HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99..2 - EXHIBIT 99..2

Attached files

file	filename
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20150930_8k.htm
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	hban20150930_8kex991.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

September 30, 2015

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 Capital Under Current Regulatory Standards (Basel III) and Other Capital Data	16

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data	17

Consolidated Year to Date Average Balance Sheets	18

Consolidated Year to Date Net Interest Margin - Interest Income / Expense	19

Consolidated Year to Date Net Interest Margin - Yield	20

Selected Year to Date Income Statement Data	21

Year to Date Mortgage Banking Income	22

Year to Date Credit Reserves Analysis	23

Year to Date Net Charge-Off Analysis	24

Year to Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	25

Year to Date Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans	26

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 definitions (through 4Q 2014), and


•	Tangible common equity to risk-weighted assets using Basel I definition (through 4Q 2014) and Basel III definition (beginning 1Q 2015).

These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.

Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure.

Huntington Bancshares Incorporated

Quarterly Key Statistics(1)

(Unaudited)



	2015			2015			2014			Percent Changes vs.
(dollar amounts in thousands, except as noted)	Third			Second			Third			2Q15		3Q14
Net interest income (3)	$	503,623		$	498,648		$	473,841		1	%	6	%
FTE adjustment	(8,168		)	(7,962		)	(7,506		)	3		9
Net interest income	495,455			490,686			466,335			1		6
Provision for credit losses	22,476			20,419			24,480			10		(8	)
Noninterest income	253,119			281,773			247,349			(10	)	2
Noninterest expense	526,508			491,777			480,318			7		10
Income before income taxes	199,590			260,263			208,886			(23	)	(4	)
Provision for income taxes	47,002			64,057			53,870			(27	)	(13	)
Net income	152,588			196,206			155,016			(22	)	(2	)
Dividends on preferred shares	7,968			7,968			7,964			—		—
Net income applicable to common shares	$	144,620		$	188,238		$	147,052		(23	)%	(2	)%

Net income per common share - diluted	$	0.18		$	0.23		$	0.18		(22	)%	—	%
Cash dividends declared per common share	0.06			0.06			0.05			—		20
Tangible book value per common share at end of period	6.88			6.71			6.53			3		5

Number of common shares repurchased	6,764			8,834			5,438			(23	)	24
Average common shares - basic	800,883			806,891			816,497			(1	)	(2	)
Average common shares - diluted	814,326			820,238			829,623			(1	)	(2	)
Ending common shares outstanding	796,659			803,066			814,454			(1	)	(2	)

Return on average assets	0.87		%	1.16		%	0.97		%
Return on average common shareholders’ equity	9.3			12.3			9.9
Return on average tangible common shareholders’ equity(2)	10.7			14.4			11.4
Net interest margin(3)	3.16			3.20			3.20
Efficiency ratio(4)	69.1			61.7			65.3
Effective tax rate	23.5			24.6			25.8

Average total assets (millions)	$	69,304		$	67,883		$	63,473		2		9
Average earning assets (millions)	63,323			62,569			58,707			1		8
Average loans and leases (millions)	49,046			47,899			46,113			2		6
Average loans and leases - linked quarter annualized growth rate	9.6		%	1.0		%	9.7		%
Average total deposits (millions)	$	54,379		$	52,639		$	48,978		3		11
Average core deposits(5) (millions)	50,891			49,192			46,119			3		10
Average core deposits - linked quarter annualized growth rate	13.8		%	3.4		%	4.5		%
Average shareholders’ equity (millions)	$	6,573		$	6,517		$	6,292		1		4
Average tangible common shareholders' equity (millions)	5,469			5,409			5,350			1		2

Total assets at end of period (millions)	70,210			68,846			64,331			2		9
Total shareholders’ equity at end of period (millions)	6,583			6,496			6,284			1		5

NCOs as a % of average loans and leases	0.13		%	0.21		%	0.26		%
NAL ratio	0.72			0.75			0.70
NPA ratio(6)	0.77			0.81			0.78
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.19			1.23			1.35
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period	1.32			1.34			1.47
ACL as a % of NALs	184			180			211
ACL as a % of NPAs	172			165			188

Common equity tier 1 risk-based capital ratio	9.72			9.65			N.A.
Tier 1 common risk-based capital ratio(7)(9)	N.A.			N.A.			10.31
Tangible common equity / tangible asset ratio(8)	7.89			7.91			8.35

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 as noted)	2015			2014			Amount			Percent
Net interest income(3)	$	1,477,516		$	1,383,917		$	93,599		7	%
FTE adjustment	(23,690		)	(20,028		)	(3,662		)	18
Net interest income	1,453,826			1,363,889			89,937			7
Provision for credit losses	63,486			78,495			(15,009		)	(19	)
Noninterest income	766,515			745,901			20,614			3
Noninterest expense	1,477,142			1,399,075			78,067			6
Income before income taxes	679,713			632,220			47,493			8
Provision for income taxes	165,065			163,442			1,623			1
Net Income	514,648			468,778			45,870			10
Dividends on preferred shares	23,901			23,891			10			—
Net income applicable to common shares	$	490,747		$	444,887		$	45,860		10	%

Net income per common share - diluted	$	0.60		$	0.53		$	0.07		13	%
Cash dividends declared per common share	0.18			0.15			0.03			20

