HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	hban201912318kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban201912318k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

December 31, 2019

Table of Contents



Quarterly Key Statistics	1

Annual Key Statistics	2

Consolidated Balance Sheets	4

Loans and Leases Composition	5

Deposits Composition	6

Consolidated Quarterly Average Balance Sheets	7

Consolidated Quarterly Net Interest Margin - Interest Income / Expense	8

Consolidated Quarterly Net Interest Margin - Yield	9

Selected Quarterly Income Statement Data	10

Quarterly Mortgage Banking Income	11

Quarterly Credit Reserves Analysis	12

Quarterly Net Charge-Off Analysis	13

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	14

Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans	15

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data	16

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data	17

Consolidated Annual Average Balance Sheets	18

Consolidated Annual Net Interest Margin - Interest Income / Expense	19

Consolidated Annual Net Interest Margin - Yield	20

Selected Annual Income Statement Data	21

Annual Mortgage Banking Income	22

Annual Credit Reserves Analysis	23

Annual Net Charge-Off Analysis	24

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	25

Annual Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans	26

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 and 35 percent for periods prior to January 1, 2018.

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, share count in thousands)	December 31,			September 30,			December 31,			Percent Changes vs.
	2019			2019			2018			3Q19		4Q18
Net interest income (2)	$	786		$	805		$	841		(2	)%	(7	)%
FTE adjustment	(6		)	(6		)	(8		)	—		25
Net interest income	780			799			833			(2	)	(6	)
Provision for credit losses	79			82			60			(4	)	32
Noninterest income	372			389			329			(4	)	13
Noninterest expense	701			667			711			5		(1	)
Income before income taxes	372			439			391			(15	)	(5	)
Provision for income taxes	55			67			57			(18	)	(4	)
Net income	317			372			334			(15	)	(5	)
Dividends on preferred shares	19			18			19			6		—
Net income applicable to common shares	$	298		$	354		$	315		(16	)%	(5	)%

Net income per common share - diluted	$	0.28		$	0.34		$	0.29		(18	)%	(3	)%
Cash dividends declared per common share	0.15			0.15			0.14			—		7
Tangible book value per common share at end of period	8.25			8.25			7.34			—		12
Number of common shares repurchased	13,104			5,213			14,967			151		(12	)
Average common shares - basic	1,028,621			1,034,940			1,054,460			(1	)	(2	)
Average common shares - diluted	1,047,123			1,051,273			1,073,055			—		(2	)
Ending common shares outstanding	1,020,003			1,032,755			1,046,767			(1	)	(3	)
Return on average assets	1.15		%	1.37		%	1.25		%
Return on average common shareholders’ equity	11.1			13.4			12.9
Return on average tangible common shareholders’ equity (1)	14.3			17.3			17.3
Net interest margin (2)	3.12			3.20			3.41
Efficiency ratio (3)	58.4			54.7			58.7
Effective tax rate	14.8			15.4			14.6
Average total assets	$	108,713		$	108,166		$	105,877		1		3
Average earning assets	100,062			99,692			97,752			—		2
Average loans and leases	75,103			75,096			73,822			—		2
Average loans and leases - linked quarter annualized growth rate	—		%	0.9		%	5.9		%
Average total deposits	$	82,592		$	82,249		$	82,931		—		—
Average core deposits (4)	79,690			79,335			79,078			—		1
Average core deposits - linked quarter annualized growth rate	1.8		%	3.1		%	7.2		%
Average shareholders’ equity	11,884			11,714			10,889			1		9
Average common total shareholders' equity	10,681			10,510			9,686			2		10
Average tangible common shareholders' equity	8,503			8,323			7,460			2		14
Total assets at end of period	109,002			108,735			108,781			—		—
Total shareholders’ equity at end of period	11,795			11,909			11,102			(1	)	6

NCOs as a % of average loans and leases	0.39		%	0.39		%	0.27		%
NAL ratio	0.62			0.58			0.45
NPA ratio (5)	0.66			0.64			0.52
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.04			1.05			1.03
Common equity tier 1 risk-based capital ratio (6)	9.88			10.02			9.65
Tangible common equity / tangible asset ratio (7)	7.88			8.00			7.21

See Notes to the Annual and Quarterly Key Statistics.

Huntington Bancshares Incorporated

Annual Key Statistics

(Unaudited)



	Year Ended December 31,						Change
(dollar amounts in millions, except per share data, share count in thousands)	2019			2018			Amount			Percent
Net interest income (2)	$	3,239		$	3,219		$	20		1	%
FTE adjustment	(26		)	(30		)	4			13
Net interest income	3,213			3,189			24			1
Provision for credit losses	287			235			52			22
Noninterest income	1,454			1,321			133			10
Noninterest expense	2,721			2,647			74			3
Income before income taxes	1,659			1,628			31			2
Provision for income taxes	248			235			13			6
Net Income	1,411			1,393			18			1
Dividends on preferred shares	74			70			4			6
Net income applicable to common shares	$	1,337		$	1,323		$	14		1	%

Net income per common share - diluted	$	1.27		$	1.20		$	0.07		6	%
Cash dividends declared per common share	0.58			0.50			0.08			16

Average common shares - basic	1,038,840			1,081,542			(42,702		)	(4	)
Average common shares - diluted	1,056,079			1,105,985			(49,906		)	(5	)

Return on average assets	1.31		%	1.33		%
Return on average common shareholders’ equity	12.9			13.4
Return on average tangible common shareholders’ equity (1)	16.9			17.9
Net interest margin (2)	3.26			3.33
Efficiency ratio (3)	56.6			56.9
Effective tax rate	15.0			14.5

Average total assets	$	107,971		$	104,982		$	2,989		3
Average earning assets	99,541			96,577			2,964			3
Average loans and leases	74,978			72,246			2,732			4
Average total deposits	82,332			80,186			2,146			3
Average core deposits (4)	79,197			76,403			2,794			4
Average shareholders’ equity	11,560			11,059			501			5
Average common total shareholders' equity	10,357			9,891			466			5
Average tangible common shareholders' equity	8,164			7,647			517			7

NCOs as a % of average loans and leases	0.35		%	0.20		%
NAL ratio	0.62			0.45
NPA ratio (5)	0.66			0.52

See Notes to the Year to Date and Quarterly Key Statistics.

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 real estate owned.


(6)	December 31, 2019, 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.

