Maryland | 1-34073 | 31-0724920 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Huntington Center 41 South High Street Columbus, Ohio |
43287 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
2011 | 2010 | |||||||||||||||||||
(in millions) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Tangible common equity to asset ratio: |
||||||||||||||||||||
Total shareholders equity |
$ | 5,039 | $ | 4,981 | $ | 5,567 | $ | 5,438 | $ | 5,370 | ||||||||||
Shareholders preferred equity |
(363 | ) | (363 | ) | (1,700 | ) | (1,696 | ) | (1,692 | ) | ||||||||||
4,676 | 4,618 | 3,867 | 3,742 | 3,678 | ||||||||||||||||
Goodwill |
(444 | ) | (444 | ) | (444 | ) | (444 | ) | (444 | ) | ||||||||||
Intangible assets |
(215 | ) | (229 | ) | (244 | ) | (259 | ) | (274 | ) | ||||||||||
Intangible asset deferred tax liability (1) |
75 | 80 | 85 | 91 | 95 | |||||||||||||||
Total tangible common equity |
$ | 4,092 | $ | 4,025 | $ | 3,264 | $ | 3,130 | $ | 3,055 | ||||||||||
Total assets |
$ | 52,949 | $ | 53,820 | $ | 53,247 | $ | 51,771 | $ | 51,867 | ||||||||||
Goodwill |
(444 | ) | (444 | ) | (444 | ) | (444 | ) | (444 | ) | ||||||||||
Other intangible assets |
(215 | ) | (229 | ) | (244 | ) | (259 | ) | (274 | ) | ||||||||||
Intangible asset deferred tax liability (1) |
75 | 80 | 85 | 91 | 95 | |||||||||||||||
Total tangible assets |
$ | 52,365 | $ | 53,227 | $ | 52,644 | $ | 51,159 | $ | 51,244 | ||||||||||
Tangible common equity to asset ratio |
7.81 | % | 7.56 | % | 6.20 | % | 6.12 | % | 5.96 | % | ||||||||||
Tier 1 common risk-based capital ratio (2) |
||||||||||||||||||||
Tier 1 capital |
$ | 5,179 | $ | 5,022 | $ | 5,480 | $ | 5,317 | $ | 5,090 | ||||||||||
Shareholders preferred equity |
(363 | ) | (363 | ) | (1,700 | ) | (1,696 | ) | (1,692 | ) | ||||||||||
Trust preferred securities |
(570 | ) | (570 | ) | (570 | ) | (570 | ) | (570 | ) | ||||||||||
REIT preferred stock |
(50 | ) | (50 | ) | (50 | ) | (50 | ) | (50 | ) | ||||||||||
Tier 1 common |
$ | 4,196 | $ | 4,039 | $ | 3,160 | $ | 3,001 | $ | 2,778 | ||||||||||
Risk weighted assets |
$ | 43,025 | $ | 43,471 | $ | 42,759 | $ | 42,486 | $ | 42,522 | ||||||||||
Tier 1 common risk-based capital ratio |
9.75 | % | 9.29 | % | 7.39 | % | 7.06 | % | 6.53 | % |
(1) | Intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate. | |
(2) | March 31, 2011 figures are estimated. |
Exhibit 99.1 |
News release of Huntington Bancshares Incorporated, dated April 20, 2011. |
Exhibit 99.2 |
Quarterly Performance Discussion, March 2011. |
Exhibit 99.3 |
Quarterly Financial Review, March 2011. |
HUNTINGTON BANCSHARES INCORPORATED |
||||
Date: April 20, 2011 | By: | /s/ Donald R. Kimble | ||
Donald R. Kimble | ||||
Senior Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
Exhibit 99.1 |
News release of Huntington Bancshares Incorporated, April 20, 2011. | ||
Exhibit 99.2 |
Quarterly Performance Discussion, March 2011. | ||
Exhibit 99.3 |
Quarterly Financial Review, March 2011. |
Contact: |
||
Investors
|
Media | |
Jay Gould
|
Maureen Brown | |
Jay.Gould@huntington.com
|
Maureen.Brown@Huntington.com | |
(614) 480-4060
|
(614) 480-5512 | |
Todd Beekman |
||
Todd.Beekman@huntington.com |
||
(614) 480-3878 |
| 6%, or $38.0 million, decline in fully-taxable equivalent revenue, reflecting a $30.5 million decline in mortgage banking income |
| 3.42% net interest margin, up 5 basis points |
| 3% annualized growth in average total loans |
| 3% annualized growth in average total core deposits |
| 18% decline in nonaccrual loans |
| 185% allowance for credit losses coverage of nonaccrual loans, up from 166% |
| 0.96% return on average assets, up from 0.90% |
| 12.7% return on average tangible common shareholders equity |
| 9.75% Tier 1 common risk-based capital |
| 7.81% tangible common equity ratio, up from 7.56% |
2
3
2011 | 2010 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
Income Before Income Taxes |
$ | 161.2 | $ | 157.9 | $ | 130.6 | $ | 62.1 | $ | 1.6 | ||||||||||
Add: Provision for credit losses |
49.4 | 87.0 | 119.2 | 193.4 | 235.0 | |||||||||||||||
Less: Securities (losses) gains |
0.0 | (0.1 | ) | (0.3 | ) | 0.2 | (0.0 | ) | ||||||||||||
Add: Amortization of intangibles |
13.4 | 15.0 | 15.1 | 15.1 | 15.1 | |||||||||||||||
Less: Additions to litigation reserves |
(17.0 | ) | | | | | ||||||||||||||
Pre-Tax, Pre-Provision Income (1) |
$ | 240.9 | $ | 260.1 | $ | 265.2 | $ | 270.5 | $ | 251.8 | ||||||||||
Linked-quarter change amount |
$ | (19.1 | ) | $ | (5.2 | ) | $ | (5.2 | ) | $ | 18.6 | $ | 9.8 | |||||||
Linked-quarter change percent |
-7.4 | % | -1.9 | % | -1.9 | % | 7.4 | % | 4.0 | % |
(1) | See Basis of Presentation for definition |
| $8.8 million seasonal reduction in revenue as the current quarter had less days than the fourth quarter. This included a $7.0 million reduction in net interest income and a $1.8 million reduction in service charge and electronic banking income, and |
| $6.9 million seasonal increase in noninterest expense primarily associated with the annual reset of FICA and other payroll taxes. |
4
5
| provision expense, which is excluded because its absolute level is elevated and volatile in times of economic stress; |
| available-for-sale and other securities gains/losses, which are excluded because in times of economic stress securities market valuations may also become particularly volatile; |
| amortization of intangibles expense, which is excluded because return on tangible common equity is a key metric used by Management to gauge performance trends; and |
| certain items identified by Management to be outside of ordinary banking activities, and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by Management at the time to be infrequent or short-term in nature, which Management believes may distort the companys underlying performance trends. |
6
7
2011 | 2010 | |||||||||||||||
First | Fourth | Change | ||||||||||||||
(in millions) | Quarter | Quarter | Amount | % | ||||||||||||
Net interest income |
$ | 404.3 | $ | 415.3 | $ | (11.0 | ) | (3 | )% | |||||||
Provision for credit losses |
49.4 | 87.0 | (37.6 | ) | (43 | ) | ||||||||||
Noninterest income |
236.9 | 264.2 | (27.3 | ) | (10 | ) | ||||||||||
Noninterest expense |
430.7 | 434.6 | (3.9 | ) | (1 | ) | ||||||||||
Income before income taxes |
161.2 | 157.9 | 3.2 | 2 | ||||||||||||
Provison for income taxes |
34.7 | 35.0 | (0.3 | ) | (1 | ) | ||||||||||
Net income |
126.4 | 122.9 | 3.5 | 3 | ||||||||||||
Dividends on preferred shares |
7.7 | 83.8 | (76.1 | ) | (91 | ) | ||||||||||
Net income applicable to common shares |
$ | 118.7 | $ | 39.1 | $ | 79.6 | 203 | % | ||||||||
Net income per common share-diluted |
$ | 0.14 | $ | 0.05 | $ | 0.09 | 180 | % | ||||||||
Revenue fully-taxable equivalent (FTE) |
||||||||||||||||
Net interest income |
$ | 404.3 | $ | 415.3 | $ | (11.0 | ) | (3 | )% | |||||||
FTE adjustment |
3.9 | 3.7 | 0.2 | 6 | ||||||||||||
Net interest income FTE |
408.3 | 419.0 | (10.7 | ) | (3 | ) | ||||||||||
Noninterest income |
236.9 | 264.2 | (27.3 | ) | (10 | ) | ||||||||||
Total revenue FTE |
$ | 645.2 | $ | 683.2 | $ | (38.0 | ) | (6 | )% | |||||||
Three Months Ended | Impact | |||||||
(in millions, except per share) | Amount (1) | EPS (2) | ||||||
March 31, 2011 GAAP income |
$ | 126.4 | $ | 0.14 | ||||
Additions to litigation reserves |
(17.0 | ) | (0.01 | ) | ||||
December 31, 2010 GAAP income |
$ | 122.9 | $ | 0.05 | ||||
Deemed dividend |
NA | (0.07 | ) | |||||
March 31, 2010 GAAP income |
$ | 39.7 | $ | 0.01 | ||||
Net tax benefit recognized |
38.2 | (2) | 0.05 | |||||
(1) | Favorable (unfavorable) impact on GAAP earnings; pre-tax unless otherwise noted | |
(2) | After-tax; EPS reflected on a fully diluted basis |
| $0.6 billion, or 6% (25% annualized), decrease in average available-for-sale and other securities, primarily related to two funding requirements. The first was the repurchase of the TARP preferred capital and related warrants. The second was the $0.4 billion decline in noncore deposits. |
| $0.4 billion decline in loans held for sale as our mortgage pipeline slowed considerably during the quarter. |
| $0.3 billion, or 1% (3% annualized), increase in average total loans and leases. |
2
2011 | 2010 | |||||||||||||||
First | Fourth | Change | ||||||||||||||
(in billions) | Quarter | Quarter | Amount | % | ||||||||||||
Average Loans and Leases |
||||||||||||||||
Commercial and industrial |
$ | 13.1 | $ | 12.8 | $ | 0.4 | 3 | % | ||||||||
Commercial real estate |
6.5 | 6.8 | (0.3 | ) | (4 | ) | ||||||||||
Total commercial |
19.6 | 19.6 | 0.1 | 0 | ||||||||||||
Automobile |
5.7 | 5.5 | 0.2 | 3 | ||||||||||||
Home equity |
7.7 | 7.7 | 0.0 | 0 | ||||||||||||
Residential mortgage |
4.5 | 4.4 | 0.0 | 1 | ||||||||||||
Other consumer |
0.6 | 0.6 | (0.0 | ) | (3 | ) | ||||||||||
Total consumer |
18.5 | 18.2 | 0.2 | 1 | ||||||||||||
Total loans and leases |
$ | 38.1 | $ | 37.8 | $ | 0.3 | 1 | % | ||||||||
| $0.4 billion, or 3% (11% annualized), growth in average commercial and industrial (C&I) loans. The growth in first quarter C&I loans came from several business lines including large corporate, middle market, asset based lending, automobile floor plan lending, and equipment finance. On a geographic basis, nine of our eleven regions experienced loan growth in the quarter, adding to the diversity of the portfolio growth. Line utilization rates remained low and little changed from the end of the prior quarter. |
| $0.2 billion, or 3% (13% annualized), growth in average automobile loans and leases. We continue to originate very high quality loans with very acceptable returns. To date, we have seen no material change in our outlook for automobile originations as a result of the crisis in Japan. While the crisis in Japan has resulted in a selective slowdown in auto production, we currently do not see this having a material negative impact on our auto finance business. We focus on larger, multi-franchised, well-capitalized dealers that are rarely reliant on the success of one franchise to generate profitability. In addition, the slowdown is only impacting new vehicle production, which is providing support to used vehicle pricing. More than half of our loan production represents used vehicle financing. |
| $0.3 billion, or 4% (16% annualized), decline in average commercial real estate loans (CRE), primarily as a result of our ongoing strategy to reduce our exposure to the commercial real estate market. The decline in noncore CRE accounted for 63% of the decline in the total CRE portfolio. The noncore CRE declines reflected paydowns, refinancing, and charge-offs. The core CRE portfolio continued to exhibit high quality characteristics with minimal downgrade or charge-off activity. |
3
2011 | 2010 | |||||||||||||||
First | Fourth | Change | ||||||||||||||
(in billions) | Quarter | Quarter | Amount | % | ||||||||||||
Average Deposits |
||||||||||||||||
Demand deposits noninterest bearing |
$ | 7.3 | $ | 7.2 | $ | 0.1 | 2 | % | ||||||||
Demand deposits interest bearing |
5.4 | 5.3 | 0.0 | 1 | ||||||||||||
Money market deposits |
13.5 | 13.2 | 0.3 | 3 | ||||||||||||
Savings and other domestic deposits |
4.7 | 4.6 | 0.1 | 1 | ||||||||||||
Core certificates of deposit |
8.4 | 8.6 | (0.3 | ) | (3 | ) | ||||||||||
Total core deposits |
39.3 | 38.9 | 0.3 | 1 | ||||||||||||
Other domestic deposits of $250,000 or more |
0.6 | 0.7 | (0.1 | ) | (18 | ) | ||||||||||
Brokered deposits and negotiable CDs |
1.4 | 1.6 | (0.2 | ) | (10 | ) | ||||||||||
Other deposits |
0.4 | 0.4 | (0.1 | ) | (16 | ) | ||||||||||
Total deposits |
$ | 41.7 | $ | 41.7 | $ | (0.0 | ) | (0 | )% | |||||||
| $0.3 billion, or 1% (3% annualized), growth in average total core deposits. The primary drivers of this growth were a 3% (10% annualized) increase in average money market deposits, reflecting in part funds from maturing CDs flowing into money market accounts given the low absolute level of rates on new CD offerings. The growth in average total core deposits also reflected 2% (8% annualized) growth in average noninterest bearing demand deposits. Contributing to the growth in noninterest bearing demand deposits was 9% annualized linked quarter growth in consumer checking account households. |
| $0.2 billion, or 10% (42% annualized), decline in average brokered deposits and negotiable CDs, reflecting a strategy of reducing such noncore funding. |
| $1.1 billion, or 3%, increase in average total loans and leases. |
| $1.1 billion, or 13%, increase in average total available-for-sale and other securities, reflecting the deployment of cash from core deposit growth. |
4
First Quarter | Change | |||||||||||||||
(in billions) | 2011 | 2010 | Amount | % | ||||||||||||
Average Loans and Leases |
||||||||||||||||
Commercial and industrial |
$ | 13.1 | $ | 12.3 | $ | 0.8 | 7 | % | ||||||||
Commercial real estate |
6.5 | 7.7 | (1.2 | ) | (15 | ) | ||||||||||
Total commercial |
19.6 | 20.0 | (0.3 | ) | (2 | ) | ||||||||||
Automobile |
5.7 | 4.3 | 1.5 | 34 | ||||||||||||
Home equity |
7.7 | 7.5 | 0.2 | 3 | ||||||||||||
Residential mortgage |
4.5 | 4.5 | (0.0 | ) | (0 | ) | ||||||||||
Other consumer |
0.6 | 0.7 | (0.2 | ) | (23 | ) | ||||||||||
Total consumer |
18.5 | 17.0 | 1.5 | 9 | ||||||||||||
Total loans and leases |
$ | 38.1 | $ | 37.0 | $ | 1.1 | 3 | % | ||||||||
| $1.5 billion, or 34%, increase in average automobile loans and leases. Automobile lending is a core competency and continued to be an area of growth. The growth from the year-ago quarter exhibited further penetration within our historical geographic footprint, as well as the positive impacts of our expansion into Eastern Pennsylvania and five New England states. Origination quality remained high. |
| $0.8 billion, or 7%, increase in average C&I loans reflected a combination of factors. Growth from the year-ago quarter reflected the benefits from our strategic initiatives including large corporate, asset based lending, and equipment finance. In addition, we continued to see growth in more traditional middle-market loans. This growth is evident despite utilization rates that remain well below historical norms. |
| $0.2 billion, or 3%, increase in average home equity loans, reflecting higher loan originations and continued slower runoff. |
| $1.2 billion, or 15%, decrease in average CRE loans reflecting the continued execution of our plan to reduce the CRE exposure, primarily in the noncore CRE segment. This reduction will continue through 2011, reflecting normal amortization, pay downs, and refinancing. |
5
First Quarter | Change | |||||||||||||||
(in billions) | 2011 | 2010 | Amount | % | ||||||||||||
Average Deposits |
||||||||||||||||
Demand deposits noninterest bearing |
$ | 7.3 | $ | 6.6 | $ | 0.7 | 11 | % | ||||||||
Demand deposits interest bearing |
5.4 | 5.7 | (0.4 | ) | (6 | ) | ||||||||||
Money market deposits |
13.5 | 10.3 | 3.2 | 30 | ||||||||||||
Savings and other domestic deposits |
4.7 | 4.6 | 0.1 | 2 | ||||||||||||
Core certificates of deposit |
8.4 | 10.0 | (1.6 | ) | (16 | ) | ||||||||||
Total core deposits |
39.3 | 37.3 | 2.0 | 5 | ||||||||||||
Other domestic deposits of $250,000 or more |
0.6 | 0.7 | (0.1 | ) | (13 | ) | ||||||||||
Brokered deposits and negotiable CDs |
1.4 | 1.8 | (0.4 | ) | (23 | ) | ||||||||||
Other deposits |
0.4 | 0.4 | (0.0 | ) | (9 | ) | ||||||||||
Total deposits |
$ | 41.7 | $ | 40.2 | $ | 1.4 | 4 | % | ||||||||
| $2.0 billion, or 5%, growth in average total core deposits. The drivers of this change were a $3.2 billion, or 30%, growth in average money market deposits, and a $0.7 billion, or 11%, growth in average noninterest bearing demand deposits. These increases were partially offset by a $1.6 billion, or 16%, decline in average core certificates of deposit and a $0.4 billion, or 6%, decrease in average interest bearing demand deposits. Contributing to the growth in noninterest bearing demand deposits was 4% growth in consumer checking account households from the year-ago quarter. |
| $0.4 billion, or 23%, decline in average brokered deposits and negotiable CDs, reflecting a strategy of reducing such noncore funding. |
6
2011 | 2010 | |||||||||||||||
First | Fourth | Change | ||||||||||||||
(in millions) | Quarter | Quarter | Amount | % | ||||||||||||
Noninterest Income |
||||||||||||||||
Service charges on deposit accounts |
$ | 54.3 | $ | 55.8 | $ | (1.5 | ) | (3 | )% | |||||||
Mortgage banking income |
22.7 | 53.2 | (30.5 | ) | (57 | ) | ||||||||||
Trust services |
30.7 | 29.4 | 1.3 | 5 | ||||||||||||
Electronic banking income |
28.8 | 28.9 | (0.1 | ) | (0 | ) | ||||||||||
Insurance income |
17.9 | 19.7 | (1.7 | ) | (9 | ) | ||||||||||
Brokerage income |
20.5 | 17.0 | 3.6 | 21 | ||||||||||||
Bank ow ned life insurance income |
14.8 | 16.1 | (1.3 | ) | (8 | ) | ||||||||||
Automobile operating lease income |
8.8 | 10.5 | (1.6 | ) | (15 | ) | ||||||||||
Securities (losses) gains |
0.0 | (0.1 | ) | 0.1 | 139 | |||||||||||
Other income |
38.2 | 33.8 | 4.4 | 13 | ||||||||||||
Total noninterest income |
$ | 236.9 | $ | 264.2 | $ | (27.3 | ) | (10 | )% | |||||||
| $30.5 million, or 57%, decline in mortgage banking income. The decrease primarily resulted from a $28.4 million, or 59%, reduction in origination and secondary marketing income. Mortgage originations declined to $0.9 billion, or 49%, from $1.8 billion in the prior quarter, reflecting a rise in mortgage interest rates late in the 2010 fourth quarter, thus decreasing refinancing and purchase activity. The decline also reflected a $6.2 million reduction associated with MSR hedging activities as the current quarter reflected $3.6 million of MSR net hedging losses compared with $2.6 million of such gains in the prior quarter. |
| $4.4 million, or 13%, growth in other income, reflecting a $4.8 million increase in gains on the sale of SBA loans. |
| $3.6 million, or 21%, growth in brokerage income, reflecting increased annuity sales. |
7
First Quarter | Change | |||||||||||||||
(in millions) | 2011 | 2010 | Amount | % | ||||||||||||
Noninterest Income |
||||||||||||||||
Service charges on deposit accounts |
$ | 54.3 | $ | 69.3 | $ | (15.0 | ) | (22 | )% | |||||||
Mortgage banking income |
22.7 | 25.0 | (2.4 | ) | (9 | ) | ||||||||||
Trust services |
30.7 | 27.8 | 3.0 | 11 | ||||||||||||
Electronic banking income |
28.8 | 25.1 | 3.6 | 15 | ||||||||||||
Insurance income |
17.9 | 18.9 | (0.9 | ) | (5 | ) | ||||||||||
Brokerage income |
20.5 | 16.9 | 3.6 | 21 | ||||||||||||
Bank ow ned life insurance income |
14.8 | 16.5 | (1.7 | ) | (10 | ) | ||||||||||
Automobile operating lease income |
8.8 | 12.3 | (3.5 | ) | (28 | ) | ||||||||||
Securities (losses) gains |
0.0 | (0.0 | ) | 0.1 | 229 | |||||||||||
Other income |
38.2 | 29.1 | 9.2 | 32 | ||||||||||||
Total noninterest income |
$ | 236.9 | $ | 240.9 | $ | (3.9 | ) | (2 | )% | |||||||
| $15.0 million, or 22%, decline in service charges on deposit accounts, reflecting lower personal service charges due to a combination of factors including the implementation of the amendment to Regulation E, our Fair Play banking philosophy, and lower underlying activity levels. |
| $3.5 million, or 28%, decline in automobile operating lease income reflecting the impact of a declining portfolio as a result of having exited that business in 2008. |
| $2.4 million, or 9%, decrease in mortgage banking income. This primarily reflected a $9.5 million reduction in MSR net hedging income (losses), as the current quarter reflected a $3.6 million net loss, partially offset by a $6.2 million, or 46%, increase in origination and secondary marketing income, as originations increased 7% from the year-ago quarter. |
| $9.2 million, or 32%, increase in other income, of which $7.5 million was associated with increased gains from the sale of SBA loans. Also contributing to the growth were increases from the sale of interest rate protection products, and capital markets activities. |
| $3.6 million, or 15%, increase in electronic banking income, reflecting an increase in debit card transaction volume and new account growth. |
| $3.6 million, or 21%, increase in brokerage income, primarily reflecting increased sales of investment products. |
| $3.0 million, or 11%, increase in trust services income, due to an $8.9 billion increase in total trust assets, including a $1.7 billion increase in assets under management. This increase reflected improved market values and net growth in accounts, as well as higher fees for income tax preparation. |
8
2011 | 2010 | |||||||||||||||
First | Fourth | Change | ||||||||||||||
(in millions) | Quarter | Quarter | Amount | % | ||||||||||||
Noninterest Expense |
||||||||||||||||
Personnel costs |
$ | 219.0 | $ | 212.2 | $ | 6.8 | 3 | % | ||||||||
Outside data processing and other services |
40.3 | 40.9 | (0.7 | ) | (2 | ) | ||||||||||
Net occupancy |
28.4 | 26.7 | 1.8 | 7 | ||||||||||||
Deposit and other insurance expense |
17.9 | 23.3 | (5.4 | ) | (23 | ) | ||||||||||
Professional services |
13.5 | 21.0 | (7.6 | ) | (36 | ) | ||||||||||
Equipment |
22.5 | 22.1 | 0.4 | 2 | ||||||||||||
Marketing |
16.9 | 16.2 | 0.7 | 4 | ||||||||||||
Amortization of intangibles |
13.4 | 15.0 | (1.7 | ) | (11 | ) | ||||||||||
OREO and foreclosure expense |
3.9 | 10.5 | (6.6 | ) | (63 | ) | ||||||||||
Automobile operating lease expense |
6.8 | 8.1 | (1.3 | ) | (16 | ) | ||||||||||
Other expense |
48.1 | 38.5 | 9.5 | 25 | ||||||||||||
Total noninterest expense |
$ | 430.7 | $ | 434.6 | $ | (3.9 | ) | (1 | )% | |||||||
(in thousands) |
||||||||||||||||
Number of employees (full-time equivalent) |
11.3 | 11.3 | (0.0 | ) | (0 | )% |
| $7.6 million, or 36%, decline in professional services, reflecting a decline in legal expenses, as collection activities decreased, and consulting costs. |
| $6.6 million, or 63%, decline in OREO and foreclosure expenses as OREO balances declined 18% in the current quarter. |
| $5.4 million, or 23%, decline in deposit and other insurance expenses. |
| $9.5 million, or 25%, increase in other expense. This reflected the current quarters $17.0 million of expense associated with additions to litigation reserves, partially offset by the benefit of declines in fraud losses, expenses related to representations and warranties losses made on mortgage loans sold, and travel expense. |
| $6.8 million, or 3%, increase in personnel costs, primarily reflecting $6.9 million of seasonal increase in FICA and other employment taxes. |
9
First Quarter | Change | |||||||||||||||
(in millions) | 2011 | 2010 | Amount | % | ||||||||||||
Noninterest Expense |
||||||||||||||||
Personnel costs |
$ | 219.0 | $ | 183.6 | $ | 35.4 | 19 | % | ||||||||
Outside data processing and other services |
40.3 | 39.1 | 1.2 | 3 | ||||||||||||
Net occupancy |
28.4 | 29.1 | (0.7 | ) | (2 | ) | ||||||||||
Deposit and other insurance expense |
17.9 | 24.8 | (6.9 | ) | (28 | ) | ||||||||||
Professional services |
13.5 | 22.7 | (9.2 | ) | (41 | ) | ||||||||||
Equipment |
22.5 | 20.6 | 1.9 | 9 | ||||||||||||
Marketing |
16.9 | 11.2 | 5.7 | 51 | ||||||||||||
Amortization of intangibles |
13.4 | 15.1 | (1.8 | ) | (12 | ) | ||||||||||
OREO and foreclosure expense |
3.9 | 11.5 | (7.6 | ) | (66 | ) | ||||||||||
Automobile operating lease expense |
6.8 | 10.1 | (3.2 | ) | (32 | ) | ||||||||||
Other expense |
48.1 | 30.3 | 17.8 | 59 | ||||||||||||
Total noninterest expense |
$ | 430.7 | $ | 398.1 | $ | 32.6 | 8 | % | ||||||||
(in thousands) |
||||||||||||||||
Number of employees (full-time equivalent) |
11.3 | 10.7 | 0.6 | 6 | % |
| $35.4 million, or 19%, increase in personnel costs, primarily reflecting a 6% increase in full-time equivalent staff in support of strategic initiatives, as well as higher benefit related expenses, including the reinstatement of our 401(k) plan matching contribution in the second quarter of last year. |
| $17.8 million, or 59%, increase in other expense, primarily reflecting $17.0 million of expense associated with additions to litigation reserves in the current quarter. |
| $5.7 million, or 51%, increase in marketing expense, reflecting increases in branding and product advertising activities in support of strategic initiatives. |
| $9.2 million, or 41%, decrease in professional services, reflecting lower legal costs, as collection activities declined, and consulting expenses. |
| $7.6 million, or 66%, decline in OREO and foreclosure expense, reflecting a 64% decline in OREO from the year-ago quarter. |
| $6.9 million, or 28%, decline in deposit and other insurance expenses. |
| $3.2 million, or 32%, decline in automobile operating lease expense as that portfolio continued to run-off. |
10
11
2011 | 2010 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
Net Charge-offs |
||||||||||||||||||||
Commercial and industrial |
$ | 42.2 | $ | 59.1 | $ | 62.2 | $ | 58.1 | $ | 75.4 | ||||||||||
Commercial real estate |
67.7 | 44.9 | 63.7 | 81.7 | 85.3 | |||||||||||||||
Total commercial |
109.9 | 104.0 | 125.9 | 139.9 | 160.7 | |||||||||||||||
Automobile |
4.7 | 7.0 | 5.6 | 5.4 | 8.5 | |||||||||||||||
Home equity |
26.7 | 29.2 | 27.8 | 44.5 | 37.9 | |||||||||||||||
Residential mortgage |
18.9 | 26.8 | 19.0 | 82.8 | 24.3 | |||||||||||||||
Other consumer |
4.9 | 5.3 | 6.3 | 6.6 | 7.0 | |||||||||||||||
Total consumer |
55.2 | 68.3 | 58.6 | 139.4 | 77.7 | |||||||||||||||
Total net charge-offs |
$ | 165.1 | $ | 172.3 | $ | 184.5 | $ | 279.2 | $ | 238.5 | ||||||||||
Net Charge-offs annualized percentages |
||||||||||||||||||||
Commercial and industrial |
1.29 | % | 1.85 | % | 2.01 | % | 1.90 | % | 2.45 | % | ||||||||||
Commercial real estate |
4.15 | 2.64 | 3.60 | 4.44 | 4.44 | |||||||||||||||
Total commercial |
2.24 | 2.13 | 2.59 | 2.85 | 3.22 | |||||||||||||||
Automobile |
0.33 | 0.51 | 0.43 | 0.47 | 0.80 | |||||||||||||||
Home equity |
1.38 | 1.51 | 1.47 | 2.36 | 2.01 | |||||||||||||||
Residential mortgage |
1.70 | 2.42 | 1.73 | 7.19 | 2.17 | |||||||||||||||
Other consumer |
3.47 | 3.66 | 3.83 | 3.81 | 3.87 | |||||||||||||||
Total consumer |
1.20 | 1.50 | 1.32 | 3.19 | 1.83 | |||||||||||||||
Total net charge-offs |
1.73 | % | 1.82 | % | 1.98 | % | 3.01 | % | 2.58 | % | ||||||||||
MEMO: Franklin-Related Net Charge-offs |
||||||||||||||||||||
Commercial and industrial |
$ | | $ | (0.1 | ) | $ | (4.5 | ) | $ | (0.2 | ) | $ | (0.3 | ) | ||||||
Home equity |
| | 1.2 | 15.9 | 3.7 | |||||||||||||||
Residential mortgage |
(3.1 | ) | (4.4 | ) | 3.4 | 64.2 | 8.1 | |||||||||||||
Total net charge-offs |
$ | (3.1 | ) | $ | (4.6 | ) | $ | 0.0 | $ | 80.0 | $ | 11.5 | ||||||||
12
2011 | 2010 | |||||||||||||||||||
(in millions) | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||
Nonaccrual loans and leases (NALs): |
||||||||||||||||||||
Commercial and industrial |
$ | 260.4 | $ | 346.7 | $ | 398.4 | $ | 429.6 | $ | 511.6 | ||||||||||
Commercial real estate |
305.8 | 363.7 | 478.8 | 663.1 | 826.8 | |||||||||||||||
Residential mortgage |
44.8 | 45.0 | 83.0 | 86.5 | 373.0 | |||||||||||||||
Home equity |
25.3 | 22.5 | 21.7 | 22.2 | 54.8 | |||||||||||||||
Total nonaccrual loans and leases (NALs) |
636.3 | 777.9 | 981.8 | 1,201.3 | 1,766.1 | |||||||||||||||
Other real estate, net: |
||||||||||||||||||||
Residential |
28.7 | 31.6 | 65.8 | 71.9 | 68.3 | |||||||||||||||
Commercial |
26.0 | 35.2 | 57.3 | 67.2 | 84.0 | |||||||||||||||
Total other real estate, net |
54.6 | 66.8 | 123.1 | 139.1 | 152.3 | |||||||||||||||
Impaired loans held for sale (1) |
| | | 242.2 | | |||||||||||||||
Total nonperforming assets (NPAs) |
$ | 690.9 | $ | 844.8 | $ | 1,104.9 | $ | 1,582.7 | $ | 1,918.4 | ||||||||||
Nonperforming Frankin assets |
||||||||||||||||||||
Residential mortgage |
$ | | $ | | $ | | $ | | $ | 298.0 | ||||||||||
Home equity |
| | | | 31.1 | |||||||||||||||
OREO |
6.0 | 9.5 | 15.3 | 24.5 | 24.4 | |||||||||||||||
Impaired loans held for sale (1) |
| | | 242.2 | | |||||||||||||||
Total nonperforming Franklin assets |
$ | 6.0 | $ | 9.5 | $ | 15.3 | $ | 266.7 | $ | 353.5 | ||||||||||
NAL ratio (2) |
1.66 | % | 2.04 | % | 2.62 | % | 3.25 | % | 4.78 | % | ||||||||||
NPA ratio (3) |
1.80 | 2.21 | 2.94 | 4.24 | 5.17 |
(1) | June 30, 2010, figure represents NALs associated with the transfer of Franklin-related residential mortgage and home equity loans to loans held for sale. | |
Held for sale loans are carried at the lower of cost or fair value less costs to sell. | ||
(2) | Total NALs as a % of total loans and leases | |
(3) | Total NPAs as a % of sum of loans and leases, impaired loans held for sale, and net other real estate |
13
2011 | 2010 | |||||||||||||||||||
(in millions) | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||
Accruing loans and leases past due 90 days or more: |
||||||||||||||||||||
Total excluding loans guaranteed by the U.S. Government |
$ | 73.6 | $ | 87.7 | $ | 95.4 | $ | 83.4 | $ | 113.2 | ||||||||||
Loans guaranteed by the U.S. Government |
94.4 | 98.3 | 94.2 | 95.4 | 96.8 | |||||||||||||||
Total loans and leases |
$ | 168.0 | $ | 185.9 | $ | 189.6 | $ | 178.8 | $ | 210.0 | ||||||||||
Ratios (1) |
||||||||||||||||||||
Excluding loans guaranteed by the U.S. government |
0.19 | % | 0.23 | % | 0.25 | % | 0.23 | % | 0.31 | % | ||||||||||
Guaranteed by U.S. government |
0.25 | 0.26 | 0.26 | 0.26 | 0.26 | |||||||||||||||
Including loans guaranteed by the U.S. government |
0.44 | 0.49 | 0.51 | 0.49 | 0.57 | |||||||||||||||
Accruing restructured loans (ARLs): |
||||||||||||||||||||
Commercial |
$ | 206.5 | $ | 222.6 | $ | 158.0 | $ | 141.4 | $ | 117.7 | ||||||||||
Residential mortgages |
333.5 | 328.4 | 287.5 | 269.6 | 242.9 | |||||||||||||||
Other |
78.5 | 76.6 | 73.2 | 65.1 | 62.1 | |||||||||||||||
Total accruing restructured loans |
$ | 618.4 | $ | 627.6 | $ | 518.7 | $ | 476.0 | $ | 422.7 | ||||||||||
(1) | Percent of related loans and leases |
14
2011 | 2010 | |||||||||||||||||||
(in millions) | Mar. 31 | Dec. 31, | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||
Allow ance for loan and lease losses (ALLL) |
$ | 1,133.2 | $ | 1,249.0 | $ | 1,336.4 | $ | 1,402.2 | $ | 1,478.0 | ||||||||||
Allow ance for unfunded loan commitments
and letters of credit |
42.2 | 42.1 | 40.1 | 39.7 | 49.9 | |||||||||||||||
Allowance for credit losses (ACL) |
$ | 1,175.4 | $ | 1,291.1 | $ | 1,376.4 | $ | 1,441.8 | $ | 1,527.9 | ||||||||||
ALLL as a % of: |
||||||||||||||||||||
Total loans and leases |
2.96 | % | 3.28 | % | 3.56 | % | 3.79 | % | 4.00 | % | ||||||||||
Nonaccrual loans and leases (NALs) |
178 | 161 | 136 | 117 | 84 | |||||||||||||||
Nonperforming assets (NPAs) |
164 | 148 | 121 | 89 | 77 | |||||||||||||||
ACL as a % of: |
||||||||||||||||||||
Total loans and leases |
3.07 | % | 3.39 | % | 3.67 | % | 3.90 | % | 4.14 | % | ||||||||||
Nonaccrual loans and leases (NALs) |
185 | 166 | 140 | 120 | 87 | |||||||||||||||
Nonperforming assets (NPAs) |
170 | 153 | 125 | 91 | 80 |
2011 | 2010 | |||||||||||||||||||
(in millions) | Mar. 31 | Dec. 31, | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||||||
Tangible common equity / tangible assets ratio |
7.81 | % | 7.56 | % | 6.20 | % | 6.12 | % | 5.96 | % | ||||||||||
Tier 1 common risk-based capital ratio |
9.75 | % | 9.29 | % | 7.39 | % | 7.06 | % | 6.53 | % | ||||||||||
Regulatory Tier 1 risk-based capital ratio |
12.04 | % | 11.55 | % | 12.82 | % | 12.51 | % | 11.97 | % | ||||||||||
Excess over 6.0% (1) |
$ | 2,599 | $ | 2,413 | $ | 2,916 | $ | 2,766 | $ | 2,539 | ||||||||||
Regulatory Total risk-based capital ratio |
14.85 | % | 14.46 | % | 15.08 | % | 14.79 | % | 14.28 | % | ||||||||||
Excess over 10.0% (1) |
$ | 2,087 | $ | 1,939 | $ | 2,172 | $ | 2,035 | $ | 1,820 | ||||||||||
Total risk-w eighted assets |
$ | 43,025 | $ | 43,471 | $ | 42,759 | $ | 42,486 | $ | 42,522 |
(1) | Well-capitalized regulatory threshold |
15
16
17
Quarterly Key Statistics |
1 - 2 | |||
Consolidated Balance Sheets |
3 | |||
Loans and Leases Composition |
4 | |||
Deposits Composition |
5 | |||
Consolidated Quarterly Average Balance Sheets |
6 | |||
Consolidated Quarterly Net Interest Margin Analysis |
7 | |||
Selected Quarterly Income Statement Data |
8 - 9 | |||
Quarterly Mortgage Banking Income |
10 | |||
Quarterly Credit Reserves Analysis |
11 | |||
Quarterly Net Charge-Off Analysis |
12 | |||
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) |
13 | |||
Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans |
14 | |||
Quarterly Common Stock Summary, Capital, and Other Data |
15 |
2011 | 2010 | Percent Changes vs. | ||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | First | Fourth | First | 4Q10 | 1Q10 | |||||||||||||||
Net interest income |
$ | 404,330 | $ | 415,294 | $ | 393,893 | (3 | )% | 3 | % | ||||||||||
Provision for credit losses |
49,385 | 86,973 | 235,008 | (43 | ) | (79 | ) | |||||||||||||
Noninterest income |
236,945 | 264,220 | 240,852 | (10 | ) | (2 | ) | |||||||||||||
Noninterest expense |
430,699 | 434,593 | 398,093 | (1 | ) | 8 | ||||||||||||||
Income before income taxes |
161,191 | 157,948 | 1,644 | 2 | 9,705 | |||||||||||||||
Provision (benefit) for income taxes |
34,745 | 35,048 | (38,093 | ) | (1 | ) | N.R. | |||||||||||||
Net income |
$ | 126,446 | $ | 122,900 | $ | 39,737 | 3 | % | 218 | % | ||||||||||
Dividends on preferred shares |
7,703 | 83,754 | 29,357 | (91 | ) | (74 | ) | |||||||||||||
Net income applicable to common shares |
$ | 118,743 | $ | 39,146 | $ | 10,380 | 203 | % | 1,044 | % | ||||||||||
Net income per common share diluted |
$ | 0.14 | $ | 0.05 | $ | 0.01 | 180 | % | 1,300 | % | ||||||||||
Cash dividends declared per common share |
0.01 | 0.01 | 0.01 | | | |||||||||||||||
Book value per common share at end of period |
5.42 | 5.35 | 5.13 | 1 | 6 | |||||||||||||||
Tangible book value per common share at end of period |
4.74 | 4.66 | 4.26 | 2 | 11 | |||||||||||||||
Average common shares basic |
863,359 | 757,924 | 716,320 | 14 | 21 | |||||||||||||||
Average common shares diluted(2) |
867,237 | 760,582 | 718,593 | 14 | 21 | |||||||||||||||
Return on average assets |
0.96 | % | 0.90 | % | 0.31 | % | ||||||||||||||
Return on average common shareholders equity |
10.3 | 3.8 | 1.1 | |||||||||||||||||
Return on average common tangible shareholders equity(3) |
12.7 | 5.6 | 2.7 | |||||||||||||||||
Net interest margin (4) |
3.42 | 3.37 | 3.47 | |||||||||||||||||
Efficiency ratio(5) |
64.7 | 61.4 | 60.1 | |||||||||||||||||
Effective tax rate |
21.6 | 22.2 | (2,317.1 | ) | ||||||||||||||||
Average loans and leases |
$ | 38,097,210 | $ | 37,800,546 | $ | 36,979,996 | 1 | 3 | ||||||||||||
Average loans and leases linked quarter annualized growth rate |
3.1 | % | 6.3 | % | (1.2 | )% | ||||||||||||||
Average earning assets |
$ | 48,344,961 | $ | 49,290,186 | $ | 46,240,486 | (2 | ) | 5 | |||||||||||
Average total assets |
53,368,554 | 54,146,249 | 51,702,032 | (1 | ) | 3 | ||||||||||||||
Average core deposits (6) |
39,274,265 | 38,949,046 | 37,271,725 | 1 | 5 | |||||||||||||||
Average core deposits linked quarter annualized growth rate |
3.3 | % | 9.9 | % | 5.4 | % | ||||||||||||||
Average shareholders equity |
$ | 5,022,146 | $ | 5,645,445 | $ | 5,363,719 | (11 | ) | (6 | ) | ||||||||||
Total assets at end of period |
52,948,509 | 53,819,642 | 51,866,798 | (2 | ) | 2 | ||||||||||||||
Total shareholders equity at end of period |
5,038,599 | 4,980,542 | 5,369,686 | 1 | (6 | ) | ||||||||||||||
Net charge-offs (NCOs) |
165,083 | 172,251 | 238,481 | (4 | ) | (31 | ) | |||||||||||||
NCOs as a % of average loans and leases |
1.73 | % | 1.82 | % | 2.58 | % | ||||||||||||||
Nonaccrual loans and leases (NALs) |
$ | 636,257 | $ | 777,948 | $ | 1,766,108 | (18 | ) | (64 | ) | ||||||||||
NAL ratio |
1.66 | % | 2.04 | % | 4.78 | % | ||||||||||||||
Nonperforming assets (NPAs) |
$ | 690,886 | $ | 844,752 | $ | 1,918,368 | (18 | ) | (64 | ) | ||||||||||
NPA ratio |
1.80 | % | 2.21 | % | 5.17 | % | ||||||||||||||
Allowance for loan and lease losses (ALLL) as a % of
total loans and leases at the end of period |
2.96 | 3.28 | 4.00 | |||||||||||||||||
ALLL plus allowance for unfunded loan commitments
and letters of credit (ACL) as a % of total loans and
leases at the end of period |
3.07 | 3.39 | 4.14 | |||||||||||||||||
ACL as a % of NALs |
185 | 166 | 87 | |||||||||||||||||
ACL as a % of NPAs |
170 | 153 | 80 | |||||||||||||||||
Tier 1 leverage ratio (7) |
9.80 | 9.41 | 10.05 | |||||||||||||||||
Tier 1 common risk-based capital ratio(7) |
9.75 | 9.29 | 6.53 | |||||||||||||||||
Tier 1 risk-based capital ratio (7) |
12.04 | 11.55 | 11.97 | |||||||||||||||||
Total risk-based capital ratio (7) |
14.85 | 14.46 | 14.28 | |||||||||||||||||
Tangible common equity / risk-weighted assets ratio |
9.51 | 9.26 | 7.19 | |||||||||||||||||
Tangible equity / tangible assets ratio(8) |
8.51 | 8.24 | 9.26 | |||||||||||||||||
Tangible common equity / tangible assets ratio(9) |
7.81 | 7.56 | 5.96 |
1
Notes to the Quarterly Key Statistics |
||
(1) | Comparisons for all presented periods are impacted by a number of factors. Refer to
Significant Items. |
|
(2) | For all periods presented, the impact of the convertible preferred stock issued in
2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to
Huntingtons 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. |
|
(3) | Net income excluding expense for amortization of intangibles for the period divided
by average tangible shareholders equity. Average tangible shareholders equity equals
average total shareholders equity less average intangible assets and goodwill. Expense for
amortization of intangibles and average intangible assets are net of deferred tax liability,
and calculated assuming a 35% tax rate. |
|
(4) | On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate. |
|
(5) | Noninterest expense less amortization of intangibles and goodwill impairment divided
by the sum of FTE net interest income and noninterest income excluding securities gains
(losses). |
|
(6) | Includes noninterest-bearing and interest-bearing demand deposits, money market
deposits, savings and other domestic deposits, and core certificates of deposit. |
|
(7) | March 31, 2011, figures are estimated. Based on an interim decision by the banking
agencies on December 14, 2006, Huntington has excluded the impact of adopting ASC Topic 715,
Compensation Retirement Benefits, from the regulatory capital calculations. |
|
(8) | Tangible equity (total equity less goodwill and other intangible assets) divided by
tangible assets (total assets less goodwill and other intangible assets). Other intangible
assets are net of deferred tax liability, and calculated assuming a 35% tax rate. |
|
(9) | Tangible common equity (total common equity less goodwill and other intangible
assets) divided by tangible assets (total assets less goodwill and other intangible assets).
Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax
rate. |
2
Change | ||||||||||||||||||||
2011 | 2010 | March 11 vs 10 | ||||||||||||||||||
(dollar amounts in thousands, except number of shares) | March 31, | December 31, | March 31, | Amount | Percent | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
$ | 1,208,820 | $ | 847,888 | $ | 1,310,640 | $ | (101,820 | ) | (8 | )% | |||||||||
Interest-bearing deposits in banks |
129,999 | 135,038 | 364,082 | (234,083 | ) | (64 | ) | |||||||||||||
Trading account securities |
164,489 | 185,404 | 150,463 | 14,026 | 9 | |||||||||||||||
Loans held for sale |
164,282 | 793,285 | 327,408 | (163,126 | ) | (50 | ) | |||||||||||||
Available-for-sale and other securities |
9,322,434 | 9,895,244 | 8,946,364 | 376,070 | 4 | |||||||||||||||
Loans and leases(1) |
38,245,836 | 38,106,507 | 36,931,681 | 1,314,155 | 4 | |||||||||||||||
Allowance for loan and lease losses |
(1,133,226 | ) | (1,249,008 | ) | (1,477,969 | ) | 344,743 | (23 | ) | |||||||||||
Net loans and leases |
37,112,610 | 36,857,499 | 35,453,712 | 1,658,898 | 5 | |||||||||||||||
Bank owned life insurance |
1,471,099 | 1,458,224 | 1,422,874 | 48,225 | 3 | |||||||||||||||
Premises and equipment |
500,736 | 491,602 | 491,573 | 9,163 | 2 | |||||||||||||||
Goodwill |
444,268 | 444,268 | 444,268 | | | |||||||||||||||
Other intangible assets |
215,251 | 228,620 | 273,952 | (58,701 | ) | (21 | ) | |||||||||||||
Accrued income and other assets |
2,214,521 | 2,482,570 | 2,681,462 | (466,941 | ) | (17 | ) | |||||||||||||
Total Assets |
$ | 52,948,509 | $ | 53,819,642 | $ | 51,866,798 | $ | 1,081,711 | 2 | % | ||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Deposits(2) |
$ | 41,366,487 | $ | 41,853,898 | $ | 40,303,467 | $ | 1,063,020 | 3 | % | ||||||||||
Short-term borrowings |
2,051,258 | 2,040,732 | 980,839 | 1,070,419 | 109 | |||||||||||||||
Federal Home Loan Bank advances |
21,379 | 172,519 | 157,895 | (136,516 | ) | (86 | ) | |||||||||||||
Other long-term debt |
1,900,555 | 2,144,092 | 2,727,745 | (827,190 | ) | (30 | ) | |||||||||||||
Subordinated notes |
1,487,566 | 1,497,216 | 1,266,907 | 220,659 | 17 | |||||||||||||||
Accrued expenses and other liabilities |
1,082,665 | 1,130,643 | 1,060,259 | 22,406 | 2 | |||||||||||||||
Total Liabilities |
47,909,910 | 48,839,100 | 46,497,112 | 1,412,798 | 3 | |||||||||||||||
Shareholders Equity |
||||||||||||||||||||
Preferred stock authorized 6,617,808 shares- |
||||||||||||||||||||
5.00% Series B Non-voting, Cumulative Preferred Stock, par value of $0.01 and liquidation value
per share of $1,000 |
| | 1,329,186 | (1,329,186 | ) | (100 | ) | |||||||||||||
8.50% Series A Non-cumulative Perpetual Convertible Preferred Stock, par value and liquidation
value per share of $1,000 |
362,507 | 362,507 | 362,507 | | | |||||||||||||||
Common stock - |
||||||||||||||||||||
Par value of $0.01 |
8,643 | 8,642 | 7,174 | 1,469 | 20 | |||||||||||||||
Capital surplus |
7,584,367 | 7,630,093 | 6,735,472 | 848,895 | 13 | |||||||||||||||
Less treasury shares, at cost |
(8,647 | ) | (8,771 | ) | (9,019 | ) | 372 | (4 | ) | |||||||||||
Accumulated other comprehensive income (loss): |
||||||||||||||||||||
Unrealized losses on investment securities |
(96,320 | ) | (101,717 | ) | (84,334 | ) | (11,986 | ) | 14 | |||||||||||
Unrealized gains (losses) on cash flow hedging derivatives |
21,288 | 35,710 | 62,163 | (40,875 | ) | (66 | ) | |||||||||||||
Pension and other postretirement benefit adjustments |
(128,889 | ) | (131,489 | ) | (111,302 | ) | (17,587 | ) | 16 | |||||||||||
Retained earnings |
(2,704,350 | ) | (2,814,433 | ) | (2,922,161 | ) | 217,811 | (7 | ) | |||||||||||
Total Shareholders Equity |
5,038,599 | 4,980,542 | 5,369,686 | (331,087 | ) | (6 | ) | |||||||||||||
Total Liabilities and Shareholders Equity |
$ | 52,948,509 | $ | 53,819,642 | $ | 51,866,798 | $ | 1,081,711 | 2 | % | ||||||||||
Common shares authorized (par value of $0.01) |
1,500,000,000 | 1,500,000,000 | 1,000,000,000 | |||||||||||||||||
Common shares issued |
864,279,984 | 864,195,369 | 717,382,476 | |||||||||||||||||
Common shares outstanding |
863,398,578 | 863,319,435 | 716,556,641 | |||||||||||||||||
Treasury shares outstanding |
881,406 | 875,934 | 825,835 | |||||||||||||||||
Preferred shares issued |
1,967,071 | 1,967,071 | 1,967,071 | |||||||||||||||||
Preferred shares outstanding |
362,507 | 362,507 | 1,760,578 |
(1) | See page 2 for detail of loans and leases. |
|
(2) | See page 3 for detail of deposits. |
3
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||||||||
Ending Balances by Type: |
||||||||||||||||||||||||||||||||||||||||
Commercial:(1) |
||||||||||||||||||||||||||||||||||||||||
Commercial and industrial |
$ | 13,299 | 35 | % | $ | 13,063 | 34 | % | $ | 12,425 | 33 | % | $ | 12,392 | 34 | % | $ | 12,245 | 33 | % | ||||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||||||||||||||||||
Construction |
587 | 2 | 650 | 2 | 738 | 2 | 1,106 | 3 | 1,443 | 4 | ||||||||||||||||||||||||||||||
Commercial |
5,711 | 15 | 6,001 | 16 | 6,174 | 16 | 6,078 | 16 | 6,013 | 16 | ||||||||||||||||||||||||||||||
Commercial real estate |
6,298 | 17 | 6,651 | 18 | 6,912 | 18 | 7,184 | 19 | 7,456 | 20 | ||||||||||||||||||||||||||||||
Total commercial |
19,597 | 52 | 19,714 | 52 | 19,337 | 51 | 19,576 | 53 | 19,701 | 53 | ||||||||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||||||||||||||
Automobile |
5,802 | 15 | 5,614 | 15 | 5,385 | 14 | 4,847 | 13 | 4,403 | 12 | ||||||||||||||||||||||||||||||
Home equity |
7,784 | 20 | 7,713 | 20 | 7,690 | 21 | 7,510 | 20 | 7,514 | 20 | ||||||||||||||||||||||||||||||
Residential mortgage |
4,517 | 12 | 4,500 | 12 | 4,511 | 12 | 4,354 | 12 | 4,614 | 12 | ||||||||||||||||||||||||||||||
Other consumer |
546 | 1 | 566 | 1 | 578 | 2 | 683 | 2 | 700 | 3 | ||||||||||||||||||||||||||||||
Total consumer |
18,649 | 48 | 18,393 | 48 | 18,164 | 49 | 17,394 | 47 | 17,231 | 47 | ||||||||||||||||||||||||||||||
Total loans and leases |
$ | 38,246 | 100 | % | $ | 38,107 | 100 | % | $ | 37,501 | 100 | % | $ | 36,970 | 100 | % | $ | 36,932 | 100 | % | ||||||||||||||||||||
Ending Balances by Business Segment: |
||||||||||||||||||||||||||||||||||||||||
Retail and Business Banking |
$ | 11,786 | 31 | % | $ | 11,717 | 31 | % | $ | 11,804 | 31 | % | $ | 11,772 | 32 | % | $ | 11,751 | 32 | % | ||||||||||||||||||||
Regional and Commercial Banking |
7,917 | 21 | 7,792 | 20 | 7,373 | 20 | 7,317 | 20 | 7,227 | 20 | ||||||||||||||||||||||||||||||
AFCRE |
13,154 | 34 | 13,283 | 35 | 13,167 | 35 | 12,931 | 35 | 12,739 | 34 | ||||||||||||||||||||||||||||||
WGH |
5,255 | 14 | 5,176 | 14 | 5,066 | 14 | 4,864 | 13 | 4,722 | 13 | ||||||||||||||||||||||||||||||
Treasury / Other(2) |
134 | | 139 | | 91 | | 86 | | 493 | 1 | ||||||||||||||||||||||||||||||
Total loans and leases |
$ | 38,246 | 100 | % | $ | 38,107 | 100 | % | $ | 37,501 | 100 | % | $ | 36,970 | 100 | % | $ | 36,932 | 100 | % | ||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||||||||||||||||||||||
Average Balances by Business Segment: |
||||||||||||||||||||||||||||||||||||||||
Retail and Business Banking |
$ | 11,780 | 31 | % | $ | 11,274 | 30 | % | $ | 11,817 | 32 | % | $ | 11,809 | 32 | % | $ | 11,779 | 32 | % | ||||||||||||||||||||
Regional and Commercial Banking |
7,824 | 21 | 7,657 | 20 | 7,419 | 20 | 7,257 | 20 | 7,322 | 20 | ||||||||||||||||||||||||||||||
AFCRE |
13,208 | 35 | 13,299 | 35 | 13,085 | 35 | 12,890 | 35 | 12,817 | 35 | ||||||||||||||||||||||||||||||
WGH |
5,192 | 13 | 5,050 | 14 | 4,894 | 13 | 4,729 | 12 | 4,631 | 12 | ||||||||||||||||||||||||||||||
Treasury / Other(2) |
94 | | 520 | 1 | | | 404 | 1 | 431 | 1 | ||||||||||||||||||||||||||||||
Total loans and leases |
$ | 38,098 | 100 | % | $ | 37,800 | 100 | % | $ | 37,215 | 100 | % | $ | 37,089 | 100 | % | $ | 36,980 | 100 | % | ||||||||||||||||||||
(1) | There were no commercial loans outstanding that would be considered a concentration
of lending to a particular industry. |
|
(2) | Comprised primarily of Franklin loans through the 2010 second quarter. |
4
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||||||||
Ending Balances by Type: |
||||||||||||||||||||||||||||||||||||||||
Demand deposits
noninterest-bearing |
$ | 7,597 | 18 | % | $ | 7,217 | 17 | % | $ | 6,926 | 17 | % | $ | 6,463 | 16 | % | $ | 6,938 | 17 | % | ||||||||||||||||||||
Demand deposits interest-bearing |
5,532 | 13 | 5,469 | 13 | 5,347 | 13 | 5,850 | 15 | 5,948 | 15 | ||||||||||||||||||||||||||||||
Money market deposits |
13,105 | 32 | 13,410 | 32 | 12,679 | 31 | 11,437 | 29 | 10,644 | 26 | ||||||||||||||||||||||||||||||
Savings and other domestic
deposits |
4,762 | 12 | 4,643 | 11 | 4,613 | 11 | 4,652 | 12 | 4,666 | 12 | ||||||||||||||||||||||||||||||
Core certificates of deposit |
8,208 | 20 | 8,525 | 20 | 8,765 | 21 | 8,974 | 23 | 9,441 | 23 | ||||||||||||||||||||||||||||||
Total core deposits |
39,204 | 95 | 39,264 | 93 | 38,330 | 93 | 37,376 | 95 | 37,637 | 93 | ||||||||||||||||||||||||||||||
Other domestic deposits of $250,000 or more |
531 | 1 | 675 | 2 | 730 | 2 | 678 | 2 | 684 | 2 | ||||||||||||||||||||||||||||||
Brokered deposits and negotiable CDs |
1,253 | 3 | 1,532 | 4 | 1,576 | 4 | 1,373 | 3 | 1,605 | 4 | ||||||||||||||||||||||||||||||
Deposits in foreign offices |
378 | 1 | 383 | 1 | 436 | 1 | 422 | | 377 | 1 | ||||||||||||||||||||||||||||||
Total deposits |
$ | 41,366 | 100 | % | $ | 41,854 | 100 | % | $ | 41,072 | 100 | % | $ | 39,849 | 100 | % | $ | 40,303 | 100 | % | ||||||||||||||||||||
Total core deposits: |
||||||||||||||||||||||||||||||||||||||||
Commercial |
$ | 12,785 | 33 | % | $ | 12,476 | 32 | % | $ | 12,262 | 32 | % | $ | 11,515 | 31 | % | $ | 11,844 | 31 | % | ||||||||||||||||||||
Personal |
26,419 | 67 | 26,788 | 68 | 26,068 | 68 | 25,861 | 69 | 25,793 | 69 | ||||||||||||||||||||||||||||||
Total core deposits |
$ | 39,204 | 100 | % | $ | 39,264 | 100 | % | $ | 38,330 | 100 | % | $ | 37,376 | 100 | % | $ | 37,637 | 100 | % | ||||||||||||||||||||
Ending Balances by Business Segment: |
||||||||||||||||||||||||||||||||||||||||
Retail and Business Banking |
$ | 28,984 | 70 | % | $ | 29,298 | 70 | % | $ | 28,808 | 70 | % | $ | 28,542 | 72 | % | $ | 28,335 | 70 | % | ||||||||||||||||||||
Regional and Commercial Banking |
3,589 | 9 | 3,538 | 8 | 3,245 | 8 | 2,861 | 7 | 3,003 | 7 | ||||||||||||||||||||||||||||||
AFCRE |
804 | 2 | 753 | 2 | 739 | 2 | 725 | 2 | 653 | 2 | ||||||||||||||||||||||||||||||
WGH |
7,363 | 17 | 7,449 | 18 | 7,184 | 17 | 6,734 | 17 | 7,134 | 18 | ||||||||||||||||||||||||||||||
Treasury / Other(1) |
626 | 2 | 816 | 2 | 1,096 | 3 | 987 | 2 | 1,178 | 3 | ||||||||||||||||||||||||||||||
Total deposits |
$ | 41,366 | 100 | % | $ | 41,854 | 100 | % | $ | 41,072 | 100 | % | $ | 39,849 | 100 | % | $ | 40,303 | 100 | % | ||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||||||||||||||||||||||
Average Balances by Business Segment: |
||||||||||||||||||||||||||||||||||||||||
Retail and Business Banking |
$ | 29,139 | 70 | % | $ | 29,241 | 70 | % | $ | 28,874 | 71 | % | $ | 28,592 | 71 | % | $ | 28,371 | 71 | % | ||||||||||||||||||||
Regional and Commercial Banking |
3,666 | 9 | 3,471 | 8 | 3,090 | 8 | 3,001 | 7 | 3,130 | 8 | ||||||||||||||||||||||||||||||
AFCRE |
763 | 2 | 752 | 2 | 714 | 1 | 672 | 2 | 636 | 1 | ||||||||||||||||||||||||||||||
WGH |
7,394 | 17 | 7,333 | 18 | 6,867 | 17 | 6,994 | 17 | 6,759 | 17 | ||||||||||||||||||||||||||||||
Treasury / Other (1) |
702 | 2 | 907 | 2 | 1,101 | 3 | 1,108 | 3 | 1,327 | 3 | ||||||||||||||||||||||||||||||
Total deposits |
$ | 41,664 | 100 | % | $ | 41,704 | 100 | % | $ | 40,646 | 100 | % | $ | 40,367 | 100 | % | $ | 40,223 | 100 | % | ||||||||||||||||||||
(1) | Comprised primarily of national market deposits. |
5
Change | ||||||||||||||||||||||||||||
2011 | 2010 | 1Q11 vs 1Q10 | ||||||||||||||||||||||||||
(dollar amounts in millions) | First | Fourth | Third | Second | First | Amount | Percent | |||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Interest-bearing deposits in banks |
$ | 130 | $ | 218 | $ | 282 | $ | 309 | $ | 348 | $ | (218 | ) | (63 | )% | |||||||||||||
Trading account securities |
144 | 297 | 110 | 127 | 96 | 48 | 50 | |||||||||||||||||||||
Loans held for sale |
420 | 779 | 663 | 323 | 346 | 74 | 21 | |||||||||||||||||||||
Available-for-sale and other securities: |
||||||||||||||||||||||||||||
Taxable |
9,108 | 9,747 | 8,876 | 8,369 | 8,027 | 1,081 | 13 | |||||||||||||||||||||
Tax-exempt |
445 | 449 | 365 | 389 | 443 | 2 | | |||||||||||||||||||||
Total available-for-sale and other securities |
9,553 | 10,196 | 9,241 | 8,758 | 8,470 | 1,083 | 13 | |||||||||||||||||||||
Loans and leases:(1) |
||||||||||||||||||||||||||||
Commercial: |
||||||||||||||||||||||||||||
Commercial and industrial |
13,121 | 12,767 | 12,393 | 12,244 | 12,314 | 807 | 7 | |||||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||||||
Construction |
611 | 716 | 989 | 1,279 | 1,409 | (798 | ) | (57 | ) | |||||||||||||||||||
Commercial |
5,913 | 6,082 | 6,084 | 6,085 | 6,268 | (355 | ) | (6 | ) | |||||||||||||||||||
Commercial real estate |
6,524 | 6,798 | 7,073 | 7,364 | 7,677 | (1,153 | ) | (15 | ) | |||||||||||||||||||
Total commercial |
19,645 | 19,565 | 19,466 | 19,608 | 19,991 | (346 | ) | (2 | ) | |||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Automobile |
5,701 | 5,520 | 5,140 | 4,634 | 4,250 | 1,451 | 34 | |||||||||||||||||||||
Home equity |
7,728 | 7,709 | 7,567 | 7,544 | 7,539 | 189 | 3 | |||||||||||||||||||||
Residential mortgage |
4,465 | 4,430 | 4,389 | 4,608 | 4,477 | (12 | ) | | ||||||||||||||||||||
Other consumer |
559 | 576 | 653 | 695 | 723 | (164 | ) | (23 | ) | |||||||||||||||||||
Total consumer |
18,453 | 18,235 | 17,749 | 17,481 | 16,989 | 1,464 | 9 | |||||||||||||||||||||
Total loans and leases |
38,098 | 37,800 | 37,215 | 37,089 | 36,980 | 1,118 | 3 | |||||||||||||||||||||
Allowance for loan and lease losses |
(1,231 | ) | (1,323 | ) | (1,384 | ) | (1,506 | ) | (1,510 | ) | 279 | (18 | ) | |||||||||||||||
Net loans and leases |
36,867 | 36,477 | 35,831 | 35,583 | 35,470 | 1,397 | 4 | |||||||||||||||||||||
Total earning assets |
48,345 | 49,290 | 47,511 | 46,606 | 46,240 | 2,105 | 5 | |||||||||||||||||||||
Cash and due from banks |
1,299 | 1,187 | 1,618 | 1,509 | 1,761 | (462 | ) | (26 | ) | |||||||||||||||||||
Intangible assets |
665 | 679 | 695 | 710 | 725 | (60 | ) | (8 | ) | |||||||||||||||||||
All other assets |
4,291 | 4,313 | 4,277 | 4,384 | 4,486 | (195 | ) | (4 | ) | |||||||||||||||||||
Total Assets |
$ | 53,369 | $ | 54,146 | $ | 52,717 | $ | 51,703 | $ | 51,702 | $ | 1,667 | 3 | % | ||||||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||||||
Demand deposits noninterest-bearing |
$ | 7,333 | $ | 7,188 | $ | 6,768 | $ | 6,849 | $ | 6,627 | $ | 706 | 11 | % | ||||||||||||||
Demand deposits interest-bearing |
5,357 | 5,317 | 5,319 | 5,971 | 5,716 | (359 | ) | (6 | ) | |||||||||||||||||||
Money market deposits |
13,492 | 13,158 | 12,336 | 11,103 | 10,340 | 3,152 | 30 | |||||||||||||||||||||
Savings and other domestic deposits |
4,701 | 4,640 | 4,639 | 4,677 | 4,613 | 88 | 2 | |||||||||||||||||||||
Core certificates of deposit |
8,391 | 8,646 | 8,948 | 9,199 | 9,976 | (1,585 | ) | (16 | ) | |||||||||||||||||||
Total core deposits |
39,274 | 38,949 | 38,010 | 37,799 | 37,272 | 2,002 | 5 | |||||||||||||||||||||
Other domestic deposits of $250,000 or more |
606 | 737 | 690 | 661 | 698 | (92 | ) | (13 | ) | |||||||||||||||||||
Brokered deposits and negotiable CDs |
1,410 | 1,575 | 1,495 | 1,505 | 1,843 | (433 | ) | (23 | ) | |||||||||||||||||||
Deposits in foreign offices |
374 | 443 | 451 | 402 | 410 | (36 | ) | (9 | ) | |||||||||||||||||||
Total deposits |
41,664 | 41,704 | 40,646 | 40,367 | 40,223 | 1,441 | 4 | |||||||||||||||||||||
Short-term borrowings |
2,134 | 2,134 | 1,739 | 966 | 927 | 1,207 | 130 | |||||||||||||||||||||
Federal Home Loan Bank advances |
30 | 112 | 188 | 212 | 179 | (149 | ) | (83 | ) | |||||||||||||||||||
Subordinated notes and other long-term debt |
3,525 | 3,558 | 3,672 | 3,836 | 4,062 | (537 | ) | (13 | ) | |||||||||||||||||||
Total interest bearing liabilities |
40,020 | 40,320 | 39,477 | 38,532 | 38,764 | 1,256 | 3 | |||||||||||||||||||||
All other liabilities |
994 | 993 | 952 | 924 | 947 | 47 | 5 | |||||||||||||||||||||
Shareholders equity |
5,022 | 5,645 | 5,520 | 5,398 | 5,364 | (342 | ) | (6 | ) | |||||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 53,369 | $ | 54,146 | $ | 52,717 | $ | 51,703 | $ | 51,702 | $ | 1,667 | 3 | % | ||||||||||||||
(1) | Includes nonaccrual loans. |
6
2011 | 2010 | |||||||||||||||||||
Fully-taxable equivalent basis(1) | First | Fourth | Third | Second | First | |||||||||||||||
Assets |
||||||||||||||||||||
Interest-bearing deposits in banks |
0.11 | % | 0.63 | % | 0.21 | % | 0.20 | % | 0.18 | % | ||||||||||
Trading account securities |
1.37 | 1.98 | 1.20 | 1.74 | 2.15 | |||||||||||||||
Loans held for sale |
4.08 | 4.01 | 5.75 | 5.02 | 4.98 | |||||||||||||||
Available-for-sale and other securities: |
||||||||||||||||||||
Taxable |
2.53 | 2.42 | 2.77 | 2.85 | 2.94 | |||||||||||||||
Tax-exempt |
4.70 | 4.59 | 4.70 | 4.62 | 4.37 | |||||||||||||||
Total available-for-sale and other securities |
2.63 | 2.52 | 2.84 | 2.93 | 3.01 | |||||||||||||||
Loans and leases:(2)(3) |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial |
4.57 | 4.94 | 5.14 | 5.31 | 5.60 | |||||||||||||||
Commercial real estate: |
||||||||||||||||||||
Construction |
3.36 | 3.07 | 2.83 | 2.61 | 2.66 | |||||||||||||||
Commercial |
3.93 | 3.92 | 3.91 | 3.69 | 3.60 | |||||||||||||||
Commercial real estate |
3.88 | 3.83 | 3.76 | 3.49 | 3.43 | |||||||||||||||
Total commercial |
4.34 | 4.56 | 4.64 | 4.63 | 4.76 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile |
5.22 | 5.46 | 5.79 | 6.46 | 6.63 | |||||||||||||||
Home equity |
4.54 | 4.64 | 4.74 | 5.26 | 5.59 | |||||||||||||||
Residential mortgage |
4.76 | 4.82 | 4.97 | 4.70 | 4.89 | |||||||||||||||
Other consumer |
7.85 | 7.92 | 7.10 | 6.84 | 7.00 | |||||||||||||||
Total consumer |
4.90 | 5.04 | 5.19 | 5.49 | 5.73 | |||||||||||||||
Total loans and leases |
4.61 | 4.79 | 4.90 | 5.04 | 5.21 | |||||||||||||||
Total earning assets |
4.24 | % | 4.29 | % | 4.49 | % | 4.63 | % | 4.82 | % | ||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand deposits noninterest-bearing |
| % | | % | | % | | % | | % | ||||||||||
Demand deposits interest-bearing |
0.09 | 0.13 | 0.17 | 0.22 | 0.22 | |||||||||||||||
Money market deposits |
0.50 | 0.77 | 0.86 | 0.93 | 1.00 | |||||||||||||||
Savings and other domestic deposits |
0.81 | 0.90 | 0.99 | 1.07 | 1.19 | |||||||||||||||
Core certificates of deposit |
2.07 | 2.11 | 2.31 | 2.68 | 2.93 | |||||||||||||||
Total core deposits |
0.89 | 1.05 | 1.18 | 1.33 | 1.51 | |||||||||||||||
Other domestic deposits of $250,000 or more |
1.08 | 1.21 | 1.28 | 1.37 | 1.44 | |||||||||||||||
Brokered deposits and negotiable CDs |
1.11 | 1.53 | 2.21 | 2.56 | 2.49 | |||||||||||||||
Deposits in foreign offices |
0.20 | 0.17 | 0.22 | 0.19 | 0.19 | |||||||||||||||
Total deposits |
0.90 | 1.06 | 1.21 | 1.37 | 1.55 | |||||||||||||||
Short-term borrowings |
0.18 | 0.20 | 0.22 | 0.21 | 0.21 | |||||||||||||||
Federal Home Loan Bank advances |
2.98 | 0.95 | 1.25 | 1.93 | 2.71 | |||||||||||||||
Subordinated notes and other long-term debt |
2.34 | 2.15 | 2.15 | 2.05 | 2.25 | |||||||||||||||
Total interest bearing liabilities |
0.99 | 1.11 | 1.25 | 1.41 | 1.60 | |||||||||||||||
Net interest rate spread |
3.21 | 3.16 | 3.24 | 3.22 | 3.22 | |||||||||||||||
Impact of noninterest-bearing funds on margin |
0.21 | 0.21 | 0.21 | 0.24 | 0.25 | |||||||||||||||
Net interest margin |
3.42 | % | 3.37 | % | 3.45 | % | 3.46 | % | 3.47 | % | ||||||||||
(1) | Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See
page 8 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. |
7
2011 | 2010 | 1Q11 vs 1Q10 | ||||||||||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | First | Fourth | Third | Second | First | Amount | Percent | |||||||||||||||||||||
Interest income |
$ | 501,877 | $ | 528,291 | $ | 534,669 | $ | 535,653 | $ | 546,779 | $ | (44,902 | ) | (8 | )% | |||||||||||||
Interest expense |
97,547 | 112,997 | 124,707 | 135,997 | 152,886 | (55,339 | ) | (36 | ) | |||||||||||||||||||
Net interest income |
404,330 | 415,294 | 409,962 | 399,656 | 393,893 | 10,437 | 3 | |||||||||||||||||||||
Provision for credit losses |
49,385 | 86,973 | 119,160 | 193,406 | 235,008 | (185,623 | ) | (79 | ) | |||||||||||||||||||
Net interest income after provision for credit losses |
354,945 | 328,321 | 290,802 | 206,250 | 158,885 | 196,060 | 123 | |||||||||||||||||||||
Service charges on deposit accounts |
54,324 | 55,810 | 65,932 | 75,934 | 69,339 | (15,015 | ) | (22 | ) | |||||||||||||||||||
Mortgage banking income |
22,684 | 53,169 | 52,045 | 45,530 | 25,038 | (2,354 | ) | (9 | ) | |||||||||||||||||||
Trust services |
30,742 | 29,394 | 26,997 | 28,399 | 27,765 | 2,977 | 11 | |||||||||||||||||||||
Electronic banking |
28,786 | 28,900 | 28,090 | 28,107 | 25,137 | 3,649 | 15 | |||||||||||||||||||||
Insurance income |
17,945 | 19,678 | 19,801 | 18,074 | 18,860 | (915 | ) | (5 | ) | |||||||||||||||||||
Brokerage income |
20,511 | 16,953 | 16,575 | 18,425 | 16,902 | 3,609 | 21 | |||||||||||||||||||||
Bank owned life insurance income |
14,819 | 16,113 | 14,091 | 14,392 | 16,470 | (1,651 | ) | (10 | ) | |||||||||||||||||||
Automobile operating lease income |
8,847 | 10,463 | 11,356 | 11,842 | 12,303 | (3,456 | ) | (28 | ) | |||||||||||||||||||
Securities (losses) gains |
40 | (103 | ) | (296 | ) | 156 | (31 | ) | 71 | N.R. | ||||||||||||||||||
Other income |
38,247 | 33,843 | 32,552 | 28,784 | 29,069 | 9,178 | 32 | |||||||||||||||||||||
Total noninterest income |
236,945 | 264,220 | 267,143 | 269,643 | 240,852 | (3,907 | ) | (2 | ) | |||||||||||||||||||
Personnel costs |
219,028 | 212,184 | 208,272 | 194,875 | 183,642 | 35,386 | 19 | |||||||||||||||||||||
Outside data processing and other services
|
40,282 | 40,943 | 38,553 | 40,670 | 39,082 | 1,200 | 3 | |||||||||||||||||||||
Net occupancy |
28,436 | 26,670 | 26,718 | 25,388 | 29,086 | (650 | ) | (2 | ) | |||||||||||||||||||
Deposit and other insurance expense |
17,896 | 23,320 | 23,406 | 26,067 | 24,755 | (6,859 | ) | (28 | ) | |||||||||||||||||||
Professional services |
13,465 | 21,021 | 20,672 | 24,388 | 22,697 | (9,232 | ) | (41 | ) | |||||||||||||||||||
Equipment |
22,477 | 22,060 | 21,651 | 21,585 | 20,624 | 1,853 | 9 | |||||||||||||||||||||
Marketing |
16,895 | 16,168 | 20,921 | 17,682 | 11,153 | 5,742 | 51 | |||||||||||||||||||||
Amortization of intangibles |
13,370 | 15,046 | 15,145 | 15,141 | 15,146 | (1,776 | ) | (12 | ) | |||||||||||||||||||
OREO and foreclosure expense |
3,931 | 10,502 | 12,047 | 4,970 | 11,530 | (7,599 | ) | (66 | ) | |||||||||||||||||||
Automobile operating lease expense |
6,836 | 8,142 | 9,159 | 9,667 | 10,066 | (3,230 | ) | (32 | ) | |||||||||||||||||||
Other expense |
48,083 | 38,537 | 30,765 | 33,377 | 30,312 | 17,771 | 59 | |||||||||||||||||||||
Total noninterest expense |
430,699 | 434,593 | 427,309 | 413,810 | 398,093 | 32,606 | 8 | |||||||||||||||||||||
Income before income taxes |
161,191 | 157,948 | 130,636 | 62,083 | 1,644 | 159,547 | 9,705 | |||||||||||||||||||||
Provision (benefit) for income taxes |
34,745 | 35,048 | 29,690 | 13,319 | (38,093 | ) | 72,838 | N.R | ||||||||||||||||||||
Net income |
$ | 126,446 | $ | 122,900 | $ | 100,946 | $ | 48,764 | $ | 39,737 | $ | 86,709 | 218 | |||||||||||||||
Dividends on preferred shares |
7,703 | 83,754 | 29,495 | 29,426 | 29,357 | (21,654 | ) | (74 | ) | |||||||||||||||||||
Net income applicable to common shares |
$ | 118,743 | $ | 39,146 | $ | 71,451 | $ | 19,338 | $ | 10,380 | $ | 108,363 | 1,044 | % | ||||||||||||||
Average common shares basic |
863,359 | 757,924 | 716,911 | 716,580 | 716,320 | 147,039 | 21 | % | ||||||||||||||||||||
Average common shares diluted(2) |
867,237 | 760,582 | 719,567 | 719,387 | 718,593 | 148,644 | 21 | |||||||||||||||||||||
Per common share |
||||||||||||||||||||||||||||
Net income basic |
$ | 0.14 | $ | 0.05 | $ | 0.10 | $ | 0.03 | $ | 0.01 | $ | 0.13 | 1,300 | % | ||||||||||||||
Net income diluted |
0.14 | 0.05 | 0.10 | 0.03 | 0.01 | 0.13 | 1,300 | |||||||||||||||||||||
Cash dividends declared |
0.01 | 0.01 | 0.01 | 0.01 | 0.01 | | | |||||||||||||||||||||
Return on average total assets |
0.96 | % | 0.90 | % | 0.76 | % | 0.38 | % | 0.31 | % | 0.65 | % | 210 | |||||||||||||||
Return on average common shareholders equity |
10.3 | 3.8 | 7.4 | 2.1 | 1.1 | 9.2 | 836 | |||||||||||||||||||||
Return on average common tangible shareholders equity(3) |
12.7 | 5.6 | 10.0 | 3.8 | 2.7 | 10.0 | 370 | |||||||||||||||||||||
Net interest margin(4) |
3.42 | 3.37 | 3.45 | 3.46 | 3.47 | (0.05 | ) | (1 | ) | |||||||||||||||||||
Efficiency ratio(5) |
64.7 | 61.4 | 60.6 | 59.4 | 60.1 | 4.6 | 8 | |||||||||||||||||||||
Effective tax rate |
21.6 | 22.2 | 22.7 | 21.5 | (2,317.1 | ) | 2,338.7 | N.R | ||||||||||||||||||||
Revenue fully-taxable equivalent (FTE) |
||||||||||||||||||||||||||||
Net interest income |
$ | 404,330 | $ | 415,294 | $ | 409,962 | $ | 399,656 | $ | 393,893 | $ | 10,437 | 3 | |||||||||||||||
FTE adjustment |
3,945 | 3,708 | 2,631 | 2,490 | 2,248 | 1,697 | 75 | |||||||||||||||||||||
Net interest income(4) |
408,275 | 419,002 | 412,593 | 402,146 | 396,141 | 12,134 | 3 | |||||||||||||||||||||
Noninterest income |
236,945 | 264,220 | 267,143 | 269,643 | 240,852 | (3,907 | ) | (2 | ) | |||||||||||||||||||
Total revenue(4) |
$ | 645,220 | $ | 683,222 | $ | 679,736 | $ | 671,789 | $ | 636,993 | $ | 8,227 | 1 | % | ||||||||||||||
N.R. Not relevant, as denominator of calculation is a loss in prior period compared with income
in current period. |
8
(1) | Comparisons for presented periods are impacted by a number of factors.
Refer to Significant Items for additional discussion regarding these key factors. |
|
(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
Huntingtons participation in the voluntary Capital Purchase Program was excluded from the
diluted share calculation because the result was more than basic earnings per common share
(anti-dilutive) for the periods. The convertible preferred stock and warrants were
repurchased in December 2010, and January 2011, respectively. |
|
(3) | Net income excluding expense for amortization of intangibles for the period divided
by average tangible shareholders equity. Average tangible shareholders equity equals
average total shareholders equity less average intangible assets and goodwill. Expense for
amortization of intangibles and average intangible assets are net of deferred tax liability,
and calculated assuming a 35% tax rate. |
|
(4) | On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate. |
|
(5) | Noninterest expense less amortization of intangibles and goodwill impairment divided
by the sum of FTE net interest income and noninterest income excluding securities gains
(losses). |
9
2011 | 2010 | 1Q11 vs 1Q10 | ||||||||||||||||||||||||||
(dollar amounts in thousands, except as noted) | First | Fourth | Third | Second | First | Amount | Percent | |||||||||||||||||||||
Mortgage Banking Income |
||||||||||||||||||||||||||||
Origination and secondary marketing |
$ | 19,799 | $ | 48,236 | $ | 35,840 | $ | 19,778 | $ | 13,586 | $ | 6,213 | 46 | % | ||||||||||||||
Servicing fees |
12,546 | 11,474 | 12,053 | 12,178 | 12,418 | 128 | 1 | |||||||||||||||||||||
Amortization of capitalized servicing |
(9,863 | ) | (13,960 | ) | (13,003 | ) | (10,137 | ) | (10,065 | ) | 202 | (2 | ) | |||||||||||||||
Other mortgage banking income |
3,769 | 4,789 | 4,966 | 3,664 | 3,210 | 559 | 17 | |||||||||||||||||||||
Subtotal |
26,251 | 50,539 | 39,856 | 25,483 | 19,149 | 7,102 | 37 | |||||||||||||||||||||
MSR valuation adjustment(1) |
774 | 31,319 | (12,047 | ) | (26,221 | ) | (5,772 | ) | 6,546 | N.R. | ||||||||||||||||||
Net trading (losses) gains related to MSR hedging |
(4,341 | ) | (28,689 | ) | 24,236 | 46,268 | 11,661 | (16,002 | ) | N.R. | ||||||||||||||||||
Total mortgage banking income |
$ | 22,684 | $ | 53,169 | $ | 52,045 | $ | 45,530 | $ | 25,038 | $ | (2,354 | ) | (9) | % | |||||||||||||
Mortgage originations (in millions) |
$ | 929 | $ | 1,827 | $ | 1,619 | $ | 1,161 | $ | 869 | $ | 60 | 7 | % | ||||||||||||||
Average trading account securities used to hedge MSRs (in millions) |
46 | 184 | 23 | 28 | 18 | 28 | 156 | |||||||||||||||||||||
Capitalized mortgage servicing rights(2) |
202,559 | 196,194 | 161,594 | 179,138 | 207,552 | (4,993 | ) | (2 | ) | |||||||||||||||||||
Total mortgages serviced for others (in millions)(2) |
16,456 | 15,933 | 15,713 | 15,954 | 15,968 | 488 | 3 | |||||||||||||||||||||
MSR % of investor servicing portfolio(2) |
1.23 | % | 1.23 | % | 1.03 | % | 1.12 | % | 1.30 | % | (0.07 | )% | (5 | ) | ||||||||||||||
Net impact of MSR hedging |
||||||||||||||||||||||||||||
MSR valuation adjustment(1) |
$ | 774 | $ | 31,319 | $ | (12,047 | ) | $ | (26,221 | ) | $ | (5,772 | ) | $ | 6,546 | N.R. | % | |||||||||||
Net trading (losses) gains related to MSR
hedging |
(4,341 | ) | (28,689 | ) | 24,236 | 46,268 | 11,661 | (16,002 | ) | N.R. | ||||||||||||||||||
Net interest income related to MSR hedging |
99 | 713 | 32 | 58 | 169 | (70 | ) | (41 | ) | |||||||||||||||||||
Net (loss) gain of MSR hedging |
$ | (3,468 | ) | $ | 3,343 | $ | 12,221 | $ | 20,105 | $ | 6,058 | $ | (9,526 | ) | (157 | )% | ||||||||||||
N.R. Not relevant, as denominator of calculation is a loss in prior period compared
with income in 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. |
10
2011 | 2010 | |||||||||||||||||||
(dollar amounts in thousands) | First | Fourth | Third | Second | First | |||||||||||||||
Allowance for loan and lease losses, beginning of period |
$ | 1,249,008 | $ | 1,336,352 | $ | 1,402,160 | $ | 1,477,969 | $ | 1,482,479 | ||||||||||
Loan and lease losses |
(199,007 | ) | (205,587 | ) | (221,144 | ) | (312,954 | ) | (264,222 | ) | ||||||||||
Recoveries of loans previously charged off |
33,924 | 33,336 | 36,630 | 33,726 | 25,741 | |||||||||||||||
Net loan and lease losses |
(165,083 | ) | (172,251 | ) | (184,514 | ) | (279,228 | ) | (238,481 | ) | ||||||||||
Provision for loan and lease losses |
49,301 | 84,907 | 118,788 | 203,633 | 233,971 | |||||||||||||||
Allowance of assets sold |
| | (82 | ) | (214 | ) | | |||||||||||||
Allowance for loan and lease losses, end of period |
$ | 1,133,226 | $ | 1,249,008 | $ | 1,336,352 | $ | 1,402,160 | $ | 1,477,969 | ||||||||||
Allowance for unfunded loan commitments and letters of credit, beginning of period |
$ | 42,127 | $ | 40,061 | $ | 39,689 | $ | 49,916 | $ | 48,879 | ||||||||||
Provision for (reduction in) unfunded loan commitments and
letters of credit losses |
84 | 2,066 | 372 | (10,227 | ) | 1,037 | ||||||||||||||
Allowance for unfunded loan commitments and letters of credit, end of period |
$ | 42,211 | $ | 42,127 | $ | 40,061 | $ | 39,689 | $ | 49,916 | ||||||||||
Total allowance for credit losses, end of period |
$ | 1,175,437 | $ | 1,291,135 | $ | 1,376,413 | $ | 1,441,849 | $ | 1,527,885 | ||||||||||
Allowance for loan and lease losses (ALLL) as % of: |
||||||||||||||||||||
Total loans and leases |
2.96 | % | 3.28 | % | 3.56 | % | 3.79 | % | 4.00 | % | ||||||||||
Nonaccrual loans and leases (NALs) |
178 | 161 | 136 | 117 | 84 | |||||||||||||||
Nonperforming assets (NPAs) |
164 | 148 | 121 | 89 | 77 | |||||||||||||||
Total allowance for credit losses (ACL) as % of: |
||||||||||||||||||||
Total loans and leases |
3.07 | % | 3.39 | % | 3.67 | % | 3.90 | % | 4.14 | % | ||||||||||
Nonaccrual loans and leases |
185 | 166 | 140 | 120 | 87 | |||||||||||||||
Nonperforming assets |
170 | 153 | 125 | 91 | 80 |
11
2011 | 2010 | |||||||||||||||||||
(dollar amounts in thousands) | First | Fourth | Third | Second | First | |||||||||||||||
Net charge-offs by loan and lease type: |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial |
$ | 42,191 | $ | 59,124 | $ | 62,241 | $ | 58,128 | $ | 75,439 | ||||||||||
Commercial real estate: |
||||||||||||||||||||
Construction |
28,400 | 11,084 | 17,936 | 45,562 | 34,426 | |||||||||||||||
Commercial |
39,283 | 33,787 | 45,725 | 36,169 | 50,873 | |||||||||||||||
Commercial real estate |
67,683 | 44,871 | 63,661 | 81,731 | 85,299 | |||||||||||||||
Total commercial |
109,874 | 103,995 | 125,902 | 139,859 | 160,738 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile |
4,712 | 7,035 | 5,570 | 5,436 | 8,531 | |||||||||||||||
Home equity(1) |
26,715 | 29,175 | 27,827 | 44,470 | 37,901 | |||||||||||||||
Residential mortgage(2)(3) |
18,932 | 26,775 | 18,961 | 82,848 | 24,311 | |||||||||||||||
Other consumer |
4,850 | 5,271 | 6,254 | 6,615 | 7,000 | |||||||||||||||
Total consumer |
55,209 | 68,256 | 58,612 | 139,369 | 77,743 | |||||||||||||||
Total net charge-offs |
$ | 165,083 | $ | 172,251 | $ | 184,514 | $ | 279,228 | $ | 238,481 | ||||||||||
Net charge-offs annualized percentages: |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial |
1.29 | % | 1.85 | % | 2.01 | % | 1.90 | % | 2.45 | % | ||||||||||
Commercial real estate: |
||||||||||||||||||||
Construction |
18.59 | 6.19 | 7.25 | 14.25 | 9.77 | |||||||||||||||
Commercial |
2.66 | 2.22 | 3.01 | 2.38 | 3.25 | |||||||||||||||
Commercial real estate |
4.15 | 2.64 | 3.60 | 4.44 | 4.44 | |||||||||||||||
Total commercial |
2.24 | 2.13 | 2.59 | 2.85 | 3.22 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile |
0.33 | 0.51 | 0.43 | 0.47 | 0.80 | |||||||||||||||
Home equity(1) |
1.38 | 1.51 | 1.47 | 2.36 | 2.01 | |||||||||||||||
Residential mortgage(2)(3) |
1.70 | 2.42 | 1.73 | 7.19 | 2.17 | |||||||||||||||
Other consumer |
3.47 | 3.66 | 3.83 | 3.81 | 3.87 | |||||||||||||||
Total consumer |
1.20 | 1.50 | 1.32 | 3.19 | 1.83 | |||||||||||||||
Net charge-offs as a % of average loans |
1.73 | % | 1.82 | % | 1.98 | % | 3.01 | % | 2.58 | % | ||||||||||
(1) | The 2010 second quarter included net charge-offs of $14,678 thousand associated
with the transfer of Franklin-related loans to loans held for sale and $1,262 thousand of
other Franklin-related net charge-offs. |
|
(2) | The 2010 second quarter included net charge-offs of $60,822 thousand associated with
the transfer of Franklin-related loans to loans held for sale and $3,403 thousand of other
Franklin-related net charge-offs. |
|
(3) | The 2010 fourth quarter included net charge-offs of $16,389 thousand related to the
sale of certain underperforming residential mortgage loans. |
12
2011 | 2010 | |||||||||||||||||||
(dollar amounts in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Nonaccrual loans and leases (NALs): |
||||||||||||||||||||
Commercial and industrial |
$ | 260,397 | $ | 346,720 | $ | 398,353 | $ | 429,561 | $ | 511,588 | ||||||||||
Commercial real estate |
305,793 | 363,692 | 478,754 | 663,103 | 826,781 | |||||||||||||||
Residential mortgage |
44,812 | 45,010 | 82,984 | 86,486 | 372,950 | |||||||||||||||
Home equity |
25,255 | 22,526 | 21,689 | 22,199 | 54,789 | |||||||||||||||
Total nonaccrual loans and leases |
636,257 | 777,948 | 981,780 | 1,201,349 | 1,766,108 | |||||||||||||||
Other real estate, net: |
||||||||||||||||||||
Residential |
28,668 | 31,649 | 65,775 | 71,937 | 68,289 | |||||||||||||||
Commercial |
25,961 | 35,155 | 57,309 | 67,189 | 83,971 | |||||||||||||||
Total other real estate, net |
54,629 | 66,804 | 123,084 | 139,126 | 152,260 | |||||||||||||||
Impaired loans held for sale(1) |
| | | 242,227 | | |||||||||||||||
Total nonperforming assets |
$ | 690,886 | $ | 844,752 | $ | 1,104,864 | $ | 1,582,702 | $ | 1,918,368 | ||||||||||
Nonperforming Franklin assets: |
||||||||||||||||||||
Residential mortgage |
$ | | $ | | $ | | $ | | 297,967 | |||||||||||
Home Equity |
| | | | 31,067 | |||||||||||||||
OREO |
5,971 | 9,477 | 15,330 | 24,515 | 24,423 | |||||||||||||||
Impaired loans held for sale |
| | | 242,227 | | |||||||||||||||
Total nonperforming Franklin assets |
$ | 5,971 | $ | 9,477 | $ | 15,330 | $ | 266,742 | $ | 353,457 | ||||||||||
Nonaccrual loans and leases as a % of total loans and leases |
1.66 | % | 2.04 | % | 2.62 | % | 3.25 | % | 4.78 | % | ||||||||||
NPA ratio(2) |
1.80 | 2.21 | 2.94 | 4.24 | 5.17 |
2011 | 2010 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
Nonperforming assets, beginning of period |
$ | 844,752 | $ | 1,104,864 | $ | 1,582,702 | $ | 1,918,368 | $ | 2,058,091 | ||||||||||
New nonperforming assets |
192,044 | 237,802 | 278,388 | 171,595 | 237,914 | |||||||||||||||
Franklin impact, net |
(3,506 | ) | (5,853 | ) | (251,412 | ) | (86,715 | ) | 14,957 | |||||||||||
Returns to accruing status |
(70,886 | ) | (100,051 | ) | (111,168 | ) | (78,739 | ) | (80,840 | ) | ||||||||||
Loan and lease losses |
(128,730 | ) | (126,047 | ) | (151,013 | ) | (173,159 | ) | (185,387 | ) | ||||||||||
OREO losses |
1,492 | (5,117 | ) | (5,302 | ) | 2,483 | (4,160 | ) | ||||||||||||
Payments |
(87,041 | ) | (191,296 | ) | (210,612 | ) | (140,881 | ) | (107,640 | ) | ||||||||||
Sales |
(57,239 | ) | (69,550 | ) | (26,719 | ) | (30,250 | ) | (14,567 | ) | ||||||||||
Nonperforming assets, end of period |
$ | 690,886 | $ | 844,752 | $ | 1,104,864 | $ | 1,582,702 | $ | 1,918,368 | ||||||||||
(1) | The June 30, 2010, figure represented NALs associated with the transfer of
Franklin-related residential mortgage and home equity loans to loans held for sale. |
|
(2) | Nonperforming assets divided by the sum of loans and leases, impaired loans held for
sale, and net other real estate owned. |
13
2011 | 2010 | |||||||||||||||||||
(dollar amounts in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Accruing loans and leases past due 90 days or more: |
||||||||||||||||||||
Commercial and industrial |
$ | | $ | | $ | | $ | | $ | 475 | ||||||||||
Residential mortgage
(excluding loans
guaranteed by the U.S.
Government) |
41,858 | 53,983 | 56,803 | 47,036 | 72,702 | |||||||||||||||
Home equity |
24,130 | 23,497 | 27,160 | 26,797 | 29,438 | |||||||||||||||
Other consumer |
7,578 | 10,177 | 11,423 | 9,533 | 10,598 | |||||||||||||||
Total, excl. loans guaranteed by the U.S. Government |
73,566 | 87,657 | 95,386 | 83,366 | 113,213 | |||||||||||||||
Add: loans guaranteed by U.S. Government |
94,440 | 98,288 | 94,249 | 95,421 | 96,814 | |||||||||||||||
Total accruing loans and leases past due 90 days or more, including loans
guaranteed by the U.S. Government |
$ | 168,006 | $ | 185,945 | $ | 189,635 | $ | 178,787 | $ | 210,027 | ||||||||||
Ratios: |
||||||||||||||||||||
Excluding loans guaranteed by the U.S. Government, as a percent of total loans
and leases |
0.19 | % | 0.23 | % | 0.25 | % | 0.23 | % | 0.31 | % | ||||||||||
Guaranteed by U.S. Government, as a percent of total loans and leases |
0.25 | 0.26 | 0.26 | 0.26 | 0.26 | |||||||||||||||
Including loans guaranteed by the U.S. Government, as a percent of total loans
and leases |
0.44 | 0.49 | 0.51 | 0.49 | 0.57 | |||||||||||||||
Accruing troubled debt restructured loans |
||||||||||||||||||||
Commercial |
$ | 206,462 | $ | 222,632 | $ | 157,971 | $ | 141,353 | $ | 117,667 | ||||||||||
Residential mortgage |
333,492 | 328,411 | 287,481 | 269,570 | 242,870 | |||||||||||||||
Other consumer |
78,488 | 76,586 | 73,210 | 65,061 | 62,148 | |||||||||||||||
Total accruing troubled debt restructured loans |
$ | 618,442 | $ | 627,629 | $ | 518,662 | $ | 475,984 | $ | 422,685 | ||||||||||
14
2011 | 2010 | |||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | First | Fourth | Third | Second | First | |||||||||||||||
Common stock price, per share |
||||||||||||||||||||
High(1) |
$ | 7.700 | $ | 7.000 | $ | 6.450 | $ | 7.400 | $ | 5.810 | ||||||||||
Low(1) |
6.380 | 5.430 | 5.040 | 5.260 | 3.650 | |||||||||||||||
Close |
6.640 | 6.870 | 5.690 | 5.540 | 5.390 | |||||||||||||||
Average closing price |
6.981 | 6.050 | 5.787 | 6.130 | 4.840 | |||||||||||||||
Dividends, per share |
||||||||||||||||||||
Cash dividends declared per common share |
$ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||||
Common shares outstanding |
||||||||||||||||||||
Average basic |
863,359 | 757,924 | 716,911 | 716,580 | 716,320 | |||||||||||||||
Average diluted(2) |
867,237 | 760,582 | 719,567 | 719,387 | 718,593 | |||||||||||||||
Ending |
863,399 | 863,319 | 717,132 | 716,623 | 716,557 | |||||||||||||||
Book value per common share |
$ | 5.42 | $ | 5.35 | $ | 5.39 | $ | 5.22 | $ | 5.13 | ||||||||||
Tangible book value per common share(3) |
4.74 | 4.66 | 4.55 | 4.37 | 4.26 |
2011 | 2010 | |||||||||||||||||||
(dollar amounts in millions) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Calculation of tangible equity / asset ratio: |
||||||||||||||||||||
Total shareholders equity |
$ | 5,039 | $ | 4,981 | $ | 5,567 | $ | 5,438 | $ | 5,370 | ||||||||||
Less: goodwill |
(444 | ) | (444 | ) | (444 | ) | (444 | ) | (444 | ) | ||||||||||
Less: other intangible assets |
(215 | ) | (229 | ) | (244 | ) | (259 | ) | (274 | ) | ||||||||||
Add: related deferred tax liability(3) |
75 | 80 | 85 | 91 | 95 | |||||||||||||||
Total tangible equity |
4,455 | 4,388 | 4,964 | 4,826 | 4,747 | |||||||||||||||
Less: preferred equity |
(363 | ) | (363 | ) | (1,700 | ) | (1,696 | ) | (1,692 | ) | ||||||||||
Total tangible common equity |
$ | 4,092 | $ | 4,025 | $ | 3,264 | $ | 3,130 | $ | 3,055 | ||||||||||
Total assets |
$ | 52,949 | $ | 53,820 | $ | 53,247 | $ | 51,771 | $ | 51,867 | ||||||||||
Less: goodwill |
(444 | ) | (444 | ) | (444 | ) | (444 | ) | (444 | ) | ||||||||||
Less: other intangible assets |
(215 | ) | (229 | ) | (244 | ) | (259 | ) | (274 | ) | ||||||||||
Add: related deferred tax liability(3) |
75 | 80 | 85 | 91 | 95 | |||||||||||||||
Total tangible assets |
$ | 52,365 | $ | 53,227 | $ | 52,644 | $ | 51,159 | $ | 51,244 | ||||||||||
Tangible equity / tangible asset ratio |
8.51 | % | 8.24 | % | 9.43 | % | 9.43 | % | 9.26 | % | ||||||||||
Tangible common equity / tangible asset ratio |
7.81 | 7.56 | 6.20 | 6.12 | 5.96 | |||||||||||||||
Other capital data: |
||||||||||||||||||||
Total risk-weighted assets |
$ | 43,025 | $ | 43,471 | $ | 42,759 | $ | 42,486 | $ | 42,522 | ||||||||||
Tier 1 leverage ratio |
9.80 | % | 9.41 | % | 10.54 | % | 10.45 | % | 10.05 | % | ||||||||||
Tier 1 common risk-based capital ratio |
9.75 | 9.29 | 7.39 | 7.06 | 6.53 | |||||||||||||||
Tier 1 risk-based capital ratio |
12.04 | 11.55 | 12.82 | 12.51 | 11.97 | |||||||||||||||
Total risk-based capital ratio |
14.85 | 14.46 | 15.08 | 14.79 | 14.28 | |||||||||||||||
Tangible common equity / risk-weighted assets ratio |
9.51 | 9.26 | 7.63 | 7.37 | 7.19 | |||||||||||||||
Other data: |
||||||||||||||||||||
Number of employees (full-time equivalent) |
11,319 | 11,341 | 11,279 | 11,117 | 10,678 | |||||||||||||||
Number of domestic full-service branches(4) |
622 | 620 | 617 | 617 | 617 |
(1) | High and low stock prices are intra-day quotes obtained from NASDAQ. |
|
(2) | For all periods presented, the impact of the convertible preferred stock issued in
2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to
Huntingtons 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. |
|
(3) | Other intangible assets are net of deferred tax liability, and calculated assuming a
35% tax rate. |
|
(4) | Includes 9 WGH offices. |
15