-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TxfiTzelnQnoHrqMxeKAq/PpRxi3aXUsl/AnA0SddTi2t/X76ZeVNTSJQUT+CJt/ thmB6V11C1/2H5bQ0HXf3A== 0000950152-01-000335.txt : 20010123 0000950152-01-000335.hdr.sgml : 20010123 ACCESSION NUMBER: 0000950152-01-000335 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20010118 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUNTINGTON BANCSHARES INC/MD CENTRAL INDEX KEY: 0000049196 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 310724920 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-02525 FILM NUMBER: 1512097 BUSINESS ADDRESS: STREET 1: HUNTINGTON CTR STREET 2: 41 S HIGH ST HC0632 CITY: COLUMBUS STATE: OH ZIP: 43287 BUSINESS PHONE: 6144808300 MAIL ADDRESS: STREET 1: HUNTINGTON CENTER2 STREET 2: 41 S HIGH ST HC063 CITY: COLUMBUS STATE: OH ZIP: 43287 8-K 1 l86009ae8-k.txt HUNTINGTON BANCSHARES INCORPORATED FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 -------------------- DATE OF REPORT: JANUARY 18, 2001 -------------------- HUNTINGTON BANCSHARES INCORPORATED (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) -------------------- Maryland 0-2525 31-0724920 - --------------- --------------------- -------------- (STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER JURISDICTION OF IDENTIFICATION NUMBER) INCORPORATION OR ORGANIZATION) -------------------- Huntington Center 41 South High Street Columbus, Ohio 43287 (614) 480-8300 (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER INCLUDING AREA CODE OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES) --------------------- 2 ITEM 5. OTHER EVENTS. On January 18, 2001, Huntington Bancshares Incorporated ("Huntington") issued a news release announcing its earnings for the fourth quarter and year ended December 31, 2000. The information contained in the news release, which is attached as Exhibit 99.1 to this report, is incorporated herein by reference. Huntington also presented this information during a conference call which was available via Internet Webcast. The presentation materials are attached at Exhibits 99.2 and 99.3 to this report, and are incorporated herein by reference. The information contained or incorporated by reference in this Current Report on Form 8-K may contain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the successful integration of acquired businesses; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. Exhibit 99.1 News release of Huntington Bancshares Incorporated, dated January 18, 2001. Exhibit 99.2 Presentation of January 18, 2001. Exhibit 99.3 Presentation Materials, dated January 18, 2001. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HUNTINGTON BANCSHARES INCORPORATED Date: January 19, 2001 By: /s/ Michael J. McMennamin ---------------------------------------- Michael J. McMennamin, Vice Chairman, Chief Financial Officer and Treasurer 3 EXHIBIT INDEX Exhibit No. Description Exhibit 99.1 * News release of Huntington Bancshares Incorporated, January 18, 2001. Exhibit 99.2 * Presentation of January 18, 2001. Exhibit 99.3 * Presentation Materials, dated January 18, 2001. - ---------- * Filed with this report. EX-99.1 2 l86009aex99-1.txt EXHIBIT 99.1 1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE SUBMITTED: JANUARY 18, 2001 FOR FURTHER INFORMATION, CONTACT: MEDIA ANALYSTS - ----- -------- JERI GRIER (614) 480-5413 LAURIE COUNSEL (614) 480-3878 LAURA BOWERS (614) 480-4433 CHERI GRAY (614) 480-3803 HUNTINGTON BANCSHARES ANNOUNCES 2000 FOURTH QUARTER AND FULL YEAR EARNINGS COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ: HBAN; www.huntington.com) today reported fourth quarter earnings of $76.2 million, or $.30 per share, compared with earnings of $107.3 million, or $.42 per share a year ago (excluding the fourth quarter 1999 gain from the sale of its credit card portfolio and special charges). Return on average assets (ROA) was 1.06% and return on average equity (ROE) was 12.89% for the quarter versus 1.47% and 20.20% on an operating basis in the year-ago quarter. Net income for the year ended December 31, 2000, totaled $328.4 million, or $1.32 per share, compared with $422.1 million, or $1.65 per share, in 1999. Excluding the impact of the third quarter $32.5 million after-tax leasing charge and the two non-recurring items in the prior year, operating earnings were $360.9 million, or $1.45 per share, in 2000 and $414.4 million, or $1.62 per share, in 1999. On this basis, ROA and ROE were 1.26% and 15.84% versus 1.44% and 19.31% in the prior year. "The past year was a difficult one for Huntington, particularly following the record earnings in 1999," said Frank Wobst, chairman and chief executive officer of Huntington Bancshares Incorporated. "The company's net interest margin was under significant pressure from rising market interest rates, a flat yield curve, and a fiercely competitive market for customer deposits. The higher interest rate environment also contributed to a softening in our mortgage banking business." (more) 2 For comparative purposes versus prior periods, all loan growth information in the following paragraph has been adjusted for the impact of the Empire Bank acquisition as well as securitization activities, asset sales, and the vehicle lease residual write-downs. Total managed loans increased at an annualized rate of 11% on a linked quarter basis and 9% versus the fourth quarter of 1999. Growth in the consumer portfolio was particularly strong at 16% from the third quarter and 14% compared with the same period last year, with the largest increases in home equity lending and automobile financing. Commercial loans were up 6% on a linked quarter annualized basis and up 3% from a year ago. Net interest income totaled $233.1 million for the quarter, down slightly from $235.9 million in the third quarter, reflecting a decline in the net interest margin from 3.74% to 3.70% and flat earning assets. Net interest income for the year was $942.4 million, down from $1,041.8 million in 1999, reflecting a decline in the net interest margin from 4.11% to 3.73%. The decline was caused by a 67 basis point increase in core deposit costs versus a 34 basis point increase in earning asset yields. Earning assets were flat in 2000, reflecting $1.4 billion of loan securitization activity during the year. Non-interest income for the quarter was $130.5 million, up from $121.7 million in the preceding three months. Excluding securities gains of $.8 million in the fourth quarter and $11.4 million in the third quarter, non-interest income increased $19.4 million, reflecting income from securitizations and broad-based increases from other areas. Non-interest expense totaled $223.9 million in the fourth quarter, an increase of $10.3 million from the previous three months, excluding the aforementioned auto leasing charge. There were three major components of the increase: a $5.4 million increase in operational losses, a $2.0 million seasonal increase in marketing expenses, and a $2.1 million year-end increase in professional services costs. Increases in other operating expense categories were offset by reduced incentive compensation expenses. Regarding credit quality, reported net charge-offs, as a percent of average loans, totaled .50% in the recent three months, versus .46% in the previous quarter. For the full year, net charge-offs were .40%, unchanged from 1999. Non-performing assets increased $16.9 million from the third quarter to $105.4 million, representing .51% of total loans and other real estate at (more) 3 year-end. At year-end, the allowance for loan losses was 1.45% of total loans, unchanged from the prior quarter and year. Capital ratios remain healthy. The equity to assets ratio increased from 7.52% at the end of 1999 to 8.27% at the end of 2000. This improvement was driven by a more efficient balance sheet, reflecting loan securitizations and sales of lower-yielding investment securities during the year. Huntington's capital ratios continue to exceed regulatory requirements for a "well-capitalized" institution. A conference call to discuss fourth quarter and full year results will be held today at 2:00 p.m. Eastern and will be available via a live Internet Webcast at www.streetfusion.com. The slides for the conference call, along with management's comments, will be filed with the Securities and Exchange Commission on Form 8-K. A version of this press release containing supplemental tables is available via PR Newswire's Fax-on-Demand system. Please call (800) 753-0352 and enter extension 756. The financial tables are also included in the 8-K mentioned above as well as at www.huntington-ir.com. For faxed copies of all other news releases, please call (800) 758-5804 extension 423276. Huntington Bancshares Incorporated is a $29 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has more than 135 years of serving the financial needs of its customers. Huntington provides innovative products and services through over 600 offices in Florida, Indiana, Kentucky, Maryland, Michigan, New Jersey, Ohio and West Virginia. International banking services are made available through the headquarters office in Columbus and additional offices located in the Cayman Islands and Hong Kong. Huntington also offers products and services online at www.huntington.com; through its technologically advanced, 24-hour telephone bank, and through its network of more than 1,400 ATMs. FORWARD-LOOKING STATEMENT DISCLOSURE: This press release contains certain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and (more) 4 uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the successful integration of acquired businesses; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this news release are based on information available at the time of the release. Huntington assumes no obligation to update any forward-looking statement. ### 5 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED COMPARATIVE SUMMARY (in thousands, except per share amounts) - ----------------------------------------------------------------------------------------------------------------------- CONSOLIDATED RESULTS OF OPERATIONS - -----------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, --------------------- CHANGE ------------------------- CHANGE 2000 1999 % 2000 1999 % -------- -------- ------ ---------- ---------- ------ Interest Income $537,661 $515,516 4.3% $2,108,505 $2,026,002 4.1% Interest Expense 304,595 262,854 15.9 1,166,073 984,240 18.5 -------- -------- ---------- ---------- Net Interest Income 233,066 252,662 (7.8) 942,432 1,041,762 (9.5) Provision for Loan Losses 32,548 20,040 62.4 90,479 88,447 2.3 Non-Interest Income 129,704 114,338 13.4 456,458 452,073 1.0 Securities Gains 845 7,905 N.M. 37,101 12,972 N.M. Gains on Sales of Credit Cards -- 108,530 N.M. -- 108,530 N.M. Non-Interest Expense 223,850 204,895 9.3 835,617 815,328 2.5 Special Charges -- 96,791 N.M. 50,000 96,791 (48.3) Provision for Income Taxes 30,995 46,769 (33.7) 131,449 192,697 (31.8) -------- -------- ---------- ---------- NET INCOME $ 76,222 $114,940 (33.7)% $ 328,446 $ 422,074 (22.2)% ======== ======== ===== ========== ========== OPERATING EARNINGS (1) - ---------------------- Net Income $ 76,222 $107,310 (29.0)% $ 360,946 $ 414,444 (12.9)% ======== ======== ===== ========== ========== Net Income per Common Share (2) Diluted $ 0.30 $ 0.42 (28.6)% $ 1.45 $ 1.62 (10.5)% Diluted--Cash Basis (3) $ 0.34 $ 0.45 (24.4)% $ 1.57 $ 1.74 (9.8)% Return On: Average Total Assets 1.06% 1.47% 1.26% 1.44% Average Shareholders' Equity 12.89% 20.20% 15.84% 19.31% PER COMMON SHARE AMOUNTS - REPORTED (2) - --------------------------------------- Net Income per Common Share--Diluted $ 0.30 $ 0.45 (33.3)% $ 1.32 $ 1.65 (20.3)% Cash Dividends Declared $ 0.20 $ 0.18 11.1% $ 0.76 $ 0.68 11.8% Shareholders' Equity (period end) $ 9.43 $ 8.67 8.8% $ 9.43 $ 8.67 8.8% AVERAGE COMMON SHARES - DILUTED (2) 251,401 254,183 (1.1)% 249,570 255,647 (2.4)%
- ----------------------------------------------------------------------------------------------------------------------- KEY PERFORMANCE RATIOS - -----------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, --------------------- ------------------------- 2000 1999 2000 1999 -------- -------- ---------- ---------- Return On: Average Total Assets 1.06% 1.57% 1.14% 1.47% Average Shareholders' Equity 12.89% 21.64% 14.41% 19.66% Efficiency Ratio 58.48% 52.97% 56.19% 51.76% Net Interest Margin 3.70% 3.94% 3.73% 4.11% Average Equity/Average Assets 8.21% 7.27% 7.94% 7.47%
- ----------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CONDITION DATA - -----------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ------------------------- CHANGE ------------------------- CHANGE 2000 1999 % 2000 1999 % -------- -------- ------ ---------- ---------- ------ Average Total Loans $20,489,983 $20,513,235 (0.1)% $20,668,581 $20,088,542 2.9% Average Total Deposits $19,511,274 $19,422,791 0.5 $19,689,504 $19,207,347 2.5 Average Total Assets $28,654,483 $28,997,211 (1.2) $28,720,508 $28,739,450 (0.1) Average Shareholders' Equity $ 2,352,612 $ 2,107,526 11.6 $ 2,279,230 $ 2,146,735 6.2
- ----------------------------------------------------------------------------------------------------------------------- REGULATORY CAPITAL RATIOS (4) AND ASSET QUALITY - -----------------------------------------------------------------------------------------------------------------------
AT DECEMBER 31, AT DECEMBER 31, -------------------- -------------------- 2000 1999 2000 1999 -------- ------- -------- ------- Tier I Risk-Based Capital 7.20% 7.52% Non-performing loans (NPLs) $93,984 $83,070 Total non-performing assets (NPAs) $105,397 $98,241 Total Risk-Based Capital 10.46% 10.72% Allowance for loan losses/total loans 1.45% 1.45% Allowance for loan losses/NPLs 316.95% 360.31% Tier I Leverage 6.93% 6.72% Allowance for loan losses and other real estate/NPAs 279.16% 299.85% - -----------------------------------------------------------------------------------------------------------------------
