Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

Segment Reporting
3 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  



We have four major business segments: Retail and Business Banking, Regional and Commercial Banking, Automobile Finance and Commercial Real Estate, and Wealth Advisors, Government Finance, and Home Lending. A Treasury / Other function includes our insurance business and other unallocated assets, liabilities, revenue, and expense.


Segment results are determined based upon the Company's management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the Company's organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. A description of each segment and table of financial results is presented below.


Retail and Business Banking: The Retail and Business Banking segment provides a wide array of financial products and services to consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, and small business loans and leases. Other financial services available to consumer and small business customers include investments, insurance services, interest rate risk protection products, foreign exchange hedging, and treasury management services. Huntington serves customers primarily through our network of traditional branches in Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. Huntington also has branches located in grocery stores in Ohio and Michigan. In addition to our extensive branch network, customers can access Huntington through online banking, mobile banking, telephone banking, and over 1,400 ATMs.


Huntington established a “Fair Play” banking philosophy and built a reputation for meeting the banking needs of consumers in a manner which makes them feel supported and appreciated. Huntington believes customers are recognizing this and other efforts as key differentiators and it is earning us more customers and deeper relationships.


Business Banking is a dynamic and growing part of our business and we are committed to being the bank of choice for small businesses in our markets. Business Banking is defined as companies with revenues up to $25 million and consists of approximately 163,000 businesses.  Huntington continues to develop products and services that are designed specifically to meet the needs of small business. Huntington continues to look for ways to help companies find solutions to their capital needs.


Regional and Commercial Banking: This segment provides a wide array of products and services to the middle market and large corporate customers base located primarily within our eleven regional commercial banking markets. Products and services are delivered through a relationship banking model and include commercial lending, as well as depository and liquidity management products. Dedicated teams collaborate with our relationship bankers to deliver complex and customized treasury management solutions, equipment and technology leasing, international services, capital markets services such as interest rate risk protection products, foreign exchange hedging and sales, trading of securities, mezzanine investment capabilities, and employee benefit programs (insurance, 401(k)). The Commercial Banking team specializes in serving a number of industry segments such as not-for-profit organizations, health-care entities, and large publicly traded companies.


Automobile Finance and Commercial Real Estate: This segment provides lending and other banking products and services to customers outside of our normal retail and commercial banking segments. Our products and services include financing for the purchase of automobiles by customers at automotive dealerships, financing the acquisition of new and used vehicle inventory of automotive dealerships, and financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers with real estate project financing needs. Products and services are delivered through highly specialized relationship-focused bankers and product partners. Huntington creates well-defined relationship plans which identify needs where solutions are developed and customer commitments are obtained.

The Automotive Finance team services automobile dealerships, its owners, and consumers buying automobiles through these dealerships. Huntington has provided new and used automobile financing and dealer services throughout the Midwest since the early 1950s. This consistency in the market and our focus on working with strong dealerships, has allowed us to expand into selected markets outside of the Midwest and to actively deepen relationships while building a strong reputation.

The Commercial Real Estate team serves real estate developers, REITs, and other customers with lending needs that are secured by commercial properties. Most of our customers are located within our footprint.


Wealth Advisors, Government Finance, and Home Lending: This segment consists of our wealth management, government banking, and home lending businesses. In wealth management, Huntington provides financial services to high net worth clients in our primary banking markets and Florida. Huntington provides these services through a unified sales team, which consists of private bankers, trust officers, and investment advisors. Aligned with the eleven regional commercial banking markets, this coordinated service model delivers products and services directly and through the other segment product partners. A fundamental point of differentiation is our commitment to be in the market, working closely with clients and their other advisors to identify needs, offer solutions and provide ongoing advice in an optimal client relationship.

The Government Finance Group provides financial products and services to government and other public sector entities in our primary banking markets. A locally based team of relationship managers works with clients to meet their trust, lending, and treasury management needs.

Home Lending originates and services consumer loans and mortgages for customers who are generally located in our primary banking markets. Consumer and mortgage lending products are primarily distributed through the Retail and Business Banking segment, as well as through commissioned loan originators. Closely aligned, our Community Development group serves an important role as it focuses on delivering on our commitment to the communities Huntington serves.

The segment also includes the related businesses of investment management, investment servicing, custody, corporate trust, and retirement plan services. Huntington Asset Advisors provides investment management services through a variety of internal and external channels, including advising the Huntington Funds, our proprietary family of mutual funds and Huntington Strategy Shares, our actively-managed exchange-traded funds. Huntington Asset Services offers administrative and operational support to fund complexes, including fund accounting, transfer agency, administration, and distribution services. Our retirement plan services business offers fully bundled and third party distribution of a variety of qualified and non-qualified plan solutions.

Treasury / Other function includes our insurance brokerage business, which specializes in commercial property and casualty, employee benefits, personal lines, life and disability and specialty lines of insurance. Huntington also provides brokerage and agency services for residential and commercial title insurance and excess and surplus product lines of insurance. As an agent and broker we do not assume underwriting risks; instead we provide our customers with quality, noninvestment insurance contracts. The Treasury / Other function also includes technology and operations, other unallocated assets, liabilities, revenue, and expense.


Listed below is certain operating basis financial information reconciled to Huntington's June 30, 2013, December 31, 2012, and June 30, 2012, reported results by business segment:


      Three Months Ended June 30,
      Retail &   Regional &                  
Income Statements   Business   Commercial         Treasury/   Huntington
(dollar amounts in thousands )   Banking Banking   AFCRE   WGH Other   Consolidated
Net interest income $ 204,560   67,945   87,661   42,631   22,140   $ 424,937
Provision for credit losses   25,477   (387)   (5,302)   4,933   1     24,722
Noninterest income   98,614   33,929   7,891   76,051   32,170     248,655
Noninterest expense   236,875   54,739   37,306   94,361   22,584     445,865
Income taxes   14,288   16,633   22,242   6,786   (7,595)     52,354
Net income $ 26,534 $ 30,889 $ 41,306 $ 12,602 $ 39,320   $ 150,651
Net interest income $ 221,645   67,919   86,862   48,386   4,150   $ 428,962
Provision for credit losses   16,047   24,329   (4,828)   971   1     36,520
Noninterest income   97,739   35,470   10,299   80,593   29,718     253,819
Noninterest expense   240,385   51,691   38,526   94,022   19,645     444,269
Income taxes   22,033   9,579   22,212   11,895   (16,433)     49,286
Net income $ 40,919 $ 17,790 $ 41,251 $ 22,091 $ 30,655   $ 152,706
      Six Months Ended June 30,
      Retail &   Regional &                  
Income Statements   Business   Commercial         Treasury/     Huntington
(dollar amounts in thousands )   Banking Banking   AFCRE   WGH Other   Consolidated
Net interest income $ 409,809   137,344   175,731   86,299   39,924   $ 849,107
Provision for credit losses   58,017   (7,627)   (12,802)   16,726   ---     54,314
Noninterest income   184,578   64,231   16,246   170,705   65,104     500,864
Noninterest expense   477,044   107,154   74,217   186,353   43,890     888,658
Income taxes   20,764   35,717   45,697   18,874   (16,484)     104,568
Net income $ 38,562 $ 66,331 $ 84,865 $ 35,051 $ 77,622   $ 302,431
Net interest income $ 442,946   132,121   177,192   95,215   (1,303)   $ 846,171
Provision for credit losses   64,886   37,609   (47,082)   15,512   1     70,926
Noninterest income   186,995   67,403   45,018   168,231   71,492     539,139
Noninterest expense   475,246   97,558   77,365   184,939   71,837     906,945
Income taxes   31,433   22,525   67,174   22,048   (41,717)     101,463
Net income $ 58,376 $ 41,832 $ 124,753 $ 40,947 $ 40,068   $ 305,976

    Assets at     Deposits at
    June 30,     December 31,       June 30,     December 31,  
(dollar amounts in thousands)   2013     2012       2013     2012  
Retail & Business Banking $ 14,369,686   $ 14,362,630     $ 28,209,069   $ 28,367,264  
Regional & Commercial Banking   11,884,929     11,540,966       5,639,029     5,862,858  
AFCRE   12,533,086     12,085,128       1,021,396     995,035  
WGH   7,683,464     7,570,256       10,069,230     9,507,785  
Treasury / Other   9,642,522     10,594,205       1,392,710     1,519,741  
Total $ 56,113,687   $ 56,153,185     $ 46,331,434   $ 46,252,683