Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

Segment Reporting
3 Months Ended
Sep. 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 1,500 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 September 30, 2013, December 31, 2012, and September 30, 2012, reported results by business segment:


      Three Months Ended September 30,
      Retail &   Regional &                  
Income Statements   Business   Commercial         Treasury/   Huntington
(dollar amounts in thousands )   Banking Banking   AFCRE   WGH Other   Consolidated
Net interest income $ 202,040   69,168   90,002   43,093   20,549   $ 424,852
Provision for credit losses   43,179   42,464   (69,579)   (4,663)   (1)     11,400
Noninterest income   103,868   42,121   7,631   63,787   33,096     250,503
Noninterest expense   242,386   56,669   38,224   90,502   (4,445)     423,336
Income taxes   7,120   4,255   45,146   7,364   (1,753)     62,132
Net income $ 13,223 $ 7,901 $ 83,842 $ 13,677 $ 59,844   $ 178,487
Net interest income $ 213,270   69,995   89,573   48,181   9,279     430,298
Provision for credit losses   38,347   4,933   (13,948)   7,673   (1)     37,004
Noninterest income   99,751   33,320   10,000   82,139   35,857     261,067
Noninterest expense   252,241   50,660   38,437   95,050   21,915     458,303
Income taxes   7,852   16,703   26,279   9,659   (32,202)     28,291
Net income $ 14,581 $ 31,019 $ 48,805 $ 17,938 $ 55,424   $ 167,767
      Nine Months Ended September 30,
      Retail &   Regional &                  
Income Statements   Business   Commercial         Treasury/     Huntington
(dollar amounts in thousands )   Banking Banking   AFCRE   WGH Other   Consolidated
Net interest income $ 611,849   206,512   265,733   129,392   60,473   $ 1,273,959
Provision for credit losses   101,196   34,838   (82,381)   12,063   (2)     65,714
Noninterest income   288,446   106,349   23,877   234,493   98,202     751,367
Noninterest expense   719,430   163,232   112,440   276,856   40,036     1,311,994
Income taxes   27,884   40,177   90,843   26,238   (18,442)     166,700
Net income $ 51,785 $ 74,614 $ 168,708 $ 48,728 $ 137,083   $ 480,918
Net interest income $ 656,216   202,116   266,765   143,396   7,976   $ 1,276,469
Provision for credit losses   103,233   42,542   (61,030)   23,185   ---     107,930
Noninterest income   286,745   100,724   55,018   250,370   107,349     800,206
Noninterest expense   727,486   148,219   115,802   279,988   93,753     1,365,248
Income taxes   39,285   39,228   93,454   31,708   (73,921)     129,754
Net income $ 72,957 $ 72,851 $ 173,557 $ 58,885 $ 95,493   $ 473,743

    Assets at     Deposits at
    September 30,     December 31,       September 30,     December 31,  
(dollar amounts in thousands)   2013     2012       2013     2012  
Retail & Business Banking $ 14,391,941   $ 14,362,630     $ 28,199,983   $ 28,367,264  
Regional & Commercial Banking   12,209,751     11,540,966       6,190,813     5,862,858  
AFCRE   12,992,479     12,085,128       1,084,146     995,035  
WGH   7,636,789     7,570,256       9,935,334     9,507,785  
Treasury / Other   9,417,291     10,594,205       1,153,770     1,519,741  
Total $ 56,648,251   $ 56,153,185     $ 46,564,046   $ 46,252,683