(1) Reported results, as adjusted, exclude the impact of gains from sale of credit card portfolios and special charges, net of related taxes. (2) Adjusted for stock splits and stock dividends, as applicable. (3) Tangible or "Cash Basis" net income excludes amortization of goodwill and other intangibles, net of income taxes. (4) Estimated. N.M. - Not Meaningful EX-99.2 3 l86009aex99-2.txt EXHIBIT 99.2 1 Exhibit 99.2 HUNTINGTON BANCSHARES INCORPORATED Fourth Quarter 2000 Earnings Analysis January 18, 2001 Laurie Counsel, Director of Investor Relations o Good afternoon to our conference call participants. Thanks for taking the time today to join us. o Here to discuss today's earlier management announcement as well as fourth quarter 2000 earnings are: Frank Wobst, Chairman and Chief Executive Officer Tom Hoaglin, Chief Executive Officer and President Elect, and Mike McMennamin, Vice Chairman and Chief Financial Officer o This call is being recorded and will be available as a rebroadcast starting today at 5 p.m. through January 25th at 5 p.m. and is also available on the Internet for two weeks. Please call the Investor Relations department at 614-480-5676 for more information to access these recordings or if you have not yet received the news release and presentation for today's call. SLIDE 2 o Today's conference call 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. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the successful integration of acquired businesses; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this conference call and discussion, including related questions and answers, are 2 based on information available at the time of the call. Huntington assumes no obligation to update any forward-looking statement. SLIDE 3 o Slide 3 shows the speakers for today's presentation o Let me now introduce Huntington's Chairman and Chief Executive Officer, Frank Wobst. FRANK WOBST o Good afternoon, I am Frank Wobst, Chairman & Chief Executive Officer of Huntington Bancshares Incorporated. In a couple of minutes, Mike McMennamin is going to walk you through the fourth quarter financials. First, however, I will share with you today what we think is a very exciting development at Huntington. o Yesterday, Tom Hoaglin was elected as President & Chief Executive Officer of both Huntington Bancshares Incorporated and The Huntington National Bank. Tom also was elected to both Boards. Tom has accepted these positions effective February 15, 2001. o When Tom assumes his new duties in February, I will continue as Chairman of the Board of Huntington Bancshares Incorporated and The Huntington National Bank. Pete Geier, who previously was President and Chief Operating Officer and a member of both Boards, will remain with the Huntington until the end of February to assist us in the transition and will then leave the Huntington to pursue other opportunities. o Tom has 27 years of banking experience. He started his career with Bank One as a banking officer in Columbus in 1973 and was responsible for a number of staff and line functions at that company, including president and chief operating officer of Bank One Texas; and, chairman and chief executive officer of Bank One Ohio Corporation which included affiliated banks in Ohio, West Virginia, and Michigan. Tom served as chairman of Project One, transforming Bank One into a standardized consolidated environment and was a co-leader of the implementation team for the First Chicago and Banc One Corporation merger. He served as chairman and chief 3 executive officer of Bank One Services Corporation as well as executive vice president, Private Banking, for Banc One Corporation in Chicago. Tom left Banc One Corporation in 1999 and became vice chairman of AmSouth Bancorporation, Birmingham, Alabama in February 2000. o We are delighted Tom has decided to join the Huntington. He brings us a wealth of experience and is already familiar with our markets, products and many of our customers. We are looking forward to his leadership. o Tom, with that introduction, we would like to have you make a few comments regarding your background and observations about the Huntington. TOM HOAGLIN o Thanks very much. It is wonderful to have this opportunity and it is nice to be with all of you today. I am sure that I have met some of you in prior days from Bank One and AmSouth; others I'll be meeting for the first time. o I would like to say a further word about my background. I do think that both Bank One and AmSouth have prepared me well for this challenge. As Frank indicated, I went to AmSouth in February of this past year. You would know that AmSouth is a similar institution to Huntington in the sense of dealing with the same kind of issues and challenges, just a different geography. I would like to say a word about why I left AmSouth. My tenure there was only a bit more than six months. Let me just say that I have a very high regard for Dowd Ritter and his management team there. I enjoyed my experience there, but Dowd and I simply agreed the fit was not as we had originally envisioned or hoped, and that's the circumstance under which I left last summer. o Obviously I haven't started yet but you can expect that I will begin immediately to review thoroughly and intensively our business plans, strategies, geographic coverage, financials, and the leadership team to make sure that I know where we 4 stand and that we have the right plans in place and the right team to implement them. I think that Mike McMennamin can attest to my style of focusing intensely on the financials and I expect to bring that orientation to the Huntington. o I have no doubt that we will make some changes. It is premature, as you can appreciate, to specify what they will be. I can say, however, that I have been impressed with some of the leadership team I have met and the energy they are bringing to the task of improving our performance. I have met with many of the team members a couple of times already and suffice to say that I am fully aware and fully understand that we must focus on revenue growth first and foremost and also on controlling noninterest expenses and maintaining strong credit quality. I am looking forward to getting started. FRANK WOBST o Thanks Tom. We are delighted to have you here and look forward to working with you. o Now let me turn the program over to Mike McMennamin, our Vice Chairman and Chief Financial Officer, who is going to talk about the fourth quarter and 2000 full year financial results. Mike... MIKE MCMENNAMIN Thanks, Frank. o As you recall, we previously provided earnings guidance for the 4th quarter of .31 - .33 per share. o Our earnings for the quarter came in @ 30 cents per share, one penny below the low end of this range. The primary reasons for the shortfall were: 1. The net interest margin, which had expanded by 2 bp in the third quarter declined from 3.74% to 3.70% in the 4th Q. We had expected the margin to be flat. 5 2. Stronger loan growth during the quarter than had been forecasted resulted in higher loan loss provision expense. 3. Non-interest expense increased $10.3 million for the quarter, a larger increase than had been forecasted and included unusually high operational losses, seasonally high marketing expenses and higher than expected year-end professional services costs. 4. Higher securitization income during the quarter, resulting from the decline in short term interest rates, partially offset the above variances. o The sum of these factors reduced earnings per share by 2 cents for the quarter. SLIDE 4 o Significant drivers of performance versus the third quarter were: 1. 11% loan growth 2. 4% retail deposit growth 3. 4 bp decline in net interest margin 4. 4 bp increase in reported charge-offs 5. $10.3MM increase in non-interest expenses SLIDE 5 o As I mentioned, earnings per share were 30 for the quarter, vs. 33 in the third quarter, which included 3 cents of security gains. o The tangible equity to assets ratio increased during the quarter to 5.87%, reflecting a more efficient balance sheet, following the sale of lower-yielding investment securities and additional loans securitized during the quarter. Significant progress has 6 been made in the last two years in strengthening the company's capital structure. The tangible equity to assets ratio has improved from 5.15% in December 1998, following the acquisition of the Barnett branches in Florida, to the current level of 5.87%. SLIDE 6 o The following managed loan growth information has been adjusted for the impact of acquisitions, securitization activity and asset sales. o Managed loan growth continues to be a good story, with growth accelerating slightly during the quarter to an 11% growth rate vs. 7% in the 3rd quarter. o Commercial loan activity picked up during the quarter, growing at a 6% rate vs. an 8% decline in the 3rd quarter. Recent growth in this area has been split evenly between growth with existing and new customers. o Commercial real estate volumes also were stronger in the 4th quarter, growing at a 7% rate vs. a 2% rate in the previous quarter. Our activity here continues to be with leading developers within our footprint. We have recently put real estate lending teams in Florida, Michigan, and Indiana - which is starting to drive incremental business. o Home equity loans continued to exhibit a strong growth pattern, growing at a 24% rate for the 3rd and 4th quarters and also vs. the year ago quarter. We do expect to see lower growth rates in 2001, reflecting the expectations of strong demand for 1st mortgage refinancing. o Indirect auto lending and lease activity slowed to a 17% growth rate from 19% in the 3rd quarter, reflecting both seasonal patterns and a significant slowdown in auto sales late in the quarter. Based on current industry projections and our recent loan application volume, we expect the slower growth to continue in the 1st quarter. 7 SLIDE 7 o Earnings for the quarter totaled $76.2 million, vs. $83 million in the 3rd quarter. o Net interest income declined $2.8 million to $233.1 million for the quarter. The net interest margin declined 4 bps to 3.70% while earning assets were flat. The margin decline resulted from two factors: (1) a reduction in demand deposits for the quarter; and (2) customer movement of lower cost deposits to the new retail deposit products. o Interest rates have declined sharply over the last three months, with intermediate rates down over 100 bp from October. We have been and are currently positioned to benefit from declining rates. A 100 bp gradual decline in interest rates over the next year from mid-December interest rate levels would benefit net interest income by 1.3%. Since mid-December, rates have already declined 25 - 50 bp. Our interest rate risk position is basically unchanged from +1.4% at the end of the 3rd quarter. o As you may recall, the primary reason we developed the new retail deposit products in the second quarter of 2000 was because we did not have a competitive offering for customers. The new products were developed to provide a better value proposition to the customer while still providing an attractive return to Huntington. While this internal disintermediation of retail deposits continues to negatively impact the net interest margin, we are encouraged by the reduced volume of deposits being impacted by this activity. In addition, recent declines in market interest rates will reduce the impact of further disintermediation. o Total retail deposits increased during the 4th quarter at an annual 4% rate, the best quarter of the year. To put that growth in perspective, the increase from the 4th quarter of last year was only 1.3%. Huntington and the banking industry have been struggling to increase retail deposits in the face of intense market competition from banks and other financial service institutions. 8 o One of the challenges in growing retail deposits is stemming the attrition rate of existing customers. The monthly attrition rate nationally for households is estimated to be approximately 1% per month. Huntington's attrition rate was running in excess of 1% per month in 1999 and through the 1st quarter of last year. In the last six months of the year, that attrition rate has improved, averaging .56% per month. While better management of customer and household attrition is only one element of a successful deposit growth strategy, we are encouraged by the recent trend. o Loan loss provision expense increased $6.1 million for the quarter, of which $4.4 million is related to loan growth. The remaining $1.7 million resulted from higher charge-offs of 50 bp vs. 46 bp in the prior quarter. Though higher than earlier periods, charge-offs were in line with management's expectations. SLIDE 8 o Non-interest income, excluding security gains, increased $19.4 million from the prior quarter. Income from securitization activity (included in Other Non-Interest Income) was $9.4 million higher, reflecting (1) the increased capitalized value of the excess spread resulting from the decline in short-term interest rates and (2) higher servicing income from the larger volume of securitized loans. o The increase in Brokerage and insurance income was entirely related to the acquisition of the J. Rolfe Davis property & casualty insurance agency in Florida in September. Reflecting the volatility of the financial markets in the fourth quarter, sales of mutual funds and annuities declined 8% from the prior quarter. o Service charge revenue on deposit accounts declined $0.5 million in the quarter, reflecting lower demand deposit volumes. o The growth in trust income resulted from price increases implemented in the investment management business. 9 SLIDE 9 o Non-interest expense increased $10.3 million from the prior quarter. Personnel costs declined $3.6 million as a result of year-end adjustments to incentive accruals. o The $2.0 million increase in marketing expense was primarily seasonal in nature as the more significant advertising campaigns were in the latter part of the year. Professional service costs were also up in large part due to timing. o Operational losses were unusually high during the quarter, increasing $5.4 million. The losses were primarily related to a cleanup of account reconciliations. o The magnitude of the recent quarter's increase in expenses is unacceptable to management and we do not expect this growth rate to continue. SLIDE 10 o Turning to credit quality. o Non-performing assets increased 19% during the quarter to $105 million, representing .51% of loans and other real estate owned versus .44% at the end of the third quarter. o This chart compares our NPA performance with a group of peer banks we track our results against. The banks in the peer group are AmSouth, BBT, Comerica, Fifth Third, Firstar, Key Corp., National City, Old Kent, Regions, and US Bancorp. Our numbers track very well versus this group of banks through the 3rd quarter, with our 3rd quarter NPA ratio at .44% vs. the group at .61%. We expect further increases in NPA over the first half of 2001 as the softening economic picture unfolds and takes its toll on our corporate customers. We feel we will weather this storm at least as well as if not better than the industry, however. 