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

Attached files

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8-K - FORM 8-K - HUNTINGTON BANCSHARES INC /MD/	d469130d8k.htm
EX-99.1 - EX-99.1 - HUNTINGTON BANCSHARES INC /MD/	d469130dex991.htm
EX-99.2 - EX-99.2 - HUNTINGTON BANCSHARES INC /MD/	d469130dex992.htm

Exhibit 99.3

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Review

December 2012

Table of Contents



Quarterly Key Statistics			1

Annual 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 Annual Average Balance Sheets			18

Consolidated Annual Net Interest Margin Analysis			19 - 20

Selected Annual Income Statement Data			21 - 22

Annual Mortgage Banking Income			23

Annual Credit Reserves Analysis			24

Annual Net Charge-Off Analysis			25

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			26

Annual 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.

Non-Regulatory Capital Ratios

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

•

Tangible common equity to tangible assets,

•

Tier 1 common equity to risk-weighted assets using Basel I definition, and

•

Tangible common equity to risk-weighted assets using Basel I definition.

These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in Generally Accepted Accounting Principles (“GAAP”) or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.

Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this press release in their entirety, and not to rely on any single financial measure.

Quarterly Key Statistics⁽¹⁾

(Unaudited)


	2012						2011			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Fourth			Third			Fourth			3Q12			4Q11
Net interest income	$	434,055		$	430,298		$	415,025			1	%		5	%
Provision for credit losses		39,458			37,004			45,291			7			(13	)
Noninterest income		297,651			261,067			229,352			14			30
Noninterest expense		470,628			458,303			430,274			3			9

Income before income taxes		221,620			196,058			168,812			13			31
Provision for income taxes		54,341			28,291			41,954			92			30

Net income	$	167,279		$	167,767		$	126,858			(0	)%		32	%

Dividends on preferred shares		7,973			7,983			7,703			(0	)		4

Net income applicable to common shares	$	159,306		$	159,784		$	119,155			(0	)%		34	%

Net income per common share - diluted	$	0.19		$	0.19		$	0.14			—	%		36	%
Cash dividends declared per common share		0.04			0.04			0.04			—			—
Book value per common share at end of period		6.41			6.34			5.82			1			10
Tangible book value per common share at end of period		5.78			5.71			5.18			1			12

Average common shares - basic		847,220			857,871			864,136			(1	)		(2	)
Average common shares - diluted		853,306			863,588			868,156			—			(2	)

Return on average assets		1.19	%		1.19	%		0.92	%
Return on average common shareholders’ equity		11.6			11.9			9.3
Return on average tangible common shareholders’ equity⁽²⁾		13.5			13.9			11.2
Net interest margin⁽³⁾		3.45			3.38			3.38
Efficiency ratio⁽⁴⁾		62.3			64.5			64.0
Noninterest Income/Total Revenue		40.4			37.5			35.4
Effective tax rate		24.5			14.4			24.9

Average loans and leases	$	40,396,541		$	40,119,938		$	39,519,184			1			2
Average loans and leases - linked quarter annualized growth rate		2.8	%		(10.3	)%		2.3	%
Average earning assets	$	50,682,461		$	51,330,241		$	49,146,561			(1	)		3
Average total assets		56,053,542			56,138,175			54,650,287			(0	)		3
Average core deposits⁽⁵⁾		44,309,913			43,763,695			41,354,956			1			7
Average core deposits - linked quarter annualized growth rate		5.0	%		9.2	%		14.0	%
Average shareholders’ equity	$	5,842,493		$	5,730,951		$	5,445,064			2			7

Total assets at end of period		56,153,185			56,443,000			54,450,652			(1	)		3
Total shareholders’ equity at end of period		5,790,211			5,807,604			5,418,100			—			7

Net charge-offs (NCOs)		70,130			105,095			83,917			(33	)		(16	)
NCOs as a % of average loans and leases		0.69	%		1.05	%		0.85	%
Nonaccrual loans and leases (NALs)	$	407,633		$	445,046		$	541,080			(8	)		(25	)
NAL ratio		1.00	%		1.11	%		1.39	%
Nonperforming assets (NPAs)⁽⁶⁾	$	445,775		$	509,728		$	590,276			(13	)		(25	)
NPA ratio⁽⁶⁾		1.09	%		1.26	%		1.51	%		(14	)		(28	)
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		1.89			1.96			2.48
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		1.99			2.09			2.60
ACL as a % of NALs		199			189			187
ACL as a % of NPAs		182			165			172
Tier 1 leverage ratio ⁽⁷⁾		10.34			10.29			10.28
Tier 1 common risk-based capital ratio⁽⁷⁾		10.47			10.28			10.00
Tier 1 risk-based capital ratio ⁽⁷⁾		12.01			11.88			12.11
Total risk-based capital ratio ⁽⁷⁾		14.51			14.36			14.77
Tangible common equity / tangible assets ratio⁽⁸⁾		8.76			8.74			8.30

See Notes to the Annual and Quarterly Key Statistics.

HUNTINGTON BANCSHARES INCORPORATED

Annual Key Statistics⁽¹⁾

(Unaudited)


	Year Ended December 31,						Change
(dollar amounts in thousands, except per share amounts)	2012			2011			Amount			Percent
Net interest income	$	1,710,524		$	1,629,170		$	81,354			5	%
Provision for credit losses		147,388			174,059			(26,671	)		(15	)
Noninterest income		1,097,857			980,623			117,234			12
Noninterest expense		1,835,876			1,728,500			107,376			6

Income before income taxes		825,117			707,234			117,883			17
Provision for income taxes		184,095			164,621			19,474			12

Net Income	$	641,022		$	542,613		$	98,409			18	%

Dividends on preferred shares		31,989			30,813			1,176			4

Net income applicable to common shares	$	609,033		$	511,800		$	97,233			19	%

Net income per common share - diluted	$	0.71		$	0.59		$	0.12			20	%
Cash dividends declared per common share		0.16			0.10			0.06			60

Average common shares - basic		857,962			863,691			(5,729	)		(1	)
Average common shares - diluted		863,402			867,624			(4,222	)		—

Return on average assets		1.15	%		1.01	%
Return on average common shareholders’ equity		11.5			10.5
Return on average tangible common shareholders’ equity⁽²⁾		13.5			12.7
Net interest margin⁽³⁾		3.41			3.38
Efficiency ratio⁽⁴⁾		63.4			63.7
Noninterest Income/Total Revenue		38.8			37.4
Effective tax rate		22.3			23.3

Average loans and leases	$	40,210,186		$	38,867,250		$	1,342,936			3	%
Average earning assets		50,709,060			48,574,298			2,134,762			4
Average total assets		55,673,599			53,750,054			1,923,545			4
Average core deposits⁽⁵⁾		43,065,687			39,929,097			3,136,590			8
Average shareholders’ equity		5,671,455			5,237,541			433,914			8

Net charge-offs (NCOs)		342,462			437,089			(94,627	)		(22	)
NCOs as a% of average loans and leases		0.85	%		1.12	%		(0.27	)		(24	)

See Notes to the Annual and Quarterly Key Statistics.

Notes to the Annual and Quarterly Key Statistics

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

⁽²⁾

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.

⁽³⁾	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁴⁾	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).

⁽⁵⁾	Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.

⁽⁶⁾	NPAs include other real estate owned.

⁽⁷⁾	December 31, 2012, figures are estimated.

⁽⁸⁾	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


	2012						2011			Percent Changes vs.
(dollar amounts in thousands, except number of shares)	December 31,			September 30,			December 31,			3Q12			4Q11
(dollar amounts in thousands, except number of shares)	*(Unaudited)*			(Unaudited)
Assets
Cash and due from banks	$	1,262,806		$	797,601		$	1,115,968			58	%		13	%
Interest-bearing deposits in banks		70,921			65,635			90,943			8			(22	)
Trading account securities		91,205			91,970			45,899			(1	)		99
Loans held for sale		764,309			1,852,919			1,618,391			(59	)		(53	)
Available-for-sale and other securities		7,566,175			7,778,568			8,078,014			(3	)		(6	)
Held-to-maturity securities		1,743,876			1,582,150			640,551			10			172
Loans and leases⁽¹⁾		40,728,425			40,260,417			38,923,783			1			5
Allowance for loan and lease losses		(769,075	)		(789,142	)		(964,828	)		(3	)		(20	)

Net loans and leases		39,959,350			39,471,275			37,958,955			1			5

Bank owned life insurance		1,596,056			1,586,902			1,549,783			1			3
Premises and equipment		617,257			590,750			564,429			4			9
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		132,157			143,804			175,302			(8	)		(25	)
Accrued income and other assets		1,904,805			2,037,158			2,168,149			(6	)		(12	)

Total assets	$	56,153,185		$	56,443,000		$	54,450,652			(1	)%		3	%

Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	46,252,683		$	46,741,286		$	43,279,625			(1	)%		7	%
Short-term borrowings		589,814			1,259,771			1,441,092			(53	)		(59	)
Federal Home Loan Bank advances		1,008,959			9,406			362,972			10,627			178
Other long-term debt		158,784			185,613			1,231,517			(14	)		(87	)
Subordinated notes		1,197,091			1,306,273			1,503,368			(8	)		(20	)
Accrued expenses and other liabilities		1,155,643			1,133,047			1,213,978			2			(5	)

Total liabilities		50,362,974			50,635,396			49,032,552			(1	)		3

Shareholder’s equity

Preferred stock - authorized 6,617,808 shares- Series A, 8.50% fixed rate, non-cumulative perpetual convertible preferred stock, par value of $0.01, and liquidation value per share of $1,000		362,507			362,507			362,507			—			—

Series B, floating rate, non-voting, non-cumulative perpetual preferred stock, par value of $0.01, and liquidation value per share of $1,000		23,785			23,785			23,785			—			—

Common stock - Par value of $0.01		8,441			8,567			8,656			(1	)		(2	)
Capital surplus		7,475,149			7,551,509			7,596,809			(1	)		(2	)
Less treasury shares, at cost		(10,921	)		(10,817	)		(10,255	)		1			6
Accumulated other comprehensive loss		(150,817	)		(84,542	)		(173,763	)		78			—
Retained earnings		(1,917,933	)		(2,043,405	)		(2,389,639	)		(6	)		(20	)

Total shareholders’ equity		5,790,211			5,807,604			5,418,100			—			7

Total liabilities and shareholders’ equity	$	56,153,185		$	56,443,000		$	54,450,652			(1	)%		3	%

Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		844,105,349			856,748,584			865,584,517
Common shares outstanding		842,812,709			855,485,376			864,406,152
Treasury shares outstanding		1,292,640			1,263,208			1,178,365
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		398,007			398,007			398,007

⁽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


	2012																2011
(dollar amounts in millions)	December 31,				September 30,				June 30,				March 31,				December 31,
	*(Unaudited)*				(Unaudited)				(Unaudited)				(Unaudited)
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	16,971	42	%	$	16,478	41	%	$	16,322	41	%	$	15,838	39	%	$	14,699	38	%
Commercial real estate:
Construction		648	2			541	1			591	1			597	1			580	1
Commercial		4,751	12			4,956	12			5,317	13			5,443	13			5,246	13

Commercial real estate		5,399	14			5,497	13			5,908	14			6,040	14			5,826	14

Total commercial		22,370	56			21,975	54			22,230	55			21,878	53			20,525	52

Consumer:
Automobile		4,634	11			4,276	11			3,808	10			4,787	12			4,458	11
Home equity		8,335	20			8,381	21			8,344	21			8,261	20			8,215	21
Residential mortgage		4,970	12			5,192	13			5,123	13			5,284	13			5,228	13
Other consumer		419	1			436	1			454	1			469	2			498	3

Total consumer		18,358	44			18,285	46			17,729	45			18,801	47			18,399	48

Total loans and leases	$	40,728	100	%	$	40,260	100	%	$	39,959	100	%	$	40,679	100	%	$	38,924	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	12,644	31	%	$	12,656	31	%	$	12,714	32	%	$	12,432	31	%	$	12,361	32	%
Regional and Commercial Banking		10,679	26			10,463	26			10,420	26			9,936	24			9,134	23
AFCRE		11,396	28			11,019	27			10,892	27			11,698	29			11,375	29
WGH		5,887	15			6,053	16			5,904	15			5,968	14			5,952	16
Treasury / Other		122	—			69	—			29	—			645	2			102	—

Total loans and leases	$	40,728	100	%	$	40,260	100	%	$	39,959	100	%	$	40,679	100	%	$	38,924	100	%


	2012																2011
	Fourth				Third				Second				First				Fourth
Average Balances by Business Segment:
Retail and Business Banking	$	12,677	31	%	$	12,703	32	%	$	12,977	32	%	$	12,420	32	%	$	12,302	31	%
Regional and Commercial Banking		10,390	26			10,427	26			10,229	25			9,250	24			8,902	23
AFCRE		11,221	28			10,949	27			11,891	29			11,468	29			12,496	32
WGH		6,054	15			5,993	15			6,007	14			5,920	15			5,731	14
Treasury / Other		55	—			48	—			75	—			87	—			87	—

Total loans and leases	$	40,397	100	%	$	40,120	100	%	$	41,179	100	%	$	39,145	100	%	$	39,518	100	%

⁽¹⁾	As defined by regulatory guidance, there were no commercial loans outstanding that would be considered a concentration of lending to a particular industry or group of industries.

Huntington Bancshares Incorporated

Deposits Composition


	2012																2011
(dollar amounts in millions)	December 31,				September 30,				June 30,				March 31,				December 31,
	*(Unaudited)*				(Unaudited)				(Unaudited)				(Unaudited)
Ending Balances by Type:
Demand deposits - noninterest-bearing	$	12,600	27	%	$	12,680	27	%	$	12,324	27	%	$	11,797	26	%	$	11,158	26	%
Demand deposits - interest-bearing		6,218	13			5,909	13			6,060	13			6,126	14			5,722	13
Money market deposits		14,691	32			14,926	32			13,756	30			13,169	29			13,117	30
Savings and other domestic deposits		5,002	11			4,949	11			4,961	11			4,954	11			4,698	11
Core certificates of deposit		5,516	12			5,817	12			6,508	14			6,920	15			6,513	15

Total core deposits		44,027	95			44,281	95			43,609	95			42,966	95			41,208	95
Other domestic deposits of $250,000 or more		354	1			352	1			260	1			325	1			390	1
Brokered deposits and negotiable CDs		1,594	3			1,795	4			1,888	4			1,276	3			1,321	3
Deposits in foreign offices		278	1			313	—			319	—			442	1			361	1

Total deposits	$	46,253	100	%	$	46,741	100	%	$	46,076	100	%	$	45,009	100	%	$	43,280	100	%

Total core deposits:
Commercial	$	18,358	42	%	$	19,207	43	%	$	18,324	42	%	$	17,101	40	%	$	16,366	40	%
Consumer		25,669	58			25,074	57			25,285	58			25,865	60			24,842	60

Total core deposits	$	44,027	100	%	$	44,281	100	%	$	43,609	100	%	$	42,966	100	%	$	41,208	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	28,367	61	%	$	28,220	60	%	$	28,348	62	%	$	27,935	62	%	$	27,536	64	%
Regional and Commercial Banking		5,863	13			6,205	13			5,333	12			4,748	11			4,683	11
AFCRE		995	2			922	2			907	2			914	2			881	2
WGH		9,508	21			9,816	22			9,782	20			9,632	21			9,115	21
Treasury / Other⁽¹⁾		1,520	3			1,578	3			1,706	4			1,780	4			1,065	2

Total deposits	$	46,253	100	%	$	46,741	100	%	$	46,076	100	%	$	45,009	100	%	$	43,280	100	%


	2012																2011
	Fourth				Third				Second				First				Fourth
Average Balances by Business Segment:
Retail and Business Banking	$	28,301	61	%	$	28,248	61	%	$	28,260	63	%	$	27,452	63	%	$	27,835	64	%
Regional and Commercial Banking		6,120	13			5,715	12			4,762	11			4,680	11			4,467	10
AFCRE		949	2			942	2			855	2			811	2			802	2
WGH		9,873	21			9,735	21			9,783	21			9,450	22			9,406	21
Treasury / Other⁽¹⁾		1,524	3			1,658	4			1,197	3			1,072	2			1,093	3

Total deposits	$	46,767	100	%	$	46,298	100	%	$	44,857	100	%	$	43,465	100	%	$	43,603	100	%

⁽¹⁾	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Average Balances
	2012												2011			Percent Changes vs.
(dollar amounts in millions)	Fourth			Third			Second			First			Fourth			3Q12			4Q11
Assets
Interest-bearing deposits in banks	$	73		$	82		$	124		$	100		$	107			(11	)%		(32	)%
Trading account securities		97			66			54			50			81			47			20
Loans held for sale		840			1,829			410			1,265			316			(54	)		166
Available-for-sale and other securities:																	—
Taxable		7,131			8,014			8,285			8,171			8,065			(11	)		(12	)
Tax-exempt		492			423			387			404			409			16			20

Total available-for-sale and other securities		7,623			8,437			8,672			8,575			8,474			(10	)		(10	)
Held-to-maturity securities - taxable		1,652			796			611			632			650			108			154
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		16,507			16,343			16,094			14,824			14,219			1			16
Commercial real estate:																	—
Construction		576			569			584			598			533			1			8
Commercial		4,897			5,153			5,491			5,254			5,425			(5	)		(10	)

Commercial real estate		5,473			5,722			6,075			5,852			5,958			(4	)		(8	)

Total commercial		21,980			22,065			22,169			20,676			20,177			—			9

Consumer:
Automobile		4,486			4,065			4,985			4,576			5,639			10			(20	)
Home equity		8,345			8,369			8,310			8,234			8,149			—			2
Residential mortgage		5,155			5,177			5,253			5,174			5,043			—			2
Other consumer		431			444			462			485			511			(3	)		(16	)

Total consumer		18,417			18,055			19,010			18,469			19,342			2			(5	)

Total loans and leases		40,397			40,120			41,179			39,145			39,519			1			2
Allowance for loan and lease losses		(783	)		(855	)		(908	)		(961	)		(1,014	)		(8	)		(23	)

Net loans and leases		39,614			39,265			40,271			38,184			38,505			1			3

Total earning assets		50,682			51,330			51,050			49,767			49,147			(1	)		3

Cash and due from banks		1,459			960			928			1,012			1,671			52			(13	)
Intangible assets		581			597			609			613			625			(3	)		(7	)
All other assets		4,115			4,106			4,158			4,225			4,221			—			(3	)

Total assets	$	56,054		$	56,138		$	55,837		$	54,656		$	54,650			—	%		3	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	13,121		$	12,329		$	12,064		$	11,273		$	10,716			6	%		22	%
Demand deposits - interest-bearing		5,843			5,814			5,939			5,646			5,570			—			5

Total demand deposits		18,964			18,143			18,003			16,919			16,286			5			16
Money market deposits		14,749			14,515			13,182			13,141			13,594			2			8
Savings and other domestic deposits		4,960			4,975			4,978			4,817			4,706			—			5
Core certificates of deposit		5,637			6,131			6,618			6,510			6,769			(8	)		(17	)

Total core deposits		44,310			43,764			42,781			41,387			41,355			1			7
Other domestic deposits of $250,000 or more		359			300			298			347			405			20			(11	)
Brokered deposits and negotiable CDs		1,756			1,878			1,421			1,301			1,410			(6	)		25
Deposits in foreign offices		342			356			357			430			434			(4	)		(21	)

Total deposits		46,767			46,298			44,857			43,465			43,604			1			7
Short-term borrowings		1,012			1,329			1,391			1,512			1,728			(24	)		(41	)
Federal Home Loan Bank advances		42			107			626			419			29			(61	)		45
Subordinated notes and other long-term debt		1,374			1,638			2,251			2,652			2,866			(16	)		(52	)

Total interest-bearing liabilities		36,074			37,043			37,061			36,775			37,511			(3	)		(4	)

All other liabilities		1,017			1,035			1,094			1,116			978			(2	)		4
Shareholders’ equity		5,842			5,731			5,618			5,492			5,445			2			7

Total liabilities and shareholders’ equity	$	56,054		$	56,138		$	55,837		$	54,656		$	54,650			—	%		3	%

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin—Interest Income / Expense (1)

(Unaudited)


	Interest Income / Expense
	2012								2011
(dollar amounts in thousands)	Fourth		Third		Second		First		Fourth
Assets
Interest-bearing deposits in banks	$	51	$	42	$	97	$	12	$	15
Trading account securities		245		178		223		207		197
Loans held for sale		6,675		14,548		3,541		12,005		3,124
Available-for-sale and other securities:
Taxable		41,335		45,936		48,245		48,824		47,784
Tax-exempt		4,968		4,383		4,099		4,209		4,313

Total available-for-sale and other securities		46,303		50,319		52,344		53,033		52,097
Held-to-maturity securities - taxable		9,244		5,591		4,539		4,714		4,867
Loans and leases:
Commercial:
Commercial and industrial		163,644		162,998		162,419		150,397		145,825
Commercial real estate:
Construction		6,075		5,583		5,397		5,831		6,513
Commercial		52,543		50,704		54,554		50,750		54,220

Commercial real estate		58,618		56,287		59,951		56,581		60,733

Total commercial		222,262		219,285		222,370		206,978		206,558

Consumer:
Automobile		50,930		49,718		57,971		55,435		68,283
Home equity		88,541		89,388		89,358		88,582		89,876
Residential mortgage		52,440		51,981		54,326		53,914		54,263
Other consumer		7,774		7,991		8,522		8,992		9,416

Total consumer		199,685		199,078		210,177		206,923		221,838

Total loans and leases		421,947		418,363		432,547		413,901		428,396

Total earning assets	$	484,465	$	489,041	$	493,291	$	483,872	$	488,696

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing		734		1,013		987		845		1,182

Total demand deposits		734		1,013		987		845		1,182
Money market deposits		9,843		12,025		9,954		8,343		10,994
Savings and other domestic deposits		4,150		4,576		4,858		5,345		6,213
Core certificates of deposit		17,144		19,237		22,682		25,919		28,851

Total core deposits		31,871		36,851		38,481		40,452		47,240
Other domestic deposits of $250,000 or more		553		511		493		583		794
Brokered deposits and negotiable CDs		3,141		3,356		2,650		2,547		2,727
Deposits in foreign offices		152		164		165		197		206

Total deposits		35,717		40,882		41,789		43,779		50,967
Short-term borrowings		363		544		558		583		764
Federal Home Loan Bank advances		129		135		333		222		156
Subordinated notes and other long-term debt		8,731		11,928		15,902		18,144		18,305

Total interest bearing liabilities		44,940		53,489		58,582		62,728		70,192

Net interest income	$	439,525	$	435,552	$	434,709	$	421,144	$	418,504

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

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin Analysis

(Unaudited)


	Average Rates (2)
	2012												2011
Fully-taxable equivalent basis⁽¹⁾	Fourth			Third			Second			First			Fourth
Assets
Interest-bearing deposits in banks		0.28	%		0.21	%		0.31	%		0.05	%		0.06	%
Trading account securities		1.01			1.07			1.64			1.65			0.97
Loans held for sale		3.18			3.18			3.46			3.80			3.96
Available-for-sale and other securities:
Taxable		2.32			2.29			2.33			2.39			2.37
Tax-exempt		4.03			4.15			4.23			4.17			4.22

Total available-for-sale and other securities		2.43			2.39			2.41			2.47			2.46
Held-to-maturity securities - taxable		2.24			2.81			2.97			2.98			2.99
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		3.88			3.90			3.99			4.01			4.01
Commercial real estate:
Construction		4.13			3.84			3.66			3.85			4.78
Commercial		4.20			3.85			3.93			3.82			3.91

Commercial real estate		4.19			3.85			3.89			3.82			3.99

Total commercial		3.96			3.89			3.97			3.96			4.01

Consumer:
Automobile		4.52			4.87			4.68			4.87			4.80
Home equity		4.24			4.27			4.30			4.30			4.41
Residential mortgage		4.07			4.02			4.14			4.17			4.30
Other consumer		7.16			7.16			7.42			7.47			7.32

Total consumer		4.33			4.40			4.43			4.49			4.57

Total loans and leases		4.13			4.12			4.18			4.21			4.28

Total earning assets		3.80	%		3.79	%		3.89	%		3.91	%		3.95	%

Liabilities
Deposits:
Demand deposits - noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits - interest-bearing		0.05			0.07			0.07			0.06			0.08

Total demand deposits		0.02			0.02			0.02			0.02			0.03
Money market deposits		0.27			0.33			0.30			0.26			0.32
Savings and other domestic deposits		0.33			0.37			0.39			0.45			0.52
Core certificates of deposit		1.21			1.25			1.38			1.60			1.69

Total core deposits		0.41			0.47			0.50			0.54			0.61
Other domestic deposits of $250,000 or more		0.61			0.68			0.66			0.68			0.78
Brokered deposits and negotiable CDs		0.71			0.71			0.75			0.79			0.77
Deposits in foreign offices		0.18			0.18			0.19			0.18			0.19

Total deposits		0.42			0.48			0.51			0.55			0.61
Short-term borrowings		0.14			0.16			0.16			0.16			0.18
Federal Home Loan Bank advances		1.20			0.50			0.21			0.21			2.09
Subordinated notes and other long-term debt		2.55			2.91			2.83			2.74			2.56

Total interest-bearing liabilities		0.50			0.58			0.63			0.68			0.74

Net interest rate spread		3.30			3.21			3.26			3.23			3.21
Impact of noninterest-bearing funds on margin		0.15			0.17			0.16			0.17			0.17

Net interest margin		3.45	%		3.38	%		3.42	%		3.40	%		3.38	%

Commercial Loan Derivative Impact

(Unaudited)


