HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.3 - EXHIBIT 99.3

Attached files

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8-K - FORM 8-K - HUNTINGTON BANCSHARES INC /MD/	c20137e8vk.htm
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	c20137exv99w1.htm
EX-99.2 - EXHIBIT 99.2 - HUNTINGTON BANCSHARES INC /MD/	c20137exv99w2.htm

Exhibit 99.3

HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Review
June 2011

Table of Contents


Quarterly Key Statistics			1

Year to Date Key Statistics			2

Key Statistics Footnotes			3

Consolidated Balance Sheets			4

Loans and Leases Composition			5

Deposits Composition			6

Consolidated Quarterly Average Balance Sheets			7

Consolidated Quarterly Net Interest Margin Analysis			8 – 9

Selected Quarterly Income Statement Data			10 – 11

Quarterly Mortgage Banking Income			12

Quarterly Credit Reserves Analysis			13

Quarterly Net Charge-Off Analysis			14

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			15

Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			16

Quarterly Common Stock Summary, Capital, and Other Data			17

Consolidated Year to Date Average Balance Sheets			18

Consolidated Year to Date Net Interest Margin Analysis			19 – 20

Selected Year to Date Income Statement Data			21 – 22

Year to Date Mortgage Banking Income			23

Year to Date Credit Reserves Analysis			24

Year to Date Net Charge-Off Analysis			25

Year to Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			26

Year to Date Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			27

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
Quarterly Key Statistics⁽¹⁾
(Unaudited)


	2011						2010			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Second			First			Second			1Q11			2Q10

Net interest income	$	403,337		$	404,330		$	399,656			—	%		1	%
Provision for credit losses		35,797			49,385			193,406			(28	)		(81	)
Noninterest income		255,767			236,945			269,643			8			(5	)
Noninterest expense		428,409			430,699			413,810			(1	)		4

Income before income taxes		194,898			161,191			62,083			21			214
Provision for income taxes		48,980			34,745			13,319			41			268

Net income	$	145,918		$	126,446		$	48,764			15	%		199	%

Dividends on preferred shares		7,704			7,703			29,426			—			(74	)

Net income applicable to common shares	$	138,214		$	118,743		$	19,338			16	%		615	%


Net income per common share — diluted	$	0.16		$	0.14		$	0.03			14	%		433	%
Cash dividends declared per common share		0.01			0.01			0.01			—			—
Book value per common share at end of period		5.66			5.42			5.22			4			8
Tangible book value per common share at end of period		5.00			4.74			4.37			5			14

Average common shares — basic		863,358			863,359			716,580			—			20
Average common shares — diluted⁽²⁾		867,469			867,237			719,387			—			21

Return on average assets		1.11	%		0.96	%		0.38	%
Return on average common shareholders’ equity		11.6			10.3			2.1
Return on average common tangible shareholders’ equity⁽³⁾		13.3			12.7			3.8
Net interest margin ⁽⁴⁾		3.40			3.42			3.46
Efficiency ratio⁽⁵⁾		62.7			64.7			59.4
Effective tax rate		25.1			21.6			21.5

Average loans and leases	$	38,535,019		$	38,097,210		$	37,088,710			1			4
Average loans and leases — linked quarter annualized growth rate		4.6	%		3.1	%		1.2	%
Average earning assets	$	48,017,199		$	48,344,961		$	46,606,002			(1	)		3
Average total assets		52,769,511			53,368,554			51,703,334			(1	)		2
Average core deposits ⁽⁶⁾		39,106,550			39,274,265			37,798,482			—			3
Average core deposits — linked quarter annualized growth rate		(1.7)	%		3.3	%		5.7	%
Average shareholders’ equity	$	5,144,771		$	5,022,146		$	5,397,704			2			(5	)

Total assets at end of period		53,050,039			52,948,509			51,770,838			—			2
Total shareholders’ equity at end of period		5,252,643			5,038,599			5,438,436			4			(3	)

Net charge-offs (NCOs)		97,534			165,083			279,228			(41	)		(65	)
NCOs as a % of average loans and leases		1.01	%		1.73	%		3.01	%
Nonaccrual loans and leases (NALs)	$	614,225		$	636,257		$	1,201,349			(3	)		(49	)
NAL ratio		1.57	%		1.66	%		3.25	%
Nonperforming assets (NPAs)	$	652,937		$	690,886		$	1,582,702			(5	)		(59	)
NPA ratio		1.67	%		1.80	%		4.24	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		2.74			2.96			3.79
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		2.84			3.07			3.90
ACL as a % of NALs		181			185			120
ACL as a % of NPAs		170			170			91
Tier 1 leverage ratio ⁽⁷⁾		10.25			9.80			10.45
Tier 1 common risk-based capital ratio⁽⁷⁾		9.92			9.75			7.06
Tier 1 risk-based capital ratio ⁽⁷⁾		12.14			12.04			12.51
Total risk-based capital ratio ⁽⁷⁾		14.89			14.85			14.79
Tangible common equity / risk-weighted assets ratio⁽⁷⁾		9.79			9.51			7.37
Tangible equity / tangible assets ratio⁽⁸⁾		8.91			8.51			9.43
Tangible common equity / tangible assets ratio⁽⁹⁾		8.22			7.81			6.12

See Notes to the Year to Date and Quarterly Key Statistics.

HUNTINGTON BANCSHARES INCORPORATED
Year to Date Key Statistics⁽¹⁾
(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2011			2010			Amount			Percent

Net interest income	$	807,667		$	793,549		$	14,118			2	%
Provision for credit losses		85,182			428,414			(343,232	)		(80	)
Noninterest income		492,712			510,495			(17,783	)		(3	)
Noninterest expense		859,108			811,903			47,205			6

Income before income taxes		356,089			63,727			292,362			459
Provision (benefit) for income taxes		83,725			(24,774	)		108,499			N.R.

Net Income	$	272,364		$	88,501		$	183,863			208	%

Dividends on preferred shares		15,407			58,783			(43,376	)		(74	)

Net income applicable to common shares	$	256,957		$	29,718		$	227,239			765	%


Net income per common share — diluted	$	0.30		$	0.04		$	0.26			650	%
Cash dividends declared per common share		0.02			0.02			—			—

Average common shares — basic		863,358			716,450			146,908			21
Average common shares — diluted⁽²⁾		867,353			718,990			148,363			21

Return on average assets		1.03	%		0.35	%
Return on average common shareholders’ equity		11.0			1.6
Return on average tangible common shareholders’ equity⁽³⁾		13.4			3.2
Net interest margin⁽⁴⁾		3.41			3.47
Efficiency ratio⁽⁵⁾		63.7			59.7
Effective tax rate (benefit)		23.5			(38.9	)

Average loans and leases	$	38,317,324		$	37,034,653		$	1,282,670			3
Average earning assets		48,180,174			46,424,254			1,755,922			4
Average total assets		53,067,377			51,702,686			1,364,691			3
Average core deposits⁽⁶⁾		39,189,945			37,536,558			1,653,386			4
Average shareholders’ equity		5,083,797			5,380,805			(297,008	)		(6	)

Net charge-offs (NCOs)		262,617			517,709			(255,092	)		(49	)
NCOs as a % of average loans and leases		1.37	%		2.80	%

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

See Notes to the Year to Date and Quarterly Key Statistics.

Notes to the Year to Date and Quarterly Key Statistics


⁽¹⁾		Comparisons for all presented periods are impacted by a number of factors. Refer to Significant Items.

⁽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. The convertible preferred stock and warrants were repurchased in December 2010 and January 2011, respectively.

⁽³⁾		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.

⁽⁴⁾		On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁵⁾		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).

⁽⁶⁾		Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.