10 SLIDE 11 o Charge-offs on total reported loans increased from .46% to .50% during the quarter. This chart compares our charge-offs with those of the same peer group. It also highlights Huntington's comparatively low charge-offs from the 4th quarter of 1999 through the 2nd quarter of 2000. SLIDE 12 o This slide breaks out our total reported loan charge-off number. Though commercial losses did increase 5 bps, they remain at very modest levels from a historical perspective. Consumer losses increased 7 bp to 79 bp, detail of will be provided on the next chart. Commercial real estate losses were almost non-existent. SLIDE 13 o Charge-offs increased during the quarter on all consumer loan products, with the exception of home equity credit lines. Charge-offs in the on-books indirect auto portfolio increased from 1.33% to 1.46% during the quarter. On the total managed portfolio, i.e., including the $1.4 billion of securitized auto loans, losses increased from 1.09% to 1.23%. A significant portion of the higher charge-offs we are experiencing are from the loans originated during the 4th quarter of 1999 and the 1st quarter of 2000. Loss rates on more recent vintages are more in line with historical norms. o This concludes our comments on the 4th quarter. GUIDANCE FOR 1ST Q 2001 o At this time, our estimate of earnings per share for the first quarter of 2001 is 26 - 28 cents, based on our current assumptions for the key earnings drivers. 11 o We are withdrawing the earnings guidance for 2001 that was provided in September last year and confirmed during our 3rd quarter conference call on October 17. That guidance that was provided included estimates based on the information available to us at that time. o Subsequently, a number of changes have occurred, both in the economy and banking system, in general, and at Huntington, specifically. Clearly the most significant change is yesterday's election of Tom Hoaglin as President and Chief Executive Officer. o As Tom indicated, he will be devoting his early weeks at the Huntington to reviewing business strategies, plans, and budgets as he familiarizes himself with the organization. We think it is imperative that Tom has sufficient time to develop perspective and provide his input on the future strategic direction of the Huntington before we release further earnings guidance. o As such, we will provide earnings guidance when we release first quarter earnings results in April. Thank you. Frank, Tom, or I would be happy to take any questions now. EX-99.3 4 l86009aex99-3.txt EXHIBIT 99.3 1 Exhibit 99.3 HUNTINGTON BANCSHARES INCORPORATED [LOGO] FOURTH QUARTER 2000 EARNINGS REVIEW JANUARY 18, 2001 2 PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD LOOKING STATEMENT DISCLOSURE - -------------------------------------------------------------------------------- Today's conference call 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. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: - - Changes in economic conditions - - Movements in interest rates - - Competitive pressures on product pricing and services - - Success and timing of business strategies - - The successful integration of acquired businesses - - The nature, extent and timing of governmental actions and reforms - - Extended disruption of vital infrastructure [LOGO] ALL FORWARD-LOOKING STATEMENTS INCLUDED IN THIS CONFERENCE CALL AND DISCUSSION, INCLUDED RELATED QUESTIONS AND ANSWERS, ARE BASED ON INFORMATION AVAILABLE AT THE TIME OF THE CALL. HUNTINGTON ASSUMES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENT. 2 3 TODAY'S SPEAKERS - -------------------------------------------------------------------------------- FRANK WOBST CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOM HOAGLIN CHIEF EXECUTIVE OFFICER AND PRESIDENT ELECT MICHAEL MCMENNAMIN VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER 3 4 FOURTH QUARTER OVERVIEW - -------------------------------------------------------------------------------- - - 11% LOAN GROWTH - - 4% RETAIL DEPOSIT GROWTH - - NIM 3.74% (yield) 3.70% - - CHARGEOFFS 46 b.p. (yield) 50 b.p. - - NIE + $10.3MM 4 5 KEY PERFORMANCE INDICATORS - -------------------------------------------------------------------------------- 4Q00 3Q00* ---- ----- EPS $ 0.30 $ 0.33 ROA 1.06% 1.15% ROE 12.89% 14.04% NIM % 3.70% 3.74% EFFICIENCY RATIO 58.48% 58.38% TANGIBLE EQUITY/ASSETS 5.87% 5.73% *EXCLUDES SPECIAL CHARGE 5 6 MANAGED LOAN GROWTH AVERAGE BALANCE ($ BILLIONS) ANNUALIZED GROWTH ----------------- FROM ---- 4Q00 3Q00 4Q99 ---- ---- ---- COMMERCIAL $ 6.5 6% 3% COMMERCIAL REAL ESTATE 3.5 7 4 AUTO LOAN / LEASE 7.0 17 14 CONSUMER 3.9 18 15 RESIDENTIAL REAL ESTATE .9 10 9 ----- TOTAL MANAGED LOANS $21.8 11% 9% ===== 6 7 INCOME STATEMENT ($ IN MILLIONS) 4Q00 3Q00* ---- ----- NET INTEREST INCOME $233.1 $235.9 PROVISION 32.5 26.4 NON-INTEREST INCOME 129.7 110.3 SECURITY GAINS 0.8 11.3 NON-INTEREST EXPENSE 223.9 213.6 ------ ------ PRE-TAX INCOME $107.2 $117.5 ------ ------ NET INCOME $ 76.2 $ 83.0 ====== ====== *EXCLUDES SPECIAL CHARGE 7 8 NON-INTEREST INCOME ($ IN MILLIONS) BETTER OR (WORSE) ----------------- 4Q00 VS. 3Q00 ---- -------- SERVICE CHARGES $ 39.2 $ (0.5) BROKERAGE/INSURANCE 17.1 1.5 TRUST INCOME 14.4 1.2 ELECTRONIC BANKING 11.5 0.3 MORTGAGE BANKING 12.0 2.6 OTHER 35.5 14.3 ------ ------ TOTAL NON-INTEREST INCOME $129.7 $ 19.4 ====== ====== 8 9 NON-INTEREST EXPENSE ($ IN MILLIONS) BETTER OR (WORSE) ----------------- 4Q00 VS. 3Q00 ---- -------- PERSONNEL & RELATED COSTS $105.8 $ 3.6 OCCUPANCY/EQUIPMENT 39.4 (0.9) OUTSIDE SERVICES/SUPPLIES 21.4 (1.0) AMORTIZATION OF INTANGIBLES 10.5 (0.2) MARKETING 10.6 (2.0) OTHER 36.2 (9.8) ------ ------ TOTAL NON-INTEREST EXPENSE $223.9 $(10.3) ====== ====== 9 10 NPAs/TOTAL LOANS + OREO
1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 HUNTINGTON 0.48 0.46 0.47 0.47 0.45 0.46 0.44 0.51 PEER AVERAGE 0.55 0.52 0.54 0.55 0.55 0.59 0.61
PEER GROUP: ASO, BBT, CMA, FITB, FSR, KEY, NCC, OK, RGBK, USB 10 11 NCO/AVERAGE LOANS
1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 HUNTINGTON 0.51 0.38 0.39 0.32 0.35 0.3 0.46 0.5 PEER AVERAGE 0.4 0.4 0.39 0.47 0.42 0.37 0.45
PEER GROUP: ASO, BBT, CMA, FITB, FSR, KEY, NCC, OK, RGBK, USB 11 12 NET CHARGE-OFFS SUMMARY - -------------------------------------------------------------------------------- 4Q00 3Q00 4Q99 ---- ---- ---- COMMERCIAL 0.29% 0.24% 0.10% CONSUMER 0.79 0.72 0.52 COMMERCIAL R/E 0.01 0.07 0.07 TOTAL 0.50 0.46 0.32 12 13 CONSUMER CHARGE-OFFS - -------------------------------------------------------------------------------- 4Q00 3Q00 4Q99 ---- ---- ---- INDIRECT 1.46% 1.33% .93% VEHICLE LEASE .87 .80 .46 INSTALLMENT .62 .54 .49 HOME EQUITY LINES .28 .33 .17 RESIDENTIAL R/E .15 .05 .09 13 14 - -------------------------------------------------------------------------------- [LOGO] HUNTINGTON BANKING. INVESTMENTS. INSURANCE. 14 15 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED COMPARATIVE SUMMARY (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) - --------------------------------------------------------------------------------------------------------------------- CONSOLIDATED RESULTS OF OPERATIONS - ---------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ----------------------- CHANGE ----------------------- CHANGE 2000 1999 % 2000 1999 % ---------- ---------- ------ ---------- ---------- ------ Interest Income $ 537,661 $ 515,516 4.3% $2,108,505 $2,026,002 4.1 % Interest Expense 304,595 262,854 15.9 1,166,073 984,240 18.5 ---------- -------- ---------- ---------- Net Interest Income 233,066 252,662 (7.8) 942,432 1,041,762 (9.5) Provision for Loan Losses 32,548 20,040 62.4 90,479 88,447 2.3 Non-Interest Income 129,704 114,338 13.4 456,458 452,073 1.0 Securities Gains 845 7,905 N.M. 37,101 12,972 N.M. Gains on Sales of Credit Cards -- 108,530 N.M. -- 108,530 N.M. Non-Interest Expense 223,850 204,895 9.3 835,617 815,328 2.5 Special Charges -- 96,791 N.M. 50,000 96,791 (48.3) Provision for Income Taxes 30,995 46,769 (33.7) 131,449 192,697 (31.8) ---------- -------- ---------- ---------- NET INCOME $ 76,222 $ 114,940 (33.7) % $ 328,446 $ 422,074 (22.2)% ========== ======== ===== ========== ========== OPERATING EARNINGS (1) - ---------------------- Net Income $ 76,222 $ 107,310 (29.0) % $ 360,946 $ 414,444 (12.9)% ========== ======== ====== ========== ========== Net Income per Common Share (2) Diluted $ 0.30 $ 0.42 (28.6) % $ 1.45 $ 1.62 (10.5)% Diluted--Cash Basis (3) $ 0.34 $ 0.45 (24.4) % $ 1.57 $ 1.74 (9.8)% Return On: Average Total Assets 1.06% 1.47% 1.26% 1.44% Average Shareholders' Equity 12.89% 20.20% 15.84% 19.31% PER COMMON SHARE AMOUNTS - REPORTED (2) - --------------------------------------- Net Income per Common Share--Diluted $ 0.30 $ 0.45 (33.3) % $ 1.32 $ 1.65 (20.3)% Cash Dividends Declared $ 0.20 $ 0.18 11.1% $ 0.76 $ 0.68 11.8% Shareholders' Equity (period end) $ 9.43 $ 8.67 8.8% $ 9.43 $ 8.67 8.8% AVERAGE COMMON SHARES - DILUTED (2) 251,401 254,183 (1.1) % 249,570 255,647 (2.4)%
- --------------------------------------------------------------------------------------------------------------------- KEY PERFORMANCE RATIOS - ---------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ------------------------- ------------------------- 2000 1999 2000 1999 ------- ------- ------- ------- Return On: Average Total Assets 1.06% 1.57% 1.14% 1.47% Average Shareholders' Equity 12.89% 21.64% 14.41% 19.66% Efficiency Ratio 58.48% 52.97% 56.19% 51.76% Net Interest Margin 3.70% 3.94% 3.73% 4.11% Average Equity/Average Assets 8.21% 7.27% 7.94% 7.47%
- --------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CONDITION DATA - ---------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ------------------------- CHANGE ------------------------ CHANGE 2000 1999 % 2000 1999 % ----------- ----------- ------ ----------- ----------- ------ Average Total Loans $20,489,983 $20,513,235 (0.1)% $20,668,581 $20,088,542 2.9% Average Total Deposits $19,511,274 $19,422,791 0.5 $19,689,504 $19,207,347 2.5 Average Total Assets $28,654,483 $28,997,211 (1.2) $28,720,508 $28,739,450 (0.1) Average Shareholders' Equity $ 2,352,612 $ 2,107,526 11.6 $ 2,279,230 $ 2,146,735 6.2
- ------------------------------------------------------------------------------------------------------------------------- REGULATORY CAPITAL RATIOS (4) AND ASSET QUALITY - -------------------------------------------------------------------------------------------------------------------------
AT DECEMBER 31, AT DECEMBER 31, ------------------- ---------------------- 2000 1999 2000 1999 ------- ------- -------- ------- Tier I Risk-Based Capital 7.20% 7.52% Non-performing loans (NPLs) $ 93,984 $83,070 Total non-performing assets (NPAs) $105,397 $98,241 Total Risk-Based Capital 10.46% 10.72% Allowance for loan losses/total loans 1.45% 1.45% Allowance for loan losses/NPLs 316.95% 360.31% Tier I Leverage 6.93% 6.72% Allowance for loan losses and other real estate/NPAs 279.16% 299.85% - -------------------------------------------------------------------------------------------------------------------------
(1) Reported results, as adjusted, exclude the impact of gains from sale of credit card portfolios and special charges, net of related taxes. (2) Adjusted for stock splits and stock dividends, as applicable. (3) Tangible or "Cash Basis" net income excludes amortization of goodwill and other intangibles, net of income taxes. N.M. - Not Meaningful (4) Estimated. 16 HUNTINGTON BANCSHARES INCORPORATED QUARTERLY FINANCIAL REVIEW DECEMBER, 2000 Table of Contents -----------------
Consolidated Financial Highlights 1 Consolidated Balance Sheets 2 Consolidated Statements of Income 3 Loan Portfolio and Deposit Composition 4 Analysis of Non-Interest Income and Expense For the Twelve Months Ended December 31, 2000, 1999 and 1998 5 Net Interest Margin Analysis (Annual) 6-8 Selected Annual Income Statement Data 9 Net Interest Margin Analysis (Quarterly) 10-11 Selected Quarterly Income Statement Data 12 Analysis of Non-Interest Income and Expense For the Three and Twelve Months Ended December 31, 2000 and 1999 13 Key Ratios and Statistics (Quarterly) 14 Loan Loss Experience, Non-Performing Assets and Past Due Loans (Annual) 15 Loan Loss Experience, Non-Performing Assets and Past Due Loans (Quarterly) 16
17 P.1 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED DECEMBER 31, 2000 1999 % CHANGE - ---------------------------------------------- ----------- ----------- ----------- NET INCOME (1) ............................... $ 76,222 $ 107,310 (29.0)% PER COMMON SHARE AMOUNTS (2) Net income -- Diluted ................... $ 0.30 $ 0.42 (28.6) Cash dividends declared ................. $ 0.20 $ 0.18 11.1 AVERAGE COMMON SHARES OUTSTANDING--DILUTED (2) 251,401 254,183 (1.1) KEY RATIOS Return on: Average total assets .................... 1.06% 1.47% (27.9) Average shareholders' equity ............ 12.89% 20.20% (36.2) Efficiency ratio ............................. 58.48% 52.97% 10.4 Average equity/average assets ................ 8.21% 7.27% 12.9 Net interest margin .......................... 3.70% 3.94% (6.1) TANGIBLE OR "CASH BASIS" RESULTS (3) Net income per share -- Diluted (2) .......... $ 0.34 $ 0.45 (24.4) Return on: Average total assets .................... 1.21% 1.61% (24.8) Average shareholders' equity ............ 21.14% 31.59% (33.1)% TWELVE MONTHS ENDED DECEMBER 31, 2000 1999 % CHANGE - ---------------------------------------------- ----------- ----------- ----------- NET INCOME (1) ............................... $ 360,946 $ 414,444 (12.9)% PER COMMON SHARE AMOUNTS (2) Net income -- Diluted ................... $ 1.45 $ 1.62 (10.5) Cash dividends declared ................. $ 0.76 $ 0.68 11.8 AVERAGE COMMON SHARES OUTSTANDING--DILUTED (2) 249,570 255,647 (2.4) KEY RATIOS Return on: Average total assets .................... 1.26% 1.44% (12.5) Average shareholders' equity ............ 15.84% 19.31% (18.0) Efficiency ratio ............................. 56.19% 51.76% 8.6 Average equity/average assets ................ 7.94% 7.47% 6.3 Net interest margin .......................... 3.73% 4.11% (9.2) TANGIBLE OR "CASH BASIS" RESULTS (3) Net income per share -- Diluted (2) .......... $ 1.57 $ 1.74 (9.8) Return on: Average total assets .................... 1.40% 1.58% (11.4) Average shareholders' equity ............ 24.97% 30.30% (17.6)%
