HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - QUARTERLY FINANCIAL SUPPLEMENT

Attached files

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8-K - CURRENT REPORT - HUNTINGTON BANCSHARES INC /MD/	d758317d8k.htm
EX-99.1 - NEWS RELEASE - HUNTINGTON BANCSHARES INC /MD/	d758317dex991.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

June 2014

Table of Contents


Quarterly Key Statistics			1

Year To Date Key Statistics			2

Consolidated Balance Sheets			4

Loans and Leases Composition			5

Deposits Composition			6

Consolidated Quarterly Average Balance Sheets			7

Consolidated Quarterly Net Interest Margin—Interest Income / Expense			8

Consolidated Quarterly Net Interest Margin—Yield			9

Selected Quarterly Income Statement Data			10

Quarterly Mortgage Banking Income			11

Quarterly Credit Reserves Analysis			12

Quarterly Net Charge-Off Analysis			13

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			14

Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans			15

Quarterly Common Stock Summary, Capital, and Other Data			16

Consolidated Year To Date Average Balance Sheets			17

Consolidated Year To Date Net Interest Margin—Interest Income / Expense			18

Consolidated Year To Date Net Interest Margin—Yield			19

Selected Year To Date Income Statement Data			20

Year To Date Mortgage Banking Income			21

Year To Date Credit Reserves Analysis			22

Year To Date Net Charge-Off Analysis			23

Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			24

Year To Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans			25

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.

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,

•

Tier 1 common equity to risk-weighted assets using Basel I and Basel III definitions, and

•

Tangible common equity to risk-weighted assets using Basel I 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. Basel III Tier 1 common capital ratio estimates are based on management’s current interpretation, expectations, and understanding of the final U.S. Basel III rules adopted by the Federal Reserve Board and released on July 2, 2013.

Huntington Bancshares Incorporated

Quarterly Key Statistics⁽¹⁾

(Unaudited)


	2014						2013			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Second			First			Second			1Q14			2Q13
Net interest income	$	460,048		$	437,506		$	424,937			5	%		8	%
Provision for credit losses		29,385			24,630			24,722			19			19
Noninterest income		250,067			248,485			251,919			1			(1	)
Noninterest expense		458,636			460,121			445,865			—			3

Income before income taxes		222,094			201,240			206,269			10			8
Provision for income taxes		57,475			52,097			55,269			10			4

Net income	$	164,619		$	149,143		$	151,000			10	%		9	%

Dividends on preferred shares		7,963			7,964			7,967			—			—

Net income applicable to common shares	$	156,656		$	141,179		$	143,033			11	%		10	%

Net income per common share—diluted	$	0.19		$	0.17		$	0.17			12	%		12	%
Cash dividends declared per common share		0.05			0.05			0.05			—			—
Book value per common share at end of period		7.17			6.99			6.49			3			11
Tangible book value per common share at end of period		6.48			6.31			5.87			3			10
Average common shares—basic		821,546			829,659			834,730			(1	)		(2	)
Average common shares—diluted		834,687			842,677			843,840			(1	)		(1	)
Return on average assets		1.07	%		1.01	%		1.08	%
Return on average common shareholders’ equity		10.8			9.9			10.4
Return on average tangible common shareholders’ equity⁽²⁾		12.4			11.3			12.1
Net interest margin⁽³⁾		3.28			3.27			3.38
Efficiency ratio⁽⁴⁾		62.7			66.4			63.7
Noninterest Income/Total Revenue		34.9			35.9			36.9
Effective tax rate		25.9			25.9			26.8
Average loans and leases	$	45,023,793		$	43,423,355		$	41,280,065			4			9
Average loans and leases—linked quarter annualized growth rate		14.7	%		2.6	%		4.1	%
Average earning assets	$	57,076,706		$	54,961,237		$	51,156,168			4			12
Average total assets		61,830,210			59,692,484			55,889,271			4			11
Average core deposits⁽⁵⁾		45,611,033			45,194,597			43,768,948			1			4
Average core deposits—linked quarter annualized growth rate		3.7	%		4.0	%		1.4	%
Average shareholders’ equity	$	6,227,809		$	6,182,891		$	5,888,206			1			6
Total assets at end of period		63,797,113			61,145,753			56,103,819			4			14
Total shareholders’ equity at end of period		6,240,791			6,176,234			5,773,647			1			8
Net charge-offs (NCOs)		28,643			42,986			34,790			(33	)		(18	)
NCOs as a % of average loans and leases		0.25	%		0.40	%		0.34	%
Nonaccrual loans and leases (NALs)	$	324,957		$	327,158		$	363,546			(1	)		(11	)
NAL ratio		0.71	%		0.74	%		0.87	%
Nonperforming assets (NPAs)⁽⁶⁾	$	362,092		$	365,289		$	396,699			(1	)		(9	)
NPA ratio⁽⁶⁾		0.79	%		0.82	%		0.95	%		(4	)		(17	)
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		1.38			1.42			1.76
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		1.50			1.56			1.86
ACL as a % of NALs		213			211			214
ACL as a % of NPAs		191			191			196
Tier 1 leverage ratio ⁽⁷⁾		10.01			10.32			10.64
Tier 1 common risk-based capital ratio⁽⁷⁾		10.26			10.60			10.71
Tier 1 risk-based capital ratio ⁽⁷⁾		11.56			11.95			12.24
Total risk-based capital ratio ⁽⁷⁾		13.67			14.13			14.57
Tangible common equity / tangible assets ratio⁽⁸⁾		8.38			8.63			8.76

See Notes to the Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year To Date Key Statistics⁽¹⁾

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except per share amounts)	2014			2013			Amount			Percent
Net interest income	$	897,554		$	849,107		$	48,447			6	%
Provision for credit losses		54,015			54,314			(299	)		(1	)
Noninterest income		498,552			508,537			(9,985	)		(2	)
Noninterest expense		918,757			888,658			30,099			3

Income before income taxes		423,334			414,672			8,662			2
Provision for income taxes		109,572			110,398			(826	)		(1	)

Net Income	$	313,762		$	304,274		$	9,488			3	%

Dividends on preferred shares		15,927			15,937			(10	)		—

Net income applicable to common shares	$	297,835		$	288,337		$	9,498			3	%

Net income per common share—diluted	$	0.36		$	0.34		$	0.02			6	%
Cash dividends declared per common share		0.10			0.09			0.01			11
Average common shares—basic		825,603			837,917			(12,314	)		(1	)
Average common shares—diluted		838,546			846,274			(7,707	)		(1	)
Return on average assets		1.04	%		1.10	%
Return on average common shareholders’ equity		10.3			10.6
Return on average tangible common shareholders’ equity⁽²⁾		12.4			12.9
Net interest margin⁽³⁾		3.28			3.40
Efficiency ratio⁽⁴⁾		64.5			63.3
Noninterest Income/Total Revenue		35.4			37.1
Effective tax rate		25.9			26.6
Average loans and leases	$	44,227,995		$	41,073,143		$	3,154,852			8	%
Average earning assets		56,024,815			51,058,609			4,966,206			10
Average total assets		60,767,252			55,809,144			4,958,109			9
Average core deposits⁽⁵⁾		45,403,965			43,692,717			1,711,248			4
Average shareholders’ equity		6,205,474			5,861,347			344,127			6
Net charge-offs (NCOs)		71,629			86,477			(14,848	)		(17	)
NCOs as a % of average loans and leases		0.32	%		0.42	%		(0.10	)		(23	)

See Notes to the Annual and Quarterly Key Statistics.

Key Statistics Footnotes

⁽¹⁾	Comparisons for all presented periods are impacted by a number of factors. Refer to Significant Items.

⁽²⁾

Net income 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 35% tax rate.

