Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
December 31, 2019
Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Notes:
The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.
Fully-Taxable Equivalent Basis
Interest income, yields, and ratios on a FTE basis are considered non-GAAP financial measures.  Management believes net interest income on a FTE basis provides a more accurate picture of the interest margin for comparison purposes.  The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources.  The FTE basis assumes a federal statutory tax rate of 21 percent and 35 percent for periods prior to January 1, 2018.
Non-Regulatory Capital Ratios
In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:
•
Tangible common equity to tangible assets, and
•
Tangible common equity to risk-weighted assets using Basel III definition.
These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.
Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure.



Huntington Bancshares Incorporated
Quarterly Key Statistics
(Unaudited)
 
Three Months Ended
 
 
 
 
 
(dollar amounts in millions, except per share data, share count in thousands)
December 31,
 
September 30,
 
December 31,
 
 
Percent Changes vs.
2019
 
2019
 
2018
 
 
3Q19
 
4Q18
Net interest income (2)
$
786


$
805


$
841

 
 
(2
)%
 
(7
)%
FTE adjustment
(6
)
 
(6
)
 
(8
)
 
 
—

 
25

Net interest income
780

 
799

 
833

 
 
(2
)
 
(6
)
Provision for credit losses
79

 
82

 
60

 
 
(4
)
 
32

Noninterest income
372

 
389

 
329

 
 
(4
)
 
13

Noninterest expense
701

 
667

 
711

 
 
5

 
(1
)
Income before income taxes
372

 
439

 
391

 
 
(15
)
 
(5
)
Provision for income taxes
55

 
67

 
57

 
 
(18
)
 
(4
)
Net income
317

 
372

 
334

 
 
(15
)
 
(5
)
Dividends on preferred shares
19

 
18

 
19

 
 
6

 
—

Net income applicable to common shares
$
298

 
$
354

 
$
315

 
 
(16
)%
 
(5
)%
 
 
 
 
 
 
 
 


 


Net income per common share - diluted
$
0.28

 
$
0.34

 
$
0.29

 
 
(18
)%
 
(3
)%
Cash dividends declared per common share
0.15

 
0.15

 
0.14

 
 
—

 
7

Tangible book value per common share at end of period
8.25

 
8.25

 
7.34

 
 
—

 
12

Number of common shares repurchased
13,104

 
5,213

 
14,967

 
 
151

 
(12
)
Average common shares - basic
1,028,621

 
1,034,940

 
1,054,460

 
 
(1
)
 
(2
)
Average common shares - diluted
1,047,123

 
1,051,273

 
1,073,055

 
 
—

 
(2
)
Ending common shares outstanding
1,020,003

 
1,032,755

 
1,046,767

 
 
(1
)
 
(3
)
Return on average assets
1.15
%
 
1.37
%
 
1.25
%
 
 


 


Return on average common shareholders’ equity
11.1

 
13.4

 
12.9

 
 


 


Return on average tangible common shareholders’ equity (1)
14.3

 
17.3

 
17.3

 
 


 


Net interest margin (2)
3.12

 
3.20

 
3.41

 
 


 


Efficiency ratio (3)
58.4

 
54.7

 
58.7

 
 


 


Effective tax rate
14.8

 
15.4

 
14.6

 
 


 


Average total assets
$
108,713

 
$
108,166

 
$
105,877

 
 
1

 
3

Average earning assets
100,062

 
99,692

 
97,752

 
 
—

 
2

Average loans and leases
75,103

 
75,096

 
73,822

 
 
—

 
2

Average loans and leases - linked quarter annualized growth rate
—
%
 
0.9
%
 
5.9
%
 
 


 


Average total deposits
$
82,592

 
$
82,249

 
$
82,931

 
 
—

 
—

Average core deposits (4)
79,690

 
79,335

 
79,078

 
 
—

 
1

Average core deposits - linked quarter annualized growth rate
1.8
%
 
3.1
%
 
7.2
%
 
 


 


Average shareholders’ equity
11,884

 
11,714

 
10,889

 
 
1

 
9

Average common total shareholders' equity
10,681

 
10,510

 
9,686

 
 
2

 
10

Average tangible common shareholders' equity
8,503

 
8,323

 
7,460

 
 
2

 
14

Total assets at end of period
109,002

 
108,735

 
108,781

 
 
—

 
—

Total shareholders’ equity at end of period
11,795

 
11,909

 
11,102

 
 
(1
)
 
6

 
 
 
 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.39
%
 
0.39
%
 
0.27
%
 
 
 
 
 
NAL ratio
0.62

 
0.58

 
0.45

 
 
 
 
 
NPA ratio (5)
0.66

 
0.64

 
0.52

 
 


 


Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
1.04

 
1.05

 
1.03

 
 
 
 
 
Common equity tier 1 risk-based capital ratio (6)
9.88

 
10.02

 
9.65

 
 
 
 
 
Tangible common equity / tangible asset ratio (7)
7.88

 
8.00

 
7.21

 
 
 
 
 
See Notes to the Annual and Quarterly Key Statistics.

1













Huntington Bancshares Incorporated
Annual Key Statistics
(Unaudited)
 
Year Ended December 31,
 
Change
(dollar amounts in millions, except per share data, share count in thousands)
2019
 
2018
 
Amount
 
Percent
Net interest income (2)
$
3,239

 
$
3,219

 
$
20

 
1
 %
FTE adjustment
(26
)
 
(30
)
 
4

 
13

Net interest income
3,213

 
3,189

 
24

 
1

Provision for credit losses
287

 
235

 
52

 
22

Noninterest income
1,454

 
1,321

 
133

 
10

Noninterest expense
2,721

 
2,647

 
74

 
3

Income before income taxes
1,659

 
1,628

 
31

 
2

Provision for income taxes
248

 
235

 
13

 
6

Net Income
1,411

 
1,393

 
18

 
1

Dividends on preferred shares
74

 
70

 
4

 
6

Net income applicable to common shares
$
1,337

 
$
1,323

 
$
14

 
1
 %
 
 
 
 
 
 
 


Net income per common share - diluted
$
1.27

 
$
1.20

 
$
0.07

 
6
 %
Cash dividends declared per common share
0.58

 
0.50

 
0.08

 
16

 
 
 
 
 
 
 


Average common shares - basic
1,038,840

 
1,081,542

 
(42,702
)
 
(4
)
Average common shares - diluted
1,056,079

 
1,105,985

 
(49,906
)
 
(5
)
 
 
 
 
 
 
 


Return on average assets
1.31
%
 
1.33
%
 
 
 


Return on average common shareholders’ equity
12.9

 
13.4

 
 
 


Return on average tangible common shareholders’ equity (1)
16.9

 
17.9

 
 
 


Net interest margin (2)
3.26

 
3.33

 
 
 


Efficiency ratio (3)
56.6

 
56.9

 
 
 


Effective tax rate
15.0

 
14.5

 
 
 


 
 
 
 
 
 
 


Average total assets
$
107,971

 
$
104,982

 
$
2,989

 
3

Average earning assets
99,541

 
96,577

 
2,964

 
3

Average loans and leases
74,978

 
72,246

 
2,732

 
4

Average total deposits
82,332

 
80,186

 
2,146

 
3

Average core deposits (4)
79,197

 
76,403

 
2,794

 
4

Average shareholders’ equity
11,560

 
11,059

 
501

 
5

Average common total shareholders' equity
10,357

 
9,891

 
466

 
5

Average tangible common shareholders' equity
8,164

 
7,647

 
517

 
7

 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.35
%
 
0.20
%
 


 


NAL ratio
0.62

 
0.45

 


 


NPA ratio (5)
0.66

 
0.52

 


 


See Notes to the Year to Date and Quarterly Key Statistics.


2













Key Statistics Footnotes
(1)
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 21% tax rate.
(2)
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
(3)
Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
(4)
Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.
(5)
NPAs include other real estate owned.
(6)
December 31, 2019, figures are estimated.
(7)
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.



3













Huntington Bancshares Incorporated
Consolidated Balance Sheets
 
December 31,
 
December 31,
 

(dollar amounts in millions)
2019
 
2018
 
Percent Changes
 
(Unaudited)
 

 
 
Assets
 
 
 
 
 
Cash and due from banks
$
1,045

 
$
1,108

 
(6
)%
Interest-bearing deposits in Federal Reserve Bank
125

 
1,564

 
(92
)
Interest-bearing deposits in banks
102

 
53

 
92

Trading account securities
99

 
105

 
(6
)
Available-for-sale securities
14,149

 
13,780

 
3

Held-to-maturity securities
9,070

 
8,565

 
6

Other securities
441

 
565

 
(22
)
Loans held for sale
877

 
804

 
9

Loans and leases (1)
75,404

 
74,900

 
1

Allowance for loan and lease losses
(783
)
 
(772
)
 
(1
)
Net loans and leases
74,621

 
74,128

 
1

Bank owned life insurance
2,542

 
2,507

 
1

Premises and equipment
763

 
790

 
(3
)
Goodwill
1,990

 
1,989

 
—

Service rights and other intangible assets
475

 
535

 
(11
)
Other assets
2,703

 
2,288

 
18

Total assets
$
109,002

 
$
108,781

 
—
 %
 
 
 
 
 


Liabilities and shareholders’ equity
 
 
 
 


Liabilities
 
 
 
 


Deposits (2)
$
82,347

 
$
84,774

 
(3
)%
Short-term borrowings
2,606

 
2,017

 
29

Long-term debt
9,849

 
8,625

 
14

Other liabilities
2,405

 
2,263

 
6

Total liabilities
97,207

 
97,679

 
—

 
 
 
 
 


Shareholders' equity
 
 
 
 


Preferred stock
1,203

 
1,203

 
—

Common stock
10

 
11

 
(9
)
Capital surplus
8,806

 
9,181

 
(4
)
Less treasury shares, at cost
(56
)
 
(45
)
 
(24
)
Accumulated other comprehensive loss
(256
)
 
(609
)
 
58

Retained earnings (deficit)
2,088

 
1,361

 
53

Total shareholders’ equity
11,795

 
11,102

 
6

Total liabilities and shareholders’ equity
$
109,002

 
$
108,781

 
—
 %
 
 
 
 
 
 
Common shares authorized (par value of $0.01)
1,500,000,000

 
1,500,000,000

 
 
Common shares outstanding
1,020,003,482

 
1,046,767,252

 
 
Treasury shares outstanding
4,537,605

 
3,817,385

 
 
Preferred stock, authorized shares
6,617,808

 
6,617,808

 
 
Preferred shares outstanding
740,500

 
740,500

 
 
(1)
See page 5 for detail of loans and leases.
(2)
See page 6 for detail of deposits.

4













Huntington Bancshares Incorporated
Loans and Leases Composition
(Unaudited)
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
30,664

 
41
%
 
$
30,394

 
41
%
 
$
30,608

 
41
%
 
$
30,972

 
41
%
 
$
30,605

 
41
%
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
1,123

 
1

 
1,157

 
2

 
1,146

 
1

 
1,152

 
2

 
1,185

 
2

Commercial
5,551

 
7

 
5,698

 
8

 
5,742

 
8

 
5,643

 
8

 
5,657

 
8

Commercial real estate
6,674

 
8

 
6,855

 
10

 
6,888

 
9

 
6,795

 
10

 
6,842

 
10

Total commercial
37,338

 
49

 
37,249

 
51

 
37,496

 
50

 
37,767

 
51

 
37,447

 
51

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automobile
12,797

 
17

 
12,292

 
15

 
12,173

 
16

 
12,272

 
16

 
12,429

 
16

Home equity
9,093

 
12

 
9,300

 
12

 
9,419

 
12

 
9,551

 
13

 
9,722

 
13

Residential mortgage
11,376

 
15

 
11,247

 
15

 
11,182

 
15

 
10,885

 
14

 
10,728

 
14

RV and marine
3,563

 
5

 
3,553

 
5

 
3,492

 
5

 
3,344

 
4

 
3,254

 
4

Other consumer
1,237

 
2

 
1,251

 
2

 
1,271

 
2

 
1,260

 
2

 
1,320

 
2

Total consumer
38,066

 
51

 
37,643

 
49

 
37,537

 
50

 
37,312

 
49

 
37,453

 
49

Total loans and leases
$
75,404

 
100
%
 
$
74,892

 
100
%
 
$
75,033

 
100
%
 
$
75,079

 
100
%
 
$
74,900

 
100
%

 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Ending Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
21,716

 
29
%
 
$
21,963

 
30
%
 
$
22,128

 
30
%
 
$
22,175

 
29
%
 
$
22,333

 
30
%
Commercial Banking
27,050

 
36

 
27,090

 
36

 
27,311

 
36

 
27,554

 
37

 
27,191

 
36

Vehicle Finance
20,190

 
27

 
19,484

 
26

 
19,417

 
26

 
19,332

 
26

 
19,434

 
26

RBHPCG
6,366

 
8

 
6,294

 
8

 
6,179

 
8

 
5,954

 
8

 
5,886

 
8

Treasury / Other
82

 
—

 
61

 
—

 
(2
)
 
—

 
64

 
—

 
56

 
—

Total loans and leases
$
75,404

 
100
%
 
$
74,892

 
100
%
 
$
75,033

 
100
%
 
$
75,079

 
100
%
 
$
74,900

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
21,845

 
30
%
 
$
22,092

 
30
%
 
$
22,139

 
30
%
 
$
22,241

 
30
%
 
$
22,321

 
30
%
Commercial Banking
26,993

 
36

 
27,295

 
36

 
27,350

 
36

 
27,174

 
36

 
26,405

 
36

Vehicle Finance
19,852

 
26

 
19,370

 
26

 
19,298

 
26

 
19,340

 
26

 
19,177

 
26

RBHPCG
6,314

 
8

 
6,237

 
8

 
6,054

 
8

 
5,920

 
8

 
5,793

 
8

Treasury / Other
99

 
—

 
102

 
—

 
91

 
—

 
100

 
—

 
126

 
—

Total loans and leases
$
75,103

 
100
%
 
$
75,096

 
100
%
 
$
74,932

 
100
%
 
$
74,775

 
100
%
 
$
73,822

 
100
%


5













Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits - noninterest-bearing
$
20,247

 
25
%
 
$
20,553

 
25
%
 
$
19,383

 
24
%
 
$
20,036

 
24
%
 
$
21,783

 
26
%
Demand deposits - interest-bearing
20,583

 
25

 
19,976

 
24

 
19,085

 
24

 
19,906

 
24

 
20,042

 
24

Money market deposits
24,726

 
30

 
23,977

 
29

 
23,952

 
30

 
22,931

 
28

 
22,721

 
27

Savings and other domestic deposits
9,549

 
12

 
9,566

 
12

 
9,803

 
12

 
10,277

 
13

 
10,451

 
12

Core certificates of deposit (1)
4,356

 
5

 
5,443

 
7

 
5,703

 
7

 
6,007

 
7

 
5,924

 
7

Total core deposits
79,461

 
97

 
79,515

 
97

 
77,926

 
97

 
79,157

 
96

 
80,921

 
96

Other domestic deposits of $250,000 or more
313

 
—

 
326

 
—

 
316

 
—

 
313

 
1

 
337

 
—

Brokered deposits and negotiable CDs
2,573

 
3

 
2,554

 
3

 
2,640

 
3

 
2,685

 
3

 
3,516

 
4

Total deposits
$
82,347

 
100
%
 
$
82,395

 
100
%
 
$
80,882

 
100
%
 
$
82,155

 
100
%
 
$
84,774

 
100
%
Total core deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
34,957

 
44
%
 
$
35,247

 
44
%
 
$
33,371

 
43
%
 
$
33,546

 
42
%
 
$
37,268

 
46
%
Consumer
44,504

 
56

 
44,268

 
56

 
44,555

 
57

 
45,611

 
58

 
43,653

 
54

Total core deposits
$
79,461

 
100
%
 
$
79,515

 
100
%
 
$
77,926

 
100
%
 
$
79,157

 
100
%
 
$
80,921

 
100
%
Ending Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
51,675

 
63
%
 
$
51,671

 
63
%
 
$
51,577

 
64
%
 
$
52,354

 
64
%
 
$
50,300

 
59
%
Commercial Banking
20,762

 
25

 
21,088

 
26

 
20,049

 
25

 
20,543

 
25

 
23,185

 
28

Vehicle Finance
376

 
—

 
363

 
—

 
339

 
—

 
327

 
—

 
346

 
—

RBHPCG
6,370

 
8

 
6,101

 
7

 
5,863

 
7

 
5,959

 
7

 
6,809

 
8

Treasury / Other (2)
3,164

 
4

 
3,172

 
4

 
3,054

 
4

 
2,972

 
4

 
4,134

 
5

Total deposits
$
82,347

 
100
%
 
$
82,395

 
100
%
 
$
80,882

 
100
%
 
$
82,155

 
100
%
 
$
84,774

 
100
%
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Average Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
52,059

 
63
%
 
$
51,604

 
63
%
 
$
51,935

 
64
%
 
$
50,961

 
62
%
 
$
50,037

 
61
%
Commercial Banking
20,974

 
25

 
21,227

 
26

 
20,361

 
25

 
21,739

 
26

 
22,673

 
27

Vehicle Finance
347

 
—

 
359

 
—

 
322

 
—

 
305

 
—

 
335

 
—

RBHPCG
6,113

 
7

 
5,958

 
7

 
5,918

 
7

 
5,942

 
7

 
5,936

 
7

Treasury / Other (2)
3,099

 
5

 
3,101

 
4

 
3,182

 
4

 
3,825

 
5

 
3,950

 
5

Total deposits
$
82,592

 
100
%
 
$
82,249

 
100
%
 
$
81,718

 
100
%
 
$
82,772

 
100
%
 
$
82,931

 
100
%
(1)
Includes consumer certificates of deposit of $250,000 or more.
(2)
Comprised primarily of national market deposits.

6













Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)
 
Quarterly Average Balances (1)
 
 
 
 
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
Percent Changes vs.
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
 
 
3Q19
 
4Q18
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
672

 
$
514

 
$
518

 
$
501

 
$
483

 
 
31
 %
 
39
 %
Interest-bearing deposits in banks
176

 
149

 
135

 
109

 
97

 
 
18

 
81

Securities:
 
 
 
 
 
 
 
 
 
 
 


 


Trading account securities
109

 
137

 
161

 
138

 
131

 
 
(20
)
 
(17
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 


 


Taxable
11,221

 
11,096

 
10,501

 
10,752

 
10,351

 
 
1

 
8

Tax-exempt
2,791

 
2,820

 
2,970

 
3,048

 
3,176

 
 
(1
)
 
(12
)
Total available-for-sale securities
14,012


13,916


13,471


13,800


13,527

 
 
1

 
4

Held-to-maturity securities - taxable
8,592

 
8,566

 
8,771

 
8,653

 
8,433

 
 
—

 
2

Other securities
448

 
437

 
466

 
536

 
565

 
 
3

 
(21
)
Total securities
23,161


23,056


22,869


23,127


22,656

 
 
—

 
2

Loans held for sale
950

 
877

 
734

 
700

 
694

 
 
8

 
37

Loans and leases: (2)
 
 
 
 
 
 
 
 
 
 
 


 


Commercial:
 
 
 
 
 
 
 
 
 
 
 


 


Commercial and industrial
30,373

 
30,632

 
30,644

 
30,546

 
29,557

 
 
(1
)
 
3

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 


 


Construction
1,181

 
1,165

 
1,168

 
1,174

 
1,138

 
 
1

 
4

Commercial
5,625

 
5,762

 
5,732

 
5,686

 
5,806

 
 
(2
)
 
(3
)
Commercial real estate
6,806

 
6,927

 
6,900

 
6,860

 
6,944

 
 
(2
)
 
(2
)
Total commercial
37,179


37,559


37,544


37,406


36,501

 
 
(1
)
 
2

Consumer:
 
 
 
 
 
 
 
 
 
 
 


 


Automobile
12,607

 
12,181

 
12,219

 
12,361

 
12,423

 
 
3

 
1

Home equity
9,192

 
9,353

 
9,482

 
9,641

 
9,817

 
 
(2
)
 
(6
)
Residential mortgage
11,330

 
11,214

 
11,010

 
10,787

 
10,574

 
 
1

 
7

RV and marine
3,564

 
3,528

 
3,413

 
3,296

 
3,216

 
 
1

 
11

Other consumer
1,231

 
1,261

 
1,264

 
1,284

 
1,291

 
 
(2
)
 
(5
)
Total consumer
37,924


37,537


37,388


37,369


37,321

 
 
1

 
2

Total loans and leases
75,103

 
75,096

 
74,932

 
74,775

 
73,822

 
 
—

 
2

Allowance for loan and lease losses
(787
)
 
(799
)
 
(778
)
 
(780
)
 
(777
)
 
 
2

 
(1
)
Net loans and leases
74,316


74,297


74,154


73,995


73,045

 
 
—

 
2

Total earning assets
100,062


99,692


99,188


99,212


97,752

 
 
—

 
2

Cash and due from banks
864

 
817

 
835

 
853

 
909

 
 
6

 
(5
)
Intangible assets
2,228

 
2,240

 
2,252

 
2,265

 
2,288

 
 
(1
)
 
(3
)
All other assets
6,346

 
6,216

 
5,982

 
5,961

 
5,705

 
 
2

 
11

Total assets
$
108,713


$
108,166


$
107,479


$
107,511


$
105,877

 
 
1
 %
 
3
 %
Liabilities and shareholders’ equity

 
 
 
 
 
 
 
 
 
 


 


Interest-bearing deposits:

 
 
 
 
 
 
 
 
 
 


 


Demand deposits - interest-bearing
$
20,140

 
$
19,796

 
$
19,693

 
$
19,770

 
$
19,860

 
 
2
 %
 
1
 %
Money market deposits
24,560

 
24,266

 
23,305

 
22,935

 
22,595

 
 
1

 
9

Savings and other domestic deposits
9,552

 
9,681

 
10,105

 
10,338

 
10,534

 
 
(1
)
 
(9
)
Core certificates of deposit (3)
4,795

 
5,666

 
5,860

 
6,052

 
5,705

 
 
(15
)
 
(16
)
Other domestic deposits of $250,000 or more
313

 
315

 
310

 
335

 
346

 
 
(1
)
 
(10
)
Brokered deposits and negotiable CDs
2,589

 
2,599

 
2,685

 
3,404

 
3,507

 
 
—

 
(26
)
Total interest-bearing deposits
61,949


62,323


61,958


62,834


62,547

 
 
(1
)
 
(1
)
Short-term borrowings
1,965

 
2,331

 
3,166

 
2,320

 
1,006

 
 
(16
)
 
95

Long-term debt
9,886

 
9,536

 
8,914

 
8,979

 
8,871

 
 
4

 
11

Total interest-bearing liabilities
73,800


74,190


74,038


74,133


72,424

 
 
(1
)
 
2

Demand deposits - noninterest-bearing
20,643

 
19,926

 
19,760

 
19,938

 
20,384

 
 
4

 
1

All other liabilities
2,386

 
2,336

 
2,206

 
2,284

 
2,180

 
 
2

 
9

Shareholders’ equity
11,884

 
11,714

 
11,475

 
11,156

 
10,889

 
 
1

 
9

Total liabilities and shareholders’ equity
$
108,713


$
108,166


$
107,479


$
107,511


$
105,877

 
 
1
 %
 
3
 %
(1)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)
Includes nonaccrual loans.
(3)
Includes consumer certificates of deposit of $250,000 or more.


7













Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
 
Quarterly Interest Income / Expense
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Assets
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
3

 
$
3

 
$
3

 
$
3

 
$
3

Interest-bearing deposits in banks
1

 
1

 
—

 
1

 
1

Securities:
 
 
 
 
 
 
 
 
 
Trading account securities
1

 
—

 
1

 
1

 
1

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Taxable
73

 
74

 
72

 
76

 
70

Tax-exempt
24

 
26

 
27

 
28

 
33

Total available-for-sale securities
97

 
100

 
99

 
104

 
103

Held-to-maturity securities - taxable
54

 
54

 
56

 
54

 
52

Other securities
3

 
3

 
4

 
6

 
5

Total securities
155


157


160


165


161

Loans held for sale
8

 
9

 
7

 
7

 
7

Loans and leases:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
335

 
358

 
373

 
375

 
363

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
15

 
16

 
17

 
16

 
16

Commercial
63

 
68

 
71

 
71

 
74

Commercial real estate
78

 
84

 
88

 
87

 
90

Total commercial
413


442


461


462


453

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
131

 
126

 
123

 
120

 
122

Home equity
117

 
127

 
131

 
133

 
135

Residential mortgage
105

 
107

 
106

 
104

 
101

RV and marine
45

 
44

 
42

 
40

 
41

Other consumer
39

 
42

 
42

 
42

 
40

Total consumer
437

 
446

 
444

 
439

 
439

Total loans and leases
850


888


905


901


892

Total earning assets
$
1,017


$
1,058


$
1,075


$
1,077


$
1,064

 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
Demand deposits - interest-bearing
$
32

 
$
29

 
$
28

 
$
27

 
$
25

Money market deposits
61

 
73

 
67

 
59

 
52

Savings and other domestic deposits
5

 
5

 
6

 
6

 
5

Core certificates of deposit (3)
25

 
31

 
32

 
31

 
29

Other domestic deposits of $250,000 or more
3

 
1

 
1

 
2

 
1

Brokered deposits and negotiable CDs
10

 
15

 
16

 
20

 
20

Total interest-bearing deposits
136


154


150


145


132

Short-term borrowings
8

 
13

 
19

 
14

 
6

Long-term debt
87

 
86

 
87

 
89

 
85

Total interest bearing liabilities
231


253


256


248


223

Net interest income
$
786


$
805


$
819


$
829


$
841

(1)
Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.
(2)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Includes consumer certificates of deposit of $250,000 or more.



8













Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Yield
(Unaudited)
 
 Quarterly Average Rates
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
Fully-taxable equivalent basis (1)
2019
 
2019
 
2019
 
2019
 
2018
Assets
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
1.66
%
 
2.19
%
 
2.38
%
 
2.40
%
 
2.33
%
Interest-bearing deposits in banks
1.81

 
2.38

 
2.08

 
1.75

 
1.97

Securities:
 
 
 
 
 
 
 
 
 
Trading account securities
2.45

 
2.36

 
1.92

 
2.03

 
1.94

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Taxable
2.63

 
2.67

 
2.73

 
2.82

 
2.71

Tax-exempt
3.43

 
3.63

 
3.66

 
3.69

 
4.12

Total available-for-sale securities
2.79

 
2.87

 
2.94

 
3.01

 
3.04

Held-to-maturity securities - taxable
2.50

 
2.51

 
2.54

 
2.52

 
2.45

Other securities
2.57

 
3.15

 
3.44

 
4.51

 
4.24

Total securities
2.68

 
2.74

 
2.79

 
2.86

 
2.84

Loans held for sale
3.40

 
3.69

 
4.00

 
4.07

 
4.04

Loans and leases: (3)
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
4.31

 
4.57

 
4.82

 
4.91

 
4.81

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
5.07

 
5.50

 
5.59

 
5.58

 
5.47

Commercial
4.36

 
4.67

 
4.88

 
5.00

 
4.99

Commercial real estate
4.48

 
4.81

 
5.00

 
5.10

 
5.07

Total commercial
4.34

 
4.61

 
4.85

 
4.94

 
4.86

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
4.15

 
4.09

 
4.02

 
3.95

 
3.88

Home equity
5.03

 
5.38

 
5.56

 
5.61

 
5.45

Residential mortgage
3.73

 
3.80

 
3.84

 
3.86

 
3.82

RV and marine
4.96

 
4.96

 
4.94

 
4.96

 
5.10

Other consumer
12.71

 
13.34

 
13.29

 
13.07

 
12.35

Total consumer
4.59

 
4.72

 
4.76

 
4.75

 
4.67

Total loans and leases
4.47

 
4.67

 
4.80

 
4.85

 
4.76

Total earning assets
4.03

 
4.21

 
4.35

 
4.40

 
4.32

Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
Demand deposits - interest-bearing
0.63

 
0.57

 
0.58

 
0.56

 
0.48

Money market deposits
0.99

 
1.20

 
1.15

 
1.04

 
0.91

Savings and other domestic deposits
0.20

 
0.22

 
0.23

 
0.23

 
0.23

Core certificates of deposit (4)
2.09

 
2.17

 
2.15

 
2.11

 
2.00

Other domestic deposits of $250,000 or more
1.70

 
1.85

 
1.92

 
1.82

 
1.67

Brokered deposits and negotiable CDs
1.67

 
2.21

 
2.39

 
2.38

 
2.22

Total interest-bearing deposits
0.87

 
0.98

 
0.97

 
0.94

 
0.84

Short-term borrowings
1.66

 
2.28

 
2.41

 
2.41

 
2.49

Long-term debt
3.50

 
3.59

 
3.91

 
3.98

 
3.82

Total interest-bearing liabilities
1.24

 
1.36

 
1.39

 
1.35

 
1.23

Demand deposits - noninterest-bearing
—

 
—

 
—

 
—

 
—

Net interest rate spread
2.79

 
2.85

 
2.96

 
3.05

 
3.09

Impact of noninterest-bearing funds on margin
0.33

 
0.35

 
0.35

 
0.34

 
0.32

Net interest margin
3.12
%
 
3.20
%
 
3.31
%
 
3.39
%
 
3.41
%
Commercial Loan Derivative Impact
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Average Rates
 
2019
 
2019
 
2019
 
2019
 
2018
Fully-taxable equivalent basis (1)
Fourth
 
Third
 
Second
 
First
 
Fourth
Commercial loans (2)(3)
4.36
 %
 
4.70
 %
 
4.88
 %
 
4.95
 %
 
4.86
%
Impact of commercial loan derivatives
(0.02
)
 
(0.09
)
 
(0.03
)
 
(0.01
)
 
—

Total commercial - as reported
4.34
 %
 
4.61
 %
 
4.85
 %
 
4.94
 %
 
4.86
%
 
 
 
 
 
 
 
 
 
 
Average 1 Month LIBOR
1.79
 %
 
2.18
 %
 
2.44
 %
 
2.50
 %
 
2.35
%
(1)
Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.
(2)
Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Includes nonaccrual loans.
(4)
Includes consumer certificates of deposit of $250,000 or more.

9













Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
(Unaudited)
 
Three Months Ended
(dollar amounts in millions, except per share data, share count in thousands)
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
2019
 
2019
 
2019
 
2019
 
2018
Interest income
$
1,011

 
$
1,052

 
$
1,068

 
$
1,070

 
$
1,056

Interest expense
231

 
253

 
256

 
248

 
223

Net interest income
780

 
799

 
812

 
822

 
833

Provision for credit losses
79

 
82

 
59

 
67

 
60

Net interest income after provision for credit losses
701

 
717

 
753

 
755

 
773

Service charges on deposit accounts
95

 
98

 
92

 
87

 
94

Card and payment processing income
64

 
64

 
63

 
56

 
58

Trust and investment management services
47

 
44

 
43

 
44

 
42

Mortgage banking income
58

 
54

 
34

 
21

 
23

Capital markets fees
31

 
36

 
34

 
22

 
34

Insurance income
24

 
20

 
23

 
21

 
21

Bank owned life insurance income
17

 
18

 
15

 
16

 
16

Gain on sale of loans and leases
16

 
13

 
13

 
13

 
16

Net (losses) gains on sales of securities
(22
)
 
—

 
(2
)
 
—

 
(19
)
Other noninterest income
42

 
42

 
59

 
39

 
44

Total noninterest income
372

 
389

 
374

 
319

 
329

Personnel costs
426

 
406

 
428

 
394

 
399

Outside data processing and other services
89

 
87

 
89

 
81

 
83

Equipment
42

 
41

 
40

 
40

 
48

Net occupancy
41

 
38

 
38

 
42

 
70

Professional services
14

 
16

 
12

 
12

 
17

Amortization of intangibles
12

 
12

 
12

 
13

 
13

Marketing
9

 
10

 
11

 
7

 
15

Deposit and other insurance expense
10

 
8

 
8

 
8

 
9

Other noninterest expense
58

 
49

 
62

 
56

 
57

Total noninterest expense
701

 
667

 
700

 
653

 
711

Income before income taxes
372

 
439

 
427

 
421

 
391

Provision for income taxes
55

 
67

 
63

 
63

 
57

Net income
317

 
372

 
364

 
358

 
334

Dividends on preferred shares
19

 
18

 
18

 
19

 
19

Net income applicable to common shares
$
298

 
$
354

 
$
346

 
$
339

 
$
315

 
 
 
 
 
 
 
 
 
 
Average common shares - basic
1,028,621

 
1,034,940

 
1,044,802

 
1,046,995

 
1,054,460

Average common shares - diluted
1,047,123

 
1,051,273

 
1,060,280

 
1,065,638

 
1,073,055

 
 
 
 
 
 
 
 
 
 
Per common share
 
 
 
 
 
 
 
 
 
Net income - basic
$
0.29

 
$
0.34

 
$
0.33

 
$
0.32

 
$
0.30

Net income - diluted
0.28

 
0.34

 
0.33

 
0.32

 
0.29

Cash dividends declared
0.15

 
0.15

 
0.14

 
0.14

 
0.14

 
 
 
 
 
 
 
 
 
 
Revenue - fully-taxable equivalent (FTE)
 
 
 
 
 
 
 
 
 
Net interest income
$
780

 
$
799

 
$
812

 
$
822

 
$
833

FTE adjustment
6

 
6

 
7

 
7

 
8

Net interest income (1)
786

 
805

 
819

 
829

 
841

Noninterest income
372

 
389

 
374

 
319

 
329

Total revenue (1)
$
1,158

 
$
1,194

 
$
1,193

 
$
1,148

 
$
1,170

(1)
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.


10













Huntington Bancshares Incorporated
Quarterly Mortgage Banking Noninterest Income
(Unaudited)
 
Three Months Ended
 
 
 
 
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
Percent Changes vs.
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
 
 
3Q19
 
4Q18
Net origination and secondary marketing income
$
43

 
$
42

 
$
30

 
$
17

 
$
16

 
 
2
 %
 
169
 %
Net mortgage servicing income
 
 
 
 
 
 
 
 
 
 
 

 

          Loan servicing income
15

 
15

 
15

 
14

 
14

 
 
—

 
7

          Amortization of capitalized servicing
(13
)
 
(13
)
 
(10
)
 
(9
)
 
(8
)
 
 
—

 
(63
)
    Operating income
2

 
2

 
5

 
5

 
6

 
 
—

 
(67
)
          MSR valuation adjustment (1)
25

 
(11
)
 
(19
)
 
(10
)
 
—

 
 
327

 
100

          Gains (losses) due to MSR hedging
(14
)
 
19

 
17

 
7

 
(1
)
 
 
(174
)
 
(1,300
)
     Net MSR risk management
11


8


(2
)

(3
)

(1
)
 
 
38

 
1,200

Total net mortgage servicing income
$
13

 
$
10

 
$
3

 
$
2

 
$
5

 
 
30
 %
 
160
 %
All other
2

 
2

 
1

 
2

 
2

 
 
—

 
—

Mortgage banking income
$
58

 
$
54

 
$
34

 
$
21

 
$
23

 
 
7
 %
 
152
 %

 
 
 
 
 
 
 
 
 
 
 


 


Mortgage origination volume
$
2,490

 
$
2,097

 
$
1,922

 
$
1,235

 
$
1,538

 
 
19
 %
 
62
 %
Mortgage origination volume for sale
1,518

 
1,483

 
1,181

 
756

 
948

 
 
2

 
60


 
 
 
 
 
 
 
 
 
 
 


 


Third party mortgage loans serviced (2)
22,425

 
21,674

 
21,486

 
21,346

 
21,068

 
 
3

 
6

Mortgage servicing rights (2)
212

 
180

 
192

 
212

 
221

 
 
18

 
(4
)
MSR % of investor servicing portfolio (2)
0.95
%
 
0.83
%
 
0.90
%
 
0.99
%
 
1.05
%
 
 
14
 %
 
(10
)%
(1)
The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)
At period end.

11













Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis
(Unaudited)
 
Three Months Ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Allowance for loan and lease losses, beginning of period
$
783

 
$
774

 
$
764

 
$
772

 
$
761

Loan and lease losses
(93
)
 
(102
)
 
(70
)
 
(97
)
 
(84
)
Recoveries of loans previously charged off
20

 
29

 
22

 
26

 
34

Net loan and lease losses
(73
)
 
(73
)
 
(48
)
 
(71
)
 
(50
)
Provision for loan and lease losses
74

 
82

 
58

 
63

 
61

Allowance of assets sold or transferred to loans held for sale
(1
)
 
—

 
—

 
—

 
—

Allowance for loan and lease losses, end of period
783

 
783

 
774

 
764

 
772

Allowance for unfunded loan commitments and letters of credit, beginning of period
101

 
101

 
100

 
96

 
97

Provision for (reduction in) unfunded loan commitments and letters of credit losses
5

 
—

 
1

 
4

 
(1
)
Unfunded commitment losses
(2
)
 
—

 
—

 
—

 
—

Allowance for unfunded loan commitments and letters of credit, end of period
104


101


101


100


96

Total allowance for credit losses, end of period
$
887

 
$
884

 
$
875

 
$
864

 
$
868

Allowance for loan and lease losses (ALLL) as % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
1.04
%
 
1.05
%
 
1.03
%
 
1.02
%
 
1.03
%
Nonaccrual loans and leases (NALs)
167

 
179

 
182

 
183

 
228

Nonperforming assets (NPAs)
157

 
163

 
168

 
166

 
200



12













Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)
 
Three Months Ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Net charge-offs by loan and lease type:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
36

 
$
40

 
$
21

 
$
31

 
$
13

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
—

 
(1
)
 
(1
)
 
—

 
—

Commercial
—

 
(1
)
 
(2
)
 
2

 
—

Commercial real estate
—


(2
)

(3
)

2


—

Total commercial
36


38


18


33


13

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
9

 
8

 
5

 
10

 
9

Home equity
1

 
2

 
2

 
3

 
2

Residential mortgage
1

 
1

 
1

 
3

 
2

RV and marine
4

 
2

 
2

 
3

 
2

Other consumer
22

 
22

 
20

 
19

 
22

Total consumer
37

 
35

 
30

 
38

 
37

Total net charge-offs
$
73

 
$
73

 
$
48

 
$
71

 
$
50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
2019
 
2019
 
2019
 
2019
 
2018
Net charge-offs - annualized percentages:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
0.47
 %
 
0.52
 %
 
0.27
 %
 
0.41
 %
 
0.17
 %
Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
(0.03
)
 
(0.40
)
 
(0.08
)
 
(0.11
)
 
(0.09
)
Commercial
0.01

 
(0.09
)
 
(0.12
)
 
0.12

 
—

Commercial real estate
—

 
(0.14
)
 
(0.12
)
 
0.08

 
(0.01
)
Total commercial
0.38

 
0.40

 
0.20

 
0.35

 
0.14

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
0.30

 
0.26

 
0.17

 
0.32

 
0.30

Home equity
0.02

 
0.11

 
0.07

 
0.12

 
0.05

Residential mortgage
0.04

 
0.03

 
0.05

 
0.10

 
0.10

RV and marine
0.39

 
0.23

 
0.25

 
0.39

 
0.31

Other consumer
7.26

 
7.07

 
6.02

 
6.29

 
6.66

Total consumer
0.39

 
0.38

 
0.31

 
0.41

 
0.40

Net charge-offs as a % of average loans
0.39
 %
 
0.39
 %
 
0.25
 %
 
0.38
 %
 
0.27
 %




13













Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Nonaccrual loans and leases (NALs):
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
323

 
$
291

 
$
281

 
$
271

 
$
188

Commercial real estate
10

 
12

 
17

 
9

 
15

Automobile
4

 
5

 
4

 
4

 
5

Home equity
59

 
60

 
60

 
64

 
62

Residential mortgage
71

 
69

 
62

 
68

 
69

RV and marine
1

 
1

 
1

 
1

 
1

Other consumer
—

 
—

 
—

 
—

 
—

Total nonaccrual loans and leases
468

 
438

 
425

 
417

 
340

Other real estate, net:
 
 
 
 
 
 
 
 
 
Residential
9

 
10

 
10

 
14

 
19

Commercial
2

 
2

 
4

 
4

 
4

Total other real estate, net
11

 
12

 
14

 
18

 
23

Other NPAs (1)
19

 
32

 
21

 
26

 
24

Total nonperforming assets
$
498


$
482


$
460


$
461


$
387

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans and leases as a % of total loans and leases
0.62
%
 
0.58
%
 
0.57
%
 
0.56
%
 
0.45
%
NPA ratio (2)
0.66

 
0.64

 
0.61

 
0.61

 
0.52

(NPA+90days)/(Loan+OREO) (3)
0.89

 
0.86

 
0.82

 
0.81

 
0.74


 
Three Months Ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Nonperforming assets, beginning of period
$
482

 
$
460

 
$
461

 
$
387

 
$
403

New nonperforming assets
175

 
165

 
117

 
218

 
109

Returns to accruing status
(20
)
 
(24
)
 
(16
)
 
(33
)
 
(21
)
Loan and lease losses
(48
)
 
(66
)
 
(34
)
 
(46
)
 
(32
)
Payments
(63
)
 
(38
)
 
(54
)
 
(33
)
 
(66
)
Sales
(28
)
 
(15
)
 
(14
)
 
(32
)
 
(6
)
Nonperforming assets, end of period
$
498

 
$
482

 
$
460

 
$
461

 
$
387

(1)
Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)
Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(3)
The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.



14













Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans
(Unaudited)
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Accruing loans and leases past due 90+ days:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
11

 
$
9

 
$
5

 
$
3

 
$
7

Commercial real estate
—

 
—

 
—

 
—

 
—

Automobile
8

 
8

 
7

 
6

 
8

Home equity
14

 
13

 
15

 
15

 
17

Residential mortgage (excluding loans guaranteed by the U.S. Government)
20

 
23

 
27

 
25

 
32

RV and marine
2

 
1

 
1

 
2

 
1

Other consumer
7

 
7

 
5

 
5

 
6

Total, excl. loans guaranteed by the U.S. Government
62


61


60


56


71

Add: loans guaranteed by U.S. Government
109

 
102

 
92

 
91

 
99

Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government
$
171


$
163


$
152


$
147


$
170

 
 
 
 
 
 
 
 
 
 
Ratios:
 
 
 
 
 
 
 
 
 
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.08
%
 
0.08
%
 
0.08
%
 
0.07
%
 
0.09
%
Guaranteed by U.S. Government, as a percent of total loans and leases
0.14

 
0.14

 
0.12

 
0.12

 
0.13

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.23

 
0.22

 
0.20

 
0.20

 
0.23

 
 
 
 
 
 
 
 
 
 
Accruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
213

 
$
225

 
$
245

 
$
270

 
$
269

Commercial real estate
37

 
40

 
48

 
60

 
54

Automobile
40

 
39

 
37

 
37

 
35

Home equity
226

 
233

 
241

 
247

 
252

Residential mortgage
223

 
221

 
221

 
219

 
218

RV and marine
3

 
3

 
2

 
2

 
2

Other consumer
11

 
10

 
10

 
9

 
9

Total accruing troubled debt restructured loans
$
753

 
$
771

 
$
804

 
$
844

 
$
839

 
 
 
 
 
 
 
 
 
 
Nonaccruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
109

 
$
84

 
$
88

 
$
86

 
$
97

Commercial real estate
6

 
6

 
6

 
6

 
6

Automobile
2

 
3

 
3

 
3

 
3

Home equity
26

 
26

 
26

 
28

 
28

Residential mortgage
42

 
44

 
43

 
43

 
44

RV and marine
1

 
1

 
1

 
1

 
—

Other consumer
—

 
—

 
—

 
—

 
—

Total nonaccruing troubled debt restructured loans
$
186

 
$
164

 
$
167

 
$
167

 
$
178





15













Huntington Bancshares Incorporated
Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data
(Unaudited)
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Common equity tier 1 risk-based capital ratio: (1)
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
11,795

 
$
11,909

 
$
11,668

 
$
11,432

 
$
11,102

Regulatory capital adjustments:
 
 
 
 
 
 
 
 
 
Shareholders’ preferred equity
(1,207
)
 
(1,207
)
 
(1,207
)
 
(1,207
)
 
(1,207
)
Accumulated other comprehensive income offset
256

 
175

 
273

 
455

 
609

Goodwill and other intangibles, net of related taxes
(2,153
)
 
(2,162
)
 
(2,174
)
 
(2,187
)
 
(2,200
)
Deferred tax assets that arise from tax loss and credit carryforwards
(44
)
 
(30
)
 
(30
)
 
(31
)
 
(33
)
Common equity tier 1 capital
8,647

 
8,685

 
8,530


8,462

 
8,271

Additional tier 1 capital
 
 
 
 
 
 
 
 
 
Shareholders’ preferred equity
1,207

 
1,207

 
1,207

 
1,207

 
1,207

Other
—

 
1

 
—

 
1

 
—

Tier 1 capital
9,854

 
9,893

 
9,737


9,670

 
9,478

Long-term debt and other tier 2 qualifying instruments
672

 
750

 
727

 
736

 
776

Qualifying allowance for loan and lease losses
887

 
884

 
875

 
864

 
868

Tier 2 capital
1,559

 
1,634

 
1,602


1,600

 
1,644

Total risk-based capital
$
11,413

 
$
11,527

 
$
11,339

 
$
11,270

 
$
11,122

Risk-weighted assets (RWA)(1)
$
87,513

 
$
86,719

 
$
86,332

 
$
85,966

 
$
85,687

Common equity tier 1 risk-based capital ratio (1)
9.88
%
 
10.02
%
 
9.88
%
 
9.84
%
 
9.65
%
Other regulatory capital data:
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio (1)
9.26

 
9.34

 
9.24

 
9.16

 
9.10

Tier 1 risk-based capital ratio (1)
11.26

 
11.41

 
11.28

 
11.25

 
11.06

Total risk-based capital ratio (1)
13.04

 
13.29

 
13.13

 
13.11

 
12.98

Non-regulatory capital data:
 
 
 
 
 
 
 
 
 
Tangible common equity / RWA ratio (1)
9.62

 
9.83

 
9.58

 
9.34

 
8.97

(1)
December 31, 2019, figures are estimated.


16













Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data
(Unaudited)
Quarterly common stock summary
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,

2019
 
2019
 
2019
 
2019
 
2018
Dividends, per share
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.15

 
$
0.15

 
$
0.14

 
$
0.14

 
$
0.14

Common shares outstanding (000)
 
 
 
 
 
 
 
 
 
Average - basic
1,028,621

 
1,034,940

 
1,044,802

 
1,046,995

 
1,054,460

Average - diluted
1,047,123

 
1,051,273

 
1,060,280

 
1,065,638

 
1,073,055

Ending
1,020,003

 
1,032,755

 
1,037,841

 
1,046,440

 
1,046,767

Tangible book value per common share (1)
$
8.25

 
$
8.25

 
$
7.97

 
$
7.67

 
$
7.34

Common share repurchases (000)
 
 
 
 
 
 
 
 
 
Number of shares repurchased
13,104

 
5,213

 
11,344

 
1,833

 
14,967

Non-regulatory capital
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(dollar amounts in millions)
2019
 
2019
 
2019
 
2019
 
2018
Calculation of tangible equity / asset ratio:
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
11,795

 
$
11,909

 
$
11,668

 
$
11,432

 
$
11,102

Less: goodwill
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,989
)
Less: other intangible assets
(232
)
 
(244
)
 
(257
)
 
(269
)
 
(281
)
Add: related deferred tax liability (1)
49

 
51

 
54

 
56

 
59

Total tangible equity
9,622

 
9,726

 
9,475

 
9,229

 
8,891

Less: preferred equity
(1,203
)
 
(1,203
)
 
(1,203
)
 
(1,203
)
 
(1,203
)
Total tangible common equity
$
8,419

 
$
8,523

 
$
8,272

 
$
8,026

 
$
7,688

Total assets
$
109,002

 
$
108,735

 
$
108,247

 
$
108,203

 
$
108,781

Less: goodwill
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,989
)
Less: other intangible assets
(232
)
 
(244
)
 
(257
)
 
(269
)
 
(281
)
Add: related deferred tax liability (1)
49

 
51

 
54

 
56

 
59

Total tangible assets
$
106,829

 
$
106,552

 
$
106,054

 
$
106,000

 
$
106,570

Tangible equity / tangible asset ratio
9.01
%
 
9.13
%
 
8.93
%
 
8.71
%
 
8.34
%
Tangible common equity / tangible asset ratio
7.88

 
8.00

 
7.80

 
7.57

 
7.21

Other data:
 
 
 
 
 
 
 
 
 
Number of employees (Average full-time equivalent)
15,495

 
15,659

 
15,780

 
15,738

 
15,657

Number of domestic full-service branches (2)
868

 
868

 
868

 
898

 
954

ATM Count
1,448

 
1,442

 
1,687

 
1,727

 
1,774

(1)
Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.
(2)
Includes Regional Banking and The Huntington Private Client Group offices.




17













Huntington Bancshares Incorporated
Consolidated Annual Average Balance Sheets
(Unaudited)
 
Annual Average Balances (1)
 
 
 
Change from 2018
 
 
 
Change from 2017
 
 
(dollar amounts in millions)
2019
 
Amount
 
Percent
 
2018
 
Amount
 
Percent
 
2017
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank (2)
$
552

 
$
430

 
352
 %
 
$
122

 
$
122

 
100
 %
 
$
—

Interest-bearing deposits in banks
142

 
54

 
61

 
88

 
(11
)
 
(11
)
 
99

Securities:
 
 


 


 
 
 
 
 


 
 
Trading account securities
136

 
40

 
42

 
96

 
(6
)
 
(6
)
 
102

Available-for-sale securities:
 
 


 


 
 
 
 
 


 
 
Taxable
10,894

 
194

 
2

 
10,700

 
(1,203
)
 
(10
)
 
11,903

Tax-exempt
2,907

 
(556
)
 
(16
)
 
3,463

 
282

 
9

 
3,181

Total available-for-sale securities
13,801

 
(362
)
 
(3
)
 
14,163

 
(921
)
 
(6
)
 
15,084

Held-to-maturity securities - taxable
8,645

 
2

 
—

 
8,643

 
535

 
7

 
8,108

Other securities
471

 
(113
)
 
(19
)
 
584

 
—

 
—

 
584

Total securities
23,053

 
(433
)
 
(2
)
 
23,486

 
(392
)
 
(2
)
 
23,878

Loans held for sale
816

 
181

 
29

 
635

 
80

 
14

 
555

Loans and leases:(3)
 
 


 


 
 
 


 


 
 
Commercial:
 
 


 


 
 
 


 


 
 
Commercial and industrial
30,549

 
1,662

 
6

 
28,887

 
1,138

 
4

 
27,749

Commercial real estate:
 
 


 


 
 
 


 


 
 
Construction
1,171

 
25

 
2

 
1,146

 
(52
)
 
(4
)
 
1,198

Commercial
5,702

 
(347
)
 
(6
)
 
6,049

 
39

 
1

 
6,010

Commercial real estate
6,873

 
(322
)
 
(4
)
 
7,195

 
(13
)
 
—

 
7,208

Total commercial
37,422

 
1,340

 
4

 
36,082

 
1,125

 
3

 
34,957

Consumer:
 
 


 


 
 
 


 


 
 
Automobile
12,343

 
51

 
—

 
12,292

 
773

 
7

 
11,519

Home equity
9,416

 
(499
)
 
(5
)
 
9,915

 
(79
)
 
(1
)
 
9,994

Residential mortgage
11,087

 
1,180

 
12

 
9,907

 
1,662

 
20

 
8,245

RV and marine
3,451

 
604

 
21

 
2,847

 
692

 
32

 
2,155

Other consumer
1,259

 
56

 
5

 
1,203

 
182

 
18

 
1,021

Total consumer
37,556

 
1,392

 
4

 
36,164

 
3,230

 
10

 
32,934

Total loans and leases
74,978

 
2,732

 
4

 
72,246

 
4,355

 
6

 
67,891

Allowance for loan and lease losses
(786
)
 
(39
)
 
(5
)
 
(747
)
 
(80
)
 
(12
)
 
(667
)
Net loans and leases
74,192

 
2,693

 
4

 
71,499

 
4,275

 
6

 
67,224

Total earning assets
99,541

 
2,964

 
3

 
96,577

 
4,154

 
4

 
92,423

Cash and due from banks
842

 
(342
)
 
(29
)
 
1,184

 
(269
)
 
(19
)
 
1,453

Intangible assets
2,246

 
(65
)
 
(3
)
 
2,311

 
(55
)
 
(2
)
 
2,366

All other assets
6,128

 
471

 
8

 
5,657

 
211

 
4

 
5,446

Total assets
$
107,971

 
$
2,989

 
3
 %
 
$
104,982

 
$
3,961

 
4
 %
 
$
101,021

Liabilities and shareholders’ equity
 
 


 


 
 
 


 


 
 
Interest-bearing deposits:
 
 


 


 
 
 


 


 
 
Demand deposits - interest-bearing
$
19,858

 
$
563

 
3
 %
 
$
19,295

 
$
1,715

 
10
 %
 
$
17,580

Money market deposits
23,772

 
2,326

 
11

 
21,446

 
1,711

 
9

 
19,735

Savings and other domestic deposits
9,916

 
(1,167
)
 
(11
)
 
11,083

 
(614
)
 
(5
)
 
11,697

Core certificates of deposit (4)
5,590

 
1,402

 
33

 
4,188

 
2,069

 
98

 
2,119

Other domestic deposits of $250,000 or more
319

 
39

 
14

 
280

 
(165
)
 
(37
)
 
445

Brokered deposits and negotiable CDs
2,816

 
(687
)
 
(20
)
 
3,503

 
(172
)
 
(5
)
 
3,675

Total interest-bearing deposits
62,271

 
2,476

 
4

 
59,795

 
4,544

 
8

 
55,251

Short-term borrowings
2,444

 
(304
)
 
(11
)
 
2,748

 
(175
)
 
(6
)
 
2,923

Long-term debt
9,332

 
340

 
4

 
8,992

 
130

 
1

 
8,862

Total interest-bearing liabilities
74,047

 
2,512

 
4

 
71,535

 
4,499

 
7

 
67,036

Demand deposits - noninterest-bearing
20,061

 
(330
)
 
(2
)
 
20,391

 
(1,308
)
 
(6
)
 
21,699

All other liabilities
2,303

 
306

 
15

 
1,997

 
322

 
19

 
1,675

Shareholders’ equity
11,560

 
501

 
5

 
11,059

 
448

 
4

 
10,611

Total liabilities and shareholders’ equity
$
107,971

 
$
2,989

 
3
 %
 
$
104,982

 
$
3,961

 
4
 %
 
$
101,021

(1)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)
Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018.
(3)
Includes nonaccrual loans.
(4)
Includes consumer certificates of deposit of $250,000 or more.

18













Huntington Bancshares Incorporated
Consolidated Annual Net Interest Margin - Interest Income / Expense(1)(2)
(Unaudited)
 
Annual Interest Income / Expense
(dollar amounts in millions)
2019
 
2018
 
2017
Assets
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank (3)
$
12

 
$
3

 
$
—

Interest-bearing deposits in banks
3

 
2

 
2

Securities:
 
 
 
 
 
Trading account securities
3

 
1

 
—

Available-for-sale securities:
 
 
 
 
 
Taxable
295

 
280

 
283

Tax-exempt
105

 
122

 
118

Total available-for-sale securities
400

 
402


401

Held-to-maturity securities - taxable
218

 
211

 
193

Other securities
16

 
25

 
20

Total securities
637

 
639


614

Loans held for sale
31

 
26

 
21

Loans and leases:
 
 
 
 
 
Commercial:
 
 
 
 
 
Commercial and industrial
1,441

 
1,337

 
1,142

Commercial real estate:
 
 
 
 
 
Construction
65

 
60

 
52

Commercial
273

 
283

 
240

Commercial real estate
338

 
343


292

Total commercial
1,779

 
1,680


1,434

Consumer:
 
 
 
 
 
Automobile
500

 
456

 
412

Home equity
508

 
512

 
463

Residential mortgage
422

 
371

 
301

RV and marine
171

 
145

 
118

Other consumer
165

 
145

 
118

Total consumer
1,766

 
1,629


1,412

Total loans and leases
3,545

 
3,309


2,846

Total earning assets
$
4,228

 
$
3,979


$
3,483

Liabilities
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
Demand deposits - interest-bearing
$
116

 
$
78

 
$
38

Money market deposits
260

 
148

 
66

Savings and other domestic deposits
22

 
24

 
24

Core certificates of deposit
119

 
72

 
13

Other domestic deposits of $250,000 or more
7

 
3

 
2

Brokered deposits and negotiable CDs
61

 
66

 
37

Total interest-bearing deposits
585

 
391


180

Short-term borrowings
54

 
48

 
25

Long-term debt
349

 
321

 
226

Total interest-bearing liabilities
988

 
760


431

Net interest income
$
3,240

 
$
3,219


$
3,052

(1)
Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018. See page 21 for the FTE adjustment.
(2)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018 and associated interest income was not material.
 


19













Huntington Bancshares Incorporated
Consolidated Annual Net Interest Margin - Yield
(Unaudited)
 
Annual Average Rates(2)
Fully-taxable equivalent basis(1)
2019
 
2018
 
2017
Assets
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank (2)
2.12
%
 
2.33
%
 
—
%
Interest-bearing deposits in banks
2.01

 
1.97

 
1.56

Securities:
 
 
 
 
 
Trading account securities
2.17

 
0.80

 
0.18

Available-for-sale securities:
 
 
 
 
 
Taxable
2.71

 
2.61

 
2.38

Tax-exempt
3.61

 
3.53

 
3.71

Total available-for-sale securities
2.90

 
2.84

 
2.66

Held-to-maturity securities - taxable
2.52

 
2.44

 
2.38

Other securities
3.47

 
4.34

 
3.42

Total securities
2.76

 
2.72

 
2.57

Loans held for sale
3.76

 
4.15

 
3.75

Loans and leases: (4)
 
 
 
 
 
Commercial:
 
 
 
 
 
Commercial and industrial
4.72

 
4.63

 
4.12

Commercial real estate:
 
 
 
 
 
Construction
5.51

 
5.26

 
4.36

Commercial
4.79

 
4.67

 
4.00

Commercial real estate
4.91

 
4.77

 
4.06

Total commercial
4.75

 
4.66

 
4.11

Consumer:
 
 
 
 
 
Automobile
4.05

 
3.71

 
3.58

Home equity
5.40

 
5.16

 
4.63

Residential mortgage
3.81

 
3.74

 
3.65

RV and marine
4.95

 
5.09

 
5.45

Other consumer
13.11

 
12.04

 
11.53

Total consumer
4.70

 
4.50

 
4.28

Total loans and leases
4.73

 
4.58

 
4.19

Total earning assets
4.25

 
4.12

 
3.77

Liabilities
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
Demand deposits - interest-bearing
0.58
%
 
0.40
%
 
0.21
%
Money market deposits
1.09

 
0.69

 
0.33

Savings and other domestic deposits
0.22

 
0.22

 
0.21

Core certificates of deposit (5)
2.13

 
1.72

 
0.60

Other domestic deposits of $250,000 or more
1.82

 
1.25

 
0.52

Brokered deposits and negotiable CDs
2.18

 
1.88

 
1.00

Total interest-bearing deposits
0.94

 
0.65

 
0.33

Short-term borrowings
2.23

 
1.74

 
0.86

Long-term debt
3.74

 
3.57

 
2.56

Total interest bearing liabilities
1.34

 
1.06

 
0.64

Demand deposits - noninterest-bearing
—

 
—

 
—

Net interest rate spread
2.91

 
3.06

 
3.13

Impact of noninterest-bearing funds on margin
0.35

 
0.27

 
0.17

Net interest margin
3.26
%
 
3.33
%
 
3.30
%

Commercial Loan Derivative Impact
(Unaudited)
 
Annual Average Rates
Fully-taxable equivalent basis(1)
2019
 
2018
 
2017
Commercial loans (3)(4)
4.72
%
 
4.59
%
 
4.06
%
Impact of commercial loan derivatives
0.03

 
0.07


0.05

Total commercial - as reported
4.75
%
 
4.66
%
 
4.11
%
 
 
 
 
 
 
Average 1 Month LIBOR
2.22
%
 
2.02
%
 
1.11
%
(1)
Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018. See page 21 for the FTE adjustment.
(2)
Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018.
(3)
Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
(4)
Includes the impact of nonacrrual loans.
(5)
Includes consumer certificates of deposits of $250,000 or more.

20













Huntington Bancshares Incorporated
Selected Annual Income Statement Data
(Unaudited)

 
Year Ended December 31,
(dollar amounts in millions, except per share data, share count in thousands)
 
 
Change
 
 
 
Change
 
 
2019
 
Amount
 
Percent
 
2018
 
Amount
 
Percent
 
2017
Interest income
$
4,201

 
$
252

 
6
 %
 
$
3,949

 
$
516

 
15
 %
 
$
3,433

Interest expense
988

 
228

 
30

 
760

 
329

 
76

 
431

Net interest income
3,213

 
24

 
1

 
3,189

 
187

 
6

 
3,002

Provision for credit losses
287

 
52

 
22

 
235

 
34

 
17

 
201

Net interest income after provision for credit losses
2,926

 
(28
)
 
(1
)
 
2,954

 
153

 
5

 
2,801

Service charges on deposit accounts
372

 
8

 
2

 
364

 
11

 
3

 
353

Card and payment processing income
246

 
22

 
10

 
224

 
18

 
9

 
206

Trust and investment management services
178

 
7

 
4

 
171

 
15

 
10

 
156

Mortgage banking income
167

 
59

 
55

 
108

 
(23
)
 
(18
)
 
131

Capital markets fees
123

 
15

 
14

 
108

 
18

 
20

 
90

Insurance income
88

 
6

 
7

 
82

 
1

 
1

 
81

Bank owned life insurance income
66

 
(1
)
 
(1
)
 
67

 
—

 
—

 
67

Gain on sale of loans and leases
55

 
—

 
—

 
55

 
(1
)
 
(2
)
 
56

Net (losses) gains on sales of securities
(24
)
 
(3
)
 
(14
)
 
(21
)
 
(17
)
 
(425
)
 
(4
)
Other noninterest income
183

 
20

 
12

 
163

 
(8
)
 
(5
)
 
171

Total noninterest income
1,454

 
133

 
10

 
1,321

 
14

 
1

 
1,307

Personnel costs
1,654

 
95

 
6

 
1,559

 
35

 
2

 
1,524

Outside data processing and other services
346

 
52

 
18

 
294

 
(19
)
 
(6
)
 
313

Equipment
163

 
(1
)
 
(1
)
 
164

 
(7
)
 
(4
)
 
171

Net occupancy
159

 
(25
)
 
(14
)
 
184

 
(28
)
 
(13
)
 
212

Professional services
54

 
(6
)
 
(10
)
 
60

 
(9
)
 
(13
)
 
69

Amortization of intangibles
49

 
(4
)
 
(8
)
 
53

 
(3
)
 
(5
)
 
56

Marketing
37

 
(16
)
 
(30
)
 
53

 
(7
)
 
(12
)
 
60

Deposit and other insurance expense
34

 
(29
)
 
(46
)
 
63

 
(15
)
 
(19
)
 
78

Other noninterest expense
225

 
8

 
4

 
217

 
(14
)
 
(6
)
 
231

Total noninterest expense
2,721

 
74

 
3

 
2,647

 
(67
)
 
(2
)
 
2,714

Income before income taxes
1,659

 
31

 
2

 
1,628

 
234

 
17

 
1,394

Provision for income taxes
248

 
13

 
6

 
235

 
27

 
13

 
208

Net income
1,411

 
18

 
1

 
1,393

 
207

 
17

 
1,186

Dividends on preferred shares
74

 
4

 
6

 
70

 
(6
)
 
(8
)
 
76

Net income applicable to common shares
$
1,337

 
$
14

 
1
 %
 
$
1,323

 
$
213

 
19
 %
 
$
1,110

Average common shares - basic
1,038,840

 
(42,702
)
 
(4
)%
 
1,081,542

 
(3,144
)
 
—
 %
 
1,084,686

Average common shares - diluted
1,056,079

 
(49,906
)
 
(5
)
 
1,105,985

 
(30,201
)
 
(3
)
 
1,136,186

Per common share
 
 

 


 
 
 

 


 
 
Net income - basic
$
1.29

 
$
0.07

 
6

 
$
1.22

 
$
0.20

 
20

 
$
1.02

Net income - diluted
1.27

 
0.07

 
6

 
1.20

 
0.20

 
20

 
1.00

Cash dividends declared
0.58

 
0.08

 
16

 
0.50

 
0.15

 
43

 
0.35

Revenue - fully taxable equivalent (FTE)
 
 

 


 
 
 

 


 
 
Net interest income
$
3,213

 
$
24

 
1

 
$
3,189

 
$
187

 
6

 
$
3,002

FTE adjustment (1)
26

 
(4
)
 
(13
)
 
30

 
(20
)
 
(40
)
 
50

Net interest income
3,239

 
20

 
1

 
3,219

 
167

 
5

 
3,052

Noninterest income
1,454

 
133

 
10

 
1,321

 
14

 
1

 
1,307

Total revenue (1)
$
4,693

 
$
153

 
3
 %
 
$
4,540

 
$
181

 
4
 %
 
$
4,359

(1)
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.


21













Huntington Bancshares Incorporated
Annual Mortgage Banking Income
(Unaudited)
 
Year Ended December 31,
(dollar amounts in millions)
2019
 
2018
 
2017
 
2016
 
2015
Net origination and secondary marketing income
$
132

 
$
79

 
$
95

 
$
100

 
$
91

Net mortgage servicing income
 
 
 
 
 
 
 
 
 
          Loan servicing income
59

 
56

 
52

 
46

 
43

          Amortization of capitalized servicing
(45
)
 
(33
)
 
(29
)
 
(28
)
 
(27
)
     Operating income
14

 
23

 
23

 
18

 
16

          MSR valuation adjustment (1)
(15
)
 
7

 
1

 
1

 
(4
)
          Gains (losses) due to MSR hedging
29

 
(8
)
 
—

 
(1
)
 
(2
)
     Net MSR risk management
14

 
(1
)
 
1

 
—

 
(6
)
Total net mortgage servicing income
$
28

 
$
22

 
$
24

 
$
18

 
$
10

All other
7

 
7

 
12

 
10

 
11

Mortgage banking income
$
167

 
$
108

 
$
131

 
$
128

 
$
112


 
 
 
 
 
 
 
 
 
Mortgage origination volume
$
7,744

 
$
6,996

 
$
6,634

 
$
5,822

 
$
4,705

Mortgage origination volume for sale
4,938

 
4,061

 
3,912

 
3,822

 
3,237

 
 
 
 
 
 
 
 
 
 
Third party mortgage loans serviced (2)
22,425

 
21,068

 
19,989

 
18,852

 
16,168

Mortgage servicing rights (2)
212

 
221

 
202

 
186

 
161

MSR % of investor servicing portfolio
0.95
%
 
1.05
%
 
1.01
%
 
0.99
%
 
0.99
%
(1)
The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)
At period end.


22













Huntington Bancshares Incorporated
Annual Credit Reserves Analysis
(Unaudited)
 
Year Ended December 31,
(dollar amounts in millions)
2019
 
2018
 
2017
 
2016
 
2015
Allowance for loan and lease losses, beginning of period
$
772

 
$
691

 
$
638

 
$
598

 
$
605

Loan and lease losses
(362
)
 
(268
)
 
(252
)
 
(227
)
 
(218
)
Recoveries of loans previously charged off
97

 
123

 
93

 
118

 
130

Net loan and lease losses
(265
)
 
(145
)

(159
)

(109
)

(88
)
Provision for loan and lease losses
277

 
226

 
212

 
169

 
89

Allowance of assets sold or transferred to loans held for sale
(1
)
 
—

 
—

 
(20
)
 
(8
)
Allowance for loan and lease losses, end of period
783

 
772


691


638


598

Allowance for unfunded loan commitments and letters of credit, beginning of period
96

 
87

 
98

 
72

 
61

Provision for (reduction in) unfunded loan commitments and letters of credit losses
10

 
9

 
(11
)
 
22

 
11

Fair value of acquired AULC
 
 
—

 
—

 
4

 
—

Unfunded commitment losses
(2
)
 
 
 
 
 
 
 
 
Allowance for unfunded loan commitments and letters of credit, end of period
104


96


87


98


72

Total allowance for credit losses
$
887

 
$
868


$
778


$
736


$
670

Allowance for loan and lease losses (ALLL) as % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
1.04
%
 
1.03
%
 
0.99
%
 
0.95
%
 
1.19
%
Nonaccrual loans and leases (NALs)
167

 
228

 
198

 
151

 
161

Nonperforming assets (NPAs)
157

 
200

 
178

 
133

 
150



23













Huntington Bancshares Incorporated
Annual Net Charge-Off Analysis
(Unaudited)

 
Year Ended December 31,
(dollar amounts in millions)
2019
 
2018
 
2017
 
2016
 
2015
Net charge-offs by loan and lease type:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
128

 
$
32

 
$
42

 
$
45

 
$
28

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
(2
)
 
(1
)
 
(5
)
 
(2
)
 
(1
)
Commercial
(1
)
 
(17
)
 
(6
)
 
(24
)
 
(15
)
Commercial real estate
(3
)

(18
)

(11
)

(26
)

(16
)
Total commercial
125


14


31


19


12

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
32

 
34

 
42

 
32

 
20

Home equity
8

 
6

 
5

 
9

 
20

Residential mortgage
6

 
6

 
6

 
6

 
10

RV and marine
11

 
9

 
10

 
2

 
—

Other consumer
83

 
76

 
65

 
41

 
26

Total consumer
140


131


128


90


76

Total net charge-offs
$
265


$
145


$
159


$
109


$
88

 
 
 
 
 
 
 
 
 
 
Net charge-offs - annualized percentages:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
0.42
 %
 
0.11
 %
 
0.15
 %
 
0.19
 %
 
0.14
 %
Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
(0.15
)
 
(0.13
)
 
(0.36
)
 
(0.19
)
 
(0.08
)
Commercial
(0.02
)
 
(0.26
)
 
(0.10
)
 
(0.49
)
 
(0.37
)
Commercial real estate
(0.04
)
 
(0.24
)
 
(0.15
)
 
(0.44
)
 
(0.32
)
Total commercial
0.33

 
0.04

 
0.09

 
0.06

 
0.05

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
0.26

 
0.27

 
0.36

 
0.30

 
0.23

Home equity
0.08

 
0.06

 
0.05

 
0.10

 
0.23

Residential mortgage
0.06

 
0.06

 
0.08

 
0.09

 
0.17

RV and marine
0.31

 
0.32

 
0.48

 
0.33

 
—

Other consumer
6.62

 
6.27

 
6.36

 
5.53

 
5.44

Total consumer
0.37

 
0.36

 
0.39

 
0.32

 
0.32

Net charge-offs as a % of average loans
0.35
 %
 
0.20
 %
 
0.23
 %
 
0.19
 %
 
0.18
 %



24













Huntington Bancshares Incorporated
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)

 
December 31,
(dollar amounts in millions)
2019
 
2018
 
2017
 
2016
 
2015
Nonaccrual loans and leases (NALs):
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
323

 
$
188

 
$
161

 
$
234

 
$
175

Commercial real estate
10

 
15

 
29

 
20

 
29

Automobile
4

 
5

 
6

 
6

 
7

Home equity
59

 
62

 
68

 
72

 
66

Residential mortgage
71

 
69

 
84

 
91

 
95

RV and marine
1

 
1

 
1

 
—

 
—

Other consumer
—

 
—

 
—

 
—

 
—

Total nonaccrual loans and leases
468


340


349


423


372

Other real estate, net:
 
 
 
 
 
 
 
 
 
Residential
9

 
19

 
24

 
31

 
24

Commercial
2

 
4

 
9

 
20

 
3

Total other real estate, net
11


23


33


51


27

Other NPAs (1)
19

 
24

 
7

 
7

 
—

Total nonperforming assets (3)
$
498


$
387


$
389


$
481


$
399

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans and leases as a % of total loans and leases
0.62
%
 
0.45
%
 
0.50
%
 
0.63
%
 
0.74
%
NPA ratio (2)
0.66

 
0.52

 
0.55

 
0.72

 
0.79


 
December 31,
(dollar amounts in millions)
2019
 
2018
 
2017
 
2016
 
2015
Nonperforming assets, beginning of period
$
387

 
$
389

 
$
481

 
$
399

 
$
338

New nonperforming assets
675

 
477

 
415

 
633

 
569

Returns to accruing status
(93
)
 
(93
)
 
(118
)
 
(127
)
 
(101
)
Loan and lease losses
(194
)
 
(114
)
 
(95
)
 
(135
)
 
(150
)
Payments
(188
)
 
(245
)
 
(252
)
 
(210
)
 
(212
)
Sales and held-for-sale transfers
(89
)
 
(27
)
 
(42
)
 
(79
)
 
(45
)
Nonperforming assets, end of period (2)
$
498

 
$
387

 
$
389

 
$
481

 
$
399


(1)
Other nonperforming assets at December 31, 2019 and 2018 include certain nonaccrual loans held-for-sale. Amounts prior to December 31, 2018 includes certain impaired securities.
(2)
Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(3)
Nonaccruing troubled debt restructured loans are included in the nonperforming assets balance.





25













Huntington Bancshares Incorporated
Annual Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans
(Unaudited)

 
December 31,
(dollar amounts in millions)
2019
 
2018
 
2017
 
2016
 
2015
Accruing loans and leases past due 90+ days:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
11

 
$
7

 
$
9

 
$
18

 
$
9

Commercial real estate
—

 
—

 
3

 
17

 
10

Automobile
8

 
8

 
7

 
10

 
7

Home equity
14

 
17

 
18

 
12

 
9

Residential mortgage (excluding loans guaranteed by the U.S. Government)
20

 
32

 
21

 
15

 
14

RV and marine
2

 
1

 
1

 
1

 
—

Other consumer
7

 
6

 
5

 
4

 
1

Total, excl. loans guaranteed by the U.S. Government
62


71


64


77


50

Add: loans guaranteed by U.S. Government
109

 
99

 
51

 
52

 
56

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government
$
171

 
$
170

 
$
115

 
$
129

 
$
106

Ratios:
 
 
 
 
 
 
 
 
 
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.08
%
 
0.09
%
 
0.09
%
 
0.12
%
 
0.10
%
Guaranteed by U.S. Government, as a percent of total loans and leases
0.14

 
0.13

 
0.07

 
0.08

 
0.11

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.23

 
0.23

 
0.16

 
0.19

 
0.21

Accruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
213

 
$
269

 
$
300

 
$
210

 
$
236

Commercial real estate
37

 
54

 
78

 
77

 
115

Automobile
40

 
35

 
30

 
26

 
25

Home equity
226

 
252

 
265

 
270

 
199

Residential mortgage
223

 
218

 
224

 
243

 
265

RV and marine
3

 
2

 
1

 
—

 
—

Other consumer
11

 
9

 
8

 
4

 
4

Total accruing troubled debt restructured loans
$
753


$
839


$
906


$
830


$
844

Nonaccruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
109

 
$
97

 
$
82

 
$
107

 
$
57

Commercial real estate
6

 
6

 
15

 
5

 
17

Automobile
2

 
3

 
4

 
5

 
6

Home equity
26

 
28

 
28

 
28

 
21

Residential mortgage
42

 
44

 
55

 
59

 
72

RV and marine
1

 
—

 
—

 
—

 
—

Other consumer
—

 
—

 
—

 
—

 
—

Total nonaccruing troubled debt restructured loans
$
186


$
178


$
184


$
204


$
173





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