Huntington Bancshares Incorporated

Consolidated Balance Sheets



	December 31,			December 31,
(dollar amounts in millions)	2019			2018			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,045		$	1,108		(6	)%
Interest-bearing deposits in Federal Reserve Bank	125			1,564			(92	)
Interest-bearing deposits in banks	102			53			92
Trading account securities	99			105			(6	)
Available-for-sale securities	14,149			13,780			3
Held-to-maturity securities	9,070			8,565			6
Other securities	441			565			(22	)
Loans held for sale	877			804			9
Loans and leases (1)	75,404			74,900			1
Allowance for loan and lease losses	(783		)	(772		)	(1	)
Net loans and leases	74,621			74,128			1
Bank owned life insurance	2,542			2,507			1
Premises and equipment	763			790			(3	)
Goodwill	1,990			1,989			—
Service rights and other intangible assets	475			535			(11	)
Other assets	2,703			2,288			18
Total assets	$	109,002		$	108,781		—	%

Liabilities and shareholders’ equity
Liabilities
Deposits (2)	$	82,347		$	84,774		(3	)%
Short-term borrowings	2,606			2,017			29
Long-term debt	9,849			8,625			14
Other liabilities	2,405			2,263			6
Total liabilities	97,207			97,679			—

Shareholders' equity
Preferred stock	1,203			1,203			—
Common stock	10			11			(9	)
Capital surplus	8,806			9,181			(4	)
Less treasury shares, at cost	(56		)	(45		)	(24	)
Accumulated other comprehensive loss	(256		)	(609		)	58
Retained earnings (deficit)	2,088			1,361			53
Total shareholders’ equity	11,795			11,102			6
Total liabilities and shareholders’ equity	$	109,002		$	108,781		—	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares outstanding	1,020,003,482			1,046,767,252
Treasury shares outstanding	4,537,605			3,817,385
Preferred stock, authorized shares	6,617,808			6,617,808
Preferred shares outstanding	740,500			740,500


(1)	See page 5 for detail of loans and leases.


(2)	See page 6 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2019				2019				2019				2019				2018
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	30,664	41	%	$	30,394	41	%	$	30,608	41	%	$	30,972	41	%	$	30,605	41	%
Commercial real estate:
Construction	1,123		1		1,157		2		1,146		1		1,152		2		1,185		2
Commercial	5,551		7		5,698		8		5,742		8		5,643		8		5,657		8
Commercial real estate	6,674		8		6,855		10		6,888		9		6,795		10		6,842		10
Total commercial	37,338		49		37,249		51		37,496		50		37,767		51		37,447		51
Consumer:
Automobile	12,797		17		12,292		15		12,173		16		12,272		16		12,429		16
Home equity	9,093		12		9,300		12		9,419		12		9,551		13		9,722		13
Residential mortgage	11,376		15		11,247		15		11,182		15		10,885		14		10,728		14
RV and marine	3,563		5		3,553		5		3,492		5		3,344		4		3,254		4
Other consumer	1,237		2		1,251		2		1,271		2		1,260		2		1,320		2
Total consumer	38,066		51		37,643		49		37,537		50		37,312		49		37,453		49
Total loans and leases	$	75,404	100	%	$	74,892	100	%	$	75,033	100	%	$	75,079	100	%	$	74,900	100	%



	December 31,				September 30,				June 30,					March 31,				December 31,
(dollar amounts in millions)	2019				2019				2019					2019				2018
Ending Balances by Business Segment:
Consumer and Business Banking	$	21,716	29	%	$	21,963	30	%	$	22,128		30	%	$	22,175	29	%	$	22,333	30	%
Commercial Banking	27,050		36		27,090		36		27,311			36		27,554		37		27,191		36
Vehicle Finance	20,190		27		19,484		26		19,417			26		19,332		26		19,434		26
RBHPCG	6,366		8		6,294		8		6,179			8		5,954		8		5,886		8
Treasury / Other	82		—		61		—		(2		)	—		64		—		56		—
Total loans and leases	$	75,404	100	%	$	74,892	100	%	$	75,033		100	%	$	75,079	100	%	$	74,900	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	21,845	30	%	$	22,092	30	%	$	22,139		30	%	$	22,241	30	%	$	22,321	30	%
Commercial Banking	26,993		36		27,295		36		27,350			36		27,174		36		26,405		36
Vehicle Finance	19,852		26		19,370		26		19,298			26		19,340		26		19,177		26
RBHPCG	6,314		8		6,237		8		6,054			8		5,920		8		5,793		8
Treasury / Other	99		—		102		—		91			—		100		—		126		—
Total loans and leases	$	75,103	100	%	$	75,096	100	%	$	74,932		100	%	$	74,775	100	%	$	73,822	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2019				2019				2019				2019				2018
Ending Balances by Type:
Demand deposits - noninterest-bearing	$	20,247	25	%	$	20,553	25	%	$	19,383	24	%	$	20,036	24	%	$	21,783	26	%
Demand deposits - interest-bearing	20,583		25		19,976		24		19,085		24		19,906		24		20,042		24
Money market deposits	24,726		30		23,977		29		23,952		30		22,931		28		22,721		27
Savings and other domestic deposits	9,549		12		9,566		12		9,803		12		10,277		13		10,451		12
Core certificates of deposit (1)	4,356		5		5,443		7		5,703		7		6,007		7		5,924		7
Total core deposits	79,461		97		79,515		97		77,926		97		79,157		96		80,921		96
Other domestic deposits of $250,000 or more	313		—		326		—		316		—		313		1		337		—
Brokered deposits and negotiable CDs	2,573		3		2,554		3		2,640		3		2,685		3		3,516		4
Total deposits	$	82,347	100	%	$	82,395	100	%	$	80,882	100	%	$	82,155	100	%	$	84,774	100	%
Total core deposits:
Commercial	$	34,957	44	%	$	35,247	44	%	$	33,371	43	%	$	33,546	42	%	$	37,268	46	%
Consumer	44,504		56		44,268		56		44,555		57		45,611		58		43,653		54
Total core deposits	$	79,461	100	%	$	79,515	100	%	$	77,926	100	%	$	79,157	100	%	$	80,921	100	%
Ending Balances by Business Segment:
Consumer and Business Banking	$	51,675	63	%	$	51,671	63	%	$	51,577	64	%	$	52,354	64	%	$	50,300	59	%
Commercial Banking	20,762		25		21,088		26		20,049		25		20,543		25		23,185		28
Vehicle Finance	376		—		363		—		339		—		327		—		346		—
RBHPCG	6,370		8		6,101		7		5,863		7		5,959		7		6,809		8
Treasury / Other (2)	3,164		4		3,172		4		3,054		4		2,972		4		4,134		5
Total deposits	$	82,347	100	%	$	82,395	100	%	$	80,882	100	%	$	82,155	100	%	$	84,774	100	%



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2019				2019				2019				2019				2018
Average Balances by Business Segment:
Consumer and Business Banking	$	52,059	63	%	$	51,604	63	%	$	51,935	64	%	$	50,961	62	%	$	50,037	61	%
Commercial Banking	20,974		25		21,227		26		20,361		25		21,739		26		22,673		27
Vehicle Finance	347		—		359		—		322		—		305		—		335		—
RBHPCG	6,113		7		5,958		7		5,918		7		5,942		7		5,936		7
Treasury / Other (2)	3,099		5		3,101		4		3,182		4		3,825		5		3,950		5
Total deposits	$	82,592	100	%	$	82,249	100	%	$	81,718	100	%	$	82,772	100	%	$	82,931	100	%


(1)	Includes consumer certificates of deposit of $250,000 or more.


