HBAN 8-K
Huntington Bancshares Inc /Md/ (HBAN)
8-K
2022-01-21
For: 2022-01-21
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Added on
April 12, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 21, 2022
______________________________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________________________________________________
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
Registrant's address: 41 South High Street , Columbus , Ohio 43287
Registrant’s telephone number, including area code: (614 ) 480-2265
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
_______________________________________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| Title of class | Trading Symbol(s) | Name of exchange on which registered | ||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§24012b-2). | |||||||||||||||||
| Emerging growth company | |||||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | |||||||||||||||||
Item 2.02. Results of Operations and Financial Condition.
On January 21, 2022, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended December 31, 2021. Also on January 21, 2022, 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 January 21, 2022, at 8:30 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 #13725942. 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 January 28, 2022 at (877) 660-6853 or (201) 612-7415 conference ID 13725942.
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 related variants and mutations and their 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; the possibility that the anticipated benefits of the transaction with TCF are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Huntington does business; and other factors that may affect the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2020 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarter ended March 31, 2021, June 30, 2021, and September 30, 2021, each of which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
The information contained or incorporated by reference in Item 2.02 of this Form 8-K shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Item 9.01. Financial Statements and Exhibits.
The exhibits referenced below shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
(d)Exhibits.
Exhibit 99.1 – News release of Huntington Bancshares Incorporated, dated January 21, 2022.
Exhibit 99.2 – Quarterly Financial Supplement, December 31, 2021.
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: | January 21, 2022 | By: | /s/ Zachary Wasserman | ||||||||||||||
| Zachary Wasserman | |||||||||||||||||
| Chief Financial Officer | |||||||||||||||||
Exhibit 99.1
January 21, 2022
Analysts: Tim Sedabres ([email protected]), 952.745.2766
Media: Allison Gabrys ([email protected]), 248.961.3978
HUNTINGTON BANCSHARES INCORPORATED REPORTS FULL YEAR 2021 AND FOURTH-QUARTER EARNINGS
Record Full-Year Revenue, Cost Savings on Track, and a 3% Increase in Period-End Commercial Loans - 4% Excluding PPP, Building Momentum for 2022
2021 Fourth-Quarter Highlights:
•Earnings per common share (EPS) for the quarter were $0.26, a decrease of $0.01 year-over-year. Excluding $0.10 per common share after tax of Notable Items, adjusted earnings per common share were $0.36.
•Executed on revenue initiatives to drive top-line growth.
•Noninterest expense decreased $68 million from the third quarter, or 5% to $1.2 billion. Excluding Notable Items, noninterest expense decreased $21 million, or 2%, reflecting realization of cost synergies related to the TCF acquisition.
•Completed TCF integration; branch and major systems conversions completed in mid-October; have converted more than 1.5 million customers to the Huntington platform and consolidated 188 branches since mid-June.
•Period-end total loans and leases increased $1.4 billion, or 1%, to $111.9 billion. Excluding the decrease in PPP loans, which included forgiveness payments from the US Small Business Administration (SBA) for $970 million, period-end total loans and leases increased $2.4 billion, or 2%.
◦Period-end total commercial loans increased $1.5 billion, or 3%, to $61.6 billion. Excluding the decrease in PPP loans, period-end total commercial loans increased $2.5 billion or 4%.
•Repurchased $150 million of common stock during the fourth quarter; $150 million remaining under the existing $800 million repurchase authorization.
•Increased the quarterly common stock dividend by a half-cent to $0.155 per common share, or $0.62 on an annualized basis.
2021 Full-Year Highlights Compared to Full-Year 2020:
•Total full-year revenue increased 24% to a record $6.0 billion, driven from the benefits of the TCF acquisition and organic growth.
•Net income attributable to Huntington Bancshares Incorporated increased 59% to $1.3 billion.
•Average loans and leases increased 22% to $97.0 billion.
•Completed the acquisition and integration of TCF, adding approximately $50 billion of total assets, creating a top 10 regional bank.
•Launched new and exciting products and services, including Standby Cash and Early Pay.
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•Maintained solid credit quality with net charge-offs of 0.22%.
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2021 fourth quarter of $401 million, an increase of $85 million from the year-ago quarter, impacted by the TCF acquisition. Earnings per common share for the 2021 fourth quarter were $0.26, down $0.01 from the year-ago quarter. Excluding $0.10 per common share after tax of Notable Items, adjusted earnings per common share were $0.36. Specifically, fourth-quarter results were negatively impacted by $177 million pretax of TCF acquisition-related expenses and $10 million pretax of expenses related to the exit of a strategic distribution relationship.
Return on average assets was 0.92%, return on average common equity was 8.7%, return on average tangible common equity was 13.2%, and adjusted return on average tangible common equity was 18.2%.
CEO Commentary:
"We are very pleased with our performance for the full year, which included record revenue," said Steve Steinour, chairman, president and CEO. "Thanks to the efforts of our colleagues, we successfully executed on the largest acquisition in our history, while delivering continued organic growth aligned with our strategic objectives."
"We delivered in the fourth quarter, finishing the year with record quarterly loan production, reflecting broad-based contributions across all commercial lending categories." said Steinour. "We enter 2022 increasingly confident in our outlook for growth in revenue and earnings. Commercial lending should fuel balance sheet growth in the coming year, while areas of strategic focus such as capital markets, cards and payments, and wealth management should bolster fee income. We remain committed to delivering sustainable revenue growth, annual positive operating leverage, and top-quartile returns."
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Table 1 – Earnings Performance Summary
| 2021 | 2020 | ||||||||||||||||||||||||||||
| (in millions, except per share data) | Fourth | Third | Second | First | Fourth | ||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
| Net income (loss) attributable to Huntington Bancshares Inc | $ | 401 | $ | 377 | $ | (15) | $ | 532 | $ | 316 | |||||||||||||||||||
| Diluted earnings (loss) per common share | 0.26 | 0.22 | (0.05) | 0.48 | 0.27 | ||||||||||||||||||||||||
| Return on average assets | 0.92 | % | 0.86 | % | (0.05) | % | 1.76 | % | 1.04 | % | |||||||||||||||||||
| Return on average common equity | 8.7 | 7.6 | (1.9) | 18.7 | 10.4 | ||||||||||||||||||||||||
| Return on average tangible common equity | 13.2 | 11.5 | (2.1) | 23.7 | 13.3 | ||||||||||||||||||||||||
| Net interest margin | 2.84 | 2.90 | 2.66 | 3.48 | 2.94 | ||||||||||||||||||||||||
| Efficiency ratio | 73.0 | 74.9 | 83.1 | 57.0 | 60.2 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 8.06 | $ | 8.09 | $ | 8.22 | $ | 8.64 | $ | 8.51 | |||||||||||||||||||
| Cash dividends declared per common share | 0.155 | 0.15 | 0.15 | 0.15 | 0.15 | ||||||||||||||||||||||||
| Average earning assets | $ | 159,056 | $ | 159,411 | $ | 127,421 | $ | 114,105 | $ | 112,222 | |||||||||||||||||||
| Average loans and leases | 109,852 | 109,931 | 87,437 | 80,261 | 81,116 | ||||||||||||||||||||||||
| Average core deposits | 138,008 | 137,816 | 109,433 | 95,815 | 92,325 | ||||||||||||||||||||||||
| Tangible common equity / tangible assets ratio | 6.88 | % | 6.95 | % | 7.15 | % | 7.11 | % | 7.16 | % | |||||||||||||||||||
| Common equity Tier 1 risk-based capital ratio | 9.33 | 9.57 | 9.98 | 10.32 | 10.00 | ||||||||||||||||||||||||
| NCOs as a % of average loans and leases | 0.12 | % | 0.20 | % | 0.28 | % | 0.32 | % | 0.55 | % | |||||||||||||||||||
| NAL ratio | 0.64 | 0.78 | 0.87 | 0.64 | 0.65 | ||||||||||||||||||||||||
| ACL as a % of total loans and leases | 1.88 | 1.99 | 2.08 | 2.17 | 2.29 | ||||||||||||||||||||||||
Table 2 lists certain items that we believe are important to understanding corporate performance and trends (see Basis of Presentation). There were two Notable Items in the 2021 fourth quarter: $177 million of TCF acquisition-related pretax expense, and $10 million pretax of expense related to the exit of a strategic distribution relationship. There was one Notable Item in the 2021 third quarter: $234 million of TCF acquisition-related pretax expense. There were two Notable Items in the 2021 second quarter: $269 million of TCF acquisition-related pretax expense and $294 million of TCF acquisition CECL initial provision ("double count"1) expense.
1 "Double count" refers to the additional gross up to the ACL via provision expense for the non-PCD loans and acquired unfunded lending commitments
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Table 2 – Notable Items Influencing Earnings
| Three Months Ended | Pre-Tax Impact | After-Tax Impact | |||||||||||||||||||||||||||
| ($ in millions, except per share) | Amount | Amount (1) | EPS (2) | ROTCE (3) | |||||||||||||||||||||||||
| December 31, 2021 - net income | $ | 401 | $ | 0.26 | 13.2 | % | |||||||||||||||||||||||
| • | TCF acquisition-related expenses | $ | (177) | $ | (139) | $ | (0.09) | (4.7) | |||||||||||||||||||||
| • | Exit of strategic distribution relationship | (10) | $ | (8) | $ | (0.01) | (0.3) | ||||||||||||||||||||||
| September 30, 2021 – net income | $ | 377 | $ | 0.22 | 11.5 | % | |||||||||||||||||||||||
| • | TCF acquisition-related expenses | $ | (234) | $ | (192) | $ | (0.13) | (6.4) | |||||||||||||||||||||
| June 30, 2021 – net income | $ | (15) | $ | (0.05) | (2.1) | % | |||||||||||||||||||||||
| • | TCF acquisition-related expenses | $ | (269) | $ | (218) | $ | (0.19) | (9.0) | |||||||||||||||||||||
| • | TCF acquisition CECL initial provision expense ("double count") (4) | $ | (294) | $ | (239) | $ | (0.21) | (9.9) | |||||||||||||||||||||
| March 31, 2021 – net income | $ | 532 | $ | 0.48 | 23.7 | % | |||||||||||||||||||||||
| • | TCF acquisition-related net expenses | $ | (21) | $ | (17) | $ | (0.02) | (0.8) | |||||||||||||||||||||
(1)Favorable (unfavorable) impact on net income.
(2)EPS reflected on a fully diluted basis.
(3)Net income (loss) 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.
(4)Includes $234 million from non-Purchase Credit Deteriorated (non-PCD) loans and leases and $60 million from acquired unfunded lending commitments.
Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 3 – Net Interest Income and Net Interest Margin Performance Summary – Year-over-Year Increase in Average Earning Assets Drives Net Interest Income Growth
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | Fourth | Third | Second | First | Fourth | Change (%) | |||||||||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | |||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,132 | $ | 1,160 | $ | 838 | $ | 972 | $ | 825 | (2) | % | 37 | % | |||||||||||||||||||||||||||
| FTE adjustment | 6 | 7 | 6 | 6 | 5 | (14) | 20 | ||||||||||||||||||||||||||||||||||
| Net interest income - FTE | 1,138 | 1,167 | 844 | 978 | 830 | (2) | 37 | ||||||||||||||||||||||||||||||||||
| Noninterest income | 515 | 535 | 444 | 395 | 409 | (4) | 26 | ||||||||||||||||||||||||||||||||||
| Total revenue - FTE | $ | 1,653 | $ | 1,702 | $ | 1,288 | $ | 1,373 | $ | 1,239 | (3) | % | 33 | % | |||||||||||||||||||||||||||
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| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Change (bp) | ||||||||||||||||||||||||||||||||||||
| Yield / Cost | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Total earning assets | 2.96 | % | 3.02 | % | 2.96 | % | 3.11 | % | 3.13 | % | (6) | (17) | |||||||||||||||||||||||||||||
| Total loans and leases | 3.68 | 3.80 | 3.68 | 3.78 | 3.70 | (12) | (2) | ||||||||||||||||||||||||||||||||||
| Total securities | 1.49 | 1.52 | 1.59 | 1.67 | 1.87 | (3) | (38) | ||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 0.18 | 0.17 | 0.45 | (0.53) | 0.27 | 1 | (9) | ||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 0.05 | 0.05 | 0.06 | 0.06 | 0.08 | — | (3) | ||||||||||||||||||||||||||||||||||
| Net interest rate spread | 2.78 | 2.85 | 2.51 | 3.64 | 2.86 | (7) | (8) | ||||||||||||||||||||||||||||||||||
| Impact of noninterest-bearing funds on margin | 0.06 | 0.05 | 0.15 | (0.16) | 0.08 | 1 | (2) | ||||||||||||||||||||||||||||||||||
| Net interest margin | 2.84 | % | 2.90 | % | 2.66 | % | 3.48 | % | 2.94 | % | (6) | (10) | |||||||||||||||||||||||||||||
Fully-taxable equivalent (FTE) net interest income for the 2021 fourth quarter increased $308 million, or 37%, from the 2020 fourth quarter. This increase reflected the benefit of a $46.8 billion, or 42%, increase in average earning assets, partially offset by a 10 basis point decrease in the FTE net interest margin (NIM) to 2.84%. Net interest income in the 2021 fourth quarter included $25 million of income from purchase accounting accretion and $20 million of accelerated PPP loan fees recognized upon receipt of forgiveness payments. The year-over-year decreases in average earning asset yields and average liability costs reflected the impact of lower interest rates and changes in balance sheet mix, including elevated deposits at the Federal Reserve Bank.
Compared to the 2021 third quarter, FTE net interest income decreased $29 million, or 2%, reflecting 6 basis points of NIM compression. The net interest income decrease primarily reflected sequential decreases in income from PPP forgiveness and purchase accounting accretion.
Table 4 – Average Earning Assets – TCF Acquisition, Elevated Deposits at the Federal Reserve Bank Drive Year-Over-Year Earning Asset Growth
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| ($ in billions) | Fourth | Third | Second | First | Fourth | Change (%) | |||||||||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 40.6 | $ | 40.6 | $ | 34.1 | $ | 32.2 | $ | 32.5 | — | % | 25 | % | |||||||||||||||||||||||||||
| Commercial real estate | 14.6 | 14.7 | 9.1 | 7.2 | 7.2 | (1) | 103 | ||||||||||||||||||||||||||||||||||
| Lease financing | 4.9 | 5.0 | 2.8 | 2.2 | 2.3 | (1) | 111 | ||||||||||||||||||||||||||||||||||
| Total commercial | 60.1 | 60.3 | 46.0 | 41.5 | 42.0 | — | 43 | ||||||||||||||||||||||||||||||||||
| Residential mortgage | 19.0 | 18.9 | 13.8 | 12.1 | 12.1 | — | 57 | ||||||||||||||||||||||||||||||||||
| Automobile | 13.4 | 13.2 | 12.8 | 12.7 | 12.9 | 1 | 4 | ||||||||||||||||||||||||||||||||||
| Home equity | 10.7 | 11.1 | 9.4 | 8.8 | 8.9 | (3) | 21 | ||||||||||||||||||||||||||||||||||
| RV and marine | 5.0 | 5.0 | 4.4 | 4.2 | 4.2 | 1 | 21 | ||||||||||||||||||||||||||||||||||
| Other consumer | 1.7 | 1.5 | 1.0 | 1.0 | 1.0 | 14 | 61 | ||||||||||||||||||||||||||||||||||
| Total consumer | 49.8 | 49.7 | 41.4 | 38.7 | 39.1 | — | 27 | ||||||||||||||||||||||||||||||||||
| Total loans and leases | 109.9 | 109.9 | 87.4 | 80.3 | 81.1 | — | 35 | ||||||||||||||||||||||||||||||||||
| Total securities | 40.1 | 36.0 | 30.7 | 26.2 | 24.1 | 11 | 66 | ||||||||||||||||||||||||||||||||||
| Held-for-sale and other earning assets | 9.1 | 13.5 | 9.2 | 7.6 | 7.0 | (33) | 30 | ||||||||||||||||||||||||||||||||||
| Total earning assets | $ | 159.1 | $ | 159.4 | $ | 127.4 | $ | 114.1 | $ | 112.2 | — | % | 42 | % | |||||||||||||||||||||||||||
See Page 7 of Quarterly Financial Supplement for additional detail.
Average earning assets for the 2021 fourth quarter increased $46.8 billion, or 42%, from the year-ago quarter, primarily reflecting a $28.7 billion, or 35%, increase in average total loans and leases, a $16.0 billion, or
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66%, increase in average securities, and a $1.7 billion, or 31%, increase in interest-bearing deposits at the Federal Reserve Bank. Average loan balance increases across categories reflect the impact of the TCF acquisition, except for other consumer. Average automobile loans increased $498 million, or 4%, reflecting organic growth and the impact of the TCF acquisition. Other consumer loans increased $629 million, or 61%, primarily as a result of our new Early Pay product. Average commercial & industrial (C&I) loans increased $8.1 billion, or 25%, partially offset by a $4.1 billion decrease in average PPP loans primarily related to forgiveness.
