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/	c23395e8vk.htm
EX-99.2 - EXHIBIT 99.2 - HUNTINGTON BANCSHARES INC /MD/	c23395exv99w2.htm
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	c23395exv99w1.htm

Exhibit 99.3

HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Review
September 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)	Third			Second			Third			2Q11			3Q10

Net interest income	$	406,478		$	403,337		$	409,962			1	%		(1	)%
Provision for credit losses		43,586			35,797			119,160			22			(63	)
Noninterest income		258,559			255,767			267,143			1			(3	)
Noninterest expense		439,118			428,409			427,309			2			3

Income before income taxes		182,333			194,898			130,636			(6	)		40
Provision for income taxes		38,942			48,980			29,690			(20	)		31

Net income	$	143,391		$	145,918		$	100,946			(2	)%		42	%

Dividends on preferred shares		7,703			7,704			29,495			—			(74	)

Net income applicable to common shares	$	135,688		$	138,214		$	71,451			(2	)%		90	%


Net income per common share — diluted	$	0.16		$	0.16		$	0.10			—	%		60	%
Cash dividends declared per common share		0.04			0.01			0.01			300			300
Book value per common share at end of period		5.83			5.66			5.39			3			8
Tangible book value per common share at end of period		5.17			5.00			4.55			3			14

Average common shares — basic		863,911			863,358			716,911			—			21
Average common shares — diluted⁽²⁾		867,633			867,469			719,567			—			21

Return on average assets		1.05	%		1.11	%		0.76	%
Return on average common shareholders’ equity		10.8			11.6			7.4
Return on average tangible common shareholders’ equity⁽³⁾		13.0			13.3			10.0
Net interest margin⁽⁴⁾		3.34			3.40			3.45
Efficiency ratio⁽⁵⁾		63.5			62.7			60.6
Effective tax rate		21.4			25.1			22.7

Average loans and leases	$	39,297,235		$	38,535,019		$	37,214,601			2			6
Average loans and leases — linked quarter annualized growth rate		7.9	%		4.6	%		1.4	%
Average earning assets	$	48,777,430		$	48,017,199		$	47,511,255			2			3
Average total assets		54,192,913			52,769,511			52,716,881			3			3
Average core deposits⁽⁶⁾		39,957,440			39,106,550			38,009,764			2			5
Average core deposits — linked quarter annualized growth rate		8.7	%		(1.7	)%		2.2	%
Average shareholders’ equity	$	5,332,493		$	5,144,771		$	5,519,638			4			(3	)

Total assets at end of period		54,978,707			53,050,039			53,246,776			4			3
Total shareholders’ equity at end of period		5,400,479			5,252,643			5,567,403			3			(3	)

Net charge-offs (NCOs)		90,555			97,534			184,514			(7	)		(51	)
NCOs as a % of average loans and leases		0.92	%		1.01	%		1.98	%
Nonaccrual loans and leases (NALs)	$	565,003		$	614,225		$	981,780			(8	)		(42	)
NAL ratio		1.45	%		1.57	%		2.62	%
Nonperforming assets (NPAs)	$	613,981		$	652,937		$	1,104,864			(6	)		(44	)
NPA ratio		1.57	%		1.67	%		2.94	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		2.61			2.74			3.56
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		2.71			2.84			3.67
ACL as a % of NALs		187			181			140
ACL as a % of NPAs		172			170			125
Tier 1 leverage ratio ⁽⁷⁾		10.24			10.25			10.54
Tier 1 common risk-based capital ratio⁽⁷⁾		10.17			9.92			7.39
Tier 1 risk-based capital ratio ⁽⁷⁾		12.37			12.14			12.82
Total risk-based capital ratio ⁽⁷⁾		15.11			14.89			15.08
Tangible common equity / risk-weighted assets ratio⁽⁷⁾		10.08			9.79			7.63
Tangible equity / tangible assets ratio⁽⁸⁾		8.88			8.91			9.43
Tangible common equity / tangible assets ratio⁽⁹⁾		8.22			8.22			6.20

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

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


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

Net interest income	$	1,214,145		$	1,203,511		$	10,634			1	%
Provision for credit losses		128,768			547,574			(418,806	)		(76	)
Noninterest income		751,271			777,638			(26,367	)		(3	)
Noninterest expense		1,298,226			1,239,213			59,013			5

Income before income taxes		538,422			194,362			344,060			177
Provision for income taxes		122,667			4,915			117,752			2,396

Net Income	$	415,755		$	189,447		$	226,308			119	%

Dividends on preferred shares		23,110			88,278			(65,168	)		(74	)

Net income applicable to common shares	$	392,645		$	101,169		$	291,476			288	%


Net income per common share — diluted	$	0.45		$	0.14		$	0.31			221	%
Cash dividends declared per common share		0.06			0.03			0.03			100

Average common shares — basic		863,542			716,604			146,938			21
Average common shares — diluted⁽²⁾		867,446			719,182			148,264			21

Return on average assets		1.04	%		0.49	%
Return on average common shareholders’ equity		10.9			3.6
Return on average tangible common shareholders’ equity⁽³⁾		13.2			5.6
Net interest margin⁽⁴⁾		3.39			3.46
Efficiency ratio⁽⁵⁾		63.6			60.0
Effective tax rate (benefit)		22.8			2.5

Average loans and leases	$	38,647,550		$	37,095,295		$	1,552,255			4
Average earning assets		48,381,447			46,790,569			1,590,878			3
Average total assets		53,446,679			52,044,466			1,402,212			3
Average core deposits⁽⁶⁾		39,448,587			37,696,027			1,752,560			5
Average shareholders’ equity		5,167,607			5,427,591			(259,985	)		(5	)

Net charge-offs (NCOs)		353,172			702,223			(349,051	)		(50	)
NCOs as a % of average loans and leases		1.22	%		2.52	%

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⁾		September 30, 2011, figures are estimated.

⁽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						September ’11 vs ’10
(dollar amounts in thousands, except number of shares)	September 30,			December 31,			September 30,			Amount			Percent
	*(Unaudited)*						(Unaudited)
Assets
Cash and due from banks	$	2,190,276		$	847,888		$	1,139,226		$	1,051,050			92	%
Interest-bearing deposits in banks		105,454			135,038			274,240			(168,786	)		(62	)
Trading account securities		85,711			185,404			138,677			(52,966	)		(38	)
Loans held for sale		334,606			793,285			744,439			(409,833	)		(55	)
Available-for-sale and other securities		8,713,530			9,895,244			9,723,558			(1,010,028	)		(10	)
Held-to-maturity securities		658,250			—			—			658,250			100
Loans and leases⁽¹⁾		39,011,894			38,106,507			37,500,587			1,511,307			4
Allowance for loan and lease losses		(1,019,710	)		(1,249,008	)		(1,336,352	)		316,642			(24	)

Net loans and leases		37,992,184			36,857,499			36,164,235			1,827,949			5

Bank owned life insurance		1,494,251			1,458,224			1,450,335			43,916			3
Premises and equipment		543,324			491,602			489,349			53,975			11
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		188,477			228,620			243,666			(55,189	)		(23	)
Accrued income and other assets		2,228,376			2,482,570			2,434,783			(206,407	)		(8	)