(2)	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)



	Quarterly Average Balances (1)
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in millions)	2019			2019			2019			2019			2018			3Q19		4Q18
Assets
Interest-bearing deposits in Federal Reserve Bank	$	672		$	514		$	518		$	501		$	483		31	%	39	%
Interest-bearing deposits in banks	176			149			135			109			97			18		81
Securities:
Trading account securities	109			137			161			138			131			(20	)	(17	)
Available-for-sale securities:
Taxable	11,221			11,096			10,501			10,752			10,351			1		8
Tax-exempt	2,791			2,820			2,970			3,048			3,176			(1	)	(12	)
Total available-for-sale securities	14,012			13,916			13,471			13,800			13,527			1		4
Held-to-maturity securities - taxable	8,592			8,566			8,771			8,653			8,433			—		2
Other securities	448			437			466			536			565			3		(21	)
Total securities	23,161			23,056			22,869			23,127			22,656			—		2
Loans held for sale	950			877			734			700			694			8		37
Loans and leases: (2)
Commercial:
Commercial and industrial	30,373			30,632			30,644			30,546			29,557			(1	)	3
Commercial real estate:
Construction	1,181			1,165			1,168			1,174			1,138			1		4
Commercial	5,625			5,762			5,732			5,686			5,806			(2	)	(3	)
Commercial real estate	6,806			6,927			6,900			6,860			6,944			(2	)	(2	)
Total commercial	37,179			37,559			37,544			37,406			36,501			(1	)	2
Consumer:
Automobile	12,607			12,181			12,219			12,361			12,423			3		1
Home equity	9,192			9,353			9,482			9,641			9,817			(2	)	(6	)
Residential mortgage	11,330			11,214			11,010			10,787			10,574			1		7
RV and marine	3,564			3,528			3,413			3,296			3,216			1		11
Other consumer	1,231			1,261			1,264			1,284			1,291			(2	)	(5	)
Total consumer	37,924			37,537			37,388			37,369			37,321			1		2
Total loans and leases	75,103			75,096			74,932			74,775			73,822			—		2
Allowance for loan and lease losses	(787		)	(799		)	(778		)	(780		)	(777		)	2		(1	)
Net loans and leases	74,316			74,297			74,154			73,995			73,045			—		2
Total earning assets	100,062			99,692			99,188			99,212			97,752			—		2
Cash and due from banks	864			817			835			853			909			6		(5	)
Intangible assets	2,228			2,240			2,252			2,265			2,288			(1	)	(3	)
All other assets	6,346			6,216			5,982			5,961			5,705			2		11
Total assets	$	108,713		$	108,166		$	107,479		$	107,511		$	105,877		1	%	3	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	20,140		$	19,796		$	19,693		$	19,770		$	19,860		2	%	1	%
Money market deposits	24,560			24,266			23,305			22,935			22,595			1		9
Savings and other domestic deposits	9,552			9,681			10,105			10,338			10,534			(1	)	(9	)
Core certificates of deposit (3)	4,795			5,666			5,860			6,052			5,705			(15	)	(16	)
Other domestic deposits of $250,000 or more	313			315			310			335			346			(1	)	(10	)
Brokered deposits and negotiable CDs	2,589			2,599			2,685			3,404			3,507			—		(26	)
Total interest-bearing deposits	61,949			62,323			61,958			62,834			62,547			(1	)	(1	)
Short-term borrowings	1,965			2,331			3,166			2,320			1,006			(16	)	95
Long-term debt	9,886			9,536			8,914			8,979			8,871			4		11
Total interest-bearing liabilities	73,800			74,190			74,038			74,133			72,424			(1	)	2
Demand deposits - noninterest-bearing	20,643			19,926			19,760			19,938			20,384			4		1
All other liabilities	2,386			2,336			2,206			2,284			2,180			2		9
Shareholders’ equity	11,884			11,714			11,475			11,156			10,889			1		9
Total liabilities and shareholders’ equity	$	108,713		$	108,166		$	107,479		$	107,511		$	105,877		1	%	3	%


(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.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)

(Unaudited)



	Quarterly Interest Income / Expense
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollar amounts in millions)	2019		2019		2019		2019		2018
Assets
Interest-bearing deposits in Federal Reserve Bank	$	3	$	3	$	3	$	3	$	3
Interest-bearing deposits in banks	1		1		—		1		1
Securities:
Trading account securities	1		—		1		1		1
Available-for-sale securities:
Taxable	73		74		72		76		70
Tax-exempt	24		26		27		28		33
Total available-for-sale securities	97		100		99		104		103
Held-to-maturity securities - taxable	54		54		56		54		52
Other securities	3		3		4		6		5
Total securities	155		157		160		165		161
Loans held for sale	8		9		7		7		7
Loans and leases:
Commercial:
Commercial and industrial	335		358		373		375		363
Commercial real estate:
Construction	15		16		17		16		16
Commercial	63		68		71		71		74
Commercial real estate	78		84		88		87		90
Total commercial	413		442		461		462		453
Consumer:
Automobile	131		126		123		120		122
Home equity	117		127		131		133		135
Residential mortgage	105		107		106		104		101
RV and marine	45		44		42		40		41
Other consumer	39		42		42		42		40
Total consumer	437		446		444		439		439
Total loans and leases	850		888		905		901		892
Total earning assets	$	1,017	$	1,058	$	1,075	$	1,077	$	1,064

Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	32	$	29	$	28	$	27	$	25
Money market deposits	61		73		67		59		52
Savings and other domestic deposits	5		5		6		6		5
Core certificates of deposit (3)	25		31		32		31		29
Other domestic deposits of $250,000 or more	3		1		1		2		1
Brokered deposits and negotiable CDs	10		15		16		20		20
Total interest-bearing deposits	136		154		150		145		132
Short-term borrowings	8		13		19		14		6
Long-term debt	87		86		87		89		85
Total interest bearing liabilities	231		253		256		248		223
Net interest income	$	786	$	805	$	819	$	829	$	841


(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.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)



	Quarterly Average Rates
	December 31,		September 30,		June 30,		March 31,		December 31,
Fully-taxable equivalent basis (1)	2019		2019		2019		2019		2018
Assets
Interest-bearing deposits in Federal Reserve Bank	1.66	%	2.19	%	2.38	%	2.40	%	2.33	%
Interest-bearing deposits in banks	1.81		2.38		2.08		1.75		1.97
Securities:
Trading account securities	2.45		2.36		1.92		2.03		1.94
Available-for-sale securities:
Taxable	2.63		2.67		2.73		2.82		2.71
Tax-exempt	3.43		3.63		3.66		3.69		4.12
Total available-for-sale securities	2.79		2.87		2.94		3.01		3.04
Held-to-maturity securities - taxable	2.50		2.51		2.54		2.52		2.45
Other securities	2.57		3.15		3.44		4.51		4.24
Total securities	2.68		2.74		2.79		2.86		2.84
Loans held for sale	3.40		3.69		4.00		4.07		4.04
Loans and leases: (3)
Commercial:
Commercial and industrial	4.31		4.57		4.82		4.91		4.81
Commercial real estate:
Construction	5.07		5.50		5.59		5.58		5.47
Commercial	4.36		4.67		4.88		5.00		4.99
Commercial real estate	4.48		4.81		5.00		5.10		5.07
Total commercial	4.34		4.61		4.85		4.94		4.86
Consumer:
Automobile	4.15		4.09		4.02		3.95		3.88
Home equity	5.03		5.38		5.56		5.61		5.45
Residential mortgage	3.73		3.80		3.84		3.86		3.82
RV and marine	4.96		4.96		4.94		4.96		5.10
Other consumer	12.71		13.34		13.29		13.07		12.35
Total consumer	4.59		4.72		4.76		4.75		4.67
Total loans and leases	4.47		4.67		4.80		4.85		4.76
Total earning assets	4.03		4.21		4.35		4.40		4.32
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.63		0.57		0.58		0.56		0.48
Money market deposits	0.99		1.20		1.15		1.04		0.91
Savings and other domestic deposits	0.20		0.22		0.23		0.23		0.23
Core certificates of deposit (4)	2.09		2.17		2.15		2.11		2.00
Other domestic deposits of $250,000 or more	1.70		1.85		1.92		1.82		1.67
Brokered deposits and negotiable CDs	1.67		2.21		2.39		2.38		2.22
Total interest-bearing deposits	0.87		0.98		0.97		0.94		0.84
Short-term borrowings	1.66		2.28		2.41		2.41		2.49
Long-term debt	3.50		3.59		3.91		3.98		3.82
Total interest-bearing liabilities	1.24		1.36		1.39		1.35		1.23
Demand deposits - noninterest-bearing	—		—		—		—		—
Net interest rate spread	2.79		2.85		2.96		3.05		3.09
Impact of noninterest-bearing funds on margin	0.33		0.35		0.35		0.34		0.32
Net interest margin	3.12	%	3.20	%	3.31	%	3.39	%	3.41	%