(1) Presented on an "operating" basis (excludes gains from sale of credit card portfolios and special charges, net of related taxes). (2) Adjusted for stock splits and stock dividends, as applicable. (3) Tangible or "Cash Basis" net income excludes amortization of goodwill and other intangibles, net of taxes Related asset amounts are also excluded from total assets and shareholders' equity. 18 P.2 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS OF DOLLARS)
DECEMBER 31, DECEMBER 31, 2000 1999 ------------ ------------ ASSETS Cash and due from banks ................................... $ 1,322,700 $ 1,208,004 Interest bearing deposits in banks ........................ 4,970 6,558 Trading account securities ................................ 4,723 7,975 Federal funds sold and securities purchased under resale agreements .................... 133,183 20,877 Mortgages held for sale ................................... 155,104 141,723 Securities available for sale - at fair value ............. 4,090,525 4,870,203 Investment securities - fair value $16,414 and $18,662, respectively ......................................... 16,336 18,765 Total loans (1) ........................................... 20,610,191 20,668,437 Less allowance for loan losses ....................... 297,880 299,309 ------------ ------------ Net loans ................................................. 20,312,311 20,369,128 ------------ ------------ Bank owned life insurance ................................. 804,941 765,399 Premises and equipment .................................... 454,844 438,871 Customers' acceptance liability ........................... 17,366 17,167 Accrued income and other assets ........................... 1,282,374 1,172,283 ------------ ------------ TOTAL ASSETS .............................................. $ 28,599,377 $ 29,036,953 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Total deposits (1) ........................................ $ 19,777,245 $ 19,792,603 Short-term borrowings ..................................... 1,987,759 2,121,989 Bank acceptances outstanding .............................. 17,366 17,167 Medium-term notes ......................................... 2,467,150 3,254,150 Subordinated notes and other long-term debt ............... 870,976 697,677 Company obligated mandatorily redeemable preferred capital securities of subsidiary trusts holding solely the junior subordinated debentures of the parent company 300,000 300,000 Accrued expenses and other liabilities .................... 812,834 671,011 ------------ ------------ Total Liabilities .................................... 26,233,330 26,854,597 ------------ ------------ Shareholders' equity Preferred stock - authorized 6,617,808 shares; none issued or outstanding ...................... -- -- Common stock - without par value; authorized 500,000,000 shares; issued 257,866,255 and 233,844,820 shares, respectively; outstanding 250,859,470 and 228,888,221 shares, respectively ............................ 2,493,645 2,284,956 Less 7,006,765 and 4,956,599 treasury shares, respectively ............................ (129,432) (137,268) Accumulated other comprehensive income ............... (24,520) (94,093) Retained earnings .................................... 26,354 128,761 ------------ ------------ Total Shareholders' Equity ........................... 2,366,047 2,182,356 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................ $ 28,599,377 $ 29,036,953 ============ ============
(1) See page 4 for detail of total loans and total deposits. 19 P.3 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
TWELVE MONTHS ENDED DECEMBER 31, -------------------------------------------------------- 2000 1999 1998 ------------ ------------ ------------ Interest and fee income Loans ........................................ $ 1,808,254 $ 1,693,379 $ 1,641,081 Securities ................................... 284,719 314,061 323,595 Other ........................................ 15,532 18,562 34,688 ------------ ------------ ------------ TOTAL INTEREST INCOME .............. 2,108,505 2,026,002 1,999,364 ------------ ------------ ------------ Interest expense Deposits ..................................... 782,076 639,605 672,433 Short-term borrowings ........................ 113,134 114,289 97,656 Medium-term notes ............................ 189,311 170,061 164,590 Subordinated notes and other long-term debt .. 81,552 60,285 43,592 ------------ ------------ ------------ TOTAL INTEREST EXPENSE ............. 1,166,073 984,240 978,271 ------------ ------------ ------------ NET INTEREST INCOME ................ 942,432 1,041,762 1,021,093 Provision for loan losses ......................... 90,479 88,447 105,242 ------------ ------------ ------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 851,953 953,315 915,851 ------------ ------------ ------------ Total non-interest income (1) ..................... 493,559 573,575 438,200 Total non-interest expense (1) .................... 885,617 912,119 913,929 ------------ ------------ ------------ INCOME BEFORE INCOME TAXES ......... 459,895 614,771 440,122 Provision for income taxes ........................ 131,449 192,697 138,354 ------------ ------------ ------------ NET INCOME ......................... $ 328,446 $ 422,074 $ 301,768 ============ ============ ============ PER COMMON SHARE (2) Net income Basic ................................... $ 1.32 $ 1.66 $ 1.18 Diluted ................................. $ 1.32 $ 1.65 $ 1.17 Cash dividends declared ...................... $ 0.76 $ 0.68 $ 0.62 AVERAGE COMMON SHARES (2) Basic ................................... 248,708,965 253,559,501 255,825,970 Diluted ................................. 249,570,098 255,646,520 258,279,601 ------------ ------------ ------------
(1) See page 5 for detail of non-interest income and non-interest expense. (2) Adjusted for stock splits and stock dividends, as applicable. 20 P.4 HUNTINGTON BANCSHARES INCORPORATED LOANS AND DEPOSITS (IN THOUSANDS OF DOLLARS) LOAN PORTFOLIO COMPOSITION
DECEMBER 31, DECEMBER 31, 2000 1999 ----------- ----------- Commercial (unearned income $1,538 and $2,550) .... $ 6,633,985 $ 6,300,414 Real Estate Construction ................................. 1,318,899 1,236,776 Commercial ................................... 2,253,477 2,151,673 Consumer Loans (unearned income $4,150 and $5,974) .... 6,388,036 6,793,295 Leases (unearned income $515,445 and $410,239) 3,069,210 2,741,735 Residential Mortgage ......................... 946,584 1,444,544 ----------- ----------- TOTAL LOANS ................................ $20,610,191 $20,668,437 =========== ===========
DEPOSIT COMPOSITION
DECEMBER 31, DECEMBER 31, 2000 1999 ----------- ----------- Demand deposits Non-interest bearing ......................... $ 3,480,876 $ 3,418,100 Interest bearing ............................. 4,645,127 4,046,472 Savings deposits .................................. 3,527,796 3,793,423 Certificates of deposit Less than $100,000 ........................... 5,938,486 5,547,266 $100,000 or more ............................. 1,520,547 1,591,092 ----------- ----------- TOTAL CORE DEPOSITS ........................ 19,112,832 18,396,353 ----------- ----------- Other domestic time deposits ...................... 256,106 530,035 Foreign time deposits ............................. 408,307 866,215 ----------- ----------- TOTAL DEPOSITS ............................. $19,777,245 $19,792,603 =========== ===========
21 P.5 HUNTINGTON BANCSHARES INCORPORATED NONINTEREST INCOME AND NONINTEREST EXPENSE FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000, 1999 AND 1998 (IN THOUSANDS OF DOLLARS) ANALYSIS OF NON-INTEREST INCOME
TWELVE MONTHS ENDED PERCENT DECEMBER 31, INCREASE (DECREASE) ------------------------------------ ------------------------ 2000 1999 1998 2000/99 1999/98 -------- -------- -------- -------- -------- Service charges on deposit accounts ....... $160,727 $156,315 $126,403 2.8 % 23.7 % Brokerage and insurance income ............ 61,871 52,076 36,710 18.8 41.9 Trust services ............................ 53,613 52,030 50,754 3.0 2.5 Electronic banking fees ................... 43,883 37,301 29,202 17.6 27.7 Bank Owned Life Insurance income .......... 39,544 37,560 28,712 5.3 30.8 Mortgage banking .......................... 38,025 56,890 60,006 (33.2) (5.2) Credit card fees .......................... 6,985 23,314 21,909 (70.0) 6.4 Other ..................................... 51,810 36,587 45,181 41.6 (19.0) -------- -------- -------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS ... 456,458 452,073 398,877 1.0 13.3 -------- -------- -------- Securities gains .......................... 37,101 12,972 29,793 N.M. (56.5) Gains on sale of credit card portfolios ... -- 108,530 9,530 N.M. N.M. -------- -------- -------- TOTAL NON-INTEREST INCOME ................. $493,559 $573,575 $438,200 (14.0)% 30.9 % ======== ======== ========
ANALYSIS OF NON-INTEREST EXPENSE
TWELVE MONTHS ENDED PERCENT DECEMBER 31, INCREASE (DECREASE) ------------------------------------ ------------------------ 2000 1999 1998 2000/99 1999/98 -------- -------- -------- -------- -------- Personnel and related costs ............... $421,750 $419,901 $428,539 0.4 % (2.0)% Equipment ................................. 78,069 66,666 62,040 17.1 7.5 Net occupancy ............................. 75,882 62,169 54,123 22.1 14.9 Outside data processing and other services 62,011 62,886 74,795 (1.4) (15.9) Amortization of intangible assets ......... 39,207 37,297 25,689 5.1 45.2 Marketing ................................. 34,884 32,506 32,260 7.3 0.8 Telecommunications ........................ 26,225 28,519 29,429 (8.0) (3.1) Legal and other professional services ..... 20,819 21,169 25,160 (1.7) (15.9) Printing and supplies ..................... 19,634 20,227 23,673 (2.9) (14.6) Franchise and other taxes ................. 11,077 14,674 22,103 (24.5) (33.6) Other ..................................... 46,059 49,314 46,118 (6.6) 6.9 -------- -------- -------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES ................................ 835,617 815,328 823,929 2.5 (1.0) -------- -------- -------- Special charges ........................... 50,000 96,791 90,000 N.M. N.M. -------- -------- -------- TOTAL NON-INTEREST EXPENSE ................ $885,617 $912,119 $913,929 (2.9)% (0.2)% ======== ======== ========
N.M. - Not Meaningful. 22 HUNTINGTON BANCSHARES INCORPORATED P.6 - --------------------------------------------------------------------- NET INTEREST MARGIN ANALYSIS (ANNUAL DATA) (IN MILLIONS OF DOLLARS)
FULLY TAX EQUIVALENT BASIS (1) 2000 1999 - ---------------------------------------------- ------------------------------------------ ---------------------------------------- INTEREST INTEREST AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ------------- ------------- --------- ------------ ------------ -------- ASSETS Interest bearing deposits in banks........... $ 6 $ 0.3 5.03% $ 9 $ 0.4 4.04% Trading account securities................... 15 1.1 7.11 13 0.8 5.89 Federal funds sold and securities purchased under resale agreements................... 87 5.5 6.33 22 1.2 5.58 Mortgages held for sale...................... 109 8.7 7.96 232 16.3 7.03 Securities: Taxable................................ 4,316 269.5 6.24 4,885 297.0 6.08 Tax exempt............................. 273 20.8 7.61 297 23.5 7.90 ------------- ------------- ------------ ------------ Total Securities.................. 4,589 290.3 6.33 5,182 320.5 6.18 ------------- ------------- ------------ ------------ Loans: Commercial.............................. 6,446 553.2 8.58 6,128 483.4 7.89 Real Estate Construction....................... 1,270 110.7 8.72 1,064 86.1 8.09 Commercial......................... 2,187 185.7 8.49 2,235 181.6 8.13 Consumer Loans.............................. 6,546 562.4 8.59 6,938 575.7 8.30 Leases............................. 2,924 197.9 6.77 2,299 154.5 6.72 Residential Mortgage............... 1,296 99.6 7.69 1,425 107.0 7.51 ------------- ------------- ------------ ------------ Total Consumer..................... 10,766 859.9 7.97 10,662 837.2 7.85 ------------- ------------- ------------ ------------ Total Loans.................................. 20,669 1,709.5 8.27 20,089 1,588.3 7.91 ------------- ------------- ------------ ------------ Allowance for loan losses/loan fees.......... 303 101.4 301 107.9 ------------- ------------- ------------ ------------ Net loans(2)................................. 20,366 1,810.9 8.76 19,788 1,696.2 8.44 ------------- ------------- ------------ ------------ Total earning assets......................... 25,475 2,116.8 8.31% 25,547 2,035.4 7.97% ------------- ------------- ------------ ------------ Cash and due from banks...................... 1,008 1,039 All other assets............................. 2,541 2,454 ------------- ------------ TOTAL ASSETS................................. $ 28,721 $ 28,739 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Core deposits Non-interest bearing deposits........... $ 3,421 $ 3,497 Interest bearing demand deposits........ 4,291 144.0 3.36% 4,097 106.5 2.60% Savings deposits........................ 3,563 146.4 4.11 3,740 126.0 3.37 Certificates of deposit................. 7,374 425.8 5.78 7,272 375.7 5.17 ------------- ------------- ------------ ------------ Total core deposits................ 18,649 716.2 4.70 18,606 608.2 4.03 ------------- ------------- ------------ ------------ Other domestic time deposits................. 502 31.9 6.35 238 12.8 5.40 Foreign time deposits........................ 539 34.0 6.31 363 18.6 5.14 ------------- ------------- ------------ ------------ Total deposits.......................... 19,690 782.1 4.81 19,207 639.6 4.07 ------------- ------------- ------------ ------------ Short-term borrowings........................ 1,966 113.1 5.75 2,549 114.3 4.48 Medium-term notes............................ 2,894 189.3 6.54 3,122 170.0 5.45 Subordinated notes and other long-term debt, including capital securities.............. 1,124 81.6 7.26 1,003 60.3 6.01 ------------- ------------- ------------ ------------ Total interest bearing liabilities...... 22,253 1,166.1 5.24% 22,384 984.2 4.40% ------------- ------------- ------------ ------------ All other liabilities........................ 768 711 Shareholders' equity......................... 2,279 2,147 ------------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY... $ 28,721 $ 28,739 ============= ============ Net interest rate spread..................... 3.07% 3.57% Impact of non-interest bearing funds on margin................................. 0.66% 0.54% NET INTEREST MARGIN.......................... $ 950.7 3.73% $ 1,051.2 4.11% ============= ============
