Quarterly Financial Review, June 2012.

EX-99.3 4 d381941dex993.htm QUARTERLY FINANCIAL REVIEW, JUNE 2012. Quarterly Financial Review, June 2012.

Exhibit 99.3

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Review

June 2012

Table of Contents


Quarterly Key Statistics			1

Year To Date Key Statistics			2

Key Statistics Footnotes			3

Consolidated Balance Sheets			4

Loans and Leases Composition			5

Deposits Composition			6

Consolidated Quarterly Average Balance Sheets			7

Consolidated Quarterly Net Interest Margin Analysis			8 - 9

Selected Quarterly Income Statement Data			10 - 11

Quarterly Mortgage Banking Income			12

Quarterly Credit Reserves Analysis			13

Quarterly Net Charge-Off Analysis			14

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

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

Quarterly Common Stock Summary, Capital, and Other Data			17

Consolidated Year To Date Average Balance Sheets			18

Consolidated Year To Date Net Interest Margin Analysis			19 - 20

Selected Year To Date Income Statement Data			21 - 22

Year To Date Mortgage Banking Income			23

Year To Date Credit Reserves Analysis			24

Year To Date Net Charge-Off Analysis			25

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

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

Notes:

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

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.

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Key Statistics⁽¹⁾

(Unaudited)


	2012						2011			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Second			First			Second			1Q12			2Q11
Net interest income	$	428,962		$	417,209		$	403,337			3	%		6	%
Provision for credit losses		36,520			34,406			35,797			6			2
Noninterest income		253,819			285,320			255,767			(11	)		(1	)
Noninterest expense		444,269			462,676			428,409			(4	)		4

Income before income taxes		201,992			205,447			194,898			(2	)		4
Provision for income taxes		49,286			52,177			48,980			(6	)		1

Net income	$	152,706		$	153,270		$	145,918			—	%		5	%

Dividends on preferred shares		7,984			8,049			7,704			(1	)		4

Net income applicable to common shares	$	144,722		$	145,221		$	138,214			—	%		5	%

Net income per common share—diluted	$	0.17		$	0.17		$	0.16			—	%		6	%
Cash dividends declared per common share		0.04			0.04			0.01			—			300
Book value per common share at end of period		6.13			5.97			5.66			3			8
Tangible book value per common share at end of period		5.49			5.33			5.00			3			10

Average common shares—basic		862,261			864,499			863,358			—			—
Average common shares—diluted		867,551			869,164			867,469			—			—

Return on average assets		1.10	%		1.13	%		1.11	%
Return on average common shareholders’ equity		11.1			11.4			11.6
Return on average tangible common shareholders’ equity⁽²⁾		13.1			13.5			13.3
Net interest margin⁽³⁾		3.42			3.40			3.40
Efficiency ratio⁽⁴⁾		62.8			63.8			62.7
Effective tax rate		24.4			25.4			25.1

Average loans and leases	$	41,178,520		$	39,144,688		$	38,535,019			5			7
Average loans and leases—linked quarter annualized growth rate		20.8	%		(3.8	)%		4.6	%
Average earning assets	$	51,050,479		$	49,766,526		$	48,017,199			3			6
Average total assets		55,837,396			54,656,001			52,769,511			2			6
Average core deposits⁽⁵⁾		42,780,749			41,387,049			39,106,550			3			9
Average core deposits—linked quarter annualized growth rate		13.5	%		0.3	%		(1.7	)%
Average shareholders’ equity	$	5,617,615		$	5,492,228		$	5,144,771			2			9

Total assets at end of period		56,622,959			55,876,654			53,050,039			1			7
Total shareholders’ equity at end of period		5,649,231			5,549,828			5,252,643			2			8

Net charge-offs (NCOs)		84,245			82,992			97,534			2			(14	)
NCOs as a % of average loans and leases		0.82	%		0.85	%		1.01	%
Nonaccrual loans and leases (NALs)⁽⁶⁾	$	474,166		$	467,558		$	614,225			1			23
NAL ratio⁽⁶⁾		1.19	%		1.15	%		1.57	%
Nonperforming assets (NPAs)⁽⁷⁾	$	523,250		$	527,077		$	652,937			(1	)		20
NPA ratio⁽⁷⁾		1.31	%		1.29	%		1.67	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		2.15			2.24			2.74
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		2.28			2.37			2.84
ACL as a % of NALs		192			206			181
ACL as a % of NPAs		174			183			170
Tier 1 leverage ratio ⁽⁸⁾		10.34			10.55			10.25
Tier 1 common risk-based capital ratio⁽⁸⁾		10.08			10.15			9.92
Tier 1 risk-based capital ratio ⁽⁸⁾		11.93			12.22			12.14
Total risk-based capital ratio ⁽⁸⁾		14.41			14.76			14.89
Tangible common equity / risk-weighted assets ratio⁽⁸⁾		9.84			9.86			9.79
Tangible equity / tangible assets ratio⁽⁹⁾		9.10			9.03			8.91
Tangible common equity / tangible assets ratio⁽¹⁰⁾		8.41			8.33			8.22

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

HUNTINGTON BANCSHARES INCORPORATED

Year to Date Key Statistics⁽¹⁾

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2012			2011			Amount			Percent
Net interest income	$	846,171		$	807,667		$	38,504			5	%
Provision for credit losses		70,926			85,182			(14,256	)		(17	)
Noninterest income		539,139			492,712			46,427			9
Noninterest expense		906,945			859,108			47,837			6

Income before income taxes		407,439			356,089			51,350			14
Provision for income taxes		101,463			83,725			17,738			21

Net Income	$	305,976		$	272,364		$	33,612			12	%

Dividends on preferred shares		16,033			15,407			626			4

Net income applicable to common shares	$	289,943		$	256,957		$	32,986			13	%

Net income per common share—diluted	$	0.33		$	0.30		$	0.03			10	%
Cash dividends declared per common share		0.08			0.02			0.06			300

Average common shares—basic		863,380			863,358			22			—
Average common shares—diluted		868,357			867,353			1,004			—

Return on average assets		1.11	%		1.03	%
Return on average common shareholders’ equity		11.3			11.0
Return on average tangible common shareholders’ equity⁽²⁾		13.3			13.4
Net interest margin⁽³⁾		3.41			3.41
Efficiency ratio⁽⁴⁾		63.3			63.7
Effective tax rate		24.9			23.5

Average loans and leases	$	40,161,604		$	38,317,324		$	1,844,280			5
Average earning assets		50,408,502			48,180,174			2,228,329			5
Average total assets		55,246,698			53,067,377			2,179,321			4
Average core deposits⁽⁵⁾		42,083,899			39,189,945			2,893,953			7
Average shareholders’ equity		5,554,922			5,083,797			471,124			9

Net charge-offs (NCOs)		167,237			262,617			(95,380	)		(36	)
NCOs as a % of average loans and leases		0.83	%		1.37	%

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

Notes to the Year to Date and Quarterly Key Statistics

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

⁽²⁾

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⁾	All loans acquired as part of the FDIC-assisted Fidelity Bank acquisition accrue interest as performing loans or as purchased impaired loans under ASC 310-30, therefore none of the acquired loans were reported as nonaccrual at June 30, 2012 or March 31, 2012.

⁽⁷⁾	NPAs include residential real estate owned acquired as part of the FDIC-assisted Fidelity Bank acquisition.

⁽⁸⁾	June 30, 2012, figures are estimated.

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

⁽¹⁰⁾	Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

Huntington Bancshares Incorporated

Consolidated Balance Sheets


										Change
	2012			2011						June ‘12 vs ‘11
(dollar amounts in thousands, except number of shares)	June 30,			December 31,			June 30,			Amount			Percent
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	1,218,588		$	1,115,968		$	983,882		$	234,706			24	%
Interest-bearing deposits in banks		88,825			90,943			116,698			(27,873	)		(24	)
Trading account securities		53,837			45,899			98,771			(44,934	)		(45	)
Loans held for sale		2,123,371			1,618,391			224,860			1,898,511			844
Available-for-sale and other securities		8,666,778			8,078,014			8,099,716			567,062			7
Held-to-maturity securities		598,385			640,551			670,478			(72,093	)		(11	)
Loans and leases⁽¹⁾		39,959,180			38,923,783			39,126,452			832,728			2
Allowance for loan and lease losses		(859,646	)		(964,828	)		(1,071,126	)		211,480			(20	)

Net loans and leases		39,099,534			37,958,955			38,055,326			1,044,208			3

Bank owned life insurance		1,573,891			1,549,783			1,523,440			50,451			3
Premises and equipment		583,057			564,429			528,590			54,467			10
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		159,195			175,302			201,864			(42,669	)		(21	)
Accrued income and other assets		2,013,230			2,168,149			2,102,146			(88,916	)		(4	)

Total assets	$	56,622,959		$	54,450,652		$	53,050,039		$	3,572,920			7	%

Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	46,076,075		$	43,279,625		$	41,402,355		$	4,673,720			11	%
Short-term borrowings		1,205,995			1,441,092			2,022,946			(816,951	)		(40	)
Federal Home Loan Bank advances		835,653			362,972			220,224			615,429			279
Other long-term debt		310,043			1,231,517			1,635,247			(1,325,204	)		(81	)
Subordinated notes		1,418,216			1,503,368			1,496,461			(78,245	)		(5	)
Accrued expenses and other liabilities		1,127,746			1,213,978			1,020,163			107,583			11

Total liabilities		50,973,728			49,032,552			47,797,396			3,176,332			7

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		8,596			8,656			8,643			(47	)		(1	)
Capital surplus		7,569,481			7,596,809			7,588,248			(18,767	)		—
Less treasury shares, at cost		(10,393	)		(10,255	)		(9,357	)		(1,036	)		11
Accumulated other comprehensive loss		(135,977	)		(173,763	)		(122,543	)
Retained earnings		(2,168,768	)		(2,389,639	)		(2,574,855	)		406,087			(16	)

Total shareholders’ equity		5,649,231			5,418,100			5,252,643			396,588			8

Total liabilities and shareholders’ equity	$	56,622,959		$	54,450,652		$	53,050,039		$	3,572,920			7	%

Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			600,000,000
Common shares issued		859,597,015			865,584,517			864,310,281
Common shares outstanding		858,401,176			864,406,152			863,323,099
Treasury shares outstanding		1,195,839			1,178,365			987,182
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		398,007			398,007			362,507

⁽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)	June 30,				March 31,				December 31,				September 30,				June 30,
	(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	16,322	41	%	$	15,838	39	%	$	14,699	38	%	$	13,939	36	%	$	13,544	35	%
Commercial real estate:
Construction		591	1			597	1			580	1			520	1			591	2
Commercial		5,317	13			5,443	13			5,246	13			5,414	14			5,573	14

Commercial real estate		5,908	14			6,040	14			5,826	14			5,934	15			6,164	16

Total commercial		22,230	55			21,878	53			20,525	52			19,873	51			19,708	51

Consumer:
Automobile		3,808	10			4,787	12			4,458	11			5,558	14			6,190	16
Home equity		8,344	21			8,261	20			8,215	21			8,079	21			7,952	20
Residential mortgage		5,123	13			5,284	13			5,228	13			4,986	13			4,751	12
Other consumer		454	1			469	2			498	3			516	1			525	1

Total consumer		17,729	45			18,801	47			18,399	48			19,139	49			19,418	49

Total loans and leases	$	39,959	100	%	$	40,679	100	%	$	38,924	100	%	$	39,012	100	%	$	39,126	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	12,714	32	%	$	12,432	31	%	$	12,361	32	%	$	12,183	31	%	$	12,019	31	%
Regional and Commercial Banking		10,420	26			9,936	24			9,134	23			8,723	22			8,291	21
AFCRE		10,892	27			11,698	29			11,375	29			12,318	32			13,273	34
WGH		5,904	15			5,968	14			5,952	16			5,713	15			5,493	14
Treasury / Other		29	—			645	2			102	—			75	—			50	—

Total loans and leases	$	39,959	100	%	$	40,679	100	%	$	38,924	100	%	$	39,012	100	%	$	39,126	100	%


	2012								2011
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:
Retail and Business Banking	$	12,977	32	%	$	12,420	32	%	$	12,302	31	%	$	12,126	31	%	$	11,948	31	%
Regional and Commercial Banking		10,229	25			9,250	24			8,902	23			8,495	22			8,069	21
AFCRE		11,891	29			11,468	29			12,496	32			13,101	33			13,145	34
WGH		6,007	14			5,920	15			5,731	14			5,522	14			5,297	14
Treasury / Other		75	—			87	—			87	—			53	—			76	—

Total loans and leases	$	41,179	100	%	$	39,145	100	%	$	39,518	100	%	$	39,297	100	%	$	38,535	100	%

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

Huntington Bancshares Incorporated

Deposits Composition


	2012								2011
(dollar amounts in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
	(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Ending Balances by Type:
Demand deposits — noninterest-bearing	$	12,324	27	%	$	11,797	26	%	$	11,158	26	%	$	9,502	22	%	$	8,210	20	%
Demand deposits — interest-bearing		6,060	13			6,126	14			5,722	13			5,763	13			5,642	14
Money market deposits		13,756	30			13,169	29			13,117	30			13,759	32			12,643	31
Savings and other domestic deposits		4,961	11			4,954	11			4,698	11			4,711	11			4,752	11
Core certificates of deposit		6,508	14			6,920	15			6,513	15			7,084	16			7,936	19

Total core deposits		43,609	95			42,966	95			41,208	95			40,819	94			39,183	95
Other domestic deposits of $250,000 or more		260	1			325	1			390	1			421	1			436	1
Brokered deposits and negotiable CDs		1,888	4			1,276	3			1,321	3			1,535	4			1,486	4
Deposits in foreign offices		319	—			442	1			361	1			445	1			297	—

Total deposits	$	46,076	100	%	$	45,009	100	%	$	43,280	100	%	$	43,220	100	%	$	41,402	100	%

Total core deposits:
Commercial	$	18,324	42	%	$	17,101	40	%	$	16,366	40	%	$	15,526	38	%	$	13,541	35	%
Consumer		25,285	58			25,865	60			24,842	60			25,293	62			25,642	65

Total core deposits	$	43,609	100	%	$	42,966	100	%	$	41,208	100	%	$	40,819	100	%	$	39,183	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	28,348	62	%	$	27,935	62	%	$	27,536	64	%	$	28,095	65	%	$	28,325	68	%
Regional and Commercial Banking		5,333	12			4,748	11			4,683	11			4,173	10			3,539	9
AFCRE		907	2			914	2			881	2			817	2			819	2
WGH		9,782	20			9,632	21			9,115	21			9,013	21			7,708	19
Treasury / Other⁽¹⁾		1,706	4			1,780	4			1,065	2			1,122	2			1,011	2

Total deposits	$	46,076	100	%	$	45,009	100	%	$	43,280	100	%	$	43,220	100	%	$	41,402	100	%


	2012								2011
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:
Retail and Business Banking	$	28,260	63	%	$	27,452	63	%	$	27,835	64	%	$	28,290	67	%	$	28,780	70	%
Regional and Commercial Banking		4,762	11			4,680	11			4,467	10			3,902	9			3,484	8
AFCRE		855	2			811	2			802	2			796	2			784	2
WGH		9,783	21			9,450	22			9,406	21			8,243	20			7,467	18
Treasury / Other⁽¹⁾		1,197	3			1,072	2			1,093	3			1,047	2			739	2

Total deposits	$	44,857	100	%	$	43,465	100	%	$	43,603	100	%	$	42,278	100	%	$	41,254	100	%

⁽¹⁾	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Average Balances															Change
	2012						2011									2Q12 vs 2Q11
(dollar amounts in millions)	Second			First			Fourth			Third			Second			Amount			Percent
Assets
Interest-bearing deposits in banks	$	124		$	100		$	107		$	164		$	131		$	(7	)		(5	)%
Trading account securities		54			50			81			92			112			(58	)		(52	)
Federal funds sold and securities purchased under resale agreements		—			—			—			—			21			(21	)		(100	)
Loans held for sale		410			1,265			316			237			181			229			127
Available-for-sale and other securities:
Taxable		8,285			8,171			8,065			7,902			8,428			(143	)		(2	)
Tax-exempt		387			404			409			421			436			(49	)		(11	)

Total available-for-sale and other securities		8,672			8,575			8,474			8,323			8,864			(192	)		(2	)
Held-to-maturity securities — taxable		611			632			650			665			174			437			251
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		16,094			14,824			14,219			13,664			13,370			2,724			20
Commercial real estate:
Construction		584			598			533			670			554			30			5
Commercial		5,491			5,254			5,425			5,441			5,679			(188	)		(3	)

Commercial real estate		6,075			5,852			5,958			6,111			6,233			(158	)		(3	)

Total commercial		22,169			20,676			20,177			19,775			19,603			2,566			13

Consumer:
Automobile		4,985			4,576			5,639			6,211			5,954			(969	)		(16	)
Home equity		8,310			8,234			8,149			8,002			7,874			436			6
Residential mortgage		5,253			5,174			5,043			4,788			4,566			687			15
Other consumer		462			485			511			521			538			(76	)		(14	)

Total consumer		19,010			18,469			19,342			19,522			18,932			78			—

Total loans and leases		41,179			39,145			39,519			39,297			38,535			2,644			7
Allowance for loan and lease losses		(908	)		(961	)		(1,014	)		(1,066	)		(1,128	)		220			(20	)

Net loans and leases		40,271			38,184			38,505			38,231			37,407			2,864			8

Total earning assets		51,050			49,767			49,147			48,778			48,018			3,032			6

Cash and due from banks		928			1,012			1,671			1,700			1,068			(140	)		(13	)
Intangible assets		609			613			625			639			652			(43	)		(7	)
All other assets		4,158			4,225			4,221			4,142			4,160			(2	)		(0	)

Total assets	$	55,837		$	54,656		$	54,650		$	54,193		$	52,770		$	3,067			6	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits — noninterest-bearing	$	12,064		$	11,273		$	10,716		$	8,719		$	7,806		$	4,258			55	%
Demand deposits — interest-bearing		5,939			5,646			5,570			5,573			5,565			374			7
Money market deposits		13,182			13,141			13,594			13,321			12,879			303			2
Savings and other domestic deposits		4,978			4,817			4,706			4,752			4,778			200			4
Core certificates of deposit		6,618			6,510			6,769			7,592			8,079			(1,461	)		(18	)

Total core deposits		42,781			41,387			41,355			39,957			39,107			3,674			9
Other domestic deposits of $250,000 or more		298			347			405			387			467			(169	)		(36	)
Brokered deposits and negotiable CDs		1,421			1,301			1,410			1,533			1,333			88			7
Deposits in foreign offices		357			430			434			401			347			10			3

Total deposits		44,857			43,465			43,604			42,278			41,254			3,603			9
Short-term borrowings		1,391			1,512			1,728			2,251			2,112			(721	)		(34	)
Federal Home Loan Bank advances		626			419			29			285			97			529			545
Subordinated notes and other long-term debt		2,251			2,652			2,866			3,030			3,249			(998	)		(31	)

Total interest-bearing liabilities		37,061			36,775			37,511			39,125			38,906			(1,845	)		(5	)

All other liabilities		1,094			1,116			978			1,017			913			181			20
Shareholders’ equity		5,618			5,492			5,445			5,332			5,145			473			9

Total liabilities and shareholders’ equity	$	55,837		$	54,656		$	54,650		$	54,193		$	52,770		$	3,067			6	%

⁽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)	Second		First		Fourth		Third		Second
Assets
Interest-bearing deposits in banks	$	97	$	12	$	15	$	17	$	73
Trading account securities		223		207		197		325		447
Federal funds sold and securities purchased under resale agreements		—		—		—		—		5
Loans held for sale		3,541		12,005		3,124		2,643		2,247
Available-for-sale and other securities:
Taxable		48,245		48,824		47,784		47,946		54,603
Tax-exempt		4,099		4,209		4,313		4,392		4,385

Total available-for-sale and other securities		52,344		53,033		52,097		52,338		58,988
Held-to-maturity securities — taxable		4,539		4,714		4,867		5,059		1,287
Loans and leases:
Commercial:
Commercial and industrial		162,419		150,397		145,825		144,151		145,675
Commercial real estate:
Construction		5,397		5,831		6,513		6,620		4,718
Commercial		54,554		50,750		54,220		54,429		55,947

Commercial real estate		59,951		56,581		60,733		61,049		60,665

Total commercial		222,370		206,978		206,558		205,200		206,340

Consumer:
Automobile		57,971		55,435		68,283		76,488		75,110
Home equity		89,358		88,582		89,876		89,112		88,358
Residential mortgage		54,326		53,914		54,263		53,521		52,700
Other consumer		8,522		8,992		9,416		9,951		10,416

Total consumer		210,177		206,923		221,838		229,072		226,584

Total loans and leases		432,547		413,901		428,396		434,272		432,924

Total earning assets	$	493,291	$	483,872	$	488,696	$	494,654	$	495,971

Liabilities
Deposits:
Demand deposits — noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits — interest-bearing		987		845		1,182		1,458		1,240
Money market deposits		9,954		8,343		10,994		13,845		12,807
Savings and other domestic deposits		4,858		5,345		6,213		8,231		8,870
Core certificates of deposit		22,682		25,919		28,851		37,323		41,041

Total core deposits		38,481		40,452		47,240		60,857		63,958
Other domestic deposits of $250,000 or more		493		583		794		907		1,171
Brokered deposits and negotiable CDs		2,650		2,547		2,727		2,963		2,948
Deposits in foreign offices		165		197		206		258		227

Total deposits		41,789		43,779		50,967		64,985		68,304
Short-term borrowings		558		583		764		931		856
Federal Home Loan Bank advances		333		222		156		233		215
Subordinated notes and other long-term debt		15,902		18,144		18,305		18,369		19,425

Total interest bearing liabilities		58,582		62,728		70,192		84,518		88,800

Net interest income	$	434,709	$	421,144	$	418,504	$	410,136	$	407,171

⁽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⁾	Second			First			Fourth			Third			Second
Assets
Interest-bearing deposits in banks		0.31	%		0.05	%		0.06	%		0.04	%		0.22	%
Trading account securities		1.64			1.65			0.97			1.41			1.59
Federal funds sold and securities purchased under resale agreements		—			—			—			—			0.09
Loans held for sale		3.46			3.80			3.96			4.46			4.97
Available-for-sale and other securities:
Taxable		2.33			2.39			2.37			2.43			2.59
Tax-exempt		4.23			4.17			4.22			4.17			4.02

Total available-for-sale and other securities		2.41			2.47			2.46			2.52			2.66
Held-to-maturity securities — taxable		2.97			2.98			2.99			3.04			2.96
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		3.99			4.01			4.01			4.13			4.31
Commercial real estate:
Construction		3.66			3.85			4.78			3.87			3.37
Commercial		3.93			3.82			3.91			3.91			3.90

Commercial real estate		3.89			3.82			3.99			3.91			3.84

Total commercial		3.97			3.96			4.01			4.06			4.16

Consumer:
Automobile		4.68			4.87			4.80			4.89			5.06
Home equity		4.30			4.30			4.41			4.45			4.49
Residential mortgage		4.14			4.17			4.30			4.47			4.62
Other consumer		7.42			7.47			7.32			7.57			7.76

Total consumer		4.43			4.49			4.57			4.68			4.79

Total loans and leases		4.18			4.21			4.28			4.37			4.47

Total earning assets		3.89	%		3.91	%		3.95	%		4.02	%		4.14	%

Liabilities
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits — interest-bearing		0.07			0.06			0.08			0.10			0.09
Money market deposits		0.30			0.26			0.32			0.41			0.40
Savings and other domestic deposits		0.39			0.45			0.52			0.69			0.74
Core certificates of deposit		1.38			1.60			1.69			1.95			2.04

Total core deposits		0.50			0.54			0.61			0.77			0.82
Other domestic deposits of $250,000 or more		0.66			0.68			0.78			0.93			1.01
Brokered deposits and negotiable CDs		0.75			0.79			0.77			0.77			0.89
Deposits in foreign offices		0.19			0.18			0.19			0.26			0.26

Total deposits		0.51			0.55			0.61			0.77			0.82
Short-term borrowings		0.16			0.16			0.18			0.16			0.16
Federal Home Loan Bank advances		0.21			0.21			2.09			0.32			0.88
Subordinated notes and other long-term debt		2.83			2.74			2.56			2.43			2.39

Total interest-bearing liabilities		0.63			0.68			0.74			0.86			0.91

Net interest rate spread		3.18			3.15			3.15			3.11			3.19
Impact of noninterest-bearing funds on margin		0.25			0.25			0.23			0.22			0.21

Net interest margin		3.42	%		3.40	%		3.38	%		3.34	%		3.40	%


Commercial Loan Derivative Impact
(Unaudited)

	Average Rates (2)
	2012						2011
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Commercial loans⁽²⁾⁽³⁾		3.67	%		3.69	%		3.79	%		3.79	%		3.83	%
Impact of commercial loan derivatives		0.30			0.27			0.22			0.27			0.34

Total commercial — as reported		3.97	%		3.96	%		4.01	%		4.06	%		4.16	%

Average 30 day LIBOR		0.24	%		0.26	%		0.26	%		0.21	%		0.20	%

⁽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									2Q12 vs 2Q11
(dollar amounts in thousands, except per share amounts)	Second			First			Fourth			Third			Second			Amount			Percent
Interest income	$	487,544		$	479,937		$	485,216		$	490,996		$	492,137		$	(7,844	)		(2	)%
Interest expense		58,582			62,728			70,191			84,518			88,800			(30,218	)		(34	)

Net interest income		428,962			417,209			415,025			406,478			403,337			25,625			6
Provision for credit losses		36,520			34,406			45,291			43,586			35,797			723			2

Net interest income after provision for credit losses		392,442			382,803			369,734			362,892			367,540			24,902			7

Service charges on deposit accounts		65,998			60,292			63,324			65,184			60,675			5,323			9
Trust services		29,914			30,906			28,775			29,473			30,392			(478	)		(2	)
Electronic banking		20,514			18,630			18,282			32,901			31,728			(11,214	)		(35	)
Mortgage banking income		38,349			46,418			24,098			12,791			23,835			14,514			61
Brokerage income		19,025			19,260			18,688			20,349			20,819			(1,794	)		(9	)
Insurance income		17,384			18,875			17,906			17,220			16,399			985			6
Bank owned life insurance income		13,967			13,937			14,271			15,644			17,602			(3,635	)		(21	)
Capital markets fees		13,455			9,982			9,811			11,256			8,537			4,918			58
Gain on sale of loans		4,131			26,770			2,884			19,097			2,756			1,375			50
Automobile operating lease income		2,877			3,775			4,727			5,890			7,307			(4,430	)		(61	)
Securities gains (losses)		350			(613	)		(3,878	)		(1,350	)		1,507			(1,157	)		(77	)
Other income		27,855			37,088			30,464			30,104			34,210			(6,355	)		(19	)

Total noninterest income		253,819			285,320			229,352			258,559			255,767			(1,948	)		(1	)

Personnel costs		243,034			243,498			228,101			226,835			218,570			24,464			11
Outside data processing and other services		48,149			42,058			53,422			49,602			43,889			4,260			10
Net occupancy		25,474			29,079			26,841			26,967			26,885			(1,411	)		(5	)
Equipment		24,872			25,545			25,884			22,262			21,921			2,951			13
Deposit and other insurance expense		15,731			20,738			18,481			17,492			23,823			(8,092	)		(34	)
Marketing		21,365			16,776			16,379			22,251			20,102			1,263			6
Professional services		15,458			11,230			16,769			20,281			20,080			(4,622	)		(23	)
Amortization of intangibles		11,940			11,531			13,175			13,387			13,386			(1,446	)		(11	)
Automobile operating lease expense		2,183			2,854			3,362			4,386			5,434			(3,251	)		(60	)
OREO and foreclosure expense		4,106			4,950			5,009			4,668			4,398			(292	)		(7	)
Gain on early extinguishment of debt		(2,580	)		—			(9,697	)		—			—			(2,580	)		—
Other expense		34,537			54,417			32,548			30,987			29,921			4,616			15

Total noninterest expense		444,269			462,676			430,274			439,118			428,409			15,860			4

Income before income taxes		201,992			205,447			168,812			182,333			194,898			7,094			4
Provision for income taxes		49,286			52,177			41,954			38,942			48,980			306			1

Net income	$	152,706		$	153,270		$	126,858		$	143,391		$	145,918		$	6,788			5	%

Dividends on preferred shares		7,984			8,049			7,703			7,703			7,704			280			4

Net income applicable to common shares	$	144,722		$	145,221		$	119,155		$	135,688		$	138,214		$	6,508			5	%

Average common shares — basic		862,261			864,499			864,136			863,911			863,358			(1,097	)		—	%
Average common shares — diluted		867,551			869,164			868,156			867,633			867,469			82			—	%

Per common share
Net income — basic	$	0.17		$	0.17		$	0.14		$	0.16		$	0.16		$	0.01			6	%
Net income — diluted		0.17			0.17			0.14			0.16			0.16			0.01			6
Cash dividends declared		0.04			0.04			0.04			0.04			0.01			0.03			300

Return on average total assets		1.10	%		1.13	%		0.92	%		1.05	%		1.11	%		(0.01	)%		(1	)
Return on average common shareholders’ equity		11.1			11.4			9.3			10.8			11.6			(0.5	)		(4	)
Return on average tangible common shareholders’ equity⁽²⁾		13.1			13.5			11.2			13.0			13.3			(0.2	)		(2	)
Net interest margin⁽³⁾		3.42			3.40			3.38			3.34			3.40			0.02			1
Efficiency ratio⁽⁴⁾		62.8			63.8			64.0			63.5			62.7			0.1			—
Effective tax rate		24.4			25.4			24.9			21.4			25.1			(0.7	)		(3	)

Revenue — fully-taxable equivalent (FTE)
Net interest income	$	428,962		$	417,209		$	415,025		$	406,478		$	403,337		$	25,625			6
FTE adjustment		5,747			3,935			3,479			3,658			3,834			1,913			50

Net interest income⁽³⁾		434,709			421,144			418,504			410,136			407,171			27,538			7
Noninterest income		253,819			285,320			229,352			258,559			255,767			(1,948	)		(1	)

Total revenue⁽³⁾	$	688,528		$	706,464		$	647,856		$	668,695		$	662,938		$	25,590			4	%

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

⁽²⁾

⁽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).

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Income

(Unaudited)


	2012						2011									2Q12 vs 2Q11
(dollar amounts in thousands, except as noted)	Second			First			Fourth			Third			Second			Amount			Percent
Mortgage banking income

Origination and secondary marketing	$	30,184		$	31,304		$	21,248		$	15,648		$	11,522		$	18,662			162	%
Servicing fees		11,618			11,760			11,993			12,140			12,417			(799	)		(6	)
Amortization of capitalized servicing		(9,108	)		(9,279	)		(8,813	)		(9,641	)		(9,052	)		(56	)		1
Other mortgage banking income		4,814			4,966			3,652			3,826			4,259			555			13

Subtotal		37,508			38,751			28,080			21,973			19,146			18,362			96

MSR valuation adjustment⁽¹⁾		(19,013	)		9,907			(6,985	)		(39,394	)		(8,292	)		(10,721	)		129
Net trading gains (losses) related to MSR hedging		19,854			(2,240	)		3,003			30,212			12,981			6,873			53

Total mortgage banking income	$	38,349		$	46,418		$	24,098		$	12,791		$	23,835		$	14,514			61	%

Mortgage originations (in millions)	$	1,291		$	1,157		$	1,123		$	953		$	916		$	375			41
Average trading account securities used to hedge MSRs (in millions)		4			5			6			7			22			(18	)		(82	)%
Capitalized mortgage servicing rights⁽²⁾		128,297			148,349			137,435			145,277			189,740			(61,443	)		(32	)
Total mortgages serviced for others (in millions)⁽²⁾		15,724			15,902			15,886			16,061			16,315			(591	)		(4	)
MSR % of investor servicing portfolio⁽²⁾		0.82	%		0.93	%		0.87	%		0.90	%		1.16	%		(0.34	)%		(2,931	)

Net impact of MSR hedging

MSR valuation adjustment⁽¹⁾	$	(19,013	)	$	9,907		$	(6,985	)	$	(39,394	)	$	(8,292	)	$	(10,721	)		129	%
Net trading gains (losses) related to MSR hedging		19,854			(2,240	)		3,003			30,212			12,981			6,873			53
Net interest income (loss) related to MSR hedging		(21	)		(9	)		(34	)		17			84			(105	)		N.R.

Net gain (loss) of MSR hedging	$	820		$	7,658		$	(4,016	)	$	(9,165	)	$	4,773		$	(3,953	)		(83	)%

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

⁽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)


	2012						2011
(dollar amounts in thousands)	Second			First			Fourth			Third			Second
Allowance for loan and lease losses, beginning of period	$	913,069		$	964,828		$	1,019,710		$	1,071,126		$	1,133,226

Loan and lease losses		(108,092	)		(107,960	)		(114,146	)		(115,899	)		(128,701	)
Recoveries of loans previously charged off		23,847			24,968			30,229			25,344			31,167

Net loan and lease losses		(84,245	)		(82,992	)		(83,917	)		(90,555	)		(97,534	)

Provision for loan and lease losses		36,476			31,928			35,614			45,867			36,948
Allowance of assets sold or transferred to loans held for sale		(5,654	)		(695	)		(6,579	)		(6,728	)		(1,514	)

Allowance for loan and lease losses, end of period	$	859,646		$	913,069		$	964,828		$	1,019,710		$	1,071,126

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	50,934		$	48,456		$	38,779		$	41,060		$	42,211

Provision for (reduction in) unfunded loan commitments and letters of credit losses		44			2,478			9,677			(2,281	)		(1,151	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	50,978		$	50,934		$	48,456		$	38,779		$	41,060

Total allowance for credit losses, end of period	$	910,624		$	964,003		$	1,013,284		$	1,058,489		$	1,112,186

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		2.15	%		2.24	%		2.48	%		2.61	%		2.74	%
Nonaccrual loans and leases (NALs)		181			195			178			180			174
Nonperforming assets (NPAs)		164			173			163			166			164

Total allowance for credit losses (ACL) as % of:
Total loans and leases		2.28	%		2.37	%		2.60	%		2.71	%		2.84	%
Nonaccrual loans and leases		192			206			187			187			181
Nonperforming assets		174			183			172			172			170

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	2012						2011
(dollar amounts in thousands)	Second			First			Fourth			Third			Second
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	15,678		$	28,495		$	10,913		$	17,891		$	18,704
Commercial real estate:
Construction		(1,531	)		(1,186	)		(2,471	)		1,450			4,145
Commercial		30,709			11,692			30,854			22,990			23,450

Commercial real estate		29,178			10,506			28,383			24,440			27,595

Total commercial		44,856			39,001			39,296			42,331			46,299

Consumer:
Automobile		449			3,078			4,237			3,863			2,255
Home equity		21,045			23,729			23,419			26,222			25,441
Residential mortgage		10,786			10,570			9,732			11,562			16,455
Other consumer		7,109			6,614			7,233			6,577			7,084

Total consumer		39,389			43,991			44,621			48,224			51,235

Total net charge-offs	$	84,245		$	82,992		$	83,917		$	90,555		$	97,534

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.39	%		0.77	%		0.31	%		0.52	%		0.56	%
Commercial real estate:
Construction		(1.05	)		(0.79	)		(1.85	)		0.87			2.99
Commercial		2.24			0.89			2.27			1.69			1.65

Commercial real estate		1.92			0.72			1.91			1.60			1.77

Total commercial		0.81			0.75			0.78			0.86			0.94

Consumer:
Automobile		0.04			0.27			0.30			0.25			0.15
Home equity		1.01			1.15			1.15			1.31			1.29
Residential mortgage		0.82			0.82			0.77			0.97			1.44
Other consumer		6.15			5.45			5.66			5.05			5.27

Total consumer		0.83			0.95			0.92			0.99			1.08

Net charge-offs as a % of average loans		0.82	%		0.85	%		0.85	%		0.92	%		1.01	%

Huntington Bancshares Incorporated

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

(Unaudited)


	2012						2011
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	133,678		$	142,492		$	201,846		$	209,632		$	229,327
Commercial real estate		219,417			205,105			229,889			257,086			291,500
Residential mortgage		75,048			74,114			68,658			61,129			59,853
Home equity		46,023			45,847			40,687			37,156			33,545

Total nonaccrual loans and leases ⁽¹⁾		474,166			467,558			541,080			565,003			614,225

Other real estate, net:
Residential⁽²⁾		21,499			31,850			20,330			18,588			20,803
Commercial		17,109			16,897			18,094			19,418			17,909

Total other real estate, net		38,608			48,747			38,424			38,006			38,712
Other NPAs ⁽³⁾		10,476			10,772			10,772			10,972			—

Total nonperforming assets⁽²⁾	$	523,250		$	527,077		$	590,276		$	613,981		$	652,937

Nonaccrual loans and leases as a % of total loans and leases		1.19	%		1.15	%		1.39	%		1.45	%		1.57	%

NPA ratio⁽⁴⁾		1.31			1.29			1.51			1.57			1.67

	2012						2011
	Second			First			Fourth			Third			Second
Nonperforming assets, beginning of period	$	527,077		$	590,276		$	613,981		$	652,937		$	690,886
New nonperforming assets⁽²⁾		221,010			134,636			189,138			153,626			210,255
Franklin impact, net		—			—			(534	)		(349	)		(5,088	)
Returns to accruing status		(39,376	)		(32,056	)		(30,677	)		(25,794	)		(68,429	)
Loan and lease losses		(74,546	)		(75,366	)		(79,117	)		(79,992	)		(74,945	)
OREO losses (gains)		(459	)		(295	)		(867	)		(242	)		388
Payments		(63,530	)		(66,609	)		(91,734	)		(76,510	)		(73,009	)
Sales		(46,926	)		(23,509	)		(9,914	)		(9,695	)		(27,121	)

Nonperforming assets, end of period	$	523,250		$	527,077		$	590,276		$	613,981		$	652,937

⁽¹⁾	All loans acquired as part of the FDIC-assisted Fidelity Bank acquisition accrue interest as performing loans or as purchased impaired loans under ASC 310-30, therefore none of the acquired loans were reported as nonaccrual at March 31, 2012 and June 30, 2012.

⁽²⁾	Residential real estate owned properties acquired in the FDIC-assisted Fidelity Bank acquisition are reflected in the above table.

⁽³⁾	Other nonperforming assets represent an investment security backed by a municipal bond.

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

Huntington Bancshares Incorporated

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

(Unaudited)


	2012						2011
(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 (1)	$	19,258		$	—		$	—		$	—		$	—
Commercial real estate (1)		38,125			—			—			—			—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		15,457			35,604			45,198			32,850			33,975
Home equity		18,500			19,862			20,198			20,420			17,451
Other consumer		4,334			5,091			8,253			7,755			6,227

Total, excl. loans guaranteed by the U.S. Government		95,674			60,557			73,649			61,025			57,653
Add: loans guaranteed by U.S. Government		85,678			94,560			96,703			84,413			76,979

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	181,352		$	155,117		$	170,352		$	145,438		$	134,632

Ratios:

Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.24	%		0.15	%		0.19	%		0.16	%		0.15	%

Guaranteed by U.S. Government, as a percent of total loans and leases		0.21			0.23			0.25			0.21			0.19

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.45			0.38			0.44			0.37			0.34

Accruing troubled debt restructured loans: (2)
Commercial and industrial	$	57,008		$	53,795		$	54,007		$	77,509		$	62,272
Commercial real estate		202,190			231,923			249,968			244,089			177,854
Automobile		34,460			35,521			36,573			37,371			29,059
Home equity		66,997			59,270			52,224			47,712			37,067
Residential mortgage		298,967			294,836			309,678			304,365			313,772
Other consumer		3,038			4,233			6,108			4,513			8,910

Total accruing troubled debt restructured loans	$	662,660		$	679,578		$	708,558		$	715,559		$	628,934

Nonaccruing troubled debt restructured loans: (2)
Commercial and industrial	$	35,535		$	26,886		$	48,553		$	27,410		$	29,069
Commercial real estate		55,022			39,606			21,968			46,854			48,676
Home equity		374			334			369			166			28
Residential mortgage		28,332			29,549			26,089			20,877			14,378
Other consumer		113			113			113			113			112

Total nonaccruing troubled debt restructured loans	$	119,376		$	96,488		$	97,092		$	95,420		$	92,263

(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)	Second		First		Fourth		Third		Second
Common stock price, per share
High⁽¹⁾	$	6.770	$	6.580	$	5.650	$	6.740	$	6.920
Low⁽¹⁾		5.840		5.490		4.670		4.460		6.000
Close		6.400		6.445		5.490		4.800		6.560
Average closing price		6.367		5.974		5.178		5.370		6.506

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

Common shares outstanding
Average — basic		862,261		864,499		864,136		863,911		863,358
Average — diluted		867,551		869,164		868,156		867,633		867,469
Ending		858,401		864,675		864,406		864,075		863,323

Book value per common share	$	6.13	$	5.97	$	5.82	$	5.83	$	5.66
Tangible book value per common share⁽²⁾		5.49		5.33		5.18		5.17		5.00

Common share repurchases
Number of shares repurchased		6,426		—		—		—		—


	2012						2011
(dollar amounts in millions)	June 30,			March 31,			December 31,			September 30,			June 30,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	5,649		$	5,550		$	5,418		$	5,400		$	5,253
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(159	)		(171	)		(175	)		(188	)		(202	)
Add: related deferred tax liability⁽²⁾		56			60			61			66			71

Total tangible equity		5,102			4,995			4,860			4,834			4,678
Less: preferred equity		(386	)		(386	)		(386	)		(363	)		(363	)

Total tangible common equity	$	4,716		$	4,609		$	4,474		$	4,471		$	4,315

Total assets	$	56,623		$	55,877		$	54,451		$	54,979		$	53,050
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(159	)		(171	)		(175	)		(188	)		(202	)
Add: related deferred tax liability⁽²⁾		56			60			61			66			71

Total tangible assets	$	56,076		$	55,322		$	53,893		$	54,413		$	52,475

Tangible equity / tangible asset ratio		9.10	%		9.03	%		9.02	%		8.88	%		8.91	%
Tangible common equity / tangible asset ratio		8.41			8.33			8.30			8.22			8.22

Tier 1 common risk-based capital ratio:⁽⁴⁾
Tier 1 capital	$	5,714		$	5,709		$	5,557		$	5,488		$	5,353
Shareholders’ preferred equity		(386	)		(386	)		(386	)		(363	)		(363	)
Trust preferred securities		(449	)		(532	)		(532	)		(565	)		(565	)
REIT preferred stock		(50	)		(50	)		(50	)		(50	)		(50	)

Tier 1 common	$	4,829		$	4,741		$	4,589		$	4,510		$	4,375

Total risk-weighted assets⁽⁴⁾	$	47,903		$	46,716		$	45,891		$	44,376		$	44,080
Tier 1 common risk-based capital ratio⁽⁴⁾		10.08	%		10.15	%		10.00	%		10.17	%		9.92	%
Other capital data:
Tier 1 leverage ratio⁽⁴⁾		10.34			10.55			10.28			10.24			10.25
Tier 1 risk-based capital ratio⁽⁴⁾		11.93			12.22			12.11			12.37			12.14
Total risk-based capital ratio⁽⁴⁾		14.41			14.76			14.77			15.11			14.89
Tangible common equity / risk-weighted assets ratio⁽⁴⁾		9.84			9.86			9.75			10.08			9.79

Other data:
Number of employees (full-time equivalent)		11,417			11,166			11,245			11,473			11,457
Number of domestic full-service branches⁽³⁾		682			669			668			650			643

⁽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, 2012, figures are estimated.

Huntington Bancshares Incorporated

Consolidated Year To Date Average Balance Sheets

(Unaudited)


	YTD Average Balances
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2012			2011			Amount			Percent
Assets
Interest bearing deposits in banks	$	112		$	130		$	(18	)		(14	)%
Trading account securities		52			128			(76	)		(59	)
Federal funds sold and securities purchased under resale agreements		—			11			(11	)		(100	)
Loans held for sale		837			300			537			179
Available-for-sale and other securities:
Taxable		8,228			8,766			(538	)		(6	)
Tax-exempt		396			441			(45	)		(10	)

Total available-for-sale and other securities		8,624			9,207			(583	)		(6	)
Held-to-maturity securities - taxable		622			87			535			615
Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		15,458			13,246			2,212			17
Commercial real estate:
Construction		591			582			9			2
Commercial		5,373			5,795			(422	)		(7	)

Commercial real estate		5,964			6,377			(413	)		(6	)

Total commercial		21,422			19,623			1,799			9

Consumer:
Automobile		4,781			5,829			(1,048	)		(18	)
Home equity		8,272			7,801			471			6
Residential mortgage		5,214			4,516			698			15
Other consumer		473			548			(75	)		(14	)

Total consumer		18,740			18,694			46			—

Total loans and leases		40,162			38,317			1,845			5
Allowance for loan and lease losses		(934	)		(1,179	)		245			(21	)

Net loans and leases		39,228			37,138			2,090			6

Total earning assets		50,409			48,180			2,229			5

Cash and due from banks		970			1,183			(213	)		(18	)
Intangible assets		611			659			(48	)		(7	)
All other assets		4,191			4,224			(33	)		(1	)

Total assets	$	55,247		$	53,067		$	2,180			4	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	11,668		$	7,571		$	4,097			54	%
Demand deposits - interest-bearing		5,792			5,462			330			6
Money market deposits		13,162			13,184			(22	)		—
Savings and other domestic deposits		4,898			4,740			158			3
Core certificates of deposit		6,564			8,234			(1,670	)		(20	)

Total core deposits		42,084			39,191			2,893			7
Other domestic deposits of $250,000 or more		323			536			(213	)		(40	)
Brokered deposits and negotiable CDs		1,361			1,372			(11	)		(1	)
Deposits in foreign offices		393			360			33			9

Total deposits		44,161			41,459			2,702			7
Short-term borrowings		1,451			2,123			(672	)		(32	)
Federal Home Loan Bank advances		523			63			460			730
Subordinated notes and other long-term debt		2,452			3,386			(934	)		(28	)

Total interest-bearing liabilities		36,919			39,460			(2,541	)		(6	)

All other liabilities		1,105			952			153			16
Shareholders’ equity		5,555			5,084			471			9

Total liabilities and shareholders’ equity	$	55,247		$	53,067		$	2,180			4	%

⁽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)	2012		2011
Assets
Interest bearing deposits in banks	$	109	$	110
Trading account securities		429		941
Federal funds sold and securities purchased under resale agreements		—		5
Loans held for sale		15,547		6,531
Available-for-sale and other securities:
Taxable		97,069		112,254
Tax-exempt		8,308		9,622

Total available-for-sale and other securities		105,377		121,876
Held-to-maturity securities — taxable		9,252		1,287
Loans and leases:
Commercial:
Commercial and industrial		312,816		295,639
Commercial real estate:
Construction		11,229		9,856
Commercial		105,304		114,043

Commercial real estate		116,533		123,899

Total commercial		429,349		419,538

Consumer:
Automobile		113,406		148,440
Home equity		177,940		176,016
Residential mortgage		108,240		105,828
Other consumer		17,515		21,221

Total consumer		417,101		451,505

Total loans and leases		846,450		871,043

Total earning assets	$	977,164	$	1,001,793

Liabilities
Deposits:
Demand deposits — noninterest-bearing	$	—	$	—
Demand deposits — interest-bearing		1,832		2,457
Money market deposits		18,297		29,505
Savings and other domestic deposits		10,204		18,279
Core certificates of deposit		48,601		83,855

Total core deposits		78,934		134,096
Other domestic deposits of $250,000 or more		1,076		2,792
Brokered deposits and negotiable CDs		5,198		6,799
Deposits in foreign offices		363		414

Total deposits		85,571		144,101
Short-term borrowings		1,136		1,805
Federal Home Loan Bank advances		555		434
Subordinated notes and other long-term debt		34,049		40,007

Total interest-bearing liabilities		121,311		186,347

Net interest income	$	855,853	$	815,446

⁽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 Year To Date Net Interest Margin Analysis

(Unaudited)


	YTD Average Rates (2)
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2012			2011
Assets
Interest bearing deposits in banks		0.19	%		0.17	%
Trading account securities		1.65			1.47
Federal funds sold and securities purchased under resale agreements		—			0.09
Loans held for sale		3.71			4.36
Available-for-sale and other securities:
Taxable		2.36			2.56
Tax-exempt		4.20			4.37

Total available-for-sale and other securities		2.44			2.65
Held-to-maturity securities — taxable		2.98			2.95
Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		4.00			4.44
Commercial real estate:
Construction		3.76			3.37
Commercial		3.88			3.91

Commercial real estate		3.87			3.86

Total commercial		3.96			4.25

Consumer:
Automobile		4.77			5.14
Home equity		4.30			4.51
Residential mortgage		4.15			4.69
Other consumer		7.44			7.80

Total consumer		4.46			4.85

Total loans and leases		4.20			4.54

Total earning assets		3.90	%		4.19	%

Liabilities
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%
Demand deposits — interest-bearing		0.06			0.09
Money market deposits		0.28			0.45
Savings and other domestic deposits		0.42			0.78
Core certificates of deposit		1.49			2.05

Total core deposits		0.52			0.86
Other domestic deposits of $250,000 or more		0.67			1.05
Brokered deposits and negotiable CDs		0.77			1.00
Deposits in foreign offices		0.19			0.23

Total deposits		0.53			0.86
Short-term borrowings		0.16			0.17
Federal Home Loan Bank advances		0.21			1.36
Subordinated notes and other long-term debt		2.78			2.36

Total interest bearing liabilities		0.66			0.95

Net interest rate spread		3.16			3.20
Impact of noninterest-bearing funds on margin		0.25			0.21

Net interest margin		3.41	%		3.41	%

Commercial Loan Derivative Impact

(Unaudited)


	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2012			2011
Commercial loans⁽²⁾⁽³⁾		3.68	%		3.83	%
Impact of commercial loan derivatives		0.29			0.42

Total commercial — as reported		3.96	%		4.25	%

Average 30 day LIBOR		0.24	%		0.19	%

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

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

⁽³⁾	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data⁽¹⁾

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2012			2011			Amount			Percent
Interest income	$	967,481		$	994,014		$	8,612			1	%
Interest expense		121,310			186,347			(65,037	)		(35	)

Net interest income		846,171			807,667			38,504			5
Provision for credit losses		70,926			85,182			(14,256	)		(17	)

Net interest income after provision for credit losses		775,245			722,485			52,760			7

Service charges on deposit accounts		126,290			114,999			11,291			10
Trust services		60,820			61,134			(314	)		(1	)
Electronic banking		39,144			60,514			(21,370	)		(35	)
Mortgage banking income		84,767			46,519			38,248			82
Brokerage income		38,285			41,330			(3,045	)		(7	)
Insurance income		36,259			34,344			1,915			6
Bank owned life insurance income		27,904			32,421			(4,517	)		(14	)
Capital markets fees		23,437			15,473			7,964			51
Gain on sale of loans		30,901			9,963			20,938			210
Automobile operating lease income		6,652			16,154			(9,502	)		(59	)
Securities gains (losses)		(263	)		1,547			(1,810	)		(117	)
Other income		64,943			58,314			6,629			11

Total noninterest income		539,139			492,712			46,427			9

Personnel costs		486,532			437,598			48,934			11
Outside data processing and other services		90,207			84,171			6,036			7
Net occupancy		54,553			55,321			(768	)		(1	)
Equipment		50,417			44,398			6,019			14
Deposit and other insurance expense		36,469			41,719			(5,250	)		(13	)
Marketing		38,141			36,997			1,144			3
Professional services		26,688			33,545			(6,857	)		(20	)
Amortization of intangibles		23,471			26,756			(3,285	)		(12	)
Automobile operating lease expense		5,037			12,270			(7,233	)		(59	)
OREO and foreclosure expense		9,056			8,329			727			9
Gain on early extinguishment of debt		(2,580	)		—			(2,580	)		—
Other expense		88,954			78,004			10,950			14

Total noninterest expense		906,945			859,108			47,837			6

Income before income taxes		407,439			356,089			51,350			14
Provision for income taxes		101,463			83,725			17,738			21

Net income	$	305,976		$	272,364		$	33,612			12	%

Dividends on preferred shares		16,033			15,407			626			4

Net income applicable to common shares	$	289,943		$	256,957		$	32,986			13	%

Average common shares—basic		863,380			863,358			22			—	%
Average common shares—diluted⁽²⁾		868,357			867,353			1,004			—

Per common share
Net income - basic	$	0.34		$	0.30		$	0.04			13
Net income - diluted		0.33			0.30			0.03			10
Cash dividends declared		0.08			0.02			0.06			300

Return on average total assets		1.11	%		1.03	%		0.08	%		8
Return on average common shareholders’ equity		11.3			11.0			0.3			3
Return on average tangible common shareholders’ equity⁽³⁾		13.3			13.4			(0.1	)		(1	)
Net interest margin⁽⁴⁾		3.41			3.41			—			—
Efficiency ratio⁽⁵⁾		63.3			63.7			(0.4	)		(1	)
Effective tax rate		24.9			23.5			1.4			6

Revenue—fully taxable equivalent (FTE)
Net interest income	$	846,171		$	807,667		$	38,504			5
FTE adjustment⁽⁴⁾		9,682			7,779			1,903			24

Net interest income		855,853			815,446			40,407			5
Noninterest income		539,139			492,712			46,427			9

Total revenue	$	1,394,992		$	1,308,158		$	86,834			7	%

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

⁽²⁾

For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods. The convertible preferred stock and warrants were repurchased in December 2010 and January 2011, respectively.

⁽³⁾

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

⁽⁵⁾	Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

Huntington Bancshares Incorporated

Year To Date Mortgage Banking Income

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except as noted)	2012			2011			Amount			Percent
Mortgage banking income

Origination and secondary marketing	$	61,488		$	31,321		$	30,167			96	%
Servicing fees		23,378			24,963			(1,585	)		(6	)
Amortization of capitalized servicing		(18,387	)		(18,915	)		528			(3	)
Other mortgage banking income		9,780			8,028			1,752			22

Subtotal		76,259			45,397			30,862			68

MSR valuation adjustment⁽¹⁾		(9,106	)		(7,518	)		(1,588	)		21
Net trading gains (losses) related to MSR hedging		17,614			8,640			8,974			104

Total mortgage banking income	$	84,767		$	46,519		$	38,248			82	%

Mortgage originations (in millions)	$	2,448		$	1,845		$	603			33	%
Average trading account securities used to hedge MSRs (in millions)		5			34			(29	)		(85	)
Capitalized mortgage servicing rights⁽²⁾		128,297			189,740			(61,443	)		(32	)
Total mortgages serviced for others (in millions)⁽²⁾		15,724			16,315			(591	)		(4	)
MSR % of investor servicing portfolio		0.82	%		1.16	%		(0.34	)%		(29	)

Net impact of MSR hedging

MSR valuation adjustment⁽¹⁾	$	(9,106	)	$	(7,518	)	$	(1,588	)		21	%
Net trading gains (losses) related to MSR hedging		17,614			8,640			8,974			104
Net interest income related to MSR hedging		(30	)		183			(213	)		N.R.

Net gain (loss) on MSR hedging	$	8,478		$	1,305		$	7,173			550	%

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

⁽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)	2012			2011
Allowance for loan and lease losses, beginning of period	$	964,828		$	1,249,008
Loan and lease losses		(216,052	)		(327,708	)
Recoveries of loans previously charged off		48,815			65,091

Net loan and lease losses		(167,237	)		(262,617	)

Provision for loan and lease losses		68,404			86,249
Allowance of assets sold or transferred to loan held for sale		(6,349	)		(1,514	)

Allowance for loan and lease losses, end of period	$	859,646		$	1,071,126

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	48,456		$	42,127
Provision for (reduction in) unfunded loan commitments and letters of credit losses		2,522			(1,067	)

Allowance for unfunded loan commitments and letters of credit, end of period	$	50,978		$	41,060

Total allowance for credit losses	$	910,624		$	1,112,186

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		2.15	%		2.74	%
Nonaccrual loans and leases (NALs)		181			174
Nonperforming assets (NPAs)		164			164

Total allowance for credit losses (ACL) as % of:
Total loans and leases		2.28	%		2.84	%
Nonaccrual loans and leases (NALs)		192			181
Nonperforming assets (NPAs)		174			170

Huntington Bancshares Incorporated

Year to Date Net Charge-Off Analysis

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2012			2011
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	44,173		$	60,895
Commercial real estate:
Construction		(2,717	)		32,545
Commercial		42,401			62,733

Commercial real estate		39,684			95,278

Total commercial		83,857			156,173

Consumer:
Automobile		3,527			6,967
Home equity		44,774			52,156
Residential mortgage		21,356			35,387
Other consumer		13,723			11,934

Total consumer		83,380			106,444

Total net charge-offs	$	167,237		$	262,617

Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		0.57	%		0.92	%
Commercial real estate:
Construction		(0.92	)		11.18
Commercial		1.58			2.17

Commercial real estate		1.33			2.99

Total commercial		0.78			1.59

Consumer:
Automobile		0.15			0.24
Home equity		1.08			1.34
Residential mortgage		0.82			1.57
Other consumer		5.80			4.36

Total consumer		0.89			1.14

Net charge-offs as a % of average loans		0.83	%		1.37	%

Huntington Bancshares Incorporated

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

(Unaudited)


	June 30,
(dollar amounts in thousands)	2012			2011
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	133,678		$	229,327
Commercial real estate		219,417			291,500
Residential mortgage		75,048			59,853
Home equity		46,023			33,545

Total nonaccrual loans and leases (1)		474,166			614,225

Other real estate, net:
Residential (2)		21,499			20,803
Commercial		17,109			17,909

Total other real estate, net		38,608			38,712
Impaired loans held for sale		—			—
Other NPAs (3)		10,476			—

Total nonperforming assets (2)	$	523,250		$	652,937

Nonaccrual loans and leases as a % of total loans and leases		1.19	%		1.57	%

NPA ratio (4)		1.31			1.67


	Six Months Ended June 30,
(dollar amounts in thousands)	2012			2011
Nonperforming assets, beginning of period	$	590,276		$	844,752
New nonperforming assets (2)		355,646			402,299
Franklin impact, net		—			(8,594	)
Returns to accruing status		(71,432	)		(139,315	)
Loan and lease losses		(149,912	)		(203,675	)
OREO losses (gains)		(754	)		1,880
Payments		(130,139	)		(160,050	)
Sales		(70,435	)		(84,360	)

Nonperforming assets, end of period	$	523,250		$	652,937

(1)	All loans acquired as part of the FDIC-assisted Fidelity Bank acquisition accrue interest as performing loans or as purchased impaired loans under ASC 310-30, therefore none of the acquired loans were reported as nonaccrual at June 30, 2012.

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

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

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

Huntington Bancshares Incorporated

Year to Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt

Restructured Loans

(Unaudited)


	June 30,
(dollar amounts in thousands)	2012			2011
Accruing loans and leases past due 90 days or more:
Commercial and industrial (1)	$	19,258		$	—
Commercial real estate (1)		38,125			—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		15,457			33,975
Home equity		18,500			17,451
Other consumer		4,334			6,227

Total, excl. loans guaranteed by the U.S. Government		95,674			57,653
Add: loans guaranteed by U.S. Government		85,678			76,979

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	181,352		$	134,632

Ratios:

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

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

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.45			0.34

Accruing troubled debt restructured loans: (2)
Commercial and industrial	$	57,008		$	62,272
Commercial real estate		202,190			177,854
Automobile		34,460			29,059
Home equity		66,997			37,067
Residential mortgage		298,967			313,772
Other consumer		3,038			8,910

Total accruing troubled debt restructured loans	$	662,660		$	628,934

Nonaccruing troubled debt restructured loans: (2)
Commercial and industrial	$	35,535		$	29,069
Commercial real estate		55,022			48,676
Home equity		374			28
Residential mortgage		28,332			14,378
Other consumer		113			112

Total nonaccruing troubled debt restructured loans	$	119,376		$	92,263

(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.