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

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8-K - FORM 8-K - HUNTINGTON BANCSHARES INC /MD/	d570258d8k.htm
EX-99.1 - EX-99.1 - HUNTINGTON BANCSHARES INC /MD/	d570258dex991.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

June 2013

Table of Contents


Quarterly Key Statistics			1

Year To DateKey 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

Quarterly Mortgage Banking Income			11

Quarterly Credit Reserves Analysis			12

Quarterly Net Charge-Off Analysis			13

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			14

Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			15

Quarterly Common Stock Summary, Capital, and Other Data			16

Consolidated Year To Date Average Balance Sheets			17

Consolidated Year To Date Net Interest Margin Analysis			18-19

Selected Year To Date Income Statement Data			20

Year To Date Mortgage Banking Income			21

Year To Date Credit Reserves Analysis			22

Year To Date Net Charge-Off Analysis			23

Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			24

Year To Date Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			25

Notes:

The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) 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 and Basel III definitions, 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 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 the related press release in their entirety, and not to rely on any single financial measure.

Quarterly Key Statistics⁽¹⁾

(Unaudited)


	2013						2012			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Second			First			Second			1Q13			2Q12
Net interest income	$	424,937		$	424,170		$	428,962			—	%		(1	)%
Provision for credit losses		24,722			29,592			36,520			(16	)		(32	)
Noninterest income		248,655			252,209			253,819			(1	)		(2	)
Noninterest expense		445,865			442,793			444,269			1			—

Income before income taxes		203,005			203,994			201,992			—			1
Provision for income taxes		52,354			52,214			49,286			—			6

Net income	$	150,651		$	151,780		$	152,706			(1	)%		(1	)%

Dividends on preferred shares		7,967			7,970			7,984			—			—

Net income applicable to common shares	$	142,684		$	143,810		$	144,722			(1	)%		(1	)%

Net income per common share—diluted	$	0.17		$	0.17		$	0.17			—	%		—	%
Cash dividends declared per common share		0.05			0.04			0.04			25			25
Book value per common share at end of period		6.51			6.53			6.13			—			6
Tangible book value per common share at end of period		5.88			5.91			5.49			(1	)		7
Average common shares—basic		834,730			841,103			862,261			(1	)		(3	)
Average common shares—diluted		843,840			848,708			867,551			(1	)		(3	)
Return on average assets		1.08	%		1.10	%		1.10	%
Return on average common shareholders’ equity		10.4			10.7			11.1
Return on average tangible common shareholders’ equity⁽²⁾		12.0			12.4			13.1
Net interest margin⁽³⁾		3.38			3.42			3.42
Efficiency ratio⁽⁴⁾		64.0			63.3			62.8
Noninterest Income/Total Revenue		36.6			37.0			36.9
Effective tax rate		25.8			25.6			24.4
Average loans and leases	$	41,280,065		$	40,863,921		$	41,178,520			1			—
Average loans and leases—linked quarter annualized growth rate		4.1	%		4.6	%		20.8	%
Average earning assets	$	51,156,168		$	50,959,966		$	51,050,479			—			—
Average total assets		55,889,271			55,728,126			55,837,396			—			—
Average core deposits⁽⁵⁾		43,768,948			43,615,639			42,780,749			—			2
Average core deposits—linked quarter annualized growth rate		1.4	%		(6.3	)%		13.5	%
Average shareholders’ equity	$	5,888,206		$	5,834,190		$	5,617,615			1			5
Total assets at end of period		56,113,687			56,054,966			56,622,959			—			(1	)
Total shareholders’ equity at end of period		5,783,515			5,867,138			5,649,231			(1	)		2
Net charge-offs (NCOs)		34,790			51,687			84,245			(33	)		(59	)
NCOs as a % of average loans and leases		0.34	%		0.51	%		0.82	%
Nonaccrual loans and leases (NALs)	$	363,546		$	380,311		$	474,166			(4	)		(23	)
NAL ratio		0.87	%		0.92	%		1.19	%
Nonperforming assets (NPAs)⁽⁶⁾	$	396,699		$	415,495		$	523,250			(5	)		(24	)
NPA ratio⁽⁶⁾		0.95	%		1.01	%		1.31	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		1.76			1.81			2.15
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		1.86			1.91			2.28
ACL as a % of NALs		214			207			192
ACL as a % of NPAs		196			190			174
Tier 1 leverage ratio ⁽⁷⁾		10.64			10.57			10.34
Tier 1 common risk-based capital ratio⁽⁷⁾		10.71			10.62			10.08
Tier 1 risk-based capital ratio ⁽⁷⁾		12.24			12.16			11.93
Total risk-based capital ratio ⁽⁷⁾		14.57			14.55			14.42
Tangible common equity / tangible assets ratio⁽⁸⁾		8.78			8.92			8.41

See Notes to the Quarterly Key Statistics.

HUNTINGTON BANCSHARES INCORPORATED

Year To Date Key Statistics⁽¹⁾

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2013			2012			Amount			Percent
Net interest income	$	849,107		$	846,171		$	2,936			—	%
Provision for credit losses		54,314			70,926			(16,612	)		(23	)
Noninterest income		500,864			539,139			(38,275	)		(7	)
Noninterest expense		888,658			906,945			(18,287	)		(2	)

Income before income taxes		406,999			407,439			(440	)		—
Provision for income taxes		104,568			101,463			3,105			3

Net Income	$	302,431		$	305,976		$	(3,545	)		(1	)%

Dividends on preferred shares		15,937			16,033			(96	)		(1	)

Net income applicable to common shares	$	286,494		$	289,943		$	(3,449	)		(1	)%

Net income per common share—diluted	$	0.34		$	0.33		$	—			3	%
Cash dividends declared per common share		0.09			0.08			0.01			13
Average common shares—basic		837,917			863,380			(25,463	)		(3	)
Average common shares—diluted		846,274			868,357			(22,083	)		(3	)
Return on average assets		1.09	%		1.11	%
Return on average common shareholders’ equity		10.6			11.3
Return on average tangible common shareholders’ equity⁽²⁾		12.2			13.3
Net interest margin⁽³⁾		3.40			3.41
Efficiency ratio⁽⁴⁾		63.7			63.3
Noninterest Income/Total Revenue		36.8			38.6
Effective tax rate		25.7			24.9
Average loans and leases	$	41,073,143		$	40,161,604		$	911,539			2
Average earning assets		51,058,609			50,408,502			650,107			1
Average total assets		55,809,144			55,246,698			562,445			1
Average core deposits⁽⁵⁾		43,692,717			42,083,899			1,608,818			4
Average shareholders’ equity		5,861,347			5,554,922			306,426			6
Net charge-offs (NCOs)		86,477			167,237			(80,760	)		(48	)
NCOs as a % of average loans and leases		0.42	%		0.83	%

See Notes to the Annual and Quarterly Key Statistics.

Notes to the 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⁾	June 30, 2013, 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


	2013			2012						Percent Changes vs.
	June 30,			December 31,			June 30,			4Q12			2Q12
(dollar amounts in thousands, except number of shares)	*(Unaudited)*						(Unaudited)
Assets
Cash and due from banks	$	993,906		$	1,262,806		$	1,218,588			(21	)%		(18	)%
Federal funds sold and securities purchased under resale agreements		—			—			—
Interest-bearing deposits in banks		76,715			70,921			88,825			8			(14	)
Trading account securities		80,927			91,205			53,837			(11	)		50
Loans held for sale		458,275			764,309			2,123,371			(40	)		(78	)
Available-for-sale and other securities		6,815,658			7,566,175			8,666,778			(10	)		(21	)
Held-to-maturity securities		2,172,229			1,743,876			598,385			25			263
Loans and leases⁽¹⁾		41,739,847			40,728,425			39,959,180			2			4
Allowance for loan and lease losses		(733,076	)		(769,075	)		(859,646	)		(5	)		(15	)

Net loans and leases		41,006,771			39,959,350			39,099,534			3			5

Bank owned life insurance		1,620,604			1,596,056			1,573,891			2			3
Premises and equipment		626,745			617,257			583,057			2			7
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		113,874			132,157			159,195			(14	)		(28	)
Accrued income and other assets		1,703,715			1,904,805			2,013,230			(11	)		(15	)

Total assets	$	56,113,687		$	56,153,185		$	56,622,959			—	%		(1	)%

Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	46,331,434		$	46,252,683		$	46,076,075			—	%		1	%
Short-term borrowings		630,405			589,814			1,205,995			7			(48	)
Federal Home Loan Bank advances		983,420			1,008,959			835,653			(3	)		18
Other long-term debt		155,126			158,784			310,043			(2	)		(50	)
Subordinated notes		1,114,368			1,197,091			1,418,216			(7	)		(21	)
Accrued expenses and other liabilities		1,115,419			1,155,643			1,127,746			(3	)		(1	)

Total liabilities		50,330,172			50,362,974			50,973,728			—			(1	)

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		8,310			8,441			8,596			(2	)		(3	)
Capital surplus		7,390,041			7,475,149			7,569,481			(1	)		(2	)
Less treasury shares, at cost		(10,719	)		(10,921	)		(10,393	)		(2	)		3
Accumulated other comprehensive loss		(283,736	)		(150,817	)		(135,977	)		88			109
Retained earnings		(1,706,673	)		(1,917,933	)		(2,168,768	)		(11	)		(21	)

Total shareholders’ equity		5,783,515			5,790,211			5,649,231			—			2

Total liabilities and shareholders’ equity	$	56,113,687		$	56,153,185		$	56,622,959			—			(1	)

Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		831,030,258			844,105,349			859,597,015
Common shares outstanding		829,674,914			842,812,709			858,401,176
Treasury shares outstanding		1,355,344			1,292,640			1,195,839
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.

N.R- Not relevant, as denominator of calculation is a negative in prior period compared with a positive in current period, or as numberator of caculation is zero in the current period

Huntington Bancshares Incorporated

Loans and Leases Composition


						2013				2012
	June 30,					March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	*(Unaudited)*					*(Unaudited)*								(Unaudited)				(Unaudited)
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	17,113		41	%	$	17,267	42	%	$	16,971	42	%	$	16,478	41	%	$	16,322	41	%
Commercial real estate:
Construction		607		1			574	1			648	2			541	1			591	1
Commercial		4,286		10			4,485	11			4,751	12			4,956	12			5,317	13

Commercial real estate		4,893		11			5,059	12			5,399	14			5,497	13			5,908	14

Total commercial		22,006		52			22,326	54			22,370	56			21,975	54			22,230	55

Consumer:
Automobile		5,810		14			5,036	12			4,634	11			4,276	11			3,808	10
Home equity		8,369		20			8,474	21			8,335	20			8,381	21			8,344	21
Residential mortgage		5,168		12			5,051	12			4,970	12			5,192	13			5,123	13
Other consumer		387		2			397	1			419	1			436	1			454	1

Total consumer		19,734		48			18,958	46			18,358	44			18,285	46			17,729	45

Total loans and leases	$	41,740		100	%	$	41,284	100	%	$	40,728	100	%	$	40,260	100	%	$	39,959	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	12,642		30	%	$	12,749	31	%	$	12,644	31	%	$	12,656	31	%	$	12,714	32	%
Regional and Commercial Banking		11,119		27			11,166	27			10,679	26			10,463	26			10,420	26
AFCRE		12,119		29			11,526	28			11,396	28			11,019	27			10,892	27
WGH		5,868		14			5,767	14			5,887	15			6,053	16			5,904	15
Treasury / Other		(8	)	—			76	—			122	—			69	—			29	—

Total loans and leases	$	41,740		100	%	$	41,284	100	%	$	40,728	100	%	$	40,260	100	%	$	39,959	100	%


						2013				2012
	Second					First				Fourth				Third				Second
Average Balances by Business Segment:
Retail and Business Banking	$	12,688		31	%	$	12,693	31	%	$	12,677	31	%	$	12,703	32	%	$	12,977	32	%
Regional and Commercial Banking		11,058		27			10,987	27			10,390	26			10,427	26			10,229	25
AFCRE		11,683		28			11,454	28			11,221	28			10,949	27			11,891	29
WGH		5,837		14			5,711	14			6,054	15			5,993	15			6,007	14
Treasury / Other		14		—			19	—			55	—			48	—			75	—

Total loans and leases	$	41,280		100	%	$	40,864	100	%	$	40,397	100	%	$	40,120	100	%	$	41,179	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


	2013								2012
	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	*(Unaudited)*				(Unaudited)								(Unaudited)				(Unaudited)
Ending Balances by Type:
Demand deposits—noninterest-bearing	$	13,491	29	%	$	12,757	27	%	$	12,600	27	%	$	12,680	27	%	$	12,324	27	%
Demand deposits—interest-bearing		5,977	13			6,135	13			6,218	13			5,909	13			6,060	13
Money market deposits		15,131	33			15,165	32			14,691	32			14,926	32			13,756	30
Savings and other domestic deposits		5,054	11			5,174	11			5,002	11			4,949	11			4,961	11
Core certificates of deposit		4,353	9			5,170	11			5,516	12			5,817	12			6,508	14

Total core deposits		44,006	95			44,401	94			44,027	95			44,281	95			43,609	95
Other domestic deposits of $250,000 or more		283	1			355	1			354	1			352	1			260	1
Brokered deposits and negotiable CDs		1,695	4			1,807	4			1,594	3			1,795	4			1,888	4
Deposits in foreign offices		347	—			304	1			278	1			313	—			319	—

Total deposits	$	46,331	100	%	$	46,867	100	%	$	46,253	100	%	$	46,741	100	%	$	46,076	100	%

Total core deposits:
Commercial	$	18,922	43	%	$	18,502	42	%	$	18,358	42	%	$	19,207	43	%	$	18,324	42	%
Consumer		25,084	57			25,899	58			25,669	58			25,074	57			25,285	58

Total core deposits	$	44,006	100	%	$	44,401	100	%	$	44,027	100	%	$	44,281	100	%	$	43,609	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	28,209	61	%	$	28,719	61	%	$	28,367	61	%	$	28,220	60	%	$	28,348	62	%
Regional and Commercial Banking		5,639	12			5,627	12			5,863	13			6,205	13			5,333	12
AFCRE		1,021	2			970	2			995	2			922	2			907	2
WGH		10,069	22			10,015	22			9,508	21			9,816	22			9,782	20
Treasury / Other⁽¹⁾		1,393	3			1,536	3			1,520	3			1,578	3			1,706	4

Total deposits	$	46,331	100	%	$	46,867	100	%	$	46,253	100	%	$	46,741	100	%	$	46,076	100	%


	2013								2012
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:
Retail and Business Banking	$	28,345	61	%	$	28,331	62	%	$	28,301	61	%	$	28,248	61	%	$	28,260	63	%
Regional and Commercial Banking		5,506	12			5,668	12			6,120	13			5,715	12			4,762	11
AFCRE		954	2			922	2			949	2			942	2			855	2
WGH		9,919	22			9,623	21			9,873	21			9,735	21			9,783	21
Treasury / Other⁽¹⁾		1,463	3			1,469	3			1,524	3			1,658	4			1,197	3

Total deposits	$	46,187	100	%	$	46,013	100	%	$	46,767	100	%	$	46,298	100	%	$	44,857	100	%

⁽¹⁾	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Average Balances
	2013						2012									Percent Changes vs.
(dollar amounts in millions)	Second			First			Fourth			Third			Second			1Q13			2Q12
Assets
Interest-bearing deposits in banks	$	84		$	72		$	73		$	82		$	124			17	%		(32	)%
Loans held for sale		678			709			840			1,829			410			(4	)		65
Securities:
Available-for-sale and other securities:
Taxable		6,728			6,964			7,131			8,014			8,285			(3	)		(19	)
Tax-exempt		591			549			492			423			387			8			53

Total available-for-sale and other securities		7,319			7,513			7,623			8,437			8,672			(3	)		(16	)
Trading account securities		84			85			97			66			54			(1	)		56
Held-to-maturity securities—taxable		1,711			1,717			1,652			796			611			(0	)		180

Securities		9,114			9,315			9,372			9,299			9,337			(2	)		(2	)

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		17,033			16,954			16,507			16,343			16,094			—			6
Commercial real estate:
Construction		586			598			576			569			584			(2	)		—
Commercial		4,429			4,694			4,897			5,153			5,491			(6	)		(19	)

Commercial real estate		5,015			5,292			5,473			5,722			6,075			(5	)		(17	)

Total commercial		22,048			22,246			21,980			22,065			22,169			(1	)		(1	)

Consumer:
Automobile		5,283			4,833			4,486			4,065			4,985			9			6
Home equity		8,263			8,395			8,345			8,369			8,310			(2	)		(1	)
Residential mortgage		5,225			4,978			5,155			5,177			5,253			5			(1	)
Other consumer		461			412			431			444			462			12			(0	)

Total consumer		19,232			18,618			18,417			18,055			19,010			3			1

Total loans and leases		41,280			40,864			40,397			40,120			41,179			1			—
Allowance for loan and lease losses		(746	)		(772	)		(783	)		(855	)		(908	)		(3	)		(18	)

Net loans and leases		40,534			40,092			39,614			39,265			40,271			1			1

Total earning assets		51,156			50,960			50,682			51,330			51,050			—			—

Cash and due from banks		940			904			1,459			960			928			4			1
Intangible assets		563			571			581			597			609			(1	)		(8	)
All other assets		3,976			4,065			4,115			4,106			4,158			(2	)		(4	)

Total assets	$	55,889		$	55,728		$	56,054		$	56,138		$	55,837			—	%		—	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	12,879		$	12,165		$	13,121		$	12,329		$	12,064			6	%		7	%
Demand deposits—interest-bearing		5,927			5,977			5,843			5,814			5,939			(1	)		(0	)

Total demand deposits		18,806			18,142			18,964			18,143			18,003			4			4
Money market deposits		15,069			15,045			14,749			14,515			13,182			—			14
Savings and other domestic deposits		5,115			5,083			4,960			4,975			4,978			1			3
Core certificates of deposit		4,778			5,346			5,637			6,131			6,618			(11	)		(28	)

Total core deposits		43,768			43,616			44,310			43,764			42,781			—			2
Other domestic deposits of $250,000 or more		324			360			359			300			298			(10	)		9
Brokered deposits and negotiable CDs		1,779			1,697			1,756			1,878			1,421			5			25
Deposits in foreign offices		316			340			342			356			357			(7	)		(11	)

Total deposits		46,187			46,013			46,767			46,298			44,857			—			3
Short-term borrowings		701			762			1,012			1,329			1,391			(8	)		(50	)
Federal Home Loan Bank advances		757			686			42			107			626			10			21
Subordinated notes and other long-term debt		1,292			1,348			1,374			1,638			2,251			(4	)		(43	)

Total interest-bearing liabilities		36,058			36,644			36,074			37,043			37,061			(2	)		(3	)

All other liabilities		1,064			1,085			1,017			1,035			1,094			(2	)		(3	)
Shareholders’ equity		5,888			5,834			5,842			5,731			5,618			1			5

Total liabilities and shareholders’ equity	$	55,889		$	55,728		$	56,054		$	56,138		$	55,837			—	%		—	%

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

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

(Unaudited)


	Interest Income / Expense
	2013				2012
(dollar amounts in thousands)	Second		First		Fourth		Third		Second
Assets
Interest-bearing deposits in banks	$	57	$	29	$	51	$	42	$	97
Loans held for sale		5,739		5,702		6,675		14,548		3,541
Securities:
Available-for-sale and other securities:
Taxable		38,538		40,185		41,335		45,936		48,245
Tax-exempt		5,829		5,438		4,968		4,383		4,099

Total available-for-sale and other securities		44,367		45,623		46,303		50,319		52,344
Trading account securities		126		106		245		178		223
Held-to-maturity securities—taxable		9,778		9,838		9,244		5,591		4,539

Total securities		54,272		55,567		55,792		56,088		57,106

Loans and leases:
Commercial:
Commercial and industrial		161,543		162,396		163,644		162,998		162,419
Commercial real estate:
Construction		5,829		6,045		6,075		5,583		5,397
Commercial		46,214		46,978		52,543		50,704		54,554

Commercial real estate		52,043		53,023		58,618		56,287		59,951

Total commercial		213,586		215,419		222,262		219,285		222,370

Consumer:
Automobile		52,159		51,013		50,930		49,718		57,971
Home equity		85,796		86,991		88,541		89,388		89,358
Residential mortgage		49,912		49,353		52,440		51,981		54,326
Other consumer		7,649		7,168		7,774		7,991		8,522

Total consumer		195,516		194,525		199,685		199,078		210,177

Total loans and leases		409,102		409,944		421,947		418,363		432,547

Total earning assets	$	469,169	$	471,242	$	484,465	$	489,041	$	493,291

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits—interest-bearing		617		642		734		1,013		987

Total demand deposits		617		642		734		1,013		987
Money market deposits		8,886		8,438		9,843		12,025		9,954
Savings and other domestic deposits		3,416		3,818		4,150		4,576		4,858
Core certificates of deposit		13,410		15,710		17,144		19,237		22,682

Total core deposits		26,329		28,608		31,871		36,851		38,481
Other domestic deposits of $250,000 or more		406		465		553		511		493
Brokered deposits and negotiable CDs		2,746		2,823		3,141		3,356		2,650
Deposits in foreign offices		110		140		152		164		165

Total deposits		29,591		32,036		35,717		40,882		41,789
Short-term borrowings		179		234		363		544		558
Federal Home Loan Bank advances		272		301		129		135		333
Subordinated notes and other long-term debt		7,603		8,578		8,731		11,928		15,902

Total interest bearing liabilities		37,645		41,149		44,940		53,489		58,582

Net interest income	$	431,524	$	430,093	$	439,525	$	435,552	$	434,709

⁽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)
	2013						2012
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Assets
Interest-bearing deposits in banks		0.27	%		0.16	%		0.28	%		0.21	%		0.31	%
Loans held for sale		3.39			3.22			3.18			3.18			3.46
Securities:
Available-for-sale and other securities:
Taxable		2.29			2.31			2.32			2.29			2.33
Tax-exempt		3.94			3.96			4.03			4.15			4.23

Total available-for-sale and other securities		2.42			2.43			2.43			2.39			2.41
Trading account securities		0.60			0.50			1.01			1.07			1.64
Held-to-maturity securities—taxable		2.29			2.29			2.24			2.81			2.97

Total securities		2.38			2.39			2.38			2.41			2.45
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		3.75			3.83			3.88			3.90			3.99
Commercial real estate:
Construction		3.93			4.05			4.13			3.84			3.66
Commercial		4.13			4.00			4.20			3.85			3.93

Commercial real estate		4.09			4.01			4.19			3.85			3.89

Total commercial		3.83			3.87			3.96			3.89			3.97

Consumer:
Automobile		3.96			4.28			4.52			4.87			4.68
Home equity		4.16			4.20			4.24			4.27			4.30
Residential mortgage		3.82			3.97			4.07			4.02			4.14
Other consumer		6.66			7.05			7.16			7.16			7.42

Total consumer		4.07			4.22			4.33			4.40			4.43

Total loans and leases		3.95			4.03			4.13			4.12			4.18

Total earning assets		3.68	%		3.75	%		3.80	%		3.79	%		3.89	%

Liabilities
Deposits:
Demand deposits—noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits—interest-bearing		0.04			0.04			0.05			0.07			0.07

Total demand deposits		0.01			0.01			0.02			0.02			0.02
Money market deposits		0.24			0.23			0.27			0.33			0.30
Savings and other domestic deposits		0.27			0.30			0.33			0.37			0.39
Core certificates of deposit		1.13			1.19			1.21			1.25			1.38

Total core deposits		0.34			0.37			0.41			0.47			0.50
Other domestic deposits of $250,000 or more		0.50			0.52			0.61			0.68			0.66
Brokered deposits and negotiable CDs		0.62			0.67			0.71			0.71			0.75
Deposits in foreign offices		0.14			0.17			0.18			0.18			0.19

Total deposits		0.36			0.38			0.42			0.48			0.51
Short-term borrowings		0.10			0.12			0.14			0.16			0.16
Federal Home Loan Bank advances		0.14			0.18			1.20			0.50			0.21
Subordinated notes and other long-term debt		2.35			2.54			2.55			2.91			2.83

Total interest-bearing liabilities		0.42			0.45			0.50			0.58			0.63

Net interest rate spread		3.26			3.30			3.30			3.21			3.26
Impact of noninterest-bearing funds on margin		0.12			0.12			0.15			0.17			0.16

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

Commercial Loan Derivative Impact

(Unaudited)


	Average Rates (2)
	2013						2012
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Commercial loans⁽²⁾⁽³⁾		3.57	%		3.58	%		3.72	%		3.61	%		3.67	%
Impact of commercial loan derivatives		0.26			0.29			0.24			0.28			0.30

Total commercial—as reported		3.83	%		3.87	%		3.96	%		3.89	%		3.97	%

Average 30 day LIBOR		0.20	%		0.20	%		0.21	%		0.24	%		0.24	%

⁽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)


	2013						2012							Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Second			First			Fourth		Third		Second			1Q13			2Q12
Interest income	$	462,582		$	465,319		$	478,995	$	483,787	$	487,544			(1	)%		(6	)%
Interest expense		37,645			41,149			44,940		53,489		58,582			(9	)		(36	)

Net interest income		424,937			424,170			434,055		430,298		428,962			—			(1	)
Provision for credit losses		24,722			29,592			39,458		37,004		36,520			(16	)		(32	)

Net interest income after provision for credit losses		400,215			394,578			394,597		393,294		392,442			1			2

Service charges on deposit accounts		68,009			60,883			68,083		67,806		65,998			12			3
Mortgage banking income		33,659			45,248			61,711		44,614		38,349			(26	)		(12	)
Trust services		30,666			31,160			31,388		29,689		29,914			(2	)		3
Electronic banking		23,345			20,713			21,011		22,135		20,514			13			14
Brokerage income		19,546			17,995			17,415		16,526		19,025			9			3
Insurance income		17,187			19,252			17,268		17,792		17,384			(11	)		(1	)
Gain on sale of loans		3,348			2,616			20,690		6,591		4,131			28			(19	)
Bank owned life insurance income		15,421			13,442			13,767		14,371		13,967			15			10
Capital markets fees		12,229			7,834			12,694		11,596		13,260			56			(8	)
Securities gains (losses)		(410	)		(509	)		863		4,169		350			(19	)		(217	)
Other income		25,655			33,575			32,761		25,778		30,927			(24	)		(17	)

Total noninterest income		248,655			252,209			297,651		261,067		253,819			(1	)		(2	)

Personnel costs		263,862			258,895			253,952		247,709		243,034			2			9
Outside data processing and other services		49,898			49,265			48,699		50,396		48,568			1			3
Net occupancy		27,656			30,114			29,008		27,599		25,474			(8	)		9
Equipment		24,947			24,880			26,580		25,950		24,872			—			—
Deposit and other insurance expense		13,460			15,490			16,327		15,534		15,731			(13	)		(14	)
Professional services		9,341			7,192			22,514		17,510		15,037			30			(38	)
Marketing		14,239			10,971			16,456		16,842		17,396			30			(18	)
Amortization of intangibles		10,362			10,320			11,647		11,431		11,940			—			(13	)
OREO and foreclosure expense		(271	)		2,666			4,233		4,982		4,106			(110	)		(107	)
Loss (Gain) on early extinguishment of debt		—			—			—		1,782		(2,580	)		—			(100	)
Other expense		32,371			33,000			41,212		38,568		40,691			(2	)		(20	)

Total noninterest expense		445,865			442,793			470,628		458,303		444,269			1			—

Income before income taxes		203,005			203,994			221,620		196,058		201,992			(0	)		1
Provision for income taxes		52,354			52,214			54,341		28,291		49,286			—			6

Net income	$	150,651		$	151,780		$	167,279	$	167,767	$	152,706			(1	)%		(1	)%

Dividends on preferred shares		7,967			7,970			7,973		7,983		7,984			(0	)		(0	)

Net income applicable to common shares	$	142,684		$	143,810		$	159,306	$	159,784	$	144,722			(1	)%		(1	)%

Average common shares—basic		834,730			841,103			847,220		857,871		862,261			(1	)%		(3	)%
Average common shares—diluted		843,840			848,708			853,306		863,588		867,551			(1	)		(3	)%
Per common share
Net income—basic	$	0.17		$	0.17		$	0.19	$	0.19	$	0.17			—	%		—	%
Net income—diluted		0.17			0.17			0.19		0.19		0.17			—			—
Cash dividends declared		0.05			0.04			0.04		0.04		0.04			25			25
Revenue—fully-taxable equivalent (FTE)
Net interest income	$	424,937		$	424,170		$	434,055	$	430,298	$	428,962			—			(1	)
FTE adjustment		6,587			5,923			5,470		5,254		5,747			11			15

Net interest income⁽²⁾		431,524			430,093			439,525		435,552		434,709			—			(1	)
Noninterest income		248,655			252,209			297,651		261,067		253,819			(1	)		(2	)

Total revenue⁽²⁾	$	680,179		$	682,302		$	737,176	$	696,619	$	688,528			(0	)%		(1	)%

(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)


	2013						2012									Percent Changes vs.
(dollar amounts in thousands, except as noted)	Second			First			Fourth			Third			Second			1Q13			2Q13
Mortgage banking income
Origination and secondary marketing	$	27,915		$	27,330		$	44,497		$	40,860		$	30,184			2	%		(8	)%
Servicing fees		10,898			11,241			11,491			11,308			11,618			(3	)		(6	)
Amortization of capitalized servicing		(7,998	)		(7,903	)		(9,116	)		(8,405	)		(9,108	)		1			(12	)
Other mortgage banking income		4,471			4,654			4,828			4,999			4,814			(4	)		(7	)

Subtotal		35,286			35,322			51,700			48,762			37,508			(0	)		(6	)
MSR valuation adjustment⁽¹⁾		14,128			17,798			11,747			(19,543	)		(19,013	)		(21	)		(174	)
Net trading gains (losses) related to MSR hedging		(15,755	)		(7,872	)		(1,736	)		15,395			19,854			100			(179	)

Total mortgage banking income	$	33,659		$	45,248		$	61,711		$	44,614		$	38,349			(26	)%		(12	)%

Mortgage originations (in millions)	$	1,282		$	1,119		$	1,161		$	1,224		$	1,291			15			(1	)
Average trading account securities used to hedge MSRs (in millions)		—			—			1			4			4			—	%		(100	)%
Capitalized mortgage servicing rights⁽²⁾		155,522			139,927			120,747			108,074			128,297			11			21
Total mortgages serviced for others (in millions)⁽²⁾		15,213			15,367			15,623			15,571			15,724			(1	)		(3	)
MSR % of investor servicing portfolio⁽²⁾		1.02	%		0.91	%		0.77	%		0.69	%		0.82	%		12			2,439

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	14,128		$	17,798		$	11,747		$	(19,543	)	$	(19,013	)		(21	)%		(174	)%
Net trading gains (losses) related to MSR hedging		(15,755	)		(7,872	)		(1,736	)		15,395			19,854			100			(179	)
Net interest income (loss) related to MSR hedging		—			—			—			4			(21	)		—			N.R.

Net gain (loss) of MSR hedging	$	(1,627	)	$	9,926		$	10,011		$	(4,144	)	$	820			(116	)%		(298	)%

⁽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)


	2013						2012
(dollar amounts in thousands)	Second			First			Fourth			Third			Second
Allowance for loan and lease losses, beginning of period	$	746,769		$	769,075		$	789,142		$	859,646		$	913,069
Loan and lease losses		(63,238	)		(84,142	)		(106,962	)		(132,186	)		(108,092	)
Recoveries of loans previously charged off		28,448			32,455			36,832			27,091			23,847

Net loan and lease losses		(34,790	)		(51,687	)		(70,130	)		(105,095	)		(84,245	)

Provision for loan and lease losses		21,354			29,388			52,370			34,419			36,476
Allowance of assets sold or transferred to loans held for sale		(257	)		(7	)		(2,307	)		172			(5,654	)

Allowance for loan and lease losses, end of period	$	733,076		$	746,769		$	769,075		$	789,142		$	859,646

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	40,855		$	40,651		$	53,563		$	50,978		$	50,934
Provision for (reduction in) unfunded loan commitments and letters of credit losses		3,368			204			(12,912	)		2,585			44

Allowance for unfunded loan commitments and letters of credit, end of period	$	44,223		$	40,855		$	40,651		$	53,563		$	50,978

Total allowance for credit losses, end of period	$	777,299		$	787,624		$	809,726		$	842,705		$	910,624

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.76	%		1.81	%		1.89	%		1.96	%		2.15	%
Nonaccrual loans and leases (NALs)		202			196			189			177			181
Nonperforming assets (NPAs)		185			180			173			155			164
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.86	%		1.91	%		1.99	%		2.09	%		2.28	%
Nonaccrual loans and leases		214			207			199			189			192
Nonperforming assets		196			190			182			165			174

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	2013						2012
(dollar amounts in thousands)	Second			First			Fourth			Third			Second
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	1,586		$	3,317		$	7,052		$	13,023		$	15,678
Commercial real estate:
Construction		1,079			(798	)		11,038			(280	)		(1,531	)
Commercial		1,305			13,575			10,333			17,654			30,709

Commercial real estate		2,384			12,777			21,371			17,374			29,178

Total commercial		3,970			16,094			28,423			30,397			44,856

Consumer:
Automobile		1,463			2,594			1,896			4,019			449
Home equity		14,654			19,983			25,013			46,592			21,045
Residential mortgage		8,620			6,148			9,687			16,880			10,786
Other consumer		6,083			6,868			5,111			7,207			7,109

Total consumer		30,820			35,593			41,707			74,698			39,389

Total net charge-offs	$	34,790		$	51,687		$	70,130		$	105,095		$	84,245

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.04	%		0.08	%		0.17	%		0.32	%		0.39	%
Commercial real estate:
Construction		0.74			(0.53	)		7.67			(0.20	)		(1.05	)
Commercial		0.12			1.16			0.84			1.37			2.24

Commercial real estate		0.19			0.97			1.56			1.21			1.92

Total commercial		0.07			0.29			0.52			0.55			0.81

Consumer:
Automobile		0.11			0.21			0.17			0.40			0.04
Home equity		0.71			0.95			1.20			2.23			1.01
Residential mortgage		0.66			0.49			0.75			1.30			0.82
Other consumer		5.28			6.67			4.74			6.49			6.15

Total consumer		0.64			0.76			0.91			1.65			0.83

Net charge-offs as a % of average loans		0.34	%		0.51	%		0.69	%		1.05	%		0.82	%

Huntington Bancshares Incorporated

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

(Unaudited)


	2013						2012
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	80,037		$	80,928		$	90,705		$	109,452		$	133,678
Commercial real estate		93,643			110,803			127,128			148,986			219,417
Automobile		7,743			6,770			7,823			11,814			—
Residential mortgage		122,040			118,405			122,452			123,140			75,048
Home equity		60,083			63,405			59,525			51,654			46,023

Total nonaccrual loans and leases		363,546			380,311			407,633			445,046			474,166
Other real estate, net:
Residential		17,353			19,538			21,378			23,640			21,499
Commercial		3,713			5,601			6,719			30,566			17,109

Total other real estate, net		21,066			25,139			28,097			54,206			38,608
Other NPAs ⁽¹⁾		12,087			10,045			10,045			10,476			10,476

Total nonperforming assets⁽⁴⁾	$	396,699		$	415,495		$	445,775		$	509,728		$	523,250

Nonaccrual loans and leases as a % of total loans and leases		0.87	%		0.92	%		1.00	%		1.11	%		1.19	%
NPA ratio⁽²⁾		0.95			1.01			1.09			1.26			1.31
(NPA+90days)/(Loan+OREO)⁽³⁾		1.38			1.48			1.59			1.75			1.76

	2013						2012
	Second			First			Fourth			Third			Second
Nonperforming assets, beginning of period	$	415,495		$	445,775		$	509,728		$	523,250		$	527,077
New nonperforming assets⁽⁴⁾		101,840			115,061			175,083			210,995			221,010
Returns to accruing status		(18,915	)		(19,537	)		(23,553	)		(45,729	)		(39,376	)
Loan and lease losses		(40,546	)		(51,019	)		(82,759	)		(78,308	)		(74,546	)
OREO (losses) gains		1,874			840			283			73			(459	)
Payments		(54,242	)		(64,045	)		(81,940	)		(90,535	)		(63,530	)
Sales		(8,807	)		(11,580	)		(51,067	)		(10,018	)		(46,926	)

Nonperforming assets, end of period	$	396,699		$	415,495		$	445,775		$	509,728		$	523,250

⁽¹⁾	Other nonperforming assets includes certain impaired investment securities.

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

⁽³⁾	The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.

⁽⁴⁾	Includes $59.6 million at June 30, 2013; $59.9 million at March 31, 2013; $60.1 million at December 31, 2012; $63.0 million at September 30, 2012; 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)


	2013						2012
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	24,851		$	26,547		$	26,648		$	26,117		$	19,258
Commercial real estate		45,051			56,007			56,660			45,131			38,125
Automobile		3,392			3,531			4,418			3,857			3,338
Residential mortgage (excluding loans guaranteed by the U.S. Government)		5,217			6,187			2,718			10,687			15,457
Home equity		14,245			15,044			18,200			21,343			18,176
Other consumer		1,367			1,107			1,672			1,084			1,201

Total, excl. loans guaranteed by the U.S. Government		94,123			108,423			110,316			108,219			95,555
Add: loans guaranteed by U.S. Government		87,135			88,596			90,816			87,463			85,678

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	181,258		$	197,019		$	201,132		$	195,682		$	181,233

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.23	%		0.26	%		0.27	%		0.27	%		0.24	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.21			0.21			0.22			0.22			0.21
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.43			0.48			0.49			0.49			0.45
Accruing troubled debt restructured loans:
Commercial and industrial	$	94,583		$	90,642		$	76,586		$	55,809		$	57,008
Commercial real estate		184,372			192,167			208,901			222,155			202,190
Automobile		32,768			34,379			35,784			33,719			34,460
Home equity (1)		135,759			162,087			110,581			92,763			66,997
Residential mortgage		293,933			288,041			290,011			280,890			298,967
Other consumer		3,383			2,514			2,544			2,644			3,038

Total accruing troubled debt restructured loans	$	744,798		$	769,830		$	724,407		$	687,980		$	662,660

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	14,541		$	14,970		$	19,268		$	28,859		$	35,535
Commercial real estate		26,118			26,588			32,548			20,284			55,022
Automobile		7,743			6,770			7,823			11,814			—
Home equity		10,227			11,235			6,951			7,756			374
Residential mortgage		80,563			84,317			84,515			83,163			28,332
Other consumer		—			—			113			113			113

Total nonaccruing troubled debt restructured loans	$	139,192		$	143,880		$	151,218		$	151,989		$	119,376

(1)	The 2013 second quarter includes a $43.1 million reduction of home equity TDRs incorrectly reflected as new TDRs in the 2013 first quarter.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Capital, and Other Data

(Unaudited)

Quarterly common stock summary


	2013						2012
(dollar amounts in thousands, except per share amounts)	Second			First			Fourth			Third			Second
Common stock price, per share
High⁽¹⁾	$	7.960		$	7.550		$	7.200		$	7.200		$	6.770
Low⁽¹⁾		6.820			6.480			5.900			6.160			5.840
Close		7.870			7.370			6.390			6.895			6.400
Average closing price		7.457			7.073			6.416			6.561			6.367
Dividends, per share
Cash dividends declared per common share	$	0.05		$	0.04		$	0.04		$	0.04		$	0.04
Common shares outstanding
Average—basic		834,730			841,103			847,220			857,871			862,261
Average—diluted		843,840			848,708			853,306			863,588			867,551
Ending		829,675			838,758			842,813			855,485			858,401
Book value per common share	$	6.51		$	6.53		$	6.41		$	6.34		$	6.13
Tangible book value per common share⁽²⁾		5.88			5.91			5.78			5.71			5.49
Common share repurchases
Number of shares repurchased		9,996			4,738			13,160			3,742			6,426

	2013						2012
(dollar amounts in millions)	June 30,			March 31,			December 31,			September 30,			June 30,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	5,784		$	5,867		$	5,790		$	5,808		$	5,649
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(114	)		(124	)		(132	)		(144	)		(159	)
Add: related deferred tax liability⁽²⁾		40			43			46			50			56

Total tangible equity		5,266			5,342			5,260			5,270			5,102
Less: preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)

Total tangible common equity	$	4,880		$	4,956		$	4,874		$	4,884		$	4,716

Total assets	$	56,114		$	56,055		$	56,153		$	56,443		$	56,623
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(114	)		(124	)		(132	)		(144	)		(159	)
Add: related deferred tax liability⁽²⁾		40			43			46			50			56

Total tangible assets	$	55,596		$	55,530		$	55,623		$	55,905		$	56,076

Tangible equity / tangible asset ratio		9.47	%		9.62	%		9.46	%		9.43	%		9.10	%
Tangible common equity / tangible asset ratio		8.78			8.92			8.76			8.74			8.41
Tier 1 common risk-based capital ratio:⁽⁴⁾
Tier 1 capital	$	5,882		$	5,829		$	5,741		$	5,720		$	5,714
Shareholders’ preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)
Trust preferred securities		(299	)		(299	)		(299	)		(335	)		(449	)
REIT preferred stock		(50	)		(50	)		(50	)		(50	)		(50	)

Tier 1 common	$	5,147		$	5,094		$	5,006		$	4,949		$	4,829

Total risk-weighted assets⁽⁴⁾	$	48,077		$	47,937		$	47,773		$	48,147		$	47,890
Tier 1 common risk-based capital ratio⁽⁴⁾		10.71	%		10.62	%		10.48	%		10.28	%		10.08	%
Other capital data:
Tier 1 leverage ratio⁽⁴⁾		10.64			10.57			10.36			10.29			10.34
Tier 1 risk-based capital ratio⁽⁴⁾		12.24			12.16			12.02			11.88			11.93
Total risk-based capital ratio⁽⁴⁾		14.57			14.55			14.50			14.37			14.42
Tangible common equity / risk-weighted assets ratio⁽⁴⁾		10.15			10.34			10.20			10.14			9.85
Other data:
Number of employees (full-time equivalent)		12,155			12,052			11,806			11,731			11,417
Number of domestic full-service branches⁽³⁾		727			717			705			699			682

⁽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⁾	June 30, 2013, figures are estimated and are presented on a basel 1 basis.

Huntington Bancshares Incorporated

Consolidated Year To Date Average Balance Sheets

(Unaudited)


	YTD Average Balances
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2013			2012			Amount			Percent
Assets
Interest bearing deposits in banks	$	78		$	112		$	(34	)		(30	)%
Federal funds sold and securities purchased under resale agreements		—			—			—			—
Loans held for sale		694			837			(143	)		(17	)
Securities:
Available-for-sale and other securities:
Taxable		6,845			8,228			(1,383	)		(17	)
Tax-exempt		570			396			174			44

Total available-for-sale and other securities		7,415			8,624			(1,209	)		(14	)
Trading account securities		85			52			33			63
Held-to-maturity securities—taxable		1,714			622			1,092			176

Total Securities		9,214			9,298			(84	)		(1	)

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		16,994			15,458			1,536			10
Commercial real estate:
Construction		592			591			1			—
Commercial		4,561			5,373			(812	)		(15	)

Commercial real estate		5,153			5,964			(811	)		(14	)

Total commercial		22,147			21,422			725			3

Consumer:
Automobile		5,058			4,781			277			6
Home equity		8,277			8,272			5			—
Residential mortgage		5,102			5,214			(112	)		(2	)
Other consumer		488			473			15			3

Total consumer		18,925			18,740			185			1

Total loans and leases		41,072			40,162			910			2
Allowance for loan and lease losses		(758	)		(934	)		176			(19	)

Net loans and leases		40,314			39,228			1,086			3

Total earning assets		51,058			50,409			649			1

Cash and due from banks		922			970			(48	)		(5	)
Intangible assets		567			611			(44	)		(7	)
All other assets		4,020			4,191			(171	)		(4	)

Total assets	$	55,809		$	55,247		$	562			1	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	12,524		$	11,668		$	856			7	%
Demand deposits—interest-bearing		5,952			5,792			160			3

Total demand deposits		18,476			17,460			1,016			6
Money market deposits		15,057			13,162			1,895			14
Savings and other domestic deposits		5,099			4,898			201			4
Core certificates of deposit		5,060			6,564			(1,504	)		(23	)

Total core deposits		43,692			42,084			1,608			4
Other domestic deposits of $250,000 or more		342			323			19			6
Brokered deposits and negotiable CDs		1,738			1,361			377			28
Deposits in foreign offices		328			393			(65	)		(17	)

Total deposits		46,100			44,161			1,939			4
Short-term borrowings		732			1,451			(719	)		(50	)
Federal Home Loan Bank advances		722			523			199			38
Subordinated notes and other long-term debt		1,320			2,452			(1,132	)		(46	)

Total interest-bearing liabilities		36,350			36,919			(569	)		(2	)

All other liabilities		1,074			1,105			(31	)		(3	)
Shareholders’ equity		5,861			5,555			306			6

Total liabilities and shareholders’ equity	$	55,809		$	55,247		$	562			1	%

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

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin Analysis—Interest Income / Expense (1)

(Unaudited)


	YTD Interest Income / Expense
	Six Months Ended June 30,
(dollar amounts in thousands)	2013		2012
Assets
Interest bearing deposits in banks	$	85	$	109
Federal funds sold and securities purchased under resale agreements		—		—
Loans held for sale		11,620		15,547
Securities:
Available-for-sale and other securities:
Taxable		78,724		97,069
Tax-exempt		11,267		8,308

Total available-for-sale and other securities		89,991		105,377
Trading account securities		233		429
Held-to-maturity securities—taxable		19,616		9,252

Total Securities		109,840		115,058
Loans and leases:
Commercial:
Commercial and industrial		323,760		312,816
Commercial real estate:
Construction		11,874		11,229
Commercial		93,192		105,304

Commercial real estate		105,066		116,533

Total commercial		428,826		429,349

Consumer:
Automobile		103,173		113,406
Home equity		171,244		177,940
Residential mortgage		99,265		108,240
Other consumer		16,358		17,515

Total consumer		390,040		417,101

Total loans and leases		818,866		846,450

Total earning assets	$	940,411	$	977,164

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—
Demand deposits—interest-bearing		1,258		1,832

Total demand deposits		1,258		1,832
Money market deposits		17,323		18,297
Savings and other domestic deposits		7,234		10,204
Core certificates of deposit		29,120		48,601

Total core deposits		54,935		78,934
Other domestic deposits of $250,000 or more		871		1,076
Brokered deposits and negotiable CDs		5,569		5,198
Deposits in foreign offices		250		363

Total deposits		61,625		85,571
Short-term borrowings		413		1,141
Federal Home Loan Bank advances		574		555
Subordinated notes and other long-term debt		16,182		34,044

Total interest-bearing liabilities		78,794		121,311

Net interest income	$	861,617	$	855,853

⁽¹⁾	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 20 for the FTE adjustment.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin Analysis

(Unaudited)


	YTD Average Rates (2)
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2013			2012
Assets
Interest bearing deposits in banks		0.22	%		0.19	%
Federal funds sold and securities purchased under resale agreements		—			—
Loans held for sale		3.35			3.71
Securities:
Available-for-sale and other securities:
Taxable		2.30			2.36
Tax-exempt		3.95			4.20

Total available-for-sale and other securities		2.43			2.44
Trading account securities		0.55			1.65
Held-to-maturity securities—taxable		2.29			2.98

Total Securities		2.38			2.47

Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		3.79			4.00
Commercial real estate:
Construction		3.99			3.76
Commercial		4.06			3.88

Commercial real estate		4.06			3.87

Total commercial		3.85			3.96

Consumer:
Automobile		4.11			4.77
Home equity		4.17			4.30
Residential mortgage		3.89			4.15
Other consumer		6.76			7.44

Total consumer		4.15			4.46

Total loans and leases		3.99			4.20

Total earning assets		3.71	%		3.90	%

Liabilities
Deposits:
Demand deposits—noninterest-bearing		—	%		—	%
Demand deposits—interest-bearing		0.04			0.06

Total demand deposit		0.01			0.02
Money market deposits		0.23			0.28
Savings and other domestic deposits		0.29			0.42
Core certificates of deposit		1.16			1.49

Total core deposits		0.36			0.52
Other domestic deposits of $250,000 or more		0.51			0.67
Brokered deposits and negotiable CDs		0.65			0.77
Deposits in foreign offices		0.15			0.19

Total deposits		0.37			0.53
Short-term borrowings		0.11			0.16
Federal Home Loan Bank advances		0.16			0.21
Subordinated notes and other long-term debt		2.45			2.78

Total interest bearing liabilities		0.44			0.66

Net interest rate spread		3.28			3.24
Impact of noninterest-bearing funds on margin		0.12			0.17

Net interest margin		3.40	%		3.41	%

Commercial Loan Derivative Impact

(Unaudited)


	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2013			2012
Commercial loans⁽²⁾⁽³⁾		3.57	%		3.68	%
Impact of commercial loan derivatives		0.28			0.29

Total commercial—as reported		3.85	%		3.96	%

Average 30 day LIBOR		0.20	%		0.24	%

⁽¹⁾	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 20 for the FTE adjustment.

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

⁽³⁾	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data⁽¹⁾

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2013			2012			Amount			Percent
Interest income	$	927,901		$	967,481		$	(4,069	)		—	%
Interest expense		78,794			121,310			(42,516	)		(35	)

Net interest income		849,107			846,171			2,936			—
Provision for credit losses		54,314			70,926			(16,612	)		(23	)

Net interest income after provision for credit losses		794,793			775,245			19,548			3

Service charges on deposit accounts		128,892			126,290			2,602			2
Mortgage banking income		78,907			84,767			(5,860	)		(7	)
Trust services		61,826			60,820			1,006			2
Electronic banking		44,058			39,144			4,914			13
Brokerage income		37,541			38,285			(744	)		(2	)
Insurance income		36,439			36,259			180			—
Gain on sale of loans		5,964			30,901			(24,937	)		(81	)
Bank owned life insurance income		28,863			27,904			959			3
Capital markets fees		20,063			23,056			(2,993	)		(13	)
Securities gains (losses)		(919	)		(263	)		(656	)		249
Other income		59,230			71,976			(12,746	)		(18	)

Total noninterest income		500,864			539,139			(38,275	)		(7	)

Personnel costs		522,757			486,532			36,225			7
Outside data processing and other services		99,163			91,160			8,003			9
Net occupancy		57,770			54,553			3,217			6
Equipment		49,827			50,417			(590	)		(1	)
Deposit and other insurance expense		28,950			36,469			(7,519	)		(21	)
Professional services		16,533			25,734			(9,201	)		(36	)
Marketing		25,210			30,965			(5,755	)		(19	)
Amortization of intangibles		20,682			23,471			(2,789	)		(12	)
OREO and foreclosure expense		2,395			9,056			(6,661	)		(74	)
Gain on early extinguishment of debt		—			(2,580	)		2,580			(100	)
Other expense		65,371			101,168			(35,797	)		(35	)

Total noninterest expense		888,658			906,945			(18,287	)		(2	)

Income before income taxes		406,999			407,439			(440	)		—
Provision for income taxes		104,568			101,463			3,105			3

Net income	$	302,431		$	305,976		$	(3,545	)		(1	)%

Dividends on preferred shares		15,937			16,033			(96	)		(1	)

Net income applicable to common shares	$	286,494		$	289,943		$	(3,449	)		(1	)%

Average common shares—basic		837,917			863,380			(25,463	)		(3	)%
Average common shares—diluted		846,274			868,357			(22,083	)		(3	)
Per common share
Net income—basic	$	0.34		$	0.34		$	—			—
Net income—diluted		0.34			0.33			0.01			3
Cash dividends declared		0.09			0.08			0.01			13
Revenue—fully taxable equivalent (FTE)
Net interest income	$	849,107		$	846,171		$	2,936			—
FTE adjustment⁽²⁾		12,510			9,682			2,828			29

Net interest income		861,617			855,853			5,764			1
Noninterest income		500,864			539,139			(38,275	)		(7	)

Total revenue	$	1,362,481		$	1,394,992		$	(32,511	)		(2	)%

⁽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

Year To Date Mortgage Banking Income

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except as noted)	2013			2012			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	55,246		$	61,488		$	(6,242	)		(10	)%
Servicing fees		22,139			23,378			(1,239	)		(5	)
Amortization of capitalized servicing		(15,901	)		(18,387	)		2,486			(14	)
Other mortgage banking income		9,125			9,780			(655	)		(7	)

Subtotal		70,609			76,259			(5,650	)		(7	)
MSR valuation adjustment⁽¹⁾		31,925			(9,106	)		41,031			(451	)
Net trading gains (losses) related to MSR hedging		(23,627	)		17,614			(41,241	)		(234	)

Total mortgage banking income	$	78,907		$	84,767		$	(5,860	)		(7	)%

Mortgage originations (in millions)	$	2,401		$	2,448		$	(47	)		(2	)%
Average trading account securities used to hedge MSRs (in millions)		—			5			(5	)		(100	)
Capitalized mortgage servicing rights⁽²⁾		155,522			128,297			27,225			21
Total mortgages serviced for others (in millions)⁽²⁾		15,213			15,724			(511	)		(3	)
MSR % of investor servicing portfolio		1.02	%		0.82	%		0.20	%		24

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	31,925		$	(9,106	)	$	41,031			(451	)%
Net trading gains (losses) related to MSR hedging		(23,627	)		17,614			(41,241	)		(234	)
Net interest income related to MSR hedging		—			(30	)		30			(100	)

Net gain (loss) on MSR hedging	$	8,298		$	8,478		$	(180	)		(2	)%

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

⁽²⁾	At period end.

Huntington Bancshares Incorporated

Year To Date Credit Reserves Analysis

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2013			2012
Allowance for loan and lease losses, beginning of period	$	769,075		$	964,828
Loan and lease losses		(147,380	)		(216,052	)
Recoveries of loans previously charged off		60,903			48,815

Net loan and lease losses		(86,477	)		(167,237	)

Provision for loan and lease losses		50,742			68,404
Economic reserve transfer		—			—
Allowance of assets sold or transferred to loans held for sale		(264	)		(6,349	)

Allowance for loan and lease losses, end of period	$	733,076		$	859,646

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	40,651		$	48,456
Provision for (reduction in) unfunded loan commitments and letters of credit losses		3,572			2,522
Economic reserve transfer		—			—

Allowance for unfunded loan commitments and letters of credit, end of period	$	44,223		$	50,978

Total allowance for credit losses	$	777,299		$	910,624

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.76	%		2.15	%
Nonaccrual loans and leases (NALs)		202			181
Nonperforming assets (NPAs)		185			164
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.86	%		2.28	%
Nonaccrual loans and leases (NALs)		214			192
Nonperforming assets (NPAs)		196			174

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2013			2012
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	4,903		$	44,173
Commercial real estate:
Construction		281			(2,717	)
Commercial		14,880			42,401

Commercial real estate		15,161			39,684

Total commercial		20,064			83,857

Consumer:
Automobile		4,057			3,527
Home equity		34,637			44,774
Residential mortgage		14,768			21,356
Other consumer		12,951			13,723

Total consumer		66,413			83,380

Total net charge-offs	$	86,477		$	167,237

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.06	%		0.57	%
Commercial real estate:
Construction		0.09			(0.92	)
Commercial		0.65			1.58

Commercial real estate		0.59			1.33

Total commercial		0.18			0.78

Consumer:
Automobile		0.16			0.15
Home equity		0.84			1.08
Residential mortgage		0.58			0.82
Other consumer		5.31			5.80

Total consumer		0.70			0.89

Net charge-offs as a % of average loans		0.42	%		0.83	%

Huntington Bancshares Incorporated

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

(Unaudited)


	June 30,
(dollar amounts in thousands)	2013			2012
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	80,037		$	133,678
Commercial real estate		93,643			219,417
Automobile		7,743			—
Residential mortgage		122,040			75,048
Home equity		60,083			46,023

Total nonaccrual loans and leases		363,546			474,166
Other real estate, net:
Residential		17,353			21,499
Commercial		3,713			17,109

Total other real estate, net		21,066			38,608
Impaired loans held for sale		—			—
Other NPAs (1)		12,087			10,476

Total nonperforming assets (3)	$	396,699		$	523,250

Nonaccrual loans and leases as a % of total loans and leases		0.87	%		1.19	%
NPA ratio (2)		0.95			1.31

	Six Months Ended June 30,
(dollar amounts in thousands)	2013			2012
Nonperforming assets, beginning of period	$	445,775		$	590,276
New nonperforming assets		216,901			355,646
Franklin impact, net		—			—
Returns to accruing status		(38,452	)		(71,432	)
Loan and lease losses		(91,565	)		(149,912	)
OREO losses (gains)		2,714			(754	)
Payments		(118,287	)		(130,139	)
Sales		(20,387	)		(70,435	)

Nonperforming assets, end of period	$	396,699		$	523,250

(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.

(3)	Includes $59.6 million related to Chapter 7 bankruptcy loans in 2013.

Huntington Bancshares Incorporated

Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)


	June 30,
(dollar amounts in thousands)	2013			2012
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	24,851		$	19,258
Commercial real estate		45,051			38,125
Automobile		3,392			3,338
Residential mortgage (excluding loans guaranteed by the U.S. Government)		5,217			15,457
Home equity		14,245			18,176
Other consumer		1,367			1,201

Total, excl. loans guaranteed by the U.S. Government		94,123			95,555
Add: loans guaranteed by U.S. Government		87,135			85,678

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	181,258		$	181,233

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.23	%		0.24	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.21			0.21
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.43			0.45
Accruing troubled debt restructured loans:
Commercial and industrial	$	94,583		$	57,008
Commercial real estate		184,372			202,190
Automobile		32,768			34,460
Home equity		135,759			66,997
Residential mortgage		293,933			298,967
Other consumer		3,383			3,038

Total accruing troubled debt restructured loans	$	744,798		$	662,660

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	14,541		$	35,535
Commercial real estate		26,118			55,022
Automobile		7,743			—
Home equity		10,227			374
Residential mortgage		80,563			28,332
Other consumer		—			113

Total nonaccruing troubled debt restructured loans	$	139,192		$	119,376

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - July 18, 2013

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports