Document
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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) July 23, 2020
 ______________________________________________________________________________________________________________________________
huntingtonlogo.jpg
Huntington Bancshares Incorporated
(Exact name of registrant as specified in its charter)
 _______________________________________________________________________________________________________________________________
Maryland
1-34073
31-0724920
(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
Common Stock—Par Value $0.01 per Share
HBAN
NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 5.875% Series C Non-Cumulative, perpetual preferred stock)
HBANN
NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 6.250% Series D Non-Cumulative, perpetual preferred stock)
HBANO
NASDAQ
 
 
 
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 July 23, 2020, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended June 30, 2020. Also on July 23, 2020, 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 July 23, 2020, at 9:00 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 13704964. 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 July 31, 2020 at (877) 660-6853 or (201) 612-7415 conference ID 13704964.
The information contained or incorporated by reference in this Current Report on Form 8-K contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. 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.
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; the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; movements in interest rates; reform of 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 our future results. Additional factors that could cause results to differ materially from those described above can be found in our 2019 Annual Report on Form 10-K, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, as well as our subsequent Securities and Exchange Commission ("SEC") filings, which are on file with the SEC and available in the “Investor Relations” section of our website, http://www.huntington.com, under the heading “Publications and Filings.”
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We do 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 July 23, 2020.
Exhibit 99.2 – Quarterly Financial Supplement, June 2020.




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:
July 23, 2020
 
By:
 
/s/ Zachary Wasserman
 
 
 
 
 
 
 
 
 
Zachary Wasserman
 
 
 
 
 
Chief Financial Officer





Exhibit 99.1
 
huntingtonlogo.jpg

FOR IMMEDIATE RELEASE            
July 23, 2020
Analysts: Mark Muth ([email protected]), 614.480.4720
Media: Matt Samson ([email protected]), 312.263.0203

HUNTINGTON BANCSHARES INCORPORATED REPORTS 2020 SECOND QUARTER EARNINGS
Results Driven by Record Mortgage Banking Income (182% Year-Over-Year Increase)
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN; www.huntington.com) reported net income for the 2020 second quarter of $150 million, a decrease of 59% from the year-ago quarter. Earnings per common share for the 2020 second quarter were $0.13, down 61% from the year-ago quarter. Tangible book value per common share as of 2020 second quarter-end was $8.32, a 4% year-over-year increase. Return on average assets was 0.51%, return on average common equity was 5.0%, and return on average tangible common equity was 6.7%. Results were impacted by elevated credit provisioning related to the ongoing uncertain economic outlook.

CEO Commentary:
“Our second quarter results reflect strong execution across the bank in a very challenging operating environment, including our extraordinary efforts to help our customers through the economic challenges associated with the pandemic,” said Steve Steinour, chairman, president, and CEO. “To aid small- and medium-sized businesses across our footprint, we funded more than 37,000 loans with a total volume of more than $6 billion through the SBA’s Paycheck Protection Program (PPP), and we continue to originate more PPP loans. Many of our customers benefited from a variety of actions we instituted, including fee waivers and payment relief programs. These actions are consistent with our purpose of looking out for people. Huntington is well-positioned to support our customers through these current challenges and to help the economic recovery in the communities we serve.”
“I am pleased we maintained total revenues essentially level with the year-ago quarter. Total noninterest income increased 5% as a result of record mortgage banking activity, though waivers to assist our customers pressured certain of our noninterest income lines. We continue to balance investments in technology and strategic business initiatives with prudent expense management given the headwinds posed by the interest rate environment and the effects of the pandemic on credit costs. We are taking action to manage expenses this year and position ourselves to make further investments in technology and other strategic initiatives, which will drive future performance.”
“We saw strong balance sheet growth in the second quarter,” said Steinour. “Average loan growth of 7% was driven by the PPP loans. The funds provided from these loans and inflows from government stimulus programs were key drivers of average core deposit growth of 13%. While line utilization has largely returned to pre-pandemic levels at this point, the related core deposits have largely remained with the bank, resulting in an elevated amount of deposits at quarter-end. Recently, as the economic outlook stabilized, our loan pipelines also experienced a modest upturn, providing reason for optimism regarding loan growth late this year and next.”


1


“In June we received the results of the Federal Reserve’s Comprehensive Capital Assessment and Review, and once again Huntington’s credit results were among the best of the regional banks. Our projected cumulative loan losses in the Fed’s independently-modeled, severely adverse scenario were tied for lowest in the peer group, and our projected capital ratios remained well in excess of regulatory requirements. Our consistently strong performance demonstrates our disciplined enterprise risk management and solid core earnings power.”
“Yesterday, the Board declared the third quarter cash dividend of $0.15 per common share, unchanged from the prior quarter. Based on what we know today, management expects to maintain the current quarterly dividend rate in the fourth quarter, subject to the Board's normal quarterly approval process.”

2020 Second Quarter Highlights compared with 2019 Second Quarter:
•
Fully-taxable equivalent total revenue decreased $5 million, or less than 1%.
•
Fully-taxable equivalent net interest income decreased $22 million, or 3%.
•
Net interest margin decreased 37 basis points to 2.94%.
•
Noninterest income increased $17 million, or 5%, driven by a $62 million, or 182%, increase in mortgage banking income.
•
Noninterest expense decreased $25 million, or 4%.
•
Efficiency ratio of 55.9%, down from 57.6%.
•
Average loans and leases increased $5.3 billion, or 7%, including a $4.8 billion, or 13%, increase in average commercial loans, $4.1 billion of which represented PPP loans, and a $0.4 billion, or 1%, increase in average consumer loans.
•
Average core deposits increased $10.2 billion, or 13%, including a $10.1 billion, or 26%, increase in average demand deposits.
•
Net charge-offs equated to 0.54% of average loans and leases, up from 0.25%.
•
Nonperforming asset ratio of 0.89%, up from 0.61%.
•
Provision for credit losses increased $268 million year-over-year to $327 million.
•
Allowance for loan and lease losses (ALLL) increased $928 million to $1.7 billion, or 2.12% of total loans and leases; allowance for credit losses (ACL) increased to $1.8 billion, or 2.27% of total loans and leases.
•
Common Equity Tier 1 (CET1) risk-based capital ratio of 9.84%, down from 9.88% and consistent with our 9% to 10% operating guideline.
•
Tangible common equity (TCE) ratio of 7.28%, down from 7.80%.
•
Tangible book value per common share increased $0.35, or 4%, to $8.32.



2


Table 1 – Earnings Performance Summary
 
2020
 
2019
(in millions, except per share data)
Second
 
First
 
Fourth
 
Third
 
Second
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
Net Income
$
150

 
$
48

 
$
317

 
$
372

 
$
364

Diluted earnings per common share
0.13

 
0.03

 
0.28

 
0.34

 
0.33

 
 
 
 
 
 
 
 
 
 
Return on average assets
0.51
%
 
0.17
%
 
1.15
%
 
1.37
%
 
1.36
%
Return on average common equity
5.0

 
1.1

 
11.1

 
13.4

 
13.5

Return on average tangible common equity
6.7

 
1.8

 
14.3

 
17.3

 
17.7

Net interest margin
2.94

 
3.14

 
3.12

 
3.20

 
3.31

Efficiency ratio
55.9

 
55.4

 
58.4

 
54.7

 
57.6

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
8.32

 
$
8.28

 
$
8.25

 
$
8.25

 
$
7.97

Cash dividends declared per common share
0.15

 
0.15

 
0.15

 
0.15

 
0.14

Average diluted shares outstanding
1,029

 
1,035

 
1,047

 
1,051

 
1,060

 
 
 
 
 
 
 
 
 
 
Average earning assets
$
109,038

 
$
101,783

 
$
100,062

 
$
99,692

 
$
99,188

Average loans and leases
80,199

 
75,696

 
75,103

 
75,096

 
74,932

Average core deposits
88,878

 
79,528

 
79,690

 
79,335

 
78,723

 
 
 
 
 
 
 
 
 
 
Tangible common equity / tangible assets ratio
7.28
%
 
7.52
%
 
7.88
%
 
8.00
%
 
7.80
%
Common equity Tier 1 risk-based capital ratio
9.84

 
9.47

 
9.88

 
10.02

 
9.88

 
 
 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.54
%
 
0.62
%
 
0.39
%
 
0.39
%
 
0.25
%
NAL ratio
0.81

 
0.72

 
0.62

 
0.58

 
0.57

ACL as a % of total loans and leases
2.27

 
2.05

 
1.18

 
1.18

 
1.17






3


Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 2 – Net Interest Income and Net Interest Margin Performance Summary – Year-over-Year Net Interest Margin Compression Outpaced Increase in Average Earning Assets
 
2020
 
2019
 
 
 
 
($ in millions)
Second
 
First
 
Fourth
 
Third
 
Second
 
Change (%)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
LQ
 
YOY
Net interest income
$
792

 
$
790

 
$
780

 
$
799

 
$
812

 
0
 %
 
(2
)%
FTE adjustment
5

 
6

 
6

 
6

 
7

 
(17
)
 
(29
)
Net interest income - FTE
797

 
796

 
786

 
805

 
819

 
0

 
(3
)
Noninterest income
391

 
361

 
372

 
389

 
374

 
8

 
5

Total revenue - FTE
$
1,188

 
$
1,157

 
$
1,158

 
$
1,194

 
$
1,193

 
3
 %
 
0
 %
 
 
 
 
 
 
 
 
 
 
 
Change (bp)
Yield / Cost
 
 
 
 
 
 
 
 
 
 
LQ
 
YOY
Total earning assets
3.35
%
 
3.88
%
 
4.03
%
 
4.21
%
 
4.35
%
 
(53
)
 
(100
)
Total loans and leases
3.75

 
4.29

 
4.47

 
4.67

 
4.80

 
(54
)
 
(105
)
Total securities
2.35

 
2.64

 
2.68

 
2.74

 
2.79

 
(29
)
 
(44
)
Total interest-bearing liabilities
0.57

 
0.98

 
1.24

 
1.36

 
1.39

 
(41
)
 
(82
)
Total interest-bearing deposits
0.28

 
0.68

 
0.87

 
0.98

 
0.97

 
(40
)
 
(69
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest rate spread
2.78

 
2.90

 
2.79

 
2.85

 
2.96

 
(12
)
 
(18
)
Impact of noninterest-bearing funds on margin
0.16

 
0.24

 
0.33

 
0.35

 
0.35

 
(8
)
 
(19
)
Net interest margin
2.94
%
 
3.14
%
 
3.12
%
 
3.20
%
 
3.31
%
 
(20
)
 
(37
)
See Pages 7-9 of Quarterly Financial Supplement for additional detail.

Fully-taxable equivalent (FTE) net interest income for the 2020 second quarter decreased $22 million, or 3%, from the 2019 second quarter. This reflected a 37 basis point decrease in the FTE net interest margin (NIM) to 2.94%, partially offset by the benefit from a $9.9 billion, or 10%, increase in average earning assets. The NIM compression reflected a 100 basis point year-over-year decrease in average earning asset yields and a 19 basis point decrease in the benefit from noninterest-bearing funds, partially offset by an 82 basis point decrease in average interest-bearing liability costs. The decrease in earning asset yields was primarily driven by the impact of lower interest rates on commercial and home equity loan yields and securities yields, pandemic-related late fee waivers, and elevated deposits at the Federal Reserve Bank. The decrease in average interest-bearing liability costs primarily reflected lower interest-bearing deposit costs (down 69 basis points) and lower long-term debt costs (down 133 basis points), both due to the impact of lower interest rates.
Compared to the 2020 first quarter, FTE net interest income increased $1 million, or less than 1%, reflecting a 7% increase in average earning assets partially offset by NIM compression of 20 basis points. The NIM compression reflected a 53 basis point decrease in average earning asset yields and an 8 basis point decrease in the benefit from noninterest-bearing funds, partially offset by a 41 basis point decrease in average interest-bearing liability costs. The decrease in earning asset yields was primarily driven by the impact of lower interest rates on commercial and home equity loan yields as well as elevated deposits at the Federal Reserve Bank. The decrease in average interest-bearing liability costs primarily reflects lower interest-bearing deposit costs (down 40 basis points) and lower short-term borrowings costs (down 99 basis points), both due to the impact of lower interest rates. The NIM in the 2020 second quarter was negatively impacted by approximately 3 basis points of derivative ineffectiveness compared to a benefit of approximately 4 basis points in the 2020 first quarter.


4


Table 3 – Average Earning Assets – Commercial & Industrial Loans and Elevated Deposits at the Federal Reserve Bank Drive Year-Over-Year Earning Asset Growth
 
2020
 
2019
 
 
 
 
($ in billions)
Second
 
First
 
Fourth
 
Third
 
Second
 
Change (%)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
LQ
 
YOY
Commercial and industrial
$
35.3

 
$
30.8

 
$
30.4

 
$
30.6

 
$
30.6

 
14
 %
 
15
 %
Commercial real estate
7.1

 
6.7

 
6.8

 
6.9

 
6.9

 
5

 
3

Total commercial
42.4

 
37.6

 
37.2

 
37.6

 
37.5

 
13

 
13

Automobile
12.7

 
12.9

 
12.6

 
12.2

 
12.2

 
(2
)
 
4

Home equity
8.9

 
9.0

 
9.2

 
9.4

 
9.5

 
(1
)
 
(6
)
Residential mortgage
11.5

 
11.4

 
11.3

 
11.2

 
11.0

 
1

 
4

RV and marine
3.7

 
3.6

 
3.6

 
3.5

 
3.4

 
3

 
9

Other consumer
1.1

 
1.2

 
1.2

 
1.3

 
1.3

 
(9
)
 
(14
)
Total consumer
37.8

 
38.1

 
37.9

 
37.5

 
37.4

 
(1
)
 
1

Total loans and leases
80.2

 
75.7

 
75.1

 
75.1

 
74.9

 
6

 
7

Total securities
24.2

 
24.4

 
23.2

 
23.1

 
22.9

 
(1
)
 
6

Held-for-sale and other earning assets
4.6

 
1.7

 
1.8

 
1.5

 
1.4

 
173

 
233

Total earning assets
$
109.0

 
$
101.8

 
$
100.1

 
$
99.7

 
$
99.2

 
7
 %
 
10
 %
See Page 7 of Quarterly Financial Supplement for additional detail.

Average earning assets for the 2020 second quarter increased $9.9 billion, or 10%, from the year-ago quarter, primarily reflecting a $5.3 billion, or 7%, increase in average total loans and leases, a $2.9 billion, or 559%, increase in interest-bearing deposits at the Federal Reserve Bank, and a $1.3 billion, or 6%, increase in average total securities. Average commercial & industrial (C&I) loans increased $4.6 billion, or 15%, primarily reflecting the $4.1 billion of average PPP loans. Average automobile loans increased $0.5 billion, or 4%, driven by strong production over the past year. Average residential mortgage loans increased $0.5 billion, or 4%, reflecting robust portfolio mortgage production over the past year. The increase in average total securities primarily reflected portfolio growth and the mark-to-market of the available-for-sale portfolio. Partially offsetting these increases, average home equity loans and lines of credit decreased $0.6 billion, or 6%, reflecting a shift in consumer preferences.
Compared to the 2020 first quarter, average earning assets increased $7.3 billion, or 7%, primarily reflecting a $4.5 billion, or 6%, increase in average total loans and leases and a $2.7 billion, or 402%, increase in interest-bearing deposits at the Federal Reserve Bank. Average commercial and industrial (C&I) loans increased $4.4 billion, or 14%, primarily reflecting the $4.1 billion of average PPP loans.
On June 14, 2019, Huntington completed the sale of the Wisconsin retail branches, which included $117 million of loans held-for-sale.




5


Table 4 – Average Liabilities – Demand Deposits Drive Robust Year-over-Year Growth in Core Deposits
 
2020
 
2019
 
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
Change (%)
($ in billions)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
LQ
 
YOY
Demand deposits - noninterest-bearing
$
25.7

 
$
20.1

 
$
20.6

 
$
19.9

 
$
19.8

 
28
 %
 
30
 %
Demand deposits - interest-bearing
23.9

 
21.2

 
20.1

 
19.8

 
19.7

 
13

 
21

Total demand deposits
49.6

 
41.3

 
40.7

 
39.7

 
39.5

 
20

 
26

Money market deposits
25.7

 
24.7

 
24.6

 
24.3

 
23.3

 
4

 
10

Savings and other domestic deposits
10.6

 
9.6

 
9.6

 
9.7

 
10.1

 
10

 
5

Core certificates of deposit
3.0

 
3.9

 
4.8

 
5.7

 
5.9

 
(24
)
 
(49
)
Total core deposits
88.9

 
79.5

 
79.7

 
79.3

 
78.7

 
12

 
13

Other domestic deposits of $250,000 or more
0.2

 
0.3

 
0.3

 
0.3

 
0.3

 
(28
)
 
(26
)
Brokered deposits and negotiable CDs
4.1

 
2.9

 
2.6

 
2.6

 
2.7

 
43

 
53

Total deposits
$
93.2

 
$
82.7

 
$
82.6

 
$
82.2

 
$
81.7

 
13
 %
 
14
 %

 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
0.8

 
$
3.4

 
$
2.0

 
$
2.3

 
$
3.2

 
(76
)%
 
(74
)%
Long-term debt
9.8

 
10.1

 
9.9

 
9.5

 
8.9

 
(3
)
 
10

Total debt
$
10.6

 
$
13.5

 
$
11.9

 
$
11.8

 
$
12.1

 
(21
)%
 
(12
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
$
78.2

 
$
76.1

 
$
73.8

 
$
74.2

 
$
74.0

 
3
 %
 
6
 %
See Page 7 of Quarterly Financial Supplement for additional detail.

Average total interest-bearing liabilities for the 2020 second quarter increased $4.2 billion, or 6%, from the year-ago quarter. Average total deposits increased $11.5 billion, or 14%, while average total core deposits increased $10.2 billion, or 13%. The increase in average total core deposits was primarily driven by commercial growth related to the PPP loans and commercial line draws, consumer growth related to government stimulus, and reduced account attrition. Specifically within core deposits, average total demand deposits increased $10.1 billion, or 26%, average money market deposits increased $2.4 billion, or 10%, and average savings and other domestic deposits increased $0.5 billion, or 5%. Partially offsetting these increases, average core certificates of deposit (CDs) decreased $2.9 billion, or 49%, reflecting the maturity of balances related to the 2018 consumer deposit growth initiatives. Average brokered deposits and negotiable CDs increased $1.4 billion, or 53%, reflecting balance growth in new and existing brokered deposit accounts. Average total debt decreased $1.5 billion, or 12%, reflecting the repayment of short-term borrowings due to the strong core deposit growth.
Compared to the 2020 first quarter, average total interest-bearing liabilities increased $2.1 billion, or 3%. Average total deposits increased $10.5 billion, or 13%, while average total core deposits increased $9.4 billion, or 12%. The increase in average total core deposits was primarily driven by commercial growth related to the PPP loans and commercial line draws, consumer growth related to government stimulus, and reduced account attrition. Specifically within core deposits, average total demand deposits increased $8.3 billion, or 20%, average money market deposits increased $1.0 billion, or 4%, and average savings and other domestic deposits increased $1.0 billion, or 10%. Partially offsetting these increases, average core CDs decreased $0.9 billion, or 24%, reflecting the maturity of balances related to the 2018 consumer deposit growth initiatives. Average brokered deposits and negotiable CDs increased $1.2 billion, or 43%, reflecting balance growth in new and existing brokered deposit accounts. Average total debt decreased $2.8 billion, or 21%, as short-term borrowings were repaid as a result of the strong core deposit inflows.
On June 14, 2019, Huntington completed the sale of the Wisconsin retail branches, which included $725 million of deposits.



6


Noninterest Income
Table 5 – Noninterest Income – Record Mortgage Banking Income Drives Growth in Noninterest Income
 
2020
 
2019
 
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
Change (%)
($ in millions)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
LQ
 
YOY
Service charges on deposit accounts
$
60

 
$
87

 
$
95

 
$
98

 
$
92

 
(31
)%
 
(35
)%
Card and payment processing income
59

 
58

 
64

 
64

 
63

 
2

 
(6
)
Mortgage banking income
96

 
58

 
58

 
54

 
34

 
66

 
182

Trust and investment management services
45

 
47

 
47

 
44

 
43

 
(4
)
 
5

Insurance income
25

 
23

 
24

 
20

 
23

 
9

 
9

Capital markets fees
31

 
33

 
31

 
36

 
34

 
(6
)
 
(9
)
Bank owned life insurance income
17

 
16

 
17

 
18

 
15

 
6

 
13

Gain on sale of loans and leases
8

 
8

 
16

 
13

 
13

 
0

 
(38
)
Net (losses) gains on sales of securities
(1
)
 
0

 
(22
)
 
0

 
(2
)
 
NM

 
NM

Other noninterest income
51

 
31

 
42

 
42

 
59

 
65

 
(14
)
Total noninterest income
$
391

 
$
361

 
$
372

 
$
389

 
$
374

 
8
 %
 
5
 %
See Pages 10-11 of Quarterly Financial Supplement for additional detail.

Total noninterest income for the 2020 second quarter increased $17 million, or 5%, from the year-ago quarter. Mortgage banking income increased $62 million, or 182%, primarily reflecting higher secondary marketing spreads and a 105% increase in salable mortgage originations. Partially offsetting this increase, service charges on deposit accounts decreased $32 million, or 35%, primarily reflecting reduced customer activity and pandemic-related fee waivers. Other noninterest income decreased $8 million, or 14%, primarily as a result of several notable items impacting each quarter. The 2019 second quarter included a $15 million gain on the sale of the Wisconsin retail branches, a $5 million mark-to-market adjustment on economic hedges, and $2 million of mezzanine gains. Partially offsetting these items, the 2020 second quarter included a $13 million gain on the annuitization of a retiree health plan, a $5 million gain on the sale of the retirement plan services recordkeeping business, and $3 million of mezzanine losses. Gain on sale of loans and leases decreased $5 million, or 38%, primarily due to lower SBA loan sales.
Compared to the 2020 first quarter, total noninterest income increased $30 million, or 8%. Mortgage banking income increased $38 million, or 66%, primarily reflecting a 72% increase in salable mortgage originations and higher secondary marketing spreads. Other noninterest income increased $20 million, or 65%, primarily reflecting a $13 million gain on the annuitization of a retiree health plan, a $5 million gain on the sale of the retirement plan services recordkeeping business, and a $3 million increase in income on terminated leases, which was offset by $3 million of mezzanine losses. Partially offsetting these increases, service charges on deposit accounts decreased $27 million, or 31%, primarily reflecting reduced customer activity and pandemic-related fee waivers.



7


Noninterest Expense
Table 6 – Noninterest Expense – Continued Focus on Disciplined Expense Management While Investing in Technology and Other Strategic Business Initiatives
 
2020
 
2019
 
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
Change (%)
($ in millions)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
LQ
 
YOY
Personnel costs
$
418

 
$
395

 
$
426

 
$
406

 
$
428

 
6
 %
 
(2
)%
Outside data processing and other services
90

 
85

 
89

 
87

 
89

 
6

 
1

Equipment
46

 
41

 
42

 
41

 
40

 
12

 
15

Net occupancy
39

 
40

 
41

 
38

 
38

 
(3
)
 
3

Professional services
11

 
11

 
14

 
16

 
12

 
0

 
(8
)
Amortization of intangibles
10

 
11

 
12

 
12

 
12

 
(9
)
 
(17
)
Marketing
5

 
9

 
9

 
10

 
11

 
(44
)
 
(55
)
Deposit and other insurance expense
9

 
9

 
10

 
8

 
8

 
0

 
13

Other noninterest expense
47

 
51

 
58

 
49

 
62

 
(8
)
 
(24
)
Total noninterest expense
$
675

 
$
652

 
$
701

 
$
667

 
$
700

 
4
 %
 
(4
)%
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Average full-time equivalent employees
15.7

 
15.4

 
15.5

 
15.7

 
15.8

 
2
 %
 
(1
)%
See Page 10 of Quarterly Financial Supplement for additional detail.

Total noninterest expense for the 2020 second quarter decreased $25 million, or 4%, from the year-ago quarter. Other noninterest expense decreased $15 million, or 24%, primarily as a result of lower travel and business development expense as well as a $5 million donation to the Columbus Foundation in the year-ago quarter. Personnel costs decreased $10 million, or 2%, primarily reflecting reduced benefits expense and lower equity compensation expense. Marketing expense decreased $6 million, or 55%, related to the timing of marketing campaigns in light of the pandemic. Partially offsetting these decreases, equipment expense increased $6 million, or 15%, primarily reflecting the impact of increased technology costs.
Total noninterest expense increased $23 million, or 4%, from the 2020 first quarter. Personnel costs increased $23 million, or 6%, primarily reflecting increased incentive compensation, particularly in mortgage, and the timing of equity compensation expense in the second quarter. Outside data processing and other services increased $5 million, or 6%, and equipment expense increased $5 million, or 12%, both primarily reflecting the impact of increased technology costs.



8


Table 7 – Credit Quality Metrics – Further Deterioration in Economic Outlook Drives Increase in Allowance
 
2020
 
2019
($ in millions)
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
Total nonaccrual loans and leases
$
648

 
$
558

 
$
468

 
$
438

 
$
425

Total other real estate
7

 
10

 
11

 
12

 
14

Other NPAs (1)
58

 
18

 
19

 
32

 
21

Total nonperforming assets
713

 
586

 
498

 
482

 
460

Accruing loans and leases past due 90+ days
194

 
167

 
171

 
163

 
152

NPAs + accruing loans & leases past due 90+ days
$
907

 
$
753

 
$
669

 
$
645

 
$
612

NAL ratio (2)
0.81
%
 
0.72
%
 
0.62
%
 
0.58
%
 
0.57
%
NPA ratio (3)
0.89

 
0.75

 
0.66

 
0.64

 
0.61

(NPAs+90 days)/(Loans+OREO)
1.13

 
0.96

 
0.89

 
0.86

 
0.82

Provision for credit losses
$
327

 
$
441

 
$
79

 
$
82

 
$
59

Net charge-offs
107

 
117

 
73

 
73

 
48

Net charge-offs / Average total loans
0.54
%
 
0.62
%
 
0.39
%
 
0.39
%
 
0.25
%
Allowance for loans and lease losses (ALLL)
$
1,702

 
$
1,504

 
$
783

 
$
780

 
$
774

Allowance for unfunded loan commitments and letters of credit
119

 
99

 
104

 
101

 
101

Allowance for credit losses (ACL)
$
1,821

 
$
1,603

 
$
887

 
$
881

 
$
875

ALLL as a % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
2.12
%
 
1.93
%
 
1.04
%
 
1.04
%
 
1.03
%
NALs
263

 
270

 
167

 
178

 
182

NPAs
239

 
257

 
157

 
163

 
168

ACL as a % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
2.27
%
 
2.05
%
 
1.18
%
 
1.18
%
 
1.17
%
NALs
281

 
287

 
190

 
201

 
206

NPAs
255

 
273

 
178

 
184

 
190

(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 12-15 of Quarterly Financial Supplement for additional detail.

Asset quality performance continues to be impacted by our oil and gas portfolio, while the remainder of the commercial portfolio has performed in line with expectations. The consumer portfolio metrics continue to reflect our focus on high quality borrowers.
Nonperforming assets (NPAs) increased to $713 million, or 0.89% of total loans and leases and OREO, from $460 million, or 0.61%, a year ago. Nonaccrual loans and leases (NALs) increased $223 million, or 52%, to $648 million, or 0.81% of total loans and leases. The year-over-year increase was primarily in the commercial portfolio, particularly the oil and gas portfolio. OREO balances decreased $7 million, or 50%, from the year-ago quarter. On a linked quarter basis, NALs increased $90 million, or 16%, while NPAs increased $127 million, or 22%. The oil and gas portfolio contributed approximately 56% of the newly categorized NPAs.
The provision for credit losses increased $268 million year-over-year to $327 million in the 2020 second quarter. Net charge-offs (NCOs) increased $59 million to $107 million. The oil and gas portfolio accounted for approximately 75% of the $80 million of commercial NCOs, nearly all of which resulted from charge-offs on loans sold in the quarter or under contract to be sold. Consumer NCOs of $27 million were down on both a year-over-year and linked quarter basis, consistent with our expectations. NCOs represented an annualized 0.54% of average loans and leases in the current quarter, down from 0.62% in the prior quarter and up from 0.25% in the year-ago quarter. We remain confident in the long-term credit performance of our loan portfolios.
The allowance for loan and lease losses (ALLL) increased $928 million from the year-ago quarter to $1.7 billion, or 2.12% of total loans and leases. The ALLL as a percentage of period-end total NALs increased to 263%


9


from 182% over the same period. The allowance for credit losses (ACL) increased by $946 million from the year-ago quarter to $1.8 billion, or 2.27% of total loans and leases. On a linked quarter basis, the ACL increased $218 million. We believe the levels of the ALLL and ACL are appropriate given the current level of problem loans and the economic outlook.

Capital
Table 8 – Capital Ratios – Ratios Remain within Targeted Operating Ranges
 
 
2020
 
2019
($ in billions)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
Tangible common equity / tangible assets ratio
 
7.28
%
 
7.52
%
 
7.88
%
 
8.00
%
 
7.80
%
Common equity tier 1 risk-based capital ratio (1)
 
9.84
%
 
9.47
%
 
9.88
%
 
10.02
%
 
9.88
%
Regulatory Tier 1 risk-based capital ratio (1)
 
11.79
%
 
10.81
%
 
11.26
%
 
11.41
%
 
11.28
%
Regulatory Total risk-based capital ratio (1)
 
13.84
%
 
12.74
%
 
13.04
%
 
13.29
%
 
13.13
%
Total risk-weighted assets (1)
 
$
87.3

 
$
90.2

 
$
87.5

 
$
86.7

 
$
86.3

(1)
June 30, 2020 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. The estimated June 30, 2020, and March 31, 2020, capital ratios reflect Huntington’s 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. 
See Pages 16-17 of Quarterly Financial Supplement for additional detail.

The tangible common equity to tangible assets ratio was 7.28% at June 30, 2020, down 52 basis points from a year ago due to year-over-year balance sheet growth. Common Equity Tier 1 (CET1) risk-based capital ratio was 9.84%, down from 9.88% a year ago. The regulatory Tier 1 risk-based capital ratio was 11.79% compared to 11.28% at June 30, 2019. The balance sheet growth impact on regulatory capital ratios was predominantly offset by a change in asset mix during the 2020 second quarter related to the PPP loans and elevated deposits at the Federal Reserve (both of which are 0% risk weighted). The capital impact of the repurchase of $352 million of common stock over the last four quarters (none in the 2020 second quarter) and cash dividends effectively offset earnings, adjusted for the CECL transition, on a year-over-year basis.  The regulatory Tier 1 risk-based capital and total risk-based capital ratios also reflect the issuance of $500 million of Series F preferred stock in the 2020 second quarter.
We do not currently expect to repurchase common shares during the 2020 third quarter; however, the Board has authorized the repurchase of common shares during the 2020 third quarter to offset compensation plan-related share issuances as permitted by the Federal Reserve Board.  We may, at our discretion, repurchase common shares as permitted by this Board authorization.  Purchases of common shares under the authorization may include open market purchases, privately negotiated transactions, and accelerated share repurchase programs.

Income Taxes
The provision for income taxes was $31 million in the 2020 second quarter and $63 million in the 2019 second quarter. The effective tax rates for the 2020 second quarter and 2019 second quarter were 17.2% and 14.6%, respectively. The variance between the 2020 second quarter and the 2019 second quarter provision for income taxes and effective tax rates relates primarily to lower pre-tax income and the impact of stock-based compensation.
At June 30, 2020, we had a net federal deferred tax liability of $222 million and a net state deferred tax asset of $33 million.





10


Expectations - 2020 Third Quarter
Third quarter revenue is expected to increase approximately 2% from the 2020 second quarter. The 2020 third quarter NIM is expected to expand approximately 7 to 10 basis points on a linked quarter basis. Third quarter noninterest expense is expected to increase approximately 5% compared to the 2020 second quarter.
Average loans and leases are expected to remain relatively unchanged on a linked quarter basis. Average total deposits are expected to decrease approximately 1% compared to the 2020 second quarter.
Asset quality metrics are expected to continue to be impacted by the challenged economic outlook. Net charge-offs are expected to be near 65 basis points in the 2020 third quarter, impacted by the oil & gas portfolio and broader economic considerations.

Conference Call / Webcast Information
Huntington’s senior management will host an earnings conference call on July 23, 2020, at 9:00 a.m. (Eastern Daylight 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 #13704964. 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 July 31, 2020 at (877) 660-6853 or (201) 612-7415; conference ID #13704964.
Please see the 2020 Second 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.

About Huntington
Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio, with $118 billion of assets and a network of 839 full-service branches, including 12 Private Client Group offices, and 1,344 ATMs across seven Midwestern states. Founded in 1866, The Huntington National Bank and its affiliates provide consumer, small business, commercial, treasury management, wealth management, brokerage, trust, and insurance services. Huntington also provides vehicle finance, equipment finance, national settlement, and capital market services that extend beyond its core states. Visit huntington.com for more information.

Caution regarding Forward-Looking Statements
This communication 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; the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and


11


credit markets; movements in interest rates; reform of 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 our future results. Additional factors that could cause results to differ materially from those described above can be found in our 2019 Annual Report on Form 10-K, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, as well as our subsequent Securities and Exchange Commission ("SEC") filings, which are on file with the SEC and available in the “Investor Relations” section of our website, http://www.huntington.com, under the heading “Publications and Filings.”
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We do 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.

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, 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.
Earnings per Share Equivalent Data
Significant income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total corporate earnings per share performance excluding the impact of such items. Investors may also find this information helpful in their evaluation of our financial performance against published earnings per share mean estimate amounts, which typically exclude the impact of Significant Items. Earnings per share equivalents are usually calculated by applying an effective tax rate to a pre-tax amount to derive an after-tax amount, which is divided by the average shares outstanding during the respective reporting period. Occasionally, when the item involves special tax treatment, the after-tax amount is disclosed separately, with this then being the amount used to calculate the earnings per share equivalent.


12


Rounding
Please note that columns of data in this document may not add due to rounding.
Significant 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 “Significant Items”. Most often, these Significant Items result from factors originating outside the company – e.g., regulatory actions/assessments, windfall gains, changes in accounting principles, one-time tax assessments/refunds, and litigation actions. In other cases they may result from management decisions associated with significant corporate actions out of the ordinary course of business – e.g., merger/restructuring charges, recapitalization actions, and goodwill impairment.
Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not define a Significant Item. For example, changes in the provision for credit losses, gains/losses from investment activities, and asset valuation write-downs reflect ordinary banking activities and are, therefore, typically excluded from consideration as a Significant Item.
Management believes the disclosure of “Significant Items”, when appropriate, aids analysts/investors in better understanding corporate performance and trends so that they can ascertain which of such items, if any, they may wish to include/exclude from their analysis of the company’s performance - i.e., within the context of determining how that performance differed from their expectations, as well as how, if at all, to adjust their estimates of future performance accordingly. To this end, management has adopted a practice of listing “Significant Items” in our external disclosure documents (e.g., earnings press releases, quarterly performance discussions, investor presentations, and Forms 10-Q and 10-K).
“Significant Items” for any particular period are not intended to be a complete list of items that may materially impact current or future period performance. A number of items could materially impact these periods, including those which may be described from time to time in Huntington’s filings with the Securities and Exchange Commission.


13


Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
June 30, 2020
Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Notes:
The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.
Fully-Taxable Equivalent Basis
Interest income, yields, and ratios on a FTE basis are considered non-GAAP financial measures.  Management believes net interest income on a FTE basis provides a more accurate picture of the interest margin for comparison purposes.  The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources.  The FTE basis assumes a federal statutory tax rate of 21 percent.
Non-Regulatory Capital Ratios
In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:
•
Tangible common equity to tangible assets, and
•
Tangible common equity to risk-weighted assets using Basel III definition.
These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.
Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure.



Huntington Bancshares Incorporated
Quarterly Key Statistics
(Unaudited)
 
Three Months Ended
 
 
 
 
 
(dollar amounts in millions, except per share data)
June 30,
 
March 31,
 
June 30,
 
 
Percent Changes vs.
2020
 
2020
 
2019
 
 
1Q20
 
2Q19
Net interest income (2)
$
797


$
796


$
819

 
 
—
 %
 
(3
)%
FTE adjustment
(5
)
 
(6
)
 
(7
)
 
 
17

 
29

Net interest income
792

 
790

 
812

 
 
—

 
(2
)
Provision for credit losses
327

 
441

 
59

 
 
(26
)
 
454

Noninterest income
391

 
361

 
374

 
 
8

 
5

Noninterest expense
675

 
652

 
700

 
 
4

 
(4
)
Income before income taxes
181

 
58

 
427

 
 
212

 
(58
)
Provision for income taxes
31

 
10

 
63

 
 
210

 
(51
)
Net income
150

 
48

 
364

 
 
213

 
(59
)
Dividends on preferred shares
19

 
18

 
18

 
 
6

 
6

Net income applicable to common shares
$
131

 
$
30

 
$
346

 
 
337
 %
 
(62
)%
 
 
 
 
 
 
 
 


 


Net income per common share - diluted
$
0.13

 
$
0.03

 
$
0.33

 
 
333
 %
 
(61
)%
Cash dividends declared per common share
0.15

 
0.15

 
0.14

 
 
—

 
7

Tangible book value per common share at end of period
8.32

 
8.28

 
7.97

 
 
—

 
4

Number of common shares repurchased
—

 
7,088

 
11,344

 
 
(100
)
 
(100
)
Average common shares - basic
1,016

 
1,018

 
1,045

 
 
—

 
(3
)
Average common shares - diluted
1,029

 
1,035

 
1,060

 
 
(1
)
 
(3
)
Ending common shares outstanding
1,017

 
1,014

 
1,038

 
 
—

 
(2
)
Return on average assets
0.51
%
 
0.17
 %
 
1.36
 %
 
 


 


Return on average common shareholders’ equity
5.0

 
1.1

 
13.5

 
 


 


Return on average tangible common shareholders’ equity (1)
6.7

 
1.8

 
17.7

 
 


 


Net interest margin (2)
2.94

 
3.14

 
3.31

 
 


 


Efficiency ratio (3)
55.9

 
55.4

 
57.6

 
 


 


Effective tax rate
17.2

 
17.0

 
14.6

 
 


 


Average total assets
$
118,191

 
$
110,147

 
$
107,479

 
 
7

 
10

Average earning assets
109,038

 
101,783

 
99,188

 
 
7

 
10

Average loans and leases
80,199

 
75,696

 
74,932

 
 
6

 
7

Average loans and leases - linked quarter annualized growth rate
23.8
%
 
3.2
 %
 
0.8
 %
 
 


 


Average total deposits
$
93,222

 
$
82,733

 
$
81,718

 
 
13

 
14

Average core deposits (4)
88,878

 
79,528

 
78,723

 
 
12

 
13

Average core deposits - linked quarter annualized growth rate
47.0
%
 
(0.8
)%
 
(1.6
)%
 
 


 


Average shareholders’ equity
11,945

 
11,636

 
11,475

 
 
3

 
4

Average common total shareholders' equity
10,590

 
10,433

 
10,272

 
 
2

 
3

Average tangible common shareholders' equity
8,429

 
8,264

 
8,075

 
 
2

 
4

Total assets at end of period
118,425

 
113,897

 
108,247

 
 
4

 
9

Total shareholders’ equity at end of period
12,314

 
11,769

 
11,668

 
 
5

 
6

 
 
 
 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.54
%
 
0.62
 %
 
0.25
 %
 
 
 
 
 
NAL ratio
0.81

 
0.72

 
0.57

 
 
 
 
 
NPA ratio (5)
0.89

 
0.75

 
0.61

 
 


 


Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
2.12

 
1.93

 
1.03

 
 
 
 
 
Common equity tier 1 risk-based capital ratio (6)
9.84

 
9.47

 
9.88

 
 
 
 
 
Tangible common equity / tangible asset ratio (7)
7.28

 
7.52

 
7.80

 
 
 
 
 
See Notes to the Quarterly Key Statistics.

1













Huntington Bancshares Incorporated
Year to Date Key Statistics
(Unaudited)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions, except per share data)
2020
 
2019
 
Amount
 
Percent
Net interest income (2)
$
1,593

 
$
1,648

 
$
(55
)
 
(3
)%
FTE adjustment
(11
)
 
(14
)
 
3

 
21

Net interest income
1,582

 
1,634

 
(52
)
 
(3
)
Provision for credit losses
768

 
126

 
642

 
510

Noninterest income
752

 
693

 
59

 
9

Noninterest expense
1,327

 
1,353

 
(26
)
 
(2
)
Income before income taxes
239

 
848

 
(609
)
 
(72
)
Provision for income taxes
41

 
126

 
(85
)
 
(67
)
Net Income
198

 
722

 
(524
)
 
(73
)
Dividends on preferred shares
37

 
37

 
—

 
—

Net income applicable to common shares
$
161

 
$
685

 
$
(524
)
 
(76
)%
 
 
 
 
 
 
 


Net income per common share - diluted
$
0.16

 
$
0.64

 
$
(0.48
)
 
(75
)%
Cash dividends declared per common share
0.30

 
0.28

 
0.02

 
7

 
 
 
 
 
 
 


Average common shares - basic
1,017

 
1,046

 
(29
)
 
(3
)
Average common shares - diluted
1,032

 
1,063

 
(31
)
 
(3
)
 
 
 
 
 
 
 


Return on average assets
0.35
%
 
1.35
%
 
 
 


Return on average common shareholders’ equity
3.1

 
13.7

 
 
 


Return on average tangible common shareholders’ equity (1)
4.3

 
18.0

 
 
 


Net interest margin (2)
3.04

 
3.35

 
 
 


Efficiency ratio (3)
55.7

 
56.7

 
 
 


Effective tax rate
17.2

 
14.8

 
 
 


 
 
 
 
 
 
 


Average total assets
$
114,169

 
$
107,495

 
$
6,674

 
6

Average earning assets
105,410

 
99,200

 
6,210

 
6

Average loans and leases
77,947

 
74,853

 
3,094

 
4

Average total deposits
87,977

 
82,242

 
5,735

 
7

Average core deposits (4)
83,758

 
78,877

 
4,881

 
6

Average shareholders’ equity
11,790

 
11,317

 
473

 
4

Average common total shareholders' equity
10,511

 
10,113

 
398

 
4

Average tangible common shareholders' equity
8,347

 
7,912

 
435

 
5

 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.58
%
 
0.32
%
 


 


NAL ratio
0.81

 
0.57

 


 


NPA ratio (5)
0.89

 
0.61

 


 


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


2













Key Statistics Footnotes
(1)
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 21% tax rate.
(2)
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
(3)
Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
(4)
Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.
(5)
NPAs include other nonperforming assets, which includes certain impaired securities and/or nonaccrual loans held for sale, and other real estate owned.
(6)
June 30, 2020, figures are estimated.
(7)
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.



3













Huntington Bancshares Incorporated
Consolidated Balance Sheets
 
June 30,
 
December 31,
 

(dollar amounts in millions)
2020
 
2019
 
Percent Changes
 
(Unaudited)
 

 
 
Assets
 
 
 
 
 
Cash and due from banks
$
1,285

 
$
1,045

 
23
 %
Interest-bearing deposits in Federal Reserve Bank
5,008

 
125

 
3,906

Interest-bearing deposits in banks
82

 
102

 
(20
)
Trading account securities
45

 
99

 
(55
)
Available-for-sale securities
13,297

 
14,149

 
(6
)
Held-to-maturity securities
9,416

 
9,070

 
4

Other securities
438

 
441

 
(1
)
Loans held for sale
1,165

 
877

 
33

Loans and leases (1)
80,139

 
75,404

 
6

Allowance for loan and lease losses
(1,702
)
 
(783
)
 
(117
)
Net loans and leases
78,437

 
74,621

 
5

Bank owned life insurance
2,560

 
2,542

 
1

Premises and equipment
751

 
763

 
(2
)
Goodwill
1,990

 
1,990

 
—

Service rights and other intangible assets
411

 
475

 
(13
)
Other assets
3,540

 
2,703

 
31

Total assets
$
118,425

 
$
109,002

 
9
 %
 
 
 
 
 


Liabilities and shareholders’ equity
 
 
 
 


Liabilities
 
 
 
 


Deposits (2)
$
93,691

 
$
82,347

 
14
 %
Short-term borrowings
146

 
2,606

 
(94
)
Long-term debt
9,753

 
9,849

 
(1
)
Other liabilities
2,521

 
2,405

 
5

Total liabilities
106,111

 
97,207

 
9

 
 
 
 
 


Shareholders' equity
 
 
 
 


Preferred stock
1,697

 
1,203

 
41

Common stock
10

 
10

 
—

Capital surplus
8,743

 
8,806

 
(1
)
Less treasury shares, at cost
(59
)
 
(56
)
 
(5
)
Accumulated other comprehensive gain (loss)
290

 
(256
)
 
213

Retained earnings (deficit)
1,633

 
2,088

 
(22
)
Total shareholders’ equity
12,314

 
11,795

 
4

Total liabilities and shareholders’ equity
$
118,425

 
$
109,002

 
9
 %
 
 
 
 
 
 
Common shares authorized (par value of $0.01)
1,500,000,000

 
1,500,000,000

 
 
Common shares outstanding
1,017,309,583

 
1,020,003,482

 
 
Treasury shares outstanding
4,999,371

 
4,537,605

 
 
Preferred stock, authorized shares
6,617,808

 
6,617,808

 
 
Preferred shares outstanding
745,500

 
740,500

 
 
(1)
See page 5 for detail of loans and leases.
(2)
See page 6 for detail of deposits.

4













Huntington Bancshares Incorporated
Loans and Leases Composition
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
34,879

 
44
%
 
$
32,959

 
42
%
 
$
30,664

 
41
%
 
$
30,394

 
41
%
 
$
30,608

 
41
%
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
1,200

 
1

 
1,180

 
2

 
1,123

 
1

 
1,157

 
2

 
1,146

 
1

Commercial
5,979

 
7

 
5,793

 
7

 
5,551

 
7

 
5,698

 
8

 
5,742

 
8

Commercial real estate
7,179

 
8

 
6,973

 
9

 
6,674

 
8

 
6,855

 
10

 
6,888

 
9

Total commercial
42,058

 
52

 
39,932

 
51

 
37,338

 
49

 
37,249

 
51

 
37,496

 
50

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automobile
12,678

 
16

 
12,907

 
17

 
12,797

 
17

 
12,292

 
15

 
12,173

 
16

Home equity
8,866

 
11

 
9,010

 
11

 
9,093

 
12

 
9,300

 
12

 
9,419

 
12

Residential mortgage
11,621

 
15

 
11,398

 
15

 
11,376

 
15

 
11,247

 
15

 
11,182

 
15

RV and marine
3,843

 
5

 
3,643

 
5

 
3,563

 
5

 
3,553

 
5

 
3,492

 
5

Other consumer
1,073

 
1

 
1,145

 
1

 
1,237

 
2

 
1,251

 
2

 
1,271

 
2

Total consumer
38,081

 
48

 
38,103

 
49

 
38,066

 
51

 
37,643

 
49

 
37,537

 
50

Total loans and leases
$
80,139

 
100
%
 
$
78,035

 
100
%
 
$
75,404

 
100
%
 
$
74,892

 
100
%
 
$
75,033

 
100
%

 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Ending Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
27,173

 
34
%
 
$
21,544

 
28
%
 
$
21,716

 
29
%
 
$
21,963

 
30
%
 
$
22,128

 
30
%
Commercial Banking
26,916

 
34

 
29,421

 
38

 
27,050

 
36

 
27,090

 
36

 
27,311

 
36

Vehicle Finance
19,345

 
24

 
20,552

 
26

 
20,190

 
27

 
19,484

 
26

 
19,417

 
26

RBHPCG
6,576

 
8

 
6,457

 
8

 
6,366

 
8

 
6,294

 
8

 
6,179

 
8

Treasury / Other
129

 
—

 
61

 
—

 
82

 
—

 
61

 
—

 
(2
)
 
—

Total loans and leases
$
80,139

 
100
%
 
$
78,035

 
100
%
 
$
75,404

 
100
%
 
$
74,892

 
100
%
 
$
75,033

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
25,379

 
32
%
 
$
21,593

 
29
%
 
$
21,845

 
30
%
 
$
22,092

 
30
%
 
$
22,139

 
30
%
Commercial Banking
28,173

 
35

 
27,238

 
36

 
26,993

 
36

 
27,295

 
36

 
27,350

 
36

Vehicle Finance
19,822

 
25

 
20,307

 
27

 
19,852

 
26

 
19,370

 
26

 
19,298

 
26

RBHPCG
6,498

 
8

 
6,415

 
8

 
6,314

 
8

 
6,237

 
8

 
6,054

 
8

Treasury / Other
327

 
—

 
143

 
—

 
99

 
—

 
102

 
—

 
91

 
—

Total loans and leases
$
80,199

 
100
%
 
$
75,696

 
100
%
 
$
75,103

 
100
%
 
$
75,096

 
100
%
 
$
74,932

 
100
%


5













Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits - noninterest-bearing
$
27,574

 
29
%
 
$
21,039

 
24
%
 
$
20,247

 
25
%
 
$
20,553

 
25
%
 
$
19,383

 
24
%
Demand deposits - interest-bearing
22,961

 
25

 
23,115

 
27

 
20,583

 
25

 
19,976

 
24

 
19,085

 
24

Money market deposits
25,312

 
27

 
25,068

 
29

 
24,726

 
30

 
23,977

 
29

 
23,952

 
30

Savings and other domestic deposits
11,034

 
12

 
9,845

 
11

 
9,549

 
12

 
9,566

 
12

 
9,803

 
12

Core certificates of deposit (1)
2,478

 
3

 
3,599

 
4

 
4,356

 
5

 
5,443

 
7

 
5,703

 
7

Total core deposits
89,359

 
96

 
82,666

 
95

 
79,461

 
97

 
79,515

 
97

 
77,926

 
97

Other domestic deposits of $250,000 or more
209

 
—

 
276

 
—

 
313

 
—

 
326

 
—

 
316

 
—

Brokered deposits and negotiable CDs
4,123

 
4

 
3,888

 
5

 
2,573

 
3

 
2,554

 
3

 
2,640

 
3

Total deposits
$
93,691

 
100
%
 
$
86,830

 
100
%
 
$
82,347

 
100
%
 
$
82,395

 
100
%
 
$
80,882

 
100
%
Total core deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
41,630

 
47
%
 
$
38,064

 
46
%
 
$
34,957

 
44
%
 
$
35,247

 
44
%
 
$
33,371

 
43
%
Consumer
47,729

 
53

 
44,602

 
54

 
44,504

 
56

 
44,268

 
56

 
44,555

 
57

Total core deposits
$
89,359

 
100
%
 
$
82,666

 
100
%
 
$
79,461

 
100
%
 
$
79,515

 
100
%
 
$
77,926

 
100
%
Ending Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
59,202

 
63
%
 
$
51,898

 
60
%
 
$
51,675

 
63
%
 
$
51,671

 
63
%
 
$
51,577

 
64
%
Commercial Banking
22,041

 
24

 
23,530

 
27

 
20,762

 
25

 
21,088

 
26

 
20,049

 
25

Vehicle Finance
824

 
1

 
525

 
1

 
376

 
—

 
363

 
—

 
339

 
—

RBHPCG
6,834

 
7

 
6,265

 
7

 
6,370

 
8

 
6,101

 
7

 
5,863

 
7

Treasury / Other (2)
4,790

 
5

 
4,612

 
5

 
3,164

 
4

 
3,172

 
4

 
3,054

 
4

Total deposits
$
93,691

 
100
%
 
$
86,830

 
100
%
 
$
82,347

 
100
%
 
$
82,395

 
100
%
 
$
80,882

 
100
%
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Average Balances by Business Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Banking
$
56,858

 
61
%
 
$
51,296

 
62
%
 
$
52,059

 
63
%
 
$
51,604

 
63
%
 
$
51,935

 
64
%
Commercial Banking
24,414

 
26

 
21,525

 
26

 
20,974

 
25

 
21,227

 
26

 
20,361

 
25

Vehicle Finance
646

 
1

 
366

 
—

 
347

 
—

 
359

 
—

 
322

 
—

RBHPCG
6,565

 
7

 
6,100

 
7

 
6,113

 
7

 
5,958

 
7

 
5,918

 
7

Treasury / Other (2)
4,739

 
5

 
3,446

 
5

 
3,099

 
5

 
3,101

 
4

 
3,182

 
4

Total deposits
$
93,222

 
100
%
 
$
82,733

 
100
%
 
$
82,592

 
100
%
 
$
82,249

 
100
%
 
$
81,718

 
100
%
(1)
Includes consumer certificates of deposit of $250,000 or more.
(2)
Comprised primarily of national market deposits.

6













Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)
 
Quarterly Average Balances (1)
 
 
 
 
 
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
 
Percent Changes vs.
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
 
 
1Q20
 
2Q19
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
3,413

 
$
680

 
$
672

 
$
514

 
$
518

 
 
402
 %
 
559
 %
Interest-bearing deposits in banks
169

 
150

 
176

 
149

 
135

 
 
13

 
25

Securities:
 
 
 
 
 
 
 
 
 
 
 


 


Trading account securities
39

 
95

 
109

 
137

 
161

 
 
(59
)
 
(76
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 


 


Taxable
11,179

 
11,671

 
11,221

 
11,096

 
10,501

 
 
(4
)
 
6

Tax-exempt
2,728

 
2,753

 
2,791

 
2,820

 
2,970

 
 
(1
)
 
(8
)
Total available-for-sale securities
13,907


14,424


14,012


13,916


13,471

 
 
(4
)
 
3

Held-to-maturity securities - taxable
9,798

 
9,428

 
8,592

 
8,566

 
8,771

 
 
4

 
12

Other securities
474

 
445

 
448

 
437

 
466

 
 
7

 
2

Total securities
24,218


24,392


23,161


23,056


22,869

 
 
(1
)
 
6

Loans held for sale
1,039

 
865

 
950

 
877

 
734

 
 
20

 
42

Loans and leases: (2)
 
 
 
 
 
 
 
 
 
 
 


 


Commercial:
 
 
 
 
 
 
 
 
 
 
 


 


Commercial and industrial
35,284

 
30,849

 
30,373

 
30,632

 
30,644

 
 
14

 
15

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 


 


Construction
1,201

 
1,165

 
1,181

 
1,165

 
1,168

 
 
3

 
3

Commercial
5,885

 
5,566

 
5,625

 
5,762

 
5,732

 
 
6

 
3

Commercial real estate
7,086

 
6,731

 
6,806

 
6,927

 
6,900

 
 
5

 
3

Total commercial
42,370


37,580


37,179


37,559


37,544

 
 
13

 
13

Consumer:
 
 
 
 
 
 
 
 
 
 
 


 


Automobile
12,681

 
12,924

 
12,607

 
12,181

 
12,219

 
 
(2
)
 
4

Home equity
8,897

 
9,026

 
9,192

 
9,353

 
9,482

 
 
(1
)
 
(6
)
Residential mortgage
11,463

 
11,391

 
11,330

 
11,214

 
11,010

 
 
1

 
4

RV and marine
3,706

 
3,590

 
3,564

 
3,528

 
3,413

 
 
3

 
9

Other consumer
1,082

 
1,185

 
1,231

 
1,261

 
1,264

 
 
(9
)
 
(14
)
Total consumer
37,829


38,116


37,924


37,537


37,388

 
 
(1
)
 
1

Total loans and leases
80,199

 
75,696

 
75,103

 
75,096

 
74,932

 
 
6

 
7

Allowance for loan and lease losses
(1,557
)
 
(1,239
)
 
(787
)
 
(799
)
 
(778
)
 
 
(26
)
 
(100
)
Net loans and leases
78,642


74,457


74,316


74,297


74,154

 
 
6

 
6

Total earning assets
109,038


101,783


100,062


99,692


99,188

 
 
7

 
10

Cash and due from banks
1,299

 
914

 
864

 
817

 
835

 
 
42

 
56

Intangible assets
2,206

 
2,217

 
2,228

 
2,240

 
2,252

 
 
—

 
(2
)
All other assets
7,205

 
6,472

 
6,346

 
6,216

 
5,982

 
 
11

 
20

Total assets
$
118,191


$
110,147


$
108,713


$
108,166


$
107,479

 
 
7
 %
 
10
 %
Liabilities and shareholders’ equity

 
 
 
 
 
 
 
 
 
 


 


Interest-bearing deposits:

 
 
 
 
 
 
 
 
 
 


 


Demand deposits - interest-bearing
$
23,878

 
$
21,202

 
$
20,140

 
$
19,796

 
$
19,693

 
 
13
 %
 
21
 %
Money market deposits
25,728

 
24,697

 
24,560

 
24,266

 
23,305

 
 
4

 
10

Savings and other domestic deposits
10,609

 
9,632

 
9,552

 
9,681

 
10,105

 
 
10

 
5

Core certificates of deposit (3)
3,003

 
3,943

 
4,795

 
5,666

 
5,860

 
 
(24
)
 
(49
)
Other domestic deposits of $250,000 or more
230

 
321

 
313

 
315

 
310

 
 
(28
)
 
(26
)
Brokered deposits and negotiable CDs
4,114

 
2,884

 
2,589

 
2,599

 
2,685

 
 
43

 
53

Total interest-bearing deposits
67,562


62,679


61,949


62,323


61,958

 
 
8

 
9

Short-term borrowings
826

 
3,383

 
1,965

 
2,331

 
3,166

 
 
(76
)
 
(74
)
Long-term debt
9,802

 
10,076

 
9,886

 
9,536

 
8,914

 
 
(3
)
 
10

Total interest-bearing liabilities
78,190


76,138


73,800


74,190


74,038

 
 
3

 
6

Demand deposits - noninterest-bearing
25,660

 
20,054

 
20,643

 
19,926

 
19,760

 
 
28

 
30

All other liabilities
2,396

 
2,319

 
2,386

 
2,336

 
2,206

 
 
3

 
9

Shareholders’ equity
11,945

 
11,636

 
11,884

 
11,714

 
11,475

 
 
3

 
4

Total liabilities and shareholders’ equity
$
118,191


$
110,147


$
108,713


$
108,166


$
107,479

 
 
7
 %
 
10
 %
(1)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)
Includes nonaccrual loans.
(3)
Includes consumer certificates of deposit of $250,000 or more.


7













Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
 
Quarterly Interest Income / Expense
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
1

 
$
2

 
$
3

 
$
3

 
$
3

Interest-bearing deposits in banks
—

 
1

 
1

 
1

 
—

Securities:
 
 
 
 
 
 
 
 
 
Trading account securities
—

 
1

 
1

 
—

 
1

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Taxable
65

 
76

 
73

 
74

 
72

Tax-exempt
19

 
23

 
24

 
26

 
27

Total available-for-sale securities
84

 
99

 
97

 
100

 
99

Held-to-maturity securities - taxable
58

 
59

 
54

 
54

 
56

Other securities
1

 
2

 
3

 
3

 
4

Total securities
143


161


155


157


160

Loans held for sale
9

 
7

 
8

 
9

 
7

Loans and leases:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
323

 
318

 
335

 
358

 
373

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
11

 
14

 
15

 
16

 
17

Commercial
43

 
56

 
63

 
68

 
71

Commercial real estate
54

 
70

 
78

 
84

 
88

Total commercial
377


388


413


442


461

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
121

 
130

 
131

 
126

 
123

Home equity
82

 
107

 
117

 
127

 
131

Residential mortgage
101

 
105

 
105

 
107

 
106

RV and marine
43

 
44

 
45

 
44

 
42

Other consumer
30

 
36

 
39

 
42

 
42

Total consumer
377

 
422

 
437

 
446

 
444

Total loans and leases
754


810


850


888


905

Total earning assets
$
907


$
981


$
1,017


$
1,058


$
1,075

 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
Demand deposits - interest-bearing
$
4

 
$
23

 
$
32

 
$
29

 
$
28

Money market deposits
25

 
50

 
61

 
73

 
67

Savings and other domestic deposits
3

 
4

 
5

 
5

 
6

Core certificates of deposit (3)
7

 
19

 
25

 
31

 
32

Other domestic deposits of $250,000 or more
5

 
1

 
3

 
1

 
1

Brokered deposits and negotiable CDs
3

 
8

 
10

 
15

 
16

Total interest-bearing deposits
47


105


136


154


150

Short-term borrowings
1

 
12

 
8

 
13

 
19

Long-term debt
62

 
68

 
87

 
86

 
87

Total interest bearing liabilities
110


185


231


253


256

Net interest income
$
797


$
796


$
786


$
805


$
819

(1)
Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.
(2)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Includes consumer certificates of deposit of $250,000 or more.



8













Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Yield
(Unaudited)
 
 Quarterly Average Rates
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
Fully-taxable equivalent basis (1)
2020
 
2020
 
2019
 
2019
 
2019
Assets
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
0.10
%
 
1.08
%
 
1.66
%
 
2.19
%
 
2.38
%
Interest-bearing deposits in banks
0.33

 
1.52

 
1.81

 
2.38

 
2.08

Securities:
 
 
 
 
 
 
 
 
 
Trading account securities
1.99

 
3.21

 
2.45

 
2.36

 
1.92

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Taxable
2.30

 
2.62

 
2.63

 
2.67

 
2.73

Tax-exempt
2.75

 
3.30

 
3.43

 
3.63

 
3.66

Total available-for-sale securities
2.39

 
2.75

 
2.79

 
2.87

 
2.94

Held-to-maturity securities - taxable
2.39

 
2.50

 
2.50

 
2.51

 
2.54

Other securities
0.57

 
2.07

 
2.57

 
3.15

 
3.44

Total securities
2.35

 
2.64

 
2.68

 
2.74

 
2.79

Loans held for sale
3.22

 
3.39

 
3.40

 
3.69

 
4.00

Loans and leases: (3)
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
3.62

 
4.12

 
4.31

 
4.57

 
4.82

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
3.66

 
4.75

 
5.07

 
5.50

 
5.59

Commercial
2.94

 
4.00

 
4.36

 
4.67

 
4.88

Commercial real estate
3.06

 
4.13

 
4.48

 
4.81

 
5.00

Total commercial
3.53

 
4.12

 
4.34

 
4.61

 
4.85

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
3.84

 
4.05

 
4.15

 
4.09

 
4.02

Home equity
3.73

 
4.75

 
5.03

 
5.38

 
5.56

Residential mortgage
3.51

 
3.70

 
3.73

 
3.80

 
3.84

RV and marine
4.71

 
4.91

 
4.96

 
4.96

 
4.94

Other consumer
11.10

 
12.39

 
12.71

 
13.34

 
13.29

Total consumer
4.00

 
4.45

 
4.59

 
4.72

 
4.76

Total loans and leases
3.75

 
4.29

 
4.47

 
4.67

 
4.80

Total earning assets
3.35

 
3.88

 
4.03

 
4.21

 
4.35

Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
Demand deposits - interest-bearing
0.07

 
0.43

 
0.63

 
0.57

 
0.58

Money market deposits
0.40

 
0.81

 
0.99

 
1.20

 
1.15

Savings and other domestic deposits
0.10

 
0.17

 
0.20

 
0.22

 
0.23

Core certificates of deposit (4)
1.55

 
1.91

 
2.09

 
2.17

 
2.15

Other domestic deposits of $250,000 or more
1.25

 
1.56

 
1.70

 
1.85

 
1.92

Brokered deposits and negotiable CDs
0.18

 
1.22

 
1.67

 
2.21

 
2.39

Total interest-bearing deposits
0.28

 
0.68

 
0.87

 
0.98

 
0.97

Short-term borrowings
0.47

 
1.46

 
1.66

 
2.28

 
2.41

Long-term debt
2.58

 
2.70

 
3.50

 
3.59

 
3.91

Total interest-bearing liabilities
0.57

 
0.98

 
1.24

 
1.36

 
1.39

Demand deposits - noninterest-bearing
—

 
—

 
—

 
—

 
—

Net interest rate spread
2.78

 
2.90

 
2.79

 
2.85

 
2.96

Impact of noninterest-bearing funds on margin
0.16

 
0.24

 
0.33

 
0.35

 
0.35

Net interest margin
2.94
%
 
3.14
%
 
3.12
%
 
3.20
%
 
3.31
%
Commercial Loan Derivative Impact
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Average Rates
 
2020
 
2020
 
2019
 
2019
 
2019
Fully-taxable equivalent basis (1)
Second
 
First
 
Fourth
 
Third
 
Second
Commercial loans (2)(3)
3.17
%
 
4.08
%
 
4.36
 %
 
4.70
 %
 
4.88
 %
Impact of commercial loan derivatives
0.36

 
0.04

 
(0.02
)
 
(0.09
)
 
(0.03
)
Total commercial - as reported
3.53
%
 
4.12
%
 
4.34
 %
 
4.61
 %
 
4.85
 %
 
 
 
 
 
 
 
 
 
 
Average 1 Month LIBOR
0.36
%
 
1.41
%
 
1.79
 %
 
2.18
 %
 
2.44
 %
(1)
Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.
(2)
Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Includes nonaccrual loans.
(4)
Includes consumer certificates of deposit of $250,000 or more.

9













Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
(Unaudited)
 
Three Months Ended
(dollar amounts in millions, except per share data)
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
2020
 
2020
 
2019
 
2019
 
2019
Interest income
$
902

 
$
975

 
$
1,011

 
$
1,052

 
$
1,068

Interest expense
110

 
185

 
231

 
253

 
256

Net interest income
792

 
790

 
780

 
799

 
812

Provision for credit losses
327

 
441

 
79

 
82

 
59

Net interest income after provision for credit losses
465

 
349

 
701

 
717

 
753

Service charges on deposit accounts
60

 
87

 
95

 
98

 
92

Card and payment processing income
59

 
58

 
64

 
64

 
63

Trust and investment management services
45

 
47

 
47

 
44

 
43

Mortgage banking income
96

 
58

 
58

 
54

 
34

Capital markets fees
31

 
33

 
31

 
36

 
34

Insurance income
25

 
23

 
24

 
20

 
23

Bank owned life insurance income
17

 
16

 
17

 
18

 
15

Gain on sale of loans and leases
8

 
8

 
16

 
13

 
13

Net (losses) gains on sales of securities
(1
)
 
—

 
(22
)
 
—

 
(2
)
Other noninterest income
51

 
31

 
42

 
42

 
59

Total noninterest income
391

 
361

 
372

 
389

 
374

Personnel costs
418

 
395

 
426

 
406

 
428

Outside data processing and other services
90

 
85

 
89

 
87

 
89

Equipment
46

 
41

 
42

 
41

 
40

Net occupancy
39

 
40

 
41

 
38

 
38

Professional services
11

 
11

 
14

 
16

 
12

Amortization of intangibles
10

 
11

 
12

 
12

 
12

Marketing
5

 
9

 
9

 
10

 
11

Deposit and other insurance expense
9

 
9

 
10

 
8

 
8

Other noninterest expense
47

 
51

 
58

 
49

 
62

Total noninterest expense
675

 
652

 
701

 
667

 
700

Income before income taxes
181

 
58

 
372

 
439

 
427

Provision for income taxes
31

 
10

 
55

 
67

 
63

Net income
150

 
48

 
317

 
372

 
364

Dividends on preferred shares
19

 
18

 
19

 
18

 
18

Net income applicable to common shares
$
131

 
$
30

 
$
298

 
$
354

 
$
346

 
 
 
 
 
 
 
 
 
 
Average common shares - basic
1,016

 
1,018

 
1,029

 
1,035

 
1,045

Average common shares - diluted
1,029

 
1,035

 
1,047

 
1,051

 
1,060

 
 
 
 
 
 
 
 
 
 
Per common share
 
 
 
 
 
 
 
 
 
Net income - basic
$
0.13

 
$
0.03

 
$
0.29

 
$
0.34

 
$
0.33

Net income - diluted
0.13

 
0.03

 
0.28

 
0.34

 
0.33

Cash dividends declared
0.15

 
0.15

 
0.15

 
0.15

 
0.14

 
 
 
 
 
 
 
 
 
 
Revenue - fully-taxable equivalent (FTE)
 
 
 
 
 
 
 
 
 
Net interest income
$
792

 
$
790

 
$
780

 
$
799

 
$
812

FTE adjustment
5

 
6

 
6

 
6

 
7

Net interest income (1)
797

 
796

 
786

 
805

 
819

Noninterest income
391

 
361

 
372

 
389

 
374

Total revenue (1)
$
1,188

 
$
1,157

 
$
1,158

 
$
1,194

 
$
1,193

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


10













Huntington Bancshares Incorporated
Quarterly Mortgage Banking Noninterest Income
(Unaudited)
 
Three Months Ended
 
 
 
 
 
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
 
Percent Changes vs.
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
 
 
1Q20
 
2Q19
Net origination and secondary marketing income
$
91

 
$
45

 
$
43

 
$
42

 
$
30

 
 
102
 %
 
203
 %
Net mortgage servicing income
 
 
 
 
 
 
 
 
 
 
 

 

          Loan servicing income
14

 
16

 
15

 
15

 
15

 
 
(13
)
 
(7
)
          Amortization of capitalized servicing
(12
)
 
(9
)
 
(13
)
 
(13
)
 
(10
)
 
 
(33
)
 
(20
)
    Operating income
2

 
7

 
2

 
2

 
5

 
 
(71
)
 
(60
)
          MSR valuation adjustment (1)
(6
)
 
(53
)
 
25

 
(11
)
 
(19
)
 
 
89

 
68

          Gains (losses) due to MSR hedging
6

 
57

 
(14
)
 
19

 
17

 
 
(89
)
 
(65
)
     Net MSR risk management
—


4


11


8


(2
)
 
 
(100
)
 
100

Total net mortgage servicing income
$
2

 
$
11

 
$
13

 
$
10

 
$
3

 
 
(82
)%
 
(33
)%
All other
3

 
2

 
2

 
2

 
1

 
 
50

 
200

Mortgage banking income
$
96

 
$
58

 
$
58

 
$
54

 
$
34

 
 
66
 %
 
182
 %

 
 
 
 
 
 
 
 
 
 
 


 


Mortgage origination volume
$
3,802

 
$
2,136

 
$
2,490

 
$
2,097

 
$
1,922

 
 
78
 %
 
98
 %
Mortgage origination volume for sale
2,268

 
1,409

 
1,518

 
1,483

 
1,181

 
 
61

 
92


 
 
 
 
 
 
 
 
 
 
 


 


Third party mortgage loans serviced (2)
23,184

 
22,775

 
22,425

 
21,674

 
21,486

 
 
2

 
8

Mortgage servicing rights (2)
172

 
165

 
212

 
180

 
192

 
 
4

 
(10
)
MSR % of investor servicing portfolio (2)
0.74
%
 
0.72
%
 
0.95
%
 
0.83
%
 
0.90
%
 
 
3
 %
 
(18
)%
(1)
The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)
At period end.

11













Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis
(Unaudited)
 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Allowance for loan and lease losses, beginning of period
$
1,504

 
$
783

 
$
780

 
$
774

 
$
764

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)
—

 
391

 
—

 
—

 
—

Loan and lease losses
(123
)
 
(136
)
 
(93
)
 
(102
)
 
(70
)
Recoveries of loans previously charged off
16

 
19

 
20

 
29

 
22

Net loan and lease losses
(107
)
 
(117
)
 
(73
)
 
(73
)
 
(48
)
Provision for loan and lease losses
305

 
447

 
77

 
79

 
58

Allowance of assets sold or transferred to loans held for sale
—

 
—

 
(1
)
 
—

 
—

Allowance for loan and lease losses, end of period
1,702

 
1,504

 
783

 
780

 
774

Allowance for unfunded loan commitments and letters of credit, beginning of period
99

 
104

 
101

 
101

 
100

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)
—

 
2

 
—

 
—

 
—

Provision for (reduction in) unfunded loan commitments and letters of credit losses
22

 
(6
)
 
2

 
3

 
1

Unfunded commitment losses
(2
)
 
(1
)
 
(2
)
 
—

 
—

Allowance for unfunded loan commitments and letters of credit, end of period
119


99


101


104


101

Total allowance for credit losses, end of period
$
1,821

 
$
1,603

 
$
884

 
$
884

 
$
875

Allowance for loan and lease losses (ALLL) as % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
2.12
%
 
1.93
%
 
1.04
%
 
1.04
%
 
1.03
%
Nonaccrual loans and leases (NALs)
263

 
270

 
167

 
178

 
182

Nonperforming assets (NPAs)
239

 
257

 
157

 
163

 
168

Total allowance for credit losses (ACL) as % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
2.27
%
 
2.05
%
 
1.18
%
 
1.18
%
 
1.17
%
Nonaccrual loans and leases (NALs)
281

 
287

 
190

 
201

 
206

Nonperforming assets (NPAs)
255

 
273

 
178

 
184

 
190



12













Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)
 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Net charge-offs by loan and lease type:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
80

 
$
84

 
$
36

 
$
40

 
$
21

Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
1

 
—

 
—

 
(1
)
 
(1
)
Commercial
(1
)
 
(1
)
 
—

 
(1
)
 
(2
)
Commercial real estate
—


(1
)

—


(2
)

(3
)
Total commercial
80


83


36


38


18

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
10

 
7

 
9

 
8

 
5

Home equity
—

 
5

 
1

 
2

 
2

Residential mortgage
—

 
1

 
1

 
1

 
1

RV and marine
4

 
2

 
4

 
2

 
2

Other consumer
13

 
19

 
22

 
22

 
20

Total consumer
27

 
34

 
37

 
35

 
30

Total net charge-offs
$
107

 
$
117

 
$
73

 
$
73

 
$
48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
2020
 
2020
 
2019
 
2019
 
2019
Net charge-offs - annualized percentages:
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Commercial and industrial
0.90
 %
 
1.09
 %
 
0.47
 %
 
0.52
 %
 
0.27
 %
Commercial real estate:
 
 
 
 
 
 
 
 
 
Construction
(0.01
)
 
0.08

 
(0.03
)
 
(0.40
)
 
(0.08
)
Commercial
(0.03
)
 
(0.06
)
 
0.01

 
(0.09
)
 
(0.12
)
Commercial real estate
(0.03
)
 
(0.03
)
 
—

 
(0.14
)
 
(0.12
)
Total commercial
0.75

 
0.89

 
0.38

 
0.40

 
0.20

Consumer:
 
 
 
 
 
 
 
 
 
Automobile
0.31

 
0.22

 
0.30

 
0.26

 
0.17

Home equity
0.08

 
0.19

 
0.02

 
0.11

 
0.07

Residential mortgage
0.02

 
0.02

 
0.04

 
0.03

 
0.05

RV and marine
0.37

 
0.27

 
0.39

 
0.23

 
0.25

Other consumer
4.80

 
6.45

 
7.26

 
7.07

 
6.02

Total consumer
0.30

 
0.35

 
0.39

 
0.38

 
0.31

Net charge-offs as a % of average loans
0.54
 %
 
0.62
 %
 
0.39
 %
 
0.39
 %
 
0.25
 %




13













Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Nonaccrual loans and leases (NALs):
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
485

 
$
396

 
$
323

 
$
291

 
$
281

Commercial real estate
28

 
30

 
10

 
12

 
17

Automobile
8

 
6

 
4

 
5

 
4

Home equity
59

 
58

 
59

 
60

 
60

Residential mortgage
66

 
66

 
71

 
69

 
62

RV and marine
2

 
2

 
1

 
1

 
1

Other consumer
—

 
—

 
—

 
—

 
—

Total nonaccrual loans and leases
648

 
558

 
468

 
438

 
425

Other real estate, net:
 
 
 
 
 
 
 
 
 
Residential
5

 
8

 
9

 
10

 
10

Commercial
2

 
2

 
2

 
2

 
4

Total other real estate, net
7

 
10

 
11

 
12

 
14

Other NPAs (1)
58

 
18

 
19

 
32

 
21

Total nonperforming assets
$
713


$
586


$
498


$
482


$
460

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans and leases as a % of total loans and leases
0.81
%
 
0.72
%
 
0.62
%
 
0.58
%
 
0.57
%
NPA ratio (2)
0.89

 
0.75

 
0.66

 
0.64

 
0.61

(NPA+90days)/(Loan+OREO) (3)
1.13

 
0.96

 
0.89

 
0.86

 
0.82


 
Three Months Ended
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Nonperforming assets, beginning of period
$
586

 
$
498

 
$
482

 
$
460

 
$
461

New nonperforming assets
279

 
274

 
175

 
165

 
117

Returns to accruing status
(25
)
 
(18
)
 
(20
)
 
(24
)
 
(16
)
Loan and lease losses
(61
)
 
(91
)
 
(48
)
 
(66
)
 
(34
)
Payments
(63
)
 
(70
)
 
(63
)
 
(38
)
 
(54
)
Sales
(3
)
 
(7
)
 
(28
)
 
(15
)
 
(14
)
Nonperforming assets, end of period
$
713

 
$
586

 
$
498

 
$
482

 
$
460

(1)
Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)
Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(3)
The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.



14













Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Accruing loans and leases past due 90+ days:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
13

 
$
10

 
$
11

 
$
9

 
$
5

Commercial real estate
—

 
—

 
—

 
—

 
—

Automobile
8

 
8

 
8

 
8

 
7

Home equity
10

 
12

 
14

 
13

 
15

Residential mortgage (excluding loans guaranteed by the U.S. Government)
17

 
21

 
20

 
23

 
27

RV and marine
2

 
2

 
2

 
1

 
1

Other consumer
3

 
4

 
7

 
7

 
5

Total, excl. loans guaranteed by the U.S. Government
53


57


62


61


60

Add: loans guaranteed by U.S. Government
141

 
110

 
109

 
102

 
92

Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government
$
194


$
167


$
171


$
163


$
152

 
 
 
 
 
 
 
 
 
 
Ratios:
 
 
 
 
 
 
 
 
 
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.07
%
 
0.07
%
 
0.08
%
 
0.08
%
 
0.08
%
Guaranteed by U.S. Government, as a percent of total loans and leases
0.18

 
0.14

 
0.14

 
0.14

 
0.12

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.24

 
0.21

 
0.23

 
0.22

 
0.20

 
 
 
 
 
 
 
 
 
 
Accruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
192

 
$
219

 
$
213

 
$
225

 
$
245

Commercial real estate
35

 
37

 
37

 
40

 
48

Automobile
52

 
42

 
40

 
39

 
37

Home equity
209

 
219

 
226

 
233

 
241

Residential mortgage
229

 
227

 
223

 
221

 
221

RV and marine
6

 
3

 
3

 
3

 
2

Other consumer
10

 
11

 
11

 
10

 
10

Total accruing troubled debt restructured loans
$
733

 
$
758

 
$
753

 
$
771

 
$
804

 
 
 
 
 
 
 
 
 
 
Nonaccruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
169

 
$
119

 
$
109

 
$
84

 
$
88

Commercial real estate
3

 
4

 
6

 
6

 
6

Automobile
2

 
2

 
2

 
3

 
3

Home equity
26

 
25

 
26

 
26

 
26

Residential mortgage
43

 
42

 
42

 
44

 
43

RV and marine
1

 
2

 
1

 
1

 
1

Other consumer
—

 
—

 
—

 
—

 
—

Total nonaccruing troubled debt restructured loans
$
244

 
$
194

 
$
186

 
$
164

 
$
167





15













Huntington Bancshares Incorporated
Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data
(Unaudited)
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Common equity tier 1 risk-based capital ratio: (1)
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
12,314

 
$
11,769

 
$
11,795

 
$
11,909

 
$
11,668

Regulatory capital adjustments:
 
 
 
 
 
 
 
 
 
CECL transitional amount (2)
442

 
386

 
—

 
—

 
—

Shareholders’ preferred equity
(1,701
)
 
(1,207
)
 
(1,207
)
 
(1,207
)
 
(1,207
)
Accumulated other comprehensive income offset
(290
)
 
(227
)
 
256

 
175

 
273

Goodwill and other intangibles, net of related taxes
(2,129
)
 
(2,141
)
 
(2,153
)
 
(2,162
)
 
(2,174
)
Deferred tax assets that arise from tax loss and credit carryforwards
(40
)
 
(42
)
 
(44
)
 
(30
)
 
(30
)
Common equity tier 1 capital
8,596

 
8,538

 
8,647


8,685

 
8,530

Additional tier 1 capital
 
 
 
 
 
 
 
 
 
Shareholders’ preferred equity
1,701

 
1,207

 
1,207

 
1,207

 
1,207

Other
—

 
1

 
—

 
1

 
—

Tier 1 capital
10,297

 
9,746

 
9,854


9,893

 
9,737

Long-term debt and other tier 2 qualifying instruments
697

 
619

 
672

 
750

 
727

Qualifying allowance for loan and lease losses
1,094

 
1,127

 
887

 
884

 
875

Tier 2 capital
1,791

 
1,746

 
1,559


1,634

 
1,602

Total risk-based capital
$
12,088

 
$
11,492

 
$
11,413

 
$
11,527

 
$
11,339

Risk-weighted assets (RWA)(1)
$
87,324

 
$
90,193

 
$
87,512

 
$
86,719

 
$
86,332

Common equity tier 1 risk-based capital ratio (1)
9.84
%
 
9.47
%
 
9.88
%
 
10.02
%
 
9.88
%
Other regulatory capital data:
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio (1)
8.86

 
9.01

 
9.26

 
9.34

 
9.24

Tier 1 risk-based capital ratio (1)
11.79

 
10.81

 
11.26

 
11.41

 
11.28

Total risk-based capital ratio (1)
13.84

 
12.74

 
13.04

 
13.29

 
13.13

Non-regulatory capital data:
 
 
 
 
 
 
 
 
 
Tangible common equity / RWA ratio (1)
9.69

 
9.32

 
9.62

 
9.83

 
9.58

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

16













Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data
(Unaudited)
Quarterly common stock summary
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,

2020
 
2020
 
2019
 
2019
 
2019
Dividends, per share
 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
0.15

 
$
0.15

 
$
0.15

 
$
0.15

 
$
0.14

Common shares outstanding
 
 
 
 
 
 
 
 
 
Average - basic
1,016

 
1,018

 
1,029

 
1,035

 
1,045

Average - diluted
1,029

 
1,035

 
1,047

 
1,051

 
1,060

Ending
1,017

 
1,014

 
1,020

 
1,033

 
1,038

Tangible book value per common share (1)
$
8.32

 
$
8.28

 
$
8.25

 
$
8.25

 
$
7.97

Common share repurchases
 
 
 
 
 
 
 
 
 
Number of shares repurchased
—

 
7

 
13

 
5

 
11

Non-regulatory capital
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(dollar amounts in millions)
2020
 
2020
 
2019
 
2019
 
2019
Calculation of tangible equity / asset ratio:
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
12,314

 
$
11,769

 
$
11,795

 
$
11,909

 
$
11,668

Less: goodwill
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
Less: other intangible assets
(211
)
 
(222
)
 
(232
)
 
(244
)
 
(257
)
Add: related deferred tax liability (1)
44

 
47

 
49

 
51

 
54

Total tangible equity
10,157

 
9,604

 
9,622

 
9,726

 
9,475

Less: preferred equity
(1,697
)
 
(1,203
)
 
(1,203
)
 
(1,203
)
 
(1,203
)
Total tangible common equity
$
8,460

 
$
8,401

 
$
8,419

 
$
8,523

 
$
8,272

Total assets
$
118,425

 
$
113,897

 
$
109,002

 
$
108,735

 
$
108,247

Less: goodwill
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
 
(1,990
)
Less: other intangible assets
(211
)
 
(222
)
 
(232
)
 
(244
)
 
(257
)
Add: related deferred tax liability (1)
44

 
47

 
49

 
51

 
54

Total tangible assets
$
116,268

 
$
111,732

 
$
106,829

 
$
106,552

 
$
106,054

Tangible equity / tangible asset ratio
8.74
%
 
8.60
%
 
9.01
%
 
9.13
%
 
8.93
%
Tangible common equity / tangible asset ratio
7.28

 
7.52

 
7.88

 
8.00

 
7.80

Other data:
 
 
 
 
 
 
 
 
 
Number of employees (Average full-time equivalent)
15,703

 
15,386

 
15,495

 
15,659

 
15,780

Number of domestic full-service branches (2)
839

 
839

 
868

 
868

 
868

ATM Count
1,344

 
1,434

 
1,448

 
1,442

 
1,687

(1)
Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.
(2)
Includes Regional Banking and The Huntington Private Client Group offices.




17













Huntington Bancshares Incorporated
Consolidated Year To Date Average Balance Sheets
(Unaudited)
 
YTD Average Balances (1)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions)
2020
 
2019
 
Amount
 
Percent
Assets
 
 
 
 
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
2,047

 
$
510

 
$
1,537

 
301
 %
Interest-bearing deposits in banks
159

 
122

 
37

 
30

Securities:
 
 
 
 
 
 


Trading account securities
67

 
149

 
(82
)
 
(55
)
Available-for-sale securities:
 
 
 
 


 


Taxable
11,425

 
10,626

 
799

 
8

Tax-exempt
2,740

 
3,008

 
(268
)
 
(9
)
Total available-for-sale securities
14,165


13,634


531

 
4

Held-to-maturity securities - taxable
9,613

 
8,713

 
900

 
10

Other securities
460

 
501

 
(41
)
 
(8
)
Total securities
24,305


22,997


1,839

 
6

Loans held for sale
952

 
717

 
235

 
33

Loans and leases: (2)
 
 
 
 
 
 


Commercial:
 
 
 
 
 
 


Commercial and industrial
33,066

 
30,595

 
2,471

 
8

Commercial real estate:
 
 
 
 
 
 


Construction
1,183

 
1,171

 
12

 
1

Commercial
5,726

 
5,710

 
16

 
—

Commercial real estate
6,909


6,881


28

 
—

Total commercial
39,975


37,476


2,499

 
7

Consumer:
 
 
 
 
 
 


Automobile
12,803

 
12,290

 
513

 
4

Home equity
8,961

 
9,561

 
(600
)
 
(6
)
Residential mortgage
11,427

 
10,899

 
528

 
5

RV and marine
3,648

 
3,355

 
293

 
9

Other consumer
1,133

 
1,273

 
(140
)
 
(11
)
Total consumer
37,972


37,378


594

 
2

Total loans and leases
77,947


74,854


3,093

 
4

Allowance for loan and lease losses
(1,398
)
 
(779
)
 
(619
)
 
(79
)
Net loans and leases
76,549

 
74,075

 
2,474

 
3

Total earning assets
105,410


99,200

 
6,210

 
6

Cash and due from banks
1,106

 
844

 
262

 
31

Intangible assets
2,211

 
2,258

 
(47
)
 
(2
)
All other assets
6,840

 
5,972

 
868

 
15

Total assets
$
114,169

 
$
107,495

 
6,674

 
6
 %
Liabilities and shareholders’ equity
 
 
 
 
 
 


Interest-bearing deposits:
 
 
 
 
 
 


Demand deposits - interest-bearing
$
22,540

 
$
19,746

 
$
2,794

 
14
 %
Money market deposits
25,213

 
23,121

 
2,092

 
9

Savings and other domestic deposits
10,120

 
10,222

 
(102
)
 
(1
)
Core certificates of deposit (3)
3,028

 
5,955

 
(2,927
)
 
(49
)
Other domestic deposits of $250,000 or more
720

 
323

 
397

 
123

Brokered deposits and negotiable CDs
3,499

 
3,042

 
457

 
15

Total interest-bearing deposits
65,120


62,409


2,711

 
4

Short-term borrowings
2,105

 
2,745

 
(640
)
 
(23
)
Long-term debt
9,939

 
8,946

 
993

 
11

Total interest-bearing liabilities
77,164

 
74,100

 
3,064

 
4

Demand deposits - noninterest-bearing
22,857

 
19,833

 
3,024

 
15

All other liabilities
2,358

 
2,245

 
113

 
5

Shareholders’ equity
11,790

 
11,317

 
473

 
4

Total liabilities and shareholders’ equity
$
114,169

 
$
107,495

 
$
6,674

 
6
 %
(1)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)
Includes nonaccrual loans.
(3)
Includes consumer certificates of deposit of $250,000 or more.


18













Huntington Bancshares Incorporated
Consolidated Year To Date Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
 
YTD Interest Income / Expense
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Assets
 
 
 
Interest-bearing deposits in Federal Reserve Bank
$
3

 
$
6

Interest-bearing deposits in banks
1

 
1

Securities:
 
 
 
Trading account securities
1

 
2

Available-for-sale securities:
 
 
 
Taxable
141

 
148

Tax-exempt
42

 
55

Total available-for-sale securities
183

 
203

Held-to-maturity securities - taxable
117

 
110

Other securities
3

 
10

Total securities
304


325

Loans held for sale
16

 
14

Loans and leases:
 
 
 
Commercial:
 
 
 
Commercial and industrial
641

 
748

Commercial real estate:
 
 
 
Construction
25

 
33

Commercial
99

 
142

Commercial real estate
124

 
175

Total commercial
765

 
923

Consumer:
 
 
 
Automobile
251

 
243

Home equity
189

 
264

Residential mortgage
206

 
210

RV and marine
87

 
82

Other consumer
66

 
84

Total consumer
799

 
883

Total loans and leases
1,564


1,806

Total earning assets
$
1,888


$
2,152

Liabilities
 
 
 
Interest-bearing deposits:
 
 
 
Demand deposits - interest-bearing
$
27

 
$
55

Money market deposits
75

 
126

Savings and other domestic deposits
7

 
12

Core certificates of deposit (3)
26

 
63

Other domestic deposits of $250,000 or more
6

 
3

Brokered deposits and negotiable CDs
11

 
36

Total interest-bearing deposits
152

 
295

Short-term borrowings
13

 
33

Long-term debt
130

 
176

Total interest-bearing liabilities
295

 
504

Net interest income
$
1,593

 
$
1,648

(1)
Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.
(2)
Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Includes consumer certificates of deposit of $250,000 or more.

19













Huntington Bancshares Incorporated
Consolidated Year To Date Net Interest Margin - Yield
(Unaudited)
 
YTD Average Rates
 
Six Months Ended June 30,
Fully-taxable equivalent basis (1)
2020
 
2019
Assets
 
 
 
Interest-bearing deposits in Federal Reserve Bank
0.26
%
 
2.39
%
Interest-bearing deposits in banks
0.89

 
1.93

Securities:
 
 
 
Trading account securities
2.86

 
1.97

Available-for-sale securities:
 
 
 
Taxable
2.46

 
2.78

Tax-exempt
3.03

 
3.68

Total available-for-sale securities
2.57

 
2.98

Held-to-maturity securities - taxable
2.44

 
2.53

Other securities
1.30

 
4.01

Total securities
2.50

 
2.82

Loans held for sale
3.30

 
4.04

Loans and leases: (3)
 
 
 
Commercial:
 
 
 
Commercial and industrial
3.86

 
4.87

Commercial real estate:
 
 
 
Construction
4.19

 
5.58

Commercial
3.45

 
4.94

Commercial real estate
3.58

 
5.05

Total commercial
3.81

 
4.90

Consumer:
 
 
 
Automobile
3.95

 
3.98

Home equity
4.24

 
5.57

Residential mortgage
3.60

 
3.85

RV and marine
4.81

 
4.95

Other consumer
11.77

 
13.27

Total consumer
4.23

 
4.75

Total loans and leases
4.01

 
4.83

Total earning assets
3.60
%
 
4.38
%
Liabilities
 
 
 
Interest-bearing deposits:
 
 
 
Demand deposits - interest-bearing
0.24
%
 
0.57
%
Money market deposits
0.60

 
1.10

Savings and other domestic deposits
0.14

 
0.23

Core certificates of deposit (4)
1.71

 
2.13

Other domestic deposits of $250,000 or more
1.81

 
1.87

Brokered deposits and negotiable CDs
0.61

 
2.39

Total interest-bearing deposits
0.47

 
0.95

Short-term borrowings
1.26

 
2.41

Long-term debt
2.64

 
3.95

Total interest-bearing liabilities
0.77

 
1.37

Demand deposits - noninterest-bearing
—

 
—

Net interest rate spread
2.83

 
3.01

Impact of noninterest-bearing funds on margin
0.21

 
0.34

Net interest margin
3.04
%
 
3.35
%
Commercial Loan Derivative Impact
 
 
 
 (Unaudited)
 
 
 
 
YTD Average Rates
 
Six Months Ended June 30,
Fully-taxable equivalent basis (1)
2020
 
2019
Commercial loans (2)(3)
3.60
%
 
4.91
 %
Impact of commercial loan derivatives
0.21

 
(0.01
)
Total commercial - as reported
3.81
%
 
4.90
 %
 
 
 
 
Average 1 Month LIBOR
0.90
%
 
2.47
 %
(1)
Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.
(2)
Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)
Includes the impact of nonaccrual loans.
(4)
Includes consumer certificates of deposit of $250,000 or more.

20













Huntington Bancshares Incorporated
Selected Year To Date Income Statement Data
(Unaudited)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions, except per share data)
2020
 
2019
 
Amount
 
Percent
Interest income
$
1,877

 
$
2,138

 
$
(261
)
 
(12
)%
Interest expense
295

 
504

 
(209
)
 
(41
)
Net interest income
1,582


1,634


(52
)
 
(3
)
Provision for credit losses
768

 
126

 
642

 
510

Net interest income after provision for credit losses
814

 
1,508

 
(694
)
 
(46
)
Service charges on deposit accounts
148

 
179

 
(31
)
 
(17
)
Card and payment processing income
117

 
119

 
(2
)
 
(2
)
Mortgage banking income
154

 
55

 
99

 
180

Trust and investment management services
92

 
87

 
5

 
6

Insurance income
48

 
44

 
4

 
9

Capital markets fees
64

 
56

 
8

 
14

Bank owned life insurance income
32

 
31

 
1

 
3

Gain on sale of loans and leases
17

 
26

 
(9
)
 
(35
)
Net (losses) gains on sales of securities
(1
)
 
(2
)
 
1

 
50

Other noninterest income
81

 
98

 
(17
)
 
(17
)
Total noninterest income
752

 
693

 
59

 
9

Personnel costs
814

 
822

 
(8
)
 
(1
)
Outside data processing and other services
175

 
170

 
5

 
3

Equipment
87

 
80

 
7

 
9

Net occupancy
79

 
80

 
(1
)
 
(1
)
Professional services
22

 
24

 
(2
)
 
(8
)
Amortization of intangibles
21

 
25

 
(4
)
 
(16
)
Marketing
14

 
18

 
(4
)
 
(22
)
Deposit and other insurance expense
18

 
16

 
2

 
13

Other noninterest expense
97

 
118

 
(21
)
 
(18
)
Total noninterest expense
1,327

 
1,353

 
(26
)
 
(2
)
Income before income taxes
239

 
848

 
(609
)
 
(72
)
Provision for income taxes
41

 
126

 
(85
)
 
(67
)
Net income
198

 
722

 
(524
)
 
(73
)
Dividends on preferred shares
37

 
37

 
—

 
—

Net income applicable to common shares
$
161

 
$
685

 
$
(524
)
 
(76
)%
Average common shares - basic
1,017

 
1,046

 
(29
)
 
(3
)
Average common shares - diluted
1,032

 
1,063

 
(31
)
 
(3
)
Per common share
 
 
 
 
 
 


Net income - basic
$
0.16

 
$
0.66

 
$
(0.50
)
 
(76
)%
Net income - diluted
0.16

 
0.64

 
(0.48
)
 
(75
)
Cash dividends declared
0.30

 
0.28

 
0.02

 
7

Revenue - fully taxable equivalent (FTE)
 
 
 
 
 
 


Net interest income
$
1,582

 
$
1,634

 
$
(52
)
 
(3
)%
FTE adjustment (1)
11

 
14

 
(3
)
 
(21
)
Net interest income
1,593

 
1,648

 
(55
)
 
(3
)
Noninterest income
752

 
693

 
59

 
9

Total revenue (1)
$
2,345

 
$
2,341

 
$
4

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

21













Huntington Bancshares Incorporated
Year To Date Mortgage Banking Noninterest Income
(Unaudited)
 
Six Months Ended June 30,
 
Change
(dollar amounts in millions)
2020
 
2019
 
Amount
 
Percent
Net origination and secondary marketing income
$
136

 
$
47

 
89

 
189
 %
Net mortgage servicing income
 
 
 
 


 


          Loan servicing income
30

 
29

 
1

 
3

          Amortization of capitalized servicing
(21
)
 
(19
)
 
(2
)
 
(11
)
     Operating income
9

 
10

 
(1
)
 
(10
)
          MSR valuation adjustment (1)
(59
)
 
(29
)
 
(30
)
 
(103
)
          Gains (losses) due to MSR hedging
63

 
24

 
39

 
163

     Net MSR risk management
4

 
(5
)
 
9

 
—

Total net mortgage servicing income
$
13

 
$
5

 
$
8

 
160
 %
All other
5

 
3

 
2

 
67

Mortgage banking income
$
154

 
$
55

 
$
99

 
180
 %

 
 
 
 


 


Mortgage origination volume
$
5,938

 
$
3,157

 
$
2,781

 
88
 %
Mortgage origination volume for sale
3,677

 
1,937

 
1,740

 
90

 
 
 
 
 


 


Third party mortgage loans serviced (2)
23,184

 
21,486

 
1,698

 
8

Mortgage servicing rights (2)
172

 
192

 
(20
)
 
(10
)
MSR % of investor servicing portfolio
0.74
%
 
0.90
%
 
(0.16
)%
 
(18
)%
(1)
The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)
At period end.

22













Huntington Bancshares Incorporated
Year To Date Credit Reserves Analysis
(Unaudited)
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Allowance for loan and lease losses, beginning of period
$
783

 
$
772

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)
$
391

 
$
—

Loan and lease losses
(259
)
 
(167
)
Recoveries of loans previously charged off
35

 
48

Net loan and lease losses
(224
)
 
(119
)
Provision for loan and lease losses
752

 
121

Allowance for loan and lease losses, end of period
1,702

 
774

Allowance for unfunded loan commitments and letters of credit, beginning of period
$
104

 
$
96

Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)
2

 
—

Provision for (reduction in) unfunded loan commitments and letters of credit losses
16

 
5

Unfunded commitment losses
(3
)
 
—

Allowance for unfunded loan commitments and letters of credit, end of period
119

 
101

Total allowance for credit losses
$
1,821

 
$
875

Allowance for loan and lease losses (ALLL) as % of:
 
 
 
Total loans and leases
2.12
%
 
1.03
%
Nonaccrual loans and leases (NALs)
263

 
182

Nonperforming assets (NPAs)
239

 
168

Total allowance for credit losses (ACL) as % of:
 
 
 
Total loans and leases
2.27
%
 
1.17
%
Nonaccrual loans and leases (NALs)
281

 
206

Nonperforming assets (NPAs)
255

 
190


23













Huntington Bancshares Incorporated
Year To Date Net Charge-Off Analysis
(Unaudited)
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Net charge-offs by loan and lease type:
 
 
 
Commercial:
 
 
 
Commercial and industrial
$
164

 
$
52

Commercial real estate:
 
 
 
Construction
1

 
(1
)
Commercial
(2
)
 
—

Commercial real estate
(1
)
 
(1
)
Total commercial
163

 
51

Consumer:
 
 
 
Automobile
17

 
15

Home equity
5

 
5

Residential mortgage
1

 
4

RV and marine
6

 
5

Other consumer
32

 
39

Total consumer
61

 
68

Total net charge-offs
$
224

 
$
119

 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
2020
 
2019
Net charge-offs - annualized percentages:
 
 
 
Commercial:
 
 
 
Commercial and industrial
0.99
 %
 
0.34
 %
Commercial real estate:
 
 
 
Construction
0.04

 
(0.09
)
Commercial
(0.04
)
 
—

Commercial real estate
(0.03
)
 
(0.02
)
Total commercial
0.81

 
0.27

Consumer:
 
 
 
Automobile
0.26

 
0.24

Home equity
0.14

 
0.10

Residential mortgage
0.02

 
0.08

RV and marine
0.32

 
0.32

Other consumer
5.66

 
6.08

Total consumer
0.33

 
0.36

Net charge-offs as a % of average loans
0.58
 %
 
0.32
 %

24













Huntington Bancshares Incorporated
Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
 
June 30,
(dollar amounts in millions)
2020
 
2019
Nonaccrual loans and leases (NALs):
 
 
 
Commercial and industrial
$
485

 
$
281

Commercial real estate
28

 
17

Automobile
8

 
4

Home equity
59

 
60

Residential mortgage
66

 
62

RV and marine
2

 
1

Other consumer
—

 
—

Total nonaccrual loans and leases
648

 
425

Other real estate, net:
 
 
 
Residential
5

 
10

Commercial
2

 
4

Total other real estate, net
7

 
14

Other NPAs (1)
58

 
21

Total nonperforming assets (3)
$
713

 
$
460

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

 
0.61


 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Nonperforming assets, beginning of period
$
498

 
$
387

New nonperforming assets
553

 
335

Returns to accruing status
(43
)
 
(49
)
Loan and lease losses
(152
)
 
(80
)
Payments
(133
)
 
(87
)
Sales and held-for-sale transfers
(10
)
 
(46
)
Nonperforming assets, end of period (2)
$
713

 
$
460

(1)
Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)
Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(3)
Nonaccruing troubled debt restructured loans are included in the total nonperforming assets balance.

25













Huntington Bancshares Incorporated
Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans
(Unaudited)
 
Six Months Ended June 30,
(dollar amounts in millions)
2020
 
2019
Accruing loans and leases past due 90+ days:
 
 
 
Commercial and industrial
$
13

 
$
5

Commercial real estate
—

 
—

Automobile
8

 
7

Home equity
10

 
15

Residential mortgage (excluding loans guaranteed by the U.S. Government)
17

 
27

RV and marine
2

 
1

Other consumer
3

 
5

Total, excl. loans guaranteed by the U.S. Government
53

 
60

Add: loans guaranteed by U.S. Government
141

 
92

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government
$
194

 
$
152

Ratios:
 
 
 
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.07
%
 
0.08
%
Guaranteed by U.S. Government, as a percent of total loans and leases
0.18

 
0.12

Including loans guaranteed by the U.S. Government, as a percent of total loans and leases
0.24

 
0.20

Accruing troubled debt restructured loans:
 
 
 
Commercial and industrial
$
192

 
$
245

Commercial real estate
35

 
48

Automobile
52

 
37

Home equity
209

 
241

Residential mortgage
229

 
221

RV and marine
6

 
2

Other consumer
10

 
10

Total accruing troubled debt restructured loans
$
733

 
$
804

Nonaccruing troubled debt restructured loans:
 
 
 
Commercial and industrial
$
169

 
$
88

Commercial real estate
3

 
6

Automobile
2

 
3

Home equity
26

 
26

Residential mortgage
43

 
43

RV and marine
1

 
1

Other consumer
—

 
—

Total nonaccruing troubled debt restructured loans
$
244

 
$
167






26