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

6 Months Ended

Jun. 30, 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 to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on 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).

Listed in the table below is certain operating basis financial information reconciled to Huntington’s June 30, 2020, December 31, 2019, and June 30, 2019, reported results by business segment.



	Three Months Ended June 30,
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	$	368	$	240		$	100		$	40	$	44		$	792
Provision (benefit) for credit losses	31		226			70			—		—			327
Noninterest income	218		85			2			54		32			391
Noninterest expense	422		136			34			62		21			675
Provision (benefit) for income taxes	27		(7		)	—			6		5			31
Net income (loss)	$	106	$	(30	)	$	(2	)	$	26	$	50		$	150
2019
Net interest income	$	464	$	264		$	96		$	52	$	(64	)	$	812
Provision (benefit) for credit losses	30		24			5			—		—			59
Noninterest income	198		89			4			49		34			374
Noninterest expense	427		145			38			67		23			700
Provision (benefit) for income taxes	43		39			12			7		(38		)	63
Net income (loss)	$	162	$	145		$	45		$	27	$	(15	)	$	364



	Six Months Ended June 30,
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	$	733	$	472		$	206	$	83		$	88		$	1,582
Provision (benefit) for credit losses	114		523			131		—			—			768
Noninterest income	430		170			5		105			42			752
Noninterest expense	840		265			69		124			29			1,327
Provision (benefit) for income taxes	44		(31		)	2		14			12			41
Net income (loss)	$	165	$	(115	)	$	9	$	50		$	89		$	198
2019
Net interest income	$	936	$	536		$	191	$	104		$	(133	)	$	1,634
Provision (benefit) for credit losses	48		67			14		(3		)	—			126
Noninterest income	372		165			6		100			50			693
Noninterest expense	827		288			75		130			33			1,353
Provision (benefit) for income taxes	91		73			23		16			(77		)	126
Net income (loss)	$	342	$	273		$	85	$	61		$	(39	)	$	722



	Assets at				Deposits at
(dollar amounts in millions)	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
Consumer & Business Banking	$	30,697	$	25,073	$	59,202	$	51,675
Commercial Banking	35,323		34,337		22,041		20,762
Vehicle Finance	19,137		20,155		824		376
RBHPCG	6,855		6,665		6,834		6,370
Treasury / Other	26,413		22,772		4,790		3,164
Total	$	118,425	$	109,002	$	93,691	$	82,347