⁽⁷⁾		June 30, 2011, 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.

⁽⁸⁾		Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽⁹⁾		Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

Huntington Bancshares Incorporated

Consolidated Balance Sheets


										Change
	2011			2010						June ’11 vs ’10
(dollar amounts in thousands, except number of shares)	June 30,			December 31,			June 30,			Amount			Percent
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	983,882		$	847,888		$	1,125,776		$	(141,894	)		(13)	%
Interest-bearing deposits in banks		116,698			135,038			289,468			(172,770	)		(60	)
Trading account securities		98,771			185,404			106,858			(8,087	)		(8	)
Loans held for sale		224,860			793,285			777,843			(552,983	)		(71	)
Available-for-sale and other securities		8,099,716			9,895,244			8,803,718			(704,002	)		(8	)
Held-to-maturity securities		670,478			—			—			670,478			—
Loans and leases⁽¹⁾		39,126,452			38,106,507			36,969,695			2,156,757			6
Allowance for loan and lease losses		(1,071,126	)		(1,249,008	)		(1,402,160	)		331,034			(24	)

Net loans and leases		38,055,326			36,857,499			35,567,535			2,487,791			7

Bank owned life insurance		1,480,203			1,458,224			1,436,433			43,770			3
Premises and equipment		528,590			491,602			492,859			35,731			7
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		201,864			228,620			258,811			(56,947	)		(22	)
Accrued income and other assets		2,145,383			2,482,570			2,467,269			(321,886	)		(13	)

Total assets	$	53,050,039		$	53,819,642		$	51,770,838		$	1,279,201			2	%


Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	41,402,355		$	41,853,898		$	39,848,507		$	1,553,848			4	%
Short-term borrowings		2,022,946			2,040,732			1,093,218			929,728			85
Federal Home Loan Bank advances		220,224			172,519			599,798			(379,574	)		(63	)
Other long-term debt		1,635,247			2,144,092			2,569,934			(934,687	)		(36	)
Subordinated notes		1,496,461			1,497,216			1,195,210			301,251			25
Accrued expenses and other liabilities		1,020,163			1,130,643			1,025,735			(5,572	)		(1	)

Total liabilities		47,797,396			48,839,100			46,332,402			1,464,994			3


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		—			—			1,333,433			(1,333,433	)		(100	)

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

Common stock — Par value of $0.01		8,643			8,642			7,175			1,468			20
Capital surplus		7,588,248			7,630,093			6,739,069			849,179			13
Less treasury shares, at cost		(9,357	)		(8,771	)		(9,235	)		(122	)		1
Accumulated other comprehensive loss		(122,543	)		(197,496	)		(84,398	)
Retained earnings		(2,574,855	)		(2,814,433	)		(2,910,115	)		335,260			(12	)

Total shareholders’ equity		5,252,643			4,980,542			5,438,436			(185,793	)		(3	)

Total liabilities and shareholders’ equity	$	53,050,039		$	53,819,642		$	51,770,838		$	1,279,201			2	%


Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		864,310,281			864,195,369			717,487,003
Common shares outstanding		863,323,099			863,319,435			716,622,592
Treasury shares outstanding		987,182			875,934			864,411
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		362,507			362,507			1,760,578


⁽¹⁾		See page 5 for detail of loans and leases.

⁽²⁾		See page 6 for detail of deposits.

Huntington Bancshares Incorporated
Loans and Leases Composition


	2011								2010
(dollar amounts in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
	(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	13,544	35	%	$	13,299	35	%	$	13,063	34	%	$	12,425	33	%	$	12,392	34	%
Commercial real estate:
Construction		591	2			587	2			650	2			738	2			1,106	3
Commercial		5,573	14			5,711	15			6,001	16			6,174	16			6,078	16

Commercial real estate		6,164	16			6,298	17			6,651	18			6,912	18			7,184	19

Total commercial		19,708	51			19,597	52			19,714	52			19,337	51			19,576	53

Consumer:
Automobile		6,190	16			5,802	15			5,614	15			5,385	14			4,847	13
Home equity		7,952	20			7,784	20			7,713	20			7,690	21			7,510	20
Residential mortgage		4,751	12			4,517	12			4,500	12			4,511	12			4,354	12
Other consumer		525	1			546	1			566	1			578	2			683	2

Total consumer		19,418	49			18,649	48			18,393	48			18,164	49			17,394	47

Total loans and leases	$	39,126	100	%	$	38,246	100	%	$	38,107	100	%	$	37,501	100	%	$	36,970	100	%


Ending Balances by Business Segment:
Retail and Business Banking	$	12,019	31	%	$	11,786	31	%	$	11,717	31	%	$	11,804	31	%	$	11,772	32	%
Regional and Commercial Banking		8,291	21			7,917	21			7,792	20			7,373	20			7,317	20
AFCRE		13,273	34			13,154	34			13,283	35			13,167	35			12,931	35
WGH		5,493	14			5,255	14			5,176	14			5,066	14			4,864	13
Treasury / Other		50	—			134	—			139	—			91	—			86	—

Total loans and leases	$	39,126	100	%	$	38,246	100	%	$	38,107	100	%	$	37,501	100	%	$	36,970	100	%


	2011								2010
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:
Retail and Business Banking	$	11,948	31	%	$	11,780	31	%	$	11,274	30	%	$	11,817	32	%	$	11,809	32	%
Regional and Commercial Banking		8,069	21			7,824	21			7,657	20			7,419	20			7,257	20
AFCRE		13,145	34			13,208	35			13,299	35			13,085	35			12,890	35
WGH		5,297	14			5,192	13			5,050	14			4,894	13			4,729	12
Treasury / Other		76	—			94	—			520	1			—	—			404	1

Total loans and leases	$	38,535	100	%	$	38,098	100	%	$	37,800	100	%	$	37,215	100	%	$	37,089	100	%


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

Huntington Bancshares Incorporated
Deposits Composition


	2011								2010
(dollar amounts in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
	*(Unaudited)*				(Unaudited)								(Unaudited)				(Unaudited)
Ending Balances by Type:
Demand deposits — noninterest-bearing	$	8,210	20	%	$	7,597	18	%	$	7,217	17	%	$	6,926	17	%	$	6,463	16	%
Demand deposits — interest-bearing		5,642	14			5,532	13			5,469	13			5,347	13			5,850	15
Money market deposits		12,643	31			13,105	32			13,410	32			12,679	31			11,437	29
Savings and other domestic deposits		4,752	11			4,762	12			4,643	11			4,613	11			4,652	12
Core certificates of deposit		7,936	19			8,208	20			8,525	20			8,765	21			8,974	23

Total core deposits		39,183	95			39,204	95			39,264	93			38,330	93			37,376	95
Other domestic deposits of $250,000 or more		436	1			531	1			675	2			730	2			678	2
Brokered deposits and negotiable CDs		1,486	4			1,253	3			1,532	4			1,576	4			1,373	3
Deposits in foreign offices		297	—			378	1			383	1			436	1			422	—

Total deposits	$	41,402	100	%	$	41,366	100	%	$	41,854	100	%	$	41,072	100	%	$	39,849	100	%


Total core deposits:
Commercial	$	13,541	35	%	$	12,785	33	%	$	12,476	32	%	$	12,262	32	%	$	11,515	31	%
Consumer		25,642	65			26,419	67			26,788	68			26,068	68			25,861	69

Total core deposits	$	39,183	100	%	$	39,204	100	%	$	39,264	100	%	$	38,330	100	%	$	37,376	100	%


Ending Balances by Business Segment:
Retail and Business Banking	$	28,325	68	%	$	28,984	70	%	$	29,298	70	%	$	28,808	70	%	$	28,542	72	%
Regional and Commercial Banking		3,539	9			3,589	9			3,538	8			3,245	8			2,861	7
AFCRE		819	2			804	2			753	2			739	2			725	2
WGH		7,708	19			7,363	17			7,449	18			7,184	17			6,734	17
Treasury / Other⁽¹⁾		1,011	2			626	2			816	2			1,096	3			987	2

Total deposits	$	41,402	100	%	$	41,366	100	%	$	41,854	100	%	$	41,072	100	%	$	39,849	100	%


	2011								2010
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:
Retail and Business Banking	$	28,780	70	%	$	29,139	70	%	$	29,241	70	%	$	28,874	71	%	$	28,592	71	%
Regional and Commercial Banking		3,484	8			3,666	9			3,471	8			3,090	8			3,001	7
AFCRE		784	2			763	2			752	2			714	1			672	2
WGH		7,467	18			7,394	17			7,333	18			6,867	17			6,994	17
Treasury / Other ⁽¹⁾		739	2			702	2			907	2			1,101	3			1,108	3

Total deposits	$	41,254	100	%	$	41,664	100	%	$	41,704	100	%	$	40,646	100	%	$	40,367	100	%


⁽¹⁾		Comprised primarily of national market deposits.

Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)


																Change
	2011						2010									2Q11 vs 2Q10
(dollar amounts in millions)	Second			First			Fourth			Third			Second			Amount			Percent
Assets
Interest-bearing deposits in banks	$	131		$	130		$	218		$	282		$	309		$	(178	)		(58	)%
Trading account securities		112			144			297			110			127			(15	)		(12	)
Federal funds sold and securities purchased under resale agreements		21			—			—			—			—			21			—
Loans held for sale		181			420			779			663			323			(142	)		(44	)
Available-for-sale and other securities:
Taxable		8,428			9,108			9,747			8,876			8,369			59			1
Tax-exempt		436			445			449			365			389			47			12

Total available-for-sale and other securities		8,864			9,553			10,196			9,241			8,758			106			1

Held-to-maturity securities — taxable		174			—			—			—			—			174			—
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		13,370			13,121			12,767			12,393			12,244			1,126			9
Commercial real estate:
Construction		554			611			716			989			1,279			(725	)		(57	)
Commercial		5,679			5,913			6,082			6,084			6,085			(406	)		(7	)

Commercial real estate		6,233			6,524			6,798			7,073			7,364			(1,131	)		(15	)

Total commercial		19,603			19,645			19,565			19,466			19,608			(5	)		(0	)

Consumer:
Automobile		5,954			5,701			5,520			5,140			4,634			1,320			28
Home equity		7,874			7,728			7,709			7,567			7,544			330			4
Residential mortgage		4,566			4,465			4,430			4,389			4,608			(42	)		(1	)
Other consumer		538			559			576			653			695			(157	)		(23	)

Total consumer		18,932			18,453			18,235			17,749			17,481			1,451			8

Total loans and leases		38,535			38,098			37,800			37,215			37,089			1,446			4
Allowance for loan and lease losses		(1,128	)		(1,231	)		(1,323	)		(1,384	)		(1,506	)		378			(25	)

Net loans and leases		37,407			36,867			36,477			35,831			35,583			1,824			5

Total earning assets		48,018			48,345			49,290			47,511			46,606			1,412			3

Cash and due from banks		1,068			1,299			1,187			1,618			1,509			(441	)		(29	)
Intangible assets		652			665			679			695			710			(58	)		(8	)
All other assets		4,160			4,291			4,313			4,277			4,384			(224	)		(5	)

Total assets	$	52,770		$	53,369		$	54,146		$	52,717		$	51,703		$	1,067			2	%


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	7,806		$	7,333		$	7,188		$	6,768		$	6,849		$	957			14	%
Demand deposits — interest-bearing		5,565			5,357			5,317			5,319			5,971			(406	)		(7	)
Money market deposits		12,879			13,492			13,158			12,336			11,103			1,776			16
Savings and other domestic deposits		4,778			4,701			4,640			4,639			4,677			101			2
Core certificates of deposit		8,079			8,391			8,646			8,948			9,199			(1,120	)		(12	)

Total core deposits		39,107			39,274			38,949			38,010			37,799			1,308			3
Other domestic deposits of $250,000 or more		467			606			737			690			661			(194	)		(29	)
Brokered deposits and negotiable CDs		1,333			1,410			1,575			1,495			1,505			(172	)		(11	)
Deposits in foreign offices		347			374			443			451			402			(55	)		(14	)

Total deposits		41,254			41,664			41,704			40,646			40,367			887			2
Short-term borrowings		2,112			2,134			2,134			1,739			966			1,146			119
Federal Home Loan Bank advances		97			30			112			188			212			(115	)		(54	)
Subordinated notes and other long-term debt		3,249			3,525			3,558			3,672			3,836			(587	)		(15	)

Total interest-bearing liabilities		38,906			40,020			40,320			39,477			38,532			374			1

All other liabilities		913			994			993			952			924			(11	)		(1	)
Shareholders’ equity		5,145			5,022			5,645			5,520			5,398			(253	)		(5	)

Total liabilities and shareholders’ equity	$	52,770		$	53,369		$	54,146		$	52,717		$	51,703		$	1,067			2	%


⁽¹⁾		Includes nonaccrual loans.

Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin — Interest Income / Expense
(Unaudited)


	2011				2010
(dollar amounts in millions)	Second		First		Fourth		Third		Second
Assets
Interest-bearing deposits in banks	$	73	$	37	$	343	$	151	$	156
Trading account securities		447		494		1,472		331		554
Federal funds sold and securities purchased under resale agreements		5		—		—		—		—
Loans held for sale		2,247		4,284		7,799		9,525		4,059
Available-for-sale and other securities:
Taxable		54,603		57,652		59,025		61,438		59,614
Tax-exempt		4,385		5,237		5,150		4,285		4,488

Total available-for-sale and other securities		58,988		62,889		64,175		65,723		64,102
Held-to-maturity securities — taxable		1,287		—		—		—		—
Loans and leases:
Commercial:
Commercial and industrial		145,675		149,964		161,251		162,678		164,332
Commercial real estate:
Construction		4,718		5,138		5,608		7,157		8,443
Commercial		55,947		58,096		60,963		60,821		56,716

Commercial real estate		60,665		63,234		66,571		67,978		65,159

Total commercial		206,340		213,198		227,822		230,656		229,491

Consumer:
Automobile		75,110		73,330		75,951		75,005		74,689
Home equity		88,358		87,659		89,516		89,669		99,135
Residential mortgage		52,700		53,127		53,431		54,560		54,116
Other consumer		10,416		10,804		11,490		11,680		11,841

Total consumer		226,584		224,920		230,388		230,914		239,781

Total loans and leases		432,924		438,118		458,210		461,570		469,272

Total earning assets	$	495,971	$	505,822	$	531,999	$	537,300	$	538,143


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits — interest-bearing		1,240		1,217		1,770		2,255		3,243
Money market deposits		12,807		16,699		25,654		26,690		25,644
Savings and other domestic deposits		8,870		9,410		10,527		11,585		12,516
Core certificates of deposit		41,041		42,815		46,076		52,044		61,353

Total core deposits		63,958		70,141		84,027		92,574		102,756
Other domestic deposits of $250,000 or more		1,171		1,620		2,244		2,225		2,254
Brokered deposits and negotiable CDs		2,948		3,850		6,082		8,334		9,618
Deposits in foreign offices		227		185		194		247		194

Total deposits		68,304		75,796		92,547		103,380		114,822
Short-term borrowings		856		949		1,071		945		515
Federal Home Loan Bank advances		215		220		272		602		1,034
Subordinated notes and other long-term debt		19,425		20,582		19,107		19,780		19,626

Total interest bearing liabilities		88,800		97,547		112,997		124,707		135,997

Net interest income	$	407,171	$	408,275	$	419,002	$	412,593	$	402,146

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


	2011						2010
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Assets
Interest-bearing deposits in banks		0.22	%		0.11	%		0.63	%		0.21	%		0.20	%
Trading account securities		1.59			1.37			1.98			1.20			1.74
Federal funds sold and securities purchased under resale agreements		0.09			—			—			—			—
Loans held for sale		4.97			4.08			4.01			5.75			5.02
Available-for-sale and other securities:
Taxable		2.59			2.53			2.42			2.77			2.85
Tax-exempt		4.02			4.70			4.59			4.70			4.62

Total available-for-sale and other securities		2.66			2.63			2.52			2.84			2.93
Held-to-maturity securities — taxable		2.96			—			—			—			—
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		4.31			4.57			4.94			5.14			5.31
Commercial real estate:
Construction		3.37			3.36			3.07			2.83			2.61
Commercial		3.90			3.93			3.92			3.91			3.69

Commercial real estate		3.84			3.88			3.83			3.76			3.49

Total commercial		4.16			4.34			4.56			4.64			4.63

Consumer:
Automobile		5.06			5.22			5.46			5.79			6.46
Home equity		4.49			4.54			4.64			4.74			5.26
Residential mortgage		4.62			4.76			4.82			4.97			4.70
Other consumer		7.76			7.85			7.92			7.10			6.84

Total consumer		4.79			4.90			5.04			5.19			5.49

Total loans and leases		4.47			4.61			4.79			4.90			5.04

Total earning assets		4.14	%		4.24	%		4.29	%		4.49	%		4.63	%


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits — interest-bearing		0.09			0.09			0.13			0.17			0.22
Money market deposits		0.40			0.50			0.77			0.86			0.93
Savings and other domestic deposits		0.74			0.81			0.90			0.99			1.07
Core certificates of deposit		2.04			2.07			2.11			2.31			2.68

Total core deposits		0.82			0.89			1.05			1.18			1.33
Other domestic deposits of $250,000 or more		1.01			1.08			1.21			1.28			1.37
Brokered deposits and negotiable CDs		0.89			1.11			1.53			2.21			2.56
Deposits in foreign offices		0.26			0.20			0.17			0.22			0.19

Total deposits		0.82			0.90			1.06			1.21			1.37
Short-term borrowings		0.16			0.18			0.20			0.22			0.21
Federal Home Loan Bank advances		0.88			2.98			0.95			1.25			1.93
Subordinated notes and other long-term debt		2.39			2.34			2.15			2.15			2.05

Total interest-bearing liabilities		0.91			0.99			1.11			1.25			1.41

Net interest rate spread		3.19			3.21			3.16			3.24			3.22
Impact of noninterest-bearing funds on margin		0.21			0.21			0.21			0.21			0.24

Net interest margin		3.40	%		3.42	%		3.37	%		3.45	%		3.46	%

Commercial Loan Derivative Impact
(Unaudited)


	2011						2010
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Commercial loans⁽²⁾⁽³⁾		3.83	%		3.84	%		3.96	%		3.97	%		3.79	%
Impact of commercial loan derivatives		0.33			0.50			0.60			0.67			0.84

Total commercial — as reported		4.16	%		4.34	%		4.56	%		4.64	%		4.63	%


Average 30 day LIBOR		0.20	%		0.26	%		0.26	%		0.29	%		0.31	%


⁽¹⁾		Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 10 for the FTE adjustment.

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

⁽³⁾		Includes the impact of nonaccrual loans.

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


(dollar amounts in thousands,	2011						2010									2Q11 vs 2Q10
except per share amounts)	Second			First			Fourth			Third			Second			Amount			Percent
Interest income	$	492,137		$	501,877		$	528,291		$	534,669		$	535,653		$	(44,803	)		(8)	%
Interest expense		88,800			97,547			112,997			124,707			135,997			(47,197	)		(35	)

Net interest income		403,337			404,330			415,294			409,962			399,656			3,681			1
Provision for credit losses		35,797			49,385			86,973			119,160			193,406			(157,609	)		(81	)

Net interest income after provision for credit losses		367,540			354,945			328,321			290,802			206,250			161,290			78

Service charges on deposit accounts		60,675			54,324			55,810			65,932			75,934			(15,259	)		(20	)
Mortgage banking income		23,835			22,684			53,169			52,045			45,530			(21,695	)		(48	)
Trust services		30,392			30,742			29,394			26,997			28,399			1,993			7
Electronic banking		31,728			28,786			28,900			28,090			28,107			3,621			13
Insurance income		16,399			17,945			19,678			19,801			18,074			(1,675	)		(9	)
Brokerage income		20,819			20,511			16,953			16,575			18,425			2,394			13
Bank owned life insurance income		17,602			14,819			16,113			14,091			14,392			3,210			22
Automobile operating lease income		7,307			8,847			10,463			11,356			11,842			(4,535	)		(38	)
Securities gains (losses)		1,507			40			(103	)		(296	)		156			1,351			866
Other income		45,503			38,247			33,843			32,552			28,784			16,719			58

Total noninterest income		255,767			236,945			264,220			267,143			269,643			(13,876	)		(5	)

Personnel costs		218,570			219,028			212,184			208,272			194,875			23,695			12
Outside data processing and other services		43,889			40,282			40,943			38,553			40,670			3,219			8
Net occupancy		26,885			28,436			26,670			26,718			25,388			1,497			6
Deposit and other insurance expense		23,823			17,896			23,320			23,406			26,067			(2,244	)		(9	)
Professional services		20,080			13,465			21,021			20,672			24,388			(4,308	)		(18	)
Equipment		21,921			22,477			22,060			21,651			21,585			336			2
Marketing		20,102			16,895			16,168			20,921			17,682			2,420			14
Amortization of intangibles		13,386			13,370			15,046			15,145			15,141			(1,755	)		(12	)
OREO and foreclosure expense		4,398			3,931			10,502			12,047			4,970			(572	)		(12	)
Automobile operating lease expense		5,434			6,836			8,142			9,159			9,667			(4,233	)		(44	)
Other expense		29,921			48,083			38,537			30,765			33,377			(3,456	)		(10	)

Total noninterest expense		428,409			430,699			434,593			427,309			413,810			14,599			4

Income before income taxes		194,898			161,191			157,948			130,636			62,083			132,815			214
Provision (benefit) for income taxes		48,980			34,745			35,048			29,690			13,319			35,661			268

Net income	$	145,918		$	126,446		$	122,900		$	100,946		$	48,764		$	97,154			199	%

Dividends on preferred shares		7,704			7,703			83,754			29,495			29,426			(21,722	)		(74	)

Net income applicable to common shares	$	138,214		$	118,743		$	39,146		$	71,451		$	19,338		$	118,876			615	%


Average common shares — basic		863,358			863,359			757,924			716,911			716,580			146,778			20	%
Average common shares — diluted⁽²⁾		867,469			867,237			760,582			719,567			719,387			148,082			21	%

Per common share
Net income — basic	$	0.16		$	0.14		$	0.05		$	0.10		$	0.03		$	0.13			433	%
Net income — diluted		0.16			0.14			0.05			0.10			0.03			0.13			433
Cash dividends declared		0.01			0.01			0.01			0.01			0.01			—			—

Return on average total assets		1.11	%		0.96	%		0.90	%		0.76	%		0.38	%		0.73	%		192
Return on average common shareholders’ equity		11.6			10.3			3.8			7.4			2.1			9.5			452
Return on average common tangible shareholders’ equity⁽³⁾		13.3			12.7			5.6			10.0			3.8			9.5			250
Net interest margin⁽⁴⁾		3.40			3.42			3.37			3.45			3.46			(0.06	)		(2	)
Efficiency ratio⁽⁵⁾		62.7			64.7			61.4			60.6			59.4			3.3			6
Effective tax rate		25.1			21.6			22.2			22.7			21.5			3.6			17

Revenue — fully-taxable equivalent (FTE)
Net interest income	$	403,337		$	404,330		$	415,294		$	409,962		$	399,656		$	3,681			1
FTE adjustment		3,834			3,945			3,708			2,631			2,490			1,344			54

Net interest income⁽⁴⁾		407,171			408,275			419,002			412,593			402,146			5,025			1
Noninterest income		255,767			236,945			264,220			267,143			269,643			(13,876	)		(5	)

Total revenue⁽⁴⁾	$	662,938		$	645,220		$	683,222		$	679,736		$	671,789		$	(8,851	)		(1)	%


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

⁽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. The convertible preferred stock and warrants were repurchased in December 2010 and January 2011, respectively.

⁽³⁾		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.

⁽⁴⁾		On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁵⁾		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)


	2011						2010									2Q11 vs 2Q10
(dollar amounts in thousands, except as noted)	Second			First			Fourth			Third			Second			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	11,522		$	19,799		$	48,236		$	35,840		$	19,778		$	(8,256	)		(42	)%
Servicing fees		12,417			12,546			11,474			12,053			12,178			239			2
Amortization of capitalized servicing		(9,052	)		(9,863	)		(13,960	)		(13,003	)		(10,137	)		1,085			(11	)
Other mortgage banking income		4,259			3,769			4,789			4,966			3,664			595			16

Subtotal		19,146			26,251			50,539			39,856			25,483			(6,337	)		(25	)

MSR valuation adjustment⁽¹⁾		(8,292	)		774			31,319			(12,047	)		(26,221	)		17,929			(68	)
Net trading gains (losses) related to MSR hedging		12,981			(4,341	)		(28,689	)		24,236			46,268			(33,287	)		(72	)

Total mortgage banking income	$	23,835		$	22,684		$	53,169		$	52,045		$	45,530		$	(21,695	)		(48	)%


Mortgage originations (in millions)	$	916		$	929		$	1,827		$	1,619		$	1,161		$	(245	)		(21	)
Average trading account securities used to hedge MSRs (in millions)		22			46			184			23			28			(6	)		(21	)%
Capitalized mortgage servicing rights⁽²⁾		189,740			202,559			196,194			161,594			179,138			10,602			6
Total mortgages serviced for others (in millions)⁽²⁾		16,315			16,456			15,933			15,713			15,954			361			2
MSR % of investor servicing portfolio⁽²⁾		1.16	%		1.23	%		1.23	%		1.03	%		1.12	%		0.04	%		357


Net impact of MSR hedging

MSR valuation adjustment⁽¹⁾	$	(8,292	)	$	774		$	31,319		$	(12,047	)	$	(26,221	)	$	17,929			(68	)%
Net trading gains (losses) related to MSR hedging		12,981			(4,341	)		(28,689	)		24,236			46,268			(33,287	)		(72	)
Net interest income related to MSR hedging		84			99			713			32			58			26			45

Net gain (loss) of MSR hedging	$	4,773		$	(3,468	)	$	3,343		$	12,221		$	20,105		$	(15,332	)		(76	)%


⁽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)


	2011						2010
(dollar amounts in thousands)	Second			First			Fourth			Third			Second

Allowance for loan and lease losses, beginning of period	$	1,133,226		$	1,249,008		$	1,336,352		$	1,402,160		$	1,477,969
Loan and lease losses		(128,701	)		(199,007	)		(205,587	)		(221,144	)		(312,954	)
Recoveries of loans previously charged off		31,167			33,924			33,336			36,630			33,726

Net loan and lease losses		(97,534	)		(165,083	)		(172,251	)		(184,514	)		(279,228	)

Provision for loan and lease losses		36,948			49,301			84,907			118,788			203,633
Allowance of assets sold		(1,514	)		—			—			(82	)		(214	)

Allowance for loan and lease losses, end of period	$	1,071,126		$	1,133,226		$	1,249,008		$	1,336,352		$	1,402,160

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	42,211		$	42,127		$	40,061		$	39,689		$	49,916

Provision for (reduction in) unfunded loan commitments and letters of credit losses		(1,151	)		84			2,066			372			(10,227	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	41,060		$	42,211		$	42,127		$	40,061		$	39,689

Total allowance for credit losses, end of period	$	1,112,186		$	1,175,437		$	1,291,135		$	1,376,413		$	1,441,849


Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		2.74	%		2.96	%		3.28	%		3.56	%		3.79	%
Nonaccrual loans and leases (NALs)		174			178			161			136			117
Nonperforming assets (NPAs)		164			164			148			121			89

Total allowance for credit losses (ACL) as % of:
Total loans and leases		2.84	%		3.07	%		3.39	%		3.67	%		3.90	%
Nonaccrual loans and leases		181			185			166			140			120
Nonperforming assets		170			170			153			125			91

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


	2011						2010
(dollar amounts in thousands)	Second			First			Fourth			Third			Second

Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	18,704		$	42,191		$	59,124		$	62,241		$	58,128
Commercial real estate:
Construction		4,145			28,400			11,084			17,936			45,562
Commercial		23,450			39,283			33,787			45,725			36,169

Commercial real estate		27,595			67,683			44,871			63,661			81,731

Total commercial		46,299			109,874			103,995			125,902			139,859

Consumer:
Automobile		2,255			4,712			7,035			5,570			5,436
Home equity⁽¹⁾		25,441			26,715			29,175			27,827			44,470
Residential mortgage⁽²⁾⁽³⁾		16,455			18,932			26,775			18,961			82,848
Other consumer		7,084			4,850			5,271			6,254			6,615

Total consumer		51,235			55,209			68,256			58,612			139,369

Total net charge-offs	$	97,534		$	165,083		$	172,251		$	184,514		$	279,228


Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		0.56	%		1.29	%		1.85	%		2.01	%		1.90	%
Commercial real estate:
Construction		2.99			18.59			6.19			7.25			14.25
Commercial		1.65			2.66			2.22			3.01			2.38

Commercial real estate		1.77			4.15			2.64			3.60			4.44

Total commercial		0.94			2.24			2.13			2.59			2.85

Consumer:
Automobile		0.15			0.33			0.51			0.43			0.47
Home equity⁽¹⁾		1.29			1.38			1.51			1.47			2.36
Residential mortgage⁽²⁾⁽³⁾		1.44			1.70			2.42			1.73			7.19
Other consumer		5.27			3.47			3.66			3.83			3.81

Total consumer		1.08			1.20			1.50			1.32			3.19

Net charge-offs as a % of average loans		1.01	%		1.73	%		1.82	%		1.98	%		3.01	%


⁽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)


	2011						2010
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,

Nonaccrual loans and leases (NALs):
Commercial and industrial	$	229,327		$	260,397		$	346,720		$	398,353		$	429,561
Commercial real estate		291,500			305,793			363,692			478,754			663,103
Residential mortgage		59,853			44,812			45,010			82,984			86,486
Home equity		33,545			25,255			22,526			21,689			22,199

Total nonaccrual loans and leases		614,225			636,257			777,948			981,780			1,201,349

Other real estate, net:
Residential		20,803			28,668			31,649			65,775			71,937
Commercial		17,909			25,961			35,155			57,309			67,189

Total other real estate, net		38,712			54,629			66,804			123,084			139,126
Impaired loans held for sale⁽¹⁾		—			—			—			—			242,227

Total nonperforming assets	$	652,937		$	690,886		$	844,752		$	1,104,864		$	1,582,702


Nonperforming Franklin assets:
Residential mortgage	$	—		$	—		$	—		$	—		$	—
Home Equity		—			—			—			—			—
OREO		883			5,971			9,477			15,330			24,515
Impaired loans held for sale		—			—			—			—			242,227

Total nonperforming Franklin assets	$	883		$	5,971		$	9,477		$	15,330		$	266,742


Nonaccrual loans and leases as a % of total loans and leases		1.57	%		1.66	%		2.04	%		2.62	%		3.25	%

NPA ratio⁽²⁾		1.67			1.80			2.21			2.94			4.24


	2011						2010
	Second			First			Fourth			Third			Second

Nonperforming assets, beginning of period	$	690,886		$	844,752		$	1,104,864		$	1,582,702		$	1,918,368
New nonperforming assets		210,255			192,044			237,802			278,388			171,595
Franklin impact, net		(5,088	)		(3,506	)		(5,853	)		(251,412	)		(86,715	)
Returns to accruing status		(68,429	)		(70,886	)		(100,051	)		(111,168	)		(78,739	)
Loan and lease losses		(74,945	)		(128,730	)		(126,047	)		(151,013	)		(173,159	)
OREO losses		388			1,492			(5,117	)		(5,302	)		2,483
Payments		(73,009	)		(87,041	)		(191,296	)		(210,612	)		(140,881	)
Sales		(27,121	)		(57,239	)		(69,550	)		(26,719	)		(30,250	)

Nonperforming assets, end of period	$	652,937		$	690,886		$	844,752		$	1,104,864		$	1,582,702


⁽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.

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

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


	2011						2010
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,

Accruing loans and leases past due 90 days or more:

Commercial and industrial	$	—		$	—		$	—		$	—		$	—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		33,975			41,858			53,983			56,803			47,036
Home equity		17,451			24,130			23,497			27,160			26,797
Other consumer		6,227			7,578			10,177			11,423			9,533

Total, excl. loans guaranteed by the U.S. Government		57,653			73,566			87,657			95,386			83,366
Add: loans guaranteed by U.S. Government		76,979			94,440			98,288			94,249			95,421

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	134,632		$	168,006		$	185,945		$	189,635		$	178,787


Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.15	%		0.19	%		0.23	%		0.25	%		0.23	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.19	%		0.25			0.26			0.26			0.26

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.34	%		0.44			0.49			0.51			0.49

Accruing troubled debt restructured loans:
Commercial	$	240,126		$	206,462		$	222,632		$	157,971		$	141,353
Residential mortgage		313,772			333,492			328,411			304,356			281,473
Other consumer		75,036			78,488			76,586			73,210			65,061

Total accruing troubled debt restructured loans	$	628,934		$	618,442		$	627,629		$	535,537		$	487,887

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

Quarterly common stock summary


	2011				2010
(dollar amounts in thousands, except per share amounts)	Second		First		Fourth		Third		Second

Common stock price, per share
High⁽¹⁾	$	6.920	$	7.700	$	7.000	$	6.450	$	7.400
Low⁽¹⁾		6.000		6.380		5.430		5.040		5.260
Close		6.560		6.640		6.870		5.690		5.540
Average closing price		6.506		6.981		6.050		5.787		6.130

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

Common shares outstanding
Average — basic		863,358		863,359		757,924		716,911		716,580
Average — diluted⁽²⁾		867,469		867,237		760,582		719,567		719,387
Ending		863,323		863,399		863,319		717,132		716,623

Book value per common share	$	5.66	$	5.42	$	5.35	$	5.39	$	5.22
Tangible book value per common share⁽³⁾		5.00		4.74		4.66		4.55		4.37


	2011						2010
(dollar amounts in millions)	June 30,			March 31,			December 31,			September 30,			June 30,

Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	5,253		$	5,039		$	4,981		$	5,567		$	5,438
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(202	)		(215	)		(229	)		(244	)		(259	)
Add: related deferred tax liability⁽³⁾		71			75			80			85			91

Total tangible equity		4,678			4,455			4,388			4,964			4,826
Less: preferred equity		(363	)		(363	)		(363	)		(1,700	)		(1,696	)

Total tangible common equity	$	4,315		$	4,092		$	4,025		$	3,264		$	3,130


Total assets	$	53,050		$	52,949		$	53,820		$	53,247		$	51,771
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(202	)		(215	)		(229	)		(244	)		(259	)
Add: related deferred tax liability⁽³⁾		71			75			80			85			91

Total tangible assets	$	52,475		$	52,365		$	53,227		$	52,644		$	51,159


Tangible equity / tangible asset ratio		8.91	%		8.51	%		8.24	%		9.43	%		9.43	%
Tangible common equity / tangible asset ratio		8.22			7.81			7.56			6.20			6.12

Other capital data:
Total risk-weighted assets⁽⁵⁾	$	44,081		$	43,025		$	43,471		$	42,759		$	42,486

Tier 1 leverage ratio⁽⁵⁾		10.25	%		9.80	%		9.41	%		10.54	%		10.45	%
Tier 1 common risk-based capital ratio⁽⁵⁾		9.92			9.75			9.29			7.39			7.06
Tier 1 risk-based capital ratio⁽⁵⁾		12.14			12.04			11.55			12.82			12.51
Total risk-based capital ratio⁽⁵⁾		14.89			14.85			14.46			15.08			14.79
Tangible common equity / risk-weighted assets ratio⁽⁵⁾		9.79			9.51			9.26			7.63			7.37

Other data:
Number of employees (full-time equivalent)		11,457			11,319			11,341			11,279			11,117
Number of domestic full-service branches⁽⁴⁾		643			622			620			617			617


⁽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. The convertible preferred stock and warrants were repurchased in December 2010 and January 2011, respectively.

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

⁽⁴⁾		Includes 11 WGH offices.

⁽⁵⁾		June 30, 2011, figures are estimated.

Huntington Bancshares Incorporated
Consolidated Year to Date Average Balance Sheets
(Unaudited)


	YTD Average Balances
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2011			2010			Amount			Percent
Assets
Interest bearing deposits in banks	$	130		$	328		$	(198	)		(60	)%
Trading account securities		128			112			16			14
Federal funds sold and securities purchased under resale agreements		11			—			11			—
Loans held for sale		300			334			(34	)		(10	)
Available-for-sale and other securities:
Taxable		8,766			8,197			569			7
Tax-exempt		441			418			23			6

Total available-for-sale and other securities		9,207			8,615			592			7
Held-to-maturity securities — taxable		87			—			87			—
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		13,246			12,279			967			8
Commercial real estate:
Construction		582			1,344			(762	)		(57	)
Commercial		5,795			6,176			(381	)		(6	)

Commercial real estate		6,377			7,520			(1,143	)		(15	)

Total commercial		19,623			19,799			(176	)		(1	)

Consumer:
Automobile		5,829			4,443			1,386			31
Home equity		7,801			7,541			260			3
Residential mortgage		4,516			4,543			(27	)		(1	)
Other consumer		548			709			(161	)		(23	)

Total consumer		18,694			17,236			1,458			8

Total loans and leases		38,317			37,035			1,282			3
Allowance for loan and lease losses		(1,179	)		(1,508	)		329			(22	)

Net loans and leases		37,138			35,527			1,611			5

Total earning assets		48,180			46,424			1,756			4

Cash and due from banks		1,183			1,634			(451	)		(28	)
Intangible assets		659			717			(58	)		(8	)
All other assets		4,224			4,436			(212	)		(5	)

Total assets	$	53,067		$	51,703		$	1,364			3	%


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	7,571		$	6,739		$	832			12	%
Demand deposits — interest-bearing		5,462			5,844			(382	)		(7	)
Money market deposits		13,184			10,723			2,461			23
Savings and other domestic deposits		4,740			4,645			95			2
Core certificates of deposit		8,234			9,586			(1,352	)		(14	)

Total core deposits		39,191			37,537			1,654			4
Other domestic deposits of $250,000 or more		536			680			(144	)		(21	)
Brokered deposits and negotiable CDs		1,372			1,673			(301	)		(18	)
Deposits in foreign offices		360			406			(46	)		(11	)

Total deposits		41,459			40,296			1,163			3
Short-term borrowings		2,123			947			1,176			124
Federal Home Loan Bank advances		63			196			(133	)		(68	)
Subordinated notes and other long-term debt		3,386			3,948			(562	)		(14	)

Total interest-bearing liabilities		39,460			38,648			812			2

All other liabilities		952			935			17			2
Shareholders’ equity		5,084			5,381			(297	)		(6	)

Total liabilities and shareholders’ equity	$	53,067		$	51,703		$	1,364			3	%


⁽¹⁾		Includes nonaccrual loans.

Huntington Bancshares Incorporated
Consolidated Year to Date Net Interest Margin Analysis — Interest Income / Expense
(Unaudited)


	YTD Interest Income / Expense
	Six Months Ended June 30,
(dollar amounts in millions)	2011		2010
Assets
Interest bearing deposits in banks	$	110	$	310
Trading account securities		941		1,073
Federal funds sold and securities purchased under resale agreements		5		—
Loans held for sale		6,531		8,364
Available-for-sale and other securities:
Taxable		112,254		118,601
Tax-exempt		9,622		9,332

Total available-for-sale and other securities		121,876		127,933
Held-to-maturity securities — taxable		1,287		—
Loans and leases:
Commercial:
Commercial and industrial		295,639		336,669
Commercial real estate:
Construction		9,856		17,830
Commercial		114,043		113,075

Commercial real estate		123,899		130,905

Total commercial		419,538		467,574

Consumer:
Automobile		148,440		144,246
Home equity		176,016		204,547
Residential mortgage		105,828		108,815
Other consumer		21,221		24,308

Total consumer		451,505		481,916

Total loans and leases		871,043		949,490

Total earning assets	$	1,001,793	$	1,087,170


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	—	$	—
Demand deposits — interest-bearing		2,457		6,368
Money market deposits		29,505		51,125
Savings and other domestic deposits		18,279		26,090
Core certificates of deposit		83,855		133,475

Total core deposits		134,096		217,058
Other domestic deposits of $250,000 or more		2,792		4,738
Brokered deposits and negotiable CDs		6,799		20,937
Deposits in foreign offices		414		391

Total deposits		144,101		243,124
Short-term borrowings		1,805		991
Federal Home Loan Bank advances		434		2,247
Subordinated notes and other long-term debt		40,007		42,521

Total interest-bearing liabilities		186,347		288,883

Net interest income	$	815,446	$	798,287

Huntington Bancshares Incorporated
Consolidated Year to Date Net Interest Margin Analysis
(Unaudited)


	YTD Average Rates (2)
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2011			2010
Assets
Interest bearing deposits in banks		0.17	%		0.19	%
Trading account securities		1.47			1.92
Federal funds sold and securities purchased under resale agreements		0.09			—
Loans held for sale		4.36			5.00
Available-for-sale and other securities:
Taxable		2.56			2.89
Tax-exempt		4.37			4.49

Total available-for-sale and other securities		2.65			2.97
Held-to-maturity securities — taxable		2.95			—
Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		4.44			5.45
Commercial real estate:
Construction		3.37			2.64
Commercial		3.91			3.64

Commercial real estate		3.86			3.46

Total commercial		4.25			4.70

Consumer:
Automobile		5.14			6.54
Home equity		4.51			5.42
Residential mortgage		4.69			4.79
Other consumer		7.80			6.92

Total consumer		4.85			5.61

Total loans and leases		4.54			5.12

Total earning assets		4.19	%		4.72	%


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%
Demand deposits — interest-bearing		0.09			0.22
Money market deposits		0.45			0.96
Savings and other domestic deposits		0.78			1.13
Core certificates of deposit		2.05			2.81

Total core deposits		0.86			1.42
Other domestic deposits of $250,000 or more		1.05			1.41
Brokered deposits and negotiable CDs		1.00			2.52
Deposits in foreign offices		0.23			0.19

Total deposits		0.86			1.46
Short-term borrowings		0.17			0.21
Federal Home Loan Bank advances		1.36			2.28
Subordinated notes and other long-term debt		2.36			2.15

Total interest bearing liabilities		0.95			1.51

Net interest rate spread		3.20			3.21
Impact of noninterest-bearing funds on margin		0.21			0.26

Net interest margin		3.41	%		3.47	%

Commercial Loan Derivative Impact
(Unaudited)


	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2011			2010
Commercial loans⁽²⁾⁽³⁾		3.83	%		3.75	%
Impact of commercial loan derivatives		0.42			0.95

Total commercial — as reported		4.25	%		4.70	%


Average 30 day LIBOR		0.19	%		0.35	%


⁽¹⁾		Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 21 for the FTE adjustment.

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

⁽³⁾		Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated
Selected Year to Date Income Statement Data⁽¹⁾
(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2011			2010			Amount			Percent
Interest income	$	994,014		$	1,082,432		$	(2,158	)		—	%
Interest expense		186,347			288,883			(102,536	)		(35	)

Net interest income		807,667			793,549			14,118			2
Provision for credit losses		85,182			428,414			(343,232	)		(80	)

Net interest income after provision for credit losses		722,485			365,135			357,350			98

Service charges on deposit accounts		114,999			145,273			(30,274	)		(21	)
Mortgage banking income		46,519			70,568			(24,049	)		(34	)
Trust services		61,134			56,164			4,970			9
Electronic banking		60,514			53,244			7,270			14
Insurance income		34,344			36,934			(2,590	)		(7	)
Brokerage income		41,330			35,327			6,003			17
Bank owned life insurance income		32,421			30,862			1,559			5
Automobile operating lease income		16,154			24,145			(7,991	)		(33	)
Securities gains		1,547			125			1,422			1,138
Other income		83,750			57,853			25,897			45

Total noninterest income		492,712			510,495			(17,783	)		(3	)

Personnel costs		437,598			378,517			59,081			16
Outside data processing and other services		84,171			79,752			4,419			6
Net occupancy		55,321			54,474			847			2
Deposit and other insurance expense		41,719			50,822			(9,103	)		(18	)
Professional services		33,545			47,085			(13,540	)		(29	)
Equipment		44,398			42,209			2,189			5
Marketing		36,997			28,835			8,162			28
Amortization of intangibles		26,756			30,287			(3,531	)		(12	)
OREO and foreclosure expense		8,329			16,500			(8,171	)		(50	)
Automobile operating lease expense		12,270			19,733			(7,463	)		(38	)
Other expense		78,004			63,689			14,315			22

Total noninterest expense		859,108			811,903			47,205			6

Income before income taxes		356,089			63,727			292,362			459
Provision (benefit) for income taxes		83,725			(24,774	)		108,499			N.R.

Net income	$	272,364		$	88,501		$	183,863			208	%

Dividends on preferred shares		15,407			58,783			(43,376	)		(74	)

Net income applicable to common shares	$	256,957		$	29,718		$	227,239			765	%


Average common shares — basic		863,358			716,450			146,908			21	%
Average common shares — diluted⁽²⁾		867,353			718,990			148,363			21

Per common share
Net income — basic	$	0.30		$	0.04		$	0.26			650
Net income — diluted		0.30			0.04			0.26			650
Cash dividends declared		0.02			0.02			—			—

Return on average total assets		1.03	%		0.35	%		0.68	%		194
Return on average common shareholders’ equity		11.0			1.6			9.4			588
Return on average tangible common shareholders’ equity⁽³⁾		13.4			3.2			10.2			319
Net interest margin⁽⁴⁾		3.41			3.47			(0.06	)		(2	)
Efficiency ratio⁽⁵⁾		63.7			59.7			4.0			7
Effective tax rate (benefit)		23.5			(38.9	)		62.4			N.R.

Revenue — fully taxable equivalent (FTE)
Net interest income	$	807,667		$	793,549		$	14,118			2
FTE adjustment⁽⁴⁾		7,779			4,738			3,041			64

Net interest income		815,446			798,287			17,159			2
Noninterest income		492,712			510,495			(17,783	)		(3	)

Total revenue	$	1,308,158		$	1,308,782		$	(624	)		—	%

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.

⁽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. The convertible preferred stock and warrants were repurchased in December 2010 and January 2011, respectively.

⁽³⁾		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.

⁽⁴⁾		On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁵⁾		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
Year to Date Mortgage Banking Income
(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except as noted)	2011			2010			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	31,321		$	33,364		$	(2,043	)		(6	)%
Servicing fees		24,963			24,596			367			1
Amortization of capitalized servicing		(18,915	)		(20,202	)		1,287			(6	)
Other mortgage banking income		8,028			6,874			1,154			17

Subtotal		45,397			44,632			765			2

MSR valuation adjustment⁽¹⁾		(7,518	)		(31,993	)		24,475			(77	)
Net trading gains (losses) related to MSR hedging		8,640			57,929			(49,289	)		(85	)

Total mortgage banking income	$	46,519		$	70,568		$	(24,049	)		(34	)%


Mortgage originations (in millions)	$	1,845		$	2,030		$	(185	)		(9	)%
Average trading account securities used to hedge MSRs (in millions)		34			23			11			48
Capitalized mortgage servicing rights⁽²⁾		189,740			179,138			10,602			6
Total mortgages serviced for others (in millions)⁽²⁾		16,315			15,954			361			2
MSR % of investor servicing portfolio		1.16	%		1.12	%		0.04	%		4


Net impact of MSR hedging

MSR valuation adjustment⁽¹⁾	$	(7,518	)	$	(31,993	)	$	24,475			(77	)%
Net trading gains (losses) related to MSR hedging		8,640			57,929			(49,289	)		(85	)
Net interest income related to MSR hedging		183			227			(44	)		(19	)

Net gain (loss) on MSR hedging	$	1,305		$	26,163		$	(24,858	)		(95	)%


⁽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
Year to Date Credit Reserves Analysis
(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2011			2010

Allowance for loan and lease losses, beginning of period	$	1,249,008		$	1,482,479
Loan and lease losses		(327,708	)		(577,176	)
Recoveries of loans previously charged off		65,091			59,467

Net loan and lease losses		(262,617	)		(517,709	)

Provision for loan and lease losses		86,249			437,604
Allowance of assets sold		(1,514	)		(214	)

Allowance for loan and lease losses, end of period	$	1,071,126		$	1,402,160


Allowance for unfunded loan commitments and letters of credit, beginning of period	$	42,127		$	48,879
Provision for (reduction in) unfunded loan commitments and letters of credit losses		(1,067	)		(9,190	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	41,060		$	39,689

Total allowance for credit losses	$	1,112,186		$	1,441,849


Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		2.74	%		3.79	%
Nonaccrual loans and leases (NALs)		174			117
Nonperforming assets (NPAs)		164			89

Total allowance for credit losses (ACL) as % of:
Total loans and leases		2.84	%		3.90	%
Nonaccrual loans and leases (NALs)		181			120
Nonperforming assets (NPAs)		170			91

Huntington Bancshares Incorporated
Year to Date Net Charge-Off Analysis
(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2011			2010

Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	60,895		$	133,567
Commercial real estate:
Construction		32,545			79,988
Commercial		62,733			87,042

Commercial real estate		95,278			167,030

Total commercial		156,173			300,597

Consumer:
Automobile		6,967			13,967
Home equity⁽¹⁾		52,156			82,371
Residential mortgage⁽²⁾		35,387			107,159
Other consumer		11,934			13,615

Total consumer		106,444			217,112

Total net charge-offs	$	262,617		$	517,709


Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		0.92	%		2.18	%
Commercial real estate:
Construction		11.18			11.90
Commercial		2.17			2.82

Commercial real estate		2.99			4.44

Total commercial		1.59			3.04

Consumer:
Automobile		0.24			0.63
Home equity⁽¹⁾		1.34			2.18
Residential mortgage⁽²⁾		1.57			4.72
Other consumer		4.36			3.84

Total consumer		1.14			2.52

Net charge-offs as a % of average loans		1.37	%		2.80	%


⁽¹⁾		2010 included net charge-offs of $14,678 thousand associated with the transfer of Franklin-related loans to loans held for sale and $4,991 thousand of other Franklin-related net charge-offs.

⁽²⁾		2010 included net charge-offs of $60,882 thousand associated with the transfer of Franklin-related loans to loans held for sale and $11,525 thousand of other Franklin-related net charge-offs.

Huntington Bancshares Incorporated
Year to Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)


	June 30,
(dollar amounts in thousands)	2011			2010

Nonaccrual loans and leases (NALs):
Commercial and industrial	$	229,327		$	429,561
Commercial real estate		291,500			663,103
Residential mortgage		59,853			86,486
Home equity		33,545			22,199

Total nonaccrual loans and leases		614,225			1,201,349

Other real estate, net:
Residential		20,803			71,937
Commercial		17,909			67,189

Total other real estate, net		38,712			139,126
Impaired loans held for sale (1)		—			242,227
Other NPAs		—			—

Total nonperforming assets	$	652,937		$	1,582,702


Nonperforming Franklin assets:
Commercial	$	—		$	—
OREO		883			24,515
Impaired loans held for sale		—			242,227

Total nonperforming Franklin assets	$	883		$	266,742

Nonaccrual loans and leases as a % of total loans and leases		1.57	%		3.25	%

NPA ratio (2)		1.67			4.24


	Six Months Ended June 30,
(dollar amounts in thousands)	2011			2010
Nonperforming assets, beginning of period	$	844,752		$	2,058,091
New nonperforming assets		402,299			409,509
Franklin impact, net		(8,594	)		(71,758	)
Returns to accruing status		(139,315	)		(159,579	)
Loan and lease losses		(203,675	)		(358,546	)
OREO losses		1,880			(1,677	)
Payments		(160,050	)		(248,521	)
Sales		(84,360	)		(44,817	)

Nonperforming assets, end of period	$	652,937		$	1,582,702


(1)		Represents NALs associated with the transfer of Franklin-related residential mortgage and home equity loans to loans held for sale.

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

Huntington Bancshares Incorporated
Year to Date Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
(Unaudited)


	June 30,
(dollar amounts in thousands)	2011			2010
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	—		$	—
Commercial real estate		—			—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		33,975			47,036
Home equity		17,451			26,797
Other consumer		6,227			9,533

Total, excl. loans guaranteed by the U.S. Government		57,653			83,366
Add: loans guaranteed by U.S. Government		76,979			95,421

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	134,632		$	178,787

Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.15	%		0.23	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.19			0.26

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

Accruing troubled debt restructured loans:
Commercial	$	240,126		$	141,353
Residential mortgages		313,772			281,473
Other consumer		75,036			65,061

Total accruing troubled debt restructured loans	$	628,934		$	487,887

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - July 21, 2011

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports