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/	hban202006308kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban202006308k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

June 30, 2020

Table of Contents



Quarterly Key Statistics	1

Year to Date 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 Year to Date Average Balance Sheets	18

Consolidated Year to Date Net Interest Margin - Interest Income / Expense	19

Consolidated Year to Date Net Interest Margin - Yield	20

Selected Year to Date Income Statement Data	21

Year to Date Mortgage Banking Income	22

Year to Date Credit Reserves Analysis	23

Year to Date Net Charge-Off Analysis	24

Year to Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	25

Year to Date 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.

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)	June 30,			March 31,			June 30,			Percent Changes vs.
(dollar amounts in millions, except per share data)	2020			2020			2019			1Q20		2Q19
Net interest income (2)	$	797		$	796		$	819		—	%	(3	)%
FTE adjustment	(5		)	(6		)	(7		)	17		29
Net interest income	792			790			812			—		(2	)
Provision for credit losses	327			441			59			(26	)	454
Noninterest income	391			361			374			8		5
Noninterest expense	675			652			700			4		(4	)
Income before income taxes	181			58			427			212		(58	)
Provision for income taxes	31			10			63			210		(51	)
Net income	150			48			364			213		(59	)
Dividends on preferred shares	19			18			18			6		6
Net income applicable to common shares	$	131		$	30		$	346		337	%	(62	)%

Net income per common share - diluted	$	0.13		$	0.03		$	0.33		333	%	(61	)%
Cash dividends declared per common share	0.15			0.15			0.14			—		7
Tangible book value per common share at end of period	8.32			8.28			7.97			—		4
Number of common shares repurchased	—			7,088			11,344			(100	)	(100	)
Average common shares - basic	1,016			1,018			1,045			—		(3	)
Average common shares - diluted	1,029			1,035			1,060			(1	)	(3	)
Ending common shares outstanding	1,017			1,014			1,038			—		(2	)
Return on average assets	0.51		%	0.17		%	1.36		%
Return on average common shareholders’ equity	5.0			1.1			13.5
Return on average tangible common shareholders’ equity (1)	6.7			1.8			17.7
Net interest margin (2)	2.94			3.14			3.31
Efficiency ratio (3)	55.9			55.4			57.6
Effective tax rate	17.2			17.0			14.6
Average total assets	$	118,191		$	110,147		$	107,479		7		10
Average earning assets	109,038			101,783			99,188			7		10
Average loans and leases	80,199			75,696			74,932			6		7
Average loans and leases - linked quarter annualized growth rate	23.8		%	3.2		%	0.8		%
Average total deposits	$	93,222		$	82,733		$	81,718		13		14
Average core deposits (4)	88,878			79,528			78,723			12		13
Average core deposits - linked quarter annualized growth rate	47.0		%	(0.8		)%	(1.6		)%
Average shareholders’ equity	11,945			11,636			11,475			3		4
Average common total shareholders' equity	10,590			10,433			10,272			2		3
Average tangible common shareholders' equity	8,429			8,264			8,075			2		4
Total assets at end of period	118,425			113,897			108,247			4		9
Total shareholders’ equity at end of period	12,314			11,769			11,668			5		6

NCOs as a % of average loans and leases	0.54		%	0.62		%	0.25		%
NAL ratio	0.81			0.72			0.57
NPA ratio (5)	0.89			0.75			0.61
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	2.12			1.93			1.03
Common equity tier 1 risk-based capital ratio (6)	9.84			9.47			9.88
Tangible common equity / tangible asset ratio (7)	7.28			7.52			7.80

See Notes to the Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year to Date Key Statistics

(Unaudited)



	Six Months Ended June 30,						Change
(dollar amounts in millions, except per share data)	2020			2019			Amount			Percent
Net interest income (2)	$	1,593		$	1,648		$	(55	)	(3	)%
FTE adjustment	(11		)	(14		)	3			21
Net interest income	1,582			1,634			(52		)	(3	)
Provision for credit losses	768			126			642			510
Noninterest income	752			693			59			9
Noninterest expense	1,327			1,353			(26		)	(2	)
Income before income taxes	239			848			(609		)	(72	)
Provision for income taxes	41			126			(85		)	(67	)
Net Income	198			722			(524		)	(73	)
Dividends on preferred shares	37			37			—			—
Net income applicable to common shares	$	161		$	685		$	(524	)	(76	)%

Net income per common share - diluted	$	0.16		$	0.64		$	(0.48	)	(75	)%
Cash dividends declared per common share	0.30			0.28			0.02			7

Average common shares - basic	1,017			1,046			(29		)	(3	)
Average common shares - diluted	1,032			1,063			(31		)	(3	)

Return on average assets	0.35		%	1.35		%
Return on average common shareholders’ equity	3.1			13.7
Return on average tangible common shareholders’ equity (1)	4.3			18.0
Net interest margin (2)	3.04			3.35
Efficiency ratio (3)	55.7			56.7
Effective tax rate	17.2			14.8

Average total assets	$	114,169		$	107,495		$	6,674		6
Average earning assets	105,410			99,200			6,210			6
Average loans and leases	77,947			74,853			3,094			4
Average total deposits	87,977			82,242			5,735			7
Average core deposits (4)	83,758			78,877			4,881			6
Average shareholders’ equity	11,790			11,317			473			4
Average common total shareholders' equity	10,511			10,113			398			4
Average tangible common shareholders' equity	8,347			7,912			435			5

NCOs as a % of average loans and leases	0.58		%	0.32		%
NAL ratio	0.81			0.57
NPA ratio (5)	0.89			0.61

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 nonperforming assets, which includes certain impaired securities and/or nonaccrual loans held for sale, and other real estate owned.


