<PAGE> 1
Exhibit 99.3
HUNTINGTON BANCSHARES INCORPORATED
[LOGO]
FOURTH QUARTER 2000
EARNINGS REVIEW
JANUARY 18, 2001
<PAGE> 2
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD LOOKING STATEMENT
DISCLOSURE
--------------------------------------------------------------------------------
Today's conference call 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
- 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
- Extended disruption of vital infrastructure
[LOGO]
ALL FORWARD-LOOKING STATEMENTS INCLUDED IN THIS CONFERENCE CALL AND DISCUSSION,
INCLUDED RELATED QUESTIONS AND ANSWERS, ARE BASED ON INFORMATION AVAILABLE AT
THE TIME OF THE CALL. HUNTINGTON ASSUMES NO OBLIGATION TO UPDATE ANY
FORWARD-LOOKING STATEMENT.
2
<PAGE> 3
TODAY'S SPEAKERS
--------------------------------------------------------------------------------
FRANK WOBST
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
TOM HOAGLIN
CHIEF EXECUTIVE OFFICER AND PRESIDENT ELECT
MICHAEL MCMENNAMIN
VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER
3
<PAGE> 4
FOURTH QUARTER OVERVIEW
--------------------------------------------------------------------------------
- 11% LOAN GROWTH
- 4% RETAIL DEPOSIT GROWTH
- NIM 3.74% (yield) 3.70%
- CHARGEOFFS 46 b.p. (yield) 50 b.p.
- NIE + $10.3MM
4
<PAGE> 5
KEY PERFORMANCE INDICATORS
--------------------------------------------------------------------------------
4Q00 3Q00*
---- -----
EPS $ 0.30 $ 0.33
ROA 1.06% 1.15%
ROE 12.89% 14.04%
NIM % 3.70% 3.74%
EFFICIENCY RATIO 58.48% 58.38%
TANGIBLE EQUITY/ASSETS 5.87% 5.73%
*EXCLUDES SPECIAL CHARGE
5
<PAGE> 6
MANAGED LOAN GROWTH
AVERAGE BALANCE ($ BILLIONS)
ANNUALIZED GROWTH
-----------------
FROM
----
4Q00 3Q00 4Q99
---- ---- ----
COMMERCIAL $ 6.5 6% 3%
COMMERCIAL REAL ESTATE 3.5 7 4
AUTO LOAN / LEASE 7.0 17 14
CONSUMER 3.9 18 15
RESIDENTIAL REAL ESTATE .9 10 9
-----
TOTAL MANAGED LOANS $21.8 11% 9%
=====
6
<PAGE> 7
INCOME STATEMENT
($ IN MILLIONS)
4Q00 3Q00*
---- -----
NET INTEREST INCOME $233.1 $235.9
PROVISION 32.5 26.4
NON-INTEREST INCOME 129.7 110.3
SECURITY GAINS 0.8 11.3
NON-INTEREST EXPENSE 223.9 213.6
------ ------
PRE-TAX INCOME $107.2 $117.5
------ ------
NET INCOME $ 76.2 $ 83.0
====== ======
*EXCLUDES SPECIAL CHARGE
7
<PAGE> 8
NON-INTEREST INCOME
($ IN MILLIONS)
BETTER OR (WORSE)
-----------------
4Q00 VS. 3Q00
---- --------
SERVICE CHARGES $ 39.2 $ (0.5)
BROKERAGE/INSURANCE 17.1 1.5
TRUST INCOME 14.4 1.2
ELECTRONIC BANKING 11.5 0.3
MORTGAGE BANKING 12.0 2.6
OTHER 35.5 14.3
------ ------
TOTAL NON-INTEREST INCOME $129.7 $ 19.4
====== ======
8
<PAGE> 9
NON-INTEREST EXPENSE
($ IN MILLIONS)
BETTER OR (WORSE)
-----------------
4Q00 VS. 3Q00
---- --------
PERSONNEL & RELATED COSTS $105.8 $ 3.6
OCCUPANCY/EQUIPMENT 39.4 (0.9)
OUTSIDE SERVICES/SUPPLIES 21.4 (1.0)
AMORTIZATION OF INTANGIBLES 10.5 (0.2)
MARKETING 10.6 (2.0)
OTHER 36.2 (9.8)
------ ------
TOTAL NON-INTEREST EXPENSE $223.9 $(10.3)
====== ======
9
<PAGE> 10
NPAs/TOTAL LOANS + OREO
<TABLE>
<CAPTION>
1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HUNTINGTON 0.48 0.46 0.47 0.47 0.45 0.46 0.44 0.51
PEER AVERAGE 0.55 0.52 0.54 0.55 0.55 0.59 0.61
</TABLE>
PEER GROUP: ASO, BBT, CMA, FITB, FSR, KEY, NCC, OK, RGBK, USB
10
<PAGE> 11
NCO/AVERAGE LOANS
<TABLE>
<CAPTION>
1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HUNTINGTON 0.51 0.38 0.39 0.32 0.35 0.3 0.46 0.5
PEER AVERAGE 0.4 0.4 0.39 0.47 0.42 0.37 0.45
</TABLE>
PEER GROUP: ASO, BBT, CMA, FITB, FSR, KEY, NCC, OK, RGBK, USB
11
<PAGE> 12
NET CHARGE-OFFS SUMMARY
--------------------------------------------------------------------------------
4Q00 3Q00 4Q99
---- ---- ----
COMMERCIAL 0.29% 0.24% 0.10%
CONSUMER 0.79 0.72 0.52
COMMERCIAL R/E 0.01 0.07 0.07
TOTAL 0.50 0.46 0.32
12
<PAGE> 13
CONSUMER CHARGE-OFFS
--------------------------------------------------------------------------------
4Q00 3Q00 4Q99
---- ---- ----
INDIRECT 1.46% 1.33% .93%
VEHICLE LEASE .87 .80 .46
INSTALLMENT .62 .54 .49
HOME EQUITY LINES .28 .33 .17
RESIDENTIAL R/E .15 .05 .09
13
<PAGE> 14
--------------------------------------------------------------------------------
[LOGO] HUNTINGTON
BANKING. INVESTMENTS. INSURANCE.
14
<PAGE> 15
<TABLE>
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED COMPARATIVE SUMMARY
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATED RESULTS OF OPERATIONS
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- CHANGE ----------------------- CHANGE
2000 1999 % 2000 1999 %
---------- ---------- ------ ---------- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
Interest Income $ 537,661 $ 515,516 4.3% $2,108,505 $2,026,002 4.1 %
Interest Expense 304,595 262,854 15.9 1,166,073 984,240 18.5
---------- -------- ---------- ----------
Net Interest Income 233,066 252,662 (7.8) 942,432 1,041,762 (9.5)
Provision for Loan Losses 32,548 20,040 62.4 90,479 88,447 2.3
Non-Interest Income 129,704 114,338 13.4 456,458 452,073 1.0
Securities Gains 845 7,905 N.M. 37,101 12,972 N.M.
Gains on Sales of Credit Cards -- 108,530 N.M. -- 108,530 N.M.
Non-Interest Expense 223,850 204,895 9.3 835,617 815,328 2.5
Special Charges -- 96,791 N.M. 50,000 96,791 (48.3)
Provision for Income Taxes 30,995 46,769 (33.7) 131,449 192,697 (31.8)
---------- -------- ---------- ----------
NET INCOME $ 76,222 $ 114,940 (33.7) % $ 328,446 $ 422,074 (22.2)%
========== ======== ===== ========== ==========
OPERATING EARNINGS (1)
----------------------
Net Income $ 76,222 $ 107,310 (29.0) % $ 360,946 $ 414,444 (12.9)%
========== ======== ====== ========== ==========
Net Income per Common Share (2)
Diluted $ 0.30 $ 0.42 (28.6) % $ 1.45 $ 1.62 (10.5)%
Diluted--Cash Basis (3) $ 0.34 $ 0.45 (24.4) % $ 1.57 $ 1.74 (9.8)%
Return On:
Average Total Assets 1.06% 1.47% 1.26% 1.44%
Average Shareholders' Equity 12.89% 20.20% 15.84% 19.31%
PER COMMON SHARE AMOUNTS - REPORTED (2)
---------------------------------------
Net Income per Common Share--Diluted $ 0.30 $ 0.45 (33.3) % $ 1.32 $ 1.65 (20.3)%
Cash Dividends Declared $ 0.20 $ 0.18 11.1% $ 0.76 $ 0.68 11.8%
Shareholders' Equity (period end) $ 9.43 $ 8.67 8.8% $ 9.43 $ 8.67 8.8%
AVERAGE COMMON SHARES - DILUTED (2) 251,401 254,183 (1.1) % 249,570 255,647 (2.4)%
</TABLE>
<TABLE>
---------------------------------------------------------------------------------------------------------------------
KEY PERFORMANCE RATIOS
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------- -------------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Return On:
Average Total Assets 1.06% 1.57% 1.14% 1.47%
Average Shareholders' Equity 12.89% 21.64% 14.41% 19.66%
Efficiency Ratio 58.48% 52.97% 56.19% 51.76%
Net Interest Margin 3.70% 3.94% 3.73% 4.11%
Average Equity/Average Assets 8.21% 7.27% 7.94% 7.47%
</TABLE>
<TABLE>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CONDITION DATA
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------- CHANGE ------------------------ CHANGE
2000 1999 % 2000 1999 %
----------- ----------- ------ ----------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Average Total Loans $20,489,983 $20,513,235 (0.1)% $20,668,581 $20,088,542 2.9%
Average Total Deposits $19,511,274 $19,422,791 0.5 $19,689,504 $19,207,347 2.5
Average Total Assets $28,654,483 $28,997,211 (1.2) $28,720,508 $28,739,450 (0.1)
Average Shareholders' Equity $ 2,352,612 $ 2,107,526 11.6 $ 2,279,230 $ 2,146,735 6.2
</TABLE>
<TABLE>
-------------------------------------------------------------------------------------------------------------------------
REGULATORY CAPITAL RATIOS (4) AND ASSET QUALITY
-------------------------------------------------------------------------------------------------------------------------
<CAPTION>
AT DECEMBER 31, AT DECEMBER 31,
------------------- ----------------------
2000 1999 2000 1999
------- ------- -------- -------
<S> <C> <C> <C> <C> <C>
Tier I Risk-Based Capital 7.20% 7.52% Non-performing loans (NPLs) $ 93,984 $83,070
Total non-performing assets (NPAs) $105,397 $98,241
Total Risk-Based Capital 10.46% 10.72% Allowance for loan losses/total loans 1.45% 1.45%
Allowance for loan losses/NPLs 316.95% 360.31%
Tier I Leverage 6.93% 6.72% Allowance for loan losses and other
real estate/NPAs 279.16% 299.85%
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Reported results, as adjusted, exclude the impact of gains from sale of
credit card portfolios and special charges, net of related taxes.
(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. N.M. - Not Meaningful
(4) Estimated.
<PAGE> 16
HUNTINGTON BANCSHARES INCORPORATED
QUARTERLY FINANCIAL REVIEW
DECEMBER, 2000
Table of Contents
-----------------
<TABLE>
<CAPTION>
<S> <C>
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 Twelve Months Ended December 31, 2000, 1999 and 1998 5
Net Interest Margin Analysis (Annual) 6-8
Selected Annual Income Statement Data 9
Net Interest Margin Analysis (Quarterly) 10-11
Selected Quarterly Income Statement Data 12
Analysis of Non-Interest Income and Expense
For the Three and Twelve Months Ended December 31, 2000 and 1999 13
Key Ratios and Statistics (Quarterly) 14
Loan Loss Experience, Non-Performing Assets and Past Due Loans (Annual) 15
Loan Loss Experience, Non-Performing Assets and Past Due Loans (Quarterly) 16
</TABLE>
<PAGE> 17
P.1
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31, 2000 1999 % CHANGE
---------------------------------------------- ----------- ----------- -----------
<S> <C> <C> <C>
NET INCOME (1) ............................... $ 76,222 $ 107,310 (29.0)%
PER COMMON SHARE AMOUNTS (2)
Net income -- Diluted ................... $ 0.30 $ 0.42 (28.6)
Cash dividends declared ................. $ 0.20 $ 0.18 11.1
AVERAGE COMMON SHARES OUTSTANDING--DILUTED (2) 251,401 254,183 (1.1)
KEY RATIOS
Return on:
Average total assets .................... 1.06% 1.47% (27.9)
Average shareholders' equity ............ 12.89% 20.20% (36.2)
Efficiency ratio ............................. 58.48% 52.97% 10.4
Average equity/average assets ................ 8.21% 7.27% 12.9
Net interest margin .......................... 3.70% 3.94% (6.1)
TANGIBLE OR "CASH BASIS" RESULTS (3)
Net income per share -- Diluted (2) .......... $ 0.34 $ 0.45 (24.4)
Return on:
Average total assets .................... 1.21% 1.61% (24.8)
Average shareholders' equity ............ 21.14% 31.59% (33.1)%
TWELVE MONTHS ENDED DECEMBER 31, 2000 1999 % CHANGE
---------------------------------------------- ----------- ----------- -----------
NET INCOME (1) ............................... $ 360,946 $ 414,444 (12.9)%
PER COMMON SHARE AMOUNTS (2)
Net income -- Diluted ................... $ 1.45 $ 1.62 (10.5)
Cash dividends declared ................. $ 0.76 $ 0.68 11.8
AVERAGE COMMON SHARES OUTSTANDING--DILUTED (2) 249,570 255,647 (2.4)
KEY RATIOS
Return on:
Average total assets .................... 1.26% 1.44% (12.5)
Average shareholders' equity ............ 15.84% 19.31% (18.0)
Efficiency ratio ............................. 56.19% 51.76% 8.6
Average equity/average assets ................ 7.94% 7.47% 6.3
Net interest margin .......................... 3.73% 4.11% (9.2)
TANGIBLE OR "CASH BASIS" RESULTS (3)
Net income per share -- Diluted (2) .......... $ 1.57 $ 1.74 (9.8)
Return on:
Average total assets .................... 1.40% 1.58% (11.4)
Average shareholders' equity ............ 24.97% 30.30% (17.6)%
</TABLE>
(1) Presented on an "operating" basis (excludes gains from sale of credit card
portfolios and special charges, net of related taxes).
(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 taxes Related asset amounts are also excluded
from total assets and shareholders' equity.
<PAGE> 18
P.2
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
2000 1999
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks ................................... $ 1,322,700 $ 1,208,004
Interest bearing deposits in banks ........................ 4,970 6,558
Trading account securities ................................ 4,723 7,975
Federal funds sold and securities
purchased under resale agreements .................... 133,183 20,877
Mortgages held for sale ................................... 155,104 141,723
Securities available for sale - at fair value ............. 4,090,525 4,870,203
Investment securities - fair value $16,414 and $18,662,
respectively ......................................... 16,336 18,765
Total loans (1) ........................................... 20,610,191 20,668,437
Less allowance for loan losses ....................... 297,880 299,309
------------ ------------
Net loans ................................................. 20,312,311 20,369,128
------------ ------------
Bank owned life insurance ................................. 804,941 765,399
Premises and equipment .................................... 454,844 438,871
Customers' acceptance liability ........................... 17,366 17,167
Accrued income and other assets ........................... 1,282,374 1,172,283
------------ ------------
TOTAL ASSETS .............................................. $ 28,599,377 $ 29,036,953
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Total deposits (1) ........................................ $ 19,777,245 $ 19,792,603
Short-term borrowings ..................................... 1,987,759 2,121,989
Bank acceptances outstanding .............................. 17,366 17,167
Medium-term notes ......................................... 2,467,150 3,254,150
Subordinated notes and other long-term debt ............... 870,976 697,677
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 .................... 812,834 671,011
------------ ------------
Total Liabilities .................................... 26,233,330 26,854,597
------------ ------------
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
233,844,820 shares, respectively;
outstanding 250,859,470 and 228,888,221
shares, respectively ............................ 2,493,645 2,284,956
Less 7,006,765 and 4,956,599 treasury
shares, respectively ............................ (129,432) (137,268)
Accumulated other comprehensive income ............... (24,520) (94,093)
Retained earnings .................................... 26,354 128,761
------------ ------------
Total Shareholders' Equity ........................... 2,366,047 2,182,356
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................ $ 28,599,377 $ 29,036,953
============ ============
</TABLE>
(1) See page 4 for detail of total loans and total deposits.
<PAGE> 19
P.3
HUNTINGTON BANCSHARES INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31,
--------------------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
Interest and fee income
Loans ........................................ $ 1,808,254 $ 1,693,379 $ 1,641,081
Securities ................................... 284,719 314,061 323,595
Other ........................................ 15,532 18,562 34,688
------------ ------------ ------------
TOTAL INTEREST INCOME .............. 2,108,505 2,026,002 1,999,364
------------ ------------ ------------
Interest expense
Deposits ..................................... 782,076 639,605 672,433
Short-term borrowings ........................ 113,134 114,289 97,656
Medium-term notes ............................ 189,311 170,061 164,590
Subordinated notes and other long-term debt .. 81,552 60,285 43,592
------------ ------------ ------------
TOTAL INTEREST EXPENSE ............. 1,166,073 984,240 978,271
------------ ------------ ------------
NET INTEREST INCOME ................ 942,432 1,041,762 1,021,093
Provision for loan losses ......................... 90,479 88,447 105,242
------------ ------------ ------------
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES 851,953 953,315 915,851
------------ ------------ ------------
Total non-interest income (1) ..................... 493,559 573,575 438,200
Total non-interest expense (1) .................... 885,617 912,119 913,929
------------ ------------ ------------
INCOME BEFORE INCOME TAXES ......... 459,895 614,771 440,122
Provision for income taxes ........................ 131,449 192,697 138,354
------------ ------------ ------------
NET INCOME ......................... $ 328,446 $ 422,074 $ 301,768
============ ============ ============
PER COMMON SHARE (2)
Net income
Basic ................................... $ 1.32 $ 1.66 $ 1.18
Diluted ................................. $ 1.32 $ 1.65 $ 1.17
Cash dividends declared ...................... $ 0.76 $ 0.68 $ 0.62
AVERAGE COMMON SHARES (2)
Basic ................................... 248,708,965 253,559,501 255,825,970
Diluted ................................. 249,570,098 255,646,520 258,279,601
------------ ------------ ------------
</TABLE>
(1) See page 5 for detail of non-interest income and non-interest expense.
(2) Adjusted for stock splits and stock dividends, as applicable.
<PAGE> 20
P.4
HUNTINGTON BANCSHARES INCORPORATED
LOANS AND DEPOSITS
(IN THOUSANDS OF DOLLARS)
LOAN PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
2000 1999
----------- -----------
<S> <C> <C>
Commercial (unearned income $1,538 and $2,550) .... $ 6,633,985 $ 6,300,414
Real Estate
Construction ................................. 1,318,899 1,236,776
Commercial ................................... 2,253,477 2,151,673
Consumer
Loans (unearned income $4,150 and $5,974) .... 6,388,036 6,793,295
Leases (unearned income $515,445 and $410,239) 3,069,210 2,741,735
Residential Mortgage ......................... 946,584 1,444,544
----------- -----------
TOTAL LOANS ................................ $20,610,191 $20,668,437
=========== ===========
</TABLE>
DEPOSIT COMPOSITION
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
2000 1999
----------- -----------
<S> <C> <C>
Demand deposits
Non-interest bearing ......................... $ 3,480,876 $ 3,418,100
Interest bearing ............................. 4,645,127 4,046,472
Savings deposits .................................. 3,527,796 3,793,423
Certificates of deposit
Less than $100,000 ........................... 5,938,486 5,547,266
$100,000 or more ............................. 1,520,547 1,591,092
----------- -----------
TOTAL CORE DEPOSITS ........................ 19,112,832 18,396,353
----------- -----------
Other domestic time deposits ...................... 256,106 530,035
Foreign time deposits ............................. 408,307 866,215
----------- -----------
TOTAL DEPOSITS ............................. $19,777,245 $19,792,603
=========== ===========
</TABLE>
<PAGE> 21
P.5
HUNTINGTON BANCSHARES INCORPORATED
NONINTEREST INCOME AND NONINTEREST EXPENSE
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000, 1999 AND 1998
(IN THOUSANDS OF DOLLARS)
ANALYSIS OF NON-INTEREST INCOME
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED PERCENT
DECEMBER 31, INCREASE (DECREASE)
------------------------------------ ------------------------
2000 1999 1998 2000/99 1999/98
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Service charges on deposit accounts ....... $160,727 $156,315 $126,403 2.8 % 23.7 %
Brokerage and insurance income ............ 61,871 52,076 36,710 18.8 41.9
Trust services ............................ 53,613 52,030 50,754 3.0 2.5
Electronic banking fees ................... 43,883 37,301 29,202 17.6 27.7
Bank Owned Life Insurance income .......... 39,544 37,560 28,712 5.3 30.8
Mortgage banking .......................... 38,025 56,890 60,006 (33.2) (5.2)
Credit card fees .......................... 6,985 23,314 21,909 (70.0) 6.4
Other ..................................... 51,810 36,587 45,181 41.6 (19.0)
-------- -------- --------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS ... 456,458 452,073 398,877 1.0 13.3
-------- -------- --------
Securities gains .......................... 37,101 12,972 29,793 N.M. (56.5)
Gains on sale of credit card portfolios ... -- 108,530 9,530 N.M. N.M.
-------- -------- --------
TOTAL NON-INTEREST INCOME ................. $493,559 $573,575 $438,200 (14.0)% 30.9 %
======== ======== ========
</TABLE>
ANALYSIS OF NON-INTEREST EXPENSE
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED PERCENT
DECEMBER 31, INCREASE (DECREASE)
------------------------------------ ------------------------
2000 1999 1998 2000/99 1999/98
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Personnel and related costs ............... $421,750 $419,901 $428,539 0.4 % (2.0)%
Equipment ................................. 78,069 66,666 62,040 17.1 7.5
Net occupancy ............................. 75,882 62,169 54,123 22.1 14.9
Outside data processing and other services 62,011 62,886 74,795 (1.4) (15.9)
Amortization of intangible assets ......... 39,207 37,297 25,689 5.1 45.2
Marketing ................................. 34,884 32,506 32,260 7.3 0.8
Telecommunications ........................ 26,225 28,519 29,429 (8.0) (3.1)
Legal and other professional services ..... 20,819 21,169 25,160 (1.7) (15.9)
Printing and supplies ..................... 19,634 20,227 23,673 (2.9) (14.6)
Franchise and other taxes ................. 11,077 14,674 22,103 (24.5) (33.6)
Other ..................................... 46,059 49,314 46,118 (6.6) 6.9
-------- -------- --------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES ................................ 835,617 815,328 823,929 2.5 (1.0)
-------- -------- --------
Special charges ........................... 50,000 96,791 90,000 N.M. N.M.
-------- -------- --------
TOTAL NON-INTEREST EXPENSE ................ $885,617 $912,119 $913,929 (2.9)% (0.2)%
======== ======== ========
</TABLE>
N.M. - Not Meaningful.
<PAGE> 22
HUNTINGTON BANCSHARES INCORPORATED P.6
---------------------------------------------------------------------
NET INTEREST MARGIN ANALYSIS (ANNUAL DATA)
(IN MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
FULLY TAX EQUIVALENT BASIS (1) 2000 1999
---------------------------------------------- ------------------------------------------ ----------------------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
------------- ------------- --------- ------------ ------------ --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest bearing deposits in banks........... $ 6 $ 0.3 5.03% $ 9 $ 0.4 4.04%
Trading account securities................... 15 1.1 7.11 13 0.8 5.89
Federal funds sold and securities purchased
under resale agreements................... 87 5.5 6.33 22 1.2 5.58
Mortgages held for sale...................... 109 8.7 7.96 232 16.3 7.03
Securities:
Taxable................................ 4,316 269.5 6.24 4,885 297.0 6.08
Tax exempt............................. 273 20.8 7.61 297 23.5 7.90
------------- ------------- ------------ ------------
Total Securities.................. 4,589 290.3 6.33 5,182 320.5 6.18
------------- ------------- ------------ ------------
Loans:
Commercial.............................. 6,446 553.2 8.58 6,128 483.4 7.89
Real Estate
Construction....................... 1,270 110.7 8.72 1,064 86.1 8.09
Commercial......................... 2,187 185.7 8.49 2,235 181.6 8.13
Consumer
Loans.............................. 6,546 562.4 8.59 6,938 575.7 8.30
Leases............................. 2,924 197.9 6.77 2,299 154.5 6.72
Residential Mortgage............... 1,296 99.6 7.69 1,425 107.0 7.51
------------- ------------- ------------ ------------
Total Consumer..................... 10,766 859.9 7.97 10,662 837.2 7.85
------------- ------------- ------------ ------------
Total Loans.................................. 20,669 1,709.5 8.27 20,089 1,588.3 7.91
------------- ------------- ------------ ------------
Allowance for loan losses/loan fees.......... 303 101.4 301 107.9
------------- ------------- ------------ ------------
Net loans(2)................................. 20,366 1,810.9 8.76 19,788 1,696.2 8.44
------------- ------------- ------------ ------------
Total earning assets......................... 25,475 2,116.8 8.31% 25,547 2,035.4 7.97%
------------- ------------- ------------ ------------
Cash and due from banks...................... 1,008 1,039
All other assets............................. 2,541 2,454
------------- ------------
TOTAL ASSETS................................. $ 28,721 $ 28,739
============= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Core deposits
Non-interest bearing deposits........... $ 3,421 $ 3,497
Interest bearing demand deposits........ 4,291 144.0 3.36% 4,097 106.5 2.60%
Savings deposits........................ 3,563 146.4 4.11 3,740 126.0 3.37
Certificates of deposit................. 7,374 425.8 5.78 7,272 375.7 5.17
------------- ------------- ------------ ------------
Total core deposits................ 18,649 716.2 4.70 18,606 608.2 4.03
------------- ------------- ------------ ------------
Other domestic time deposits................. 502 31.9 6.35 238 12.8 5.40
Foreign time deposits........................ 539 34.0 6.31 363 18.6 5.14
------------- ------------- ------------ ------------
Total deposits.......................... 19,690 782.1 4.81 19,207 639.6 4.07
------------- ------------- ------------ ------------
Short-term borrowings........................ 1,966 113.1 5.75 2,549 114.3 4.48
Medium-term notes............................ 2,894 189.3 6.54 3,122 170.0 5.45
Subordinated notes and other long-term debt,
including capital securities.............. 1,124 81.6 7.26 1,003 60.3 6.01
------------- ------------- ------------ ------------
Total interest bearing liabilities...... 22,253 1,166.1 5.24% 22,384 984.2 4.40%
------------- ------------- ------------ ------------
All other liabilities........................ 768 711
Shareholders' equity......................... 2,279 2,147
------------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY... $ 28,721 $ 28,739
============= ============
Net interest rate spread..................... 3.07% 3.57%
Impact of non-interest bearing funds
on margin................................. 0.66% 0.54%
NET INTEREST MARGIN.......................... $ 950.7 3.73% $ 1,051.2 4.11%
============= ============
</TABLE>
(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> 23
HUNTINGTON BANCSHARES INCORPORATED P.7
--------------------------------------------------------------
NET INTEREST MARGIN ANALYSIS (ANNUAL DATA)
<TABLE>
<CAPTION>
1998 1997
-------------------------------------------------------- --------------------------------------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
------------- ------------- -------- ------------ ------------ --------
<S> <C> <C> <C> <C> <C>
$ 10 $ 1.0 5.22% $ 9 $ 0.5 5.47%
11 0.6 5.71 10 0.6 5.70
229 12.9 5.64 44 2.4 5.50
289 20.2 6.99 131 10.1 7.75
4,896 308.8 6.31 5,351 339.8 6.35
247 21.9 8.83 264 25.3 9.55
------------- ------------- ------------ ------------
5,143 330.7 6.43 5,615 365.1 6.50
------------- ------------- ------------ ------------
5,629 469.0 8.33 5,302 456.6 8.61
829 71.7 8.65 813 73.8 8.85
2,304 199.6 8.66 2,251 200.6 8.91
6,679 593.9 8.89 6,299 574.8 9.12
1,693 120.1 7.09 1,406 106.7 7.59
1,300 104.6 8.04 1,510 126.3 8.28
------------- ------------- ------------ ------------
9,672 818.6 8.46 9,215 807.8 8.77
------------- ------------- ------------ ------------
18,434 1,558.9 8.46 17,581 1,538.8 8.75
------------- ------------- ------------ ------------
280 85.4 252 75.8
------------- ------------- ------------ ------------
18,154 1,644.3 8.92 17,329 1,614.6 9.18
------------- ------------- ------------ ------------
24,116 2,009.7 8.33% 23,390 1,993.3 8.52%
------------- ------------- ------------ ------------
975 910
2,081 1,103
------------- ------------
$ 26,892 $ 25,151
============= ============
$ 3,287 $ 2,774
3,585 96.4 2.69% 3,204 84.4 2.64%
3,277 114.0 3.48 3,056 100.4 3.28
7,979 445.6 5.58 7,414 417.3 5.63
------------- ------------- ------------ ------------
18,128 656.0 4.42 16,448 602.1 4.40
------------- ------------- ------------ ------------
182 10.5 5.82 365 21.8 5.97
103 5.9 5.66 382 22.2 5.81
------------- ------------- ------------ ------------
18,413 672.4 4.44 17,195 646.1 4.48
------------- ------------- ------------ ------------
2,084 97.7 4.69 2,826 146.4 5.18
2,903 164.6 5.67 1,983 116.2 5.86
876 43.6 4.98 739 45.5 6.16
------------- ------------- ------------ ------------
20,989 978.3 4.66% 19,969 954.2 4.78%
------------- ------------- ------------ ------------
552 514
2,064 1,894
------------- ------------
$ 26,892 $ 25,151
============= ============
3.67% 3.74%
0.61% 0.70%
$ 1,031.4 4.28% $ 1,039.1 4.44%
============= ============
</TABLE>
<PAGE> 24
HUNTINGTON BANCSHARES INCORPORATED P.8
------------------------------------------
NET INTEREST MARGIN ANALYSIS (ANNUAL DATA)
<TABLE>
<CAPTION>
1996 1995
-------------------------------------------------------- ------------------------------------------------------------
INTEREST INTEREST
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
------------ ------------ -------- ------------ ------------ --------
<S> <C> <C> <C> <C> <C>
$ 14 $ 0.8 5.85% $ 26 $ 1.6 5.99%
16 0.9 5.66 23 1.6 7.29
67 3.8 6.03 93 5.6 6.10
113 8.7 7.74 133 10.0 7.58
5,194 333.7 6.42 4,679 310.7 6.64
291 27.9 9.59 342 33.2 9.73
------------ ------------ ------------ ------------
5,485 361.6 6.59 5,021 343.9 6.85
------------ ------------ ------------ ------------
4,955 396.9 8.01 4,703 403.3 8.58
580 50.7 8.75 473 41.6 8.79
2,129 189.3 8.89 1,646 145.1 8.82
5,880 528.4 8.99 5,508 494.2 8.97
950 74.8 7.87 657 51.0 7.76
1,485 123.0 8.28 2,188 183.0 8.36
------------ ------------ ------------ ------------
8,315 726.2 8.73 8,353 728.2 8.72
------------ ------------ ------------ ------------
15,979 1,363.1 8.53 15,175 1,318.2 8.69
------------ ------------ ------------ ------------
231 49.2 227 43.4
------------ ------------ ------------ ------------
15,748 1,412.3 8.84 14,948 1,361.6 8.97
------------ ------------ ------------ ------------
21,674 1,788.1 8.26% 20,471 1,724.3 8.43%
------------ ------------ ------------ ------------
901 883
1,031 972
------------ ------------
$ 23,375 $ 22,099
============ ============
$ 2,664 $ 2,477
3,068 80.2 2.61% 2,815 68.6 2.44%
2,836 86.3 3.04 2,666 77.9 2.92
6,959 394.3 5.67 6,635 374.0 5.64
------------ ------------ ------------ ------------
15,527 560.8 4.36 14,593 520.5 4.30
------------ ------------ ------------ ------------
28 1.5 5.36 16 1.1 6.88
305 18.4 6.03 262 17.0 6.50
------------ ------------ ------------ ------------
15,860 580.7 4.40 14,871 538.6 4.34
------------ ------------ ------------ ------------
2,883 149.1 5.17 2,422 138.1 5.70
1,835 120.2 6.55 2,103 146.4 6.96
516 30.7 5.96 529 33.8 6.38
------------ ------------ ------------ ------------
18,430 880.7 4.78% 17,448 856.9 4.91%
------------ ------------ ------------ ------------
505 432
1,776 1,742
------------ ------------
$ 23,375 $ 22,099
============ ============
3.48% 3.52%
0.71% 0.72%
$ 907.4 4.19% $ 867.4 4.24%
============ ============
</TABLE>
<PAGE> 25
P.9
HUNTINGTON BANCSHARES INCORPORATED
SELECTED ANNUAL INCOME STATEMENT DATA
(IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
2000 1999 1998
----------------- ----------------- -----------------
<S> <C> <C> <C>
TOTAL INTEREST INCOME ................................... $ 2,108,505 $ 2,026,002 $ 1,999,364
TOTAL INTEREST EXPENSE .................................. 1,166,073 984,240 978,271
----------------- ----------------- -----------------
NET INTEREST INCOME ..................................... 942,432 1,041,762 1,021,093
Provision for loan losses ............................... 90,479 88,447 105,242
----------------- ----------------- -----------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ............................. 851,953 953,315 915,851
----------------- ----------------- -----------------
Service charges on deposit accounts ..................... 160,727 156,315 126,403
Brokerage and insurance income .......................... 61,871 52,076 36,710
Trust services .......................................... 53,613 52,030 50,754
Electronic banking fees ................................. 43,883 37,301 29,202
Bank Owned Life Insurance income ........................ 39,544 37,560 28,712
Mortgage banking ........................................ 38,025 56,890 60,006
Credit card fees ........................................ 6,985 23,314 21,909
Other ................................................... 51,810 36,587 45,181
----------------- ----------------- -----------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS ................. 456,458 452,073 398,877
----------------- ----------------- -----------------
Securities gains ........................................ 37,101 12,972 29,793
Gains on sale of credit card portfolios ................. --- 108,530 9,530
----------------- ----------------- -----------------
TOTAL NON-INTEREST INCOME ............................... 493,559 573,575 438,200
----------------- ----------------- -----------------
Personnel and related costs ............................. 421,750 419,901 428,539
Equipment ............................................... 78,069 66,666 62,040
Net occupancy ........................................... 75,882 62,169 54,123
Outside data processing and other services .............. 62,011 62,886 74,795
Amortization of intangible assets ....................... 39,207 37,297 25,689
Marketing ............................................... 34,884 32,506 32,260
Telecommunications ...................................... 26,225 28,519 29,429
Legal and other professional services ................... 20,819 21,169 25,160
Printing and supplies ................................... 19,634 20,227 23,673
Franchise and other taxes ............................... 11,077 14,674 22,103
Other ................................................... 46,059 49,314 46,118
----------------- ----------------- -----------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES .............................................. 835,617 815,328 823,929
Special charges ......................................... 50,000 96,791 90,000
----------------- ----------------- -----------------
TOTAL NON-INTEREST EXPENSE .............................. 885,617 912,119 913,929
----------------- ----------------- -----------------
Income Before Income Taxes .............................. 459,895 614,771 440,122
Provision for income taxes .............................. 131,449 192,697 138,354
----------------- ----------------- -----------------
NET INCOME .............................................. $ 328,446 $ 422,074 $ 301,768
================= ================= =================
PER COMMON SHARE (1)
Net Income
Basic .............................................. $1.32 $1.66 $1.18
Diluted ............................................ $1.32 $1.65 $1.17
Cash Dividends Declared ................................ $0.76 $0.68 $0.62
FULLY TAX EQUIVALENT MARGIN:
Net Interest Income ..................................... $ 942,432 $ 1,041,762 $ 1,021,093
Tax Equivalent Adjustment (2) ........................... 8,310 9,423 10,307
----------------- ----------------- -----------------
Tax Equivalent Net Interest Income ...................... $ 950,742 $ 1,051,185 $ 1,031,400
================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ----------------- -----------------
<S> <C> <C> <C>
TOTAL INTEREST INCOME ................................... $ 1,981,473 $ 1,775,734 $ 1,709,627
TOTAL INTEREST EXPENSE .................................. 954,243 880,648 856,860
----------------- ----------------- -----------------
NET INTEREST INCOME ..................................... 1,027,230 895,086 852,767
Provision for Loan Losses ............................... 107,797 76,371 36,712
----------------- ----------------- -----------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ............................. 919,433 818,715 816,055
----------------- ----------------- -----------------
Service charges on deposit accounts ..................... 117,852 107,669 97,505
Brokerage and insurance income .......................... 27,084 20,856 17,979
Trust services .......................................... 48,102 42,237 37,627
Electronic banking fees ................................. 22,705 12,013 6,190
Bank Owned Life Insurance income ........................ --- --- ---
Mortgage banking ........................................ 55,715 43,942 39,309
Credit card fees ........................................ 20,467 23,086 18,757
Other ................................................... 42,936 46,640 48,343
----------------- ----------------- -----------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS ................. 334,861 296,443 265,710
----------------- ----------------- -----------------
Securities gains ........................................ 7,978 17,620 9,380
Gains on sale of credit card portfolios ................. --- --- ---
----------------- ----------------- -----------------
TOTAL NON-INTEREST INCOME ............................... 342,839 314,063 275,090
----------------- ----------------- -----------------
Personnel and Related Costs ............................. 392,793 360,865 344,905
Equipment ............................................... 57,867 50,887 44,646
Net Occupancy ........................................... 49,509 49,676 47,824
Outside Data Processing and Other Services .............. 66,683 58,367 53,582
Amortization of Intangible Assets ....................... 13,019 10,220 9,471
Marketing ............................................... 32,782 20,331 17,598
Telecommunications ...................................... 21,527 16,567 13,946
Legal and Other Professional Services ................... 24,931 20,313 18,656
Printing and Supplies ................................... 21,584 19,602 18,103
Franchise and Other Taxes ............................... 19,836 20,359 17,083
Other ................................................... 51,414 48,323 76,247
----------------- ----------------- -----------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES .............................................. 751,945 675,510 662,061
Special Charges ......................................... 51,163 --- ---
----------------- ----------------- -----------------
TOTAL NON-INTEREST EXPENSE .............................. 803,108 675,510 662,061
----------------- ----------------- -----------------
Income Before Income Taxes .............................. 459,164 457,268 429,084
Provision for Income Taxes .............................. 166,501 152,999 147,283
----------------- ----------------- -----------------
NET INCOME .............................................. $ 292,663 $ 304,269 $ 281,801
================= ================= =================
PER COMMON SHARE (1)
Net Income
Basic .............................................. $1.15 $1.19 $1.07
Diluted ............................................ $1.14 $1.18 $1.06
Cash Dividends Declared ................................ $0.56 $0.51 $0.46
FULLY TAX EQUIVALENT MARGIN:
Net Interest Income ..................................... $ 1,027,230 $ 895,086 $ 852,767
Tax Equivalent Adjustment (2) ........................... 11,864 12,363 14,602
----------------- ----------------- -----------------
Tax Equivalent Net Interest Income ...................... $ 1,039,094 $ 907,449 $ 867,369
================= ================= =================
</TABLE>
(1) Adjusted for stock splits and stock dividends, as applicable.
(2) Calculated assuming a 35% tax rate.
<PAGE> 26
HUNTINGTON BANCSHARES INCORPORATED P.10
------------------------------------------------------
NET INTEREST MARGIN ANALYSIS (QUARTERLY DATA)
(IN MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
Fully Tax Equivalent Basis (1) 4TH QUARTER 2000 3RD QUARTER 2000
------------------------------------------------------ --------------------------- -------------------------------
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE RATE BALANCE RATE
------------- ---------- --------------- ----------
<S> <C> <C> <C> <C>
ASSETS
Interest Bearing Deposits in Banks ................... $ 5 5.50 % $ 5 6.13 %
Trading Account Securities ........................... 17 6.56 11 6.54
Federal Funds Sold and Securities Purchased
under Resale Agreements ........................... 85 6.53 136 6.43
Mortgages Held for Sale .............................. 129 7.74 99 8.51
Securities:
Taxable ........................................ 4,410 6.31 4,273 6.33
Tax Exempt ..................................... 264 7.53 270 7.57
------------- -------------
Total Securities .......................... 4,674 6.38 4,543 6.40
------------- -------------
Loans:
Commercial ...................................... 6,543 8.65 6,454 8.74
Real Estate
Construction ............................... 1,306 8.87 1,283 8.88
Commercial ................................. 2,227 8.64 2,193 8.60
Consumer
Loans ..................................... 6,425 8.90 6,392 8.82
Leases .................................... 3,049 6.92 2,976 6.79
Residential Mortgage ...................... 940 7.94 1,325 7.64
------------- -------------
Total Consumer ............................ 10,414 8.24 10,693 8.11
------------- -------------
Total Loans .......................................... 20,490 8.45 20,623 8.41
------------- -------------
Allowance for Loan Losses/loan Fees .................. 302 302
------------- -------------
Net Loans (2) ........................................ 20,188 8.96 20,321 8.90
------------- -------------
Total Earning Assets ................................. 25,400 8.47 % 25,417 8.43 %
------------- -------------
Cash and Due From Banks .............................. 960 968
All Other Assets ..................................... 2,597 2,615
------------- -------------
Total Assets ......................................... $ 28,655 $ 28,698
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Core Deposits
Non-interest Bearing Deposits ................... $ 3,308 $ 3,425
Interest Bearing Demand Deposits ................ 4,496 3.62 % 4,385 3.47 %
Savings Deposits ................................ 3,498 4.28 3,528 4.14
Certificates of Deposit .......................... 7,522 6.07 7,450 5.94
------------- -------------
Total Core Deposits ........................ 18,824 4.96 18,788 4.82
------------- -------------
Other Domestic Time Deposits ......................... 365 6.68 433 6.55
Foreign Time Deposits ................................ 322 6.37 561 6.63
------------- -------------
Total Deposits .................................. 19,511 5.02 19,782 4.93
------------- -------------
Short-term Borrowings ................................ 2,133 6.00 2,014 6.12
Medium-term Notes .................................... 2,665 6.85 2,592 6.81
Subordinated Notes and Other Long-term Debt,
Including Capital Securities ...................... 1,171 7.42 1,171 7.39
------------- -------------
Interest Bearing Liabilities .................... 22,172 5.46 % 22,134 5.39 %
------------- -------------
All Other Liabilities ................................ 822 787
Shareholders' Equity ................................. 2,353 2,352
------------- -------------
Total Liabilities and Shareholders' Equity ........... $ 28,655 $ 28,698
============= =============
Net Interest Rate Spread ............................. 3.01 % 3.04 %
Impact of Non-interest Bearing Funds On Margin ....... 0.69 % 0.70 %
Net Interest Margin .................................. 3.70 % 3.74 %
</TABLE>
<TABLE>
<CAPTION>
Fully Tax Equivalent Basis (1) 2ND QUARTER 2000
------------------------------------------------------ --------------------------------
AVERAGE YIELD/
BALANCE RATE
------------------ ----------
<S> <C> <C>
ASSETS
Interest Bearing Deposits in Banks ................... $ 6 5.13 %
Trading Account Securities ........................... 18 8.67
Federal Funds Sold and Securities Purchased
Under Resale Agreements ........................... 105 6.10
Mortgages Held for Sale .............................. 99 8.11
Securities:
Taxable ........................................ 4,067 6.20
Tax Exempt ..................................... 276 7.63
--------------
Total Securities .......................... 4,343 6.29
--------------
Loans:
Commercial ...................................... 6,439 8.65
Real Estate
Construction ............................... 1,254 8.72
Commercial ................................. 2,172 8.51
Consumer
Loans ..................................... 6,530 8.38
Leases .................................... 2,895 6.71
Residential Mortgage ...................... 1,473 7.62
--------------
Total Consumer ............................ 10,898 7.83
--------------
Total Loans .......................................... 20,763 8.21
--------------
Allowance for Loan Losses/loan Fees .................. 302
--------------
Net Loans (2) ........................................ 20,461 8.69
--------------
Total Earning Assets ................................. 25,334 8.27 %
--------------
Cash and Due From Banks .............................. 1,046
All Other Assets ..................................... 2,496
--------------
Total Assets ......................................... $ 28,574
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Core Deposits
Non-interest Bearing Deposits ................... $ 3,485
Interest Bearing Demand Deposits ................ 4,228 3.32 %
Savings Deposits ................................ 3,583 4.21
Certificates of Deposit .......................... 7,247 5.64
--------------
Total Core Deposits ........................ 18,543 4.65
--------------
Other Domestic Time Deposits ......................... 506 6.28
Foreign Time Deposits ................................ 626 6.66
--------------
Total Deposits .................................. 19,675 4.78
--------------
Short-term Borrowings ................................ 1,761 5.77
Medium-term Notes .................................... 3,042 6.46
Subordinated Notes and Other Long-term Debt,
Including Capital Securities ...................... 1,148 7.08
--------------
Interest Bearing Liabilities .................... 22,141 5.21 %
--------------
All Other Liabilities ................................ 743
Shareholders' Equity ................................. 2,205
--------------
Total Liabilities and Shareholders' Equity ........... $ 28,574
==============
Net Interest Rate Spread ............................. 3.06 %
Impact of Non-interest Bearing Funds On Margin ....... 0.66 %
Net Interest Margin .................................. 3.72 %
</TABLE>
(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> 27
HUNTINGTON BANCSHARES INCORPORATED P.11
------------------------------------------------------------
NET INTEREST MARGIN ANALYSIS (QUARTERLY DATA)
<TABLE>
<CAPTION>
1ST QUARTER 2000 4TH QUARTER 1999 3RD QUARTER 1999
-------------------------------- --------------------------- ---------------------------
AVERAGE YIELD/ AVERAGE YIELD/ AVERAGE YIELD/
BALANCE RATE BALANCE RATE BALANCE RATE
---------------- ------------- ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ 6 3.69 % $ 13 3.94 % $ 8 3.64 %
14 6.26 14 6.35 7 5.64
23 6.11 31 6.10 20 5.39
109 7.59 135 7.45 169 7.27
4,515 6.14 4,854 6.15 4,846 6.14
282 7.68 288 7.73 295 7.76
---------------- ------------ -------------
4,797 6.23 5,142 6.23 5,141 6.24
---------------- ------------ -------------
6,345 8.31 6,194 8.06 6,066 7.90
1,238 8.38 1,182 8.19 1,103 8.13
2,156 8.35 2,185 8.18 2,215 8.14
6,837 8.29 6,876 8.27 7,093 8.29
2,773 6.65 2,633 6.55 2,365 6.75
1,449 7.54 1,443 7.45 1,421 7.47
---------------- ------------ -------------
11,059 7.78 10,952 7.75 10,879 7.85
---------------- ------------ -------------
20,798 8.04 20,513 7.91 20,263 7.91
---------------- ------------ -------------
306 309 301
---------------- ------------ -------------
20,492 8.52 20,204 8.43 19,962 8.54
---------------- ------------ -------------
25,747 8.08 % 25,848 7.98 % 25,608 8.07 %
---------------- ------------ -------------
1,058 1,024 1,026
2,454 2,434 2,468
---------------- ------------ -------------
$ 28,953 $ 28,997 $ 28,801
================ ============ =============
$ 3,466 $ 3,460 $ 3,509
4,053 2.97 % 4,077 2.76 % 4,139 2.66 %
3,645 3.80 3,768 3.61 3,792 3.43
7,271 5.44 7,185 5.23 7,066 5.05
---------------- ------------ -------------
18,435 4.37 18,490 4.16 18,506 3.98
---------------- ------------ -------------
707 6.10 416 5.90 228 5.11
649 5.65 517 5.40 465 5.17
---------------- ------------ -------------
19,791 4.50 19,423 4.24 19,199 4.03
---------------- ------------ -------------
1,954 5.10 2,226 4.74 2,331 4.54
3,283 6.18 3,347 5.88 3,415 5.44
1,004 6.82 1,000 6.51 1,001 6.03
---------------- ------------ -------------
22,566 4.90 % 22,536 4.64 % 22,437 4.39 %
---------------- ------------ -------------
715 893 658
2,206 2,108 2,197
---------------- ------------ -------------
$ 28,953 $ 28,997 $ 28,801
================ ============ =============
3.18 % 3.34 % 3.68 %
0.60 % 0.60 % 0.54 %
3.78 % 3.94 % 4.22 %
</TABLE>
<TABLE>
<CAPTION>
2ND QUARTER 1999 1ST QUARTER 1999
--------------------------- ---------------------------
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE RATE BALANCE RATE
------------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
$ 8 3.75 % $ 8 4.93 %
15 5.41 18 5.20
19 4.86 18 5.64
269 6.96 359 6.75
4,914 5.99 4,926 6.05
303 7.90 304 8.17
------------- ------------
5,217 6.10 5,230 6.17
------------- ------------
6,182 7.73 6,067 7.90
1,012 7.92 957 8.14
2,306 8.15 2,236 8.21
6,907 8.25 6,873 8.38
2,175 6.72 2,015 6.94
1,420 7.54 1,415 7.58
------------- ------------
10,502 7.84 10,303 7.99
------------- ------------
20,002 7.84 19,563 7.99
------------- ------------
297 299
------------- ------------
19,705 8.35 19,264 8.49
------------- ------------
25,530 7.87 % 25,196 7.98 %
------------- ------------
1,044 1,064
2,454 2,461
------------- ------------
$ 28,731 $ 28,422
============= ============
$ 3,511 $ 3,505
4,109 2.50 % 4,061 2.46 %
3,769 3.25 3,627 3.17
7,194 5.08 7,655 5.29
------------- ------------
18,583 3.92 18,848 4.04
------------- ------------
183 4.93 122 4.92
307 4.82 161 4.80
------------- ------------
19,073 3.95 19,131 4.06
------------- ------------
2,793 4.38 2,853 4.33
3,047 5.19 2,666 5.29
1,004 5.70 1,007 5.81
------------- ------------
22,406 4.25 % 22,152 4.32 %
------------- ------------
653 644
2,161 2,121
------------- ------------
$ 28,731 $ 28,422
============= ============
3.62 % 3.66 %
0.52 % 0.52 %
4.14 % 4.18 %
</TABLE>
<PAGE> 28
P.12
HUNTINGTON BANCSHARES INCORPORATED
SELECTED QUARTERLY INCOME STATEMENT DATA
(IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
2000
--------------------------------------------------------------------------
IV Q III Q II Q I Q
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
TOTAL INTEREST INCOME ........................... $ 537,661 $ 535,791 $ 519,496 $ 515,557
TOTAL INTEREST EXPENSE .......................... 304,595 299,922 286,690 274,866
---------------- ---------------- --------------- ----------------
NET INTEREST INCOME ............................. 233,066 235,869 232,806 240,691
Provision for Loan Losses ....................... 32,548 26,396 15,834 15,701
---------------- ---------------- --------------- ----------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ..................... 200,518 209,473 216,972 224,990
---------------- ---------------- --------------- ----------------
Service Charges On Deposit Accounts ............. 39,248 39,722 40,097 41,660
Brokerage and Insurance Income .................. 17,078 15,564 13,945 15,284
Trust Services .................................. 14,404 13,181 13,165 12,863
Mortgage Banking ................................ 11,976 9,412 8,122 8,515
Electronic Banking Fees ......................... 11,546 11,238 11,250 9,849
Bank Owned Life Insurance Income ................ 11,086 9,786 9,486 9,186
Credit Card Fees ................................ 2,108 1,744 1,340 1,793
Other ........................................... 22,258 9,626 18,145 1,781
---------------- ---------------- --------------- ----------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS ......... 129,704 110,273 115,550 100,931
---------------- ---------------- --------------- ----------------
Securities Gains ................................ 845 11,379 114 24,763
Gains On Sale of Credit Card Portfolios ......... --- --- --- ---
---------------- ---------------- --------------- ----------------
TOTAL NON-INTEREST INCOME ....................... 130,549 121,652 115,664 125,694
---------------- ---------------- --------------- ----------------
Personnel and Related Costs ..................... 105,810 109,463 104,133 102,344
Equipment ....................................... 20,811 18,983 18,863 19,412
Net Occupancy ................................... 18,614 19,520 18,613 19,135
Outside Data Processing and Other Services ...... 16,142 15,531 15,336 15,002
Marketing ....................................... 10,592 8,557 7,742 7,993
Amortization of Intangible Assets ............... 10,494 10,311 9,206 9,196
Legal and Other Professional Services ........... 6,785 4,719 4,815 4,500
Telecommunications .............................. 6,524 6,480 6,472 6,749
Printing and Supplies ........................... 5,212 4,849 4,956 4,617
Franchise and Other Taxes ....................... 3,163 2,841 2,635 2,438
Other ........................................... 19,703 12,331 5,305 8,720
---------------- ---------------- --------------- ----------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES ...................................... 223,850 213,585 198,076 200,106
---------------- ---------------- --------------- ----------------
Special Charges ................................. --- 50,000 --- ---
---------------- ---------------- --------------- ----------------
TOTAL NON-INTEREST EXPENSE ...................... 223,850 263,585 198,076 200,106
---------------- ---------------- --------------- ----------------
INCOME BEFORE INCOME TAXES ...................... 107,217 67,540 134,560 150,578
Provision for Income Taxes ...................... 30,995 17,010 37,039 46,405
---------------- ---------------- --------------- ----------------
NET INCOME ...................................... $ 76,222 $ 50,530 $ 97,521 $ 104,173
================ ================ =============== ================
PER COMMON SHARE (1)
Net Income
Diluted .................................... $0.30 $0.20 $0.40 $0.42
Diluted - Cash Basis ....................... $0.34 $0.23 $0.43 $0.45
Cash Dividends Declared ........................ $0.20 $0.20 $0.18 $0.18
FULLY TAX EQUIVALENT MARGIN:
Net Interest Income ............................. $ 233,066 $ 235,869 $ 232,806 $ 240,691
Tax Equivalent Adjustment (2) ................... 2,057 2,022 2,074 2,157
---------------- ---------------- --------------- ----------------
Tax Equivalent Net Interest Income .............. $ 235,123 $ 237,891 $ 234,880 $ 242,848
================ ================ =============== ================
</TABLE>
<TABLE>
<CAPTION>
1999
-------------------------------------------------------------------------
IV Q III Q II Q I Q
--------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
TOTAL INTEREST INCOME ........................... $ 515,516 $ 516,294 $ 498,500 $ 495,692
TOTAL INTEREST EXPENSE .......................... 262,854 247,863 237,352 236,171
--------------- ---------------- ---------------- ---------------
NET INTEREST INCOME ............................. 252,662 268,431 261,148 259,521
Provision for Loan Losses ....................... 20,040 22,076 21,026 25,305
--------------- ---------------- ---------------- ---------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ..................... 232,622 246,355 240,122 234,216
--------------- ---------------- ---------------- ---------------
Service Charges On Deposit Accounts ............. 42,774 41,700 36,065 35,776
Brokerage and Insurance Income .................. 13,373 14,620 12,540 11,543
Trust Services .................................. 12,828 12,625 13,143 13,434
Mortgage Banking ................................ 9,426 14,282 17,224 15,958
Electronic Banking Fees ......................... 10,082 9,771 9,410 8,038
Bank Owned Life Insurance Income ................ 9,390 9,390 9,390 9,390
Credit Card Fees ................................ 5,091 6,626 6,255 5,342
Other ........................................... 11,374 6,103 11,029 8,081
--------------- ---------------- ---------------- ---------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS ......... 114,338 115,117 115,056 107,562
--------------- ---------------- ---------------- ---------------
Securities Gains ................................ 7,905 537 2,220 2,310
Gains On Sale of Credit Card Portfolios ......... 108,530 --- --- ---
--------------- ---------------- ---------------- ---------------
TOTAL NON-INTEREST INCOME ....................... 230,773 115,654 117,276 109,872
--------------- ---------------- ---------------- ---------------
Personnel and Related Costs ..................... 100,654 104,730 107,263 107,254
Equipment ....................................... 18,161 16,059 15,573 16,873
Net Occupancy ................................... 17,890 16,799 13,563 13,917
Outside Data Processing and Other Services ...... 15,642 15,929 15,923 15,392
Marketing ....................................... 9,642 9,049 7,319 6,496
Amortization of Intangible Assets ............... 9,307 9,326 9,336 9,328
Legal and Other Professional Services ........... 5,868 4,754 5,803 4,744
Telecommunications .............................. 7,108 7,412 6,935 7,064
Printing and Supplies ........................... 5,483 5,254 4,734 4,756
Franchise and Other Taxes ....................... 2,708 3,598 3,981 4,387
Other ........................................... 12,432 13,279 11,708 11,895
--------------- ---------------- ---------------- ---------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES ...................................... 204,895 206,189 202,138 202,106
--------------- ---------------- ---------------- ---------------
Special Charges ................................. 96,791 --- --- ---
--------------- ---------------- ---------------- ---------------
TOTAL NON-INTEREST EXPENSE ...................... 301,686 206,189 202,138 202,106
--------------- ---------------- ---------------- ---------------
INCOME BEFORE INCOME TAXES ...................... 161,709 155,820 155,260 141,982
Provision for Income Taxes ...................... 46,769 50,233 50,285 45,410
--------------- ---------------- ---------------- ---------------
NET INCOME ...................................... $ 114,940 $ 105,587 $ 104,975 $ 96,572
=============== ================ ================ ===============
PER COMMON SHARE (1)
Net Income
Diluted .................................... $0.45 $0.41 $0.41 $0.38
Diluted - Cash Basis ....................... $0.48 $0.44 $0.44 $0.41
Cash Dividends Declared ........................ $0.18 $0.18 $0.16 $0.16
FULLY TAX EQUIVALENT MARGIN:
Net Interest Income ............................. $ 252,662 $ 268,431 $ 261,148 $ 259,521
Tax Equivalent Adjustment (2) ................... 2,249 2,280 2,390 2,504
--------------- ---------------- ---------------- ---------------
Tax Equivalent Net Interest Income .............. $ 254,911 $ 270,711 $ 263,538 $ 262,025
=============== ================ ================ ===============
</TABLE>
(1) Adjusted for stock splits and stock dividends, as applicable.
(2) Calculated assuming a 35% tax rate.
<PAGE> 29
P.13
HUNTINGTON BANCSHARES INCORPORATED
NONINTEREST INCOME AND NONINTEREST EXPENSE
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(IN THOUSANDS OF DOLLARS)
ANALYSIS OF NON-INTEREST INCOME
<TABLE>
<CAPTION>
THREE MONTHS ENDED
DECEMBER 31,
------------------------------------- PERCENT
2000 1999 CHANGE
---------------- ---------------- -----------------
<S> <C> <C> <C>
Service charges on deposit accounts.......................... $ 39,248 $ 42,774 (8.2)%
Brokerage and insurance income............................... 17,078 13,373 27.7
Trust services............................................... 14,404 12,828 12.3
Mortgage banking............................................. 11,976 9,426 27.1
Electronic banking fees...................................... 11,546 10,082 14.5
Bank Owned Life Insurance income............................. 11,086 9,390 18.1
Credit card fees............................................. 2,108 5,091 (58.6)
Other........................................................ 22,258 11,374 95.7
---------------- ----------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS...................... 129,704 114,338 13.4
---------------- ----------------
Securities gains............................................. 845 7,905 (89.3)
Gains on sale of credit card portfolios...................... --- 108,530 N.M.
---------------- ----------------
TOTAL NON-INTEREST INCOME.................................... $ 130,549 $ 230,773 (43.4)%
================ ================
</TABLE>
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED
DECEMBER 31,
------------------------------------ PERCENT
2000 1999 CHANGE
--------------- ---------------- -----------------
<S> <C> <C> <C>
Service charges on deposit accounts.......................... $ 160,727 $ 156,315 2.8 %
Brokerage and insurance income............................... 61,871 52,076 18.8
Trust services............................................... 53,613 52,030 3.0
Mortgage banking............................................. 38,025 56,890 (33.2)
Electronic banking fees...................................... 43,883 37,301 17.6
Bank Owned Life Insurance income............................. 39,544 37,560 5.3
Credit card fees............................................. 6,985 23,314 (70.0)
Other........................................................ 51,810 36,587 41.6
--------------- ----------------
TOTAL NON-INTEREST INCOME BEFORE SECURITIES
AND CREDIT CARD PORTFOLIO SALE GAINS...................... 456,458 452,073 1.0
--------------- ----------------
Securities gains............................................. 37,101 12,972 N.M.
Gains on sale of credit card portfolios...................... --- 108,530 N.M.
--------------- ----------------
TOTAL NON-INTEREST INCOME.................................... $ 493,559 $ 573,575 (14.0)%
=============== ================
</TABLE>
ANALYSIS OF NON-INTEREST EXPENSE
<TABLE>
<CAPTION>
THREE MONTHS ENDED
DECEMBER 31,
------------------------------------- PERCENT
2000 1999 CHANGE
---------------- ---------------- -----------------
<S> <C> <C> <C>
Personnel and related costs.................................. $ 105,810 $ 100,654 5.1 %
Equipment.................................................... 20,811 18,161 14.6
Net occupancy................................................ 18,614 17,890 4.0
Outside data processing and other services................... 16,142 15,642 3.2
Marketing.................................................... 10,592 9,642 9.9
Amortization of intangible assets............................ 10,494 9,307 12.8
Legal and other professional services........................ 6,785 5,868 15.6
Telecommunications........................................... 6,524 7,108 (8.2)
Printing and supplies........................................ 5,212 5,483 (4.9)
Franchise and other taxes.................................... 3,163 2,708 16.8
Other........................................................ 19,703 12,432 58.5
---------------- ----------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES................................................... 223,850 204,895 9.3
---------------- ----------------
Special charges.............................................. --- 96,791 N.M.
---------------- ----------------
TOTAL NON-INTEREST EXPENSE................................... $ 223,850 $ 301,686 (25.8)%
================ ================
</TABLE>
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED
DECEMBER 31,
------------------------------------ PERCENT
2000 1999 CHANGE
--------------- ---------------- -----------------
<S> <C> <C> <C>
Personnel and related costs.................................. $ 421,750 $ 419,901 0.4 %
Equipment.................................................... 78,069 66,666 17.1
Net occupancy................................................ 75,882 62,169 22.1
Outside data processing and other services................... 62,011 62,886 (1.4)
Marketing.................................................... 34,884 32,506 7.3
Amortization of intangible assets............................ 39,207 37,297 5.1
Legal and other professional services........................ 20,819 21,169 (1.7)
Telecommunications........................................... 26,225 28,519 (8.0)
Printing and supplies........................................ 19,634 20,227 (2.9)
Franchise and other taxes.................................... 11,077 14,674 (24.5)
Other........................................................ 46,059 49,314 (6.6)
--------------- ----------------
TOTAL NON-INTEREST EXPENSE BEFORE SPECIAL
CHARGES................................................... 835,617 815,328 2.5
--------------- ----------------
Special charges.............................................. 50,000 96,791 N.M.
--------------- ----------------
TOTAL NON-INTEREST EXPENSE................................... $ 885,617 $ 912,119 (2.9)%
=============== ================
</TABLE>
N.M. - Not Meaningful
<PAGE> 30
P.14
HUNTINGTON BANCSHARES INCORPORATED
STOCK SUMMARY, KEY RATIOS AND STATISTICS
QUARTERLY COMMON STOCK SUMMARY (1)
<TABLE>
<CAPTION>
2000
-------------------------------------------------------------------------- -
IV Q III Q II Q I Q
---------------- ---------------- ----------------- ----------------- -
<S> <C> <C> <C> <C>
High..................................... $16 3/8 $18 3/4 $20 13/16 $21 13/16
Low...................................... 12 1/2 14 11/16 14 3/8 16 1/8
Close.................................... 16 3/16 14 11/16 14 3/8 20 5/16
Cash dividends declared.................. $0.20 $0.20 $0.18 $0.18
</TABLE>
<TABLE>
<CAPTION>
1999
-----------------------------------------------------------------------
IV Q III Q IIQ IQ
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
High..................................... $27 15/16 $30 13/16 $30 15/16 $27 11/16
Low...................................... 19 1/2 22 7/16 25 3/16 24 11/16
Close.................................... 21 11/16 24 1/8 28 15/16 25 9/16
Cash dividends declared.................. $0.18 $0.18 $0.16 $0.16
</TABLE>
Note: Stock price quotations were obtained from NASDAQ
KEY RATIOS AND STATISTICS
<TABLE>
<CAPTION>
2000
-------------------------------------------------------------------------- -
IV Q III Q II Q I Q
---------------- ---------------- ----------------- ----------------- -
<S> <C> <C> <C> <C>
MARGIN ANALYSIS - AS A %
OF AVERAGE EARNING ASSETS (2)
-----------------------------
Interest Income.......................... 8.47% 8.43% 8.27% 8.08%
Interest Expense......................... 4.77% 4.69% 4.55% 4.30%
-------------- -------------- -------------- -------------
Net Interest Margin................. 3.70% 3.74% 3.72% 3.78%
============== ============== ============== =============
RETURN ON (3)
-------------
Average total assets................... 1.06% 1.15% 1.37% 1.45%
Average total
assets - cash basis................. 1.21% 1.30% 1.51% 1.58%
Average shareholders' equity........... 12.89% 14.04% 17.79% 18.99%
Average shareholders'
equity - cash basis................. 21.14% 22.74% 27.26% 29.01%
Efficiency ratio (3)..................... 58.48% 58.38% 53.90% 53.93%
REGULATORY CAPITAL DATA 2000
-------------------------------------------------------------------------- -
(in millions of dollars) IV Q (4) III Q II Q I Q
-------------------------------------------- ---------------- ---------------- ----------------- ----------------- -
Total Risk-Adjusted Assets............... $26,883 $ 26,370 $ 25,900 $ 25,251
Tier 1 Risk-Based Capital Ratio.......... 7.20% 7.20% 7.40% 7.23%
Total Risk-Based Capital Ratio........... 10.46% 10.64% 10.90% 10.90%
Tier 1 Leverage Ratio.................... 6.93% 6.80% 6.89% 6.45%
</TABLE>
<TABLE>
<CAPTION>
1999
----------------------------------------------------------------------
IV Q III Q IIQ IQ
--------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
MARGIN ANALYSIS - AS A %
OF AVERAGE EARNING ASSETS (2)
-----------------------------
Interest Income.......................... 7.98% 8.07% 7.87% 7.98%
Interest Expense......................... 4.04% 3.85% 3.73% 3.80%
------------- ------------- ------------- -------------
Net Interest Margin................. 3.94% 4.22% 4.14% 4.18%
============= ============= ============= =============
RETURN ON (3)
-------------
Average total assets................... 1.47% 1.45% 1.47% 1.38%
Average total
assets - cash basis................. 1.61% 1.59% 1.61% 1.52%
Average shareholders' equity........... 20.20% 19.07% 19.48% 18.47%
Average shareholders'
equity - cash basis................. 31.59% 29.54% 30.61% 29.58%
Efficiency ratio (3)..................... 52.97% 51.02% 50.93% 52.16%
REGULATORY CAPITAL DATA 1999
----------------------------------------------------------------------
(in millions of dollars) IV Q III Q II Q I Q
-------------------------------------------- --------------- ---------------- ---------------- ----------------
Total Risk-Adjusted Assets............... $25,298 $25,309 $24,829 $24,345
Tier 1 Risk-Based Capital Ratio.......... 7.52% 7.32% 7.29% 7.20%
Total Risk-Based Capital Ratio........... 10.72% 10.62% 10.65% 10.70%
Tier 1 Leverage Ratio.................... 6.72% 6.58% 6.45% 6.32%
</TABLE>
(1) Adjusted for stock splits and stock dividends, as applicable.
(2) Presented on a fully tax equivalent basis assuming a 35% tax rate.
(3) Presented on an "operating" basis (excludes gains from sale of credit card
portfolios and special charges, net of related taxes).
(4) Estimated.
<PAGE> 31
P.15
HUNTINGTON BANCSHARES INCORPORATED
LOAN LOSS RESERVES AND ASSET QUALITY
(IN THOUSANDS OF DOLLARS)
ALLOWANCE FOR LOAN LOSSES AND SELECTED STATISTICS
<TABLE>
<CAPTION>
----------------------- ---------------------- -----------------------
2000 1999 1998
----------------------- ---------------------- -----------------------
<S> <C> <C> <C>
Allowance for loan losses, beginning of year....... $ 299,309 $ 290,948 $ 258,171
Loan losses
Commercial.................................. (18,013) (16,203) (24,512)
Real Estate
Construction........................... (238) (638) (80)
Commercial............................. (1,522) (2,399) (2,115)
Consumer
Loans.................................. (65,211) (78,688) (84,961)
Leases................................. (24,721) (12,959) (13,444)
Residential Mortgage................... (1,140) (1,404) (1,243)
---------------- ---------------- ----------------
Total loan losses.................................. (110,845) (112,291) (126,355)
---------------- ---------------- ----------------
Recoveries of loans previously charged off
Commercial.................................. 4,201 5,303 4,546
Real Estate
Construction........................... 165 192 441
Commercial............................. 268 1,260 1,800
Consumer
Loans.................................. 19,486 22,650 23,140
Leases................................. 3,503 2,532 1,554
Residential Mortgage................... 133 268 367
---------------- ---------------- ----------------
Total recoveries of loans previously charged off... 27,756 32,205 31,848
---------------- ---------------- ----------------
Net Loan Losses.................................... (83,089) (80,086) (94,507)
---------------- ---------------- ----------------
Allowance of securitized loans..................... (16,719) --- ---
Provision for loan losses.......................... 90,479 88,447 105,242
Allowance of assets acquired and other............. 7,900 --- 22,042
---------------- ---------------- ----------------
Allowance for loan losses, end of year............. $ 297,880 $ 299,309 $ 290,948
================ ================ ================
As a % of average total loans
Net loan losses................................. 0.40 % 0.40 % 0.51 %
Provision for loan losses....................... 0.44 % 0.44 % 0.57 %
Allowance for loan losses as a % of total loans.... 1.45 % 1.45 % 1.50 %
Net loan loss coverage (1)......................... 7.23 x 8.63 x 6.72 x
</TABLE>
<TABLE>
<CAPTION>
-------------------- ----------------------- ----------------------
1997 1996 1995
-------------------- ----------------------- ----------------------
<S> <C> <C> <C>
Allowance for loan losses, beginning of year....... $ 230,778 $ 222,487 $ 225,225
Loan losses
Commercial.................................. (23,276) (23,904) (15,947)
Real Estate
Construction........................... (375) --- (392)
Commercial............................. (728) (1,476) (3,729)
Consumer
Loans.................................. (74,761) (59,843) (39,000)
Leases................................. (9,648) (4,492) (1,989)
Residential Mortgage................... (1,935) (1,292) (1,357)
---------------- ---------------- ---------------
Total loan losses.................................. (110,723) (91,007) (62,414)
---------------- ---------------- ---------------
Recoveries of loans previously charged off
Commercial.................................. 4,373 4,884 3,696
Real Estate
Construction........................... 111 556 5
Commercial............................. 315 1,124 752
Consumer
Loans.................................. 16,382 13,457 11,156
Leases................................. 1,057 721 303
Residential Mortgage................... 304 278 225
---------------- ---------------- ---------------
Total recoveries of loans previously charged off... 22,542 21,020 16,137
---------------- ---------------- ---------------
Net Loan Losses.................................... (88,181) (69,987) (46,277)
---------------- ---------------- ---------------
Allowance of securitized loans..................... --- --- ---
Provision for loan losses.......................... 107,797 76,371 36,712
Allowance of assets acquired and other............. 7,777 1,907 6,827
---------------- ---------------- ---------------
Allowance for loan losses, end of year............. $ 258,171 $ 230,778 $ 222,487
================ ================ ===============
As a % of average total loans
Net loan losses................................. 0.50 % 0.44 % 0.30 %
Provision for loan losses....................... 0.61 % 0.48 % 0.24 %
Allowance for loan losses as a % of total loans.... 1.46 % 1.38 % 1.44 %
Net loan loss coverage (1)......................... 7.01 x 7.62 x 10.07 x
</TABLE>
(1) Income before taxes (excluding gains from sale of credit card portfolios
and special charges) and the provision for loan losses to net loan losses.
NON-PERFORMING ASSETS AND PAST DUE LOANS
<TABLE>
<CAPTION>
-------------------- ---------------------- -----------------------
2000 1999 1998
-------------------- ---------------------- -----------------------
<S> <C> <C> <C>
Non-accrual loans:
Commercial.................................. $ 55,804 $ 42,958 $ 34,586
Real Estate
Construction........................... 8,687 10,785 10,181
Commercial............................. 18,015 16,131 13,243
Residential............................ 10,174 11,866 14,419
---------------- ---------------- ----------------
Total Nonaccrual Loans............................. 92,680 81,740 72,429
Renegotiated loans................................. 1,304 1,330 4,706
---------------- ---------------- ----------------
Total Non-Performing Loans......................... 93,984 83,070 77,135
---------------- ---------------- ----------------
Other real estate, net............................. 11,413 15,171 18,964
---------------- ---------------- ----------------
Total Non-Performing Assets........................ $ 105,397 $ 98,241 $ 96,099
================ ================ ================
Non-performing loans as a
% of total loans................................. 0.46 % 0.40 % 0.40 %
Non-performing assets as a
% of total loans and other real estate........... 0.51 % 0.47 % 0.49 %
Allowance for loan losses as a % of
non-performing loans............................. 316.95 % 360.31 % 377.19 %
Allowance for loan losses and other real
estate as a % of non-performing assets........... 279.16 % 299.85 % 301.00 %
Accruing loans past due 90 days or more............ 80,306 61,287 51,037
================ ================ ================
Accruing loans past due 90 days or more
as a % of total loans....................... 0.39 % 0.30 % 0.26 %
================ ================ ================
</TABLE>
<TABLE>
<CAPTION>
-------------------- ----------------------- ----------------------
1997 1996 1995
-------------------- ----------------------- ----------------------
<S> <C> <C> <C>
Non-accrual loans:
Commercial.................................. $ 36,459 $ 25,621 $ 28,282
Real Estate
Construction........................... 5,916 1,741 1,894
Commercial............................. 10,212 14,843 13,276
Residential............................ 13,394 12,835 11,971
---------------- ---------------- ---------------
Total Nonaccrual Loans............................. 65,981 55,040 55,423
Renegotiated loans................................. 5,822 4,422 5,320
---------------- ---------------- ---------------
Total Non-Performing Loans......................... 71,803 59,462 60,743
---------------- ---------------- ---------------
Other real estate, net............................. 15,343 17,208 23,598
---------------- ---------------- ---------------
Total Non-Performing Assets........................ $ 87,146 $ 76,670 $ 84,341
================ ================ ===============
Non-performing loans as a
% of total loans................................. 0.40 % 0.35 % 0.39 %
Non-performing assets as a
% of total loans and other real estate........... 0.49 % 0.46 % 0.54 %
Allowance for loan losses as a % of
non-performing loans............................. 359.55 % 388.11 % 366.28 %
Allowance for loan losses and other real
estate as a % of non-performing assets........... 294.32 % 297.12 % 250.06 %
Accruing loans past due 90 days or more............ 49,608 39,267 30,937
================ ================ ===============
Accruing loans past due 90 days or more
as a % of total loans....................... 0.28 % 0.23 % 0.20 %
================ ================ ===============
</TABLE>
<PAGE> 32
P.16
HUNTINGTON BANCSHARES INCORPORATED
LOAN LOSS RESERVES AND ASSET QUALITY
(IN THOUSANDS OF DOLLARS)
LOAN LOSS EXPERIENCE
<TABLE>
<CAPTION>
2000
----------------------------------------------------------------------------------------
IV Q III Q II Q I Q
---------------------- ---------------------- ---------------------- -------------------
<S> <C> <C> <C> <C>
Allowance for loan losses,
beginning of period................... $ 294,686 $ 296,891 $ 296,743 $ 299,309
Allowance of assets acquired/other....... --- --- 7,900 ---
Loan losses.............................. (32,929) (29,499) (22,810) (25,607)
Recoveries of loans previously
charged off........................... 7,431 5,705 7,280 7,340
Allowance of securitized loans........... (3,856) (4,807) (8,056) ---
Provision for loan losses................ 32,548 26,396 15,834 15,701
----------------- ----------------- ----------------- -----------------
Allowance for loan losses,
end of period......................... $ 297,880 $ 294,686 $ 296,891 $ 296,743
================= ================= ================= =================
As a % of average total loans
Net loan losses--annualized............ 0.50 % 0.46 % 0.30 % 0.35 %
Provision for loan losses--annualized.. 0.63 % 0.51 % 0.31 % 0.30 %
Allowance for loan losses as a %
of total loans........................ 1.45 % 1.45 % 1.45 % 1.45 %
Net loan loss coverage (1)............... 5.48 x 6.05 x 9.68 x 9.10 x
</TABLE>
<TABLE>
<CAPTION>
1999
----------------------------------------------------------------------------------------
IV Q III Q II Q I Q
--------------------- -------------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
Allowance for loan losses,
beginning of period................... $ 295,612 $ 293,274 $ 291,066 $ 290,948
Allowance of assets acquired/other....... --- --- --- ---
Loan losses.............................. (24,855) (27,782) (27,123) (32,531)
Recoveries of loans previously
charged off........................... 8,512 8,044 8,305 7,344
Allowance of securitized loans........... --- --- --- ---
Provision for loan losses................ 20,040 22,076 21,026 25,305
---------------- ---------------- ---------------- ----------------
Allowance for loan losses,
end of period......................... $ 299,309 $ 295,612 $ 293,274 $ 291,066
================ ================ ================ ================
As a % of average total loans
Net loan losses--annualized............ 0.32 % 0.39 % 0.38 % 0.52 %
Provision for loan losses--annualized.. 0.39 % 0.43 % 0.42 % 0.52 %
Allowance for loan losses as a %
of total loans........................ 1.45 % 1.48 % 1.46 % 1.48 %
Net loan loss coverage (1)............... 10.40 x 9.01 x 9.37 x 6.64 x
</TABLE>
(1) Income before taxes (excluding gains from sale of credit card portfolios
and special charges) and the provision for loan losses to net loan losses.
NON-PERFORMING ASSETS AND PAST DUE LOANS
<TABLE>
<CAPTION>
2000
----------------------------------------------------------------------------------
IV Q III Q II Q I Q
---------------------- ------------------ -------------------- -----------------
<S> <C> <C> <C> <C>
Non-accrual loans:
Commercial............................... $ 55,804 $ 44,918 $ 45,138 $ 44,404
Real Estate
Construction........................ 8,687 7,973 8,736 7,696
Commercial.......................... 18,015 13,722 12,714 13,991
Residential......................... 10,174 8,588 11,548 10,892
----------------- ----------------- ---------------- ----------------
Total Nonaccrual Loans................... 92,680 75,201 78,136 76,983
Renegotiated loans....................... 1,304 1,311 1,317 1,324
----------------- ----------------- ---------------- ----------------
Total Non-Performing Loans............... 93,984 76,512 79,453 78,307
Other real estate, net................... 11,413 11,982 15,670 13,904
----------------- ----------------- ---------------- ----------------
Total Non-Performing Assets.............. $ 105,397 $ 88,494 $ 95,123 $ 92,211
================= ================= ================ ================
Non-performing loans as a
% of total loans....................... 0.46 % 0.38 % 0.39 % 0.38 %
Non-performing assets as a % of
total loans and other real estate...... 0.51 % 0.44 % 0.46 % 0.45 %
Allowance for loan losses as a % of
non-performing loans................... 316.95 % 385.15 % 373.67 % 378.95 %
Allowance for loan losses and
other real estate as a % of
non-performing assets.................. 279.16 % 326.77 % 306.89 % 316.30 %
Accruing loans past due 90
days or more........................... $ 80,306 $ 80,290 $ 62,775 $ 60,156
================= ================= ================ ================
</TABLE>
<TABLE>
<CAPTION>
1999
----------------------------------------------------------------------------------
IV Q III Q IIQ 1Q
-------------------- -------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Non-accrual loans:
Commercial............................... $42,958 $41,374 $37,840 $37,594
Real Estate
Construction........................ 10,785 6,154 7,877 7,540
Commercial.......................... 16,131 15,751 13,028 14,133
Residential......................... 11,866 13,094 15,192 14,849
----------------- --------------- ------------- ------------
Total Nonaccrual Loans................... 81,740 76,373 73,937 74,116
Renegotiated loans....................... 1,330 1,877 2,827 2,764
----------------- --------------- ------------- ------------
Total Non-Performing Loans............... 83,070 78,250 76,764 76,880
Other real estate, net................... 15,171 15,072 16,839 17,853
----------------- --------------- ------------- ------------
Total Non-Performing Assets.............. $98,241 $93,322 $93,603 $94,733
================= =============== ============= ============
Non-performing loans as a
% of total loans....................... 0.40 % 0.39 % 0.38 % 0.39 %
Non-performing assets as a % of
total loans and other real estate...... 0.47 % 0.47 % 0.46 % 0.48 %
Allowance for loan losses as a % of
non-performing loans................... 360.31 % 377.78 % 382.05 % 378.60 %
Allowance for loan losses and
other real estate as a % of
non-performing assets.................. 299.85 % 315.82 % 311.32 % 305.33 %
Accruing loans past due 90
days or more........................... $61,287 $64,788 $54,305 $51,039
================= =============== ============= ============
</TABLE>
