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| Huntington Bancshares Incorporated Reports 2003 Third Quarter Earnings Of $0.39 Per Share |
- Announces Earnings Restatement
* Retroactive application of deferral accounting for all loan and lease
origination fees and costs
* Reduces equity by $66 million
- Adopts FIN 46
* Consolidates $1.0 billion of securitized automobile loans
COLUMBUS, Ohio, Oct. 15 /PRNewswire-FirstCall/ --
2003 THIRD QUARTER EARNINGS
Huntington Bancshares Incorporated (Nasdaq: HBAN)( http://www.huntington.com )
reported 2003 third quarter earnings of $90.9 million, or $0.39 per common
share, down $5.6 million, or 6%, from $96.5 million, or $0.42 per common
share, in the second quarter, but up $2.9 million, or 3%, from $88.0 million,
or $0.36 per common share, in the year-ago quarter. The current quarter
results included a negative $13.3 million cumulative effect of change in
accounting principle as a result of adopting FASB Interpretation No. 46,
Consolidation of Variable Interest Entities (FIN 46) effective July 1, 2003.
Before the cumulative effect, 2003 third quarter earnings were $104.2 million,
or $0.45 per common share, up $7.7 million, or 8%, from the second quarter,
and up $16.2 million, or 18%, from the year-ago quarter on the same basis.
All prior period results reflect the restatement announced today and discussed
below.
"Huntington continues to make progress in several very important areas,
and we are quite pleased with some of the trends we are seeing," said Thomas
Hoaglin, chairman, president, and chief executive officer. "Net interest
income increased as we continued to grow loans and leases and earning assets.
Average core deposits excluding retail CD's increased 5% again this quarter.
Importantly, this growth rate was maintained following a reduction in our
deposit pricing at the beginning of the quarter, which helped limit the
decline in the fully taxable equivalent net interest margin to only one basis
point."
Hoaglin also noted the improving credit quality trends saying, "Net
charge-offs declined this quarter, while non-performing assets were
essentially unchanged. Lower commercial net charge-offs were a significant
driver of this trend. Our loan and lease loss reserve remained very strong as
evidenced by the increase in our coverage ratio on non-performing assets to
270% from 255% in the previous quarter."
"While the tangible common equity to asset ratio declined to 6.78% in the
third quarter from 7.07% in the second quarter, the decline reflected the
consolidation of $1.0 billion of securitized automobile loans. Our tangible
common equity ratio exceeds our revised long-term target of 6.50% to 6.75%,"
he concluded.
Discussion of Results
Third quarter results compared with sequential second quarter performance
reflected:
-- $1.3 billion, or 7%, increase in average loans and leases from the
second quarter. Of this increase, $1.0 billion resulted from the
FIN 46 consolidation.
-- 5% growth in core deposits, excluding retail CDs.
-- 13% decline in average operating lease assets.
-- 3.46% net interest margin, down from 3.47%.
-- $13.3 million after-tax, or $0.06 per share, negative cumulative effect
of change in accounting principle (FIN 46).
-- $17.8 million pretax ($11.6 million after-tax or $0.05 per share)
mortgage servicing rights (MSR) impairment recovery, compared with
$6.4 million pretax impairment in the second quarter.
-- $4.1 million pretax ($2.7 million after-tax or $0.01 per share)
securities losses compared with $6.9 million pretax gain in the second
quarter.
-- $13.1 million pretax gain on sale of four West Virginia offices
($8.5 million after-tax or $0.04 per share).
-- 0.64% annualized net charge-offs, down from 0.85%.
-- 0.65% non-performing assets ratio, down from 0.70%.
-- 270% non-performing assets coverage ratio, up from 255%.
-- 6.78% tangible common equity ratio, down from 7.07%.
Fully taxable equivalent net interest income increased $18.5 million, or
9%, from the second quarter, primarily reflecting growth in average earning
assets, offset by a one basis point decline in the net interest margin. The
fully taxable equivalent net interest margin decreased to 3.46% from 3.47% due
lower asset yields, though this impact was lessened by reduced deposit rates.
Average total earning assets increased $1.9 billion, or 8%, of which $1.0
billion related to the FIN 46 consolidation of automobile loans, $0.4 billion
related to higher investment securities, and $0.6 billion related to higher
average loans and leases and mortgages held for sale. Excluding the
consolidation of automobile loans, average earning assets increased $0.9
billion, or 4%, from the second quarter.
Compared with the year-ago quarter, fully taxable equivalent net interest
income increased $30.7 million, or 16%, reflecting a $4.9 billion, or 24%,
increase in average earning assets, partially offset by a 23 basis point, or
6%, decline in the fully taxable equivalent net interest margin to 3.46% from
3.69%. Excluding the FIN 46 consolidation of automobile loans, average
earnings assets increased $3.9 billion, or 19%, from the year-ago quarter.
Average loans and leases increased $1.3 billion, or 7%, from the second
quarter. Of this increase, $1.0 billion resulted from the FIN 46
consolidation. Excluding the impact of FIN 46, average loans and leases
increased $0.3 billion, or 1%. The slower growth rate in average loans and
leases in the third quarter was impacted by the sale of $569 million of
automobile loans late in the second quarter and a decline in large commercial
and industrial loans in the current quarter. Reflecting the impact of the low
interest rate environment, average residential mortgages grew 10% and average
home equity loans and lines of credit increased 4%. Average automobile loans
and leases increased 25%, with the FIN 46 consolidation accounting for
$1.0 billion, or 24 percentage points. Excluding the impact of the FIN 46
consolidation, average automobile loans and leases were up 1%, impacted by the
automobile loans sold late in the second quarter. Total average commercial
real estate loans increased 4%. In contrast, average commercial loans
declined 4% reflecting declines in larger commercial credits, offset by
2% growth in small business loans.
Compared with the year-ago quarter, average loans and leases increased
$3.3 billion, or 19%, including the impact of the FIN 46 consolidation of
$1.0 billion of automobile loans. Average automobile loans and leases
increased $2.0 billion, or 61%, including the impact of adopting FIN 46.
Excluding the FIN 46 consolidation, average automobile loans and leases
increased $1.0 billion, or 30%. This increase was driven by a $1.1 billion
increase in direct financing leases. Excluding the consolidation of
securitized automobile loans, average automobile loans decreased $0.2 billion,
or 6%, reflecting the $1.1 billion of automobile loans sold in the 2003 first
half. Average residential mortgages increased 40%, with average home equity
loans and lines up 14%. Total average commercial real estate loans increased
12%, while average commercial loans declined 2%.
Average investment securities increased $0.4 billion, or 10%, from the
second quarter reflecting the investment of proceeds from the second quarter
sale of automobile loans. Average mortgages held for sale increased
$0.3 billion, or 49%, from the second quarter due to high loan originations
reflecting continued heavy refinancing activity.
Total average core deposits in the third quarter increased $0.4 billion,
or 2%, from the second quarter including a $0.2 billion decline in retail
certificates of deposits (CDs). Excluding retail CDs, average core deposits
increased 5%, reflecting 8% growth in interest bearing demand deposits and
6% growth in non-interest bearing demand deposits. Compared with the year-ago
quarter, average core deposits increased 5% including a $0.9 billion decline
in retail CDs. Average core deposits excluding retail CDs were up 14% from
the year-ago quarter.
Non-interest income decreased $4.2 million, or 2%, from the second
quarter. The primary drivers of the reduction were:
-- No gain on sale of automobile loans in the third quarter compared with
an $11.6 million gain on sale of automobile loans in the second
quarter.
-- $11.0 million, or 9%, decline in operating lease income. Such declines
are expected as the operating lease portfolio runs off. All new
automobile leases originated after April 2002 are direct financing
leases, the income from which is reflected in net interest income.
-- $11.0 million decline in investment securities gains, reflecting
$4.1 million of securities losses in the current quarter compared to
securities gains of $6.9 million in the second quarter. Investment
securities are viewed as a natural balance sheet hedge against changes
in MSR valuations with securities gains (losses) used to partially
offset MSR losses (gains).
-- $6.0 million, or 20%, decline in other income, reflecting the
elimination of securitization income due to FIN 46 implementation,
lower revenues on early automobile lease terminations, and lower
trading gains.
Partially offsetting these declines in non-interest income were:
-- $13.1 million gain on sale of branch offices reflecting the previously
announced sale of the four West Virginia branch offices, which closed
in late July.
-- $24.2 million increase in MSR valuation reflecting a $17.8 million MSR
impairment recovery in the current quarter compared with $6.4 million
of MSR impairment in the second quarter.
The decline in interest rates through the second quarter resulted in a
temporary impairment of MSR valuations over the last year. In contrast, the
increase in interest rates during the third quarter and the related
prospective slowdown in mortgage prepayments, resulted in a longer estimated
life of the MSR cash flows, and the resultant increased MSR valuation.
Mortgage banking income increased $23.0 million in the third quarter.
Excluding the MSR valuation change between quarters, mortgage banking income
decreased $1.2 million. At September 30, 2003, MSRs as a percent of serviced
mortgages were 1.07%, up from 0.72% at June 30, 2003.
Compared with the year-ago quarter, non-interest income declined
$25.8 million, or 9%, primarily reflecting the following:
-- $42.5 million, or 27%, decline in operating lease income as this
portfolio continues to run off.
-- $24.6 million Merchant Services gain in the year-ago quarter.
-- $5.2 million decline in investment securities gains, reflecting
$4.1 million of securities losses in the current quarter compared to
securities gains of $1.1 million in the year ago quarter.
Partially offset by:
-- $27.6 million increase in mortgage banking income, of which
$24.4 million was due to an increase in MSR valuation, reflecting a
$17.8 million recovery in the current quarter compared with a
$6.6 million writedown in the year-ago quarter.
-- $13.1 million gain on sale of the West Virginia banking offices in the
current quarter.
-- $4.6 million, or 12%, increase in services charges on deposit accounts.
-- $3.2 million increase in mortgage banking income exclusive of MSR
recovery/impairment.
Non-interest expense increased $3.1 million, or 1%, from the second
quarter reflecting a $5.3 million release of restructuring reserves in the
second quarter. Excluding this release of restructuring reserves, third
quarter non-interest expense decreased $2.2 million, or 1%. Contributing to
this decline were the following:
-- $9.8 million, or 10%, decline in operating lease expense, reflecting
the continued run-off of that portfolio.
-- $2.9 million, or 35%, decline in marketing expenses.
Partially offset by:
-- $7.9 million, or 8%, increase in personnel costs including current
period recognition of $3.0 million in pension settlement expense, as
well as higher medical and incentive accruals.
-- $1.2 million, or 13%, increase in professional services. The current
quarter included $4.5 million of expenses associated with the
Securities and Exchange Commission formal investigation, up from
$0.8 million in the second quarter.
Compared with the year-ago quarter, non-interest expense declined
$19.3 million, or 6%, primarily reflecting a $32.6 million, or 26%, decrease
in operating lease expense. Partially offsetting the decrease was a
$12.5 million, or 12%, increase in personnel costs primarily reflecting higher
benefit expenses and sales commissions.
Net charge-offs for the 2003 third quarter were $32.8 million, or an
annualized 0.64% of average loans and leases, down from $41.1 million, or
0.85%, in the second quarter and down from $33.8 million, or 0.78%, in the
year-ago quarter. This primarily reflected lower commercial loan charge-offs,
which were an annualized 0.91% of related loans in the third quarter, down
from 1.89% in the second quarter. This decline in commercial net charge-offs
reflected improving trends, compared with the second quarter, which included
the charge-off of a single commercial credit in the teleconferencing business.
In contrast, commercial real estate net charge-offs increased to an annualized
0.36% in the third quarter from 0.06% in the second quarter, primarily
reflecting the charge-off of a single credit.
Total consumer net charge-offs were an annualized 0.61% in the third
quarter, up from 0.57% in the second quarter, primarily reflecting an increase
in automobile loan charge-offs. Home equity charge-offs declined to an
annualized 0.39% from 0.44%, and residential charge-offs declined to
0.05% from 0.06%. Net charge-offs on automobile loans were an annualized
1.20% in the third quarter, up from 1.06% in the second quarter, reflecting
the adverse impact of automobile loans sold in the first and second quarters.
These sold portfolios included a larger relative component of newer loans with
inherently lower net charge-off rates than the total portfolio. Net
charge-offs on automobile leases decreased to an annualized 0.36% from
0.44% in the second quarter.
Credit losses on operating lease assets, which are included in operating
lease expense, were $10.0 million, compared with $11.6 million in the second
quarter and $12.8 million in the year-ago quarter. Recoveries on operating
lease assets, which are included in operating lease income, were $2.6 million,
$2.7 million, and $2.9 million for the same periods. The ratio of credit
losses net of recoveries to operating lease assets was an annualized 1.90% in
the current quarter, 1.97% in the second quarter, and 1.53% in the year-ago
quarter. The increase from a year ago reflects the declining balances in this
portfolio. This portfolio will decrease over time since no new operating
lease assets have been generated after April 2002. As a result, while the
absolute level of credit losses is expected to decline over time, the ratio of
credit losses expressed as a percent of a declining average operating lease
assets, is expected to increase.
