HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - FORM 8-K - HUNTINGTON BANCSHARES INC /MD/	c11165e8vk.htm
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	c11165exv99w1.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Review
December 2010

Table of Contents


Consolidated Balance Sheets			1

Loans and Leases Composition			2

Deposits Composition			3

Consolidated Quarterly Average Balance Sheets			4

Consolidated Quarterly Net Interest Margin Analysis			5

Selected Quarterly Income Statement Data			6 - 7

Quarterly Mortgage Banking Income			8

Quarterly Credit Reserves Analysis			9

Quarterly Net Charge-Off Analysis			10

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			11

Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			12

Quarterly Common Stock Summary, Capital, and Other Data			13

Consolidated Annual Average Balance Sheets			14

Consolidated Annual Net Interest Margin Analysis			15

Selected Annual Income Statement Data			16 - 17

Annual Mortgage Banking Income			18

Annual Credit Reserves Analysis			19

Annual Net Charge-Off Analysis			20

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			21

Annual Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			22

Notes:

The preparation of financial statement data in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Huntington Bancshares Incorporated

Consolidated Balance Sheets


										Change
	2010						2009			December ’10 vs ’09
(in thousands, except numbers of shares)	December 31,			September 30,			December 31,			Amount			Percent
				(Unaudited)
Assets
Cash and due from banks	$	847,888		$	1,139,226		$	1,521,344		$	(673,456	)		(44	)%
Interest bearing deposits in banks		135,038			274,240			319,375			(184,337	)		(58	)
Trading account securities		185,404			138,677			83,657			101,747			122
Loans held for sale		793,285			744,439			461,647			331,638			72
Investment securities		9,895,244			9,723,558			8,587,914			1,307,330			15
Loans and leases⁽¹⁾		38,106,507			37,500,587			36,790,663			1,315,844			4
Allowance for loan and lease losses		(1,249,008	)		(1,336,352	)		(1,482,479	)		233,471			(16	)

Net loans and leases		36,857,499			36,164,235			35,308,184			1,549,315			4

Bank owned life insurance		1,458,224			1,450,335			1,412,333			45,891			3
Premises and equipment		491,602			489,349			496,021			(4,419	)		(1	)
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		228,620			243,666			289,098			(60,478	)		(21	)
Accrued income and other assets		2,482,570			2,434,783			2,630,824			(148,254	)		(6	)

Total Assets	$	53,819,642		$	53,246,776		$	51,554,665		$	2,264,977			4	%


Liabilities and Shareholders’ Equity
Liabilities
Deposits⁽²⁾	$	41,853,898		$	41,072,371		$	40,493,927		$	1,359,971			3	%
Short-term borrowings		2,040,732			1,859,134			876,241			1,164,491			133
Federal Home Loan Bank advances		172,519			23,643			168,977			3,542			2
Other long-term debt		2,144,092			2,393,071			2,369,491			(225,399	)		(10	)
Subordinated notes		1,497,216			1,202,568			1,264,202			233,014			18
Accrued expenses and other liabilities		1,130,643			1,128,586			1,045,825			84,818			8

Total Liabilities		48,839,100			47,679,373			46,218,663			2,620,437			6


Shareholder’s Equity
Preferred stock — authorized 6,617,808 shares-

5.00% Series B Non-voting, Cumulative Preferred Stock, par value of $0.01 and liquidation value per share of $1,000		—			1,337,749			1,325,008			(1,325,008	)		(100	)

8.50% Series A Non-cumulative Perpetual Convertible Preferred Stock, par value and liquidiation value per share of $1,000		362,507			362,507			362,507			—			—

Common stock -
Par value of $0.01		8,642			7,180			7,167			1,475			21
Capital surplus		7,630,093			6,743,724			6,731,796			898,297			13
Less treasury shares at cost		(8,771	)		(8,969	)		(11,465	)		2,694			(23	)
Accumulated other comprehensive income (loss):
Unrealized losses on investment securities		(101,717	)		4,568			(103,382	)		1,665			(2	)
Unrealized gains (losses) on cash flow hedging derivatives		35,710			76,006			58,865			(23,155	)		(39	)
Pension and other postretirement benefit adjustments		(131,489	)		(108,970	)		(112,468	)		(19,021	)		17
Retained (deficit) earnings		(2,814,433	)		(2,846,392	)		(2,922,026	)		107,593			(4	)

Total Shareholders’ Equity		4,980,542			5,567,403			5,336,002			(355,460	)		(7	)

Total Liabilities and Shareholders’ Equity	$	53,819,642		$	53,246,776		$	51,554,665		$	2,264,977			4	%


Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,000,000,000
Common shares issued		864,195,369			718,015,276			716,741,249
Common shares outstanding		863,319,435			717,132,197			715,761,672
Treasury shares outstanding		875,934			883,079			979,577
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		362,507			1,760,578			1,760,578


⁽¹⁾		See page 2 for detail of loans and leases.

⁽²⁾		See page 3 for detail of deposits.

Huntington Bancshares Incorporated
Loans and Leases Composition


	2010																2009
(dollar amounts in millions)	December 31,				September 30,				June 30,				March 31,				December 31,
					(Unaudited)				(Unaudited)				(Unaudited)

Ending Balances by Type
Commercial:⁽¹⁾
Commercial and industrial⁽²⁾	$	13,063	34	%	$	12,425	34	%	$	12,392	34	%	$	12,245	33	%	$	12,888	35	%
Commercial real estate:
Construction		650	2			738	2			1,106	3			1,443	4			1,469	4
Commercial⁽²⁾		6,001	16			6,174	16			6,078	16			6,013	16			6,220	17

Commercial real estate⁽²⁾		6,651	18			6,912	18			7,184	19			7,456	20			7,689	21

Total commercial		19,714	52			19,337	52			19,576	53			19,701	53			20,577	56

Consumer:
Automobile loans and leases⁽³⁾		5,614	15			5,385	14			4,847	13			4,403	12			3,390	10
Home equity		7,713	20			7,690	21			7,510	20			7,514	20			7,563	21
Residential mortgage		4,500	12			4,511	12			4,354	12			4,614	12			4,510	12
Other loans		566	1			578	1			683	2			700	3			751	1

Total consumer		18,393	48			18,164	48			17,394	47			17,231	47			16,214	44

Total loans and leases	$	38,107	100	%	$	37,501	100	%	$	36,970	100	%	$	36,932	100	%	$	36,791	100	%


Ending Balances by Business Segment
Retail and Business Banking	$	11,717	31	%	$	11,804	31	%	$	11,772	32	%	$	11,751	32	%	$	11,792	32	%
Commercial Banking		7,792	20			7,373	20			7,317	20			7,227	20			7,658	21
Auto Finance and Commercial Real Estate		13,283	35			13,167	35			12,931	35			12,739	34			12,139	33
HWG		5,176	14			5,066	14			4,864	13			4,722	13			4,670	13
Treasury / Other⁽⁴⁾		139	—			91	—			86	—			493	1			532	1

Total loans and leases	$	38,107	100	%	$	37,501	100	%	$	36,970	100	%	$	36,932	100	%	$	36,791	100	%

	2010																2009
	Fourth				Third				Second				First				Fourth
Average Balances by Business Segment
Retail and Business Banking	$	11,794	31	%	$	11,817	32	%	$	11,809	32	%	$	11,779	32	%	$	11,899	32	%
Commercial Banking		7,657	20			7,419	20			7,247	20			7,316	20			7,792	21
Auto Finance and Commerical Real Estate		13,299	35			13,085	35			12,890	35			12,817	35			12,348	33
HWG		5,050	14			4,894	13			4,729	12			4,631	12			4,569	13
Treasury / Other⁽⁴⁾		—	—			—	—			414	1			437	1			481	1

Total loans and leases	$	37,800	100	%	$	37,215	100	%	$	37,089	100	%	$	36,980	100	%	$	37,089	100	%


⁽¹⁾		There were no commercial loans outstanding that would be considered a concentration of lending to a particular industry.

⁽²⁾		The 2009 fourth quarter reflected net reclassifications from commercial real estate loans to commercial and industrial loans of $589.0 million.

⁽³⁾		The 2010 first quarter included an increase of $730.5 million resulting from the adoption of a new accounting standard to consolidate a previously off-balance automobile loan securitization transaction.

⁽⁴⁾		Comprised primarily of Franklin loans through the 2010 second quarter.

Huntington Bancshares Incorporated
Deposits Composition


	2010																2009
(dollar amounts in millions)	December 31,				September 30,				June 30,				March 31,				December 31,
					(Unaudited)				(Unaudited)				(Unaudited)

Ending Balances by Type
Demand deposits — non-interest bearing	$	7,217	17	%	$	6,926	17	%	$	6,463	16	%	$	6,938	17	%	$	6,907	17	%
Demand deposits — interest bearing		5,469	13			5,347	13			5,850	15			5,948	15			5,890	15
Money market deposits		13,410	32			12,679	31			11,437	29			10,644	26			9,485	23
Savings and other domestic deposits		4,643	11			4,613	11			4,652	12			4,666	12			4,652	11
Core certificates of deposit		8,525	20			8,765	21			8,974	23			9,441	23			10,453	26

Total core deposits		39,264	93			38,330	93			37,376	95			37,637	93			37,387	92
Other domestic deposits of $250,000 or more		675	2			730	2			678	2			684	2			652	2
Brokered deposits and negotiable CDs		1,532	4			1,576	4			1,373	3			1,605	4			2,098	5
Deposits in foreign offices		383	1			436	1			422	—			377	1			357	1

Total deposits	$	41,854	100	%	$	41,072	100	%	$	39,849	100	%	$	40,303	100	%	$	40,494	100	%


Total core deposits:
Commercial	$	12,476	32	%	$	12,262	32	%	$	11,515	31	%	$	11,844	31	%	$	11,368	30	%
Personal		26,788	68			26,068	68			25,861	69			25,793	69			26,019	70

Total core deposits	$	39,264	100	%	$	38,330	100	%	$	37,376	100	%	$	37,637	100	%	$	37,387	100	%


Ending Balances by Business Segment:
Retail and Business Banking	$	29,298	70	%	$	28,808	70	%	$	28,542	72	%	$	28,335	70	%	$	28,512	70	%
Commercial Banking		3,538	8			3,245	8			2,861	7			3,003	7			3,056	8
Auto Finance and Commercial Real Estate		753	2			739	2			725	2			653	2			618	2
HWG		7,449	18			7,184	17			6,734	17			7,134	18			6,749	17
Treasury / Other⁽¹⁾		816	2			1,096	3			987	2			1,178	3			1,559	4

Total deposits	$	41,854	100	%	$	41,072	100	%	$	39,849	100	%	$	40,303	100	%	$	40,494	101	%

	2010																2009
	Fourth				Third				Second				First				Fourth
Average Balances by Business Segment:
Retail and Business Banking	$	29,241	70	%	$	28,874	71	%	$	28,592	71	%	$	28,371	71	%	$	28,381	71	%
Commercial Banking		3,471	8			3,090	8			3,001	7			3,130	8			3,014	7
Auto Finance and Commercial Real Estate		752	2			714	1			672	2			636	1			610	2
HWG		7,333	18			6,867	17			6,994	17			6,759	17			6,477	16
Treasury / Other ⁽¹⁾		907	2			1,101	3			1,108	3			1,327	3			1,732	4

Total deposits	$	41,704	100	%	$	40,646	100	%	$	40,367	100	%	$	40,223	100	%	$	40,214	100	%


⁽¹⁾		Comprised primarily of national market deposits.

Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)


	Average Balances															Change
	2010												2009			4Q10 vs 4Q09
(dollar amounts in millions)	Fourth			Third			Second			First			Fourth			Amount			Percent
Assets
Interest bearing deposits in banks	$	218		$	282		$	309		$	348		$	329		$	(111	)		(34	)%
Trading account securities		297			110			127			96			110			187			170
Federal funds sold and securities purchased under resale agreements		—			—			—			—			15			(15	)		(100	)
Loans held for sale		779			663			323			346			470			309			66
Investment securities:
Taxable		9,747			8,876			8,369			8,027			8,698			1,049			12
Tax-exempt		449			365			389			443			136			313			230

Total investment securities		10,196			9,241			8,758			8,470			8,834			1,362			15
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		12,767			12,393			12,244			12,314			12,570			197			2
Commercial real estate:
Construction		716			989			1,279			1,409			1,651			(935	)		(57	)
Commercial		6,082			6,084			6,085			6,268			6,807			(725	)		(11	)

Commercial real estate		6,798			7,073			7,364			7,677			8,458			(1,660	)		(20	)

Total commercial		19,565			19,466			19,608			19,991			21,028			(1,463	)		(7	)

Consumer:
Automobile loans and leases		5,520			5,140			4,634			4,250			3,326			2,194			66
Home equity		7,709			7,567			7,544			7,539			7,561			148			2
Residential mortgage		4,430			4,389			4,608			4,477			4,417			13			—
Other loans		576			653			695			723			757			(181	)		(24	)

Total consumer		18,235			17,749			17,481			16,989			16,061			2,174			14

Total loans and leases		37,800			37,215			37,089			36,980			37,089			711			2
Allowance for loan and lease losses		(1,323	)		(1,384	)		(1,506	)		(1,510	)		(1,029	)		(294	)		29

Net loans and leases		36,477			35,831			35,583			35,470			36,060			417			1

Total earning assets		49,290			47,511			46,606			46,240			46,847			2,443			5

Cash and due from banks		1,187			1,618			1,509			1,761			1,947			(760	)		(39	)
Intangible assets		679			695			710			725			737			(58	)		(8	)
All other assets		4,313			4,277			4,384			4,486			3,956			357			9

Total Assets	$	54,146		$	52,717		$	51,703		$	51,702		$	52,458		$	1,688			3	%


Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing	$	7,188		$	6,768		$	6,849		$	6,627		$	6,466		$	722			11	%
Demand deposits — interest-bearing		5,317			5,319			5,971			5,716			5,482			(165	)		(3	)
Money market deposits		13,158			12,336			11,103			10,340			9,271			3,887			42
Savings and other domestic deposits		4,640			4,639			4,677			4,613			4,686			(46	)		(1	)
Core certificates of deposit		8,646			8,948			9,199			9,976			10,867			(2,221	)		(20	)

Total core deposits		38,949			38,010			37,799			37,272			36,772			2,177			6
Other domestic deposits of $250,000 or more		737			690			661			698			667			70			10
Brokered deposits and negotiable CDs		1,575			1,495			1,505			1,843			2,353			(778	)		(33	)
Deposits in foreign offices		443			451			402			410			422			21			5

Total deposits		41,704			40,646			40,367			40,223			40,214			1,490			4
Short-term borrowings		2,134			1,739			966			927			879			1,255			143
Federal Home Loan Bank advances		112			188			212			179			681			(569	)		(84	)
Subordinated notes and other long-term debt		3,558			3,672			3,836			4,062			3,908			(350	)		(9	)

Total interest bearing liabilities		40,320			39,477			38,532			38,764			39,216			1,104			3

All other liabilities		993			952			924			947			1,042			(49	)		(5	)
Shareholders’ equity		5,645			5,520			5,398			5,364			5,734			(89	)		(2	)

Total Liabilities and Shareholders’ Equity	$	54,146		$	52,717		$	51,703		$	51,702		$	52,458		$	1,688			3	%


⁽¹⁾		For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin Analysis
(Unaudited)


	Average Rates (2)
	2010												2009
Fully-taxable equivalent basis⁽¹⁾	Fourth			Third			Second			First			Fourth
Assets
Interest bearing deposits in banks		0.63	%		0.21	%		0.20	%		0.18	%		0.16	%
Trading account securities		1.98			1.20			1.74			2.15			1.89
Federal funds sold and securities purchased under resale agreements		—			—			—			—			0.03
Loans held for sale		4.01			5.75			5.02			4.98			5.13
Investment securities:
Taxable		2.42			2.77			2.85			2.94			3.20
Tax-exempt		4.59			4.70			4.62			4.37			6.42

Total investment securities		2.52			2.84			2.93			3.01			3.25
Loans and leases:(2)(3)
Commercial:
Commercial and industrial		4.94			5.14			5.31			5.60			5.20
Commercial real estate:
Construction		3.07			2.83			2.61			2.66			2.63
Commercial		3.92			3.91			3.69			3.60			3.40

Commercial real estate		3.83			3.76			3.49			3.43			3.25

Total commercial		4.56			4.64			4.63			4.76			4.41

Consumer:
Automobile loans and leases		5.46			5.79			6.46			6.63			7.09
Home equity		4.64			4.74			5.26			5.59			5.82
Residential mortgage		4.82			4.97			4.70			4.89			5.04
Other loans		7.92			7.10			6.84			7.00			6.90

Total consumer		5.04			5.19			5.49			5.73			5.92

Total loans and leases		4.79			4.90			5.04			5.21			5.07

Total earning assets		4.29	%		4.49	%		4.63	%		4.82	%		4.70	%


Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits — interest-bearing		0.13			0.17			0.22			0.22			0.22
Money market deposits		0.77			0.86			0.93			1.00			1.21
Savings and other domestic deposits		0.90			0.99			1.07			1.19			1.27
Core certificates of deposit		2.11			2.31			2.68			2.93			3.07

Total core deposits		1.05			1.18			1.33			1.51			1.71
Other domestic deposits of $250,000 or more		1.21			1.28			1.37			1.44			1.88
Brokered deposits and negotiable CDs		1.53			2.21			2.56			2.49			2.52
Deposits in foreign offices		0.17			0.22			0.19			0.19			0.18

Total deposits		1.06			1.21			1.37			1.55			1.75
Short-term borrowings		0.20			0.22			0.21			0.21			0.24
Federal Home Loan Bank advances		0.95			1.25			1.93			2.71			1.01
Subordinated notes and other long-term debt		2.15			2.15			2.05			2.25			2.67

Total interest bearing liabilities		1.11			1.25			1.41			1.60			1.80

Net interest rate spread		3.16			3.24			3.22			3.22			2.90
Impact of noninterest bearing funds on margin		0.21			0.21			0.24			0.25			0.29

Net interest margin		3.37	%		3.45	%		3.46	%		3.47	%		3.19	%


⁽¹⁾		Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 6 for the FTE adjustment.

⁽²⁾		Loan, lease, and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.

⁽³⁾		For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data⁽¹⁾
(Unaudited)


	2010												2009			4Q10 vs 4Q09
(dollar amounts in thousands, except per share amounts)	Fourth			Third			Second			First			Fourth			Amount			Percent
Interest income	$	528,291		$	534,669		$	535,653		$	546,779		$	551,335		$	(23,044	)		(4	)%
Interest expense		112,997			124,707			135,997			152,886			177,271			(64,274	)		(36	)

Net interest income		415,294			409,962			399,656			393,893			374,064			41,230			11
Provision for credit losses		86,973			119,160			193,406			235,008			893,991			(807,018	)		(90	)

Net interest income (loss) after provision for credit losses		328,321			290,802			206,250			158,885			(519,927	)		848,248			N.R.

Service charges on deposit accounts		55,810			65,932			75,934			69,339			76,757			(20,947	)		(27	)
Mortgage banking income		53,170			52,045			45,529			25,038			24,618			28,552			116
Trust services		29,394			26,997			28,399			27,765			27,275			2,119			8
Electronic banking		28,900			28,090			28,107			25,137			25,173			3,727			15
Insurance income		19,678			19,801			18,074			18,860			16,128			3,550			22
Brokerage income		16,953			16,575			18,425			16,902			16,045			908			6
Bank owned life insurance income		16,113			14,091			14,392			16,470			14,055			2,058			15
Automobile operating lease income		10,463			11,356			11,842			12,303			12,671			(2,208	)		(17	)
Securities (losses) gains		(103	)		(296	)		156			(31	)		(2,602	)		2,499			(96	)
Other income		33,842			32,552			28,785			29,069			34,426			(584	)		(2	)

Total noninterest income		264,220			267,143			269,643			240,852			244,546			19,674			8

Personnel costs		212,184			208,272			194,875			183,642			180,663			31,521			17
Outside data processing and other services		40,943			38,553			40,670			39,082			36,812			4,131			11
Net occupancy		26,670			26,718			29,719			24,755			26,273			397			2
Deposit and other insurance expense		23,320			23,406			21,736			29,086			24,420			(1,100	)		(5	)
Professional services		21,021			20,672			35,555			11,530			25,146			(4,125	)		(16	)
Equipment		22,060			21,651			21,585			20,624			20,454			1,606			8
Marketing		16,168			20,921			6,138			22,697			9,074			7,094			78
Amortization of intangibles		15,046			15,145			15,141			15,146			17,060			(2,014	)		(12	)
OREO and foreclosure expense		10,502			12,047			6,434			10,066			18,520			(8,018	)		(43	)
Automobile operating lease expense		8,142			9,159			8,580			11,153			10,440			(2,298	)		(22	)
Goodwill impairment		—			—			—			—			—			—			—
Gain on early extinguishment of debt ⁽²⁾		—			—			—			—			(73,615	)		73,615			(100	)
Other expense		38,537			30,765			33,377			30,312			27,349			11,188			41

Total noninterest expense		434,593			427,309			413,810			398,093			322,596			111,997			35

Income (loss) before income taxes		157,948			130,636			62,083			1,644			(597,977	)		755,925			N.R.
Provision (benefit) for income taxes		35,048			29,690			13,319			(38,093	)		(228,290	)		263,338			N.R.

Net income (loss)	$	122,900		$	100,946		$	48,764		$	39,737		$	(369,687	)	$	492,587			N.R.

Dividends on preferred shares		83,754			29,495			29,426			29,357			29,289			54,465			186

Net income (loss) applicable to common shares	$	39,146		$	71,451		$	19,338		$	10,380		$	(398,976	)	$	438,122			N.R.


Average common shares — basic		757,924			716,911			716,580			716,320			715,336			42,588			6	%
Average common shares — diluted ⁽³⁾		760,582			719,567			719,387			718,593			715,336			45,246			6

Per common share
Net income (loss) — basic	$	0.05		$	0.10		$	0.03		$	0.01		$	(0.56	)	$	0.61			N.R.
Net income (loss) — diluted		0.05			0.10			0.03			0.01			(0.56	)		0.61			N.R.
Cash dividends declared		0.01			0.01			0.01			0.01			0.01			—			—

Return on average total assets		0.90	%		0.76	%		0.38	%		0.31	%		(2.80	)%		3.70	%		N.R.
Return on average common shareholders’ equity		3.8			7.4			2.1			1.1			(39.1	)		42.9			N.R.
Return on average common tangible shareholders’ equity ⁽⁴⁾		5.6			10.0			3.8			2.7			(45.1	)		50.70			N.R.
Net interest margin ⁽⁵⁾		3.37			3.45			3.46			3.47			3.19			0.18			6
Efficiency ratio ⁽⁶⁾		61.4			60.6			59.4			60.1			49.0			12.4			25
Effective tax rate (benefit)		22.2			22.7			21.5			—			(38.2	)		60.4			N.R.

Revenue — fully-taxable equivalent (FTE)
Net interest income	$	415,294		$	409,962		$	399,656		$	393,893		$	374,064		$	41,230			11
FTE adjustment		3,708			2,631			2,490			2,248			2,497			1,211			48

Net interest income ⁽⁵⁾		419,002			412,593			402,146			396,141			376,561			42,441			11
Noninterest income		264,220			267,143			269,643			240,852			244,546			19,674			8


Total revenue ⁽⁵⁾	$	683,222		$	679,736		$	671,789		$	636,993		$	621,107		$	62,115			10	%


N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.


⁽¹⁾		Comparisons for presented periods are impacted by a number of factors. Refer to “Significant Items” for additional discussion regarding these key factors.

⁽²⁾		The 2009 fourth quarter gain related to the purchase of certain subordinated bank notes.

⁽³⁾		For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.

⁽⁴⁾		Net income (loss) excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽⁵⁾		On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁶⁾		Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

Huntington Bancshares Incorporated
Quarterly Mortgage Banking Income
(Unaudited)


	2010												2009			4Q10 vs 4Q09
(in thousands, except as noted)	Fourth			Third			Second			First			Fourth			Amount			Percent
Mortgage Banking Income
Origination and secondary marketing	$	48,236		$	35,840		$	19,778		$	13,586		$	16,473		$	31,763			193	%
Servicing fees		11,474			12,053			12,178			12,418			12,289			(815	)		(7	)
Amortization of capitalized servicing		(13,960	)		(13,003	)		(10,137	)		(10,065	)		(10,791	)		(3,169	)		29
Other mortgage banking income		4,790			4,966			3,664			3,210			4,466			324			7


Subtotal		50,540			39,856			25,483			19,149			22,437			28,103			125

MSR valuation adjustment⁽¹⁾		31,319			(12,047	)		(26,221	)		(5,772	)		15,491			15,828			102
Net trading gains (losses) related to MSR hedging		(28,689	)		24,236			46,268			11,661			(13,310	)		(15,379	)		116

Total mortgage banking income	$	53,170		$	52,045		$	45,530		$	25,038		$	24,618		$	28,552			116	%


Mortgage originations (in millions)	$	1,827		$	1,619		$	1,161		$	869		$	1,131		$	696			62	%
Average trading account securities used to hedge MSRs (in millions)		184			23			28			18			19			165			868
Capitalized mortgage servicing rights⁽²⁾		196,194			161,594			179,138			207,552			214,592			(18,398	)		(9	)
Total mortgages serviced for others (in millions)⁽²⁾		15,933			15,713			15,954			15,968			16,010			(77	)		—
MSR % of investor servicing portfolio		1.23	%		1.03	%		1.12	%		1.30	%		1.34	%		(0.11	)%		(8	)


Net Impact of MSR Hedging
MSR valuation adjustment⁽¹⁾	$	31,319		$	(12,047	)	$	(26,221	)	$	(5,772	)	$	15,491		$	15,828			102	%
Net trading gains (losses) related to MSR hedging		(28,689	)		24,236			46,268			11,661			(13,310	)		(15,379	)		116
Net interest income related to MSR hedging		713			32			58			169			168			545			324


Net impact of MSR hedging	$	3,343		$	12,221		$	20,105		$	6,058		$	2,349		$	994			42	%


⁽¹⁾		The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

⁽²⁾		At period end.

Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis
(Unaudited)


	2010												2009
(dollar amounts in thousands)	Fourth			Third			Second			First			Fourth

Allowance for loan and lease losses, beginning of period	$	1,336,352		$	1,402,160		$	1,477,969		$	1,482,479		$	1,031,971
Loan and lease losses		(205,587	)		(221,144	)		(312,954	)		(264,222	)		(471,486	)
Recoveries of loans previously charged off		33,336			36,630			33,726			25,741			26,739

Net loan and lease losses		(172,251	)		(184,514	)		(279,228	)		(238,481	)		(444,747	)

Provision for loan and lease losses		84,907			118,788			203,633			233,971			895,255
Allowance of assets sold		—			(82	)		(214	)		—			—
Allowance for loans transferred to held-for-sale		—			—			—			—			—

Allowance for loan and lease losses, end of period	$	1,249,008		$	1,336,352		$	1,402,160		$	1,477,969		$	1,482,479

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	40,061		$	39,689		$	49,916		$	48,879		$	50,143
Provision for (Reduction in) unfunded loan commitments and letters of credit losses		2,066			372			(10,227	)		1,037			(1,264	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	42,127		$	40,061		$	39,689		$	49,916		$	48,879

Total allowance for credit losses	$	1,291,135		$	1,376,413		$	1,441,849		$	1,527,885		$	1,531,358


Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		3.28	%		3.56	%		3.79	%		4.00	%		4.03	%
Nonaccrual loans and leases (NALs)		161			136			117			84			77
Nonperforming assets (NPAs)		148			121			89			77			72

Total allowance for credit losses (ACL) as % of:
Total loans and leases		3.39	%		3.67	%		3.90	%		4.14	%		4.16	%
Nonaccrual loans and leases		166			140			120			87			80
Nonperforming assets		153			125			91			80			74

Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)


	2010												2009
(dollar amounts in thousands)	Fourth			Third			Second			First			Fourth

Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	59,124		$	62,241		$	58,128		$	75,439		$	109,816
Commercial real estate:
Construction		11,084			17,936			45,562			34,426			85,345
Commercial		33,787			45,725			36,169			50,873			172,759

Commercial real estate		44,871			63,661			81,731			85,299			258,104

Total commercial		103,995			125,902			139,859			160,738			367,920

Consumer:
Automobile loans and leases		7,035			5,570			5,436			8,531			12,928
Home equity		29,175			27,827			44,470	(1)		37,901			35,764
Residential mortgage		26,775	(3)		18,961			82,848	(2)		24,311			17,789
Other loans		5,271			6,254			6,615			7,000			10,346

Total consumer		68,256			58,612			139,369			77,743			76,827

Total net charge-offs	$	172,251		$	184,514		$	279,228		$	238,481		$	444,747


Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		1.85	%		2.01	%		1.90	%		2.45	%		3.49	%
Commercial real estate:
Construction		6.19			7.25			14.25			9.77			20.68
Commercial		2.22			3.01			2.38			3.25			10.15

Commercial real estate		2.64			3.60			4.44			4.44			12.21

Total commercial		2.13			2.59			2.85			3.22			7.00

Consumer:
Automobile loans and leases		0.51			0.43			0.47			0.80			1.55
Home equity(1)		1.51			1.47			2.36			2.01			1.89
Residential mortgage(2)		2.42			1.73			7.19			2.17			1.61
Other loans		3.66			3.83			3.81			3.87			5.47

Total consumer		1.50			1.32			3.19			1.83			1.91

Net charge-offs as a % of average loans		1.82	%		1.98	%		3.01	%		2.58	%		4.80	%


⁽¹⁾		The 2010 second quarter included net charge-offs of $14,678 thousand associated with the transfer of Franklin-related loans to loans held for sale and $1,262 thousand of other Franklin-related net charge-offs.

⁽²⁾		The 2010 second quarter included net charge-offs of $60,822 thousand associated with the transfer of Franklin-related loans to loans held for sale and $3,403 thousand of other Franklin-related net charge-offs.

⁽³⁾		The 2010 fourth quarter included net charge-offs of $16,389 thousand related to the sale of certain underperforming residential mortgage loans.

Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)


	2010												2009
(dollar amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,

Nonaccrual loans and leases (NALs):
Commercial and industrial	$	346,720		$	398,353		$	429,561		$	511,588		$	578,414
Commercial real estate		363,692			478,754			663,103			826,781			935,812
Total residential mortgages		45,010			82,984			86,486			372,950			362,630
Home equity		22,526			21,689			22,199			54,789			40,122


Total nonaccrual loans and leases		777,948			981,780			1,201,349			1,766,108			1,916,978

Other real estate, net:
Residential		31,649			65,775			71,937			68,289			71,427
Commercial		35,155			57,309			67,189			83,971			68,717

Total other real estate, net		66,804			123,084			139,126			152,260			140,144
Impaired loans held for sale(1)		—			—			242,227			—			969

Total nonperforming assets	$	844,752		$	1,104,864		$	1,582,702		$	1,918,368		$	2,058,091


Nonperforming Franklin assets:
Residential mortgage	$	—		$	—		$	—		$	297,967		$	299,670
Home Equity		—			—			—			31,067			15,004
OREO		9,477			15,330			24,515			24,423			23,826
Impaired loans held for sale		—			—			242,227			—			—

Total nonperforming Franklin assets	$	9,477		$	15,330		$	266,742		$	353,457		$	338,500


Nonaccrual loans and leases as a % of total loans and leases		2.04	%		2.62	%		3.25	%		4.78	%		5.21	%

NPA ratio(2)		2.21			2.94			4.24			5.17			5.57


	2010												2009
	Fourth			Third			Second			First			Fourth

Nonperforming assets, beginning of period	$	1,104,864		$	1,582,702		$	1,918,368		$	2,058,091		$	2,344,042
New nonperforming assets		237,802			278,388			171,595			237,914			494,607
Franklin impact, net		(5,853	)		(244,389	)		(86,715	)		14,957			(30,996	)
Returns to accruing status		(100,051	)		(111,168	)		(78,739	)		(80,840	)		(85,867	)
Loan and lease losses		(126,047	)		(155,553	)		(173,159	)		(185,387	)		(391,635	)
OREO losses		(5,117	)		(5,302	)		2,483			(4,160	)		(7,394	)
Payments		(191,296	)		(213,095	)		(140,881	)		(107,640	)		(222,790	)
Sales		(69,550	)		(26,719	)		(30,250	)		(14,567	)		(41,876	)

Nonperforming assets, end of period	$	844,752		$	1,104,864		$	1,582,702		$	1,918,368		$	2,058,091


⁽¹⁾		The June 30, 2010, figure represented NALs associated with the transfer of Franklin-related residential mortgage and home equity loans to loans held for sale. The December 31, 2009, figure primarily represented impaired loans obtained from the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.

⁽²⁾		Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, and net other real estate.

Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
(Unaudited)


	2010												2009
(dollar amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,

Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	—		$	—		$	—		$	475		$	—
Commercial real estate		—			—			—			—			—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		53,983			56,803			47,036			72,702			78,915
Home equity		23,497			27,160			26,797			29,438			53,343
Other loans and leases		10,177			11,423			9,533			10,598			13,400

Total, excl. loans guaranteed by the U.S. Government		87,657			95,386			83,366			113,213			145,658
Add: loans guaranteed by U.S. Government		98,288			94,249			95,421			96,814			101,616

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	185,945		$	189,635		$	178,787		$	210,027		$	247,274


Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.23	%		0.25	%		0.23	%		0.31	%		0.40	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.26	%		0.26	%		0.26	%		0.26	%		0.28	%

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.49	%		0.51	%		0.49	%		0.57	%		0.68	%

Accruing troubled debt restructured loans
Commercial	$	171,830		$	157,971		$	141,353		$	117,667		$	157,049
Total residential mortgages		313,020			287,481			269,570			242,870			219,639
Other		76,586			73,210			65,061			62,148			52,871

Total accruing troubled debt restructured loans	$	561,436		$	518,662		$	475,984		$	422,685		$	429,559

Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Capital, and Other Data
(Unaudited)

Quarterly common stock summary


	2010								2009
(dollar amounts in thousands, except per share amounts)	Fourth		Third		Second		First		Fourth

Common stock price, per share
High⁽¹⁾	$	7.000	$	6.450	$	7.400	$	5.810	$	4.770
Low⁽¹⁾		5.430		5.040		5.260		3.650		3.500
Close		6.870		5.690		5.540		5.390		3.650
Average closing price		6.050		5.787		6.130		4.840		3.970

Dividends, per share
Cash dividends declared per common share	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01

Common shares outstanding
Average — basic		757,924		716,911		716,580		716,320		715,336
Average — diluted⁽²⁾		760,582		719,567		719,387		718,593		715,336
Ending		863,319		717,132		716,623		716,557		715,762

Book value per common share	$	5.35	$	5.39	$	5.22	$	5.13	$	5.10
Tangible book value per common share⁽³⁾		4.66		4.55		4.37		4.26		4.21

Capital data


	2010												2009
(dollar amounts in millions)	December 31,			September 30,			June 30,			March 31,			December 31,

Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	4,981		$	5,567		$	5,438		$	5,370		$	5,336
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(229	)		(244	)		(259	)		(274	)		(289	)
Add: related deferred tax liability⁽³⁾		80			85			91			95			101

Total tangible equity		4,388			4,964			4,826			4,747			4,704
Less: Preferred equity		(363	)		(1,700	)		(1,696	)		(1,692	)		(1,688	)

Total tangible common equity	$	4,025		$	3,264		$	3,130		$	3,055		$	3,016


Total assets	$	53,820		$	53,247		$	51,771		$	51,867		$	51,555
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(229	)		(244	)		(259	)		(274	)		(289	)
Add: related deferred tax liability⁽³⁾		80			85			91			95			101

Total tangible assets	$	53,227		$	52,644		$	51,159		$	51,244		$	50,923


Tangible equity / tangible asset ratio		8.24	%		9.43	%		9.43	%		9.26	%		9.24	%
Tangible common equity / tangible asset ratio		7.56			6.20			6.12			5.96			5.92

Other capital data:
Total risk-weighted assets	$	43,678		$	42,759		$	42,486		$	42,418		$	42,816

Tier 1 leverage ratio⁽⁴⁾		9.41	%		10.54	%		10.45	%		10.05	%		10.09	%
Tier 1 common risk-based capital ratio⁽⁴⁾		9.25			7.39			7.06			6.55			6.76
Tier 1 risk-based capital ratio⁽⁴⁾		11.50			12.82			12.51			12.00			12.15
Total risk-based capital ratio⁽⁴⁾		14.39			15.08			14.79			14.31			14.55

Tangible common equity / risk-weighted assets ratio		9.22			7.63			7.37			7.20			7.04

Other data:
Number of employees (full-time equivalent)		11,341			11,279			11,117			10,678			10,272
Number of domestic full-service branches⁽⁵⁾		620			617			617			617			611


⁽¹⁾		High and low stock prices are intra-day quotes obtained from NASDAQ.

⁽²⁾		For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.

⁽³⁾		Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽⁴⁾		December 31, 2010, figures are estimated. Based on an interim decision by the banking agencies on December 14, 2006, Huntington has excluded the impact of adopting ASC Topic 715, “Compensation — Retirement Benefits”, from the regulatory capital calculations.

⁽⁵⁾		Includes 9 Private Financial Group offices.

Huntington Bancshares Incorporated
Consolidated Annual Average Balance Sheets
(Unaudited)


	Annual Average Balances
				Change from 2009									Change from 2008
(dollar amounts in millions)	2010			Amount			%			2009			Amount			%			2008
Assets
Interest bearing deposits in banks	$	289		$	(72	)		(20	)%	$	361		$	58			19	%	$	303
Trading account securities		158			13			9			145			(945	)		(87	)		1,090
Federal funds sold and securities purchased under resale agreements		—			(10	)		(100	)		10			(425	)		(98	)		435
Loans held for sale		529			(53	)		(9	)		582			166			40			416
Investment securities:
Taxable		8,760			2,659			44			6,101			2,223			57			3,878
Tax-exempt		411			197			92			214			(491	)		(70	)		705

Total investment securities		9,171			2,856			45			6,315			1,732			38			4,583
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		12,431			(705	)		(5	)		13,136			(452	)		(3	)		13,588
Commercial real estate:
Construction		1,096			(762	)		(41	)		1,858			(203	)		(10	)		2,061
Commercial		6,129			(1,169	)		(16	)		7,298			(373	)		(5	)		7,671

Commercial real estate		7,225			(1,931	)		(21	)		9,156			(576	)		(6	)		9,732

Total commercial		19,656			(2,636	)		(12	)		22,292			(1,028	)		(4	)		23,320

Consumer:
Automobile loans and leases		4,890			1,344			38			3,546			(981	)		(22	)		4,527
Home equity		7,590			—			—			7,590			186			3			7,404
Residential mortgage		4,476			(66	)		(1	)		4,542			(476	)		(9	)		5,018
Other loans		661			(61	)		(8	)		722			31			4			691

Total consumer		17,617			1,217			7			16,400			(1,240	)		(7	)		17,640

Total loans and leases		37,273			(1,419	)		(4	)		38,692			(2,268	)		(6	)		40,960
Allowance for loan and lease losses		(1,430	)		(474	)		50			(956	)		(261	)		38			(695	)

Net loans and leases		35,843			(1,893	)		(5	)		37,736			(2,529	)		(6	)		40,265

Total earning assets		47,420			1,315			3			46,105			(1,682	)		(4	)		47,787

Cash and due from banks		1,518			(614	)		(29	)		2,132			1,174			123			958
Intangible assets		702			(700	)		(50	)		1,402			(2,044	)		(59	)		3,446
All other assets		4,364			607			16			3,757			332			10			3,425

Total Assets	$	52,574		$	134			—	%	$	52,440		$	(2,481	)		(5	)%	$	54,921


Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing	$	6,859		$	802			13	%	$	6,057		$	962			19	%	$	5,095
Demand deposits — interest-bearing		5,579			763			16			4,816			813			20			4,003
Money market deposits		11,743			4,527			63			7,216			1,123			18			6,093
Savings and other domestic deposits		4,642			(239	)		(5	)		4,881			(266	)		(5	)		5,147
Core certificates of deposit		9,188			(2,756	)		(23	)		11,944			307			3			11,637

Total core deposits		38,011			3,097			9			34,914			2,939			9			31,975
Other domestic deposits of $250,000 or more		697			(144	)		(17	)		841			(802	)		(49	)		1,643
Brokered deposits and negotiable CDs		1,603			(1,544	)		(49	)		3,147			(96	)		(3	)		3,243
Deposits in foreign offices		427			(60	)		(12	)		487			(488	)		(50	)		975

Total deposits		40,738			1,349			3			39,389			1,553			4			37,836
Short-term borrowings		1,446			513			55			933			(1,441	)		(61	)		2,374
Federal Home Loan Bank advances		173			(1,063	)		(86	)		1,236			(2,045	)		(62	)		3,281
Subordinated notes and other long-term debt		3,780			(541	)		(13	)		4,321			227			6			4,094

Total interest bearing liabilities		39,278			(544	)		(1	)		39,822			(2,668	)		(6	)		42,490

All other liabilities		956			182			24			774			(166	)		(18	)		940
Shareholders’ equity		5,481			(306	)		(5	)		5,787			(609	)		(10	)		6,396

Total Liabilities and Shareholders’ Equity	$	52,574		$	134			—	%	$	52,440		$	(2,481	)		(5	)%	$	54,921


⁽¹⁾		For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

Huntington Bancshares Incorporated
Consolidated Annual Net Interest Margin Analysis
(Unaudited)


	Annual Average Rates⁽²⁾
Fully-taxable equivalent basis⁽¹⁾	2010			2009			2008
Assets
Interest bearing deposits in banks		0.28	%		0.32	%		2.53	%
Trading account securities		1.82			2.99			5.28
Federal funds sold and securities purchased under resale agreements		—			0.13			2.46
Loans held for sale		4.85			5.15			6.01
Investment securities:
Taxable		2.73			4.10			5.62
Tax-exempt		4.56			6.68			6.83

Total investment securities		2.81			4.18			5.81
Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		5.31			5.06			5.67
Commercial real estate:
Construction		2.79			2.74			5.05
Commercial		3.83			3.59			5.61

Commercial real estate		3.67			3.42			5.49

Total commercial		4.71			4.39			5.59

Consumer:
Automobile loans and leases		6.04			7.12			6.88
Home equity		5.06			5.62			6.42
Residential mortgage		4.84			5.23			5.83
Other loans		7.18			7.78			9.85

Total consumer		5.35			5.93			6.50

Total loans and leases		5.02			5.04			5.99

Total earning assets		4.55	%		4.88	%		5.90	%


Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%
Demand deposits — interest-bearing		0.19			0.20			0.55
Money market deposits		0.88			1.16			1.93
Savings and other domestic deposits		1.04			1.37			1.95
Core certificates of deposit		2.52			3.43			4.26

Total core deposits		1.26			1.97			2.74
Other domestic deposits of $250,000 or more		1.32			2.48			3.77
Brokered deposits and negotiable CDs		2.21			2.64			3.66
Deposits in foreign offices		0.20			0.19			1.56

Total deposits		1.30			2.02			2.85
Short-term borrowings		0.21			0.25			1.78
Federal Home Loan Bank advances		1.80			1.04			3.29
Subordinated notes and other long-term debt		2.15			2.88			4.51

Total interest bearing liabilities		1.34			2.04			2.98


Net interest rate spread		3.21			2.84			2.92
Impact of noninterest bearing funds on margin		0.23			0.27			0.33

Net interest margin		3.44	%		3.11	%		3.25	%


⁽¹⁾		Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 16 for the FTE adjustment.

⁽²⁾		Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.

⁽³⁾		For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

Huntington Bancshares Incorporated
Selected Annual Income Statement Data⁽¹⁾
(Unaudited)


	Year Ended December 31,
				Change from 2009									Change from 2008
(dollar amounts in thousands, except per share amounts)	2010			Amount			%			2009			Amount			%			2008
Interest income	$	2,145,392		$	(92,750	)		(4	)%	$	2,238,142		$	(560,180	)		(20	)%	$	2,798,322
Interest expense		526,587			(287,268	)		(35	)		813,855			(452,776	)		(36	)		1,266,631

Net interest income		1,618,805			194,518			14			1,424,287			(107,404	)		(7	)		1,531,691
Provision for credit losses		634,547			(1,440,124	)		(69	)		2,074,671			1,017,208			96			1,057,463

Net interest income (loss) after provision for credit losses		984,258			1,634,642			N.R.			(650,384	)		(1,124,612	)		N.R.			474,228

Service charges on deposit accounts		267,015			(35,784	)		(12	)		302,799			(5,254	)		(2	)		308,053
Mortgage banking income		175,782			63,484			57			112,298			103,304			1,149			8,994
Trust services		112,555			8,916			9			103,639			(22,341	)		(18	)		125,980
Electronic banking		110,234			10,083			10			100,151			9,884			11			90,267
Insurance income		76,413			3,087			4			73,326			702			1			72,624
Brokerage income		68,855			4,012			6			64,843			(329	)		(1	)		65,172
Bank owned life insurance income		61,066			6,194			11			54,872			96			—			54,776
Automobile operating lease income		45,964			(5,846	)		(11	)		51,810			11,959			30			39,851
Securities losses		(274	)		9,975			(97	)		(10,249	)		187,121			(95	)		(197,370	)
Other income		124,248			(27,907	)		(18	)		152,155			13,364			10			138,791

Total noninterest income		1,041,858			36,214			4			1,005,644			298,506			42			707,138

Personnel costs		798,973			98,491			14			700,482			(83,064	)		(11	)		783,546
Outside data processing and other services		159,248			11,153			8			148,095			17,869			14			130,226
Net occupancy		107,862			2,589			2			105,273			(3,155	)		(3	)		108,428
Deposit and other insurance expense		97,548			(16,282	)		(14	)		113,830			91,393			407			22,437
Professional services		88,778			12,412			16			76,366			26,753			54			49,613
Equipment		85,920			2,803			3			83,117			(10,848	)		(12	)		93,965
Marketing		65,924			32,875			99			33,049			385			1			32,664
Amortization of intangibles		60,478			(7,829	)		(11	)		68,307			(8,587	)		(11	)		76,894
OREO and foreclosure expense		39,049			(54,850	)		(58	)		93,899			60,444			181			33,455
Automobile operating lease expense		37,034			(6,326	)		(15	)		43,360			12,078			39			31,282
Goodwill impairment		—			(2,606,944	)		(100	)		2,606,944			2,606,944			—			—
Gain on early extinguishment of debt⁽²⁾		—			147,442			(100	)		(147,442	)		(123,900	)		526			(23,542	)
Other expense		132,991			24,828			23			108,163			(30,243	)		(22	)		138,406

Total noninterest expense		1,673,805			(2,359,638	)		(59	)		4,033,443			2,556,069			173			1,477,374

Income (loss) before income taxes		352,311			4,030,494			N.R.			(3,678,183	)		(3,382,175	)		1,143			(296,008	)
Provision (benefit) for income taxes		39,964			623,968			N.R.			(584,004	)		(401,802	)		221			(182,202	)

Net income (loss)	$	312,347		$	3,406,526			N.R.		$	(3,094,179	)	$	(2,980,373	)		2,619		$	(113,806	)

Dividends on preferred shares		172,032			(2,724	)		(2	)		174,756			128,356			277.0			46,400

Net income (loss) applicable to common shares	$	140,315		$	3,409,250			N.R.		$	(3,268,935	)	$	(3,108,729	)		1,940	%	$	(160,206	)


Average common shares — basic		726,934			194,132			36	%		532,802			166,647			46	%		366,155
Average common shares — diluted⁽³⁾		729,532			196,730			37			532,802			166,647			46			366,155

Per common share
Net income (loss) — basic	$	0.19		$	6.33			N.R.		$	(6.14	)	$	(5.70	)		1,295	%	$	(0.44	)
Net income (loss) — diluted		0.19			6.33			N.R.			(6.14	)		(5.70	)		1,295			(0.44	)
Cash dividends declared		0.0400			—			—			0.0400			(0.6225	)		(94	)		0.6625

Return on average total assets		0.59	%		6.49	%		N.R.			(5.90	)%		(5.69	)%		2,710	%		(0.21	)%
Return on average common shareholders’ equity		3.7			84.5			N.R.			(80.8	)		(79.0	)		4,389			(1.8	)
Return on average tangible common shareholders’ equity⁽⁴⁾		5.6			28.0			N.R.			(22.4	)		(18.8	)		522			(3.6	)
Net interest margin⁽⁵⁾		3.44			0.33			11			3.11			(0.14	)		(4	)		3.25
Efficiency ratio⁽⁶⁾		60.4			5.0			9			55.4			(1.6	)		(3	)		57.0
Effective tax rate (benefit)		11.3			27.2			N.R.			(15.9	)		45.7			(74	)		(61.6	)

Revenue — fully taxable equivalent (FTE)
Net interest income	$	1,618,805		$	194,518			14	%	$	1,424,287		$	(107,404	)		(7	)%	$	1,531,691
FTE adjustment⁽⁵⁾		11,077			(395	)		(3	)		11,472			(8,746	)		(43	)		20,218

Net interest income		1,629,882			194,123			14			1,435,759			(116,150	)		(7	)		1,551,909
Noninterest income		1,041,858			36,214			4			1,005,644			298,506			42			707,138

Total revenue	$	2,671,740		$	230,337			9	%	$	2,441,403		$	182,356			8	%	$	2,259,047


N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.

⁽¹⁾		Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” discussion.


⁽²⁾		The 2009 gain included $67.4 million related to the purchase of certain trust preferred securities.

⁽³⁾		For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.

⁽⁴⁾		Net income excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽⁵⁾		On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁶⁾		Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

Huntington Bancshares Incorporated
Annual Mortgage Banking Income
(Unaudited)


	Year Ended December 31,
(dollar amounts in thousands, except as noted)	2010			2009			2008			2007			2006
Mortgage Banking Income
Origination and secondary marketing	$	117,440		$	94,711		$	37,257		$	25,965		$	18,217
Servicing fees		48,123			48,494			45,558			36,012			24,659
Amortization of capitalized servicing		(47,165	)		(47,571	)		(26,634	)		(20,587	)		(15,144	)
Other mortgage banking income		16,629			23,360			16,768			13,198			10,173

Subtotal		135,027			118,994			72,949			54,588			37,905

MSR valuation adjustment⁽¹⁾		(12,721	)		34,305			(52,668	)		(16,131	)		4,871
Net trading gains (losses) related to MSR hedging		53,476			(41,001	)		(11,287	)		(8,653	)		(1,285	)

Total mortgage banking income	$	175,782		$	112,298		$	8,994		$	29,804		$	41,491


Mortgage originations (in millions)	$	5,476		$	5,262		$	3,773		$	3,493		$	2,822
Average trading account securities used to hedge MSRs (in millions)		64			70			1,031			594			26
Capitalized mortgage servicing rights⁽²⁾		196,194			214,592			167,438			207,894			131,104
Total mortgages serviced for others (in millions)⁽²⁾		15,933			16,010			15,754			15,088			8,252
MSR % of investor servicing portfolio		1.23	%		1.34	%		1.06	%		1.38	%		1.59	%


Net Impact of MSR Hedging
MSR valuation adjustment⁽¹⁾	$	(12,721	)	$	34,305		$	(52,668	)	$	(16,131	)	$	4,871
Net trading gains (losses) related to MSR hedging		53,476			(41,001	)		(11,287	)		(8,653	)		(1,285	)
Net interest income related to MSR hedging		972			2,999			33,139			5,797			36

Net impact of MSR hedging	$	41,727		$	(3,697	)	$	(30,816	)	$	(18,987	)	$	3,622


⁽¹⁾		The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

⁽²⁾		At period end.

Huntington Bancshares Incorporated
Annual Credit Reserves Analysis
(Unaudited)


	Year Ended December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006

Allowance for loan and lease losses, beginning of period	$	1,482,479		$	900,227		$	578,442		$	272,068		$	268,347
Acquired allowance for loan and lease losses		—			—			—			188,128			23,785
Loan and lease losses		(1,003,907	)		(1,561,378	)		(806,330	)		(517,942	)		(119,692	)
Recoveries of loans previously charged off		129,433			84,791			48,263			40,311			37,316

Net loan and lease losses		(874,474	)		(1,476,587	)		(758,067	)		(477,631	)		(82,376	)

Provision for loan and lease losses		641,299			2,069,931			1,067,789			628,802			62,312
Economic reserve transfer		—			—			12,063			—			—
Allowance of assets sold		(296	)		(9,188	)		—			—			—
Allowance for loans transferred to held-for-sale		—			(1,904	)		—			(32,925	)		—

Allowance for loan and lease losses, end of period	$	1,249,008		$	1,482,479		$	900,227		$	578,442		$	272,068


Allowance for unfunded loan commitments and letters of credit, beginning of period	$	48,879		$	44,139		$	66,528		$	40,161		$	36,957
Acquired AULC		—			—			—			11,541			325
(Reduction in) Provision for unfunded loan commitments and letters of credit losses		(6,752	)		4,740			(10,326	)		14,826			2,879
Economic reserve transfer		—			—			(12,063	)		—			—

Allowance for unfunded loan commitments and letters of credit, end of period	$	42,127		$	48,879		$	44,139		$	66,528		$	40,161

Total allowance for credit losses	$	1,291,135		$	1,531,358		$	944,366		$	644,970		$	312,229


Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		3.28	%		4.03	%		2.19	%		1.44	%		1.04	%
Nonaccrual loans and leases (NALs)		161			77			60			181			189
Nonperforming assets (NPAs)		148			72			55			122			141

Total allowance for credit losses (ACL) as % of:
Total loans and leases		3.39	%		4.16	%		2.30	%		1.61	%		1.19	%
Nonaccrual loans and leases (NALs)		166			80			63			202			217
Nonperforming assets (NPAs)		153			74			58			136			161

Huntington Bancshares Incorporated
Annual Net Charge-Off Analysis
(Unaudited)


	Year Ended December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006

Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial^(1)(2)(3)(4)	$	254,932		$	487,606		$	526,165		$	345,840		$	20,868
Commercial real estate:
Construction		109,008			192,706			6,626			11,854			3,553
Commercial		166,554			490,025			62,114			27,250			3,230

Commercial real estate		275,562			682,731			68,740			39,104			6,783

Total commercial		530,494			1,170,337			594,905			384,944			27,651

Consumer:
Automobile loans and leases		26,572			56,332			54,565			27,692			18,775
Home equity⁽⁵⁾		139,373			106,176			67,556			34,426			21,854
Residential mortgage⁽⁶⁾⁽⁷⁾		152,895			110,202			21,247			11,371			4,505
Other loans		25,140			33,540			19,794			19,198			9,591

Total consumer		343,980			306,250			163,162			92,687			54,725

Total net charge-offs	$	874,474		$	1,476,587		$	758,067		$	477,631		$	82,376


Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial^{’(1)(2)(3)(4)}		2.05	%		3.71	%		3.87	%		3.25	%		0.28	%
Commercial real estate:
Construction		9.95			10.37			0.32			0.77			0.28
Commercial		2.72			6.71			0.81			0.52			0.10

Commercial real estate		3.81			7.46			0.71			0.57			0.15

Total commercial		2.70			5.25			2.55			2.21			0.23

Consumer:
Automobile loans and leases		0.54			1.59			1.21			0.67			0.46
Home equity⁽⁵⁾		1.84			1.40			0.91			0.56			0.44
Residential mortgage⁽⁶⁾⁽⁷⁾		3.42			2.43			0.42			0.23			0.10
Other loans		3.80			4.65			2.86			3.63			2.18

Total consumer		1.95			1.87			0.92			0.59			0.39

Net charge-offs as a % of average loans		2.35	%		3.82	%		1.85	%		1.44	%		0.32	%


⁽¹⁾		2010 included net recoveries associated with the Franklin relationship totaling $5.1 million.

⁽²⁾		2009 included net charge-offs associated with the Franklin relationship totaling $114.5 million.

⁽³⁾		2008 included net charge-offs associated with the Franklin relationship totaling $423.3 million.

⁽⁴⁾		2007 included net charge-offs associated with the Franklin restructuring totaling $397.0 million. These net charge-offs were reduced by the unamortized discount with the loans and by other amounts received by Franklin totaling $88.5 million, resulting in net charge-offs totaling $308.5 million.

⁽⁵⁾		2010 included net charge-offs of $14.7 million associated with the transfer of Franklin-related loans to loans held for sale and $6.1 million of other Franklin-related net charge-offs.

⁽⁶⁾		2010 included net charge-offs of $60.8 million associated with the transfer of Franklin-related loans to loans held for sale and $10.5 million of other Franklin-related net charge-offs.

⁽⁷⁾		Effective in 2009, a change to accelerate the timing of when a partial charge-off is recognized was made. This change resulted in $32.0 million of charge-offs in 2009.

Huntington Bancshares Incorporated
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)


	December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006

Nonaccrual loans and leases (NALs):
Commercial and industrial (1)	$	346,720		$	578,414		$	932,648		$	87,679		$	58,393
Commercial real estate		363,692			935,812			445,717			148,467			37,947
Total residential mortgages (1)		45,010			362,630			98,951			59,557			32,527
Home equity		22,526			40,122			24,831			24,068			15,266

Total nonaccrual loans and leases		777,948			1,916,978			1,502,147			319,771			144,133

Other real estate, net:
Residential		31,649			71,427			63,058			60,804			47,898
Commercial		35,155			68,717			59,440			14,467			1,589

Total other real estate, net		66,804			140,144			122,498			75,271			49,487
Impaired loans held for sale (2)		—			969			12,001			73,481			—
Other NPAs (3)		—			—			—			4,379			—

Total nonperforming assets	$	844,752		$	2,058,091		$	1,636,646		$	472,902		$	193,620


Nonperforming Franklin assets:
Commercial	$	—		$	—		$	650,225		$	—		$	—
Residential mortgage		—			299,670			—			—			—
Home Equity		—			15,004			—			—			—
OREO		9,477			23,826			—			—			—

Total nonperforming Franklin assets	$	9,477		$	338,500		$	650,225		$	—		$	—


Nonaccrual loans and leases as a % of total loans and leases		2.04	%		5.21	%		3.66	%		0.80	%		0.55	%

NPA ratio (4)		2.21			5.57			3.97			1.18			0.74


	December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006

Nonperforming assets, beginning of period	$	2,058,091		$	1,636,646		$	472,902		$	193,620		$	117,155
New nonperforming assets		925,699			2,767,295			1,082,063			468,056			222,043
Franklin impact, net		(322,000	)		(311,726	)		650,225			—			—
Acquired nonperforming assets		—			—			—			144,492			33,843
Returns to accruing status		(370,798	)		(215,336	)		(42,161	)		(24,952	)		(43,999	)
Loan and lease losses		(640,146	)		(1,148,135	)		(202,249	)		(120,959	)		(45,648	)
OREO losses		(12,096	)		(62,665	)		(19,582	)		(5,795	)		(543	)
Payments		(652,912	)		(497,076	)		(194,692	)		(86,093	)		(59,469	)
Sales		(141,086	)		(110,912	)		(109,860	)		(95,467	)		(29,762	)

Nonperforming assets, end of period	$	844,752		$	2,058,091		$	1,636,646		$	472,902		$	193,620


(1)		Franklin loans were reported as commercial accruing restructured loans at December 31, 2007. At December 31, 2008, Franklin loans were reported as nonaccrual commercial and industrial loans. At December 31, 2009, nonaccrual Franklin loans were reported as residential mortgage loans, home equity loans, and OREO, reflecting the 2009 first quarter restructuring.

(2)		Represents impaired loans obtained from the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.

(3)		Other NPAs represent certain investment securities backed by mortgage loans to borrowers with lower FICO scores.

(4)		Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, net other real estate, and other NPAs.

Huntington Bancshares Incorporated
Annual Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
(Unaudited)


	December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006

Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	—		$	—		$	10,889		$	10,474		$	170
Commercial real estate		—			—			59,425			25,064			1,711
Residential mortgage (excluding loans guaranteed by the U.S. Government)		53,983			78,915			71,553			67,391			35,555
Home equity		23,497			53,343			29,039			24,086			13,423
Other loans and leases		10,177			13,400			18,039			13,962			6,650


Total, excl. loans guaranteed by the U.S. Government		87,657			145,658			188,945			140,977			57,509

Add: loans guaranteed by U.S. Government		98,288			101,616			82,576			51,174			31,308


Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	185,945		$	247,274		$	271,521		$	192,151		$	88,817

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.23	%		0.40	%		0.46	%		0.35	%		0.22	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.26	%		0.28	%		0.20	%		0.13	%		0.12	%

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.49	%		0.68	%		0.66	%		0.48	%		0.34	%

Accruing troubled debt restructured loans

Commercial	$	171,830		$	157,049		$	185,333		$	1,187,368		$	—

Total residential mortgages		313,020			219,639			82,857			32,005			7,496
Other		76,586			52,871			41,094			—			—


Total accruing troubled debt restructured loans	$	561,436		$	429,559		$	309,284		$	1,219,373		$	7,496

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports

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