(6)	June 30, 2020, 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



	June 30,			December 31,
(dollar amounts in millions)	2020			2019			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,285		$	1,045		23	%
Interest-bearing deposits in Federal Reserve Bank	5,008			125			3,906
Interest-bearing deposits in banks	82			102			(20	)
Trading account securities	45			99			(55	)
Available-for-sale securities	13,297			14,149			(6	)
Held-to-maturity securities	9,416			9,070			4
Other securities	438			441			(1	)
Loans held for sale	1,165			877			33
Loans and leases (1)	80,139			75,404			6
Allowance for loan and lease losses	(1,702		)	(783		)	(117	)
Net loans and leases	78,437			74,621			5
Bank owned life insurance	2,560			2,542			1
Premises and equipment	751			763			(2	)
Goodwill	1,990			1,990			—
Service rights and other intangible assets	411			475			(13	)
Other assets	3,540			2,703			31
Total assets	$	118,425		$	109,002		9	%

Liabilities and shareholders’ equity
Liabilities
Deposits (2)	$	93,691		$	82,347		14	%
Short-term borrowings	146			2,606			(94	)
Long-term debt	9,753			9,849			(1	)
Other liabilities	2,521			2,405			5
Total liabilities	106,111			97,207			9

Shareholders' equity
Preferred stock	1,697			1,203			41
Common stock	10			10			—
Capital surplus	8,743			8,806			(1	)
Less treasury shares, at cost	(59		)	(56		)	(5	)
Accumulated other comprehensive gain (loss)	290			(256		)	213
Retained earnings (deficit)	1,633			2,088			(22	)
Total shareholders’ equity	12,314			11,795			4
Total liabilities and shareholders’ equity	$	118,425		$	109,002		9	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares outstanding	1,017,309,583			1,020,003,482
Treasury shares outstanding	4,999,371			4,537,605
Preferred stock, authorized shares	6,617,808			6,617,808
Preferred shares outstanding	745,500			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)



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2020				2020				2019				2019				2019
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	34,879	44	%	$	32,959	42	%	$	30,664	41	%	$	30,394	41	%	$	30,608	41	%
Commercial real estate:
Construction	1,200		1		1,180		2		1,123		1		1,157		2		1,146		1
Commercial	5,979		7		5,793		7		5,551		7		5,698		8		5,742		8
Commercial real estate	7,179		8		6,973		9		6,674		8		6,855		10		6,888		9
Total commercial	42,058		52		39,932		51		37,338		49		37,249		51		37,496		50
Consumer:
Automobile	12,678		16		12,907		17		12,797		17		12,292		15		12,173		16
Home equity	8,866		11		9,010		11		9,093		12		9,300		12		9,419		12
Residential mortgage	11,621		15		11,398		15		11,376		15		11,247		15		11,182		15
RV and marine	3,843		5		3,643		5		3,563		5		3,553		5		3,492		5
Other consumer	1,073		1		1,145		1		1,237		2		1,251		2		1,271		2
Total consumer	38,081		48		38,103		49		38,066		51		37,643		49		37,537		50
Total loans and leases	$	80,139	100	%	$	78,035	100	%	$	75,404	100	%	$	74,892	100	%	$	75,033	100	%



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2020				2020				2019				2019				2019
Ending Balances by Business Segment:
Consumer and Business Banking	$	27,173	34	%	$	21,544	28	%	$	21,716	29	%	$	21,963	30	%	$	22,128		30	%
Commercial Banking	26,916		34		29,421		38		27,050		36		27,090		36		27,311			36
Vehicle Finance	19,345		24		20,552		26		20,190		27		19,484		26		19,417			26
RBHPCG	6,576		8		6,457		8		6,366		8		6,294		8		6,179			8
Treasury / Other	129		—		61		—		82		—		61		—		(2		)	—
Total loans and leases	$	80,139	100	%	$	78,035	100	%	$	75,404	100	%	$	74,892	100	%	$	75,033		100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	25,379	32	%	$	21,593	29	%	$	21,845	30	%	$	22,092	30	%	$	22,139		30	%
Commercial Banking	28,173		35		27,238		36		26,993		36		27,295		36		27,350			36
Vehicle Finance	19,822		25		20,307		27		19,852		26		19,370		26		19,298			26
RBHPCG	6,498		8		6,415		8		6,314		8		6,237		8		6,054			8
Treasury / Other	327		—		143		—		99		—		102		—		91			—
Total loans and leases	$	80,199	100	%	$	75,696	100	%	$	75,103	100	%	$	75,096	100	%	$	74,932		100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2020				2020				2019				2019				2019
Ending Balances by Type:
Demand deposits - noninterest-bearing	$	27,574	29	%	$	21,039	24	%	$	20,247	25	%	$	20,553	25	%	$	19,383	24	%
Demand deposits - interest-bearing	22,961		25		23,115		27		20,583		25		19,976		24		19,085		24
Money market deposits	25,312		27		25,068		29		24,726		30		23,977		29		23,952		30
Savings and other domestic deposits	11,034		12		9,845		11		9,549		12		9,566		12		9,803		12
Core certificates of deposit (1)	2,478		3		3,599		4		4,356		5		5,443		7		5,703		7
Total core deposits	89,359		96		82,666		95		79,461		97		79,515		97		77,926		97
Other domestic deposits of $250,000 or more	209		—		276		—		313		—		326		—		316		—
Brokered deposits and negotiable CDs	4,123		4		3,888		5		2,573		3		2,554		3		2,640		3
Total deposits	$	93,691	100	%	$	86,830	100	%	$	82,347	100	%	$	82,395	100	%	$	80,882	100	%
Total core deposits:
Commercial	$	41,630	47	%	$	38,064	46	%	$	34,957	44	%	$	35,247	44	%	$	33,371	43	%
Consumer	47,729		53		44,602		54		44,504		56		44,268		56		44,555		57
Total core deposits	$	89,359	100	%	$	82,666	100	%	$	79,461	100	%	$	79,515	100	%	$	77,926	100	%
Ending Balances by Business Segment:
Consumer and Business Banking	$	59,202	63	%	$	51,898	60	%	$	51,675	63	%	$	51,671	63	%	$	51,577	64	%
Commercial Banking	22,041		24		23,530		27		20,762		25		21,088		26		20,049		25
Vehicle Finance	824		1		525		1		376		—		363		—		339		—
RBHPCG	6,834		7		6,265		7		6,370		8		6,101		7		5,863		7
Treasury / Other (2)	4,790		5		4,612		5		3,164		4		3,172		4		3,054		4
Total deposits	$	93,691	100	%	$	86,830	100	%	$	82,347	100	%	$	82,395	100	%	$	80,882	100	%



