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| Huntington Bancshares Reports Third Quarter 2002 Results |
* Reported Earnings Per Share of $0.41
* Operating Earnings Per Share of $0.34 Excluding Gain
* 11% Annualized Increase in Managed Loans
* 10% Annualized Increase in Core Deposits
* 3% Decline in Net Charge-offs
* 4% Decline in Non-performing Assets
* 2.00% Loan Loss Reserve Ratio Maintained
COLUMBUS, Ohio, Oct. 17 /PRNewswire-FirstCall/ -- Huntington Bancshares
Incorporated (Nasdaq: HBAN) ( http://www.huntington.com ) today reported third
quarter earnings of $98.1 million, or $0.41 per common share. This compares
with earnings of $42.6 million, or $0.17 per common share, in the year-ago
third quarter, and $82.2 million, or $0.33 per common share, in the second
quarter of 2002. Year-to-date earnings in 2002 were $278.1 million, or
$1.13 per common share, compared with $112.9 million, or $0.45 per common
share, in the year-ago nine-month period.
Third quarter 2002 operating earnings were $82.2 million, or $0.34 per
common share, excluding a $24.5 million pre-tax ($16.0 million after tax) gain
on the previously announced restructuring of Huntington's ownership interest
in Huntington Merchant Services, L.L.C. These results were up 1% and 3%,
respectively, from second quarter operating earnings of $81.7 million, or
$0.33 per common share, and up 2% and 6%, respectively, compared with the
year-ago quarter's operating earnings of $80.9 million, or $0.32 per share.
Prior period operating earnings exclude one-time restructuring charges and the
impact of the sale of the Florida banking operations and other non-operating
items (see Basis of Discussion - Operating Earnings below). Operating
earnings for the first nine months of 2002 were $243.4 million, or $0.99 per
common share, up 7% and 9%, respectively, from the comparable prior-year
period operating earnings of $228.0 million, or $0.91 per common share.
"Huntington continued to build momentum in the third quarter as evidenced
in a number of key financial performance indicators," said Thomas Hoaglin,
chairman, president and chief executive officer. "Despite a contraction in
the net interest margin, net interest income increased 3% from the second
quarter as loan and deposit growth remained strong. Mortgage banking income
declined from the second quarter due to a $6.6 million pre-tax mortgage
servicing impairment, reflecting heavy prepayment and refinancing activity.
Nevertheless, excluding mortgage banking income, non-interest income was up
4%, led by a 6% increase in deposit service charges."
"We are also encouraged by the fact that credit quality trends continued
to improve," Hoaglin said. "Net charge-offs declined for the third
consecutive quarter, and non-performing assets declined for the second
consecutive quarter. Importantly, the inflow of new non-performing assets
declined 35% from the second quarter level. Despite this improvement, given
the continued economic uncertainty, we maintained the loan loss reserve ratio
at 2.00%. As a result, and reflecting the strong loan growth, loan loss
provision expense was up significantly from last quarter, and exceeded net
charge-offs by 38%. We remain cautiously optimistic for credit quality trends
assuming no further significant deterioration in the economy."
"We also took a number of important strategic steps in the third quarter
to enhance our portfolio of businesses and to strengthen our capabilities," he
added. "As previously announced, to better utilize resources and maintain our
focus on our core businesses and markets, we sold the Florida-based J. Rolfe
Davis Insurance Agency and restructured our ownership interest in Huntington
Merchant Services. To broaden our product offering to commercial customers
and complement our existing equipment leasing business, we purchased LeaseNet
Group, Inc., a small privately held equipment leasing company specializing in
the financing of network server class equipment. We also continued to invest
in customer service technology with our enhanced teller platform technology
now in 64% of our branches and all remaining branches targeted for
installation by year-end. On the personnel side, in August we appointed a new
head of small business banking. We also continued our investment in employees
by establishing our second company-wide employee stock option grant."
"Lastly, this past quarter we formally announced a new vision for the
company and our employees, which is to be an essential partner to our
customers. This reinforces the concepts of employee empowerment and customer
service re-dedication initiated just over a year ago. It's very rewarding to
see these principles evident in this quarter's financial performance and
achievements," Hoaglin concluded.
Basis of discussion - Operating Earnings
Reported results since the 2001 second quarter have been significantly
impacted by a number of non-operating items, primarily related to the
strategic restructuring announced in July 2001 and the subsequent sale of the
Florida banking operations in the 2002 first quarter. Therefore, to better
understand comparable underlying trends, the following discussion is presented
on an operating basis. Operating earnings exclude the impact of restructuring
and other charges, the gain from the sale of Florida banking operations and
its related run-rate impact from prior periods, and other non-operating items.
(Please refer to the schedules beginning on page 9, as well as the 2002 third
quarter's Quarterly Financial Review for schedules reconciling reported with
operating earnings and additional schedules excluding the impact of the
Florida operations.)
Discussion of Results
Third quarter 2002 results compared with sequential second quarter
performance on an operating basis reflected:
* 2% increase in revenue excluding securities gains
- 3% increase in net interest income
* 4.26% net interest margin
* 11% annualized growth in managed loans
* 10% annualized growth in core deposits
- 1% decline in non-interest income including the impact of a
$6.6 million mortgage servicing rights impairment
* 53.1% efficiency ratio, improved slightly
* Improved credit quality and a strong allowance for loan losses
- 5 basis point decline in the net charge-off ratio to 0.83% excluding
net charge-offs on exited portfolios
- $9.1 million, or 4%, decline in non-performing assets (NPAs) and 35%
decline in the inflow of new NPAs
- 2.00% allowance for loan losses ratio maintained
- NPA coverage ratio increased to 191% from 176%
* Maintained strong capital position
- 8.00% tangible common equity ratio
- Repurchased 6.2 million shares, bringing program-to-date repurchases
to 15.0 million shares or $294 million
Net interest income increased $7.6 million, or 3%, from the second quarter
reflecting a $797 million, or 4%, increase in average earning assets due to
growth in both loans and securities, and a 1% decrease in the margin. The net
interest margin declined to 4.26% from 4.30% driven by a flattening yield
curve and mortgage loan origination and prepayment activity. Compared with
the year-ago quarter, net interest income was up $19.0 million, or 8%,
reflecting the combination of a 5% increase in average earning assets and a 9
basis point increase in the net interest margin from 4.17%.
Average managed loans increased 11% on an annualized basis from the second
quarter. Loan generation continued to be positively impacted by strong growth
in consumer loans. Average residential mortgages grew $80.7 million, or 81%
annualized, with average home equity loans and lines of credit up $151.0
million, or 18% annualized. This reflected continued strong demand for
residential mortgages, refinancing activity, and the promotion of adjustable
mortgage products. In addition, average managed auto loans and leases
increased $229.6 million, or 14% annualized, reflecting record auto industry
sales in the third quarter and a new quarterly record level of production for
the Dealer Sales Group. Commercial real estate loans increased $92.9 million,
or 10% annualized. These increases were partially offset by a $111.4 million,
or 8% annualized, decline in commercial loans. Compared with the year-ago
quarter, average managed loans were up 7%.
Average core deposits increased $385.4 million, or 10% annualized, from
the second quarter, reflecting strong inflows in both interest bearing and
non-interest bearing demand deposits. Within interest bearing deposits, money
market accounts showed the strongest growth. Deposit inflow continued to be
influenced, in part, by recent turbulence in the financial markets, but also
by the success of sales and deposit growth programs. Compared with the year-
ago quarter, average core deposits were up 12%.
Non-interest income, excluding securities gains, was down $0.6 million, or
1%, from the second quarter. This reflected a $4.4 million decline in mortgage
banking income as a result of a $6.6 million mortgage servicing rights
impairment. Without the impairment, mortgage-banking income would have
increased 20%.
Excluding mortgage banking, non-interest income was up $3.8 million, or
4%, from the second quarter driven primarily by a $2.1 million, or 6%,
increase in deposit service charges. Trust income was down $1.3 million, or
8%, and brokerage and insurance income was down $1.0 million, or 7%, both
declines driven by market conditions. Other income was up $3.7 million from
the second quarter reflecting an increase in trading results and customer
derivative sales. Compared with the year-ago quarter, non-interest income on
an operating basis and excluding securities gains was up 3%, or 12% excluding
a 55% decline in mortgage banking income. Contributing to this year-over-year
increase were a 12% increase in deposit service charges and a 20% increase in
bank owned life insurance, with other service charges and other income up 14%
and 27%, respectively.
Non-interest expense was up $3.5 million, or 2%, from the second quarter
driven by a $3.9 million increase in personnel costs, primarily related to
building regional banking and increased activity in mortgage banking and
dealer sales. Equipment and occupancy costs were up $0.9 million. These
increases were partially offset by a $1.5 million decrease in outside data
processing and other services. Compared with the year-ago quarter, operating
non-interest expense was up $6.7 million, or 4%, primarily reflecting a $5.6
million, or 6%, increase in personnel costs and a $1.8 million, or 31%,
increase in marketing costs. These costs were partially offset by a $2.4
million decrease in intangible amortization due to a reduction in amortization
of non-Florida related intangibles. The third quarter efficiency ratio
improved slightly to 53.1% from 53.2% in the second quarter and improved from
54.0% in the year-ago quarter.
Net charge-offs were $43.7 million, down 3%, in the third quarter and
represented an annualized 0.87% of average loans. Excluding the impact of net
charge-offs on exited portfolios for which reserves were previously
established, net charge-offs represented 0.83% of average loans, down from
0.88% in the second quarter. The over 30-day delinquency ratio for consumer
loans decreased 16 basis points to 2.10% at the end of the third quarter from
2.26% at the end of the second quarter.
Loan loss provision expense in the third quarter was $60.2 million,
exceeding net charge-offs by $16.5 million, or 38%. The September 30, 2002,
allowance for loan losses as a percent of period-end loans was maintained at
2.00% and was significantly higher than 1.77% at the end of the year-ago third
quarter. The allowance for loan losses as a percent of non-performing assets
increased to 191% from 176% in the second quarter and 166% from the year ago
quarter.
Non-performing assets at September 30, 2002, were $214.1 million, or 1.05%
of period-end loans and other real estate owned, down 4% from $223.2 million,
or 1.14%, at June 30, 2002. The inflow of new non-performing assets declined
$25.8 million to $47.2 million in the third quarter. Non-performing assets
continue to be concentrated in the manufacturing and services sectors
reflecting weakness in Midwest manufacturing.
At September 30, 2002, the tangible equity to assets ratio was 8.00%, down
from 8.51% at June 30, 2002, reflecting the impact of the company's share
repurchase program and the growth in assets.
2002 Outlook
"Given our financial performance for the first nine-months, and assuming
continuing positive trends and no significant change in the economy or market
environment, we believe earnings per share will be $0.34-$0.35 in the fourth
quarter. This is within the range for full-year 2002 operating earnings
guidance originally given last January," Hoaglin said.
Conference Call / Webcast Information
Huntington's senior management will host an earnings conference call
today, October 17, at 12:00 p.m. EDT. Participating in today's call will be
Tom Hoaglin, Chairman, President and CEO; Mike McMennamin, Vice Chairman and
CFO; and Nick Stanutz, Executive Vice President - Dealer Sales Group. 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) 782-3741. Slides will be
available at http://www.huntington-ir.com just prior to 12:00 p.m. EDT on October 17,
2002, 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, 2002,
at (800) 642-1687; conference ID 5970472.
The Quarterly Financial Review as well as the slides for the conference
call will be filed, along with management's comments, with the Securities and
Exchange Commission on Form 8-K.
About Huntington
Huntington Bancshares Incorporated is a $27 billion regional bank holding
company headquartered in Columbus, Ohio. Through its affiliated companies,
Huntington has more than 136 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 900 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.
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 for the
year ended December 31, 2001, 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.
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED RESULTS OF OPERATIONS
Three Months Ended September 30, 2002
Restructuring
(in thousands, except per Reported and Florida Operating
share amounts) Earnings Other Items(b) Earnings
Items(a)
Net Interest Income $249,416 $--- $--- $249,416
Provision for Loan Losses 60,249 --- --- 60,249
Securities Gains 1,140 --- --- 1,140
Non-Interest Income 113,692 --- --- 113,692
Gain on Sale of Florida
Operations --- --- --- ---
Merchant Services Gain 24,550 24,550 --- ---
Non-Interest Expense 193,723 --- --- 193,723
Special Charges --- --- --- ---
Income Before Income Taxes 134,826 24,550 --- 110,276
Income Taxes 36,703 8,593 --- 28,110
Net Income $98,123 $15,957 $--- $82,166
Net Income per Common
Share -- Diluted $0.41 $0.07 $0.00 $0.34
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED RESULTS OF OPERATIONS
Nine Months Ended September 30, 2002
Restructuring
(in thousands, except per Reported and Florida Operating
share amounts) Earnings Other Items(b) Earnings
Items(a)
Net Interest Income $734,100 $--- $9,724 $724,376
Provision for Loan Losses 169,922 --- 5,186 164,736
Securities Gains 2,563 --- --- 2,563
Non-Interest Income 356,333 --- 13,343 342,990
Gain on Sale of Florida
Operations 175,344 175,344 --- ---
Merchant Services Gain 24,550 24,550 --- ---
Non-Interest Expense 593,169 --- 20,210 572,959
Special Charges 56,184 56,184 --- ---
Income Before Income Taxes 473,615 143,710 (2,329) 332,234
Income Taxes 195,525 107,482 (804) 88,847
Net Income $278,090 $36,228 $(1,525) $243,387
Net Income per Common
Share -- Diluted $1.13 $0.15 ($0.01) $0.99
Three Months Ended September 30, 2001
Restructuring
(in thousands, except per Reported and Florida Operating
share amounts) Earnings Other Items(b) Earnings
Items(a)
Net Interest Income $249,787 $--- $19,325 $230,462
Provision for Loan Losses 49,559 --- 3,532 46,027
Securities (Losses) Gains 1,059 --- --- 1,059
Non-Interest Income 129,397 --- 19,357 110,040
Non-Interest Expense 228,890 --- 41,836 187,054
Special Charges 50,817 50,817 --- ---
Income Before Income Taxes 50,977 (50,817) (6,686) 108,480
Income Taxes 8,348 (17,786) (1,453) 27,587
Net Income $42,629 $(33,031) $(5,233) $80,893
Net Income per Common
Share -- Diluted $0.17 ($0.13) ($0.02) $0.32
Nine Months Ended September 30, 2001
Restructuring
(in thousands, except per Reported and Florida Operating
share amounts) Earnings Other Items(b) Earnings
Items(a)
Net Interest Income $740,944 $--- $62,581 $678,363
Provision for Loan Losses 200,518 71,718 11,127 117,673
Securities (Losses) Gains 634 (5,250) --- 5,884
Non-Interest Income 375,749 --- 58,275 317,474
Non-Interest Expense 696,276 --- 122,962 573,314
Special Charges 84,814 84,814 --- ---
Income Before Income Taxes 135,719 (161,782) (13,233) 310,734
Income Taxes 22,847 (56,624) (3,313) 82,784
Net Income $112,872 $(105,158) $(9,920) $227,950
Net Income per Common
Share -- Diluted $0.45 ($0.42) ($0.04) $0.91
(a) Includes charges related to the July 2002 Merchant Services gain, the
February 2002 gain on sale of Florida operations, and Huntington's
strategic refocusing plan.
(b) Includes results of Florida operations through February 15, 2002, and
the impact of J. Rolfe Davis Insurance Agency through June 30, 2002.
HUNTINGTON BANCSHARES INCORPORATED
Key Statistics
Reported Basis
(in thousands, except per
share amounts) 3Q02 2Q02 3Q01
Net Interest Income $249,416 $241,859 $249,787
Provision for Loan Losses 60,249 53,892 49,559
Securities Gains 1,140 966 1,059
Non-Interest Income 113,692 117,014 129,397
Merchant Services Gain 24,550 --- ---
Non-Interest Expense 193,723 192,060 228,890
Special Charges --- --- 50,817
Income Before Income Taxes 134,826 113,887 50,977
Income Taxes 36,703 31,647 8,348
Net Income $98,123 $82,240 $42,629
Net Income per common share -
diluted $0.41 $0.33 $0.17
Cash dividends declared per
common share $0.16 $0.16 $0.16
Book value per common share at
end of period $9.85 $9.68 $9.57
Average common shares - basic 239,925 246,106 251,148
Average common shares -
diluted 241,357 247,867 252,203
Return on average assets 1.51 % 1.32 % 0.60 %
Return on average
shareholders' equity 17.1 % 14.1 % 7.1 %
Net interest margin 4.26 % 4.30 % 4.04 %
Efficiency ratio 53.2 % 53.3 % 57.5 %
Average loans $19,989,415 $19,530,489 $21,347,885
Average loans - managed (a) $21,133,860 $20,700,079 $22,625,693
Average loans - managed -
linked quarter
annualized growth rate (a) 11.3 % (18.0)% 4.6 %
Average earning assets $23,435,434 $22,638,248 $24,826,546
Average core deposits (b) $15,070,096 $14,684,719 $17,848,690
Average core deposits - linked
quarter annualized growth
rate (b) 10.4 % (39.6)% 12.3 %
Average total assets -
reported $25,777,810 $24,957,208 $27,988,386
Average shareholders' equity $2,277,898 $2,342,963 $2,375,358
Total assets at end of period $26,739,012 $25,381,416 $28,316,175
Total shareholders' equity at
end of period $2,339,786 $2,351,860 $2,404,406
Net charge-offs (NCOs) - incl
exited businesses $43,700 $44,900 $39,743
NCOs as a % of average loans -
incl exited businesses 0.87 % 0.92 % 0.74 %
NCOs - excluding exited
businesses $41,843 $42,515 $32,557
NCOs as a % of average loans -
excluding exited businesses 0.83 % 0.88 % 0.61 %
Non-performing loans (NPLs) $203,454 $212,091 $202,011
Non-performing assets (NPAs) $214,129 $223,237 $210,061
NPAs as a % of total loans and
other real estate (OREO) 1.05 % 1.14 % 0.97 %
Allowance for loan losses
(ALL) as a % of total loans
at the end
of period 2.00 % 2.00 % 1.67 %
ALL as a % of NPLs 200.7 % 185.3 % 178.4 %
ALL as a % of NPAs 190.7 % 176.1 % 171.6 %
Tier 1 risk-based capital (c) (d) 9.13 % 9.72 % 6.97 %
Total risk-based capital (c) (d) 12.09 % 12.75 % 10.13 %
Tier 1 leverage (c) 9.41 % 9.94 % 7.10 %
Average equity / assets 8.84 % 9.39 % 8.49 %
Tangible equity / assets (d) 8.00 % 8.51 % 6.08 %
(a) Includes securitized indirect auto loans. Growth percentages
normalized for asset securitizations, loan sales, and acquisition of
LeaseNet.
(b) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, CDs under $100,000 and IRA deposits.
(c) Estimated.
(d) 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
Reported Basis
Percent change vs.
(in thousands, except per share amounts) 2Q02 3Q01
Net Interest Income 3.1 % (0.1)%
Provision for Loan Losses 11.8 21.6
Securities Gains 18.0 7.6
Non-Interest Income (2.8) (12.1)
Merchant Services Gain --- ---
Non-Interest Expense 0.9 (15.4)
Special Charges --- (100.0)
Income Before Income Taxes 18.4 164.5
Income Taxes 16.0 339.7
Net Income 19.3 % 130.2 %
Net Income per common share - diluted 24.2 % 141.2 %
Cash dividends declared per common
share --- % --- %
Book value per common share at end of
period 1.8 % 2.9 %
Average common shares - basic (2.5)% (4.5)%
Average common shares - diluted (2.6)% (4.3)%
Return on average assets
Return on average shareholders'
equity
Net interest margin
Efficiency ratio
Average loans 2.3 % (6.4)%
Average loans - managed (a) 2.1 % (6.6)%
Average loans - managed - linked
quarter annualized growth rate (a)
Average earning assets 3.5 % (5.6)%
Average core deposits (b) 2.6 % (15.6)%
Average core deposits - linked
quarter annualized growth rate (b)
Average total assets - reported 3.3 % (7.9)%
Average shareholders' equity (2.8)% (4.1)%
Total assets at end of period 5.3 % (5.6)%
Total shareholders' equity at end of
period (0.5)% (2.7)%
Net charge-offs (NCOs) - incl exited
businesses (2.7)% 10.0 %
NCOs as a % of average loans - incl
exited businesses
NCOs - excluding exited businesses (1.6)% 28.5 %
NCOs as a % of average loans -
excluding exited businesses
Non-performing loans (NPLs) (4.1)% 0.7 %
Non-performing assets (NPAs) (4.1)% 1.9 %
NPAs as a % of total loans and other
real estate (OREO)
Allowance for loan losses (ALL) as a
% of total loans at the end of period
ALL as a % of NPLs
ALL as a % of NPAs
Tier 1 risk-based capital (c) (d)
Total risk-based capital (c) (d)
Tier 1 leverage (c)
Average equity / assets
Tangible equity / assets (d)
(a) Includes securitized indirect auto loans. Growth percentages
normalized for asset securitizations, loan sales, and acquisition of
LeaseNet.
(b) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, CDs under $100,000 and IRA deposits.
(c) Estimated.
(d) 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
Operating Basis (a)
(in thousands, except per
share amounts) 3Q02 2Q02 3Q01
Net Interest Income $249,416 $241,859 $230,462
Provision for Loan Losses 60,249 53,892 46,027
Securities Gains 1,140 966 1,059
Non-Interest Income 113,692 114,304 110,040
Non-Interest Expense 193,723 190,185 187,054
Income Before Income Taxes 110,276 113,052 108,480
Income Taxes 28,110 31,344 27,587
Net Income $82,166 $81,708 $80,893
Net Income per common share -
diluted $0.34 $0.33 $0.32
Return on average assets 1.26 % 1.31 % 1.30 %
Return on average
shareholders' equity 14.3 % 14.0 % 13.5 %
Net interest margin 4.26 % 4.30 % 4.17 %
Efficiency ratio 53.1 % 53.2 % 54.0 %
Average loans $19,989,415 $19,530,489 $18,736,442
Average loans - managed (b) $21,133,860 $20,700,079 $20,014,250
Average loans - managed -
linked quarter
annualized growth rate (b) 11.3 % 7.7 % 2.9 %
Average earning assets $23,435,434 $22,638,248 $22,216,102
Average core deposits (c) $15,070,096 $14,684,719 $13,498,119
Average core deposits - linked
quarter annualized growth
rate (c) 10.4 % 18.8 % 13.9 %
Average total assets $25,777,810 $24,957,208 $24,733,038
Average shareholders' equity $2,277,898 $2,342,963 $2,375,358
Net charge-offs (NCOs) - incl
exited businesses $43,700 $44,900 $36,082
NCOs as a % of average loans -
incl exited businesses 0.87 % 0.92 % 0.76 %
NCOs - excluding exited
businesses $41,843 $42,515 $28,896
NCOs as a % of average loans -
excluding exited businesses 0.83 % 0.88 % 0.62 %
Non-performing loans (NPLs) $203,454 $212,091 $193,113
Non-performing assets (NPAs) $214,129 $223,237 $201,163
NPAs as a % of total loans and
other real estate (OREO) 1.05 % 1.14 % 1.06 %
Allowance for loan losses
(ALL) as a % of total loans
at the end of period 2.00 % 2.00 % 1.77 %
ALL as a % of NPLs 200.7 % 185.3 % 173.4 %
ALL as a % of NPAs 190.7 % 176.1 % 166.4 %
(a) Reported basis adjusted to exclude the July 2002 Merchant Services
gain, the results of the Florida banking operations and the impact
from the February 2002 sale, the July 2002 sale of J. Rolfe Davis
Insurance Agency, Inc., and restructuring and other charges.
(b) Includes securitized indirect auto loans. Growth percentages
normalized for asset securitizations, loan sales, and acquisition of
LeaseNet.
(c) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, CDs under $100,000 and IRA deposits.
N.M. - Not Meaningful.
HUNTINGTON BANCSHARES INCORPORATED
Key Statistics
Operating Basis (a)
Percent change vs.
(in thousands, except per share amounts) 2Q02 3Q01
Net Interest Income 3.1 % 8.2 %
Provision for Loan Losses 11.8 30.9
Securities Gains 18.0 7.6
Non-Interest Income (0.5) 3.3
Non-Interest Expense 1.9 3.6
Income Before Income Taxes (2.5) 1.7
Income Taxes (10.3) 1.9
Net Income 0.6 % 1.6 %
Net Income per common share - diluted 3.0 % 6.3 %
Return on average assets
Return on average shareholders'
equity
Net interest margin
Efficiency ratio
Average loans 2.3 % 6.7 %
Average loans - managed (b) 2.1 % 5.6 %
Average loans - managed - linked
quarter
annualized growth rate (b)
Average earning assets 3.5 % 5.5 %
Average core deposits (c) 2.6 % 11.6 %
Average core deposits - linked
quarter annualized growth rate (c)
Average total assets 3.3 % 4.2 %
Average shareholders' equity (2.8)% (4.1)%
Net charge-offs (NCOs) - incl exited
businesses (2.7)% 21.1 %
NCOs as a % of average loans - incl
exited businesses
NCOs - excluding exited businesses (1.6)% 44.8 %
NCOs as a % of average loans -
excluding exited businesses
Non-performing loans (NPLs) (4.1)% 5.4 %
Non-performing assets (NPAs) (4.1)% 6.4 %
NPAs as a % of total loans and other
real estate (OREO)
Allowance for loan losses (ALL) as a
% of total loans at the end of
period
ALL as a % of NPLs
ALL as a % of NPAs
(a) Reported basis adjusted to exclude the July 2002 Merchant Services
gain, the results of the Florida banking operations and the impact
from the February 2002 sale, the July 2002 sale of J. Rolfe Davis
Insurance Agency, Inc., and restructuring and other charges.
(b) Includes securitized indirect auto loans. Growth percentages
normalized for asset securitizations, loan sales, and acquisition of
LeaseNet.
(c) Includes non-interest bearing and interest bearing demand deposits,
savings deposits, CDs under $100,000 and IRA deposits.
N.M. - Not Meaningful.
SOURCE Huntington Bancshares Incorporated
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