Quarterly report pursuant to Section 13 or 15(d)

LOANS / LEASES AND ALLOWANCE FOR CREDIT LOSSES (Tables)

v3.19.2
LOANS / LEASES AND ALLOWANCE FOR CREDIT LOSSES (Tables)
6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Loan and Lease Portfolio
The following table provides a detailed listing of Huntington’s loan and lease portfolio at June 30, 2019 and December 31, 2018.
(dollar amounts in millions)
June 30, 2019
 
December 31, 2018
Loans and leases:
 
 
 
Commercial and industrial
$
30,608

 
$
30,605

Commercial real estate
6,888

 
6,842

Automobile
12,173

 
12,429

Home equity
9,419

 
9,722

Residential mortgage
11,182

 
10,728

RV and marine
3,492

 
3,254

Other consumer
1,271

 
1,320

Loans and leases
$
75,033

 
$
74,900

Allowance for loan and lease losses
(774
)
 
(772
)
Net loans and leases
$
74,259

 
$
74,128


NALs and Past Due Loans
The following table presents NALs by loan class at June 30, 2019 and December 31, 2018.
(dollar amounts in millions)
June 30,
2019
 
December 31,
2018
Commercial and industrial
$
281

 
$
188

Commercial real estate
17

 
15

Automobile
4

 
5

Home equity
60

 
62

Residential mortgage
62

 
69

RV and marine
1

 
1

Other consumer

 

Total nonaccrual loans
$
425

 
$
340


Aging analysis of loans and leases
The following table presents an aging analysis of loans and leases, including past due loans and leases, by loan class at June 30, 2019 and December 31, 2018:
 
June 30, 2019
 
 
Past Due (1)
 
 
 
 Loans Accounted for Under FVO
 
Total Loans
and Leases
 
90 or
more days
past due
and accruing
 
(dollar amounts in millions)
30-59
Days
 
60-89
 Days
 
90 or 
more days
 
Total
 
Current
 
 
 
 
Commercial and industrial
$
52

 
$
19

 
$
81

 
$
152

 
$
30,456

 
$

 
$
30,608

 
$
5

(2)
Commercial real estate
10

 

 
12

 
22

 
6,866

 

 
6,888

 

 
Automobile
77

 
15

 
8

 
100

 
12,073

 

 
12,173

 
7

 
Home equity
50

 
19

 
53

 
122

 
9,296

 
1

 
9,419

 
15

 
Residential mortgage
126

 
40

 
149

 
315

 
10,790

 
77

 
11,182

 
119

(3)
RV and marine
9

 
2

 
2

 
13

 
3,479

 

 
3,492

 
1

 
Other consumer
13

 
7

 
6

 
26

 
1,245

 

 
1,271

 
5

 
Total loans and leases
$
337

 
$
102

 
$
311

 
$
750

 
$
74,205

 
$
78

 
$
75,033

 
$
152

 
 
December 31, 2018
 
 
Past Due (1)
 
 
 
 Loans Accounted for Under FVO
 
Total Loans
and Leases
 
90 or
more days
past due
and accruing
 
(dollar amounts in millions)
30-59
Days
 
60-89
 Days
 
90 or 
more days
 
Total
 
Current
 
 
 
 
Commercial and industrial
72

 
17

 
51

 
140

 
30,465

 

 
30,605

 
7

(2)
Commercial real estate
10

 

 
5

 
15

 
6,827

 

 
6,842

 

 
Automobile
95

 
19

 
10

 
124

 
12,305

 

 
12,429

 
8

 
Home equity
51

 
21

 
56

 
128

 
9,593

 
1

 
9,722

 
17

 
Residential mortgage
108

 
47

 
168

 
323

 
10,327

 
78

 
10,728

 
131

(3)
RV and marine
12

 
3

 
2

 
17

 
3,237

 

 
3,254

 
1

 
Other consumer
14

 
7

 
6

 
27

 
1,293

 

 
1,320

 
6

 
Total loans and leases
$
362

 
$
114

 
$
298

 
$
774

 
$
74,047

 
$
79

 
$
74,900

 
$
170

 
(1)
NALs are included in this aging analysis based on the loan's past due status.
(2)
Amounts include Huntington Technology Finance administrative lease delinquencies.
(3)
Amounts include mortgage loans insured by U.S. government agencies.

ALLL and AULC activity by portfolio segment
The following table presents ALLL and AULC activity by portfolio segment for the three-month and six-month periods ended June 30, 2019 and 2018.
(dollar amounts in millions)
 
Commercial
 
Consumer
 
Total
Three-month period ended June 30, 2019:
 
 
 
 
 
 
ALLL balance, beginning of period
 
$
545

 
$
219

 
$
764

Loan charge-offs
 
(24
)
 
(46
)
 
(70
)
Recoveries of loans previously charged-off
 
6

 
16

 
22

Provision for loan and lease losses
 
33

 
25

 
58

ALLL balance, end of period
 
$
560

 
$
214

 
$
774

AULC balance, beginning of period
 
$
98

 
$
2

 
$
100

Provision (reduction in allowance) for unfunded loan commitments and letters of credit
 
1

 

 
1

AULC balance, end of period
 
$
99

 
$
2

 
$
101

ACL balance, end of period
 
$
659

 
$
216

 
$
875

Six-month period ended June 30, 2019:
 
 
 
 
 
 
ALLL balance, beginning of period
 
$
542

 
$
230

 
$
772

Loan charge-offs
 
(70
)
 
(97
)
 
(167
)
Recoveries of loans previously charged-off
 
19

 
29

 
48

Provision for loan and lease losses
 
69

 
52

 
121

ALLL balance, end of period
 
$
560

 
$
214

 
$
774

AULC balance, beginning of period
 
$
94

 
$
2

 
$
96

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

 

 
5

AULC balance, end of period
 
$
99

 
$
2

 
$
101

ACL balance, end of period
 
$
659

 
$
216

 
$
875

(dollar amounts in millions)
 
Commercial
 
Consumer
 
Total
Three-month period ended June 30, 2018:
ALLL balance, beginning of period
 
$
515

 
$
206

 
$
721

Loan charge-offs
 
(12
)
 
(41
)
 
(53
)
Recoveries of loans previously charged-off
 
10

 
15

 
25

Provision for loan and lease losses
 
18

 
30

 
48

ALLL balance, end of period
 
$
531

 
$
210

 
$
741

AULC balance, beginning of period
 
$
82

 
$
3

 
$
85

Provision (reduction in allowance) for unfunded loan commitments and letters of credit
 
8

 

 
8

AULC balance, end of period
 
$
90

 
$
3

 
$
93

ACL balance, end of period
 
$
621

 
$
213

 
$
834

Six-month period ended June 30, 2018:
ALLL balance, beginning of period
 
$
482

 
$
209

 
$
691

Loan charge-offs
 
(35
)
 
(91
)
 
(126
)
Recoveries of loans previously charged-off
 
30

 
30

 
60

Provision for loan and lease losses
 
54

 
62

 
116

ALLL balance, end of period
 
$
531

 
$
210

 
$
741

AULC balance, beginning of period
 
$
84

 
$
3

 
$
87

Provision (reduction in allowance) for unfunded loan commitments and letters of credit
 
6

 

 
6

AULC balance, end of period
 
$
90

 
$
3

 
$
93

ACL balance, end of period
 
$
621

 
$
213

 
$
834


Loan and lease balances by credit quality indicator
The following table presents each loan and lease class by credit quality indicator at June 30, 2019 and December 31, 2018.
 
June 30, 2019
(dollar amounts in millions)
Credit Risk Profile by UCS Classification
Commercial
Pass
 
OLEM
 
Substandard
 
Doubtful
 
Total
Commercial and industrial
$
28,584

 
$
634

 
$
1,384

 
$
6

 
$
30,608

Commercial real estate
6,657

 
156

 
73

 
2

 
6,888

 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by FICO Score (1), (2)
Consumer
750+
 
650-749
 
<650
 
Other (3)
 
Total
Automobile
$
6,140

 
$
4,447

 
$
1,315

 
$
271

 
$
12,173

Home equity
5,960

 
2,823

 
586

 
49

 
9,418

Residential mortgage
7,630

 
2,725

 
589

 
161

 
11,105

RV and marine
2,293

 
992

 
108

 
99

 
3,492

Other consumer
496

 
594

 
120

 
61

 
1,271

 
December 31, 2018
(dollar amounts in millions)
Credit Risk Profile by UCS Classification
Commercial
Pass
 
OLEM
 
Substandard
 
Doubtful
 
Total
Commercial and industrial
$
28,807

 
$
518

 
$
1,269

 
$
11

 
$
30,605

Commercial real estate
6,586

 
181

 
74

 
1

 
6,842

 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by FICO Score (1), (2)
Consumer
750+
 
650-749
 
<650
 
Other (3)
 
Total
Automobile
$
6,254

 
$
4,520

 
$
1,373

 
$
282

 
$
12,429

Home equity
6,098

 
2,975

 
591

 
56

 
9,720

Residential mortgage
7,159

 
2,801

 
612

 
78

 
10,650

RV and marine
2,074

 
990

 
105

 
85

 
3,254

Other consumer
501

 
633

 
129

 
57

 
1,320


(1)
Excludes loans accounted for under the fair value option.
(2)
Reflects updated customer credit scores.
(3)
Reflects deferred fees and costs, loans in process, etc.
Summarized data for impaired loans and the related ALLL by portfolio segment
The following tables present the balance of the ALLL attributable to loans by portfolio segment individually and collectively evaluated for impairment and the related loan and lease balance at June 30, 2019 and December 31, 2018.
(dollar amounts in millions)
 
Commercial
 
Consumer
 
Total
ALLL at June 30, 2019
 
 
 
 
 
 
Portion of ALLL balance:
 
 
 
 
 
 
Attributable to loans individually evaluated for impairment
 
$
49

 
$
9

 
$
58

Attributable to loans collectively evaluated for impairment
 
511

 
205

 
716

Total ALLL balance
 
$
560

 
$
214

 
$
774

Loan and Lease Ending Balances at June 30, 2019 (1)
 
 
 
 
 
 
Portion of loan and lease ending balance:
 
 
 
 
 
 
Individually evaluated for impairment
 
$
594

 
$
584

 
$
1,178

Collectively evaluated for impairment
 
36,902

 
36,875

 
73,777

Total loans and leases evaluated for impairment
 
$
37,496

 
$
37,459

 
$
74,955


(dollar amounts in millions)
 
Commercial
 
Consumer
 
Total
ALLL at December 31, 2018
 
 
 
 
 
 
Portion of ALLL balance:
 
 
 
 
 
 
Attributable to loans individually evaluated for impairment
 
$
33

 
$
10

 
$
43

Attributable to loans collectively evaluated for impairment
 
509

 
220

 
729

Total ALLL balance:
 
$
542

 
$
230

 
$
772

Loan and Lease Ending Balances at December 31, 2018 (1)
 
 
 
 
 
 
Portion of loan and lease ending balances:
 
 
 
 
 
 
Individually evaluated for impairment
 
516

 
591

 
1,107

Collectively evaluated for impairment
 
36,931

 
36,783

 
73,714

Total loans and leases evaluated for impairment
 
$
37,447

 
$
37,374

 
$
74,821


(1)
Excludes loans accounted for under the fair value option.
Detailed impaired loan information by class
The following tables present by class the ending balance, unpaid principal balance, and the related ALLL, along with the average balance and interest income recognized for impaired loans and leases: (1)
 
June 30, 2019
 
Three Months Ended
June 30, 2019
 
Six Months Ended
June 30, 2019
(dollar amounts in millions)
Ending
Balance
 
Unpaid
Principal
Balance (6)
 
Related
Allowance (7)
 
Average
Balance
 
Interest
Income
Recognized
 
Average
Balance
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
203

 
$
230

 
$

 
$
205

 
$
5

 
$
211

 
$
11

Commercial real estate
28

 
32

 

 
34

 
2

 
35

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
329

 
364

 
47

 
328

 
3

 
292

 
5

Commercial real estate
34

 
38

 
2

 
34

 

 
35

 
1

Automobile
40

 
43

 
2

 
40

 
1

 
39

 
1

Home equity
301

 
339

 
11

 
306

 
3

 
309

 
7

Residential mortgage
284

 
319

 
3

 
285

 
3

 
286

 
6

RV and marine
3

 
3

 

 
3

 

 
3

 

Other consumer
9

 
9

 
2

 
9

 

 
9

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial (3)
532

 
594

 
47

 
533

 
8

 
503

 
16

Commercial real estate (4)
62

 
70

 
2

 
68

 
2

 
70

 
5

Automobile (2)
40

 
43

 
2

 
40

 
1

 
39

 
1

Home equity (5)
301

 
339

 
11

 
306

 
3

 
309

 
7

Residential mortgage (5)
284

 
319

 
3

 
285

 
3

 
286

 
6

RV and marine (2)
3

 
3

 

 
3

 

 
3

 

Other consumer (2)
9

 
9

 
2

 
9

 

 
9

 


 
December 31, 2018
 
Three Months Ended
June 30, 2018
 
Six Months Ended
June 30, 2018
(dollar amounts in millions)
Ending
Balance
 
Unpaid
Principal
Balance (6)
 
Related
Allowance (7)
 
Average
Balance
 
Interest
Income
Recognized
 
Average
Balance
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
224


$
261


$


$
259


$
6


$
268


$
10

Commercial real estate
36


45




55


2


55


4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
221

 
240

 
31

 
295

 
3

 
283

 
6

Commercial real estate
35

 
39

 
2

 
46

 

 
48

 
1

Automobile
38

 
42

 
2

 
37

 
1

 
36

 
1

Home equity
314

 
356

 
10

 
331

 
4

 
332

 
7

Residential mortgage
287

 
323

 
4

 
300

 
3

 
303

 
5

RV and marine
2

 
3

 

 
2

 

 
2

 

Other consumer
9

 
9

 
3

 
7

 

 
7

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial (3)
445

 
501

 
31

 
554

 
9

 
551

 
16

Commercial real estate (4)
71

 
84

 
2

 
101

 
2

 
103

 
5

Automobile (2)
38

 
42

 
2

 
37

 
1

 
36

 
1

Home equity (5)
314

 
356

 
10

 
331

 
4

 
332

 
7

Residential mortgage (5)
287

 
323

 
4

 
300

 
3

 
303

 
5

RV and marine (2)
2

 
3

 

 
2

 

 
2

 

Other consumer (2)
9

 
9

 
3

 
7

 

 
7

 

(1)
These tables do not include loans fully charged-off.
(2)
All automobile, RV and marine, and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
(3)
At June 30, 2019 and December 31, 2018, C&I loans of $333 million and $366 million, respectively, were considered impaired due to their status as a TDR.
(4)
At June 30, 2019 and December 31, 2018, CRE loans of $54 million and $60 million, respectively, were considered impaired due to their status as a TDR.
(5)
Includes home equity and residential mortgages considered impaired due to collateral dependent designation associated with their non-accrual status as well as home equity and mortgage loans considered impaired due to their status as a TDR.
(6)
The differences between the ending balance and unpaid principal balance amounts primarily represent partial charge-offs.
(7)
Impaired loans in the consumer portfolio are evaluated in pools and not at the loan level. Thus, these loans do not have an individually assigned allowance and as such are all classified as with an allowance in the tables above.
Detailed troubled debt restructuring information by class
The following table presents, by class and modification type, the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the three-month and six-month periods ended June 30, 2019 and 2018.
 
New Troubled Debt Restructurings (1)
 
Three Months Ended June 30, 2019
 
Number of
Contracts
 
Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)
 
Interest rate reduction
 
Amortization or maturity date change
 
Chapter 7 bankruptcy
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
101

 
$

 
$
39

 
$

 
$

 
$
39

Commercial real estate
6

 

 
2

 

 

 
2

Automobile
650

 

 
4

 
2

 

 
6

Home equity
68

 

 
2

 
1

 

 
3

Residential mortgage
96

 

 
10

 
1

 

 
11

RV and marine
31

 

 

 
2

 

 
2

Other consumer
343

 
2

 

 

 

 
2

Total new TDRs
1,295

 
$
2

 
$
57

 
$
6

 
$

 
$
65

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
Number of
Contracts
 
Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)
 
Interest rate reduction
 
Amortization or maturity date change
 
Chapter 7 bankruptcy
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
269

 
$

 
$
171

 
$

 
$

 
$
171

Commercial real estate
38

 

 
43

 

 

 
43

Automobile
613

 

 
3

 
2

 

 
5

Home equity
169

 

 
8

 
2

 

 
10

Residential mortgage
119

 

 
12

 

 

 
12

RV and marine
40

 

 

 

 

 

Other consumer
493

 
4

 

 

 

 
4

Total new TDRs
1,741

 
$
4

 
$
237

 
$
4

 
$

 
$
245

 
New Troubled Debt Restructurings (1)
 
Six Months Ended June 30, 2019
 
Number of
Contracts
 
Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)
 
Interest rate reduction
 
Amortization or maturity date change
 
Chapter 7 bankruptcy
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
216

 
$

 
$
74

 
$

 
$

 
$
74

Commercial real estate
14

 

 
11

 

 

 
11

Automobile
1,394

 

 
9

 
4

 

 
13

Home equity
172

 

 
5

 
3

 

 
8

Residential mortgage
172

 

 
18

 
1

 

 
19

RV and marine finance
67

 

 

 
1

 

 
1

Other consumer
587

 
3

 

 

 

 
3

Total new TDRs
2,622

 
$
3

 
$
117

 
$
9

 
$

 
$
129

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
Number of
Contracts
 
Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)
 
Interest rate reduction
 
Amortization or maturity date change
 
Chapter 7 bankruptcy
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
510

 
$

 
$
267

 
$

 
$

 
$
267

Commercial real estate
86

 

 
74

 

 

 
74

Automobile
1,240

 

 
7

 
4

 

 
11

Home equity
325

 

 
14

 
5

 
1

 
20

Residential mortgage
202

 

 
20

 
1

 

 
21

RV and marine finance
59

 

 

 
1

 

 
1

Other consumer
934

 
4

 

 

 

 
4

Total new TDRs
3,356

 
$
4

 
$
382

 
$
11

 
$
1

 
$
398

(1)
TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
(2)
Post-modification balances approximate pre-modification balances.
The financial effects of modification represent the impact on the provision (recovery) for loan and lease losses. Amounts for the three-month periods ended June 30, 2019 and 2018, were less than $1 million and $(7) million, respectively. For the six-month periods ended June 30, 2019 and 2018, the financial effects of modification were $(3) million and $(10) million, respectively.