HBAN 8-K
Huntington Bancshares Inc /Md/ (HBAN)
8-K
2023-04-20
For: 2023-04-20
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Added on
July 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 20, 2023
______________________________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________________________________________________
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
Registrant's address: 41 South High Street , Columbus , Ohio 43287
Registrant’s telephone number, including area code: (614 ) 480-2265
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
_______________________________________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| Title of class | Trading Symbol(s) | Name of exchange on which registered | ||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§24012b-2). | |||||||||||||||||
| Emerging growth company | |||||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | |||||||||||||||||
Item 2.02. Results of Operations and Financial Condition.
On April 20, 2023, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended March 31, 2023. Also on April 20, 2023, Huntington made a Quarterly Financial Supplement available in the Investor Relations section of Huntington’s website. Copies of Huntington's news release and quarterly financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference in this Item 2.02.
Huntington’s senior management will host an earnings conference call on April 20, 2023, at 11:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington’s website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029; Conference ID #13737064. Slides will be available in the Investor Relations section of Huntington’s website about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s website. A telephone replay will be available approximately two hours after the completion of the call through April 28, 2023 at (877) 660-6853 or (201) 612-7415; conference ID #13737064.
The information contained or incorporated by reference in this Press Release on Form 8-K contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the impact of pandemics, including the COVID-19 pandemic and related variants and mutations, and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from recent bank failures and other volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital and credit markets; movements in interest rates; transition away from LIBOR; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services including those implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and CFPB; and other factors that may affect the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2022, which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
The information contained or incorporated by reference in Item 2.02 of this Form 8-K shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Item 9.01. Financial Statements and Exhibits.
The exhibits referenced below shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
(d)Exhibits.
Exhibit 99.1 – News release of Huntington Bancshares Incorporated, dated April 20, 2023.
Exhibit 99.2 – Quarterly Financial Supplement, March 31, 2023.
EXHIBIT INDEX
| Exhibit No. | Description | ||||
| Exhibit 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HUNTINGTON BANCSHARES INCORPORATED | |||||||||||||||||
| Date: | April 20, 2023 | By: | /s/ Zachary Wasserman | ||||||||||||||
| Zachary Wasserman | |||||||||||||||||
| Chief Financial Officer | |||||||||||||||||
Exhibit 99.1
April 20, 2023
Analysts: Tim Sedabres ([email protected]), 952.745.2766
Media: Seth Seymour ([email protected]), 614.480.3538
HUNTINGTON BANCSHARES INCORPORATED REPORTS 2023 FIRST-QUARTER EARNINGS
Strong Q1 Results and Disciplined Execution Demonstrate Huntington's Stability and Robust Financial Performance
2023 First-Quarter Highlights:
•Earnings per common share (EPS) for the quarter were $0.39, a decrease of $0.03 from the prior quarter, and an increase of $0.10 from the year-ago quarter. Excluding the after tax impact of Notable Items, adjusted earnings per common share were $0.38.
•Net interest income decreased $53 million, or 4%, from the prior quarter, and increased $263 million, or 23%, from the year-ago quarter. The decrease from the prior quarter reflects lower net interest margin and two fewer days in the quarter.
•Pre-Provision Net Revenue (PPNR) decreased $49 million, or 5%, from the prior quarter to $844 million, and increased $244 million, or 41%, from the year-ago quarter. Excluding Notable Items, adjusted PPNR decreased $80 million, or 9%, from the prior quarter to $828 million, and increased $182 million, or 28%, from the year-ago quarter.
•Insured deposits of approximately $100 billion, or 69% of total deposits.
•Cash and cash equivalents and available contingent borrowing capacity of $61 billion at March 31, 2023, representing 136% of uninsured deposits.
•Average total deposits increased $472 million from the prior quarter and $3.2 billion from the year-ago quarter.
◦Average core deposits increased $381 million from the prior quarter reflecting continued momentum in consumer deposit gathering and ongoing focus on acquiring and deepening primary bank relationships.
•Average total loans and leases increased $1.5 billion, or 1%, from the prior quarter to $120.4 billion, and increased $9.3 billion, or 8%, from the year-ago quarter.
◦Average total commercial loans and leases increased $1.5 billion, or 2%, and average total consumer loans were flat from the prior quarter.
•Net charge-offs of 0.19% of average total loans and leases for the quarter.
•Nonperforming assets have declined for seven consecutive quarters.
•Allowance for credit losses (ACL) of $2.3 billion, or 1.90%, of total loans and leases at quarter end.
•Common Equity Tier 1 (CET1) risk-based capital ratio increased 19 basis points to 9.55%.
•Tangible common equity (TCE) ratio increased 22 basis points to 5.77%.
1
•Completed the voluntary retirement program, closed the sale of our retirement plan services ("RPS") business and entered into an ongoing partnership with the purchaser, and executed on our previously announced organizational realignment.
•Huntington National Bank earned the #1 ranking in customer satisfaction in the North Central region and Pennsylvania in the J.D. Power 2023 U.S. Retail Banking Satisfaction Study; Huntington has received this recognition for the seventh time in the North Central region and for the first time in Pennsylvania.
•Huntington Middle Market received 11 awards from Coalition Greenwich for 2022 in Excellence and Best Brand.
•Huntington was recognized by Newsweek as one of America’s 500 Most Responsible Companies for the fourth consecutive year.
•Huntington was ranked as one of the Most Sustainable U.S. Companies by Barron’s, a weekly publication by Dow Jones & Company; highest ranked regional bank and 2nd highest U.S. bank of any size.
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2023 first quarter of $602 million, or $0.39 per common share, an increase of $142 million, or $0.10 per common share from the year-ago quarter.
Return on average assets was 1.32%, return on average common equity was 14.6%, return on average tangible common equity (ROTCE) was 23.1%.
CEO Commentary:
"Our first quarter results reflect the strength and stability of Huntington and the continued execution of our strategy, despite the market disruption in March,” said Steve Steinour, chairman, president, and CEO. “Huntington’s solid capital levels, strong credit profile, and leading deposit and liquidity profile have positioned the company to enter this period from a position of strength. Our Fair Play philosophy, executed over a decade, has resulted in a granular, sticky consumer and small business deposit base. Our deposit base is highly diversified, and our available liquidity is at an industry leading percentage of insured deposit balances.
“At the core of our Purpose is making people's lives better, helping businesses thrive, and strengthening our communities, and we have a long track record of doing so. We are proud to be able to continue looking out for people in times such as these, including acquiring new customers and primary bank relationships. The core tenets of trust and customer satisfaction form the foundation of a long-term relationship with our customers. We are proud to have been once again recognized by J.D. Power for the number one customer satisfaction ranking in our region, and we received multiple Coalition Greenwich awards recognizing our leadership in commercial and middle market banking. These accolades are a testament to our colleagues and the customer experience they deliver.
“Over the course of the first quarter, we continued to execute on our key initiatives including our consistent and proactive approach to expense management. We consolidated 31 branches, completed the previously announced voluntary retirement program and executed on our organizational realignment. Collectively, these actions will support funding our continued investments to drive sustainable revenue growth. We will continue to actively manage our expense base to fund investments across our businesses to position us for growth in the future.
“Finally, over the past decade we have bolstered the foundation of the franchise to ensure Huntington is resilient across a range of economic environments. This work has positioned Huntington very well for times such as these with our long-standing approach to conservative and disciplined risk management. This strong foundation enables us to remain dynamic, capitalize on opportunities in front of us, and continue to grow and expand the company, aligned with our strategic objectives.”
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Table 1 – Earnings Performance Summary
| 2023 | 2022 | ||||||||||||||||||||||||||||
| (in millions, except per share data) | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
| Net income attributable to Huntington | $ | 602 | $ | 645 | $ | 594 | $ | 539 | $ | 460 | |||||||||||||||||||
| Diluted earnings per common share | 0.39 | 0.42 | 0.39 | 0.35 | 0.29 | ||||||||||||||||||||||||
| Return on average assets | 1.32 | % | 1.41 | % | 1.31 | % | 1.22 | % | 1.05 | % | |||||||||||||||||||
| Return on average common equity | 14.6 | 16.0 | 13.9 | 12.8 | 10.4 | ||||||||||||||||||||||||
| Return on average tangible common equity | 23.1 | 26.0 | 21.9 | 19.9 | 15.8 | ||||||||||||||||||||||||
| Net interest margin | 3.40 | 3.52 | 3.42 | 3.15 | 2.88 | ||||||||||||||||||||||||
| Efficiency ratio | 55.6 | 54.0 | 54.4 | 57.3 | 62.9 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 7.32 | $ | 6.82 | $ | 6.40 | $ | 6.96 | $ | 7.47 | |||||||||||||||||||
| Cash dividends declared per common share | 0.155 | 0.155 | 0.155 | 0.155 | 0.155 | ||||||||||||||||||||||||
| Average earning assets | $ | 169,112 | $ | 165,545 | $ | 164,024 | $ | 161,225 | $ | 162,414 | |||||||||||||||||||
| Average loans and leases | 120,420 | 118,907 | 116,964 | 113,949 | 111,142 | ||||||||||||||||||||||||
| Average core deposits | 141,077 | 140,696 | 141,691 | 141,802 | 139,148 | ||||||||||||||||||||||||
| Tangible common equity / tangible assets ratio | 5.77 | % | 5.55 | % | 5.32 | % | 5.80 | % | 6.28 | % | |||||||||||||||||||
| Common equity Tier 1 risk-based capital ratio | 9.55 | 9.36 | 9.27 | 9.05 | 9.22 | ||||||||||||||||||||||||
| NCOs as a % of average loans and leases | 0.19 | % | 0.17 | % | 0.15 | % | 0.03 | % | 0.07 | % | |||||||||||||||||||
| NAL ratio | 0.44 | 0.48 | 0.51 | 0.57 | 0.60 | ||||||||||||||||||||||||
| ACL as a % of total loans and leases | 1.90 | 1.90 | 1.89 | 1.87 | 1.87 | ||||||||||||||||||||||||
Table 2 lists certain items that we believe are important to understanding corporate performance and trends (see Basis of Presentation).
Table 2 – Notable Items Influencing Earnings
Pretax Impact (1) | After-tax Impact (1) | ||||||||||||||||||||||
| ($ in millions, except per share) | Amount | Net Income | EPS (2) | ||||||||||||||||||||
| Three Months Ended March 31, 2023 | $ | 602 | $ | 0.39 | |||||||||||||||||||
| • | RPS sale (noninterest income) | $ | 57 | $ | 44 | $ | 0.03 | ||||||||||||||||
| • | Voluntary retirement program and organizational realignment expense (noninterest expense) (3) | (42) | (34) | (0.02) | |||||||||||||||||||
| Three Months Ended December 31, 2022 | $ | 645 | $ | 0.42 | |||||||||||||||||||
| • | Acquisition-related expenses (4) | $ | (15) | $ | (12) | $ | (0.01) | ||||||||||||||||
| Three Months Ended March 31, 2022 | $ | 460 | $ | 0.29 | |||||||||||||||||||
| • | Acquisition-related expenses (4) | $ | (46) | $ | (37) | $ | (0.03) | ||||||||||||||||
(1)Favorable (unfavorable) impact.
(2)EPS reflected on a fully diluted basis.
(3)Voluntary retirement program ($36 million) and organizational realignment expense ($6 million).
(4)Includes TCF and Capstone acquisition-related expenses.
3
Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 3 – Net Interest Income and Net Interest Margin Performance Summary
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | First | Fourth | Third | Second | First | Change (%) | |||||||||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | |||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,409 | $ | 1,462 | $ | 1,404 | $ | 1,261 | $ | 1,146 | (4) | % | 23 | % | |||||||||||||||||||||||||||
| FTE adjustment | 9 | 9 | 8 | 6 | 8 | — | 13 | ||||||||||||||||||||||||||||||||||
| Net interest income - FTE | 1,418 | 1,471 | 1,412 | 1,267 | 1,154 | (4) | 23 | ||||||||||||||||||||||||||||||||||
| Noninterest income | 512 | 499 | 498 | 485 | 499 | 3 | 3 | ||||||||||||||||||||||||||||||||||
| Total revenue - FTE | $ | 1,930 | $ | 1,970 | $ | 1,910 | $ | 1,752 | $ | 1,653 | (2) | % | 17 | % | |||||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | Change (bp) | ||||||||||||||||||||||||||||||||||||
| Yield / Cost | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Total earning assets | 4.89 | % | 4.46 | % | 3.86 | % | 3.33 | % | 3.00 | % | 43 | 189 | |||||||||||||||||||||||||||||
| Total loans and leases | 5.27 | 4.86 | 4.28 | 3.77 | 3.64 | 41 | 163 | ||||||||||||||||||||||||||||||||||
| Total securities | 3.56 | 3.26 | 2.74 | 2.24 | 1.72 | 30 | 184 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2.02 | 1.31 | 0.64 | 0.25 | 0.18 | 71 | 184 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1.52 | 0.88 | 0.35 | 0.10 | 0.04 | 64 | 148 | ||||||||||||||||||||||||||||||||||
| Net interest rate spread | 2.87 | 3.15 | 3.22 | 3.08 | 2.82 | (28) | 5 | ||||||||||||||||||||||||||||||||||
| Impact of noninterest-bearing funds on margin | 0.53 | 0.37 | 0.20 | 0.07 | 0.06 | 16 | 47 | ||||||||||||||||||||||||||||||||||
| Net interest margin | 3.40 | % | 3.52 | % | 3.42 | % | 3.15 | % | 2.88 | % | (12) | 52 | |||||||||||||||||||||||||||||
Fully-taxable equivalent (FTE) net interest income for the 2023 first quarter increased $264 million, or 23%, from the 2022 first quarter. The results primarily reflect a 52 basis point increase in the FTE net interest margin (NIM) to 3.40% and a $6.7 billion, or 4%, increase in average earning assets. The expansion in NIM was driven by the higher rate environment driving an increase in loan and lease and investment security yields, partially offset by higher cost of funds. Net interest income in the 2023 first quarter included $10 million of net interest income from purchase accounting accretion and PPP loan fees recognized upon forgiveness payments, compared to $30 million in the 2022 first quarter.
Compared to the 2022 fourth quarter, FTE net interest income decreased $53 million, or 4%, reflecting a 12 basis point decrease in NIM and two fewer days in the quarter. The NIM decrease was driven by higher cost of funds, partially offset by higher loan and lease and investment security yields. Net interest income in the 2022 fourth quarter included $12 million of net interest income from purchase accounting accretion and PPP loan fees recognized upon forgiveness payments.
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Table 4 – Average Earning Assets
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| ($ in billions) | First | Fourth | Third | Second | First | Change (%) | |||||||||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 46.1 | $ | 44.7 | $ | 43.6 | $ | 42.7 | $ | 41.4 | 3 | % | 11 | % | |||||||||||||||||||||||||||
| Commercial real estate | 16.6 | 16.6 | 16.1 | 15.3 | 15.1 | — | 10 | ||||||||||||||||||||||||||||||||||
| Lease financing | 5.2 | 5.1 | 5.0 | 4.9 | 4.9 | 3 | 6 | ||||||||||||||||||||||||||||||||||
| Total commercial | 67.9 | 66.4 | 64.7 | 62.9 | 61.4 | 2 | 11 | ||||||||||||||||||||||||||||||||||
| Residential mortgage | 22.3 | 22.0 | 21.6 | 20.5 | 19.5 | 1 | 14 | ||||||||||||||||||||||||||||||||||
| Automobile | 13.2 | 13.3 | 13.5 | 13.6 | 13.5 | — | (2) | ||||||||||||||||||||||||||||||||||
| Home equity | 10.3 | 10.4 | 10.4 | 10.4 | 10.4 | (2) | (1) | ||||||||||||||||||||||||||||||||||
| RV and marine | 5.4 | 5.4 | 5.5 | 5.3 | 5.1 | (1) | 5 | ||||||||||||||||||||||||||||||||||
| Other consumer | 1.3 | 1.3 | 1.3 | 1.3 | 1.3 | (3) | 2 | ||||||||||||||||||||||||||||||||||
| Total consumer | 52.5 | 52.5 | 52.3 | 51.1 | 49.8 | — | 5 | ||||||||||||||||||||||||||||||||||
| Total loans and leases | 120.4 | 118.9 | 117.0 | 113.9 | 111.1 | 1 | 8 | ||||||||||||||||||||||||||||||||||
| Total securities | 41.9 | 41.1 | 42.6 | 42.6 | 42.7 | 2 | (2) | ||||||||||||||||||||||||||||||||||
| Held-for-sale and other earning assets | 6.8 | 5.6 | 4.5 | 4.7 | 8.6 | 22 | (21) | ||||||||||||||||||||||||||||||||||
| Total earning assets | $ | 169.1 | $ | 165.5 | $ | 164.0 | $ | 161.2 | $ | 162.4 | 2 | % | 4 | % | |||||||||||||||||||||||||||
See Page 6 of Quarterly Financial Supplement for additional detail.
Average earning assets for the 2023 first quarter increased $6.7 billion, or 4%, from the year-ago quarter, primarily reflecting a $9.3 billion, or 8%, increase in average total loans and leases, partially offset by a $1.1 billion, or 15%, decrease in deposits held at the Federal Reserve Bank, a $793 million, or 64%, decrease in loans held for sale, and a $768 million, or 2%, decrease in average securities. Average loan and lease balance increases were primarily due to organic growth in average commercial loans and leases of $6.5 billion, or 11%, and average consumer loans of $2.7 billion, or 5%.
Compared to the 2022 fourth quarter, average earning assets increased $3.6 billion primarily reflecting a $1.5 billion, or 1%, increase in average total loans and leases, $1.5 billion, or 32%, increase in deposits held at the Federal Reserve Bank, and $811 million, or 2%, increase in average securities. Average loan and lease balance increases were due to growth in average commercial loans and leases of $1.5 billion, or 2%.
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Table 5 – Liabilities
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in billions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Average balances: | |||||||||||||||||||||||||||||||||||||||||
| Demand deposits - noninterest-bearing | $ | 37.5 | $ | 39.9 | $ | 42.1 | $ | 42.4 | $ | 42.0 | (6) | % | (11) | % | |||||||||||||||||||||||||||
| Demand deposits - interest-bearing | 40.7 | 42.7 | 42.1 | 41.7 | 40.6 | (5) | 0 | ||||||||||||||||||||||||||||||||||
| Total demand deposits | 78.2 | 82.6 | 84.2 | 84.1 | 82.6 | (5) | (5) | ||||||||||||||||||||||||||||||||||
| Money market deposits | 37.3 | 34.4 | 34.1 | 33.8 | 32.7 | 8 | 14 | ||||||||||||||||||||||||||||||||||
| Savings and other domestic deposits | 19.9 | 20.8 | 21.4 | 21.7 | 21.3 | (5) | (7) | ||||||||||||||||||||||||||||||||||
| Core certificates of deposit | 5.7 | 2.9 | 2.0 | 2.2 | 2.6 | 96 | 124 | ||||||||||||||||||||||||||||||||||
| Total core deposits | 141.1 | 140.7 | 141.7 | 141.8 | 139.1 | — | 1 | ||||||||||||||||||||||||||||||||||
| Other domestic deposits of $250,000 or more | 0.3 | 0.2 | 0.2 | 0.2 | 0.3 | 27 | (20) | ||||||||||||||||||||||||||||||||||
Negotiable CDs, brokered and other deposits | 4.8 | 4.8 | 4.1 | 3.0 | 3.5 | 1 | 39 | ||||||||||||||||||||||||||||||||||
| Total deposits | $ | 146.2 | $ | 145.7 | $ | 146.0 | $ | 145.0 | $ | 142.9 | — | % | 2 | % | |||||||||||||||||||||||||||
| Short-term borrowings | $ | 4.4 | $ | 0.5 | $ | 2.6 | $ | 2.1 | $ | 4.7 | 702 | % | (8) | % | |||||||||||||||||||||||||||
| Long-term debt | 11.0 | 12.7 | 8.3 | 7.0 | 6.9 | (13) | 60 | ||||||||||||||||||||||||||||||||||
| Total debt | $ | 15.4 | $ | 13.2 | $ | 10.9 | $ | 9.1 | $ | 11.6 | 17 | % | 32 | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 124.1 | $ | 119.0 | $ | 114.8 | $ | 111.7 | $ | 112.6 | 4 | % | 10 | % | |||||||||||||||||||||||||||
| Period end balances: | |||||||||||||||||||||||||||||||||||||||||
| Total core deposits | $ | 140.4 | $ | 142.1 | $ | 141.6 | $ | 141.5 | $ | 143.4 | (1) | % | (2) | % | |||||||||||||||||||||||||||
| Other deposits | 4.9 | 5.8 | 4.7 | 3.9 | 3.6 | (16) | 38 | ||||||||||||||||||||||||||||||||||
| Total deposits | $ | 145.3 | $ | 147.9 | $ | 146.3 | $ | 145.4 | $ | 147.0 | (2) | % | (1) | % | |||||||||||||||||||||||||||
See Pages 5-6 of Quarterly Financial Supplement for additional detail.
Average total interest-bearing liabilities for the 2023 first quarter increased $11.5 billion, or 10%, from the year-ago quarter. Average total deposits increased $3.2 billion, or 2%, while average total core deposits increased $1.9 billion, or 1%. The average total core deposit increase was primarily driven by higher average commercial core deposits of $1.7 billion, or 3%. Average total debt increased $3.8 billion, or 32%, driven by new debt issuances and higher FHLB borrowings, reflecting actions taken as part of normal management of funding needs.
Compared to the 2022 fourth quarter, average total interest-bearing liabilities increased $5.0 billion, or 4%. Average total deposits increased $472 million, while average total core deposits increased $381 million. The average total core deposit increase was primarily driven by higher average consumer core deposits of $2.1 billion, or 3%, partially offset by lower average commercial core deposits $1.7 billion, or 3%. Average total debt increased $2.2 billion, or 17%, driven by higher short-term FHLB borrowings.
Ending total deposits as of March 31, 2023 decreased $1.7 billion, or 1%, compared to a year ago. The decrease was driven by a $2.9 billion, or 5%, decrease in core commercial deposits, partially offset by a $1.3 billion increase other deposits.
Compared to December 31, 2022, ending total deposits decreased $2.6 billion, or 2%. The decrease was primarily driven by a $3.0 billion, or 5%, decrease in commercial core deposits and a $914 million decrease in other deposits, partially offset by higher consumer core deposits of $1.3 billion, or 2%.
6
Noninterest Income
Table 6 – Noninterest Income
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 83 | $ | 89 | $ | 93 | $ | 105 | $ | 97 | (7) | % | (14) | % | |||||||||||||||||||||||||||
| Card and payment processing income | 93 | 96 | 96 | 96 | 86 | (3) | 8 | ||||||||||||||||||||||||||||||||||
| Capital markets fees | 59 | 83 | 73 | 54 | 42 | (29) | 40 | ||||||||||||||||||||||||||||||||||
| Trust and investment management services | 62 | 61 | 60 | 63 | 65 | 2 | (5) | ||||||||||||||||||||||||||||||||||
| Mortgage banking income | 26 | 25 | 26 | 44 | 49 | 4 | (47) | ||||||||||||||||||||||||||||||||||
| Leasing revenue | 26 | 35 | 29 | 27 | 35 | (26) | (26) | ||||||||||||||||||||||||||||||||||
| Insurance income | 34 | 31 | 28 | 27 | 31 | 10 | 10 | ||||||||||||||||||||||||||||||||||
| Gain on sale of loans | 3 | 2 | 15 | 12 | 28 | 50 | (89) | ||||||||||||||||||||||||||||||||||
| Bank owned life insurance income | 16 | 15 | 13 | 11 | 17 | 7 | (6) | ||||||||||||||||||||||||||||||||||
| Net gains on sales of securities | 1 | — | — | — | — | 100 | 100 | ||||||||||||||||||||||||||||||||||
| Other noninterest income | 109 | 62 | 65 | 46 | 49 | 76 | 122 | ||||||||||||||||||||||||||||||||||
| Total noninterest income | $ | 512 | $ | 499 | $ | 498 | $ | 485 | $ | 499 | 3 | % | 3 | % | |||||||||||||||||||||||||||
| Impact of Notable Item: | |||||||||||||||||||||||||||||||||||||||||
| RPS sale (other noninterest income) | $ | 57 | $ | — | $ | — | $ | — | $ | — | NM | NM | |||||||||||||||||||||||||||||
| Total adjusted noninterest income (Non-GAAP) | $ | 455 | $ | 499 | $ | 498 | $ | 485 | $ | 499 | (9) | % | (9) | % | |||||||||||||||||||||||||||
NM - Not meaningful
See Page 10 of Quarterly Financial Supplement for additional detail.
Reported total noninterest income for the 2023 first quarter increased $13 million, or 3%, from the year-ago quarter primarily reflecting the gain associated with the sale of the RPS business and growth in areas of strategic focus, including an increase in capital markets fees of $17 million, or 40%, primarily reflecting Capstone related advisory fees and an increase in card and payments processing of $7 million, or 8%. Partially offsetting these increases was a decrease in gain on sale of loans of $25 million, or 89%, resulting from the strategic decision to retain SBA loans. Mortgage banking income decreased $23 million, or 47%, primarily reflecting lower salable volume and salable spreads. Service charges on deposit accounts decreased $14 million, or 14%, primarily reflecting impact from deposit pricing and program changes. Leasing revenue decreased $9 million, or 26%, primarily driven by decreases in operating lease income and income on terminated leases.
Total noninterest income increased $13 million, to $512 million for the 2023 first quarter, compared to $499 million for the 2022 fourth quarter. The increase was primarily driven by the gain associated with the sale of the RPS business. Partially offsetting this increase was a decrease in capital markets fees of $24 million, or 29%, due to lower advisory fees. Leasing revenue decreased $9 million, or 26%, reflecting a decrease in income on terminated leases. Service charges on deposit accounts decreased $6 million, or 7%, primarily reflecting impact from deposit pricing and program changes.
7
Noninterest Expense
Table 7 – Noninterest Expense
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Personnel costs | $ | 649 | $ | 630 | $ | 614 | $ | 577 | $ | 580 | 3 | % | 12 | % | |||||||||||||||||||||||||||
| Outside data processing and other services | 151 | 147 | 145 | 153 | 165 | 3 | (8) | ||||||||||||||||||||||||||||||||||
| Equipment | 64 | 67 | 60 | 61 | 81 | (4) | (21) | ||||||||||||||||||||||||||||||||||
| Net occupancy | 60 | 61 | 63 | 58 | 64 | (2) | (6) | ||||||||||||||||||||||||||||||||||
| Marketing | 25 | 22 | 24 | 24 | 21 | 14 | 19 | ||||||||||||||||||||||||||||||||||
| Professional services | 16 | 21 | 18 | 19 | 19 | (24) | (16) | ||||||||||||||||||||||||||||||||||
| Deposit and other insurance expense | 20 | 14 | 15 | 20 | 18 | 43 | 11 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 13 | 13 | 13 | 13 | 14 | — | (7) | ||||||||||||||||||||||||||||||||||
| Lease financing equipment depreciation | 8 | 9 | 11 | 11 | 14 | (11) | (43) | ||||||||||||||||||||||||||||||||||
| Other noninterest expense | 80 | 93 | 90 | 82 | 77 | (14) | 4 | ||||||||||||||||||||||||||||||||||
| Total noninterest expense | $ | 1,086 | $ | 1,077 | $ | 1,053 | $ | 1,018 | $ | 1,053 | 1 | % | 3 | % | |||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Average full-time equivalent employees | 20.2 | 20.0 | 20.0 | 19.9 | 19.7 | 1 | % | 3 | % | ||||||||||||||||||||||||||||||||
Table 8 - Impact of Notable Items
| 2023 | 2022 | ||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | |||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||
| Personnel costs | $ | 42 | $ | — | $ | 1 | $ | 2 | $ | 5 | |||||||||||||||||||
| Outside data processing and other services | — | 2 | 2 | 12 | 25 | ||||||||||||||||||||||||
| Equipment | — | 2 | 1 | — | 2 | ||||||||||||||||||||||||
| Net occupancy | — | 10 | 6 | 6 | 10 | ||||||||||||||||||||||||
| Professional services | — | 1 | — | 1 | 2 | ||||||||||||||||||||||||
| Deposit and other insurance expense | — | — | — | 1 | — | ||||||||||||||||||||||||
| Other noninterest expense | — | — | — | 2 | 2 | ||||||||||||||||||||||||
| Total noninterest expense | $ | 42 | $ | 15 | $ | 10 | $ | 24 | $ | 46 | |||||||||||||||||||
8
Table 9 - Adjusted Noninterest Expense (Non-GAAP)
| 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
| First | Fourth | Third | Second | First | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Personnel costs | $ | 607 | $ | 630 | $ | 613 | $ | 575 | $ | 575 | (4) | % | 6 | % | |||||||||||||||||||||||||||
| Outside data processing and other services | 151 | 145 | 143 | 141 | 140 | 4 | 8 | ||||||||||||||||||||||||||||||||||
| Equipment | 64 | 65 | 59 | 61 | 79 | (2) | (19) | ||||||||||||||||||||||||||||||||||
| Net occupancy | 60 | 51 | 57 | 52 | 54 | 18 | 11 | ||||||||||||||||||||||||||||||||||
| Marketing | 25 | 22 | 24 | 24 | 21 | 14 | 19 | ||||||||||||||||||||||||||||||||||
| Professional services | 16 | 20 | 18 | 18 | 17 | (20) | (6) | ||||||||||||||||||||||||||||||||||
| Deposit and other insurance expense | 20 | 14 | 15 | 19 | 18 | 43 | 11 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 13 | 13 | 13 | 13 | 14 | — | (7) | ||||||||||||||||||||||||||||||||||
| Lease financing equipment depreciation | 8 | 9 | 11 | 11 | 14 | (11) | (43) | ||||||||||||||||||||||||||||||||||
| Other noninterest expense | 80 | 93 | 90 | 80 | 75 | (14) | 7 | ||||||||||||||||||||||||||||||||||
| Total adjusted noninterest expense | $ | 1,044 | $ | 1,062 | $ | 1,043 | $ | 994 | $ | 1,007 | (2) | % | 4 | % | |||||||||||||||||||||||||||
Reported total noninterest expense for the 2023 first quarter increased $33 million, or 3%, from the year-ago quarter. Excluding the impact from Notable Items, noninterest expense increased $37 million, or 4%, primarily driven by higher personnel costs of $32 million, or 6%, due to the impact of the Capstone acquisition and outside data processing and other services increase of $11 million, or 8%, driven by higher technology investments. Partially offsetting these increases was $15 million, or 19%, lower equipment expense reflecting timing of technology equipment purchases and amortization.
Reported total noninterest expense increased $9 million, or 1%, from the 2022 fourth quarter. Excluding the impact from Notable Items, noninterest expense decreased $18 million, or 2%, primarily driven by lower personnel costs and other noninterest expense reflecting reduced incentive compensation and Capstone expenses attributable to revenue activity. Partially offsetting these decreases were increases of $9 million, or 18%, in net occupancy driven by prior quarter gains associated with sale of assets, and $6 million, or 43%, in deposit and other insurance expense due to increase in FDIC insurance rate.
9
Credit Quality
Table 10 – Credit Quality Metrics
| 2023 | 2022 | ||||||||||||||||||||||||||||
| ($ in millions) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| Total nonaccrual loans and leases | $ | 533 | $ | 569 | $ | 602 | $ | 657 | $ | 682 | |||||||||||||||||||
| Total other real estate, net | 20 | 11 | 11 | 11 | 11 | ||||||||||||||||||||||||
Other NPAs (1) | 25 | 14 | 14 | 14 | 15 | ||||||||||||||||||||||||
| Total nonperforming assets | 578 | 594 | 627 | 682 | 708 | ||||||||||||||||||||||||
| Accruing loans and leases past due 90+ days | 185 | 207 | 223 | 212 | 280 | ||||||||||||||||||||||||
| NPAs + accruing loans & leases past due 90+ days | $ | 763 | $ | 801 | $ | 850 | $ | 894 | $ | 988 | |||||||||||||||||||
NAL ratio (2) | 0.44 | % | 0.48 | % | 0.51 | % | 0.57 | % | 0.60 | % | |||||||||||||||||||
NPA ratio (3) | 0.48 | 0.50 | 0.53 | 0.59 | 0.63 | ||||||||||||||||||||||||
| (NPAs+90 days)/(Loans+OREO) | 0.63 | 0.67 | 0.72 | 0.77 | 0.88 | ||||||||||||||||||||||||
| Provision for credit losses | $ | 85 | $ | 91 | $ | 106 | $ | 67 | $ | 25 | |||||||||||||||||||
| Net charge-offs | 57 | 50 | 44 | 8 | 19 | ||||||||||||||||||||||||
| Net charge-offs / Average total loans and leases | 0.19 | % | 0.17 | % | 0.15 | % | 0.03 | % | 0.07 | % | |||||||||||||||||||
| Allowance for loans and lease losses (ALLL) | $ | 2,142 | $ | 2,121 | $ | 2,110 | $ | 2,074 | $ | 2,018 | |||||||||||||||||||
| Allowance for unfunded lending commitments | 157 | 150 | 120 | 94 | 91 | ||||||||||||||||||||||||
| Allowance for credit losses (ACL) | $ | 2,299 | $ | 2,271 | $ | 2,230 | $ | 2,168 | $ | 2,109 | |||||||||||||||||||
| ALLL as a % of: | |||||||||||||||||||||||||||||
| Total loans and leases | 1.77 | % | 1.77 | % | 1.79 | % | 1.78 | % | 1.79 | % | |||||||||||||||||||
| NALs | 402 | 373 | 351 | 316 | 296 | ||||||||||||||||||||||||
| NPAs | 371 | 357 | 336 | 304 | 285 | ||||||||||||||||||||||||
| ACL as a % of: | |||||||||||||||||||||||||||||
| Total loans and leases | 1.90 | % | 1.90 | % | 1.89 | % | 1.87 | % | 1.87 | % | |||||||||||||||||||
| NALs | 431 | 400 | 371 | 330 | 309 | ||||||||||||||||||||||||
| NPAs | 398 | 382 | 355 | 318 | 298 | ||||||||||||||||||||||||
(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)Total NALs as a % of total loans and leases.
(3)Total NPAs as a % of sum of loans and leases, other real estate owned, and other NPAs.
See Pages 11-14 of Quarterly Financial Supplement for additional detail.
Nonperforming assets (NPAs) were $578 million, or 0.48%, of total loans and leases, OREO and other NPAs, compared to $708 million, or 0.63%, a year-ago. Nonaccrual loans and leases (NALs) were $533 million, or 0.44% of total loans and leases, compared to $682 million, or 0.60% of total loans and leases, a year-ago. On a linked quarter basis, NPAs decreased $16 million, or 3%, and NALs decreased $36 million, or 6%.
The provision for credit losses increased $60 million year-over-year and decreased $6 million quarter-over-quarter to $85 million in the 2023 first quarter. Net charge-offs (NCOs) increased $38 million year-over-year and increased $7 million quarter-over-quarter to $57 million. NCOs represented an annualized 0.19% of average loans and leases in the current quarter, up from 0.07% in the year-ago quarter and up from 0.17% in the prior quarter. The increase in NCOs reflects the continued normalization of net charge-offs. Commercial and consumer net charge-offs remained low at 0.17% and 0.21%, respectively, for the 2023 first quarter.
The allowance for loan and lease losses (ALLL) increased $124 million from the year-ago quarter to $2.1 billion, or 1.77%, and allowance for credit losses (ACL) increased by $190 million from the year-ago quarter to $2.3 billion, or 1.90% of total loans and leases, primarily driven by loan and lease portfolio growth and recognition of increased near-term recessionary risks. On a linked quarter basis, the ACL increased $28 million, resulting in the ACL coverage ratio being flat at 1.90%.
10
Capital
Table 11 – Capital Ratios
| 2023 | 2022 | |||||||||||||||||||||||||||||||
| ($ in billions) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||
| Tangible common equity / tangible assets ratio | 5.77 | % | 5.55 | % | 5.32 | % | 5.80 | % | 6.28 | % | ||||||||||||||||||||||
Common equity tier 1 risk-based capital ratio (1) | 9.55 | 9.36 | 9.27 | 9.05 | 9.22 | |||||||||||||||||||||||||||
Regulatory Tier 1 risk-based capital ratio (1) | 11.30 | 10.90 | 10.84 | 10.63 | 10.84 | |||||||||||||||||||||||||||
Regulatory Total risk-based capital ratio (1) | 13.53 | 13.09 | 13.05 | 12.81 | 13.03 | |||||||||||||||||||||||||||
Total risk-weighted assets (1) | $ | 142.3 | $ | 141.9 | $ | 138.8 | $ | 137.8 | $ | 134.5 | ||||||||||||||||||||||
(1)March 31, 2023 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. The capital ratios reflect Huntington’s 2020 election of a five-year transition to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. As of March 31, 2023, 50% of the cumulative CECL deferral has been phased in. As of March 31, 2022, June 30, 2022, September 30, 2022, and December 31, 2022 25% of the cumulative CECL deferral has been phased in.
See Page 15 of Quarterly Financial Supplement for additional detail.
The tangible common equity to tangible assets ratio was 5.77% at March 31, 2023, up 22 basis points from last quarter due primarily to current period earnings and improved accumulated other comprehensive income (AOCI). Common Equity Tier 1 (CET1) risk-based capital ratio was 9.55%, up from 9.36% from the prior quarter. The increase in regulatory capital ratios was primarily driven by current period earnings, partially offset by the CECL transitional amount.
Income Taxes
The provision for income taxes was $144 million in the 2023 first quarter compared to $144 million in the 2022 fourth quarter. The effective tax rate for the 2023 first quarter and 2022 fourth quarter were 19.2% and 18.2%, respectively. The variance to the linked quarter effective tax rate relates primarily to higher state tax expense and nondeductible items.
At March 31, 2023, we had a net federal deferred tax asset of $294 million and a net state deferred tax asset of $82 million.
Conference Call / Webcast Information
Huntington’s senior management will host an earnings conference call on April 20, 2023, at 11:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington’s website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029; Conference ID #13737064. Slides will be available in the Investor Relations section of Huntington’s website about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s website. A telephone replay will be available approximately two hours after the completion of the call through April 28, 2023 at (877) 660-6853 or (201) 612-7415; conference ID #13737064.
Please see the 2023 First Quarter Quarterly Financial Supplement for additional detailed financial performance metrics. This document can be found on the Investor Relations section of Huntington's website, http://www.huntington.com.
11
About Huntington
Huntington Bancshares Incorporated is a $189 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates more than 1,000 branches in 11 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.
Caution regarding Forward-Looking Statements
The information contained or incorporated by reference in this Press Release on Form 8-K contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the impact of pandemics, including the COVID-19 pandemic and related variants and mutations, and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from recent bank failures and other volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital and credit markets; movements in interest rates; transition away from LIBOR; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services including those implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and CFPB; and other factors that may affect the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2022, which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
12
Basis of Presentation
Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, conference call slides, or the Form 8-K related to this document, all of which can be found in the Investor Relations section of Huntington’s website, http://www.huntington.com.
Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. For example, loan and deposit growth rates, as well as net charge-off percentages, are most often expressed in terms of an annual rate like 8%. As such, a 2% growth rate for a quarter would represent an annualized 8% growth rate.
Fully-Taxable Equivalent Interest Income and Net Interest Margin
Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of competitors.
Rounding
Please note that columns of data in this document may not add due to rounding.
Notable Items
From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management at that time to be infrequent or short term in nature. We refer to such items as “Notable Items.” Management believes it is useful to consider certain financial metrics with and without Notable Items, in order to enable a better understanding of company results, increase comparability of period-to-period results, and to evaluate and forecast those results.
13
Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
March 31, 2023
Table of Contents
Quarterly Accruing Past Due Loans and Leases | |||||
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%.
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) | March 31, | December 31, | March 31, | Percent Changes vs. | ||||||||||||||||||||||||||||
| 2023 | 2022 | 2022 | 4Q22 | 1Q22 | ||||||||||||||||||||||||||||
Net interest income (2) | $ | 1,418 | $ | 1,471 | $ | 1,154 | (4) | % | 23 | % | ||||||||||||||||||||||
| FTE adjustment | (9) | (9) | (8) | — | (13) | |||||||||||||||||||||||||||
Net interest income | 1,409 | 1,462 | 1,146 | (4) | 23 | |||||||||||||||||||||||||||
| Provision for credit losses | 85 | 91 | 25 | (7) | 240 | |||||||||||||||||||||||||||
| Noninterest income | 512 | 499 | 499 | 3 | 3 | |||||||||||||||||||||||||||
| Noninterest expense | 1,086 | 1,077 | 1,053 | 1 | 3 | |||||||||||||||||||||||||||
| Income before income taxes | 750 | 793 | 567 | (5) | 32 | |||||||||||||||||||||||||||
| Provision for income taxes | 144 | 144 | 105 | — | 37 | |||||||||||||||||||||||||||
| Income after income taxes | 606 | 649 | 462 | (7) | 31 | |||||||||||||||||||||||||||
| Income attributable to non-controlling interest | 4 | 4 | 2 | — | 100 | |||||||||||||||||||||||||||
| Net income attributable to Huntington | 602 | 645 | 460 | (7) | 31 | |||||||||||||||||||||||||||
| Dividends on preferred shares | 29 | 28 | 28 | 4 | 4 | |||||||||||||||||||||||||||
| Net income applicable to common shares | $ | 573 | $ | 617 | $ | 432 | (7) | % | 33 | |||||||||||||||||||||||
| Net income per common share - diluted | $ | 0.39 | $ | 0.42 | $ | 0.29 | (7) | % | 34 | % | ||||||||||||||||||||||
Cash dividends declared per common share | 0.155 | 0.155 | 0.155 | — | — | |||||||||||||||||||||||||||
Tangible book value per common share at end of period | 7.32 | 6.82 | 7.47 | 7 | (2) | |||||||||||||||||||||||||||
Average common shares - basic | 1,443 | 1,443 | 1,438 | — | — | |||||||||||||||||||||||||||
Average common shares - diluted | 1,469 | 1,468 | 1,464 | — | — | |||||||||||||||||||||||||||
Ending common shares outstanding | 1,444 | 1,443 | 1,439 | — | — | |||||||||||||||||||||||||||
Return on average assets | 1.32 | % | 1.41 | % | 1.05 | % | ||||||||||||||||||||||||||
Return on average common shareholders’ equity | 14.6 | 16.0 | 10.4 | |||||||||||||||||||||||||||||
Return on average tangible common shareholders’ equity (1) | 23.1 | 26.0 | 15.8 | |||||||||||||||||||||||||||||
Net interest margin (2) | 3.40 | 3.52 | 2.88 | |||||||||||||||||||||||||||||
Efficiency ratio (3) | 55.6 | 54.0 | 62.9 | |||||||||||||||||||||||||||||
| Effective tax rate | 19.2 | 18.2 | 18.5 | |||||||||||||||||||||||||||||
Average total assets | $ | 184,894 | $ | 181,292 | $ | 177,612 | 2 | 4 | ||||||||||||||||||||||||
Average earning assets | 169,112 | 165,545 | 162,414 | 2 | 4 | |||||||||||||||||||||||||||
Average loans and leases | 120,420 | 118,907 | 111,142 | 1 | 8 | |||||||||||||||||||||||||||
Average loans and leases - linked quarter annualized growth rate | 5.1 | % | 6.6 | % | 6.0 | % | ||||||||||||||||||||||||||
Average total deposits | $ | 146,144 | $ | 145,672 | $ | 142,917 | — | 2 | ||||||||||||||||||||||||
| Average core deposits (4) | 141,077 | 140,696 | 139,148 | — | 1 | |||||||||||||||||||||||||||
| Average Huntington shareholders’ equity | 18,231 | 17,458 | 19,064 | 4 | (4) | |||||||||||||||||||||||||||
Average common total shareholders' equity | 15,973 | 15,292 | 16,898 | 4 | (5) | |||||||||||||||||||||||||||
Average tangible common shareholders' equity | 10,253 | 9,563 | 11,364 | 7 | (10) | |||||||||||||||||||||||||||
Total assets at end of period | 189,070 | 182,906 | 176,856 | 3 | 7 | |||||||||||||||||||||||||||
| Total Huntington shareholders’ equity at end of period | 18,758 | 17,731 | 18,452 | 6 | 2 | |||||||||||||||||||||||||||
NCOs as a % of average loans and leases | 0.19 | % | 0.17 | % | 0.07 | % | ||||||||||||||||||||||||||
NAL ratio | 0.44 | 0.48 | 0.60 | |||||||||||||||||||||||||||||
| NPA ratio (5) | 0.48 | 0.50 | 0.63 | |||||||||||||||||||||||||||||
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period | 1.77 | 1.77 | 1.79 | |||||||||||||||||||||||||||||
| Allowance for credit losses (ACL) as a % of total loans and leases at the end of period | 1.90 | 1.90 | 1.87 | |||||||||||||||||||||||||||||
| Common equity tier 1 risk-based capital ratio (6) | 9.55 | 9.36 | 9.22 | |||||||||||||||||||||||||||||
| Tangible common equity / tangible asset ratio (7) | 5.77 | 5.55 | 6.28 | |||||||||||||||||||||||||||||
See Notes to the Quarterly Key Statistics.
1
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)March 31, 2023, 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.
2
Huntington Bancshares Incorporated
Consolidated Balance Sheets
| March 31, | December 31, | ||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | Percent Changes | ||||||||||||||
| (Unaudited) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 1,568 | $ | 1,796 | (13) | % | |||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 8,801 | 4,908 | 79 | ||||||||||||||
Interest-bearing deposits in banks | 203 | 214 | (5) | ||||||||||||||
Trading account securities | 18 | 19 | (5) | ||||||||||||||
Available-for-sale securities | 24,086 | 23,423 | 3 | ||||||||||||||
Held-to-maturity securities | 16,977 | 17,052 | — | ||||||||||||||
Other securities | 1,299 | 854 | 52 | ||||||||||||||
Loans held for sale | 457 | 529 | (14) | ||||||||||||||
Loans and leases (1) | 121,179 | 119,523 | 1 | ||||||||||||||
Allowance for loan and lease losses | (2,142) | (2,121) | (1) | ||||||||||||||
Net loans and leases | 119,037 | 117,402 | 1 | ||||||||||||||
Bank owned life insurance | 2,753 | 2,753 | — | ||||||||||||||
| Accrued income and other receivables | 1,521 | 1,573 | (3) | ||||||||||||||
Premises and equipment | 1,136 | 1,156 | (2) | ||||||||||||||
Goodwill | 5,561 | 5,571 | — | ||||||||||||||
| Servicing rights and other intangible assets | 685 | 712 | (4) | ||||||||||||||
Other assets | 4,968 | 4,944 | — | ||||||||||||||
Total assets | $ | 189,070 | $ | 182,906 | 3 | % | |||||||||||
| Liabilities and shareholders' equity | |||||||||||||||||
Liabilities | |||||||||||||||||
Deposits (2) | $ | 145,278 | $ | 147,914 | (2) | % | |||||||||||
Short-term borrowings | 6,898 | 2,027 | 240 | ||||||||||||||
Long-term debt | 13,072 | 9,686 | 35 | ||||||||||||||
Other liabilities | 5,011 | 5,510 | (9) | ||||||||||||||
Total liabilities | 170,259 | 165,137 | 3 | ||||||||||||||
| Shareholders' equity | |||||||||||||||||
Preferred stock | 2,484 | 2,167 | 15 | ||||||||||||||
Common stock | 15 | 14 | 7 | ||||||||||||||
Capital surplus | 15,332 | 15,309 | — | ||||||||||||||
Less treasury shares, at cost | (82) | (80) | (3) | ||||||||||||||
| Accumulated other comprehensive income (loss) | (2,755) | (3,098) | 11 | ||||||||||||||
| Retained earnings | 3,764 | 3,419 | 10 | ||||||||||||||
| Total Huntington shareholders’ equity | 18,758 | 17,731 | 6 | ||||||||||||||
| Non-controlling interest | 53 | 38 | 39 | ||||||||||||||
| Total equity | 18,811 | 17,769 | 6 | ||||||||||||||
| Total liabilities and equity | $ | 189,070 | $ | 182,906 | 3 | % | |||||||||||
Common shares authorized (par value of $0.01) | 2,250,000,000 | 2,250,000,000 | |||||||||||||||
Common shares outstanding | 1,443,614,966 | 1,443,068,036 | |||||||||||||||
Treasury shares outstanding | 6,465,176 | 6,322,052 | |||||||||||||||
Preferred stock, authorized shares | 6,617,808 | 6,617,808 | |||||||||||||||
Preferred shares outstanding | 882,500 | 557,500 | |||||||||||||||
(1)See page 4 for detail of loans and leases.
(2)See page 5 for detail of deposits.
3
Huntington Bancshares Incorporated
Loans and Leases Composition
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balances by type: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 47,049 | 40 | % | $ | 45,127 | 38 | % | $ | 44,144 | 38 | % | $ | 43,440 | 38 | % | $ | 42,236 | 37 | % | |||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 15,122 | 12 | 15,132 | 13 | 14,717 | 12 | 14,173 | 12 | 13,381 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 1,255 | 1 | 1,502 | 1 | 1,739 | 2 | 1,522 | 1 | 2,010 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 16,377 | 13 | 16,634 | 14 | 16,456 | 14 | 15,695 | 13 | 15,391 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Lease financing | 5,244 | 4 | 5,252 | 4 | 5,093 | 4 | 5,043 | 4 | 4,978 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 68,670 | 57 | 67,013 | 56 | 65,693 | 56 | 64,178 | 55 | 62,605 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 22,472 | 19 | 22,226 | 19 | 21,816 | 18 | 21,220 | 18 | 19,942 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 13,187 | 11 | 13,154 | 11 | 13,430 | 11 | 13,622 | 12 | 13,480 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 10,166 | 8 | 10,375 | 9 | 10,440 | 9 | 10,426 | 9 | 10,343 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
RV and marine | 5,404 | 4 | 5,376 | 4 | 5,436 | 5 | 5,453 | 5 | 5,191 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 1,280 | 1 | 1,379 | 1 | 1,332 | 1 | 1,322 | 1 | 1,256 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 52,509 | 43 | 52,510 | 44 | 52,454 | 44 | 52,043 | 45 | 50,212 | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 121,179 | 100 | % | $ | 119,523 | 100 | % | $ | 118,147 | 100 | % | $ | 116,221 | 100 | % | $ | 112,817 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balances by business segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking | $ | 56,828 | 47 | % | $ | 55,497 | 47 | % | $ | 54,515 | 47 | % | $ | 52,845 | 45 | % | $ | 51,132 | 45 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | 32,236 | 27 | 32,386 | 27 | 32,115 | 27 | 32,144 | 28 | 31,756 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 22,071 | 18 | 21,741 | 18 | 21,707 | 18 | 21,848 | 19 | 21,344 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG (Regional Banking and The Huntington Private Client Group) | 9,851 | 8 | 9,760 | 8 | 9,586 | 8 | 9,181 | 8 | 8,435 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other | 193 | — | 139 | — | 224 | — | 203 | — | 150 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 121,179 | 100 | % | $ | 119,523 | 100 | % | $ | 118,147 | 100 | % | $ | 116,221 | 100 | % | $ | 112,817 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| Average balances by business segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking | $ | 56,146 | 47 | % | $ | 54,979 | 47 | % | $ | 53,255 | 46 | % | $ | 51,280 | 45 | % | $ | 49,515 | 45 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | 32,235 | 27 | 32,259 | 27 | 32,116 | 27 | 31,926 | 28 | 32,134 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 21,969 | 18 | 21,721 | 18 | 21,748 | 19 | 21,601 | 19 | 21,155 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG | 9,778 | 8 | 9,666 | 8 | 9,416 | 8 | 8,786 | 8 | 8,178 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other | 292 | — | 282 | — | 429 | — | 356 | — | 160 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 120,420 | 100 | % | $ | 118,907 | 100 | % | $ | 116,964 | 100 | % | $ | 113,949 | 100 | % | $ | 111,142 | 100 | % | |||||||||||||||||||||||||||||||||||||||
4
Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits by type: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Demand deposits - noninterest-bearing | $ | 36,789 | 25 | % | $ | 38,242 | 26 | % | $ | 40,762 | 28 | % | $ | 42,131 | 29 | % | $ | 43,824 | 29 | % | |||||||||||||||||||||||||||||||||||||||
| Demand deposits - interest-bearing | 39,827 | 28 | 43,136 | 29 | 43,673 | 30 | 41,433 | 28 | 42,099 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Money market deposits | 37,276 | 26 | 36,082 | 24 | 33,811 | 23 | 34,257 | 24 | 33,444 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Savings and other domestic deposits | 19,546 | 13 | 20,357 | 14 | 21,274 | 15 | 21,583 | 15 | 21,716 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Core certificates of deposit (1) | 6,981 | 5 | 4,324 | 3 | 2,115 | 1 | 2,103 | 1 | 2,358 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits | 140,419 | 97 | 142,141 | 96 | 141,635 | 97 | 141,507 | 97 | 143,441 | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other domestic deposits of $250,000 or more | 282 | — | 220 | — | 186 | — | 221 | — | 274 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 4,577 | 3 | 5,553 | 4 | 4,492 | 3 | 3,707 | 3 | 3,250 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 145,278 | 100 | % | $ | 147,914 | 100 | % | $ | 146,313 | 100 | % | $ | 145,435 | 100 | % | $ | 146,965 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| Total core deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 61,132 | 44 | % | $ | 64,107 | 45 | % | $ | 65,151 | 46 | % | $ | 63,629 | 45 | % | $ | 64,013 | 45 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer | 79,287 | 56 | 78,034 | 55 | 76,484 | 54 | 77,878 | 55 | 79,428 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits | $ | 140,419 | 100 | % | $ | 142,141 | 100 | % | $ | 141,635 | 100 | % | $ | 141,507 | 100 | % | $ | 143,441 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| Total deposits by business segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking | $ | 35,243 | 24 | % | $ | 37,509 | 25 | % | $ | 37,194 | 25 | % | $ | 34,670 | 24 | % | $ | 35,034 | 24 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | 94,729 | 65 | 93,676 | 64 | 93,854 | 65 | 95,693 | 66 | 96,907 | 65 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 1,018 | 1 | 1,136 | 1 | 1,173 | 1 | 1,291 | 1 | 1,323 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG | 9,009 | 6 | 9,550 | 6 | 8,982 | 6 | 9,226 | 6 | 9,672 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other (2) | 5,279 | 4 | 6,043 | 4 | 5,110 | 3 | 4,555 | 3 | 4,029 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 145,278 | 100 | % | $ | 147,914 | 100 | % | $ | 146,313 | 100 | % | $ | 145,435 | 100 | % | $ | 146,965 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| Average balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 63,423 | 45 | % | $ | 65,128 | 46 | % | $ | 65,278 | 46 | % | $ | 63,921 | 45 | % | $ | 61,772 | 44 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer | 77,654 | 55 | 75,568 | 54 | 76,414 | 54 | 77,881 | 55 | 77,376 | 56 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits | $ | 141,077 | 100 | % | $ | 140,696 | 100 | % | $ | 141,692 | 100 | % | $ | 141,802 | 100 | % | $ | 139,148 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| Average deposits by business segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking | $ | 36,897 | 25 | % | $ | 37,006 | 25 | % | $ | 36,636 | 25 | % | $ | 35,156 | 24 | % | $ | 33,355 | 23 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | 93,210 | 64 | 92,654 | 64 | 93,924 | 65 | 95,263 | 65 | 94,464 | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 1,101 | 1 | 1,171 | 1 | 1,252 | 1 | 1,257 | 1 | 1,289 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG | 9,231 | 6 | 9,249 | 6 | 9,242 | 6 | 9,493 | 7 | 9,520 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other (2) | 5,705 | 4 | 5,592 | 4 | 4,954 | 3 | 3,839 | 3 | 4,289 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 146,144 | 100 | % | $ | 145,672 | 100 | % | $ | 146,008 | 100 | % | $ | 145,008 | 100 | % | $ | 142,917 | 100 | % | |||||||||||||||||||||||||||||||||||||||
(1)Includes consumer certificates of deposit of $250,000 or more.
(2)Comprised primarily of national market deposits.
5
Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)
| Quarterly Average Balances (1) | ||||||||||||||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | Percent Changes vs. | |||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | 4Q22 | 1Q22 | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | $ | 6,101 | $ | 4,615 | $ | 3,204 | $ | 3,532 | $ | 7,195 | 32 | % | (15) | % | ||||||||||||||||||||||||||||||
Interest-bearing deposits in banks | 249 | 305 | 260 | 161 | 174 | (18) | 43 | |||||||||||||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||||||||||||||
Trading account securities | 21 | 29 | 24 | 30 | 46 | (28) | (54) | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||
Taxable | 21,368 | 20,467 | 21,677 | 21,672 | 24,205 | 4 | (12) | |||||||||||||||||||||||||||||||||||||
Tax-exempt | 2,640 | 2,706 | 2,917 | 2,859 | 2,886 | (2) | (9) | |||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 24,008 | 23,173 | 24,594 | 24,531 | 27,091 | 4 | (11) | |||||||||||||||||||||||||||||||||||||
Held-to-maturity securities - taxable | 16,977 | 17,022 | 17,188 | 17,234 | 14,556 | — | 17 | |||||||||||||||||||||||||||||||||||||
| Other securities | 886 | 857 | 804 | 755 | 967 | 3 | (8) | |||||||||||||||||||||||||||||||||||||
Total securities | 41,892 | 41,081 | 42,610 | 42,550 | 42,660 | 2 | (2) | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 450 | 637 | 986 | 1,033 | 1,243 | (29) | (64) | |||||||||||||||||||||||||||||||||||||
Loans and leases: (2) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 46,110 | 44,747 | 43,598 | 42,689 | 41,397 | 3 | 11 | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | 15,200 | 14,937 | 14,405 | 13,516 | 13,186 | 2 | 15 | |||||||||||||||||||||||||||||||||||||
Construction | 1,400 | 1,676 | 1,697 | 1,760 | 1,877 | (16) | (25) | |||||||||||||||||||||||||||||||||||||
Commercial real estate | 16,600 | 16,613 | 16,102 | 15,276 | 15,063 | — | 10 | |||||||||||||||||||||||||||||||||||||
| Lease financing | 5,209 | 5,080 | 4,981 | 4,919 | 4,912 | 3 | 6 | |||||||||||||||||||||||||||||||||||||
Total commercial | 67,919 | 66,440 | 64,681 | 62,884 | 61,372 | 2 | 11 | |||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 22,327 | 22,011 | 21,552 | 20,527 | 19,505 | 1 | 14 | |||||||||||||||||||||||||||||||||||||
| Automobile | 13,245 | 13,284 | 13,514 | 13,557 | 13,463 | — | (2) | |||||||||||||||||||||||||||||||||||||
| Home equity | 10,258 | 10,417 | 10,431 | 10,373 | 10,414 | (2) | (1) | |||||||||||||||||||||||||||||||||||||
| RV and marine | 5,366 | 5,408 | 5,454 | 5,317 | 5,103 | (1) | 5 | |||||||||||||||||||||||||||||||||||||
Other consumer | 1,305 | 1,347 | 1,332 | 1,291 | 1,285 | (3) | 2 | |||||||||||||||||||||||||||||||||||||
Total consumer | 52,501 | 52,467 | 52,283 | 51,065 | 49,770 | — | 5 | |||||||||||||||||||||||||||||||||||||
Total loans and leases | 120,420 | 118,907 | 116,964 | 113,949 | 111,142 | 1 | 8 | |||||||||||||||||||||||||||||||||||||
Total earning assets | 169,112 | 165,545 | 164,024 | 161,225 | 162,414 | 2 | 4 | |||||||||||||||||||||||||||||||||||||
Cash and due from banks | 1,598 | 1,650 | 1,697 | 1,669 | 1,648 | (3) | (3) | |||||||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets | 5,759 | 5,771 | 5,781 | 5,613 | 5,584 | — | 3 | |||||||||||||||||||||||||||||||||||||
All other assets | 10,568 | 10,458 | 10,154 | 10,107 | 10,013 | 1 | 6 | |||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (2,143) | (2,132) | (2,099) | (2,053) | (2,047) | (1) | (5) | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 184,894 | $ | 181,292 | $ | 179,557 | $ | 176,561 | $ | 177,612 | 2 | % | 4 | % | ||||||||||||||||||||||||||||||
| Liabilities and shareholders' equity | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||
Demand deposits - interest-bearing | $ | 40,654 | $ | 42,705 | $ | 42,038 | $ | 41,712 | $ | 40,634 | (5) | % | — | % | ||||||||||||||||||||||||||||||
Money market deposits | 37,301 | 34,390 | 34,058 | 33,791 | 32,672 | 8 | 14 | |||||||||||||||||||||||||||||||||||||
Savings and other domestic deposits | 19,877 | 20,831 | 21,439 | 21,683 | 21,316 | (5) | (7) | |||||||||||||||||||||||||||||||||||||
Core certificates of deposit (3) | 5,747 | 2,926 | 2,040 | 2,228 | 2,560 | 96 | 124 | |||||||||||||||||||||||||||||||||||||
Other domestic deposits of $250,000 or more | 252 | 198 | 193 | 225 | 316 | 27 | (20) | |||||||||||||||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 4,815 | 4,777 | 4,124 | 2,981 | 3,453 | 1 | 39 | |||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 108,646 | 105,827 | 103,892 | 102,620 | 100,951 | 3 | 8 | |||||||||||||||||||||||||||||||||||||
Short-term borrowings | 4,371 | 545 | 2,609 | 2,103 | 4,728 | 702 | (8) | |||||||||||||||||||||||||||||||||||||
Long-term debt | 11,047 | 12,650 | 8,251 | 7,024 | 6,914 | (13) | 60 | |||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 124,064 | 119,022 | 114,752 | 111,747 | 112,593 | 4 | 10 | |||||||||||||||||||||||||||||||||||||
Demand deposits - noninterest-bearing | 37,498 | 39,845 | 42,116 | 42,388 | 41,966 | (6) | (11) | |||||||||||||||||||||||||||||||||||||
All other liabilities | 5,056 | 4,929 | 4,340 | 4,168 | 3,964 | 3 | 28 | |||||||||||||||||||||||||||||||||||||
| Total liabilities | 166,618 | 163,796 | 161,208 | 158,303 | 158,523 | 2 | 5 | |||||||||||||||||||||||||||||||||||||
| Total Huntington shareholders’ equity | 18,231 | 17,458 | 18,317 | 18,228 | 19,064 | 4 | (4) | |||||||||||||||||||||||||||||||||||||
| Non-controlling interest | 45 | 38 | 32 | 30 | 25 | 18 | 80 | |||||||||||||||||||||||||||||||||||||
| Total equity | 18,276 | 17,496 | 18,349 | 18,258 | 19,089 | 4 | (4) | |||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 184,894 | $ | 181,292 | $ | 179,557 | $ | 176,561 | $ | 177,612 | 2 | % | 4 | % | ||||||||||||||||||||||||||||||
(1)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)Includes nonaccrual loans and leases.
(3)Includes consumer certificates of deposit of $250,000 or more.
6
Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
Quarterly Interest Income / Expense | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | $ | 71 | $ | 46 | $ | 19 | $ | 7 | $ | 3 | |||||||||||||||||||
Interest-bearing deposits in banks | 5 | 5 | 2 | 1 | — | ||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
Trading account securities | — | — | — | 1 | — | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Taxable | 232 | 198 | 165 | 123 | 90 | ||||||||||||||||||||||||
Tax-exempt | 29 | 28 | 25 | 19 | 22 | ||||||||||||||||||||||||
Total available-for-sale securities | 261 | 226 | 190 | 142 | 112 | ||||||||||||||||||||||||
Held-to-maturity securities - taxable | 102 | 100 | 95 | 90 | 66 | ||||||||||||||||||||||||
| Other securities | 10 | 9 | 7 | 6 | 5 | ||||||||||||||||||||||||
Total securities | 373 | 335 | 292 | 239 | 183 | ||||||||||||||||||||||||
Loans held for sale | 7 | 8 | 13 | 10 | 10 | ||||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | 643 | 578 | 490 | 415 | 392 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Commercial | 250 | 220 | 169 | 115 | 97 | ||||||||||||||||||||||||
| Construction | 26 | 28 | 21 | 16 | 17 | ||||||||||||||||||||||||
| Commercial real estate | 276 | 248 | 190 | 131 | 114 | ||||||||||||||||||||||||
| Lease financing | 68 | 66 | 63 | 61 | 61 | ||||||||||||||||||||||||
| Total commercial | 987 | 892 | 743 | 607 | 567 | ||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | 190 | 183 | 174 | 158 | 146 | ||||||||||||||||||||||||
| Automobile | 129 | 125 | 120 | 115 | 112 | ||||||||||||||||||||||||
| Home equity | 181 | 172 | 143 | 115 | 102 | ||||||||||||||||||||||||
| RV and marine | 58 | 61 | 59 | 55 | 52 | ||||||||||||||||||||||||
| Other consumer | 36 | 36 | 32 | 30 | 28 | ||||||||||||||||||||||||
| Total consumer | 594 | 577 | 528 | 473 | 440 | ||||||||||||||||||||||||
Total loans and leases | 1,581 | 1,469 | 1,271 | 1,080 | 1,007 | ||||||||||||||||||||||||
Total earning assets | $ | 2,037 | $ | 1,863 | $ | 1,597 | $ | 1,337 | $ | 1,203 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Demand deposits - interest-bearing | $ | 132 | $ | 102 | $ | 42 | $ | 11 | $ | 3 | |||||||||||||||||||
| Money market deposits | 172 | 75 | 25 | 8 | 4 | ||||||||||||||||||||||||
Savings and other domestic deposits | 3 | 2 | 1 | 1 | 1 | ||||||||||||||||||||||||
Core certificates of deposit (3) | 43 | 10 | 1 | — | 1 | ||||||||||||||||||||||||
Other domestic deposits of $250,000 or more | 2 | 1 | — | — | — | ||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 54 | 45 | 23 | 5 | 2 | ||||||||||||||||||||||||
Total interest-bearing deposits | 406 | 235 | 92 | 25 | 11 | ||||||||||||||||||||||||
Short-term borrowings | 60 | 10 | 22 | 7 | 7 | ||||||||||||||||||||||||
Long-term debt | 153 | 147 | 71 | 38 | 31 | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 619 | 392 | 185 | 70 | 49 | ||||||||||||||||||||||||
Net interest income | $ | 1,418 | $ | 1,471 | $ | 1,412 | $ | 1,267 | $ | 1,154 | |||||||||||||||||||
(1)Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 9 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.
7
Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Yield
(Unaudited)
Quarterly Average Rates | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
Fully-taxable equivalent basis (1) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 4.65 | % | 3.99 | % | 2.39 | % | 0.80 | % | 0.17 | % | |||||||||||||||||||
Interest-bearing deposits in banks | 8.50 | 5.72 | 3.31 | 1.32 | 0.15 | ||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
Trading account securities | 5.37 | 5.45 | 4.12 | 3.99 | 3.39 | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Taxable | 4.34 | 3.87 | 3.06 | 2.25 | 1.49 | ||||||||||||||||||||||||
Tax-exempt | 4.40 | 4.21 | 3.39 | 2.71 | 3.00 | ||||||||||||||||||||||||
Total available-for-sale securities | 4.35 | 3.91 | 3.09 | 2.30 | 1.65 | ||||||||||||||||||||||||
Held-to-maturity securities - taxable | 2.41 | 2.34 | 2.21 | 2.10 | 1.81 | ||||||||||||||||||||||||
| Other securities | 4.35 | 4.15 | 3.21 | 3.62 | 1.88 | ||||||||||||||||||||||||
Total securities | 3.56 | 3.26 | 2.74 | 2.24 | 1.72 | ||||||||||||||||||||||||
Loans held for sale | 5.85 | 5.42 | 4.98 | 4.08 | 3.15 | ||||||||||||||||||||||||
Loans and leases: (3) | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | 5.58 | 5.05 | 4.40 | 3.84 | 3.79 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Commercial | 6.58 | 5.78 | 4.57 | 3.38 | 2.94 | ||||||||||||||||||||||||
| Construction | 7.40 | 6.54 | 4.95 | 3.70 | 3.52 | ||||||||||||||||||||||||
| Commercial real estate | 6.65 | 5.85 | 4.61 | 3.41 | 3.01 | ||||||||||||||||||||||||
| Lease financing | 5.25 | 5.02 | 4.95 | 4.98 | 4.93 | ||||||||||||||||||||||||
| Total commercial | 5.82 | 5.25 | 4.50 | 3.83 | 3.69 | ||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | 3.41 | 3.33 | 3.23 | 3.09 | 2.99 | ||||||||||||||||||||||||
| Automobile | 3.94 | 3.74 | 3.53 | 3.40 | 3.38 | ||||||||||||||||||||||||
| Home equity | 7.14 | 6.57 | 5.43 | 4.44 | 3.99 | ||||||||||||||||||||||||
| RV and marine | 4.42 | 4.45 | 4.29 | 4.12 | 4.15 | ||||||||||||||||||||||||
| Other consumer | 11.18 | 10.38 | 9.55 | 9.08 | 8.96 | ||||||||||||||||||||||||
| Total consumer | 4.57 | 4.37 | 4.02 | 3.70 | 3.57 | ||||||||||||||||||||||||
Total loans and leases | 5.27 | 4.86 | 4.28 | 3.77 | 3.64 | ||||||||||||||||||||||||
Total earning assets | 4.89 | 4.46 | 3.86 | 3.33 | 3.00 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Demand deposits - interest-bearing | 1.32 | 0.94 | 0.40 | 0.10 | 0.03 | ||||||||||||||||||||||||
| Money market deposits | 1.87 | 0.86 | 0.29 | 0.09 | 0.05 | ||||||||||||||||||||||||
Savings and other domestic deposits | 0.07 | 0.03 | 0.02 | 0.02 | 0.02 | ||||||||||||||||||||||||
Core certificates of deposit (4) | 3.01 | 1.42 | 0.10 | 0.07 | 0.14 | ||||||||||||||||||||||||
Other domestic deposits of $250,000 or more | 2.45 | 1.31 | 0.35 | 0.23 | 0.08 | ||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 4.56 | 3.74 | 2.25 | 0.72 | 0.17 | ||||||||||||||||||||||||
Total interest-bearing deposits | 1.52 | 0.88 | 0.35 | 0.10 | 0.04 | ||||||||||||||||||||||||
Short-term borrowings | 5.56 | 7.71 | 3.31 | 1.40 | 0.57 | ||||||||||||||||||||||||
Long-term debt | 5.52 | 4.66 | 3.40 | 2.16 | 1.83 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 2.02 | 1.31 | 0.64 | 0.25 | 0.18 | ||||||||||||||||||||||||
Net interest rate spread | 2.87 | 3.15 | 3.22 | 3.08 | 2.82 | ||||||||||||||||||||||||
Impact of noninterest-bearing funds on margin | 0.53 | 0.37 | 0.20 | 0.07 | 0.06 | ||||||||||||||||||||||||
Net interest margin | 3.40 | % | 3.52 | % | 3.42 | % | 3.15 | % | 2.88 | % | |||||||||||||||||||
| Commercial Loan Derivative Impact | |||||||||||||||||||||||||||||
| (Unaudited) | Average Rates | ||||||||||||||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||||||||||||||||||
Fully-taxable equivalent basis (1) | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Commercial loans (2)(3) | 6.42 | % | 5.68 | % | 4.62 | % | 3.69 | % | 3.47 | % | |||||||||||||||||||
Impact of commercial loan derivatives | (0.60) | (0.43) | (0.12) | 0.14 | 0.22 | ||||||||||||||||||||||||
Total commercial - as reported | 5.82 | % | 5.25 | % | 4.50 | % | 3.83 | % | 3.69 | % | |||||||||||||||||||
Average 1 Month LIBOR | 4.62 | % | 3.89 | % | 2.46 | % | 1.01 | % | 0.23 | % | |||||||||||||||||||
| Average SOFR | 4.50 | % | 3.61 | % | 2.14 | % | 0.70 | % | 0.09 | % | |||||||||||||||||||
(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 9 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 and leases.
(4)Includes consumer certificates of deposit of $250,000 or more.
8
Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| (dollar amounts in millions, except per share data) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||||||||||||||||||
Interest income | $ | 2,028 | $ | 1,854 | $ | 1,589 | $ | 1,331 | $ | 1,195 | |||||||||||||||||||
Interest expense | 619 | 392 | 185 | 70 | 49 | ||||||||||||||||||||||||
Net interest income | 1,409 | 1,462 | 1,404 | 1,261 | 1,146 | ||||||||||||||||||||||||
| Provision for credit losses | 85 | 91 | 106 | 67 | 25 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 1,324 | 1,371 | 1,298 | 1,194 | 1,121 | ||||||||||||||||||||||||
| Service charges on deposit accounts | 83 | 89 | 93 | 105 | 97 | ||||||||||||||||||||||||
| Card and payment processing income | 93 | 96 | 96 | 96 | 86 | ||||||||||||||||||||||||
| Capital markets fees | 59 | 83 | 73 | 54 | 42 | ||||||||||||||||||||||||
| Trust and investment management services | 62 | 61 | 60 | 63 | 65 | ||||||||||||||||||||||||
| Mortgage banking income | 26 | 25 | 26 | 44 | 49 | ||||||||||||||||||||||||
| Leasing revenue | 26 | 35 | 29 | 27 | 35 | ||||||||||||||||||||||||
| Insurance income | 34 | 31 | 28 | 27 | 31 | ||||||||||||||||||||||||
| Gain on sale of loans | 3 | 2 | 15 | 12 | 28 | ||||||||||||||||||||||||
| Bank owned life insurance income | 16 | 15 | 13 | 11 | 17 | ||||||||||||||||||||||||
| Net gains on sales of securities | 1 | — | — | — | — | ||||||||||||||||||||||||
| Other noninterest income | 109 | 62 | 65 | 46 | 49 | ||||||||||||||||||||||||
Total noninterest income | 512 | 499 | 498 | 485 | 499 | ||||||||||||||||||||||||
| Personnel costs | 649 | 630 | 614 | 577 | 580 | ||||||||||||||||||||||||
| Outside data processing and other services | 151 | 147 | 145 | 153 | 165 | ||||||||||||||||||||||||
| Equipment | 64 | 67 | 60 | 61 | 81 | ||||||||||||||||||||||||
| Net occupancy | 60 | 61 | 63 | 58 | 64 | ||||||||||||||||||||||||
| Marketing | 25 | 22 | 24 | 24 | 21 | ||||||||||||||||||||||||
| Professional services | 16 | 21 | 18 | 19 | 19 | ||||||||||||||||||||||||
| Deposit and other insurance expense | 20 | 14 | 15 | 20 | 18 | ||||||||||||||||||||||||
| Amortization of intangibles | 13 | 13 | 13 | 13 | 14 | ||||||||||||||||||||||||
| Lease financing equipment depreciation | 8 | 9 | 11 | 11 | 14 | ||||||||||||||||||||||||
| Other noninterest expense | 80 | 93 | 90 | 82 | 77 | ||||||||||||||||||||||||
Total noninterest expense | 1,086 | 1,077 | 1,053 | 1,018 | 1,053 | ||||||||||||||||||||||||
| Income before income taxes | 750 | 793 | 743 | 661 | 567 | ||||||||||||||||||||||||
| Provision for income taxes | 144 | 144 | 146 | 120 | 105 | ||||||||||||||||||||||||
| Income after income taxes | 606 | 649 | 597 | 541 | 462 | ||||||||||||||||||||||||
| Income attributable to non-controlling interest | 4 | 4 | 3 | 2 | 2 | ||||||||||||||||||||||||
| Net income attributable to Huntington | 602 | 645 | 594 | 539 | 460 | ||||||||||||||||||||||||
| Dividends on preferred shares | 29 | 28 | 29 | 28 | 28 | ||||||||||||||||||||||||
| Net income applicable to common shares | $ | 573 | $ | 617 | $ | 565 | $ | 511 | $ | 432 | |||||||||||||||||||
Average common shares - basic | 1,443 | 1,443 | 1,443 | 1,441 | 1,438 | ||||||||||||||||||||||||
Average common shares - diluted | 1,469 | 1,468 | 1,465 | 1,463 | 1,464 | ||||||||||||||||||||||||
Per common share | |||||||||||||||||||||||||||||
| Net income - basic | $ | 0.40 | $ | 0.43 | $ | 0.39 | $ | 0.35 | $ | 0.30 | |||||||||||||||||||
| Net income - diluted | 0.39 | 0.42 | 0.39 | 0.35 | 0.29 | ||||||||||||||||||||||||
Cash dividends declared | 0.155 | 0.155 | 0.155 | 0.155 | 0.155 | ||||||||||||||||||||||||
Revenue - fully-taxable equivalent (FTE) | |||||||||||||||||||||||||||||
Net interest income | $ | 1,409 | $ | 1,462 | $ | 1,404 | $ | 1,261 | $ | 1,146 | |||||||||||||||||||
FTE adjustment | 9 | 9 | 8 | 6 | 8 | ||||||||||||||||||||||||
Net interest income (1) | 1,418 | 1,471 | 1,412 | 1,267 | 1,154 | ||||||||||||||||||||||||
Noninterest income | 512 | 499 | 498 | 485 | 499 | ||||||||||||||||||||||||
Total revenue (1) | $ | 1,930 | $ | 1,970 | $ | 1,910 | $ | 1,752 | $ | 1,653 | |||||||||||||||||||
(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
9
Huntington Bancshares Incorporated
Quarterly Mortgage Banking Noninterest Income
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | Percent Changes vs. | |||||||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | 4Q22 | 1Q22 | |||||||||||||||||||||||||||||||||||||
Net origination and secondary marketing income | $ | 16 | $ | 16 | $ | 25 | $ | 27 | $ | 37 | — | % | (57) | % | ||||||||||||||||||||||||||||||
| Net mortgage servicing income | ||||||||||||||||||||||||||||||||||||||||||||
Loan servicing income | 23 | 22 | 22 | 22 | 22 | 5 | 5 | |||||||||||||||||||||||||||||||||||||
| Amortization of capitalized servicing | (10) | (11) | (14) | (16) | (15) | 9 | 33 | |||||||||||||||||||||||||||||||||||||
| Operating income | 13 | 11 | 8 | 6 | 7 | 18 | 86 | |||||||||||||||||||||||||||||||||||||
| MSR valuation adjustment (1) | (12) | 2 | 17 | 44 | 51 | (700) | (124) | |||||||||||||||||||||||||||||||||||||
| Gains (losses) due to MSR hedging | 9 | (4) | (24) | (34) | (47) | 325 | 119 | |||||||||||||||||||||||||||||||||||||
| Net MSR risk management | (3) | (2) | (7) | 10 | 4 | (50) | (175) | |||||||||||||||||||||||||||||||||||||
| Total net mortgage servicing income | $ | 10 | $ | 9 | $ | 1 | $ | 16 | $ | 11 | 11 | % | (9) | % | ||||||||||||||||||||||||||||||
| All other | — | — | — | 1 | 1 | — | (100) | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | $ | 26 | $ | 25 | $ | 26 | $ | 44 | $ | 49 | 4 | % | (47) | % | ||||||||||||||||||||||||||||||
| Mortgage origination volume | $ | 1,412 | $ | 1,719 | $ | 2,491 | $ | 3,366 | $ | 2,881 | (18) | % | (51) | % | ||||||||||||||||||||||||||||||
Mortgage origination volume for sale | 809 | 889 | 1,339 | 1,263 | 1,519 | (9) | (47) | |||||||||||||||||||||||||||||||||||||
| Third party mortgage loans serviced (2) | 32,496 | 32,354 | 31,988 | 31,704 | 31,570 | — | 3 | |||||||||||||||||||||||||||||||||||||
| Mortgage servicing rights (2) | 485 | 494 | 486 | 463 | 416 | (2) | 17 | |||||||||||||||||||||||||||||||||||||
| MSR % of investor servicing portfolio (2) | 1.49 | % | 1.53 | % | 1.52 | % | 1.46 | % | 1.32 | % | (3) | % | 13 | % | ||||||||||||||||||||||||||||||
(1)The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)At period end.
10
Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 2,121 | $ | 2,110 | $ | 2,074 | $ | 2,018 | $ | 2,030 | |||||||||||||||||||
| Loan and lease charge-offs | (99) | (97) | (83) | (52) | (81) | ||||||||||||||||||||||||
| Recoveries of loans and leases previously charged-off | 42 | 47 | 39 | 44 | 62 | ||||||||||||||||||||||||
| Net loan and lease charge-offs | (57) | (50) | (44) | (8) | (19) | ||||||||||||||||||||||||
| Provision (benefit) for loan and lease losses | 78 | 61 | 80 | 64 | 7 | ||||||||||||||||||||||||
Allowance for loan and lease losses, end of period | 2,142 | 2,121 | 2,110 | 2,074 | 2,018 | ||||||||||||||||||||||||
| Allowance for unfunded lending commitments, beginning of period | 150 | 120 | 94 | 91 | 77 | ||||||||||||||||||||||||
| Provision for unfunded lending commitments | 7 | 30 | 26 | 3 | 14 | ||||||||||||||||||||||||
| Allowance for unfunded lending commitments, end of period | 157 | 150 | 120 | 94 | 91 | ||||||||||||||||||||||||
Total allowance for credit losses, end of period | $ | 2,299 | $ | 2,271 | $ | 2,230 | $ | 2,168 | $ | 2,109 | |||||||||||||||||||
Allowance for loan and lease losses (ALLL) as % of: | |||||||||||||||||||||||||||||
| Total loans and leases | 1.77 | % | 1.77 | % | 1.79 | % | 1.78 | % | 1.79 | % | |||||||||||||||||||
Nonaccrual loans and leases (NALs) | 402 | 373 | 351 | 316 | 296 | ||||||||||||||||||||||||
Nonperforming assets (NPAs) | 371 | 357 | 336 | 304 | 285 | ||||||||||||||||||||||||
Total allowance for credit losses (ACL) as % of: | |||||||||||||||||||||||||||||
Total loans and leases | 1.90 | % | 1.90 | % | 1.89 | % | 1.87 | % | 1.87 | % | |||||||||||||||||||
| Nonaccrual loans and leases (NALs) | 431 | 400 | 371 | 330 | 309 | ||||||||||||||||||||||||
| Nonperforming assets (NPAs) | 398 | 382 | 355 | 318 | 298 | ||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
| Allocation of allowance for credit losses | |||||||||||||||||||||||||||||
| Commercial | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 915 | $ | 890 | $ | 860 | $ | 804 | $ | 937 | |||||||||||||||||||
| Commercial real estate | 492 | 482 | 504 | 498 | 521 | ||||||||||||||||||||||||
| Lease financing | 50 | 52 | 50 | 40 | 56 | ||||||||||||||||||||||||
| Total commercial | 1,457 | 1,424 | 1,414 | 1,342 | 1,514 | ||||||||||||||||||||||||
| Consumer | |||||||||||||||||||||||||||||
| Residential mortgage | 176 | 187 | 178 | 177 | 139 | ||||||||||||||||||||||||
| Automobile | 151 | 141 | 118 | 146 | 101 | ||||||||||||||||||||||||
| Home equity | 118 | 105 | 126 | 131 | 60 | ||||||||||||||||||||||||
| RV and marine | 144 | 143 | 127 | 147 | 96 | ||||||||||||||||||||||||
| Other consumer | 96 | 121 | 147 | 131 | 108 | ||||||||||||||||||||||||
| Total consumer | 685 | 697 | 696 | 732 | 504 | ||||||||||||||||||||||||
| Total allowance for loan and lease losses | 2,142 | 2,121 | 2,110 | 2,074 | 2,018 | ||||||||||||||||||||||||
| Allowance for unfunded lending commitments | 157 | 150 | 120 | 94 | 91 | ||||||||||||||||||||||||
| Total allowance for credit losses | $ | 2,299 | $ | 2,271 | $ | 2,230 | $ | 2,168 | $ | 2,109 | |||||||||||||||||||
11
Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
| Net charge-offs (recoveries) by loan and lease type: | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 16 | $ | 9 | $ | 16 | $ | (4) | $ | (23) | |||||||||||||||||||
Commercial real estate | 18 | 7 | (3) | (4) | 8 | ||||||||||||||||||||||||
| Lease financing | (5) | 5 | 2 | (3) | 5 | ||||||||||||||||||||||||
Total commercial | 29 | 21 | 15 | (11) | (10) | ||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | — | — | (1) | (1) | — | ||||||||||||||||||||||||
| Automobile | 5 | 3 | 3 | — | — | ||||||||||||||||||||||||
| Home equity | (1) | — | (2) | (2) | (1) | ||||||||||||||||||||||||
RV and marine | 2 | 2 | 2 | 1 | 3 | ||||||||||||||||||||||||
Other consumer | 22 | 24 | 27 | 21 | 27 | ||||||||||||||||||||||||
Total consumer | 28 | 29 | 29 | 19 | 29 | ||||||||||||||||||||||||
| Total net charge-offs | $ | 57 | $ | 50 | $ | 44 | $ | 8 | $ | 19 | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||||||||||||||||||
| Net charge-offs (recoveries) - annualized percentages: | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | 0.14 | % | 0.08 | % | 0.15 | % | (0.04) | % | (0.22) | % | |||||||||||||||||||
Commercial real estate | 0.42 | 0.17 | (0.06) | (0.11) | 0.22 | ||||||||||||||||||||||||
| Lease financing | (0.37) | 0.40 | 0.17 | (0.24) | 0.40 | ||||||||||||||||||||||||
Total commercial | 0.17 | 0.13 | 0.10 | (0.07) | (0.06) | ||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | 0.01 | (0.01) | (0.02) | (0.02) | — | ||||||||||||||||||||||||
| Automobile | 0.14 | 0.12 | 0.07 | — | 0.01 | ||||||||||||||||||||||||
| Home equity | (0.02) | (0.04) | (0.07) | (0.08) | (0.03) | ||||||||||||||||||||||||
RV and marine | 0.18 | 0.15 | 0.17 | 0.10 | 0.20 | ||||||||||||||||||||||||
Other consumer | 6.37 | 7.08 | 8.09 | 6.60 | 8.46 | ||||||||||||||||||||||||
Total consumer | 0.21 | 0.22 | 0.22 | 0.15 | 0.23 | ||||||||||||||||||||||||
| Net charge-offs as a % of average loans and leases | 0.19 | % | 0.17 | % | 0.15 | % | 0.03 | % | 0.07 | % | |||||||||||||||||||
12
Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (1)
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
(dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Nonaccrual loans and leases (NALs): | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 273 | $ | 288 | $ | 288 | $ | 324 | $ | 323 | |||||||||||||||||||
Commercial real estate | 86 | 92 | 110 | 117 | 114 | ||||||||||||||||||||||||
| Lease financing | 14 | 18 | 30 | 22 | 38 | ||||||||||||||||||||||||
| Residential mortgage | 81 | 90 | 94 | 111 | 117 | ||||||||||||||||||||||||
| Automobile | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||
Home equity | 74 | 76 | 75 | 78 | 84 | ||||||||||||||||||||||||
RV and marine | 1 | 1 | 1 | 1 | 2 | ||||||||||||||||||||||||
Total nonaccrual loans and leases | 533 | 569 | 602 | 657 | 682 | ||||||||||||||||||||||||
Other real estate, net: | |||||||||||||||||||||||||||||
Residential | 20 | 11 | 11 | 11 | 10 | ||||||||||||||||||||||||
Commercial | — | — | — | — | 1 | ||||||||||||||||||||||||
| Total other real estate, net | 20 | 11 | 11 | 11 | 11 | ||||||||||||||||||||||||
| Other NPAs (1) | 25 | 14 | 14 | 14 | 15 | ||||||||||||||||||||||||
Total nonperforming assets | $ | 578 | $ | 594 | $ | 627 | $ | 682 | $ | 708 | |||||||||||||||||||
Nonaccrual loans and leases as a % of total loans and leases | 0.44 | % | 0.48 | % | 0.51 | % | 0.57 | % | 0.60 | % | |||||||||||||||||||
| NPA ratio (2) | 0.48 | 0.50 | 0.53 | 0.59 | 0.63 | ||||||||||||||||||||||||
| (NPA+90days)/(Loan+OREO) (3) | 0.63 | 0.67 | 0.72 | 0.77 | 0.88 | ||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
| Nonperforming assets, beginning of period | $ | 594 | $ | 627 | $ | 682 | $ | 708 | $ | 750 | |||||||||||||||||||
| New nonperforming assets | 237 | 251 | 119 | 181 | 204 | ||||||||||||||||||||||||
| Returns to accruing status | (73) | (84) | (42) | (81) | (57) | ||||||||||||||||||||||||
| Charge-offs | (54) | (54) | (39) | (26) | (32) | ||||||||||||||||||||||||
| Payments | (124) | (144) | (89) | (97) | (155) | ||||||||||||||||||||||||
| Sales | (2) | (2) | (4) | (3) | (2) | ||||||||||||||||||||||||
| Nonperforming assets, end of period | $ | 578 | $ | 594 | $ | 627 | $ | 682 | $ | 708 | |||||||||||||||||||
(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.
13
Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Accruing loans and leases past due 90+ days: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 12 | $ | 23 | $ | 29 | $ | 11 | $ | 10 | |||||||||||||||||||
| Lease financing | 10 | 9 | 18 | 10 | 12 | ||||||||||||||||||||||||
| Residential mortgage (excluding loans guaranteed by the U.S. Government) | 20 | 21 | 17 | 14 | 25 | ||||||||||||||||||||||||
| Automobile | 7 | 9 | 6 | 6 | 6 | ||||||||||||||||||||||||
| Home equity | 18 | 15 | 12 | 13 | 12 | ||||||||||||||||||||||||
| RV and marine | 2 | 3 | 2 | 2 | 1 | ||||||||||||||||||||||||
Other consumer | 2 | 2 | 3 | 2 | 2 | ||||||||||||||||||||||||
Total, excl. loans guaranteed by the U.S. Government | 71 | 82 | 87 | 58 | 68 | ||||||||||||||||||||||||
Add: loans guaranteed by U.S. Government | 114 | 125 | 136 | 154 | 212 | ||||||||||||||||||||||||
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government | $ | 185 | $ | 207 | $ | 223 | $ | 212 | $ | 280 | |||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.06 | % | 0.07 | % | 0.07 | % | 0.05 | % | 0.06 | % | |||||||||||||||||||
Guaranteed by U.S. Government, as a percent of total loans and leases | 0.09 | 0.10 | 0.12 | 0.13 | 0.19 | ||||||||||||||||||||||||
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.15 | 0.17 | 0.19 | 0.18 | 0.25 | ||||||||||||||||||||||||
14
Huntington Bancshares Incorporated
Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Common equity tier 1 risk-based capital ratio: (1) | |||||||||||||||||||||||||||||
| Total Huntington shareholders’ equity | $ | 18,758 | $ | 17,731 | $ | 17,136 | $ | 17,950 | $ | 18,452 | |||||||||||||||||||
Regulatory capital adjustments: | |||||||||||||||||||||||||||||
| CECL transitional amount (2) | 219 | 328 | 328 | 328 | 328 | ||||||||||||||||||||||||
| Shareholders’ preferred equity and related surplus | (2,494) | (2,177) | (2,177) | (2,177) | (2,177) | ||||||||||||||||||||||||
| Accumulated other comprehensive loss | 2,755 | 3,098 | 3,276 | 2,098 | 1,314 | ||||||||||||||||||||||||
| Goodwill and other intangibles, net of taxes | (5,636) | (5,663) | (5,675) | (5,686) | (5,474) | ||||||||||||||||||||||||
| Deferred tax assets from tax loss and credit carryforwards | (14) | (27) | (29) | (36) | (46) | ||||||||||||||||||||||||
Common equity tier 1 capital | 13,588 | 13,290 | 12,859 | 12,477 | 12,397 | ||||||||||||||||||||||||
Additional tier 1 capital | |||||||||||||||||||||||||||||
| Shareholders’ preferred equity and related surplus | 2,494 | 2,177 | 2,177 | 2,177 | 2,177 | ||||||||||||||||||||||||
Tier 1 capital | 16,082 | 15,467 | 15,036 | 14,654 | 14,574 | ||||||||||||||||||||||||
Long-term debt and other tier 2 qualifying instruments | 1,395 | 1,424 | 1,441 | 1,462 | 1,464 | ||||||||||||||||||||||||
Qualifying allowance for loan and lease losses | 1,779 | 1,682 | 1,637 | 1,541 | 1,485 | ||||||||||||||||||||||||
Tier 2 capital | 3,174 | 3,106 | 3,078 | 3,003 | 2,949 | ||||||||||||||||||||||||
Total risk-based capital | $ | 19,256 | $ | 18,573 | $ | 18,114 | $ | 17,657 | $ | 17,523 | |||||||||||||||||||
| Risk-weighted assets (RWA)(1) | $ | 142,335 | $ | 141,940 | $ | 138,759 | $ | 137,841 | $ | 134,484 | |||||||||||||||||||
Common equity tier 1 risk-based capital ratio (1) | 9.55 | % | 9.36 | % | 9.27 | % | 9.05 | % | 9.22 | % | |||||||||||||||||||
Other regulatory capital data: | |||||||||||||||||||||||||||||
Tier 1 leverage ratio (1) | 8.79 | 8.60 | 8.51 | 8.46 | 8.43 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio (1) | 11.30 | 10.90 | 10.84 | 10.63 | 10.84 | ||||||||||||||||||||||||
Total risk-based capital ratio (1) | 13.53 | 13.09 | 13.05 | 12.81 | 13.03 | ||||||||||||||||||||||||
Non-regulatory capital data: | |||||||||||||||||||||||||||||
Tangible common equity / RWA ratio (1) | 7.43 | 6.93 | 6.66 | 7.28 | 8.00 | ||||||||||||||||||||||||
(1)March 31, 2023, figures are estimated.
(2)Upon adoption in 2020, Huntington elected to temporarily delay certain effects of CECL on regulatory capital, utilizing a two-year delay followed by a three-year transition period. January 1, 2022 began the three-year transition period, whereby 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL will be recognized over the three-year transition period. As of March 31, 2023, 50% of the cumulative CECL deferral has been phased in. As of March 31, 2022, June 30, 2022, September 30, 2022, and December 31, 2022 25% of the cumulative CECL deferral has been phased in.
15
Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data
(Unaudited)
Quarterly common stock summary
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.155 | $ | 0.155 | $ | 0.155 | $ | 0.155 | $ | 0.155 | |||||||||||||||||||
| Common shares outstanding (in millions) | |||||||||||||||||||||||||||||
Average - basic | 1,443 | 1,443 | 1,443 | 1,441 | 1,438 | ||||||||||||||||||||||||
Average - diluted | 1,469 | 1,468 | 1,465 | 1,463 | 1,464 | ||||||||||||||||||||||||
Ending | 1,444 | 1,443 | 1,443 | 1,442 | 1,439 | ||||||||||||||||||||||||
Tangible book value per common share (1) | $ | 7.32 | $ | 6.82 | $ | 6.40 | $ | 6.96 | $ | 7.47 | |||||||||||||||||||
Non-regulatory capital
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||
Calculation of tangible equity / asset ratio: | |||||||||||||||||||||||||||||
| Total Huntington shareholders’ equity | $ | 18,758 | $ | 17,731 | $ | 17,136 | $ | 17,950 | $ | 18,452 | |||||||||||||||||||
| Goodwill and other intangible assets | (5,741) | (5,766) | (5,775) | (5,788) | (5,577) | ||||||||||||||||||||||||
| Deferred tax liability on other intangible assets (1) | 38 | 41 | 43 | 46 | 48 | ||||||||||||||||||||||||
Total tangible equity | 13,055 | 12,006 | 11,404 | 12,208 | 12,923 | ||||||||||||||||||||||||
| Preferred equity | (2,484) | (2,167) | (2,167) | (2,167) | (2,167) | ||||||||||||||||||||||||
Total tangible common equity | $ | 10,571 | $ | 9,839 | $ | 9,237 | $ | 10,041 | $ | 10,756 | |||||||||||||||||||
Total assets | $ | 189,070 | $ | 182,906 | $ | 179,402 | $ | 178,782 | $ | 176,856 | |||||||||||||||||||
| Goodwill and other intangible assets | (5,741) | (5,766) | (5,775) | (5,788) | (5,577) | ||||||||||||||||||||||||
| Deferred tax liability on other intangible assets (1) | 38 | 41 | 43 | 46 | 48 | ||||||||||||||||||||||||
Total tangible assets | $ | 183,367 | $ | 177,181 | $ | 173,670 | $ | 173,040 | $ | 171,327 | |||||||||||||||||||
Tangible equity / tangible asset ratio | 7.12 | % | 6.78 | % | 6.57 | % | 7.06 | % | 7.54 | % | |||||||||||||||||||
Tangible common equity / tangible asset ratio | 5.77 | 5.55 | 5.32 | 5.80 | 6.28 | ||||||||||||||||||||||||
Other data: | |||||||||||||||||||||||||||||
Number of employees (Average full-time equivalent) | 20,198 | 20,007 | 19,997 | 19,866 | 19,722 | ||||||||||||||||||||||||
Number of domestic full-service branches (2) | 1,001 | 1,032 | 1,032 | 1,032 | 1,030 | ||||||||||||||||||||||||
ATM Count | 1,668 | 1,695 | 1,715 | 1,731 | 1,729 | ||||||||||||||||||||||||
(1)Deferred tax liability related to other intangible assets is calculated at a 21% tax rate.
(2)Includes Regional Banking and The Huntington Private Client Group offices.
16
Huntington Bancshares Incorporated
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Huntington believes certain non-GAAP financial measures to be helpful in understanding Huntington’s results of operations. The following tables provide the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure.
| Three months ended | Percent Changes vs. | |||||||||||||||||||||||||||||||
| ($ in millions) | March 31, 2023 | December 31, 2022 | March 31, 2022 | 4Q22 | 1Q22 | |||||||||||||||||||||||||||
| Pre-Provision Net Revenue (PPNR) | ||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | $ | 1,921 | $ | 1,961 | $ | 1,645 | ||||||||||||||||||||||||||
| FTE adjustment | 9 | 9 | 8 | |||||||||||||||||||||||||||||
| Total revenue (FTE) (a) | 1,930 | 1,970 | 1,653 | |||||||||||||||||||||||||||||
| Less: net gain/(loss) on securities | 1 | — | — | |||||||||||||||||||||||||||||
| Less: Notable items | 57 | — | — | |||||||||||||||||||||||||||||
| Total revenue (FTE), excluding net gain/(loss) on securities and notable items (b) | 1,872 | 1,970 | 1,653 | |||||||||||||||||||||||||||||
| Noninterest expense (GAAP) (c) | 1,086 | 1,077 | 1,053 | |||||||||||||||||||||||||||||
| Less: Notable items | 42 | 15 | 46 | |||||||||||||||||||||||||||||
| Noninterest expense, excluding notable items (d) | 1,044 | 1,062 | 1,007 | |||||||||||||||||||||||||||||
| PPNR (a-c) | 844 | 893 | 600 | (5) | % | 41 | % | |||||||||||||||||||||||||
| PPNR, adjusted (b-d) | 828 | 908 | 646 | (9) | % | 28 | % | |||||||||||||||||||||||||
17