-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BlnzS/sLNNS1NK2Mdq4bUq/XsEakdrG9jO1Q2pNsA6lZnKF1mCYSjr+eNzMJngtO gCIIuWxoD/Dybq/+yCfPUA== 0000950152-02-000384.txt : 20020414 0000950152-02-000384.hdr.sgml : 20020413 ACCESSION NUMBER: 0000950152-02-000384 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20020118 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUNTINGTON BANCSHARES INC/MD CENTRAL INDEX KEY: 0000049196 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 310724920 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-02525 FILM NUMBER: 02515379 BUSINESS ADDRESS: STREET 1: HUNTINGTON CTR STREET 2: 41 S HIGH ST HC0632 CITY: COLUMBUS STATE: OH ZIP: 43287 BUSINESS PHONE: 6144808300 MAIL ADDRESS: STREET 1: HUNTINGTON CENTER2 STREET 2: 41 S HIGH ST HC063 CITY: COLUMBUS STATE: OH ZIP: 43287 8-K 1 l92345ae8-k.txt HUNTINGTON BANCSHARES INCORPORATED 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 -------------------- DATE OF REPORT: JANUARY 18, 2002 -------------------- HUNTINGTON BANCSHARES INCORPORATED (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) -------------------- Maryland 0-2525 31-0724920 - --------------- ---------------------- ---------- (STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER JURISDICTION OF IDENTIFICATION NUMBER) INCORPORATION OR ORGANIZATION) -------------------- Huntington Center 41 South High Street Columbus, Ohio 43287 (614) 480-8300 (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER INCLUDING AREA CODE OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES) --------------------- ITEM 5. OTHER EVENTS. On January 18, 2002, Huntington Bancshares Incorporated ("Huntington") issued a news release announcing its earnings for the fourth quarter and twelve months ended December 31, 2001. The information contained in the news release, which is attached as Exhibit 99.1 to this report, is incorporated herein by reference. Huntington also presented this information during a conference call which was available via Internet Webcast. The presentation materials are attached at Exhibits 99.2 and 99.3 to this report, and are incorporated herein by reference. The information contained or incorporated by reference in this Current Report on Form 8-K may contain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the successful integration of acquired businesses; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this Current Report on Form 8-K are based on information available at the time of the Report. Huntington assumes no obligation to update any forward-looking statement. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. Exhibit 99.1 News release of Huntington Bancshares Incorporated, dated January 18, 2002. Exhibit 99.2 Presentation Transcript of January 18, 2002. Exhibit 99.3 Presentation Materials, dated January 18, 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HUNTINGTON BANCSHARES INCORPORATED Date: January 23, 2002 By: /s/ Michael J. McMennamin ----------------------------------------- Michael J. McMennamin, Vice Chairman, Chief Financial Officer, and Treasurer EXHIBIT INDEX Exhibit No. Description Exhibit 99.1 * News release of Huntington Bancshares Incorporated, dated January 18, 2002. Exhibit 99.2 * Presentation Transcript of January 18, 2002. Exhibit 99.3 * Presentation Materials, dated January 18, 2002. - ------------------- * Filed with this report. EX-99.1 3 l92345aex99-1.txt EXHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE JANUARY 18, 2002 CONTACTS: Investors Media Jay Gould (614) 480-4060 Jeri Grier (614) 480-5413 Laurie Counsel (614) 480-3878 Cheri Gray (614) 480-3803 HUNTINGTON BANCSHARES ANNOUNCES FOURTH QUARTER OPERATING EARNINGS OF $0.30 PER SHARE, EXCLUDING CHARGES AND ONE-TIME ITEMS PROVIDES 2002 OPERATING EARNINGS GUIDANCE OF $1.32 - $1.36 PER SHARE COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ: HBAN; www.huntington.com) today announced fourth quarter operating earnings of $75.5 million, or $0.30 per common share. Operating earnings exclude restructuring and other charges associated with the company's strategic refocusing announced last July and other one-time items announced last December. This compares with $75.7 million, or $0.30 per common share, on the same basis in the third quarter, and $76.2 million, or $0.30 per common share, in the year-ago quarter. Fourth quarter operating results exclude the impact of the following: - - Restructuring and other charges of $15.1 million pretax ($9.8 million after tax) associated with the strategic refocusing. - - One-time items as announced December 18, 2001 consisting of: - A $32 million after tax reduction of tax expense, and - A $50 million pretax addition to the allowance for loan losses. Reported fourth quarter earnings were $65.6 million, or $0.26 per common share. This compares with reported earnings of $42.6 million, or $0.17 per common share, in the third quarter and $76.2 million, or $0.30 per common share, in the year-ago quarter. 1 Full-year 2001 operating earnings were $293.5 million, or $1.17 per common share, compared with $360.9 million, or $1.45 per share in 2000. Operating earnings for 2001 exclude $115.0 million after tax of restructuring and other charges associated with the strategic refocusing, as well as the fourth quarter one-time items. For 2000, operating earnings exclude $32.5 million after tax related to the write-down of auto lease residuals. Full-year reported earnings were $178.5 million, or $0.71 per share, compared with $328.4 million, or $1.32 per share in 2000. "We are pleased that fourth quarter operating results were in line with expectations despite a more difficult credit environment," said Thomas Hoaglin, chairman, president and chief executive officer. "Importantly, fourth quarter results demonstrated continued improvement in several key areas of focus including deposit growth, margin expansion, increased fee income, and an improved efficiency ratio. At the same time, we continued to make progress on the strategic plan initiatives outlined last July, including the sale of our Florida banking operations, which we expect to complete next month." Hoaglin added, "As announced last month, credit quality continued to deteriorate reflecting the weak economy. Recognizing this trend, we further strengthened our loan loss reserve. As a result, our loan loss reserve ratio at year end was 1.90%, considerably higher than 1.45% a year ago." Results discussed below are on an operating basis and exclude the impact of restructuring and other charges in all periods, as well as the 2001 fourth quarter one-time items. (Refer to the attached reconciliation of operating versus reported earnings for both the fourth quarter and full-year periods). Fourth quarter operating results compared with third quarter performance reflected: - - 7% annualized increase in average core deposits, - - $9.1 million, or 2%, increase in revenue, excluding securities gains, with the full-year up $106.0 million, or 8%, 2 - - 7 basis point increase in the net interest margin to 4.11%, - - $1.5 million decline in non-interest expense with an improvement in the efficiency ratio to 55.8%, - - $17.4 million, or 8%, increase in non-performing assets, and - - A 30 basis point increase in net charge-offs to 1.04% of average loans. Net interest income increased $5.5 million from the third quarter reflecting the positive impact of a 7 basis point expansion in the net interest margin as earning assets were essentially flat. The expansion in the net interest margin to 4.11% primarily reflected lower wholesale funding costs. Average managed loans increased 2% on an annualized basis in the quarter, down from the 7% pace in the third quarter. Home equity lines and commercial real estate loans increased at annualized rates of 21% and 18%, respectively, whereas, commercial and consumer installment loans declined 11% and 10%, respectively. Compared with the year-ago quarter, average managed loans increased 5%, with home equity and commercial real estate up 18% and 10%, respectively, and auto loans and leases up 5%. Average core deposits increased 7% on an annualized basis from the third quarter, following an 11% increase in the third quarter. This was driven by increases in interest bearing and demand deposits, only partially offset by declines in savings and certificates of deposits. Average core deposits were up 3% from the year-ago quarter. Non-interest income, excluding securities gains, increased $3.6 million, or 3%, from the third quarter. This was driven by increases in mortgage banking revenue, brokerage and insurance fees, and service charges on deposit accounts. Compared with the year-ago quarter, non-interest income increased $3.3 million, or 3%. Excluding securitization-related income, which was particularly strong in the year-ago quarter, non-interest income was up 9%. This reflected a record year in mortgage banking revenue, significant growth in brokerage and insurance fees, as well as an increase in service charges on deposit accounts. 3 Non-interest expense declined $1.5 million from the third quarter following a $4.4 million decrease in that quarter. The efficiency ratio improved to 55.8%, down from 57.5% in the third quarter. This was the third consecutive quarterly improvement from a peak of 62.0% in the 2001 first quarter. Compared with the year-ago quarter, non-interest expense was up $3.5 million, or 2%. Net charge-offs were $56.1 million in the fourth quarter. This represented 1.04% of average loans, up from 0.74% in the third quarter. Non-performing assets at December 31, 2001, were $227.5 million, up $17.4 million, or 8%, from September 30, and represented 1.05% of total loans and other real estate, up from 0.97%. This increase was spread across a number of credits with some concentration in the manufacturing and services sectors reflecting the weakened economy. Loan loss provision expense in the fourth quarter, excluding the one-time $50.0 million addition, was $58.3 million, up $8.7 million, from the third quarter. Provision expense covered net charge-offs and provided for increases in loan balances. The allowance for loan losses as a percent of period-end loans was 1.90% at December 31, up from 1.67% at September 30, and up significantly from 1.45% a year ago. At December 31, 2001, the tangible equity to assets ratio was 6.04%, up from 5.96% at September 30. Following the completion of the sale of the Florida banking operations, this ratio will be significantly higher. 2002 OUTLOOK "We anticipate 2002 operating earnings will be in the $1.32 - $1.36 per share range, excluding the planned first quarter restructuring charges and gain associated with the anticipated February close of the Florida banking operations sale. It also reflects the benefit of the share repurchase program which we said last July would begin once the Florida transaction is 4 completed," Hoaglin said. "This earnings per share range is consistent with the current analyst consensus of $1.34 per share. Although we expect the economic environment to continue to be difficult, we will continue with our plans for improving revenue growth and removing unnecessary spending." CONFERENCE CALL / WEBCAST INFORMATION Huntington's senior management will host an earnings conference call today at 12:00 p.m. (noon) EST, via a live Internet webcast at www.streetevents.com or through a dial-in phone number at (800) 760-1355. Slides to be reviewed during the conference call will be available for viewing at www.huntington-ir.com on January 18, 2002 just prior to 12:00 p.m. EST. A replay of the webcast will be archived at the same Internet address with a phone dial-in replay available at (800) 642-1687; conference ID 2843856. Both replay options will be available until midnight January 31, 2002. The supplemental financial tables as well as the slides for the conference call will be filed, along with management's comments, with the Securities and Exchange Commission on Form 8-K. ABOUT HUNTINGTON Huntington Bancshares Incorporated is a $29 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has more than 135 years of serving the financial needs of its customers. Huntington provides innovative products and services through more than 500 offices in Florida, Indiana, Kentucky, Maryland, Michigan, New Jersey, Ohio and West Virginia. International banking services are made available through the headquarters office in Columbus and additional offices located in the Cayman Islands and Hong Kong. Huntington also offers products and services online at www.huntington.com; through its technologically advanced, 24-hour telephone bank, and through its network of more than 1,400 ATMs. ### This press release contains certain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the successful integration of acquired businesses; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this news release are based on information available at the time of the release. Huntington assumes no obligation to update any forward-looking statement. 5 HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED RESULTS OF OPERATIONS (in thousands of dollars, except per share amounts) - --------------------------------------------------------------------------------
Three Months Ended --------------------------------------------------------------------------------------- December 31, 2001 December 31, 2000 --------------------------------------- ------------------------------------------- Restructuring Restructuring and and Reported Other Operating Reported Other Operating Earnings Charges (1) Earnings Earnings Charges Earnings ---------- ------------ ----------- ---------- --------- ------------- Interest Income $ 443,751 $ -- $ 443,751 $ 537,661 $ -- $ 537,661 Interest Expense 188,513 -- 188,513 304,595 -- 304,595 --------- --------- --------- --------- ------ ----------- Net Interest Income 255,238 -- 255,238 233,066 -- 233,066 Provision for Loan Losses 108,275 50,000 58,275 32,548 -- 32,548 Securities Gains 89 -- 89 845 -- 845 Non-Interest Income 133,008 -- 133,008 129,704 -- 129,704 Non-Interest Expense 227,354 -- 227,354 223,850 -- 223,850 Special Charges 15,143 15,143 -- -- -- -- --------- --------- --------- --------- ------ ----------- Income Before Income Taxes 37,563 (65,143) 102,706 107,217 -- 107,217 Income Taxes (28,086) (55,300) 27,214 30,995 -- 30,995 --------- --------- --------- --------- ------ ----------- Net Income $ 65,649 $ (9,843) $ 75,492 $ 76,222 $ -- $ 76,222 ========= ========= ========= ========= ====== =========== Net Income per Common Share -- Diluted (3) $ 0.26 ($ 0.04) $ 0.30 $ 0.30 $ 0.00 $ 0.30
- ------------------------------------------------------------------------------------------------------------------------------ Twelve Months Ended --------------------------------------------------------------------------------------- December 31, 2001 December 31, 2000 --------------------------------------- ------------------------------------------- Restructuring Restructuring and and Reported Other Operating Reported Other Operating Earnings Charges (2) Earnings Earnings Charges (2) Earnings ---------- ------------ ----------- ---------- ----------- ------------- Interest Income $ 1,939,519 $ -- $ 1,939,519 $ 2,108,505 $ -- $ 2,108,505 Interest Expense 943,337 -- 943,337 1,166,073 -- 1,166,073 ----------- ----------- ----------- ----------- ----------- ----------- Net Interest Income 996,182 -- 996,182 942,432 -- 942,432 Provision for Loan Losses 308,793 121,718 187,075 90,479 -- 90,479 Securities Gains 723 (5,250) 5,973 37,101 -- 37,101 Non-Interest Income 508,757 -- 508,757 456,458 -- 456,458 Non-Interest Expense 923,630 -- 923,630 835,617 -- 835,617 Special Charges 99,957 99,957 -- 50,000 50,000 -- ----------- ----------- ----------- ----------- ----------- ----------- Income Before Income Taxes 173,282 (226,925) 400,207 459,895 (50,000) 509,895 Income Taxes (5,239) (111,924) 106,685 131,449 (17,500) 148,949 ----------- ----------- ----------- ----------- ----------- ----------- Net Income $ 178,521 $ (115,001) $ 293,522 $ 328,446 $ (32,500) $ 360,946 =========== =========== =========== =========== =========== =========== Net Income per Common Share -- Diluted (3) $ 0.71 ($ 0.46) $ 1.17 $ 1.32 ($ 0.13) $ 1.45 - ------------------------------------------------------------------------------------------------------------------------------
(1) Includes $15.1 million of pretax restructuring and other charges. Also includes $50.0 million of pretax addition to the allowance for loan losses offset by $32.5 million of benefits derived from federal tax strategies. (2) Includes $176.9 million of pretax restructuring and other charges. Also includes $50.0 million of pretax addition to the allowance for loan losses offset by $32.5 million of benefits derived from federal tax strategies. The year 2000 includes $50.0 million of pretax charges related to the write-down of lease residual values. (3) Adjusted for stock splits and stock dividends, as applicable. HUNTINGTON BANCSHARES INCORPORATED CONSOLIDATED COMPARATIVE SUMMARY - Operating Basis (1) (in thousands of dollars, except per share amounts) CONSOLIDATED RESULTS OF OPERATIONS - -------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31, ---------------------------- Change ---------------------------------- Change 2001 2000 % 2001 2000 % ---------------------------- --------- --------------- --------------- ------------ Interest Income $ 443,751 $ 537,661 (17.5)% $ 1,939,519 $2,108,505 (8.0)% Interest Expense 188,513 304,595 (38.1) 943,337 1,166,073 (19.1) ------------ -------------- --------------- --------------- Net Interest Income 255,238 233,066 9.5 996,182 942,432 5.7 Provision for Loan Losses 58,275 32,548 79.0 187,075 90,479 106.8 Securities Gains 89 845 N.M. 5,973 37,101 N.M. Non-Interest Income 133,008 129,704 2.5 508,757 456,458 11.5 Non-Interest Expense 227,354 223,850 1.6 923,630 835,617 10.5 ------------ -------------- --------------- --------------- Income before Income Taxes 102,706 107,217 (4.2) 400,207 509,895 (21.5) Income Taxes 27,214 30,995 (12.2) 106,685 148,949 (28.4) ------------ -------------- --------------- --------------- Net Income $ 75,492 $ 76,222 (1.0)% $ 293,522 $ 360,946 (18.7)% ============ ============== =============== =============== Net Income per Common Share (2) Basic $0.30 $0.30 --- % $1.17 $1.45 (19.3)% Diluted $0.30 $0.30 --- % $1.17 $1.45 (19.3)% Diluted--Cash Basis (3) $0.33 $0.33 --- % $1.29 $1.55 (16.7)% Cash Dividends Declared $0.16 $0.20 (20.0)% $0.72 $0.76 (5.3)% Shareholders' Equity (period end) $9.62 $9.43 2.0 % $9.62 $9.43 2.0 % Average Common Shares (2) Basic 251,193 250,854 0.1 % 251,078 248,709 1.0 % Diluted 251,858 251,401 0.2 % 251,716 249,570 0.9 %
KEY PERFORMANCE RATIOS - --------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------------ ------------------------------------- 2001 2000 2001 2000 --------------- ---------------- --------------- ------------------ Return On: Average Total Assets 1.07 % 1.06 % 1.04 % 1.26 % Average Shareholders' Equity 12.68 % 12.89 % 12.32 % 15.84 % Efficiency Ratio 55.77 % 58.48 % 58.39 % 56.19 % Net Interest Margin 4.11 % 3.70 % 4.02 % 3.73 %
Consolidated Statement of Condition Data - --------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31, --------------------------------- Change ---------------------------------- Change 2001 2000 % 2001 2000 % --------------------------------- --------- --------------- --------------- ---------- Average Total Loans: Reported $ 21,512,582 $20,489,983 5.0 % $ 21,149,091 $20,668,581 2.3 % Managed $ 22,747,539 $21,785,984 4.4 $ 22,445,132 $21,366,117 5.1 Average Total Deposits $ 19,774,348 $19,511,274 1.3 $ 19,360,596 $19,689,504 (1.7) Average Total Assets $ 27,977,049 $28,655,484 (2.4) $ 28,137,172 $28,720,508 (2.0) Average Shareholders' Equity $ 2,361,214 $2,352,612 0.4 $2,381,820 $2,279,230 4.5
REGULATORY CAPITAL RATIOS (4) AND ASSET QUALITY - --------------------------------------------------------------------------------
At At December 31, December 31, ------------------------- --------------------------- 2001 2000 2001 2000 -------------- --------- -------------- ----------- Tier I Risk-Based Capital 7.27% 7.19% Non-performing loans (NPLs) $221,109 $93,984 Total Risk-Based Capital 10.33% 10.46% Total non-performing assets (NPAs) $227,493 $105,397 Tier I Leverage 7.41% 6.93% Allowance for loan losses/total loans 1.90 % 1.45 % Tangible Equity/Assets -- Period End 6.04% 5.87% Allowance for loan losses/NPLs 185.69 % 316.95 % Average Equity/Average Assets -- Quarterly 8.44% 8.21% Allowance for loan losses and other real estate/NPAs 180.13 % 279.16 %
- -------------------------------------------------------------------------------- (1) Income component excludes after-tax impact of restructuring and other charges ($9,843 in 4Q '01 and $115,001 for year 2001; $32,500 for year 2000). (2) Adjusted for stock splits and stock dividends, as applicable. (3) Tangible or "Cash Basis" net income excludes amortization of goodwill and other intangibles, net of income taxes. (4) Estimated. N.M. - Not Meaningful
EX-99.2 4 l92345aex99-2.txt EXHIBIT 99.2 EXHIBIT 99.2 HUNTINGTON BANCSHARES INCORPORATED CONFERENCE CALL LEADER, MIKE McMENNAMIN JANUARY 18, 2002 PAGE 2 Operator: Good afternoon. My name is Jeff, and I will be your conference facilitator today. At this time I would like to welcome everyone to the Huntington Bancshares fourth quarter earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question and answer period. If you would like to ask a question during that time, simply press the number one on your telephone keypad, and questions will be taken in the order they are received. If you would like to withdraw your question, press the pound key. Thank you. Mr. Gould, you may begin your conference. Jay Gould: Thank you, Jeff. And welcome to today's conference call. I'm Jay Gould, Director of Investor Relations. Before formal remarks we have the usual housekeeping items. Copies of the slides that we will be reviewing can be found on our website, huntington-ir.com. This call is also being recorded and will be available as a rebroadcast starting later this evening through the end of the month. Please call the investor relations department at 614-480-5676 for more information on how to access these recordings or playback or if you have difficulty getting copies of the slides. Today's discussion, including the question and answer period, may contain forward looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such statements are based on information and assumptions available at this time and are subject to change, risks, and uncertainties which may cause actual results to differ materially. We assume no obligation to update such statements. For a complete discussion of risks and uncertainties, please refer to slide 24 and material filed with the SEC, including our most recent 10-K, 10-Q, or 8-K filings. Let's begin. Participating in today's call will be Tom Hoaglin, Chairman, President, and CEO; and Mike McMennamin, Vice Chairman and Chief Financial Officer. Let me turn the meeting over to Tom. Tom Hoaglin: Thank you, Jay. Welcome, everyone. Thanks for joining us today. I'll begin today's presentations with a quick review of fourth quarter highlights. Mike and Jay will follow with more detailed comments. I want to leave you with some high level impressions regarding our PAGE 3 fourth quarter performance. First, our earnings of $.30 per share met expectations in a difficult credit environment. Second, as we announced in December, we strengthened our loan loss reserves to 1.90%, up significantly from 1.67% at the end of the third quarter and from 1.45% at March 31. Third, we were pleased with a two percent revenue growth during the quarter and over eight percent year-over-year. The revenue growth was accomplished in spite of earning assets that were flat versus the third quarter and down two percent from the year-ago quarter. Fourth, we continue to make progress at improving operating efficiency as evidenced by the third consecutive quarterly decline in our efficiency ratio to 55.8%. You'll recall that we were at 62% in the first quarter of this year. Every one percent improvement in our efficiency ratio equates to approximately four cents per share. In summary, we continue to move ahead in implementing the strategic initiatives announced last July. We're pleased with the progress we're continuing to see in deposit growth, margin expansion, fee income generation, and expense control. Our employees are engaged and enthusiastic, and we're making progress in improving our financial performance. But there is still much to do. For the foreseeable future we expect to continue to be operating in a weak economic environment and, therefore, expect to be challenged by continued high levels of net charge-offs and non-performing assets. We will discuss our views on this later. Staying focused on fourth quarter performance, let me turn the presentation over to Mike who will provide more detail. Mike McMennamin: Thanks, Tom. Turning to slide four, fourth quarter operating earnings were $.30 per share, consistent with the guidance given at the end of the third quarter and reaffirmed in our December 18th announcement. Importantly, it was achieved despite higher credit costs and reflected improvement in other areas of the company. PAGE 4 In many respects the fourth quarter represented a continuation of trends noted in the third quarter. Compared with the third quarter, deposits grew at an annualized seven percent rate. Revenue excluding security gains was up two percent for the quarter and was up eight percent versus the prior year quarter. The net interest margin expanded seven basis points to 4.11%. This represented the fourth consecutive quarterly increase from the low of 3.70% in the year-earlier quarter. The efficiency ratio improved to 55.8%, the third consecutive quarterly improvement. This reflected both revenue growth and a decline in expenses. As announced in December, credit quality deteriorated consistent with our guidance. Specifically, the net charge-off ratio increased to 1.04% of loans and non-performing assets increased $17 million. Also as announced on December 18th, the quarter included two nonrecurring items. The first was a $32 million after tax reduction in tax expense related to the issuance of $400 million of REIT preferred stock of which $50 million was issued to the public. Offsetting this was a $50 million pretax addition to the loan loss reserve. At year end the reserve ratio was 1.90%, up from 1.67% at September 30th and 1.45% a year ago. Slide five reconciles reported versus operating earnings. You'll recall that we break out performance in this manner so we can see how underlying performance is tracking excluding the impact of the restructuring and other charges associated with the strategic repositioning announced last July. This quarter we have also excluded the impact of the two fourth quarter items. As Tom mentioned, earnings per share on an operating basis were $.30. Reported earnings per share were $.26. We'll comment more on these trends in a just a moment. Turning to slide six, in the fourth quarter we recognized an additional $15 million pretax of restructuring and other charges bringing the total to date to $177 million pretax. The $15 million charge during the quarter included the final branch consolidation costs and other legal, accounting, and other operational costs. PAGE 5 Slide seven shows performance highlights for the fourth quarter compared with the third quarter and the year-ago quarter. Most of this we've already commented on, so I just want to focus on our capital position. In spite of the $177 million of pretax restructuring and other charges recognized in 2001, our tangible equity to asset ratio has improved slightly from 5.87% to 6.04% during the year. Completing the Florida sale will immediately increase this ratio above nine percent. Slide eight compares the quarterly income statement for the fourth, third, and year-ago quarters. Compared to the third quarter, net interest income increased $5.5 million reflecting a higher net interest margin as earning asset levels were essentially flat. Non-interest income, excluding security gains, was up $3.6 million, and expenses were down $1.5 million. The interesting comparison is the current quarter versus last year. Despite a $25.7 million increase in provision expense, seven cents per share, net income was essentially flat from the year-ago quarter. The deterioration in credit quality has masked significant improvements in other areas of our performance. Examples of progress from a year ago include net interest income up $22 million, or 10%, despite a two percent decline in earning assets reflecting a more efficient balance sheet and a wider net interest margin. Non-interest income, up three percent. However, non-interest income increased nine percent if you exclude from both periods the impact of securitization-related income. Securitization-related income was $2.7 million in the fourth quarter and $10 million in the year-ago quarter. And while expenses were up two percent or 3.4 million, revenues increased $25.3 million. We've made significant progress in improving our operational efficiencies. PAGE 6 Slide nine shows a steady progress in net interest income and the margin over the last year. The increase in the margin was driven by a planned reduction in lower margin earning assets, primarily investment securities; an increase in net free funds, primarily reflecting tighter controls on branch and ATM cash and increased demand deposits; greater discipline on the pricing side for both deposits and loans; a slightly liability sensitive balance sheet; and a period of declining interest rates. Turning to slide ten, the average managed loan growth numbers on this slide have been adjusted for the impact of acquisitions, securitization activity, and asset sales. Average managed loan growth slowed to a two percent annualized rate during the quarter, down from the seven percent annualized growth rate in the third quarter. Loans were five percent higher than a year ago. Home equity lines have been an area of focus and a source of growth for Huntington. They have been increasing at an annualized rate in the high teens in recent quarters. These volumes are being positively impacted by the attractiveness of the lower rates as well as an increased cross-selling success to first mortgage customers during this period of heavy refinance activity. Commercial real estate loans increased at an 18% annualized rate in the fourth quarter, following a 16% annualized rate in the third quarter, and were 10% higher than a year ago. Construction loans account for most of this growth and reflect the funding of commitments made 9 to 18 months ago. This activity is exclusively within our footprint and with long-time customers primarily in the Central Ohio, Southern Ohio, Northern Kentucky, and East Michigan regions. Our typical construction credit is to targeted developers within our local markets with a good track record and strong capital and cash flows. Not surprisingly, commercial loans have been declining reflecting the impact of a weakened economy on loan demand. Auto loans and leases were little changed during the quarter. Loan and lease originations declined 23% from $985 million in the third PAGE 7 quarter to $759 million in the fourth quarter and were flat versus a year ago. Some of the decline from the third to the fourth quarter is seasonal. As you would expect, new car originations as a percentage of total loan and lease originations declined from 61% to 54% during the quarter reflecting the impact of the zero percent financing offered by the captive finance companies. The next slide provides detail on recent core deposit trends. Core deposits exclude negotiable CDs and eurodollar deposits. The seven percent annualized growth rate during the quarter was encouraging particularly following the 11% growth rate in the third quarter. The growth rate outside of Florida during the quarter was at an eight percent rate, slightly higher than the growth rate for the total company. We're excited about the progress we've made in the second half of the year in growing core deposits, and we are obviously benefiting from uncertainty in the financial markets. Nevertheless, we feel a significant part of this growth is attributable to our focus on the sales management process. Let me now turn the presentation over to Jay who is going to review fee income and expenses. Jay Gould: Thank you, Mike. Turning to slide 12, the discussion on non-interest income will focus mostly on year-over-year trends which mitigate seasonal factors that sometimes impact linked-quarter comparisons. Total non-interest income before security gains increased $3.3 million or three percent versus the same quarter last year. However, while securitization-related income impacts results in each quarter, the year-ago quarter included a sizeable gain. If you exclude securitization-related income, as Mike mentioned, total non-interest income was up $10.6 million or nine percent from the year ago quarter. Service charges increased a strong nine percent from a year ago. This primarily reflected higher corporate maintenance fees as PAGE 8 corporate treasurers pay hard dollar fees for deposit services rather than maintain higher demand deposit balances. Brokerage and insurance revenue was 23% higher. The growth in our Private Financial Group was one of last year's real success stories. The primary driver of the growth was increased annuity sales. In the fourth quarter annuity sales were $180 million. This volume was 27% higher than in the third quarter and was a new record beating last quarter's previous record of $140 million in sales. And it was more than double the annuity sales in the year-ago quarter. Insurance-related income was down slightly as life insurance sales in the year-ago quarter were particularly strong. Trust income increased six percent over the prior year, primarily reflecting increased revenue from Huntington's proprietary mutual funds. Fund assets in the fourth quarter were $2.8 billion, up seven percent from a year ago. The growth in revenue reflects this growth in assets aided by the introduction of five new funds as well as fee increases. Partially offsetting this growth was a decline in personal trust fees primarily due to declining asset values reflecting market conditions. Mortgage banking income was particularly strong in light of the current lower-rate environment and heavy refinancing activity. Mortgage banking revenue increased 32% from the year-ago quarter. This is another success story as they posted a record year. Origination volume in the fourth quarter was $1.2 billion, up from $455 million a year ago and $737 million in the third quarter. Full year origination volume totalled $3.5 billion, up from $1.5 billion in 2000. The 28% decrease that you see on the slide in other income primarily reflected the year-ago quarter's higher level of securitization-related income. Excluding this, other income was down seven percent. While customer-related derivative sales in our investment banking unit, a brand new product offering this year that generated over $2 million of fee revenue, this was more than offset primarily by a decline in gains realized from the sale of an OREO property in the year-ago quarter. PAGE 9 Turning to slide 13, non-interest expense declined $1.5 million from the third quarter. This follows a $4.4 million decrease in the prior quarter. The primary cause was a $2.6 million reduction in personnel cost reflecting lower benefit expenses partially offset by higher sales commissions related to mortgage banking, capital markets, and private financial services related activities. Occupancy and equipment expense increased $1.1 million reflecting a number of factors including higher depreciation and building maintenance costs. Let me turn the presentation back to Mike for a discussion of credit quality trends. Mike McMennamin: Thanks, Jay. Slide 14 provides a snapshot of credit quality trends. On December 18th we announced that credit quality was continuing to deteriorate and that as a result we would see higher net charge-offs and non-performing loans in the quarter. Further that we would bolster our loan loss reserve to 1.90% of loans. Non-performing assets increased $17 million or eight percent from the third quarter and represented 1.05% of period-end total loans and OREO. We expect further increases in non-performing assets in the first half of this year, although the rate of increase should slow. Further, we expect the non-performing asset ratio to increase in the first quarter with the Florida sale given the lower level of non-performing assets in Florida. Reported net charge-offs were at 104 basis points, up from 74 basis points in the third quarter. Excluding losses on businesses we have exited and for which reserves were established in the second quarter, adjusted net charge-offs were 98 basis points up from 61 basis points, and I'll talk more about that in just a moment. Total delinquencies over 90 days have been relatively stable over the past year and were 42 basis points in the fourth quarter, essentially flat with the third quarter. PAGE 10 The allowance for loan losses ended the year at 1.90%, up from 1.67% at the end of September and considerably higher than the 1.45% a year ago. Slide 15 shows the trend in non-performing assets as well as their composition. The $17.4 million increase was consistent with our expectations and reflected the continuing impact of the weak economy, concentrated in a number of companies, mostly in the manufacturing and service sectors. Net charge-offs on slide 16 are shown on an adjusted basis, that is excluding the impact of any charge-offs established in the second quarter special charge and any related subsequent charge-offs. Adjusted net charge-offs increased to 98 basis points from 61 basis points in the prior quarter. Commercial net charge-offs increased to 139 basis points from 56 basis points in the third quarter. This increase was spread over a number of companies in the retail trade, manufacturing, services, and communication sectors reflecting the broad-based nature of the current economic slowdown. Total consumer net charge-offs were 105 basis points, up from 85 basis points in the third quarter. This was primarily driven by a 34 basis point increase in total indirect net charge-offs from 117 basis points to 151 basis points. Some of this increase in indirect charge-offs is seasonal. Fourth quarter and first quarter charge-offs typically are 10 to 15% higher than levels experienced in the second and third quarters. In addition, the charge-off levels are obviously being adversely impacted by the current economic environment. Regarding the indirect loan portfolio, vintages originated between the fourth quarter of '99 and the third quarter of 2000 continue to perform poorly. About 20% of the volume in that time period was underwritten with FICO scores below 640. In contrast, over the last 12 months only three percent of loan volume was underwritten below a FICO level of 640. Our experience is that about two-thirds of expected losses on auto loans occur within 9 to 24 months of the loan origination. Loans originated during these earlier vintages are now 15 to 24 months old and are at, or near, the peak PAGE 11 of their charge-off cycle. These vintages are contributing adversely to the fourth quarter indirect portfolio charge-off rate of 151 basis points. Importantly, charge-offs on more recently originated vintages are running about 40% lower than these earlier vintages given comparable aging. The good news is that the relative negative impact on total charge-offs from this earlier originated segment of the portfolio is, and will continue to, diminish over coming quarters. On balance, the credit quality of the remaining consumer portfolio is behaving as expected and within acceptable tolerances given the economic environment. Slide 17 recaps full-year performance. While we are pleased with the progress we have made during 2001, the full-year results are obviously clearly unsatisfactory as shown on this slide. So let me close with some brief comments regarding our 2002 outlook. Not surprisingly, and as shown on slide 19, key determinants of 2002 earnings will be the economic environment, the level of interest rates, and credit quality. The assumption we have made is that the weakness of the economy will continue through the first half of the year with a modest recovery in the second half. We are expecting to see continued high levels of net charge-offs and non-performing assets for at least the next couple of quarters. We are not looking for significant deterioration beyond fourth quarter levels, but pressure will remain on credit performance. Regarding interest rates, our view is that short term rates will increase perhaps one and a half to two percent during the year and that the yield curve will flatten. Slide 20 summarizes our 2002 performance assumptions. We expect operating earnings per share will fall in the range of $1.32 to $1.36. This excludes the remaining planned first quarter restructuring charges and gain associated with the Florida sale. This range is consistent with the current $1.34 per share analyst consensus. To help you directionally understand our thinking regarding anticipated 2002 performance, here are some key assumptions. PAGE 12 These assumptions exclude Florida on a proforma basis from 2001 results. a. Continued high levels of charge-offs and NPAs. b. Modest growth in loans. c. Continued growth in core deposits. d. Expansion of the net interest margin, driven by reduced funding costs, the Florida sale, where margins were lower than those of the rest of the company, increase in net free funding, and improved lending spreads. e. Modest expense growth and continued improvement in the efficiency ratio. Finally, regarding the quarterly pattern of earnings progression, the $1.34 consensus translates into a quarterly average of 33 1/2 cents. Assuming earnings growth throughout the year and a more challenging credit environment in the first half, we expect quarterly earnings in the first half would be below this average. Let me turn the presentation back to Tom now for some final comments prior to the Q&A session. Tom Hoaglin: Thanks, Mike. Slide 22 shows that 2001 was a year of significant change. When we announced the refocusing in July, we knew the challenges would be great even in a good economic environment. A weakened economy has only increased those challenges. Nevertheless, we can report to our investors that we made significant progress on a number of our strategic initiatives with financial performance improving, especially throughout the second half of the year. We reached an agreement to sell Florida. We consolidated branches. We exited unprofitable e-businesses. We strengthened the management team. We established a regional management structure to bring decision making closer to customers. We also initiated a sales management process. We reduced the dividend to conserve capital. Financially, we needed to rekindle revenue growth and take out unproductive spending. The second-half performance indicates we are starting to get some traction here. The difficult economic environment and deteriorating credit quality trends resulted in a PAGE 13 need to strengthen our reserves. This was tough but necessary medicine and improves our ability to perform in an uncertain environment. In the end, we made progress and have taken the initial steps toward achieving our long-term financial goals. The progress we have made has positioned Huntington for steady progress as we enter 2002. So what does 2002 hold for us? Obviously, the economy is a wild card. Certainly we are in a situation where the economy and related credit quality trends could get worse before getting better, but we are not standing still. Improving our product cross selling in all lines of our business is a high priority. So is improving customer service, and we are expanding our internal financial reporting to improve individual accountability for performance. In sum, 2002 boils down to executing the game plan. This completes our prepared remarks. Mike, Jay, and I will be happy to take your questions. Let me turn the meeting back over to the operator who will provide instructions on conducting the question and answer period. Operator: At this time I would like to remind everyone, in order to ask a question, please press the number one on your telephone keypad. Please hold for your first question. Your first question comes from Ed Najarian from Merrill Lynch. Ed Najarian: Good afternoon, guys. Jay Gould: Hi, Ed. Ed Najarian: Couple of questions here. First, and I apologize because I don't have the slide presentation, so maybe this is in there, but is higher credit related costs -- are higher credit related costs all of the variance between the guidance, the '02 EPS guidance that you gave over the summer and your revised EPS guidance, or are there other areas of variance from that lower estimate? And, if there are, can you go over what they are? PAGE 14 Mike McMennamin: Ed, this is Mike. We had assumed -- let me see if I can do the math quickly. We had assumed 65 basis points of charge-offs in July for 2002. Let me just do the math. Let's just say at 90 basis points, for the sake of argument. Now that additional 25 basis points would translate into about $.14 a share, so -- Ed Najarian: And that would be about it? Mike McMennamin: That accounts for those other items going both ways, obviously, but on a macro basis that would account for the difference. Ed Najarian: Okay. If I could just follow that up then, I just have some other quick questions. Could you speak to the amount of non-performing assets that will go away in the Florida sale? And could you also speak to the pace of share repurchase that you expect? You gave the amount, but could you quantify sort of the timing throughout the year? Mike McMennamin: As we mentioned in the remarks, the sale of Florida will actually increase our ratio of non-performing assets. I don't have in front of me the actual dollar number of non-performing loans that go away. I think it's about $10 million, roughly. But the ratio will actually increase because Florida's non-performing asset ratio is lower than the rest of the company. With regard to the pace of share repurchase, we really have not commented. We expect the Florida transaction to close on February 15th, and shortly thereafter we expect to make an announcement with regard to what our share repurchase plans are. Ed Najarian: And then lastly, any discussion of lease residual risk or how you're viewing that these days? Mike McMennamin: We conduct, I think as we mentioned the last conference call, we conduct a quarterly analysis of our lease residual risk. The estimated losses in that portfolio have not changed in the last couple of quarters. We still feel that the combination of our balance sheet reserves plus the lease residual insurance policy that we have fully cover all the embedded losses in that portfolio. We did have our first claim submission to the insurance company here PAGE 15 in the last 30 days. And all but a tag amount of claims that we presented were paid. So the policy is working as advertised. I know that there's been some concern about that issue. We feel good about the first claim experience. There were no claims that were rejected that we thought we were owed on. Ed Najarian: Okay. Thank you. Operator: Your next question comes from David George with A.G. Edwards. David George: Good afternoon. My question is with respect to your 2002 guidance at the $1.32 to $1.36. Is that reflective of the FAS 142 adjustment? Mike McMennamin: That is correct. David George: Okay. And is that adjustment -- if we looked at the fourth quarter numbers, would that be around $.33 for Q4? Mike McMennamin: That's correct. Operator: Your next question comes from Fred Cummings with McDonald Investments. Fred Cummings: Yes. Two questions. First, Mike, when you quoted the nine percent proforma capital ratio, I'm assuming that that assumes the full $200 million pretax falls to the bottom line from the sale of Florida. You've not talked about how you might utilize that gain. Mike McMennamin: Fred. The day after the sale closes we expect that tangible common equity ratio to rise to a little bit more than nine percent. Assuming that we repurchase $300 million to $400 million of stock in 2002 without making any comment as to the timing of that, at the end of 2002 we estimate that the tangible common equity ratio would still be about 7 3/4 percent. So the assumption we've made is that we would use $300 million to $400 million of that capital to repurchase stock. Fred Cummings: Secondly, as it relates to the indirect auto and lease portfolio, the vintages originated in 4Q '99 I think or in 1Q 2000, Mike, can you give us the size of those? I know a couple of quarters ago you PAGE 16 indicated that the underwriting that was done with more conservative FICO scores represented maybe 45% of loans and 35% of leases. I just want to get a feel for how that breaks out and also the timing of the run off of this higher risk piece of the portfolio. Mike McMennamin: Fred, the loans -- and these numbers apply to the indirect loan portfolio, not loans and leases. But the same basic trend would be applicable for the lease portfolio. So the numbers I'm going to give you are just the loan portfolio. I'll give you the numbers for the second, third, and fourth quarters. The loans originated during the fourth quarter '99 through the third quarter of 2000, those vintages, in the second quarter were 20% of the portfolio, in the third quarter were 16%, and in the fourth quarter it declined to 11 1/2% of the total portfolio. The losses that we incurred on those portfolios, again, the second, third, and fourth quarter represented 39%, 35%, and 26%, respectively, of the total losses in the indirect loan portfolio. So, as you can see, the magnitude of that problem is starting to get smaller and smaller and will continue to diminish with each passing quarter. Fred Cummings: Okay. Thank you. Operator: At this time I would like to again remind everyone, in order to ask a question, please press the number one on your telephone keypad. Your next question comes from Joe Duwan with Keefe Bruyette & Woods. Joe Duwan: Yes. Question for you, Mike on interest rate positioning with the expectation in higher interest rates over the course of this year. Mike McMennamin: Joe, we've been liability sensitive throughout 2001. And if you use the measurement of the exposure of your net interest income to a gradual 200 percentage point increase in rates, that increase is above and beyond whatever the forward curve implies at a given point in time. We have been liability sensitive in perhaps as much as two and a quarter, maybe even two and a half percent at some point during 2001. PAGE 17 Our current position is that given that same 200 basis point increase above today's forward curve, which as you're well aware calls for a significant increased ramp up in short term rates, that our net interest income function in the next 12 months is exposed to a little bit more than one percent, one to one and a quarter percent. So as the year has progressed and rates have declined, we've narrowed or reduced our interest rate risk position even further. Joe Duwan: Okay. Thank you. Operator: Your next question comes from Roger Lister with Morgan Stanley. Roger Lister: Yes. I wonder if you can give us some sense of how much you've typically written off your non-performers on the C&I side. Sort of look across the non-performers, just some kind of average sense of what you've written them down to already. Mike McMennamin: Roger, I don't have that number. We'll be happy to see if we can get that number. I just don't have it at the top of my head and would not hazard a guess on it. Roger Lister: Okay. Thank you. How about -- maybe you can give us a different sense which would be as you look across the region and you look across the sort of industries that you're involved in, do you see any differences across the marketplace and how people are faring? Are you seeing any signs of up turn in people's needs for working capital or desire to build inventories? Mike McMennamin: No, I don't think we have so far. The loan weakness on the commercial front has continued in December and early January. So, so far we have not really seen any turnaround on that front. Roger Lister: Looking maybe to a different issue, when you look out into 2002, you've had quite success in building core deposits, transaction depositions. Do you think it's going to be more of a struggle as you go into a rising rate environment versus sort of build up in liquidity that has been sort of prevalent in the last few months? Mike McMennamin: Well, I don't think there's any question that we and other banks PAGE 18 have benefited from the economic turmoil here in the last, particularly, the last quarter in terms of being able to grow deposits. So assuming that we get an economic recovery, I think it may very well be more difficult to grow the core deposits. But that is something that's very important to us. We're committed to it. That's a central part of our strategy. Tom Hoaglin: Roger, this is Tom Hoaglin. I think while the environment might prove a little more difficult for growth in deposits, just to piggyback on what Mike was saying, we really feel like we're working very hard in particularly our -- well, both commercial and retail sales efforts so that even in a more challenging environment we are confident we're going to be able to succeed in continuing to grow deposits. Mike McMennamin: I also would point out that we have a strong vested interest in growing deposits in the next 12 months than perhaps we did certainly a year ago. And I say that in the sense that when we sell Florida we will be -- even though we're selling Florida, we'll be writing a check for approximately $1.2 billion. So we will become on an immediate sense more dependent upon the wholesale market. And our goal over the next year or two is to reduce that dependence by replacing that with core retail and commercial deposits. So we have a strong vested interest in accomplishing those goals. Roger Lister: We'll look forward to hearing more about that in the next round of earnings releases. Mike McMennamin: Thank you. Operator: Your next question comes from Fred Cummings with McDonald Investments. Fred Cummings: Tom, what type of changes have you made on the credit risk management side of the bank? I know you've made a lot of changes, but what have you done with respect to risk management on the credit side? Tom Hoaglin: Well, two items I'd use in responding to you, Fred. As we have talked in previous calls relative to our auto finance, we've made PAGE 19 several changes over the course of the last year to significantly tighten credit criteria, about FICO scores, and loan to value ratios, and those kinds of things. So clear changes there and with measurable results. On the commercial side, one of the things we did earlier in the year was to take a look at how we participated in syndicated national credits. Keep in mind that our participation has to do with companies that are in our footprint. We don't go out of footprint. The companies are companies we know. But, nevertheless, we've had a fair amount of activity out in our regions that was not scrutinized by a central credit area here in Columbus. So in mid-year we changed that so that we don't allow regional credit people and originators to generate syndicated loans without the sign off by home office, if you will. That has involved significant tightening. So we're working on it for both the commercial and retail side. Fred Cummings: And the source of the increase in, say, commercial non-accruals, was that driven by some syndicated credit disproportionate amount? Tom Hoaglin: Yes. Fred Cummings: And secondly, Tom, as you look at the structure of your balance sheet mix of the loan portfolio, what would you view maybe in the, say, late 2002 or sometimes in 2003 to be a normalized kind of charge-off ratios. Is 50 basis points -- I know historically Huntington loan term has run around 50 basis points. Is that a good number to think about with respect to normalized charge-offs? Tom Hoaglin: Fred, it would look pretty good right now. Obviously, that depends on the mix and the percentage of the portfolio that's in the various components, particularly the indirect. I think that would be a pretty attractive number for us as we -- certainly, if we could get there -- I would doubt very, very much if we will be at 50 basis points by the end of 2002. But we are -- we do think that we'll -- we will make progress as we go through the year, although it probably is back end loaded on any credit quality improvement. Fred Cummings: Okay. Thank you. PAGE 20 Operator: At this time there are no further questions. Tom Hoaglin: Okay. Well, thank you all very much for joining us. We really appreciate your interest in Huntington, and we appreciate your questions, and we look forward to keeping you apprised of their progress. Thanks again. Operator: This concludes today's Huntington Bancshares fourth quarter earnings results conference call. You may now disconnect. [END OF CALL] EX-99.3 5 l92345aex99-3.txt EXHIBIT 99.3 Exhibit 99.3 [LOGO] Huntington Fourth Quarter and Full Year 2001 Earnings Review January 18, 2002 1 [LOGO] MEETING PARTICIPANTS Tom Hoaglin - Chairman, President and Chief Executive Officer Mike McMennamin - Vice Chairman and Chief Financial Officer Jay Gould - Sr. Vice President - Investor Relations 2 [LOGO] FOURTH QUARTER OVERVIEW - - Met earnings expectation - - Strengthened the loan loss reserve - - Grew revenue - - Improved operating efficiency 3 [LOGO] FOURTH QUARTER PERFORMANCE HIGHLIGHTS - VS. 3Q01 (1) OPERATING BASIS (1) - - Earnings per share $0.30 - - Core deposit growth 7 % annualized - - Revenue growth 2 % - - Net interest margin up 7 basis points 4.11 % - - Efficiency ratio down 1.7 percentage points 55.8 % - - Net charge-offs up 30 basis points 1.04 % - - NPAs up $17 million or 8% $227.5 MM - - Loan loss reserve up 23 basis points 1.90 % ONE-TIME ITEMS - - $32 million after tax benefit to tax expense related to issuance of REIT preferred stock - - $50 million pretax addition to allowance for loan losses (1) Excluding after tax impact of restructuring and other charges, as well as 4Q01 one-time items 4 [LOGO] FOURTH QUARTER 2001 EARNINGS ($MM) Reported Charges Operating ----- -------- ------- --------- Net interest income $255.2 $255.2 Provision (108.3) $(50.0) (58.3) Non-interest income 133.0 133.0 Security gains 0.1 0.1 Non-interest expense (242.4) (15.1) (227.3) ------- ------- ------- Pretax income 37.6 (65.1) 102.7 ------- ------- ------- Net income $65.6 $(9.8) $75.5 ======= ======= ======= EPS $0.26 $(0.04) $0.30 5 [LOGO] RESTRUCTURING AND OTHER CHARGES ($MM) Original Estimate 2Q01 3Q01 4Q01 To Date -------- ---- ---- ---- ------- Restructuring $ 64 --- $ 33 $ 4 $ 37 - ------------- Branches/ATMs/ops Retention/transition Corporate overhead Facilities e-Commerce Impairment 45 37 --- --- 43 - ---------- I/O strip PG & E Auto residuals Other Credit 72 72 --- --- 72 - ------ 120 day delinquencies Exited Tier II Exited truck & equipment Other 34 2 18 11 25 - ----- ----- ----- ---- ---- ---- Total pretax charge $ 215 $ 111 $ 51 $ 15 $177 6 [LOGO] PERFORMANCE HIGHLIGHTS (1) 4Q01 3Q01 4Q00 ---- ---- ---- EPS - operating $0.30 $0.30 $0.30 EPS - cash basis (2) 0.33 0.33 0.33 ROA 1.07 % 1.07 % 1.06 % ROE 12.7 12.6 12.9 Efficiency ratio 55.8 57.5 58.5 NIM 4.11 4.04 3.70 Tangible equity/assets (3) 6.04 5.96 5.87 (1) Excluding after tax impact of restructuring and other charges of $9.8 MM in 4Q01 and $33.0 MM in 3Q01 (2) Cash basis ratios are based on operating earnings excluding goodwill amortization of $7.7 MM in 4Q01, $7.8 MM in 3Q01, and $7.8 MM in 4Q00, net of tax (3) Period end 7 [LOGO] INCOME STATEMENT (1) ($MM) 4Q01 3Q01 4Q00 ----- ---- ---- ---- Net interest income $255.2 $249.8 $233.1 Provision (58.3) (49.6) (32.5) Non-interest income 133.0 129.4 129.7 Security gains 0.1 1.1 0.8 Non-interest expense (227.3) (228.9) (223.9) ------- ------- ------- Pretax income 102.7 101.8 107.2 ------- ------- ------- Net income $75.5 $75.7 $76.2 ======= ======= ======= (1) Excluding after tax impact of restructuring and other charges of $9.8 MM in 4Q01 and $33.0 MM in 3Q01 8 [LOGO] NET INTEREST MARGIN [GRAPH] Net Interest Income Margin 1Q00 $240.7 3.78% 2Q00 $232.8 3.72% 3Q00 $235.9 3.74% 4Q00 $233.1 3.70% 1Q01 $243.1 3.93% 2Q01 $248.0 3.97% 3Q01 $249.8 4.04% 4Q01 $255.2 4.11% 9 [LOGO] MANAGED LOAN GROWTH Average ($B) Annualized Growth - ------- ----------------- 4Q01 vs. 3Q01 vs. 4Q01 vs. 4Q01 3Q01 2Q01 4Q00 Commercial $ 6.5 (11) % (4) % (1) % Commercial real estate 3.9 18 16 10 ------ ------ ----- ----- Total commercial/CRE 10.4 --- 3 3 ------ ------ ----- ----- Auto loan/lease 7.3 2 13 5 Installment 1.6 (10) (4) (4) Home equity lines 2.5 21 19 18 Residential real estate 0.9 9 --- 7 ------ ------ ----- ----- Total consumer 12.3 5 10 6 ------ ------ ----- ----- Managed loans $22.7 2 % 7 % 5 % ====== Note: Growth percentages normalized for acquisitions, portfolio sales and securitizations 10 [LOGO] CORE DEPOSIT TRENDS Average ($B) Annualized Growth - ------- ----------------- 4Q01 vs. 3Q01 vs. 4Q01 vs. 4Q01 3Q01 2Q01 4Q00 ---- ---- ---- ---- Demand $ 3.4 8 % 12 % 3 % Interest bearing 5.5 38 27 23 Savings 3.4 (9) (8) (3) CD's 7.1 (4) 11 (5) ------ ------ ------ ------ Total $19.4 7 % 11 % 3 % ====== 11 [LOGO] NON-INTEREST INCOME (1) ($MM) Better or (Worse) vs. --------------------- 4Q01 3Q01 3Q01(2) 4Q00 ---- ---- ------- ---- Deposit service charges $ 42.8 $1.0 2 % 9 % Brokerage/insurance 21.0 1.1 5 23 Trust income 15.3 (0.2) (1) 6 Other service charges 12.6 0.2 2 9 Mortgage banking 15.8 1.2 8 32 Other 25.5 0.3 1 (28) ------ ---- ------- ---- Total $133.0 $3.6 3 % 3 % ====== (1) Excludes security gains (2) Linked quarter percentage growth is not annualized 12 [LOGO] NON-INTEREST EXPENSE (1) ($MM) Better or (Worse) vs. --------------------- 4Q01 3Q01 3Q01(2) 4Q00 ---- ---- ------- ---- Personnel costs $118.1 $2.6 2 % (12) % Occupancy & equipment 40.5 (1.1) (3) (3) Outside services 18.0 (0.6) (4) (11) Amortization of intangibles 10.1 --- --- 4 Marketing 6.3 0.6 8 40 Other 34.3 --- --- 17 ------ ----- ----- ------- Total $227.3 $1.5 1 % (2) % ====== (1) Excludes pre tax impact of restructuring and other charges of $15.1 MM in 4Q01 and $50.8 MM in 3Q01 (2) Linked quarter percentage growth is not annualized 13 [LOGO] CREDIT QUALITY OVERVIEW 4Q01 3Q01 4Q00 ---- ---- ---- NPAs/total loans + OREO 1.05 % 0.97 % 0.51 % Net charge-offs - Reported 1.04 0.74 0.50 - Adjusted (1) 0.98 0.61 0.50 90+ days past due 0.42 0.43 0.39 Consumer 0.61 0.55 0.62 Commercial/CRE 0.22 0.30 0.15 Reserve/total loans 1.90 1.67 1.45 Reserve/NPAs 180 171 279 (1) Excludes impact of net charge-offs on exited portfolios for which reserves were previously established 14 [LOGO] Non-performing Asset Composition [GRAPH] Commercial Comm. RE Residential RE OREO NPA/Loans + OREO 1Q00 40.6 24.5 10.9 16.3 0.45% 2Q00 45.1 22.8 11.6 15.7 0.46% 3Q00 44.9 23.0 8.6 12.0 0.44% 4Q00 55.8 28.0 10.2 11.4 0.51% 1Q01 62.7 36.2 12.0 14.0 0.60% 2Q01 116.0 28.2 11.9 9.9 0.79% 3Q01 148.2 42.2 11.7 8.1 0.97% 4Q01 160.9 48.4 11.8 6.4 1.05% 15 [LOGO] NET CHARGE-OFFS - ADJUSTED (1) 4Q01 3Q01 4Q00 ---- ---- ---- Commercial 1.39 % 0.56 % 0.29 % Commercial real estate 0.08 --- 0.01 Consumer Auto loans - indirect 1.46 1.05 1.46 Auto lease 1.55 1.27 0.86 ---- ---- ---- Indirect 1.51 1.17 1.14 Installment 0.86 0.88 0.62 Home equity lines 0.38 0.34 0.28 Residential real estate 0.17 0.05 0.15 ---- ---- ---- Total consumer 1.05 0.85 0.79 ---- ---- ---- Total 0.98 % 0.61 % 0.50 % (1) Excludes impact of net charge-offs on exited portfolios for which reserves were previously established. Reported total consumer net charge-offs were 1.17% in 4Q01, 1.07% in 3Q01 and 0.79% in 4Q00. Reported total net charge-offs were 1.04% in 4Q01, 0.74% in 3Q01 and 0.50% in 4Q00. 16 [LOGO] FULL-YEAR PERFORMANCE HIGHLIGHTS (1) 2001 2000 ---- ---- EPS - operating $1.17 $1.45 EPS - cash basis (2) 1.29 1.55 ROA 1.04 % 1.26 % ROE 12.3 15.8 Efficiency ratio 58.4 56.2 NIM 4.02 3.73 (1) Excluding after tax impact of restructuring and other charges of $115.0 MM in 2001 and $32.5 MM in 2000 (2) Cash basis ratios are based on operating earnings excluding goodwill amortization of $31.0 MM in 2001 and $28.3 MM in 2000, net of tax 17 [LOGO] 2002 OUTLOOK 18 [LOGO] 2002 ECONOMIC ENVIRONMENT ASSUMPTIONS - - First half of the year - Weak economy continues - Credit quality trends remain negative - - Second half of the year - Modest economic recovery begins - Credit quality trends modestly improve - - Interest rates - Modest increases throughout the year - Flattening of the yield curve 19 [LOGO] 2002 PERFORMANCE ASSUMPTIONS - - Operating earnings of $1.32 - $1.36 per share - - Continued high levels of charge-offs and NPAs - - Modest growth in loans - - Continued growth in core deposits - - Expansion of the net interest margin - - Modest expense growth - - Continued improvement in the efficiency ratio - - A $300 - $400 million share repurchase program 20 [LOGO] 2001 & 2002 SUMMARY 21 [LOGO] 2001 Accomplishments Summary - - Completed strategic review and initiated restructuring - - Strengthened management team - - Established regional management structure - - Decreased the common stock dividend - - Initiated sales management process - - Focused on Midwest franchise - Agreement to sell Florida operations at attractive price - Exited unprofitable e-businesses - - Consolidated 38 banking offices - - Improved efficiency ratio throughout the year - - Increased loan loss reserve POSITIONED FOR STEADY PROGRESS 22 [LOGO] 2002 Outlook Summary - - Economic environment / credit quality a challenge - - Improve cross-sell performance - - Improve financial reporting / accountability - - Improve customer service EXECUTE THE GAME PLAN 23 [LOGO] PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD LOOKING STATEMENT DISCLOSURE This presentation and discussion, including related questions and answers, may contain forward-looking statements, including certain plans, expectations, goals, and projections which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: - - Changes in economic conditions - The successful integration of acquired - - Movements in interest rates businesses - - Competitive pressures on product - The nature, extent and timing of pricing and services governmental actions and reforms - - Success and timing of business - Extended disruption of vital strategies infrastructure All forward-looking statements included in this discussion, including related questions and answers, are based on information available at the time of the discussion. Huntington assumes no obligation to update any forward-looking statement. 24 [LOGO] Huntington 25 HUNTINGTON BANCSHARES INCORPORATED Quarterly Financial Review December 2001 TABLE OF CONTENTS Consolidated Financial Highlights ........................................ 1 Consolidated Balance Sheets .............................................. 2 Consolidated Statements of Income ........................................ 3 Loan Portfolio and Deposit Composition ................................... 4 Analysis of Non-Interest Income and Expense For the Three and Twelve Months Ended December 31, 2001 and 2000 ...... 5 Net Interest Margin Analysis (Quarterly) ................................. 6-7 Selected Quarterly Income Statement Data ................................. 8 Key Ratios and Statistics (Quarterly) .................................... 9 Loan Loss Experience, Non-Performing Assets and Past Due Loans (Quarterly) 10 Selected Annual Income Statement Data .................................... 11 Net Interest Margin Analysis (Annual) .................................... 12-14 Loan Loss Experience, Non-Performing Assets and Past Due Loans (Annual) .. 15 Huntington Bancshares Incorporated Consolidated Financial Highlights Operating Basis (1) (in thousands of dollars, except per share amounts)
Three Months Ended December 31, 2001 2000 % Change - ---------------------------------------------- --------- ------- -------- Net Income ................................... $ 75,492 $76,222 (1.0)% Per Common Share Amounts (2) Net income -- Diluted ................... $0.30 $0.30 -- Cash dividends declared ................. $0.16 $0.20 (20.0) Average Common Shares Outstanding--Diluted (2) 251,858 251,401 0.2 Key Ratios Return on: Average total assets .................... 1.07% 1.06% 0.9 Average shareholders' equity ............ 12.68% 12.89% (1.6) Efficiency ratio ............................. 55.77% 58.48% (4.6) Average equity/average assets ................ 8.44% 8.21% 2.8 Net interest margin .......................... 4.11% 3.70% 11.1 Tangible or "Cash Basis" Results (3) Net income per share -- Diluted (2) .......... $0.33 $0.33 -- Return on: Average total assets .................... 1.21% 1.19% 1.7 Average shareholders' equity ............ 13.99% 14.20% (1.5)% Twelve Months Ended December 31, 2001 2000 % Change - ---------------------------------------------- --------- -------- -------- Net Income ................................... $ 293,522 $360,946 (18.7)% Per Common Share Amounts (2) Net income -- Diluted ................... $1.17 $ 1.45 (19.3) Cash dividends declared ................. $ 0.72 $ 0.76 (5.3) Average Common Shares Outstanding--Diluted (2) 251,716 249,570 0.9 Key Ratios Return on: Average total assets .................... 1.04% 1.26% (17.5) Average shareholders' equity ............ 12.32% 15.84% (22.2) Efficiency ratio ............................. 58.39% 56.19% 3.9 Average equity/average assets ................ 8.47% 7.94% 6.7 Net interest margin .......................... 4.02% 3.73% 7.8 Tangible or "Cash Basis" Results (3) Net income per share -- Diluted (2) .......... $ 1.29 $1.55 (16.7) Return on: Average total assets .................... 1.18% 1.39% (15.1) Average shareholders' equity ............ 13.63% 17.08% (20.2)%
(1) Income component excludes after-tax impact of restructuring and other charges ($9,843 in 4Q '01 and $115,001 for year 2001; $32,500 for year 2000). (2) Adjusted for stock splits and stock dividends, as applicable. (3) Tangible or "Cash Basis" net income excludes amortization of goodwill. Related asset amounts are also excluded from total assets. Page 1 Huntington Bancshares Incorporated Consolidated Balance Sheets (in thousands of dollars)
December 31, December 31, 2001 2000 -------------------- -------------------- Assets Cash and due from banks......................................................... $ 1,138,366 $ 1,322,700 Interest bearing deposits in banks.............................................. 21,205 4,970 Trading account securities...................................................... 13,392 4,723 Federal funds sold and securities purchased under resale agreements............. 83,275 133,183 Mortgages held for sale......................................................... 629,386 155,104 Securities available for sale - at fair value................................... 2,849,579 4,090,525 Investment securities - fair value $12,499 and $16,414, respectively............ 12,322 16,336 Total loans (1)................................................................. 21,601,873 20,610,191 Less allowance for loan losses............................................. 410,572 297,880 -------------------- -------------------- Net loans....................................................................... 21,191,301 20,312,311 -------------------- -------------------- Bank owned life insurance....................................................... 843,183 804,941 Goodwill and other intangibles, net of accumulated amortization................. 716,054 755,270 Premises and equipment.......................................................... 452,036 454,844 Customers' acceptance liability................................................. 13,670 17,366 Accrued income and other assets................................................. 536,390 527,104 -------------------- -------------------- Total Assets.................................................................... $28,500,159 $28,599,377 ==================== ==================== Liabilities and Shareholders' Equity Total deposits (1).............................................................. $20,187,304 $19,777,245 Short-term borrowings........................................................... 1,955,926 1,987,759 Bank acceptances outstanding.................................................... 13,670 17,366 Medium-term notes............................................................... 1,795,002 2,467,150 Subordinated notes and other long-term debt..................................... 944,330 870,976 Company obligated mandatorily redeemable preferred capital securities of subsidiary trusts holding solely the junior subordinated debentures of the parent company................................ 300,000 300,000 Accrued expenses and other liabilities.......................................... 887,487 812,834 -------------------- -------------------- Total Liabilities.......................................................... 26,083,719 26,233,330 -------------------- -------------------- Shareholders' equity Preferred stock - authorized 6,617,808 shares; none issued or outstanding....................................................... --- --- Common stock - without par value; authorized 500,000,000 shares; issued 257,866,255 and 257,866,255 shares, respectively; outstanding 251,193,814 and 250,859,470 shares, respectively.................................................. 2,490,724 2,493,645 Less 6,672,441 and 7,006,785 treasury shares, respectively................. (123,849) (129,432) Accumulated other comprehensive income (loss).............................. 25,488 (24,520) Retained earnings.......................................................... 24,077 26,354 -------------------- -------------------- Total Shareholders' Equity................................................. 2,416,440 2,366,047 -------------------- -------------------- Total Liabilities and Shareholders' Equity...................................... $28,500,159 $28,599,377 ==================== ====================
(1) See page 4 for detail of total loans and total deposits. Page 2 Huntington Bancshares Incorporated Consolidated Statements of Income (in thousands of dollars, except per share amounts)
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------ ----------------------------- Operating Basis (1) 2001 2000 2001 2000 - ------------------------------------------------------------ ---------- ---------- ---------- ----------- Interest and fee income Loans.................................................. $ 389,492 $ 460,151 $1,692,311 $ 1,808,254 Securities............................................. 46,452 73,292 216,215 284,719 Other.................................................. 7,807 4,218 30,993 15,532 -------------- ---------------- -------------- -------------- Total Interest Income........................ 443,751 537,661 1,939,519 2,108,505 -------------- ---------------- -------------- -------------- Interest expense Deposits............................................... 139,541 204,555 657,892 782,076 Short-term borrowings.................................. 12,725 32,156 95,859 113,134 Medium-term notes...................................... 21,451 45,822 121,701 189,311 Subordinated notes and other long-term debt............ 14,796 22,062 67,885 81,552 -------------- ---------------- -------------- -------------- Total Interest Expense....................... 188,513 304,595 943,337 1,166,073 -------------- ---------------- -------------- -------------- Net Interest Income.......................... 255,238 233,066 996,182 942,432 Provision for loan losses................................... 58,275 32,548 187,075 90,479 -------------- ---------------- -------------- -------------- Net Interest Income After Provision for Loan Losses......... 196,963 200,518 809,107 851,953 -------------- ---------------- -------------- -------------- Total non-interest income (2)............................... 133,097 130,549 514,730 493,559 Total non-interest expense (2).............................. 227,354 223,850 923,630 835,617 -------------- ---------------- -------------- -------------- Income Before Income Taxes................... 102,706 107,217 400,207 509,895 Income taxes................................................ 27,214 30,995 106,685 148,949 -------------- ---------------- -------------- -------------- Net Income................................... $ 75,492 $ 76,222 $ 293,522 $ 360,946 ============== ================ ============== ============== Per Common Share (3) Net income Basic............................................. $0.30 $0.30 $1.17 $1.45 Diluted........................................... $0.30 $0.30 $1.17 $1.45 Cash dividends declared................................ $0.16 $0.20 $0.72 $0.76 Average Common Shares (3) Basic............................................. 251,193,384 250,854,082 251,078,025 248,708,965 Diluted........................................... 251,857,805 251,401,460 251,715,849 249,570,098
(1) Income component excludes the after-tax impact of restructuring and other charges ($9,843 in 4Q '01 and $115,001 for year 2001; $32,500 for year 2000). (2) See page 5 for detail of non-interest income and non-interest expense. (3) Adjusted for stock splits and stock dividends, as applicable. Page 3 Huntington Bancshares Incorporated Loans and Deposits (in thousands of dollars) Loan Portfolio Composition - --------------------------------------------------------------------------------
December 31, December 31, 2001 2000 ------------------------------ ---------------------------- Balance % Balance % ------------------- -------- --------------- ----------- Commercial (unearned income $2,859 and $1,538)....................... $ 6,439,372 29.8 $ 6,633,985 32.2 Commercial Real Estate............................................... 3,975,562 18.4 3,572,376 17.3 ------------------- --------------- Total Commercial and Commercial Real Estate.................. 10,414,934 48.2 10,206,361 49.5 ------------------- --------------- Consumer Auto Leases (unearned income $500,430 and $519,519)............. 3,207,514 14.8 3,105,689 15.1 Auto Loans - Indirect (unearned income $19 and $35)............. 2,883,279 13.3 2,507,454 12.2 Home Equity Lines............................................... 2,535,885 11.7 2,167,865 10.5 Residential Mortgage............................................ 970,704 4.5 946,584 4.6 Other Loans (unearned income $24 and $41)....................... 1,589,557 7.4 1,676,238 8.1 ------------------- --------------- Total Consumer............................................... 11,186,939 51.8 10,403,830 50.5 ------------------- --------------- Total Loans.................................................. $ 21,601,873 100.0 $20,610,191 100.0 =================== ===============
Deposit Composition - -------------------------------------------------------------------------------
December 31, December 31, 2001 2000 ------------------------------ ---------------------------- Balance % Balance % ------------------- -------- --------------- ----------- Demand deposits Non-interest bearing............................................ $ 3,635,173 18.0 $ 3,480,876 17.6 Interest bearing................................................ 5,723,160 28.4 4,645,127 23.5 Savings deposits..................................................... 3,466,305 17.2 3,527,796 17.8 Certificates of deposit Less than $100,000.............................................. 5,774,191 28.6 5,938,486 30.0 $100,000 or more................................................ 1,224,823 6.1 1,520,547 7.7 ------------------- --------------- Total Core Deposits.......................................... 19,823,652 98.2 19,112,832 96.6 ------------------- --------------- Other domestic time deposits......................................... 137,915 0.7 256,106 1.3 Foreign time deposits................................................ 225,737 1.1 408,307 2.1 ------------------- --------------- Total Deposits............................................... $20,187,304 100.0 $19,777,245 100.0 =================== ===============
Page 4 Huntington Bancshares Incorporated Non-Interest Income and Non-Interest Expense (in thousands of dollars) Analysis of Non-Interest Income - --------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31, ---------------------------- Percent ----------------------------- Percent Operating Basis (1) 2001 2000 Change 2001 2000 Change - ----------------------------------------- ------------ -------------- ----------- ------------ -------------- ---------- Service charges on deposit accounts........... $ 42,753 $ 39,248 8.9 % $ 164,052 $ 160,727 2.1 % Brokerage and insurance income................ 20,966 17,078 22.8 79,034 61,871 27.7 Mortgage banking.............................. 15,768 11,976 31.7 59,148 38,025 55.6 Trust services................................ 15,321 14,404 6.4 60,298 53,613 12.5 Other service charges and fees................ 12,552 11,546 8.7 48,217 43,883 9.9 Bank Owned Life Insurance income.............. 9,560 11,086 (13.8) 38,241 39,544 (3.3) Other......................................... 16,088 24,366 (34.0) 59,767 58,795 1.7 ------------ ------------ ------------ ------------- Total Non-Interest income before securities gains........................... 133,008 129,704 2.5 508,757 456,458 11.5 Securities gains.............................. 89 845 N.M. 5,973 37,101 N.M. ------------ ------------ ------------ ------------- Total Non-Interest Income .................... $ 133,097 $ 130,549 2.0 % $ 514,730 $ 493,559 4.3 % ============ ============ ============ =============
Analysis of Non-Interest Expense - ----------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31, ---------------------------- Percent ----------------------------- Percent Operating Basis (1) 2001 2000 Change 2001 2000 Change - ----------------------------------------- ------------ -------------- ----------- ------------ -------------- ---------- Personnel costs............................... $118,143 $ 105,810 11.7 % $478,640 $ 421,750 13.5 % Equipment..................................... 20,593 20,811 (1.0) 80,560 78,069 3.2 Net occupancy ................................ 19,950 18,614 7.2 77,184 75,882 1.7 Outside data processing and other services.... 17,992 16,142 11.5 69,692 62,011 12.4 Amortization of intangible assets............. 10,100 10,494 (3.8) 41,225 39,207 5.1 Telecommunications............................ 6,793 6,524 4.1 27,984 26,225 6.7 Marketing..................................... 6,345 10,592 (40.1) 31,057 34,884 (11.0) Professional services......................... 6,235 6,785 (8.1) 23,879 20,819 14.7 Printing and supplies......................... 4,293 5,212 (17.6) 18,367 19,634 (6.5) Franchise and other taxes..................... 2,893 3,163 (8.5) 9,729 11,077 (12.2) Other......................................... 14,017 19,703 (28.9) 65,313 46,059 41.8 ------------ ------------ ------------ --------------- Total Non-Interest Expense ................... $ 227,354 $ 223,850 1.6 % $923,630 $ 835,617 10.5 % ============ ============ ============ ===============
(1) Excludes the impact of restructuring and other charges. N.M. - Not Meaningful Page 5 Huntington Bancshares Incorporated - -------------------------------------------------------------------------------- Net Interest Margin Analysis (Quarterly Data)
Average Balance (in millions of dollars) ----------------------------------------------------------------------------------- 2001 2000 ---------------------------------------- ----------------------------------------- Fully Tax Equivalent Basis (1) Fourth Third Second First Fourth Third Second First - -------------------------------------------- -------- -------- --------- ---------- ---------- --------- --------- --------- Assets Interest bearing deposits in banks.......... $ 14 $ 5 $ 5 $ 5 $ 5 $ 5 $ 6 $ 6 Trading account securities.................. 8 8 39 48 17 11 18 14 Federal funds sold and securities purchased under resale agreements.................. 86 86 93 164 85 136 105 23 Mortgages held for sale..................... 433 344 420 240 129 99 99 109 Securities: Taxable............................... 2,720 2,896 3,368 3,606 4,410 4,273 4,067 4,515 Tax exempt............................ 108 140 201 248 264 270 276 282 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total Securities................. 2,828 3,036 3,569 3,854 4,674 4,543 4,343 4,797 --------- --------- ---------- ---------- ---------- --------- --------- --------- Loans: Commercial............................. 6,491 6,681 6,741 6,678 6,543 6,454 6,439 6,345 Commercial Real Estate................. 3,889 3,734 3,597 3,587 3,533 3,476 3,426 3,394 Consumer Auto Leases...................... 3,229 3,243 3,222 3,117 3,088 3,018 2,942 2,826 Auto Loans - Indirect............ 2,903 2,806 2,575 2,499 2,601 2,719 3,082 3,532 Home Equity Lines................ 2,489 2,372 2,271 2,189 2,119 2,009 1,861 1,748 Residential Mortgage............. 892 854 942 960 940 1,325 1,473 1,449 Other Loans...................... 1,619 1,658 1,673 1,674 1,666 1,622 1,540 1,504 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total Consumer................... 11,132 10,933 10,683 10,439 10,414 10,693 10,898 11,059 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total Loans................................. 21,512 21,348 21,021 20,704 20,490 20,623 20,763 20,798 --------- --------- ---------- ---------- ---------- --------- --------- --------- Allowance for loan losses/loan fees......... 393 358 316 307 302 302 302 306 --------- --------- ---------- ---------- ---------- --------- --------- --------- Net loans (2).............................. 21,119 20,990 20,705 20,397 20,188 20,321 20,461 20,492 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total earning assets........................ 24,881 24,827 25,147 25,015 25,400 25,417 25,334 25,747 --------- --------- ---------- ---------- ---------- --------- --------- --------- Cash and due from banks..................... 876 910 910 952 960 968 1,046 1,058 All other assets............................ 2,613 2,609 2,608 2,579 2,597 2,615 2,496 2,457 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total Assets................................ $27,977 $27,988 $ 28,349 $ 28,239 $ 28,655 $ 28,698 $ 28,574 $ 28,956 ========= ========= ========== ========== ========== ========= ========= ========= Liabilities and Shareholders' Equity Core deposits Non-interest bearing deposits.......... $ 3,406 $.3,341 $.3,252 $ 3,213 $ 3,308 $ 3,425 $ 3,485 $ 3,466 Interest bearing demand deposits....... 5,519 5,096 4,799 4,597 4,496 4,385 4,228 4,053 Savings deposits....................... 3,388 3,472 3,547 3,505 3,498 3,528 3,583 3,645 Certificates of deposit................ 7,122 7,202 7,012 7,318 7,522 7,450 7,247 7,271 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total core deposits............... 19,435 19,111 18,610 18,633 18,824 18,788 18,543 18,435 --------- --------- ---------- ---------- ---------- --------- --------- --------- Other domestic time deposits................ 109 120 118 167 365 433 506 707 Foreign time deposits....................... 230 257 377 267 322 561 626 649 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total deposits......................... 19,774 19,488 19,105 19,067 19,511 19,782 19,675 19,791 --------- --------- ---------- ---------- ---------- --------- --------- --------- Short-term borrowings....................... 1,924 2,157 2,759 2,504 2,133 2,014 1,761 1,954 Medium-term notes........................... 1,863 1,990 2,005 2,240 2,665 2,592 3,042 3,283 Subordinated notes and other long-term debt, including capital securities....... 1,166 1,167 1,180 1,171 1,171 1,171 1,148 1,004 --------- --------- ---------- ---------- ---------- --------- --------- --------- Interest bearing liabilities........... 21,321 21,461 21,797 21,769 22,172 22,134 22,141 22,566 --------- --------- ---------- ---------- ---------- --------- --------- --------- All other liabilities....................... 889 811 897 869 822 787 743 718 Shareholders' equity........................ 2,361 2,375 2,403 2,388 2,353 2,352 2,205 2,206 --------- --------- ---------- ---------- ---------- --------- --------- --------- Total Liabilities and Shareholder's Equity.. $27,977 $27,988 $ 28,349 $28,239 $ 28,655 $ 28,698 $ 28,574 $ 28,956 ========= ========= ========== ========== ========== ========= ========= ========= Net interest rate spread.................... Impact of non-interest bearing funds on margin Net Interest Margin.........................
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. Page 6 Huntington Bancshares Incorporated - -------------------------------------------------------------------------------- Net Interest Margin Analysis (Quarterly Data) - Continued
Average Rate ------------------------------------------------------------------------------ 2001 2000 -------------------------------------- --------------------------------------- Fully Tax Equivalent Basis (1) Fourth Third Second First Fourth Third Second First - ----------------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Assets Interest bearing deposits in banks............. 2.09 % 3.75 % 5.09 % 5.24 % 5.50 % 6.13 % 5.13 % 3.69 % Trading account securities..................... 3.59 3.83 5.15 5.52 6.56 6.54 8.67 6.26 Federal funds sold and securities purchased under resale agreements..................... 2.18 3.20 4.21 5.78 6.53 6.43 6.10 6.11 Mortgages held for sale........................ 6.64 7.18 6.96 7.19 7.74 8.51 8.11 7.59 Securities: Taxable.................................. 6.62 6.71 6.26 6.72 6.31 6.33 6.20 6.14 Tax exempt............................... 7.81 7.38 7.26 7.55 7.53 7.57 7.63 7.68 Total Securities.................... 6.66 6.75 6.32 6.77 6.38 6.40 6.29 6.23 Loans: Commercial................................ 5.86 6.92 7.44 8.19 8.65 8.74 8.65 8.31 Commercial Real Estate.................... 6.33 7.20 7.74 8.37 8.73 8.71 8.59 8.36 Consumer Auto Leases......................... 6.58 6.67 6.71 6.90 6.92 6.79 6.72 6.65 Auto Loans - Indirect............... 8.24 8.45 8.70 8.83 8.69 8.76 8.23 8.21 Home Equity Lines................... 6.22 7.00 8.04 8.93 9.05 8.78 8.21 7.93 Residential Mortgage................ 7.17 7.54 7.72 7.91 7.94 7.64 7.62 7.54 Other Loans......................... 9.09 9.19 9.13 9.19 9.09 9.02 8.93 8.92 Total Consumer...................... 7.34 7.65 7.94 8.25 8.24 8.11 7.83 7.78 Total Loans.................................... 7.22 7.34 7.75 8.25 8.45 8.41 8.21 8.04 Allowance for loan losses/loan fees............ Net loans (2)................................. 7.22 7.87 8.31 8.74 8.96 8.90 8.69 8.52 Total earning assets........................... 7.12 % 7.70 % 7.98 % 8.39 % 8.47 % 8.43 % 8.27 % 8.08 % Cash and due from banks........................ All other assets............................... Total Assets................................... Liabilities and Shareholders' Equity Core deposits Non-interest bearing deposits............. Interest bearing demand deposits.......... 2.00 % 2.74 % 2.87 % 3.29 % 3.62 % 3.47 % 3.32 % 2.97 % Savings deposits.......................... 2.11 3.00 3.42 3.85 4.28 4.14 4.21 3.80 Certificates of deposit................... 5.10 5.40 5.74 6.01 6.07 5.94 5.64 5.44 Total core deposits.................. 2.81 3.31 3.55 3.89 4.96 4.82 4.65 4.37 Other domestic time deposits................... 3.55 4.42 5.57 6.37 6.68 6.55 6.28 6.10 Foreign time deposits.......................... 1.99 3.39 4.11 5.45 6.37 6.63 6.66 5.65 Total deposits............................ 2.80 3.32 3.58 3.94 5.02 4.93 4.78 4.50 Short-term borrowings.......................... 2.65 3.69 4.37 5.37 6.00 6.12 5.77 5.10 Medium-term notes.............................. 4.58 6.12 6.59 6.64 6.85 6.81 6.46 6.18 Subordinated notes and other long-term debt, including capital securities.......... 4.96 5.19 5.96 6.81 7.42 7.39 7.08 6.82 Interest bearing liabilities.............. 3.51 % 4.23 % 4.62 % 5.12 % 5.46 % 5.39 % 5.21 % 4.90 % All other liabilities.......................... Shareholders' equity........................... Total Liabilities and Shareholder's Equity..... Net interest rate spread....................... 3.61 % 3.47 % 3.36 % 3.27 % 3.01 % 3.04 % 3.06 % 3.18 % Impact of non-interest bearing funds on margin. 0.50 % 0.57 % 0.61 % 0.66 % 0.69 % 0.70 % 0.66 % 0.60 % Net Interest Margin............................ 4.11 % 4.04 % 3.97 % 3.93 % 3.70 % 3.74 % 3.72 % 3.78 %
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. Page 7 Huntington Bancshares Incorporated Selected Quarterly Income Statement Data (in thousands of dollars, except per share amounts)
2001 2000 ---------------------------------------------- ---------------------------------------------- Operating Basis (1) Fourth Third Second First Fourth Third Second First - ----------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Interest Income.............. $443,751 $ 478,834 $498,959 $ 517,975 $ 537,661 $ 535,791 $ 519,496 $ 515,557 Total Interest Expense............. 188,513 229,047 250,926 274,851 304,595 299,922 286,690 274,866 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Interest Income................ 255,238 249,787 248,033 243,124 233,066 235,869 232,806 240,691 Provision for loan losses.......... 58,275 49,559 45,777 33,464 32,548 26,396 15,834 15,701 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Interest Income After Provision for Loan Losses........ 196,963 200,228 202,256 209,660 200,518 209,473 216,972 224,990 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Service charges on deposit accounts 42,753 41,719 40,673 38,907 39,248 39,722 40,097 41,660 Brokerage and insurance income..... 20,966 19,912 19,388 18,768 17,078 15,564 13,945 15,284 Mortgage banking .................. 15,768 14,616 18,733 10,031 11,976 9,412 8,122 8,515 Trust services .................... 15,321 15,485 15,178 14,314 14,404 13,181 13,165 12,863 Other service charges and fees..... 12,552 12,350 12,217 11,098 11,546 11,238 11,250 9,849 Bank Owned Life Insurance income... 9,560 9,560 9,561 9,560 11,086 9,786 9,486 9,186 Other.............................. 16,088 15,755 14,956 12,968 24,366 11,370 19,485 3,574 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Non-Interest income before securities gains................ 133,008 129,397 130,706 115,646 129,704 110,273 115,550 100,931 Securities gains................... 89 1,059 2,747 2,078 845 11,379 114 24,763 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Non-Interest Income ......... 133,097 130,456 133,453 117,724 130,549 121,652 115,664 125,694 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Personnel costs.................... 118,143 120,767 122,068 117,662 105,810 109,463 104,133 102,344 Equipment ......................... 20,593 20,151 19,844 19,972 20,811 18,983 18,863 19,412 Net occupancy ..................... 19,950 19,266 18,188 19,780 18,614 19,520 18,613 19,135 Outside data processing and other services......................... 17,992 17,375 17,671 16,654 16,142 15,531 15,336 15,002 Amortization of intangible assets.. 10,100 10,114 10,435 10,576 10,494 10,311 9,206 9,196 Telecommunications................. 6,793 6,859 7,207 7,125 6,524 6,480 6,472 6,749 Marketing.......................... 6,345 6,921 7,852 9,939 10,592 8,557 7,742 7,993 Professional services.............. 6,235 5,912 6,763 4,969 6,785 4,719 4,815 4,500 Printing and supplies.............. 4,293 4,450 4,565 5,059 5,212 4,849 4,956 4,617 Franchise and other taxes.......... 2,893 2,470 2,246 2,120 3,163 2,841 2,635 2,438 Other.............................. 14,017 14,605 16,457 20,234 19,703 12,331 5,305 8,720 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Non-Interest Expense ........ 227,354 228,890 233,296 234,090 223,850 213,585 198,076 200,106 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Income Before Income Taxes ........ 102,706 101,794 102,413 93,294 107,217 117,540 134,560 150,578 Income taxes ...................... 27,214 26,134 27,909 25,428 30,995 34,510 37,039 46,405 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Income ........................ $ 75,492 $ 75,660 $ 74,504 $ 67,866 $ 76,222 $ 83,030 $ 97,521 $ 104,173 ========== ========== ========== ========== ========== ========== ========== ========== Per Common Share (2) Net income Diluted....................... 0.30 .30 .30 .27 .30 .33 .40 .42 Diluted - Cash Basis.......... 0.33 .33 .33 .30 .33 .36 .42 .44 Cash Dividends Declared........... 0.16 .16 .20 .20 .20 .20 .18 .18 Fully Tax Equivalent Margin: Net Interest Income ............... $ 255,238 $ 249,787 $ 248,033 $ 243,124 $233,066 $235,869 $232,806 $ 240,691 Tax Equivalent Adjustment (3) ..... 1,292 1,442 1,616 2,002 2,057 2,022 2,074 2,157 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Tax Equivalent Net Interest Income $ 256,530 $251,229 $ 249,649 $245,126 $ 235,123 $ 237,891 $234,880 $242,848 ========== ========== ========== ========== ========== ========== ========== ==========
(1) Excludes the after-tax impact of restructuring and other charges ($9,843 in 4Q '01; $33,031 in 3Q '01; $72,127 in 2Q '01; $32,500 in 3Q '00). (2) Adjusted for stock splits and stock dividends, as applicable. (3) Calculated assuming a 35% tax rate. Page 8 Huntington Bancshares Incorporated Stock Summary, Key Ratios and Statistics Quarterly Common Stock Summary (1) - ----------------------------------
2001 2000 -------------------------------------------------------------------------------- Fourth Third Second First Fourth Third Second First ------------------ ------------------ ------------------ --------------------- High ........................ $ 17.490 $ 19.280 $ 17.000 $ 18.000 $ 16.375 $ 18.813 $ 21.307 $ 21.818 Low ......................... 14.510 15.150 13.875 12.625 12.516 14.375 14.091 16.136 Close ....................... 17.190 17.310 16.375 14.250 16.188 14.688 14.375 20.341 Cash dividends declared...... $ 0.16 $ 0.16 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.18 $ 0.18 -------- ------- ------- ------- ------- ------- ------- -------
Note: Stock price quotations were obtained from NASDAQ. Quarterly Key Ratios and Statistics - -----------------------------------
2001 2000 -------------------------------------------------------------------------------- Fourth Third Second First Fourth Third Second First ------------------ ------------------ ------------------ --------------------- Margin Analysis - As a % of Average Earning Assets (2) - ----------------------------- Interest Income ............. 7.12% 7.70% 7.98% 8.39% 8.47% 8.43% 8.27% 8.08% Interest Expense ............ 3.01% 3.66% 4.01% 4.46% 4.77% 4.69% 4.55% 4.30% ---- ---- ---- ---- ---- ---- ---- ---- Net Interest Margin .... 4.11% 4.04% 3.97% 3.93% 3.70% 3.74% 3.72% 3.78% ==== ==== ==== ==== ==== ==== ==== ==== Return on (3) - ----------------------------- Average total assets ...... 1.07% 1.07% 1.05% 0.97% 1.06% 1.15% 1.37% 1.45% Average total assets - cash basis .... 1.21% 1.21% 1.19% 1.11% 1.19% 1.29% 1.49% 1.57% Average shareholders' equity ................. 12.68% 12.64% 12.43% 11.53% 12.89% 14.04% 17.79% 18.99% Average shareholders' equity - cash basis .... 13.99% 13.93% 13.72% 12.86% 14.20% 15.33% 18.97% 20.17% Efficiency ratio (3) ........ 55.77% 57.48% 58.59% 61.95% 58.48% 58.38% 53.90% 53.93% Effective tax rate (3) ...... 26.50% 25.67% 27.25% 27.26% 28.91% 29.36% 27.53% 30.82% Quarterly Capital Data (in millions of dollars) - ----------------------------- Total Risk-Adjusted Assets... $ 27,781 $27,757 $27,375 $27,230 $26,880 $26,370 $25,900 $25,251 Tier 1 Risk-Based Capital Ratio .................. 7.27% 6.97% 7.01% 7.19% 7.19% 7.20% 7.40% 7.23% Total Risk-Based Capital Ratio .................. 10.33% 10.13% 10.20% 10.31% 10.46% 10.64% 10.90% 10.90% Tier 1 Leverage Ratio ....... 7.41% 7.10% 6.96% 7.12% 6.93% 6.80% 6.89% 6.45% Tangible Equity/Asset Ratio .................. 6.04% 5.96% 5.97% 6.01% 5.87% 5.73% 5.78% 5.49%
- ------------------------------------- (1) Adjusted for stock splits and stock dividends, as applicable. (2) Presented on a fully tax equivalent basis assuming a 35% tax rate. (3) Income component excludes the impact of restructuring and other charges. (4) Estimated. Page 9 Huntington Bancshares Incorporated Loan Loss Reserves and Asset Quality (in thousands of dollars)
Quarterly Loan Loss Experience - ------------------------------ 2001 2000 ----------------------------------------------------------------------------------------- Fourth Third Second First Fourth Third Second ----------------------------------------------------------------------------------------- Allowance for loan losses, beginning of period ................ $ 360,446 $ 352,243 $ 301,777 $ 297,880 $ 294,686 $ 296,891 $ 296,743 Allowance of assets acquired/other .... -- -- -- -- -- -- 7,900 Loan losses ........................... (66,808) (49,386) (75,472) (35,649) (32,929) (29,499) (22,810) Recoveries of loans previously charged off ........................ 10,662 9,643 10,007 7,556 7,431 5,705 7,280 Allowance of securitized loans ........ (2,003) (1,613) (1,564) (1,474) (3,856) (4,807) (8,056) Provision for loan losses (1) ......... 108,275 49,559 117,495 33,464 32,548 26,396 15,834 --------- --------- --------- --------- --------- --------- --------- Allowance for loan losses, end of period ...................... $ 410,572 $ 360,446 $ 352,243 $ 301,777 $ 297,880 $ 294,686 $ 296,891 ========= ========= ========= ========= ========= ========= ========= As a % of average total loans Net loan losses--annualized ......... 1.04 % 0.74 % 1.25 % 0.55 % 0.50 % 0.46 % 0.30 % Net loan losses--annualized excluding restructuring and other charges ................... 0.98 % 0.61 % 0.73 % 0.55 % 0.50 % 0.46 % 0.30 % Allowance for loan losses as a % of total loans ..................... 1.90 % 1.67 % 1.67 % 1.45 % 1.45 % 1.45 % 1.45 % Net loan loss coverage (2) ............ 2.87 x 3.81 x 3.89 x 4.51 x 5.48 x 6.05 x 9.68 x
Quarterly Loan Loss Experience - ------------------------------ 2000 ---------- First ---------- Allowance for loan losses, beginning of period ................ $ 299,309 Allowance of assets acquired/other .... -- Loan losses ........................... (25,607) Recoveries of loans previously charged off ........................ 7,340 Allowance of securitized loans ........ -- Provision for loan losses (1) ......... 15,701 --------- Allowance for loan losses, end of period ...................... $ 296,743 ========= As a % of average total loans Net loan losses--annualized ......... 0.35 % Net loan losses--annualized excluding restructuring and other charges ................... 0.35 % Allowance for loan losses as a % of total loans ..................... 1.45 % Net loan loss coverage (2) ............ 9.10 x
(1) Includes the impact of restructuring and other charges. (2) Income before taxes (excluding restructuring and other charges) and the provision for loan losses to net loan losses.
Quarterly Non-Performing Assets and Past Due Loans - -------------------------------------------------- 2001 2000 ---------------------------------------------------------------------------------------- Fourth Third Second First Fourth Third Second ---------------------------------------------------------------------------------------- Non-accrual loans: Commercial ......................... $159,637 $148,177 $116,044 $ 62,716 $ 55,804 $ 44,918 $ 45,138 Commercial Real Estate ............. 48,360 40,882 26,870 34,893 26,702 21,695 21,450 Residential Mortgage ............... 11,836 11,666 11,868 11,949 10,174 8,588 11,548 -------- -------- -------- -------- -------- -------- -------- Total Nonaccrual Loans ................ 219,833 200,725 154,782 109,558 92,680 75,201 78,136 Renegotiated loans .................... 1,276 1,286 1,290 1,297 1,304 1,311 1,317 -------- -------- -------- -------- -------- -------- -------- Total Non-Performing Loans ............ 221,109 202,011 156,072 110,855 93,984 76,512 79,453 Other real estate, net ................ 6,384 8,050 9,913 14,031 11,413 11,982 15,670 -------- -------- -------- -------- -------- -------- -------- Total Non-Performing Assets ........... $227,493 $210,061 $165,985 $124,886 $105,397 $ 88,494 $ 95,123 ======== ======== ======== ======== ======== ======== ======== Non-performing loans as a % of total loans .................... 1.02 % 0.94 % 0.74 % 0.53 % 0.46 % 0.38 % 0.39 % Non-performing assets as a % of total loans and other real estate ... 1.05 % 0.97 % 0.79 % 0.60 % 0.51 % 0.44 % 0.46 % Allowance for loan losses as a % of non-performing loans ................ 185.69 % 178.43 % 225.69 % 272.23 % 316.95 % 385.15 % 373.67 % Allowance for loan losses and other real estate as a % of non-performing assets ............... 180.13 % 171.08 % 211.20 % 239.42 % 279.16 % 326.77 % 306.89 % Accruing loans past due 90 days or more ........................ $ 91,635 $ 92,791 $ 67,077 $102,658 $ 80,306 $ 80,290 $ 62,775 ======== ======== ======== ======== ======== ======== ========
2000 --------- First --------- Non-accrual loans: Commercial ......................... $ 44,404 Commercial Real Estate ............. 21,687 Residential Mortgage ............... 10,892 -------- Total Nonaccrual Loans ................ 76,983 Renegotiated loans .................... 1,324 -------- Total Non-Performing Loans ............ 78,307 Other real estate, net ................ 13,904 -------- Total Non-Performing Assets ........... $ 92,211 ======== Non-performing loans as a % of total loans .................... 0.38 % Non-performing assets as a % of total loans and other real estate ... 0.45 % Allowance for loan losses as a % of non-performing loans ................ 378.95 % Allowance for loan losses and other real estate as a % of non-performing assets ............... 316.30 % Accruing loans past due 90 days or more ........................ $ 60,156 ========
Page 10 Huntington Bancshares Incorporated Selected Annual Income Statement Data (in thousands of dollars, except per share amounts)
Operating Basis(1) 2001 2000 1999 1998 1997 1996 - ------------------- ----------- ---------- ---------- ---------- ---------- ---------- Total Interest Income .................... $1,939,519 $2,108,505 $2,026,002 $1,999,364 $1,981,473 $1,775,734 Total Interest Expense ................... 943,337 1,166,073 984,240 978,271 954,243 880,648 ---------- ---------- ---------- ---------- ---------- ---------- Net Interest Income ...................... 996,182 942,432 1,041,762 1,021,093 1,027,230 895,086 Provision for loan losses ................ 187,075 90,479 88,447 105,242 107,797 76,371 ---------- ---------- ---------- ---------- ---------- ---------- Net Interest Income After Provision for Loan Losses .............. 809,107 851,953 953,315 915,851 919,433 818,715 ---------- ---------- ---------- ---------- ---------- ---------- Service charges on deposit accounts ...... 164,052 160,727 156,315 126,403 117,852 107,669 Brokerage and insurance income ........... 79,034 61,871 52,076 36,710 27,084 20,856 Trust services ........................... 60,298 53,613 52,030 50,754 48,102 42,237 Mortgage banking ......................... 59,148 38,025 56,890 60,006 55,715 43,942 Other service charges and fees ........... 48,217 43,883 37,301 29,202 22,705 12,013 Bank Owned Life Insurance income ......... 38,241 39,544 37,560 28,712 -- -- Other .................................... 59,767 58,795 59,901 76,620 63,403 69,726 ---------- ---------- ---------- ---------- ---------- ---------- Total Non-Interest income before securities gains ...................... 508,757 456,458 452,073 408,407 334,861 296,443 ---------- ---------- ---------- ---------- ---------- ---------- Securities gains ......................... 5,973 37,101 12,972 29,793 7,978 17,620 ---------- ---------- ---------- ---------- ---------- ---------- Total Non-Interest Income ................ 514,730 493,559 465,045 438,200 342,839 314,063 ---------- ---------- ---------- ---------- ---------- ---------- Personnel costs .......................... 478,640 421,750 419,901 428,539 392,793 360,865 Equipment ................................ 80,560 78,069 66,666 62,040 57,867 50,887 Net occupancy ............................ 77,184 75,882 62,169 54,123 49,509 49,676 Outside data processing and other services 69,692 62,011 62,886 74,795 66,683 58,367 Amortization of intangible assets ........ 41,225 39,207 37,297 25,689 13,019 10,220 Marketing ................................ 31,057 34,884 32,506 32,260 32,782 20,331 Telecommunications ....................... 27,984 26,225 28,519 29,429 21,527 16,567 Professional services .................... 23,879 20,819 21,169 25,160 24,931 20,313 Printing and supplies .................... 18,367 19,634 20,227 23,673 21,584 19,602 Franchise and other taxes ................ 9,729 11,077 14,674 22,103 19,836 20,359 Other .................................... 65,313 46,059 49,314 46,118 51,414 48,323 ---------- ---------- ---------- ---------- ---------- ---------- Total Non-Interest Expense ............... 923,630 835,617 815,328 823,929 751,945 675,510 ---------- ---------- ---------- ---------- ---------- ---------- Income Before Income Taxes ............... 400,207 509,895 603,032 530,122 510,327 457,268 Income taxes ............................. 106,685 148,949 188,588 168,054 171,430 152,999 ---------- ---------- ---------- ---------- ---------- ---------- Net Income ............................... $ 293,522 $ 360,946 $ 414,444 $ 362,068 $ 338,897 $ 304,269 ========== ========== ========== ========== ========== ========== Per Common Share(2) Net income Basic ............................... $ 1.17 $ 1.45 $ 1.63 $ 1.42 $ 1.33 $ 1.19 Diluted ............................. $ 1.17 $ 1.45 $ 1.62 $ 1.40 $ 1.32 $ 1.18 Cash Dividends Declared ................. $ 0.72 $ 0.76 $ 0.68 $ 0.62 $ 0.56 $ 0.51 Fully Tax Equivalent Margin: Net Interest Income ...................... $ 996,182 $ 942,432 $1,041,762 $1,021,093 $1,027,230 $ 895,086 Tax Equivalent Adjustment(3) ............. 6,352 8,310 9,423 10,307 11,864 12,363 ---------- ---------- ---------- ---------- ---------- ---------- Tax Equivalent Net Interest Income ....... $1,002,534 $ 950,742 $1,051,185 $1,031,400 $1,039,094 $ 907,449 ========== ========== ========== ========== ========== ==========
(1) Excludes the after-tax impact of restructuring and other charges ($115,001 in 2001; $32,500 in 2000; $62,914 in 1999; $60,300 in 1998; and $46,234 in 1997) and $108,530 gain from sale of credit card portfolio in 1999. (2) Adjusted for stock splits and stock dividends, as applicable. (3) Calculated assuming a 35% tax rate. Page 11 Huntington Bancshares Incorporated - -------------------------------------------------------------------------------- Net Interest Margin Analysis (Annual Data)
Average Balance (in millions of dollars) --------------------------------------------------------------------------- Fully Tax Equivalent Basis(1) 2001 2000 1999 1998 1997 1996 - ----------------------------- ------- -------- -------- -------- -------- -------- Assets Interest bearing deposits in banks ................ $ 7 $ 6 $ 9 $ 10 $ 9 $ 14 Trading account securities ........................ 25 15 13 11 10 16 Federal funds sold and securities purchased under resale agreements ........................ 107 87 22 229 44 67 Mortgages held for sale ........................... 360 109 232 289 131 113 Securities: Taxable ..................................... 3,144 4,316 4,885 4,896 5,351 5,194 Tax exempt .................................. 174 273 297 247 264 291 ------- ------- ------- ------- ------- ------- Total Securities ....................... 3,318 4,589 5,182 5,143 5,615 5,485 ------- ------- ------- ------- ------- ------- Loans: Commercial ................................... 6,647 6,446 6,128 5,629 5,302 4,955 Commercial Real Estate ....................... 3,702 3,457 3,299 3,133 3,064 2,709 Consumer Auto Leases ............................ 3,204 2,969 2,361 1,769 1,488 1,018 Auto Loans - Indirect .................. 2,697 2,982 3,432 3,249 3,081 3,065 Home Equity Lines ...................... 2,331 1,935 1,542 1,336 1,190 1,040 Residential Mortgage ................... 911 1,296 1,425 1,300 1,510 1,485 Other Loans ............................ 1,657 1,584 1,902 2,018 1,946 1,707 ------- ------- ------- ------- ------- ------- Total Consumer ......................... 10,800 10,766 10,662 9,672 9,215 8,315 ------- ------- ------- ------- ------- ------- Total Loans ....................................... 21,149 20,669 20,089 18,434 17,581 15,979 ------- ------- ------- ------- ------- ------- Allowance for loan losses/loan fees ............... 344 303 301 280 252 231 ------- ------- ------- ------- ------- ------- Net loans (2) .................................... 20,805 20,366 19,788 18,154 17,329 15,748 ------- ------- ------- ------- ------- ------- Total earning assets .............................. 24,966 25,475 25,547 24,116 23,390 21,674 ------- ------- ------- ------- ------- ------- Cash and due from banks ........................... 912 1,008 1,039 975 910 901 All other assets .................................. 2,603 2,541 2,454 2,081 1,103 1,031 ------- ------- ------- ------- ------- ------- Total Assets ...................................... $28,137 $28,721 $28,739 $26,892 $25,151 $23,375 ======= ======= ======= ======= ======= ======= Liabilities and Shareholders' Equity Core deposits Non-interest bearing deposits ................ $ 3,304 $ 3,421 $ 3,497 $ 3,287 $ 2,774 $ 2,664 Interest bearing demand deposits ............. 5,005 4,291 4,097 3,585 3,204 3,068 Savings deposits ............................. 3,478 3,563 3,740 3,277 3,056 2,836 Certificates of deposit ...................... 7,163 7,374 7,272 7,979 7,414 6,959 ------- ------- ------- ------- ------- ------- Total core deposits ..................... 18,950 18,649 18,606 18,128 16,448 15,527 ------- ------- ------- ------- ------- ------- Other domestic time deposits ...................... 128 502 238 182 365 28 Foreign time deposits ............................. 283 539 363 103 382 305 ------- ------- ------- ------- ------- ------- Total deposits ............................... 19,361 19,690 19,207 18,413 17,195 15,860 ------- ------- ------- ------- ------- ------- Short-term borrowings ............................. 2,325 1,966 2,549 2,084 2,826 2,883 Medium-term notes ................................. 2,024 2,894 3,122 2,903 1,983 1,835 Subordinated notes and other long-term debt, including capital securities ................... 1,180 1,124 1,003 876 739 516 ------- ------- ------- ------- ------- ------- Total interest bearing liabilities ........... 21,586 22,253 22,384 20,989 19,969 18,430 ------- ------- ------- ------- ------- ------- All other liabilities ............................. 865 768 711 552 514 505 Shareholders' equity .............................. 2,382 2,279 2,147 2,064 1,894 1,776 ------- ------- ------- ------- ------- ------- Total Liabilities and Shareholders' Equity ........ $28,137 $28,721 $28,739 $26,892 $25,151 $23,375 ======= ======= ======= ======= ======= =======
Net interest rate spread.......................... Impact of non-interest bearing funds on margin.... Net Interest Margin............................... (1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. Page 12 Huntington Bancshares Incorporated - -------------------------------------------------------------------------------- Net Interest Margin Analysis (Annual Data) - Continued
Interest Income / Expense (in millions of dollars) ------------------------------------------------------------------- Fully Tax Equivalent Basis (1) 2001 2000 1999 1998 1997 1996 - ------------------------------ --------- -------- -------- -------- -------- ----------- Assets Interest bearing deposits in banks ........... $ 0.2 $ 0.3 $ 0.4 $ 1.0 $ 0.5 $ 0.8 Trading account securities ................... 1.3 1.1 0.8 0.6 0.6 0.9 Federal funds sold and securities purchased under resale agreements ................... 4.4 5.5 1.2 12.9 2.4 3.8 Mortgages held for sale ...................... 25.0 8.7 16.3 20.2 10.1 8.7 Securities: Taxable ................................ 206.9 269.5 297.0 308.8 339.8 333.7 Tax exempt ............................. 13.0 20.8 23.5 21.9 25.3 27.9 -------- ------- ------- ------- ------- ------- Total Securities .................. 219.9 290.3 320.5 330.7 365.1 361.6 -------- ------- ------- ------- ------- ------- Loans: Commercial .............................. 472.1 553.2 483.4 469.0 456.6 396.9 Commercial Real Estate .................. 272.3 296.4 267.7 271.3 274.4 240.0 Consumer Auto Leases ....................... 215.0 201.1 159.2 126.1 113.0 79.9 Auto Loans - Indirect ............. 230.3 251.9 271.2 269.4 259.6 245.9 Home Equity Lines ................. 174.7 164.9 119.7 116.8 107.4 97.7 Residential Mortgage .............. 69.0 99.6 107.0 104.6 126.3 123.0 Other Loans ....................... 151.6 142.4 180.1 201.7 201.5 179.7 -------- ------- ------- ------- ------- ------- Total Consumer .................... 840.6 859.9 837.2 818.6 807.8 726.2 -------- ------- ------- ------- ------- ------- Total Loans .................................. 1,585.0 1,709.5 1,588.3 1,558.9 1,538.8 1,363.1 -------- ------- ------- ------- ------- ------- Allowance for loan losses/loan fees .......... 110.1 101.4 107.9 85.4 75.8 49.2 -------- ------- ------- ------- ------- ------- Net loans (2) ............................... 1,695.1 1,810.9 1,696.2 1,644.3 1,614.6 1,412.3 -------- ------- ------- ------- ------- ------- Total earning assets ......................... 1,945.9 2,116.8 2,035.4 2,009.7 1,993.3 1,788.1 -------- ------- ------- ------- ------- ------- Cash and due from banks All other assets Total Assets Liabilities and Shareholders' Equity Core deposits Non-interest bearing deposits Interest bearing demand deposits ........ 134.6 144.0 106.5 96.4 84.4 80.2 Savings deposits ........................ 107.7 146.4 126.0 114.0 100.4 86.3 Certificates of deposit ................. 398.2 425.8 375.7 445.6 417.3 394.3 -------- ------- ------- ------- ------- ------- Total core deposits ................ 640.5 716.2 608.2 656.0 602.1 560.8 -------- ------- ------- ------- ------- ------- Other domestic time deposits ................. 6.6 31.9 12.8 10.5 21.8 1.5 Foreign time deposits ........................ 10.8 34.0 18.6 5.9 22.2 18.4 -------- ------- ------- ------- ------- ------- Total deposits .......................... 657.9 782.1 639.6 672.4 646.1 580.7 -------- ------- ------- ------- ------- ------- Short-term borrowings ........................ 95.9 113.1 114.3 97.7 146.4 149.1 Medium-term notes ............................ 121.7 189.3 170.0 164.6 116.2 120.2 Subordinated notes and other long-term debt, including capital securities .............. 67.9 81.6 60.3 43.6 45.5 30.7 -------- ------- ------- ------- ------- ------- Total interest bearing liabilities ...... 943.4 1,166.1 984.2 978.3 954.2 880.7 -------- ------- ------- ------- ------- ------- All other liabilities Shareholders' equity Total Liabilities and Shareholders' Equity Net interest rate spread Impact of non-interest bearing funds on margin Net Interest Margin .......................... $ 1,002.5 $ 950.7 $1,051.2 $1,031.4 $1,039.1 $ 907.4 ========== ======== ======== ======== ======== ========
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. Page 13 Huntington Bancshares Incorporated - -------------------------------------------------------------------------------- Net Interest Margin Analysis (Annual Data) - Continued
Average Rate ----------------------------------------------------------------------------- Fully Tax Equivalent Basis (1) 2001 2000 1999 1998 1997 1996 - ------------------------------ Assets Interest bearing deposits in banks ........... 3.43 % 5.03 % 4.04 % 5.22 % 5.47 % 5.85 % Trading account securities ................... 5.13 7.11 5.89 5.71 5.70 5.66 Federal funds sold and securities purchased under resale agreements ................... 4.19 6.33 5.58 5.64 5.50 6.03 Mortgages held for sale ...................... 6.95 7.96 7.03 6.99 7.75 7.74 Securities: Taxable ................................ 6.58 6.24 6.08 6.31 6.35 6.42 Tax exempt ............................. 7.49 7.61 7.90 8.83 9.55 9.59 Total Securities .................. 6.63 6.33 6.18 6.43 6.50 6.59 Loans: Commercial .............................. 7.10 8.58 7.89 8.33 8.61 8.01 Commercial Real Estate .................. 7.36 8.57 8.12 8.66 8.89 8.86 Consumer Auto Leases ....................... 6.71 6.76 6.74 7.13 7.60 7.84 Auto Loans - Indirect ............. 8.54 8.45 7.90 8.29 8.43 8.02 Home Equity Lines ................. 7.50 8.52 7.76 8.75 9.02 9.40 Residential Mortgage .............. 7.58 7.69 7.51 8.04 8.36 8.28 Other Loans ....................... 9.15 9.01 9.47 9.99 10.35 10.52 Total Consumer .................... 7.78 7.99 7.85 8.46 8.77 8.73 Total Loans .................................. 7.49 8.27 7.91 8.46 8.75 8.53 Allowance for loan losses/loan fees Net loans (2) ............................... 8.01 8.76 8.44 8.92 9.18 8.84 Total earning assets ......................... 7.79 % 8.31 % 7.97 % 8.33 % 8.52 % 8.26 % Cash and due from banks All other assets Total Assets Liabilities and Shareholders' Equity Core deposits Non-interest bearing deposits Interest bearing demand deposits ........ 2.69 % 3.36 % 2.60 % 2.69 % 2.64 % 2.61 % Savings deposits ........................ 3.10 4.11 3.37 3.48 3.28 3.04 Certificates of deposit ................. 5.56 5.78 5.17 5.58 5.63 5.67 Total core deposits ................ 3.38 4.70 4.03 4.42 4.40 4.36 Other domestic time deposits ................. 5.12 6.35 5.40 5.82 5.97 5.36 Foreign time deposits ........................ 3.82 6.31 5.14 5.66 5.81 6.03 Total deposits .......................... 3.40 4.81 4.07 4.44 4.48 4.40 Short-term borrowings ........................ 4.12 5.75 4.48 4.69 5.18 5.17 Medium-term notes ............................ 6.01 6.54 5.45 5.67 5.86 6.55 Subordinated notes and other long-term debt, including capital securities .............. 5.75 7.26 6.01 4.98 6.16 5.96 Total interest bearing liabilities ...... 4.37 % 5.24 % 4.40 % 4.66 % 4.78 % 4.78 % All other liabilities Shareholders' equity Total Liabilities and Shareholders' Equity Net interest rate spread ..................... 3.42 % 3.07 % 3.57 % 3.67 % 3.74 % 3.48 % Impact of non-interest bearing funds on margin 0.60 % 0.66 % 0.54 % 0.61 % 0.70 % 0.71 % Net Interest Margin .......................... 4.02 % 3.73 % 4.11 % 4.28 % 4.44 % 4.19 %
(1) Fully tax equivalent yields are calculated assuming a 35% tax rate. (2) Net loan rate includes loan fees, whereas individual loan components above are shown exclusive of fees. Page 14 Huntington Bancshares Incorporated Loan Loss Reserves and Asset Quality (in thousands of dollars) Allowance for Loan Losses and Selected Statistics - -------------------------------------------------
2001 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- --------- Allowance for loan losses, beginning of year ....... $ 297,880 $ 299,309 $ 290,948 $ 258,171 $ 230,778 $ 222,487 Loan losses, net of recoveries Commercial ................................... (59,568) (13,812) (10,900) (19,966) (18,903) (19,020) Commercial Real Estate ....................... (3,729) (1,327) (1,585) 46 (677) 204 Consumer Auto Leases ............................. (43,178) (21,442) (10,557) (12,124) (8,768) (3,777) Auto Loans - Indirect ................... (55,071) (32,280) (28,582) (24,128) (26,208) (24,936) Home Equity Lines ....................... (8,025) (5,069) (4,711) (4,507) (1,016) (623) Residential Mortgage .................... (785) (1,007) (1,136) (876) (1,631) (1,014) Other Loans ............................. (19,091) (8,152) (22,615) (32,952) (30,978) (20,821) --------- --------- --------- --------- --------- --------- Total Consumer ............................... (126,150) (67,950) (67,601) (74,587) (68,601) (51,171) --------- --------- --------- --------- --------- --------- Net Loan Losses .................................... (189,447) (83,089) (80,086) (94,507) (88,181) (69,987) --------- --------- --------- --------- --------- --------- Allowance of securitized loans ..................... (6,654) (16,719) -- -- -- -- Provision for loan losses (1) ...................... 308,793 90,479 88,447 105,242 107,797 76,371 Allowance of assets acquired and other ............. -- 7,900 -- 22,042 7,777 1,907 --------- --------- --------- --------- --------- --------- Allowance for loan losses, end of year ............. $ 410,572 $ 297,880 $ 299,309 $ 290,948 $ 258,171 $ 230,778 ========= ========= ========= ========= ========= ========= As a % of average total loans Net loan losses ................................. 0.90 % 0.40 % 0.40 % 0.51 % 0.50 % 0.44 % Net loan losses - excluding restructuring and other charges ............... 0.72 % 0.40 % 0.40 % 0.51 % 0.50 % 0.44 % Recoveries as a % of loan losses ................... 16.58 % 25.04 % 28.68 % 25.20 % 20.36 % 23.10 % Allowance for loan losses as a % of total loans .... 1.90 % 1.45 % 1.45 % 1.50 % 1.46 % 1.38 % Net loan loss coverage (2) ......................... 3.62 x 7.23 x 8.63 x 6.72 x 7.01 x 7.62 x
(1) Includes the impact of restructuring and other charges. (2) Income before taxes (excluding the impact of restructuring and other charges and 1999 gain from sale of credit card portfolio) and the provision for loan losses to net loan losses. Non-Performing Assets and Past Due Loans - ----------------------------------------
2001 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- --------- Non-accrual loans: Commercial ................................... $159,637 $ 55,804 $ 42,958 $ 34,586 $ 36,459 $ 25,621 Commercial Real Estate ....................... 48,360 26,702 26,916 23,424 16,128 16,584 Residential Mortgage ......................... 11,836 10,174 11,866 14,419 13,394 12,835 -------- -------- -------- -------- -------- -------- Total Nonaccrual Loans ............................. 219,833 92,680 81,740 72,429 65,981 55,040 Renegotiated loans ................................. 1,276 1,304 1,330 4,706 5,822 4,422 -------- -------- -------- -------- -------- -------- Total Non-Performing Loans ......................... 221,109 93,984 83,070 77,135 71,803 59,462 -------- -------- -------- -------- -------- -------- Other real estate, net ............................. 6,384 11,413 15,171 18,964 15,343 17,208 -------- -------- -------- -------- -------- -------- Total Non-Performing Assets ........................ $227,493 $105,397 $ 98,241 $ 96,099 $ 87,146 $ 76,670 ======== ======== ======== ======== ======== ======== Non-performing loans as a % of total loans ................................. 1.02 % 0.46 % 0.40 % 0.40 % 0.40 % 0.35 % Non-performing assets as a % of total loans and other real estate........................................... 1.05 % 0.51 % 0.47 % 0.49 % 0.49 % 0.46 % Allowance for loan losses as a % of non-performing loans ............................. 185.69 % 316.95 % 360.31 % 377.19 % 359.55 % 388.11 % Allowance for loan losses and other real estate as a % of non-performing assets............................................ 180.13 % 279.16 % 299.85 % 301.00 % 294.32 % 297.12 % Accruing loans past due 90 days or more........................................... $ 91,635 $ 80,306 $ 61,287 $ 51,037 $ 49,608 $ 39,267 ======== ======== ======== ======== ======== ======== Accruing loans past due 90 days or more as a % of total loans ....................... 0.42 % 0.39 % 0.30 % 0.26 % 0.28 % 0.23 % ======== ======== ======== ======== ======== ========
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