Commercial Loan Derivative Impact
(Unaudited)
	Average Rates
	2019		2019		2019		2019		2018
Fully-taxable equivalent basis (1)	Fourth		Third		Second		First		Fourth
Commercial loans (2)(3)	4.36	%	4.70	%	4.88	%	4.95	%	4.86	%
Impact of commercial loan derivatives	(0.02	)	(0.09	)	(0.03	)	(0.01	)	—
Total commercial - as reported	4.34	%	4.61	%	4.85	%	4.94	%	4.86	%

Average 1 Month LIBOR	1.79	%	2.18	%	2.44	%	2.50	%	2.35	%


(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.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data

(Unaudited)



	Three Months Ended
(dollar amounts in millions, except per share data, share count in thousands)	December 31,			September 30,		June 30,			March 31,		December 31,
	2019			2019		2019			2019		2018
Interest income	$	1,011		$	1,052	$	1,068		$	1,070	$	1,056
Interest expense	231			253		256			248		223
Net interest income	780			799		812			822		833
Provision for credit losses	79			82		59			67		60
Net interest income after provision for credit losses	701			717		753			755		773
Service charges on deposit accounts	95			98		92			87		94
Card and payment processing income	64			64		63			56		58
Trust and investment management services	47			44		43			44		42
Mortgage banking income	58			54		34			21		23
Capital markets fees	31			36		34			22		34
Insurance income	24			20		23			21		21
Bank owned life insurance income	17			18		15			16		16
Gain on sale of loans and leases	16			13		13			13		16
Net (losses) gains on sales of securities	(22		)	—		(2		)	—		(19		)
Other noninterest income	42			42		59			39		44
Total noninterest income	372			389		374			319		329
Personnel costs	426			406		428			394		399
Outside data processing and other services	89			87		89			81		83
Equipment	42			41		40			40		48
Net occupancy	41			38		38			42		70
Professional services	14			16		12			12		17
Amortization of intangibles	12			12		12			13		13
Marketing	9			10		11			7		15
Deposit and other insurance expense	10			8		8			8		9
Other noninterest expense	58			49		62			56		57
Total noninterest expense	701			667		700			653		711
Income before income taxes	372			439		427			421		391
Provision for income taxes	55			67		63			63		57
Net income	317			372		364			358		334
Dividends on preferred shares	19			18		18			19		19
Net income applicable to common shares	$	298		$	354	$	346		$	339	$	315

Average common shares - basic	1,028,621			1,034,940		1,044,802			1,046,995		1,054,460
Average common shares - diluted	1,047,123			1,051,273		1,060,280			1,065,638		1,073,055

Per common share
Net income - basic	$	0.29		$	0.34	$	0.33		$	0.32	$	0.30
Net income - diluted	0.28			0.34		0.33			0.32		0.29
Cash dividends declared	0.15			0.15		0.14			0.14		0.14

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	780		$	799	$	812		$	822	$	833
FTE adjustment	6			6		7			7		8
Net interest income (1)	786			805		819			829		841
Noninterest income	372			389		374			319		329
Total revenue (1)	$	1,158		$	1,194	$	1,193		$	1,148	$	1,170


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

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Noninterest Income

(Unaudited)



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in millions)	2019			2019			2019			2019			2018			3Q19		4Q18
Net origination and secondary marketing income	$	43		$	42		$	30		$	17		$	16		2	%	169	%
Net mortgage servicing income
Loan servicing income	15			15			15			14			14			—		7
Amortization of capitalized servicing	(13		)	(13		)	(10		)	(9		)	(8		)	—		(63	)
Operating income	2			2			5			5			6			—		(67	)
MSR valuation adjustment (1)	25			(11		)	(19		)	(10		)	—			327		100
Gains (losses) due to MSR hedging	(14		)	19			17			7			(1		)	(174	)	(1,300	)
Net MSR risk management	11			8			(2		)	(3		)	(1		)	38		1,200
Total net mortgage servicing income	$	13		$	10		$	3		$	2		$	5		30	%	160	%
All other	2			2			1			2			2			—		—
Mortgage banking income	$	58		$	54		$	34		$	21		$	23		7	%	152	%

Mortgage origination volume	$	2,490		$	2,097		$	1,922		$	1,235		$	1,538		19	%	62	%
Mortgage origination volume for sale	1,518			1,483			1,181			756			948			2		60

Third party mortgage loans serviced (2)	22,425			21,674			21,486			21,346			21,068			3		6
Mortgage servicing rights (2)	212			180			192			212			221			18		(4	)
MSR % of investor servicing portfolio (2)	0.95		%	0.83		%	0.90		%	0.99		%	1.05		%	14	%	(10	)%


(1)	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.


(2)	At period end.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Allowance for loan and lease losses, beginning of period	$	783		$	774		$	764		$	772		$	761
Loan and lease losses	(93		)	(102		)	(70		)	(97		)	(84		)
Recoveries of loans previously charged off	20			29			22			26			34
Net loan and lease losses	(73		)	(73		)	(48		)	(71		)	(50		)
Provision for loan and lease losses	74			82			58			63			61
Allowance of assets sold or transferred to loans held for sale	(1		)	—			—			—			—
Allowance for loan and lease losses, end of period	783			783			774			764			772
Allowance for unfunded loan commitments and letters of credit, beginning of period	101			101			100			96			97
Provision for (reduction in) unfunded loan commitments and letters of credit losses	5			—			1			4			(1		)
Unfunded commitment losses	(2		)	—			—			—			—
Allowance for unfunded loan commitments and letters of credit, end of period	104			101			101			100			96
Total allowance for credit losses, end of period	$	887		$	884		$	875		$	864		$	868
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.04		%	1.05		%	1.03		%	1.02		%	1.03		%
Nonaccrual loans and leases (NALs)	167			179			182			183			228
Nonperforming assets (NPAs)	157			163			168			166			200