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. 23 HUNTINGTON BANCSHARES INCORPORATED P.7 - -------------------------------------------------------------- NET INTEREST MARGIN ANALYSIS (ANNUAL DATA)
1998 1997 -------------------------------------------------------- -------------------------------------------------------- INTEREST INTEREST AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ------------- ------------- -------- ------------ ------------ -------- $ 10 $ 1.0 5.22% $ 9 $ 0.5 5.47% 11 0.6 5.71 10 0.6 5.70 229 12.9 5.64 44 2.4 5.50 289 20.2 6.99 131 10.1 7.75 4,896 308.8 6.31 5,351 339.8 6.35 247 21.9 8.83 264 25.3 9.55 ------------- ------------- ------------ ------------ 5,143 330.7 6.43 5,615 365.1 6.50 ------------- ------------- ------------ ------------ 5,629 469.0 8.33 5,302 456.6 8.61 829 71.7 8.65 813 73.8 8.85 2,304 199.6 8.66 2,251 200.6 8.91 6,679 593.9 8.89 6,299 574.8 9.12 1,693 120.1 7.09 1,406 106.7 7.59 1,300 104.6 8.04 1,510 126.3 8.28 ------------- ------------- ------------ ------------ 9,672 818.6 8.46 9,215 807.8 8.77 ------------- ------------- ------------ ------------ 18,434 1,558.9 8.46 17,581 1,538.8 8.75 ------------- ------------- ------------ ------------ 280 85.4 252 75.8 ------------- ------------- ------------ ------------ 18,154 1,644.3 8.92 17,329 1,614.6 9.18 ------------- ------------- ------------ ------------ 24,116 2,009.7 8.33% 23,390 1,993.3 8.52% ------------- ------------- ------------ ------------ 975 910 2,081 1,103 ------------- ------------ $ 26,892 $ 25,151 ============= ============ $ 3,287 $ 2,774 3,585 96.4 2.69% 3,204 84.4 2.64% 3,277 114.0 3.48 3,056 100.4 3.28 7,979 445.6 5.58 7,414 417.3 5.63 ------------- ------------- ------------ ------------ 18,128 656.0 4.42 16,448 602.1 4.40 ------------- ------------- ------------ ------------ 182 10.5 5.82 365 21.8 5.97 103 5.9 5.66 382 22.2 5.81 ------------- ------------- ------------ ------------ 18,413 672.4 4.44 17,195 646.1 4.48 ------------- ------------- ------------ ------------ 2,084 97.7 4.69 2,826 146.4 5.18 2,903 164.6 5.67 1,983 116.2 5.86 876 43.6 4.98 739 45.5 6.16 ------------- ------------- ------------ ------------ 20,989 978.3 4.66% 19,969 954.2 4.78% ------------- ------------- ------------ ------------ 552 514 2,064 1,894 ------------- ------------ $ 26,892 $ 25,151 ============= ============ 3.67% 3.74% 0.61% 0.70% $ 1,031.4 4.28% $ 1,039.1 4.44% ============= ============
24 HUNTINGTON BANCSHARES INCORPORATED P.8 - ------------------------------------------ NET INTEREST MARGIN ANALYSIS (ANNUAL DATA)
1996 1995 -------------------------------------------------------- ------------------------------------------------------------ INTEREST INTEREST AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ------------ ------------ -------- ------------ ------------ -------- $ 14 $ 0.8 5.85% $ 26 $ 1.6 5.99% 16 0.9 5.66 23 1.6 7.29 67 3.8 6.03 93 5.6 6.10 113 8.7 7.74 133 10.0 7.58 5,194 333.7 6.42 4,679 310.7 6.64 291 27.9 9.59 342 33.2 9.73 ------------ ------------ ------------ ------------ 5,485 361.6 6.59 5,021 343.9 6.85 ------------ ------------ ------------ ------------ 4,955 396.9 8.01 4,703 403.3 8.58 580 50.7 8.75 473 41.6 8.79 2,129 189.3 8.89 1,646 145.1 8.82 5,880 528.4 8.99 5,508 494.2 8.97 950 74.8 7.87 657 51.0 7.76 1,485 123.0 8.28 2,188 183.0 8.36 ------------ ------------ ------------ ------------ 8,315 726.2 8.73 8,353 728.2 8.72 ------------ ------------ ------------ ------------ 15,979 1,363.1 8.53 15,175 1,318.2 8.69 ------------ ------------ ------------ ------------ 231 49.2 227 43.4 ------------ ------------ ------------ ------------ 15,748 1,412.3 8.84 14,948 1,361.6 8.97 ------------ ------------ ------------ ------------ 21,674 1,788.1 8.26% 20,471 1,724.3 8.43% ------------ ------------ ------------ ------------ 901 883 1,031 972 ------------ ------------ $ 23,375 $ 22,099 ============ ============ $ 2,664 $ 2,477 3,068 80.2 2.61% 2,815 68.6 2.44% 2,836 86.3 3.04 2,666 77.9 2.92 6,959 394.3 5.67 6,635 374.0 5.64 ------------ ------------ ------------ ------------ 15,527 560.8 4.36 14,593 520.5 4.30 ------------ ------------ ------------ ------------ 28 1.5 5.36 16 1.1 6.88 305 18.4 6.03 262 17.0 6.50 ------------ ------------ ------------ ------------ 15,860 580.7 4.40 14,871 538.6 4.34 ------------ ------------ ------------ ------------ 2,883 149.1 5.17 2,422 138.1 5.70 1,835 120.2 6.55 2,103 146.4 6.96 516 30.7 5.96 529 33.8 6.38 ------------ ------------ ------------ ------------ 18,430 880.7 4.78% 17,448 856.9 4.91% ------------ ------------ ------------ ------------ 505 432 1,776 1,742 ------------ ------------ $ 23,375 $ 22,099 ============ ============ 3.48% 3.52% 0.71% 0.72% $ 907.4 4.19% $ 867.4 4.24% ============ ============
25 P.9 HUNTINGTON BANCSHARES INCORPORATED SELECTED ANNUAL INCOME STATEMENT DATA (IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
2000 1999 1998 ----------------- ----------------- ----------------- TOTAL INTEREST INCOME ................................... $ 2,108,505 $ 2,026,002 $ 1,999,364 TOTAL INTEREST EXPENSE .................................. 1,166,073 984,240 978,271 ----------------- ----------------- ----------------- NET INTEREST INCOME ..................................... 942,432 1,041,762 1,021,093 Provision for loan losses ............................... 90,479 88,447 105,242 ----------------- ----------------- ----------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ............................. 851,953 953,315 915,851 ----------------- ----------------- ----------------- Service charges on deposit accounts ..................... 160,727 156,315 126,403 Brokerage and insurance income .......................... 61,871 52,076 36,710 Trust services .......................................... 53,613 52,030 50,754 Electronic banking fees ................................. 43,883 37,301 29,202 Bank Owned Life Insurance income ........................ 39,544 37,560 28,712 Mortgage banking ........................................ 38,025 56,890 60,006 Credit card fees ........................................ 6,985 23,314 21,909 Other ................................................... 51,810 36,587 45,181 ----------------- ----------------- ----------------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS ................. 456,458 452,073 398,877 ----------------- ----------------- ----------------- Securities gains ........................................ 37,101 12,972 29,793 Gains on sale of credit card portfolios ................. --- 108,530 9,530 ----------------- ----------------- ----------------- TOTAL NON-INTEREST INCOME ............................... 493,559 573,575 438,200 ----------------- ----------------- ----------------- Personnel and related costs ............................. 421,750 419,901 428,539 Equipment ............................................... 78,069 66,666 62,040 Net occupancy ........................................... 75,882 62,169 54,123 Outside data processing and other services .............. 62,011 62,886 74,795 Amortization of intangible assets ....................... 39,207 37,297 25,689 Marketing ............................................... 34,884 32,506 32,260 Telecommunications ...................................... 26,225 28,519 29,429 Legal and other professional services ................... 20,819 21,169 25,160 Printing and supplies ................................... 19,634 20,227 23,673 Franchise and other taxes ............................... 11,077 14,674 22,103 Other ................................................... 46,059 49,314 46,118 ----------------- ----------------- ----------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES .............................................. 835,617 815,328 823,929 Special charges ......................................... 50,000 96,791 90,000 ----------------- ----------------- ----------------- TOTAL NON-INTEREST EXPENSE .............................. 885,617 912,119 913,929 ----------------- ----------------- ----------------- Income Before Income Taxes .............................. 459,895 614,771 440,122 Provision for income taxes .............................. 131,449 192,697 138,354 ----------------- ----------------- ----------------- NET INCOME .............................................. $ 328,446 $ 422,074 $ 301,768 ================= ================= ================= PER COMMON SHARE (1) Net Income Basic .............................................. $1.32 $1.66 $1.18 Diluted ............................................ $1.32 $1.65 $1.17 Cash Dividends Declared ................................ $0.76 $0.68 $0.62 FULLY TAX EQUIVALENT MARGIN: Net Interest Income ..................................... $ 942,432 $ 1,041,762 $ 1,021,093 Tax Equivalent Adjustment (2) ........................... 8,310 9,423 10,307 ----------------- ----------------- ----------------- Tax Equivalent Net Interest Income ...................... $ 950,742 $ 1,051,185 $ 1,031,400 ================= ================= =================
1997 1996 1995 ----------------- ----------------- ----------------- TOTAL INTEREST INCOME ................................... $ 1,981,473 $ 1,775,734 $ 1,709,627 TOTAL INTEREST EXPENSE .................................. 954,243 880,648 856,860 ----------------- ----------------- ----------------- NET INTEREST INCOME ..................................... 1,027,230 895,086 852,767 Provision for Loan Losses ............................... 107,797 76,371 36,712 ----------------- ----------------- ----------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ............................. 919,433 818,715 816,055 ----------------- ----------------- ----------------- Service charges on deposit accounts ..................... 117,852 107,669 97,505 Brokerage and insurance income .......................... 27,084 20,856 17,979 Trust services .......................................... 48,102 42,237 37,627 Electronic banking fees ................................. 22,705 12,013 6,190 Bank Owned Life Insurance income ........................ --- --- --- Mortgage banking ........................................ 55,715 43,942 39,309 Credit card fees ........................................ 20,467 23,086 18,757 Other ................................................... 42,936 46,640 48,343 ----------------- ----------------- ----------------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS ................. 334,861 296,443 265,710 ----------------- ----------------- ----------------- Securities gains ........................................ 7,978 17,620 9,380 Gains on sale of credit card portfolios ................. --- --- --- ----------------- ----------------- ----------------- TOTAL NON-INTEREST INCOME ............................... 342,839 314,063 275,090 ----------------- ----------------- ----------------- Personnel and Related Costs ............................. 392,793 360,865 344,905 Equipment ............................................... 57,867 50,887 44,646 Net Occupancy ........................................... 49,509 49,676 47,824 Outside Data Processing and Other Services .............. 66,683 58,367 53,582 Amortization of Intangible Assets ....................... 13,019 10,220 9,471 Marketing ............................................... 32,782 20,331 17,598 Telecommunications ...................................... 21,527 16,567 13,946 Legal and Other Professional Services ................... 24,931 20,313 18,656 Printing and Supplies ................................... 21,584 19,602 18,103 Franchise and Other Taxes ............................... 19,836 20,359 17,083 Other ................................................... 51,414 48,323 76,247 ----------------- ----------------- ----------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES .............................................. 751,945 675,510 662,061 Special Charges ......................................... 51,163 --- --- ----------------- ----------------- ----------------- TOTAL NON-INTEREST EXPENSE .............................. 803,108 675,510 662,061 ----------------- ----------------- ----------------- Income Before Income Taxes .............................. 459,164 457,268 429,084 Provision for Income Taxes .............................. 166,501 152,999 147,283 ----------------- ----------------- ----------------- NET INCOME .............................................. $ 292,663 $ 304,269 $ 281,801 ================= ================= ================= PER COMMON SHARE (1) Net Income Basic .............................................. $1.15 $1.19 $1.07 Diluted ............................................ $1.14 $1.18 $1.06 Cash Dividends Declared ................................ $0.56 $0.51 $0.46 FULLY TAX EQUIVALENT MARGIN: Net Interest Income ..................................... $ 1,027,230 $ 895,086 $ 852,767 Tax Equivalent Adjustment (2) ........................... 11,864 12,363 14,602 ----------------- ----------------- ----------------- Tax Equivalent Net Interest Income ...................... $ 1,039,094 $ 907,449 $ 867,369 ================= ================= =================
(1) Adjusted for stock splits and stock dividends, as applicable. (2) Calculated assuming a 35% tax rate. 26 HUNTINGTON BANCSHARES INCORPORATED P.10 - ------------------------------------------------------ NET INTEREST MARGIN ANALYSIS (QUARTERLY DATA) (IN MILLIONS OF DOLLARS)
Fully Tax Equivalent Basis (1) 4TH QUARTER 2000 3RD QUARTER 2000 - ------------------------------------------------------ --------------------------- ------------------------------- AVERAGE YIELD/ AVERAGE YIELD/ BALANCE RATE BALANCE RATE ------------- ---------- --------------- ---------- ASSETS Interest Bearing Deposits in Banks ................... $ 5 5.50 % $ 5 6.13 % Trading Account Securities ........................... 17 6.56 11 6.54 Federal Funds Sold and Securities Purchased under Resale Agreements ........................... 85 6.53 136 6.43 Mortgages Held for Sale .............................. 129 7.74 99 8.51 Securities: Taxable ........................................ 4,410 6.31 4,273 6.33 Tax Exempt ..................................... 264 7.53 270 7.57 ------------- ------------- Total Securities .......................... 4,674 6.38 4,543 6.40 ------------- ------------- Loans: Commercial ...................................... 6,543 8.65 6,454 8.74 Real Estate Construction ............................... 1,306 8.87 1,283 8.88 Commercial ................................. 2,227 8.64 2,193 8.60 Consumer Loans ..................................... 6,425 8.90 6,392 8.82 Leases .................................... 3,049 6.92 2,976 6.79 Residential Mortgage ...................... 940 7.94 1,325 7.64 ------------- ------------- Total Consumer ............................ 10,414 8.24 10,693 8.11 ------------- ------------- Total Loans .......................................... 20,490 8.45 20,623 8.41 ------------- ------------- Allowance for Loan Losses/loan Fees .................. 302 302 ------------- ------------- Net Loans (2) ........................................ 20,188 8.96 20,321 8.90 ------------- ------------- Total Earning Assets ................................. 25,400 8.47 % 25,417 8.43 % ------------- ------------- Cash and Due From Banks .............................. 960 968 All Other Assets ..................................... 2,597 2,615 ------------- ------------- Total Assets ......................................... $ 28,655 $ 28,698 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Core Deposits Non-interest Bearing Deposits ................... $ 3,308 $ 3,425 Interest Bearing Demand Deposits ................ 4,496 3.62 % 4,385 3.47 % Savings Deposits ................................ 3,498 4.28 3,528 4.14 Certificates of Deposit .......................... 7,522 6.07 7,450 5.94 ------------- ------------- Total Core Deposits ........................ 18,824 4.96 18,788 4.82 ------------- ------------- Other Domestic Time Deposits ......................... 365 6.68 433 6.55 Foreign Time Deposits ................................ 322 6.37 561 6.63 ------------- ------------- Total Deposits .................................. 19,511 5.02 19,782 4.93 ------------- ------------- Short-term Borrowings ................................ 2,133 6.00 2,014 6.12 Medium-term Notes .................................... 2,665 6.85 2,592 6.81 Subordinated Notes and Other Long-term Debt, Including Capital Securities ...................... 1,171 7.42 1,171 7.39 ------------- ------------- Interest Bearing Liabilities .................... 22,172 5.46 % 22,134 5.39 % ------------- ------------- All Other Liabilities ................................ 822 787 Shareholders' Equity ................................. 2,353 2,352 ------------- ------------- Total Liabilities and Shareholders' Equity ........... $ 28,655 $ 28,698 ============= ============= Net Interest Rate Spread ............................. 3.01 % 3.04 % Impact of Non-interest Bearing Funds On Margin ....... 0.69 % 0.70 % Net Interest Margin .................................. 3.70 % 3.74 %
Fully Tax Equivalent Basis (1) 2ND QUARTER 2000 - ------------------------------------------------------ -------------------------------- AVERAGE YIELD/ BALANCE RATE ------------------ ---------- ASSETS Interest Bearing Deposits in Banks ................... $ 6 5.13 % Trading Account Securities ........................... 18 8.67 Federal Funds Sold and Securities Purchased Under Resale Agreements ........................... 105 6.10 Mortgages Held for Sale .............................. 99 8.11 Securities: Taxable ........................................ 4,067 6.20 Tax Exempt ..................................... 276 7.63 -------------- Total Securities .......................... 4,343 6.29 -------------- Loans: Commercial ...................................... 6,439 8.65 Real Estate Construction ............................... 1,254 8.72 Commercial ................................. 2,172 8.51 Consumer Loans ..................................... 6,530 8.38 Leases .................................... 2,895 6.71 Residential Mortgage ...................... 1,473 7.62 -------------- Total Consumer ............................ 10,898 7.83 -------------- Total Loans .......................................... 20,763 8.21 -------------- Allowance for Loan Losses/loan Fees .................. 302 -------------- Net Loans (2) ........................................ 20,461 8.69 -------------- Total Earning Assets ................................. 25,334 8.27 % -------------- Cash and Due From Banks .............................. 1,046 All Other Assets ..................................... 2,496 -------------- Total Assets ......................................... $ 28,574 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Core Deposits Non-interest Bearing Deposits ................... $ 3,485 Interest Bearing Demand Deposits ................ 4,228 3.32 % Savings Deposits ................................ 3,583 4.21 Certificates of Deposit .......................... 7,247 5.64 -------------- Total Core Deposits ........................ 18,543 4.65 -------------- Other Domestic Time Deposits ......................... 506 6.28 Foreign Time Deposits ................................ 626 6.66 -------------- Total Deposits .................................. 19,675 4.78 -------------- Short-term Borrowings ................................ 1,761 5.77 Medium-term Notes .................................... 3,042 6.46 Subordinated Notes and Other Long-term Debt, Including Capital Securities ...................... 1,148 7.08 -------------- Interest Bearing Liabilities .................... 22,141 5.21 % -------------- All Other Liabilities ................................ 743 Shareholders' Equity ................................. 2,205 -------------- Total Liabilities and Shareholders' Equity ........... $ 28,574 ============== Net Interest Rate Spread ............................. 3.06 % Impact of Non-interest Bearing Funds On Margin ....... 0.66 % Net Interest Margin .................................. 3.72 %
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. 27 HUNTINGTON BANCSHARES INCORPORATED P.11 - ------------------------------------------------------------ NET INTEREST MARGIN ANALYSIS (QUARTERLY DATA)
1ST QUARTER 2000 4TH QUARTER 1999 3RD QUARTER 1999 -------------------------------- --------------------------- --------------------------- AVERAGE YIELD/ AVERAGE YIELD/ AVERAGE YIELD/ BALANCE RATE BALANCE RATE BALANCE RATE ---------------- ------------- ------------ ------------ ------------- ----------- $ 6 3.69 % $ 13 3.94 % $ 8 3.64 % 14 6.26 14 6.35 7 5.64 23 6.11 31 6.10 20 5.39 109 7.59 135 7.45 169 7.27 4,515 6.14 4,854 6.15 4,846 6.14 282 7.68 288 7.73 295 7.76 ---------------- ------------ ------------- 4,797 6.23 5,142 6.23 5,141 6.24 ---------------- ------------ ------------- 6,345 8.31 6,194 8.06 6,066 7.90 1,238 8.38 1,182 8.19 1,103 8.13 2,156 8.35 2,185 8.18 2,215 8.14 6,837 8.29 6,876 8.27 7,093 8.29 2,773 6.65 2,633 6.55 2,365 6.75 1,449 7.54 1,443 7.45 1,421 7.47 ---------------- ------------ ------------- 11,059 7.78 10,952 7.75 10,879 7.85 ---------------- ------------ ------------- 20,798 8.04 20,513 7.91 20,263 7.91 ---------------- ------------ ------------- 306 309 301 ---------------- ------------ ------------- 20,492 8.52 20,204 8.43 19,962 8.54 ---------------- ------------ ------------- 25,747 8.08 % 25,848 7.98 % 25,608 8.07 % ---------------- ------------ ------------- 1,058 1,024 1,026 2,454 2,434 2,468 ---------------- ------------ ------------- $ 28,953 $ 28,997 $ 28,801 ================ ============ ============= $ 3,466 $ 3,460 $ 3,509 4,053 2.97 % 4,077 2.76 % 4,139 2.66 % 3,645 3.80 3,768 3.61 3,792 3.43 7,271 5.44 7,185 5.23 7,066 5.05 ---------------- ------------ ------------- 18,435 4.37 18,490 4.16 18,506 3.98 ---------------- ------------ ------------- 707 6.10 416 5.90 228 5.11 649 5.65 517 5.40 465 5.17 ---------------- ------------ ------------- 19,791 4.50 19,423 4.24 19,199 4.03 ---------------- ------------ ------------- 1,954 5.10 2,226 4.74 2,331 4.54 3,283 6.18 3,347 5.88 3,415 5.44 1,004 6.82 1,000 6.51 1,001 6.03 ---------------- ------------ ------------- 22,566 4.90 % 22,536 4.64 % 22,437 4.39 % ---------------- ------------ ------------- 715 893 658 2,206 2,108 2,197 ---------------- ------------ ------------- $ 28,953 $ 28,997 $ 28,801 ================ ============ ============= 3.18 % 3.34 % 3.68 % 0.60 % 0.60 % 0.54 % 3.78 % 3.94 % 4.22 %
2ND QUARTER 1999 1ST QUARTER 1999 --------------------------- --------------------------- AVERAGE YIELD/ AVERAGE YIELD/ BALANCE RATE BALANCE RATE ------------- ----------- ------------ ----------- $ 8 3.75 % $ 8 4.93 % 15 5.41 18 5.20 19 4.86 18 5.64 269 6.96 359 6.75 4,914 5.99 4,926 6.05 303 7.90 304 8.17 ------------- ------------ 5,217 6.10 5,230 6.17 ------------- ------------ 6,182 7.73 6,067 7.90 1,012 7.92 957 8.14 2,306 8.15 2,236 8.21 6,907 8.25 6,873 8.38 2,175 6.72 2,015 6.94 1,420 7.54 1,415 7.58 ------------- ------------ 10,502 7.84 10,303 7.99 ------------- ------------ 20,002 7.84 19,563 7.99 ------------- ------------ 297 299 ------------- ------------ 19,705 8.35 19,264 8.49 ------------- ------------ 25,530 7.87 % 25,196 7.98 % ------------- ------------ 1,044 1,064 2,454 2,461 ------------- ------------ $ 28,731 $ 28,422 ============= ============ $ 3,511 $ 3,505 4,109 2.50 % 4,061 2.46 % 3,769 3.25 3,627 3.17 7,194 5.08 7,655 5.29 ------------- ------------ 18,583 3.92 18,848 4.04 ------------- ------------ 183 4.93 122 4.92 307 4.82 161 4.80 ------------- ------------ 19,073 3.95 19,131 4.06 ------------- ------------ 2,793 4.38 2,853 4.33 3,047 5.19 2,666 5.29 1,004 5.70 1,007 5.81 ------------- ------------ 22,406 4.25 % 22,152 4.32 % ------------- ------------ 653 644 2,161 2,121 ------------- ------------ $ 28,731 $ 28,422 ============= ============ 3.62 % 3.66 % 0.52 % 0.52 % 4.14 % 4.18 %
28 P.12 HUNTINGTON BANCSHARES INCORPORATED SELECTED QUARTERLY INCOME STATEMENT DATA (IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
2000 -------------------------------------------------------------------------- IV Q III Q II Q I Q ---------------- ---------------- --------------- ---------------- TOTAL INTEREST INCOME ........................... $ 537,661 $ 535,791 $ 519,496 $ 515,557 TOTAL INTEREST EXPENSE .......................... 304,595 299,922 286,690 274,866 ---------------- ---------------- --------------- ---------------- NET INTEREST INCOME ............................. 233,066 235,869 232,806 240,691 Provision for Loan Losses ....................... 32,548 26,396 15,834 15,701 ---------------- ---------------- --------------- ---------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ..................... 200,518 209,473 216,972 224,990 ---------------- ---------------- --------------- ---------------- Service Charges On Deposit Accounts ............. 39,248 39,722 40,097 41,660 Brokerage and Insurance Income .................. 17,078 15,564 13,945 15,284 Trust Services .................................. 14,404 13,181 13,165 12,863 Mortgage Banking ................................ 11,976 9,412 8,122 8,515 Electronic Banking Fees ......................... 11,546 11,238 11,250 9,849 Bank Owned Life Insurance Income ................ 11,086 9,786 9,486 9,186 Credit Card Fees ................................ 2,108 1,744 1,340 1,793 Other ........................................... 22,258 9,626 18,145 1,781 ---------------- ---------------- --------------- ---------------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS ......... 129,704 110,273 115,550 100,931 ---------------- ---------------- --------------- ---------------- Securities Gains ................................ 845 11,379 114 24,763 Gains On Sale of Credit Card Portfolios ......... --- --- --- --- ---------------- ---------------- --------------- ---------------- TOTAL NON-INTEREST INCOME ....................... 130,549 121,652 115,664 125,694 ---------------- ---------------- --------------- ---------------- Personnel and Related Costs ..................... 105,810 109,463 104,133 102,344 Equipment ....................................... 20,811 18,983 18,863 19,412 Net Occupancy ................................... 18,614 19,520 18,613 19,135 Outside Data Processing and Other Services ...... 16,142 15,531 15,336 15,002 Marketing ....................................... 10,592 8,557 7,742 7,993 Amortization of Intangible Assets ............... 10,494 10,311 9,206 9,196 Legal and Other Professional Services ........... 6,785 4,719 4,815 4,500 Telecommunications .............................. 6,524 6,480 6,472 6,749 Printing and Supplies ........................... 5,212 4,849 4,956 4,617 Franchise and Other Taxes ....................... 3,163 2,841 2,635 2,438 Other ........................................... 19,703 12,331 5,305 8,720 ---------------- ---------------- --------------- ---------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES ...................................... 223,850 213,585 198,076 200,106 ---------------- ---------------- --------------- ---------------- Special Charges ................................. --- 50,000 --- --- ---------------- ---------------- --------------- ---------------- TOTAL NON-INTEREST EXPENSE ...................... 223,850 263,585 198,076 200,106 ---------------- ---------------- --------------- ---------------- INCOME BEFORE INCOME TAXES ...................... 107,217 67,540 134,560 150,578 Provision for Income Taxes ...................... 30,995 17,010 37,039 46,405 ---------------- ---------------- --------------- ---------------- NET INCOME ...................................... $ 76,222 $ 50,530 $ 97,521 $ 104,173 ================ ================ =============== ================ PER COMMON SHARE (1) Net Income Diluted .................................... $0.30 $0.20 $0.40 $0.42 Diluted - Cash Basis ....................... $0.34 $0.23 $0.43 $0.45 Cash Dividends Declared ........................ $0.20 $0.20 $0.18 $0.18 FULLY TAX EQUIVALENT MARGIN: Net Interest Income ............................. $ 233,066 $ 235,869 $ 232,806 $ 240,691 Tax Equivalent Adjustment (2) ................... 2,057 2,022 2,074 2,157 ---------------- ---------------- --------------- ---------------- Tax Equivalent Net Interest Income .............. $ 235,123 $ 237,891 $ 234,880 $ 242,848 ================ ================ =============== ================
1999 ------------------------------------------------------------------------- IV Q III Q II Q I Q --------------- ---------------- ---------------- --------------- TOTAL INTEREST INCOME ........................... $ 515,516 $ 516,294 $ 498,500 $ 495,692 TOTAL INTEREST EXPENSE .......................... 262,854 247,863 237,352 236,171 --------------- ---------------- ---------------- --------------- NET INTEREST INCOME ............................. 252,662 268,431 261,148 259,521 Provision for Loan Losses ....................... 20,040 22,076 21,026 25,305 --------------- ---------------- ---------------- --------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ..................... 232,622 246,355 240,122 234,216 --------------- ---------------- ---------------- --------------- Service Charges On Deposit Accounts ............. 42,774 41,700 36,065 35,776 Brokerage and Insurance Income .................. 13,373 14,620 12,540 11,543 Trust Services .................................. 12,828 12,625 13,143 13,434 Mortgage Banking ................................ 9,426 14,282 17,224 15,958 Electronic Banking Fees ......................... 10,082 9,771 9,410 8,038 Bank Owned Life Insurance Income ................ 9,390 9,390 9,390 9,390 Credit Card Fees ................................ 5,091 6,626 6,255 5,342 Other ........................................... 11,374 6,103 11,029 8,081 --------------- ---------------- ---------------- --------------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS ......... 114,338 115,117 115,056 107,562 --------------- ---------------- ---------------- --------------- Securities Gains ................................ 7,905 537 2,220 2,310 Gains On Sale of Credit Card Portfolios ......... 108,530 --- --- --- --------------- ---------------- ---------------- --------------- TOTAL NON-INTEREST INCOME ....................... 230,773 115,654 117,276 109,872 --------------- ---------------- ---------------- --------------- Personnel and Related Costs ..................... 100,654 104,730 107,263 107,254 Equipment ....................................... 18,161 16,059 15,573 16,873 Net Occupancy ................................... 17,890 16,799 13,563 13,917 Outside Data Processing and Other Services ...... 15,642 15,929 15,923 15,392 Marketing ....................................... 9,642 9,049 7,319 6,496 Amortization of Intangible Assets ............... 9,307 9,326 9,336 9,328 Legal and Other Professional Services ........... 5,868 4,754 5,803 4,744 Telecommunications .............................. 7,108 7,412 6,935 7,064 Printing and Supplies ........................... 5,483 5,254 4,734 4,756 Franchise and Other Taxes ....................... 2,708 3,598 3,981 4,387 Other ........................................... 12,432 13,279 11,708 11,895 --------------- ---------------- ---------------- --------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES ...................................... 204,895 206,189 202,138 202,106 --------------- ---------------- ---------------- --------------- Special Charges ................................. 96,791 --- --- --- --------------- ---------------- ---------------- --------------- TOTAL NON-INTEREST EXPENSE ...................... 301,686 206,189 202,138 202,106 --------------- ---------------- ---------------- --------------- INCOME BEFORE INCOME TAXES ...................... 161,709 155,820 155,260 141,982 Provision for Income Taxes ...................... 46,769 50,233 50,285 45,410 --------------- ---------------- ---------------- --------------- NET INCOME ...................................... $ 114,940 $ 105,587 $ 104,975 $ 96,572 =============== ================ ================ =============== PER COMMON SHARE (1) Net Income Diluted .................................... $0.45 $0.41 $0.41 $0.38 Diluted - Cash Basis ....................... $0.48 $0.44 $0.44 $0.41 Cash Dividends Declared ........................ $0.18 $0.18 $0.16 $0.16 FULLY TAX EQUIVALENT MARGIN: Net Interest Income ............................. $ 252,662 $ 268,431 $ 261,148 $ 259,521 Tax Equivalent Adjustment (2) ................... 2,249 2,280 2,390 2,504 --------------- ---------------- ---------------- --------------- Tax Equivalent Net Interest Income .............. $ 254,911 $ 270,711 $ 263,538 $ 262,025 =============== ================ ================ ===============
(1) Adjusted for stock splits and stock dividends, as applicable. (2) Calculated assuming a 35% tax rate. 29 P.13 HUNTINGTON BANCSHARES INCORPORATED NONINTEREST INCOME AND NONINTEREST EXPENSE FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2000 AND 1999 (IN THOUSANDS OF DOLLARS) ANALYSIS OF NON-INTEREST INCOME
THREE MONTHS ENDED DECEMBER 31, ------------------------------------- PERCENT 2000 1999 CHANGE ---------------- ---------------- ----------------- Service charges on deposit accounts.......................... $ 39,248 $ 42,774 (8.2)% Brokerage and insurance income............................... 17,078 13,373 27.7 Trust services............................................... 14,404 12,828 12.3 Mortgage banking............................................. 11,976 9,426 27.1 Electronic banking fees...................................... 11,546 10,082 14.5 Bank Owned Life Insurance income............................. 11,086 9,390 18.1 Credit card fees............................................. 2,108 5,091 (58.6) Other........................................................ 22,258 11,374 95.7 ---------------- ---------------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS...................... 129,704 114,338 13.4 ---------------- ---------------- Securities gains............................................. 845 7,905 (89.3) Gains on sale of credit card portfolios...................... --- 108,530 N.M. ---------------- ---------------- TOTAL NON-INTEREST INCOME.................................... $ 130,549 $ 230,773 (43.4)% ================ ================
TWELVE MONTHS ENDED DECEMBER 31, ------------------------------------ PERCENT 2000 1999 CHANGE --------------- ---------------- ----------------- Service charges on deposit accounts.......................... $ 160,727 $ 156,315 2.8 % Brokerage and insurance income............................... 61,871 52,076 18.8 Trust services............................................... 53,613 52,030 3.0 Mortgage banking............................................. 38,025 56,890 (33.2) Electronic banking fees...................................... 43,883 37,301 17.6 Bank Owned Life Insurance income............................. 39,544 37,560 5.3 Credit card fees............................................. 6,985 23,314 (70.0) Other........................................................ 51,810 36,587 41.6 --------------- ---------------- TOTAL NON-INTEREST INCOME BEFORE SECURITIES AND CREDIT CARD PORTFOLIO SALE GAINS...................... 456,458 452,073 1.0 --------------- ---------------- Securities gains............................................. 37,101 12,972 N.M. Gains on sale of credit card portfolios...................... --- 108,530 N.M. --------------- ---------------- TOTAL NON-INTEREST INCOME.................................... $ 493,559 $ 573,575 (14.0)% =============== ================
ANALYSIS OF NON-INTEREST EXPENSE
THREE MONTHS ENDED DECEMBER 31, ------------------------------------- PERCENT 2000 1999 CHANGE ---------------- ---------------- ----------------- Personnel and related costs.................................. $ 105,810 $ 100,654 5.1 % Equipment.................................................... 20,811 18,161 14.6 Net occupancy................................................ 18,614 17,890 4.0 Outside data processing and other services................... 16,142 15,642 3.2 Marketing.................................................... 10,592 9,642 9.9 Amortization of intangible assets............................ 10,494 9,307 12.8 Legal and other professional services........................ 6,785 5,868 15.6 Telecommunications........................................... 6,524 7,108 (8.2) Printing and supplies........................................ 5,212 5,483 (4.9) Franchise and other taxes.................................... 3,163 2,708 16.8 Other........................................................ 19,703 12,432 58.5 ---------------- ---------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES................................................... 223,850 204,895 9.3 ---------------- ---------------- Special charges.............................................. --- 96,791 N.M. ---------------- ---------------- TOTAL NON-INTEREST EXPENSE................................... $ 223,850 $ 301,686 (25.8)% ================ ================
TWELVE MONTHS ENDED DECEMBER 31, ------------------------------------ PERCENT 2000 1999 CHANGE --------------- ---------------- ----------------- Personnel and related costs.................................. $ 421,750 $ 419,901 0.4 % Equipment.................................................... 78,069 66,666 17.1 Net occupancy................................................ 75,882 62,169 22.1 Outside data processing and other services................... 62,011 62,886 (1.4) Marketing.................................................... 34,884 32,506 7.3 Amortization of intangible assets............................ 39,207 37,297 5.1 Legal and other professional services........................ 20,819 21,169 (1.7) Telecommunications........................................... 26,225 28,519 (8.0) Printing and supplies........................................ 19,634 20,227 (2.9) Franchise and other taxes.................................... 11,077 14,674 (24.5) Other........................................................ 46,059 49,314 (6.6) --------------- ---------------- TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL CHARGES................................................... 835,617 815,328 2.5 --------------- ---------------- Special charges.............................................. 50,000 96,791 N.M. --------------- ---------------- TOTAL NON-INTEREST EXPENSE................................... $ 885,617 $ 912,119 (2.9)% =============== ================
N.M. - Not Meaningful 30 P.14 HUNTINGTON BANCSHARES INCORPORATED STOCK SUMMARY, KEY RATIOS AND STATISTICS QUARTERLY COMMON STOCK SUMMARY (1)
2000 -------------------------------------------------------------------------- - IV Q III Q II Q I Q ---------------- ---------------- ----------------- ----------------- - High..................................... $16 3/8 $18 3/4 $20 13/16 $21 13/16 Low...................................... 12 1/2 14 11/16 14 3/8 16 1/8 Close.................................... 16 3/16 14 11/16 14 3/8 20 5/16 Cash dividends declared.................. $0.20 $0.20 $0.18 $0.18
1999 ----------------------------------------------------------------------- IV Q III Q IIQ IQ ---------------- ---------------- ---------------- ---------------- High..................................... $27 15/16 $30 13/16 $30 15/16 $27 11/16 Low...................................... 19 1/2 22 7/16 25 3/16 24 11/16 Close.................................... 21 11/16 24 1/8 28 15/16 25 9/16 Cash dividends declared.................. $0.18 $0.18 $0.16 $0.16
Note: Stock price quotations were obtained from NASDAQ KEY RATIOS AND STATISTICS
2000 -------------------------------------------------------------------------- - IV Q III Q II Q I Q ---------------- ---------------- ----------------- ----------------- - MARGIN ANALYSIS - AS A % OF AVERAGE EARNING ASSETS (2) - ----------------------------- Interest Income.......................... 8.47% 8.43% 8.27% 8.08% Interest Expense......................... 4.77% 4.69% 4.55% 4.30% -------------- -------------- -------------- ------------- Net Interest Margin................. 3.70% 3.74% 3.72% 3.78% ============== ============== ============== ============= RETURN ON (3) - ------------- Average total assets................... 1.06% 1.15% 1.37% 1.45% Average total assets - cash basis................. 1.21% 1.30% 1.51% 1.58% Average shareholders' equity........... 12.89% 14.04% 17.79% 18.99% Average shareholders' equity - cash basis................. 21.14% 22.74% 27.26% 29.01% Efficiency ratio (3)..................... 58.48% 58.38% 53.90% 53.93% REGULATORY CAPITAL DATA 2000 -------------------------------------------------------------------------- - (in millions of dollars) IV Q (4) III Q II Q I Q - -------------------------------------------- ---------------- ---------------- ----------------- ----------------- - Total Risk-Adjusted Assets............... $26,883 $ 26,370 $ 25,900 $ 25,251 Tier 1 Risk-Based Capital Ratio.......... 7.20% 7.20% 7.40% 7.23% Total Risk-Based Capital Ratio........... 10.46% 10.64% 10.90% 10.90% Tier 1 Leverage Ratio.................... 6.93% 6.80% 6.89% 6.45%
1999 ---------------------------------------------------------------------- IV Q III Q IIQ IQ --------------- ---------------- ---------------- ---------------- MARGIN ANALYSIS - AS A % OF AVERAGE EARNING ASSETS (2) - ----------------------------- Interest Income.......................... 7.98% 8.07% 7.87% 7.98% Interest Expense......................... 4.04% 3.85% 3.73% 3.80% ------------- ------------- ------------- ------------- Net Interest Margin................. 3.94% 4.22% 4.14% 4.18% ============= ============= ============= ============= RETURN ON (3) - ------------- Average total assets................... 1.47% 1.45% 1.47% 1.38% Average total assets - cash basis................. 1.61% 1.59% 1.61% 1.52% Average shareholders' equity........... 20.20% 19.07% 19.48% 18.47% Average shareholders' equity - cash basis................. 31.59% 29.54% 30.61% 29.58% Efficiency ratio (3)..................... 52.97% 51.02% 50.93% 52.16% REGULATORY CAPITAL DATA 1999 ---------------------------------------------------------------------- (in millions of dollars) IV Q III Q II Q I Q - -------------------------------------------- --------------- ---------------- ---------------- ---------------- Total Risk-Adjusted Assets............... $25,298 $25,309 $24,829 $24,345 Tier 1 Risk-Based Capital Ratio.......... 7.52% 7.32% 7.29% 7.20% Total Risk-Based Capital Ratio........... 10.72% 10.62% 10.65% 10.70% Tier 1 Leverage Ratio.................... 6.72% 6.58% 6.45% 6.32%
(1) Adjusted for stock splits and stock dividends, as applicable. (2) Presented on a fully tax equivalent basis assuming a 35% tax rate. (3) Presented on an "operating" basis (excludes gains from sale of credit card portfolios and special charges, net of related taxes). (4) Estimated. 31 P.15 HUNTINGTON BANCSHARES INCORPORATED LOAN LOSS RESERVES AND ASSET QUALITY (IN THOUSANDS OF DOLLARS) ALLOWANCE FOR LOAN LOSSES AND SELECTED STATISTICS
----------------------- ---------------------- ----------------------- 2000 1999 1998 ----------------------- ---------------------- ----------------------- Allowance for loan losses, beginning of year....... $ 299,309 $ 290,948 $ 258,171 Loan losses Commercial.................................. (18,013) (16,203) (24,512) Real Estate Construction........................... (238) (638) (80) Commercial............................. (1,522) (2,399) (2,115) Consumer Loans.................................. (65,211) (78,688) (84,961) Leases................................. (24,721) (12,959) (13,444) Residential Mortgage................... (1,140) (1,404) (1,243) ---------------- ---------------- ---------------- Total loan losses.................................. (110,845) (112,291) (126,355) ---------------- ---------------- ---------------- Recoveries of loans previously charged off Commercial.................................. 4,201 5,303 4,546 Real Estate Construction........................... 165 192 441 Commercial............................. 268 1,260 1,800 Consumer Loans.................................. 19,486 22,650 23,140 Leases................................. 3,503 2,532 1,554 Residential Mortgage................... 133 268 367 ---------------- ---------------- ---------------- Total recoveries of loans previously charged off... 27,756 32,205 31,848 ---------------- ---------------- ---------------- Net Loan Losses.................................... (83,089) (80,086) (94,507) ---------------- ---------------- ---------------- Allowance of securitized loans..................... (16,719) --- --- Provision for loan losses.......................... 90,479 88,447 105,242 Allowance of assets acquired and other............. 7,900 --- 22,042 ---------------- ---------------- ---------------- Allowance for loan losses, end of year............. $ 297,880 $ 299,309 $ 290,948 ================ ================ ================ As a % of average total loans Net loan losses................................. 0.40 % 0.40 % 0.51 % Provision for loan losses....................... 0.44 % 0.44 % 0.57 % Allowance for loan losses as a % of total loans.... 1.45 % 1.45 % 1.50 % Net loan loss coverage (1)......................... 7.23 x 8.63 x 6.72 x
-------------------- ----------------------- ---------------------- 1997 1996 1995 -------------------- ----------------------- ---------------------- Allowance for loan losses, beginning of year....... $ 230,778 $ 222,487 $ 225,225 Loan losses Commercial.................................. (23,276) (23,904) (15,947) Real Estate Construction........................... (375) --- (392) Commercial............................. (728) (1,476) (3,729) Consumer Loans.................................. (74,761) (59,843) (39,000) Leases................................. (9,648) (4,492) (1,989) Residential Mortgage................... (1,935) (1,292) (1,357) ---------------- ---------------- --------------- Total loan losses.................................. (110,723) (91,007) (62,414) ---------------- ---------------- --------------- Recoveries of loans previously charged off Commercial.................................. 4,373 4,884 3,696 Real Estate Construction........................... 111 556 5 Commercial............................. 315 1,124 752 Consumer Loans.................................. 16,382 13,457 11,156 Leases................................. 1,057 721 303 Residential Mortgage................... 304 278 225 ---------------- ---------------- --------------- Total recoveries of loans previously charged off... 22,542 21,020 16,137 ---------------- ---------------- --------------- Net Loan Losses.................................... (88,181) (69,987) (46,277) ---------------- ---------------- --------------- Allowance of securitized loans..................... --- --- --- Provision for loan losses.......................... 107,797 76,371 36,712 Allowance of assets acquired and other............. 7,777 1,907 6,827 ---------------- ---------------- --------------- Allowance for loan losses, end of year............. $ 258,171 $ 230,778 $ 222,487 ================ ================ =============== As a % of average total loans Net loan losses................................. 0.50 % 0.44 % 0.30 % Provision for loan losses....................... 0.61 % 0.48 % 0.24 % Allowance for loan losses as a % of total loans.... 1.46 % 1.38 % 1.44 % Net loan loss coverage (1)......................... 7.01 x 7.62 x 10.07 x
(1) Income before taxes (excluding gains from sale of credit card portfolios and special charges) and the provision for loan losses to net loan losses. NON-PERFORMING ASSETS AND PAST DUE LOANS
-------------------- ---------------------- ----------------------- 2000 1999 1998 -------------------- ---------------------- ----------------------- Non-accrual loans: Commercial.................................. $ 55,804 $ 42,958 $ 34,586 Real Estate Construction........................... 8,687 10,785 10,181 Commercial............................. 18,015 16,131 13,243 Residential............................ 10,174 11,866 14,419 ---------------- ---------------- ---------------- Total Nonaccrual Loans............................. 92,680 81,740 72,429 Renegotiated loans................................. 1,304 1,330 4,706 ---------------- ---------------- ---------------- Total Non-Performing Loans......................... 93,984 83,070 77,135 ---------------- ---------------- ---------------- Other real estate, net............................. 11,413 15,171 18,964 ---------------- ---------------- ---------------- Total Non-Performing Assets........................ $ 105,397 $ 98,241 $ 96,099 ================ ================ ================ Non-performing loans as a % of total loans................................. 0.46 % 0.40 % 0.40 % Non-performing assets as a % of total loans and other real estate........... 0.51 % 0.47 % 0.49 % Allowance for loan losses as a % of non-performing loans............................. 316.95 % 360.31 % 377.19 % Allowance for loan losses and other real estate as a % of non-performing assets........... 279.16 % 299.85 % 301.00 % Accruing loans past due 90 days or more............ 80,306 61,287 51,037 ================ ================ ================ Accruing loans past due 90 days or more as a % of total loans....................... 0.39 % 0.30 % 0.26 % ================ ================ ================
-------------------- ----------------------- ---------------------- 1997 1996 1995 -------------------- ----------------------- ---------------------- Non-accrual loans: Commercial.................................. $ 36,459 $ 25,621 $ 28,282 Real Estate Construction........................... 5,916 1,741 1,894 Commercial............................. 10,212 14,843 13,276 Residential............................ 13,394 12,835 11,971 ---------------- ---------------- --------------- Total Nonaccrual Loans............................. 65,981 55,040 55,423 Renegotiated loans................................. 5,822 4,422 5,320 ---------------- ---------------- --------------- Total Non-Performing Loans......................... 71,803 59,462 60,743 ---------------- ---------------- --------------- Other real estate, net............................. 15,343 17,208 23,598 ---------------- ---------------- --------------- Total Non-Performing Assets........................ $ 87,146 $ 76,670 $ 84,341 ================ ================ =============== Non-performing loans as a % of total loans................................. 0.40 % 0.35 % 0.39 % Non-performing assets as a % of total loans and other real estate........... 0.49 % 0.46 % 0.54 % Allowance for loan losses as a % of non-performing loans............................. 359.55 % 388.11 % 366.28 % Allowance for loan losses and other real estate as a % of non-performing assets........... 294.32 % 297.12 % 250.06 % Accruing loans past due 90 days or more............ 49,608 39,267 30,937 ================ ================ =============== Accruing loans past due 90 days or more as a % of total loans....................... 0.28 % 0.23 % 0.20 % ================ ================ ===============
32 P.16 HUNTINGTON BANCSHARES INCORPORATED LOAN LOSS RESERVES AND ASSET QUALITY (IN THOUSANDS OF DOLLARS) LOAN LOSS EXPERIENCE
2000 ---------------------------------------------------------------------------------------- IV Q III Q II Q I Q ---------------------- ---------------------- ---------------------- ------------------- Allowance for loan losses, beginning of period................... $ 294,686 $ 296,891 $ 296,743 $ 299,309 Allowance of assets acquired/other....... --- --- 7,900 --- Loan losses.............................. (32,929) (29,499) (22,810) (25,607) Recoveries of loans previously charged off........................... 7,431 5,705 7,280 7,340 Allowance of securitized loans........... (3,856) (4,807) (8,056) --- Provision for loan losses................ 32,548 26,396 15,834 15,701 ----------------- ----------------- ----------------- ----------------- Allowance for loan losses, end of period......................... $ 297,880 $ 294,686 $ 296,891 $ 296,743 ================= ================= ================= ================= As a % of average total loans Net loan losses--annualized............ 0.50 % 0.46 % 0.30 % 0.35 % Provision for loan losses--annualized.. 0.63 % 0.51 % 0.31 % 0.30 % Allowance for loan losses as a % of total loans........................ 1.45 % 1.45 % 1.45 % 1.45 % Net loan loss coverage (1)............... 5.48 x 6.05 x 9.68 x 9.10 x
1999 ---------------------------------------------------------------------------------------- IV Q III Q II Q I Q --------------------- -------------------- -------------------- --------------------- Allowance for loan losses, beginning of period................... $ 295,612 $ 293,274 $ 291,066 $ 290,948 Allowance of assets acquired/other....... --- --- --- --- Loan losses.............................. (24,855) (27,782) (27,123) (32,531) Recoveries of loans previously charged off........................... 8,512 8,044 8,305 7,344 Allowance of securitized loans........... --- --- --- --- Provision for loan losses................ 20,040 22,076 21,026 25,305 ---------------- ---------------- ---------------- ---------------- Allowance for loan losses, end of period......................... $ 299,309 $ 295,612 $ 293,274 $ 291,066 ================ ================ ================ ================ As a % of average total loans Net loan losses--annualized............ 0.32 % 0.39 % 0.38 % 0.52 % Provision for loan losses--annualized.. 0.39 % 0.43 % 0.42 % 0.52 % Allowance for loan losses as a % of total loans........................ 1.45 % 1.48 % 1.46 % 1.48 % Net loan loss coverage (1)............... 10.40 x 9.01 x 9.37 x 6.64 x
(1) Income before taxes (excluding gains from sale of credit card portfolios and special charges) and the provision for loan losses to net loan losses. NON-PERFORMING ASSETS AND PAST DUE LOANS
2000 ---------------------------------------------------------------------------------- IV Q III Q II Q I Q ---------------------- ------------------ -------------------- ----------------- Non-accrual loans: Commercial............................... $ 55,804 $ 44,918 $ 45,138 $ 44,404 Real Estate Construction........................ 8,687 7,973 8,736 7,696 Commercial.......................... 18,015 13,722 12,714 13,991 Residential......................... 10,174 8,588 11,548 10,892 ----------------- ----------------- ---------------- ---------------- Total Nonaccrual Loans................... 92,680 75,201 78,136 76,983 Renegotiated loans....................... 1,304 1,311 1,317 1,324 ----------------- ----------------- ---------------- ---------------- Total Non-Performing Loans............... 93,984 76,512 79,453 78,307 Other real estate, net................... 11,413 11,982 15,670 13,904 ----------------- ----------------- ---------------- ---------------- Total Non-Performing Assets.............. $ 105,397 $ 88,494 $ 95,123 $ 92,211 ================= ================= ================ ================ Non-performing loans as a % of total loans....................... 0.46 % 0.38 % 0.39 % 0.38 % Non-performing assets as a % of total loans and other real estate...... 0.51 % 0.44 % 0.46 % 0.45 % Allowance for loan losses as a % of non-performing loans................... 316.95 % 385.15 % 373.67 % 378.95 % Allowance for loan losses and other real estate as a % of non-performing assets.................. 279.16 % 326.77 % 306.89 % 316.30 % Accruing loans past due 90 days or more........................... $ 80,306 $ 80,290 $ 62,775 $ 60,156 ================= ================= ================ ================
1999 ---------------------------------------------------------------------------------- IV Q III Q IIQ 1Q -------------------- -------------------- ------------------ ------------------ Non-accrual loans: Commercial............................... $42,958 $41,374 $37,840 $37,594 Real Estate Construction........................ 10,785 6,154 7,877 7,540 Commercial.......................... 16,131 15,751 13,028 14,133 Residential......................... 11,866 13,094 15,192 14,849 ----------------- --------------- ------------- ------------ Total Nonaccrual Loans................... 81,740 76,373 73,937 74,116 Renegotiated loans....................... 1,330 1,877 2,827 2,764 ----------------- --------------- ------------- ------------ Total Non-Performing Loans............... 83,070 78,250 76,764 76,880 Other real estate, net................... 15,171 15,072 16,839 17,853 ----------------- --------------- ------------- ------------ Total Non-Performing Assets.............. $98,241 $93,322 $93,603 $94,733 ================= =============== ============= ============ Non-performing loans as a % of total loans....................... 0.40 % 0.39 % 0.38 % 0.39 % Non-performing assets as a % of total loans and other real estate...... 0.47 % 0.47 % 0.46 % 0.48 % Allowance for loan losses as a % of non-performing loans................... 360.31 % 377.78 % 382.05 % 378.60 % Allowance for loan losses and other real estate as a % of non-performing assets.................. 299.85 % 315.82 % 311.32 % 305.33 % Accruing loans past due 90 days or more........................... $61,287 $64,788 $54,305 $51,039 ================= =============== ============= ============
-----END PRIVACY-ENHANCED MESSAGE-----