Compared to the 2021 third quarter, average earning assets decreased $355 million primarily reflecting a $4.3 billion, or 37% decrease in interest-bearing deposits at the Federal Reserve Bank, partially offset by a $4.1 billion, or 11%, increase in average securities primarily reflecting the redeployment of excess liquidity into securities.
Huntington received forgiveness payments for $970 million of PPP loans during the 2021 fourth quarter compared to forgiveness payments for $1.7 billion of PPP loans during the 2021 third quarter.
Table 5 – Average Liabilities –TCF Acquisition, Demand Deposits Drive Robust Year-over-Year Growth in Core Deposits
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in billions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Demand deposits - noninterest-bearing | $ | 43.4 | $ | 44.6 | $ | 34.6 | $ | 29.1 | $ | 28.1 | (3) | % | 54 | % | |||||||||||||||||||||||||||
| Demand deposits - interest-bearing | 38.4 | 35.7 | 29.7 | 26.8 | 25.1 | 8 | 53 | ||||||||||||||||||||||||||||||||||
| Total demand deposits | 81.8 | 80.3 | 64.3 | 55.9 | 53.2 | 2 | 54 | ||||||||||||||||||||||||||||||||||
| Money market deposits | 32.4 | 33.3 | 28.1 | 26.2 | 26.1 | (3) | 24 | ||||||||||||||||||||||||||||||||||
| Savings and other domestic deposits | 20.9 | 20.9 | 15.2 | 12.3 | 11.5 | — | 82 | ||||||||||||||||||||||||||||||||||
| Core certificates of deposit | 2.9 | 3.3 | 1.8 | 1.4 | 1.5 | (12) | 97 | ||||||||||||||||||||||||||||||||||
| Total core deposits | 138.0 | 137.8 | 109.4 | 95.8 | 92.3 | 0 | 49 | ||||||||||||||||||||||||||||||||||
| Other domestic deposits of $250,000 or more | 0.5 | 0.6 | 0.3 | 0.1 | 0.1 | (22) | 225 | ||||||||||||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 3.8 | 3.9 | 3.0 | 3.4 | 4.1 | (2) | (6) | ||||||||||||||||||||||||||||||||||
| Total deposits | $ | 142.3 | $ | 142.3 | $ | 112.7 | $ | 99.3 | $ | 96.5 | — | % | 47 | % | |||||||||||||||||||||||||||
| Short-term borrowings | $ | 0.3 | $ | 0.3 | $ | 0.2 | $ | 0.2 | $ | 0.2 | 8 | % | 43 | % | |||||||||||||||||||||||||||
| Long-term debt | 7.7 | 7.6 | 6.9 | 7.8 | 8.8 | 1 | (13) | ||||||||||||||||||||||||||||||||||
| Total debt | $ | 8.0 | $ | 7.9 | $ | 7.1 | $ | 8.0 | $ | 9.0 | 1 | % | (11) | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 107.0 | $ | 105.6 | $ | 85.2 | $ | 78.2 | $ | 77.5 | 1 | % | 38 | % | |||||||||||||||||||||||||||
See Page 7 of Quarterly Financial Supplement for additional detail.
Average total interest-bearing liabilities for the 2021 fourth quarter increased $29.5 billion, or 38%, from the year-ago quarter. Average total deposits increased $45.7 billion, or 47%, while average total core deposits increased $45.7 billion, or 49%. Increases across categories reflect the impact of the TCF acquisition, in addition to elevated balances in core deposits largely related to residual government stimulus balances and improved retention. Average total debt decreased $1.0 billion, or 11%, primarily reflecting the maturity and repayment of $3.9 billion of long-term debt over the past five quarters due to strong core deposit growth, partly offset by the acquisition of $1.5 billion of long-term debt from TCF in the 2021 second quarter and a subordinated debt issuance of $500 million in the 2021 third quarter.
Compared to the 2021 third quarter, average total interest-bearing liabilities increased $1.3 billion, or 1%. Within total core deposits, average total demand deposits increased $1.5 billion, or 2%. Average interest-bearing demand deposits increased $2.8 billion, or 8%, primarily reflecting an increase in both commercial and consumer balances and product conversion related to the TCF acquisition. Average noninterest-bearing demand deposits
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decreased $1 billion, or 3%, as part of product conversion related to the TCF acquisition. Average money market deposits decreased $881 million, or 3%, driven primarily by lower commercial balances.
Noninterest Income
Table 6 – Noninterest Income – TCF Acquisition, Organic Growth Drive Year-over-year Growth in Noninterest Income
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 101 | $ | 114 | $ | 88 | $ | 69 | $ | 78 | (11) | % | 29 | % | |||||||||||||||||||||||||||
| Card and payment processing income | 93 | 96 | 80 | 65 | 65 | (3) | 43 | ||||||||||||||||||||||||||||||||||
| Mortgage banking income | 61 | 81 | 67 | 100 | 90 | (25) | (32) | ||||||||||||||||||||||||||||||||||
| Trust and investment management services | 63 | 61 | 56 | 52 | 49 | 3 | 29 | ||||||||||||||||||||||||||||||||||
| Capital markets fees | 47 | 40 | 35 | 29 | 34 | 18 | 38 | ||||||||||||||||||||||||||||||||||
| Insurance income | 28 | 25 | 25 | 27 | 25 | 12 | 12 | ||||||||||||||||||||||||||||||||||
| Leasing revenue | 41 | 42 | 12 | 4 | 6 | (2) | 583 | ||||||||||||||||||||||||||||||||||
| Bank owned life insurance income | 22 | 15 | 16 | 16 | 14 | 47 | 57 | ||||||||||||||||||||||||||||||||||
| Gain on sale of loans | 1 | 2 | 3 | 3 | 13 | (50) | (92) | ||||||||||||||||||||||||||||||||||
| Net gains (losses) on sales of securities | (1) | — | 10 | — | — | NM | NM | ||||||||||||||||||||||||||||||||||
| Other noninterest income | 59 | 59 | 52 | 30 | 35 | — | 69 | ||||||||||||||||||||||||||||||||||
| Total noninterest income | $ | 515 | $ | 535 | $ | 444 | $ | 395 | $ | 409 | (4) | % | 26 | % | |||||||||||||||||||||||||||
NM - Not Meaningful
See Page 11 of Quarterly Financial Supplement for additional detail.
Total noninterest income for the 2021 fourth quarter increased $106 million, or 26%, from the year-ago quarter. Leasing revenue increased $35 million, primarily reflecting the addition of TCF leasing activities following the acquisition. Card and payment processing income increased $28 million, or 43%, reflecting higher interchange income that was primarily the result of the acquisition. Other noninterest income increased $24 million, or 69%, primarily reflecting $7 million of purchase accounting accretion from acquired unfunded loan commitments and increased amortization of upfront card-related contract renewal fees. Service charges on deposit accounts increased $23 million, or 29%, primarily due to the addition of TCF customers. Trust and investment management services increased $14 million, or 29%, reflecting positive equity market performance over the past 12 months, continued strong net asset flows, and the TCF acquisition. Capital markets fees increased $13 million, or 38%, primarily reflecting higher interest rate derivative fees. Bank owned life insurance income increased $8 million, or 57%, primarily reflecting higher benefit claims. Partially offsetting these increases, mortgage banking income decreased $29 million, or 32%, primarily reflecting lower secondary marketing spreads. Income from the gain on sale of loans decreased $12 million, or 92%, due to higher sales volume in the prior year quarter.
Compared to the 2021 third quarter, total noninterest income decreased $20 million, or 4%. Mortgage banking income decreased $20 million, or 25%, primarily reflecting lower secondary marketing spreads. Service charges on deposit accounts decreased $13 million, or 11%, primarily due to the conversion of TCF customers to Huntington's Fair Play product and service set. Partially offsetting these decreases capital markets fees increased $7 million, or 18%, primarily reflecting higher commodities derivative fees, while bank owned life insurance income increased $7 million, or 47% primarily reflecting higher benefit claims.
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Noninterest Expense
Table 7 – Noninterest Expense – TCF Acquisition, Related Notable Costs Drive Year-over-year Noninterest Expense
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Personnel costs | $ | 632 | $ | 643 | $ | 592 | $ | 468 | $ | 426 | (2) | % | 48 | % | |||||||||||||||||||||||||||
| Outside data processing and other services | 269 | 304 | 162 | 115 | 111 | (12) | 142 | ||||||||||||||||||||||||||||||||||
| Net occupancy | 68 | 95 | 72 | 42 | 39 | (28) | 74 | ||||||||||||||||||||||||||||||||||
| Equipment | 68 | 79 | 55 | 46 | 49 | (14) | 39 | ||||||||||||||||||||||||||||||||||
| Professional services | 22 | 26 | 48 | 17 | 21 | (15) | 5 | ||||||||||||||||||||||||||||||||||
| Marketing | 35 | 25 | 15 | 14 | 15 | 40 | 133 | ||||||||||||||||||||||||||||||||||
| Deposit and other insurance expense | 18 | 17 | 8 | 8 | 8 | 6 | 125 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 14 | 13 | 11 | 10 | 10 | 8 | 40 | ||||||||||||||||||||||||||||||||||
| Lease financing equipment depreciation | 17 | 19 | 5 | — | — | (11) | NM | ||||||||||||||||||||||||||||||||||
| Other noninterest expense | 78 | 68 | 104 | 73 | 77 | 15 | 1 | ||||||||||||||||||||||||||||||||||
| Total noninterest expense | $ | 1,221 | $ | 1,289 | $ | 1,072 | $ | 793 | $ | 756 | (5) | % | 62 | % | |||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Average full-time equivalent employees | 20.3 | 20.9 | 17.0 | 15.4 | 15.5 | (3) | % | 31 | % | ||||||||||||||||||||||||||||||||
NM - Not Meaningful
Table 8 - Impact of Notable Items
| 2021 | 2020 | ||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||
| Personnel costs | $ | 32 | $ | 36 | $ | 110 | $ | — | $ | — | |||||||||||||||||||
| Outside data processing and other services | 122 | 140 | 33 | 8 | — | ||||||||||||||||||||||||
| Net occupancy | 16 | 36 | 35 | 3 | — | ||||||||||||||||||||||||
| Equipment | 8 | 5 | 3 | 1 | — | ||||||||||||||||||||||||
| Professional services | 4 | 9 | 36 | 8 | — | ||||||||||||||||||||||||
| Marketing | 2 | 3 | — | — | — | ||||||||||||||||||||||||
| Other noninterest expense | 3 | 5 | 52 | 1 | — | ||||||||||||||||||||||||
| Total noninterest expense | $ | 187 | $ | 234 | $ | 269 | $ | 21 | $ | — | |||||||||||||||||||
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Table 9 - Adjusted Noninterest Expense (Non-GAAP)
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Change (%) | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | LQ | YOY | ||||||||||||||||||||||||||||||||||
| Personnel costs | $ | 600 | $ | 607 | $ | 482 | $ | 468 | $ | 426 | (1) | % | 41 | % | |||||||||||||||||||||||||||
| Outside data processing and other services | 147 | 164 | 129 | 107 | 111 | (10) | 32 | ||||||||||||||||||||||||||||||||||
| Net occupancy | 52 | 59 | 37 | 39 | 39 | (12) | 33 | ||||||||||||||||||||||||||||||||||
| Equipment | 60 | 74 | 52 | 45 | 49 | (19) | 22 | ||||||||||||||||||||||||||||||||||
| Professional services | 18 | 17 | 12 | 9 | 21 | 6 | (14) | ||||||||||||||||||||||||||||||||||
| Marketing | 33 | 22 | 15 | 14 | 15 | 50 | 120 | ||||||||||||||||||||||||||||||||||
| Deposit and other insurance expense | 18 | 17 | 8 | 8 | 8 | 6 | 125 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 14 | 13 | 11 | 10 | 10 | 8 | 40 | ||||||||||||||||||||||||||||||||||
| Lease financing equipment depreciation | 17 | 19 | 5 | — | — | (11) | NM | ||||||||||||||||||||||||||||||||||
| Other noninterest expense | 75 | 63 | 52 | 72 | 77 | 19 | (3) | ||||||||||||||||||||||||||||||||||
| Total adjusted noninterest expense | $ | 1,034 | $ | 1,055 | $ | 803 | $ | 772 | $ | 756 | (2) | % | 37 | % | |||||||||||||||||||||||||||
NM - Not Meaningful
Reported total noninterest expense for the 2021 fourth quarter increased $465 million, or 62%, from the year-ago quarter, primarily reflecting the TCF acquisition and $187 million of Notable Items. The following increases primarily reflect the TCF acquisition:
•a personnel cost increase of $206 million, or 48%, including $32 million of Notable Items,
•an outside data processing and other services increase of $158 million, or 142%, including $122 million of Notable Items and technology investments,
•a net occupancy increase of $29 million, or 74%, including $16 million of Notable Items,
•an equipment increase of $19 million, or 39%, including $8 million of Notable Items,
•a lease financing equipment depreciation increase of $17 million, and
•a deposit and other insurance expense increase of $10 million, or 125%.
In addition to the above, marketing expense increased $20 million, or 133%, reflecting an increase in acquisition and deepening spend in new markets.
Reported total noninterest expense decreased $68 million, or 5%, from the 2021 third quarter, reflecting a $47 million reduction in Notable Items to $187 million. Outside data processing and other services decreased $35 million, or 12%, reflecting an $18 million decrease in Notable Items from the prior quarter and elevated costs in the prior quarter related to TCF branch and major systems conversion. Net occupancy decreased $27 million, or 28%, reflecting a $20 million decrease in Notable Items from the prior quarter. Personnel costs decreased $11 million, or 2%, reflecting a $4 million decrease in Notable Items from the prior quarter and decreases in contract help expense. Equipment expense decreased $11 million, or 14%, primarily reflecting a decrease in software related costs and ATM maintenance contracts, partially offset by an increase of $3 million of Notable items. Partially offsetting these decreases, marketing increased $10 million, or 40%, primarily reflecting an increase in brand marketing in new markets.
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Credit Quality
Table 10 – Credit Quality Metrics – Reserve Release on Improving Credit, Economic Outlook
| 2021 | 2020 | ||||||||||||||||||||||||||||
| ($ in millions) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
| Total nonaccrual loans and leases | $ | 716 | $ | 861 | $ | 977 | $ | 516 | $ | 532 | |||||||||||||||||||
| Total other real estate, net | 9 | 7 | 7 | 2 | 4 | ||||||||||||||||||||||||
Other NPAs (1) | 25 | 25 | 30 | 26 | 27 | ||||||||||||||||||||||||
| Total nonperforming assets | 750 | 893 | 1,014 | 544 | 563 | ||||||||||||||||||||||||
| Accruing loans and leases past due 90+ days | 210 | 175 | 148 | 154 | 171 | ||||||||||||||||||||||||
| NPAs + accruing loans & leases past due 90+ days | $ | 960 | $ | 1,068 | $ | 1,162 | $ | 698 | $ | 734 | |||||||||||||||||||
NAL ratio (2) | 0.64 | % | 0.78 | % | 0.87 | % | 0.64 | % | 0.65 | % | |||||||||||||||||||
NPA ratio (3) | 0.67 | 0.81 | 0.91 | 0.68 | 0.69 | ||||||||||||||||||||||||
| (NPAs+90 days)/(Loans+OREO) | 0.86 | 0.97 | 1.04 | 0.87 | 0.90 | ||||||||||||||||||||||||
| Provision for credit losses | $ | (64) | $ | (62) | $ | 211 | $ | (60) | $ | 103 | |||||||||||||||||||
| Net charge-offs | 34 | 55 | 62 | 64 | 112 | ||||||||||||||||||||||||
| Net charge-offs / Average total loans | 0.12 | % | 0.20 | % | 0.28 | % | 0.32 | % | 0.55 | % | |||||||||||||||||||
| Allowance for loans and lease losses (ALLL) | $ | 2,030 | $ | 2,107 | $ | 2,218 | $ | 1,703 | $ | 1,814 | |||||||||||||||||||
| Allowance for unfunded lending commitments | 77 | 98 | 104 | 38 | 52 | ||||||||||||||||||||||||
| Allowance for credit losses (ACL) | $ | 2,107 | $ | 2,205 | $ | 2,322 | $ | 1,741 | $ | 1,866 | |||||||||||||||||||
| ALLL as a % of: | |||||||||||||||||||||||||||||
| Total loans and leases | 1.81 | % | 1.91 | % | 1.98 | % | 2.12 | % | 2.22 | % | |||||||||||||||||||
| NALs | 284 | 245 | 227 | 330 | 341 | ||||||||||||||||||||||||
| NPAs | 271 | 236 | 219 | 313 | 323 | ||||||||||||||||||||||||
| ACL as a % of: | |||||||||||||||||||||||||||||
| Total loans and leases | 1.88 | % | 1.99 | % | 2.08 | % | 2.17 | % | 2.29 | % | |||||||||||||||||||
| NALs | 294 | 256 | 238 | 338 | 351 | ||||||||||||||||||||||||
| NPAs | 281 | 247 | 229 | 320 | 332 | ||||||||||||||||||||||||
(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.
Overall asset quality metrics were impacted by the TCF acquisition on a year-over-year basis, but showed improvement quarter-over-quarter. Nonperforming assets (NPAs) increased to $750 million, or 0.67% of total loans and leases and OREO, from $563 million, or 0.69%, a year ago. Nonaccrual loans and leases (NALs) increased $184 million, or 35%, to $716 million, or 0.64% of total loans and leases. On a linked quarter basis, NALs decreased $145 million, or 17%, and NPAs decreased $143 million, or 16%. The linked quarter decrease in NALs was within both the commercial and consumer portfolios.
The provision for credit losses decreased $167 million year-over-year to a benefit of $64 million in the 2021 fourth quarter. Net charge-offs (NCOs) decreased $78 million year-over-year and $21 million quarter-over-quarter to $34 million. NCOs represented an annualized 0.12% of average loans and leases in the current quarter, down from 0.20% in the prior quarter and down from 0.55% in the year-ago quarter. Consumer NCOs in 2021 showed improvement year-over-year, and residential mortgage and home equity recorded net recoveries in the quarter. Commercial NCOs showed improvement year-over-year and on a linked quarter basis. We remain confident in the long-term credit performance of our loan portfolios.
The allowance for loan and lease losses (ALLL) increased $216 million from the year-ago quarter to $2.0 billion, or 1.81%, of total loans and leases, while the ALLL as a percentage of period-end total NALs decreased to 284% from 341% over the same period, both due to the impact of the TCF acquisition. The allowance for credit losses (ACL) increased by $241 million from the year-ago quarter to $2.1 billion, or 1.88%, of total loans and
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leases. On a linked quarter basis, the ACL decreased $98 million, driven by improving credit quality and an improving economic outlook. We believe levels of the ALLL and ACL are appropriate given the current level of problem loans and the economic outlook.
Capital
Table 11 – Capital Ratios – Ratios Remain within Targeted Operating Ranges
| 2021 | 2020 | |||||||||||||||||||||||||||||||
| ($ in billions) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||
| Tangible common equity / tangible assets ratio | 6.88 | % | 6.95 | % | 7.15 | % | 7.11 | % | 7.16 | % | ||||||||||||||||||||||
Common equity tier 1 risk-based capital ratio (1) | 9.33 | % | 9.57 | % | 9.98 | % | 10.32 | % | 10.00 | % | ||||||||||||||||||||||
Regulatory Tier 1 risk-based capital ratio (1) | 10.99 | % | 11.35 | % | 12.25 | % | 13.32 | % | 12.47 | % | ||||||||||||||||||||||
Regulatory Total risk-based capital ratio (1) | 13.13 | % | 13.57 | % | 14.15 | % | 15.25 | % | 14.46 | % | ||||||||||||||||||||||
Total risk-weighted assets (1) | $ | 131.3 | $ | 128.0 | $ | 126.2 | $ | 89.5 | $ | 88.9 | ||||||||||||||||||||||
(1)December 31, 2021 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. The 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 Page 16 of Quarterly Financial Supplement for additional detail.
The tangible common equity to tangible assets ratio was 6.88% at December 31, 2021, down 7 basis points from last quarter due primarily to share repurchases. Common Equity Tier 1 (CET1) risk-based capital ratio was 9.33%, down from 10.00% a year ago. The regulatory Tier 1 risk-based capital ratio was 10.99% compared to 12.47% at December 31, 2020. The decrease in regulatory capital ratios was driven by the repurchase of $650 million of common shares during 2021, cash dividends, offset by earnings and adjusted for the CECL transition. The balance sheet growth as a result of the TCF acquisition was largely offset by the net of goodwill and intangibles as both are deducted from capital in the ratio calculation. The regulatory Tier 1 risk-based capital and total risk-based capital ratios also reflect the issuance of $500 million of Series H preferred stock in the 2021 first quarter, the issuance of $175 million of Series I preferred stock in the 2021 second quarter, partially offset by the redemption of $600 million of Series D preferred stock on July 15, 2021 and $100 million of Series C preferred stock on October 15, 2021. Additionally, total risk-based capital ratio reflects the issuance of $558 million of subordinated notes in the 2021 third quarter.
During the 2021 fourth quarter, Huntington repurchased a total of $150 million of common stock at an average cost of $15.42 per share, as part of a repurchase authorization of $800 million of common shares within the four quarter period from the third quarter of 2021 through the second quarter of 2022. Purchases of common stock under the authorization may include open market purchases, privately negotiated transactions, and accelerated share repurchase programs.
Income Taxes
The provision for income taxes was $88 million in the 2021 fourth quarter compared to $59 million in the 2020 fourth quarter. The effective tax rates for the 2021 fourth quarter and 2020 fourth quarter were 18.0% and 15.8%, respectively. The variance between the 2021 fourth quarter and the 2020 fourth quarter provision for income taxes relates primarily to higher pretax income.
At December 31, 2021, we had a net federal deferred tax liability of $3 million and a net state deferred tax asset of $4 million.
Conference Call / Webcast Information
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Huntington’s senior management will host an earnings conference call on January 21, 2022, at 8:30 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 #13725942. 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 January 28, 2022 at (877) 660-6853 or (201) 612-7415; conference ID #13725942.
Please see the 2021 Fourth 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 $174 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates more than 1,100 branches in 12 states, with certain businesses operating in extended geographies. 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 related variants and mutations and their 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; the possibility that the anticipated benefits of the transaction with TCF are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Huntington does business; and other factors that may affect the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2020 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarter ended March 31, 2021, June 30, 2021, and September 30, 2021, each of which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of
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Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
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.
Rounding
Please note that columns of data in this document may not add due to rounding.
Notable Items
From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management at that time to be infrequent or short term in nature. We refer to such items as “Notable Items.” Management believes it is useful to consider certain financial metrics with and without Notable Items, in order to enable a better understanding of company results, increase comparability of period-to-period results, and to evaluate and forecast those results.
13
Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
December 31, 2021
Table of Contents
Quarterly Accruing Past Due Loans and Leases | |||||
Notes:
The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.
Fully-Taxable Equivalent Basis
Interest income, yields, and ratios on a FTE basis are considered non-GAAP financial measures. Management believes net interest income on a FTE basis provides a more accurate picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a federal statutory tax rate of 21%.
Non-Regulatory Capital Ratios
In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:
•Tangible common equity to tangible assets, and
•Tangible common equity to risk-weighted assets using Basel III definition.
These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.
Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure.
Huntington Bancshares Incorporated
Quarterly Key Statistics
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| (dollar amounts in millions, except per share data) | December 31, | September 30, | December 31, | Percent Changes vs. | ||||||||||||||||||||||||||||
| 2021 | 2021 | 2020 | 3Q21 | 4Q20 | ||||||||||||||||||||||||||||
Net interest income (2) | $ | 1,138 | $ | 1,167 | $ | 830 | (2) | % | 37 | % | ||||||||||||||||||||||
| FTE adjustment | (6) | (7) | (5) | 14 | (20) | |||||||||||||||||||||||||||
Net interest income | 1,132 | 1,160 | 825 | (2) | 37 | |||||||||||||||||||||||||||
| Provision for credit losses | (64) | (62) | 103 | (3) | (162) | |||||||||||||||||||||||||||
| Noninterest income | 515 | 535 | 409 | (4) | 26 | |||||||||||||||||||||||||||
| Noninterest expense | 1,221 | 1,289 | 756 | (5) | 62 | |||||||||||||||||||||||||||
| Income before income taxes | 490 | 468 | 375 | 5 | 31 | |||||||||||||||||||||||||||
| Provision for income taxes | 88 | 90 | 59 | (2) | 49 | |||||||||||||||||||||||||||
| Income after income taxes | 402 | 378 | 316 | 6 | 27 | |||||||||||||||||||||||||||
| Income attributable to non-controlling interest | 1 | 1 | — | — | 100 | |||||||||||||||||||||||||||
| Net income attributable to Huntington Bancshares Inc | 401 | 377 | 316 | 6 | 27 | |||||||||||||||||||||||||||
| Dividends on preferred shares | 28 | 29 | 35 | (3) | (20) | |||||||||||||||||||||||||||
| Impact of preferred stock redemption | (4) | 15 | — | (127) | (100) | |||||||||||||||||||||||||||
| Net income applicable to common shares | $ | 377 | $ | 333 | $ | 281 | 13 | % | 34 | % | ||||||||||||||||||||||
| Net income per common share - diluted | $ | 0.26 | $ | 0.22 | $ | 0.27 | 18 | % | (4) | % | ||||||||||||||||||||||
Cash dividends declared per common share | 0.155 | 0.15 | 0.15 | 3 | 3 | |||||||||||||||||||||||||||
Tangible book value per common share at end of period | 8.06 | 8.09 | 8.51 | — | (5) | |||||||||||||||||||||||||||
Number of common shares repurchased | 10 | 33 | — | (70) | 100 | |||||||||||||||||||||||||||
Average common shares - basic | 1,444 | 1,463 | 1,017 | (1) | 42 | |||||||||||||||||||||||||||
Average common shares - diluted | 1,471 | 1,487 | 1,036 | (1) | 42 | |||||||||||||||||||||||||||
Ending common shares outstanding | 1,438 | 1,446 | 1,017 | (1) | 41 | |||||||||||||||||||||||||||
Return on average assets | 0.92 | % | 0.86 | % | 1.04 | % | ||||||||||||||||||||||||||
Return on average common shareholders’ equity | 8.7 | 7.6 | 10.4 | |||||||||||||||||||||||||||||
Return on average tangible common shareholders’ equity (1) | 13.2 | 11.5 | 13.3 | |||||||||||||||||||||||||||||
Net interest margin (2) | 2.84 | 2.90 | 2.94 | |||||||||||||||||||||||||||||
Efficiency ratio (3) | 73.0 | 74.9 | 60.2 | |||||||||||||||||||||||||||||
| Effective tax rate | 18.0 | 19.0 | 15.8 | |||||||||||||||||||||||||||||
Average total assets | $ | 173,672 | $ | 173,833 | $ | 120,995 | — | 44 | ||||||||||||||||||||||||
Average earning assets | 159,056 | 159,411 | 112,222 | — | 42 | |||||||||||||||||||||||||||
Average loans and leases | 109,852 | 109,931 | 81,116 | — | 35 | |||||||||||||||||||||||||||
Average loans and leases - linked quarter annualized growth rate | (0.3) | % | 102.9 | % | 2.9 | % | ||||||||||||||||||||||||||
Average total deposits | $ | 142,303 | $ | 142,303 | $ | 96,564 | — | 47 | ||||||||||||||||||||||||
| Average core deposits (4) | 138,008 | 137,816 | 92,325 | — | 49 | |||||||||||||||||||||||||||
Average core deposits - linked quarter annualized growth rate | 0.6 | % | 103.7 | % | 7.2 | % | ||||||||||||||||||||||||||
Average shareholders’ equity | 19,375 | 19,783 | 12,941 | (2) | 50 | |||||||||||||||||||||||||||
Average common total shareholders' equity | 17,193 | 17,428 | 10,749 | (1) | 60 | |||||||||||||||||||||||||||
Average tangible common shareholders' equity | 11,675 | 11,905 | 8,605 | (2) | 36 | |||||||||||||||||||||||||||
Total assets at end of period | 174,064 | 173,878 | 123,038 | — | 41 | |||||||||||||||||||||||||||
Total shareholders’ equity at end of period | 19,297 | 19,479 | 12,993 | (1) | 49 | |||||||||||||||||||||||||||
NCOs as a % of average loans and leases | 0.12 | % | 0.20 | % | 0.55 | % | ||||||||||||||||||||||||||
NAL ratio | 0.64 | 0.78 | 0.65 | |||||||||||||||||||||||||||||
| NPA ratio (5) | 0.67 | 0.81 | 0.69 | |||||||||||||||||||||||||||||
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period | 1.81 | 1.91 | 2.22 | |||||||||||||||||||||||||||||
| Allowance for credit losses (ACL) as a % of total loans and leases at the end of period | 1.88 | 1.99 | 2.29 | |||||||||||||||||||||||||||||
| Common equity tier 1 risk-based capital ratio (6) | 9.33 | 9.57 | 10.00 | |||||||||||||||||||||||||||||
| Tangible common equity / tangible asset ratio (7) | 6.88 | 6.95 | 7.16 | |||||||||||||||||||||||||||||
See Notes to the Quarterly Key Statistics.
1
Huntington Bancshares Incorporated
Annual Key Statistics
(Unaudited)
| Year Ended December 31, | Change | ||||||||||||||||||||||
| (dollar amounts in millions, except per share data) | 2021 | 2020 | Amount | Percent | |||||||||||||||||||
Net interest income (2) | $ | 4,127 | $ | 3,245 | $ | 882 | 27 | % | |||||||||||||||
| FTE adjustment | (25) | (21) | (4) | (19) | |||||||||||||||||||
Net interest income | 4,102 | 3,224 | 878 | 27 | |||||||||||||||||||
| Provision for credit losses | 25 | 1,048 | (1,023) | (98) | |||||||||||||||||||
| Noninterest income | 1,889 | 1,591 | 298 | 19 | |||||||||||||||||||
| Noninterest expense | 4,375 | 2,795 | 1,580 | 57 | |||||||||||||||||||
Income before income taxes | 1,591 | 972 | 619 | 64 | |||||||||||||||||||
| Provision for income taxes | 294 | 155 | 139 | 90 | |||||||||||||||||||
| Income after income taxes | 1,297 | 817 | 480 | 59 | |||||||||||||||||||
| Income attributable to non-controlling interest | 2 | — | 2 | 100 | |||||||||||||||||||
| Net Income attributable to Huntington Bancshares Inc | 1,295 | 817 | 478 | 59 | |||||||||||||||||||
| Dividends on preferred shares | 131 | 100 | 31 | 31 | |||||||||||||||||||
| Impact of preferred stock redemption | 11 | — | 11 | 100 | |||||||||||||||||||
Net income applicable to common shares | $ | 1,153 | $ | 717 | $ | 436 | 61 | % | |||||||||||||||
Net income per common share - diluted | $ | 0.90 | $ | 0.69 | $ | 0.21 | 30 | % | |||||||||||||||
Cash dividends declared per common share | 0.605 | 0.60 | 0.01 | 1 | |||||||||||||||||||
Average common shares - basic | 1,262 | 1,017 | 245 | 24 | |||||||||||||||||||
Average common shares - diluted | 1,287 | 1,033 | 254 | 25 | |||||||||||||||||||
Return on average assets | 0.85 | % | 0.70 | % | |||||||||||||||||||
Return on average common shareholders’ equity | 7.9 | 6.8 | |||||||||||||||||||||
Return on average tangible common shareholders’ equity (1) | 11.3 | 8.9 | |||||||||||||||||||||
Net interest margin (2) | 2.94 | 2.99 | |||||||||||||||||||||
Efficiency ratio (3) | 72.0 | 56.9 | |||||||||||||||||||||
Effective tax rate | 18.5 | 15.9 | |||||||||||||||||||||
Average total assets | $ | 152,281 | $ | 117,232 | $ | 35,049 | 30 | ||||||||||||||||
Average earning assets | 140,175 | 108,443 | 31,732 | 29 | |||||||||||||||||||
Average loans and leases | 96,987 | 79,395 | 17,592 | 22 | |||||||||||||||||||
Average total deposits | 124,310 | 91,913 | 32,397 | 35 | |||||||||||||||||||
| Average core deposits (4) | 120,432 | 87,875 | 32,557 | 37 | |||||||||||||||||||
Average shareholders’ equity | 16,997 | 12,303 | 4,694 | 38 | |||||||||||||||||||
Average common total shareholders' equity | 14,569 | 10,619 | 3,950 | 37 | |||||||||||||||||||
Average tangible common shareholders' equity | 10,509 | 8,462 | 2,047 | 24 | |||||||||||||||||||
NCOs as a % of average loans and leases | 0.22 | % | 0.57 | % | |||||||||||||||||||
NAL ratio | 0.64 | 0.65 | |||||||||||||||||||||
| NPA ratio (5) | 0.67 | 0.69 | |||||||||||||||||||||
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)December 31, 2021, 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
| December 31, | December 31, | ||||||||||||||||
| (dollar amounts in millions) | 2021 | 2020 | Percent Changes | ||||||||||||||
| (Unaudited) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 1,811 | $ | 1,319 | 37 | % | |||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 3,711 | 5,276 | (30) | ||||||||||||||
Interest-bearing deposits in banks | 392 | 117 | 235 | ||||||||||||||
Trading account securities | 46 | 62 | (26) | ||||||||||||||
Available-for-sale securities | 28,460 | 16,485 | 73 | ||||||||||||||
Held-to-maturity securities | 12,447 | 8,861 | 40 | ||||||||||||||
Other securities | 648 | 418 | 55 | ||||||||||||||
Loans held for sale | 1,676 | 1,275 | 31 | ||||||||||||||
Loans and leases (1) | 111,920 | 81,608 | 37 | ||||||||||||||
Allowance for loan and lease losses | (2,030) | (1,814) | (12) | ||||||||||||||
Net loans and leases | 109,890 | 79,794 | 38 | ||||||||||||||
Bank owned life insurance | 2,765 | 2,577 | 7 | ||||||||||||||
Premises and equipment | 1,164 | 757 | 54 | ||||||||||||||
Goodwill | 5,349 | 1,990 | 169 | ||||||||||||||
| Servicing rights and other intangible assets | 611 | 428 | 43 | ||||||||||||||
Other assets | 5,094 | 3,679 | 38 | ||||||||||||||
Total assets | $ | 174,064 | $ | 123,038 | 41 | % | |||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Liabilities | |||||||||||||||||
Deposits (2) | $ | 143,263 | $ | 98,948 | 45 | % | |||||||||||
Short-term borrowings | 334 | 183 | 83 | ||||||||||||||
Long-term debt | 7,108 | 8,352 | (15) | ||||||||||||||
Other liabilities | 4,041 | 2,562 | 58 | ||||||||||||||
Total liabilities | 154,746 | 110,045 | 41 | ||||||||||||||
Shareholders' equity | |||||||||||||||||
Preferred stock | 2,167 | 2,191 | (1) | ||||||||||||||
Common stock | 14 | 10 | 40 | ||||||||||||||
Capital surplus | 15,222 | 8,781 | 73 | ||||||||||||||
Less treasury shares, at cost | (79) | (59) | (34) | ||||||||||||||
| Accumulated other comprehensive (loss) gain | (229) | 192 | (219) | ||||||||||||||
| Retained earnings | 2,202 | 1,878 | 17 | ||||||||||||||
| Total Huntington Bancshares Inc shareholders’ equity | 19,297 | 12,993 | 49 | ||||||||||||||
| Non-controlling interest | 21 | — | 100 | ||||||||||||||
| Total equity | 19,318 | 12,993 | 49 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 174,064 | $ | 123,038 | 41 | % | |||||||||||
Common shares authorized (par value of $0.01) | 2,250,000,000 | 1,500,000,000 | |||||||||||||||
Common shares outstanding | 1,437,742,172 | 1,017,196,776 | |||||||||||||||
Treasury shares outstanding | 6,298,288 | 5,062,054 | |||||||||||||||
Preferred stock, authorized shares | 6,617,808 | 6,617,808 | |||||||||||||||
Preferred shares outstanding | 557,500 | 750,500 | |||||||||||||||
(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)
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balances by Type: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 41,688 | 37 | % | $ | 40,452 | 36 | % | $ | 41,900 | 38 | % | $ | 32,297 | 40 | % | $ | 33,151 | 40 | % | |||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 1,871 | 2 | 1,812 | 2 | 1,926 | 2 | 1,083 | 1 | 1,035 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 13,090 | 12 | 12,882 | 12 | 12,848 | 11 | 6,096 | 8 | 6,164 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 14,961 | 14 | 14,694 | 14 | 14,774 | 13 | 7,179 | 9 | 7,199 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Lease financing | 5,000 | 4 | 4,991 | 5 | 5,027 | 4 | 2,167 | 3 | 2,222 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 61,649 | 55 | 60,137 | 55 | 61,701 | 55 | 41,643 | 52 | 42,572 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 19,256 | 17 | 18,922 | 17 | 18,729 | 17 | 12,092 | 15 | 12,141 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 13,434 | 12 | 13,305 | 12 | 13,174 | 12 | 12,591 | 16 | 12,778 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 10,550 | 9 | 10,919 | 10 | 11,317 | 10 | 8,727 | 11 | 8,894 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
RV and marine | 5,058 | 5 | 5,052 | 4 | 4,960 | 4 | 4,218 | 5 | 4,190 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 1,973 | 2 | 2,232 | 2 | 2,024 | 2 | 959 | 1 | 1,033 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 50,271 | 45 | 50,430 | 45 | 50,204 | 45 | 38,587 | 48 | 39,036 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 111,920 | 100 | % | $ | 110,567 | 100 | % | $ | 111,905 | 100 | % | $ | 80,230 | 100 | % | $ | 81,608 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending Balances by Business Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | $ | 33,368 | 30 | % | $ | 35,276 | 32 | % | $ | 36,798 | 33 | % | $ | 26,658 | 33 | % | $ | 27,230 | 33 | % | |||||||||||||||||||||||||||||||||||||||
| Commercial Banking | 49,372 | 44 | 46,988 | 43 | 46,559 | 41 | 27,318 | 34 | 27,374 | 34 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 20,968 | 19 | 20,353 | 18 | 20,196 | 18 | 19,474 | 24 | 20,027 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG (Regional Banking and The Huntington Private Client Group) | 8,012 | 7 | 7,743 | 7 | 7,394 | 7 | 6,587 | 8 | 6,809 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other | 200 | — | 207 | — | 958 | 1 | 193 | 1 | 168 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 111,920 | 100 | % | $ | 110,567 | 100 | % | $ | 111,905 | 100 | % | $ | 80,230 | 100 | % | $ | 81,608 | 100 | % | |||||||||||||||||||||||||||||||||||||||
Average Balances by Business Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | $ | 33,798 | 31 | % | $ | 35,807 | 33 | % | $ | 28,948 | 33 | % | $ | 27,069 | 34 | % | $ | 27,483 | 34 | % | |||||||||||||||||||||||||||||||||||||||
| Commercial Banking | 47,281 | 43 | 46,180 | 42 | 31,896 | 37 | 26,694 | 33 | 26,727 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 20,598 | 19 | 20,219 | 18 | 19,548 | 22 | 19,735 | 25 | 19,977 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG | 7,842 | 7 | 7,527 | 7 | 6,840 | 8 | 6,568 | 8 | 6,751 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other | 333 | — | 198 | — | 205 | — | 195 | — | 178 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 109,852 | 100 | % | $ | 109,931 | 100 | % | $ | 87,437 | 100 | % | $ | 80,261 | 100 | % | $ | 81,116 | 100 | % | |||||||||||||||||||||||||||||||||||||||
5
Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balances by Type: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits - noninterest-bearing | $ | 43,236 | 30 | % | $ | 44,560 | 31 | % | $ | 45,249 | 32 | % | $ | 31,226 | 30 | % | $ | 28,553 | 29 | % | |||||||||||||||||||||||||||||||||||||||
Demand deposits - interest-bearing | 39,837 | 28 | 36,423 | 26 | 34,938 | 24 | 27,493 | 27 | 26,757 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Money market deposits | 32,522 | 23 | 32,662 | 23 | 33,616 | 24 | 26,268 | 26 | 26,248 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings and other domestic deposits | 21,088 | 15 | 20,773 | 15 | 20,876 | 15 | 13,115 | 13 | 11,722 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Core certificates of deposit (1) | 2,740 | 2 | 3,080 | 2 | 3,537 | 2 | 1,329 | 1 | 1,425 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits | 139,423 | 98 | 137,498 | 97 | 138,216 | 97 | 99,431 | 97 | 94,705 | 96 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other domestic deposits of $250,000 or more | 359 | — | 521 | — | 675 | — | 105 | — | 131 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 3,481 | 2 | 3,879 | 3 | 3,914 | 3 | 2,648 | 3 | 4,112 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 143,263 | 100 | % | $ | 141,898 | 100 | % | $ | 142,805 | 100 | % | $ | 102,184 | 100 | % | $ | 98,948 | 100 | % | |||||||||||||||||||||||||||||||||||||||
Total core deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 61,521 | 44 | % | $ | 61,210 | 45 | % | $ | 61,055 | 44 | % | $ | 46,539 | 47 | % | $ | 44,698 | 47 | % | |||||||||||||||||||||||||||||||||||||||
| Consumer | 77,902 | 56 | 76,288 | 55 | 77,161 | 56 | 52,892 | 53 | 50,007 | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total core deposits | $ | 139,423 | 100 | % | $ | 137,498 | 100 | % | $ | 138,216 | 100 | % | $ | 99,431 | 100 | % | $ | 94,705 | 100 | % | |||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balances by Business Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | $ | 95,352 | 67 | % | $ | 94,439 | 67 | % | $ | 95,693 | 67 | % | $ | 65,437 | 64 | % | $ | 60,910 | 61 | % | |||||||||||||||||||||||||||||||||||||||
| Commercial Banking | 31,845 | 22 | 32,531 | 23 | 32,624 | 23 | 25,420 | 25 | 24,766 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 1,401 | 1 | 1,437 | 1 | 1,155 | 1 | 849 | 1 | 722 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG | 10,162 | 7 | 9,025 | 6 | 8,416 | 6 | 7,163 | 7 | 7,635 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other (2) | 4,503 | 3 | 4,466 | 3 | 4,917 | 3 | 3,315 | 3 | 4,915 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 143,263 | 100 | % | $ | 141,898 | 100 | % | $ | 142,805 | 100 | % | $ | 102,184 | 100 | % | $ | 98,948 | 100 | % | |||||||||||||||||||||||||||||||||||||||
Average Balances by Business Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and Business Banking | $ | 94,593 | 67 | % | $ | 94,719 | 67 | % | $ | 73,011 | 65 | % | $ | 62,333 | 63 | % | $ | 60,163 | 62 | % | |||||||||||||||||||||||||||||||||||||||
| Commercial Banking | 31,950 | 22 | 32,867 | 23 | 27,372 | 24 | 25,100 | 25 | 24,051 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Finance | 1,501 | 1 | 1,328 | 1 | 1,035 | 1 | 768 | 1 | 760 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RBHPCG | 9,505 | 7 | 8,587 | 6 | 7,564 | 7 | 7,059 | 7 | 6,850 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury / Other (2) | 4,754 | 3 | 4,802 | 3 | 3,696 | 3 | 4,025 | 4 | 4,740 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 142,303 | 100 | % | $ | 142,303 | 100 | % | $ | 112,678 | 100 | % | $ | 99,285 | 100 | % | $ | 96,564 | 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) | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | Percent Changes vs. | |||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | 3Q21 | 4Q20 | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | $ | 7,227 | $ | 11,536 | $ | 7,636 | $ | 6,065 | $ | 5,507 | (37) | % | 31 | % | ||||||||||||||||||||||||||||||
Interest-bearing deposits in banks | 521 | 466 | 319 | 177 | 205 | 12 | 154 | |||||||||||||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||||||||||||||
Trading account securities | 51 | 49 | 48 | 52 | 53 | 4 | (4) | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||
Taxable | 23,895 | 20,147 | 20,096 | 14,827 | 12,048 | 19 | 98 | |||||||||||||||||||||||||||||||||||||
Tax-exempt | 3,057 | 3,116 | 2,832 | 2,650 | 2,710 | (2) | 13 | |||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 26,952 | 23,263 | 22,928 | 17,477 | 14,758 | 16 | 83 | |||||||||||||||||||||||||||||||||||||
Held-to-maturity securities - taxable | 12,421 | 11,964 | 7,280 | 8,269 | 8,844 | 4 | 40 | |||||||||||||||||||||||||||||||||||||
| Other securities | 651 | 677 | 479 | 412 | 420 | (4) | 55 | |||||||||||||||||||||||||||||||||||||
Total securities | 40,075 | 35,953 | 30,735 | 26,210 | 24,075 | 11 | 66 | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 1,381 | 1,525 | 1,294 | 1,392 | 1,319 | (9) | 5 | |||||||||||||||||||||||||||||||||||||
Loans and leases: (2) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 40,582 | 40,597 | 34,126 | 32,153 | 32,508 | — | 25 | |||||||||||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Construction | 1,820 | 1,803 | 1,310 | 1,053 | 1,085 | 1 | 68 | |||||||||||||||||||||||||||||||||||||
Commercial | 12,758 | 12,891 | 7,773 | 6,122 | 6,092 | (1) | 109 | |||||||||||||||||||||||||||||||||||||
Commercial real estate | 14,578 | 14,694 | 9,083 | 7,175 | 7,177 | (1) | 103 | |||||||||||||||||||||||||||||||||||||
| Lease financing | 4,933 | 4,983 | 2,798 | 2,199 | 2,342 | (1) | 111 | |||||||||||||||||||||||||||||||||||||
Total commercial | 60,093 | 60,274 | 46,007 | 41,527 | 42,027 | — | 43 | |||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 18,955 | 18,886 | 13,768 | 12,094 | 12,100 | — | 57 | |||||||||||||||||||||||||||||||||||||
| Automobile | 13,355 | 13,209 | 12,793 | 12,665 | 12,857 | 1 | 4 | |||||||||||||||||||||||||||||||||||||
| Home equity | 10,748 | 11,106 | 9,375 | 8,809 | 8,919 | (3) | 21 | |||||||||||||||||||||||||||||||||||||
| RV and marine | 5,040 | 4,998 | 4,447 | 4,193 | 4,181 | 1 | 21 | |||||||||||||||||||||||||||||||||||||
Other consumer | 1,661 | 1,458 | 1,047 | 973 | 1,032 | 14 | 61 | |||||||||||||||||||||||||||||||||||||
Total consumer | 49,759 | 49,657 | 41,430 | 38,734 | 39,089 | — | 27 | |||||||||||||||||||||||||||||||||||||
Total loans and leases | 109,852 | 109,931 | 87,437 | 80,261 | 81,116 | — | 35 | |||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (2,112) | (2,219) | (1,828) | (1,809) | (1,804) | 5 | (17) | |||||||||||||||||||||||||||||||||||||
Net loans and leases | 107,740 | 107,712 | 85,609 | 78,452 | 79,312 | — | 36 | |||||||||||||||||||||||||||||||||||||
Total earning assets | 159,056 | 159,411 | 127,421 | 114,105 | 112,222 | — | 42 | |||||||||||||||||||||||||||||||||||||
Cash and due from banks | 1,695 | 1,535 | 1,106 | 1,080 | 1,113 | 10 | 52 | |||||||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets | 5,570 | 5,578 | 3,055 | 2,176 | 2,185 | — | 155 | |||||||||||||||||||||||||||||||||||||
All other assets | 9,463 | 9,528 | 8,076 | 7,443 | 7,279 | (1) | 30 | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 173,672 | $ | 173,833 | $ | 137,830 | $ | 122,995 | $ | 120,995 | — | % | 44 | % | ||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||
Demand deposits - interest-bearing | $ | 38,441 | $ | 35,690 | $ | 29,729 | $ | 26,812 | $ | 25,094 | 8 | % | 53 | % | ||||||||||||||||||||||||||||||
Money market deposits | 32,400 | 33,281 | 28,124 | 26,247 | 26,144 | (3) | 24 | |||||||||||||||||||||||||||||||||||||
Savings and other domestic deposits | 20,896 | 20,931 | 15,190 | 12,277 | 11,468 | — | 82 | |||||||||||||||||||||||||||||||||||||
Core certificates of deposit (3) | 2,909 | 3,319 | 1,832 | 1,384 | 1,479 | (12) | 97 | |||||||||||||||||||||||||||||||||||||
Other domestic deposits of $250,000 or more | 452 | 582 | 259 | 115 | 139 | (22) | 225 | |||||||||||||||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 3,843 | 3,905 | 2,986 | 3,355 | 4,100 | (2) | (6) | |||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 98,941 | 97,708 | 78,120 | 70,190 | 68,424 | 1 | 45 | |||||||||||||||||||||||||||||||||||||
Short-term borrowings | 342 | 317 | 241 | 208 | 239 | 8 | 43 | |||||||||||||||||||||||||||||||||||||
Long-term debt | 7,674 | 7,587 | 6,887 | 7,766 | 8,799 | 1 | (13) | |||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 106,957 | 105,612 | 85,248 | 78,164 | 77,462 | 1 | 38 | |||||||||||||||||||||||||||||||||||||
Demand deposits - noninterest-bearing | 43,362 | 44,595 | 34,558 | 29,095 | 28,140 | (3) | 54 | |||||||||||||||||||||||||||||||||||||
All other liabilities | 3,957 | 3,823 | 2,608 | 2,412 | 2,452 | 4 | 61 | |||||||||||||||||||||||||||||||||||||
| Total Huntington Bancshares Inc shareholders’ equity | 19,375 | 19,783 | 15,410 | 13,324 | 12,941 | (2) | 50 | |||||||||||||||||||||||||||||||||||||
| Non-controlling interest | 21 | 20 | 6 | — | — | 5 | 100 | |||||||||||||||||||||||||||||||||||||
| Total equity | 19,396 | 19,803 | 15,416 | 13,324 | 12,941 | (2) | 50 | |||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 173,672 | $ | 173,833 | $ | 137,830 | $ | 122,995 | $ | 120,995 | — | % | 44 | % | ||||||||||||||||||||||||||||||
(1)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)Includes nonaccrual loans and leases.
(3)Includes consumer certificates of deposit of $250,000 or more.
7
Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
Quarterly Interest Income / Expense | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | $ | 3 | $ | 4 | $ | 2 | $ | 2 | $ | 2 | |||||||||||||||||||
Interest-bearing deposits in banks | — | 1 | — | — | — | ||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
Trading account securities | — | — | 1 | — | 1 | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Taxable | 77 | 68 | 67 | 49 | 46 | ||||||||||||||||||||||||
Tax-exempt | 19 | 18 | 17 | 17 | 17 | ||||||||||||||||||||||||
Total available-for-sale securities | 96 | 86 | 84 | 66 | 63 | ||||||||||||||||||||||||
Held-to-maturity securities - taxable | 50 | 47 | 35 | 42 | 47 | ||||||||||||||||||||||||
| Other securities | 4 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Total securities | 150 | 135 | 122 | 110 | 113 | ||||||||||||||||||||||||
Loans held for sale | 10 | 13 | 9 | 9 | 9 | ||||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | 393 | 419 | 319 | 315 | 294 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Construction | 17 | 17 | 12 | 9 | 9 | ||||||||||||||||||||||||
| Commercial | 102 | 105 | 60 | 40 | 41 | ||||||||||||||||||||||||
| Commercial real estate | 119 | 122 | 72 | 49 | 50 | ||||||||||||||||||||||||
| Lease financing | 61 | 61 | 36 | 28 | 30 | ||||||||||||||||||||||||
| Total commercial | 573 | 602 | 427 | 392 | 374 | ||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | 141 | 139 | 104 | 95 | 99 | ||||||||||||||||||||||||
| Automobile | 119 | 121 | 115 | 116 | 125 | ||||||||||||||||||||||||
| Home equity | 109 | 113 | 89 | 80 | 85 | ||||||||||||||||||||||||
| RV and marine | 54 | 55 | 46 | 44 | 47 | ||||||||||||||||||||||||
| Other consumer | 29 | 29 | 27 | 27 | 29 | ||||||||||||||||||||||||
| Total consumer | 452 | 457 | 381 | 362 | 385 | ||||||||||||||||||||||||
Total loans and leases | 1,025 | 1,059 | 808 | 754 | 759 | ||||||||||||||||||||||||
Total earning assets | $ | 1,188 | $ | 1,212 | $ | 941 | $ | 875 | $ | 883 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Demand deposits - interest-bearing | $ | 3 | $ | 3 | $ | 4 | $ | 2 | $ | 2 | |||||||||||||||||||
| Money market deposits | 6 | 7 | 4 | 4 | 7 | ||||||||||||||||||||||||
Savings and other domestic deposits | 1 | 1 | 2 | 1 | 1 | ||||||||||||||||||||||||
Core certificates of deposit (3) | — | (2) | 1 | 2 | 2 | ||||||||||||||||||||||||
Other domestic deposits of $250,000 or more | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 1 | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||
Total interest-bearing deposits | 11 | 11 | 12 | 11 | 15 | ||||||||||||||||||||||||
Short-term borrowings | 1 | — | — | — | — | ||||||||||||||||||||||||
Long-term debt | 38 | 34 | 85 | (114) | 38 | ||||||||||||||||||||||||
Total interest bearing liabilities | 50 | 45 | 97 | (103) | 53 | ||||||||||||||||||||||||
Net interest income | $ | 1,138 | $ | 1,167 | $ | 844 | $ | 978 | $ | 830 | |||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
Fully-taxable equivalent basis (1) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 0.15 | % | 0.17 | % | 0.11 | % | 0.10 | % | 0.10 | % | |||||||||||||||||||
Interest-bearing deposits in banks | 0.06 | 0.04 | 0.01 | 0.08 | 0.12 | ||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
Trading account securities | 3.67 | 2.98 | 2.96 | 3.64 | 3.65 | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Taxable | 1.29 | 1.34 | 1.34 | 1.32 | 1.53 | ||||||||||||||||||||||||
Tax-exempt | 2.40 | 2.37 | 2.42 | 2.52 | 2.59 | ||||||||||||||||||||||||
Total available-for-sale securities | 1.42 | 1.48 | 1.47 | 1.50 | 1.72 | ||||||||||||||||||||||||
Held-to-maturity securities - taxable | 1.59 | 1.58 | 1.94 | 2.02 | 2.11 | ||||||||||||||||||||||||
| Other securities | 2.18 | 1.43 | 1.72 | 1.66 | 1.85 | ||||||||||||||||||||||||
Total securities | 1.49 | 1.52 | 1.59 | 1.67 | 1.87 | ||||||||||||||||||||||||
Loans held for sale | 3.14 | 3.23 | 2.79 | 2.64 | 2.96 | ||||||||||||||||||||||||
Loans and leases: (3) | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| Commercial and industrial | 3.79 | 4.04 | 3.70 | 3.91 | 3.53 | ||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Construction | 3.71 | 3.68 | 3.57 | 3.41 | 3.36 | ||||||||||||||||||||||||
| Commercial | 3.14 | 3.17 | 3.06 | 2.64 | 2.62 | ||||||||||||||||||||||||
| Commercial real estate | 3.21 | 3.23 | 3.13 | 2.75 | 2.73 | ||||||||||||||||||||||||
| Lease financing | 4.81 | 4.84 | 5.00 | 5.18 | 5.08 | ||||||||||||||||||||||||
| Total commercial | 3.73 | 3.91 | 3.67 | 3.78 | 3.48 | ||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | 2.97 | 2.95 | 3.04 | 3.13 | 3.27 | ||||||||||||||||||||||||
| Automobile | 3.53 | 3.62 | 3.62 | 3.71 | 3.88 | ||||||||||||||||||||||||
| Home equity | 4.01 | 4.03 | 3.79 | 3.71 | 3.76 | ||||||||||||||||||||||||
| RV and marine | 4.31 | 4.33 | 4.13 | 4.30 | 4.53 | ||||||||||||||||||||||||
| Other consumer | 7.08 | 7.98 | 10.17 | 11.17 | 11.12 | ||||||||||||||||||||||||
| Total consumer | 3.62 | 3.65 | 3.69 | 3.78 | 3.93 | ||||||||||||||||||||||||
Total loans and leases | 3.68 | 3.80 | 3.68 | 3.78 | 3.70 | ||||||||||||||||||||||||
Total earning assets | 2.96 | 3.02 | 2.96 | 3.11 | 3.13 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Demand deposits - interest-bearing | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | ||||||||||||||||||||||||
| Money market deposits | 0.08 | 0.08 | 0.06 | 0.06 | 0.10 | ||||||||||||||||||||||||
Savings and other domestic deposits | 0.02 | 0.03 | 0.04 | 0.04 | 0.05 | ||||||||||||||||||||||||
Core certificates of deposit (4) | — | (0.23) | 0.19 | 0.51 | 0.56 | ||||||||||||||||||||||||
Other domestic deposits of $250,000 or more | 0.18 | 0.21 | 0.26 | 0.22 | 0.51 | ||||||||||||||||||||||||
Negotiable CDS, brokered and other deposits | 0.14 | 0.15 | 0.16 | 0.18 | 0.19 | ||||||||||||||||||||||||
Total interest-bearing deposits | 0.05 | 0.05 | 0.06 | 0.06 | 0.08 | ||||||||||||||||||||||||
Short-term borrowings | 0.09 | 0.14 | 0.47 | 0.19 | 0.26 | ||||||||||||||||||||||||
Long-term debt | 1.93 | 1.81 | 4.97 | (5.88) | 1.72 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 0.18 | 0.17 | 0.45 | (0.53) | 0.27 | ||||||||||||||||||||||||
Net interest rate spread | 2.78 | 2.85 | 2.51 | 3.64 | 2.86 | ||||||||||||||||||||||||
Impact of noninterest-bearing funds on margin | 0.06 | 0.05 | 0.15 | (0.16) | 0.08 | ||||||||||||||||||||||||
Net interest margin | 2.84 | % | 2.90 | % | 2.66 | % | 3.48 | % | 2.94 | % | |||||||||||||||||||
| Commercial Loan Derivative Impact | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
Average Rates | |||||||||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | |||||||||||||||||||||||||
Fully-taxable equivalent basis (1) | Fourth | Third | Second | First | Fourth | ||||||||||||||||||||||||
Commercial loans (2)(3) | 3.53 | % | 3.65 | % | 3.27 | % | 3.22 | % | 2.92 | % | |||||||||||||||||||
Impact of commercial loan derivatives | 0.20 | 0.26 | 0.40 | 0.56 | 0.56 | ||||||||||||||||||||||||
Total commercial - as reported | 3.73 | % | 3.91 | % | 3.67 | % | 3.78 | % | 3.48 | % | |||||||||||||||||||
Average 1 Month LIBOR | 0.09 | % | 0.09 | % | 0.10 | % | 0.12 | % | 0.15 | % | |||||||||||||||||||
(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 and leases.
(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) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | |||||||||||||||||||||||||
Interest income | $ | 1,182 | $ | 1,205 | $ | 935 | $ | 869 | $ | 878 | |||||||||||||||||||
Interest expense | 50 | 45 | 97 | (103) | 53 | ||||||||||||||||||||||||
Net interest income | 1,132 | 1,160 | 838 | 972 | 825 | ||||||||||||||||||||||||
| Provision for credit losses | (64) | (62) | 211 | (60) | 103 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 1,196 | 1,222 | 627 | 1,032 | 722 | ||||||||||||||||||||||||
| Service charges on deposit accounts | 101 | 114 | 88 | 69 | 78 | ||||||||||||||||||||||||
| Card and payment processing income | 93 | 96 | 80 | 65 | 65 | ||||||||||||||||||||||||
| Mortgage banking income | 61 | 81 | 67 | 100 | 90 | ||||||||||||||||||||||||
| Trust and investment management services | 63 | 61 | 56 | 52 | 49 | ||||||||||||||||||||||||
| Capital markets fees | 47 | 40 | 35 | 29 | 34 | ||||||||||||||||||||||||
| Insurance income | 28 | 25 | 25 | 27 | 25 | ||||||||||||||||||||||||
| Leasing revenue | 41 | 42 | 12 | 4 | 6 | ||||||||||||||||||||||||
| Bank owned life insurance income | 22 | 15 | 16 | 16 | 14 | ||||||||||||||||||||||||
| Gain on sale of loans | 1 | 2 | 3 | 3 | 13 | ||||||||||||||||||||||||
| Net gains (losses) on sales of securities | (1) | — | 10 | — | — | ||||||||||||||||||||||||
| Other noninterest income | 59 | 59 | 52 | 30 | 35 | ||||||||||||||||||||||||
Total noninterest income | 515 | 535 | 444 | 395 | 409 | ||||||||||||||||||||||||
| Personnel costs | 632 | 643 | 592 | 468 | 426 | ||||||||||||||||||||||||
| Outside data processing and other services | 269 | 304 | 162 | 115 | 111 | ||||||||||||||||||||||||
| Net occupancy | 68 | 95 | 72 | 42 | 39 | ||||||||||||||||||||||||
| Equipment | 68 | 79 | 55 | 46 | 49 | ||||||||||||||||||||||||
| Professional services | 22 | 26 | 48 | 17 | 21 | ||||||||||||||||||||||||
| Marketing | 35 | 25 | 15 | 14 | 15 | ||||||||||||||||||||||||
| Deposit and other insurance expense | 18 | 17 | 8 | 8 | 8 | ||||||||||||||||||||||||
| Amortization of intangibles | 14 | 13 | 11 | 10 | 10 | ||||||||||||||||||||||||
| Lease financing equipment depreciation | 17 | 19 | 5 | — | — | ||||||||||||||||||||||||
| Other noninterest expense | 78 | 68 | 104 | 73 | 77 | ||||||||||||||||||||||||
Total noninterest expense | 1,221 | 1,289 | 1,072 | 793 | 756 | ||||||||||||||||||||||||
| Income (loss) before income taxes | 490 | 468 | (1) | 634 | 375 | ||||||||||||||||||||||||
| Provision for income taxes | 88 | 90 | 14 | 102 | 59 | ||||||||||||||||||||||||
| Income (loss) after income taxes | 402 | 378 | (15) | 532 | 316 | ||||||||||||||||||||||||
| Income attributable to non-controlling interest | 1 | 1 | — | — | — | ||||||||||||||||||||||||
| Net income (loss) attributable to Huntington Bancshares Inc | 401 | 377 | (15) | 532 | 316 | ||||||||||||||||||||||||
| Dividends on preferred shares | 28 | 29 | 43 | 31 | 35 | ||||||||||||||||||||||||
| Impact of preferred stock redemption | (4) | 15 | — | — | — | ||||||||||||||||||||||||
| Net income (loss) applicable to common shares | $ | 377 | $ | 333 | $ | (58) | $ | 501 | $ | 281 | |||||||||||||||||||
Average common shares - basic | 1,444 | 1,463 | 1,125 | 1,018 | 1,017 | ||||||||||||||||||||||||
Average common shares - diluted | 1,471 | 1,487 | 1,125 | 1,041 | 1,036 | ||||||||||||||||||||||||
Per common share | |||||||||||||||||||||||||||||
| Net income (loss) - basic | $ | 0.26 | $ | 0.23 | $ | (0.05) | $ | 0.49 | $ | 0.28 | |||||||||||||||||||
| Net income (loss) - diluted | 0.26 | 0.22 | (0.05) | 0.48 | 0.27 | ||||||||||||||||||||||||
Cash dividends declared | 0.155 | 0.15 | 0.15 | 0.15 | 0.15 | ||||||||||||||||||||||||
Revenue - fully-taxable equivalent (FTE) | |||||||||||||||||||||||||||||
Net interest income | $ | 1,132 | $ | 1,160 | $ | 838 | $ | 972 | $ | 825 | |||||||||||||||||||
FTE adjustment | 6 | 7 | 6 | 6 | 5 | ||||||||||||||||||||||||
Net interest income (1) | 1,138 | 1,167 | 844 | 978 | 830 | ||||||||||||||||||||||||
Noninterest income | 515 | 535 | 444 | 395 | 409 | ||||||||||||||||||||||||
Total revenue (1) | $ | 1,653 | $ | 1,702 | $ | 1,288 | $ | 1,373 | $ | 1,239 | |||||||||||||||||||
(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 | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | Percent Changes vs. | |||||||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | 3Q21 | 4Q20 | |||||||||||||||||||||||||||||||||||||
Net origination and secondary marketing income | $ | 56 | $ | 80 | $ | 70 | $ | 94 | $ | 92 | (30) | % | (39) | % | ||||||||||||||||||||||||||||||
| Net mortgage servicing income | ||||||||||||||||||||||||||||||||||||||||||||
Loan servicing income | 22 | 21 | 17 | 17 | 16 | 5 | 38 | |||||||||||||||||||||||||||||||||||||
| Amortization of capitalized servicing | (20) | (21) | (20) | (20) | (17) | 5 | (18) | |||||||||||||||||||||||||||||||||||||
| Operating (expense) income | 2 | — | (3) | (3) | (1) | 100 | 300 | |||||||||||||||||||||||||||||||||||||
| MSR valuation adjustment (1) | (1) | 1 | (24) | 51 | 4 | (200) | (125) | |||||||||||||||||||||||||||||||||||||
Gains (losses) due to MSR hedging | 2 | (4) | 22 | (46) | (9) | 150 | 122 | |||||||||||||||||||||||||||||||||||||
| Net MSR risk management | 1 | (3) | (2) | 5 | (5) | 133 | 120 | |||||||||||||||||||||||||||||||||||||
| Total net mortgage servicing (expense) income | $ | 3 | $ | (3) | $ | (5) | $ | 2 | $ | (6) | 200 | % | 150 | % | ||||||||||||||||||||||||||||||
| All other | 2 | 4 | 2 | 4 | 4 | (50) | (50) | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | $ | 61 | $ | 81 | $ | 67 | $ | 100 | $ | 90 | (25) | % | (32) | % | ||||||||||||||||||||||||||||||
| Mortgage origination volume | $ | 3,880 | $ | 4,467 | $ | 4,007 | $ | 4,042 | $ | 3,741 | (13) | % | 4 | % | ||||||||||||||||||||||||||||||
Mortgage origination volume for sale | 2,380 | 2,514 | 2,265 | 2,669 | 2,444 | (5) | (3) | |||||||||||||||||||||||||||||||||||||
| Third party mortgage loans serviced (2) | 31,017 | 30,554 | 30,398 | 23,585 | 23,471 | 2 | 32 | |||||||||||||||||||||||||||||||||||||
| Mortgage servicing rights (2) | 351 | 338 | 327 | 274 | 210 | 4 | 67 | |||||||||||||||||||||||||||||||||||||
| MSR % of investor servicing portfolio (2) | 1.13 | % | 1.11 | % | 1.08 | % | 1.16 | % | 0.89 | % | 2 | % | 27 | % | ||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 2,107 | $ | 2,218 | $ | 1,703 | $ | 1,814 | $ | 1,796 | |||||||||||||||||||
| Loan and lease charge-offs (1) | (79) | (106) | (102) | (95) | (140) | ||||||||||||||||||||||||
| Recoveries of loans and leases previously charged off | 45 | 51 | 40 | 31 | 28 | ||||||||||||||||||||||||
| Net loan and lease charge-offs | (34) | (55) | (62) | (64) | (112) | ||||||||||||||||||||||||
| Provision for loan and lease losses | (43) | (56) | 145 | (47) | 130 | ||||||||||||||||||||||||
| Allowance on loans and leases purchased with credit deterioration | — | — | 432 | — | — | ||||||||||||||||||||||||
Allowance of assets sold or transferred to loans held for sale | — | — | — | — | — | ||||||||||||||||||||||||
Allowance for loan and lease losses, end of period | 2,030 | 2,107 | 2,218 | 1,703 | 1,814 | ||||||||||||||||||||||||
| Allowance for unfunded lending commitments, beginning of period | 98 | 104 | 38 | 52 | 82 | ||||||||||||||||||||||||
| Provision for (reduction in) unfunded lending commitments | (21) | (6) | 66 | (13) | (27) | ||||||||||||||||||||||||
| Unfunded lending commitment losses | — | — | — | (1) | (3) | ||||||||||||||||||||||||
| Allowance for unfunded lending commitments, end of period | 77 | 98 | 104 | 38 | 52 | ||||||||||||||||||||||||
Total allowance for credit losses, end of period | $ | 2,107 | $ | 2,205 | $ | 2,322 | $ | 1,741 | $ | 1,866 | |||||||||||||||||||
Allowance for loan and lease losses (ALLL) as % of: | |||||||||||||||||||||||||||||
| Total loans and leases | 1.81 | % | 1.91 | % | 1.98 | % | 2.12 | % | 2.22 | % | |||||||||||||||||||
Nonaccrual loans and leases (NALs) | 284 | 245 | 227 | 330 | 341 | ||||||||||||||||||||||||
Nonperforming assets (NPAs) | 271 | 236 | 219 | 313 | 323 | ||||||||||||||||||||||||
Total allowance for credit losses (ACL) as % of: | |||||||||||||||||||||||||||||
Total loans and leases | 1.88 | % | 1.99 | % | 2.08 | % | 2.17 | % | 2.29 | % | |||||||||||||||||||
| Nonaccrual loans and leases (NALs) | 294 | 256 | 238 | 338 | 351 | ||||||||||||||||||||||||
| Nonperforming assets (NPAs) | 281 | 247 | 229 | 320 | 332 | ||||||||||||||||||||||||
(1)Net charge-offs and associated metrics for the period ended June 30, 2021 exclude $80 million of charge-offs recognized immediately upon completion of the TCF acquisition and related to required purchase accounting treatment.
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
| Allocation of allowance for credit losses | |||||||||||||||||||||||||||||
| Commercial | |||||||||||||||||||||||||||||
| Commercial and industrial | $ | 832 | $ | 801 | $ | 1,030 | $ | 824 | $ | 879 | |||||||||||||||||||
| Commercial real estate | 586 | 678 | 499 | 332 | 297 | ||||||||||||||||||||||||
| Lease financing | 44 | 70 | 89 | 41 | 60 | ||||||||||||||||||||||||
| Total commercial | 1,462 | 1,549 | 1,618 | 1,197 | 1,236 | ||||||||||||||||||||||||
| Consumer | |||||||||||||||||||||||||||||
| Residential mortgage | 145 | 127 | 125 | 73 | 79 | ||||||||||||||||||||||||
| Automobile | 108 | 122 | 141 | 156 | 166 | ||||||||||||||||||||||||
| Home equity | 88 | 108 | 140 | 90 | 124 | ||||||||||||||||||||||||
| RV and marine | 105 | 111 | 114 | 114 | 129 | ||||||||||||||||||||||||
| Other consumer | 122 | 90 | 80 | 73 | 80 | ||||||||||||||||||||||||
| Total consumer | 568 | 558 | 600 | 506 | 578 | ||||||||||||||||||||||||
| Total allowance for loan and lease losses | 2,030 | 2,107 | 2,218 | 1,703 | 1,814 | ||||||||||||||||||||||||
| Allowance for unfunded lending commitments | 77 | 98 | 104 | 38 | 52 | ||||||||||||||||||||||||
| Total allowance for credit losses | $ | 2,107 | $ | 2,205 | $ | 2,322 | $ | 1,741 | $ | 1,866 | |||||||||||||||||||
12
Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
| Net charge-offs (recoveries) by loan and lease type: | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 6 | $ | 28 | $ | 37 | $ | 28 | $ | 54 | |||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | — | (1) | — | — | — | ||||||||||||||||||||||||
Commercial | (4) | 8 | 17 | (3) | 32 | ||||||||||||||||||||||||
Commercial real estate | (4) | 7 | 17 | (3) | 32 | ||||||||||||||||||||||||
| Lease financing | 3 | 12 | 5 | 24 | 4 | ||||||||||||||||||||||||
Total commercial | 5 | 47 | 59 | 49 | 90 | ||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | (1) | — | — | — | 1 | ||||||||||||||||||||||||
| Automobile | — | (4) | (4) | 2 | 6 | ||||||||||||||||||||||||
| Home equity | (1) | (3) | (1) | — | 1 | ||||||||||||||||||||||||
RV and marine | 2 | — | — | 3 | 2 | ||||||||||||||||||||||||
Other consumer | 29 | 15 | 8 | 10 | 12 | ||||||||||||||||||||||||
Total consumer | 29 | 8 | 3 | 15 | 22 | ||||||||||||||||||||||||
| Total net charge-offs (1) | $ | 34 | $ | 55 | $ | 62 | $ | 64 | $ | 112 | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | |||||||||||||||||||||||||
| Net charge-offs (recoveries) - annualized percentages: | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||
Commercial and industrial | 0.06 | % | 0.28 | % | 0.43 | % | 0.35 | % | 0.65 | % | |||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | (0.03) | (0.14) | (0.04) | (0.04) | (0.04) | ||||||||||||||||||||||||
Commercial | (0.13) | 0.26 | 0.81 | (0.17) | 2.14 | ||||||||||||||||||||||||
Commercial real estate | (0.12) | 0.21 | 0.69 | (0.15) | 1.81 | ||||||||||||||||||||||||
| Lease financing | 0.24 | 0.87 | 0.93 | 4.32 | 0.86 | ||||||||||||||||||||||||
Total commercial | 0.03 | 0.31 | 0.51 | 0.47 | 0.86 | ||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||
| Residential mortgage | (0.01) | — | — | 0.01 | 0.05 | ||||||||||||||||||||||||
| Automobile | (0.03) | (0.10) | (0.13) | 0.05 | 0.21 | ||||||||||||||||||||||||
| Home equity | (0.04) | (0.08) | (0.08) | 0.02 | 0.01 | ||||||||||||||||||||||||
RV and marine | 0.13 | (0.01) | 0.02 | 0.29 | 0.21 | ||||||||||||||||||||||||
Other consumer | 7.20 | 3.97 | 3.13 | 3.99 | 4.35 | ||||||||||||||||||||||||
Total consumer | 0.23 | 0.07 | 0.02 | 0.16 | 0.22 | ||||||||||||||||||||||||
| Net charge-offs as a % of average loans (1) | 0.12 | % | 0.20 | % | 0.28 | % | 0.32 | % | 0.55 | % | |||||||||||||||||||
(1)Net charge-offs and associated metrics for the period ended June 30, 2021 exclude $80 million of charge-offs recognized immediately upon completion of the TCF acquisition and related to required purchase accounting treatment.
13
Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (1)
(Unaudited)
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
(dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Nonaccrual loans and leases (NALs): | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 370 | $ | 494 | $ | 591 | $ | 326 | $ | 349 | |||||||||||||||||||
Commercial real estate | 104 | 103 | 83 | 8 | 15 | ||||||||||||||||||||||||
| Lease financing | 48 | 60 | 74 | 17 | 4 | ||||||||||||||||||||||||
| Residential mortgage | 111 | 108 | 130 | 90 | 88 | ||||||||||||||||||||||||
| Automobile | 3 | 3 | 3 | 3 | 4 | ||||||||||||||||||||||||
Home equity | 79 | 87 | 91 | 71 | 70 | ||||||||||||||||||||||||
RV and marine | 1 | 6 | 5 | 1 | 2 | ||||||||||||||||||||||||
Total nonaccrual loans and leases | 716 | 861 | 977 | 516 | 532 | ||||||||||||||||||||||||
Other real estate, net: | |||||||||||||||||||||||||||||
Residential | 8 | 6 | 5 | 2 | 4 | ||||||||||||||||||||||||
Commercial | 1 | 1 | 2 | — | — | ||||||||||||||||||||||||
| Total other real estate, net | 9 | 7 | 7 | 2 | 4 | ||||||||||||||||||||||||
| Other NPAs (2) | 25 | 25 | 30 | 26 | 27 | ||||||||||||||||||||||||
Total nonperforming assets | $ | 750 | $ | 893 | $ | 1,014 | $ | 544 | $ | 563 | |||||||||||||||||||
Nonaccrual loans and leases as a % of total loans and leases | 0.64 | % | 0.78 | % | 0.87 | % | 0.64 | % | 0.65 | % | |||||||||||||||||||
| NPA ratio (3) | 0.67 | 0.81 | 0.91 | 0.68 | 0.69 | ||||||||||||||||||||||||
(NPA+90days)/(Loan+OREO) (4) | 0.86 | 0.97 | 1.04 | 0.87 | 0.90 | ||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Nonperforming assets, beginning of period | $ | 893 | $ | 1,014 | $ | 544 | $ | 563 | $ | 602 | |||||||||||||||||||
New nonperforming assets | 146 | 195 | 116 | 129 | 248 | ||||||||||||||||||||||||
| Acquired NPAs | — | — | 629 | — | — | ||||||||||||||||||||||||
Returns to accruing status | (99) | (125) | (46) | (33) | (108) | ||||||||||||||||||||||||
| Charge-offs | (35) | (51) | (77) | (52) | (73) | ||||||||||||||||||||||||
Payments | (152) | (128) | (81) | (55) | (82) | ||||||||||||||||||||||||
Sales | (3) | (12) | (71) | (8) | (24) | ||||||||||||||||||||||||
Nonperforming assets, end of period | $ | 750 | $ | 893 | $ | 1,014 | $ | 544 | $ | 563 | |||||||||||||||||||
(1)Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.
(2)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(3)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(4)The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.
14
Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases
(Unaudited)
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Accruing loans and leases past due 90+ days: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 13 | $ | 6 | $ | 1 | $ | — | $ | — | |||||||||||||||||||
| Lease financing | 11 | 12 | 14 | 8 | 10 | ||||||||||||||||||||||||
| Residential mortgage (excluding loans guaranteed by the U.S. Government) | 25 | 16 | 17 | 18 | 30 | ||||||||||||||||||||||||
| Automobile | 6 | 5 | 4 | 5 | 9 | ||||||||||||||||||||||||
| Home equity | 17 | 10 | 9 | 10 | 14 | ||||||||||||||||||||||||
| RV and marine | 3 | 2 | 1 | 1 | 3 | ||||||||||||||||||||||||
Other consumer | 3 | 2 | 2 | 2 | 3 | ||||||||||||||||||||||||
Total, excl. loans guaranteed by the U.S. Government | 78 | 53 | 48 | 44 | 69 | ||||||||||||||||||||||||
Add: loans guaranteed by U.S. Government | 132 | 122 | 100 | 110 | 102 | ||||||||||||||||||||||||
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government | $ | 210 | $ | 175 | $ | 148 | $ | 154 | $ | 171 | |||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.07 | % | 0.05 | % | 0.04 | % | 0.05 | % | 0.08 | % | |||||||||||||||||||
Guaranteed by U.S. Government, as a percent of total loans and leases | 0.12 | 0.11 | 0.09 | 0.14 | 0.13 | ||||||||||||||||||||||||
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.19 | 0.16 | 0.13 | 0.19 | 0.21 | ||||||||||||||||||||||||
15
Huntington Bancshares Incorporated
Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data
(Unaudited)
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Common equity tier 1 risk-based capital ratio: (1) | |||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 19,297 | $ | 19,479 | $ | 20,511 | $ | 13,600 | $ | 12,992 | |||||||||||||||||||
Regulatory capital adjustments: | |||||||||||||||||||||||||||||
| CECL transitional amount (2) | 437 | 440 | 459 | 422 | 453 | ||||||||||||||||||||||||
Shareholders’ preferred equity | (2,177) | (2,281) | (2,866) | (2,680) | (2,196) | ||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) offset | 230 | 125 | 19 | 56 | (192) | ||||||||||||||||||||||||
Goodwill and other intangibles, net of related taxes | (5,484) | (5,477) | (5,479) | (2,095) | (2,107) | ||||||||||||||||||||||||
Deferred tax assets that arise from tax loss and credit carryforwards | (54) | (36) | (48) | (63) | (63) | ||||||||||||||||||||||||
Common equity tier 1 capital | 12,249 | 12,250 | 12,596 | 9,240 | 8,887 | ||||||||||||||||||||||||
Additional tier 1 capital | |||||||||||||||||||||||||||||
Shareholders’ preferred equity | 2,177 | 2,281 | 2,866 | 2,680 | 2,196 | ||||||||||||||||||||||||
Tier 1 capital | 14,426 | 14,531 | 15,462 | 11,920 | 11,083 | ||||||||||||||||||||||||
Long-term debt and other tier 2 qualifying instruments | 1,540 | 1,552 | 1,062 | 610 | 660 | ||||||||||||||||||||||||
Qualifying allowance for loan and lease losses | 1,281 | 1,290 | 1,345 | 1,119 | 1,113 | ||||||||||||||||||||||||
Tier 2 capital | 2,821 | 2,842 | 2,407 | 1,729 | 1,773 | ||||||||||||||||||||||||
Total risk-based capital | $ | 17,247 | $ | 17,373 | $ | 17,869 | $ | 13,649 | $ | 12,856 | |||||||||||||||||||
Risk-weighted assets (RWA)(1) | $ | 131,302 | $ | 128,023 | $ | 126,241 | $ | 89,494 | $ | 88,878 | |||||||||||||||||||
Common equity tier 1 risk-based capital ratio (1) | 9.33 | % | 9.57 | % | 9.98 | % | 10.32 | % | 10.00 | % | |||||||||||||||||||
Other regulatory capital data: | |||||||||||||||||||||||||||||
Tier 1 leverage ratio (1) | 8.56 | 8.62 | 11.65 | 9.85 | 9.32 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio (1) | 10.99 | 11.35 | 12.25 | 13.32 | 12.47 | ||||||||||||||||||||||||
Total risk-based capital ratio (1) | 13.13 | 13.57 | 14.15 | 15.25 | 14.46 | ||||||||||||||||||||||||
Non-regulatory capital data: | |||||||||||||||||||||||||||||
Tangible common equity / RWA ratio (1) | 8.83 | 9.14 | 9.61 | 9.82 | 9.74 | ||||||||||||||||||||||||
(1)December 31, 2021, 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% of the cumulative change in the reported allowance for credit losses since adopting CECL, excluding the allowance established at acquisition for purchased credit deteriorated loans.
16
Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data
(Unaudited)
Quarterly common stock summary
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.155 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||||||||||||||||
| Common shares outstanding (in millions) | |||||||||||||||||||||||||||||
Average - basic | 1,444 | 1,463 | 1,125 | 1,018 | 1,017 | ||||||||||||||||||||||||
Average - diluted | 1,471 | 1,487 | 1,125 | 1,041 | 1,036 | ||||||||||||||||||||||||
Ending | 1,438 | 1,446 | 1,477 | 1,018 | 1,017 | ||||||||||||||||||||||||
Tangible book value per common share (1) | $ | 8.06 | $ | 8.09 | $ | 8.22 | $ | 8.64 | $ | 8.51 | |||||||||||||||||||
| Common share repurchases (in millions) | |||||||||||||||||||||||||||||
Number of shares repurchased | 10 | 33 | — | — | — | ||||||||||||||||||||||||
Non-regulatory capital
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||||||||||
Calculation of tangible equity / asset ratio: | |||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 19,297 | $ | 19,479 | $ | 20,511 | $ | 13,600 | $ | 12,993 | |||||||||||||||||||
| Goodwill and other intangible assets | (5,591) | (5,571) | (5,585) | (2,171) | (2,181) | ||||||||||||||||||||||||
| Deferred tax liability on other intangible assets (1) | 51 | 54 | 56 | 38 | 40 | ||||||||||||||||||||||||
Total tangible equity | 13,757 | 13,962 | 14,982 | 11,467 | 10,852 | ||||||||||||||||||||||||
| Preferred equity | (2,167) | (2,267) | (2,851) | (2,676) | (2,191) | ||||||||||||||||||||||||
Total tangible common equity | $ | 11,590 | $ | 11,695 | $ | 12,131 | $ | 8,791 | $ | 8,661 | |||||||||||||||||||
Total assets | $ | 174,064 | $ | 173,878 | $ | 175,172 | $ | 125,768 | $ | 123,038 | |||||||||||||||||||
| Goodwill and other intangible assets | (5,591) | (5,571) | (5,585) | (2,171) | (2,181) | ||||||||||||||||||||||||
| Deferred tax liability on other intangible assets (1) | 51 | 54 | 56 | 38 | 40 | ||||||||||||||||||||||||
Total tangible assets | $ | 168,524 | $ | 168,361 | $ | 169,643 | $ | 123,635 | $ | 120,897 | |||||||||||||||||||
Tangible equity / tangible asset ratio | 8.16 | % | 8.29 | % | 8.83 | % | 9.28 | % | 8.98 | % | |||||||||||||||||||
Tangible common equity / tangible asset ratio | 6.88 | 6.95 | 7.15 | 7.11 | 7.16 | ||||||||||||||||||||||||
Other data: | |||||||||||||||||||||||||||||
Number of employees (Average full-time equivalent) | 20,309 | 20,908 | 17,018 | 15,449 | 15,477 | ||||||||||||||||||||||||
Number of domestic full-service branches (2) | 1,087 | 1,236 | 1,239 | 814 | 839 | ||||||||||||||||||||||||
ATM Count | 1,756 | 2,317 | 2,340 | 1,314 | 1,322 | ||||||||||||||||||||||||
(1)Deferred tax liability related to other intangible assets is calculated at a 21% tax rate.
(2)Includes Regional Banking and The Huntington Private Client Group offices.
17
Huntington Bancshares Incorporated
Consolidated Annual Average Balance Sheets
(Unaudited)
| Annual Average Balances (1) | |||||||||||||||||||||||||||||||||||||||||
| Change from 2020 | Change from 2019 | ||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions) | 2021 | Amount | Percent | 2020 | Amount | Percent | 2019 | ||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in Federal Reserve Bank | $ | 8,129 | $ | 4,255 | 110 | % | $ | 3,874 | $ | 3,322 | 602 | % | $ | 552 | |||||||||||||||||||||||||||
| Interest-bearing deposits in banks | 372 | 196 | 111 | 176 | 34 | 24 | 142 | ||||||||||||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||||||||||||||
| Trading account securities | 50 | (9) | (15) | 59 | (77) | (57) | 136 | ||||||||||||||||||||||||||||||||||
| Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||||
| Taxable | 19,767 | 8,375 | 74 | 11,392 | 498 | 5 | 10,894 | ||||||||||||||||||||||||||||||||||
| Tax-exempt | 2,916 | 181 | 7 | 2,735 | (172) | (6) | 2,907 | ||||||||||||||||||||||||||||||||||
| Total available-for-sale securities | 22,683 | 8,556 | 61 | 14,127 | 326 | 2 | 13,801 | ||||||||||||||||||||||||||||||||||
| Allowance for securities losses | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Net available-for-sale securities | 22,683 | 8,556 | 61 | 14,127 | 326 | 2 | 13,801 | ||||||||||||||||||||||||||||||||||
| Held-to-maturity securities - taxable | 10,000 | 752 | 8 | 9,248 | 603 | 7 | 8,645 | ||||||||||||||||||||||||||||||||||
| Allowance for securities losses | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Net Held-to-maturity securities - taxable | 10,000 | 752 | 8 | 9,248 | 603 | 7 | 8,645 | ||||||||||||||||||||||||||||||||||
| Other securities | 556 | 113 | 26 | 443 | (28) | (6) | 471 | ||||||||||||||||||||||||||||||||||
| Total securities | 33,289 | 9,412 | 39 | 23,877 | 824 | 4 | 23,053 | ||||||||||||||||||||||||||||||||||
| Loans held for sale | 1,398 | 277 | 25 | 1,121 | 305 | 37 | 816 | ||||||||||||||||||||||||||||||||||
| Loans and leases:(2) | |||||||||||||||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 36,898 | 5,274 | 17 | 31,624 | 3,339 | 12 | 28,285 | ||||||||||||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
| Construction | 1,500 | 344 | 30 | 1,156 | (15) | (1) | 1,171 | ||||||||||||||||||||||||||||||||||
| Commercial | 9,912 | 4,014 | 68 | 5,898 | 196 | 3 | 5,702 | ||||||||||||||||||||||||||||||||||
| Commercial real estate | 11,412 | 4,358 | 62 | 7,054 | 181 | 3 | 6,873 | ||||||||||||||||||||||||||||||||||
| Lease financing | 3,739 | 1,446 | 63 | 2,293 | 29 | 1 | 2,264 | ||||||||||||||||||||||||||||||||||
| Total commercial | 52,049 | 11,078 | 27 | 40,971 | 3,549 | 9 | 37,422 | ||||||||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 15,953 | 4,259 | 36 | 11,694 | 607 | 5 | 11,087 | ||||||||||||||||||||||||||||||||||
| Automobile | 13,008 | 170 | 1 | 12,838 | 495 | 4 | 12,343 | ||||||||||||||||||||||||||||||||||
| Home equity | 10,018 | 1,088 | 12 | 8,930 | (486) | (5) | 9,416 | ||||||||||||||||||||||||||||||||||
| RV and marine | 4,672 | 796 | 21 | 3,876 | 425 | 12 | 3,451 | ||||||||||||||||||||||||||||||||||
| Other consumer | 1,287 | 201 | 19 | 1,086 | (173) | (14) | 1,259 | ||||||||||||||||||||||||||||||||||
| Total consumer | 44,938 | 6,514 | 17 | 38,424 | 868 | 2 | 37,556 | ||||||||||||||||||||||||||||||||||
| Total loans and leases | 96,987 | 17,592 | 22 | 79,395 | 4,417 | 6 | 74,978 | ||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | (1,993) | (412) | (26) | (1,581) | (795) | (101) | (786) | ||||||||||||||||||||||||||||||||||
| Net loans and leases | 94,994 | 17,180 | 22 | 77,814 | 3,622 | 5 | 74,192 | ||||||||||||||||||||||||||||||||||
| Total earning assets | 140,175 | 31,732 | 29 | 108,443 | 8,902 | 9 | 99,541 | ||||||||||||||||||||||||||||||||||
| Cash and due from banks | 1,356 | 232 | 21 | 1,124 | 282 | 33 | 842 | ||||||||||||||||||||||||||||||||||
| Intangible assets | 4,108 | 1,907 | 87 | 2,201 | (45) | (2) | 2,246 | ||||||||||||||||||||||||||||||||||
| All other assets | 8,635 | 1,590 | 23 | 7,045 | 917 | 15 | 6,128 | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 152,281 | $ | 35,049 | 30 | % | $ | 117,232 | $ | 9,261 | 9 | % | $ | 107,971 | |||||||||||||||||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||
| Demand deposits - interest-bearing | $ | 32,708 | $ | 9,194 | 39 | % | $ | 23,514 | $ | 3,656 | 18 | % | $ | 19,858 | |||||||||||||||||||||||||||
| Money market deposits | 30,039 | 4,344 | 17 | 25,695 | 1,923 | 8 | 23,772 | ||||||||||||||||||||||||||||||||||
| Savings and other domestic deposits | 17,357 | 6,637 | 62 | 10,720 | 804 | 8 | 9,916 | ||||||||||||||||||||||||||||||||||
| Core certificates of deposit (3) | 2,368 | (242) | (9) | 2,610 | (2,980) | (53) | 5,590 | ||||||||||||||||||||||||||||||||||
| Other domestic deposits of $250,000 or more | 353 | 137 | 63 | 216 | (103) | (32) | 319 | ||||||||||||||||||||||||||||||||||
| Negotiable CDs, brokered and other deposits | 3,525 | (297) | (8) | 3,822 | 1,006 | 36 | 2,816 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 86,350 | 19,773 | 30 | 66,577 | 4,306 | 7 | 62,271 | ||||||||||||||||||||||||||||||||||
| Short-term borrowings | 278 | (869) | (76) | 1,147 | (1,297) | (53) | 2,444 | ||||||||||||||||||||||||||||||||||
| Long-term debt | 7,479 | (2,017) | (21) | 9,496 | 164 | 2 | 9,332 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 94,107 | 16,887 | 22 | 77,220 | 3,173 | 4 | 74,047 | ||||||||||||||||||||||||||||||||||
| Demand deposits - noninterest-bearing | 37,960 | 12,624 | 50 | 25,336 | 5,275 | 26 | 20,061 | ||||||||||||||||||||||||||||||||||
| All other liabilities | 3,205 | 832 | 35 | 2,373 | 70 | 3 | 2,303 | ||||||||||||||||||||||||||||||||||
| Total Huntington Bancshares Inc shareholders’ equity | 16,997 | 4,694 | 38 | 12,303 | 743 | 6 | 11,560 | ||||||||||||||||||||||||||||||||||
| Non-controlling interest | 12 | 12 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total Equity | $ | 17,009 | $ | 4,706 | 38 | $ | 12,303 | $ | 743 | 6 | $ | 11,560 | |||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 152,281 | $ | 35,049 | 30 | % | $ | 117,232 | $ | 9,261 | 9 | % | $ | 107,971 | |||||||||||||||||||||||||||
(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 Annual Net Interest Margin - Interest Income / Expense(1)(2)
(Unaudited)
Annual Interest Income / Expense | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Assets | |||||||||||||||||
| Interest-bearing deposits in Federal Reserve Bank | $ | 11 | $ | 6 | $ | 12 | |||||||||||
Interest-bearing deposits in banks | 1 | 1 | 3 | ||||||||||||||
Securities: | |||||||||||||||||
Trading account securities | 1 | 2 | 3 | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable | 261 | 237 | 295 | ||||||||||||||
Tax-exempt | 71 | 77 | 105 | ||||||||||||||
Total available-for-sale securities | 332 | 314 | 400 | ||||||||||||||
Held-to-maturity securities - taxable | 174 | 216 | 218 | ||||||||||||||
| Other securities | 10 | 6 | 16 | ||||||||||||||
Total securities | 517 | 538 | 637 | ||||||||||||||
Loans held for sale | 41 | 34 | 31 | ||||||||||||||
Loans and leases: | |||||||||||||||||
Commercial: | |||||||||||||||||
Commercial and industrial | 1,446 | 1,166 | 1,313 | ||||||||||||||
Commercial real estate: | |||||||||||||||||
Construction | 55 | 44 | 64 | ||||||||||||||
Commercial | 307 | 181 | 273 | ||||||||||||||
Commercial real estate | 362 | 225 | 337 | ||||||||||||||
| Lease Financing | 186 | 124 | 128 | ||||||||||||||
Total commercial | 1,994 | 1,515 | 1,778 | ||||||||||||||
Consumer: | |||||||||||||||||
Residential mortgage | 479 | 406 | 422 | ||||||||||||||
| Automobile | 471 | 504 | 500 | ||||||||||||||
| Home equity | 391 | 358 | 508 | ||||||||||||||
| RV and marine | 199 | 181 | 171 | ||||||||||||||
Other consumer | 112 | 125 | 165 | ||||||||||||||
Total consumer | 1,652 | 1,574 | 1,766 | ||||||||||||||
Total loans and leases | 3,646 | 3,089 | 3,544 | ||||||||||||||
Total earning assets | $ | 4,216 | $ | 3,668 | $ | 4,227 | |||||||||||
Liabilities | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Demand deposits - interest-bearing | $ | 12 | $ | 32 | $ | 116 | |||||||||||
| Money market deposits | 21 | 100 | 260 | ||||||||||||||
Savings and other domestic deposits | 5 | 10 | 22 | ||||||||||||||
| Core certificates of deposit | 1 | 38 | 119 | ||||||||||||||
Other domestic deposits of $250,000 or more | 1 | 3 | 7 | ||||||||||||||
Negotiable CDS, brokered and other deposits | 5 | 15 | 61 | ||||||||||||||
Total interest-bearing deposits | 45 | 198 | 585 | ||||||||||||||
Short-term borrowings | 1 | 13 | 54 | ||||||||||||||
Long-term debt | 43 | 212 | 349 | ||||||||||||||
Total interest-bearing liabilities | 89 | 423 | 988 | ||||||||||||||
Net interest income | $ | 4,127 | $ | 3,245 | $ | 3,239 | |||||||||||
(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.
19
Huntington Bancshares Incorporated
Consolidated Annual Net Interest Margin - Yield
(Unaudited)
Annual Average Rates(2) | |||||||||||||||||
Fully-taxable equivalent basis(1) | 2021 | 2020 | 2019 | ||||||||||||||
Assets | |||||||||||||||||
| Interest-bearing deposits in Federal Reserve Bank | 0.14 | % | 0.15 | % | 2.12 | % | |||||||||||
Interest-bearing deposits in banks | 0.04 | 0.47 | 2.01 | ||||||||||||||
Securities: | |||||||||||||||||
Trading account securities | 3.32 | 3.10 | 2.17 | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable | 1.32 | 2.08 | 2.71 | ||||||||||||||
Tax-exempt | 2.42 | 2.84 | 3.61 | ||||||||||||||
Total available-for-sale securities | 1.46 | 2.23 | 2.90 | ||||||||||||||
Held-to-maturity securities - taxable | 1.74 | 2.33 | 2.52 | ||||||||||||||
| Other securities | 1.75 | 1.41 | 3.47 | ||||||||||||||
Total securities | 1.55 | 2.25 | 2.76 | ||||||||||||||
Loans held for sale | 2.96 | 3.06 | 3.76 | ||||||||||||||
Loans and leases: (4) | |||||||||||||||||
Commercial: | |||||||||||||||||
Commercial and industrial | 3.92 | 3.69 | 4.64 | ||||||||||||||
Commercial real estate: | |||||||||||||||||
Construction | 3.67 | 3.84 | 5.51 | ||||||||||||||
Commercial | 3.10 | 3.07 | 4.79 | ||||||||||||||
Commercial real estate | 3.17 | 3.19 | 4.91 | ||||||||||||||
| Lease financing | 4.98 | 5.42 | 5.66 | ||||||||||||||
Total commercial | 3.83 | 3.70 | 4.75 | ||||||||||||||
Consumer: | |||||||||||||||||
Residential mortgage | 3.00 | 3.47 | 3.81 | ||||||||||||||
| Automobile | 3.62 | 3.93 | 4.05 | ||||||||||||||
| Home equity | 3.90 | 4.01 | 5.40 | ||||||||||||||
| RV and marine | 4.27 | 4.68 | 4.95 | ||||||||||||||
Other consumer | 8.73 | 11.48 | 13.11 | ||||||||||||||
Total consumer | 3.68 | 4.10 | 4.70 | ||||||||||||||
Total loans and leases | 3.76 | 3.89 | 4.73 | ||||||||||||||
Total earning assets | 3.01 | 3.38 | 4.25 | ||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Demand deposits - interest-bearing | 0.04 | % | 0.14 | % | 0.58 | % | |||||||||||
| Money market deposits | 0.07 | 0.39 | 1.09 | ||||||||||||||
Savings and other domestic deposits | 0.03 | 0.09 | 0.22 | ||||||||||||||
| Core certificates of deposit (4) | 0.03 | 1.44 | 2.13 | ||||||||||||||
Other domestic deposits of $250,000 or more | 0.21 | 1.18 | 1.82 | ||||||||||||||
Negotiable CDS, brokered and other deposits | 0.16 | 0.38 | 2.18 | ||||||||||||||
Total interest-bearing deposits | 0.05 | 0.30 | 0.94 | ||||||||||||||
Short-term borrowings | 0.20 | 1.18 | 2.23 | ||||||||||||||
Long-term debt | 0.57 | 2.24 | 3.74 | ||||||||||||||
Total interest bearing liabilities | 0.09 | 0.55 | 1.34 | ||||||||||||||
Demand deposits - noninterest-bearing | — | — | — | ||||||||||||||
Net interest rate spread | 2.92 | 2.83 | 2.91 | ||||||||||||||
Impact of noninterest-bearing funds on margin | 0.02 | 0.16 | 0.35 | ||||||||||||||
Net interest margin | 2.94 | % | 2.99 | % | 3.26 | % | |||||||||||
| Commercial Loan Derivative Impact | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
Annual Average Rates | |||||||||||||||||
Fully-taxable equivalent basis(1) | 2021 | 2020 | 2019 | ||||||||||||||
| Commercial loans (2)(3) | 3.50 | % | 3.32 | % | 4.72 | % | |||||||||||
Impact of commercial loan derivatives | 0.33 | 0.38 | 0.03 | ||||||||||||||
Total commercial - as reported | 3.83 | % | 3.70 | % | 4.75 | % | |||||||||||
Average 1 Month LIBOR | 0.10 | % | 0.52 | % | 2.22 | % | |||||||||||
(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 deposits of $250,000 or more.
20
Huntington Bancshares Incorporated
Selected Annual Income Statement Data
(Unaudited)
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
| (dollar amounts in millions, except per share data) | Change | Change | |||||||||||||||||||||||||||||||||||||||
| 2021 | Amount | Percent | 2020 | Amount | Percent | 2019 | |||||||||||||||||||||||||||||||||||
Interest income | $ | 4,191 | $ | 544 | 15 | % | $ | 3,647 | $ | (554) | (13) | % | $ | 4,201 | |||||||||||||||||||||||||||
Interest expense | 89 | (334) | (79) | 423 | (565) | (57) | 988 | ||||||||||||||||||||||||||||||||||
Net interest income | 4,102 | 878 | 27 | 3,224 | 11 | — | 3,213 | ||||||||||||||||||||||||||||||||||
Provision for credit losses | 25 | (1,023) | (98) | 1,048 | 761 | 265 | 287 | ||||||||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 4,077 | 1,901 | 87 | 2,176 | (750) | (26) | 2,926 | ||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 372 | 71 | 24 | 301 | (71) | (19) | 372 | ||||||||||||||||||||||||||||||||||
| Card and payment processing income | 334 | 86 | 35 | 248 | 2 | 1 | 246 | ||||||||||||||||||||||||||||||||||
| Mortgage banking income | 309 | (57) | (16) | 366 | 199 | 119 | 167 | ||||||||||||||||||||||||||||||||||
| Trust and investment management services | 232 | 43 | 23 | 189 | 11 | 6 | 178 | ||||||||||||||||||||||||||||||||||
| Capital markets fees | 151 | 26 | 21 | 125 | 2 | 2 | 123 | ||||||||||||||||||||||||||||||||||
| Insurance income | 105 | 8 | 8 | 97 | 9 | 10 | 88 | ||||||||||||||||||||||||||||||||||
| Leasing revenue | 99 | 78 | 371 | 21 | 2 | 11 | 19 | ||||||||||||||||||||||||||||||||||
| Bank owned life insurance income | 69 | 5 | 8 | 64 | (2) | (3) | 66 | ||||||||||||||||||||||||||||||||||
| Gain on sale of loans | 9 | (33) | (79) | 42 | (13) | (24) | 55 | ||||||||||||||||||||||||||||||||||
| Net gains (losses) on sales of securities | 9 | 10 | NM | (1) | 23 | 96 | (24) | ||||||||||||||||||||||||||||||||||
| Other noninterest income | 200 | 61 | 44 | 139 | (25) | (15) | 164 | ||||||||||||||||||||||||||||||||||
Total noninterest income | 1,889 | 298 | 19 | 1,591 | 137 | 9 | 1,454 | ||||||||||||||||||||||||||||||||||
| Personnel costs | 2,335 | 643 | 38 | 1,692 | 38 | 2 | 1,654 | ||||||||||||||||||||||||||||||||||
| Outside data processing and other services | 850 | 466 | 121 | 384 | 38 | 11 | 346 | ||||||||||||||||||||||||||||||||||
| Net occupancy | 277 | 119 | 75 | 158 | (1) | (1) | 159 | ||||||||||||||||||||||||||||||||||
| Equipment | 248 | 68 | 38 | 180 | 17 | 10 | 163 | ||||||||||||||||||||||||||||||||||
| Professional services | 113 | 58 | 105 | 55 | 1 | 2 | 54 | ||||||||||||||||||||||||||||||||||
| Marketing | 89 | 51 | 134 | 38 | 1 | 3 | 37 | ||||||||||||||||||||||||||||||||||
| Deposit and other insurance expense | 51 | 19 | 59 | 32 | (2) | (6) | 34 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 48 | 7 | 17 | 41 | (8) | (16) | 49 | ||||||||||||||||||||||||||||||||||
| Lease financing equipment depreciation | 41 | 40 | NM | 1 | (3) | (75) | 4 | ||||||||||||||||||||||||||||||||||
| Other noninterest expense | 323 | 109 | 51 | 214 | (7) | (3) | 221 | ||||||||||||||||||||||||||||||||||
Total noninterest expense | 4,375 | 1,580 | 57 | 2,795 | 74 | 3 | 2,721 | ||||||||||||||||||||||||||||||||||
Income before income taxes | 1,591 | 619 | 64 | 972 | (687) | (41) | 1,659 | ||||||||||||||||||||||||||||||||||
| Provision for income taxes | 294 | 139 | 90 | 155 | (93) | (38) | 248 | ||||||||||||||||||||||||||||||||||
| Income after income taxes | 1,297 | 480 | 59 | 817 | (594) | (42) | 1,411 | ||||||||||||||||||||||||||||||||||
| Income attributable to non-controlling interest | 2 | 2 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Net income attributable to Huntington Bancshares Inc | 1,295 | 478 | 59 | 817 | (594) | (42) | 1,411 | ||||||||||||||||||||||||||||||||||
| Dividends on preferred shares | 131 | 31 | 31 | 100 | 26 | 35 | 74 | ||||||||||||||||||||||||||||||||||
| Impact of preferred stock redemption | 11 | 11 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net income applicable to common shares | $ | 1,153 | $ | 436 | 61 | % | $ | 717 | $ | (620) | (46) | % | $ | 1,337 | |||||||||||||||||||||||||||
Average common shares - basic | 1,262 | 245 | 24 | % | 1,017 | (22) | (2) | % | 1,039 | ||||||||||||||||||||||||||||||||
Average common shares - diluted | 1,287 | 254 | 25 | 1,033 | (23) | (2) | 1,056 | ||||||||||||||||||||||||||||||||||
Per common share | |||||||||||||||||||||||||||||||||||||||||
Net income - basic | $ | 0.91 | $ | 0.20 | 28 | $ | 0.71 | $ | (0.58) | (45) | $ | 1.29 | |||||||||||||||||||||||||||||
Net income - diluted | 0.90 | 0.21 | 30 | 0.69 | (0.58) | (46) | 1.27 | ||||||||||||||||||||||||||||||||||
Cash dividends declared | 0.605 | 0.01 | 1 | 0.60 | 0.02 | 3 | 0.58 | ||||||||||||||||||||||||||||||||||
Revenue - fully taxable equivalent (FTE) | |||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 4,102 | $ | 878 | 27 | $ | 3,224 | $ | 11 | — | $ | 3,213 | |||||||||||||||||||||||||||||
FTE adjustment (1) | 25 | 4 | 19 | 21 | (5) | (19) | 26 | ||||||||||||||||||||||||||||||||||
Net interest income | 4,127 | 882 | 27 | 3,245 | 6 | — | 3,239 | ||||||||||||||||||||||||||||||||||
Noninterest income | 1,889 | 298 | 19 | 1,591 | 137 | 9 | 1,454 | ||||||||||||||||||||||||||||||||||
Total revenue (1) | $ | 6,016 | $ | 1,180 | 24 | % | $ | 4,836 | $ | 143 | 3 | % | $ | 4,693 | |||||||||||||||||||||||||||
NM - Not Meaningful
(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
21
Huntington Bancshares Incorporated
Annual Mortgage Banking Income
(Unaudited)
Year Ended December 31, | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Net origination and secondary marketing income | $ | 300 | $ | 346 | $ | 132 | |||||||||||
Net mortgage servicing income | |||||||||||||||||
Loan servicing income | 77 | 61 | 59 | ||||||||||||||
Amortization of capitalized servicing | (81) | (53) | (45) | ||||||||||||||
Operating income | (4) | 8 | 14 | ||||||||||||||
MSR valuation adjustment (1) | 27 | (52) | (15) | ||||||||||||||
Gains (losses) due to MSR hedging | (26) | 53 | 29 | ||||||||||||||
Net MSR risk management | 1 | 1 | 14 | ||||||||||||||
Total net mortgage servicing income | $ | (3) | $ | 9 | $ | 28 | |||||||||||
| All other | 12 | 11 | 7 | ||||||||||||||
Mortgage banking income | $ | 309 | $ | 366 | $ | 167 | |||||||||||
Mortgage origination volume | $ | 16,396 | $ | 13,489 | $ | 7,744 | |||||||||||
Mortgage origination volume for sale | 9,828 | 8,842 | 4,938 | ||||||||||||||
Third party mortgage loans serviced (2) | 31,017 | 23,471 | 22,425 | ||||||||||||||
Mortgage servicing rights (2) | 351 | 210 | 212 | ||||||||||||||
MSR % of investor servicing portfolio | 1.13 | % | 0.89 | % | 0.95 | % | |||||||||||
(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
Annual Credit Reserves Analysis
(Unaudited)
Year Ended December 31, | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 1,814 | $ | 783 | $ | 772 | |||||||||||
| Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13) | — | 391 | — | ||||||||||||||
| Loan and lease charge-offs (1) | (382) | (540) | (362) | ||||||||||||||
| Recoveries of loans and leases previously charged off | 167 | 91 | 97 | ||||||||||||||
| Net loan and lease charge-offs | (215) | (449) | (265) | ||||||||||||||
| Provision for loan and lease losses | (1) | 1,089 | 277 | ||||||||||||||
| Allowance on loans and leases purchased with credit deterioration | 432 | — | — | ||||||||||||||
Allowance of assets sold or transferred to loans held for sale | — | — | (1) | ||||||||||||||
Allowance for loan and lease losses, end of period | 2,030 | 1,814 | 783 | ||||||||||||||
| Allowance for unfunded lending commitments, beginning of period | 52 | 104 | 96 | ||||||||||||||
| Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13) | — | 2 | — | ||||||||||||||
| Provision for (reduction in) unfunded lending commitments | 26 | (41) | 10 | ||||||||||||||
| Unfunded lending commitment losses | (1) | (13) | (2) | ||||||||||||||
| Allowance for unfunded lending commitments, end of period | 77 | 52 | 104 | ||||||||||||||
| Total allowance for credit losses, end of period | $ | 2,107 | $ | 1,866 | $ | 887 | |||||||||||
Allowance for loan and lease losses (ALLL) as % of: | |||||||||||||||||
Total loans and leases | 1.81 | % | 2.22 | % | 1.04 | % | |||||||||||
Nonaccrual loans and leases (NALs) | 284 | 341 | 167 | ||||||||||||||
Nonperforming assets (NPAs) | 271 | 323 | 157 | ||||||||||||||
Total allowance for credit losses (ACL) as % of: | |||||||||||||||||
Total loans and leases | 1.88 | % | 2.29 | % | 1.18 | % | |||||||||||
Nonaccrual loans and leases (NALs) | 294 | 351 | 190 | ||||||||||||||
Nonperforming assets (NPAs) | 281 | 332 | 178 | ||||||||||||||
(1)Net charge-offs and associated metrics for the period ended December 31, 2021 exclude $80 million of charge-offs recognized immediately upon completion of the TCF acquisition and related to required purchase accounting treatment.
| Year Ended December 31, | |||||||||||||||||
| (dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
| Allocation of allowance for credit losses | |||||||||||||||||
| Commercial | |||||||||||||||||
| Commercial and industrial | $ | 832 | $ | 879 | $ | 426 | |||||||||||
| Commercial real estate | 586 | 297 | 83 | ||||||||||||||
| Lease financing | 44 | 60 | 43 | ||||||||||||||
| Total commercial | 1,462 | 1,236 | 552 | ||||||||||||||
| Consumer | |||||||||||||||||
| Residential mortgage | 145 | 79 | 23 | ||||||||||||||
| Automobile | 108 | 166 | 57 | ||||||||||||||
| Home equity | 88 | 124 | 50 | ||||||||||||||
| RV and marine | 105 | 129 | 21 | ||||||||||||||
| Other consumer | 122 | 80 | 80 | ||||||||||||||
| Total consumer | 568 | 578 | 231 | ||||||||||||||
| Total allowance for loan and lease losses | 2,030 | 1,814 | 783 | ||||||||||||||
| Allowance for unfunded lending commitments | 77 | 52 | 104 | ||||||||||||||
| Total allowance for credit losses | $ | 2,107 | $ | 1,866 | $ | 887 | |||||||||||
23
Huntington Bancshares Incorporated
Annual Net Charge-Off Analysis
(Unaudited)
Year Ended December 31, | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Net charge-offs by loan and lease type: | |||||||||||||||||
Commercial: | |||||||||||||||||
Commercial and industrial | $ | 99 | $ | 287 | $ | 123 | |||||||||||
Commercial real estate: | |||||||||||||||||
Construction | (1) | — | (2) | ||||||||||||||
Commercial | 18 | 43 | (1) | ||||||||||||||
Commercial real estate | 17 | 43 | (3) | ||||||||||||||
| Lease financing | 44 | 12 | 5 | ||||||||||||||
Total commercial | 160 | 342 | 125 | ||||||||||||||
Consumer: | |||||||||||||||||
| Residential mortgage | (1) | 3 | 6 | ||||||||||||||
| Automobile | (6) | 33 | 32 | ||||||||||||||
| Home equity | (5) | 6 | 8 | ||||||||||||||
RV and marine | 5 | 12 | 11 | ||||||||||||||
Other consumer | 62 | 53 | 83 | ||||||||||||||
Total consumer | 55 | 107 | 140 | ||||||||||||||
| Total net charge-offs (1) | $ | 215 | $ | 449 | $ | 265 | |||||||||||
Net charge-offs - annualized percentages: | |||||||||||||||||
Commercial: | |||||||||||||||||
Commercial and industrial | 0.27 | % | 0.91 | % | 0.44 | % | |||||||||||
Commercial real estate: | |||||||||||||||||
Construction | (0.07) | (0.05) | (0.15) | ||||||||||||||
Commercial | 0.18 | 0.74 | (0.02) | ||||||||||||||
Commercial real estate | 0.14 | 0.61 | (0.05) | ||||||||||||||
| Lease financing | 1.18 | 0.54 | 0.19 | ||||||||||||||
Total commercial | 0.31 | 0.84 | 0.33 | ||||||||||||||
Consumer: | |||||||||||||||||
| Residential mortgage | — | 0.03 | 0.06 | ||||||||||||||
| Automobile | (0.05) | 0.26 | 0.26 | ||||||||||||||
| Home equity | (0.05) | 0.07 | 0.08 | ||||||||||||||
RV and marine | 0.10 | 0.31 | 0.31 | ||||||||||||||
Other consumer | 4.84 | 4.84 | 6.62 | ||||||||||||||
Total consumer | 0.12 | 0.28 | 0.37 | ||||||||||||||
| Net charge-offs as a % of average loans (1) | 0.22 | % | 0.57 | % | 0.35 | % | |||||||||||
(1)Net charge-offs and associated metrics for the period ended December 31, 2021 exclude $80 million of charge-offs recognized immediately upon completion of the TCF acquisition and related to required purchase accounting treatment.
24
Huntington Bancshares Incorporated
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
| December 31, | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Nonaccrual loans and leases (NALs): | |||||||||||||||||
| Commercial and industrial | $ | 370 | $ | 349 | $ | 314 | |||||||||||
Commercial real estate | 104 | 15 | 10 | ||||||||||||||
| Lease financing | 48 | 4 | 9 | ||||||||||||||
Residential mortgage | 111 | 88 | 71 | ||||||||||||||
| Automobile | 3 | 4 | 4 | ||||||||||||||
| Home equity | 79 | 70 | 59 | ||||||||||||||
RV and marine | 1 | 2 | 1 | ||||||||||||||
Total nonaccrual loans and leases | 716 | 532 | 468 | ||||||||||||||
Other real estate, net: | |||||||||||||||||
Residential | 8 | 4 | 9 | ||||||||||||||
Commercial | 1 | — | 2 | ||||||||||||||
Total other real estate, net | 9 | 4 | 11 | ||||||||||||||
Other NPAs (1) | 25 | 27 | 19 | ||||||||||||||
Total nonperforming assets (3) | $ | 750 | $ | 563 | $ | 498 | |||||||||||
Nonaccrual loans and leases as a % of total loans and leases | 0.64 | % | 0.65 | % | 0.62 | % | |||||||||||
NPA ratio (2) | 0.67 | 0.69 | 0.66 | ||||||||||||||
December 31, | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Nonperforming assets, beginning of period | $ | 563 | $ | 498 | $ | 387 | |||||||||||
New nonperforming assets | 586 | 991 | 675 | ||||||||||||||
Returns to accruing status | (303) | (198) | (93) | ||||||||||||||
Loan and lease losses | (215) | (327) | (194) | ||||||||||||||
Payments | (416) | (292) | (188) | ||||||||||||||
Sales and held-for-sale transfers | (94) | (109) | (89) | ||||||||||||||
Nonperforming assets, end of period (2) | $ | 750 | $ | 563 | $ | 498 | |||||||||||
(1)Other nonperforming assets at December 31, 2019 include certain 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 nonperforming assets balance.
25
Huntington Bancshares Incorporated
Annual Accruing Past Due Loans and Leases
(Unaudited)
| December 31, | |||||||||||||||||
(dollar amounts in millions) | 2021 | 2020 | 2019 | ||||||||||||||
| Accruing loans and leases past due 90+ days: | |||||||||||||||||
| Commercial and industrial | $ | 13 | $ | — | $ | 11 | |||||||||||
| Lease financing | 11 | 10 | — | ||||||||||||||
| Residential mortgage (excluding loans guaranteed by the U.S. Government) | 25 | 30 | 20 | ||||||||||||||
| Automobile | 6 | 9 | 8 | ||||||||||||||
| Home equity | 17 | 14 | 14 | ||||||||||||||
| RV and marine | 3 | 3 | 2 | ||||||||||||||
| Other consumer | 3 | 3 | 7 | ||||||||||||||
| Total, excl. loans guaranteed by the U.S. Government | 78 | 69 | 62 | ||||||||||||||
| Add: loans guaranteed by U.S. Government | 132 | 102 | 109 | ||||||||||||||
| Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government | $ | 210 | $ | 171 | $ | 171 | |||||||||||
| Ratios: | |||||||||||||||||
| Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.07 | % | 0.08 | % | 0.08 | % | |||||||||||
| Guaranteed by U.S. Government, as a percent of total loans and leases | 0.12 | 0.13 | 0.14 | ||||||||||||||
| Including loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.19 | 0.21 | 0.23 | ||||||||||||||
26