The over 90-day delinquent, but still accruing, loans as a percent of
total loans and leases was relatively unchanged at 0.31% at September 30,
2003. The 30-day delinquency ratio decreased to 1.25% at September 30, 2003,
from 1.33% at the end of the second quarter, and was down significantly from
1.72% at the end of the year-ago quarter. This reflected improvement in the
total consumer 30-day delinquency ratio to 1.72% at quarter end, down from
1.86% at the end of the second quarter and 2.00% a year earlier. Total
commercial and commercial real estate 30-day delinquencies also declined to
0.67% at quarter end, down from 0.79% at June 30, 2003, and 1.45% a year ago.
The provision for loan and lease losses in the third quarter was
$51.6 million, up $2.4 million, or 5%, from the second quarter due primarily
to $18.8 million of provision expense reflecting loan growth, offset by
$8.3 million of lower net charge-offs in the current period. The September
30, 2003, allowance for loan and lease losses as a percent of period-end loans
and leases was 1.75%, down from 1.79% at June 30, 2003, reflecting the FIN 46
consolidation of $1.0 billion of automobile loans with a lower associated loan
loss reserve, and was down from 2.08% at the end of the year-ago quarter.
The allowance for loan and lease losses as a percent of non-performing assets
increased to 270% at September 30, 2003, from 255% at June 30, 2003, and was
well above the year-ago level of 173% due to the significant decline in
non-performing assets over this period. Compared with the year-ago quarter,
loan and lease loss provision expense was down $2.7 million, or 5%.
Non-performing assets at September 30, 2003 were $137.1 million and
represented 0.65% of period-end loans and leases and other real estate. This
was up $3.4 million from $133.7 million, or 0.70%, of period-end loans and
leases and other real estate owned at June 30, 2003, and down $77.1 million,
or 36%, from the end of the year-ago quarter. Non-performing assets continued
to be concentrated in the manufacturing and services sectors.
At September 30, 2003, the tangible equity to assets ratio was 6.78%, down
from 7.07% at June 30, 2003, and down from 7.65% at September 30, 2002. While
the decrease from the second quarter primarily reflected the FIN 46
consolidation of automobile loans, there was no change in the risk of loss
related to the consolidation. The decrease from a year ago primarily
reflected share repurchase activity from July 1, 2002 through March 31, 2003.
No shares were repurchased during the 2003 second or third quarters. The
existing share repurchase authorization had 3.9 million shares remaining as of
September 30, 2003.
2003 Outlook
"It has been our practice to provide earnings guidance when appropriate,"
said Hoaglin. "Going forward, we intend that any earnings guidance given will
only be on a GAAP, or reported, basis. By providing earnings guidance on a
GAAP basis, investors will be able to decide independently what, if any,
adjustments they wish to make to this GAAP guidance in determining the
appropriate level of earnings for their stock price valuation analysis."
In this regard, the company noted that earnings on a GAAP basis for the
first nine months of 2003 were $1.21 per share ($0.39 in the first quarter,
$0.42 in the second quarter, and $0.39 in the third quarter; quarterly amounts
do not add to the year to date total due to rounding). The company expects
2003 fourth quarter earnings per share on a GAAP basis to be $0.37-$0.38 per
share.
FIN 46 Adoption
As previously announced on July 17, 2003, Huntington adopted FASB
Interpretation No. 46, Consolidation of Variable Interest Entities (FIN 46)
effective July 1, 2003. As a result, the company consolidated $1.0 billion of
securitized automobile loans on the balance sheet in the third quarter. This
resulted in a negative $13.3 million after-tax, or $0.06 per share, cumulative
effect of change in accounting principle in third quarter results.
The adoption also required the deconsolidation of two business trusts
which had been formed to issue trust preferred securities which qualified as
Tier 1 capital for regulatory capital purposes. The related borrowings by the
parent company are now reported in the balance sheet under the caption
"Subordinated notes" and continue to qualify as Tier 1 capital. There was no
cumulative effect on retained earnings or Huntington's capital ratios as a
result of this deconsolidation.
EARNINGS RESTATEMENT
Items Previously Announced
On July 17, 2003, Huntington announced a series of voluntary actions
related to the previously announced SEC investigation, resulting in a $30
million cumulative reduction in retained earnings. Included was a decision to
restate earnings to correct for errors related to the timing of origination
fees paid to automobile dealers, the deferral of commissions paid to originate
deposits, certain mortgage origination fee income, the recognition of pension
settlements, and liabilities related to the sale of an automobile debt
cancellation product.
At the same time, the company announced the prospective application of
deferral accounting for all loan origination fees and costs beginning July 1,
2003, and noted that a review was being conducted to determine whether to
implement such deferral accounting on a retroactive basis.
Items Announced Today
Today the company announced the application of deferral accounting for all
loan origination fees and costs on a retroactive basis. This voluntary
correction, plus the correction of two other errors, results in an incremental
$66 million cumulative reduction in retained earnings. This reduction in
equity consists of three items:
-- $55 million related to a decision to retroactively apply deferral
accounting for loan origination fees and costs,
-- $4 million to correct an amount included in the July 17, 2003
announcement related to the automobile debt cancellation product, and
-- $7 million to correct the timing of income recognition on a 1998
sale-leaseback transaction.
Two other timing errors, which had no cumulative effect on retained
earnings, were identified during an internal review of accounting procedures:
the recognition of a gain on an interest rate swap initiated in 1992 and sold
in 2000, and the recognition of income on Bank Owned Life Insurance in 2001
and 2002.
The company will restate earnings to reflect these items and believes that
correcting these errors improves financial reporting accuracy and
transparency.
Combined Impact on Retained Earnings
The total effect of the announcements made on July 17th and today is a
cumulative $96 million reduction in equity. Earnings in prior periods have
been restated to correct these errors with 80%, or $77 million, of the impact
reflected in the years 2000 and earlier. In November the company will file an
amended 2002 Annual Report on Form 10-K/A, as well as amended Quarterly
Reports on Form 10-Q/A for the first and second quarters of 2003.
"Although the SEC investigation is ongoing, these announcements address
the accounting issues known to us related to the SEC investigation or issues
identified in our internal review of accounting procedures," said Hoaglin.
"We remain committed to cooperating fully with the SEC staff and to insuring
complete compliance with both the letter and spirit of proper accounting and
financial reporting transparency."
Conference Call/Webcast Information
Huntington's senior management will host a conference call today to
discuss these developments and results at 1:00p.m. EDT. The call may be
accessed via a live Internet webcast at http://www.huntington-ir.com or through a
dial-in telephone number at (800) 553-2599. Slides will be available at
http://www.huntington-ir.com just prior to 1:00p.m. EDT today for review during the
call. A replay of the webcast will be archived in the Investor Relations
section of Huntington's web site http://www.huntington.com. A telephone replay will
be available two hours after the completion of the call through October 31,
2003, at (800) 615-3210; conference ID 271139. The conference call transcript
and slides will be filed with the Securities and Exchange Commission on Form
8-K.
Forward-looking Statement
This press release contains certain forward-looking statements, including
certain plans, expectations, goals, and projections, which are subject to
numerous assumptions, risks, and uncertainties. A number of factors,
including but not limited to those set forth under the heading "Business
Risks" included in Item 1 of Huntington's Annual Report on Form 10-K/A for the
year ended December 31, 2002, and other factors described from time to time in
Huntington's other filings with the Securities and Exchange Commission, could
cause actual conditions, events, or results to differ significantly from those
described in the forward-looking statements. 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.
About Huntington
Huntington Bancshares Incorporated is a $30 billion regional bank holding
company headquartered in Columbus, Ohio. Through its affiliated companies,
Huntington has more than 137 years of serving the financial needs of its
customers. Huntington provides innovative retail and commercial financial
products and services through more than 300 regional banking offices in
Indiana, Kentucky, Michigan, Ohio and West Virginia. Huntington also offers
retail and commercial financial services online at http://www.huntington.com; through
its technologically advanced, 24-hour telephone bank; and through its network
of more than 850 ATMs. Selected financial service activities are also
conducted in other states including: Dealer Sales offices in Florida, Georgia,
Tennessee, Pennsylvania and Arizona; Private Financial Group offices in
Florida; and Mortgage Banking offices in Florida, Maryland and New Jersey.
International banking services are made available through the headquarters
office in Columbus and additional offices located in the Cayman Islands and
Hong Kong.
HUNTINGTON BANCSHARES INCORPORATED
Key Statistics -- Quarterly
(in thousands, except per
share amounts) 3Q03 2Q03 3Q02
Net Interest Income $220,471 $202,441 $191,265
Provision for Loan and Lease
Losses 51,615 49,193 54,304
Securities (Losses) Gains (4,107) 6,887 1,140
Non-Interest Income 276,875 270,064 297,462
Non-Interest Expense 300,231 302,397 319,547
Restructuring Charges
(Releases) --- (5,315) ---
Income Before Income Taxes 141,393 133,117 116,016
Income Taxes 37,213 36,659 28,034
Income before cumulative
effect of change in
accounting principle 104,180 96,458 87,982
Cumulative effect of change in
accounting principle, net of
tax (13,330) --- ---
Net Income $90,850 $96,458 $87,982
Income before cumulative
effect of change in
accounting principle -
diluted $0.45 $0.42 $0.36
Net Income per common share -
diluted $0.39 $0.42 $0.36
Cash dividends declared per
common share $0.175 $0.16 $0.16
Book value per common share at
end of period $9.80 $9.64 $9.45
Average common shares - basic 228,715 228,633 239,925
Average common shares -
diluted 230,966 230,572 241,357
Return on average assets (a) 1.39 % 1.38 % 1.35 %
Return on average
shareholders' equity (b) 18.4 % 18.0 % 15.8 %
Net interest margin (c) 3.46 % 3.47 % 3.69 %
Efficiency ratio (d) 60.0 % 62.6 % 65.2 %
Average loans and leases $20,511,313 $19,247,199 $17,243,748
Average earning assets $25,564,291 $23,642,944 $20,689,767
Average core deposits (e) $15,801,300 $15,421,145 $15,069,960
Average core deposits - linked
quarter annualized growth
rate (d) 9.9 % 12.0 % 10.3 %
Average core deposits -
excluding Retail CDs $13,240,345 $12,623,311 $11,616,898
Average core deposits excl.
Retail CDs - linked quarter
annualized growth rate 19.6 % 20.5 % 15.4 %
Average total assets $29,849,828 $28,065,163 $25,788,657
Average shareholders' equity $2,241,689 $2,153,268 $2,216,088
Total assets at end of period $30,095,186 $28,303,933 $26,712,886
Total shareholders' equity at
end of period $2,243,643 $2,204,418 $2,243,937
Net charge-offs (NCOs) $32,774 $41,056 $33,785
NCOs as a % of average loans
and leases 0.64 % 0.85 % 0.78 %
Non-performing loans and
leases (NPLs) at end of
period $121,881 $120,154 $203,454
Non-performing assets (NPAs)
at end of period $137,077 $133,722 $214,129
NPAs as a % of total loans and
leases and other real
estate (OREO) 0.65 % 0.70 % 1.20 %
Allowance for loan and lease
losses (ALL) as a %
of total loans and leases
at the end of period 1.75 % 1.79 % 2.08 %
ALL as a % of NPLs 304 % 284 % 182 %
ALL as a % of NPAs 270 % 255 % 173 %
Tier 1 risk-based capital (e) (f) 8.38 % 8.32 % 8.82 %
Total risk-based capital (e) (f) 11.16 % 11.12 % 11.79 %
Tier 1 leverage (e) 7.95 % 8.26 % 9.06 %
Average equity / assets 7.51 % 7.67 % 8.59 %
Tangible equity / assets (f) 6.78 % 7.07 % 7.65 %
(a) Based on income before cumulative effect of change in accounting
principle, net of tax.
(b) On a fully taxable equivalent basis assuming a 35% tax rate. The
net interest margin measured on a non-tax equivalent basis
was 3.42% in 3Q03, 3.43% in 2Q03, and 3.67% in 3Q02.
(c) Non-interest expense less amortization of intangible assets ($0.2
million for all periods above) divided by the sum of fully taxable
equivalent net interest income and non-interest income excluding
securities (losses) gains.
(d) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, retail CDs and other domestic time deposits.
(e) Estimated at the end of September, 2003.
(f) At end of period. Tangible equity (total equity less intangible
assets) divided by tangible assets (total assets less intangible
assets).
N.M. - Not Meaningful.
HUNTINGTON BANCSHARES INCORPORATED
Key Statistics -- Quarterly
Percent Change vs.
(in thousands, except per share
amounts) 2Q03 3Q02
Net Interest Income 8.9 % 15.3 %
Provision for Loan and Lease Losses 4.9 (5.0)
Securities (Losses) Gains N.M. N.M.
Non-Interest Income 2.5 (6.9)
Non-Interest Expense (0.7) (6.0)
Restructuring Charges (Releases) N.M. ---
Income Before Income Taxes 6.2 21.9
Income Taxes 1.5 32.7
Income before cumulative effect of
change in accounting principle 8.0 18.4
Cumulative effect of change in
accounting principle, net of tax --- ---
Net Income (5.8)% 3.3 %
Income before cumulative effect of
change in accounting principle - diluted 7.1 % 25.0 %
Net Income per common share - diluted (7.1)% 8.3 %
Cash dividends declared per common share 9.4 % 9.4 %
Book value per common share at end of
period 1.7 % 3.7 %
Average common shares - basic 0.0 % (4.7)%
Average common shares - diluted 0.2 % (4.3)%
Return on average assets (a)
Return on average shareholders' equity (a)
Net interest margin (b)
Efficiency ratio (b)
Average loans and leases 6.6 % 18.9 %
Average earning assets 8.1 % 23.6 %
Average core deposits (c) 2.5 % 4.9 %
Average core deposits - linked quarter
annualized growth rate (d)
Average core deposits - excluding
Retail CDs 4.9 % 14.0 %
Average core deposits excl. Retail CDs
- linked quarter annualized growth rate
Average total assets 6.4 % 15.7 %
Average shareholders' equity 4.1 % 1.2 %
Total assets at end of period 6.3 % 12.7 %
Total shareholders' equity at end of
period 1.8 % (0.0)%
Net charge-offs (NCOs) (20.2)% (3.0)%
NCOs as a % of average loans and
leases
Non-performing loans and leases (NPLs)
at end of period 1.4 % (40.1)%
Non-performing assets (NPAs) at end of
period 2.5 % (36.0)%
NPAs as a % of total loans and leases
and other real estate (OREO)
Allowance for loan and lease losses
(ALL) as a % of total loans and leases
at the end of period
ALL as a % of NPLs
ALL as a % of NPAs
Tier 1 risk-based capital (e) (f)
Total risk-based capital (e) (f)
Tier 1 leverage (e)
Average equity / assets
Tangible equity / assets (f)
(a) Based on income before cumulative effect of change in accounting
principle, net of tax.
(b) On a fully taxable equivalent basis assuming a 35% tax rate. The
net interest margin measured on a non-tax equivalent basis was
3.42% in 3Q03, 3.43% in 2Q03, and 3.67% in 3Q02.
(c) Non-interest expense less amortization of intangible assets
($0.2 million for all periods above) divided by the sum of fully
taxable equivalent net interest income and non-interest income
excluding securities (losses) gains.
(d) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, retail CDs and other domestic time deposits.
(e) Estimated at the end of September, 2003.
(f) At end of period. Tangible equity (total equity less intangible
assets) divided by tangible assets (total assets less intangible
assets).
N.M. - Not Meaningful.
HUNTINGTON BANCSHARES INCORPORATED
Key Statistics -- YTD
Nine Months Ended
September 30, Percent
(in thousands, except per share 2003 2002 Change
amounts)
Net Interest Income $624,671 $550,395 13.5 %
Provision for Loan and Lease Losses 137,652 143,190 (3.9)
Securities Gains 3,978 2,563 N.M.
Non-Interest Income 818,665 884,816 (7.5)
Gain on Sale of Florida Operations --- 181,188 (100.0)
Non-Interest Expense 919,155 988,808 (7.0)
Restructuring Charges (Releases) (6,315) 56,184 N.M.
Income Before Income Taxes 396,822 430,780 (7.9)
Income Taxes 104,485 177,245 (41.1)
Income before cumulative effect of
change in accounting principle 292,337 253,535 15.3
Cumulative effect of change in
accounting principle, net of tax (13,330) --- ---
Net Income $279,007 $253,535 10.0 %
Income before cumulative effect of
change in accounting principle -
diluted $1.26 $1.03 22.3 %
Net Income per common share -
diluted $1.21 $1.03 17.5 %
Cash dividends declared per common
share $0.495 $0.48 3.1 %
Average common shares - basic 229,558 245,554 (6.5)%
Average common shares - diluted 231,353 247,021 (6.3)%
Return on average assets (a) 1.37 % 1.32 %
Return on average shareholders'
equity (a) 17.8 % 14.9 %
Net interest margin (b) 3.52 % 3.64 %
Efficiency ratio (c) 62.9 % 64.4 %
Average loans and leases $19,566,882 $17,050,389 14.8 %
Average earning assets $24,005,320 $20,334,822 18.1 %
Average core deposits (d) $15,401,150 $15,352,254 0.3 %
Average core deposits - excluding
Retail CDs $12,628,532 $11,627,211 8.6 %
Average total assets $28,460,315 $25,756,257 10.5 %
Average shareholders' equity $2,191,233 $2,269,450 (3.4)%
Total assets at end of period $30,095,186 $26,712,886 12.7 %
Total shareholders' equity at end
of period $2,243,643 $2,243,937 (0.0)%
Net charge-offs (NCOs) $106,666 $113,754 (6.2)%
NCOs as a % of average loans and
leases 0.73 % 0.89 %
Non-performing loans and leases
(NPLs) at end of period $121,881 $203,454 (40.1)%
Non-performing assets (NPAs) at end
of period $137,077 $214,129 (36.0)%
NPAs as a % of total loans and
leases and other real estate (OREO) 0.65 % 1.20 %
Allowance for loan and lease losses
(ALL) as a % of total loans and
leases at the end of period 1.75 % 2.08 %
ALL as a % of NPLs 304 % 182 %
ALL as a % of NPAs 270 % 173 %
Tier 1 risk-based capital (e) (f) 8.38 % 8.82 %
Total risk-based capital (e) (f) 11.16 % 11.79 %
Tier 1 leverage (e) 7.95 % 9.06 %
Average equity / assets 7.70 % 8.81 %
Tangible equity / assets (f) 6.78 % 7.65 %
(a) Based on income before cumulative effect of change in accounting
principle, net of tax.
(b) On a fully taxable equivalent basis assuming a 35% tax rate. The net
interest margin measured on a non-tax equivalent basis was 3.48% and
3.62% for the first nine months of 2003 and 2002, respectively.
(c) Non-interest expense less amortization of intangible assets
($0.6 million and $1.8 million, respectively) divided by the sum
of fully taxable equivalent net interest income and non-interest
income excluding securities gains.
(d) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, CDs under $100,000 and IRA deposits.
(e) Estimated for the end of September, 2003.
(f) At end of period. Tangible equity (total equity less intangible
assets) divided by tangible assets (total assets less intangible
assets).
N.M. - Not Meaningful.
Restatement of Prior Periods:
Periods prior to the third quarter of 2003 have been restated for
errors relating to the timing of the recognition of accounting for
loan origination fees and costs. Additionally, these prior periods
have been adjusted for other errors related to the timing of the
recognition of certain other revenues and expenses. The cumulative
effect of these items reduced retained earnings by $66 million. This
amount, in addition to the cumulative effect that resulted from the
correction of other timing errors that were reflected in the
quarterly report on Form 10-Q for the period ended June 30, 2003,
totaled $96 million. The company expects to file a restated annual
report on Form 10-K/A, restated quarterly reports on Form 10-Q/A for
the first two quarters of 2003, and its quarterly report on Form 10-Q
for the period ended September 30, 2003 in November reflecting these
restatements.
Adoption of Financial Interpretation No. 46:
On July 1, 2003, Huntington adopted FASB Interpretation No. 46,
Consolidation of Variable Interest Entities ("FIN 46"). As a result
of the adoption of this accounting standard, Huntington consolidated
a securitization trust and related entities which held, collectively,
$1 billion of indirect automobile loans and $960 million of
liabilities. Also in the implementation of FIN 46, Huntington
deconsolidated two business trusts which had been formed to issue
preferred securities which qualified as Tier 1 capital for
determining Huntington's risk-based capital ratios. The related
borrowings by the parent company are now reported in the balance
sheet under the caption "Subordinated notes" and continue to qualify
as Tier 1 capital. See Note 18 to Huntington's 2002 Amended Annual
Report for further information. The cumulative effect on retained
earnings of adopting FIN 46 was a charge, or reduction, of $13.3
million, net of applicable taxes, and is reflected in Huntington's
income statement for the third quarter
Huntington Bancshares Incorporated
Consolidated Balance Sheets
Change September
September 30, September 30, '03 vs. '02
(in thousands) 2003 2002 Amount Percent
Assets
Cash and due from banks $775,423 $1,014,713 $(239,290) (23.6)%
Interest bearing deposits
in banks 37,857 33,700 4,157 12.3
Trading account securities 415 3,225 (2,810) (87.1)
Federal funds sold and
securities purchased under
resale agreements 87,196 64,574 22,622 35.0
Loans held for sale 411,792 369,724 42,068 11.4
Securities available for
sale - at fair value 4,278,385 3,235,546 1,042,839 32.2
Investment securities -
fair value $5,235
and $9,925, respectively 5,090 9,733 (4,643) (47.7)
Total loans and direct
financing leases (a) 21,172,747 17,846,897 3,325,850 18.6
Less allowance for
loan and lease
losses 370,135 371,033 (898) (0.2)
Net loans and direct
financing leases 20,802,612 17,475,864 3,326,748 19.0
Operating lease assets 1,454,590 2,455,165 (1,000,575) (40.8)
Bank owned life insurance 917,261 875,492 41,769 4.8
Premises and equipment 332,190 339,984 (7,794) (2.3)
Goodwill and other
intangible assets 217,212 218,424 (1,212) (0.6)
Customers' acceptance
liability 9,208 18,340 (9,132) (49.8)
Accrued income and other
assets 765,955 598,402 167,553 28.0
Total Assets $30,095,186 $26,712,886 $3,382,300 12.7 %
Liabilities and
Shareholders' Equity
Total deposits (a) $18,833,856 $17,117,811 $1,716,045 10.0 %
Short-term borrowings 1,400,047 2,220,022 (819,975) (36.9)
Federal Home Loan Bank
advances 1,273,000 613,000 660,000 N.M.
Subordinated notes 1,100,324 893,168 207,156 23.2
Other long-term debt 3,960,009 2,187,750 1,772,259 81.0
Company obligated
mandatorily redeemable
preferred capital
securities of
subsidiary trusts
holding solely
junior subordinated
debentures of the
Parent Company (b) --- 300,000 (300,000) (100.0)
Bank acceptances
outstanding 9,208 18,340 (9,132) (49.8)
Accrued expenses and other
liabilities 1,275,099 1,118,858 156,241 14.0
Total Liabilities 27,851,543 24,468,949 3,382,594 13.8
Shareholders' equity
Preferred stock -
authorized 6,617,808
shares; none outstanding --- --- --- ---
Common stock -
without par value;
authorized 500,000,000
shares; issued
257,866,255 shares;
outstanding
228,869,936 and
237,544,288 shares,
respectively 2,482,370 2,486,345 (3,975) (0.2)
Less 28,996,319 and
20,321,967 treasury
shares, respectively (550,766) (391,550) (159,216) 40.7
Accumulated other
comprehensive income 25,865 60,556 (34,691) (57.3)
Retained earnings 286,174 88,586 197,588 N.M.
Total Shareholders'
Equity 2,243,643 2,243,937 (294) (0.0)
Total Liabilities and
Shareholders' Equity $30,095,186 $26,712,886 $3,382,300 12.7 %
(a) See Page 2 for detail of Loans, Leases and Deposits.
(b) In accordance with FIN 46, capital securities issued by Huntington
Capital I and II, previously regarded as consolidated subsidiary
trusts, are no longer reflected in Huntington's balance sheet. The
related parent company debt to these entities is reported in
Subordinated notes.
N.M. - Not Meaningful.
Huntington Bancshares Incorporated
Loans, Leases and Deposits
Loans and Leases (Direct Financing and Operating)
(in thousands)
September 30, 2003 September 30, 2002
By Type Balance % Balance %
Commercial $5,433,498 24.0 $5,686,255 28.0
Commercial real estate 4,046,759 17.9 3,578,627 17.6
Total Commercial and
Commercial real estate 9,480,257 41.9 9,264,882 45.6
Consumer
Automobile loans 3,708,777 16.4 2,878,282 14.2
Automobile direct financing
leases 1,687,618 7.5 633,647 3.1
Home equity 3,589,968 15.9 3,132,557 15.4
Residential mortgage 2,325,597 10.3 1,537,246 7.6
Other loans 380,530 1.6 400,283 2.0
Total Consumer 11,692,490 51.7 8,582,015 42.3
Total Loans and Direct
Financing Leases 21,172,747 93.6 17,846,897 87.9
Operating lease assets 1,454,590 6.4 2,455,165 12.1
Total $22,627,337 100.0 $20,302,062 100.0
By Business Segment (a)
Regional Banking
Central Ohio / West Virginia $5,292,963 23.4 $4,776,670 23.5
Northern Ohio 2,638,764 11.7 2,774,199 13.7
Southern Ohio / Kentucky 1,623,163 7.2 1,455,788 7.2
West Michigan 2,027,929 9.0 1,828,085 9.0
East Michigan 1,305,740 5.8 1,140,142 5.6
Indiana 741,371 3.2 682,439 3.4
Total Regional Banking 13,629,930 60.3 12,657,323 62.4
Dealer Sales 7,548,992 33.4 6,527,128 32.2
Private Financial Group 1,259,801 5.6 976,181 4.8
Treasury / Other 188,614 0.7 141,430 0.6
Total $22,627,337 100.0 $20,302,062 100.0
Deposit Liabilities
(in thousands)
September 30, 2003 September 30, 2002
By Type Balance % Balance %
Demand deposits
Non-interest bearing $3,003,679 15.9 $2,949,065 17.2
Interest bearing 6,425,529 34.1 5,203,413 30.4
Savings deposits 2,999,620 15.9 2,849,060 16.6
Retail certificates of deposit 2,483,875 13.2 3,370,427 19.7
Other domestic time deposits 638,278 3.4 700,655 4.1
Total Core Deposits (b) 15,550,981 82.5 15,072,620 88.0
Domestic time deposits of
$100,000 or more 843,528 4.5 754,115 4.4
Brokered time deposits and
negotiable CDs 1,836,670 9.8 979,075 5.7
Foreign time deposits 602,677 3.2 312,001 1.9
Total Deposits $18,833,856 100.0 $17,117,811 100.0
By Business Segment (a)
Regional Banking
Central Ohio / West Virginia $5,422,728 28.8 $5,619,537 32.8
Northern Ohio 3,622,523 19.2 3,560,813 20.8
Southern Ohio / Kentucky 1,436,834 7.6 1,344,600 7.9
West Michigan 2,528,965 13.4 2,423,150 14.2
East Michigan 2,000,855 10.6 1,924,362 11.2
Indiana 661,068 3.6 649,568 3.8
Total Regional Banking 15,672,973 83.2 15,522,030 90.7
Dealer Sales 64,875 0.3 47,684 0.3
Private Financial Group 1,116,911 5.9 788,456 4.6
Treasury / Other (c) 1,979,097 10.6 759,641 4.4
Total Deposits $18,833,856 100.0 $17,117,811 100.0
(a) Prior period amounts have been adjusted to reflect organizational
changes and to conform to the current period's presentation.
(b) Core deposits include non-interest bearing and interest bearing demand
deposits, savings deposits, retail CDs, and other domestic time
deposits.
(c) Comprised largely of brokered deposits and negotiable CDs.
Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets and Net Interest Margin
Analysis
(in millions)
Quarterly Average Balances
2003 2002
Fully Taxable Equivalent
Basis (a) Third Second First Fourth Third
Assets
Interest bearing deposits in
banks $33 $45 $37 $34 $35
Trading account securities 11 23 12 9 7
Federal funds sold and
securities purchased
under resale agreements 103 69 57 83 76
Mortgages held for sale 898 602 459 467 267
Securities:
Taxable 3,646 3,382 3,014 3,029 2,953
Tax exempt 362 275 274 234 108
Total Securities 4,008 3,657 3,288 3,263 3,061
Loans and leases: (b)
Commercial 5,380 5,626 5,623 5,555 5,504
Real Estate
Construction 1,258 1,239 1,187 1,070 1,247
Commercial 2,744 2,621 2,565 2,601 2,315
Consumer
Automobile loans
and leases 5,184 4,136 4,085 3,699 3,225
Home equity 3,503 3,359 3,238 3,166 3,060
Residential
mortgage 2,075 1,887 1,832 1,694 1,486
Other loans 367 379 389 399 406
Total Consumer 11,129 9,761 9,544 8,958 8,177
Total loans and leases 20,511 19,247 18,919 18,184 17,243
Allowance for loan and lease
losses 363 338 349 386 367
Net loans and leases 20,148 18,909 18,570 17,798 16,876
Total earning assets 25,564 23,643 22,772 22,040 20,689
Operating lease assets 1,565 1,802 2,076 2,328 2,597
Cash and due from banks 804 735 740 717 763
Intangible assets 218 218 218 225 202
All other assets 2,062 2,005 1,967 1,937 1,905
Total Assets $29,850 $28,065 $27,424 $26,861 $25,789
Liabilities and Shareholders'
Equity
Core deposits
Non-interest bearing
deposits $3,218 $3,046 $2,958 $2,955 $2,868
Interest bearing demand
deposits 6,558 6,100 5,597 5,305 5,269
Savings deposits 2,808 2,804 2,771 2,746 2,766
Retail certificates of
deposit 2,561 2,798 2,963 3,305 3,453
Other domestic time
deposits 656 673 682 702 714
Total core deposits 15,801 15,421 14,971 15,013 15,070
Domestic time deposits of
$100,000 or more 803 808 769 730 777
Brokered time deposits and
negotiable CDs 1,421 1,241 1,155 1,057 907
Foreign time deposits 536 426 514 409 370
Total deposits 18,561 17,896 17,409 17,209 17,124
Short-term borrowings 1,393 1,635 1,947 2,115 1,793
Federal Home Loan Bank
advances 1,273 1,267 1,216 848 228
Subordinated notes and other
long-term debt,
including preferred
capital securities 5,197 4,010 3,570 3,380 3,281
Total interest bearing
liabilities 23,206 21,762 21,184 20,597 19,558
All other liabilities 1,184 1,104 1,114 1,144 1,147
Shareholders' equity 2,242 2,153 2,168 2,165 2,216
Total Liabilities and
Shareholders' Equity $29,850 $28,065 $27,424 $26,861 $25,789
Net interest rate spread
Impact of non-interest
bearing funds on margin
Net Interest Margin
(a) Fully taxable equivalent yields are calculated assuming a 35% tax
rate. See page 5 for the fully taxable equivalent adjustment.
(b) Individual loan components include applicable fees.
Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets and Net Interest Margin
Analysis
(in millions)
Quarterly Average Rates (c)
2003 2002
Fully Taxable Equivalent
Basis (a) Third Second First Fourth Third
Assets
Interest bearing deposits in
banks 1.38 % 1.58 % 1.61 % 1.93 % 2.06 %
Trading account securities 4.70 4.15 4.63 3.37 4.95
Federal funds sold and
securities purchased
under resale agreements 1.92 2.19 2.14 1.83 1.40
Mortgages held for sale 5.16 5.42 5.56 5.84 6.57
Securities:
Taxable 4.23 4.59 5.17 5.53 6.01
Tax exempt 6.85 7.29 7.22 7.15 7.52
Total Securities 4.46 4.79 5.34 5.64 6.07
Loans and leases: (b)
Commercial 4.84 5.26 5.40 5.59 5.69
Real Estate
Construction 4.21 4.13 4.06 4.15 4.60
Commercial 5.21 5.25 5.60 5.79 6.17
Consumer
Automobile loans
and leases 6.51 6.78 7.40 7.83 8.50
Home equity 5.09 5.02 5.17 5.64 5.83
Residential
mortgage 5.32 5.76 5.95 6.06 6.27
Other loans 7.38 7.22 6.60 7.21 7.66
Total Consumer 5.87 5.99 6.33 6.69 7.05
Total loans and leases 5.41 5.56 5.82 6.08 6.32
Allowance for loan and lease
losses
Net loans and leases
Total earning assets 5.23 % 5.42 % 5.72 % 5.99 % 6.26 %
Operating lease assets
Cash and due from banks
Intangible assets
All other assets
Total Assets
Liabilities and
Shareholders' Equity
Core deposits
Non-interest bearing
deposits
Interest bearing demand
deposits 1.04 % 1.39 % 1.44 % 1.55 % 1.75 %
Savings deposits 1.35 1.55 1.85 1.69 1.77
Retail certificates of
deposit 3.51 3.75 3.87 4.36 4.37
Other domestic time
deposits 3.89 3.85 4.00 4.19 4.37
Total core
deposits 1.76 2.09 2.28 2.51 2.65
Domestic time deposits of
$100,000 or more 2.32 2.55 2.76 2.64 3.27
Brokered time deposits and
negotiable CDs 1.63 1.79 1.98 2.25 2.37
Foreign time deposits 0.85 1.03 1.06 1.29 1.43
Total deposits 1.75 2.06 2.24 2.46 2.63
Short-term borrowings 0.85 1.06 1.16 1.40 1.44
Federal Home Loan Bank
advances 1.81 1.76 1.84 1.99 2.02
Subordinated notes and other
long-term debt,
including preferred
capital securities 2.78 2.85 3.12 3.52 3.70
Total interest bearing
liabilities 1.93 % 2.11 % 2.26 % 2.51 % 2.70 %
All other liabilities
Shareholders' equity
Total Liabilities and
Shareholders' Equity
Net interest rate spread 3.30 % 3.31 % 3.46 % 3.48 % 3.56 %
Impact of non-interest
bearing funds on margin 0.16 0.16 0.17 0.14 0.13
Net Interest Margin 3.46 % 3.47 % 3.63 % 3.62 % 3.69 %
(a) Fully taxable equivalent yields are calculated assuming a 35% tax
rate. See page 5 for the fully taxable equivalent adjustment.
(b) Individual loan components include applicable fees.
(c) Loan and deposit average rates include impact of applicable
derivatives.
Huntington Bancshares Incorporated
Consolidated YTD Average Balance Sheets and Net Interest Margin
Analysis
(in millions)
Nine-Month Nine-Month
Average Balances Average Rates (c)
Fully Taxable Equivalent Basis (a) 2003 2002 2003 2002
Assets
Interest bearing deposits in banks $38 $33 1.53 % 2.14 %
Trading account securities 16 6 4.41 4.48
Federal funds sold and securities
purchased
under resale agreements 76 69 2.05 1.45
Mortgages held for sale 654 274 5.32 6.66
Securities:
Taxable 3,350 2,801 4.63 6.25
Tax exempt 304 102 7.09 7.65
Total Securities 3,654 2,903 4.83 6.30
Loans and leases: (b)
Commercial 5,542 5,720 5.17 5.64
Real Estate
Construction 1,229 1,265 4.22 4.71
Commercial 2,644 2,303 5.31 6.33
Consumer
Automobile loans and
leases 4,474 2,918 6.86 8.62
Home equity 3,367 3,057 5.09 6.02
Residential mortgage 1,932 1,351 5.66 6.79
Other loans 379 436 7.06 8.13
Total Consumer 10,152 7,762 6.05 7.25
Total loans and leases 19,567 17,050 5.59 6.40
Allowance for loan and lease losses 350 365
Net loans and leases 19,217 16,685
Total earning assets 24,005 20,335 5.45 % 6.36 %
Operating lease assets 1,812 2,804
Cash and due from banks 760 768
Intangible assets 218 303
All other assets 2,015 1,911
Total Assets $28,460 $25,756
Liabilities and Shareholders' Equity
Core deposits
Non-interest bearing deposits $3,063 $2,882
Interest bearing demand deposits 6,100 5,113 1.28 % 1.78 %
Savings deposits 2,795 2,888 1.58 1.80
Retail certificates of deposit 2,773 3,725 3.72 4.64
Other domestic time deposits 670 744 3.91 4.55
Total core deposits 15,401 15,352 2.04 2.80
Domestic time deposits of $100,000 or
more 793 888 2.54 3.14
Brokered time deposits and negotiable
CDs 1,274 621 1.79 2.43
Foreign time deposits 492 312 0.98 1.55
Total deposits 17,960 17,173 2.01 2.78
Short-term borrowings 1,656 1,726 1.04 1.64
Federal Home Loan Bank advances 1,253 88 1.80 2.49
Subordinated notes and other long-
term debt, including preferred
capital securities 4,265 3,362 2.89 3.71
Total interest bearing
liabilities 22,071 19,467 2.09 % 2.84 %
All other liabilities 1,135 1,138
Shareholders' equity 2,191 2,269
Total Liabilities and Shareholders'
Equity $28,460 $25,756
Net interest rate spread 3.36 % 3.52 %
Impact of non-interest bearing funds
on margin 0.16 0.12
Net Interest Margin 3.52 % 3.64 %
(a) Fully taxable equivalent yields are calculated assuming a 35% tax
rate. See page 6 for the fully taxable equivalent adjustment.
(b) Individual loan components include applicable fees.
(c) Loan and deposit average rates include impact of applicable
derivatives.
SOURCE Huntington Bancshares Incorporated
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CONTACT:
Analysts, Jay Gould, +1-614-480-4060, Susan
Stuart, +1-614-480-3878, or Media, Jeri Grier, +1-614-480-5413,
Trasee Carr, +1-614-480-5407, all of Huntington Bancshares
Incorporated
