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/	d805972d8k.htm
EX-99.1 - NEWS RELEASE - HUNTINGTON BANCSHARES INC /MD/	d805972dex991.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

September 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

(Unaudited)


	2014						2013			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Third			Second			Third			2Q14			3Q13
Net interest income	$	466,335		$	460,048		$	424,852			1	%		10	%
Provision for credit losses		24,480			29,385			11,400			(17	)		115
Noninterest income		247,349			250,067			253,767			(1	)		(3	)
Noninterest expense		480,318			458,636			423,336			5			13

Income before income taxes		208,886			222,094			243,883			(6	)		(14	)
Provision for income taxes		53,870			57,475			65,047			(6	)		(17	)

Net income	$	155,016		$	164,619		$	178,836			(6	)%		(13	)%

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

Net income applicable to common shares	$	147,052		$	156,656		$	170,869			(6	)%		(14	)%

Net income per common share—diluted	$	0.18		$	0.19		$	0.20			(5	)%		(10	)%
Cash dividends declared per common share		0.05			0.05			0.05			—			—
Book value per common share at end of period		7.24			7.17			6.70			1			8
Tangible book value per common share at end of period		6.53			6.48			6.09			1			7
Average common shares—basic		816,497			821,546			830,398			(1	)		(2	)
Average common shares—diluted		829,623			834,687			841,025			(1	)		(1	)
Return on average assets		0.97	%		1.07	%		1.27	%
Return on average common shareholders’ equity		9.9			10.8			12.3
Return on average tangible common shareholders’ equity⁽²⁾		11.4			12.4			14.2
Net interest margin⁽³⁾		3.20			3.28			3.34
Efficiency ratio⁽⁴⁾		65.3			62.7			60.3
Noninterest Income/Total Revenue		34.3			34.9			36.7
Effective tax rate		25.8			25.9			26.7
Average loans and leases	$	46,112,829		$	45,023,793		$	41,994,204			2			10
Average loans and leases—linked quarter annualized growth rate		9.7	%		14.7	%		6.9	%
Average earning assets	$	58,707,474		$	57,076,706		$	51,247,215			3			15
Average total assets		63,472,782			61,830,210			55,914,791			3			14
Average core deposits⁽⁵⁾		46,118,771			45,611,033			43,773,153			1			5
Average core deposits—linked quarter annualized growth rate		4.5	%		3.7	%		—	%
Average shareholders’ equity	$	6,292,157		$	6,227,809		$	5,879,479			1			7
Total assets at end of period		64,330,629			63,797,113			56,638,732			1			14
Total shareholders’ equity at end of period		6,284,210			6,240,791			5,952,060			1			6
Net charge-offs (NCOs)		30,023			28,643			55,742			5			(46	)
NCOs as a % of average loans and leases		0.26	%		0.25	%		0.53	%
Nonaccrual loans and leases (NALs)	$	325,765		$	324,957		$	333,106			—			(2	)
NAL ratio		0.70	%		0.71	%		0.78	%
Nonperforming assets (NPAs)⁽⁶⁾	$	364,475		$	362,092		$	374,260			1			(3	)
NPA ratio⁽⁶⁾		0.78	%		0.79	%		0.88	%		(1	)		(11	)
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		1.35			1.38			1.57
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		1.47			1.50			1.72
ACL as a % of NALs		211			213			220
ACL as a % of NPAs		188			191			196
Tier 1 leverage ratio⁽⁷⁾		9.83			10.01			10.85
Tier 1 common risk-based capital ratio⁽⁷⁾		10.31			10.26			10.85
Tier 1 risk-based capital ratio⁽⁷⁾		11.61			11.56			12.36
Total risk-based capital ratio⁽⁷⁾		13.72			13.67			14.67
Tangible common equity / tangible assets ratio⁽⁸⁾		8.35			8.38			9.01

See Notes to the Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year To Date Key Statistics⁽¹⁾

(Unaudited)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except per share amounts)	2014			2013			Amount			Percent
Net interest income	$	1,363,889		$	1,273,959		$	89,930			7	%
Provision for credit losses		78,495			65,714			12,781			19
Noninterest income		745,901			762,304			(16,403	)		(2	)
Noninterest expense		1,399,075			1,311,994			87,081			7

Income before income taxes		632,220			658,555			(26,335	)		(4	)
Provision for income taxes		163,442			175,445			(12,003	)		(7	)

Net Income	$	468,778		$	483,110		$	(14,332	)		(3	)%

Dividends on preferred shares		23,891			23,904			(13	)		—

Net income applicable to common shares	$	444,887		$	459,206		$	(14,319	)		(3	)%

Net income per common share—diluted	$	0.53		$	0.54		$	(0.01	)		(2	)%
Cash dividends declared per common share		0.15			0.14			0.01			7
Average common shares—basic		820,884			835,410			(14,526	)		(2	)
Average common shares—diluted		833,927			844,524			(10,597	)		(1	)
Return on average assets		1.02	%		1.16	%
Return on average common shareholders’ equity		10.2			11.2
Return on average tangible common shareholders’ equity⁽²⁾		11.7			12.9
Net interest margin⁽³⁾		3.25			3.38
Efficiency ratio⁽⁴⁾		64.7			62.3
Noninterest Income/Total Revenue		35.0			37.1
Effective tax rate		25.9			26.6
Average loans and leases	$	44,863,177		$	41,383,537		$	3,479,640			8	%
Average earning assets		56,928,862			51,122,168			5,806,693			11
Average total assets		61,679,006			55,844,746			5,834,260			10
Average core deposits⁽⁵⁾		45,644,852			43,719,823			1,925,028			4
Average shareholders’ equity		6,234,686			5,867,457			367,228			6
Net charge-offs (NCOs)		101,652			142,219			(40,567	)		(29	)
NCOs as a % of average loans and leases		0.30	%		0.46	%		(0.16	)		(34	)

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⁾	September 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)	September 30,			December 31,			September 30,			4Q13			3Q13
	*(Unaudited)*						(Unaudited)
Assets
Cash and due from banks	$	879,862		$	1,001,132		$	1,107,658			(12	)%		(21	)%
Interest-bearing deposits in banks		72,898			57,043			63,100			28			16
Trading account securities		66,460			35,573			74,167			87			(10	)
Loans held for sale		410,932			326,212			345,621			26			19
Available-for-sale and other securities		8,721,804			7,308,753			6,446,681			19			35
Held-to-maturity securities		3,496,493			3,836,667			2,236,121			(9	)		56
Loans and leases⁽¹⁾		46,723,374			43,120,500			42,555,833			8			10
Allowance for loan and lease losses		(631,036	)		(647,870	)		(666,030	)		(3	)		(5	)

Net loans and leases		46,092,338			42,472,630			41,889,803			9			10

Bank owned life insurance		1,703,692			1,647,170			1,633,247			3			4
Premises and equipment		613,214			634,657			639,632			(3	)		(4	)
Goodwill		522,541			444,268			444,268			18			18
Other intangible assets		85,324			93,193			103,512			(8	)		(18	)
Accrued income and other assets		1,665,071			1,609,876			1,654,922			3			1

Total assets	$	64,330,629		$	59,467,174		$	56,638,732			8	%		14	%

Liabilities and shareholders’ equity
Liabilities
Deposits⁽²⁾	$	50,129,837		$	47,506,718		$	46,564,046			6	%		8	%
Short-term borrowings		1,530,938			552,143			660,932			177			132
Federal Home Loan Bank advances		1,658,112			1,808,293			333,352			(8	)		397
Other long-term debt		2,590,212			1,349,119			904,668			92			186
Subordinated notes		976,264			1,100,860			1,111,598			(11	)		(12	)
Accrued expenses and other liabilities		1,161,056			1,059,888			1,112,076			10			4

Total liabilities		58,046,419			53,377,021			50,686,672			9			15

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		8,161			8,322			8,315			(2	)		(2	)
Capital surplus		7,243,879			7,398,515			7,387,033			(2	)		(2	)
Less treasury shares, at cost		(12,938	)		(9,643	)		(10,893	)		34			19
Accumulated other comprehensive loss		(182,016	)		(214,009	)		(230,767	)		(15	)		(21	)
Retained earnings		(1,159,168	)		(1,479,324	)		(1,587,920	)		(22	)		(27	)

Total shareholders’ equity		6,284,210			6,090,153			5,952,060			3			6

Total liabilities and shareholders’ equity	$	64,330,629		$	59,467,174		$	56,638,732			8	%		14	%

Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,500,000,000
Common shares issued		816,091,946			832,217,098			831,516,546
Common shares outstanding		814,453,953			830,963,427			830,144,646
Treasury shares outstanding		1,637,993			1,253,671			1,371,900
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		398,007			398,007			398,007

⁽¹⁾	See page 4 for detail of loans and leases.

⁽²⁾	See page 5 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)


	2014													2013
(dollar amounts in millions)	September 30,				June 30,				March 31,					December 31,				September 30,
Ending Balances by Type:
Commercial:⁽¹⁾
Commercial and industrial	$	18,791	40	%	$	18,899	41	%	$	18,046		41	%	$	17,594	41	%	$	17,335	41	%
Commercial real estate:
Construction		850	2			757	2			692		2			557	1			544	1
Commercial		4,141	9			4,233	9			4,339		10			4,293	10			4,328	10

Commercial real estate		4,991	11			4,990	11			5,031		12			4,850	11			4,872	11

Total commercial		23,782	51			23,889	52			23,077		53			22,444	52			22,207	52

Consumer:
Automobile		8,322	18			7,686	17			6,999		16			6,639	15			6,317	15
Home equity		8,436	18			8,405	18			8,373		19			8,336	19			8,347	20
Residential mortgage		5,788	12			5,707	12			5,542		12			5,321	12			5,307	12
Other consumer		395	1			393	1			363		—			380	2			378	1

Total consumer		22,941	49			22,191	48			21,277		47			20,676	48			20,349	48

Total loans and leases	$	46,723	100	%	$	46,080	100	%	$	44,354		100	%	$	43,120	100	%	$	42,556	100	%

Ending Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	13,136	28	%	$	13,096	29	%	$	13,027		29	%	$	12,710	30	%	$	12,639	30	%
Commercial Banking		11,919	26			11,846	26			10,962		25			10,735	25			10,988	26
AFCRE		15,229	33			14,762	32			14,125		32			13,568	31			12,841	30
RBHPCG		2,938	6			2,883	6			2,875		7			2,850	7			2,833	7
Home Lending		3,372	7			3,366	7			3,229		7			3,206	7			3,214	8
Treasury / Other		129	—			127	—			136		—			51	—			41	—

Total loans and leases	$	46,723	100	%	$	46,080	100	%	$	44,354		100	%	$	43,120	100	%	$	42,556	100	%


	2014										2013
	Third				Second				First					Fourth				Third
Average Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	13,100	28	%	$	13,040	29	%	$	12,807		29	%	$	12,675	29	%	$	12,589	30	%
Commercial Banking		11,702	25			11,292	25			10,861		25			11,122	26			10,780	26
AFCRE		14,926	32			14,460	32			13,679		32			13,216	31			12,558	30
RBHPCG		2,901	8			2,879	7			2,840		7			2,835	7			2,825	7
Home Lending		3,377	7			3,289	7			3,198		7			3,223	7			3,184	8
Treasury / Other		107	—			63	—			38		—			68	—			58	—

Total loans and leases	$	46,113	100	%	$	45,023	100	%	$	43,423		100	%	$	43,139	100	%	$	41,994	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)	September 30,				June 30,				March 31,				December 31,				September 30,
Ending Balances by Type:
Demand deposits—noninterest-bearing	$	14,754	29	%	$	14,151	29	%	$	14,314	29	%	$	13,650	29	%	$	13,421	29	%
Demand deposits—interest-bearing		6,052	12			5,921	12			5,970	12			5,880	12			5,856	13
Money market deposits		18,174	36			17,563	36			17,693	36			17,213	36			16,212	34
Savings and other domestic deposits		5,038	10			5,036	10			5,115	10			4,871	10			4,946	11
Core certificates of deposit		3,150	6			3,272	7			3,557	7			3,723	8			4,108	9

Total core deposits		47,168	93			45,943	94			46,649	94			45,337	95			44,543	96
Other domestic deposits of $250,000 or more		202	1			241	—			289	1			274	1			268	1
Brokered deposits and negotiable CDs		2,357	5			2,198	5			2,074	4			1,580	3			1,366	3
Deposits in foreign offices		402	1			367	1			337	1			316	1			387	—

Total deposits	$	50,129	100	%	$	48,749	100	%	$	49,349	100	%	$	47,507	100	%	$	46,564	100	%

Total core deposits:
Commercial	$	21,753	46	%	$	20,629	45	%	$	20,507	44	%	$	19,982	44	%	$	19,526	44	%
Consumer		25,415	54			25,314	55			26,142	56			25,355	56			25,017	56

Total core deposits	$	47,168	100	%	$	45,943	100	%	$	46,649	100	%	$	45,337	100	%	$	44,543	100	%

Ending Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	29,265	58	%	$	28,836	59	%	$	29,370	60	%	$	28,294	60	%	$	28,163	61	%
Commercial Banking		10,791	22			9,793	20			10,217	21			10,188	21			9,969	21
AFCRE		1,362	3			1,457	3			1,203	2			1,171	2			1,125	2
RBHPCG		5,898	11			6,124	12			6,267	12			6,094	13			5,876	13
Home Lending		269	1			284	1			281	1			330	1			278	1
Treasury / Other⁽¹⁾		2,544	5			2,255	5			2,011	4			1,430	3			1,153	2

Total deposits	$	50,129	100	%	$	48,749	100	%	$	49,349	100	%	$	47,507	100	%	$	46,564	100	%


	2014												2013
	Third				Second				First				Fourth				Third
Average Balances by Business Segment:⁽²⁾
Retail and Business Banking	$	28,865	59	%	$	29,108	60	%	$	28,633	60	%	$	28,424	61	%	$	28,156	61	%
Commercial Banking		10,248	21			9,780	20			10,060	21			9,861	21			9,604	21
AFCRE		1,285	2			1,183	2			1,142	2			1,114	2			1,064	2
RBHPCG		5,958	12			5,859	12			5,906	12			5,937	13			5,535	12
Home Lending		294	1			296	1			257	1			293	1			335	1
Treasury / Other⁽¹⁾		2,328	5			2,032	4			1,591	3			1,145	2			1,276	3

Total deposits	$	48,978	100	%	$	48,258	100	%	$	47,589	100	%	$	46,774	100	%	$	45,970	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)	Third			Second			First			Fourth			Third			2Q14			3Q13
Assets
Interest-bearing deposits in banks	$	82		$	91		$	83		$	71		$	54			(10	)%		52	%
Loans held for sale		351			288			279			322			379			22			(7	)
Securities:
Available-for-sale and other securities:
Taxable		6,935			6,662			6,240			5,818			6,040			4			15
Tax-exempt		1,620			1,290			1,115			548			565			26			187

Total available-for-sale and other securities		8,555			7,952			7,355			6,366			6,605			8			30
Trading account securities		50			45			38			76			76			11			(34	)
Held-to-maturity securities—taxable		3,556			3,677			3,783			3,038			2,139			(3	)		66

Total securities		12,161			11,674			11,176			9,480			8,820			4			38

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		18,581			18,262			17,631			17,671			17,032			2			9
Commercial real estate:
Construction		775			702			612			573			565			10			37
Commercial		4,188			4,345			4,289			4,331			4,345			(4	)		(4	)

Commercial real estate		4,963			5,047			4,901			4,904			4,910			(2	)		1

Total commercial		23,544			23,309			22,532			22,575			21,942			1			7

Consumer:
Automobile		8,012			7,349			6,786			6,502			6,075			9			32
Home equity		8,412			8,376			8,340			8,346			8,341			—			1
Residential mortgage		5,747			5,608			5,379			5,331			5,256			2			9
Other consumer		398			382			386			385			380			4			5

Total consumer		22,569			21,715			20,891			20,564			20,052			4			13

Total loans and leases		46,113			45,024			43,423			43,139			41,994			2			10
Allowance for loan and lease losses		(633	)		(642	)		(649	)		(668	)		(717	)		(1	)		(12	)

Net loans and leases		45,480			44,382			42,774			42,471			41,277			2			10

Total earning assets		58,707			57,077			54,961			53,012			51,247			3			15

Cash and due from banks		887			872			904			846			944			2			(6	)
Intangible assets		583			591			535			542			552			(1	)		6
All other assets		3,929			3,932			3,941			3,917			3,889			—			1

Total assets	$	63,473		$	61,830		$	59,692		$	57,649		$	55,915			3	%		14	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	14,090		$	13,466		$	13,192		$	13,337		$	13,088			5	%		8	%
Demand deposits—interest-bearing		5,913			5,945			5,775			5,755			5,763			(1	)		3

Total demand deposits		20,003			19,411			18,967			19,092			18,851			3			6
Money market deposits		17,929			17,680			17,648			16,827			15,739			1			14
Savings and other domestic deposits		5,020			5,086			4,967			4,912			5,007			(1	)		—
Core certificates of deposit		3,167			3,434			3,613			3,916			4,176			(8	)		(24	)

Total core deposits		46,119			45,611			45,195			44,747			43,773			1			5
Other domestic deposits of $250,000 or more		223			262			284			275			268			(15	)		(17	)
Brokered deposits and negotiable CDs		2,262			2,070			1,782			1,398			1,553			9			46
Deposits in foreign offices		374			315			328			354			376			19			(1	)

Total deposits		48,978			48,258			47,589			46,774			45,970			1			7
Short-term borrowings		1,092			939			883			629			710			16			54
Federal Home Loan Bank advances		2,489			1,977			1,499			851			549			26			353
Subordinated notes and other long-term debt		3,579			3,395			2,503			2,244			1,753			5			104

Total interest-bearing liabilities		42,048			41,103			39,282			37,161			35,894			2			17

All other liabilities		1,043			1,033			1,035			1,095			1,054			1			(1	)
Shareholders’ equity		6,292			6,228			6,183			6,056			5,879			1			7

Total liabilities and shareholders’ equity	$	63,473		$	61,830		$	59,692		$	57,649		$	55,915			3	%		14	%

⁽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)	Third		Second		First		Fourth		Third
Assets
Interest-bearing deposits in banks	$	39	$	8	$	6	$	7	$	9
Loans held for sale		3,487		3,072		2,603		3,586		3,699
Securities:
Available-for-sale and other securities:
Taxable		43,066		42,027		38,456		34,554		35,280
Tax-exempt		12,245		10,161		8,438		8,696		5,700

Total available-for-sale and other securities		55,311		52,188		46,894		43,250		40,980
Trading account securities		107		79		107		79		43
Held-to-maturity securities—taxable		21,777		22,614		23,320		18,379		12,220

Total securities		77,195		74,881		70,321		61,708		53,243

Loans and leases:
Commercial:
Commercial and industrial		163,765		161,173		157,016		159,686		160,285
Commercial real estate:
Construction		8,673		7,599		6,108		5,916		5,650
Commercial		38,542		45,690		41,171		43,905		45,525

Commercial real estate		47,215		53,289		47,279		49,821		51,175

Total commercial		210,980		214,462		204,295		209,507		211,460

Consumer:
Automobile		68,786		63,543		59,153		60,080		58,216
Home equity		86,372		86,099		84,634		86,460		86,131
Residential mortgage		54,352		52,896		50,834		50,225		50,111
Other consumer		7,355		6,998		6,494		6,447		6,677

Total consumer		216,865		209,536		201,115		203,212		201,135

Total loans and leases		427,845		423,998		405,410		412,719		412,595

Total earning assets	$	508,566	$	501,959	$	478,340	$	478,020	$	469,546

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits—interest-bearing		601		571		512		630		636

Total demand deposits		601		571		512		630		636
Money market deposits		10,407		10,548		10,940		11,296		10,211
Savings and other domestic deposits		2,050		2,179		2,459		2,925		3,134
Core certificates of deposit		5,909		6,938		8,387		10,330		11,094

Total core deposits		18,967		20,236		22,298		25,181		25,075
Other domestic deposits of $250,000 or more		246		281		289		271		300
Brokered deposits and negotiable CDs		1,126		1,228		1,246		1,385		2,145
Deposits in foreign offices		121		102		104		122		136

Total deposits		20,460		21,847		23,937		26,959		27,656
Short-term borrowings		292		270		150		129		158
Federal Home Loan Bank advances		982		621		453		306		197
Subordinated notes and other long-term debt		12,991		12,536		10,409		11,781		10,049

Total interest bearing liabilities		34,725		35,274		34,949		39,175		38,060

Net interest income	$	473,841	$	466,685	$	443,391	$	438,845	$	431,486

⁽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⁾	Third			Second			First			Fourth			Third
Assets
Interest-bearing deposits in banks		0.19	%		0.04	%		0.03	%		0.04	%		0.07	%
Loans held for sale		3.98			4.27			3.74			4.46			3.89
Securities:
Available-for-sale and other securities:
Taxable		2.48			2.52			2.47			2.38			2.34
Tax-exempt		3.02			3.15			3.03			6.34			4.04

Total available-for-sale and other securities		2.59			2.63			2.55			2.72			2.48
Trading account securities		0.85			0.70			1.12			0.42			0.23
Held-to-maturity securities—taxable		2.45			2.46			2.47			2.42			2.29

Total securities		2.54			2.57			2.52			2.60			2.41
Loans and leases:⁽²⁾⁽³⁾
Commercial:
Commercial and industrial		3.45			3.49			3.56			3.54			3.68
Commercial real estate:
Construction		4.38			4.29			3.99			4.04			3.91
Commercial		3.60			4.16			3.84			3.97			4.10

Commercial real estate		3.72			4.17			3.86			3.98			4.08

Total commercial		3.51			3.64			3.63			3.63			3.77

Consumer:
Automobile		3.41			3.47			3.54			3.67			3.80
Home equity		4.07			4.12			4.12			4.11			4.10
Residential mortgage		3.78			3.77			3.78			3.77			3.81
Other consumer		7.31			7.34			6.82			6.64			6.98

Total consumer		3.82			3.87			3.89			3.93			3.99

Total loans and leases		3.66			3.75			3.75			3.77			3.87

Total earning assets		3.44	%		3.53	%		3.53	%		3.58	%		3.64	%

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		0.23			0.24			0.25			0.27			0.26
Savings and other domestic deposits		0.16			0.17			0.20			0.24			0.25
Core certificates of deposit		0.74			0.81			0.94			1.05			1.05

Total core deposits		0.23			0.25			0.28			0.32			0.32
Other domestic deposits of $250,000 or more		0.44			0.43			0.41			0.39			0.44
Brokered deposits and negotiable CDs		0.20			0.24			0.28			0.39			0.55
Deposits in foreign offices		0.13			0.13			0.13			0.14			0.14

Total deposits		0.23			0.25			0.28			0.32			0.33
Short-term borrowings		0.11			0.12			0.07			0.08			0.09
Federal Home Loan Bank advances		0.15			0.12			0.12			0.14			0.14
Subordinated notes and other long-term debt		1.45			1.48			1.66			2.10			2.29

Total interest-bearing liabilities		0.33			0.34			0.36			0.42			0.42

Net interest rate spread		3.11			3.19			3.17			3.16			3.22
Impact of noninterest-bearing funds on margin		0.09			0.09			0.10			0.12			0.12

Net interest margin		3.20	%		3.28	%		3.27	%		3.28	%		3.34	%


Commercial Loan Derivative Impact
(Unaudited)
	Average Rates (2)
	2014									2013
Fully-taxable equivalent basis⁽¹⁾	Third			Second			First			Fourth			Third
Commercial loans⁽²⁾⁽³⁾		3.30	%		3.42	%		3.37	%		3.39	%		3.50	%
Impact of commercial loan derivatives		0.20			0.22			0.25			0.24			0.27

Total commercial—as reported		3.51	%		3.64	%		3.63	%		3.63	%		3.77	%

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

⁽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)	Third		Second		First		Fourth		Third
Interest income	$	501,060	$	495,322	$	472,455	$	469,824	$	462,912
Interest expense		34,725		35,274		34,949		39,175		38,060

Net interest income		466,335		460,048		437,506		430,649		424,852
Provision for credit losses		24,480		29,385		24,630		24,331		11,400

Net interest income after provision for credit losses		441,855		430,663		412,876		406,318		413,452

Service charges on deposit accounts		69,118		72,633		64,582		69,992		72,918
Mortgage banking income		25,051		22,717		23,089		24,327		23,621
Trust services		28,045		29,581		29,565		30,711		30,470
Electronic banking		27,275		26,491		23,642		24,251		24,282
Insurance income		16,729		15,996		16,496		15,556		17,269
Brokerage income		17,155		17,905		17,167		15,151		16,636
Bank owned life insurance income		14,888		13,865		13,307		13,816		13,740
Capital markets fees		10,246		10,500		9,194		12,332		12,825
Gain on sale of loans		8,199		3,914		3,570		7,144		5,063
Securities gains (losses)		198		490		16,970		1,239		98
Other income		30,445		35,975		30,903		35,373		36,845

Total noninterest income		247,349		250,067		248,485		249,892		253,767

Personnel costs		275,409		260,600		249,477		249,554		229,326
Outside data processing and other services		53,073		54,338		51,490		51,071		49,313
Net occupancy		34,405		28,673		33,433		31,983		35,591
Equipment		30,183		28,749		28,750		28,775		28,191
Marketing		12,576		14,832		10,686		13,704		12,271
Deposit and other insurance expense		11,628		10,599		13,718		10,056		11,155
Amortization of intangibles		9,813		9,520		9,291		10,320		10,362
Professional services		13,763		17,896		12,231		11,567		12,487
Other expense		39,468		33,429		51,045		38,979		34,640

Total noninterest expense		480,318		458,636		460,121		446,009		423,336

Income before income taxes		208,886		222,094		201,240		210,201		243,883
Provision for income taxes		53,870		57,475		52,097		52,029		65,047

Net income	$	155,016	$	164,619	$	149,143	$	158,172	$	178,836

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

Net income applicable to common shares	$	147,052	$	156,656	$	141,179	$	150,207	$	170,869

Average common shares—basic		816,497		821,546		829,659		830,590		830,398
Average common shares—diluted		829,623		834,687		842,677		842,324		841,025
Per common share
Net income—basic	$	0.18	$	0.19	$	0.17	$	0.18	$	0.21
Net income—diluted		0.18		0.19		0.17		0.18		0.20
Cash dividends declared		0.05		0.05		0.05		0.05		0.05
Revenue—fully-taxable equivalent (FTE)
Net interest income	$	466,335	$	460,048	$	437,506	$	430,649	$	424,852
FTE adjustment		7,506		6,637		5,885		8,196		6,634

Net interest income⁽²⁾		473,841		466,685		443,391		438,845		431,486
Noninterest income		247,349		250,067		248,485		249,892		253,767

Total revenue⁽²⁾	$	721,190	$	716,752	$	691,876	$	688,737	$	685,253

(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)	Third			Second			First			Fourth			Third			2Q14			3Q13
Mortgage banking income
Origination and secondary marketing	$	15,546		$	14,289		$	14,497		$	14,201		$	15,568			9	%		—	%
Servicing fees		10,786			10,873			10,939			10,809			10,868			(1	)		(1	)
Amortization of capitalized servicing		(6,119	)		(5,951	)		(5,982	)		(6,062	)		(6,783	)		3			(10	)
Other mortgage banking income		4,075			4,212			3,535			3,397			3,685			(3	)		11

Subtotal		24,288			23,423			22,989			22,345			23,338			4			4
MSR valuation adjustment⁽¹⁾		989			(3,046	)		(1,597	)		3,458			173			N.R.			N.R.
Net trading gains (losses) related to MSR hedging		(226	)		2,340			1,697			(1,476	)		110			N.R.			N.R.

Total mortgage banking income	$	25,051		$	22,717		$	23,089		$	24,327		$	23,621			10	%		6	%

Mortgage originations (in millions)	$	997		$	982		$	657		$	841		$	1,176			2	%		(15	)%
Capitalized mortgage servicing rights⁽²⁾		161,900			159,860			163,279			162,301			158,776			1			2
Total mortgages serviced for others (in millions)⁽²⁾		15,593			15,560			15,614			15,239			15,231			—			2
MSR% of investor servicing portfolio⁽²⁾		1.04	%		1.03	%		1.05	%		1.07	%		1.04	%		1			—

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	989		$	(3,046	)	$	(1,597	)	$	3,458		$	173			N.R.			N.R.
Net trading gains (losses) related to MSR hedging		(226	)		2,340			1,697			(1,476	)		110			N.R.			N.R.

Net gain (loss) of MSR hedging	$	763		$	(706	)	$	100		$	1,982		$	283			N.R.			N.R.

N.R. - Not relevant, as denominator of calculation is a gain/loss in prior period compared with a loss/gain 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)	Third			Second			First			Fourth			Third
Allowance for loan and lease losses, beginning of period	$	635,101		$	631,918		$	647,870		$	666,030		$	733,076
Loan and lease losses		(58,511	)		(58,827	)		(73,011	)		(73,684	)		(85,252	)
Recoveries of loans previously charged off		28,488			30,184			30,025			27,237			29,510

Net loan and lease losses		(30,023	)		(28,643	)		(42,986	)		(46,447	)		(55,742	)

Provision for loan and lease losses		25,958			31,826			28,161			28,289			(11,234	)
Allowance of assets sold or transferred to loans held for sale		—			—			(1,127	)		(2	)		(70	)

Allowance for loan and lease losses, end of period	$	631,036		$	635,101		$	631,918		$	647,870		$	666,030

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	56,927		$	59,368		$	62,899		$	66,857		$	44,223
Provision for (reduction in) unfunded loan commitments and letters of credit losses		(1,478	)		(2,441	)		(3,531	)		(3,958	)		22,634

Allowance for unfunded loan commitments and letters of credit, end of period	$	55,449		$	56,927		$	59,368		$	62,899		$	66,857

Total allowance for credit losses, end of period	$	686,485		$	692,028		$	691,286		$	710,769		$	732,887

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.35	%		1.38	%		1.42	%		1.50	%		1.57	%
Nonaccrual loans and leases (NALs)		194			195			193			201			200
Nonperforming assets (NPAs)		173			175			174			184			178
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.47	%		1.50	%		1.56	%		1.65	%		1.72	%
Nonaccrual loans and leases		211			213			211			221			220
Nonperforming assets		188			191			191			202			196

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	2014									2013
(dollar amounts in thousands)	Third			Second			First			Fourth			Third
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	12,587		$	10,597		$	8,606		$	9,826		$	1,661
Commercial real estate:
Construction		2,171			(171	)		918			(88	)		6,165
Commercial		(8,178	)		(2,020	)		(1,905	)		(2,783	)		6,398

Commercial real estate		(6,007	)		(2,191	)		(987	)		(2,871	)		12,563

Total commercial		6,580			8,406			7,619			6,955			14,224

Consumer:
Automobile		3,976			2,926			4,642			3,759			2,721
Home equity		6,448			8,491			15,687			20,451			27,175
Residential mortgage		5,428			3,406			7,859			7,605			4,789
Other consumer		7,591			5,414			7,179			7,677			6,833

Total consumer		23,443			20,237			35,367			39,492			41,518

Total net charge-offs	$	30,023		$	28,643		$	42,986		$	46,447		$	55,742

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.27	%		0.23	%		0.20	%		0.22	%		0.04	%
Commercial real estate:
Construction		1.12			(0.10	)		0.60			(0.06	)		4.36
Commercial		(0.78	)		(0.19	)		(0.18	)		(0.26	)		0.59

Commercial real estate		(0.48	)		(0.17	)		(0.08	)		(0.23	)		1.02

Total commercial		0.11			0.14			0.14			0.12			0.26

Consumer:
Automobile		0.20			0.16			0.27			0.23			0.18
Home equity		0.31			0.41			0.75			0.98			1.30
Residential mortgage		0.38			0.24			0.58			0.57			0.36
Other consumer		7.61			5.66			7.44			7.98			7.19

Total consumer		0.42			0.37			0.68			0.77			0.83

Net charge-offs as a % of average loans		0.26	%		0.25	%		0.40	%		0.43	%		0.53	%

Huntington Bancshares Incorporated

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

(Unaudited)


	2014									2013
(dollar amounts in thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	90,265		$	75,274		$	57,053		$	56,615		$	68,034
Commercial real estate		59,812			65,398			71,344			73,417			80,295
Automobile		4,834			4,384			6,218			6,303			5,972
Residential mortgage		98,139			110,635			121,681			119,532			116,260
Home equity		72,715			69,266			70,862			66,189			62,545

Total nonaccrual loans and leases		325,765			324,957			327,158			322,056			333,106
Other real estate, net:
Residential		30,661			31,761			30,581			23,447			16,610
Commercial		5,609			2,934			5,110			4,217			12,544

Total other real estate, net		36,270			34,695			35,691			27,664			29,154
Other NPAs ⁽¹⁾		2,440			2,440			2,440			2,440			12,000

Total nonperforming assets	$	364,475		$	362,092		$	365,289		$	352,160		$	374,260

Nonaccrual loans and leases as a % of total loans and leases		0.70	%		0.71	%		0.74	%		0.75	%		0.78	%
NPA ratio⁽²⁾		0.78			0.79			0.82			0.82			0.88
(NPA+90days)/(Loan+OREO)⁽³⁾		1.08			1.08			1.17			1.20			1.29

	2014									2013
	Third			Second			First			Fourth			Third
Nonperforming assets, beginning of period	$	362,092		$	365,289		$	352,160		$	374,260		$	396,699
New nonperforming assets		102,834			123,601			117,804			109,454			139,767
Returns to accruing status		(24,884	)		(23,000	)		(9,333	)		(12,367	)		(31,293	)
Loan and lease losses		(36,387	)		(54,646	)		(47,596	)		(55,750	)		(65,823	)
Payments		(29,121	)		(41,947	)		(39,233	)		(51,323	)		(61,116	)
Sales		(10,059	)		(7,205	)		(8,513	)		(12,114	)		(3,974	)

Nonperforming assets, end of period	$	364,475		$	362,092		$	365,289		$	352,160		$	374,260

⁽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)	September 30,			June 30,			March 31,			December 31,			September 30,
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	7,458		$	9,977		$	11,554		$	14,562		$	19,217
Commercial real estate		26,285			27,267			36,711			39,142			44,026
Automobile		4,827			2,895			4,252			5,055			3,599
Residential mortgage (excluding loans guaranteed by the U.S. Government)		33,331			29,709			29,534			2,469			13,978
Home equity		14,809			14,912			15,494			13,983			13,044
Other consumer		638			607			867			998			1,102

Total, excl. loans guaranteed by the U.S. Government		87,348			85,367			98,412			76,209			94,966
Add: loans guaranteed by U.S. Government		54,778			51,641			56,484			87,985			81,770

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	142,126		$	137,008		$	154,896		$	164,194		$	176,736

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.19	%		0.19	%		0.22	%		0.18	%		0.22	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.11			0.11			0.13			0.20			0.20
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.30			0.30			0.35			0.38			0.42
Accruing troubled debt restructured loans:
Commercial and industrial	$	83,026		$	90,604		$	102,970		$	83,857		$	85,687
Commercial real estate		186,542			212,736			210,876			204,668			204,597
Automobile		31,480			31,833			27,393			30,781			30,981
Home equity		229,500			221,539			202,044			188,266			153,591
Residential mortgage		271,762			289,239			284,194			305,059			300,809
Other consumer		3,313			3,496			1,727			1,041			959

Total accruing troubled debt restructured loans	$	805,623		$	849,447		$	829,204		$	813,672		$	776,624

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	19,110		$	6,677		$	7,197		$	7,291		$	8,643
Commercial real estate		27,980			24,396			27,972			23,981			22,695
Automobile		4,817			4,287			5,676			6,303			5,972
Home equity		25,149			22,264			20,992			20,715			11,434
Residential mortgage		72,729			81,546			84,441			82,879			77,525
Other consumer		74			120			120			—			—

Total nonaccruing troubled debt restructured loans	$	149,859		$	139,290		$	146,398		$	141,169		$	126,269

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)	Third			Second			First			Fourth			Third
Common stock price, per share
High⁽¹⁾	$	10.300		$	10.290		$	10.010		$	9.730		$	8.780
Low⁽¹⁾		9.290			8.890			8.720			8.040			7.900
Close		9.730			9.540			9.970			9.650			8.260
Average closing price		9.790			9.406			9.499			8.982			8.445
Dividends, per share
Cash dividends declared per common share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05

Common shares outstanding
Average—basic		816,497			821,546			829,659			830,590			830,398
Average—diluted		829,623			834,687			842,677			842,324			841,025
Ending		814,454			817,002			827,772			830,963			830,145
Book value per common share	$	7.24		$	7.17		$	6.99		$	6.86		$	6.70
Tangible book value per common share⁽²⁾		6.53			6.48			6.31			6.26			6.09
Common share repurchases
Number of shares repurchased		5,438			12,095			14,571			—			1,974

	2014									2013
(dollar amounts in millions)	September 30,			June 30,			March 31,			December 31,			September 30,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	6,284		$	6,241		$	6,176		$	6,090		$	5,952
Less: goodwill		(523	)		(505	)		(505	)		(444	)		(444	)
Less: other intangible assets		(85	)		(81	)		(91	)		(93	)		(104	)
Add: related deferred tax liability⁽²⁾		30			28			32			33			36

Total tangible equity		5,706			5,683			5,612			5,586			5,440
Less: preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)

Total tangible common equity	$	5,320		$	5,297		$	5,226		$	5,200		$	5,054

Total assets	$	64,331		$	63,797		$	61,146		$	59,467		$	56,639
Less: goodwill		(523	)		(505	)		(505	)		(444	)		(444	)
Less: other intangible assets		(85	)		(81	)		(91	)		(93	)		(104	)
Add: related deferred tax liability⁽²⁾		30			28			32			33			36

Total tangible assets	$	63,753		$	63,239		$	60,582		$	58,963		$	56,127

Tangible equity / tangible asset ratio		8.95	%		8.99	%		9.26	%		9.47	%		9.69	%
Tangible common equity / tangible asset ratio		8.35			8.38			8.63			8.82			9.01
Tier 1 common risk-based capital ratio:⁽⁴⁾
Tier 1 capital	$	6,180		$	6,132		$	6,107		$	6,100		$	6,018
Shareholders’ preferred equity		(386	)		(386	)		(386	)		(386	)		(386	)
Trust preferred securities		(304	)		(304	)		(304	)		(299	)		(299	)
REIT preferred stock		—			—			—			—			(50	)

Tier 1 common	$	5,490		$	5,442		$	5,417		$	5,415		$	5,283

Total risk-weighted assets⁽⁴⁾	$	53,239		$	53,035		$	51,120		$	49,690		$	48,687
Tier 1 common risk-based capital ratio⁽⁴⁾		10.31	%		10.26	%		10.60	%		10.90	%		10.85	%
Other capital data:
Tier 1 leverage ratio⁽⁴⁾		9.83			10.01			10.32			10.67			10.85
Tier 1 risk-based capital ratio⁽⁴⁾		11.61			11.56			11.95			12.28			12.36
Total risk-based capital ratio⁽⁴⁾		13.72			13.67			14.13			14.57			14.67
Tangible common equity / risk-weighted assets ratio⁽⁴⁾		9.99			9.99			10.22			10.46			10.38
Other data:
Number of employees (Average full-time equivalent)		11,946			12,000			11,848			11,765			12,080
Number of domestic full-service branches⁽³⁾		753			730			727			711			731

⁽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⁾	September 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
	Nine Months Ended September 30,						Change
(dollar amounts in millions)	2014			2013			Amount			Percent
Assets
Interest bearing deposits in banks	$	85		$	70		$	15			21	%
Loans held for sale		306			588			(282	)		(48	)
Available-for-sale and other securities:
Taxable		6,615			6,574			41			1
Tax-exempt		1,344			568			776			137

Total available-for-sale and other securities		7,959			7,142			817			11
Trading account securities		45			82			(37	)		(45	)
Held-to-maturity securities—taxable		3,671			1,857			1,814			98

Total securities		11,675			9,081			2,594			29

Loans and leases:⁽¹⁾
Commercial:
Commercial and industrial		18,161			17,007			1,154			7
Commercial real estate:
Construction		697			583			114			20
Commercial		4,274			4,488			(214	)		(5	)

Commercial real estate		4,971			5,071			(100	)		(2	)

Total commercial		23,132			22,078			1,054			5

Consumer:
Automobile		7,387			5,402			1,985			37
Home equity		8,376			8,299			77			1
Residential mortgage		5,579			5,154			425			8
Other consumer		389			451			(62	)		(14	)

Total consumer		21,731			19,306			2,425			13

Total loans and leases		44,863			41,384			3,479			8
Allowance for loan and lease losses		(641	)		(745	)		104			(14	)

Net loans and leases		44,222			40,639			3,583			9

Total earning assets		56,929			51,123			5,806			11

Cash and due from banks		888			930			(42	)		(5	)
Intangible assets		570			562			8			1
All other assets		3,934			3,974			(40	)		(1	)

Total assets	$	61,680		$	55,844		$	5,836			10	%

Liabilities and shareholders’ equity
Deposits:
Demand deposits—noninterest-bearing	$	13,586		$	12,714		$	872			7	%
Demand deposits—interest-bearing		5,878			5,888			(10	)		—

Total demand deposits		19,464			18,602			862			5
Money market deposits		17,753			15,287			2,466			16
Savings and other domestic deposits		5,025			5,068			(43	)		(1	)
Core certificates of deposit		3,403			4,761			(1,358	)		(29	)

Total core deposits		45,645			43,718			1,927			4
Other domestic deposits of $250,000 or more		256			317			(61	)		(19	)
Brokered deposits and negotiable CDs		2,040			1,676			364			22
Deposits in foreign offices		339			344			(5	)		(1	)

Total deposits		48,280			46,055			2,225			5
Short-term borrowings		972			724			248			34
Federal Home Loan Bank advances		1,992			663			1,329			200
Subordinated notes and other long-term debt		3,163			1,467			1,696			116

Total interest-bearing liabilities		40,821			36,195			4,626			13

All other liabilities		1,038			1,068			(30	)		(3	)
Shareholders’ equity		6,235			5,867			368			6

Total liabilities and shareholders’ equity	$	61,680		$	55,844		$	5,836			10	%

⁽¹⁾	Includes nonaccrual loans.

Huntington Bancshares Incorporated

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

(Unaudited)


	YTD Interest Income /Expense
	Nine Months Ended September 30,
(dollar amounts in thousands)	2014		2013
Assets
Interest bearing deposits in banks	$	53	$	94
Loans held for sale		9,162		15,319
Securities:
Available-for-sale and other securities:
Taxable		123,549		114,004
Tax-exempt		30,844		16,967

Total available-for-sale and other securities		154,393		130,971
Trading account securities		293		275
Held-to-maturity securities—taxable		67,711		31,835

Total securities		222,397		163,081
Loans and leases:
Commercial:
Commercial and industrial		481,954		484,045
Commercial real estate:
Construction		22,380		17,524
Commercial		125,403		138,717

Commercial real estate		147,783		156,241

Total commercial		629,737		640,286

Consumer:
Automobile		191,482		161,389
Home equity		257,105		257,375
Residential mortgage		158,082		149,376
Other consumer		20,847		23,037

Total consumer		627,516		591,177

Total loans and leases		1,257,253		1,231,463

Total earning assets	$	1,488,865	$	1,409,957

Liabilities
Deposits:
Demand deposits—noninterest-bearing	$	—	$	—
Demand deposits—interest-bearing		1,684		1,894

Total demand deposits		1,684		1,894
Money market deposits		31,895		27,534
Savings and other domestic deposits		6,688		10,367
Core certificates of deposit		21,234		40,214

Total core deposits		61,501		80,009
Other domestic deposits of $250,000 or more		816		1,171
Brokered deposits and negotiable CDs		3,600		7,715
Deposits in foreign offices		327		386

Total deposits		66,244		89,281
Short-term borrowings		712		571
Federal Home Loan Bank advances		2,056		771
Subordinated notes and other long-term debt		35,936		26,231

Total interest-bearing liabilities		104,948		116,854

Net interest income	$	1,383,917	$	1,293,103

⁽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)
	Nine Months Ended September 30,
Fully-taxable equivalent basis⁽¹⁾	2014			2013
Assets
Interest bearing deposits in banks		0.08	%		0.18	%
Loans held for sale		3.99			3.47
Securities:
Available-for-sale and other securities:
Taxable		2.49			2.31
Tax-exempt		3.06			3.98

Total available-for-sale and other securities		2.59			2.45
Trading account securities		0.87			0.45
Held-to-maturity securities—taxable		2.46			2.29

Total securities		2.54			2.39

Loans and leases:⁽³⁾
Commercial:
Commercial and industrial		3.50			3.75
Commercial real estate:
Construction		4.24			3.96
Commercial		3.87			4.08

Commercial real estate		3.92			4.06

Total commercial		3.59			3.82

Consumer:
Automobile		3.47			3.99
Home equity		4.10			4.15
Residential mortgage		3.78			3.86
Other consumer		7.16			6.82

Total consumer		3.86			4.09

Total loans and leases		3.72			3.95

Total earning assets		3.50	%		3.69	%

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

Total demand deposit		0.01			0.01
Money market deposits		0.24			0.24
Savings and other domestic deposits		0.18			0.27
Core certificates of deposit		0.83			1.13

Total core deposits		0.26			0.35
Other domestic deposits of $250,000 or more		0.43			0.49
Brokered deposits and negotiable CDs		0.24			0.62
Deposits in foreign offices		0.13			0.15

Total deposits		0.26			0.36
Short-term borrowings		0.10			0.11
Federal Home Loan Bank advances		0.14			0.15
Subordinated notes and other long-term debt		1.51			2.39

Total interest bearing liabilities		0.34			0.43

Net interest rate spread		3.15			3.26
Impact of noninterest-bearing funds on margin		0.10			0.12

Net interest margin		3.25	%		3.38	%


Commercial Loan Derivative Impact
(Unaudited)
	YTD Average Rates
	Nine Months Ended September 30, ⁽²⁾
Fully-taxable equivalent basis⁽¹⁾	2014			2013
Commercial loans⁽²⁾⁽³⁾		3.36	%		3.54	%
Impact of commercial loan derivatives		0.23			0.28

Total commercial—as reported		3.59	%		3.82	%

Average 30 day LIBOR		0.15	%		0.19	%

⁽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⁽¹⁾

(Unaudited)


	Nine Months Ended September 30,
(dollar amounts in thousands, except per share amounts)	2014		2013			Amount			Percentage
Interest income	$	1,468,837	$	1,390,813		$	78,024			6	%
Interest expense		104,948		116,854			(11,906	)		(10	)

Net interest income		1,363,889		1,273,959			89,930			7
Provision for credit losses		78,495		65,714			12,781			19

Net interest income after provision for credit losses		1,285,394		1,208,245			77,149			6

Service charges on deposit accounts		206,333		201,810			4,523			2
Mortgage banking income		70,857		102,528			(31,671	)		(31	)
Trust services		87,191		92,296			(5,105	)		(6	)
Electronic banking		77,408		68,340			9,068			13
Insurance income		49,221		53,708			(4,487	)		(8	)
Brokerage income		52,227		54,473			(2,246	)		(4	)
Bank owned life insurance income		42,060		42,603			(543	)		(1	)
Capital markets fees		29,940		32,888			(2,948	)		(9	)
Gain on sale of loans		15,683		11,027			4,656			42
Securities gains (losses)		17,658		(821	)		18,479			N.R.
Other income		97,323		103,452			(6,129	)		(6	)

Total noninterest income		745,901		762,304			(16,403	)		(2	)

Personnel costs		785,486		752,083			33,403			4
Outside data processing and other services		158,901		148,476			10,425			7
Net occupancy		96,511		93,361			3,150			3
Equipment		87,682		78,018			9,664			12
Marketing		38,094		37,481			613			2
Deposit and other insurance expense		35,945		40,105			(4,160	)		(10	)
Amortization of intangibles		28,624		31,044			(2,420	)		(8	)
Professional services		43,890		29,020			14,870			51
Other expense		123,942		102,406			21,536			21

Total noninterest expense		1,399,075		1,311,994			87,081			7

Income before income taxes		632,220		658,555			(26,335	)		(4	)
Provision for income taxes		163,442		175,445			(12,003	)		(7	)

Net income	$	468,778	$	483,110		$	(14,332	)		(3	)%

Dividends on preferred shares		23,891		23,904			(13	)		—

Net income applicable to common shares	$	444,887	$	459,206		$	(14,319	)		(3	)%

Average common shares—basic		820,884		835,410			(14,526	)		(2	)
Average common shares—diluted		833,927		844,524			(10,597	)		(1	)
Per common share
Net income—basic	$	0.54	$	0.55		$	(0.01	)		(2	)%
Net income—diluted		0.53		0.54			(0.01	)		(2	)
Cash dividends declared		0.15		0.14			0.01			7
Revenue—fully taxable equivalent (FTE)
Net interest income	$	1,363,889	$	1,273,959		$	89,930			7	%
FTE adjustment⁽²⁾		20,028		19,144			884			5

Net interest income		1,383,917		1,293,103			90,814			7
Noninterest income		745,901		762,304			(16,403	)		(2	)

Total revenue	$	2,129,818	$	2,055,407		$	74,411			4	%

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

⁽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

Year To Date Mortgage Banking Income

(Unaudited)


	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except as noted)	2014			2013			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	44,332		$	70,815		$	(26,483	)		(37	)%
Servicing fees		32,598			33,007			(409	)		(1	)
Amortization of capitalized servicing		(18,052	)		(22,684	)		4,632			(20	)
Other mortgage banking income		11,822			12,809			(987	)		(8	)

Subtotal		70,700			93,947			(23,247	)		(25	)
MSR valuation adjustment⁽¹⁾		(3,654	)		32,098			N.R.			N.R.
Net trading gains (losses) related to MSR hedging		3,811			(23,517	)		N.R.			N.R.

Total mortgage banking income	$	70,857		$	102,528		$	(31,671	)		(31	)%

Mortgage originations (in millions)	$	2,636		$	3,577		$	(941	)		(26	)%
Capitalized mortgage servicing rights⁽²⁾		161,900			158,776			3,124			2
Total mortgages serviced for others (in millions)⁽²⁾		15,593			15,231			362			2
MSR % of investor servicing portfolio		1.04	%		1.04	%		—	%		—

Net impact of MSR hedging
MSR valuation adjustment⁽¹⁾	$	(3,654	)	$	32,098		$	N.R.			N.R.
Net trading gains (losses) related to MSR hedging		3,811			(23,517	)		N.R.			N.R.

Net gain (loss) on MSR hedging	$	157		$	8,581		$	(8,424	)		(98	)%

N.R.—Not relevant, as denominator of calculation is a gain/loss in prior period compared with a loss/gain 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

Year To Date Credit Reserves Analysis

(Unaudited)


	Nine Months Ended September 30,
(dollar amounts in thousands)	2014			2013
Allowance for loan and lease losses, beginning of period	$	647,870		$	769,075
Loan and lease losses		(190,349	)		(232,632	)
Recoveries of loans previously charged off		88,697			90,413

Net loan and lease losses		(101,652	)		(142,219	)

Provision for loan and lease losses		85,945			39,508
Allowance of assets sold or transferred to loans held for sale		(1,127	)		(334	)

Allowance for loan and lease losses, end of period	$	631,036		$	666,030

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		(7,450	)		26,206

Allowance for unfunded loan commitments and letters of credit, end of period	$	55,449		$	66,857

Total allowance for credit losses	$	686,485		$	732,887

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		1.35	%		1.57	%
Nonaccrual loans and leases (NALs)		194			200
Nonperforming assets (NPAs)		173			178
Total allowance for credit losses (ACL) as % of:
Total loans and leases		1.47	%		1.72	%
Nonaccrual loans and leases (NALs)		211			220
Nonperforming assets (NPAs)		188			196

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)


	Nine Months Ended September 30,
(dollar amounts in thousands)	2014			2013
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	31,790		$	6,564
Commercial real estate:
Construction		2,918			6,446
Commercial		(12,103	)		21,278

Commercial real estate		(9,185	)		27,724

Total commercial		22,605			34,288

Consumer:
Automobile		11,544			6,779
Home equity		30,626			61,812
Residential mortgage		16,693			19,557
Other consumer		20,184			19,783

Total consumer		79,047			107,931

Total net charge-offs	$	101,652		$	142,219

Net charge-offs—annualized percentages:
Commercial:
Commercial and industrial		0.23	%		0.05	%
Commercial real estate:
Construction		0.56			1.47
Commercial		(0.38	)		0.63

Commercial real estate		(0.25	)		0.73

Total commercial		0.13			0.21

Automobile		0.21			0.17
Home equity		0.49			0.99
Residential mortgage		0.40			0.51
Other consumer		6.91			5.84

Total consumer		0.48			0.75

Net charge-offs as a % of average loans		0.30	%		0.46	%

Huntington Bancshares Incorporated

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

(Unaudited)


	September 30,
(dollar amounts in thousands)	2014			2013
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	90,265		$	68,034
Commercial real estate		59,812			80,295
Automobile		4,834			5,972
Residential mortgage		98,139			116,260
Home equity		72,715			62,545

Total nonaccrual loans and leases		325,765			333,106
Other real estate, net:
Residential		30,661			16,610
Commercial		5,609			12,544

Total other real estate, net		36,270			29,154
Other NPAs ⁽¹⁾		2,440			12,000

Total nonperforming assets	$	364,475		$	374,260

Nonaccrual loans and leases as a % of total loans and leases		0.70	%		0.78	%
NPA ratio ⁽²⁾		0.78			0.88

	Nine Months Ended September 30,
(dollar amounts in thousands)	2014			2013
Nonperforming assets, beginning of period	$	352,160		$	445,775
New nonperforming assets		344,239			356,668
Returns to accruing status		(57,217	)		(69,745	)
Loan and lease losses		(138,629	)		(157,388	)
Payments		(110,301	)		(179,403	)
Sales		(25,777	)		(21,647	)

Nonperforming assets, end of period	$	364,475		$	374,260

⁽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)


	September 30,
(dollar amounts in thousands)	2014			2013
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	7,458		$	19,217
Commercial real estate		26,285			44,026
Automobile		4,827			3,599
Residential mortgage (excluding loans guaranteed by the U.S. Government)		33,331			13,978
Home equity		14,809			13,044
Other consumer		638			1,102

Total, excl. loans guaranteed by the U.S. Government		87,348			94,966
Add: loans guaranteed by U.S. Government		54,778			81,770

Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	142,126		$	176,736

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.19	%		0.22	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.11	%		0.20	%
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.30	%		0.42	%
Accruing troubled debt restructured loans:
Commercial and industrial	$	83,026		$	85,687
Commercial real estate		186,542			204,597
Automobile		31,480			30,981
Home equity		229,500			153,591
Residential mortgage		271,762			300,809
Other consumer		3,313			959

Total accruing troubled debt restructured loans	$	805,623		$	776,624

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	19,110		$	8,643
Commercial real estate		27,980			22,695
Automobile		4,817			5,972
Home equity		25,149			11,434
Residential mortgage		72,729			77,525
Other consumer		74			—

Total nonaccruing troubled debt restructured loans	$	149,859		$	126,269

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - QUARTERLY FINANCIAL SUPPLEMENT - October 17, 2014

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports