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

Attached files

file	filename
EX-99.1 - EX-99.1 - HUNTINGTON BANCSHARES INC /MD/	hban202009308kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban-20201022.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

September 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)	September 30,				June 30,				September 30,				Percent Changes vs.
				2020				2020				2019			2Q20			3Q19
Net interest income (2)	$	822			$	797			$	805			3	%		2	%
FTE adjustment	(5)				(5)				(6)				—			17
Net interest income	817				792				799				3			2
Provision for credit losses	177				327				82				(46)			116
Noninterest income	430				391				389				10			11
Noninterest expense	712				675				667				5			7
Income before income taxes	358				181				439				98			(18)
Provision for income taxes	55				31				67				77			(18)
Net income	303				150				372				102			(19)
Dividends on preferred shares	28				19				18				47			56
Net income applicable to common shares	$	275			$	131			$	354			110	%		(22)	%

Net income per common share - diluted	$	0.27			$	0.13			$	0.34			108	%		(21)	%
Cash dividends declared per common share	0.15				0.15				0.15				—			—
Tangible book value per common share at end of period	8.43				8.32				8.25				1			2
Number of common shares repurchased	—				—				5,213				—			(100)
Average common shares - basic	1,017				1,016				1,035				—			(2)
Average common shares - diluted	1,031				1,029				1,051				—			(2)
Ending common shares outstanding	1,017				1,017				1,033				—			(2)
Return on average assets	1.01		%		0.51		%		1.37		%
Return on average common shareholders’ equity	10.2				5.0				13.4
Return on average tangible common shareholders’ equity (1)	13.2				6.7				17.3
Net interest margin (2)	2.96				2.94				3.20
Efficiency ratio (3)	56.1				55.9				54.7
Effective tax rate	15.2				17.2				15.4
Average total assets	$	119,529			$	118,191			$	108,166			1			11
Average earning assets	110,665				109,038				99,692				1			11
Average loans and leases	80,542				80,199				75,096				—			7
Average loans and leases - linked quarter annualized growth rate	1.7		%		23.8		%		0.9		%
Average total deposits	$	95,049			$	93,222			$	82,249			2			16
Average core deposits (4)	90,692				88,878				79,335				2			14
Average core deposits - linked quarter annualized growth rate	8.2		%		47.0		%		3.1		%
Average shareholders’ equity	12,678				11,945				11,714				6			8
Average common total shareholders' equity	10,701				10,590				10,510				1			2
Average tangible common shareholders' equity	8,549				8,429				8,323				1			3
Total assets at end of period	120,116				118,425				108,735				1			10
Total shareholders’ equity at end of period	12,917				12,314				11,909				5			8

NCOs as a % of average loans and leases	0.56		%		0.54		%		0.39		%
NAL ratio	0.70				0.81				0.58
NPA ratio (5)	0.74				0.89				0.64
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	2.21				2.12				1.05
Common equity tier 1 risk-based capital ratio (6)	9.89				9.84				10.02
Tangible common equity / tangible asset ratio (7)	7.27				7.28				8.00

See Notes to the Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year to Date Key Statistics

(Unaudited)


	Nine Months Ended September 30,								Change
(dollar amounts in millions, except per share data)	2020			2019			Amount		Percent
Net interest income (2)	$	2,415		$	2,453		$	(38)	(2)	%
FTE adjustment	(16)			(20)			4		20
Net interest income	2,399			2,433			(34)		(1)
Provision for credit losses	945			208			737		354
Noninterest income	1,182			1,082			100		9
Noninterest expense	2,039			2,020			19		1
Income before income taxes	597			1,287			(690)		(54)
Provision for income taxes	96			193			(97)		(50)
Net Income	501			1,094			(593)		(54)
Dividends on preferred shares	65			55			10		18
Net income applicable to common shares	$	436		$	1,039		$	(603)	(58)	%

Net income per common share - diluted	$	0.42		$	0.98		$	(0.56)	(57)	%
Cash dividends declared per common share	0.45			0.43			0.02		5

Average common shares - basic	1,017			1,042			(25)		(2)
Average common shares - diluted	1,032			1,059			(27)		(3)

Return on average assets	0.58		%	1.36		%
Return on average common shareholders’ equity	5.5			13.6
Return on average tangible common shareholders’ equity (1)	7.3			17.7
Net interest margin (2)	3.01			3.30
Efficiency ratio (3)	55.8			56.0
Effective tax rate	16.0			15.0

Average total assets	$	115,969		$	107,721		$	8,248	8
Average earning assets	107,175			99,366			7,809		8
Average loans and leases	78,818			74,936			3,882		5
Average total deposits	90,352			82,244			8,108		10
Average core deposits (4)	86,382			79,031			7,351		9
Average shareholders’ equity	12,088			11,450			638		6
Average common total shareholders' equity	10,575			10,247			328		3
Average tangible common shareholders' equity	8,415			8,050			365		5

NCOs as a % of average loans and leases	0.57		%	0.34		%
NAL ratio	0.70			0.58
NPA ratio (5)	0.74			0.64

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)September 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


	September 30,		December 31,
(dollar amounts in millions)	2020		2019		Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,029	$	1,045	(2)	%
Interest-bearing deposits in Federal Reserve Bank	5,246		125		4,097
Interest-bearing deposits in banks	109		102		7
Trading account securities	54		99		(45)
Available-for-sale securities	14,807		14,149		5
Held-to-maturity securities	8,557		9,070		(6)


Other securities	421		441		(5)
Loans held for sale	1,303		877		49
Loans and leases (1)	81,156		75,404		8
Allowance for loan and lease losses	(1,796)		(783)		(129)
Net loans and leases	79,360		74,621		6
Bank owned life insurance	2,567		2,542		1
Premises and equipment	752		763		(1)
Goodwill	1,990		1,990		—
Service rights and other intangible assets	419		475		(12)
Other assets	3,502		2,703		30
Total assets	$	120,116	$	109,002	10	%

Liabilities and shareholders’ equity
Liabilities
Deposits (2)	$	95,154	$	82,347	16	%
Short-term borrowings	222		2,606		(91)
Long-term debt	9,174		9,849		(7)
Other liabilities	2,649		2,405		10
Total liabilities	107,199		97,207		10

Shareholders' equity
Preferred stock	2,191		1,203		82
Common stock	10		10		—
Capital surplus	8,766		8,806		—
Less treasury shares, at cost	(59)		(56)		(5)
Accumulated other comprehensive gain (loss)	257		(256)		200
Retained earnings (deficit)	1,752		2,088		(16)
Total shareholders’ equity	12,917		11,795		10
Total liabilities and shareholders’ equity	$	120,116	$	109,002	10	%

Common shares authorized (par value of $0.01)	1,500,000,000		1,500,000,000
Common shares outstanding	1,017,310,599		1,020,003,482
Treasury shares outstanding	5,066,072		4,537,605
Preferred stock, authorized shares	6,617,808		6,617,808
Preferred shares outstanding	750,500		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)


	September 30,						June 30,						March 31,						December 31,		September 30,
(dollar amounts in millions)	2020						2020						2020						2019		2019
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	34,895	43	%	$	34,879	44	%	$	32,959	42	%	$	30,664	41	%	$	30,394	41	%
Commercial real estate:
Construction	1,154		1		1,200		1		1,180		2		1,123		1		1,157		2
Commercial	6,055		7		5,979		7		5,793		7		5,551		7		5,698		8
Commercial real estate	7,209		8		7,179		8		6,973		9		6,674		8		6,855		10
Total commercial	42,104		51		42,058		52		39,932		51		37,338		49		37,249		51
Consumer:
Automobile	12,925		17		12,678		16		12,907		17		12,797		17		12,292		15
Home equity	8,904		11		8,866		11		9,010		11		9,093		12		9,300		12
Residential mortgage	12,031		15		11,621		15		11,398		15		11,376		15		11,247		15
RV and marine	4,146		5		3,843		5		3,643		5		3,563		5		3,553		5
Other consumer	1,046		1		1,073		1		1,145		1		1,237		2		1,251		2
Total consumer	39,052		49		38,081		48		38,103		49		38,066		51		37,643		49
Total loans and leases	$	81,156	100	%	$	80,139	100	%	$	78,035	100	%	$	75,404	100	%	$	74,892	100	%


	September 30,						June 30,						March 31,						December 31,		September 30,
(dollar amounts in millions)	2020						2020						2020						2019		2019
Ending Balances by Business Segment:
Consumer and Business Banking	$	27,517	34	%	$	27,173	34	%	$	21,544	28	%	$	21,716	29	%	$	21,963	30	%
Commercial Banking	26,847		33		26,916		34		29,421		38		27,050		36		27,090		36
Vehicle Finance	19,891		25		19,345		24		20,552		26		20,190		27		19,484		26
RBHPCG	6,682		8		6,576		8		6,457		8		6,366		8		6,294		8
Treasury / Other	219		—		129		—		61		—		82		—		61		—
Total loans and leases	$	81,156	100	%	$	80,139	100	%	$	78,035	100	%	$	75,404	100	%	$	74,892	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	27,315	34	%	$	25,379	32	%	$	21,593	29	%	$	21,845	30	%	$	22,092	30	%
Commercial Banking	26,809		34		28,173		35		27,238		36		26,993		36		27,295		36
Vehicle Finance	19,651		24		19,822		25		20,307		27		19,852		26		19,370		26
RBHPCG	6,630		8		6,498		8		6,415		8		6,314		8		6,237		8
Treasury / Other	137		—		327		—		143		—		99		—		102		—
Total loans and leases	$	80,542	100	%	$	80,199	100	%	$	75,696	100	%	$	75,103	100	%	$	75,096	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)


	September 30,						June 30,						March 31,						December 31,		September 30,
(dollar amounts in millions)	2020						2020						2020						2019		2019
Ending Balances by Type:
Demand deposits - noninterest-bearing	$	27,466	29	%	$	27,574	29	%	$	21,039	24	%	$	20,247	25	%	$	20,553	25	%
Demand deposits - interest-bearing	24,242		25		22,961		25		23,115		27		20,583		25		19,976		24
Money market deposits	26,230		28		25,312		27		25,068		29		24,726		30		23,977		29
Savings and other domestic deposits	11,268		12		11,034		12		9,845		11		9,549		12		9,566		12
Core certificates of deposit (1)	1,586		2		2,478		3		3,599		4		4,356		5		5,443		7
Total core deposits	90,792		96		89,359		96		82,666		95		79,461		97		79,515		97
Other domestic deposits of $250,000 or more	156		—		209		—		276		—		313		—		326		—
Brokered deposits and negotiable CDs	4,206		4		4,123		4		3,888		5		2,573		3		2,554		3

Total deposits	$	95,154	100	%	$	93,691	100	%	$	86,830	100	%	$	82,347	100	%	$	82,395	100	%
Total core deposits:
Commercial	$	43,018	47	%	$	41,630	47	%	$	38,064	46	%	$	34,957	44	%	$	35,247	44	%
Consumer	47,774		53		47,729		53		44,602		54		44,504		56		44,268		56
Total core deposits	$	90,792	100	%	$	89,359	100	%	$	82,666	100	%	$	79,461	100	%	$	79,515	100	%
Ending Balances by Business Segment:
Consumer and Business Banking	$	59,302	62	%	$	59,202	63	%	$	51,898	60	%	$	51,675	63	%	$	51,671	63	%
Commercial Banking	23,599		25		22,041		24		23,530		27		20,762		25		21,088		26
Vehicle Finance	777		1		824		1		525		1		376		—		363		—
RBHPCG	6,623		7		6,834		7		6,265		7		6,370		8		6,101		7
Treasury / Other (2)	4,853		5		4,790		5		4,612		5		3,164		4		3,172		4
Total deposits	$	95,154	100	%	$	93,691	100	%	$	86,830	100	%	$	82,347	100	%	$	82,395	100	%


