Huntington Bancshares Incorporated Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

SEGMENT REPORTING

3 Months Ended

Mar. 31, 2020

Huntington’s business segments are based on our internally-aligned segment leadership structure, which is how management monitors results and assesses performance. The Company has four major business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, Regional Banking and The Huntington Private Client Group (RBHPCG). The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense. For a description of our business segments (see Note 24 Segment Reporting) in our 2019 Form 10-K.

Business segment results are determined based upon Huntington’s management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Huntington uses an active and centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury / Other function where it can be centrally monitored and managed. The Treasury / Other function charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The FTP rate is based on prevailing market interest rates for comparable duration assets (or liabilities). During 2019, the Company updated and refined its FTP methodology primarily related to the allocation of deposit funding costs. Prior period amounts presented below have been restated to reflect the new methodology.

Listed in the table below is certain operating basis financial information reconciled to Huntington’s March 31, 2020, December 31, 2019, and March 31, 2019, reported results by business segment.



	Three Months Ended March 31,
Income Statements	Consumer & Business Banking		Commercial Banking			Vehicle Finance		RBHPCG			Treasury / Other			Huntington Consolidated
(dollar amounts in millions)	Consumer & Business Banking		Commercial Banking			Vehicle Finance		RBHPCG			Treasury / Other			Huntington Consolidated
2020
Net interest income	$	364	$	232		$	106	$	43		$	45		$	790
Provision (benefit) for credit losses	82		298			60		1			—			441
Noninterest income	212		86			3		50			10			361
Noninterest expense	418		129			35		62			8			652
Provision (benefit) for income taxes	16		(23		)	3		6			8			10
Net income (loss)	$	60	$	(86	)	$	11	$	24		$	39		$	48
2019
Net interest income	$	471	$	273		$	95	$	53		$	(70	)	$	822
Provision (benefit) for credit losses	17		43			9		(2		)	—			67
Noninterest income	174		76			2		51			16			319
Noninterest expense	398		141			37		64			13			653
Provision (benefit) for income taxes	48		35			11		9			(40		)	63
Net income (loss)	$	182	$	130		$	40	$	33		$	(27	)	$	358



	Assets at				Deposits at
(dollar amounts in millions)	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Consumer & Business Banking	$	24,917	$	25,073	$	51,898	$	51,675
Commercial Banking	37,318		34,337		23,530		20,762
Vehicle Finance	20,431		20,155		525		376
RBHPCG	6,747		6,665		6,265		6,370
Treasury / Other	24,484		22,772		4,612		3,164
Total	$	113,897	$	109,002	$	86,830	$	82,347