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	36		$	40		$	21		$	31		$	13
Commercial real estate:
Construction	—			(1		)	(1		)	—			—
Commercial	—			(1		)	(2		)	2			—
Commercial real estate	—			(2		)	(3		)	2			—
Total commercial	36			38			18			33			13
Consumer:
Automobile	9			8			5			10			9
Home equity	1			2			2			3			2
Residential mortgage	1			1			1			3			2
RV and marine	4			2			2			3			2
Other consumer	22			22			20			19			22
Total consumer	37			35			30			38			37
Total net charge-offs	$	73		$	73		$	48		$	71		$	50


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2019			2019			2019			2019			2018
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.47		%	0.52		%	0.27		%	0.41		%	0.17		%
Commercial real estate:
Construction	(0.03		)	(0.40		)	(0.08		)	(0.11		)	(0.09		)
Commercial	0.01			(0.09		)	(0.12		)	0.12			—
Commercial real estate	—			(0.14		)	(0.12		)	0.08			(0.01		)
Total commercial	0.38			0.40			0.20			0.35			0.14
Consumer:
Automobile	0.30			0.26			0.17			0.32			0.30
Home equity	0.02			0.11			0.07			0.12			0.05
Residential mortgage	0.04			0.03			0.05			0.10			0.10
RV and marine	0.39			0.23			0.25			0.39			0.31
Other consumer	7.26			7.07			6.02			6.29			6.66
Total consumer	0.39			0.38			0.31			0.41			0.40
Net charge-offs as a % of average loans	0.39		%	0.39		%	0.25		%	0.38		%	0.27		%

Huntington Bancshares Incorporated

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	323		$	291		$	281		$	271		$	188
Commercial real estate	10			12			17			9			15
Automobile	4			5			4			4			5
Home equity	59			60			60			64			62
Residential mortgage	71			69			62			68			69
RV and marine	1			1			1			1			1
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	468			438			425			417			340
Other real estate, net:
Residential	9			10			10			14			19
Commercial	2			2			4			4			4
Total other real estate, net	11			12			14			18			23
Other NPAs (1)	19			32			21			26			24
Total nonperforming assets	$	498		$	482		$	460		$	461		$	387

Nonaccrual loans and leases as a % of total loans and leases	0.62		%	0.58		%	0.57		%	0.56		%	0.45		%
NPA ratio (2)	0.66			0.64			0.61			0.61			0.52
(NPA+90days)/(Loan+OREO) (3)	0.89			0.86			0.82			0.81			0.74



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Nonperforming assets, beginning of period	$	482		$	460		$	461		$	387		$	403
New nonperforming assets	175			165			117			218			109
Returns to accruing status	(20		)	(24		)	(16		)	(33		)	(21		)
Loan and lease losses	(48		)	(66		)	(34		)	(46		)	(32		)
Payments	(63		)	(38		)	(54		)	(33		)	(66		)
Sales	(28		)	(15		)	(14		)	(32		)	(6		)
Nonperforming assets, end of period	$	498		$	482		$	460		$	461		$	387


(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.

Huntington Bancshares Incorporated

Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	11		$	9		$	5		$	3		$	7
Commercial real estate	—			—			—			—			—
Automobile	8			8			7			6			8
Home equity	14			13			15			15			17
Residential mortgage (excluding loans guaranteed by the U.S. Government)	20			23			27			25			32
RV and marine	2			1			1			2			1
Other consumer	7			7			5			5			6
Total, excl. loans guaranteed by the U.S. Government	62			61			60			56			71
Add: loans guaranteed by U.S. Government	109			102			92			91			99
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government	$	171		$	163		$	152		$	147		$	170

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.08		%	0.08		%	0.08		%	0.07		%	0.09		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.14			0.14			0.12			0.12			0.13
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.23			0.22			0.20			0.20			0.23

Accruing troubled debt restructured loans:
Commercial and industrial	$	213		$	225		$	245		$	270		$	269
Commercial real estate	37			40			48			60			54
Automobile	40			39			37			37			35
Home equity	226			233			241			247			252
Residential mortgage	223			221			221			219			218
RV and marine	3			3			2			2			2
Other consumer	11			10			10			9			9
Total accruing troubled debt restructured loans	$	753		$	771		$	804		$	844		$	839

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	109		$	84		$	88		$	86		$	97
Commercial real estate	6			6			6			6			6
Automobile	2			3			3			3			3
Home equity	26			26			26			28			28
Residential mortgage	42			44			43			43			44
RV and marine	1			1			1			1			—
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	186		$	164		$	167		$	167		$	178

Huntington Bancshares Incorporated

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Common equity tier 1 risk-based capital ratio: (1)
Total shareholders’ equity	$	11,795		$	11,909		$	11,668		$	11,432		$	11,102
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,207		)	(1,207		)	(1,207		)	(1,207		)	(1,207		)
Accumulated other comprehensive income offset	256			175			273			455			609
Goodwill and other intangibles, net of related taxes	(2,153		)	(2,162		)	(2,174		)	(2,187		)	(2,200		)
Deferred tax assets that arise from tax loss and credit carryforwards	(44		)	(30		)	(30		)	(31		)	(33		)
Common equity tier 1 capital	8,647			8,685			8,530			8,462			8,271
Additional tier 1 capital
Shareholders’ preferred equity	1,207			1,207			1,207			1,207			1,207
Other	—			1			—			1			—
Tier 1 capital	9,854			9,893			9,737			9,670			9,478
Long-term debt and other tier 2 qualifying instruments	672			750			727			736			776
Qualifying allowance for loan and lease losses	887			884			875			864			868
Tier 2 capital	1,559			1,634			1,602			1,600			1,644
Total risk-based capital	$	11,413		$	11,527		$	11,339		$	11,270		$	11,122
Risk-weighted assets (RWA)(1)	$	87,513		$	86,719		$	86,332		$	85,966		$	85,687
Common equity tier 1 risk-based capital ratio (1)	9.88		%	10.02		%	9.88		%	9.84		%	9.65		%
Other regulatory capital data:
Tier 1 leverage ratio (1)	9.26			9.34			9.24			9.16			9.10
Tier 1 risk-based capital ratio (1)	11.26			11.41			11.28			11.25			11.06
Total risk-based capital ratio (1)	13.04			13.29			13.13			13.11			12.98
Non-regulatory capital data:
Tangible common equity / RWA ratio (1)	9.62			9.83			9.58			9.34			8.97


(1)	December 31, 2019, figures are estimated.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data

(Unaudited)

Quarterly common stock summary



	December 31,		September 30,		June 30,		March 31,		December 31,
	2019		2019		2019		2019		2018
Dividends, per share
Cash dividends declared per common share	$	0.15	$	0.15	$	0.14	$	0.14	$	0.14
Common shares outstanding (000)
Average - basic	1,028,621		1,034,940		1,044,802		1,046,995		1,054,460
Average - diluted	1,047,123		1,051,273		1,060,280		1,065,638		1,073,055
Ending	1,020,003		1,032,755		1,037,841		1,046,440		1,046,767
Tangible book value per common share (1)	$	8.25	$	8.25	$	7.97	$	7.67	$	7.34
Common share repurchases (000)
Number of shares repurchased	13,104		5,213		11,344		1,833		14,967

Non-regulatory capital



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2019			2019			2019			2019			2018
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	11,795		$	11,909		$	11,668		$	11,432		$	11,102
Less: goodwill	(1,990		)	(1,990		)	(1,990		)	(1,990		)	(1,989		)
Less: other intangible assets	(232		)	(244		)	(257		)	(269		)	(281		)
Add: related deferred tax liability (1)	49			51			54			56			59
Total tangible equity	9,622			9,726			9,475			9,229			8,891
Less: preferred equity	(1,203		)	(1,203		)	(1,203		)	(1,203		)	(1,203		)
Total tangible common equity	$	8,419		$	8,523		$	8,272		$	8,026		$	7,688
Total assets	$	109,002		$	108,735		$	108,247		$	108,203		$	108,781
Less: goodwill	(1,990		)	(1,990		)	(1,990		)	(1,990		)	(1,989		)
Less: other intangible assets	(232		)	(244		)	(257		)	(269		)	(281		)
Add: related deferred tax liability (1)	49			51			54			56			59
Total tangible assets	$	106,829		$	106,552		$	106,054		$	106,000		$	106,570
Tangible equity / tangible asset ratio	9.01		%	9.13		%	8.93		%	8.71		%	8.34		%
Tangible common equity / tangible asset ratio	7.88			8.00			7.80			7.57			7.21
Other data:
Number of employees (Average full-time equivalent)	15,495			15,659			15,780			15,738			15,657
Number of domestic full-service branches (2)	868			868			868			898			954
ATM Count	1,448			1,442			1,687			1,727			1,774


(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.

Huntington Bancshares Incorporated

Consolidated Annual Average Balance Sheets

(Unaudited)



	Annual Average Balances (1)
				Change from 2018								Change from 2017
(dollar amounts in millions)	2019			Amount			Percent		2018			Amount			Percent		2017
Assets
Interest-bearing deposits in Federal Reserve Bank (2)	$	552		$	430		352	%	$	122		$	122		100	%	$	—
Interest-bearing deposits in banks	142			54			61		88			(11		)	(11	)	99
Securities:
Trading account securities	136			40			42		96			(6		)	(6	)	102
Available-for-sale securities:
Taxable	10,894			194			2		10,700			(1,203		)	(10	)	11,903
Tax-exempt	2,907			(556		)	(16	)	3,463			282			9		3,181
Total available-for-sale securities	13,801			(362		)	(3	)	14,163			(921		)	(6	)	15,084
Held-to-maturity securities - taxable	8,645			2			—		8,643			535			7		8,108
Other securities	471			(113		)	(19	)	584			—			—		584
Total securities	23,053			(433		)	(2	)	23,486			(392		)	(2	)	23,878
Loans held for sale	816			181			29		635			80			14		555
Loans and leases:(3)
Commercial:
Commercial and industrial	30,549			1,662			6		28,887			1,138			4		27,749
Commercial real estate:
Construction	1,171			25			2		1,146			(52		)	(4	)	1,198
Commercial	5,702			(347		)	(6	)	6,049			39			1		6,010
Commercial real estate	6,873			(322		)	(4	)	7,195			(13		)	—		7,208
Total commercial	37,422			1,340			4		36,082			1,125			3		34,957
Consumer:
Automobile	12,343			51			—		12,292			773			7		11,519
Home equity	9,416			(499		)	(5	)	9,915			(79		)	(1	)	9,994
Residential mortgage	11,087			1,180			12		9,907			1,662			20		8,245
RV and marine	3,451			604			21		2,847			692			32		2,155
Other consumer	1,259			56			5		1,203			182			18		1,021
Total consumer	37,556			1,392			4		36,164			3,230			10		32,934
Total loans and leases	74,978			2,732			4		72,246			4,355			6		67,891
Allowance for loan and lease losses	(786		)	(39		)	(5	)	(747		)	(80		)	(12	)	(667		)
Net loans and leases	74,192			2,693			4		71,499			4,275			6		67,224
Total earning assets	99,541			2,964			3		96,577			4,154			4		92,423
Cash and due from banks	842			(342		)	(29	)	1,184			(269		)	(19	)	1,453
Intangible assets	2,246			(65		)	(3	)	2,311			(55		)	(2	)	2,366
All other assets	6,128			471			8		5,657			211			4		5,446
Total assets	$	107,971		$	2,989		3	%	$	104,982		$	3,961		4	%	$	101,021
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	19,858		$	563		3	%	$	19,295		$	1,715		10	%	$	17,580
Money market deposits	23,772			2,326			11		21,446			1,711			9		19,735
Savings and other domestic deposits	9,916			(1,167		)	(11	)	11,083			(614		)	(5	)	11,697
Core certificates of deposit (4)	5,590			1,402			33		4,188			2,069			98		2,119
Other domestic deposits of $250,000 or more	319			39			14		280			(165		)	(37	)	445
Brokered deposits and negotiable CDs	2,816			(687		)	(20	)	3,503			(172		)	(5	)	3,675
Total interest-bearing deposits	62,271			2,476			4		59,795			4,544			8		55,251
Short-term borrowings	2,444			(304		)	(11	)	2,748			(175		)	(6	)	2,923
Long-term debt	9,332			340			4		8,992			130			1		8,862
Total interest-bearing liabilities	74,047			2,512			4		71,535			4,499			7		67,036
Demand deposits - noninterest-bearing	20,061			(330		)	(2	)	20,391			(1,308		)	(6	)	21,699
All other liabilities	2,303			306			15		1,997			322			19		1,675
Shareholders’ equity	11,560			501			5		11,059			448			4		10,611
Total liabilities and shareholders’ equity	$	107,971		$	2,989		3	%	$	104,982		$	3,961		4	%	$	101,021


(1)	Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.


(2)	Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018.


(3)	Includes nonaccrual loans.


(4)	Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Interest Income / Expense(1)(2)

(Unaudited)



	Annual Interest Income / Expense
(dollar amounts in millions)	2019		2018		2017
Assets
Interest-bearing deposits in Federal Reserve Bank (3)	$	12	$	3	$	—
Interest-bearing deposits in banks	3		2		2
Securities:
Trading account securities	3		1		—
Available-for-sale securities:
Taxable	295		280		283
Tax-exempt	105		122		118
Total available-for-sale securities	400		402		401
Held-to-maturity securities - taxable	218		211		193
Other securities	16		25		20
Total securities	637		639		614
Loans held for sale	31		26		21
Loans and leases:
Commercial:
Commercial and industrial	1,441		1,337		1,142
Commercial real estate:
Construction	65		60		52
Commercial	273		283		240
Commercial real estate	338		343		292
Total commercial	1,779		1,680		1,434
Consumer:
Automobile	500		456		412
Home equity	508		512		463
Residential mortgage	422		371		301
RV and marine	171		145		118
Other consumer	165		145		118
Total consumer	1,766		1,629		1,412
Total loans and leases	3,545		3,309		2,846
Total earning assets	$	4,228	$	3,979	$	3,483
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	116	$	78	$	38
Money market deposits	260		148		66
Savings and other domestic deposits	22		24		24
Core certificates of deposit	119		72		13
Other domestic deposits of $250,000 or more	7		3		2
Brokered deposits and negotiable CDs	61		66		37
Total interest-bearing deposits	585		391		180
Short-term borrowings	54		48		25
Long-term debt	349		321		226
Total interest-bearing liabilities	988		760		431
Net interest income	$	3,240	$	3,219	$	3,052


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018. 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)	Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018 and associated interest income was not material.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Yield

(Unaudited)



	Annual Average Rates(2)
Fully-taxable equivalent basis(1)	2019		2018		2017
Assets
Interest-bearing deposits in Federal Reserve Bank (2)	2.12	%	2.33	%	—	%
Interest-bearing deposits in banks	2.01		1.97		1.56
Securities:
Trading account securities	2.17		0.80		0.18
Available-for-sale securities:
Taxable	2.71		2.61		2.38
Tax-exempt	3.61		3.53		3.71
Total available-for-sale securities	2.90		2.84		2.66
Held-to-maturity securities - taxable	2.52		2.44		2.38
Other securities	3.47		4.34		3.42
Total securities	2.76		2.72		2.57
Loans held for sale	3.76		4.15		3.75
Loans and leases: (4)
Commercial:
Commercial and industrial	4.72		4.63		4.12
Commercial real estate:
Construction	5.51		5.26		4.36
Commercial	4.79		4.67		4.00
Commercial real estate	4.91		4.77		4.06
Total commercial	4.75		4.66		4.11
Consumer:
Automobile	4.05		3.71		3.58
Home equity	5.40		5.16		4.63
Residential mortgage	3.81		3.74		3.65
RV and marine	4.95		5.09		5.45
Other consumer	13.11		12.04		11.53
Total consumer	4.70		4.50		4.28
Total loans and leases	4.73		4.58		4.19
Total earning assets	4.25		4.12		3.77
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.58	%	0.40	%	0.21	%
Money market deposits	1.09		0.69		0.33
Savings and other domestic deposits	0.22		0.22		0.21
Core certificates of deposit (5)	2.13		1.72		0.60
Other domestic deposits of $250,000 or more	1.82		1.25		0.52
Brokered deposits and negotiable CDs	2.18		1.88		1.00
Total interest-bearing deposits	0.94		0.65		0.33
Short-term borrowings	2.23		1.74		0.86
Long-term debt	3.74		3.57		2.56
Total interest bearing liabilities	1.34		1.06		0.64
Demand deposits - noninterest-bearing	—		—		—
Net interest rate spread	2.91		3.06		3.13
Impact of noninterest-bearing funds on margin	0.35		0.27		0.17
Net interest margin	3.26	%	3.33	%	3.30	%

Commercial Loan Derivative Impact

(Unaudited)



	Annual Average Rates
Fully-taxable equivalent basis(1)	2019		2018		2017
Commercial loans (3)(4)	4.72	%	4.59	%	4.06	%
Impact of commercial loan derivatives	0.03		0.07		0.05
Total commercial - as reported	4.75	%	4.66	%	4.11	%

Average 1 Month LIBOR	2.22	%	2.02	%	1.11	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018. See page 21 for the FTE adjustment.


(2)	Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018.


(3)	Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.


(4)	Includes the impact of nonacrrual loans.


(5)	Includes consumer certificates of deposits of $250,000 or more.

Huntington Bancshares Incorporated

Selected Annual Income Statement Data

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions, except per share data, share count in thousands)				Change								Change
	2019			Amount			Percent		2018			Amount			Percent		2017
Interest income	$	4,201		$	252		6	%	$	3,949		$	516		15	%	$	3,433
Interest expense	988			228			30		760			329			76		431
Net interest income	3,213			24			1		3,189			187			6		3,002
Provision for credit losses	287			52			22		235			34			17		201
Net interest income after provision for credit losses	2,926			(28		)	(1	)	2,954			153			5		2,801
Service charges on deposit accounts	372			8			2		364			11			3		353
Card and payment processing income	246			22			10		224			18			9		206
Trust and investment management services	178			7			4		171			15			10		156
Mortgage banking income	167			59			55		108			(23		)	(18	)	131
Capital markets fees	123			15			14		108			18			20		90
Insurance income	88			6			7		82			1			1		81
Bank owned life insurance income	66			(1		)	(1	)	67			—			—		67
Gain on sale of loans and leases	55			—			—		55			(1		)	(2	)	56
Net (losses) gains on sales of securities	(24		)	(3		)	(14	)	(21		)	(17		)	(425	)	(4		)
Other noninterest income	183			20			12		163			(8		)	(5	)	171
Total noninterest income	1,454			133			10		1,321			14			1		1,307
Personnel costs	1,654			95			6		1,559			35			2		1,524
Outside data processing and other services	346			52			18		294			(19		)	(6	)	313
Equipment	163			(1		)	(1	)	164			(7		)	(4	)	171
Net occupancy	159			(25		)	(14	)	184			(28		)	(13	)	212
Professional services	54			(6		)	(10	)	60			(9		)	(13	)	69
Amortization of intangibles	49			(4		)	(8	)	53			(3		)	(5	)	56
Marketing	37			(16		)	(30	)	53			(7		)	(12	)	60
Deposit and other insurance expense	34			(29		)	(46	)	63			(15		)	(19	)	78
Other noninterest expense	225			8			4		217			(14		)	(6	)	231
Total noninterest expense	2,721			74			3		2,647			(67		)	(2	)	2,714
Income before income taxes	1,659			31			2		1,628			234			17		1,394
Provision for income taxes	248			13			6		235			27			13		208
Net income	1,411			18			1		1,393			207			17		1,186
Dividends on preferred shares	74			4			6		70			(6		)	(8	)	76
Net income applicable to common shares	$	1,337		$	14		1	%	$	1,323		$	213		19	%	$	1,110
Average common shares - basic	1,038,840			(42,702		)	(4	)%	1,081,542			(3,144		)	—	%	1,084,686
Average common shares - diluted	1,056,079			(49,906		)	(5	)	1,105,985			(30,201		)	(3	)	1,136,186
Per common share
Net income - basic	$	1.29		$	0.07		6		$	1.22		$	0.20		20		$	1.02
Net income - diluted	1.27			0.07			6		1.20			0.20			20		1.00
Cash dividends declared	0.58			0.08			16		0.50			0.15			43		0.35
Revenue - fully taxable equivalent (FTE)
Net interest income	$	3,213		$	24		1		$	3,189		$	187		6		$	3,002
FTE adjustment (1)	26			(4		)	(13	)	30			(20		)	(40	)	50
Net interest income	3,239			20			1		3,219			167			5		3,052
Noninterest income	1,454			133			10		1,321			14			1		1,307
Total revenue (1)	$	4,693		$	153		3	%	$	4,540		$	181		4	%	$	4,359


(1)	On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.

Huntington Bancshares Incorporated

Annual Mortgage Banking Income

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions)	2019			2018			2017			2016			2015
Net origination and secondary marketing income	$	132		$	79		$	95		$	100		$	91
Net mortgage servicing income
Loan servicing income	59			56			52			46			43
Amortization of capitalized servicing	(45		)	(33		)	(29		)	(28		)	(27		)
Operating income	14			23			23			18			16
MSR valuation adjustment (1)	(15		)	7			1			1			(4		)
Gains (losses) due to MSR hedging	29			(8		)	—			(1		)	(2		)
Net MSR risk management	14			(1		)	1			—			(6		)
Total net mortgage servicing income	$	28		$	22		$	24		$	18		$	10
All other	7			7			12			10			11
Mortgage banking income	$	167		$	108		$	131		$	128		$	112

Mortgage origination volume	$	7,744		$	6,996		$	6,634		$	5,822		$	4,705
Mortgage origination volume for sale	4,938			4,061			3,912			3,822			3,237

Third party mortgage loans serviced (2)	22,425			21,068			19,989			18,852			16,168
Mortgage servicing rights (2)	212			221			202			186			161
MSR % of investor servicing portfolio	0.95		%	1.05		%	1.01		%	0.99		%	0.99		%


(1)	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.


(2)	At period end.

Huntington Bancshares Incorporated

Annual Credit Reserves Analysis

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions)	2019			2018			2017			2016			2015
Allowance for loan and lease losses, beginning of period	$	772		$	691		$	638		$	598		$	605
Loan and lease losses	(362		)	(268		)	(252		)	(227		)	(218		)
Recoveries of loans previously charged off	97			123			93			118			130
Net loan and lease losses	(265		)	(145		)	(159		)	(109		)	(88		)
Provision for loan and lease losses	277			226			212			169			89
Allowance of assets sold or transferred to loans held for sale	(1		)	—			—			(20		)	(8		)
Allowance for loan and lease losses, end of period	783			772			691			638			598
Allowance for unfunded loan commitments and letters of credit, beginning of period	96			87			98			72			61
Provision for (reduction in) unfunded loan commitments and letters of credit losses	10			9			(11		)	22			11
Fair value of acquired AULC				—			—			4			—
Unfunded commitment losses	(2		)
Allowance for unfunded loan commitments and letters of credit, end of period	104			96			87			98			72
Total allowance for credit losses	$	887		$	868		$	778		$	736		$	670
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.04		%	1.03		%	0.99		%	0.95		%	1.19		%
Nonaccrual loans and leases (NALs)	167			228			198			151			161
Nonperforming assets (NPAs)	157			200			178			133			150

Huntington Bancshares Incorporated

Annual Net Charge-Off Analysis

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions)	2019			2018			2017			2016			2015
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	128		$	32		$	42		$	45		$	28
Commercial real estate:
Construction	(2		)	(1		)	(5		)	(2		)	(1		)
Commercial	(1		)	(17		)	(6		)	(24		)	(15		)
Commercial real estate	(3		)	(18		)	(11		)	(26		)	(16		)
Total commercial	125			14			31			19			12
Consumer:
Automobile	32			34			42			32			20
Home equity	8			6			5			9			20
Residential mortgage	6			6			6			6			10
RV and marine	11			9			10			2			—
Other consumer	83			76			65			41			26
Total consumer	140			131			128			90			76
Total net charge-offs	$	265		$	145		$	159		$	109		$	88

Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.42		%	0.11		%	0.15		%	0.19		%	0.14		%
Commercial real estate:
Construction	(0.15		)	(0.13		)	(0.36		)	(0.19		)	(0.08		)
Commercial	(0.02		)	(0.26		)	(0.10		)	(0.49		)	(0.37		)
Commercial real estate	(0.04		)	(0.24		)	(0.15		)	(0.44		)	(0.32		)
Total commercial	0.33			0.04			0.09			0.06			0.05
Consumer:
Automobile	0.26			0.27			0.36			0.30			0.23
Home equity	0.08			0.06			0.05			0.10			0.23
Residential mortgage	0.06			0.06			0.08			0.09			0.17
RV and marine	0.31			0.32			0.48			0.33			—
Other consumer	6.62			6.27			6.36			5.53			5.44
Total consumer	0.37			0.36			0.39			0.32			0.32
Net charge-offs as a % of average loans	0.35		%	0.20		%	0.23		%	0.19		%	0.18		%

Huntington Bancshares Incorporated

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)



	December 31,
(dollar amounts in millions)	2019			2018			2017			2016			2015
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	323		$	188		$	161		$	234		$	175
Commercial real estate	10			15			29			20			29
Automobile	4			5			6			6			7
Home equity	59			62			68			72			66
Residential mortgage	71			69			84			91			95
RV and marine	1			1			1			—			—
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	468			340			349			423			372
Other real estate, net:
Residential	9			19			24			31			24
Commercial	2			4			9			20			3
Total other real estate, net	11			23			33			51			27
Other NPAs (1)	19			24			7			7			—
Total nonperforming assets (3)	$	498		$	387		$	389		$	481		$	399

Nonaccrual loans and leases as a % of total loans and leases	0.62		%	0.45		%	0.50		%	0.63		%	0.74		%
NPA ratio (2)	0.66			0.52			0.55			0.72			0.79



	December 31,
(dollar amounts in millions)	2019			2018			2017			2016			2015
Nonperforming assets, beginning of period	$	387		$	389		$	481		$	399		$	338
New nonperforming assets	675			477			415			633			569
Returns to accruing status	(93		)	(93		)	(118		)	(127		)	(101		)
Loan and lease losses	(194		)	(114		)	(95		)	(135		)	(150		)
Payments	(188		)	(245		)	(252		)	(210		)	(212		)
Sales and held-for-sale transfers	(89		)	(27		)	(42		)	(79		)	(45		)
Nonperforming assets, end of period (2)	$	498		$	387		$	389		$	481		$	399


(1)	Other nonperforming assets at December 31, 2019 and 2018 include certain nonaccrual loans held-for-sale. Amounts prior to December 31, 2018 includes certain impaired securities.


(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 nonperforming assets balance.

Huntington Bancshares Incorporated

Annual Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)



	December 31,
(dollar amounts in millions)	2019			2018			2017			2016			2015
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	11		$	7		$	9		$	18		$	9
Commercial real estate	—			—			3			17			10
Automobile	8			8			7			10			7
Home equity	14			17			18			12			9
Residential mortgage (excluding loans guaranteed by the U.S. Government)	20			32			21			15			14
RV and marine	2			1			1			1			—
Other consumer	7			6			5			4			1
Total, excl. loans guaranteed by the U.S. Government	62			71			64			77			50
Add: loans guaranteed by U.S. Government	109			99			51			52			56
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	171		$	170		$	115		$	129		$	106
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.08		%	0.09		%	0.09		%	0.12		%	0.10		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.14			0.13			0.07			0.08			0.11
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.23			0.23			0.16			0.19			0.21
Accruing troubled debt restructured loans:
Commercial and industrial	$	213		$	269		$	300		$	210		$	236
Commercial real estate	37			54			78			77			115
Automobile	40			35			30			26			25
Home equity	226			252			265			270			199
Residential mortgage	223			218			224			243			265
RV and marine	3			2			1			—			—
Other consumer	11			9			8			4			4
Total accruing troubled debt restructured loans	$	753		$	839		$	906		$	830		$	844
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	109		$	97		$	82		$	107		$	57
Commercial real estate	6			6			15			5			17
Automobile	2			3			4			5			6
Home equity	26			28			28			28			21
Residential mortgage	42			44			55			59			72
RV and marine	1			—			—			—			—
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	186		$	178		$	184		$	204		$	173

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - January 23, 2020

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports