Huntington National Bank 2015 Annual Report Download - page 18

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connections with community and business leaders and offering a uniquely personal experience delivered by colleagues
working within those markets.
The Huntington Private Client Group is organized into units consisting of The Huntington Private Bank, The
Huntington Trust, and The Huntington Investment Company. Our private banking, trust, and investment functions focus
their efforts in our Midwest footprint and Florida.
The Huntington Private Bank provides high net-worth customers with deposit, lending (including specialized
lending options), and banking services.
The Huntington Trust also serves high net-worth customers and delivers wealth management and legacy planning
through investment and portfolio management, fiduciary administration, trust services, and trust operations. This group
also provides retirement plan services and corporate trust to businesses and municipalities.
The Huntington Investment Company, a dually registered broker-dealer and registered investment adviser, employs
representatives who work with our Retail and Private Bank to provide investment solutions for our customers. This team
offers a wide range of products and services, including brokerage, annuities, advisory, and other investment products.
Huntington sold HAA, HASI, and Unified in the 2015 fourth quarter.
• Home Lending: Home Lending originates and services consumer loans and mortgages for customers who are generally
located in our primary banking markets. Consumer and mortgage lending products are primarily distributed through the
Retail and Business Banking segment, as well as through commissioned loan originators. Home Lending earns interest on
loans held in the warehouse and portfolio, earns fee income from the origination and servicing of mortgage loans, and
recognizes gains or losses from the sale of mortgage loans. Home Lending supports the origination and servicing of
mortgage loans across all segments.
The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
The financial results for each of these business segments are included in Note 24 of Notes to Consolidated Financial
Statements and are discussed in the Business Segment Discussion of our MD&A.
Pending Acquisition of FirstMerit Corporation
On January 26, 2016, Huntington announced the signing of a definitive merger agreement under which Ohio-based
FirstMerit Corporation, the parent company of FirstMerit Bank, will merge into Huntington in a stock and cash transaction
expected to be valued at approximately $3.4 billion based on the closing stock price on the day preceding the announcement.
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, which reported assets of
approximately $25.5 billion based on their December 31, 2015 unaudited balance sheet, and 366 banking offices and 400 ATM
locations in Ohio, Michigan, Wisconsin, Illinois, and Pennsylvania. First Merit Corporation provides a complete range of banking
and other financial services to consumers and businesses through its core operations. Principal affiliates include: FirstMerit Bank,
N.A. and First Merit Mortgage Corporation.
Under the terms of the agreement, shareholders of FirstMerit Corporation will receive 1.72 shares of Huntington common
stock and $5.00 in cash for each share of FirstMerit Corporation common stock. The transaction is expected to be completed in the
2016 third quarter, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of
the shareholders of Huntington and FirstMerit Corporation.
Competition
We compete with other banks and financial services companies such as savings and loans, credit unions, and finance and
trust companies, as well as mortgage banking companies, automobile and equipment financing companies (including captive
automobile finance companies), insurance companies, mutual funds, investment advisors, and brokerage firms, both within and
outside of our primary market areas. Internet companies are also providing nontraditional, but increasingly strong, competition for
our borrowers, depositors, and other customers.
We compete for loans primarily on the basis of a combination of value and service by building customer relationships as a
result of addressing our customers’ entire suite of banking needs, demonstrating expertise, and providing convenience to our
customers. We also consider the competitive pricing pressures in each of our markets.
We compete for deposits similarly on a basis of a combination of value and service and by providing convenience through a
banking network of branches and ATMs within our markets and our website at www.huntington.com. We have also instituted