	September 30,						June 30,						March 31,						December 31,		September 30,
(dollar amounts in millions)	2020						2020						2020						2019		2019
Average Balances by Business Segment:
Consumer and Business Banking	$	59,460	63	%	$	56,858	61	%	$	51,296	62	%	$	52,059	63	%	$	51,604	63	%
Commercial Banking	23,285		24		24,414		26		21,525		26		20,974		25		21,227		26
Vehicle Finance	839		1		646		1		366		—		347		—		359		—
RBHPCG	6,605		7		6,565		7		6,100		7		6,113		7		5,958		7
Treasury / Other (2)	4,860		5		4,739		5		3,446		5		3,099		5		3,101		4
Total deposits	$	95,049	100	%	$	93,222	100	%	$	82,733	100	%	$	82,592	100	%	$	82,249	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)
	September 30,		June 30,		March 31,		December 31,		September 30,		Percent Changes vs.
(dollar amounts in millions)	2020		2020		2020		2019		2019		2Q20		3Q19
Assets
Interest-bearing deposits in Federal Reserve Bank	$	5,857	$	3,413	$	680	$	672	$	514	72	%	1,039	%
Interest-bearing deposits in banks	177		169		150		176		149		5		19
Securities:
Trading account securities	49		39		95		109		137		26		(64)
Available-for-sale securities:
Taxable	10,670		11,179		11,671		11,221		11,096		(5)		(4)
Tax-exempt	2,749		2,728		2,753		2,791		2,820		1		(3)
Total available-for-sale securities	13,419		13,907		14,424		14,012		13,916		(4)		(4)


Held-to-maturity securities - taxable	8,932		9,798		9,428		8,592		8,566		(9)		4





Other securities	430		474		445		448		437		(9)		(2)
Total securities	22,830		24,218		24,392		23,161		23,056		(6)		(1)
Loans held for sale	1,259		1,039		865		950		877		21		44
Loans and leases: (2)
Commercial:
Commercial and industrial	34,669		35,284		30,849		30,373		30,632		(2)		13
Commercial real estate:
Construction	1,175		1,201		1,165		1,181		1,165		(2)		1
Commercial	6,045		5,885		5,566		5,625		5,762		3		5
Commercial real estate	7,220		7,086		6,731		6,806		6,927		2		4
Total commercial	41,889		42,370		37,580		37,179		37,559		(1)		12
Consumer:
Automobile	12,889		12,681		12,924		12,607		12,181		2		6
Home equity	8,878		8,897		9,026		9,192		9,353		—		(5)
Residential mortgage	11,817		11,463		11,391		11,330		11,214		3		5
RV and marine	4,020		3,706		3,590		3,564		3,528		8		14
Other consumer	1,049		1,082		1,185		1,231		1,261		(3)		(17)
Total consumer	38,653		37,829		38,116		37,924		37,537		2		3
Total loans and leases	80,542		80,199		75,696		75,103		75,096		—		7
Allowance for loan and lease losses	(1,720)		(1,557)		(1,239)		(787)		(799)		(10)		(115)
Net loans and leases	78,822		78,642		74,457		74,316		74,297		—		6
Total earning assets	110,665		109,038		101,783		100,062		99,692		1		11
Cash and due from banks	1,173		1,299		914		864		817		(10)		44
Intangible assets	2,195		2,206		2,217		2,228		2,240		—		(2)
All other assets	7,216		7,205		6,472		6,346		6,216		—		16
Total assets	$	119,529	$	118,191	$	110,147	$	108,713	$	108,166	1	%	11	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	23,865	$	23,878	$	21,202	$	20,140	$	19,796	—	%	21	%
Money market deposits	26,200		25,728		24,697		24,560		24,266		2		8
Savings and other domestic deposits	11,157		10,609		9,632		9,552		9,681		5		15
Core certificates of deposit (3)	2,035		3,003		3,943		4,795		5,666		(32)		(64)

Other domestic deposits of $250,000 or more	175		230		321		313		315		(24)		(44)
Brokered deposits and negotiable CDs	4,182		4,114		2,884		2,589		2,599		2		61

Total interest-bearing deposits	67,614		67,562		62,679		61,949		62,323		—		8
Short-term borrowings	162		826		3,383		1,965		2,331		(80)		(93)
Long-term debt	9,318		9,802		10,076		9,886		9,536		(5)		(2)
Total interest-bearing liabilities	77,094		78,190		76,138		73,800		74,190		(1)		4
Demand deposits - noninterest-bearing	27,435		25,660		20,054		20,643		19,926		7		38
All other liabilities	2,322		2,396		2,319		2,386		2,336		(3)		(1)
Shareholders’ equity	12,678		11,945		11,636		11,884		11,714		6		8
Total liabilities and shareholders’ equity	$	119,529	$	118,191	$	110,147	$	108,713	$	108,166	1	%	11	%

(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
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollar amounts in millions)	2020		2020		2020		2019		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	$	1	$	1	$	2	$	3	$	3
Interest-bearing deposits in banks	—		—		1		1		1
Securities:
Trading account securities	—		—		1		1		—
Available-for-sale securities:
Taxable	50		65		76		73		74
Tax-exempt	18		19		23		24		26
Total available-for-sale securities	68		84		99		97		100
Held-to-maturity securities - taxable	52		58		59		54		54



Other securities	1		1		2		3		3
Total securities	121		143		161		155		157
Loans held for sale	9		9		7		8		9
Loans and leases:
Commercial:
Commercial and industrial	325		323		318		335		358
Commercial real estate:
Construction	10		11		14		15		16
Commercial	41		43		56		63		68
Commercial real estate	51		54		70		78		84
Total commercial	376		377		388		413		442
Consumer:
Automobile	128		121		130		131		126
Home equity	84		82		107		117		127
Residential mortgage	101		101		105		105		107
RV and marine	47		43		44		45		44
Other consumer	30		30		36		39		42
Total consumer	390		377		422		437		446
Total loans and leases	766		754		810		850		888
Total earning assets	$	897	$	907	$	981	$	1,017	$	1,058

Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	3	$	4	$	23	$	32	$	29
Money market deposits	18		25		50		61		73
Savings and other domestic deposits	2		3		4		5		5
Core certificates of deposit (3)	6		11		19		25		31

Other domestic deposits of $250,000 or more	—		1		1		3		1
Brokered deposits and negotiable CDs	2		3		8		10		15

Total interest-bearing deposits	31		47		105		136		154
Short-term borrowings	—		1		12		8		13
Long-term debt	44		62		68		87		86
Total interest bearing liabilities	75		110		185		231		253
Net interest income	$	822	$	797	$	796	$	786	$	805

(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
	September 30,		June 30,		March 31,		December 31,		September 30,
Fully-taxable equivalent basis (1)	2020		2020		2020		2019		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	0.10	%	0.10	%	1.08	%	1.66	%	2.19	%
Interest-bearing deposits in banks	0.13		0.33		1.52		1.81		2.38
Securities:
Trading account securities	3.18		1.99		3.21		2.45		2.36
Available-for-sale securities:
Taxable	1.89		2.30		2.62		2.63		2.67
Tax-exempt	2.71		2.75		3.30		3.43		3.63
Total available-for-sale securities	2.06		2.39		2.75		2.79		2.87
Held-to-maturity securities - taxable	2.28		2.39		2.50		2.50		2.51



Other securities	1.23		0.57		2.07		2.57		3.15
Total securities	2.13		2.35		2.64		2.68		2.74
Loans held for sale	2.82		3.22		3.39		3.40		3.69
Loans and leases: (3)
Commercial:
Commercial and industrial	3.67		3.62		4.12		4.31		4.57
Commercial real estate:
Construction	3.40		3.66		4.75		5.07		5.50
Commercial	2.63		2.94		4.00		4.36		4.67
Commercial real estate	2.75		3.06		4.13		4.48		4.81
Total commercial	3.52		3.53		4.12		4.34		4.61
Consumer:
Automobile	3.93		3.84		4.05		4.15		4.09
Home equity	3.79		3.73		4.75		5.03		5.38
Residential mortgage	3.41		3.51		3.70		3.73		3.80
RV and marine	4.60		4.71		4.91		4.96		4.96
Other consumer	11.23		11.10		12.39		12.71		13.34
Total consumer	4.00		4.00		4.45		4.59		4.72
Total loans and leases	3.75		3.75		4.29		4.47		4.67
Total earning assets	3.22		3.35		3.88		4.03		4.21
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.05		0.07		0.43		0.63		0.57
Money market deposits	0.28		0.40		0.81		0.99		1.20
Savings and other domestic deposits	0.06		0.10		0.17		0.20		0.22
Core certificates of deposit (4)	1.03		1.55		1.91		2.09		2.17

Other domestic deposits of $250,000 or more	0.92		1.25		1.56		1.70		1.85
Brokered deposits and negotiable CDs	0.19		0.18		1.22		1.67		2.21

Total interest-bearing deposits	0.18		0.28		0.68		0.87		0.98
Short-term borrowings	0.30		0.47		1.46		1.66		2.28
Long-term debt	1.87		2.58		2.70		3.50		3.59
Total interest-bearing liabilities	0.39		0.57		0.98		1.24		1.36

Net interest rate spread	2.83		2.78		2.90		2.79		2.85
Impact of noninterest-bearing funds on margin	0.13		0.16		0.24		0.33		0.35
Net interest margin	2.96	%	2.94	%	3.14	%	3.12	%	3.20	%


Commercial Loan Derivative Impact
(Unaudited)
	Average Rates
	2020		2020		2020		2019		2019
Fully-taxable equivalent basis (1)	Third		Second		First		Fourth		Third
Commercial loans (2)(3)	3.01	%	3.17	%	4.08	%	4.36	%	4.70	%
Impact of commercial loan derivatives	0.51		0.36		0.04		(0.02)		(0.09)
Total commercial - as reported	3.52	%	3.53	%	4.12	%	4.34	%	4.61	%
Average 1 Month LIBOR	0.16	%	0.36	%	1.41	%	1.79	%	2.18	%

(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)	September 30,			June 30,			March 31,			December 31,			September 30,
			2020			2020			2020			2019			2019
Interest income	$	892		$	902		$	975		$	1,011		$	1,052
Interest expense	75			110			185			231			253
Net interest income	817			792			790			780			799
Provision for credit losses	177			327			441			79			82
Net interest income after provision for credit losses	640			465			349			701			717
Service charges on deposit accounts	76			60			87			95			98
Card and payment processing income	66			59			58			64			64
Trust and investment management services	48			45			47			47			44
Mortgage banking income	122			96			58			58			54
Capital markets fees	27			31			33			31			36
Insurance income	24			25			23			24			20
Bank owned life insurance income	17			17			16			17			18
Gain on sale of loans and leases	13			8			8			16			13
Net (losses) gains on sales of securities	—			(1)			—			(22)			—
Other noninterest income	37			51			31			42			42
Total noninterest income	430			391			361			372			389
Personnel costs	453			418			395			426			406
Outside data processing and other services	98			90			85			89			87
Equipment	44			46			41			42			41
Net occupancy	40			39			40			41			38
Professional services	12			11			11			14			16
Amortization of intangibles	10			10			11			12			12
Marketing	9			5			9			9			10
Deposit and other insurance expense	6			9			9			10			8
Other noninterest expense	40			47			51			58			49
Total noninterest expense	712			675			652			701			667
Income before income taxes	358			181			58			372			439
Provision for income taxes	55			31			10			55			67
Net income	303			150			48			317			372
Dividends on preferred shares	28			19			18			19			18
Net income applicable to common shares	$	275		$	131		$	30		$	298		$	354

Average common shares - basic	1,017			1,016			1,018			1,029			1,035
Average common shares - diluted	1,031			1,029			1,035			1,047			1,051

Per common share
Net income - basic	$	0.27		$	0.13		$	0.03		$	0.29		$	0.34
Net income - diluted	0.27			0.13			0.03			0.28			0.34
Cash dividends declared	0.15			0.15			0.15			0.15			0.15

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	817		$	792		$	790		$	780		$	799
FTE adjustment	5			5			6			6			6
Net interest income (1)	822			797			796			786			805
Noninterest income	430			391			361			372			389
Total revenue (1)	$	1,252		$	1,188		$	1,157		$	1,158		$	1,194

(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
	September 30,			June 30,			March 31,			December 31,			September 30,			Percent Changes vs.
(dollar amounts in millions)	2020			2020			2020			2019			2019			2Q20		3Q19
Net origination and secondary marketing income	$	118		$	91		$	45		$	43		$	42		30	%	181	%
Net mortgage servicing income
Loan servicing income	15			14			16			15			15			7		—
Amortization of capitalized servicing	(15)			(12)			(9)			(13)			(13)			(25)		(15)
Operating income	—			2			7			2			2			(100)		(100)
MSR valuation adjustment (1)	3			(6)			(53)			25			(11)			150		127
Gains (losses) due to MSR hedging	(1)			6			57			(14)			19			(117)		(105)
Net MSR risk management	2			—			4			11			8			100		(75)
Total net mortgage servicing income	$	2		$	2		$	11		$	13		$	10		—	%	(80)	%
All other	2			3			2			2			2			(33)		—
Mortgage banking income	$	122		$	96		$	58		$	58		$	54		27	%	126	%

Mortgage origination volume	$	3,811		$	3,802		$	2,136		$	2,490		$	2,097		—	%	82	%
Mortgage origination volume for sale	2,568			2,268			1,409			1,518			1,483			13		73

Third party mortgage loans serviced (2)	23,334			23,184			22,775			22,425			21,674			1		8
Mortgage servicing rights (2)	191			172			165			212			180			11		6
MSR % of investor servicing portfolio (2)	0.82		%	0.74		%	0.72		%	0.95		%	0.83		%	11	%	(1)	%

(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
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2020			2020			2020			2019			2019
Allowance for loan and lease losses, beginning of period	$	1,702		$	1,504		$	783		$	783		$	774
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	—			—			391			—			—
Loan and lease losses	(141)			(123)			(136)			(93)			(102)
Recoveries of loans previously charged off	28			16			19			20			29
Net loan and lease losses	(113)			(107)			(117)			(73)			(73)
Provision for loan and lease losses	207			305			447			74			82
Allowance of assets sold or transferred to loans held for sale	—			—			—			(1)			—
Allowance for loan and lease losses, end of period	1,796			1,702			1,504			783			783
Allowance for unfunded loan commitments and letters of credit, beginning of period	119			99			104			101			101
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	(30)			22			(6)			5			—
Unfunded commitment losses	(7)			(2)			(1)			(2)			—
Allowance for unfunded loan commitments and letters of credit, end of period	82			119			99			104			101
Total allowance for credit losses, end of period	$	1,878		$	1,821		$	1,603		$	887		$	884
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	2.21		%	2.12		%	1.93		%	1.04		%	1.05		%
Nonaccrual loans and leases (NALs)	316			263			270			167			179
Nonperforming assets (NPAs)	298			239			257			157			163
Total allowance for credit losses (ACL) as % of:
Total loans and leases	2.31		%	2.27		%	2.05		%	1.18		%	1.18		%
Nonaccrual loans and leases (NALs)	330			281			287			190			202
Nonperforming assets (NPAs)	311			255			273			178			184

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2020			2020			2020			2019			2019
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	77		$	80		$	84		$	36		$	40
Commercial real estate:
Construction	(1)			1			—			—			(1)
Commercial	13			(1)			(1)			—			(1)
Commercial real estate	12			—			(1)			—			(2)
Total commercial	89			80			83			36			38
Consumer:
Automobile	10			10			7			9			8
Home equity	—			—			5			1			2
Residential mortgage	1			—			1			1			1
RV and marine	4			4			2			4			2
Other consumer	9			13			19			22			22
Total consumer	24			27			34			37			35
Total net charge-offs	$	113		$	107		$	117		$	73		$	73


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2020			2020			2020			2019			2019
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.90		%	0.90		%	1.09		%	0.47		%	0.52		%
Commercial real estate:
Construction	(0.25)			(0.01)			0.08			(0.03)			(0.40)
Commercial	0.80			(0.03)			(0.06)			0.01			(0.09)
Commercial real estate	0.63			(0.03)			(0.03)			—			(0.14)
Total commercial	0.85			0.75			0.89			0.38			0.40
Consumer:
Automobile	0.31			0.31			0.22			0.30			0.26
Home equity	(0.02)			0.08			0.19			0.02			0.11
Residential mortgage	0.03			0.02			0.02			0.04			0.03
RV and marine	0.38			0.37			0.27			0.39			0.23
Other consumer	3.55			4.80			6.45			7.26			7.07
Total consumer	0.24			0.30			0.35			0.39			0.38
Net charge-offs as a % of average loans	0.56		%	0.54		%	0.62		%	0.39		%	0.39		%

Huntington Bancshares Incorporated

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)(1)

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2020			2020			2020			2019			2019
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	388		$	485		$	396		$	323		$	291
Commercial real estate	16			28			30			10			12
Automobile	5			8			6			4			5
Home equity	71			59			58			59			60
Residential mortgage	88			66			66			71			69
RV and marine	1			2			2			1			1
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	569			648			558			468			438

Other real estate, net:
Residential	4			5			8			9			10
Commercial	1			2			2			2			2
Total other real estate, net	5			7			10			11			12
Other NPAs (2)	28			58			18			19			32
Total nonperforming assets	$	602		$	713		$	586		$	498		$	482

Nonaccrual loans and leases as a % of total loans and leases	0.70		%	0.81		%	0.72		%	0.62		%	0.58		%
NPA ratio (3)	0.74			0.89			0.75			0.66			0.64
(NPA+90days)/(Loan+OREO) (4)	0.96			1.13			0.96			0.89			0.86


	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollar amounts in millions)	2020		2020		2020		2019		2019
Nonperforming assets, beginning of period	$	713	$	586	$	498	$	482	$	460
New nonperforming assets	190		279		274		175		165
Returns to accruing status	(47)		(25)		(18)		(20)		(24)
Loan and lease losses	(102)		(61)		(91)		(48)		(66)
Payments	(77)		(63)		(70)		(63)		(38)
Sales	(75)		(3)		(7)		(28)		(15)

Nonperforming assets, end of period	$	602	$	713	$	586	$	498	$	482

(1)Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.

(2)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.

(3)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

(4)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)


	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2020			2020			2020			2019			2019
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	10		$	13		$	10		$	11		$	9
Commercial real estate	—			—			—			—			—
Automobile	8			8			8			8			8
Home equity	11			10			12			14			13
Residential mortgage (excluding loans guaranteed by the U.S. Government)	18			17			21			20			23
RV and marine	2			2			2			2			1
Other consumer	2			3			4			7			7
Total, excl. loans guaranteed by the U.S. Government	51			53			57			62			61
Add: loans guaranteed by U.S. Government	124			141			110			109			102
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government	$	175		$	194		$	167		$	171		$	163

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.06		%	0.07		%	0.07		%	0.08		%	0.08		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.15			0.18			0.14			0.14			0.14
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.22			0.24			0.21			0.23			0.22

Accruing troubled debt restructured loans:
Commercial and industrial	$	189		$	192		$	219		$	213		$	225
Commercial real estate	34			35			37			37			40
Automobile	53			52			42			40			39
Home equity	199			209			219			226			233
Residential mortgage	256			229			227			223			221
RV and marine	6			6			3			3			3
Other consumer	10			10			11			11			10
Total accruing troubled debt restructured loans	$	747		$	733		$	758		$	753		$	771

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	146		$	169		$	119		$	109		$	84
Commercial real estate	3			3			4			6			6
Automobile	2			2			2			2			3
Home equity	29			26			25			26			26
Residential mortgage	48			43			42			42			44
RV and marine	1			1			2			1			1
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	229		$	244		$	194		$	186		$	164

Huntington Bancshares Incorporated

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

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2020			2020			2020			2019			2019
Common equity tier 1 risk-based capital ratio: (1)
Total shareholders’ equity	$	12,917		$	12,314		$	11,769		$	11,795		$	11,909
Regulatory capital adjustments:
CECL transitional amount (2)	456			442			386			—			—
Shareholders’ preferred equity	(2,195)			(1,701)			(1,207)			(1,207)			(1,207)
Accumulated other comprehensive income offset	(257)			(290)			(227)			256			175
Goodwill and other intangibles, net of related taxes	(2,118)			(2,129)			(2,141)			(2,153)			(2,162)
Deferred tax assets that arise from tax loss and credit carryforwards	(59)			(40)			(42)			(44)			(30)
Common equity tier 1 capital	8,744			8,596			8,538			8,647			8,685
Additional tier 1 capital
Shareholders’ preferred equity	2,195			1,701			1,207			1,207			1,207

Other	—			—			1			—			1
Tier 1 capital	10,939			10,297			9,746			9,854			9,893
Long-term debt and other tier 2 qualifying instruments	677			697			619			672			750
Qualifying allowance for loan and lease losses	1,107			1,093			1,127			887			884
Tier 2 capital	1,784			1,790			1,746			1,559			1,634
Total risk-based capital	$	12,723		$	12,087		$	11,492		$	11,413		$	11,527
Risk-weighted assets (RWA)(1)	$	88,417		$	87,323		$	90,193		$	87,512		$	86,719
Common equity tier 1 risk-based capital ratio (1)	9.89		%	9.84		%	9.47		%	9.88		%	10.02		%
Other regulatory capital data:
Tier 1 leverage ratio (1)	9.31			8.86			9.01			9.26			9.34
Tier 1 risk-based capital ratio (1)	12.37			11.79			10.81			11.26			11.41
Total risk-based capital ratio (1)	14.39			13.84			12.74			13.04			13.29
Non-regulatory capital data:
Tangible common equity / RWA ratio (1)	9.70			9.69			9.32			9.62			9.83

(1)September 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 September 30, 2020.

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary


	September 30,		June 30,		March 31,		December 31,		September 30,
	2020		2020		2020		2019		2019





Dividends, per share
Cash dividends declared per common share	$	0.15	$	0.15	$	0.15	$	0.15	$	0.15
Common shares outstanding
Average - basic	1,017		1,016		1,018		1,029		1,035
Average - diluted	1,031		1,029		1,035		1,047		1,051
Ending	1,017		1,017		1,014		1,020		1,033
Tangible book value per common share (1)	$	8.43	$	8.32	$	8.28	$	8.25	$	8.25
Common share repurchases
Number of shares repurchased	—		—		7		13		5

Non-regulatory capital


	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2020			2020			2020			2019			2019
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	12,917		$	12,314		$	11,769		$	11,795		$	11,909
Less: goodwill	(1,990)			(1,990)			(1,990)			(1,990)			(1,990)
Less: other intangible assets	(201)			(211)			(222)			(232)			(244)
Add: related deferred tax liability (1)	42			44			47			49			51
Total tangible equity	10,768			10,157			9,604			9,622			9,726
Less: preferred equity	(2,192)			(1,697)			(1,203)			(1,203)			(1,203)
Total tangible common equity	$	8,576		$	8,460		$	8,401		$	8,419		$	8,523
Total assets	$	120,116		$	118,425		$	113,897		$	109,002		$	108,735
Less: goodwill	(1,990)			(1,990)			(1,990)			(1,990)			(1,990)
Less: other intangible assets	(201)			(211)			(222)			(232)			(244)
Add: related deferred tax liability (1)	42			44			47			49			51
Total tangible assets	$	117,967		$	116,268		$	111,732		$	106,829		$	106,552
Tangible equity / tangible asset ratio	9.13		%	8.74		%	8.60		%	9.01		%	9.13		%
Tangible common equity / tangible asset ratio	7.27			7.28			7.52			7.88			8.00
Other data:
Number of employees (Average full-time equivalent)	15,680			15,703			15,386			15,495			15,659
Number of domestic full-service branches (2)	839			839			839			868			868
ATM Count	1,330			1,344			1,434			1,448			1,442

(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)
	Nine Months Ended September 30,						Change
(dollar amounts in millions)	2020		2019		Amount		Percent
Assets
Interest-bearing deposits in Federal Reserve Bank	$	3,326	$	511	$	2,815	551	%
Interest-bearing deposits in banks	166		131		35		27
Securities:
Trading account securities	61		146		(85)		(58)
Available-for-sale securities:
Taxable	11,171		10,784		387		4
Tax-exempt	2,743		2,945		(202)		(7)
Total available-for-sale securities	13,914		13,729		185		1


Held-to-maturity securities - taxable	9,384		8,663		721		8





Other securities	450		479		(29)		(6)
Total securities	23,809		23,017		977		3
Loans held for sale	1,055		771		284		37
Loans and leases: (2)
Commercial:
Commercial and industrial	33,604		30,608		2,996		10
Commercial real estate:
Construction	1,180		1,169		11		1
Commercial	5,833		5,727		106		2
Commercial real estate	7,013		6,896		117		2
Total commercial	40,617		37,504		3,113		8
Consumer:
Automobile	12,832		12,253		579		5
Home equity	8,933		9,491		(558)		(6)
Residential mortgage	11,558		11,005		553		5
RV and marine	3,773		3,413		360		11
Other consumer	1,105		1,270		(165)		(13)
Total consumer	38,201		37,432		769		2
Total loans and leases	78,818		74,936		3,882		5
Allowance for loan and lease losses	(1,506)		(786)		(720)		(92)
Net loans and leases	77,312		74,150		3,162		4
Total earning assets	107,174		99,366		7,808		8
Cash and due from banks	1,128		835		293		35
Intangible assets	2,206		2,252		(46)		(2)
All other assets	6,966		6,054		912		15
Total assets	$	115,968	$	107,721	8,247		8	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	22,985	$	19,763	$	3,222	16	%
Money market deposits	25,544		23,507		2,037		9
Savings and other domestic deposits	10,468		10,039		429		4
Core certificates of deposit (3)	2,990		5,858		(2,868)		(49)

Other domestic deposits of $250,000 or more	242		320		(78)		(24)
Brokered deposits and negotiable CDs	3,728		2,893		835		29

Total interest-bearing deposits	65,957		62,380		3,577		6
Short-term borrowings	1,452		2,605		(1,153)		(44)
Long-term debt	9,730		9,145		585		6
Total interest-bearing liabilities	77,139		74,130		3,009		4
Demand deposits - noninterest-bearing	24,394		19,864		4,530		23
All other liabilities	2,347		2,277		70		3
Shareholders’ equity	12,088		11,450		638		6
Total liabilities and shareholders’ equity	$	115,968	$	107,721	$	8,247	8	%

(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
	Nine Months Ended September 30,
(dollar amounts in millions)	2020		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	$	4	$	9
Interest-bearing deposits in banks	1		2
Securities:
Trading account securities	1		2
Available-for-sale securities:
Taxable	191		222
Tax-exempt	60		81
Total available-for-sale securities	251		303
Held-to-maturity securities - taxable	169		164



Other securities	4		13
Total securities	425		482
Loans held for sale	25		23
Loans and leases:
Commercial:
Commercial and industrial	966		1,106
Commercial real estate:
Construction	35		49
Commercial	140		210
Commercial real estate	175		259
Total commercial	1,141		1,365
Consumer:
Automobile	379		369
Home equity	273		391
Residential mortgage	307		317
RV and marine	134		126
Other consumer	96		126
Total consumer	1,189		1,329
Total loans and leases	2,330		2,694
Total earning assets	$	2,785	$	3,210
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	30	$	84
Money market deposits	93		199
Savings and other domestic deposits	9		17
Core certificates of deposit (3)	36		94

Other domestic deposits of $250,000 or more	2		4
Brokered deposits and negotiable CDs	13		51

Total interest-bearing deposits	183		449
Short-term borrowings	13		46
Long-term debt	174		262
Total interest-bearing liabilities	370		757

Net interest income	$	2,415	$	2,453

(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
	Nine Months Ended September 30,
Fully-taxable equivalent basis (1)	2020		2019
Assets
Interest-bearing deposits in Federal Reserve Bank	0.17	%	2.32	%
Interest-bearing deposits in banks	0.62		2.10
Securities:
Trading account securities	2.94		2.10
Available-for-sale securities:
Taxable	2.28		2.74
Tax-exempt	2.92		3.66
Total available-for-sale securities	2.41		2.94
Held-to-maturity securities - taxable	2.39		2.52
Other securities:


Other securities	1.28		3.75
Total securities	2.38		2.79
Loans held for sale	3.11		3.90
Loans and leases: (3)
Commercial:
Commercial and industrial	3.79		4.77
Commercial real estate:
Construction	3.93		5.56
Commercial	3.17		4.85
Commercial real estate	3.29		4.97
Total commercial	3.71		4.80
Consumer:
Automobile	3.94		4.02
Home equity	4.09		5.51
Residential mortgage	3.54		3.83
RV and marine	4.73		4.95
Other consumer	11.60		13.29
Total consumer	4.15		4.74
Total loans and leases	3.92		4.77
Total earning assets	3.47	%	4.32	%
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.17	%	0.57	%
Money market deposits	0.49		1.13
Savings and other domestic deposits	0.11		0.23
Core certificates of deposit (4)	1.59		2.14

Other domestic deposits of $250,000 or more	1.31		1.86
Brokered deposits and negotiable CDs	0.45		2.33

Total interest-bearing deposits	0.37		0.96
Short-term borrowings	1.23		2.37
Long-term debt	2.39		3.82
Total interest-bearing liabilities	0.64		1.36

Net interest rate spread	2.83		2.96
Impact of noninterest-bearing funds on margin	0.18		0.34
Net interest margin	3.01	%	3.30	%


Commercial Loan Derivative Impact
(Unaudited)
	YTD Average Rates
	Nine Months Ended September 30,
Fully-taxable equivalent basis (1)	2020		2019
Commercial loans (2)(3)	3.39	%	4.84	%
Impact of commercial loan derivatives	0.32		(0.04)
Total commercial - as reported	3.71	%	4.80	%
Average 1 Month LIBOR	0.65	%	2.37	%

(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)


	Nine Months Ended September 30,						Change
(dollar amounts in millions, except per share data)	2020		2019		Amount		Percent
Interest income	$	2,769	$	3,190	$	(421)	(13)	%
Interest expense	370		757		(387)		(51)
Net interest income	2,399		2,433		(34)		(1)
Provision for credit losses	945		208		737		354
Net interest income after provision for credit losses	1,454		2,225		(771)		(35)
Service charges on deposit accounts	223		277		(54)		(19)
Card and payment processing income	183		183		—		—
Trust and investment management services	140		131		9		7
Mortgage banking income	277		109		168		154
Capital markets fees	91		92		(1)		(1)
Insurance income	72		64		8		13
Bank owned life insurance income	49		49		—		—
Gain on sale of loans and leases	30		39		(9)		(23)
Net (losses) gains on sales of securities	(1)		(2)		1		50
Other noninterest income	118		140		(22)		(16)
Total noninterest income	1,182		1,082		100		9
Personnel costs	1,267		1,228		39		3
Outside data processing and other services	273		257		16		6
Equipment	132		121		11		9
Net occupancy	119		118		1		1
Professional services	34		40		(6)		(15)
Amortization of intangibles	31		37		(6)		(16)
Marketing	23		28		(5)		(18)
Deposit and other insurance expense	24		24		—		—
Other noninterest expense	136		167		(31)		(19)
Total noninterest expense	2,039		2,020		19		1
Income before income taxes	597		1,287		(690)		(54)
Provision for income taxes	96		193		(97)		(50)
Net income	501		1,094		(593)		(54)
Dividends on preferred shares	65		55		10		18
Net income applicable to common shares	$	436	$	1,039	$	(603)	(58)	%
Average common shares - basic	1,017		1,042		(25)		(2)
Average common shares - diluted	1,032		1,059		(27)		(3)
Per common share
Net income - basic	$	0.43	$	1.00	$	(0.57)	(57)	%
Net income - diluted	0.42		0.98		(0.56)		(57)
Cash dividends declared	0.45		0.43		0.02		5
Revenue - fully taxable equivalent (FTE)
Net interest income	$	2,399	$	2,433	$	(34)	(1)	%
FTE adjustment (1)	16		20		(4)		(20)
Net interest income	2,415		2,453		(38)		(2)
Noninterest income	1,182		1,082		100		9
Total revenue (1)	$	3,597	$	3,535	$	62	2	%

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

Huntington Bancshares Incorporated

Year To Date Mortgage Banking Noninterest Income

(Unaudited)


	Nine Months Ended September 30,									Change
(dollar amounts in millions)	2020			2019			Amount			Percent
Net origination and secondary marketing income	$	254		$	89		165			185	%
Net mortgage servicing income
Loan servicing income	45			44			1			2
Amortization of capitalized servicing	(36)			(32)			(4)			(13)
Operating income	9			12			(3)			(25)
MSR valuation adjustment (1)	(56)			(40)			(16)			(40)
Gains (losses) due to MSR hedging	62			43			19			44
Net MSR risk management	6			3			3			—
Total net mortgage servicing income	$	15		$	15		$	—		—	%
All other	7			5			2			40
Mortgage banking income	$	276		$	109		$	167		153	%

Mortgage origination volume	$	9,749		$	5,254		$	4,495		86	%
Mortgage origination volume for sale	6,245			3,420			2,825			83

Third party mortgage loans serviced (2)	23,334			21,674			1,660			8
Mortgage servicing rights (2)	191			180			11			6
MSR % of investor servicing portfolio	0.82		%	0.83		%	(0.01)		%	(1)	%

(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)


	Nine Months Ended September 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	(400)			(269)
Recoveries of loans previously charged off	63			77
Net loan and lease losses	(337)			(192)
Provision for loan and lease losses	959			203

Allowance for loan and lease losses, end of period	1,796			783
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	(14)			5
Unfunded commitment losses	(10)			—
Allowance for unfunded loan commitments and letters of credit, end of period	82			101
Total allowance for credit losses	$	1,878		$	884
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	2.21		%	1.05		%
Nonaccrual loans and leases (NALs)	316			179
Nonperforming assets (NPAs)	298			163
Total allowance for credit losses (ACL) as % of:
Total loans and leases	2.31		%	1.18		%
Nonaccrual loans and leases (NALs)	330			202
Nonperforming assets (NPAs)	311			184

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)


	Nine Months Ended September 30,
(dollar amounts in millions)	2020			2019
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	241		$	92
Commercial real estate:
Construction	—			(2)
Commercial	11			(1)
Commercial real estate	11			(3)
Total commercial	252			89
Consumer:
Automobile	27			23
Home equity	5			7
Residential mortgage	2			5
RV and marine	10			7
Other consumer	41			61
Total consumer	85			103
Total net charge-offs	$	337		$	192


	Nine Months Ended September 30,
	2020			2019
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.96		%	0.40		%
Commercial real estate:
Construction	(0.06)			(0.19)
Commercial	0.25			(0.03)
Commercial real estate	0.20			(0.06)
Total commercial	0.83			0.32
Consumer:
Automobile	0.28			0.25
Home equity	0.09			0.10
Residential mortgage	0.02			0.06
RV and marine	0.34			0.29
Other consumer	4.99			6.41
Total consumer	0.30			0.37
Net charge-offs as a % of average loans	0.57		%	0.34		%

Huntington Bancshares Incorporated

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

(Unaudited)


	September 30,
(dollar amounts in millions)	2020			2019
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	388		$	291
Commercial real estate	16			12
Automobile	5			5
Home equity	71			60
Residential mortgage	88			69
RV and marine	1			1
Other consumer	—			—
Total nonaccrual loans and leases	569			438
Other real estate, net:
Residential	4			10
Commercial	1			2
Total other real estate, net	5			12
Other NPAs (1)	28			32
Total nonperforming assets (3)	$	602		$	482

Nonaccrual loans and leases as a % of total loans and leases	0.70		%	0.58		%
NPA ratio (2)	0.74			0.64


	Nine Months Ended September 30,
(dollar amounts in millions)	2020		2019
Nonperforming assets, beginning of period	$	498	$	387
New nonperforming assets	743		500
Returns to accruing status	(90)		(73)
Loan and lease losses	(254)		(146)
Payments	(210)		(125)
Sales and held-for-sale transfers	(85)		(61)
Nonperforming assets, end of period (2)	$	602	$	482

(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)


	Nine Months Ended September 30,
(dollar amounts in millions)	2020			2019
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	10		$	9
Commercial real estate	—			—
Automobile	8			8
Home equity	11			13
Residential mortgage (excluding loans guaranteed by the U.S. Government)	18			23
RV and marine	2			1
Other consumer	2			7
Total, excl. loans guaranteed by the U.S. Government	51			61
Add: loans guaranteed by U.S. Government	124			102
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	175		$	163
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.06		%	0.08		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.15			0.14
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.22			0.22
Accruing troubled debt restructured loans:
Commercial and industrial	$	189		$	225
Commercial real estate	34			40
Automobile	53			39
Home equity	199			233
Residential mortgage	256			221
RV and marine	6			3
Other consumer	10			10
Total accruing troubled debt restructured loans	$	747		$	771
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	146		$	84
Commercial real estate	3			6
Automobile	2			3
Home equity	29			26
Residential mortgage	48			44
RV and marine	1			1
Other consumer	—			—
Total nonaccruing troubled debt restructured loans	$	229		$	164

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - October 22, 2020

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports