Barclays Global Financial Services Conference Mac McCullough September 17, 2015
Discussion Topics & Participants Discussion Topics Huntingtons Evolution Managing to an Aggregate Moderate-to-Low Risk Appetite Long-Term Financial Goals Important Messages Presenters Mac McCullough, Chief Financial Officer Dan…
Huntingtons Evolution 2009 2011 Geographic to business segment model Changing the Thrift-like to bank balance sheet Business Model Established aggregate moderate-to-low risk appetite 2010 Ongoing Investment in and centralization of…
Huntingtons Evolution 2009 2011 Changing the Business Model 2010 Ongoing Created a welcoming experience with high levels of customer service and advocacy Building the Brand Introduction of Fair Play with distinctive,…
Huntingtons Evolution 2009 2011 Changing the Business Model Distribution refinement and integration: 2010 Ongoing Branches, ATMs, Digital, Call Center, Building the Relationship Managers Brand Commercial Verticals Auto Lending…
Huntingtons Evolution 2009 2011 Changing the Business Model 2010 Ongoing Building the Brand 2011 Ongoing Positive operating leverage Investing in the Low relative volatility through the cycle Franchise Disciplined sales…
Optimizing Physical Distribution Build-out of in-store strategy to be substantially complete by 1Q16 92 Giant Eagle in-store offices open; 1 to open in 4Q15 Net Change in Branches (77 breakeven or better in July) Since 2009-end…
Improved Deposit Mix Low Cost and Granular DDA-noninterest bearing mix improved, but remains significant opportunity Given market position and product offering, deposit cost, in a higher interest rate environment, should be below…
Investing in Commercial Verticals for Growth & Diversification 20 Strategic Exits Commercial SAD Food & Agribusiness Commercial Real Estate 15 Energy Banking Commercial Loans ( billions) Franchise Finance Sponsor…
Investing in the Brand: Distinguished Products, Superior Customer Service, and Convenience Sep 2010 Apr 2011 Mar 2014 Jul 2014 All-Day Deposit 24-Hour Grace Sep 2010 Sep 2013 Jul 2014 Oct 2014 Digital Image- Enabled…
Most Favored Bank Brand in the Midwest Bain & Company: Recipient of 20+ National and Net Promoter ScoreSM, Midwest Regional awards across 50% Consumer and Commercial business lines for customer 40% service, products, and community…
Growth Opportunity Continues as Switching Preference is Much Greater than Current Share Independent study by TNS In the Midwest, which bank would you be most likely to move to HBAN 14 Source: TNS Retail Banking Monitor
Managing the Business to Reduce Volatility via Aggregate Moderate-to-Low Risk Appetite Alignment of credit strategy is driven by strong front end guidance and a well established preview process for commercial and business banking loans…
C&I: Improved Credit Risk Exposure through Diversification and Process Improvement 41.4B 47.9B 19.8 B across multiple segments 100% 12.5 B Commercial (20MM in revenue) 12% 12% 4.0 B Retail & Business Banking…
CRE: Intentional and Systematic Reduction of Exposure With an Intense Focus on Quality 41.4B 47.9B 100% 5.2 B, of which 1.0 B is construction 12% 12% 90% of the loans have personal guarantees 90% Resi Mortgage 75% are within our…
Indirect Auto: 60-Year Core Competency Providing Strong Risk / Reward Opportunity 41.4B 47.9B 100% 8.1 B portfolio 12% 12% Increased concentration limit to 175% of capital (1) 90% Resi Mortgage from 150% during 2Q15 Consistent…
Indirect Auto: Maintaining Super Prime Quality and Delivering Attractive Growth 10 Loans Securitized / AFS Maintaining credit quality Loans on Balance Sheet 8 Avg FICO up 8 pt since 4Q12 Balances (B) 6 Pricing stabilizing 4…
Home Equity: Branch Originated to Relationship Customers 41.4B 47.9B 8.5 B portfolio 100% 6.0 B HELOC 12% 12% 90% Resi Mortgage 2.5 B HE Loans As with other consumer portfolios, the focus is 80% 18% 18% on a high quality borrower. %…
Residential Mortgage: a Relationship Product 41.4B 47.9B 100% 6.0 B portfolio 12% 12% Focus on high quality borrowers with 90% Resi Mortgage established relationships Average LTV 75% 80% 18% 18% Average FICO 751 70% Home Equity Most…
2015 DFAST Results Regional Banks Tier 1 Common Change Projected Cumulative Loan Losses Q3 2014 to Minimum Q4 2014 to Q4 2016 Supervisory Severely Adverse Supervisory Severely Adverse 1.0% Bank 1 4.2% HBAN 1.3% HBAN 4.5% Bank 1…
Long-Term Financial Goals 2009 2011 Changing the Business Model 2010 Ongoing Building the Brand 2011 Ongoing Investing in the Franchise 2013 Ongoing Disciplined Execution 23
Important Messages Fundamentally changed the business model of the company - Tone at the top that everyone owns risk - Migrated loan and deposit mix to improve funding, reduce risk - Meaningful investment in centralization,…
Do we consolidate Basis of Presentation this and next slide Use of non-GAAP financial measures This document may contain GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in…
Basis of Presentation Significant Items From time to time, revenue, expenses, or taxes are impacted by items judged by Management to be outside of ordinary banking activities and/or by items that, while they may be associated with…
Investor / Analyst Contact: Mark A. Muth Director of Investor Relations (614) 480-4720 Mark.MuthHuntington.com
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