	Average Rates (2)
	2012												2011
Fully-taxable equivalent basis⁽¹⁾	Fourth			Third			Second			First			Fourth
Commercial loans⁽²⁾⁽³⁾		3.72	%		3.61	%		3.67	%		3.69	%		3.79	%
Impact of commercial loan derivatives		0.24			0.28			0.30			0.27			0.22

Total commercial - as reported		3.96	%		3.89	%		3.97	%		3.96	%		4.01	%

Average 30 day LIBOR		0.21	%		0.24	%		0.24	%		0.26	%		0.26	%

⁽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)


	2012										2011			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Fourth		Third		Second			First			Fourth			3Q12			4Q11
Interest income	$	478,995	$	483,787	$	487,544		$	479,937		$	485,216			(2	)%		(2	)%
Interest expense		44,940		53,489		58,582			62,728			70,191			(16	)		(36	)

Net interest income		434,055		430,298		428,962			417,209			415,025			1			5
Provision for credit losses		39,458		37,004		36,520			34,406			45,291			7			(13	)

Net interest income after provision for credit losses		394,597		393,294		392,442			382,803			369,734			—			7

Service charges on deposit accounts		68,083		67,806		65,998			60,292			63,324			—			8
Mortgage banking income		61,711		44,614		38,349			46,418			24,098			38			156
Trust services		31,388		29,689		29,914			30,906			28,775			6			9
Electronic banking		21,011		22,135		20,514			18,630			18,282			(5	)		15
Brokerage income		17,415		16,526		19,025			19,260			18,688			5			(7	)
Insurance income		17,268		17,792		17,384			18,875			17,906			(3	)		(4	)
Gain on sale of loans		20,690		6,591		4,131			26,770			2,884			214			617
Bank owned life insurance income		13,767		14,371		13,967			13,937			14,271			(4	)		(4	)
Capital markets fees		12,918		11,805		13,455			9,982			9,811			9			32
Securities gains (losses)		863		4,169		350			(613	)		(3,878	)		(79	)		N.R.
Other income		32,537		25,569		30,732			40,863			35,191			27			(8	)

Total noninterest income		297,651		261,067		253,819			285,320			229,352			14			30

Personnel costs		253,952		247,709		243,034			243,498			228,101			3			11
Outside data processing and other services		48,699		50,396		48,568			42,592			53,934			(3	)		(10	)
Net occupancy		29,008		27,599		25,474			29,079			26,841			5			8
Equipment		26,580		25,950		24,872			25,545			25,884			2			3
Deposit and other insurance expense		16,327		15,534		15,731			20,738			18,481			5			(12	)
Professional services		22,514		17,510		15,037			10,697			16,257			29			38
Marketing		16,456		16,842		17,396			13,569			13,920			(2	)		18
Amortization of intangibles		11,647		11,431		11,940			11,531			13,175			2			(12	)
OREO and foreclosure expense		4,233		4,982		4,106			4,950			5,009			(15	)		(15	)
Loss (Gain) on early extinguishment of debt		—		1,782		(2,580	)		—			(9,697	)		(100	)		N.R.
Other expense		41,212		38,568		40,691			60,477			38,369			7			7

Total noninterest expense		470,628		458,303		444,269			462,676			430,274			3			9

Income before income taxes		221,620		196,058		201,992			205,447			168,812			13			31
Provision for income taxes		54,341		28,291		49,286			52,177			41,954			92			30

Net income	$	167,279	$	167,767	$	152,706		$	153,270		$	126,858			(0	)%		32	%

Dividends on preferred shares		7,973		7,983		7,984			8,049			7,703			(0	)		4

Net income applicable to common shares	$	159,306	$	159,784	$	144,722		$	145,221		$	119,155			(0	)%		34	%

Average common shares - basic		847,220		857,871		862,261			864,499			864,136			—	%		(2	)%
Average common shares - diluted		853,306		863,588		867,551			869,164			868,156			(1	)		(2	)

Per common share
Net income - basic	$	0.19	$	0.19	$	0.17		$	0.17		$	0.14			—	%		36	%
Net income - diluted		0.19		0.19		0.17			0.17			0.14			—			36
Cash dividends declared		0.04		0.04		0.04			0.04			0.04			—			—

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	434,055	$	430,298	$	428,962		$	417,209		$	415,025			1			5
FTE adjustment		5,470		5,254		5,747			3,935			3,479			4			57

Net interest income⁽²⁾		439,525		435,552		434,709			421,144			418,504			1			5
Noninterest income		297,651		261,067		253,819			285,320			229,352			14			30

Total revenue⁽²⁾	$	737,176	$	696,619	$	688,528		$	706,464		$	647,856			6	%		14	%

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

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Income

(Unaudited)


	2012												2011			Percent Changes vs.
(dollar amounts in thousands, except as noted)	Fourth			Third			Second			First			Fourth			3Q12			4Q11
Mortgage banking income

Origination and secondary marketing	$	44,497		$	40,860		$	30,184		$	31,304		$	21,248			9	%		109	%
Servicing fees		11,491			11,308			11,618			11,760			11,993			2			(4	)
Amortization of capitalized servicing		(9,116	)		(8,405	)		(9,108	)		(9,279	)		(8,813	)		8			3
Other mortgage banking income		4,828			4,999			4,814			4,966			3,652			(3	)		32

Subtotal		51,700			48,762			37,508			38,751			28,080			6			84

MSR valuation adjustment⁽¹⁾		11,747			(19,543	)		(19,013	)		9,907			(6,985	)		N.R.			N.R.
Net trading gains (losses) related to MSR hedging		(1,736	)		15,395			19,854			(2,240	)		3,003			(111	)		(158	)

Total mortgage banking income	$	61,711		$	44,614		$	38,349		$	46,418		$	24,098			38	%		156	%

Mortgage originations (in millions)	$	1,161		$	1,224		$	1,291		$	1,157		$	1,123			(5	)%		3	%
Average trading account securities used to hedge MSRs (in millions)		1			4			4			5			6			(75	)		(83	)
Capitalized mortgage servicing rights⁽²⁾		120,747			108,074			128,297			148,349			137,435			12			(12	)
Total mortgages serviced for others (in millions)⁽²⁾		15,623			15,571			15,724			15,902			15,886			—			(2	)
MSR% of investor servicing portfolio⁽²⁾		0.77	%		0.69	%		0.82	%		0.93	%		0.87	%		12			(11	)

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	11,747		$	(19,543	)	$	(19,013	)	$	9,907		$	(6,985	)		N.R.	%		N.R.	%
Net trading gains (losses) related to MSR hedging		(1,736	)		15,395			19,854			(2,240	)		3,003			(111	)		(158	)
Net interest income (loss) related to MSR hedging		—			4			(21	)		(9	)		(34	)		N.R.			N.R.

Net gain (loss) of MSR hedging	$	10,011		$	(4,144	)	$	820		$	7,658		$	(4,016	)		N.R.	%		N.R.	%

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

⁽²⁾	At period end.

N.R. - Not relevant, as denominator of calculation is a loss in prior period compared with income in current period or as numerator of calculation is zero in the current period.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)


	2012												2011
(dollar amounts in thousands)	Fourth			Third			Second			First			Fourth
Allowance for loan and lease losses, beginning of period	$	789,142		$	859,646		$	913,069		$	964,828		$	1,019,710

Loan and lease losses		(106,962	)		(132,186	)		(108,092	)		(107,960	)		(114,146	)
Recoveries of loans previously charged off		36,832			27,091			23,847			24,968			30,229

Net loan and lease losses		(70,130	)		(105,095	)		(84,245	)		(82,992	)		(83,917	)

Provision for loan and lease losses		52,370			34,419			36,476			31,928			35,614
Allowance of assets sold or transferred to loans held for sale		(2,307	)		172			(5,654	)		(695	)		(6,579	)

Allowance for loan and lease losses, end of period	$	769,075		$	789,142		$	859,646		$	913,069		$	964,828

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	53,563		$	50,978		$	50,934		$	48,456		$	38,779
Provision for (reduction in) unfunded loan commitments and letters of credit losses		(12,912	)		2,585			44			2,478			9,677

Allowance for unfunded loan commitments and letters of credit, end of period	$	40,651		$	53,563		$	50,978		$	50,934		$	48,456

Total allowance for credit losses, end of period	$	809,726		$	842,705		$	910,624		$	964,003		$	1,013,284

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.89	%		1.96	%		2.15	%		2.24	%		2.48	%
Nonaccrual loans and leases (NALs)		189			177			181			195			178
Nonperforming assets (NPAs)		173			155			164			173			163

Total allowance for credit losses (ACL) as% of:
Total loans and leases		1.99	%		2.09	%		2.28	%		2.37	%		2.60	%
Nonaccrual loans and leases		199			189			192			206			187
Nonperforming assets		182			165			174			183			172

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	2012												2011
(dollar amounts in thousands)	Fourth			Third			Second			First			Fourth
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	7,052		$	13,023		$	15,678		$	28,495		$	10,913
Commercial real estate:
Construction		11,038			(280	)		(1,531	)		(1,186	)		(2,471	)
Commercial		10,333			17,654			30,709			11,692			30,854

Commercial real estate		21,371			17,374			29,178			10,506			28,383

Total commercial		28,423			30,397			44,856			39,001			39,296

Consumer:
Automobile		1,896			4,019			449			3,078			4,237
Home equity		25,013			46,592			21,045			23,729			23,419
Residential mortgage		9,687			16,880			10,786			10,570			9,732
Other consumer		5,111			7,207			7,109			6,614			7,233

Total consumer		41,707			74,698			39,389			43,991			44,621

Total net charge-offs	$	70,130		$	105,095		$	84,245		$	82,992		$	83,917

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.17	%		0.32	%		0.39	%		0.77	%		0.31	%
Commercial real estate:
Construction		7.67			(0.20	)		(1.05	)		(0.79	)		(1.85	)
Commercial		0.84			1.37			2.24			0.89			2.27

Commercial real estate		1.56			1.21			1.92			0.72			1.91

Total commercial		0.52			0.55			0.81			0.75			0.78

Consumer:
Automobile		0.17			0.40			0.04			0.27			0.30
Home equity		1.20			2.23			1.01			1.15			1.15
Residential mortgage		0.75			1.30			0.82			0.82			0.77
Other consumer		4.74			6.49			6.15			5.45			5.66

Total consumer		0.91			1.65			0.83			0.95			0.92

Net charge-offs as a% of average loans		0.69	%		1.05	%		0.82	%		0.85	%		0.85	%

Huntington Bancshares Incorporated

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

(Unaudited)


	2012												2011
(dollar amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	90,705		$	109,452		$	133,678		$	142,492		$	201,846
Commercial real estate		127,128			148,986			219,417			205,105			229,889
Automobile		7,823			11,814			—			—			—
Residential mortgage		122,452			123,140			75,048			74,114			68,658
Home equity		59,525			51,654			46,023			45,847			40,687

Total nonaccrual loans and leases		407,633			445,046			474,166			467,558			541,080

Other real estate, net:
Residential⁽¹⁾		21,378			23,640			21,499			31,850			20,330
Commercial		6,719			30,566			17,109			16,897			18,094

Total other real estate, net		28,097			54,206			38,608			48,747			38,424
Other NPAs ⁽²⁾		10,045			10,476			10,476			10,772			10,772

Total nonperforming assets⁽¹⁾	$	445,775		$	509,728		$	523,250		$	527,077		$	590,276

Nonaccrual loans and leases as a% of total loans and leases		1.00	%		1.11	%		1.19	%		1.15	%		1.39	%

NPA ratio⁽³⁾		1.09			1.26			1.31			1.29			1.51

	2012												2011
	Fourth			Third			Second			First			Fourth
Nonperforming assets, beginning of period	$	509,728		$	523,250		$	527,077		$	590,276		$	613,981
New nonperforming assets⁽¹⁾		175,083	(4)		210,995			221,010			134,636			189,138
Franklin impact, net		—			—			—			—			(534	)
Returns to accruing status		(23,553	)		(45,729	)		(39,376	)		(32,056	)		(30,677	)
Loan and lease losses		(82,759	)		(78,308	)		(74,546	)		(75,366	)		(79,117	)
OREO (losses) gains		283			73			(459	)		(295	)		(867	)
Payments		(81,940	)		(90,535	)		(63,530	)		(66,609	)		(91,734	)
Sales		(51,067	)		(10,018	)		(46,926	)		(23,509	)		(9,914	)

Nonperforming assets, end of period	$	445,775		$	509,728		$	523,250		$	527,077		$	590,276

⁽¹⁾	Residential real estate owned properties acquired in the FDIC-assisted Fidelity Bank acquisition are reflected in the above table.

⁽²⁾	Other nonperforming assets represent an investment security backed by a municipal bond.

⁽³⁾	Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

⁽⁴⁾	Includes $60.1 million related to Chapter 7 bankruptcy loans.

Huntington Bancshares Incorporated

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

(Unaudited)


	2012												2011
(dollar amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Accruing loans and leases past due 90 days or more:

Commercial and industrial (1)	$	26,648		$	26,117		$	19,258		$	—		$	—
Commercial real estate (1)		56,660			45,131			38,125			—			—
Automobile		4,418			3,857			3,338			3,873			6,265
Residential mortgage (excluding loans guaranteed by the U.S. Government)		2,718			10,687			15,457			35,604			45,198
Home equity		18,200			21,343			18,176			19,862			20,198
Other consumer		1,672			1,084			1,201			1,218			1,988

Total, excl. loans guaranteed by the U.S. Government		110,316			108,219			95,555			60,557			73,649
Add: loans guaranteed by U.S. Government		90,816			87,463			85,678			94,560			96,703

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	201,132		$	195,682		$	181,233		$	155,117		$	170,352

Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.27	%		0.27	%		0.24	%		0.15	%		0.19	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.22			0.22			0.21			0.23			0.25

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.49			0.49			0.45			0.38			0.44

Accruing troubled debt restructured loans: (2)
Commercial and industrial	$	76,586		$	55,809		$	57,008		$	53,795		$	54,007
Commercial real estate		208,901			222,155			202,190			231,923			249,968
Automobile		35,784			33,719			34,460			35,521			36,573
Home equity		110,581			92,763			66,997			59,270			52,224
Residential mortgage		290,011			280,890			298,967			294,836			309,678
Other consumer		2,544			2,644			3,038			4,233			6,108

Total accruing troubled debt restructured loans	$	724,407		$	687,980		$	662,660		$	679,578		$	708,558

Nonaccruing troubled debt restructured loans: (2)
Commercial and industrial	$	19,268		$	28,859		$	35,535		$	26,886		$	48,553
Commercial real estate		32,548			20,284			55,022			39,606			21,968
Automobile		7,823			11,814			—			—			—
Home equity		6,951			7,756			374			334			369
Residential mortgage		84,515			83,163			28,332			29,549			26,089
Other consumer		113			113			113			113			113

Total nonaccruing troubled debt restructured loans	$	151,218		$	151,989		$	119,376		$	96,488		$	97,092

(1)	All amounts represent accruing purchased impaired loans related to the FDIC-assisted Fidelity Bank acquisition. Under the applicable accounting guidance (ASC 310-30), the loans were recorded at fair value upon acquisition and remain in accruing status.

(2)	No loans related to the FDIC-assisted Fidelity Bank acquisition were considered troubled debt restructured loans at March 31, 2012.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Capital, and Other Data

(Unaudited)

Quarterly common stock summary


	2012												2011
(dollar amounts in thousands, except per share amounts)	Fourth			Third			Second			First			Fourth
Common stock price, per share
High⁽¹⁾	$	7.200		$	7.200		$	6.770		$	6.580		$	5.650
Low⁽¹⁾		5.900			6.160			5.840			5.490			4.670
Close		6.390			6.895			6.400			6.445			5.490
Average closing price		6.416			6.561			6.367			5.974			5.178

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

Common shares outstanding
Average - basic		847,220			857,871			862,261			864,499			864,136
Average - diluted		853,306			863,588			867,551			869,164			868,156
Ending		842,813			855,485			858,401			864,675			864,406

Book value per common share	$	6.41		$	6.34		$	6.13		$	5.97		$	5.82
Tangible book value per common share⁽²⁾		5.78			5.71			5.49			5.33			5.18

Common share repurchases
Number of shares repurchased		13,160			3,742			6,426			—			—

	2012												2011
(dollar amounts in millions)	December 31,			September 30,			June 30,			March 31,			December 31,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	5,790		$	5,808		$	5,649		$	5,550		$	5,418
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(132	)		(144	)		(159	)		(171	)		(175	)
Add: related deferred tax liability⁽²⁾		46			50			56			60			61

Total tangible equity		5,260			5,270			5,102			4,995			4,860
Less: preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)

Total tangible common equity	$	4,874		$	4,884		$	4,716		$	4,609		$	4,474

Total assets	$	56,153		$	56,443		$	56,623		$	55,877		$	54,451
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(132	)		(144	)		(159	)		(171	)		(175	)
Add: related deferred tax liability⁽²⁾		46			50			56			60			61

Total tangible assets	$	55,623		$	55,905		$	56,076		$	55,322		$	53,893

Tangible equity / tangible asset ratio		9.46	%		9.43	%		9.10	%		9.03	%		9.02	%
Tangible common equity / tangible asset ratio		8.76			8.74			8.41			8.33			8.30
Tier 1 common risk-based capital ratio:⁽⁴⁾
Tier 1 capital	$	5,741		$	5,720		$	5,714		$	5,709		$	5,557
Shareholders’ preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)
Trust preferred securities		(299	)		(335	)		(449	)		(532	)		(532	)
REIT preferred stock		(50	)		(50	)		(50	)		(50	)		(50	)

Tier 1 common	$	5,006		$	4,949		$	4,829		$	4,741		$	4,589

Total risk-weighted assets⁽⁴⁾	$	47,790		$	48,154		$	47,890		$	46,716		$	45,891

Tier 1 common risk-based capital ratio⁽⁴⁾		10.47	%		10.28	%		10.08	%		10.15	%		10.00	%
Other capital data:
Tier 1 leverage ratio⁽⁴⁾		10.34			10.29			10.34			10.55			10.28
Tier 1 risk-based capital ratio⁽⁴⁾		12.01			11.88			11.93			12.22			12.11
Total risk-based capital ratio⁽⁴⁾		14.51			14.36			14.42			14.76			14.77
Tangible common equity / risk-weighted assets ratio⁽⁴⁾		10.20			10.14			9.85			9.86			9.75

Other data:
Number of employees (full-time equivalent)		11,805			11,731			11,417			11,166			11,245
Number of domestic full-service branches⁽³⁾		705			699			682			669			668

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

⁽²⁾	Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽³⁾	Includes WGH offices.

⁽⁴⁾	December 31, 2012, figures are estimated.

Huntington Bancshares Incorporated

Consolidated Annual Average Balance Sheets

(Unaudited)


	Annual Average Balances
				Change from 2011									Change from 2010
(dollar amounts in millions)	2012			Amount			%			2011			Amount			%			2010
Assets
Interest bearing deposits in banks	$	95		$	(38	)		(29	)%	$	133		$	(156	)		(54	)%	$	289
Trading account securities		67			(40	)		(37	)		107			(51	)		(32	)		158
Federal funds sold and securities purchased under resale agreements		—			(5	)		N.R.			5			5			—			—
Loans held for sale		1,087			799			277			288			(241	)		(46	)		529
Available-for-sale and other securities:
Taxable		7,898			(473	)		(6	)		8,371			(389	)		(4	)		8,760
Tax-exempt		427			(1	)		—			428			17			4			411

Total available-for-sale and other securities		8,325			(474	)		(5	)		8,799			(372	)		(4	)		9,171
Held-to-maturity securities - taxable		925			550			147			375			375			—			—
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		15,944			2,347			17			13,597			1,166			9			12,431
Commercial real estate:
Construction		582			(10	)		(2	)		592			(504	)		(46	)		1,096
Commercial		5,198			(415	)		(7	)		5,613			(516	)		(8	)		6,129

Commercial real estate		5,780			(425	)		(7	)		6,205			(1,020	)		(14	)		7,225

Total commercial		21,724			1,922			10			19,802			146			1			19,656

Consumer:
Automobile		4,526			(1,351	)		(23	)		5,877			987			20			4,890
Home equity		8,315			375			5			7,940			350			5			7,590
Residential mortgage		5,190			473			10			4,717			241			5			4,476
Other consumer		455			(76	)		(14	)		531			(130	)		(20	)		661

Total consumer		18,486			(579	)		(3	)		19,065			1,448			8			17,617

Total loans and leases		40,210			1,343			3			38,867			1,594			4			37,273
Allowance for loan and lease losses		(876	)		233			(21	)		(1,109	)		321			(22	)		(1,430	)

Net loans and leases		39,334			1,576			4			37,758			1,915			5			35,843

Total earning assets		50,709			2,135			4			48,574			1,154			2			47,420

Cash and due from banks		1,090			(346	)		(24	)		1,436			(82	)		(5	)		1,518
Intangible assets		600			(45	)		(7	)		645			(57	)		(8	)		702
All other assets		4,151			(53	)		(1	)		4,204			(160	)		(4	)		4,364

Total assets	$	55,674		$	1,924			4	%	$	53,750		$	1,176			2	%	$	52,574

Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	12,200		$	3,547			41	%	$	8,653		$	1,794			26	%	$	6,859
Demand deposits - interest-bearing		5,811			294			5			5,517			(62	)		(1	)		5,579

Total demand deposits		18,011			3,841			27			14,170			1,732			14			12,438
Money market deposits		13,901			579			4			13,322			1,579			13			11,743
Savings and other domestic deposits		4,933			198			4			4,735			93			2			4,642
Core certificates of deposit		6,221			(1,481	)		(19	)		7,702			(1,486	)		(16	)		9,188

Total core deposits		43,066			3,137			8			39,929			1,918			5			38,011
Other domestic deposits of $250,000 or more		326			(139	)		(30	)		465			(232	)		(33	)		697
Brokered deposits and negotiable CDs		1,590			168			12			1,422			(181	)		(11	)		1,603
Deposits in foreign offices		372			(17	)		(4	)		389			(38	)		(9	)		427

Total deposits		45,354			3,149			7			42,205			1,467			4			40,738
Short-term borrowings		1,310			(745	)		(36	)		2,055			609			42			1,446
Federal Home Loan Bank advances		298			187			168			111			(62	)		(36	)		173
Subordinated notes and other long-term debt		1,976			(1,189	)		(38	)		3,165			(615	)		(16	)		3,780

Total interest-bearing liabilities		36,738			(2,145	)		(6	)		38,883			(395	)		(1	)		39,278

All other liabilities		1,065			89			9			976			20			2			956
Shareholders’ equity		5,671			433			8			5,238			(243	)		(4	)		5,481

Total liabilities and shareholders’ equity	$	55,674		$	1,924			4	%	$	53,750		$	1,176			2	%	$	52,574

N.R.—Not relevant, as numerator of calculation is zero in the current period.

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin Analysis—Interest Income / Expense (1)

(Unaudited)


	Interest Income / Expense
(dollar amounts in thousands)	2012		2011		2010
Assets
Interest bearing deposits in banks	$	202	$	143	$	804
Trading account securities		853		1,463		2,875
Federal funds sold and securities purchased under resale agreements		—		5		—
Loans held for sale		36,769		12,298		25,687
Available-for-sale and other securities:
Taxable		184,340		207,984		239,065
Tax-exempt		17,659		18,326		18,767

Total available-for-sale and other securities		201,999		226,310		257,832
Held-to-maturity securities - taxable		24,088		11,213		—
Loans and leases:
Commercial:
Commercial and industrial		639,458		585,615		660,598
Commercial real estate:
Construction		22,886		22,988		30,595
Commercial		208,552		222,692		234,858

Commercial real estate		231,438		245,680		265,453

Total commercial		870,896		831,295		926,051

Consumer:
Automobile		214,053		293,211		295,201
Home equity		355,869		355,005		383,732
Residential mortgage		212,661		213,612		216,805
Other consumer		33,279		40,586		47,481

Total consumer		815,862		902,414		943,219

Total loans and leases		1,686,758		1,733,709		1,869,270

Total earning assets	$	1,950,669	$	1,985,141	$	2,156,468

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—
Demand deposits - interest-bearing		3,579		5,096		10,393

Total demand deposits		3,579		5,096		10,393
Money market deposits		40,164		54,344		103,468
Savings and other domestic deposits		18,928		32,723		48,203
Core certificates of deposit		84,983		150,030		231,594

Total core deposits		147,654		242,193		393,658
Other domestic deposits of $250,000 or more		2,140		4,492		9,207
Brokered deposits and negotiable CDs		11,694		12,488		35,353
Deposits in foreign offices		679		878		831

Total deposits		162,167		260,051		439,049
Short-term borrowings		2,048		3,500		3,007
Federal Home Loan Bank advances		819		824		3,121
Subordinated notes and other long-term debt		54,705		76,680		81,409

Total interest-bearing liabilities		219,739		341,055		526,586

Net interest income	$	1,730,930	$	1,644,086	$	1,629,882

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

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin Analysis

(Unaudited)


	Annual Average Rates⁽²⁾
Fully-taxable equivalent basis⁽¹⁾	2012			2011			2010
Assets
Interest bearing deposits in banks		0.21	%		0.11	%		0.28	%
Trading account securities		1.27			1.37			1.82
Federal funds sold and securities purchased under resale agreements		0.29			0.09			—
Loans held for sale		3.38			4.27			4.85
Available-for-sale and other securities:
Taxable		2.33			2.48			2.73
Tax-exempt		4.14			4.28			4.56

Total available-for-sale and other securities		2.43			2.57			2.81
Held-to-maturity securities - taxable		2.60			2.99			—
Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		4.01			4.31			5.31
Commercial real estate:
Construction		3.93			3.88			2.79
Commercial		4.01			3.97			3.83

Commercial real estate		4.00			3.96			3.67

Total commercial		4.01			4.20			4.71

Consumer:
Automobile		4.73			4.99			6.04
Home equity		4.28			4.47			5.06
Residential mortgage		4.10			4.53			4.84
Other consumer		7.31			7.63			7.18

Total consumer		4.41			4.73			5.35

Total loans and leases		4.19			4.46			5.02

Total earning assets		3.85	%		4.09	%		4.55	%

Liabilities
Deposits:
Demand deposits - noninterest-bearing		—	%		—	%		—	%
Demand deposits - interest-bearing		0.06			0.09			0.19

Total demand deposit		0.02			0.04			0.08
Money market deposits		0.29			0.41			0.88
Savings and other domestic deposits		0.38			0.69			1.04
Core certificates of deposit		1.37			1.95			2.52

Total core deposits		0.48			0.77			1.26
Other domestic deposits of $250,000 or more		0.66			0.97			1.32
Brokered deposits and negotiable CDs		0.74			0.88			2.21
Deposits in foreign offices		0.18			0.23			0.20

Total deposits		0.49			0.78			1.30
Short-term borrowings		0.16			0.17			0.21
Federal Home Loan Bank advances		0.28			0.74			1.80
Subordinated notes and other long-term debt		2.77			2.42			2.15

Total interest bearing liabilities		0.60			0.88			1.34

Net interest rate spread		3.25			3.21			3.21
Impact of noninterest-bearing funds on margin		0.16			0.17			0.23

Net interest margin		3.41	%		3.38	%		3.44	%

Commercial Loan Derivative Impact

(Unaudited)


	Annual Average Rates⁽²⁾
Fully-taxable equivalent basis⁽¹⁾	2012			2011			2010
Commercial loans⁽²⁾⁽³⁾		3.67	%		3.81	%		3.85	%
Impact of commercial loan derivatives		0.34			0.39			0.86

Total commercial—as reported		4.01	%		4.20	%		4.71	%

Average 30 day LIBOR		0.24	%		0.23	%		0.27	%

⁽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 Annual Income Statement Data⁽¹⁾

(Unaudited)


	Year Ended December 31,
				Change from 2011									Change from 2010
(dollar amounts in thousands, except per share amounts)	2012			Amount			%			2011			Amount			%			2010
Interest income	$	1,930,263		$	(39,963	)		(2	)%	$	1,970,226		$	(175,166	)		(8	)%	$	2,145,392
Interest expense		219,739			(121,317	)		(36	)		341,056			(185,531	)		(35	)		526,587

Net interest income		1,710,524			81,354			5			1,629,170			10,365			1			1,618,805
Provision for credit losses		147,388			(26,671	)		(15	)		174,059			(460,488	)		(73	)		634,547

Net interest income after provision for credit losses		1,563,136			108,025			7			1,455,111			470,853			48			984,258

Service charges on deposit accounts		262,179			18,672			8			243,507			(23,508	)		(9	)		267,015
Mortgage banking income		191,092			107,684			129			83,408			(92,374	)		(53	)		175,782
Trust services		121,897			2,515			2			119,382			6,827			6			112,555
Electronic banking		82,290			(29,407	)		(26	)		111,697			1,463			1			110,234
Brokerage income		72,226			(8,141	)		(10	)		80,367			11,512			17			68,855
Insurance income		71,319			1,849			3			69,470			(6,943	)		(9	)		76,413
Gain on sale of loans		58,182			26,238			82			31,944			25,669			409			6,275
Bank owned life insurance income		56,042			(6,294	)		(10	)		62,336			1,270			2			61,066
Capital markets fees		48,160			11,620			32			36,540			12,654			53			23,886
Securities gains (losses)		4,769			8,450			(230	)		(3,681	)		(3,407	)		1,243			(274	)
Other income		129,701			(15,952	)		(11	)		145,653			5,602			4			140,051

Total noninterest income		1,097,857			117,234			12			980,623			(61,235	)		(6	)		1,041,858

Personnel costs		988,193			95,659			11			892,534			93,561			12			798,973
Outside data processing and other services		190,255			1,081			1			189,174			27,360			17			161,814
Net occupancy		111,160			2,031			2			109,129			1,267			1			107,862
Equipment		102,947			10,403			11			92,544			6,624			8			85,920
Deposit and other insurance expense		68,330			(9,362	)		(12	)		77,692			(19,856	)		(20	)		97,548
Professional services		65,758			(2,858	)		(4	)		68,616			(17,595	)		(20	)		86,211
Marketing		64,263			(1,297	)		(2	)		65,560			9,213			16			56,347
Amortization of intangibles		46,549			(6,769	)		(13	)		53,318			(7,160	)		(12	)		60,478
OREO and foreclosure expense		18,271			265			1			18,006			(21,043	)		(54	)		39,049
Gain on early extinguishment of debt		(798	)		8,899			(92	)		(9,697	)		(9,697	)		—			—
Other expense		180,948			9,324			5			171,624			(7,979	)		(4	)		179,603

Total noninterest expense		1,835,876			107,376			6			1,728,500			54,695			3			1,673,805

Income before income taxes		825,117			117,883			17			707,234			354,923			101			352,311
Provision for income taxes		184,095			19,474			12			164,621			124,657			312			39,964

Net income	$	641,022		$	98,409			18		$	542,613		$	230,266			74		$	312,347

Dividends on preferred shares		31,989			1,176			4			30,813			(141,219	)		(82	)		172,032

Net income applicable to common shares	$	609,033		$	97,233			19	%	$	511,800		$	371,485			265	%	$	140,315

Average common shares - basic		857,962			(5,729	)		(1	)%		863,691			136,757			19	%		726,934
Average common shares - diluted⁽²⁾		863,402			(4,222	)		(0	)		867,624			138,092			19			729,532

Per common share
Net income - basic	$	0.71		$	0.12			20		$	0.59		$	0.40			211		$	0.19
Net income - diluted		0.71			0.12			20			0.59			0.40			211			0.19
Cash dividends declared		0.16			0.06			60			0.10			0.06			150			0.04
Revenue - fully taxable equivalent (FTE)
Net interest income	$	1,710,524		$	81,354			5		$	1,629,170		$	10,365			1		$	1,618,805
FTE adjustment⁽³⁾		20,406			5,490			37			14,916			3,839			35			11,077

Net interest income		1,730,930			86,844			5			1,644,086			14,204			1			1,629,882
Noninterest income		1,097,857			117,234			12			980,623			(61,235	)		(6	)		1,041,858

Total revenue	$	2,828,787		$	204,078			8	%	$	2,624,709		$	(47,031	)		(2	)%	$	2,671,740

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

⁽³⁾	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

Huntington Bancshares Incorporated

Annual Mortgage Banking Income

(Unaudited)


	Year Ended December 31,
(dollar amounts in thousands, except as noted)	2012			2011			2010			2009			2008
Mortgage banking income
Origination and secondary marketing	$	146,845		$	68,217		$	117,440		$	94,711		$	37,257
Servicing fees		46,177			49,096			48,123			48,494			45,558
Amortization of capitalized servicing		(35,908	)		(37,369	)		(47,165	)		(47,571	)		(26,634	)
Other mortgage banking income		19,607			15,506			16,629			23,360			16,768

Subtotal		176,721			95,450			135,027			118,994			72,949

MSR valuation adjustment⁽¹⁾		(16,902	)		(53,897	)		(12,721	)		34,305			(52,668	)
Net trading gains (losses) related to MSR hedging		31,273			41,855			53,476			(41,001	)		(11,287	)

Total mortgage banking income	$	191,092		$	83,408		$	175,782		$	112,298		$	8,994

Mortgage originations (in millions)	$	4,833		$	3,921		$	5,476		$	5,262		$	3,773
Average trading account securities used to hedge MSRs (in millions)		3			20			64			70			1,031
Capitalized mortgage servicing rights⁽²⁾		120,747			137,435			196,194			214,592			167,438
Total mortgages serviced for others (in millions)⁽²⁾		15,623			15,886			15,933			16,010			15,754
MSR % of investor servicing portfolio		0.77	%		0.87	%		1.23	%		1.34	%		1.06	%

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	(16,902	)	$	(53,897	)	$	(12,721	)	$	34,305		$	(52,668	)
Net trading gains (losses) related to MSR hedging		31,273			41,855			53,476			(41,001	)		(11,287	)
Net interest income related to MSR hedging		(26	)		166			972			2,999			33,139

Net gain (loss) on MSR hedging	$	14,345		$	(11,876	)	$	41,727		$	(3,697	)	$	(30,816	)

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

⁽²⁾	At period end.

Huntington Bancshares Incorporated

Annual Credit Reserves Analysis

(Unaudited)


	Year Ended December 31,
(dollar amounts in thousands)	2012			2011			2010			2009			2008
Allowance for loan and lease losses, beginning of period	$	964,828		$	1,249,008		$	1,482,479		$	900,227		$	578,442
Loan and lease losses		(455,200	)		(557,753	)		(1,003,907	)		(1,561,378	)		(806,330	)
Recoveries of loans previously charged off		112,738			120,664			129,433			84,791			48,263

Net loan and lease losses		(342,462	)		(437,089	)		(874,474	)		(1,476,587	)		(758,067	)

Provision for loan and lease losses		155,193			167,730			641,299			2,069,931			1,067,789
Economic reserve transfer		—			—			—			—			12,063
Allowance of assets sold or transferred to loans held for sale		(8,484	)		(14,821	)		(296	)		(11,092	)		—

Allowance for loan and lease losses, end of period	$	769,075		$	964,828		$	1,249,008		$	1,482,479		$	900,227

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	48,456		$	42,127		$	48,879		$	44,139		$	66,528
Provision for (reduction in) unfunded loan commitments and letters of credit losses		(7,805	)		6,329			(6,752	)		4,740			(10,326	)
Economic reserve transfer		—			—			—			—			(12,063	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	40,651		$	48,456		$	42,127		$	48,879		$	44,139

Total allowance for credit losses	$	809,726		$	1,013,284		$	1,291,135		$	1,531,358		$	944,366

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.89	%		2.48	%		3.28	%		4.03	%		2.19	%
Nonaccrual loans and leases (NALs)		189			178			161			77			60
Nonperforming assets (NPAs)		173			163			148			72			55
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.99	%		2.60	%		3.39	%		4.16	%		2.30	%
Nonaccrual loans and leases (NALs)		199			187			166			80			63
Nonperforming assets (NPAs)		182			172			153			74			58

Huntington Bancshares Incorporated

Annual Net Charge-Off Analysis

(Unaudited)


	Year Ended December 31,
(dollar amounts in thousands)	2012			2011			2010			2009			2008
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	64,248		$	89,699		$	254,932		$	487,606		$	526,165
Commercial real estate:
Construction		8,041			31,524			109,008			192,706			6,626
Commercial		70,388			116,577			166,554			490,025			62,114

Commercial real estate		78,429			148,101			275,562			682,731			68,740

Total commercial		142,677			237,800			530,494			1,170,337			594,905

Consumer:
Automobile		9,442			15,067			26,572			56,332			54,565
Home equity(1)		116,379			101,797			139,373			106,176			67,556
Residential mortgage(2)		47,923			56,681			152,895			110,202			21,247
Other consumer		26,041			25,744			25,140			33,540			19,794

Total consumer		199,785			199,289			343,980			306,250			163,162

Total net charge-offs	$	342,462		$	437,089		$	874,474		$	1,476,587		$	758,067

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.40	%		0.66	%		2.05	%		3.71	%		3.87	%
Commercial real estate:
Construction		1.38			5.33			9.95			10.37			0.32
Commercial		1.35			2.08			2.72			6.71			0.81

Commercial real estate		1.36			2.39			3.81			7.46			0.71

Total commercial		0.66			1.20			2.70			5.25			2.55

Consumer:
Automobile		0.21			0.26			0.54			1.59			1.21
Home equity(1)		1.40			1.28			1.84			1.40			0.91
Residential mortgage(2)		0.92			1.20			3.42			2.43			0.42
Other consumer		5.72			4.85			3.80			4.65			2.86

Total consumer		1.08			1.05			1.95			1.87			0.92

Net charge-offs as a% of average loans		0.85	%		1.12	%		2.35	%		3.82	%		1.85	%

(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 $10,424 thousand of other Franklin-related net charge-offs.

Huntington Bancshares Incorporated

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

(Unaudited)


	December 31,
(dollar amounts in thousands)	2012			2011			2010			2009			2008
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	90,705		$	201,846		$	346,720		$	578,414		$	932,648
Commercial real estate		127,128			229,889			363,692			935,812			445,717
Automobile		7,823			—			—			—			—
Residential mortgage		122,452			68,658			45,010			362,630			98,951
Home equity		59,525			40,687			22,526			40,122			24,831

Total nonaccrual loans and leases		407,633			541,080			777,948			1,916,978			1,502,147
Other real estate, net:
Residential (1)		21,378			20,330			31,649			71,427			63,058
Commercial		6,719			18,094			35,155			68,717			59,440

Total other real estate, net		28,097			38,424			66,804			140,144			122,498
Impaired loans held for sale		—			—			—			969			12,001
Other NPAs (2)		10,045			10,772			—			—			—

Total nonperforming assets (1)	$	445,775		$	590,276		$	844,752		$	2,058,091		$	1,636,646

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

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

Nonaccrual loans and leases as a % of total loans and leases		1.00	%		1.39	%		2.04	%		5.21	%		3.66	%
NPA ratio (3)		1.09			1.51			2.21			5.57			3.97

	December 31,
(dollar amounts in thousands)	2012			2011			2010			2009			2008
Nonperforming assets, beginning of period	$	590,276		$	844,752		$	2,058,091		$	1,636,646		$	472,902
New nonperforming assets (1)		741,724	⁽⁴⁾		745,063			925,699			2,767,295			1,082,063
Franklin impact, net		—			(9,477	)		(329,023	)		(311,726	)		650,225
Returns to accruing status		(140,714	)		(195,786	)		(370,798	)		(215,336	)		(42,161	)
Loan and lease losses		(310,979	)		(362,784	)		(635,606	)		(1,148,135	)		(202,249	)
OREO losses (gains)		(398	)		771			(12,096	)		(62,665	)		(19,582	)
Payments		(302,614	)		(328,294	)		(650,429	)		(497,076	)		(194,692	)
Sales		(131,520	)		(103,969	)		(141,086	)		(110,912	)		(109,860	)

Nonperforming assets, end of period	$	445,775		$	590,276		$	844,752		$	2,058,091		$	1,636,646

(1)	Residential real estate owned properties acquired in the FDIC-assisted Fidelity Bank acquisition are reflected in the above table.

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

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

(4)	Includes $60.1 million related to Chapter 7 bankruptcy loans.

Huntington Bancshares Incorporated

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

(Unaudited)


	December 31,
(dollar amounts in thousands)	2012			2011			2010			2009			2008
Accruing loans and leases past due 90 days or more:
Commercial and industrial (1)	$	26,648		$	—		$	—		$	—		$	10,889
Commercial real estate (1)		56,660			—			—			—			59,425
Automobile		4,418			6,265			7,721			10,586			15,647
Residential mortgage (excluding loans guaranteed by the U.S. Government)		2,718			45,198			53,983			78,915			71,553
Home equity		18,200			20,198			23,497			53,343			29,039
Other consumer		1,672			1,988			2,456			2,814			2,392

Total, excl. loans guaranteed by the U.S. Government		110,316			73,649			87,657			145,658			188,945
Add: loans guaranteed by U.S. Government		90,816			96,703			98,288			101,616			82,576

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	201,132		$	170,352		$	185,945		$	247,274		$	271,521

Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.27	%		0.19	%		0.23	%		0.40	%		0.46	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.22			0.25			0.26			0.28			0.20

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.49			0.44			0.49			0.49			0.66

Accruing troubled debt restructured loans: (2)
Commercial and industrial	$	76,586		$	54,007		$	70,136		$	59,215
Commercial real estate		208,901			249,968			152,496			97,834
Automobile		35,784			36,573			29,764			24,704
Home equity		110,581			52,224			37,257			25,357
Residential mortgage		290,011			309,678			328,411			229,470
Other consumer		2,544			6,108			9,565			2,810

Total accruing troubled debt restructured loans	$	724,407		$	708,558		$	627,629		$	439,390

Nonaccruing troubled debt restructured loans: (2)
Commercial and industrial	$	19,268		$	48,553		$	15,275		$	37,849
Commercial real estate		32,548			21,968			18,187			70,609
Automobile		7,823			—			—			—
Home equity		6,951			369			—			—
Residential mortgage		84,515			26,089			5,789			4,988
Other consumer		113			113			—			—

Total nonaccruing troubled debt restructured loans	$	151,218		$	97,092		$	39,251		$	113,446

(1)	All amounts represent accruing purchased impaired loans related to the FDIC-assisted Fidelity Bank acquisition. Under the applicable accounting guidance (ASC 310-30), the loans were recorded at fair value upon acquisition and remain in accruing status.

(2)	2008 data is not available.

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports

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