Average common shares - basic	805,851			820,884			(15,033		)	(2	)
Average common shares - diluted	819,458			833,927			(14,469		)	(2	)

Return on average assets	1.01		%	1.02		%
Return on average common shareholders’ equity	10.7			10.2
Return on average tangible common shareholders’ equity(2)	12.4			11.7
Net interest margin(3)	3.17			3.25
Efficiency ratio(4)	64.8			64.7
Effective tax rate	24.3			25.9

Average total assets (millions)	$	67,823		$	61,680		6,143			10
Average earning assets (millions)	62,369			56,929			5,440			10
Average loans and leases (millions)	48,245			44,863			3,382			8
Average total deposits (millions)	53,057			48,280			4,777			10
Average core deposits(5) (millions)	49,627			45,645			3,982			9
Average shareholders’ equity (millions)	6,502			6,235			267			4
Average tangible common shareholders' equity (millions)	5,446			5,308			138			3

NCOs as a % of average loans and leases	0.18		%	0.30		%
NAL ratio	0.72			0.70
NPA ratio(6)	0.77			0.78

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, 2015, 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.


(9)	On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule. Ratios prior to January 1, 2015 were not retrospectively updated and are presented on a Basel 1 basis.


(N.A.)	Not applicable. See footnote 9 above.

Huntington Bancshares Incorporated

Consolidated Balance Sheets



	2015			2014			Percent Changes vs.
(dollar amounts in thousands, except number of shares)	September 30,			December 31,			4Q14
	(Unaudited)
Assets
Cash and due from banks	$	1,024,358		$	1,220,565		(16	)%
Interest-bearing deposits in banks	65,805			64,559			2
Trading account securities	38,609			42,191			(8	)
Loans held for sale	675,636			416,327			62
Available-for-sale and other securities	11,094,868			9,384,670			18
Held-to-maturity securities	3,157,688			3,379,905			(7	)
Loans and leases(1)	49,655,909			47,655,726			4
Allowance for loan and lease losses	(591,938		)	(605,196		)	(2	)
Net loans and leases	49,063,971			47,050,530			4
Bank owned life insurance	1,748,328			1,718,436			2
Premises and equipment	620,515			616,407			1
Goodwill	676,869			522,541			30
Other intangible assets	58,793			74,671			(21	)
Accrued income and other assets	1,984,738			1,807,208			10
Total assets	$	70,210,178		$	66,298,010		6	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	54,244,711		$	51,732,151		5	%
Short-term borrowings	1,453,812			2,397,101			(39	)
Long-term debt	6,359,445			4,335,962			47
Accrued expenses and other liabilities	1,569,573			1,504,626			4
Total liabilities	63,627,541			59,969,840			6

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			—
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			—
Common stock - Par value of $0.01	7,987			8,131			(2	)
Capital surplus	7,053,902			7,221,745			(2	)
Less treasury shares, at cost	(17,464		)	(13,382		)	31
Accumulated other comprehensive loss	(139,739		)	(222,292		)	(37	)
Retained (deficit) earnings	(708,341		)	(1,052,324		)	(33	)
Total shareholders’ equity	6,582,637			6,328,170			4
Total liabilities and shareholders’ equity	$	70,210,178		$	66,298,010		6	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	798,663,649			813,136,321
Common shares outstanding	796,659,440			811,454,676
Treasury shares outstanding	2,004,209			1,681,645
Preferred shares issued	1,967,071			1,967,071
Preferred shares outstanding	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)



	2015				2015				2015				2014				2014
(dollar amounts in millions)	September 30,				June 30,				March 31,				December 31,				September 30,

Ending Balances by Type:
Commercial:
Commercial and industrial	$	20,040	40	%	$	20,003	41	%	$	20,109	42	%	$	19,033	40	%	$	18,791	40	%
Commercial real estate:
Construction	1,110		2		1,021		2		910		2		875		2		850		2
Commercial	4,294		9		4,192		9		4,157		9		4,322		9		4,141		9
Commercial real estate	5,404		11		5,213		11		5,067		11		5,197		11		4,991		11
Total commercial	25,444		51		25,216		52		25,176		53		24,230		51		23,782		51
Consumer:
Automobile	9,160		19		8,549		18		7,803		16		8,690		18		8,322		18
Home equity	8,461		17		8,526		17		8,492		18		8,491		18		8,436		18
Residential mortgage	6,071		12		5,987		12		5,795		12		5,831		12		5,788		12
Other consumer	520		1		474		1		430		1		414		1		395		1
Total consumer	24,212		49		23,536		48		22,520		47		23,426		49		22,941		49
Total loans and leases	$	49,656	100	%	$	48,752	100	%	$	47,696	100	%	$	47,656	100	%	$	46,723	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	13,648	28	%	$	13,673	28	%	$	13,515	28	%	$	13,199	28	%	$	13,136	28	%
Commercial Banking	13,144		26		12,980		27		13,066		28		12,362		26		11,919		26
AFCRE	16,411		33		15,609		32		14,812		31		15,640		33		15,229		33
RBHPCG	2,992		6		2,968		6		2,896		6		2,963		6		2,938		6
Home Lending	3,437		7		3,405		7		3,336		7		3,391		7		3,372		7
Treasury / Other	24		—		117		—		71		—		101		—		129		—
Total loans and leases	$	49,656	100	%	$	48,752	100	%	$	47,696	100	%	$	47,656	100	%	$	46,723	100	%