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2020				2020				2019				2019				2019
Average Balances by Business Segment:
Consumer and Business Banking	$	56,858	61	%	$	51,296	62	%	$	52,059	63	%	$	51,604	63	%	$	51,935	64	%
Commercial Banking	24,414		26		21,525		26		20,974		25		21,227		26		20,361		25
Vehicle Finance	646		1		366		—		347		—		359		—		322		—
RBHPCG	6,565		7		6,100		7		6,113		7		5,958		7		5,918		7
Treasury / Other (2)	4,739		5		3,446		5		3,099		5		3,101		4		3,182		4
Total deposits	$	93,222	100	%	$	82,733	100	%	$	82,592	100	%	$	82,249	100	%	$	81,718	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)
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in millions)	2020			2020			2019			2019			2019			1Q20		2Q19
Assets
Interest-bearing deposits in Federal Reserve Bank	$	3,413		$	680		$	672		$	514		$	518		402	%	559	%
Interest-bearing deposits in banks	169			150			176			149			135			13		25
Securities:
Trading account securities	39			95			109			137			161			(59	)	(76	)
Available-for-sale securities:
Taxable	11,179			11,671			11,221			11,096			10,501			(4	)	6
Tax-exempt	2,728			2,753			2,791			2,820			2,970			(1	)	(8	)
Total available-for-sale securities	13,907			14,424			14,012			13,916			13,471			(4	)	3
Held-to-maturity securities - taxable	9,798			9,428			8,592			8,566			8,771			4		12
Other securities	474			445			448			437			466			7		2
Total securities	24,218			24,392			23,161			23,056			22,869			(1	)	6
Loans held for sale	1,039			865			950			877			734			20		42
Loans and leases: (2)
Commercial:
Commercial and industrial	35,284			30,849			30,373			30,632			30,644			14		15
Commercial real estate:
Construction	1,201			1,165			1,181			1,165			1,168			3		3
Commercial	5,885			5,566			5,625			5,762			5,732			6		3
Commercial real estate	7,086			6,731			6,806			6,927			6,900			5		3
Total commercial	42,370			37,580			37,179			37,559			37,544			13		13
Consumer:
Automobile	12,681			12,924			12,607			12,181			12,219			(2	)	4
Home equity	8,897			9,026			9,192			9,353			9,482			(1	)	(6	)
Residential mortgage	11,463			11,391			11,330			11,214			11,010			1		4
RV and marine	3,706			3,590			3,564			3,528			3,413			3		9
Other consumer	1,082			1,185			1,231			1,261			1,264			(9	)	(14	)
Total consumer	37,829			38,116			37,924			37,537			37,388			(1	)	1
Total loans and leases	80,199			75,696			75,103			75,096			74,932			6		7
Allowance for loan and lease losses	(1,557		)	(1,239		)	(787		)	(799		)	(778		)	(26	)	(100	)
Net loans and leases	78,642			74,457			74,316			74,297			74,154			6		6
Total earning assets	109,038			101,783			100,062			99,692			99,188			7		10
Cash and due from banks	1,299			914			864			817			835			42		56
Intangible assets	2,206			2,217			2,228			2,240			2,252			—		(2	)
All other assets	7,205			6,472			6,346			6,216			5,982			11		20
Total assets	$	118,191		$	110,147		$	108,713		$	108,166		$	107,479		7	%	10	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	23,878		$	21,202		$	20,140		$	19,796		$	19,693		13	%	21	%
Money market deposits	25,728			24,697			24,560			24,266			23,305			4		10
Savings and other domestic deposits	10,609			9,632			9,552			9,681			10,105			10		5
Core certificates of deposit (3)	3,003			3,943			4,795			5,666			5,860			(24	)	(49	)
Other domestic deposits of $250,000 or more	230			321			313			315			310			(28	)	(26	)
Brokered deposits and negotiable CDs	4,114			2,884			2,589			2,599			2,685			43		53
Total interest-bearing deposits	67,562			62,679			61,949			62,323			61,958			8		9
Short-term borrowings	826			3,383			1,965			2,331			3,166			(76	)	(74	)
Long-term debt	9,802			10,076			9,886			9,536			8,914			(3	)	10
Total interest-bearing liabilities	78,190			76,138			73,800			74,190			74,038			3		6
Demand deposits - noninterest-bearing	25,660			20,054			20,643			19,926			19,760			28		30
All other liabilities	2,396			2,319			2,386			2,336			2,206			3		9
Shareholders’ equity	11,945			11,636			11,884			11,714			11,475			3		4
Total liabilities and shareholders’ equity	$	118,191		$	110,147		$	108,713		$	108,166		$	107,479		7	%	10	%


(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
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollar amounts in millions)	2020		2020		2019		2019		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	$	1	$	2	$	3	$	3	$	3
Interest-bearing deposits in banks	—		1		1		1		—
Securities:
Trading account securities	—		1		1		—		1
Available-for-sale securities:
Taxable	65		76		73		74		72
Tax-exempt	19		23		24		26		27
Total available-for-sale securities	84		99		97		100		99
Held-to-maturity securities - taxable	58		59		54		54		56
Other securities	1		2		3		3		4
Total securities	143		161		155		157		160
Loans held for sale	9		7		8		9		7
Loans and leases:
Commercial:
Commercial and industrial	323		318		335		358		373
Commercial real estate:
Construction	11		14		15		16		17
Commercial	43		56		63		68		71
Commercial real estate	54		70		78		84		88
Total commercial	377		388		413		442		461
Consumer:
Automobile	121		130		131		126		123
Home equity	82		107		117		127		131
Residential mortgage	101		105		105		107		106
RV and marine	43		44		45		44		42
Other consumer	30		36		39		42		42
Total consumer	377		422		437		446		444
Total loans and leases	754		810		850		888		905
Total earning assets	$	907	$	981	$	1,017	$	1,058	$	1,075

Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	4	$	23	$	32	$	29	$	28
Money market deposits	25		50		61		73		67
Savings and other domestic deposits	3		4		5		5		6
Core certificates of deposit (3)	7		19		25		31		32
Other domestic deposits of $250,000 or more	5		1		3		1		1
Brokered deposits and negotiable CDs	3		8		10		15		16
Total interest-bearing deposits	47		105		136		154		150
Short-term borrowings	1		12		8		13		19
Long-term debt	62		68		87		86		87
Total interest bearing liabilities	110		185		231		253		256
Net interest income	$	797	$	796	$	786	$	805	$	819


(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
	June 30,		March 31,		December 31,		September 30,		June 30,
Fully-taxable equivalent basis (1)	2020		2020		2019		2019		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	0.10	%	1.08	%	1.66	%	2.19	%	2.38	%
Interest-bearing deposits in banks	0.33		1.52		1.81		2.38		2.08
Securities:
Trading account securities	1.99		3.21		2.45		2.36		1.92
Available-for-sale securities:
Taxable	2.30		2.62		2.63		2.67		2.73
Tax-exempt	2.75		3.30		3.43		3.63		3.66
Total available-for-sale securities	2.39		2.75		2.79		2.87		2.94
Held-to-maturity securities - taxable	2.39		2.50		2.50		2.51		2.54
Other securities	0.57		2.07		2.57		3.15		3.44
Total securities	2.35		2.64		2.68		2.74		2.79
Loans held for sale	3.22		3.39		3.40		3.69		4.00
Loans and leases: (3)
Commercial:
Commercial and industrial	3.62		4.12		4.31		4.57		4.82
Commercial real estate:
Construction	3.66		4.75		5.07		5.50		5.59
Commercial	2.94		4.00		4.36		4.67		4.88
Commercial real estate	3.06		4.13		4.48		4.81		5.00
Total commercial	3.53		4.12		4.34		4.61		4.85
Consumer:
Automobile	3.84		4.05		4.15		4.09		4.02
Home equity	3.73		4.75		5.03		5.38		5.56
Residential mortgage	3.51		3.70		3.73		3.80		3.84
RV and marine	4.71		4.91		4.96		4.96		4.94
Other consumer	11.10		12.39		12.71		13.34		13.29
Total consumer	4.00		4.45		4.59		4.72		4.76
Total loans and leases	3.75		4.29		4.47		4.67		4.80
Total earning assets	3.35		3.88		4.03		4.21		4.35
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.07		0.43		0.63		0.57		0.58
Money market deposits	0.40		0.81		0.99		1.20		1.15
Savings and other domestic deposits	0.10		0.17		0.20		0.22		0.23
Core certificates of deposit (4)	1.55		1.91		2.09		2.17		2.15
Other domestic deposits of $250,000 or more	1.25		1.56		1.70		1.85		1.92
Brokered deposits and negotiable CDs	0.18		1.22		1.67		2.21		2.39
Total interest-bearing deposits	0.28		0.68		0.87		0.98		0.97
Short-term borrowings	0.47		1.46		1.66		2.28		2.41
Long-term debt	2.58		2.70		3.50		3.59		3.91
Total interest-bearing liabilities	0.57		0.98		1.24		1.36		1.39
Demand deposits - noninterest-bearing	—		—		—		—		—
Net interest rate spread	2.78		2.90		2.79		2.85		2.96
Impact of noninterest-bearing funds on margin	0.16		0.24		0.33		0.35		0.35
Net interest margin	2.94	%	3.14	%	3.12	%	3.20	%	3.31	%



Commercial Loan Derivative Impact
(Unaudited)
	Average Rates
	2020		2020		2019		2019		2019
Fully-taxable equivalent basis (1)	Second		First		Fourth		Third		Second
Commercial loans (2)(3)	3.17	%	4.08	%	4.36	%	4.70	%	4.88	%
Impact of commercial loan derivatives	0.36		0.04		(0.02	)	(0.09	)	(0.03	)
Total commercial - as reported	3.53	%	4.12	%	4.34	%	4.61	%	4.85	%

Average 1 Month LIBOR	0.36	%	1.41	%	1.79	%	2.18	%	2.44	%


(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)	June 30,			March 31,		December 31,			September 30,		June 30,
(dollar amounts in millions, except per share data)	2020			2020		2019			2019		2019
Interest income	$	902		$	975	$	1,011		$	1,052	$	1,068
Interest expense	110			185		231			253		256
Net interest income	792			790		780			799		812
Provision for credit losses	327			441		79			82		59
Net interest income after provision for credit losses	465			349		701			717		753
Service charges on deposit accounts	60			87		95			98		92
Card and payment processing income	59			58		64			64		63
Trust and investment management services	45			47		47			44		43
Mortgage banking income	96			58		58			54		34
Capital markets fees	31			33		31			36		34
Insurance income	25			23		24			20		23
Bank owned life insurance income	17			16		17			18		15
Gain on sale of loans and leases	8			8		16			13		13
Net (losses) gains on sales of securities	(1		)	—		(22		)	—		(2		)
Other noninterest income	51			31		42			42		59
Total noninterest income	391			361		372			389		374
Personnel costs	418			395		426			406		428
Outside data processing and other services	90			85		89			87		89
Equipment	46			41		42			41		40
Net occupancy	39			40		41			38		38
Professional services	11			11		14			16		12
Amortization of intangibles	10			11		12			12		12
Marketing	5			9		9			10		11
Deposit and other insurance expense	9			9		10			8		8
Other noninterest expense	47			51		58			49		62
Total noninterest expense	675			652		701			667		700
Income before income taxes	181			58		372			439		427
Provision for income taxes	31			10		55			67		63
Net income	150			48		317			372		364
Dividends on preferred shares	19			18		19			18		18
Net income applicable to common shares	$	131		$	30	$	298		$	354	$	346

Average common shares - basic	1,016			1,018		1,029			1,035		1,045
Average common shares - diluted	1,029			1,035		1,047			1,051		1,060

Per common share
Net income - basic	$	0.13		$	0.03	$	0.29		$	0.34	$	0.33
Net income - diluted	0.13			0.03		0.28			0.34		0.33
Cash dividends declared	0.15			0.15		0.15			0.15		0.14

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	792		$	790	$	780		$	799	$	812
FTE adjustment	5			6		6			6		7
Net interest income (1)	797			796		786			805		819
Noninterest income	391			361		372			389		374
Total revenue (1)	$	1,188		$	1,157	$	1,158		$	1,194	$	1,193


(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
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in millions)	2020			2020			2019			2019			2019			1Q20		2Q19
Net origination and secondary marketing income	$	91		$	45		$	43		$	42		$	30		102	%	203	%
Net mortgage servicing income
Loan servicing income	14			16			15			15			15			(13	)	(7	)
Amortization of capitalized servicing	(12		)	(9		)	(13		)	(13		)	(10		)	(33	)	(20	)
Operating income	2			7			2			2			5			(71	)	(60	)
MSR valuation adjustment (1)	(6		)	(53		)	25			(11		)	(19		)	89		68
Gains (losses) due to MSR hedging	6			57			(14		)	19			17			(89	)	(65	)
Net MSR risk management	—			4			11			8			(2		)	(100	)	100
Total net mortgage servicing income	$	2		$	11		$	13		$	10		$	3		(82	)%	(33	)%
All other	3			2			2			2			1			50		200
Mortgage banking income	$	96		$	58		$	58		$	54		$	34		66	%	182	%

Mortgage origination volume	$	3,802		$	2,136		$	2,490		$	2,097		$	1,922		78	%	98	%
Mortgage origination volume for sale	2,268			1,409			1,518			1,483			1,181			61		92

Third party mortgage loans serviced (2)	23,184			22,775			22,425			21,674			21,486			2		8
Mortgage servicing rights (2)	172			165			212			180			192			4		(10	)
MSR % of investor servicing portfolio (2)	0.74		%	0.72		%	0.95		%	0.83		%	0.90		%	3	%	(18	)%


(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
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Allowance for loan and lease losses, beginning of period	$	1,504		$	783		$	780		$	774		$	764
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	—			391			—			—			—
Loan and lease losses	(123		)	(136		)	(93		)	(102		)	(70		)
Recoveries of loans previously charged off	16			19			20			29			22
Net loan and lease losses	(107		)	(117		)	(73		)	(73		)	(48		)
Provision for loan and lease losses	305			447			77			79			58
Allowance of assets sold or transferred to loans held for sale	—			—			(1		)	—			—
Allowance for loan and lease losses, end of period	1,702			1,504			783			780			774
Allowance for unfunded loan commitments and letters of credit, beginning of period	99			104			101			101			100
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	—			2			—			—			—
Provision for (reduction in) unfunded loan commitments and letters of credit losses	22			(6		)	2			3			1
Unfunded commitment losses	(2		)	(1		)	(2		)	—			—
Allowance for unfunded loan commitments and letters of credit, end of period	119			99			101			104			101
Total allowance for credit losses, end of period	$	1,821		$	1,603		$	884		$	884		$	875
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	2.12		%	1.93		%	1.04		%	1.04		%	1.03		%
Nonaccrual loans and leases (NALs)	263			270			167			178			182
Nonperforming assets (NPAs)	239			257			157			163			168
Total allowance for credit losses (ACL) as % of:
Total loans and leases	2.27		%	2.05		%	1.18		%	1.18		%	1.17		%
Nonaccrual loans and leases (NALs)	281			287			190			201			206
Nonperforming assets (NPAs)	255			273			178			184			190

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	80		$	84		$	36		$	40		$	21
Commercial real estate:
Construction	1			—			—			(1		)	(1		)
Commercial	(1		)	(1		)	—			(1		)	(2		)
Commercial real estate	—			(1		)	—			(2		)	(3		)
Total commercial	80			83			36			38			18
Consumer:
Automobile	10			7			9			8			5
Home equity	—			5			1			2			2
Residential mortgage	—			1			1			1			1
RV and marine	4			2			4			2			2
Other consumer	13			19			22			22			20
Total consumer	27			34			37			35			30
Total net charge-offs	$	107		$	117		$	73		$	73		$	48


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2020			2020			2019			2019			2019
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.90		%	1.09		%	0.47		%	0.52		%	0.27		%
Commercial real estate:
Construction	(0.01		)	0.08			(0.03		)	(0.40		)	(0.08		)
Commercial	(0.03		)	(0.06		)	0.01			(0.09		)	(0.12		)
Commercial real estate	(0.03		)	(0.03		)	—			(0.14		)	(0.12		)
Total commercial	0.75			0.89			0.38			0.40			0.20
Consumer:
Automobile	0.31			0.22			0.30			0.26			0.17
Home equity	0.08			0.19			0.02			0.11			0.07
Residential mortgage	0.02			0.02			0.04			0.03			0.05
RV and marine	0.37			0.27			0.39			0.23			0.25
Other consumer	4.80			6.45			7.26			7.07			6.02
Total consumer	0.30			0.35			0.39			0.38			0.31
Net charge-offs as a % of average loans	0.54		%	0.62		%	0.39		%	0.39		%	0.25		%

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	485		$	396		$	323		$	291		$	281
Commercial real estate	28			30			10			12			17
Automobile	8			6			4			5			4
Home equity	59			58			59			60			60
Residential mortgage	66			66			71			69			62
RV and marine	2			2			1			1			1
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	648			558			468			438			425
Other real estate, net:
Residential	5			8			9			10			10
Commercial	2			2			2			2			4
Total other real estate, net	7			10			11			12			14
Other NPAs (1)	58			18			19			32			21
Total nonperforming assets	$	713		$	586		$	498		$	482		$	460

Nonaccrual loans and leases as a % of total loans and leases	0.81		%	0.72		%	0.62		%	0.58		%	0.57		%
NPA ratio (2)	0.89			0.75			0.66			0.64			0.61
(NPA+90days)/(Loan+OREO) (3)	1.13			0.96			0.89			0.86			0.82



	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Nonperforming assets, beginning of period	$	586		$	498		$	482		$	460		$	461
New nonperforming assets	279			274			175			165			117
Returns to accruing status	(25		)	(18		)	(20		)	(24		)	(16		)
Loan and lease losses	(61		)	(91		)	(48		)	(66		)	(34		)
Payments	(63		)	(70		)	(63		)	(38		)	(54		)
Sales	(3		)	(7		)	(28		)	(15		)	(14		)
Nonperforming assets, end of period	$	713		$	586		$	498		$	482		$	460


(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)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	13		$	10		$	11		$	9		$	5
Commercial real estate	—			—			—			—			—
Automobile	8			8			8			8			7
Home equity	10			12			14			13			15
Residential mortgage (excluding loans guaranteed by the U.S. Government)	17			21			20			23			27
RV and marine	2			2			2			1			1
Other consumer	3			4			7			7			5
Total, excl. loans guaranteed by the U.S. Government	53			57			62			61			60
Add: loans guaranteed by U.S. Government	141			110			109			102			92
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government	$	194		$	167		$	171		$	163		$	152

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.07		%	0.07		%	0.08		%	0.08		%	0.08		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.18			0.14			0.14			0.14			0.12
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.24			0.21			0.23			0.22			0.20

Accruing troubled debt restructured loans:
Commercial and industrial	$	192		$	219		$	213		$	225		$	245
Commercial real estate	35			37			37			40			48
Automobile	52			42			40			39			37
Home equity	209			219			226			233			241
Residential mortgage	229			227			223			221			221
RV and marine	6			3			3			3			2
Other consumer	10			11			11			10			10
Total accruing troubled debt restructured loans	$	733		$	758		$	753		$	771		$	804

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	169		$	119		$	109		$	84		$	88
Commercial real estate	3			4			6			6			6
Automobile	2			2			2			3			3
Home equity	26			25			26			26			26
Residential mortgage	43			42			42			44			43
RV and marine	1			2			1			1			1
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	244		$	194		$	186		$	164		$	167

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Common equity tier 1 risk-based capital ratio: (1)
Total shareholders’ equity	$	12,314		$	11,769		$	11,795		$	11,909		$	11,668
Regulatory capital adjustments:
CECL transitional amount (2)	442			386			—			—			—
Shareholders’ preferred equity	(1,701		)	(1,207		)	(1,207		)	(1,207		)	(1,207		)
Accumulated other comprehensive income offset	(290		)	(227		)	256			175			273
Goodwill and other intangibles, net of related taxes	(2,129		)	(2,141		)	(2,153		)	(2,162		)	(2,174		)
Deferred tax assets that arise from tax loss and credit carryforwards	(40		)	(42		)	(44		)	(30		)	(30		)
Common equity tier 1 capital	8,596			8,538			8,647			8,685			8,530
Additional tier 1 capital
Shareholders’ preferred equity	1,701			1,207			1,207			1,207			1,207
Other	—			1			—			1			—
Tier 1 capital	10,297			9,746			9,854			9,893			9,737
Long-term debt and other tier 2 qualifying instruments	697			619			672			750			727
Qualifying allowance for loan and lease losses	1,094			1,127			887			884			875
Tier 2 capital	1,791			1,746			1,559			1,634			1,602
Total risk-based capital	$	12,088		$	11,492		$	11,413		$	11,527		$	11,339
Risk-weighted assets (RWA)(1)	$	87,324		$	90,193		$	87,512		$	86,719		$	86,332
Common equity tier 1 risk-based capital ratio (1)	9.84		%	9.47		%	9.88		%	10.02		%	9.88		%
Other regulatory capital data:
Tier 1 leverage ratio (1)	8.86			9.01			9.26			9.34			9.24
Tier 1 risk-based capital ratio (1)	11.79			10.81			11.26			11.41			11.28
Total risk-based capital ratio (1)	13.84			12.74			13.04			13.29			13.13
Non-regulatory capital data:
Tangible common equity / RWA ratio (1)	9.69			9.32			9.62			9.83			9.58


(1)	June 30, 2020, figures are estimated.


(2)	The CECL transitional amount includes the impact of Huntington's adoption of the new CECL accounting standard on January 1, 2020 and 25 percent of the increase in reserves from January 1, 2020 through June 30, 2020.

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary



	June 30,		March 31,		December 31,		September 30,		June 30,
	2020		2020		2019		2019		2019
Dividends, per share
Cash dividends declared per common share	$	0.15	$	0.15	$	0.15	$	0.15	$	0.14
Common shares outstanding
Average - basic	1,016		1,018		1,029		1,035		1,045
Average - diluted	1,029		1,035		1,047		1,051		1,060
Ending	1,017		1,014		1,020		1,033		1,038
Tangible book value per common share (1)	$	8.32	$	8.28	$	8.25	$	8.25	$	7.97
Common share repurchases
Number of shares repurchased	—		7		13		5		11

Non-regulatory capital



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2020			2020			2019			2019			2019
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	12,314		$	11,769		$	11,795		$	11,909		$	11,668
Less: goodwill	(1,990		)	(1,990		)	(1,990		)	(1,990		)	(1,990		)
Less: other intangible assets	(211		)	(222		)	(232		)	(244		)	(257		)
Add: related deferred tax liability (1)	44			47			49			51			54
Total tangible equity	10,157			9,604			9,622			9,726			9,475
Less: preferred equity	(1,697		)	(1,203		)	(1,203		)	(1,203		)	(1,203		)
Total tangible common equity	$	8,460		$	8,401		$	8,419		$	8,523		$	8,272
Total assets	$	118,425		$	113,897		$	109,002		$	108,735		$	108,247
Less: goodwill	(1,990		)	(1,990		)	(1,990		)	(1,990		)	(1,990		)
Less: other intangible assets	(211		)	(222		)	(232		)	(244		)	(257		)
Add: related deferred tax liability (1)	44			47			49			51			54
Total tangible assets	$	116,268		$	111,732		$	106,829		$	106,552		$	106,054
Tangible equity / tangible asset ratio	8.74		%	8.60		%	9.01		%	9.13		%	8.93		%
Tangible common equity / tangible asset ratio	7.28			7.52			7.88			8.00			7.80
Other data:
Number of employees (Average full-time equivalent)	15,703			15,386			15,495			15,659			15,780
Number of domestic full-service branches (2)	839			839			868			868			868
ATM Count	1,344			1,434			1,448			1,442			1,687


(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 Year To Date Average Balance Sheets

(Unaudited)



	YTD Average Balances (1)
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2020			2019			Amount			Percent
Assets
Interest-bearing deposits in Federal Reserve Bank	$	2,047		$	510		$	1,537		301	%
Interest-bearing deposits in banks	159			122			37			30
Securities:
Trading account securities	67			149			(82		)	(55	)
Available-for-sale securities:
Taxable	11,425			10,626			799			8
Tax-exempt	2,740			3,008			(268		)	(9	)
Total available-for-sale securities	14,165			13,634			531			4
Held-to-maturity securities - taxable	9,613			8,713			900			10
Other securities	460			501			(41		)	(8	)
Total securities	24,305			22,997			1,839			6
Loans held for sale	952			717			235			33
Loans and leases: (2)
Commercial:
Commercial and industrial	33,066			30,595			2,471			8
Commercial real estate:
Construction	1,183			1,171			12			1
Commercial	5,726			5,710			16			—
Commercial real estate	6,909			6,881			28			—
Total commercial	39,975			37,476			2,499			7
Consumer:
Automobile	12,803			12,290			513			4
Home equity	8,961			9,561			(600		)	(6	)
Residential mortgage	11,427			10,899			528			5
RV and marine	3,648			3,355			293			9
Other consumer	1,133			1,273			(140		)	(11	)
Total consumer	37,972			37,378			594			2
Total loans and leases	77,947			74,854			3,093			4
Allowance for loan and lease losses	(1,398		)	(779		)	(619		)	(79	)
Net loans and leases	76,549			74,075			2,474			3
Total earning assets	105,410			99,200			6,210			6
Cash and due from banks	1,106			844			262			31
Intangible assets	2,211			2,258			(47		)	(2	)
All other assets	6,840			5,972			868			15
Total assets	$	114,169		$	107,495		6,674			6	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	22,540		$	19,746		$	2,794		14	%
Money market deposits	25,213			23,121			2,092			9
Savings and other domestic deposits	10,120			10,222			(102		)	(1	)
Core certificates of deposit (3)	3,028			5,955			(2,927		)	(49	)
Other domestic deposits of $250,000 or more	720			323			397			123
Brokered deposits and negotiable CDs	3,499			3,042			457			15
Total interest-bearing deposits	65,120			62,409			2,711			4
Short-term borrowings	2,105			2,745			(640		)	(23	)
Long-term debt	9,939			8,946			993			11
Total interest-bearing liabilities	77,164			74,100			3,064			4
Demand deposits - noninterest-bearing	22,857			19,833			3,024			15
All other liabilities	2,358			2,245			113			5
Shareholders’ equity	11,790			11,317			473			4
Total liabilities and shareholders’ equity	$	114,169		$	107,495		$	6,674		6	%


(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 Year To Date Net Interest Margin - Interest Income / Expense (1)(2)

(Unaudited)



	YTD Interest Income / Expense
	Six Months Ended June 30,
(dollar amounts in millions)	2020		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	$	3	$	6
Interest-bearing deposits in banks	1		1
Securities:
Trading account securities	1		2
Available-for-sale securities:
Taxable	141		148
Tax-exempt	42		55
Total available-for-sale securities	183		203
Held-to-maturity securities - taxable	117		110
Other securities	3		10
Total securities	304		325
Loans held for sale	16		14
Loans and leases:
Commercial:
Commercial and industrial	641		748
Commercial real estate:
Construction	25		33
Commercial	99		142
Commercial real estate	124		175
Total commercial	765		923
Consumer:
Automobile	251		243
Home equity	189		264
Residential mortgage	206		210
RV and marine	87		82
Other consumer	66		84
Total consumer	799		883
Total loans and leases	1,564		1,806
Total earning assets	$	1,888	$	2,152
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	27	$	55
Money market deposits	75		126
Savings and other domestic deposits	7		12
Core certificates of deposit (3)	26		63
Other domestic deposits of $250,000 or more	6		3
Brokered deposits and negotiable CDs	11		36
Total interest-bearing deposits	152		295
Short-term borrowings	13		33
Long-term debt	130		176
Total interest-bearing liabilities	295		504
Net interest income	$	1,593	$	1,648


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. 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)	Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin - Yield

(Unaudited)



	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis (1)	2020		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	0.26	%	2.39	%
Interest-bearing deposits in banks	0.89		1.93
Securities:
Trading account securities	2.86		1.97
Available-for-sale securities:
Taxable	2.46		2.78
Tax-exempt	3.03		3.68
Total available-for-sale securities	2.57		2.98
Held-to-maturity securities - taxable	2.44		2.53
Other securities	1.30		4.01
Total securities	2.50		2.82
Loans held for sale	3.30		4.04
Loans and leases: (3)
Commercial:
Commercial and industrial	3.86		4.87
Commercial real estate:
Construction	4.19		5.58
Commercial	3.45		4.94
Commercial real estate	3.58		5.05
Total commercial	3.81		4.90
Consumer:
Automobile	3.95		3.98
Home equity	4.24		5.57
Residential mortgage	3.60		3.85
RV and marine	4.81		4.95
Other consumer	11.77		13.27
Total consumer	4.23		4.75
Total loans and leases	4.01		4.83
Total earning assets	3.60	%	4.38	%
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.24	%	0.57	%
Money market deposits	0.60		1.10
Savings and other domestic deposits	0.14		0.23
Core certificates of deposit (4)	1.71		2.13
Other domestic deposits of $250,000 or more	1.81		1.87
Brokered deposits and negotiable CDs	0.61		2.39
Total interest-bearing deposits	0.47		0.95
Short-term borrowings	1.26		2.41
Long-term debt	2.64		3.95
Total interest-bearing liabilities	0.77		1.37
Demand deposits - noninterest-bearing	—		—
Net interest rate spread	2.83		3.01
Impact of noninterest-bearing funds on margin	0.21		0.34
Net interest margin	3.04	%	3.35	%



Commercial Loan Derivative Impact
(Unaudited)
	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis (1)	2020		2019
Commercial loans (2)(3)	3.60	%	4.91	%
Impact of commercial loan derivatives	0.21		(0.01	)
Total commercial - as reported	3.81	%	4.90	%

Average 1 Month LIBOR	0.90	%	2.47	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 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 the impact of nonaccrual loans.


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

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data

(Unaudited)



	Six Months Ended June 30,						Change
(dollar amounts in millions, except per share data)	2020			2019			Amount			Percent
Interest income	$	1,877		$	2,138		$	(261	)	(12	)%
Interest expense	295			504			(209		)	(41	)
Net interest income	1,582			1,634			(52		)	(3	)
Provision for credit losses	768			126			642			510
Net interest income after provision for credit losses	814			1,508			(694		)	(46	)
Service charges on deposit accounts	148			179			(31		)	(17	)
Card and payment processing income	117			119			(2		)	(2	)
Mortgage banking income	154			55			99			180
Trust and investment management services	92			87			5			6
Insurance income	48			44			4			9
Capital markets fees	64			56			8			14
Bank owned life insurance income	32			31			1			3
Gain on sale of loans and leases	17			26			(9		)	(35	)
Net (losses) gains on sales of securities	(1		)	(2		)	1			50
Other noninterest income	81			98			(17		)	(17	)
Total noninterest income	752			693			59			9
Personnel costs	814			822			(8		)	(1	)
Outside data processing and other services	175			170			5			3
Equipment	87			80			7			9
Net occupancy	79			80			(1		)	(1	)
Professional services	22			24			(2		)	(8	)
Amortization of intangibles	21			25			(4		)	(16	)
Marketing	14			18			(4		)	(22	)
Deposit and other insurance expense	18			16			2			13
Other noninterest expense	97			118			(21		)	(18	)
Total noninterest expense	1,327			1,353			(26		)	(2	)
Income before income taxes	239			848			(609		)	(72	)
Provision for income taxes	41			126			(85		)	(67	)
Net income	198			722			(524		)	(73	)
Dividends on preferred shares	37			37			—			—
Net income applicable to common shares	$	161		$	685		$	(524	)	(76	)%
Average common shares - basic	1,017			1,046			(29		)	(3	)
Average common shares - diluted	1,032			1,063			(31		)	(3	)
Per common share
Net income - basic	$	0.16		$	0.66		$	(0.50	)	(76	)%
Net income - diluted	0.16			0.64			(0.48		)	(75	)
Cash dividends declared	0.30			0.28			0.02			7
Revenue - fully taxable equivalent (FTE)
Net interest income	$	1,582		$	1,634		$	(52	)	(3	)%
FTE adjustment (1)	11			14			(3		)	(21	)
Net interest income	1,593			1,648			(55		)	(3	)
Noninterest income	752			693			59			9
Total revenue (1)	$	2,345		$	2,341		$	4		—	%


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

Huntington Bancshares Incorporated

Year To Date Mortgage Banking Noninterest Income

(Unaudited)



	Six Months Ended June 30,						Change
(dollar amounts in millions)	2020			2019			Amount			Percent
Net origination and secondary marketing income	$	136		$	47		89			189	%
Net mortgage servicing income
Loan servicing income	30			29			1			3
Amortization of capitalized servicing	(21		)	(19		)	(2		)	(11	)
Operating income	9			10			(1		)	(10	)
MSR valuation adjustment (1)	(59		)	(29		)	(30		)	(103	)
Gains (losses) due to MSR hedging	63			24			39			163
Net MSR risk management	4			(5		)	9			—
Total net mortgage servicing income	$	13		$	5		$	8		160	%
All other	5			3			2			67
Mortgage banking income	$	154		$	55		$	99		180	%

Mortgage origination volume	$	5,938		$	3,157		$	2,781		88	%
Mortgage origination volume for sale	3,677			1,937			1,740			90

Third party mortgage loans serviced (2)	23,184			21,486			1,698			8
Mortgage servicing rights (2)	172			192			(20		)	(10	)
MSR % of investor servicing portfolio	0.74		%	0.90		%	(0.16		)%	(18	)%


(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

Year To Date Credit Reserves Analysis

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in millions)	2020			2019
Allowance for loan and lease losses, beginning of period	$	783		$	772
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	$	391		$	—
Loan and lease losses	(259		)	(167		)
Recoveries of loans previously charged off	35			48
Net loan and lease losses	(224		)	(119		)
Provision for loan and lease losses	752			121
Allowance for loan and lease losses, end of period	1,702			774
Allowance for unfunded loan commitments and letters of credit, beginning of period	$	104		$	96
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	2			—
Provision for (reduction in) unfunded loan commitments and letters of credit losses	16			5
Unfunded commitment losses	(3		)	—
Allowance for unfunded loan commitments and letters of credit, end of period	119			101
Total allowance for credit losses	$	1,821		$	875
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	2.12		%	1.03		%
Nonaccrual loans and leases (NALs)	263			182
Nonperforming assets (NPAs)	239			168
Total allowance for credit losses (ACL) as % of:
Total loans and leases	2.27		%	1.17		%
Nonaccrual loans and leases (NALs)	281			206
Nonperforming assets (NPAs)	255			190

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in millions)	2020			2019
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	164		$	52
Commercial real estate:
Construction	1			(1		)
Commercial	(2		)	—
Commercial real estate	(1		)	(1		)
Total commercial	163			51
Consumer:
Automobile	17			15
Home equity	5			5
Residential mortgage	1			4
RV and marine	6			5
Other consumer	32			39
Total consumer	61			68
Total net charge-offs	$	224		$	119


	Six Months Ended June 30,
	2020			2019
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.99		%	0.34		%
Commercial real estate:
Construction	0.04			(0.09		)
Commercial	(0.04		)	—
Commercial real estate	(0.03		)	(0.02		)
Total commercial	0.81			0.27
Consumer:
Automobile	0.26			0.24
Home equity	0.14			0.10
Residential mortgage	0.02			0.08
RV and marine	0.32			0.32
Other consumer	5.66			6.08
Total consumer	0.33			0.36
Net charge-offs as a % of average loans	0.58		%	0.32		%

Huntington Bancshares Incorporated

Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)

(Unaudited)



	June 30,
(dollar amounts in millions)	2020			2019
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	485		$	281
Commercial real estate	28			17
Automobile	8			4
Home equity	59			60
Residential mortgage	66			62
RV and marine	2			1
Other consumer	—			—
Total nonaccrual loans and leases	648			425
Other real estate, net:
Residential	5			10
Commercial	2			4
Total other real estate, net	7			14
Other NPAs (1)	58			21
Total nonperforming assets (3)	$	713		$	460

Nonaccrual loans and leases as a % of total loans and leases	0.81		%	0.57		%
NPA ratio (2)	0.89			0.61



	Six Months Ended June 30,
(dollar amounts in millions)	2020			2019
Nonperforming assets, beginning of period	$	498		$	387
New nonperforming assets	553			335
Returns to accruing status	(43		)	(49		)
Loan and lease losses	(152		)	(80		)
Payments	(133		)	(87		)
Sales and held-for-sale transfers	(10		)	(46		)
Nonperforming assets, end of period (2)	$	713		$	460


(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)	Nonaccruing troubled debt restructured loans are included in the total nonperforming assets balance.

Huntington Bancshares Incorporated

Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in millions)	2020			2019
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	13		$	5
Commercial real estate	—			—
Automobile	8			7
Home equity	10			15
Residential mortgage (excluding loans guaranteed by the U.S. Government)	17			27
RV and marine	2			1
Other consumer	3			5
Total, excl. loans guaranteed by the U.S. Government	53			60
Add: loans guaranteed by U.S. Government	141			92
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	194		$	152
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.07		%	0.08		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.18			0.12
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.24			0.20
Accruing troubled debt restructured loans:
Commercial and industrial	$	192		$	245
Commercial real estate	35			48
Automobile	52			37
Home equity	209			241
Residential mortgage	229			221
RV and marine	6			2
Other consumer	10			10
Total accruing troubled debt restructured loans	$	733		$	804
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	169		$	88
Commercial real estate	3			6
Automobile	2			3
Home equity	26			26
Residential mortgage	43			43
RV and marine	1			1
Other consumer	—			—
Total nonaccruing troubled debt restructured loans	$	244		$	167

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

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports