Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
June 30, 2020
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.
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)
June 30,
 
March 31,
 
June 30,
 
 
Percent Changes vs.
2020
 
2020
 
2019
 
 
1Q20
 
2Q19
Net interest income (2)
$
797


$
796


$
819

 
 
 %
 
(3
)%
FTE adjustment
(5
)
 
(6
)
 
(7
)
 
 
17

 
29

Net interest income
792

 
790

 
812

 
 

 
(2
)
Provision for credit losses
327

 
441

 
59

 
 
(26
)
 
454

Noninterest income
391

 
361

 
374

 
 
8

 
5

Noninterest expense
675

 
652

 
700

 
 
4

 
(4
)
Income before income taxes
181

 
58

 
427

 
 
212

 
(58
)
Provision for income taxes
31

 
10

 
63

 
 
210

 
(51
)
Net income
150

 
48

 
364

 
 
213

 
(59
)
Dividends on preferred shares
19

 
18

 
18

 
 
6

 
6

Net income applicable to common shares
$
131

 
$
30

 
$
346

 
 
337
 %
 
(62
)%
 
 
 
 
 
 
 
 


 


Net income per common share - diluted
$
0.13

 
$
0.03

 
$
0.33

 
 
333
 %
 
(61
)%
Cash dividends declared per common share
0.15

 
0.15

 
0.14

 
 

 
7

Tangible book value per common share at end of period
8.32

 
8.28

 
7.97

 
 

 
4

Number of common shares repurchased

 
7,088

 
11,344

 
 
(100
)
 
(100
)
Average common shares - basic
1,016

 
1,018

 
1,045

 
 

 
(3
)
Average common shares - diluted
1,029

 
1,035

 
1,060

 
 
(1
)
 
(3
)
Ending common shares outstanding
1,017

 
1,014

 
1,038

 
 

 
(2
)
Return on average assets
0.51
%
 
0.17
 %
 
1.36
 %
 
 


 


Return on average common shareholders’ equity
5.0

 
1.1

 
13.5

 
 


 


Return on average tangible common shareholders’ equity (1)
6.7

 
1.8

 
17.7

 
 


 


Net interest margin (2)
2.94

 
3.14

 
3.31

 
 


 


Efficiency ratio (3)
55.9

 
55.4

 
57.6

 
 


 


Effective tax rate
17.2

 
17.0

 
14.6

 
 


 


Average total assets
$
118,191

 
$
110,147

 
$
107,479

 
 
7

 
10

Average earning assets
109,038

 
101,783

 
99,188

 
 
7

 
10

Average loans and leases
80,199

 
75,696

 
74,932

 
 
6

 
7

Average loans and leases - linked quarter annualized growth rate
23.8
%
 
3.2
 %
 
0.8
 %
 
 


 


Average total deposits
$
93,222

 
$
82,733

 
$
81,718

 
 
13

 
14

Average core deposits (4)
88,878

 
79,528

 
78,723

 
 
12

 
13

Average core deposits - linked quarter annualized growth rate
47.0
%
 
(0.8
)%
 
(1.6
)%
 
 


 


Average shareholders’ equity
11,945

 
11,636

 
11,475

 
 
3

 
4

Average common total shareholders' equity
10,590

 
10,433

 
10,272

 
 
2

 
3

Average tangible common shareholders' equity
8,429

 
8,264

 
8,075

 
 
2

 
4

Total assets at end of period
118,425

 
113,897

 
108,247

 
 
4

 
9

Total shareholders’ equity at end of period
12,314

 
11,769

 
11,668

 
 
5

 
6

 
 
 
 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.54
%
 
0.62
 %
 
0.25
 %
 
 
 
 
 
NAL ratio
0.81

 
0.72

 
0.57

 
 
 
 
 
NPA ratio (5)
0.89

 
0.75

 
0.61

 
 


 


Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
2.12

 
1.93

 
1.03

 
 
 
 
 
Common equity tier 1 risk-based capital ratio (6)
9.84

 
9.47

 
9.88

 
 
 
 
 
Tangible common equity / tangible asset ratio (7)
7.28

 
7.52

 
7.80

 
 
 
 
 
See Notes to the Quarterly Key Statistics.

1














Huntington Bancshares Incorporated
Year to Date Key Statistics
(Unaudited)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions, except per share data)
2020
 
2019
 
Amount
 
Percent
Net interest income (2)
$
1,593

 
$
1,648

 
$
(55
)
 
(3
)%
FTE adjustment
(11
)
 
(14
)
 
3

 
21

Net interest income
1,582

 
1,634

 
(52
)
 
(3
)
Provision for credit losses
768

 
126

 
642

 
510

Noninterest income
752

 
693

 
59

 
9

Noninterest expense
1,327

 
1,353

 
(26
)
 
(2
)
Income before income taxes
239

 
848

 
(609
)
 
(72
)
Provision for income taxes
41

 
126

 
(85
)
 
(67
)
Net Income
198

 
722

 
(524
)
 
(73
)
Dividends on preferred shares
37

 
37

 

 

Net income applicable to common shares
$
161

 
$
685

 
$
(524
)
 
(76
)%
 
 
 
 
 
 
 


Net income per common share - diluted
$
0.16

 
$
0.64

 
$
(0.48
)
 
(75
)%
Cash dividends declared per common share
0.30

 
0.28

 
0.02

 
7

 
 
 
 
 
 
 


Average common shares - basic
1,017

 
1,046

 
(29
)
 
(3
)
Average common shares - diluted
1,032

 
1,063

 
(31
)
 
(3
)
 
 
 
 
 
 
 


Return on average assets
0.35
%
 
1.35
%
 
 
 


Return on average common shareholders’ equity
3.1

 
13.7

 
 
 


Return on average tangible common shareholders’ equity (1)
4.3

 
18.0

 
 
 


Net interest margin (2)
3.04

 
3.35

 
 
 


Efficiency ratio (3)
55.7

 
56.7

 
 
 


Effective tax rate
17.2

 
14.8

 
 
 


 
 
 
 
 
 
 


Average total assets
$
114,169

 
$
107,495

 
$
6,674

 
6

Average earning assets
105,410

 
99,200

 
6,210

 
6

Average loans and leases
77,947

 
74,853

 
3,094

 
4

Average total deposits
87,977

 
82,242

 
5,735

 
7

Average core deposits (4)
83,758

 
78,877

 
4,881

 
6

Average shareholders’ equity
11,790

 
11,317

 
473

 
4

Average common total shareholders' equity
10,511

 
10,113

 
398

 
4

Average tangible common shareholders' equity
8,347

 
7,912

 
435

 
5

 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.58
%
 
0.32
%
 


 


NAL ratio
0.81

 
0.57

 


 


NPA ratio (5)
0.89

 
0.61

 


 


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 nonperforming assets, which includes certain impaired securities and/or nonaccrual loans held for sale, and other real estate owned.
(6)
June 30, 2020, 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
 
June 30,
 
December 31,
 

(dollar amounts in millions)
2020
 
2019
 
Percent Changes
 
(Unaudited)
 

 
 
Assets
 
 
 
 
 
Cash and due from banks
$
1,285

 
$
1,045

 
23
 %
Interest-bearing deposits in Federal Reserve Bank
5,008

 
125

 
3,906

Interest-bearing deposits in banks
82

 
102

 
(20
)
Trading account securities
45

 
99

 
(55
)
Available-for-sale securities
13,297

 
14,149

 
(6
)
Held-to-maturity securities
9,416

 
9,070

 
4

Other securities
438

 
441

 
(1
)
Loans held for sale
1,165

 
877

 
33

Loans and leases (1)
80,139

 
75,404

 
6

Allowance for loan and lease losses
(1,702
)
 
(783
)
 
(117
)
Net loans and leases
78,437

 
74,621

 
5

Bank owned life insurance
2,560

 
2,542

 
1

Premises and equipment
751

 
763

 
(2
)
Goodwill
1,990

 
1,990

 

Service rights and other intangible assets
411

 
475

 
(13
)
Other assets
3,540

 
2,703

 
31

Total assets
$
118,425

 
$
109,002

 
9
 %
 
 
 
 
 


Liabilities and shareholders’ equity
 
 
 
 


Liabilities
 
 
 
 


Deposits (2)
$
93,691

 
$
82,347

 
14
 %
Short-term borrowings
146

 
2,606

 
(94
)
Long-term debt
9,753

 
9,849

 
(1
)
Other liabilities
2,521

 
2,405

 
5

Total liabilities
106,111

 
97,207

 
9

 
 
 
 
 


Shareholders' equity
 
 
 
 


Preferred stock
1,697

 
1,203

 
41

Common stock
10

 
10

 

Capital surplus
8,743

 
8,806

 
(1
)
Less treasury shares, at cost
(59
)
 
(56
)
 
(5
)
Accumulated other comprehensive gain (loss)
290

 
(256
)
 
213

Retained earnings (deficit)
1,633

 
2,088

 
(22
)
Total shareholders’ equity
12,314

 
11,795

 
4

Total liabilities and shareholders’ equity
$
118,425

 
$
109,002

 
9
 %
 
 
 
 
 
 
Common shares authorized (par value of $0.01)
1,500,000,000

 
1,500,000,000

 
 
Common shares outstanding
1,017,309,583

 
1,020,003,482

 
 
Treasury shares outstanding
4,999,371

 
4,537,605

 
 
Preferred stock, authorized shares
6,617,808

 
6,617,808

 
 
Preferred shares outstanding
745,500

 
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)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
34,879

 
44
%
 
$
32,959

 
42
%
 
$
30,664

 
41
%
 
$
30,394

 
41
%
 
$
30,608

 
41
%
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
1,200

 
1

 
1,180

 
2

 
1,123

 
1

 
1,157

 
2

 
1,146

 
1

Commercial
5,979

 
7

 
5,793

 
7

 
5,551

 
7

 
5,698

 
8

 
5,742

 
8

Commercial real estate
7,179

 
8

 
6,973

 
9

 
6,674

 
8

 
6,855

 
10

 
6,888

 
9

Total commercial
42,058

 
52

 
39,932

 
51

 
37,338

 
49

 
37,249

 
51

 
37,496

 
50

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automobile
12,678

 
16

 
12,907

 
17

 
12,797

 
17

 
12,292

 
15

 
12,173

 
16

Home equity
8,866

 
11

 
9,010

 
11

 
9,093

 
12

 
9,300

 
12

 
9,419

 
12

Residential mortgage
11,621

 
15

 
11,398

 
15

 
11,376

 
15

 
11,247

 
15

 
11,182

 
15

RV and marine
3,843

 
5

 
3,643

 
5

 
3,563

 
5

 
3,553

 
5

 
3,492

 
5

Other consumer
1,073

 
1

 
1,145

 
1

 
1,237

 
2

 
1,251

 
2

 
1,271

 
2

Total consumer
38,081

 
48

 
38,103

 
49

 
38,066

 
51

 
37,643

 
49

 
37,537

 
50

Total loans and leases
$
80,139

 
100
%
 
$
78,035

 
100
%
 
$
75,404

 
100
%
 
$
74,892

 
100
%
 
$
75,033

 
100
%

 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Ending Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
27,173

 
34
%
 
$
21,544

 
28
%
 
$
21,716

 
29
%
 
$
21,963

 
30
%
 
$
22,128

 
30
%
Commercial Banking
26,916

 
34

 
29,421

 
38

 
27,050

 
36

 
27,090

 
36

 
27,311

 
36

Vehicle Finance
19,345

 
24

 
20,552

 
26

 
20,190

 
27

 
19,484

 
26

 
19,417

 
26

RBHPCG
6,576

 
8

 
6,457

 
8

 
6,366

 
8

 
6,294

 
8

 
6,179

 
8

Treasury / Other
129

 

 
61

 

 
82

 

 
61

 

 
(2
)
 

Total loans and leases
$
80,139

 
100
%
 
$
78,035

 
100
%
 
$
75,404

 
100
%
 
$
74,892

 
100
%
 
$
75,033

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
25,379

 
32
%
 
$
21,593

 
29
%
 
$
21,845

 
30
%
 
$
22,092

 
30
%
 
$
22,139

 
30
%
Commercial Banking
28,173

 
35

 
27,238

 
36

 
26,993

 
36

 
27,295

 
36

 
27,350

 
36

Vehicle Finance
19,822

 
25

 
20,307

 
27

 
19,852

 
26

 
19,370

 
26

 
19,298

 
26

RBHPCG
6,498

 
8

 
6,415

 
8

 
6,314

 
8

 
6,237

 
8

 
6,054

 
8

Treasury / Other
327

 

 
143

 

 
99

 

 
102

 

 
91

 

Total loans and leases
$
80,199

 
100
%
 
$
75,696

 
100
%
 
$
75,103

 
100
%
 
$
75,096

 
100
%
 
$
74,932

 
100
%


5














Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits - noninterest-bearing
$
27,574

 
29
%
 
$
21,039

 
24
%
 
$
20,247

 
25
%
 
$
20,553

 
25
%
 
$
19,383

 
24
%
Demand deposits - interest-bearing
22,961

 
25

 
23,115

 
27

 
20,583

 
25

 
19,976

 
24

 
19,085

 
24

Money market deposits
25,312

 
27

 
25,068

 
29

 
24,726

 
30

 
23,977

 
29

 
23,952

 
30

Savings and other domestic deposits
11,034

 
12

 
9,845

 
11

 
9,549

 
12

 
9,566

 
12

 
9,803

 
12

Core certificates of deposit (1)
2,478

 
3

 
3,599

 
4

 
4,356

 
5

 
5,443

 
7

 
5,703

 
7

Total core deposits
89,359

 
96

 
82,666

 
95

 
79,461

 
97

 
79,515

 
97

 
77,926

 
97

Other domestic deposits of $250,000 or more
209

 

 
276

 

 
313

 

 
326

 

 
316

 

Brokered deposits and negotiable CDs
4,123

 
4

 
3,888

 
5

 
2,573

 
3

 
2,554

 
3

 
2,640

 
3

Total deposits
$
93,691

 
100
%
 
$
86,830

 
100
%
 
$
82,347

 
100
%
 
$
82,395

 
100
%
 
$
80,882

 
100
%
Total core deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
41,630

 
47
%
 
$
38,064

 
46
%
 
$
34,957

 
44
%
 
$
35,247

 
44
%
 
$
33,371

 
43
%
Consumer
47,729

 
53

 
44,602

 
54

 
44,504

 
56

 
44,268

 
56

 
44,555

 
57

Total core deposits
$
89,359

 
100
%
 
$
82,666

 
100
%
 
$
79,461

 
100
%
 
$
79,515

 
100
%
 
$
77,926

 
100
%
Ending Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
59,202

 
63
%
 
$
51,898

 
60
%
 
$
51,675

 
63
%
 
$
51,671

 
63
%
 
$
51,577

 
64
%
Commercial Banking
22,041

 
24

 
23,530

 
27

 
20,762

 
25

 
21,088

 
26

 
20,049

 
25

Vehicle Finance
824

 
1

 
525

 
1

 
376

 

 
363

 

 
339

 

RBHPCG
6,834

 
7

 
6,265

 
7

 
6,370

 
8

 
6,101

 
7

 
5,863

 
7

Treasury / Other (2)
4,790

 
5

 
4,612

 
5

 
3,164

 
4

 
3,172

 
4

 
3,054

 
4

Total deposits
$
93,691

 
100
%
 
$
86,830

 
100
%
 
$
82,347

 
100
%
 
$
82,395

 
100
%
 
$
80,882

 
100
%
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Average Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
56,858

 
61
%
 
$
51,296

 
62
%
 
$
52,059

 
63
%
 
$
51,604

 
63
%
 
$
51,935

 
64
%
Commercial Banking
24,414

 
26

 
21,525

 
26

 
20,974

 
25

 
21,227

 
26

 
20,361

 
25

Vehicle Finance
646

 
1

 
366

 

 
347

 

 
359

 

 
322

 

RBHPCG
6,565

 
7

 
6,100

 
7

 
6,113

 
7

 
5,958

 
7

 
5,918

 
7

Treasury / Other (2)
4,739

 
5

 
3,446

 
5

 
3,099

 
5

 
3,101

 
4

 
3,182

 
4

Total deposits
$
93,222

 
100
%
 
$
82,733

 
100
%
 
$
82,592

 
100
%
 
$
82,249

 
100
%
 
$
81,718

 
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)
 
 
 
 
 
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
 
Percent Changes vs.
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
 
 
1Q20
 
2Q19
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
3,413

 
$
680

 
$
672

 
$
514

 
$
518

 
 
402
 %
 
559
 %
Interest-bearing deposits in banks
169

 
150

 
176

 
149

 
135

 
 
13

 
25

Securities:
 
 
 
 
 
 
 
 
 
 
 


 


Trading account securities
39

 
95

 
109

 
137

 
161

 
 
(59
)
 
(76
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 


 


Taxable
11,179

 
11,671

 
11,221

 
11,096

 
10,501

 
 
(4
)
 
6

Tax-exempt
2,728

 
2,753

 
2,791

 
2,820

 
2,970

 
 
(1
)
 
(8
)
Total available-for-sale securities
13,907


14,424


14,012


13,916


13,471

 
 
(4
)
 
3

Held-to-maturity securities - taxable
9,798

 
9,428

 
8,592

 
8,566

 
8,771

 
 
4

 
12

Other securities
474

 
445

 
448

 
437

 
466

 
 
7

 
2

Total securities
24,218


24,392


23,161


23,056


22,869

 
 
(1
)
 
6

Loans held for sale
1,039

 
865

 
950

 
877

 
734

 
 
20

 
42

Loans and leases: (2)
 
 
 
 
 
 
 
 
 
 
 


 


Commercial:
 
 
 
 
 
 
 
 
 
 
 


 


Commercial and industrial
35,284

 
30,849

 
30,373

 
30,632

 
30,644

 
 
14

 
15

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 


 


Construction
1,201

 
1,165

 
1,181

 
1,165

 
1,168

 
 
3

 
3

Commercial
5,885

 
5,566

 
5,625

 
5,762

 
5,732

 
 
6

 
3

Commercial real estate
7,086

 
6,731

 
6,806

 
6,927

 
6,900

 
 
5

 
3

Total commercial
42,370


37,580


37,179


37,559


37,544

 
 
13

 
13

Consumer:
 
 
 
 
 
 
 
 
 
 
 


 


Automobile
12,681

 
12,924

 
12,607

 
12,181

 
12,219

 
 
(2
)
 
4

Home equity
8,897

 
9,026

 
9,192

 
9,353

 
9,482

 
 
(1
)
 
(6
)
Residential mortgage
11,463

 
11,391

 
11,330

 
11,214

 
11,010

 
 
1

 
4

RV and marine
3,706

 
3,590

 
3,564

 
3,528

 
3,413

 
 
3

 
9

Other consumer
1,082

 
1,185

 
1,231

 
1,261

 
1,264

 
 
(9
)
 
(14
)
Total consumer
37,829


38,116


37,924


37,537


37,388

 
 
(1
)
 
1

Total loans and leases
80,199

 
75,696

 
75,103

 
75,096

 
74,932

 
 
6

 
7

Allowance for loan and lease losses
(1,557
)
 
(1,239
)
 
(787
)
 
(799
)
 
(778
)
 
 
(26
)
 
(100
)
Net loans and leases
78,642


74,457


74,316


74,297


74,154

 
 
6

 
6

Total earning assets
109,038


101,783


100,062


99,692


99,188

 
 
7

 
10

Cash and due from banks
1,299

 
914

 
864

 
817

 
835

 
 
42

 
56

Intangible assets
2,206

 
2,217

 
2,228

 
2,240

 
2,252

 
 

 
(2
)
All other assets
7,205

 
6,472

 
6,346

 
6,216

 
5,982

 
 
11

 
20

Total assets
$
118,191


$
110,147


$
108,713


$
108,166


$
107,479

 
 
7
 %
 
10
 %
Liabilities and shareholders’ equity

 
 
 
 
 
 
 
 
 
 


 


Interest-bearing deposits:

 
 
 
 
 
 
 
 
 
 


 


Demand deposits - interest-bearing
$
23,878

 
$
21,202

 
$
20,140

 
$
19,796

 
$
19,693

 
 
13
 %
 
21
 %
Money market deposits
25,728

 
24,697

 
24,560

 
24,266

 
23,305

 
 
4

 
10

Savings and other domestic deposits
10,609

 
9,632

 
9,552

 
9,681

 
10,105

 
 
10

 
5

Core certificates of deposit (3)
3,003

 
3,943

 
4,795

 
5,666

 
5,860

 
 
(24
)
 
(49
)
Other domestic deposits of $250,000 or more
230

 
321

 
313

 
315

 
310

 
 
(28
)
 
(26
)
Brokered deposits and negotiable CDs
4,114

 
2,884

 
2,589

 
2,599

 
2,685

 
 
43

 
53

Total interest-bearing deposits
67,562


62,679


61,949


62,323


61,958

 
 
8

 
9

Short-term borrowings
826

 
3,383

 
1,965

 
2,331

 
3,166

 
 
(76
)
 
(74
)
Long-term debt
9,802

 
10,076

 
9,886

 
9,536

 
8,914

 
 
(3
)
 
10

Total interest-bearing liabilities
78,190


76,138


73,800


74,190


74,038

 
 
3

 
6

Demand deposits - noninterest-bearing
25,660

 
20,054

 
20,643

 
19,926

 
19,760

 
 
28

 
30

All other liabilities
2,396

 
2,319

 
2,386

 
2,336

 
2,206

 
 
3

 
9

Shareholders’ equity
11,945

 
11,636

 
11,884

 
11,714

 
11,475

 
 
3

 
4

Total liabilities and shareholders’ equity
$
118,191


$
110,147


$
108,713


$
108,166


$
107,479

 
 
7
 %
 
10
 %
(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
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
1

 
$
2

 
$
3

 
$
3

 
$
3

Interest-bearing deposits in banks

 
1

 
1

 
1

 

Securities:
 
 
 
 
 
 
 
 
 
Trading account securities

 
1

 
1

 

 
1

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Taxable
65

 
76

 
73

 
74

 
72

Tax-exempt
19

 
23

 
24

 
26

 
27

Total available-for-sale securities
84

 
99

 
97

 
100

 
99

Held-to-maturity securities - taxable
58

 
59

 
54

 
54

 
56

Other securities
1

 
2

 
3

 
3

 
4

Total securities
143


161


155


157


160

Loans held for sale
9

 
7

 
8

 
9

 
7

Loans and leases:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
323

 
318

 
335

 
358

 
373

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
11

 
14

 
15

 
16

 
17

Commercial
43

 
56

 
63

 
68

 
71

Commercial real estate
54

 
70

 
78

 
84

 
88

Total commercial
377


388


413


442


461

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
121

 
130

 
131

 
126

 
123

Home equity
82

 
107

 
117

 
127

 
131

Residential mortgage
101

 
105

 
105

 
107

 
106

RV and marine
43

 
44

 
45

 
44

 
42

Other consumer
30

 
36

 
39

 
42

 
42

Total consumer
377

 
422

 
437

 
446

 
444

Total loans and leases
754


810


850


888


905

Total earning assets
$
907


$
981


$
1,017


$
1,058


$
1,075

 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
Demand deposits - interest-bearing
$
4

 
$
23

 
$
32

 
$
29

 
$
28

Money market deposits
25

 
50

 
61

 
73

 
67

Savings and other domestic deposits
3

 
4

 
5

 
5

 
6

Core certificates of deposit (3)
7

 
19

 
25

 
31

 
32

Other domestic deposits of $250,000 or more
5

 
1

 
3

 
1

 
1

Brokered deposits and negotiable CDs
3

 
8

 
10

 
15

 
16

Total interest-bearing deposits
47


105


136


154


150

Short-term borrowings
1

 
12

 
8

 
13

 
19

Long-term debt
62

 
68

 
87

 
86

 
87

Total interest bearing liabilities
110


185


231


253


256

Net interest income
$
797


$
796


$
786


$
805


$
819

(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
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
Fully-taxable equivalent basis (1)
2020
 
2020
 
2019
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
0.10
%
 
1.08
%
 
1.66
%
 
2.19
%
 
2.38
%
Interest-bearing deposits in banks
0.33

 
1.52

 
1.81

 
2.38

 
2.08

Securities:
 
 
 
 
 
 
 
 
 
Trading account securities
1.99

 
3.21

 
2.45

 
2.36

 
1.92

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Taxable
2.30

 
2.62

 
2.63

 
2.67

 
2.73

Tax-exempt
2.75

 
3.30

 
3.43

 
3.63

 
3.66

Total available-for-sale securities
2.39

 
2.75

 
2.79

 
2.87

 
2.94

Held-to-maturity securities - taxable
2.39

 
2.50

 
2.50

 
2.51

 
2.54

Other securities
0.57

 
2.07

 
2.57

 
3.15

 
3.44

Total securities
2.35

 
2.64

 
2.68

 
2.74

 
2.79

Loans held for sale
3.22

 
3.39

 
3.40

 
3.69

 
4.00

Loans and leases: (3)
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
3.62

 
4.12

 
4.31

 
4.57

 
4.82

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
3.66

 
4.75

 
5.07

 
5.50

 
5.59

Commercial
2.94

 
4.00

 
4.36

 
4.67

 
4.88

Commercial real estate
3.06

 
4.13

 
4.48

 
4.81

 
5.00

Total commercial
3.53

 
4.12

 
4.34

 
4.61

 
4.85

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
3.84

 
4.05

 
4.15

 
4.09

 
4.02

Home equity
3.73

 
4.75

 
5.03

 
5.38

 
5.56

Residential mortgage
3.51

 
3.70

 
3.73

 
3.80

 
3.84

RV and marine
4.71

 
4.91

 
4.96

 
4.96

 
4.94

Other consumer
11.10

 
12.39

 
12.71

 
13.34

 
13.29

Total consumer
4.00

 
4.45

 
4.59

 
4.72

 
4.76

Total loans and leases
3.75

 
4.29

 
4.47

 
4.67

 
4.80

Total earning assets
3.35

 
3.88

 
4.03

 
4.21

 
4.35

Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
Demand deposits - interest-bearing
0.07

 
0.43

 
0.63

 
0.57

 
0.58

Money market deposits
0.40

 
0.81

 
0.99

 
1.20

 
1.15

Savings and other domestic deposits
0.10

 
0.17

 
0.20

 
0.22

 
0.23

Core certificates of deposit (4)
1.55

 
1.91

 
2.09

 
2.17

 
2.15

Other domestic deposits of $250,000 or more
1.25

 
1.56

 
1.70

 
1.85

 
1.92

Brokered deposits and negotiable CDs
0.18

 
1.22

 
1.67

 
2.21

 
2.39

Total interest-bearing deposits
0.28

 
0.68

 
0.87

 
0.98

 
0.97

Short-term borrowings
0.47

 
1.46

 
1.66

 
2.28

 
2.41

Long-term debt
2.58

 
2.70

 
3.50

 
3.59

 
3.91

Total interest-bearing liabilities
0.57

 
0.98

 
1.24

 
1.36

 
1.39

Demand deposits - noninterest-bearing

 

 

 

 

Net interest rate spread
2.78

 
2.90

 
2.79

 
2.85

 
2.96

Impact of noninterest-bearing funds on margin
0.16

 
0.24

 
0.33

 
0.35

 
0.35

Net interest margin
2.94
%
 
3.14
%
 
3.12
%
 
3.20
%
 
3.31
%
Commercial Loan Derivative Impact
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Average Rates
 
2020
 
2020
 
2019
 
2019
 
2019
Fully-taxable equivalent basis (1)
Second
 
First
 
Fourth
 
Third
 
Second
Commercial loans (2)(3)
3.17
%
 
4.08
%
 
4.36
 %
 
4.70
 %
 
4.88
 %
Impact of commercial loan derivatives
0.36

 
0.04

 
(0.02
)
 
(0.09
)
 
(0.03
)
Total commercial - as reported
3.53
%
 
4.12
%
 
4.34
 %
 
4.61
 %
 
4.85
 %
 
 
 
 
 
 
 
 
 
 
Average 1 Month LIBOR
0.36
%
 
1.41
%
 
1.79
 %
 
2.18
 %
 
2.44
 %
(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)
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
2020
 
2020
 
2019
 
2019
 
2019
Interest income
$
902

 
$
975

 
$
1,011

 
$
1,052

 
$
1,068

Interest expense
110

 
185

 
231

 
253

 
256

Net interest income
792

 
790

 
780

 
799

 
812

Provision for credit losses
327

 
441

 
79

 
82

 
59

Net interest income after provision for credit losses
465

 
349

 
701

 
717

 
753

Service charges on deposit accounts
60

 
87

 
95

 
98

 
92

Card and payment processing income
59

 
58

 
64

 
64

 
63

Trust and investment management services
45

 
47

 
47

 
44

 
43

Mortgage banking income
96

 
58

 
58

 
54

 
34

Capital markets fees
31

 
33

 
31

 
36

 
34

Insurance income
25

 
23

 
24

 
20

 
23

Bank owned life insurance income
17

 
16

 
17

 
18

 
15

Gain on sale of loans and leases
8

 
8

 
16

 
13

 
13

Net (losses) gains on sales of securities
(1
)
 

 
(22
)
 

 
(2
)
Other noninterest income
51

 
31

 
42

 
42

 
59

Total noninterest income
391

 
361

 
372

 
389

 
374

Personnel costs
418

 
395

 
426

 
406

 
428

Outside data processing and other services
90

 
85

 
89

 
87

 
89

Equipment
46

 
41

 
42

 
41

 
40

Net occupancy
39

 
40

 
41

 
38

 
38

Professional services
11

 
11

 
14

 
16

 
12

Amortization of intangibles
10

 
11

 
12

 
12

 
12

Marketing
5

 
9

 
9

 
10

 
11

Deposit and other insurance expense
9

 
9

 
10

 
8

 
8

Other noninterest expense
47

 
51

 
58

 
49

 
62

Total noninterest expense
675

 
652

 
701

 
667

 
700

Income before income taxes
181

 
58

 
372

 
439

 
427

Provision for income taxes
31

 
10

 
55

 
67

 
63

Net income
150

 
48

 
317

 
372

 
364

Dividends on preferred shares
19

 
18

 
19

 
18

 
18

Net income applicable to common shares
$
131

 
$
30

 
$
298

 
$
354

 
$
346

 
 
 
 
 
 
 
 
 
 
Average common shares - basic
1,016

 
1,018

 
1,029

 
1,035

 
1,045

Average common shares - diluted
1,029

 
1,035

 
1,047

 
1,051

 
1,060

 
 
 
 
 
 
 
 
 
 
Per common share
 
 
 
 
 
 
 
 
 
Net income - basic
$
0.13

 
$
0.03

 
$
0.29

 
$
0.34

 
$
0.33

Net income - diluted
0.13

 
0.03

 
0.28

 
0.34

 
0.33

Cash dividends declared
0.15

 
0.15

 
0.15

 
0.15

 
0.14

 
 
 
 
 
 
 
 
 
 
Revenue - fully-taxable equivalent (FTE)
 
 
 
 
 
 
 
 
 
Net interest income
$
792

 
$
790

 
$
780

 
$
799

 
$
812

FTE adjustment
5

 
6

 
6

 
6

 
7

Net interest income (1)
797

 
796

 
786

 
805

 
819

Noninterest income
391

 
361

 
372

 
389

 
374

Total revenue (1)
$
1,188

 
$
1,157

 
$
1,158

 
$
1,194

 
$
1,193

(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
 
 
 
 
 
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
 
Percent Changes vs.
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
 
 
1Q20
 
2Q19
Net origination and secondary marketing income
$
91

 
$
45

 
$
43

 
$
42

 
$
30

 
 
102
 %
 
203
 %
Net mortgage servicing income
 
 
 
 
 
 
 
 
 
 
 

 

          Loan servicing income
14

 
16

 
15

 
15

 
15

 
 
(13
)
 
(7
)
          Amortization of capitalized servicing
(12
)
 
(9
)
 
(13
)
 
(13
)
 
(10
)
 
 
(33
)
 
(20
)
    Operating income
2

 
7

 
2

 
2

 
5

 
 
(71
)
 
(60
)
          MSR valuation adjustment (1)
(6
)
 
(53
)
 
25

 
(11
)
 
(19
)
 
 
89

 
68

          Gains (losses) due to MSR hedging
6

 
57

 
(14
)
 
19

 
17

 
 
(89
)
 
(65
)
     Net MSR risk management


4


11


8


(2
)
 
 
(100
)
 
100

Total net mortgage servicing income
$
2

 
$
11

 
$
13

 
$
10

 
$
3

 
 
(82
)%
 
(33
)%
All other
3

 
2

 
2

 
2

 
1

 
 
50

 
200

Mortgage banking income
$
96

 
$
58

 
$
58

 
$
54

 
$
34

 
 
66
 %
 
182
 %

 
 
 
 
 
 
 
 
 
 
 


 


Mortgage origination volume
$
3,802

 
$
2,136

 
$
2,490

 
$
2,097

 
$
1,922

 
 
78
 %
 
98
 %
Mortgage origination volume for sale
2,268

 
1,409

 
1,518

 
1,483

 
1,181

 
 
61

 
92


 
 
 
 
 
 
 
 
 
 
 


 


Third party mortgage loans serviced (2)
23,184

 
22,775

 
22,425

 
21,674

 
21,486

 
 
2

 
8

Mortgage servicing rights (2)
172

 
165

 
212

 
180

 
192

 
 
4

 
(10
)
MSR % of investor servicing portfolio (2)
0.74
%
 
0.72
%
 
0.95
%
 
0.83
%
 
0.90
%
 
 
3
 %
 
(18
)%
(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
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Allowance for loan and lease losses, beginning of period
$
1,504

 
$
783

 
$
780

 
$
774

 
$
764

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)

 
391

 

 

 

Loan and lease losses
(123
)
 
(136
)
 
(93
)
 
(102
)
 
(70
)
Recoveries of loans previously charged off
16

 
19

 
20

 
29

 
22

Net loan and lease losses
(107
)
 
(117
)
 
(73
)
 
(73
)
 
(48
)
Provision for loan and lease losses
305

 
447

 
77

 
79

 
58

Allowance of assets sold or transferred to loans held for sale

 

 
(1
)
 

 

Allowance for loan and lease losses, end of period
1,702

 
1,504

 
783

 
780

 
774

Allowance for unfunded loan commitments and letters of credit, beginning of period
99

 
104

 
101

 
101

 
100

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)

 
2

 

 

 

Provision for (reduction in) unfunded loan commitments and letters of credit losses
22

 
(6
)
 
2

 
3

 
1

Unfunded commitment losses
(2
)
 
(1
)
 
(2
)
 

 

Allowance for unfunded loan commitments and letters of credit, end of period
119


99


101


104


101

Total allowance for credit losses, end of period
$
1,821

 
$
1,603

 
$
884

 
$
884

 
$
875

Allowance for loan and lease losses (ALLL) as % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
2.12
%
 
1.93
%
 
1.04
%
 
1.04
%
 
1.03
%
Nonaccrual loans and leases (NALs)
263

 
270

 
167

 
178

 
182

Nonperforming assets (NPAs)
239

 
257

 
157

 
163

 
168

Total allowance for credit losses (ACL) as % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
2.27
%
 
2.05
%
 
1.18
%
 
1.18
%
 
1.17
%
Nonaccrual loans and leases (NALs)
281

 
287

 
190

 
201

 
206

Nonperforming assets (NPAs)
255

 
273

 
178

 
184

 
190



12














Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)
 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Net charge-offs by loan and lease type:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
80

 
$
84

 
$
36

 
$
40

 
$
21

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
1

 

 

 
(1
)
 
(1
)
Commercial
(1
)
 
(1
)
 

 
(1
)
 
(2
)
Commercial real estate


(1
)



(2
)

(3
)
Total commercial
80


83


36


38


18

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
10

 
7

 
9

 
8

 
5

Home equity

 
5

 
1

 
2

 
2

Residential mortgage

 
1

 
1

 
1

 
1

RV and marine
4

 
2

 
4

 
2

 
2

Other consumer
13

 
19

 
22

 
22

 
20

Total consumer
27

 
34

 
37

 
35

 
30

Total net charge-offs
$
107

 
$
117

 
$
73

 
$
73

 
$
48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
2020
 
2020
 
2019
 
2019
 
2019
Net charge-offs - annualized percentages:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
0.90
 %
 
1.09
 %
 
0.47
 %
 
0.52
 %
 
0.27
 %
Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
(0.01
)
 
0.08

 
(0.03
)
 
(0.40
)
 
(0.08
)
Commercial
(0.03
)
 
(0.06
)
 
0.01

 
(0.09
)
 
(0.12
)
Commercial real estate
(0.03
)
 
(0.03
)
 

 
(0.14
)
 
(0.12
)
Total commercial
0.75

 
0.89

 
0.38

 
0.40

 
0.20

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
0.31

 
0.22

 
0.30

 
0.26

 
0.17

Home equity
0.08

 
0.19

 
0.02

 
0.11

 
0.07

Residential mortgage
0.02

 
0.02

 
0.04

 
0.03

 
0.05

RV and marine
0.37

 
0.27

 
0.39

 
0.23

 
0.25

Other consumer
4.80

 
6.45

 
7.26

 
7.07

 
6.02

Total consumer
0.30

 
0.35

 
0.39

 
0.38

 
0.31

Net charge-offs as a % of average loans
0.54
 %
 
0.62
 %
 
0.39
 %
 
0.39
 %
 
0.25
 %




13














Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Nonaccrual loans and leases (NALs):
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
485

 
$
396

 
$
323

 
$
291

 
$
281

Commercial real estate
28

 
30

 
10

 
12

 
17

Automobile
8

 
6

 
4

 
5

 
4

Home equity
59

 
58

 
59

 
60

 
60

Residential mortgage
66

 
66

 
71

 
69

 
62

RV and marine
2

 
2

 
1

 
1

 
1

Other consumer

 

 

 

 

Total nonaccrual loans and leases
648

 
558

 
468

 
438

 
425

Other real estate, net:
 
 
 
 
 
 
 
 
 
Residential
5

 
8

 
9

 
10

 
10

Commercial
2

 
2

 
2

 
2

 
4

Total other real estate, net
7

 
10

 
11

 
12

 
14

Other NPAs (1)
58

 
18

 
19

 
32

 
21

Total nonperforming assets
$
713


$
586


$
498


$
482


$
460

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans and leases as a % of total loans and leases
0.81
%
 
0.72
%
 
0.62
%
 
0.58
%
 
0.57
%
NPA ratio (2)
0.89

 
0.75

 
0.66

 
0.64

 
0.61

(NPA+90days)/(Loan+OREO) (3)
1.13

 
0.96

 
0.89

 
0.86

 
0.82


 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Nonperforming assets, beginning of period
$
586

 
$
498

 
$
482

 
$
460

 
$
461

New nonperforming assets
279

 
274

 
175

 
165

 
117

Returns to accruing status
(25
)
 
(18
)
 
(20
)
 
(24
)
 
(16
)
Loan and lease losses
(61
)
 
(91
)
 
(48
)
 
(66
)
 
(34
)
Payments
(63
)
 
(70
)
 
(63
)
 
(38
)
 
(54
)
Sales
(3
)
 
(7
)
 
(28
)
 
(15
)
 
(14
)
Nonperforming assets, end of period
$
713

 
$
586

 
$
498

 
$
482

 
$
460

(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)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Accruing loans and leases past due 90+ days:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
13

 
$
10

 
$
11

 
$
9

 
$
5

Commercial real estate

 

 

 

 

Automobile
8

 
8

 
8

 
8

 
7

Home equity
10

 
12

 
14

 
13

 
15

Residential mortgage (excluding loans guaranteed by the U.S. Government)
17

 
21

 
20

 
23

 
27

RV and marine
2

 
2

 
2

 
1

 
1

Other consumer
3

 
4

 
7

 
7

 
5

Total, excl. loans guaranteed by the U.S. Government
53


57


62


61


60

Add: loans guaranteed by U.S. Government
141

 
110

 
109

 
102

 
92

Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government
$
194


$
167


$
171


$
163


$
152

 
 
 
 
 
 
 
 
 
 
Ratios:
 
 
 
 
 
 
 
 
 
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.07
%
 
0.07
%
 
0.08
%
 
0.08
%
 
0.08
%
Guaranteed by U.S. Government, as a percent of total loans and leases
0.18

 
0.14

 
0.14

 
0.14

 
0.12

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.24

 
0.21

 
0.23

 
0.22

 
0.20

 
 
 
 
 
 
 
 
 
 
Accruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
192

 
$
219

 
$
213

 
$
225

 
$
245

Commercial real estate
35

 
37

 
37

 
40

 
48

Automobile
52

 
42

 
40

 
39

 
37

Home equity
209

 
219

 
226

 
233

 
241

Residential mortgage
229

 
227

 
223

 
221

 
221

RV and marine
6

 
3

 
3

 
3

 
2

Other consumer
10

 
11

 
11

 
10

 
10

Total accruing troubled debt restructured loans
$
733

 
$
758

 
$
753

 
$
771

 
$
804

 
 
 
 
 
 
 
 
 
 
Nonaccruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
169

 
$
119

 
$
109

 
$
84

 
$
88

Commercial real estate
3

 
4

 
6

 
6

 
6

Automobile
2

 
2

 
2

 
3

 
3

Home equity
26

 
25

 
26

 
26

 
26

Residential mortgage
43

 
42

 
42

 
44

 
43

RV and marine
1

 
2

 
1

 
1

 
1

Other consumer

 

 

 

 

Total nonaccruing troubled debt restructured loans
$
244

 
$
194

 
$
186

 
$
164

 
$
167





15














Huntington Bancshares Incorporated
Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Common equity tier 1 risk-based capital ratio: (1)
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
12,314

 
$
11,769

 
$
11,795

 
$
11,909

 
$
11,668

Regulatory capital adjustments:
 
 
 
 
 
 
 
 
 
CECL transitional amount (2)
442

 
386

 

 

 

Shareholders’ preferred equity
(1,701
)
 
(1,207
)
 
(1,207
)
 
(1,207
)
 
(1,207
)
Accumulated other comprehensive income offset
(290
)
 
(227
)
 
256

 
175

 
273

Goodwill and other intangibles, net of related taxes
(2,129
)
 
(2,141
)
 
(2,153
)
 
(2,162
)
 
(2,174
)
Deferred tax assets that arise from tax loss and credit carryforwards
(40
)
 
(42
)
 
(44
)
 
(30
)
 
(30
)
Common equity tier 1 capital
8,596

 
8,538

 
8,647


8,685

 
8,530

Additional tier 1 capital
 
 
 
 
 
 
 
 
 
Shareholders’ preferred equity
1,701

 
1,207

 
1,207

 
1,207

 
1,207

Other

 
1

 

 
1

 

Tier 1 capital
10,297

 
9,746

 
9,854


9,893

 
9,737

Long-term debt and other tier 2 qualifying instruments
697

 
619

 
672

 
750

 
727

Qualifying allowance for loan and lease losses
1,094

 
1,127

 
887

 
884

 
875

Tier 2 capital
1,791

 
1,746

 
1,559


1,634

 
1,602

Total risk-based capital
$
12,088

 
$
11,492

 
$
11,413

 
$
11,527

 
$
11,339

Risk-weighted assets (RWA)(1)
$
87,324

 
$
90,193

 
$
87,512

 
$
86,719

 
$
86,332

Common equity tier 1 risk-based capital ratio (1)
9.84
%
 
9.47
%
 
9.88
%
 
10.02
%
 
9.88
%
Other regulatory capital data:
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio (1)
8.86

 
9.01

 
9.26

 
9.34

 
9.24

Tier 1 risk-based capital ratio (1)
11.79

 
10.81

 
11.26

 
11.41

 
11.28

Total risk-based capital ratio (1)
13.84

 
12.74

 
13.04

 
13.29

 
13.13

Non-regulatory capital data:
 
 
 
 
 
 
 
 
 
Tangible common equity / RWA ratio (1)
9.69

 
9.32

 
9.62

 
9.83

 
9.58

(1)
June 30, 2020, figures are estimated.
(2)
The CECL transitional amount includes the impact of Huntington's adoption of the new CECL accounting standard on January 1, 2020 and 25 percent of the increase in reserves from January 1, 2020 through June 30, 2020.

16














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

2020
 
2020
 
2019
 
2019
 
2019
Dividends, per share
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.15

 
$
0.15

 
$
0.15

 
$
0.15

 
$
0.14

Common shares outstanding
 
 
 
 
 
 
 
 
 
Average - basic
1,016

 
1,018

 
1,029

 
1,035

 
1,045

Average - diluted
1,029

 
1,035

 
1,047

 
1,051

 
1,060

Ending
1,017

 
1,014

 
1,020

 
1,033

 
1,038

Tangible book value per common share (1)
$
8.32

 
$
8.28

 
$
8.25

 
$
8.25

 
$
7.97

Common share repurchases
 
 
 
 
 
 
 
 
 
Number of shares repurchased

 
7

 
13

 
5

 
11

Non-regulatory capital
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Calculation of tangible equity / asset ratio:
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
12,314

 
$
11,769

 
$
11,795

 
$
11,909

 
$
11,668

Less: goodwill
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
Less: other intangible assets
(211
)
 
(222
)
 
(232
)
 
(244
)
 
(257
)
Add: related deferred tax liability (1)
44

 
47

 
49

 
51

 
54

Total tangible equity
10,157

 
9,604

 
9,622

 
9,726

 
9,475

Less: preferred equity
(1,697
)
 
(1,203
)
 
(1,203
)
 
(1,203
)
 
(1,203
)
Total tangible common equity
$
8,460

 
$
8,401

 
$
8,419

 
$
8,523

 
$
8,272

Total assets
$
118,425

 
$
113,897

 
$
109,002

 
$
108,735

 
$
108,247

Less: goodwill
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
Less: other intangible assets
(211
)
 
(222
)
 
(232
)
 
(244
)
 
(257
)
Add: related deferred tax liability (1)
44

 
47

 
49

 
51

 
54

Total tangible assets
$
116,268

 
$
111,732

 
$
106,829

 
$
106,552

 
$
106,054

Tangible equity / tangible asset ratio
8.74
%
 
8.60
%
 
9.01
%
 
9.13
%
 
8.93
%
Tangible common equity / tangible asset ratio
7.28

 
7.52

 
7.88

 
8.00

 
7.80

Other data:
 
 
 
 
 
 
 
 
 
Number of employees (Average full-time equivalent)
15,703

 
15,386

 
15,495

 
15,659

 
15,780

Number of domestic full-service branches (2)
839

 
839

 
868

 
868

 
868

ATM Count
1,344

 
1,434

 
1,448

 
1,442

 
1,687

(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 Year To Date Average Balance Sheets
(Unaudited)
 
YTD Average Balances (1)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions)
2020
 
2019
 
Amount
 
Percent
Assets
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
2,047

 
$
510

 
$
1,537

 
301
 %
Interest-bearing deposits in banks
159

 
122

 
37

 
30

Securities:
 
 
 
 
 
 


Trading account securities
67

 
149

 
(82
)
 
(55
)
Available-for-sale securities:
 
 
 
 


 


Taxable
11,425

 
10,626

 
799

 
8

Tax-exempt
2,740

 
3,008

 
(268
)
 
(9
)
Total available-for-sale securities
14,165


13,634


531

 
4

Held-to-maturity securities - taxable
9,613

 
8,713

 
900

 
10

Other securities
460

 
501

 
(41
)
 
(8
)
Total securities
24,305


22,997


1,839

 
6

Loans held for sale
952

 
717

 
235

 
33

Loans and leases: (2)
 
 
 
 
 
 


Commercial:
 
 
 
 
 
 


Commercial and industrial
33,066

 
30,595

 
2,471

 
8

Commercial real estate:
 
 
 
 
 
 


Construction
1,183

 
1,171

 
12

 
1

Commercial
5,726

 
5,710

 
16

 

Commercial real estate
6,909


6,881


28

 

Total commercial
39,975


37,476


2,499

 
7

Consumer:
 
 
 
 
 
 


Automobile
12,803

 
12,290

 
513

 
4

Home equity
8,961

 
9,561

 
(600
)
 
(6
)
Residential mortgage
11,427

 
10,899

 
528

 
5

RV and marine
3,648

 
3,355

 
293

 
9

Other consumer
1,133

 
1,273

 
(140
)
 
(11
)
Total consumer
37,972


37,378


594

 
2

Total loans and leases
77,947


74,854


3,093

 
4

Allowance for loan and lease losses
(1,398
)
 
(779
)
 
(619
)
 
(79
)
Net loans and leases
76,549

 
74,075

 
2,474

 
3

Total earning assets
105,410


99,200

 
6,210

 
6

Cash and due from banks
1,106

 
844

 
262

 
31

Intangible assets
2,211

 
2,258

 
(47
)
 
(2
)
All other assets
6,840

 
5,972

 
868

 
15

Total assets
$
114,169

 
$
107,495

 
6,674

 
6
 %
Liabilities and shareholders’ equity
 
 
 
 
 
 


Interest-bearing deposits:
 
 
 
 
 
 


Demand deposits - interest-bearing
$
22,540

 
$
19,746

 
$
2,794

 
14
 %
Money market deposits
25,213

 
23,121

 
2,092

 
9

Savings and other domestic deposits
10,120

 
10,222

 
(102
)
 
(1
)
Core certificates of deposit (3)
3,028

 
5,955

 
(2,927
)
 
(49
)
Other domestic deposits of $250,000 or more
720

 
323

 
397

 
123

Brokered deposits and negotiable CDs
3,499

 
3,042

 
457

 
15

Total interest-bearing deposits
65,120


62,409


2,711

 
4

Short-term borrowings
2,105

 
2,745

 
(640
)
 
(23
)
Long-term debt
9,939

 
8,946

 
993

 
11

Total interest-bearing liabilities
77,164

 
74,100

 
3,064

 
4

Demand deposits - noninterest-bearing
22,857

 
19,833

 
3,024

 
15

All other liabilities
2,358

 
2,245

 
113

 
5

Shareholders’ equity
11,790

 
11,317

 
473

 
4

Total liabilities and shareholders’ equity
$
114,169

 
$
107,495

 
$
6,674

 
6
 %
(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.


18














Huntington Bancshares Incorporated
Consolidated Year To Date Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
 
YTD Interest Income / Expense
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Assets
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
3

 
$
6

Interest-bearing deposits in banks
1

 
1

Securities:
 
 
 
Trading account securities
1

 
2

Available-for-sale securities:
 
 
 
Taxable
141

 
148

Tax-exempt
42

 
55

Total available-for-sale securities
183

 
203

Held-to-maturity securities - taxable
117

 
110

Other securities
3

 
10

Total securities
304


325

Loans held for sale
16

 
14

Loans and leases:
 
 
 
Commercial:
 
 
 
Commercial and industrial
641

 
748

Commercial real estate:
 
 
 
Construction
25

 
33

Commercial
99

 
142

Commercial real estate
124

 
175

Total commercial
765

 
923

Consumer:
 
 
 
Automobile
251

 
243

Home equity
189

 
264

Residential mortgage
206

 
210

RV and marine
87

 
82

Other consumer
66

 
84

Total consumer
799

 
883

Total loans and leases
1,564


1,806

Total earning assets
$
1,888


$
2,152

Liabilities
 
 
 
Interest-bearing deposits:
 
 
 
Demand deposits - interest-bearing
$
27

 
$
55

Money market deposits
75

 
126

Savings and other domestic deposits
7

 
12

Core certificates of deposit (3)
26

 
63

Other domestic deposits of $250,000 or more
6

 
3

Brokered deposits and negotiable CDs
11

 
36

Total interest-bearing deposits
152

 
295

Short-term borrowings
13

 
33

Long-term debt
130

 
176

Total interest-bearing liabilities
295

 
504

Net interest income
$
1,593

 
$
1,648

(1)
Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. 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)
Includes consumer certificates of deposit of $250,000 or more.

19














Huntington Bancshares Incorporated
Consolidated Year To Date Net Interest Margin - Yield
(Unaudited)
 
YTD Average Rates
 
Six Months Ended June 30,
Fully-taxable equivalent basis (1)
2020
 
2019
Assets
 
 
 
Interest-bearing deposits in Federal Reserve Bank
0.26
%
 
2.39
%
Interest-bearing deposits in banks
0.89

 
1.93

Securities:
 
 
 
Trading account securities
2.86

 
1.97

Available-for-sale securities:
 
 
 
Taxable
2.46

 
2.78

Tax-exempt
3.03

 
3.68

Total available-for-sale securities
2.57

 
2.98

Held-to-maturity securities - taxable
2.44

 
2.53

Other securities
1.30

 
4.01

Total securities
2.50

 
2.82

Loans held for sale
3.30

 
4.04

Loans and leases: (3)
 
 
 
Commercial:
 
 
 
Commercial and industrial
3.86

 
4.87

Commercial real estate:
 
 
 
Construction
4.19

 
5.58

Commercial
3.45

 
4.94

Commercial real estate
3.58

 
5.05

Total commercial
3.81

 
4.90

Consumer:
 
 
 
Automobile
3.95

 
3.98

Home equity
4.24

 
5.57

Residential mortgage
3.60

 
3.85

RV and marine
4.81

 
4.95

Other consumer
11.77

 
13.27

Total consumer
4.23

 
4.75

Total loans and leases
4.01

 
4.83

Total earning assets
3.60
%
 
4.38
%
Liabilities
 
 
 
Interest-bearing deposits:
 
 
 
Demand deposits - interest-bearing
0.24
%
 
0.57
%
Money market deposits
0.60

 
1.10

Savings and other domestic deposits
0.14

 
0.23

Core certificates of deposit (4)
1.71

 
2.13

Other domestic deposits of $250,000 or more
1.81

 
1.87

Brokered deposits and negotiable CDs
0.61

 
2.39

Total interest-bearing deposits
0.47

 
0.95

Short-term borrowings
1.26

 
2.41

Long-term debt
2.64

 
3.95

Total interest-bearing liabilities
0.77

 
1.37

Demand deposits - noninterest-bearing

 

Net interest rate spread
2.83

 
3.01

Impact of noninterest-bearing funds on margin
0.21

 
0.34

Net interest margin
3.04
%
 
3.35
%
Commercial Loan Derivative Impact
 
 
 
 (Unaudited)
 
 
 
 
YTD Average Rates
 
Six Months Ended June 30,
Fully-taxable equivalent basis (1)
2020
 
2019
Commercial loans (2)(3)
3.60
%
 
4.91
 %
Impact of commercial loan derivatives
0.21

 
(0.01
)
Total commercial - as reported
3.81
%
 
4.90
 %
 
 
 
 
Average 1 Month LIBOR
0.90
%
 
2.47
 %
(1)
Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 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 the impact of nonaccrual loans.
(4)
Includes consumer certificates of deposit of $250,000 or more.

20














Huntington Bancshares Incorporated
Selected Year To Date Income Statement Data
(Unaudited)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions, except per share data)
2020
 
2019
 
Amount
 
Percent
Interest income
$
1,877

 
$
2,138

 
$
(261
)
 
(12
)%
Interest expense
295

 
504

 
(209
)
 
(41
)
Net interest income
1,582


1,634


(52
)
 
(3
)
Provision for credit losses
768

 
126

 
642

 
510

Net interest income after provision for credit losses
814

 
1,508

 
(694
)
 
(46
)
Service charges on deposit accounts
148

 
179

 
(31
)
 
(17
)
Card and payment processing income
117

 
119

 
(2
)
 
(2
)
Mortgage banking income
154

 
55

 
99

 
180

Trust and investment management services
92

 
87

 
5

 
6

Insurance income
48

 
44

 
4

 
9

Capital markets fees
64

 
56

 
8

 
14

Bank owned life insurance income
32

 
31

 
1

 
3

Gain on sale of loans and leases
17

 
26

 
(9
)
 
(35
)
Net (losses) gains on sales of securities
(1
)
 
(2
)
 
1

 
50

Other noninterest income
81

 
98

 
(17
)
 
(17
)
Total noninterest income
752

 
693

 
59

 
9

Personnel costs
814

 
822

 
(8
)
 
(1
)
Outside data processing and other services
175

 
170

 
5

 
3

Equipment
87

 
80

 
7

 
9

Net occupancy
79

 
80

 
(1
)
 
(1
)
Professional services
22

 
24

 
(2
)
 
(8
)
Amortization of intangibles
21

 
25

 
(4
)
 
(16
)
Marketing
14

 
18

 
(4
)
 
(22
)
Deposit and other insurance expense
18

 
16

 
2

 
13

Other noninterest expense
97

 
118

 
(21
)
 
(18
)
Total noninterest expense
1,327

 
1,353

 
(26
)
 
(2
)
Income before income taxes
239

 
848

 
(609
)
 
(72
)
Provision for income taxes
41

 
126

 
(85
)
 
(67
)
Net income
198

 
722

 
(524
)
 
(73
)
Dividends on preferred shares
37

 
37

 

 

Net income applicable to common shares
$
161

 
$
685

 
$
(524
)
 
(76
)%
Average common shares - basic
1,017

 
1,046

 
(29
)
 
(3
)
Average common shares - diluted
1,032

 
1,063

 
(31
)
 
(3
)
Per common share
 
 
 
 
 
 


Net income - basic
$
0.16

 
$
0.66

 
$
(0.50
)
 
(76
)%
Net income - diluted
0.16

 
0.64

 
(0.48
)
 
(75
)
Cash dividends declared
0.30

 
0.28

 
0.02

 
7

Revenue - fully taxable equivalent (FTE)
 
 
 
 
 
 


Net interest income
$
1,582

 
$
1,634

 
$
(52
)
 
(3
)%
FTE adjustment (1)
11

 
14

 
(3
)
 
(21
)
Net interest income
1,593

 
1,648

 
(55
)
 
(3
)
Noninterest income
752

 
693

 
59

 
9

Total revenue (1)
$
2,345

 
$
2,341

 
$
4

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

21














Huntington Bancshares Incorporated
Year To Date Mortgage Banking Noninterest Income
(Unaudited)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions)
2020
 
2019
 
Amount
 
Percent
Net origination and secondary marketing income
$
136

 
$
47

 
89

 
189
 %
Net mortgage servicing income
 
 
 
 


 


          Loan servicing income
30

 
29

 
1

 
3

          Amortization of capitalized servicing
(21
)
 
(19
)
 
(2
)
 
(11
)
     Operating income
9

 
10

 
(1
)
 
(10
)
          MSR valuation adjustment (1)
(59
)
 
(29
)
 
(30
)
 
(103
)
          Gains (losses) due to MSR hedging
63

 
24

 
39

 
163

     Net MSR risk management
4

 
(5
)
 
9

 

Total net mortgage servicing income
$
13

 
$
5

 
$
8

 
160
 %
All other
5

 
3

 
2

 
67

Mortgage banking income
$
154

 
$
55

 
$
99

 
180
 %

 
 
 
 


 


Mortgage origination volume
$
5,938

 
$
3,157

 
$
2,781

 
88
 %
Mortgage origination volume for sale
3,677

 
1,937

 
1,740

 
90

 
 
 
 
 


 


Third party mortgage loans serviced (2)
23,184

 
21,486

 
1,698

 
8

Mortgage servicing rights (2)
172

 
192

 
(20
)
 
(10
)
MSR % of investor servicing portfolio
0.74
%
 
0.90
%
 
(0.16
)%
 
(18
)%
(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
Year To Date Credit Reserves Analysis
(Unaudited)
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Allowance for loan and lease losses, beginning of period
$
783

 
$
772

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)
$
391

 
$

Loan and lease losses
(259
)
 
(167
)
Recoveries of loans previously charged off
35

 
48

Net loan and lease losses
(224
)
 
(119
)
Provision for loan and lease losses
752

 
121

Allowance for loan and lease losses, end of period
1,702

 
774

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

 
$
96

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)
2

 

Provision for (reduction in) unfunded loan commitments and letters of credit losses
16

 
5

Unfunded commitment losses
(3
)
 

Allowance for unfunded loan commitments and letters of credit, end of period
119

 
101

Total allowance for credit losses
$
1,821

 
$
875

Allowance for loan and lease losses (ALLL) as % of:
 
 
 
Total loans and leases
2.12
%
 
1.03
%
Nonaccrual loans and leases (NALs)
263

 
182

Nonperforming assets (NPAs)
239

 
168

Total allowance for credit losses (ACL) as % of:
 
 
 
Total loans and leases
2.27
%
 
1.17
%
Nonaccrual loans and leases (NALs)
281

 
206

Nonperforming assets (NPAs)
255

 
190


23














Huntington Bancshares Incorporated
Year To Date Net Charge-Off Analysis
(Unaudited)
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Net charge-offs by loan and lease type:
 
 
 
Commercial:
 
 
 
Commercial and industrial
$
164

 
$
52

Commercial real estate:
 
 
 
Construction
1

 
(1
)
Commercial
(2
)
 

Commercial real estate
(1
)
 
(1
)
Total commercial
163

 
51

Consumer:
 
 
 
Automobile
17

 
15

Home equity
5

 
5

Residential mortgage
1

 
4

RV and marine
6

 
5

Other consumer
32

 
39

Total consumer
61

 
68

Total net charge-offs
$
224

 
$
119

 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
2020
 
2019
Net charge-offs - annualized percentages:
 
 
 
Commercial:
 
 
 
Commercial and industrial
0.99
 %
 
0.34
 %
Commercial real estate:
 
 
 
Construction
0.04

 
(0.09
)
Commercial
(0.04
)
 

Commercial real estate
(0.03
)
 
(0.02
)
Total commercial
0.81

 
0.27

Consumer:
 
 
 
Automobile
0.26

 
0.24

Home equity
0.14

 
0.10

Residential mortgage
0.02

 
0.08

RV and marine
0.32

 
0.32

Other consumer
5.66

 
6.08

Total consumer
0.33

 
0.36

Net charge-offs as a % of average loans
0.58
 %
 
0.32
 %

24














Huntington Bancshares Incorporated
Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
 
June 30,
(dollar amounts in millions)
2020
 
2019
Nonaccrual loans and leases (NALs):
 
 
 
Commercial and industrial
$
485

 
$
281

Commercial real estate
28

 
17

Automobile
8

 
4

Home equity
59

 
60

Residential mortgage
66

 
62

RV and marine
2

 
1

Other consumer

 

Total nonaccrual loans and leases
648

 
425

Other real estate, net:
 
 
 
Residential
5

 
10

Commercial
2

 
4

Total other real estate, net
7

 
14

Other NPAs (1)
58

 
21

Total nonperforming assets (3)
$
713

 
$
460

 
 
 
 
Nonaccrual loans and leases as a % of total loans and leases
0.81
%
 
0.57
%
NPA ratio (2)
0.89

 
0.61


 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Nonperforming assets, beginning of period
$
498

 
$
387

New nonperforming assets
553

 
335

Returns to accruing status
(43
)
 
(49
)
Loan and lease losses
(152
)
 
(80
)
Payments
(133
)
 
(87
)
Sales and held-for-sale transfers
(10
)
 
(46
)
Nonperforming assets, end of period (2)
$
713

 
$
460

(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)
Nonaccruing troubled debt restructured loans are included in the total nonperforming assets balance.

25














Huntington Bancshares Incorporated
Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans
(Unaudited)
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Accruing loans and leases past due 90+ days:
 
 
 
Commercial and industrial
$
13

 
$
5

Commercial real estate

 

Automobile
8

 
7

Home equity
10

 
15

Residential mortgage (excluding loans guaranteed by the U.S. Government)
17

 
27

RV and marine
2

 
1

Other consumer
3

 
5

Total, excl. loans guaranteed by the U.S. Government
53

 
60

Add: loans guaranteed by U.S. Government
141

 
92

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government
$
194

 
$
152

Ratios:
 
 
 
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.07
%
 
0.08
%
Guaranteed by U.S. Government, as a percent of total loans and leases
0.18

 
0.12

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.24

 
0.20

Accruing troubled debt restructured loans:
 
 
 
Commercial and industrial
$
192

 
$
245

Commercial real estate
35

 
48

Automobile
52

 
37

Home equity
209

 
241

Residential mortgage
229

 
221

RV and marine
6

 
2

Other consumer
10

 
10

Total accruing troubled debt restructured loans
$
733

 
$
804

Nonaccruing troubled debt restructured loans:
 
 
 
Commercial and industrial
$
169

 
$
88

Commercial real estate
3

 
6

Automobile
2

 
3

Home equity
26

 
26

Residential mortgage
43

 
43

RV and marine
1

 
1

Other consumer

 

Total nonaccruing troubled debt restructured loans
$
244

 
$
167






26