⁽³⁾	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

⁽⁴⁾	Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

⁽⁵⁾	Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.

⁽⁶⁾	NPAs include other real estate owned.

⁽⁷⁾	June 30, 2014, figures are estimated.

⁽⁸⁾	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, and calculated assuming a 35% tax rate.

Huntington Bancshares Incorporated

Consolidated Balance Sheets


	2014			2013						Percent Changes vs.
(dollar amounts in thousands, except number of shares)	June 30,			December 31,			June 30,			4Q13			2Q13
	*(Unaudited)*						(Unaudited)
Assets
Cash and due from banks	$	1,218,453		$	1,001,132		$	993,906			22	%		23	%
Interest-bearing deposits in banks		69,634			57,043			76,715			22			(9	)
Trading account securities		50,541			35,573			80,927			42			(38	)
Loans held for sale		317,862			326,212			458,275			(3	)		(31	)
Available-for-sale and other securities		8,491,037			7,308,753			6,815,658			16			25
Held-to-maturity securities		3,621,995			3,836,667			2,172,229			(6	)		67
Loans and leases⁽¹⁾		46,079,775			43,120,500			41,739,847			7			10
Allowance for loan and lease losses		(635,101	)		(647,870	)		(733,076	)		(2	)		(13	)

Net loans and leases		45,444,674			42,472,630			41,006,771			7			11

Bank owned life insurance		1,693,991			1,647,170			1,620,604			3			5
Premises and equipment		622,289			634,657			626,745			(2	)		(1	)
Goodwill		505,448			444,268			444,268			14			14
Other intangible assets		81,460			93,193			113,874			(13	)		(28	)
Accrued income and other assets		1,679,729			1,609,876			1,693,847			4			(1	)

Total assets	$	63,797,113		$	59,467,174		$	56,103,819			7	%		14	%

Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	48,748,765		$	47,506,718		$	46,331,434			3	%		5	%
Short-term borrowings		1,252,409			552,143			630,405			127			99
Federal Home Loan Bank advances		2,883,173			1,808,293			983,420			59			193
Other long-term debt		2,602,869			1,349,119			155,126			93			1,578
Subordinated notes		983,310			1,100,860			1,114,368			(11	)		(12	)
Accrued expenses and other liabilities		1,085,796			1,059,888			1,115,419			2			(3	)

Total liabilities		57,556,322			53,377,021			50,330,172			8			14

Shareholder’s equity
Preferred stock—authorized 6,617,808 shares- Series A, 8.50% fixed rate, non-cumulative perpetual convertible preferred stock, par value of $0.01, and liquidation value per share of $1,000		362,507			362,507			362,507			—			—
Series B, floating rate, non-voting, non-cumulative perpetual preferred stock, par value of $0.01, and liquidation value per share of $1,000		23,785			23,785			23,785			—			—
Common stock—Par value of $0.01		8,182			8,322			8,310			(2	)		(2	)
Capital surplus		7,279,244			7,398,515			7,390,041			(2	)		(1	)
Less treasury shares, at cost		(9,071	)		(9,643	)		(10,719	)		(6	)		(15	)
Accumulated other comprehensive loss		(159,727	)		(214,009	)		(283,736	)		(25	)		(44	)
Retained earnings		(1,264,129	)		(1,479,324	)		(1,716,541	)		(15	)		(26	)

Total shareholders’ equity		6,240,791			6,090,153			5,773,647			2			8

Total liabilities and shareholders’ equity	$	63,797,113		$	59,467,174		$	56,103,819			7	%		14	%

Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		818,248,450			832,217,098			831,030,258
Common shares outstanding		817,002,296			830,963,427			829,674,914
Treasury shares outstanding		1,246,154			1,253,671			1,355,344
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		398,007			398,007			398,007

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

⁽²⁾	See page 6 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)


	2014								2013
(dollar amounts in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	18,899	41	%	$	18,046	41	%	$	17,594	41	%	$	17,335	41	%	$	17,113		41	%
Commercial real estate:
Construction		757	2			692	2			557	1			544	1			607		1
Commercial		4,233	9			4,339	10			4,293	10			4,328	10			4,286		10

Commercial real estate		4,990	11			5,031	12			4,850	11			4,872	11			4,893		11

Total commercial		23,889	52			23,077	53			22,444	52			22,207	52			22,006		52

Consumer:
Automobile		7,686	17			6,999	16			6,639	15			6,317	15			5,810		14
Home equity		8,405	18			8,373	19			8,336	19			8,347	20			8,369		20
Residential mortgage		5,707	12			5,542	12			5,321	12			5,307	12			5,168		12
Other consumer		393	1			363	—			380	2			378	1			387		2

Total consumer		22,191	48			21,277	47			20,676	48			20,349	48			19,734		48

Total loans and leases	$	46,080	100	%	$	44,354	100	%	$	43,120	100	%	$	42,556	100	%	$	41,740		100	%

Ending Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	13,096	29	%	$	13,027	29	%	$	12,710	30	%	$	12,639	30	%	$	12,605		30	%
Commercial Banking		11,846	26			10,962	25			10,735	25			10,988	26			10,755		26
AFCRE		14,762	33			14,125	32			13,568	31			12,841	30			12,433		30
RBHPCG		2,883	5			2,875	7			2,850	7			2,833	7			2,830		7
Home Lending		3,366	7			3,229	7			3,206	7			3,214	8			3,127		7
Treasury / Other		127	—			136	—			51	—			41	—			(10	)	—

Total loans and leases	$	46,080	100	%	$	44,354	100	%	$	43,120	100	%	$	42,556	100	%	$	41,740		100	%


									2013
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	13,040	29	%	$	12,807	29	%	$	12,675	29	%	$	12,589	30	%	$	12,643		31	%
Commercial Banking		11,292	25			10,861	25			11,122	26			10,780	26			10,690		26
AFCRE		14,460	32			13,679	32			13,216	31			12,558	30			11,999		29
RBHPCG		2,879	7			2,840	7			2,835	7			2,825	7			2,826		7
Home Lending		3,289	7			3,198	7			3,223	7			3,184	8			3,099		8
Treasury / Other		63	—			38	—			68	—			58	—			22		—

Total loans and leases	$	45,023	100	%	$	43,423	100	%	$	43,139	100	%	$	41,994	100	%	$	41,279		100	%

⁽¹⁾	As defined by regulatory guidance, there were no commercial loans outstanding that would be considered a concentration of lending to a particular industry or group of industries.

⁽²⁾	During the first quarter of 2014, we reorganized our business segments.

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)


	2014								2013
(dollar amounts in millions)	June 30,				March 31,				December 31,				September 30,				June 30,
Ending Balances by Type:
Demand deposits—noninterest-bearing	$	14,151	29	%	$	14,314	29	%	$	13,650	29	%	$	13,421	29	%	$	13,491	29	%
Demand deposits—interest-bearing		5,921	12			5,970	12			5,880	12			5,856	13			5,977	13
Money market deposits		17,563	36			17,693	36			17,213	36			16,212	34			15,131	33
Savings and other domestic deposits		5,036	10			5,115	10			4,871	10			4,946	11			5,054	11
Core certificates of deposit		3,272	7			3,557	7			3,723	8			4,108	9			4,353	9

Total core deposits		45,943	94			46,649	94			45,337	95			44,543	96			44,006	95
Other domestic deposits of $250,000 or more		241	—			289	1			274	1			268	1			283	1
Brokered deposits and negotiable CDs		2,198	5			2,074	4			1,580	3			1,366	3			1,695	4
Deposits in foreign offices		367	1			337	1			316	1			387	—			347	—

Total deposits	$	48,749	100	%	$	49,349	100	%	$	47,507	100	%	$	46,564	100	%	$	46,331	100	%

Total core deposits:
Commercial	$	20,629	45	%	$	20,507	44	%	$	19,982	44	%	$	19,526	44	%	$	18,922	43	%
Consumer		25,314	55			26,142	56			25,355	56			25,017	56			25,084	57

Total core deposits	$	45,943	100	%	$	46,649	100	%	$	45,337	100	%	$	44,543	100	%	$	44,006	100	%

Ending Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	28,836	60	%	$	29,370	62	%	$	28,294	60	%	$	28,163	61	%	$	28,209	61	%
Commercial Banking		9,793	20			10,217	22			10,188	21			9,969	21			9,079	20
AFCRE		1,457	3			1,203	3			1,171	2			1,125	2			1,068	2
RBHPCG		6,124	11			6,267	9			6,094	13			5,876	13			6,195	13
Home Lending		284	1			281	1			330	1			278	1			388	1
Treasury / Other		2,255	5			2,011	4			1,430	3			1,153	2			1,392	3

Total deposits	$	48,749	100	%	$	49,349	100	%	$	47,507	100	%	$	46,564	100	%	$	46,331	100	%


	2014								2013
	Second				First				Fourth				Third				Second
Average Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	29,108	60	%	$	28,633	60	%	$	28,424	61	%	$	28,156	61	%	$	28,339	61	%
Commercial Banking		9,780	20			10,060	21			9,861	21			9,604	21			9,017	20
AFCRE		1,183	2			1,142	2			1,114	2			1,064	2			1,002	2
RBHPCG		5,859	12			5,906	12			5,937	13			5,535	12			5,954	13
Home Lending		296	1			257	1			293	1			335	1			412	1
Treasury / Other		2,032	4			1,591	3			1,145	2			1,276	3			1,463	3

Total deposits	$	48,258	100	%	$	47,589	100	%	$	46,774	100	%	$	45,970	100	%	$	46,187	100	%

⁽¹⁾	Comprised primarily of national market deposits.

⁽²⁾	During the first quarter of 2014, we reorganized our business segments.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Average Balances
	2014						2013									Percent Changes vs.
(dollar amounts in millions)	Second			First			Fourth			Third			Second			1Q14			2Q13
Assets
Interest-bearing deposits in banks	$	91		$	83		$	71		$	54		$	84			10	%		8	%
Loans held for sale		288			279			322			379			678			3			(58	)
Securities:
Taxable		6,662			6,240			5,818			6,040			6,728			7			(1	)
Tax-exempt		1,290			1,115			548			565			591			16			118

Total available-for-sale and other securities		7,952			7,355			6,366			6,605			7,319			8			9
Trading account securities		45			38			76			76			84			18			(46	)
Held-to-maturity securities—taxable		3,677			3,783			3,038			2,139			1,711			(3	)		115

Securities		11,674			11,176			9,480			8,820			9,114			4			28

Loans and leases:⁽¹⁾
Commercial and industrial		18,262			17,631			17,671			17,032			17,033			4			7
Commercial real estate:
Construction		702			612			573			565			586			15			20
Commercial		4,345			4,289			4,331			4,345			4,429			1			(2	)

Commercial real estate		5,047			4,901			4,904			4,910			5,015			3			1

Total commercial		23,309			22,532			22,575			21,942			22,048			3			6

Automobile		7,349			6,786			6,502			6,075			5,283			8			39
Home equity		8,376			8,340			8,346			8,341			8,263			—			1
Residential mortgage		5,608			5,379			5,331			5,256			5,225			4			7
Other consumer		382			386			385			380			461			(1	)		(17	)

Total consumer		21,715			20,891			20,564			20,052			19,232			4			13

Total loans and leases		45,024			43,423			43,139			41,994			41,280			4			9
Allowance for loan and lease losses		(642	)		(649	)		(668	)		(717	)		(746	)		(1	)		(14	)

Net loans and leases		44,382			42,774			42,471			41,277			40,534			4			9

Total earning assets		57,077			54,961			53,012			51,247			51,156			4			12

Cash and due from banks		872			904			846			944			940			(4	)		(7	)
Intangible assets		591			535			542			552			563			10			5
All other assets		3,932			3,941			3,917			3,889			3,976			—			(1	)

Total assets	$	61,830		$	59,692		$	57,649		$	55,915		$	55,889			4	%		11	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	13,466		$	13,192		$	13,337		$	13,088		$	12,879			2	%		5	%
Demand deposits—interest-bearing		5,945			5,775			5,755			5,763			5,927			3			—

Total demand deposits		19,411			18,967			19,092			18,851			18,806			2			3
Money market deposits		17,680			17,648			16,827			15,739			15,069			—			17
Savings and other domestic deposits		5,086			4,967			4,912			5,007			5,115			2			(1	)
Core certificates of deposit		3,434			3,613			3,916			4,176			4,778			(5	)		(28	)

Total core deposits		45,611			45,195			44,747			43,773			43,768			1			4
Other domestic deposits of $250,000 or more		262			284			275			268			324			(8	)		(19	)
Brokered deposits and negotiable CDs		2,070			1,782			1,398			1,553			1,779			16			16
Deposits in foreign offices		315			328			354			376			316			(4	)		—

Total deposits		48,258			47,589			46,774			45,970			46,187			1			4
Short-term borrowings		939			883			629			710			701			6			34
Federal Home Loan Bank advances		1,977			1,499			851			549			757			32			161
Subordinated notes and other long-term debt		3,395			2,503			2,244			1,753			1,292			36			163

Total interest-bearing liabilities		41,103			39,282			37,161			35,894			36,058			5			14

All other liabilities		1,033			1,035			1,095			1,054			1,064			—			(3	)
Shareholders’ equity		6,228			6,183			6,056			5,879			5,888			1			6

Total liabilities and shareholders’ equity	$	61,830		$	59,692		$	57,649		$	55,915		$	55,889			4	%		11	%

⁽¹⁾	Includes Nonaccrual Loans

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin—Interest Income / Expense (1)

(Unaudited)


	Interest Income / Expense
	2014				2013
(dollar amounts in thousands)	Second		First		Fourth		Third		Second
Assets
Interest-bearing deposits in banks	$	8	$	6	$	7	$	9	$	57
Loans held for sale		3,072		2,603		3,586		3,699		5,739
Securities:
Available-for-sale and other securities:
Taxable		42,028		38,456		34,554		35,280		38,538
Tax-exempt		10,161		8,440		8,696		5,700		5,829

Total available-for-sale and other securities		52,188		46,896		43,250		40,980		44,367
Trading account securities		79		107		79		43		126
Held-to-maturity securities—taxable		22,614		23,320		18,378		12,220		9,778

Total securities		74,882		70,323		61,708		53,243		54,271

Loans and leases:
Commercial:
Commercial and industrial		161,174		157,016		159,686		160,285		161,543
Commercial real estate:
Construction		7,599		6,108		5,916		5,650		5,829
Commercial		45,690		41,171		43,908		45,525		46,214

Commercial real estate		53,288		47,278		49,824		51,175		52,043

Total commercial		214,462		204,294		209,510		211,460		213,586

Consumer:
Automobile		63,543		59,153		60,080		58,216		52,159
Home equity		86,099		84,634		86,460		86,131		85,796
Residential mortgage		52,896		50,834		50,225		50,111		49,912
Other consumer		6,998		6,534		6,447		6,677		7,650

Total consumer		209,536		201,156		203,212		201,135		195,517

Total loans and leases		423,998		405,450		412,722		412,595		409,103

Total earning assets	$	501,959	$	478,382	$	478,022	$	469,546	$	469,170

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits—interest-bearing		571		512		630		636		617

Total demand deposits		571		512		630		636		617
Money market deposits		10,548		10,940		11,296		10,211		8,886
Savings and other domestic deposits		2,179		2,459		2,925		3,134		3,416
Core certificates of deposit		6,938		8,387		10,330		11,094		13,410

Total core deposits		20,235		22,299		25,181		25,075		26,329
Other domestic deposits of $250,000 or more		281		289		271		300		406
Brokered deposits and negotiable CDs		1,228		1,246		1,385		2,145		2,746
Deposits in foreign offices		102		104		122		136		110

Total deposits		21,846		23,938		26,959		27,656		29,591
Short-term borrowings		270		150		129		158		179
Federal Home Loan Bank advances		621		453		306		197		272
Subordinated notes and other long-term debt		12,536		10,408		11,781		10,049		7,603

Total interest bearing liabilities		35,274		34,949		39,175		38,060		37,645

Net interest income	$	466,685	$	443,391	$	438,845	$	431,486	$	431,524

⁽¹⁾	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 9 for the FTE adjustment.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin—Yield

(Unaudited)


	Average Rates (2)
	2014						2013
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Assets
Interest-bearing deposits in banks		0.04	%		0.03	%		0.04	%		0.07	%		0.27	%
Loans held for sale		4.27			3.74			4.46			3.89			3.39
Securities:
Available-for-sale and other securities:
Taxable		2.52			2.47			2.38			2.34			2.29
Tax-exempt		3.15			3.03			6.34			4.04			3.94

Total available-for-sale and other securities		2.63			2.55			2.72			2.48			2.42
Trading account securities		0.70			1.12			0.42			0.23			0.60
Held-to-maturity securities—taxable		2.46			2.47			2.42			2.29			2.29

Total securities		2.57			2.52			2.60			2.41			2.38
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		3.49			3.56			3.54			3.68			3.75
Commercial real estate:
Construction		4.29			3.99			4.04			3.91			3.93
Commercial		4.16			3.84			3.97			4.10			4.13

Commercial real estate		4.17			3.86			3.98			4.08			4.09

Total commercial		3.64			3.63			3.63			3.77			3.83

Consumer:
Automobile		3.47			3.54			3.67			3.80			3.96
Home equity		4.12			4.12			4.11			4.10			4.16
Residential mortgage		3.77			3.78			3.77			3.81			3.82
Other consumer		7.34			6.84			6.64			6.98			6.66

Total consumer		3.87			3.89			3.93			3.99			4.07

Total loans and leases		3.75			3.75			3.77			3.87			3.95

Total earning assets		3.53	%		3.53	%		3.58	%		3.64	%		3.68	%

Liabilities
Deposits:
Demand deposits—noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits—interest-bearing		0.04			0.04			0.04			0.04			0.04

Total demand deposits		0.01			0.01			0.01			0.01			0.01
Money market deposits		0.24			0.25			0.27			0.26			0.24
Savings and other domestic deposits		0.17			0.20			0.24			0.25			0.27
Core certificates of deposit		0.81			0.94			1.05			1.05			1.13

Total core deposits		0.25			0.28			0.32			0.32			0.34
Other domestic deposits of $250,000 or more		0.43			0.41			0.39			0.44			0.50
Brokered deposits and negotiable CDs		0.24			0.28			0.39			0.55			0.62
Deposits in foreign offices		0.13			0.13			0.14			0.14			0.14

Total deposits		0.25			0.28			0.32			0.33			0.36
Short-term borrowings		0.12			0.07			0.08			0.09			0.10
Federal Home Loan Bank advances		0.12			0.12			0.14			0.14			0.14
Subordinated notes and other long-term debt		1.48			1.66			2.10			2.29			2.35

Total interest-bearing liabilities		0.34			0.36			0.42			0.42			0.42

Net interest rate spread		3.19			3.17			3.15			3.20			3.26
Impact of noninterest-bearing funds on margin		0.09			0.10			0.13			0.14			0.12

Net interest margin		3.28	%		3.27	%		3.28	%		3.34	%		3.38	%


Commercial Loan Derivative Impact
(Unaudited)
	Average Rates (2)
	2014						2013
Fully-taxable equivalent basis⁽¹⁾	Second			First			Fourth			Third			Second
Commercial loans⁽²⁾⁽³⁾		3.46	%		3.37	%		3.47	%		3.58	%		3.57	%
Impact of commercial loan derivatives		0.18			0.25			0.17			0.19			0.26

Total commercial—as reported		3.64	%		3.63	%		3.63	%		3.77	%		3.83	%

Average 30 day LIBOR		0.15	%		0.16	%		0.17	%		0.19	%		0.20	%

⁽¹⁾	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 9 for the FTE adjustment.

⁽²⁾	Loan, lease, and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.

⁽³⁾	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data(1)

(Unaudited)


	2014				2013
(dollar amounts in thousands, except per share amounts)	Second		First		Fourth		Third		Second
Interest income	$	495,322	$	472,455	$	469,824	$	462,912	$	462,582
Interest expense		35,274		34,949		39,175		38,060		37,645

Net interest income		460,048		437,506		430,649		424,852		424,937
Provision for credit losses		29,385		24,630		24,331		11,400		24,722

Net interest income after provision for credit losses		430,663		412,876		406,318		413,452		400,215

Service charges on deposit accounts		72,633		64,582		69,992		72,918		68,009
Mortgage banking income		22,717		23,089		24,327		23,621		33,659
Trust services		29,581		29,565		30,711		30,470		30,666
Electronic banking		26,491		23,642		24,251		24,282		23,345
Insurance income		15,996		16,496		15,556		17,269		17,187
Brokerage income		17,831		17,071		15,116		16,532		19,546
Bank owned life insurance income		13,865		13,307		13,816		13,740		15,421
Capital markets fees		10,500		9,194		12,332		12,825		12,229
Gain on sale of loans		3,914		3,570		7,144		5,063		3,348
Securities gains (losses)		490		16,970		1,239		98		(410	)
Other income		36,049		30,999		35,407		36,950		28,919

Total noninterest income		250,067		248,485		249,891		253,768		251,919

Personnel costs		260,600		249,477		249,554		229,326		263,862
Outside data processing and other services		54,338		51,490		51,071		49,313		49,898
Net occupancy		28,673		33,433		31,983		35,591		27,656
Equipment		28,749		28,750		28,775		28,191		24,947
Marketing		14,832		10,686		13,704		12,271		14,239
Deposit and other insurance expense		10,599		13,718		10,056		11,155		13,460
Amortization of intangibles		9,520		9,291		10,320		10,362		10,362
Professional services		17,896		12,231		11,567		12,487		9,341
Other expense		33,429		51,045		38,979		34,640		32,100

Total noninterest expense		458,636		460,121		446,009		423,336		445,865

Income before income taxes		222,094		201,240		210,200		243,884		206,269
Provision for income taxes		57,475		52,097		52,029		65,047		55,269

Net income	$	164,619	$	149,143	$	158,171	$	178,837	$	151,000

Dividends on preferred shares		7,963		7,964		7,965		7,967		7,967

Net income applicable to common shares	$	156,656	$	141,179	$	150,206	$	170,870	$	143,033

Average common shares—basic		821,546		829,659		830,590		830,398		834,730
Average common shares—diluted		834,687		842,677		842,324		841,025		843,840
Per common share
Net income—basic	$	0.19	$	0.17	$	0.18	$	0.21	$	0.17
Net income—diluted		0.19		0.17		0.18		0.20		0.17
Cash dividends declared		0.05		0.05		0.05		0.05		0.05
Revenue—fully-taxable equivalent (FTE)
Net interest income	$	460,048	$	437,506	$	430,649	$	424,852	$	424,937
FTE adjustment		6,637		5,885		8,196		6,634		6,587

Net interest income⁽²⁾		466,685		443,391		438,845		431,486		431,524
Noninterest income		250,067		248,485		249,891		253,768		251,919

Total revenue⁽²⁾	$	716,752	$	691,876	$	688,736	$	685,254	$	683,443

(1)	Comparisons for presented periods are impacted by a number of factors. Refer to Significant Items.

(2)	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Income

(Unaudited)


	2014						2013									Percent Changes vs.
(dollar amounts in thousands, except as noted)	Second			First			Fourth			Third			Second			1Q14			2Q13
Mortgage banking income
Origination and secondary marketing	$	14,289		$	14,497		$	14,201		$	15,568		$	27,917			(1	)%		(49	)%
Servicing fees		10,873			10,939			10,809			10,868			10,898			(1	)		—
Amortization of capitalized servicing		(5,951	)		(5,982	)		(6,062	)		(6,783	)		(7,998	)		(1	)		(26	)
Other mortgage banking income		4,213			3,535			3,397			3,685			4,470			19			(6	)

Subtotal		23,424			22,989			22,345			23,338			35,287			2			(34	)
MSR valuation adjustment⁽¹⁾		(3,046	)		(1,597	)		3,458			173			14,127			91			(122	)
Net trading gains (losses) related to MSR hedging		2,340			1,697			(1,476	)		110			(15,755	)		38			(115	)

Total mortgage banking income	$	22,718		$	23,089		$	24,327		$	23,621		$	33,659			(2	)%		(33	)%

Mortgage originations (in millions)	$	982		$	657		$	841		$	1,176		$	1,282			49	%		(23	)%
Capitalized mortgage servicing rights⁽²⁾		159,860			163,279			162,301			158,776			155,522			(2	)		3
Total mortgages serviced for others (in millions)⁽²⁾		15,560			15,614			15,239			15,231			15,213			—			2
MSR % of investor servicing portfolio⁽²⁾		1.03	%		1.05	%		1.07	%		1.04	%		1.02	%		(2	)		1

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	(3,046	)	$	(1,597	)	$	3,458		$	173		$	14,127			91	%		(122	)%
Net trading gains (losses) related to MSR hedging		2,340			1,697			(1,476	)		110			(15,755	)		38			(115	)

Net gain (loss) of MSR hedging	$	(706	)	$	100		$	1,982		$	283		$	(1,628	)		N.R.	%		(57	)%

N.R. - Not relevant, as denominator of calculation is gain in prior period compared with a loss in the current period.

⁽¹⁾	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

⁽²⁾	At period end.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)


	2014						2013
(dollar amounts in thousands)	Second			First			Fourth			Third			Second
Allowance for loan and lease losses, beginning of period	$	631,918		$	647,870		$	666,030		$	733,076		$	746,769
Loan and lease losses		(58,827	)		(73,011	)		(73,684	)		(85,252	)		(63,238	)
Recoveries of loans previously charged off		30,184			30,025			27,237			29,510			28,448

Net loan and lease losses		(28,643	)		(42,986	)		(46,447	)		(55,742	)		(34,790	)

Provision for loan and lease losses		31,826			28,161			28,289			(11,234	)		21,354
Allowance of assets sold or transferred to loans held for sale		—			(1,127	)		(2	)		(70	)		(257	)

Allowance for loan and lease losses, end of period	$	635,101		$	631,918		$	647,870		$	666,030		$	733,076

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	59,368		$	62,899		$	66,857		$	44,223		$	40,855
Provision for (reduction in) unfunded loan commitments and letters of credit losses		(2,441	)		(3,531	)		(3,958	)		22,634			3,368

Allowance for unfunded loan commitments and letters of credit, end of period	$	56,927		$	59,368		$	62,899		$	66,857		$	44,223

Total allowance for credit losses, end of period	$	692,028		$	691,286		$	710,769		$	732,887		$	777,299

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.38	%		1.42	%		1.50	%		1.57	%		1.76	%
Nonaccrual loans and leases (NALs)		195			193			201			200			202
Nonperforming assets (NPAs)		175			174			184			178			185
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.50	%		1.56	%		1.65	%		1.72	%		1.86	%
Nonaccrual loans and leases		213			211			221			220			214
Nonperforming assets		191			191			202			196			196

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	2014						2013
(dollar amounts in thousands)	Second			First			Fourth			Third			Second
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	10,597		$	8,606		$	9,826		$	1,661		$	1,586
Commercial real estate:
Construction		(171	)		918			(88	)		6,165			1,079
Commercial		(2,020	)		(1,905	)		(2,783	)		6,398			1,305

Commercial real estate		(2,191	)		(987	)		(2,871	)		12,563			2,384

Total commercial		8,406			7,619			6,955			14,224			3,970

Consumer:
Automobile		2,926			4,642			3,759			2,721			1,463
Home equity		8,491			15,687			20,451			27,175			14,654
Residential mortgage		3,406			7,859			7,605			4,789			8,620
Other consumer		5,414			7,179			7,677			6,833			6,083

Total consumer		20,237			35,367			39,492			41,518			30,820

Total net charge-offs	$	28,643		$	42,986		$	46,447		$	55,742		$	34,790

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.23	%		0.20	%		0.22	%		0.04	%		0.04	%
Commercial real estate:
Construction		(0.10	)		0.60			(0.06	)		4.36			0.74
Commercial		(0.19	)		(0.18	)		(0.26	)		0.59			0.12

Commercial real estate		(0.17	)		(0.08	)		(0.23	)		1.02			0.19

Total commercial		0.14			0.14			0.12			0.26			0.07

Consumer:
Automobile		0.16			0.27			0.23			0.18			0.11
Home equity		0.41			0.75			0.98			1.30			0.71
Residential mortgage		0.24			0.58			0.57			0.36			0.66
Other consumer		5.66			7.44			7.98			7.19			5.28

Total consumer		0.37			0.68			0.77			0.83			0.64

Net charge-offs as a % of average loans		0.25	%		0.40	%		0.43	%		0.53	%		0.34	%

Huntington Bancshares Incorporated

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

(Unaudited)


	2014						2013
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	75,274		$	57,053		$	56,615		$	68,034		$	80,037
Commercial real estate		65,398			71,344			73,417			80,295			93,643
Automobile		4,384			6,218			6,303			5,972			7,743
Residential mortgage		110,635			121,681			119,532			116,260			122,040
Home equity		69,266			70,862			66,189			62,545			60,083

Total nonaccrual loans and leases		324,957			327,158			322,056			333,106			363,547
Other real estate, net:
Residential		31,761			30,581			23,447			16,610			17,353
Commercial		2,934			5,110			4,217			12,544			3,713

Total other real estate, net		34,695			35,691			27,664			29,154			21,066
Other NPAs ⁽¹⁾		2,440			2,440			2,440			12,000			12,087

Total nonperforming assets	$	362,092		$	365,289		$	352,160		$	374,259		$	396,699

Nonaccrual loans and leases as a % of total loans and leases		0.71	%		0.74	%		0.75	%		0.78	%		0.87	%
NPA ratio⁽²⁾		0.79			0.82			0.82			0.88			0.95
(NPA+90days)/(Loan+OREO)⁽³⁾		1.08			1.17			1.20			1.29			1.38

	2014						2013
	Second			First			Fourth			Third			Second
Nonperforming assets, beginning of period	$	365,289		$	352,160		$	374,260		$	396,699		$	415,495
New nonperforming assets		123,601			117,804			109,454			139,767			101,840
Returns to accruing status		(23,000	)		(9,333	)		(12,367	)		(31,293	)		(18,915	)
Loan and lease losses		(54,646	)		(47,596	)		(55,750	)		(65,823	)		(40,546	)
OREO (losses) gains		2,344			353			535			1,053			1,874
Payments		(41,947	)		(39,233	)		(51,323	)		(61,116	)		(54,242	)
Sales		(9,549	)		(8,866	)		(12,649	)		(5,027	)		(8,807	)

Nonperforming assets, end of period	$	362,092		$	365,289		$	352,160		$	374,260		$	396,699

⁽¹⁾	Other nonperforming assets includes certain impaired investment securities.

⁽²⁾	Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

⁽³⁾	The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.

Huntington Bancshares Incorporated

Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans

(Unaudited)


	2014						2013
(dollar amounts in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	9,977		$	11,554		$	14,562		$	19,217		$	24,851
Commercial real estate		27,267			36,711			39,142			44,026			45,051
Automobile		2,895			4,252			5,055			3,599			3,392
Residential mortgage (excluding loans guaranteed by the U.S. Government)		29,709			29,534			2,469			13,978			5,217
Home equity		14,912			15,494			13,983			13,044			14,245
Other consumer		607			867			998			1,102			1,367

Total, excl. loans guaranteed by the U.S. Government		85,367			98,412			76,209			94,966			94,123
Add: loans guaranteed by U.S. Government		51,641			56,484			87,985			81,770			87,135

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	137,008		$	154,896		$	164,194		$	176,736		$	181,258

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.19	%		0.22	%		0.18	%		0.22	%		0.23	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.11			0.13			0.20			0.20			0.21
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.30			0.35			0.38			0.42			0.43
Accruing troubled debt restructured loans:
Commercial and industrial	$	90,604		$	102,970		$	83,857		$	85,687		$	94,583
Commercial real estate		212,736			210,876			204,668			204,597			184,372
Automobile		31,833			27,393			30,781			30,981			32,768
Home equity (1)		221,539			202,044			188,266			153,591			135,759
Residential mortgage		289,239			284,194			305,059			300,809			293,933
Other consumer		3,496			1,727			1,041			959			3,383

Total accruing troubled debt restructured loans	$	849,447		$	829,204		$	813,672		$	776,624		$	744,798

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	6,677		$	7,197		$	7,291		$	8,643		$	14,541
Commercial real estate		24,396			27,972			23,981			22,695			26,118
Automobile		4,287			5,676			6,303			5,972			7,743
Home equity		22,264			20,992			20,715			11,434			10,227
Residential mortgage		81,546			84,441			82,879			77,525			80,563
Other consumer		120			120			—			—			—

Total nonaccruing troubled debt restructured loans	$	139,290		$	146,398		$	141,169		$	126,269		$	139,192

(1)	The 2013 second quarter includes a $43.1 million reduction of home equity TDRs incorrectly reflected as new TDRs in the 2013 first quarter.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Capital, and Other Data

(Unaudited)

Quarterly common stock summary


	2014						2013
(dollar amounts in thousands, except per share amounts)	Second			First			Fourth			Third			Second
Common stock price, per share
High⁽¹⁾	$	10.290		$	10.010		$	9.730		$	8.780		$	7.960
Low⁽¹⁾		8.890			8.720			8.040			7.900			6.820
Close		9.540			9.970			9.650			8.260			7.870
Average closing price		9.406			9.499			8.982			8.445			7.457
Dividends, per share
Cash dividends declared per common share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05

Common shares outstanding
Average—basic		821,546			829,659			830,590			830,398			834,730
Average—diluted		834,687			842,677			842,324			841,025			843,840
Ending		817,002			827,772			830,963			830,145			829,675
Book value per common share	$	7.17		$	6.99		$	6.86		$	6.70		$	6.49
Tangible book value per common share⁽²⁾		6.48			6.31			6.26			6.09			5.87
Common share repurchases
Number of shares repurchased		12,158			14,571			—			1,974			9,996

	2014						2013
(dollar amounts in millions)	June 30,			March 31,			December 31,			September 30,			June 30,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	6,241		$	6,176		$	6,090		$	5,952		$	5,774
Less: goodwill		(505	)		(505	)		(444	)		(444	)		(444	)
Less: other intangible assets		(81	)		(91	)		(93	)		(104	)		(114	)
Add: related deferred tax liability⁽²⁾		29			32			33			36			40

Total tangible equity		5,683			5,612			5,586			5,440			5,256
Less: preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)

Total tangible common equity	$	5,297		$	5,226		$	5,200		$	5,054		$	4,870

Total assets	$	63,797		$	61,146		$	59,467		$	56,639		$	56,104
Less: goodwill		(505	)		(505	)		(444	)		(444	)		(444	)
Less: other intangible assets		(81	)		(91	)		(93	)		(104	)		(114	)
Add: related deferred tax liability⁽²⁾		29			32			33			36			40

Total tangible assets	$	63,239		$	60,582		$	58,963		$	56,127		$	55,586

Tangible equity / tangible asset ratio		8.99	%		9.26	%		9.47	%		9.69	%		9.46	%
Tangible common equity / tangible asset ratio		8.38			8.63			8.82			9.01			8.76
Tier 1 common risk-based capital ratio:⁽⁴⁾
Tier 1 capital	$	6,132		$	6,107		$	6,100		$	6,018		$	5,885
Shareholders’ preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)
Trust preferred securities		(304	)		(304	)		(299	)		(299	)		(299	)
REIT preferred stock		—			—			—			(50	)		(50	)

Tier 1 common	$	5,442		$	5,417		$	5,415		$	5,283		$	5,150

Total risk-weighted assets⁽⁴⁾	$	53,035		$	51,120		$	49,690		$	48,687		$	48,080
Tier 1 common risk-based capital ratio⁽⁴⁾		10.26	%		10.60	%		10.90	%		10.85	%		10.71	%
Other capital data:
Tier 1 leverage ratio⁽⁴⁾		10.01			10.32			10.67			10.85			10.64
Tier 1 risk-based capital ratio⁽⁴⁾		11.56			11.95			12.28			12.36			12.24
Total risk-based capital ratio⁽⁴⁾		13.67			14.13			14.57			14.67			14.57
Tangible common equity / risk-weighted assets ratio⁽⁴⁾		9.99			10.22			10.46			10.38			10.13
Other data:
Number of employees (Average full-time equivalent)		12,000			11,848			11,765			12,080			12,063
Number of domestic full-service branches⁽³⁾		730			727			711			731			727

⁽¹⁾	High and low stock prices are intra-day quotes obtained from NASDAQ.

⁽²⁾	Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

⁽³⁾	Includes Regional Banking and The Huntington Private Client Group offices.

⁽⁴⁾	June 30, 2014, figures are estimated and are presented on a basel 1 basis.

Huntington Bancshares Incorporated

Consolidated Year To Date Average Balance Sheets

(Unaudited)


	YTD Average Balances
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2014			2013			Amount			Percent
Assets
Interest bearing deposits in banks	$	87		$	78		$	9			12	%
Loans held for sale		283			694			(411	)		(59	)
Available-for-sale and other securities:
Taxable		6,452			6,845			(393	)		(6	)
Tax-exempt		1,203			570			633			111

Total available-for-sale and other securities		7,655			7,415			240			3
Trading account securities		42			85			(43	)		(51	)
Held-to-maturity securities—taxable		3,730			1,714			2,016			118

Total Securities		11,427			9,214			2,213			24

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		17,948			16,994			954			6
Commercial real estate:
Construction		657			592			65			11
Commercial		4,317			4,561			(244	)		(5	)

Commercial real estate		4,974			5,153			(179	)		(3	)

Total commercial		22,922			22,147			775			3

Consumer:
Automobile		7,069			5,058			2,011			40
Home equity		8,358			8,277			81			1
Residential mortgage		5,494			5,102			392			8
Other consumer		384			488			(104	)		(21	)

Total consumer		21,305			18,925			2,380			13

Total loans and leases		44,227			41,072			3,155			8
Allowance for loan and lease losses		(645	)		(758	)		113			(15	)

Net loans and leases		43,582			40,314			3,268			8

Total earning assets		56,024			51,058			4,966			10

Cash and due from banks		888			922			(34	)		(4	)
Intangible assets		563			567			(4	)		(1	)
All other assets		3,937			4,020			(83	)		(2	)

Total assets	$	60,767		$	55,809		$	4,958			9	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	13,330		$	12,524		$	806			6	%
Demand deposits—interest-bearing		5,860			5,952			(92	)		(2	)

Total demand deposits		19,190			18,476			714			4
Money market deposits		17,664			15,057			2,607			17
Savings and other domestic deposits		5,027			5,099			(72	)		(1	)
Core certificates of deposit		3,523			5,060			(1,537	)		(30	)

Total core deposits		45,404			43,692			1,712			4
Other domestic deposits of $250,000 or more		273			342			(69	)		(20	)
Brokered deposits and negotiable CDs		1,927			1,738			189			11
Deposits in foreign offices		322			328			(6	)		(2	)

Total deposits		47,926			46,100			1,826			4
Short-term borrowings		911			732			179			24
Federal Home Loan Bank advances		1,740			722			1,018			141
Subordinated notes and other long-term debt		2,951			1,320			1,631			124

Total interest-bearing liabilities		40,198			36,350			3,848			11

All other liabilities		1,034			1,074			(40	)		(4	)
Shareholders’ equity		6,205			5,861			344			6

Total liabilities and shareholders’ equity	$	60,767		$	55,809		$	4,958			9	%

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin—Interest Income / Expense (1)

(Unaudited)


	Interest Income / Expense
	Six Months Ended June 30,
(dollar amounts in thousands)	2014		2013
Assets
Interest bearing deposits in banks	$	14	$	85
Federal funds sold and securities purchased under resale agreements		—		—
Loans held for sale		5,675		11,620
Securities:
Available-for-sale and other securities:
Taxable		80,484		78,724
Tax-exempt		18,599		11,267

Total available-for-sale and other securities		99,083		89,991
Trading account securities		185		234
Held-to-maturity securities—taxable		45,934		19,616

Total Securities		145,202		109,841
Loans and leases:
Commercial:
Commercial and industrial		318,190		323,760
Commercial real estate:
Construction		13,706		11,874
Commercial		86,860		93,192

Commercial real estate		100,566		105,066

Total commercial		418,756		428,826

Consumer:
Automobile		122,697		103,173
Home equity		172,765		171,244
Residential mortgage		103,730		99,265
Other consumer		11,460		16,357

Total consumer		410,652		390,039

Total loans and leases		829,408		818,865

Total earning assets	$	980,299	$	940,411

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—
Demand deposits—interest-bearing		1,083		1,258

Total demand deposits		1,083		1,258
Money market deposits		21,489		17,323
Savings and other domestic deposits		4,638		7,234
Core certificates of deposit		15,324		29,120

Total core deposits		42,534		54,935
Other domestic deposits of $250,000 or more		570		871
Brokered deposits and negotiable CDs		2,475		5,569
Deposits in foreign offices		205		250

Total deposits		45,784		61,625
Short-term borrowings		420		413
Federal Home Loan Bank advances		1,075		574
Subordinated notes and other long-term debt		22,944		16,182

Total interest-bearing liabilities		70,223		78,794

Net interest income	$	910,076	$	861,617

⁽¹⁾	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 19 for the FTE adjustment.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin—Yield

(Unaudited)


	YTD Average Rates (2)
	Six Months Ended June 30,
Fully-taxable equivalent basis⁽¹⁾	2014			2013
Assets
Interest bearing deposits in banks		0.03	%		0.22	%
Loans held for sale		4.01			3.35
Securities:
Available-for-sale and other securities:
Taxable		2.49			2.30
Tax-exempt		3.09			3.95

Total available-for-sale and other securities		2.59			2.43
Trading account securities		0.89			0.55
Held-to-maturity securities—taxable		2.46			2.29

Total Securities		2.54			2.38

Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		3.53			3.79
Commercial real estate:
Construction		4.15			3.99
Commercial		4.00			4.06

Commercial real estate		4.02			4.06

Total commercial		3.63			3.85

Consumer:
Automobile		3.50			4.11
Home equity		4.12			4.17
Residential mortgage		3.78			3.89
Other consumer		7.09			6.76

Total consumer		3.88			4.15

Total loans and leases		3.75			3.99

Total earning assets		3.53	%		3.71	%

Liabilities
Deposits:
Demand deposits—noninterest-bearing		—	%		—	%
Demand deposits—interest-bearing		0.04			0.04

Total demand deposit		0.01			0.01
Money market deposits		0.25			0.23
Savings and other domestic deposits		0.19			0.29
Core certificates of deposit		0.88			1.16

Total core deposits		0.27			0.36
Other domestic deposits of $250,000 or more		0.42			0.51
Brokered deposits and negotiable CDs		0.26			0.65
Deposits in foreign offices		0.13			0.15

Total deposits		0.27			0.37
Short-term borrowings		0.09			0.11
Federal Home Loan Bank advances		0.12			0.16
Subordinated notes and other long-term debt		1.55			2.45

Total interest bearing liabilities		0.35			0.44

Net interest rate spread		3.18			3.28
Impact of noninterest-bearing funds on margin		0.10			0.12

Net interest margin		3.28	%		3.40	%


Commercial Loan Derivative Impact (Unaudited)
	YTD Average Rates
	Six Months Ended June 30, ⁽²⁾
Fully-taxable equivalent basis⁽¹⁾	2014			2013
Commercial loans⁽²⁾⁽³⁾		3.42	%		3.57	%
Impact of commercial loan derivatives		0.21			0.28

Total commercial—as reported		3.63	%		3.85	%

Average 30 day LIBOR		0.15	%		0.20	%

⁽¹⁾	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 19 for the FTE adjustment.

⁽²⁾	Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.

⁽³⁾	Includes the impact of nonacrrual loans.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands, except per share amounts)	2014		2013			Amount			Percentage
Interest income	$	967,777	$	927,901		$	39,876			4	%
Interest expense		70,223		78,794			(8,571	)		(11	)

Net interest income		897,554		849,107			48,447			6
Provision for credit losses		54,015		54,314			(299	)		(1	)

Net interest income after provision for credit losses		843,539		794,793			48,746			6

Service charges on deposit accounts		137,215		128,892			8,323			6
Mortgage banking income		45,807		78,907			(33,100	)		(42	)
Trust services		59,146		61,826			(2,680	)		(4	)
Electronic banking		50,133		44,058			6,075			14
Insurance income		32,492		36,439			(3,947	)		(11	)
Brokerage income		34,903		37,541			(2,638	)		(7	)
Bank owned life insurance income		27,172		28,863			(1,691	)		(6	)
Capital markets fees		19,694		20,063			(369	)		(2	)
Gain on sale of loans		7,484		5,964			1,520			25
Securities gains (losses)		17,460		(919	)		18,379			N.R.
Other income		67,046		66,903			143			—

Total noninterest income		498,552		508,537			(9,985	)		(2	)

Personnel costs		510,077		522,757			(12,680	)		(2	)
Outside data processing and other services		105,828		99,163			6,665			7
Net occupancy		62,106		57,770			4,336			8
Equipment		57,499		49,827			7,672			15
Marketing		25,518		25,210			308			1
Deposit and other insurance expense		24,317		28,950			(4,633	)		(16	)
Amortization of intangibles		18,811		20,682			(1,871	)		(9	)
Professional services		30,127		16,533			13,594			82
Gain on early extinguishment of debt		—		—			—			—
Other expense		84,474		67,766			16,708			25

Total noninterest expense		918,757		888,658			30,099			3

Income before income taxes		423,334		414,672			8,662			2
Provision for income taxes		109,572		110,398			(826	)		(1	)

Net income	$	313,762	$	304,274		$	9,488			3	%

Dividends on preferred shares		15,927		15,937			(10	)		—

Net income applicable to common shares	$	297,835	$	288,337		$	9,498			3	%

Average common shares—basic		825,603		837,917			(12,314	)		(1	)
Average common shares—diluted		838,546		846,274			(7,707	)		(1	)
Per common share
Net income—basic	$	0.36	$	0.34		$	0.02			6	%
Net income—diluted		0.36		0.34			0.02			6
Cash dividends declared		0.10		0.09			0.01			11
Revenue—fully taxable equivalent (FTE)
Net interest income	$	897,554	$	849,107		$	48,447			6	%
FTE adjustment⁽²⁾		12,522		12,510			12			—

Net interest income		910,076		861,617			48,459			6
Noninterest income		498,552		508,537			(9,985	)		(2	)

Total revenue	$	1,408,628	$	1,370,154		$	38,474			3	%

N.R.—Not relevant, as denominator of calculation is a loss in prior period compared with income in the current period.

Comparisons for presented periods are impacted by a number of factors. Refer to Significant Items.

On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.

Huntington Bancshares Incorporated

Year To Date Mortgage Banking Income

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in thousands, except as noted)	2014			2013			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	28,785		$	55,246		$	(26,461	)		(48	)%
Servicing fees		21,812			22,139			(327	)		(1	)
Amortization of capitalized servicing		(11,933	)		(15,901	)		3,968			(25	)
Other mortgage banking income		7,749			9,125			(1,376	)		(15	)

Subtotal		46,413			70,609			(24,196	)		(34	)
MSR valuation adjustment⁽¹⁾		(4,643	)		31,925			(36,568	)		(115	)
Net trading gains (losses) related to MSR hedging		4,037			(23,627	)		27,664			(117	)

Total mortgage banking income	$	45,807		$	78,907		$	(33,100	)		(42	)%

Mortgage originations (in millions)	$	1,639		$	2,401		$	(762	)		(32	)%
Capitalized mortgage servicing rights⁽²⁾		159,860			155,522			4,338			3
Total mortgages serviced for others (in millions)⁽²⁾		15,560			15,213			347			2
MSR % of investor servicing portfolio		1.03	%		1.02	%		0.01	%		1

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	(4,643	)	$	31,925		$	(36,568	)		(115	)%
Net trading gains (losses) related to MSR hedging		4,037			(23,627	)		27,664			(117	)
Net interest income related to MSR hedging		—			—			—			—

Net gain (loss) on MSR hedging	$	(606	)	$	8,298		$	(8,904	)		(107	)%

⁽¹⁾	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

⁽²⁾	At period end.

Huntington Bancshares Incorporated

Year To Date Credit Reserves Analysis

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2014			2013
Allowance for loan and lease losses, beginning of period	$	647,870		$	769,075
Loan and lease losses		(131,838	)		(147,380	)
Recoveries of loans previously charged off		60,209			60,903

Net loan and lease losses		(71,629	)		(86,477	)

Provision for loan and lease losses		59,987			50,742
Allowance of assets sold or transferred to loans held for sale		(1,127	)		(264	)

Allowance for loan and lease losses, end of period	$	635,101		$	733,076

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	62,899		$	40,651
Provision for (reduction in) unfunded loan commitments and letters of credit losses		(5,972	)		3,572

Allowance for unfunded loan commitments and letters of credit, end of period	$	56,927		$	44,223

Total allowance for credit losses	$	692,028		$	777,299

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.38	%		1.76	%
Nonaccrual loans and leases (NALs)		195			202
Nonperforming assets (NPAs)		175			185
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.50	%		1.86	%
Nonaccrual loans and leases (NALs)		213			214
Nonperforming assets (NPAs)		191			196

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in thousands)	2014			2013
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	19,203		$	4,903
Commercial real estate:
Construction		747			281
Commercial		(3,925	)		14,880

Commercial real estate		(3,178	)		15,161

Total commercial		16,025			20,064

Consumer:
Automobile		7,568			4,057
Home equity		24,178			34,637
Residential mortgage		11,265			14,768
Other consumer		12,593			12,951

Total consumer		55,604			66,413

Total net charge-offs	$	71,629		$	86,477

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.21	%		0.06	%
Commercial real estate:
Construction		0.23			0.09
Commercial		(0.18	)		0.65

Commercial real estate		(0.13	)		0.59

Total commercial		0.14			0.18

Automobile		0.21			0.16
Home equity		0.58			0.84
Residential mortgage		0.41			0.58
Other consumer		6.55			5.31

Total consumer		0.52			0.70

Net charge-offs as a % of average loans		0.32	%		0.42	%

Huntington Bancshares Incorporated

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

(Unaudited)


	June 30,
(dollar amounts in thousands)	2014			2013
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	75,274		$	80,037
Commercial real estate		65,397			93,643
Automobile		4,384			7,743
Residential mortgage		110,635			122,040
Home equity		69,266			60,083

Total nonaccrual loans and leases		324,957			363,546
Other real estate, net:
Residential		31,761			17,353
Commercial		2,934			3,713

Total other real estate, net		34,695			21,066
Other NPAs ⁽¹⁾		2,440			12,087

Total nonperforming assets	$	362,092		$	396,699

Nonaccrual loans and leases as a % of total loans and leases		0.71	%		0.87	%
NPA ratio⁽²⁾		0.79			0.95

	Six Months Ended June 30,
(dollar amounts in thousands)	2014			2013
Nonperforming assets, beginning of period	$	352,160		$	445,775
New nonperforming assets		241,405			216,901
Returns to accruing status		(32,333	)		(38,452	)
Loan and lease losses		(102,242	)		(91,565	)
OREO losses (gains)		2,697			2,714
Payments		(81,180	)		(118,287	)
Sales		(18,415	)		(20,387	)

Nonperforming assets, end of period	$	362,092		$	396,699

⁽¹⁾	Other nonperforming assets represent an investment security backed by a municipal bond.

⁽²⁾	Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

Huntington Bancshares Incorporated

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

(Unaudited)


	June 30,
(dollar amounts in thousands)	2014			2013
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	9,977		$	24,851
Commercial real estate		27,267			45,051
Automobile		2,895			3,392
Residential mortgage (excluding loans guaranteed by the U.S. Government)		29,709			5,217
Home equity		14,912			14,245
Other consumer		607			1,367

Total, excl. loans guaranteed by the U.S. Government		85,367			94,123
Add: loans guaranteed by U.S. Government		51,641			87,135

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	137,008		$	181,258

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.19	%		0.23	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.11			0.21
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.30			0.43
Accruing troubled debt restructured loans:
Commercial and industrial	$	90,604		$	94,583
Commercial real estate		212,736			184,372
Automobile		31,833			32,768
Home equity		221,539			135,759
Residential mortgage		289,239			293,933
Other consumer		3,496			3,383

Total accruing troubled debt restructured loans	$	849,447		$	744,798

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	6,677		$	14,541
Commercial real estate		24,396			26,118
Automobile		4,287			7,743
Home equity		22,264			10,227
Residential mortgage		81,546			80,563
Other consumer		120			—

Total nonaccruing troubled debt restructured loans	$	139,290		$	139,192

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - QUARTERLY FINANCIAL SUPPLEMENT - July 18, 2014

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports