EX-99.2 4 dex992.txt PRESENTATION MATERIALS EXHIBIT 99.2 [LOGO]SUNTRUST Acquisition of Huntington's Florida Franchise September 26, 2001 [LOGO]SUNTRUST -------------------------------------------------------------------------------- Forward Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, (i) statements about the benefits of an acquisition of the Huntington Florida Franchise, including future financial and operating results, cost savings and accretion to reported and cash earnings that may be realized from such acquisition; (ii) statements with respect to SunTrust's plans, objectives, expectations and intentions and other statements that are not historical facts; and (iii) other statements identified by words such as "believes", "expects", "anticipates", "estimates", "intends", "plans", "targets", "projects", and similar expressions. These statements are based upon the current beliefs and expectations of SunTrust's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the businesses of SunTrust and Huntington Florida may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) expected revenue synergies and cost savings from the acquisition may not be fully realized or realized within the expected time frame; (3) revenues following the acquisition may be lower than expected; (4) deposit attrition, operating costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected following the acquisition; (5) the regulatory approvals required for the acquisition may not be obtained on the proposed terms or on the anticipated schedule; (6) competitive pressures among depository and other financial institutions may increase significantly and may have an effect on pricing, spending, third-party relationships and revenues; (7) the strength of the United States economy in general and the strength of the local economies in which the combined company will conduct operations may be different than expected, resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on the combined company's loan portfolio and allowance for loan losses; (8) changes in the U.S. and foreign legal and regulatory framework; and (9) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on the combined company's capital markets and asset management activities. - 2 - [LOGO]SUNTRUST -------------------------------------------------------------------------------- Overview Transaction Terms Premium: 15% Deposit Premium Cost Savings: $48 million 36% of estimated Huntington Florida core expense base Divestitures: +/-5% of deposits Restructuring Charge: $100 Million Loan Loss Allowance Increase: $40 Million Accounting/Structure: Purchase; cash Steps to Completion: Customary regulatory approvals Expected Closing: February 2002 - 3 - [LOGO]SUNTRUST -------------------------------------------------------------------------------- Overview Context . Huntington announced company restructuring including sale of their Florida franchise July 12, 2001 . Size of transaction limits integration risk - SunTrust Florida organization to manage the top two priorities: customer/employee retention and customer/employee integration - On-going minimal impact to corporate resources and non-Florida market areas/(1)/ . Have factored in economic slowdown due to recent events /(1)/ Other than data conversion resources - 4 - [LOGO]SUNTRUST -------------------------------------------------------------------------------- Overview Precedent Transaction Analysis
Announce Entity Assets Premium/ Date Buyer Seller Sold (Deposits) Sold Deposits -------- ---------------------- ---------------------- ----------------- --------------------- --------------- 5/17/99 Charter One St. Paul Bank Sale 5.9 Billion 21% Financial Bancorp, Inc. 6/16/99 Fifth Third CNB Bank Sale 7.2 Billion 37% Bancorp Bancshares, Inc. 6/21/99 Citizens UST Bank Sale 5.9 Billion 23% Financial, Inc. Corporation 2/7/00 BB&T One Valley Bank Sale 6.6 Billion 16% Corporation Bancorp, Inc. 7/31/00 Firstar First Union 41 TN 1.8 Billion 20% Corporation Corporation branches (deposits) (est) 1/24/01 BB&T F&M National Bank Sale 3.6 Billion 26% Corporation Corporation 7/17/01 Royal Bank of Mellon Financial 345 DE, NJ, 13.4 Billion 16% Scotland Corporation PA (deposits) branches 9/24/01 SunTrust Huntington- Subject 4.7 Billion 15% Florida Transaction (deposits)
- 5 - [LOGO]SUNTRUST -------------------------------------------------------------------------------- Overview Huntington Florida Franchise . Retail, Commercial Banking and Private Client Services operations in central and southwestern Florida . Integrated delivery network: - 141 branches 106 traditional 35 in-stores (Albertson's, 1 Wal-Mart) - 5 Private Client Services offices/(1)/ - 456 store-based and remote ATM's . Ranks among the top six banks within current Florida MSA's, with approximately 6% market share in Florida overall /(1)/ Huntington will retain three Florida wealth management locations, their Florida Indirect Loan origination business and their Florida mortgage origination platform. - 6 - [LOGO]SUNTRUST -------------------------------------------------------------------------------- Overview Huntington Florida Franchise Loans ($Millions) Deposits ($Millions) ------------------------ ------------------------ Retail 845 DDA 581 Indirect 325 MMA 849 Residential 249 NOW 538 Commercial 735 SAV 555 Commercial RE 421 Time 2,042 ------ 2,575 Repos 139 ------ Total Deposits 4,704 . Includes $860MM of trust assets under management As of July 31, 2001 . Transaction value is based primarily on an attractive retail customer base that is complementary to the existing SunTrust Florida franchise . Not dependent upon Florida tourism -7- [LOGO]SUNTRUST -------------------------------------------------------------------------------- Strategic Benefits Huntington Operates In Rapidly Growing Markets With Attractive Demographics [GRAPHIC] Strategic Benefits Forecast Median Household Forecast Key Huntington Markets Income Growth(1) Population Growth(1) ---------------------- ---------------- -------------------- Orlando 8.8% 10.9% Sarasota 12.9% 7.3% Tampa - St. Petersburg 12.2% 5.4% Lakeland/Winter Haven 8.1% 7.6% Daytona 6.9% 9.4% National Averages 12.4% 4.5% (1) Forecast 2000-2005 -8- [LOGO]SUNTRUST -------------------------------------------------------------------------------- Strategic Benefits Huntington Enhances SunTrust's Position In Key High Opportunity Florida Markets
SunTrust Current SunTrust + Huntington, Market Deposit Share/Rank Deposit Share/Rank ----------------------------- ------------------------- ---------------------------- Tampa 9.3%, 4 14% 2 Lakeland/Winter Haven 17.1% 3 26% 1 Orlando 24.7% 2 29% 1 Daytona 18.0% 3 21% 2 Sarasota/Bradenton 12.2% 2 18% 2
Strategic Benefits Market demographics include strong mix of affluent, middle market and retirees Note: Market share data as of 6/30/01 excluding credit union balances - 9 - [LOGO]SunTrust -------------------------------------------------------------------------------- Financial Impacts Value Creation Through Appropriate Cost Savings Annual Cost Savings: $48 million Cumulative Phase In: Year 1 65% Year 2 100% Traditional Branch Consolidations: 45 % of Huntington Core Expense: 36% Estimated Restructure Charge: $100 Million Position Reductions: 600 Financial Impacts -------------------------------------------------------------------------------- Combined companies' employee attrition will support majority of headcount reductions. Job assurances have been given to Huntington teller and certain other personnel(1). -------------------------------------------------------------------------------- (1) Exception: Employees on disciplinary action - 10 - [LOGO]SunTrust -------------------------------------------------------------------------------- Financial Impacts Branch Proximity Allows Low Customer Impact Consolidations
(less than).25 .25 - .50 .50 - .75 .75 - 1.0 (greater than)1.0 Miles Miles Miles Miles Miles Total ------------------------------------------------------------------------------------------- Number of Traditional Branches 22 15 3 4 1 45 % of Total Closed Branches 49% 33% 7% 9% 2% 100%
----------------------------------------------- 82% of branch consolidations within 1/2 mile ----------------------------------------------- - 11 - [LOGO]SunTrust -------------------------------------------------------------------------------- Financial Impacts Attractive Pricing Produces Earnings Accretion And Supports A Return Over Cost Of Capital Cash EPS Accretion: - Neutral in 2002 - Accretive in subsequent years Transaction IRR: 11-13% compared to SunTrust cost of equity of 11% Conservative Assumptions: - Account Deposit and Loan Attrition at 10-12% - Assumes no revenue enhancements - 12 - [LOGO]SunTrust -------------------------------------------------------------------------------- Summary . Enhances current SunTrust Florida franchise - Strengthens positions in some of the best markets . Proximity of branches allows cost savings without significant customer disruption . Low integration risk given size of transaction and Company's integration experience . Financially attractive using conservative assumptions - 13 -