LOANS AND LEASES LOANS AND LEASES (Notes)

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LOANS AND LEASES LOANS AND LEASES (Notes)	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
Financing Receivables [Text Block]	LOANS / LEASES Loans and leases which Huntington has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified in the Unaudited Condensed Consolidated Balance Sheets as loans and leases. The total balance of unamortized premiums, discounts, fees, and costs, recognized as part of loans and leases, was a net premium of $384 million and $525 million at June 30, 2020 and December 31, 2019, respectively. Loan and Lease Portfolio Composition The following table provides a detailed listing of Huntington’s loan and lease portfolio at June 30, 2020 and December 31, 2019. (dollar amounts in millions) June 30, 2020   December 31, 2019 Loans and leases:       Commercial and industrial $ 34,879   $ 30,664 Commercial real estate 7,179   6,674 Automobile 12,678   12,797 Home equity 8,866   9,093 Residential mortgage 11,621   11,376 RV and marine 3,843   3,563 Other consumer 1,073   1,237 Loans and leases $ 80,139   $ 75,404 Allowance for loan and lease losses (1,702 )   (783 ) Net loans and leases $ 78,437   $ 74,621 Equipment Leases Huntington leases equipment to customers, and substantially all such arrangements are classified as either sales-type or direct financing leases, which are included in C&I loans. These leases are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, and any initial direct costs incurred to originate these leases. Huntington assesses net investments in leases (including residual values) for impairment and recognizes any impairment losses in accordance with the impairment guidance for financial instruments. As such, net investments in leases may be reduced by an allowance for credit losses, with changes recognized as provision expense. The following table presents net investments in lease financing receivables by category at June 30, 2020 and December 31, 2019. (dollar amounts in millions) June 30, 2020   December 31, 2019 Commercial and industrial:       Lease payments receivable $ 1,762   $ 1,841 Estimated residual value of leased assets 691   728 Gross investment in commercial and industrial lease financing receivables 2,453   2,569 Deferred origination costs 19   19 Deferred fees (214 )   (249 ) Total net investment in commercial and industrial lease financing receivables $ 2,258   $ 2,339 The carrying value of residual values guaranteed was $96 million and $95 million as of June 30, 2020 and December 31, 2019, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at June 30, 2020, totaled $1.8 billion and were due as follows: $0.6 billion in 2021, $0.5 billion in 2022, $0.3 billion in 2023, $0.2 billion in 2024, $0.1 billion in 2025, and $0.1 billion thereafter. Interest income recognized for these types of leases was $28 million and $27 million for the three-month periods ended June 30, 2020 and 2019, respectively. For the six-month periods ended June 30, 2020 and 2019, interest income recognized was $55 million and $53 million, respectively. Nonaccrual and Past Due Loans Loans are considered past due when the contractual amounts due with respect to principal and interest are not received within 30 days of the contractual due date. See Note 1 “Significant Accounting Policies” to the Consolidated Financial Statements of the Annual Report on Form 10-K for the year ended December 31, 2019 for a description of the accounting policies related to the NALs. The following table presents NALs by loan class at June 30, 2020 and December 31, 2019 (1):   June 30, 2020   December 31, 2019 (dollar amounts in millions) Nonaccrual loans with no ACL Total nonaccrual loans   Nonaccrual loans with no ACL Total nonaccrual loans Commercial and industrial $ 97 $ 485   $ 109 $ 323 Commercial real estate 6 28   2 10 Automobile — 8   — 4 Home equity — 59   — 59 Residential mortgage — 66   — 71 RV and marine — 2   — 1 Other consumer — —   — — Total nonaccrual loans $ 103 $ 648   $ 111 $ 468 (1) Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic. The following table presents an aging analysis of loans and leases, including past due loans and leases, by loan class at June 30, 2020 and December 31, 2019:   June 30, 2020     Past Due (1)(2)        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 $ 46   $ 24   $ 87   $ 157   $ 34,722   $ —   $ 34,879   $ 13 (3) Commercial real estate 3   21   4   28   7,151   —   7,179   —   Automobile 47   14   14   75   12,603   —   12,678   8   Home equity 26   12   48   86   8,779   1   8,866   10   Residential mortgage 75   24   194   293   11,237   91   11,621   158 (4) RV and marine 8   3   3   14   3,829   —   3,843   2   Other consumer 6   2   3   11   1,062   —   1,073   3   Total loans and leases $ 211   $ 100   $ 353   $ 664   $ 79,383   $ 92   $ 80,139   $ 194     December 31, 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 $ 65   $ 31   $ 69   $ 165   $ 30,499   $ —   $ 30,664   $ 11 (3) Commercial real estate 3   1   7   11   6,663   —   6,674   —   Automobile 95   19   11   125   12,672   —   12,797   8   Home equity 50   19   51   120   8,972   1   9,093   14   Residential mortgage 103   49   170   322   10,974   80   11,376   129 (4) RV and marine 13   4   2   19   3,544   —   3,563   2   Other consumer 13   6   7   26   1,211   —   1,237   7   Total loans and leases $ 342   $ 129   $ 317   $ 788   $ 74,535   $ 81   $ 75,404   $ 171   (1) NALs are included in this aging analysis based on the loan’s past due status. (2) At June 30, 2020, the principal balance of loans in payment deferral programs offered in response to the COVID-19 pandemic which are performing according to their modified terms are generally not considered delinquent. (3) Amounts include Huntington Technology Finance administrative lease delinquencies. (4) Amounts include mortgage loans insured by U.S. government agencies. Credit Quality Indicators See Note 4 “Loans / Leases and Allowance for Credit Losses” to the Consolidated Financial Statements of the Annual Report on Form 10-K for the year ended December 31, 2019 for a description of the credit quality indicators Huntington utilizes for monitoring credit quality and for determining an appropriate ACL level. To facilitate the monitoring of credit quality for commercial loans, and for purposes of determining an appropriate ACL level for these loans, Huntington utilizes the following internally defined categories of credit grades: • Pass - Higher quality loans that do not fit any of the other categories described below. • OLEM - The credit risk may be relatively minor yet represents a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans. • Substandard - Inadequately protected loans resulting from the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated. • Doubtful - Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high. Loans are generally assigned a category of “Pass” rating upon initial approval and subsequently updated as appropriate based on the borrower’s financial performance. Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans categorized as Substandard or Doubtful are both considered Classified loans. For all classes within the consumer loan portfolio, loans are assigned pool level PD factors based on the FICO range within which the borrower’s credit bureau score falls. A credit bureau score is a credit score developed by FICO based on data provided by the credit bureaus. The credit bureau score is widely accepted as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality. Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above, and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk management processes. The following table presents each loan and lease class by vintage and credit quality indicator at June 30, 2020:     As of June 30, 2020     Term Loans Amortized Cost Basis by Origination Year   Revolver Total at Amortized Cost Basis   Revolver Total Converted to Term Loans     (dollar amounts in millions)   2020   2019   2018   2017   2016   Prior       Total (3) Commercial and industrial                                     Credit Quality Indicator (1):                                     Pass   $ 9,667   $ 5,916   $ 3,675   $ 1,937   $ 1,236   $ 1,369   $ 8,112   $ 3   $ 31,915 OLEM   348   118   146   59   77   33   268   —   1,049 Substandard   241   187   279   194   91   204   711   —   1,907 Doubtful   2   —   5   —   —   1   —   —   8 Total Commercial and industrial   $ 10,258   $ 6,221   $ 4,105   $ 2,190   $ 1,404   $ 1,607   $ 9,091   $ 3   $ 34,879                                       Commercial real estate                                     Credit Quality Indicator (1):                                     Pass   $ 1,023   $ 1,616   $ 1,287   $ 603   $ 610   $ 700   $ 720   $ —   $ 6,559 OLEM   44   140   100   59   23   32   37   —   435 Substandard   19   30   11   37   56   20   10   —   183 Doubtful   —   —   —   —   —   2   —   —   2 Total Commercial real estate   $ 1,086   $ 1,786   $ 1,398   $ 699   $ 689   $ 754   $ 767   $ —   $ 7,179                                       Automobile                                     Credit Quality Indicator (2):                                     750+   $ 1,389   $ 2,367   $ 1,442   $ 1,025   $ 449   $ 170   $ —   $ —   $ 6,842 650-749   921   1,752   1,011   551   247   100   —   —   4,582 <650   125   391   327   226   118   67   —   —   1,254 Total Automobile   $ 2,435   $ 4,510   $ 2,780   $ 1,802   $ 814   $ 337   $ —   $ —   $ 12,678                                       Home equity                                     Credit Quality Indicator (2):                                     750+   $ 236   $ 32   $ 36   $ 39   $ 110   $ 547   $ 4,511   $ 193   $ 5,704 650-749   38   12   10   14   31   198   2,130   189   2,622 <650   —   1   1   1   7   86   329   114   539 Total Home equity   $ 274   $ 45   $ 47   $ 54   $ 148   $ 831   $ 6,970   $ 496   $ 8,865                                       Residential mortgage                                     Credit Quality Indicator (2):                                     750+   $ 1,492   $ 1,664   $ 1,236   $ 1,384   $ 950   $ 1,608   $ —   $ —   $ 8,334 650-749   512   586   418   322   209   565   —   —   2,612 <650   12   35   67   75   58   337   —   —   584 Total Residential mortgage   $ 2,016   $ 2,285   $ 1,721   $ 1,781   $ 1,217   $ 2,510   $ —   $ —   $ 11,530                                       RV and marine                                     Credit Quality Indicator (2):                                     750+   $ 562   $ 585   $ 682   $ 386   $ 174   $ 300   $ —   $ —   $ 2,689 650-749   131   263   239   165   77   159   —   —   1,034 <650   2   16   25   27   14   36   —   —   120 Total RV and marine   $ 695   $ 864   $ 946   $ 578   $ 265   $ 495   $ —   $ —   $ 3,843                                       Other consumer                                     Credit Quality Indicator (2):                                     750+   $ 52   $ 69   $ 32   $ 11   $ 5   $ 10   $ 325   $ 2   $ 506 650-749   21   74   25   8   3   5   311   32   479 <650   1   11   4   2   1   1   30   38   88 Total Other consumer   $ 74   $ 154   $ 61   $ 21   $ 9   $ 16   $ 666   $ 72   $ 1,073 (1) Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually. (2) Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly. (3) The total amount of accrued interest recorded for these loans at June 30, 2020, presented in Other assets within the Condensed Consolidated Balance Sheets, was $106 million and $127 million of commercial and consumer, respectively. The following table presents each loan and lease class by credit quality indicator at December 31, 2019.   December 31, 2019 (dollar amounts in millions) Credit Risk Profile by UCS Classification Commercial Pass   OLEM   Substandard   Doubtful   Total Commercial and industrial $ 28,477   $ 634   $ 1,551   $ 2   $ 30,664 Commercial real estate 6,487   98   88   1   6,674                           Credit Risk Profile by FICO Score (1), (2) Consumer     750+   650-749   <650   Total Automobile     $ 6,759   $ 4,661   $ 1,377   $ 12,797 Home equity     5,763   2,772   557   9,092 Residential mortgage     7,976   2,742   578   11,296 RV and marine     2,391   1,053   119   3,563 Other consumer     546   571   120   1,237 (1) Excludes loans accounted for under the fair value option. (2) Reflects updated customer credit scores. Collateral-dependent Loans Certain commercial and consumer loans for which repayment is expected to be provided substantially through the operation or sale of the loan collateral are considered to be collateral-dependent. Commercial collateral-dependent loans are generally secured by business assets and/or commercial real estate. Consumer collateral-dependent loans are primarily secured by residential real estate. TDR Loans TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided would not otherwise be considered. However, not all loan modifications are TDRs. See Note 4 “Loans / Leases and Allowance for Credit Losses” to the Consolidated Financial Statements of the Annual Report on Form 10-K for the year ended December 31, 2019 for an additional discussion of TDRs. On March 22, 2020 and April 7, 2020, the federal bank regulatory agencies including the FRB and OCC released statements encouraging financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19.  The statements go on to explain that, in consultation with the FASB staff, the federal bank regulatory agencies concluded that short-term modifications (e.g. six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not TDRs.  Section 4013 of the CARES Act further addresses COVID-19 related modifications and specifies that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. For COVID-19 related loan modifications which occurred from March 1, 2020 through June 30,2020, and met the loan modification criteria under the CARES Act, Huntington elected to suspend TDR accounting for such loan modifications. For loan modifications not eligible for the CARES Act, Huntington applied the interagency regulatory guidance that was clarified on April 7, 2020. Accordingly, insignificant concessions (related to the current COVID- 19 crisis) granted through payment deferrals, fee waivers, or other short-term modifications (generally 6 months or less) and provided to borrowers less than 30 days past due at March 17, 2020 were not be deemed to be TDRs. Therefore, modified loans that met the required guidelines for relief are excluded from the TDR disclosures below. 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, 2020 and 2019.   New Troubled Debt Restructurings (1)   Three Months Ended June 30, 2020   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 98   $ —   $ 26   $ —   $ 52   $ 78 Commercial real estate 2   —   1   —   —   1 Automobile 1,058   —   14   2   —   16 Home equity 63   —   2   1   —   3 Residential mortgage 105   —   12   2   —   14 RV and marine 68   —   3   —   —   3 Other consumer 142   1   —   —   —   1 Total new TDRs 1,536   $ 1   $ 58   $ 5   $ 52   $ 116                           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                           New Troubled Debt Restructurings (1)   Six Months Ended June 30, 2020   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 238   $ —   $ 88   $ —   $ 58   $ 146 Commercial real estate 9   —   3   —   —   3 Automobile 1,856   —   20   4   —   24 Home equity 126   —   3   3   —   6 Residential mortgage 206   —   21   4   —   25 RV and marine finance 96   —   4   —   —   4 Other consumer 391   2   —   —   —   2 Total new TDRs 2,922   $ 2   $ 139   $ 11   $ 58   $ 210                           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                         (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 on the provision (recovery) for loan and lease losses. Amounts for the three-month periods ended June 30, 2020 and 2019, were $1 million and less than $1 million respectively. For the six-month periods ended June 30, 2020 and 2019, the financial effects of modification were $(4) million and $(3) million, respectively. Pledged Loans and Leases The Bank has access to the Federal Reserve’s discount window and advances from the FHLB. As of June 30, 2020 and December 31, 2019, these borrowings and advances are secured by $42.8 billion and $39.6 billion, respectively, of loans.