Total assets	$	54,978,707		$	53,819,642		$	53,246,776		$	1,731,931			3	%


Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	43,219,727		$	41,853,898		$	41,072,371		$	2,147,356			5	%
Short-term borrowings		2,224,986			2,040,732			1,859,134			365,852			20
Federal Home Loan Bank advances		14,157			172,519			23,643			(9,486	)		(40	)
Other long-term debt		1,421,518			2,144,092			2,393,071			(971,553	)		(41	)
Subordinated notes		1,537,293			1,497,216			1,202,568			334,725			28
Accrued expenses and other liabilities		1,160,547			1,130,643			1,128,586			31,961			3

Total liabilities		49,578,228			48,839,100			47,679,373			1,898,855			4


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			(1,337,749	)		(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		8,652			8,642			7,180			1,472			21
Capital surplus		7,594,090			7,630,093			6,743,724			850,366			13
Less treasury shares, at cost		(10,161	)		(8,771	)		(8,969	)		(1,192	)		13
Accumulated other comprehensive loss		(80,404	)		(197,496	)		(28,396	)
Retained earnings		(2,474,205	)		(2,814,433	)		(2,846,392	)		372,187			(13	)

Total shareholders’ equity		5,400,479			4,980,542			5,567,403			(166,924	)		(3	)

Total liabilities and shareholders’ equity	$	54,978,707		$	53,819,642		$	53,246,776		$	$1,731,931			3	%


Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		865,204,511			864,195,369			718,015,276
Common shares outstanding		864,074,883			863,319,435			717,132,197
Treasury shares outstanding		1,129,628			875,934			883,079
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)	September 30,				June 30,				March 31,				December 31,				September 30,
	(Unaudited)				(Unaudited)				(Unaudited)								(Unaudited)

Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	13,939	36	%	$	13,544	35	%	$	13,299	35	%	$	13,063	34	%	$	12,425	33	%
Commercial real estate:
Construction		520	1			591	2			587	2			650	2			738	2
Commercial		5,414	14			5,573	14			5,711	15			6,001	16			6,174	16

Commercial real estate		5,934	15			6,164	16			6,298	17			6,651	18			6,912	18

Total commercial		19,873	51			19,708	51			19,597	52			19,714	52			19,337	51

Consumer:
Automobile		5,558	14			6,190	16			5,802	15			5,614	15			5,385	14
Home equity		8,079	21			7,952	20			7,784	20			7,713	20			7,690	21
Residential mortgage		4,986	13			4,751	12			4,517	12			4,500	12			4,511	12
Other consumer		516	1			525	1			546	1			566	1			578	2

Total consumer		19,139	49			19,418	49			18,649	48			18,393	48			18,164	49

Total loans and leases	$	39,012	100	%	$	39,126	100	%	$	38,246	100	%	$	38,107	100	%	$	37,501	100	%


Ending Balances by Business Segment:
Retail and Business Banking	$	12,183	31	%	$	12,019	31	%	$	11,786	31	%	$	11,717	31	%	$	11,804	31	%
Regional and Commercial Banking		8,723	22			8,291	21			7,917	21			7,792	20			7,373	20
AFCRE		12,318	32			13,273	34			13,154	34			13,283	35			13,167	35
WGH		5,713	15			5,493	14			5,255	14			5,176	14			5,066	14
Treasury / Other		75	—			50	—			134	—			139	—			91	—

Total loans and leases	$	39,012	100	%	$	39,126	100	%	$	38,246	100	%	$	38,107	100	%	$	37,501	100	%


	2011												2010
	Third				Second				First				Fourth				Third
Average Balances by Business Segment:
Retail and Business Banking	$	12,126	31	%	$	11,948	31	%	$	11,780	31	%	$	11,274	30	%	$	11,817	32	%
Regional and Commercial Banking		8,495	22			8,069	21			7,824	21			7,657	20			7,419	20
AFCRE		13,101	33			13,145	34			13,208	35			13,299	35			13,085	35
WGH		5,522	14			5,297	14			5,192	13			5,050	14			4,894	13
Treasury / Other		53	—			76	—			94	—			520	1			—	—

Total loans and leases	$	39,297	100	%	$	38,535	100	%	$	38,098	100	%	$	37,800	100	%	$	37,215	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)	September 30,				June 30,				March 31,				December 31,				September 30,
	*(Unaudited)*				(Unaudited)				(Unaudited)								(Unaudited)
Ending Balances by Type:
Demand deposits — noninterest-bearing	$	9,502	22	%	$	8,210	20	%	$	7,597	18	%	$	7,217	17	%	$	6,926	17	%
Demand deposits — interest-bearing		5,763	13			5,642	14			5,532	13			5,469	13			5,347	13
Money market deposits		13,759	32			12,643	31			13,105	32			13,410	32			12,679	31
Savings and other domestic deposits		4,711	11			4,752	11			4,762	12			4,643	11			4,613	11
Core certificates of deposit		7,084	16			7,936	19			8,208	20			8,525	20			8,765	21

Total core deposits		40,819	94			39,183	95			39,204	95			39,264	93			38,330	93
Other domestic deposits of $250,000 or more		421	1			436	1			531	1			675	2			730	2
Brokered deposits and negotiable CDs		1,535	4			1,486	4			1,253	3			1,532	4			1,576	4
Deposits in foreign offices		445	1			297	—			378	1			383	1			436	1

Total deposits	$	43,220	100	%	$	41,402	100	%	$	41,366	100	%	$	41,854	100	%	$	41,072	100	%


Total core deposits:
Commercial	$	15,526	38	%	$	13,541	35	%	$	12,785	33	%	$	12,476	32	%	$	12,262	32	%
Consumer		25,293	62			25,642	65			26,419	67			26,788	68			26,068	68

Total core deposits	$	40,819	100	%	$	39,183	100	%	$	39,204	100	%	$	39,264	100	%	$	38,330	100	%


Ending Balances by Business Segment:
Retail and Business Banking	$	28,095	65	%	$	28,325	68	%	$	28,984	70	%	$	29,298	70	%	$	28,808	70	%
Regional and Commercial Banking		4,173	10			3,539	9			3,589	9			3,538	8			3,245	8
AFCRE		817	2			819	2			804	2			753	2			739	2
WGH		9,013	21			7,708	19			7,363	17			7,449	18			7,184	17
Treasury / Other⁽¹⁾		1,122	2			1,011	2			626	2			816	2			1,096	3

Total deposits	$	43,220	100	%	$	41,402	100	%	$	41,366	100	%	$	41,854	100	%	$	41,072	100	%


	2011												2010
	Third				Second				First				Fourth				Third
Average Balances by Business Segment:
Retail and Business Banking	$	28,290	67	%	$	28,780	70	%	$	29,139	70	%	$	29,241	70	%	$	28,874	71	%
Regional and Commercial Banking		3,902	9			3,484	8			3,666	9			3,471	8			3,090	8
AFCRE		796	2			784	2			763	2			752	2			714	1
WGH		8,243	20			7,467	18			7,394	17			7,333	18			6,867	17
Treasury / Other⁽¹⁾		1,047	2			739	2			702	2			907	2			1,101	3

Total deposits	$	42,278	100	%	$	41,254	100	%	$	41,664	100	%	$	41,704	100	%	$	40,646	100	%


⁽¹⁾		Comprised primarily of national market deposits.

Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)


																Change
	2011									2010						3Q11 vs 3Q10
(dollar amounts in millions)	Third			Second			First			Fourth			Third			Amount			Percent

Assets
Interest-bearing deposits in banks	$	164		$	131		$	130		$	218		$	282		$	(118	)		(42	)%
Trading account securities		92			112			144			297			110			(18	)		(16	)
Federal funds sold and securities purchased under resale agreements		—			21			—			—			—			—			—
Loans held for sale		237			181			420			779			663			(426	)		(64	)
Available-for-sale and other securities:
Taxable		7,902			8,428			9,108			9,747			8,876			(974	)		(11	)
Tax-exempt		421			436			445			449			365			56			15

Total available-for-sale and other securities		8,323			8,864			9,553			10,196			9,241			(918	)		(10	)
Held-to-maturity securities — taxable		665			174			—			—			—			665			—
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		13,664			13,370			13,121			12,767			12,393			1,271			10
Commercial real estate:
Construction		670			554			611			716			989			(319	)		(32	)
Commercial		5,441			5,679			5,913			6,082			6,084			(643	)		(11	)

Commercial real estate		6,111			6,233			6,524			6,798			7,073			(962	)		(14	)

Total commercial		19,775			19,603			19,645			19,565			19,466			309			2

Consumer:
Automobile		6,211			5,954			5,701			5,520			5,140			1,071			21
Home equity		8,002			7,874			7,728			7,709			7,567			435			6
Residential mortgage		4,788			4,566			4,465			4,430			4,389			399			9
Other consumer		521			538			559			576			653			(132	)		(20	)

Total consumer		19,522			18,932			18,453			18,235			17,749			1,773			10

Total loans and leases		39,297			38,535			38,098			37,800			37,215			2,082			6
Allowance for loan and lease losses		(1,066	)		(1,128	)		(1,231	)		(1,323	)		(1,384	)		318			(23	)

Net loans and leases		38,231			37,407			36,867			36,477			35,831			2,400			7

Total earning assets		48,778			48,018			48,345			49,290			47,511			1,267			3

Cash and due from banks		1,700			1,068			1,299			1,187			1,618			82			5
Intangible assets		639			652			665			679			695			(56	)		(8	)
All other assets		4,142			4,160			4,291			4,313			4,277			(135	)		(3	)

Total assets	$	54,193		$	52,770		$	53,369		$	54,146		$	52,717		$	1,476			3	%


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	8,719		$	7,806		$	7,333		$	7,188		$	6,768		$	1,951			29	%
Demand deposits — interest-bearing		5,573			5,565			5,357			5,317			5,319			254			5
Money market deposits		13,321			12,879			13,492			13,158			12,336			985			8
Savings and other domestic deposits		4,752			4,778			4,701			4,640			4,639			113			2
Core certificates of deposit		7,592			8,079			8,391			8,646			8,948			(1,356	)		(15	)

Total core deposits		39,957			39,107			39,274			38,949			38,010			1,947			5
Other domestic deposits of $250,000 or more		387			467			606			737			690			(303	)		(44	)
Brokered deposits and negotiable CDs		1,533			1,333			1,410			1,575			1,495			38			3
Deposits in foreign offices		401			347			374			443			451			(50	)		(11	)

Total deposits		42,278			41,254			41,664			41,704			40,646			1,632			4
Short-term borrowings		2,251			2,112			2,134			2,134			1,739			512			29
Federal Home Loan Bank advances		285			97			30			112			188			97			52
Subordinated notes and other long-term debt		3,030			3,249			3,525			3,558			3,672			(642	)		(17	)

Total interest-bearing liabilities		39,125			38,906			40,020			40,320			39,477			(352	)		(1	)

All other liabilities		1,017			913			994			993			952			65			7
Shareholders’ equity		5,332			5,145			5,022			5,645			5,520			(188	)		(3	)

Total liabilities and shareholders’ equity	$	54,193		$	52,770		$	53,369		$	54,146		$	52,717		$	1,476			3	%


⁽¹⁾		Includes nonaccrual loans.

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


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

Assets
Interest-bearing deposits in banks	$	17	$	73	$	37	$	343	$	151
Trading account securities		325		447		494		1,472		331
Federal funds sold and securities purchased under resale agreements		—		5		—		—		—
Loans held for sale		2,643		2,247		4,284		7,799		9,525
Available-for-sale and other securities:
Taxable		47,946		54,603		57,652		59,025		61,438
Tax-exempt		4,392		4,385		5,237		5,150		4,285

Total available-for-sale and other securities		52,338		58,988		62,889		64,175		65,723
Held-to-maturity securities — taxable		5,059		1,287		—		—		—
Loans and leases:
Commercial:
Commercial and industrial		144,151		145,675		149,964		161,251		162,678
Commercial real estate:
Construction		6,620		4,718		5,138		5,608		7,157
Commercial		54,429		55,947		58,096		60,963		60,821

Commercial real estate		61,049		60,665		63,234		66,571		67,978

Total commercial		205,200		206,340		213,198		227,822		230,656

Consumer:
Automobile		76,488		75,110		73,330		75,951		75,005
Home equity		89,112		88,358		87,659		89,516		89,669
Residential mortgage		53,521		52,700		53,127		53,431		54,560
Other consumer		9,951		10,416		10,804		11,490		11,680

Total consumer		229,072		226,584		224,920		230,388		230,914

Total loans and leases		434,272		432,924		438,118		458,210		461,570

Total earning assets	$	494,654	$	495,971	$	505,822	$	531,999	$	537,300


Liabilities
Deposits:
Demand deposits — noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits — interest-bearing		1,458		1,240		1,217		1,770		2,255
Money market deposits		13,845		12,807		16,699		25,654		26,690
Savings and other domestic deposits		8,231		8,870		9,410		10,527		11,585
Core certificates of deposit		37,324		41,041		42,815		46,076		52,044

Total core deposits		60,858		63,958		70,141		84,027		92,574
Other domestic deposits of $250,000 or more		906		1,171		1,620		2,244		2,225
Brokered deposits and negotiable CDs		2,963		2,948		3,850		6,082		8,334
Deposits in foreign offices		258		227		185		194		247

Total deposits		64,985		68,304		75,796		92,547		103,380
Short-term borrowings		931		856		949		1,071		945
Federal Home Loan Bank advances		233		215		220		272		602
Subordinated notes and other long-term debt		18,369		19,425		20,582		19,107		19,780

Total interest bearing liabilities		84,518		88,800		97,547		112,997		124,707

Net interest income	$	410,136	$	407,171	$	408,275	$	419,002	$	412,593

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


	2011									2010
Fully-taxable equivalent basis⁽¹⁾	Third			Second			First			Fourth			Third

Assets
Interest-bearing deposits in banks		0.04	%		0.22	%		0.11	%		0.63	%		0.21	%
Trading account securities		1.41			1.59			1.37			1.98			1.20
Federal funds sold and securities purchased under resale agreements		—			0.09			—			—			—
Loans held for sale		4.46			4.97			4.08			4.01			5.75
Available-for-sale and other securities:
Taxable		2.43			2.59			2.53			2.42			2.77
Tax-exempt		4.17			4.02			4.70			4.59			4.70

Total available-for-sale and other securities		2.52			2.66			2.63			2.52			2.84
Held-to-maturity securities — taxable		3.04			2.96			—			—			—
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		4.13			4.31			4.57			4.94			5.14
Commercial real estate:
Construction		3.87			3.37			3.36			3.07			2.83
Commercial		3.91			3.90			3.93			3.92			3.91

Commercial real estate		3.91			3.84			3.88			3.83			3.76

Total commercial		4.06			4.16			4.34			4.56			4.64

Consumer:
Automobile		4.89			5.06			5.22			5.46			5.79
Home equity		4.45			4.49			4.54			4.64			4.74
Residential mortgage		4.47			4.62			4.76			4.82			4.97
Other consumer		7.57			7.76			7.85			7.92			7.10

Total consumer		4.68			4.79			4.90			5.04			5.19

Total loans and leases		4.37			4.47			4.61			4.79			4.90

Total earning assets		4.02	%		4.14	%		4.24	%		4.29	%		4.49	%


Liabilities
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits — interest-bearing		0.10			0.09			0.09			0.13			0.17
Money market deposits		0.41			0.40			0.50			0.77			0.86
Savings and other domestic deposits		0.69			0.74			0.81			0.90			0.99
Core certificates of deposit		1.95			2.04			2.07			2.11			2.31

Total core deposits		0.77			0.82			0.89			1.05			1.18
Other domestic deposits of $250,000 or more		0.93			1.01			1.08			1.21			1.28
Brokered deposits and negotiable CDs		0.77			0.89			1.11			1.53			2.21
Deposits in foreign offices		0.26			0.26			0.20			0.17			0.22

Total deposits		0.77			0.82			0.90			1.06			1.21
Short-term borrowings		0.16			0.16			0.18			0.20			0.22
Federal Home Loan Bank advances		0.32			0.88			2.98			0.95			1.25
Subordinated notes and other long-term debt		2.43			2.39			2.34			2.15			2.15

Total interest-bearing liabilities		0.86			0.91			0.99			1.11			1.25

Net interest rate spread		3.11			3.19			3.21			3.16			3.24
Impact of noninterest-bearing funds on margin		0.23			0.21			0.21			0.21			0.21

Net interest margin		3.34	%		3.40	%		3.42	%		3.37	%		3.45	%

Commercial Loan Derivative Impact
(Unaudited)


	2011									2010
Fully-taxable equivalent basis⁽¹⁾	Third			Second			First			Fourth			Third
Commercial loans⁽²⁾⁽³⁾		3.79	%		3.83	%		3.84	%		3.96	%		3.97	%
Impact of commercial loan derivatives		0.27			0.33			0.50			0.60			0.67

Total commercial — as reported		4.06	%		4.16	%		4.34	%		4.56	%		4.64	%


Average 30 day LIBOR		0.21	%		0.20	%		0.26	%		0.26	%		0.29	%


⁽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)


	2011									2010						3Q11 vs 3Q10
(dollar amounts in thousands, except per share amounts)	Third			Second			First			Fourth			Third			Amount			Percent
Interest income	$	490,996		$	492,137		$	501,877		$	528,291		$	534,669		$	(48,732	)		(9	)%
Interest expense		84,518			88,800			97,547			112,997			124,707			(40,189	)		(32	)

Net interest income		406,478			403,337			404,330			415,294			409,962			(3,484	)		(1	)
Provision for credit losses		43,586			35,797			49,385			86,973			119,160			(75,574	)		(63	)

Net interest income after provision for credit losses		362,892			367,540			354,945			328,321			290,802			72,090			25

Service charges on deposit accounts		65,184			60,675			54,324			55,810			65,932			(748	)		(1	)
Mortgage banking income		12,791			23,835			22,684			53,169			52,045			(39,254	)		(75	)
Trust services		29,473			30,392			30,742			29,394			26,997			2,476			9
Electronic banking		32,714			31,728			28,786			28,900			28,090			4,624			16
Insurance income		17,220			16,399			17,945			19,678			19,801			(2,581	)		(13	)
Brokerage income		20,349			20,819			20,511			16,953			16,575			3,774			23
Bank owned life insurance income		15,644			17,602			14,819			16,113			14,091			1,553			11
Automobile operating lease income		5,890			7,307			8,847			10,463			11,356			(5,466	)		(48	)
Securities gains (losses)		(1,350	)		1,507			40			(103	)		(296	)		(1,054	)		356
Other income		60,644			45,503			38,247			33,843			32,552			28,092			86

Total noninterest income		258,559			255,767			236,945			264,220			267,143			(8,584	)		(3	)

Personnel costs		226,835			218,570			219,028			212,184			208,272			18,563			9
Outside data processing and other services		49,602			43,889			40,282			40,943			38,553			11,049			29
Net occupancy		26,967			26,885			28,436			26,670			26,718			249			1
Deposit and other insurance expense		17,492			23,823			17,896			23,320			23,406			(5,914	)		(25	)
Professional services		20,281			20,080			13,465			21,021			20,672			(391	)		(2	)
Equipment		22,262			21,921			22,477			22,060			21,651			611			3
Marketing		22,251			20,102			16,895			16,168			20,921			1,330			6
Amortization of intangibles		13,387			13,386			13,370			15,046			15,145			(1,758	)		(12	)
OREO and foreclosure expense		4,668			4,398			3,931			10,502			12,047			(7,379	)		(61	)
Automobile operating lease expense		4,386			5,434			6,836			8,142			9,159			(4,773	)		(52	)
Other expense		30,987			29,921			48,083			38,537			30,765			222			1

Total noninterest expense		439,118			428,409			430,699			434,593			427,309			11,809			3

Income before income taxes		182,333			194,898			161,191			157,948			130,636			51,697			40
Provision for income taxes		38,942			48,980			34,745			35,048			29,690			9,252			31

Net income	$	143,391		$	145,918		$	126,446		$	122,900		$	100,946		$	42,445			42	%

Dividends on preferred shares		7,703			7,704			7,703			83,754			29,495			(21,792	)		(74	)

Net income applicable to common shares	$	135,688		$	138,214		$	118,743		$	39,146		$	71,451		$	64,237			90	%


Average common shares — basic		863,911			863,358			863,359			757,924			716,911			147,000			21	%
Average common shares — diluted⁽²⁾		867,633			867,469			867,237			760,582			719,567			148,066			21

Per common share
Net income — basic	$	0.16		$	0.16		$	0.14		$	0.05		$	0.10		$	0.06			60	%
Net income — diluted		0.16			0.16			0.14			0.05			0.10			0.06			60
Cash dividends declared		0.04			0.01			0.01			0.01			0.01			0.03			300

Return on average total assets		1.05	%		1.11	%		0.96	%		0.90	%		0.76	%		0.29			38	%
Return on average common shareholders’ equity		10.8			11.6			10.3			3.8			7.4			3.4			46
Return on average tangible common shareholders’ equity⁽³⁾		13.0			13.3			12.7			5.6			10.0			3.0			30
Net interest margin⁽⁴⁾		3.34			3.40			3.42			3.37			3.45			(0.11	)		(3	)
Efficiency ratio⁽⁵⁾		63.5			62.7			64.7			61.4			60.6			2.9			5
Effective tax rate		21.4			25.1			21.6			22.2			22.7			(1.3	)		(6	)

Revenue — fully-taxable equivalent (FTE)
Net interest income	$	406,478		$	403,337		$	404,330		$	415,294		$	409,962		$	(3,484	)		(1	)%
FTE adjustment		3,658			3,834			3,945			3,708			2,631			1,027			39

Net interest income⁽⁴⁾		410,136			407,171			408,275			419,002			412,593			(2,457	)		(1	)
Noninterest income		258,559			255,767			236,945			264,220			267,143			(8,584	)		(3	)

Total revenue⁽⁴⁾	$	668,695		$	662,938		$	645,220		$	683,222		$	679,736		$	(11,041	)		(2	)%


⁽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 common shareholders’ equity. Average tangible common shareholders’ equity equals average total common 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						3Q11 vs 3Q10
(dollar amounts in thousands, except as noted)	Third			Second			First			Fourth			Third			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	15,648		$	11,522		$	19,799		$	48,236		$	35,840		$	(20,192	)		(56	)%
Servicing fees		12,140			12,417			12,546			11,474			12,053			87			1
Amortization of capitalized servicing		(9,641	)		(9,052	)		(9,863	)		(13,960	)		(13,003	)		3,362			(26	)
Other mortgage banking income		3,826			4,259			3,769			4,789			4,966			(1,140	)		(23	)

Subtotal		21,973			19,146			26,251			50,539			39,856			(17,883	)		(45	)

MSR valuation adjustment⁽¹⁾		(39,394	)		(8,292	)		774			31,319			(12,047	)		(27,347	)		227
Net trading gains (losses) related to MSR hedging		30,212			12,981			(4,341	)		(28,689	)		24,236			5,976			25

Total mortgage banking income	$	12,791		$	23,835		$	22,684		$	53,169		$	52,045		$	(39,254	)		(75	)%


Mortgage originations (in millions)	$	953		$	916		$	929		$	1,827		$	1,619		$	(666	)		(41	)%
Average trading account securities used to hedge MSRs (in millions)		7			22			46			184			23			(16	)		(70	)
Capitalized mortgage servicing rights⁽²⁾		145,277			189,740			202,559			196,194			161,594			(16,317	)		(10	)
Total mortgages serviced for others (in millions)⁽²⁾		16,061			16,315			16,456			15,933			15,713			348			2
MSR % of investor servicing portfolio⁽²⁾		0.90	%		1.16	%		1.23	%		1.23	%		1.03	%		(0.13)	%		(1,262	)


Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	(39,394	)	$	(8,292	)	$	774		$	31,319		$	(12,047	)	$	(27,347	)		227	%
Net trading gains (losses) related to MSR hedging		30,212			12,981			(4,341	)		(28,689	)		24,236			5,976			25
Net interest income related to MSR hedging		17			84			99			713			32			(15	)		(47	)

Net gain (loss) of MSR hedging	$	(9,165	)	$	4,773		$	(3,468	)	$	3,343		$	12,221		$	(21,386	)		(175	)%


⁽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)	Third			Second			First			Fourth			Third

Allowance for loan and lease losses, beginning of period	$	1,071,126		$	1,133,226		$	1,249,008		$	1,336,352		$	1,402,160
Loan and lease losses		(115,899	)		(128,701	)		(199,007	)		(205,587	)		(221,144	)
Recoveries of loans previously charged off		25,344			31,167			33,924			33,336			36,630

Net loan and lease losses		(90,555	)		(97,534	)		(165,083	)		(172,251	)		(184,514	)

Provision for loan and lease losses		45,867			36,948			49,301			84,907			118,788
Allowance of assets sold		(6,728	)		(1,514	)		—			—			(82	)

Allowance for loan and lease losses, end of period	$	1,019,710		$	1,071,126		$	1,133,226		$	1,249,008		$	1,336,352

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

Provision for (reduction in) unfunded loan commitments and letters of credit losses		(2,281	)		(1,151	)		84			2,066			372

Allowance for unfunded loan commitments and letters of credit, end of period	$	38,779		$	41,060		$	42,211		$	42,127		$	40,061

Total allowance for credit losses, end of period	$	1,058,489		$	1,112,186		$	1,175,437		$	1,291,135		$	1,376,413


Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		2.61	%		2.74	%		2.96	%		3.28	%		3.56	%
Nonaccrual loans and leases (NALs)		180			174			178			161			136
Nonperforming assets (NPAs)		166			164			164			148			121

Total allowance for credit losses (ACL) as % of:
Total loans and leases		2.71	%		2.84	%		3.07	%		3.39	%		3.67	%
Nonaccrual loans and leases		187			181			185			166			140
Nonperforming assets		172			170			170			153			125

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


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

Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	17,891		$	18,704		$	42,191		$	59,124		$	62,241
Commercial real estate:
Construction		1,450			4,145			28,400			11,084			17,936
Commercial		22,990			23,450			39,283			33,787			45,725

Commercial real estate		24,440			27,595			67,683			44,871			63,661

Total commercial		42,331			46,299			109,874			103,995			125,902

Consumer:
Automobile		3,863			2,255			4,712			7,035			5,570
Home equity		26,222			25,441			26,715			29,175			27,827
Residential mortgage⁽¹⁾		11,562			16,455			18,932			26,775			18,961
Other consumer		6,577			7,084			4,850			5,271			6,254

Total consumer		48,224			51,235			55,209			68,256			58,612

Total net charge-offs	$	90,555		$	97,534		$	165,083		$	172,251		$	184,514


Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		0.52	%		0.56	%		1.29	%		1.85	%		2.01	%
Commercial real estate:
Construction		0.87			2.99			18.59			6.19			7.25
Commercial		1.69			1.65			2.66			2.22			3.01

Commercial real estate		1.60			1.77			4.15			2.64			3.60

Total commercial		0.86			0.94			2.24			2.13			2.59

Consumer:
Automobile		0.25			0.15			0.33			0.51			0.43
Home equity		1.31			1.29			1.38			1.51			1.47
Residential mortgage⁽¹⁾		0.97			1.44			1.70			2.42			1.73
Other consumer		5.05			5.27			3.47			3.66			3.83

Total consumer		0.99			1.08			1.20			1.50			1.32

Net charge-offs as a % of average loans		0.92	%		1.01	%		1.73	%		1.82	%		1.98	%


⁽¹⁾		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)	September 30,			June 30,			March 31,			December 31,			September 30,

Nonaccrual loans and leases (NALs):
Commercial and industrial	$	209,632		$	229,327		$	260,397		$	346,720		$	398,353
Commercial real estate		257,086			291,500			305,793			363,692			478,754
Residential mortgage		61,129			59,853			44,812			45,010			82,984
Home equity		37,156			33,545			25,255			22,526			21,689

Total nonaccrual loans and leases		565,003			614,225			636,257			777,948			981,780

Other real estate, net:
Residential		18,588			20,803			28,668			31,649			65,775
Commercial		19,418			17,909			25,961			35,155			57,309

Total other real estate, net		38,006			38,712			54,629			66,804			123,084
Other NPAs ⁽¹⁾		10,972			—			—			—			—

Total nonperforming assets	$	613,981		$	652,937		$	690,886		$	844,752		$	1,104,864


Nonperforming Franklin assets:
Residential mortgage	$	—		$	—		$	—		$	—		$	—
Home Equity		—			—			—			—			—
OREO		534			883			5,971			9,477			15,330
Impaired loans held for sale		—			—			—			—			—

Total nonperforming Franklin assets	$	534		$	883		$	5,971		$	9,477		$	15,330


Nonaccrual loans and leases as a % of total loans and leases		1.45	%		1.57	%		1.66	%		2.04	%		2.62	%

NPA ratio⁽²⁾		1.57			1.67			1.80			2.21			2.94


	2011									2010
	Third			Second			First			Fourth			Third

Nonperforming assets, beginning of period	$	652,937		$	690,886		$	844,752		$	1,104,864		$	1,582,702
New nonperforming assets		153,626			210,255			192,044			237,802			278,388
Franklin impact, net		(349	)		(5,088	)		(3,506	)		(5,853	)		(251,412	)
Returns to accruing status		(25,794	)		(68,429	)		(70,886	)		(100,051	)		(111,168	)
Loan and lease losses		(79,992	)		(74,945	)		(128,730	)		(126,047	)		(151,013	)
OREO losses (gains)		(242	)		388			1,492			(5,117	)		(5,302	)
Payments		(76,510	)		(73,009	)		(87,041	)		(191,296	)		(210,612	)
Sales		(9,695	)		(27,121	)		(57,239	)		(69,550	)		(26,719	)

Nonperforming assets, end of period	$	613,981		$	652,937		$	690,886		$	844,752		$	1,104,864


⁽¹⁾		Other nonperforming assets represent an investment security backed by a municipal bond.

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

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


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

Accruing loans and leases past due 90 days or more:

Commercial and industrial	$	—		$	—		$	—		$	—		$	—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		32,850			33,975			41,858			53,983			56,803
Home equity		20,420			17,451			24,130			23,497			27,160
Other consumer		7,755			6,227			7,578			10,177			11,423

Total, excl. loans guaranteed by the U.S. Government		61,025			57,653			73,566			87,657			95,386
Add: loans guaranteed by U.S. Government		84,413			76,979			94,440			98,288			94,249

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	145,438		$	134,632		$	168,006		$	185,945		$	189,635


Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.16	%		0.15	%		0.19	%		0.23	%		0.25	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.21	%		0.19	%		0.25			0.26			0.26

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.37	%		0.34	%		0.44			0.49			0.51

Accruing troubled debt restructured loans:
Commercial	$	321,598		$	240,126		$	206,462		$	222,632		$	157,971
Residential mortgage		304,365			313,772			333,492			328,411			304,356
Other consumer (1)		89,596			75,036			78,488			76,586			73,210

Total accruing troubled debt restructured loans	$	715,559		$	628,934		$	618,442		$	627,629		$	535,537


Nonaccruing troubled debt restructured loans:
Commercial	$	74,264		$	77,745		$	37,858		$	33,462		$	33,236
Residential mortgage		20,877			14,378			8,523			5,789			10,581
Other consumer (1)		279			140			14			—			—

Total nonaccruing troubled debt restructured loans	$	95,420		$	92,263		$	46,395		$	39,251		$	43,817


(1)		Includes home equity, automobile, and other consumer loans.

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)	Third		Second		First		Fourth		Third

Common stock price, per share
High⁽¹⁾	$	6.740	$	6.920	$	7.700	$	7.000	$	6.450
Low⁽¹⁾		4.460		6.000		6.380		5.430		5.040
Close		4.800		6.560		6.640		6.870		5.690
Average closing price		5.370		6.506		6.981		6.050		5.787

Dividends, per share
Cash dividends declared per common share	$	0.04	$	0.01	$	0.01	$	0.01	$	0.01

Common shares outstanding
Average — basic		863,911		863,358		863,359		757,924		716,911
Average — diluted⁽²⁾		867,633		867,469		867,237		760,582		719,567
Ending		864,075		863,323		863,399		863,319		717,132

Book value per common share	$	5.83	$	5.66	$	5.42	$	5.35	$	5.39
Tangible book value per common share⁽³⁾		5.17		5.00		4.74		4.66		4.55


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

Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	5,400		$	5,253		$	5,039		$	4,981		$	5,567
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(188	)		(202	)		(215	)		(229	)		(244	)
Add: related deferred tax liability⁽³⁾		66			71			75			80			85

Total tangible equity		4,834			4,678			4,455			4,388			4,964
Less: preferred equity		(363	)		(363	)		(363	)		(363	)		(1,700	)

Total tangible common equity	$	4,471		$	4,315		$	4,092		$	4,025		$	3,264

Total assets	$	54,979		$	53,050		$	52,949		$	53,820		$	53,247
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(188	)		(202	)		(215	)		(229	)		(244	)
Add: related deferred tax liability⁽³⁾		66			71			75			80			85

Total tangible assets	$	54,413		$	52,475		$	52,365		$	53,227		$	52,644

Tangible equity / tangible asset ratio		8.88	%		8.91	%		8.51	%		8.24	%		9.43	%
Tangible common equity / tangible asset ratio		8.22			8.22			7.81			7.56			6.20

Other capital data:
Total risk-weighted assets⁽⁵⁾	$	44,376		$	44,081		$	43,025		$	43,471		$	42,759

Tier 1 leverage ratio⁽⁵⁾		10.24	%		10.25	%		9.80	%		9.41	%		10.54	%
Tier 1 common risk-based capital ratio⁽⁵⁾		10.17			9.92			9.75			9.29			7.39
Tier 1 risk-based captial ratio⁽⁵⁾		12.37			12.14			12.04			11.55			12.82
Total risk-based capital ratio⁽⁵⁾		15.11			14.89			14.85			14.46			15.08
Tangible common equity / risk-weighted assets ratio⁽⁵⁾		10.08			9.79			9.51			9.26			7.63

Other data:
Number of employees (full-time equivalent)		11,473			11,457			11,319			11,341			11,279
Number of domestic full-service branches⁽⁴⁾		650			643			622			620			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 WGH offices.

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

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


	YTD Average Balances
	Nine Months Ended September 30,						Change
(dollar amounts in millions)	2011			2010			Amount			Percent

Assets
Interest bearing deposits in banks	$	141		$	313		$	(172	)		(55	)%
Trading account securities		116			111			5			5
Federal funds sold and securities purchased under resale agreements		7			—			7			—
Loans held for sale		279			445			(166	)		(37	)
Available-for-sale and other securities:
Taxable		8,475			8,428			47			1
Tax-exempt		434			399			35			9

Total available-for-sale and other securities		8,909			8,827			82			1
Held-to-maturity securities — taxable		282			—			282			—
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		13,387			12,317			1,070			9
Commercial real estate:
Construction		612			1,224			(612	)		(50	)
Commercial		5,676			6,145			(469	)		(8	)

Commercial real estate		6,288			7,369			(1,081	)		(15	)

Total commercial		19,675			19,686			(11	)		—

Consumer:
Automobile		5,958			4,678			1,280			27
Home equity		7,869			7,550			319			4
Residential mortgage		4,607			4,491			116			3
Other consumer		539			690			(151	)		(22	)

Total consumer		18,973			17,409			1,564			9

Total loans and leases		38,648			37,095			1,553			4
Allowance for loan and lease losses		(1,141	)		(1,466	)		325			(22	)

Net loans and leases		37,507			35,629			1,878			5

Total earning assets		48,382			46,791			1,591			3

Cash and due from banks		1,358			1,629			(271	)		(17	)
Intangible assets		652			709			(57	)		(8	)
All other assets		4,196			4,381			(185	)		(4	)

Total assets	$	53,447		$	52,044		$	1,403			3	%


Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	7,958		$	6,748		$	1,210			18	%
Demand deposits — interest-bearing		5,499			5,667			(168	)		(3	)
Money market deposits		13,230			11,267			1,963			17
Savings and other domestic deposits		4,744			4,643			101			2
Core certificates of deposit		8,017			9,371			(1,354	)		(14	)

Total core deposits		39,448			37,696			1,752			5
Other domestic deposits of $250,000 or more		486			683			(197	)		(29	)
Brokered deposits and negotiable CDs		1,426			1,613			(187	)		(12	)
Deposits in foreign offices		374			421			(47	)		(11	)

Total deposits		41,734			40,413			1,321			3
Short-term borrowings		2,166			1,214			952			78
Federal Home Loan Bank advances		138			193			(55	)		(28	)
Subordinated notes and other long-term debt		3,266			3,855			(589	)		(15	)

Total interest-bearing liabilities		39,346			38,927			419			1

All other liabilities		975			941			34			4
Shareholders’ equity		5,168			5,428			(260	)		(5	)

Total liabilities and shareholders’ equity	$	53,447		$	52,044		$	1,403			3	%


⁽¹⁾		Includes nonaccrual loans.

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


	YTD Interest Income / Expense
	Nine Months Ended September 30,
(dollar amounts in thousands)	2011		2010

Assets
Interest bearing deposits in banks	$	128	$	461
Trading account securities		1,265		1,404
Federal funds sold and securities purchased under resale agreements		5		—
Loans held for sale		9,174		17,889
Available-for-sale and other securities:
Taxable		160,201		180,039
Tax-exempt		14,013		13,617

Total available-for-sale and other securities		174,214		193,656
Held-to-maturity securities — taxable		6,346		—
Loans and leases:
Commercial:
Commercial and industrial		439,790		499,348
Commercial real estate:
Construction		16,476		24,987
Commercial		168,472		173,895

Commercial real estate		184,948		198,882

Total commercial		624,738		698,230

Consumer:
Automobile		224,928		219,251
Home equity		265,129		294,215
Residential mortgage		159,349		163,374
Other consumer		31,171		35,991

Total consumer		680,577		712,831

Total loans and leases		1,305,315		1,411,061

Total earning assets	$	1,496,447	$	1,624,471


Liabilities
Deposits:
Demand deposits — noninterest-bearing	$	—	$	—
Demand deposits — interest-bearing		3,915		8,623
Money market deposits		43,350		77,815
Savings and other domestic deposits		26,510		37,675
Core certificates of deposit		121,179		185,518

Total core deposits		194,954		309,631
Other domestic deposits of $250,000 or more		3,698		6,963
Brokered deposits and negotiable CDs		9,761		29,271
Deposits in foreign offices		672		640

Total deposits		209,085		346,505
Short-term borrowings		2,737		1,936
Federal Home Loan Bank advances		669		2,848
Subordinated notes and other long-term debt		58,374		62,302

Total interest-bearing liabilities		270,865		413,591

Net interest income	$	1,225,582	$	1,210,880

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


	YTD Average Rates (2)
	Nine Months Ended September 30,
Fully-taxable equivalent basis⁽¹⁾	2011			2010

Assets
Interest bearing deposits in banks		0.12	%		0.20	%
Trading account securities		1.46			1.68
Federal funds sold and securities purchased under resale agreements		0.09			—
Loans held for sale		4.39			5.36
Available-for-sale and other securities:
Taxable		2.52			2.85
Tax-exempt		4.30			4.56

Total available-for-sale and other securities		2.61			2.93
Held-to-maturity securities — taxable		3.00			—
Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		4.33			5.35
Commercial real estate:
Construction		3.55			2.69
Commercial		3.91			3.73

Commercial real estate		3.88			3.56

Total commercial		4.19			4.68

Consumer:
Automobile		5.05			6.27
Home equity		4.49			5.20
Residential mortgage		4.61			4.85
Other consumer		7.73			6.98

Total consumer		4.79			5.46

Total loans and leases		4.48			5.05

Total earning assets		4.14	%		4.64	%


Liabilities
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%
Demand deposits — interest-bearing		0.10			0.20
Money market deposits		0.44			0.92
Savings and other domestic deposits		0.75			1.08
Core certificates of deposit		2.02			2.65

Total core deposits		0.83			1.34
Other domestic deposits of $250,000 or more		1.02			1.36
Brokered deposits and negotiable CDs		0.92			2.43
Deposits in foreign offices		0.24			0.20

Total deposits		0.83			1.38
Short-term borrowings		0.17			0.21
Federal Home Loan Bank advances		0.64			1.94
Subordinated notes and other long-term debt		2.38			2.15

Total interest bearing liabilities		0.92			1.42


Net interest rate spread		3.17			3.22
Impact of noninterest-bearing funds on margin		0.22			0.24

Net interest margin		3.39	%		3.46	%

Commercial Loan Derivative Impact
(Unaudited)


	YTD Average Rates (2)
	Nine Months Ended September 30,
Fully-taxable equivalent basis⁽¹⁾	2011			2010
Commercial loans⁽²⁾⁽³⁾		3.82	%		3.82	%
Impact of commercial loan derivatives		0.37			0.86

Total commercial — as reported		4.19	%		4.68	%


Average 30 day LIBOR		0.23	%		0.26	%


⁽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)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except per share amounts)	2011			2010			Amount			Percent
Interest income	$	1,485,010		$	1,617,101		$	(132,091	)		(8	)%
Interest expense		270,865			413,590			(142,725	)		(35	)

Net interest income		1,214,145			1,203,511			10,634			1
Provision for credit losses		128,768			547,574			(418,806	)		(76	)

Net interest income after provision for credit losses		1,085,377			655,937			429,440			65

Service charges on deposit accounts		180,183			211,205			(31,022	)		(15	)
Mortgage banking income		59,310			122,613			(63,303	)		(52	)
Trust services		90,607			83,161			7,446			9
Electronic banking		93,228			81,334			11,894			15
Insurance income		51,564			56,735			(5,171	)		(9	)
Brokerage income		61,679			51,901			9,778			19
Bank owned life insurance income		48,065			44,953			3,112			7
Automobile operating lease income		22,044			35,501			(13,457	)		(38	)
Securities gains (losses)		197			(171	)		368			N.R.
Other income		144,394			90,406			53,988			60

Total noninterest income		751,271			777,638			(26,367	)		(3	)

Personnel costs		664,433			586,789			77,644			13
Outside data processing and other services		133,773			118,305			15,468			13
Net occupancy		82,288			81,192			1,096			1
Deposit and other insurance expense		59,211			74,228			(15,017	)		(20	)
Professional services		53,826			67,757			(13,931	)		(21	)
Equipment		66,660			63,860			2,800			4
Marketing		59,248			49,756			9,492			19
Amortization of intangibles		40,143			45,432			(5,289	)		(12	)
OREO and foreclosure expense		12,997			28,547			(15,550	)		(54	)
Automobile operating lease expense		16,656			28,892			(12,236	)		(42	)
Other expense		108,991			94,455			14,536			15

Total noninterest expense		1,298,226			1,239,213			59,013			5

Income before income taxes		538,422			194,362			344,060			177
Provision for income taxes		122,667			4,915			117,752			2,396

Net income	$	415,755		$	189,447		$	226,308			119	%

Dividends on preferred shares		23,110			88,278			(65,168	)		(74	)

Net income applicable to common shares	$	392,645		$	101,169		$	291,476			288	%

Average common shares — basic		863,542			716,604			146,938			21	%
Average common shares — diluted⁽²⁾		867,446			719,182			148,264			21

Per common share
Net income — basic	$	0.45		$	0.14		$	0.31			221	%
Net income — diluted		0.45			0.14			0.31			221
Cash dividends declared		0.06			0.03			0.03			100

Return on average total assets		1.04	%		0.49	%		0.55			112	%
Return on average common shareholders’ equity		10.9			3.6			7.3			203
Return on average tangible common shareholders’ equity⁽³⁾		13.2			5.6			7.6			136
Net interest margin⁽⁴⁾		3.39			3.46			(0.07	)		(2	)
Efficiency ratio⁽⁵⁾		63.6			60.0			3.6			6
Effective tax rate		22.8			2.5			20.3			812

Revenue — fully taxable equivalent (FTE)
Net interest income	$	1,214,145		$	1,203,511		$	10,634			1	%
FTE adjustment⁽⁴⁾		11,437			7,369			4,068			55

Net interest income		1,225,582			1,210,880			14,702			1
Noninterest income		751,271			777,638			(26,367	)		(3	)

Total revenue	$	1,976,853		$	1,988,518		$	(11,665	)		(1	)%

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 common shareholders’ equity. Average tangible common shareholders’ equity equals average total common 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)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except as noted)	2011			2010			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	46,969		$	69,204		$	(22,235	)		(32	)%
Servicing fees		37,103			36,649			454			1
Amortization of capitalized servicing		(28,556	)		(33,205	)		4,649			(14	)
Other mortgage banking income		11,854			11,840			14			—

Subtotal		67,370			84,488			(17,118	)		(20	)
MSR valuation adjustment⁽¹⁾		(46,912	)		(44,040	)		(2,872	)		7
Net trading gains (losses) related to MSR hedging		38,852			82,165			(43,313	)		(53	)

Total mortgage banking income	$	59,310		$	122,613		$	(63,303	)		(52	)%

Mortgage originations (in millions)	$	2,798		$	3,649		$	(851	)		(23	)%
Average trading account securities used to hedge MSRs (in millions)		25			23			2			9
Capitalized mortgage servicing rights⁽²⁾		145,277			161,594			(16,317	)		(10	)
Total mortgages serviced for others (in millions)⁽²⁾		16,061			15,713			348			2
MSR % of investor servicing portfolio		0.90	%		1.03	%		(0.13	)%		(13	)


Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	(46,912	)	$	(44,040	)	$	(2,872	)		7	%
Net trading gains (losses) related to MSR hedging		38,852			82,165			(43,313	)		(53	)
Net interest income related to MSR hedging		200			259			(59	)		(23	)

Net gain (loss) on MSR hedging	$	(7,860	)	$	38,384		$	(46,244	)		(120	)%


⁽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)


	Nine Months Ended September 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		(443,607	)		(798,320	)
Recoveries of loans previously charged off		90,435			96,097

Net loan and lease losses		(353,172	)		(702,223	)

Provision for loan and lease losses		132,116			556,392
Allowance of assets sold		(8,242	)		(296	)

Allowance for loan and lease losses, end of period	$	1,019,710		$	1,336,352


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		(3,348	)		(8,818	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	38,779		$	40,061

Total allowance for credit losses	$	1,058,489		$	1,376,413


Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		2.61	%		3.56	%
Nonaccrual loans and leases (NALs)		180			136
Nonperforming assets (NPAs)		166			121

Total allowance for credit losses (ACL) as % of:
Total loans and leases		2.71	%		3.67	%
Nonaccrual loans and leases (NALs)		187			140
Nonperforming assets (NPAs)		172			125

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


	Nine Months Ended September 30,
(dollar amounts in thousands)	2011			2010

Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	78,786		$	195,808
Commercial real estate:
Construction		33,995			97,924
Commercial		85,723			132,767

Commercial real estate		119,718			230,691

Total commercial		198,504			426,499

Consumer:
Automobile		10,830			19,537
Home equity⁽¹⁾		78,378			110,198
Residential mortgage⁽²⁾		46,949			126,120
Other consumer		18,511			19,869

Total consumer		154,668			275,724

Total net charge-offs	$	353,172		$	702,223


Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		0.78	%		2.12	%
Commercial real estate:
Construction		7.41			10.67
Commercial		2.01			2.88

Commercial real estate		2.54			4.17

Total commercial		1.35			2.89

Consumer:
Automobile		0.24			0.56
Home equity⁽¹⁾		1.33			1.95
Residential mortgage⁽²⁾		1.36			3.74
Other consumer		4.58			3.84

Total consumer		1.09			2.11

Net charge-offs as a % of average loans		1.22	%		2.52	%


⁽¹⁾		2010 included net charge-offs of $14,678 thousand associated with the transfer of Franklin-related loans to loans held for sale and $6,143 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 $14,914 thousand of other Franklin-related net charge-offs.

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


	September 30,
(dollar amounts in thousands)	2011			2010
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	209,632		$	398,353
Commercial real estate		257,086			478,754
Residential mortgage		61,129			82,984
Home equity		37,156			21,689

Total nonaccrual loans and leases		565,003			981,780
Other real estate, net:
Residential		18,588			65,775
Commercial		19,418			57,309

Total other real estate, net		38,006			123,084
Other NPAs (1)		10,972			—

Total nonperforming assets	$	613,981		$	1,104,864


Nonperforming Franklin assets:
Commercial	$	—		$	—
OREO		534			15,330
Impaired loans held for sale		—			—

Total nonperforming Franklin assets	$	534		$	15,330


Nonaccrual loans and leases as a % of total loans and leases		1.45	%		2.62	%

NPA ratio (2)		1.57			2.94


	Nine Months Ended September 30,
(dollar amounts in thousands)	2011			2010
Nonperforming assets, beginning of period	$	844,752		$	2,058,091
New nonperforming assets		555,925			687,897
Franklin impact, net		(8,943	)		(323,170	)
Returns to accruing status		(165,109	)		(270,747	)
Loan and lease losses		(283,667	)		(509,559	)
OREO losses (gains)		1,638			(6,979	)
Payments		(236,560	)		(459,133	)
Sales		(94,055	)		(71,536	)

Nonperforming assets, end of period	$	613,981		$	1,104,864


(1)		Other nonperforming assets represent an investment security backed by a municipal bond.

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

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


	September 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)		32,850			56,803
Home equity		20,420			27,160
Other consumer		7,755			11,423

Total, excl. loans guaranteed by the U.S. Government		61,025			95,386
Add: loans guaranteed by U.S. Government		84,413			94,249

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	145,438		$	189,635

Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.16	%		0.25	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.21	%		0.26	%

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.37	%		0.51	%

Accruing troubled debt restructured loans:
Commercial	$	321,598		$	157,971
Residential mortgages		304,365			304,356
Other consumer (1)		89,596			73,210

Total accruing troubled debt restructured loans	$	715,559		$	535,537


Nonaccruing troubled debt restructured loans:
Commercial	$	74,264		$	33,236
Residential mortgages		20,877			10,581
Other consumer (1)		279			—

Total nonaccruing troubled debt restructured loans	$	95,420		$	43,817


(1)		Includes home equity, automobile, and other consumer loans.

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports

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