 | $ | 0.29 | $ | 0.38 | ||||||||||||||||
Cash Dividends Declared |
$ | 0.175 | $ | 0.175 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | ||||||||||||||||
Return on: |
||||||||||||||||||||||||||||||||
Average total assets(2) |
1.22 | % | 1.39 | % | 1.38 | % | 1.36 | % | 1.02 | % | 1.35 | % | 1.14 | % | 1.46 | % | ||||||||||||||||
Average total shareholders equity(2) |
16.6 | % | 18.5 | % | 18.0 | % | 17.2 | % | 12.7 | % | 15.8 | % | 12.5 | % | 16.8 | % | ||||||||||||||||
Net interest margin(3) |
3.42 | % | 3.46 | % | 3.47 | % | 3.63 | % | 3.62 | % | 3.69 | % | 3.70 | % | 3.53 | % | ||||||||||||||||
Efficiency ratio(4) |
67.1 | % | 60.0 | % | 62.5 | % | 66.3 | % | 69.9 | % | 65.2 | % | 69.0 | % | 60.4 | % | ||||||||||||||||
Effective tax rate |
26.6 | % | 26.3 | % | 27.5 | % | 25.0 | % | 23.5 | % | 24.2 | % | 25.6 | % | 56.8 | % | ||||||||||||||||
Revenue Fully Taxable Equivalent (FTE) |
||||||||||||||||||||||||||||||||
Net Interest Income |
$ | 224,315 | $ | 220,471 | $ | 202,441 | $ | 201,759 | $ | 199,179 | $ | 191,265 | $ | 180,261 | $ | 178,869 | ||||||||||||||||
Tax Equivalent Adjustment(3) |
2,954 | 2,558 | 2,076 | 2,096 | 1,869 | 1,096 | 1,071 | 1,169 | ||||||||||||||||||||||||
Net Interest Income |
227,269 | 223,029 | 204,517 | 203,855 | 201,048 | 192,361 | 181,332 | 180,038 | ||||||||||||||||||||||||
Non-Interest Income |
246,510 | 272,768 | 276,951 | 272,924 | 271,855 | 298,602 | 288,714 | 482,533 | ||||||||||||||||||||||||
Total Revenue |
$ | 473,779 | $ | 495,797 | $ | 481,468 | $ | 476,779 | $ | 472,903 | $ | 490,963 | $ | 470,046 | $ | 662,571 | ||||||||||||||||
Total Revenue Excluding Securities Gains (Losses) |
$ | 472,499 | $ | 499,904 | $ | 474,581 | $ | 475,581 | $ | 470,564 | $ | 489,823 | $ | 469,080 | $ | 662,114 | ||||||||||||||||
(1) |
Due to the adoption of FASB Interpretation No. 46 for variable interest entities. | |
(2) |
Based on income before cumulative effect of change in accounting principle, net of tax. | |
(3) |
Calculated assuming a 35% tax rate. | |
(4) |
Non-interest expense less amortization of intangible assets divided by the sum of fully taxable equivalent net interest income and non-interest income excluding securities gains (losses). |
Page 5
Huntington Bancshares Incorporated
Quarterly Loan and Lease Loss Reserve and Net Charge-off Analysis
2003 | 2002 | |||||||||||||||||||||||||||||||
(in thousands) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Allowance for Loan and Leases Losses,
Beginning of Period |
$ | 370,135 | $ | 340,947 | $ | 337,017 | $ | 336,648 | $ | 371,033 | $ | 351,696 | $ | 340,851 | $ | 369,332 | ||||||||||||||||
Loan and lease losses |
(68,023 | ) | (43,261 | ) | (49,985 | ) | (40,265 | ) | (93,890 | ) | (43,748 | ) | (45,728 | ) | (50,986 | ) | ||||||||||||||||
Recoveries of loans previously charged off |
12,880 | 10,487 | 8,929 | 7,429 | 10,732 | 9,963 | 8,731 | 8,014 | ||||||||||||||||||||||||
Net loan and lease losses |
(55,143 | ) | (32,774 | ) | (41,056 | ) | (32,836 | ) | (83,158 | ) | (33,785 | ) | (36,997 | ) | (42,972 | ) | ||||||||||||||||
Provision for loan and lease losses |
26,341 | 51,615 | 49,193 | 36,844 | 51,236 | 54,304 | 49,876 | 39,010 | ||||||||||||||||||||||||
Allowance of assets purchased / (sold) |
(6,079 | ) | | (3,477 | ) | (2,981 | ) | | 1,264 | | (22,297 | ) | ||||||||||||||||||||
Allowance of securitized loans(1) |
| 10,347 | (730 | ) | (658 | ) | (2,463 | ) | (2,446 | ) | (2,034 | ) | (2,222 | ) | ||||||||||||||||||
Allowance for Loan and Lease Losses,
End of Period |
$ | 335,254 | $ | 370,13 | 5 $340,94 | 7 $337,01 | 7 $336,64 | 8 $371,03 | 3 $351,69 | 6 $340,851 | ||||||||||||||||||||||
Allowance for loan and lease losses as a % of
total loans and leases |
1.59 | % | 1.75 | % | 1.79 | % | 1.78 | % | 1.81 | % | 2.08 | % | 2.10 | % | 2.10 | % | ||||||||||||||||
Allowance for loan and lease losses as a % of
non-performing loans and leases |
444 | % | 304 | % | 284 | % | 266 | % | 263 | % | 182 | % | 166 | % | 155 | % | ||||||||||||||||
Allowance for loan and lease losses as a % of
non-performing assets |
384 | % | 270 | % | 255 | % | 239 | % | 246 | % | 173 | % | 158 | % | 151 | % | ||||||||||||||||
Net Charge-offs by Loan and Lease Type |
||||||||||||||||||||||||||||||||
Commercial |
$ | 31,186 | $ | 12,222 | $ | 26,546 | $ | 14,904 | $ | 59,811 | $ | 16,837 | $ | 21,528 | $ | 19,586 | ||||||||||||||||
Commercial real estate |
5,743 | 3,621 | 607 | 546 | 7,536 | 4,085 | 2,037 | 3,983 | ||||||||||||||||||||||||
Total commercial and commercial real estate |
36,929 | 15,843 | 27,153 | 15,450 | 67,347 | 20,922 | 23,565 | 23,569 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Automobile loans |
11,346 | 10,773 | 7,524 | 10,623 | 10,398 | 8,602 | 7,356 | 12,760 | ||||||||||||||||||||||||
Automobile leases |
1,936 | 1,450 | 1,422 | 920 | 730 | 202 | 498 | | ||||||||||||||||||||||||
Automobile loans and leases |
13,282 | 12,223 | 8,946 | 11,543 | 11,128 | 8,804 | 7,854 | 12,760 | ||||||||||||||||||||||||
Home equity |
3,464 | 3,416 | 3,671 | 4,053 | 3,526 | 2,934 | 3,096 | 3,950 | ||||||||||||||||||||||||
Residential mortgage |
174 | 246 | 267 | 145 | 72 | 123 | 555 | 122 | ||||||||||||||||||||||||
Other loans |
1,294 | 1,046 | 1,019 | 1,645 | 1,085 | 1,002 | 1,927 | 2,571 | ||||||||||||||||||||||||
Total consumer |
18,214 | 16,931 | 13,903 | 17,386 | 15,811 | 12,863 | 13,432 | 19,403 | ||||||||||||||||||||||||
Total Net Charge-offs |
$ | 55,143 | $ | 32,774 | $ | 41,056 | $ | 32,836 | $ | 83,158 | $ | 33,785 | $ | 36,997 | $ | 42,972 | ||||||||||||||||
Net Charge-offs Annualized Percentages |
||||||||||||||||||||||||||||||||
Commercial |
2.32 | % | 0.91 | % | 1.89 | % | 1.06 | % | 4.31 | % | 1.21 | % | 1.54 | % | 1.31 | % | ||||||||||||||||
Commercial real estate |
0.56 | 0.36 | 0.06 | 0.06 | 0.82 | 0.45 | 0.23 | 0.44 | ||||||||||||||||||||||||
Total commercial and commercial real estate |
1.55 | 0.68 | 1.14 | 0.66 | 2.92 | 0.92 | 1.20 | 0.99 | ||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Automobile loans |
1.29 | 1.20 | 1.06 | 1.38 | 1.42 | 1.23 | 1.15 | 1.92 | ||||||||||||||||||||||||
Automobile leases |
0.43 | 0.36 | 0.44 | 0.37 | 0.38 | 0.17 | 1.22 | | ||||||||||||||||||||||||
Automobile loans and leases |
1.00 | 0.94 | 0.87 | 1.13 | 1.20 | 1.08 | 1.15 | 1.85 | ||||||||||||||||||||||||
Home equity |
0.38 | 0.39 | 0.44 | 0.50 | 0.45 | 0.38 | 0.43 | 0.50 | ||||||||||||||||||||||||
Residential mortgage |
0.03 | 0.05 | 0.06 | 0.03 | 0.02 | 0.03 | 0.16 | 0.04 | ||||||||||||||||||||||||
Other loans |
1.34 | 1.14 | 1.08 | 1.69 | 1.09 | 0.98 | 1.86 | 2.16 | ||||||||||||||||||||||||
Total consumer |
0.61 | 0.61 | 0.57 | 0.73 | 0.71 | 0.62 | 0.72 | 1.03 | ||||||||||||||||||||||||
Net Charge-offs as a % of Average Loans |
1.03 | % | 0.64 | % | 0.85 | % | 0.69 | % | 1.83 | % | 0.78 | % | 0.90 | % | 1.00 | % | ||||||||||||||||
(1) The third quarter 2003 includes the reserve for loan losses associated with automobile loans contained in one of Huntingtons securitization trusts consolidated as a result of the adoption of FASB Interpretation No. 46 on July 1, 2003.
Page 6
Huntington Bancshares Incorporated
Quarterly Non-Performing Assets and Past Due Loans and Leases
2003 | 2002 | |||||||||||||||||||||||||||||||
(in thousands) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Non-accrual loans and leases: |
||||||||||||||||||||||||||||||||
Commercial |
$ | 43,387 | $ | 82,413 | $ | 86,021 | $ | 94,754 | $ | 91,861 | $ | 147,392 | $ | 156,252 | $ | 162,959 | ||||||||||||||||
Commercial real estate |
22,399 | 30,545 | 22,398 | 22,585 | 26,765 | 47,537 | 45,795 | 43,295 | ||||||||||||||||||||||||
Residential mortgage |
9,695 | 8,923 | 11,735 | 9,302 | 9,443 | 8,488 | 8,776 | 11,896 | ||||||||||||||||||||||||
Total Nonaccrual Loans and Leases |
75,481 | 121,881 | 120,154 | 126,641 | 128,069 | 203,417 | 210,823 | 218,150 | ||||||||||||||||||||||||
Renegotiated loans |
| | | | | 37 | 1,268 | 1,268 | ||||||||||||||||||||||||
Total Non-Performing Loans and Leases |
75,481 | 121,881 | 120,154 | 126,641 | 128,069 | 203,454 | 212,091 | 219,418 | ||||||||||||||||||||||||
Other real estate, net |
11,905 | 15,196 | 13,568 | 14,084 | 8,654 | 10,675 | 11,146 | 6,112 | ||||||||||||||||||||||||
Total Non-Performing Assets |
$ | 87,386 | $ | 137,077 | $ | 133,722 | $ | 140,725 | $ | 136,723 | $ | 214,129 | $ | 223,237 | $ | 225,530 | ||||||||||||||||
Non-performing loans and leases as a % of
total loans and leases |
0.36 | % | 0.58 | % | 0.63 | % | 0.67 | % | 0.69 | % | 1.14 | % | 1.26 | % | 1.35 | % | ||||||||||||||||
Non-performing assets as a % of total loans
and leases and other real estate |
0.41 | % | 0.65 | % | 0.70 | % | 0.74 | % | 0.74 | % | 1.20 | % | 1.33 | % | 1.39 | % | ||||||||||||||||
Accruing loans and leases past due 90
days or more |
$ | 55,913 | $ | 66,060 | $ | 55,287 | $ | 57,241 | $ | 61,526 | $ | 57,337 | $ | 47,663 | $ | 51,446 | ||||||||||||||||
Accruing loans and leases past due 90 days or
more as a percent of total loans and leases |
0.27 | % | 0.31 | % | 0.29 | % | 0.30 | % | 0.33 | % | 0.32 | % | 0.28 | % | 0.32 | % |
2003 | 2002 | |||||||||||||||||||||||||||||||
(in thousands) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Non-Performing Assets, Beginning
of Period |
$ | 137,077 | $ | 133,722 | $ | 140,725 | $ | 136,723 | $ | 214,129 | $ | 223,237 | $ | 225,530 | $ | 227,493 | ||||||||||||||||
New non-performing assets |
38,367 | 52,213 | 83,104 | 48,359 | 65,506 | 47,275 | 73,002 | 74,446 | ||||||||||||||||||||||||
Returns to accruing status |
(454 | ) | (319 | ) | (9,866 | ) | (5,993 | ) | (12,658 | ) | (380 | ) | (337 | ) | (3,749 | ) | ||||||||||||||||
Loan and lease losses |
(39,657 | ) | (22,090 | ) | (30,204 | ) | (17,954 | ) | (72,767 | ) | (25,480 | ) | (28,297 | ) | (26,072 | ) | ||||||||||||||||
Payments |
(22,710 | ) | (18,905 | ) | (26,831 | ) | (15,440 | ) | (28,500 | ) | (26,308 | ) | (44,303 | ) | (37,663 | ) | ||||||||||||||||
Sales |
(25,237 | ) | (7,544 | ) | (23,206 | ) | (4,970 | ) | (28,987 | ) | (4,215 | ) | (2,358 | ) | (8,925 | ) | ||||||||||||||||
Non-Performing Assets, End of Period |
$ | 87,386 | $ | 137,077 | $ | 133,722 | $ | 140,725 | $ | 136,723 | $ | 214,129 | $ | 223,237 | $ | 225,530 | ||||||||||||||||
Page 7
Huntington Bancshares Incorporated
Quarterly Stock Summary, Capital, and Other Data
Quarterly Common Stock Summary
2003 | 2002 | |||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||||
Common Stock Price |
||||||||||||||||||||||||||||||||
High |
$ | 22.550 | $ | 20.890 | $ | 21.540 | $ | 19.800 | $ | 19.980 | $ | 20.430 | $ | 21.770 | $ | 20.310 | ||||||||||||||||
Low |
19.850 | 19.220 | 18.030 | 17.780 | 16.160 | 16.000 | 18.590 | 16.660 | ||||||||||||||||||||||||
Close |
22.500 | 19.850 | 19.510 | 18.590 | 18.710 | 18.190 | 19.420 | 19.700 | ||||||||||||||||||||||||
Average Closing Price |
21.584 | 20.199 | 19.790 | 18.876 | 18.769 | 19.142 | 20.089 | 18.332 | ||||||||||||||||||||||||
Dividends |
||||||||||||||||||||||||||||||||
Cash dividends declared on common stock |
$ | 0.175 | $ | 0.175 | $ | 0.1 | $ | 0.16 | $ | 0.1 | $ | 0.16 | $ | 0.16 | $ | 0.16 | ||||||||||||||||
Common shares outstanding (000s) |
||||||||||||||||||||||||||||||||
Average Basic |
228,902 | 228,715 | 228,633 | 231,355 | 233,581 | 239,925 | 246,106 | 250,749 | ||||||||||||||||||||||||
Average Diluted |
231,986 | 230,966 | 230,572 | 232,805 | 235,083 | 241,357 | 247,867 | 251,953 | ||||||||||||||||||||||||
Ending |
229,008 | 228,870 | 228,660 | 228,642 | 232,879 | 237,544 | 242,920 | 249,992 | ||||||||||||||||||||||||
Book value per share |
$ | 9.93 | $ | 9.79 | $ | 9.63 | $ | 9.43 | $ | 9.40 | $ | 9.44 | $ | 9.32 | $ | 9.43 | ||||||||||||||||
Common Share Repurchase Program (000s) |
||||||||||||||||||||||||||||||||
Number of Shares Repurchased |
| | | 4,300 | 4,110 | 6,262 | 7,329 | 1,458 |
Note: Intra-day and closing stock price quotations were obtained from NASDAQ.
Capital Data End of Period
2003 | 2002 | |||||||||||||||||||||||||||||||
(in millions) | Fourth(1) | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Total Risk-Adjusted Assets |
$ | 28,211 | $ | 27,949 | $ | 27,456 | $ | 27,337 | $ | 27,030 | $ | 26,226 | $ | 25,200 | $ | 24,826 | ||||||||||||||||
Tier 1 Risk-Based Capital Ratio |
8.51 | % | 8.40 | % | 8.35 | % | 8.16 | % | 8.34 | % | 8.82 | % | 9.42 | % | 10.00 | % | ||||||||||||||||
Total Risk-Based Capital Ratio |
11.93 | % | 11.19 | % | 11.16 | % | 11.04 | % | 11.25 | % | 11.78 | % | 12.46 | % | 13.15 | % | ||||||||||||||||
Tier 1 Leverage Ratio |
7.99 | % | 7.94 | % | 8.25 | % | 8.22 | % | 8.51 | % | 9.06 | % | 9.60 | % | 9.45 | % | ||||||||||||||||
Tangible Equity / Asset Ratio |
6.80 | % | 6.78 | % | 7.07 | % | 7.01 | % | 7.22 | % | 7.64 | % | 8.16 | % | 8.77 | % | ||||||||||||||||
Tangible Equity / Risk-Weighted Assets Ratio |
7.30 | % | 7.24 | % | 7.23 | % | 7.09 | % | 7.29 | % | 7.71 | % | 8.15 | % | 8.65 | % |
Other Data End of Period
2003 | 2002 | |||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||||
Number of employees (full-time equivalent) |
7,983 | 7,906 | 7,986 | 8,134 | 8,177 | 8,117 | 8,174 | 8,342 | ||||||||||||||||||||||||
Number of domestic full-service banking
offices(2) |
338 | 337 | 341 | 342 | 343 | 336 | 336 | 339 |
(1) |
Estimated. | |
(2) |
Includes three Private Financial Group offices in Florida. |
Page 8
Huntington Bancshares Incorporated
Quarterly Operating Lease Performance
2003 | 2002 | |||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||||
Balance Sheet (in millions) |
||||||||||||||||||||||||||||||||
Average operating lease assets outstanding |
$ | 1,355 | $ | 1,565 | $ | 1,802 | $ | 2,076 | $ | 2,328 | $ | 2,597 | $ | 2,842 | $ | 2,976 | ||||||||||||||||
Income Statement (in thousands) |
||||||||||||||||||||||||||||||||
Net rental income |
$ | 98,223 | $ | 109,645 | $ | 120,502 | $ | 130,274 | $ | 139,610 | $ | 150,016 | $ | 160,658 | $ | 165,169 | ||||||||||||||||
Fees |
5,204 | 5,372 | 5,414 | 5,633 | 7,081 | 7,220 | 7,108 | 7,133 | ||||||||||||||||||||||||
Recoveries early terminations |
1,880 | 2,607 | 2,658 | 2,286 | 2,568 | 2,928 | 3,851 | 3,732 | ||||||||||||||||||||||||
Total Operating Lease Income |
105,307 | 117,624 | 128,574 | 138,193 | 149,259 | 160,164 | 171,617 | 176,034 | ||||||||||||||||||||||||
Depreciation and residual losses at
termination |
76,768 | 83,112 | 91,387 | 99,283 | 106,399 | 112,900 | 120,240 | 124,244 | ||||||||||||||||||||||||
Losses early terminations |
8,841 | 10,022 | 11,552 | 12,305 | 14,348 | 12,843 | 11,455 | 16,541 | ||||||||||||||||||||||||
Total Operating Lease Expense |
85,609 | 93,134 | 102,939 | 111,588 | 120,747 | 125,743 | 131,695 | 140,785 | ||||||||||||||||||||||||
Net Earnings Contribution |
$ | 19,698 | $ | 24,490 | $ | 25,635 | $ | 26,605 | $ | 28,512 | $ | 34,421 | $ | 39,922 | $ | 35,249 | ||||||||||||||||
Earnings ratios(1) |
||||||||||||||||||||||||||||||||
Net rental income |
29.0 | % | 28.0 | % | 26.7 | % | 25.1 | % | 24.0 | % | 23.1 | % | 22.6 | % | 22.2 | % | ||||||||||||||||
Depreciation and residual losses at
termination |
22.7 | % | 21.2 | % | 20.3 | % | 19.1 | % | 18.3 | % | 17.4 | % | 16.9 | % | 16.7 | % |
Definition of terms:
Net rental income includes the lease payments earned on the vehicles that Huntington leases to its customers under operating leases. Fees include late fees, early payment fees and other non-origination fees. Recoveries represent payments received on a cash basis subsequent to a customers default on an operating lease and a recognition of an impairment loss on the lease. Depreciation represents the periodic depreciation of vehicles to their residual value owned by Huntington under operating leases and any accelerated depreciation where Huntington expects to receive less than the residual value from the sale of the vehicle and from insurance proceeds at the end of the lease term. Losses represent impairments recognized on vehicles where the lessee has defaulted on the operating lease.
(1) As a percent of average operating lease assets, quarterly and year-to-date amounts annualized.
Page 9
Huntington Bancshares Incorporated Consolidated Average Annual Balance Sheets and Net Interest Margin Analysis (in millions) |
Average Balance | ||||||||||||||||||||
Fully Tax Equivalent Basis(1) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Assets |
||||||||||||||||||||
Interest bearing deposits in banks |
$ | 37 | $ | 33 | $ | 7 | $ | 6 | $ | 9 | ||||||||||
Trading account securities |
14 | 7 | 25 | 15 | 13 | |||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
87 | 72 | 107 | 87 | 22 | |||||||||||||||
Mortgages held for sale |
564 | 322 | 360 | 109 | 232 | |||||||||||||||
Securities: |
||||||||||||||||||||
Taxable |
3,533 | 2,859 | 3,144 | 4,316 | 4,885 | |||||||||||||||
Tax exempt |
334 | 135 | 174 | 273 | 297 | |||||||||||||||
Total Securities |
3,867 | 2,994 | 3,318 | 4,589 | 5,182 | |||||||||||||||
Loans and Leases: |
||||||||||||||||||||
Commercial |
5,502 | 5,679 | 6,650 | 6,450 | 6,133 | |||||||||||||||
Real Estate |
||||||||||||||||||||
Construction |
1,246 | 1,216 | 1,221 | 1,184 | 999 | |||||||||||||||
Commercial |
2,691 | 2,378 | 2,340 | 2,186 | 2,234 | |||||||||||||||
Consumer |
||||||||||||||||||||
Automobile loans | 3,260 | 2,744 | NM | NM | NM | |||||||||||||||
Automobile leases | 1,423 | 452 | NM | NM | NM | |||||||||||||||
Automobile loans and leases |
4,683 | 3,196 | 2,839 | 3,123 | 3,535 | |||||||||||||||
Home equity |
3,446 | 3,085 | 3,398 | 2,990 | 2,345 | |||||||||||||||
Residential mortgage |
2,076 | 1,438 | 1,048 | 1,379 | 1,488 | |||||||||||||||
Other loans |
380 | 425 | 590 | 530 | 1,102 | |||||||||||||||
Total Consumer |
10,585 | 8,144 | 7,875 | 8,022 | 8,470 | |||||||||||||||
Total Loans and Leases |
20,024 | 17,417 | 18,086 | 17,842 | 17,836 | |||||||||||||||
Allowance for loan losses |
358 | 374 | 307 | 274 | 280 | |||||||||||||||
Net Loans and Leases |
19,666 | 17,043 | 17,779 | 17,568 | 17,556 | |||||||||||||||
Total earning assets |
24,593 | 20,845 | 21,903 | 22,648 | 23,294 | |||||||||||||||
Operating lease inventory |
1,697 | 2,602 | 2,970 | 2,751 | 2,179 | |||||||||||||||
Cash and due from banks |
774 | 757 | 912 | 1,008 | 1,039 | |||||||||||||||
Intangible assets |
218 | 293 | 736 | 709 | 682 | |||||||||||||||
All other assets |
2,020 | 1,910 | 1,891 | 1,729 | 1,707 | |||||||||||||||
Total Assets |
$ | 28,944 | $ | 26,033 | $ | 28,105 | $ | 28,571 | $ | 28,621 | ||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||
Core deposits |
||||||||||||||||||||
Non-interest bearing deposits |
$ | 3,080 | $ | 2,902 | $ | 3,304 | $ | 3,421 | $ | 3,497 | ||||||||||
Interest bearing demand deposits |
6,193 | 5,161 | 5,005 | 4,291 | 4,097 | |||||||||||||||
Savings deposits |
2,802 | 2,853 | 3,478 | 3,563 | 3,740 | |||||||||||||||
Retail certificates of deposit |
2,702 | 3,619 | 4,980 | 4,930 | 4,791 | |||||||||||||||
Other domestic time deposits |
660 | 730 | 903 | 942 | 1,032 | |||||||||||||||
Total core deposits |
15,437 | 15,265 | 17,670 | 17,147 | 17,157 | |||||||||||||||
Domestic time deposits of $100,000 or more |
802 | 851 | 1,280 | 1,502 | 1,449 | |||||||||||||||
Brokered time deposits and negotiable CDs |
1,419 | 731 | 128 | 502 | 238 | |||||||||||||||
Foreign time deposits |
500 | 337 | 283 | 539 | 363 | |||||||||||||||
Total deposits |
18,158 | 17,184 | 19,361 | 19,690 | 19,207 | |||||||||||||||
Short-term borrowings |
1,600 | 1,856 | 2,099 | 1,966 | 2,549 | |||||||||||||||
Federal Home Loan Bank advances |
1,258 | 279 | 19 | 13 | 5 | |||||||||||||||
Subordinated notes and other long-term debt,
including preferred capital securities |
4,559 | 3,335 | 3,411 | 4,005 | 4,120 | |||||||||||||||
Total interest bearing liabilities |
22,495 | 19,752 | 21,586 | 22,253 | 22,384 | |||||||||||||||
All other liabilities |
1,173 | 1,140 | 884 | 705 | 648 | |||||||||||||||
Shareholders equity |
2,196 | 2,239 | 2,331 | 2,192 | 2,092 | |||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 28,944 | $ | 26,033 | $ | 28,105 | $ | 28,571 | $ | 28,621 | ||||||||||
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. See page 12 for the fully taxable equivalent adjustment.
Page 10
Huntington Bancshares Incorporated
Consolidated Average Annual Balance Sheets and Net Interest Margin Analysis
Average Rate(3) | ||||||||||||||||||||
Fully Tax Equivalent Basis(1) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Assets |
||||||||||||||||||||
Interest bearing deposits in banks |
1.53 | % | 2.38 | % | 3.43 | % | 5.03 | % | 4.04 | % | ||||||||||
Trading account securities |
4.02 | 4.11 | 5.13 | 7.11 | 5.89 | |||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
1.80 | 1.56 | 4.19 | 6.33 | 5.58 | |||||||||||||||
Mortgages held for sale |
5.32 | 6.35 | 6.95 | 7.96 | 7.03 | |||||||||||||||
Securities: |
||||||||||||||||||||
Taxable |
4.52 | 6.06 | 6.58 | 6.24 | 6.08 | |||||||||||||||
Tax exempt |
7.04 | 7.42 | 7.49 | 7.61 | 7.90 | |||||||||||||||
Total Securities |
4.73 | 6.12 | 6.63 | 6.33 | 6.18 | |||||||||||||||
Loans and Leases:(2) |
||||||||||||||||||||
Commercial |
5.08 | 5.62 | 7.22 | 8.65 | 7.92 | |||||||||||||||
Real Estate |
||||||||||||||||||||
Construction |
4.14 | 4.70 | 7.08 | 8.96 | 8.45 | |||||||||||||||
Commercial |
5.23 | 6.20 | 7.58 | 8.42 | 8.15 | |||||||||||||||
Consumer |
||||||||||||||||||||
Automobile loans | 7.38 | 8.67 | NM | NM | NM | |||||||||||||||
Automobile leases | 5.09 | 5.14 | NM | NM | NM | |||||||||||||||
Automobile loans and leases |
6.68 | 8.17 | 8.94 | 8.67 | 8.24 | |||||||||||||||
Home equity |
5.06 | 5.96 | 8.23 | 8.52 | 8.40 | |||||||||||||||
Residential mortgage |
5.50 | 6.36 | 7.79 | 7.77 | 7.51 | |||||||||||||||
Other loans |
7.10 | 7.59 | 8.41 | 10.35 | 10.30 | |||||||||||||||
Total Consumer |
5.93 | 6.98 | 8.44 | 8.57 | 8.42 | |||||||||||||||
Total Loans and Leases |
5.49 | 6.27 | 7.79 | 8.61 | 8.22 | |||||||||||||||
Total earning assets |
5.35 | % | 6.23 | % | 7.58 | % | 8.13 | % | 7.75 | % | ||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||
Core deposits |
||||||||||||||||||||
Non-interest bearing deposits
Interest bearing demand deposits |
1.18 | % | 1.71 | % | 2.64 | % | 3.30 | % | 2.56 | % | ||||||||||
Savings deposits |
1.49 | 1.77 | 3.07 | 4.09 | 3.36 | |||||||||||||||
Retail certificates of deposit |
3.68 | 4.58 | 5.65 | 5.72 | 5.10 | |||||||||||||||
Other domestic time deposits |
3.86 | 4.05 | 5.34 | 5.52 | 5.20 | |||||||||||||||
Total core deposits |
1.94 | 2.70 | 3.95 | 4.52 | 3.86 | |||||||||||||||
Domestic time deposits of $100,000 or more |
2.50 | 3.39 | 5.22 | 6.01 | 5.28 | |||||||||||||||
Brokered time deposits and negotiable CDs |
1.70 | 2.36 | 5.12 | 6.35 | 5.40 | |||||||||||||||
Foreign time deposits |
0.92 | 1.47 | 3.82 | 6.31 | 5.14 | |||||||||||||||
Total deposits |
1.91 | 2.69 | 4.06 | 4.77 | 4.05 | |||||||||||||||
Short-term borrowings |
0.98 | 1.56 | 4.57 | 5.75 | 4.48 | |||||||||||||||
Federal Home Loan Bank advances |
1.94 | 2.00 | 6.17 | 6.32 | 5.19 | |||||||||||||||
Subordinated notes and other long-term debt,
including preferred capital securities |
2.82 | 3.70 | 5.52 | 6.74 | 5.59 | |||||||||||||||
Total interest bearing liabilities |
2.03 | % | 2.75 | % | 4.34 | % | 5.22 | % | 4.38 | % | ||||||||||
Net interest rate spread |
3.32 | % | 3.48 | % | 3.24 | % | 2.91 | % | 3.37 | % | ||||||||||
Impact of non-interest bearing funds on margin |
0.17 | % | 0.14 | % | 0.05 | % | 0.09 | % | 0.16 | % | ||||||||||
Net Interest Margin |
3.49 | % | 3.62 | % | 3.29 | % | 3.00 | % | 3.53 | % | ||||||||||
(1) |
Fully tax equivalent yields are calculated assuming a 35% tax rate. See page 12 for the fully taxable equivalent adjustment. | |
(2) |
Individual loan components include applicable fees. | |
(3) |
Loan and deposit average rates include impact of applicable derivatives. |
Page 11
Huntington Bancshares Incorporated
Selected Annual Income Statement Data
(in thousands of dollars, except per share amounts) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Net Interest Income |
$ | 848,986 | $ | 749,574 | $ | 715,288 | $ | 670,110 | $ | 812,844 | ||||||||||
Provision for loan and lease losses |
163,993 | 194,426 | 257,326 | 61,464 | 70,335 | |||||||||||||||
Net Interest Income After
Provision for Loan and Lease Losses |
684,993 | 555,148 | 457,962 | 608,646 | 742,509 | |||||||||||||||
Operating lease income |
489,698 | 657,074 | 691,733 | 623,835 | 489,971 | |||||||||||||||
Service charges on deposit accounts |
167,840 | 153,564 | 165,012 | 161,426 | 156,783 | |||||||||||||||
Trust services |
61,649 | 62,051 | 60,298 | 53,613 | 52,030 | |||||||||||||||
Brokerage and insurance income |
57,844 | 62,109 | 75,013 | 60,530 | 51,239 | |||||||||||||||
Mortgage banking |
58,180 | 32,033 | 54,518 | 32,772 | 52,960 | |||||||||||||||
Bank Owned Life Insurance income |
43,028 | 43,123 | 41,123 | 39,544 | 37,560 | |||||||||||||||
Other service charges and fees |
41,446 | 42,888 | 48,217 | 43,883 | 37,301 | |||||||||||||||
Gain on sales of automobile loans |
40,039 | | | | | |||||||||||||||
Gain on sale of branch offices |
13,112 | | | | | |||||||||||||||
Securities gains |
5,258 | 4,902 | 723 | 37,101 | 12,972 | |||||||||||||||
Gain on sale of Florida Operations |
| 182,470 | | | | |||||||||||||||
Merchant Services gain |
| 24,550 | | | | |||||||||||||||
Gains on sale of credit card portfolio |
| | | | 108,530 | |||||||||||||||
Other |
91,059 | 76,940 | 63,305 | 70,498 | 55,512 | |||||||||||||||
Total Non-Interest Income |
1,069,153 | 1,341,704 | 1,199,942 | 1,123,202 | 1,054,858 | |||||||||||||||
Personnel costs |
447,263 | 418,037 | 454,210 | 396,230 | 396,380 | |||||||||||||||
Operating lease expense |
393,270 | 518,970 | 558,626 | 494,800 | 346,027 | |||||||||||||||
Outside data processing and other services |
66,118 | 67,368 | 69,692 | 62,011 | 62,886 | |||||||||||||||
Equipment |
65,921 | 68,323 | 80,560 | 78,069 | 66,666 | |||||||||||||||
Net occupancy |
62,481 | 59,539 | 76,449 | 75,197 | 71,939 | |||||||||||||||
Professional services |
42,448 | 33,085 | 32,862 | 22,721 | 21,169 | |||||||||||||||
Marketing |
27,490 | 27,911 | 31,057 | 34,884 | 32,506 | |||||||||||||||
Telecommunications |
21,979 | 22,661 | 27,984 | 26,225 | 28,519 | |||||||||||||||
Loss on early extinguishment of debt |
15,250 | | | | | |||||||||||||||
Printing and supplies |
13,009 | 15,198 | 18,367 | 19,634 | 20,227 | |||||||||||||||
Amortization of intangibles |
816 | 2,019 | 41,225 | 39,207 | 37,296 | |||||||||||||||
Restrucuturing (releases) charges |
(6,666 | ) | 48,973 | 79,957 | | 46,791 | ||||||||||||||
Other |
80,780 | 92,063 | 91,438 | 34,153 | 64,373 | |||||||||||||||
Total Non-Interest Expense |
1,230,159 | 1,374,147 | 1,562,427 | 1,283,131 | 1,194,779 | |||||||||||||||
Income Before Income Taxes |
523,987 | 522,705 | 95,477 | 448,717 | 602,588 | |||||||||||||||
Income taxes |
138,294 | 198,974 | (39,319 | )(2) | 126,299 | 188,433 | ||||||||||||||
Income before cumulative effect of change in
accounting principle |
385,693 | 323,731 | 134,796 | 322,418 | 414,155 | |||||||||||||||
Cumulative effect of change in accounting
principle, net of tax(1) |
(13,330 | ) | | | | | ||||||||||||||
Net Income |
$ | 372,363 | $ | 323,731 | $ | 134,796 | $ | 322,418 | $ | 414,155 | ||||||||||
Per Common Share |
||||||||||||||||||||
Income before cumulative effect of change
in accounting principle Diluted |
$ | 1.67 | $ | 1.33 | $ | 0.54 | $ | 1.29 | $ | 1.62 | ||||||||||
Net Income Diluted |
$ | 1.61 | $ | 1.33 | $ | 0.54 | $ | 1.29 | $ | 1.62 | ||||||||||
Cash Dividends Declared |
$ | 0.67 | $ | 0.64 | $ | 0.72 | $ | 0.76 | $ | 0.68 | ||||||||||
Return on: |
||||||||||||||||||||
Average total assets(3) |
1.33 | % | 1.24 | % | 0.48 | % | 1.13 | % | 1.45 | % | ||||||||||
Average total shareholders equity(3) |
17.6 | % | 14.5 | % | 5.8 | % | 14.7 | % | 19.8 | % | ||||||||||
Net interest margin(4) |
3.49 | % | 3.62 | % | 3.29 | % | 3.00 | % | 3.53 | % | ||||||||||
Efficiency ratio(5) |
63.9 | % | 65.6 | % | 79.2 | % | 70.5 | % | 62.1 | % | ||||||||||
Effective tax rate |
26.4 | % | 38.1 | % | -41.2 | %(2) | 28.1 | % | 31.3 | % | ||||||||||
Revenue Fully Taxable Equivalent (FTE) |
||||||||||||||||||||
Net Interest Income |
$ | 848,986 | $ | 749,574 | $ | 715,288 | $ | 670,110 | $ | 812,844 | ||||||||||
Tax Equivalent Adjustment(4) |
9,684 | 5,205 | 6,352 | 8,310 | 9,423 | |||||||||||||||
Net Interest Income |
858,670 | 754,779 | 721,640 | 678,420 | 822,267 | |||||||||||||||
Non-Interest Income |
1,069,153 | 1,341,704 | 1,199,942 | 1,123,202 | 1,054,858 | |||||||||||||||
Total Revenue |
$ | 1,927,823 | $ | 2,096,483 | $ | 1,921,582 $ | 1,801,622 | $ | 1,877,125 | |||||||||||
Total Revenue Excluding Securities Gains |
$ | 1,922,565 | $ | 2,091,581 | $ | 1,920,859 | $ | 1,764,521 | $ | 1,864,153 | ||||||||||
(1) |
Due to the adoption of FASB Interpretation No. 46 for variable interest entities. | |
(2) |
Reflects a $32.5 million reduction related to the issuance of $400 million of REIT subsidiary preferred stock, of which $50 million was issued to the public. | |
(3) |
Based on income before cumulative effect of change in accounting principle, net of tax. | |
(4) |
Calculated assuming a 35% tax rate. | |
(5) |
Non-interest expense less amortization of intangible assets divided by the sum of fully taxable equivalent net interest income and non-interest income excluding securities gains. |
Page 12
Huntington Bancshares Incorporated
Annual Loan and Lease Loss Reserves and Asset Quality
(in thousands) | 2003 | 2002 | 2000 | 2001 | 1999 | |||||||||||||||
Allowance for Loan and Lease Losses, Beginning
of Year |
$ | 336,648 | $ | 369,332 | $ | 264,929 | $ | 273,931 | $ | 273,125 | ||||||||||
Loan and lease losses |
(201,534 | ) | (234,352 | ) | (174,540 | ) | (85,825 | ) | (99,082 | ) | ||||||||||
Recoveries of loans previously charged off |
39,725 | 37,440 | 28,271 | 24,178 | 29,553 | |||||||||||||||
Net Loan and Lease Losses |
(161,809 | ) | (196,912 | ) | (146,269 | ) | (61,647 | ) | (69,529 | ) | ||||||||||
Provision for loan and lease losses |
163,993 | 194,426 | 257,326 | 61,464 | 70,335 | |||||||||||||||
Allowance of assets (sold)/purchased |
(12,537 | ) | (21,033 | ) | | 7,900 | | |||||||||||||
Allowance of
securitized loans(1) |
8,959 | (9,165 | ) | (6,654 | ) | (16,719 | ) | | ||||||||||||
Allowance for Loan and Lease Losses, End of Year |
$ | 335,254 | $ | 336,648 | $ | 369,332 | $ | 264,929 | $ | 273,931 | ||||||||||
Allowance for loan and lease losses as a % of total
loans and leases |
1.59 | % | 1.81 | % | 2.00 | % | 1.50 | % | 1.52 | % | ||||||||||
Allowance for loan and lease losses as a % of non-
performing loans and leases |
444 | % | 263 | % | 167 | % | 282 | % | 330 | % | ||||||||||
Allowance for loan and lease losses as a % of non-
performing assets |
384 | % | 246 | % | 162 | % | 251 | % | 279 | % | ||||||||||
Net Charge-offs by Loan and Lease Type |
||||||||||||||||||||
Commercial |
$ | 84,858 | $ | 117,762 | $ | 59,568 | $ | 13,812 | $ | 10,900 | ||||||||||
Commercial real estate |
10,517 | 17,641 | 3,729 | 1,327 | 1,585 | |||||||||||||||
Total commercial and commercial real estate |
95,375 | 135,403 | 63,297 | 15,139 | 12,485 | |||||||||||||||
Consumer |
||||||||||||||||||||
Automobile leases and loans |
45,994 | 40,546 | 55,071 | 32,280 | 28,582 | |||||||||||||||
Home equity |
14,604 | 13,506 | 14,588 | 6,909 | 6,096 | |||||||||||||||
Residential mortgage |
832 | 872 | 785 | 1,007 | 1,136 | |||||||||||||||
Other loans |
5,004 | 6,585 | 12,528 | 6,312 | 21,230 | |||||||||||||||
Total consumer |
66,434 | 61,509 | 82,972 | 46,508 | 57,044 | |||||||||||||||
Total Net Charge-offs |
$ | 161,809 | $ | 196,912 | $ | 146,269 | $ | 61,647 | $ | 69,529 | ||||||||||
Net Charge-offs as a Percentage of Average Loans and Leases |
||||||||||||||||||||
Commercial |
1.54 | % | 2.07 | % | 0.90 | % | 0.21 | % | 0.18 | % | ||||||||||
Commercial real estate |
0.27 | 0.49 | 0.10 | 0.04 | 0.05 | |||||||||||||||
Total commercial and commercial real estate |
1.01 | 1.46 | 0.62 | 0.15 | 0.13 | |||||||||||||||
Consumer |
||||||||||||||||||||
Automobile loans and leases |
0.98 | 1.27 | 1.94 | 1.03 | 0.81 | |||||||||||||||
Home equity |
0.42 | 0.44 | 0.43 | 0.23 | 0.26 | |||||||||||||||
Residential mortgage |
0.04 | 0.06 | 0.07 | 0.07 | 0.08 | |||||||||||||||
Other loans |
1.32 | 1.55 | 2.12 | 1.19 | 1.93 | |||||||||||||||
Total consumer |
0.63 | 0.76 | 1.05 | 0.58 | 0.67 | |||||||||||||||
Net Charge-offs as a % of Average Loans and Leases |
0.81 | % | 1.13 | % | 0.81 | % | 0.35 | % | 0.39 | % | ||||||||||
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Huntington Bancshares Incorporated
Annual Non-Performing Assets and Past Due Loans and Leases
(in thousands) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Non-accrual loans and leases: |
||||||||||||||||||||
Commercial |
$ | 43,387 | $ | 91,861 | $ | 159,637 | $ | 55,804 | $ | 42,958 | ||||||||||
Commercial real estate |
22,399 | 26,765 | 48,360 | 26,702 | 26,916 | |||||||||||||||
Residential mortgage |
9,695 | 9,443 | 11,836 | 10,174 | 11,866 | |||||||||||||||
Total Nonaccrual Loans and Leases |
75,481 | 128,069 | 219,833 | 92,680 | 81,740 | |||||||||||||||
Renegotiated loans |
| | 1,276 | 1,304 | 1,330 | |||||||||||||||
Total Non-Performing Loans and Leases |
75,481 | 128,069 | 221,109 | 93,984 | 83,070 | |||||||||||||||
Other real estate, net |
11,905 | 8,654 | 6,384 | 11,413 | 15,171 | |||||||||||||||
Total Non-Performing Assets |
$ | 87,386 | $ | 136,723 | $ | 227,493 | $ | 105,397 | $ | 98,241 | ||||||||||
Non-performing loans and leases as a % of
total loans and leases |
0.36 | % | 0.69 | % | 1.20 | % | 0.53 | % | 0.46 | % | ||||||||||
Non-performing assets as a % of total loans
and leases and other real estate |
0.41 | % | 0.74 | % | 1.23 | % | 0.60 | % | 0.55 | % | ||||||||||
Accruing loans and leases past due 90
days or more |
$ | 55,913 | $ | 61,526 | $ | 76,013 | $ | 66,665 | $ | 54,567 | ||||||||||
Accruing loans and leases past due 90 days or
more as a percent of total loans and leases |
0.27 | % | 0.33 | % | 0.41 | % | 0.38 | % | 0.30 | % |
(in thousands) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Non-Performing Assets, Beginning
of Period |
$ | 136,723 | $ | 227,493 | $ | 105,397 | $ | 98,241 | $ | 96,099 | ||||||||||
New non-performing assets |
222,043 | 260,229 | 329,882 | 112,319 | 106,014 | |||||||||||||||
Returns to accruing status |
(16,632 | ) | (17,124 | ) | (2,767 | ) | (5,914 | ) | (5,744 | ) | ||||||||||
Loan and lease losses |
(109,905 | ) | (152,616 | ) | (67,491 | ) | (18,052 | ) | (17,515 | ) | ||||||||||
Payments |
(83,886 | ) | (136,774 | ) | (106,889 | ) | (67,431 | ) | (69,714 | ) | ||||||||||
Sales |
(60,957 | ) | (44,485 | ) | (30,639 | ) | (13,766 | ) | (10,899 | ) | ||||||||||
Non-Performing Assets, End of Period |
$ | 87,386 | $ | 136,723 | $ | 227,493 | $ | 105,397 | $ | 98,241 | ||||||||||
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