	2015				2015				2015				2014				2014
	Third				Second				First				Fourth				Third
Average Balances by Business Segment:
Retail and Business Banking	$	13,704	28	%	$	13,646	29	%	$	13,523	28	%	$	13,168	28	%	$	13,100	28	%
Commercial Banking	12,937		26		12,808		27		12,140		26		12,389		27		11,702		25
AFCRE	15,895		33		15,071		31		15,779		33		15,160		32		14,926		32
RBHPCG	2,979		6		2,930		6		2,890		6		2,949		6		2,901		7
Home Lending	3,438		7		3,339		7		3,360		7		3,327		7		3,377		8
Treasury / Other	93		—		105		—		88		—		99		—		107		—
Total loans and leases	$	49,046	100	%	$	47,899	100	%	$	47,780	100	%	$	47,092	100	%	$	46,113	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	2015				2015				2015				2014				2014
(dollar amounts in millions)	September 30,				June 30,				March 31,				December 31,				September 30,

Ending Balances by Type:
Demand deposits - noninterest-bearing	$	16,935	31	%	$	17,011	32	%	$	15,960	30	%	$	15,393	30	%	$	14,754	29	%
Demand deposits - interest-bearing	6,574		12		6,627		12		6,537		13		6,248		12		6,052		12
Money market deposits	19,494		36		18,580		35		18,933		36		18,986		37		18,174		36
Savings and other domestic deposits	5,189		10		5,240		10		5,288		10		5,048		10		5,038		10
Core certificates of deposit	2,483		5		2,580		5		2,709		5		2,936		5		3,150		6
Total core deposits	50,675		94		50,038		94		49,427		94		48,611		94		47,168		93
Other domestic deposits of $250,000 or more	263		—		178		—		189		—		198		—		202		1
Brokered deposits and negotiable CDs	2,904		5		2,705		5		2,682		5		2,522		5		2,357		5
Deposits in foreign offices	403		1		552		1		535		1		401		1		402		1
Total deposits	$	54,245	100	%	$	53,473	100	%	$	52,833	100	%	$	51,732	100	%	$	50,129	100	%
Total core deposits:
Commercial	$	24,886	49	%	$	24,103	48	%	$	23,061	47	%	$	22,725	47	%	$	21,753	46	%
Consumer	25,789		51		25,935		52		26,366		53		25,886		53		25,415		54
Total core deposits	$	50,675	100	%	$	50,038	100	%	$	49,427	100	%	$	48,611	100	%	$	47,168	100	%

Ending Balances by Business Segment:
Retail and Business Banking	$	29,979	55	%	$	29,983	56	%	$	30,150	57	%	$	29,350	57	%	$	29,265	58	%
Commercial Banking	11,826		22		10,908		20		11,195		21		11,185		21		10,791		22
AFCRE	1,522		3		1,519		3		1,443		3		1,378		3		1,362		3
RBHPCG	7,377		14		7,265		14		6,707		13		6,728		13		5,898		11
Home Lending	305		—		340		1		350		—		327		1		269		1
Treasury / Other(1)	3,236		6		3,458		6		2,988		6		2,764		5		2,544		5
Total deposits	$	54,245	100	%	$	53,473	100	%	$	52,833	100	%	$	51,732	100	%	$	50,129	100	%



	2015				2015				2015				2014				2014
	Third				Second				First				Fourth				Third
Average Balances by Business Segment:
Retail and Business Banking	$	30,152	55	%	$	30,126	57	%	$	29,727	57	%	$	29,481	58	%	$	28,865	59	%
Commercial Banking	11,567		21		10,848		20		11,140		21		10,632		21		10,248		21
AFCRE	1,494		3		1,487		3		1,375		3		1,315		3		1,285		2
RBHPCG	7,692		14		6,780		13		6,736		13		6,389		12		5,958		12
Home Lending	342		1		388		1		321		1		323		1		294		1
Treasury / Other(1)	3,132		6		3,010		6		2,830		5		2,612		5		2,328		5
Total deposits	$	54,379	100	%	$	52,639	100	%	$	52,129	100	%	$	50,752	100	%	$	48,978	100	%


(1)	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)



	Average Balances
	2015			2015			2015			2014			2014			Percent Changes vs.
(dollar amounts in millions)	Third			Second			First			Fourth			Third			2Q15		3Q14
Assets
Interest-bearing deposits in banks	$	89		$	89		$	94		$	85		$	82		—	%	9	%
Loans held for sale	464			1,272			381			374			351			(64	)	32
Securities:
Available-for-sale and other securities:
Taxable	8,310			7,916			7,664			7,291			6,935			5		20
Tax-exempt	2,136			2,028			1,874			1,684			1,620			5		32
Total available-for-sale and other securities	10,446			9,944			9,538			8,975			8,555			5		22
Trading account securities	52			41			53			49			50			27		4
Held-to-maturity securities - taxable	3,226			3,324			3,347			3,435			3,556			(3	)	(9	)
Total securities	13,724			13,309			12,938			12,459			12,161			3		13
Loans and leases:(1)
Commercial:
Commercial and industrial	19,802			19,819			19,116			18,880			18,581			—		7
Commercial real estate:
Construction	1,101			970			887			822			775			14		42
Commercial	4,193			4,214			4,275			4,262			4,188			—		—
Commercial real estate	5,294			5,184			5,162			5,084			4,963			2		7
Total commercial	25,096			25,003			24,278			23,964			23,544			—		7
Consumer:
Automobile	8,879			8,083			8,783			8,512			8,012			10		11
Home equity	8,526			8,503			8,484			8,452			8,412			—		1
Residential mortgage	6,048			5,859			5,810			5,751			5,747			3		5
Other consumer	497			451			425			413			398			10		25
Total consumer	23,950			22,896			23,502			23,128			22,569			5		6
Total loans and leases	49,046			47,899			47,780			47,092			46,113			2		6
Allowance for loan and lease losses	(609		)	(608		)	(612		)	(631		)	(633		)	—		(4	)
Net loans and leases	48,437			47,291			47,168			46,461			45,480			2		7
Total earning assets	63,323			62,569			61,193			60,010			58,707			1		8
Cash and due from banks	1,555			926			935			929			887			68		75
Intangible assets	739			745			593			602			583			(1	)	27
All other assets	4,296			4,251			4,142			4,022			3,929			1		9
Total assets	$	69,304		$	67,883		$	66,251		$	64,932		$	63,473		2	%	9	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	17,017		$	15,893		$	15,253		$	15,179		$	14,090		7	%	21	%
Demand deposits - interest-bearing	6,604			6,584			6,173			5,948			5,913			—		12
Total demand deposits	23,621			22,477			21,426			21,127			20,003			5		18
Money market deposits	19,512			18,803			19,368			18,401			17,929			4		9
Savings and other domestic deposits	5,224			5,273			5,169			5,052			5,020			(1	)	4
Core certificates of deposit	2,534			2,639			2,814			3,058			3,167			(4	)	(20	)
Total core deposits	50,891			49,192			48,777			47,638			46,119			3		10
Other domestic deposits of $250,000 or more	217			184			195			201			223			18		(3	)
Brokered deposits and negotiable CDs	2,779			2,701			2,600			2,434			2,262			3		23
Deposits in foreign offices	492			562			557			479			374			(12	)	32
Total deposits	54,379			52,639			52,129			50,752			48,978			3		11
Short-term borrowings	844			2,153			1,882			2,683			3,193			(61	)	(74	)
Long-term debt	6,066			5,139			4,374			3,956			3,967			18		53
Total interest-bearing liabilities	44,272			44,038			43,132			42,212			42,048			1		5
All other liabilities	1,442			1,435			1,450			1,167			1,043			—		38
Shareholders’ equity	6,573			6,517			6,416			6,374			6,292			1		4
Total liabilities and shareholders’ equity	$	69,304		$	67,883		$	66,251		$	64,932		$	63,473		2	%	9	%

(1)Includes nonaccrual loans

Huntington Bancshares Incorporated

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

(Unaudited)



	Interest Income / Expense
	2015		2015		2015		2014		2014
(dollar amounts in thousands)	Third		Second		First		Fourth		Third
Assets
Interest-bearing deposits in banks	$	13	$	19	$	41	$	50	$	39
Loans held for sale	4,422		10,546		3,520		3,566		3,487
Securities:
Available-for-sale and other securities:
Taxable	52,141		51,525		47,856		47,531		43,066
Tax-exempt	16,671		15,875		14,288		13,718		12,245
Total available-for-sale and other securities	68,812		67,400		62,144		61,249		55,311
Trading account securities	128		104		155		128		107
Held-to-maturity securities - taxable	19,812		20,741		20,667		21,013		21,777
Total securities	88,752		88,245		82,966		82,390		77,195
Loans and leases:
Commercial:
Commercial and industrial	180,997		180,992		158,917		161,530		163,765
Commercial real estate:
Construction	9,917		8,825		8,462		9,034		8,673
Commercial	36,785		36,329		38,197		37,789		38,542
Commercial real estate	46,702		45,154		46,659		46,823		47,215
Total commercial	227,699		226,146		205,576		208,353		210,980
Consumer:
Automobile	72,341		64,575		70,140		71,449		68,786
Home equity	86,254		84,215		84,382		86,176		86,372
Residential mortgage	56,048		54,496		54,432		55,186		54,352
Other consumer	11,116		9,515		8,599		7,977		7,355
Total consumer	225,759		212,801		217,553		220,788		216,865
Total loans and leases	453,458		438,947		423,129		429,141		427,845
Total earning assets	$	546,645	$	537,757	$	509,656	$	515,147	$	508,566

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	1,211		984		693		588		601
Total demand deposits	1,211		984		693		588		601
Money market deposits	11,200		10,435		10,226		10,261		10,407
Savings and other domestic deposits	1,840		1,775		1,914		2,091		2,050
Core certificates of deposit	5,135		5,161		5,282		5,764		5,909
Total core deposits	19,386		18,355		18,115		18,704		18,967
Other domestic deposits of $250,000 or more	237		204		204		220		246
Brokered deposits and negotiable CDs	1,178		1,121		1,069		1,128		1,126
Deposits in foreign offices	163		185		179		156		121
Total deposits	20,964		19,865		19,567		20,208		20,460
Short-term borrowings	192		731		542		820		878
Long-term debt	21,866		18,513		14,302		13,345		13,387
Total interest bearing liabilities	43,022		39,109		34,411		34,373		34,725
Net interest income	$	503,623	$	498,648	$	475,245	$	480,774	$	473,841


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 10 for the FTE adjustment.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)



	Average Rates(2)
	2015		2015		2015		2014		2014
Fully-taxable equivalent basis(1)	Third		Second		First		Fourth		Third
Assets
Interest-bearing deposits in banks	0.06	%	0.08	%	0.18	%	0.23	%	0.19	%
Loans held for sale	3.81		3.32		3.69		3.82		3.98
Securities:
Available-for-sale and other securities:
Taxable	2.51		2.60		2.50		2.61		2.48
Tax-exempt	3.12		3.13		3.05		3.26		3.02
Total available-for-sale and other securities	2.63		2.71		2.61		2.73		2.59
Trading account securities	0.97		1.00		1.17		1.05		0.85
Held-to-maturity securities - taxable	2.46		2.50		2.47		2.45		2.45
Total securities	2.59		2.65		2.57		2.65		2.54
Loans and leases:(3)
Commercial:
Commercial and industrial	3.58		3.61		3.33		3.35		3.45
Commercial real estate:
Construction	3.52		3.60		3.81		4.30		4.38
Commercial	3.43		3.41		3.57		3.47		3.60
Commercial real estate	3.45		3.45		3.62		3.60		3.72
Total commercial	3.55		3.58		3.39		3.40		3.51
Consumer:
Automobile	3.23		3.20		3.24		3.33		3.41
Home equity	4.01		3.97		4.03		4.05		4.07
Residential mortgage	3.71		3.72		3.75		3.84		3.78
Other consumer	8.88		8.45		8.20		7.68		7.31
Total consumer	3.75		3.73		3.74		3.80		3.82
Total loans and leases	3.65		3.65		3.56		3.60		3.66
Total earning assets	3.42		3.45		3.38		3.41		3.44
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.07		0.06		0.05		0.04		0.04
Total demand deposits	0.02		0.02		0.01		0.01		0.01
Money market deposits	0.23		0.22		0.21		0.22		0.23
Savings and other domestic deposits	0.14		0.14		0.15		0.16		0.16
Core certificates of deposit	0.80		0.78		0.76		0.75		0.74
Total core deposits	0.23		0.22		0.22		0.23		0.23
Other domestic deposits of $250,000 or more	0.43		0.44		0.42		0.43		0.44
Brokered deposits and negotiable CDs	0.17		0.17		0.17		0.18		0.20
Deposits in foreign offices	0.13		0.13		0.13		0.13		0.13
Total deposits	0.22		0.22		0.22		0.23		0.23
Short-term borrowings	0.09		0.14		0.12		0.12		0.11
Long-term debt	1.44		1.44		1.31		1.35		1.35
Total interest-bearing liabilities	0.39		0.36		0.32		0.32		0.33
Net interest rate spread	3.03		3.09		3.06		3.09		3.11
Impact of noninterest-bearing funds on margin	0.13		0.11		0.09		0.09		0.09
Net interest margin	3.16	%	3.20	%	3.15	%	3.18	%	3.20	%

Commercial Loan Derivative Impact

(Unaudited)



	Average Rates (2)
	2015		2015		2015		2014		2014
Fully-taxable equivalent basis(1)	Third		Second		First		Fourth		Third
Commercial loans(2)(3)	3.36	%	3.38	%	3.18	%	3.20	%	3.30	%
Impact of commercial loan derivatives	0.19		0.20		0.21		0.20		0.21
Total commercial - as reported	3.55	%	3.58	%	3.39	%	3.40	%	3.51	%

Average 30 day LIBOR	0.20	%	0.18	%	0.17	%	0.16	%	0.15	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 10 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)



	2015		2015		2015		2014			2014
(dollar amounts in thousands, except per share amounts)	Third		Second		First		Fourth			Third
Interest income	$	538,477	$	529,795	$	502,096	$	507,625		$	501,060
Interest expense	43,022		39,109		34,411		34,373			34,725
Net interest income	495,455		490,686		467,685		473,252			466,335
Provision for credit losses	22,476		20,419		20,591		2,494			24,480
Net interest income after provision for credit losses	472,979		470,267		447,094		470,758			441,855
Service charges on deposit accounts	75,157		70,118		62,220		67,408			69,118
Trust services	24,972		26,550		29,039		28,781			28,045
Electronic banking	30,832		30,259		27,398		27,993			27,275
Mortgage banking income	18,956		38,518		22,961		14,030			25,051
Brokerage income	15,059		15,184		15,500		16,050			17,155
Insurance income	16,204		17,637		15,895		16,252			16,729
Bank owned life insurance income	12,719		13,215		13,025		14,988			14,888
Capital markets fees	12,741		13,192		13,905		13,791			10,246
Gain on sale of loans	5,873		12,453		4,589		5,408			8,199
Securities gains (losses)	188		82		—		(104		)	198
Other income	40,418		44,565		27,091		28,681			30,445
Total noninterest income	253,119		281,773		231,623		233,278			247,349
Personnel costs	286,270		282,135		264,916		263,289			275,409
Outside data processing and other services	58,535		58,508		50,535		53,685			53,073
Net occupancy	29,061		28,861		31,020		31,565			34,405
Equipment	31,303		31,694		30,249		31,981			30,183
Professional services	11,961		12,593		12,727		15,665			13,763
Marketing	12,179		15,024		12,975		12,466			12,576
Deposit and other insurance expense	11,550		11,787		10,167		13,099			11,628
Amortization of intangibles	3,913		9,960		10,206		10,653			9,813
Other expense	81,736		41,215		36,062		50,868			39,468
Total noninterest expense	526,508		491,777		458,857		483,271			480,318
Income before income taxes	199,590		260,263		219,860		220,765			208,886
Provision for income taxes	47,002		64,057		54,006		57,151			53,870
Net income	$	152,588	$	196,206	$	165,854	$	163,614		$	155,016
Dividends on preferred shares	7,968		7,968		7,965		7,963			7,964
Net income applicable to common shares	$	144,620	$	188,238	$	157,889	$	155,651		$	147,052

Average common shares - basic	800,883		806,891		809,778		811,967			816,497
Average common shares - diluted	814,326		820,238		823,809		825,338			829,623

Per common share
Net income - basic	0.18		0.23		0.19		0.19			0.18
Net income - diluted	0.18		0.23		0.19		0.19			0.18
Cash dividends declared	0.06		0.06		0.06		0.06			0.05

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	495,455	$	490,686	$	467,685	$	473,252		$	466,335
FTE adjustment	8,168		7,962		7,560		7,522			7,506
Net interest income(2)	503,623		498,648		475,245		480,774			473,841
Noninterest income	253,119		281,773		231,623		233,278			247,349
Total revenue(2)	$	756,742	$	780,421	$	706,868	$	714,052		$	721,190


(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)



	2015			2015			2015			2014			2014			Percent Changes vs.
(dollar amounts in thousands, except as noted)	Third			Second			First			Fourth			Third			2Q15		3Q14
Mortgage banking income
Origination and secondary marketing	$	20,005		$	26,350		$	20,032		$	12,940		$	15,546		(24	)%	29	%
Servicing fees	10,763			10,677			10,842			8,004			10,786			1		—
Amortization of capitalized servicing	(6,080		)	(6,965		)	(6,979		)	(6,050		)	(6,119		)	(13	)	(1	)
Other mortgage banking income	2,691			2,467			3,549			2,912			4,075			9		(34	)
Subtotal	27,379			32,529			27,444			17,806			24,288			(16	)	13
MSR valuation adjustment(1)	(14,113		)	14,525			(9,164		)	(7,080		)	989			N.R.		N.R.
Net trading gains (losses) related to MSR hedging	5,690			(8,536		)	4,681			3,304			(226		)	N.R.		N.R.
Total mortgage banking income	$	18,956		$	38,518		$	22,961		$	14,030		$	25,051		(51	)%	(24	)%
Mortgage originations (in millions)	$	1,259		$	1,454		$	980		$	922		$	997		(13	)%	26	%
Capitalized mortgage servicing rights(2)	153,532			163,808			145,909			155,598			161,900			(6	)	(5	)
Total mortgages serviced for others (in millions)(2)	15,941			15,722			15,569			15,637			15,593			1		2
MSR % of investor servicing portfolio(2)	0.96		%	1.04		%	0.94		%	1.00		%	1.04		%	(8	)	(8	)
Net impact of MSR hedging
MSR valuation adjustment(1)	$	(14,113	)	$	14,525		$	(9,164	)	$	(7,080	)	$	989		N.R.		N.R.
Net trading gains (losses) related to MSR hedging	5,690			(8,536		)	4,681			3,304			(226		)	N.R.		N.R.
Net gain (loss) of MSR hedging	$	(8,423	)	$	5,989		$	(4,483	)	$	(3,776	)	$	763		N.R.		N.R.


N.R.	Not relevant


(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)



	2015			2015			2015			2014			2014
(dollar amounts in thousands)	Third			Second			First			Fourth			Third
Allowance for loan and lease losses, beginning of period	$	599,542		$	605,126		$	605,196		$	631,036		$	635,101
Loan and lease losses	(60,875		)	(46,970		)	(55,075		)	(56,252		)	(58,511		)
Recoveries of loans previously charged off	44,712			21,595			30,643			33,277			28,488
Net loan and lease losses	(16,163		)	(25,375		)	(24,432		)	(22,975		)	(30,023		)
Provision for loan and lease losses	13,624			19,790			26,655			(2,863		)	25,958
Allowance of assets sold or transferred to loans held for sale	(5,065		)	1			(2,293		)	(2		)	—
Allowance for loan and lease losses, end of period	591,938			599,542			605,126			605,196			631,036
Allowance for unfunded loan commitments and letters of credit, beginning of period	55,371			54,742			60,806			55,449			56,927
Provision for (reduction in) unfunded loan commitments and letters of credit losses	8,852			629			(6,064		)	5,357			(1,478		)
Allowance for unfunded loan commitments and letters of credit, end of period	64,223			55,371			54,742			60,806			55,449
Total allowance for credit losses, end of period	$	656,161		$	654,913		$	659,868		$	666,002		$	686,485
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.19		%	1.23		%	1.27		%	1.27		%	1.35		%
Nonaccrual loans and leases (NALs)	166			165			166			202			194
Nonperforming assets (NPAs)	155			151			151			179			173
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.32		%	1.34		%	1.38		%	1.40		%	1.47		%
Nonaccrual loans and leases	184			180			181			222			211
Nonperforming assets	172			165			165			197			188

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	2015			2015			2015			2014			2014
(dollar amounts in thousands)	Third			Second			First			Fourth			Third
Net charge-offs (recoveries) by loan and lease type:
Commercial:
Commercial and industrial	$	9,858		$	4,411		$	11,403		$	333		$	12,587
Commercial real estate:
Construction	(309		)	164			(383		)	(1,747		)	2,171
Commercial	(13,512		)	5,361			(3,629		)	1,565			(8,178		)
Commercial real estate	(13,821		)	5,525			(4,012		)	(182		)	(6,007		)
Total commercial	(3,963		)	9,936			7,391			151			6,580
Consumer:
Automobile	4,908			3,442			4,248			6,024			3,976
Home equity	5,869			4,650			4,625			6,321			6,448
Residential mortgage	2,010			2,142			2,816			3,059			5,428
Other consumer	7,339			5,205			5,352			7,420			7,591
Total consumer	20,126			15,439			17,041			22,824			23,443
Total net charge-offs	$	16,163		$	25,375		$	24,432		$	22,975		$	30,023

Net charge-offs (recoveries)—annualized percentages:
Commercial:
Commercial and industrial	0.20		%	0.09		%	0.24		%	0.01		%	0.27		%
Commercial real estate:
Construction	(0.11		)	0.07			(0.17		)	(0.85		)	1.12
Commercial	(1.29		)	0.51			(0.34		)	0.15			(0.78		)
Commercial real estate	(1.04		)	0.43			(0.31		)	(0.01		)	(0.48		)
Total commercial	(0.06		)	0.16			0.12			—			0.11
Consumer:
Automobile	0.22			0.17			0.19			0.28			0.20
Home equity	0.28			0.22			0.22			0.30			0.31
Residential mortgage	0.13			0.15			0.19			0.21			0.38
Other consumer	5.91			4.61			5.03			7.20			7.61
Total consumer	0.34			0.27			0.29			0.39			0.42
Net charge-offs as a % of average loans	0.13		%	0.21		%	0.20		%	0.20		%	0.26		%

Huntington Bancshares Incorporated

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

(Unaudited)



	2015			2015			2015			2014			2014
(dollar amounts in thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
Nonaccrual loans and leases (NALs): (1)
Commercial and industrial	$	157,902		$	149,713		$	133,363		$	71,974		$	90,265
Commercial real estate	27,516			43,888			49,263			48,523			59,812
Automobile	5,551			4,190			4,448			4,623			4,834
Residential mortgage	98,908			91,198			98,093			96,564			98,139
Home equity	66,446			75,282			79,169			78,515			72,715
Other consumer	154			68			77			45			—
Total nonaccrual loans and leases	356,477			364,339			364,413			300,244			325,765
Other real estate, net:
Residential	21,637			25,660			30,544			29,291			30,661
Commercial	3,273			3,572			3,407			5,748			5,609
Total other real estate, net	24,910			29,232			33,951			35,039			36,270
Other NPAs (2)	—			2,440			2,440			2,440			2,440
Total nonperforming assets	$	381,387		$	396,011		$	400,804		$	337,723		$	364,475

Nonaccrual loans and leases as a % of total loans and leases	0.72		%	0.75		%	0.76		%	0.63		%	0.70		%
NPA ratio(3)	0.77			0.81			0.84			0.71			0.78
(NPA+90days)/(Loan+OREO)(4)	0.98			1.03			1.08			0.98			1.08



	2015			2015			2015			2014			2014
	September 30,			June 30,			March 31,			December 31,			September 30,
Nonperforming assets, beginning of period	$	396,011		$	400,804		$	337,723		$	364,475		$	362,092
New nonperforming assets	139,604			125,105			162,862			87,022			102,834
Returns to accruing status	(13,641		)	(46,120		)	(17,968		)	(20,024		)	(24,884		)
Loan and lease losses	(45,667		)	(33,797		)	(41,574		)	(36,108		)	(36,387		)
Payments	(78,516		)	(38,396		)	(30,578		)	(48,645		)	(29,121		)
Sales and transfers to held-for-sale	(16,404		)	(11,585		)	(9,661		)	(8,997		)	(10,059		)
Nonperforming assets, end of period	$	381,387		$	396,011		$	400,804		$	337,723		$	364,475


(1)	Excludes loans transferred to held-for-sale.


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


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


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

Huntington Bancshares Incorporated

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

(Unaudited)



	2015			2015			2015			2014			2014
(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	$	6,571		$	6,621		$	5,935		$	4,937		$	7,458
Commercial real estate	12,178			10,920			16,351			18,793			26,285
Automobile	6,873			4,269			4,746			5,703			4,827
Residential mortgage (excluding loans guaranteed by the U.S. Government)	17,492			21,869			21,034			33,040			33,331
Home equity	10,764			11,713			11,132			12,159			14,809
Other consumer	1,087			846			727			837			638
Total, excl. loans guaranteed by the U.S. Government	54,965			56,238			59,925			75,469			87,348
Add: loans guaranteed by U.S. Government	50,643			50,640			53,010			55,012			54,778
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	105,608		$	106,878		$	112,935		$	130,481		$	142,126

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.11		%	0.12		%	0.13		%	0.16		%	0.19		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.10			0.10			0.11			0.12			0.11
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.21			0.22			0.24			0.27			0.30

Accruing troubled debt restructured loans:
Commercial and industrial	$	241,327		$	233,346		$	162,207		$	116,331		$	89,783
Commercial real estate	103,767			158,056			161,515			177,156			186,542
Automobile	24,537			24,774			25,876			26,060			31,480
Home equity	(1)	192,356		279,864			265,207			252,084			229,500
Residential mortgage	277,154			266,986			268,441			265,084			271,762
Other consumer	4,569			4,722			4,879			4,018			3,313
Total accruing troubled debt restructured loans	$	843,710		$	967,748		$	888,125		$	840,733		$	812,380

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	54,933		$	46,303		$	21,246		$	20,580		$	19,110
Commercial real estate	12,806			19,490			28,676			24,964			28,618
Automobile	5,400			4,030			4,283			4,552			4,817
Home equity	(2)	19,188		26,568			26,379			27,224			25,149
Residential mortgage	68,577			65,415			69,799			69,305			72,729
Other consumer	152			160			165			70			74
Total nonaccruing troubled debt restructured loans	$	161,056		$	161,966		$	150,548		$	146,695		$	150,497


(1)	Excludes approximately $87.9 million in home equity TDRs transferred to held-for-sale.


(2)	Excludes approximately $8.9 million in home equity TDRs transferred to held-for-sale.

Huntington Bancshares Incorporated

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data

(Unaudited)



	2015			2015			2015
(dollar amounts in millions except per share amounts)	September 30,			June 30,			March 31,
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	6,583		$	6,496		$	6,462
Regulatory capital adjustments:
Shareholders’ preferred equity	(386		)	(386		)	(386		)
Accumulated other comprehensive income offset	140			186			161
Goodwill and other intangibles, net of related taxes	(697		)	(701		)	(700		)
Deferred tax assets that arise from tax loss and credit carryforwards	(15		)	(15		)	(36		)
Common equity tier 1 capital	5,625			5,580			5,501
Additional tier 1 capital
Shareholders’ preferred equity	386			386			386
Qualifying capital instruments subject to phase-out	76			76			76
Other	(22		)	(22		)	(53		)
Tier 1 capital	6,065			6,020			5,910
Long-term debt and other tier 2 qualifying instruments	623			623			648
Qualifying allowance for loan and lease losses	656			655			660
Other	—			—			—
Tier 2 capital	1,279			1,278			1,308
Total risk-based capital	$	7,344		$	7,298		$	7,218
Risk-weighted assets (RWA)(1)	57,839			57,850			57,840
Common equity tier 1 risk-based capital ratio(1)	9.72		%	9.65		%	9.51		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	8.85		%	8.98		%	9.04		%
Tier 1 risk-based capital ratio(1)	10.49			10.41			10.22
Total risk-based capital ratio(1)	12.70			12.62			12.48
Tangible common equity / RWA ratio(1)	9.48			9.32			9.25


(1)	September 30, 2015, figures are estimated and are presented on a Basel III basis, including the standardized approach for calculating risk-weighted assets.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data

(Unaudited)

Quarterly common stock summary



	2015		2015		2015		2014		2014
	Third		Second		First		Fourth		Third
Common stock price, per share
High(1)	$	11.900	$	11.720	$	11.300	$	10.740	$	10.300
Low(1)	10.000		10.670		9.630		8.800		9.290
Close	10.600		11.310		11.050		10.520		9.730
Average closing price	11.157		11.192		10.559		9.972		9.790
Dividends, per share
Cash dividends declared per common share	$	0.06	$	0.06	$	0.06	$	0.06	$	0.05
Common shares outstanding
Average - basic	800,883		806,891		809,778		811,967		816,497
Average - diluted	814,326		820,238		823,809		825,338		829,623
Ending	796,659		803,066		808,528		811,455		814,454
Tangible book value per common share(2)	$	6.88	$	6.71	$	6.62	$	6.62	$	6.53
Common share repurchases
Number of shares repurchased	6,764		8,834		4,949		3,605		5,438

Non-regulatory capital



	2015			2015			2015			2014			2014
(dollar amounts in millions)	September 30,			June 30,			March 31,			December 31,			September 30,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	6,583		$	6,496		$	6,462		$	6,328		$	6,284
Less: goodwill	(677		)	(678		)	(678		)	(523		)	(523		)
Less: other intangible assets	(59		)	(63		)	(73		)	(75		)	(85		)
Add: related deferred tax liability(2)	21			22			25			26			30
Total tangible equity	5,868			5,777			5,736			5,756			5,706
Less: preferred equity	(386		)	(386		)	(386		)	(386		)	(386		)
Total tangible common equity	$	5,482		$	5,391		$	5,350		$	5,370		$	5,320
Total assets	$	70,210		$	68,846		$	68,003		$	66,298		$	64,331
Less: goodwill	(677		)	(678		)	(678		)	(523		)	(523		)
Less: other intangible assets	(59		)	(63		)	(73		)	(75		)	(85		)
Add: related deferred tax liability(2)	21			22			25			26			30
Total tangible assets	$	69,495		$	68,127		$	67,277		$	65,726		$	63,753
Tangible equity / tangible asset ratio	8.44		%	8.48		%	8.53		%	8.76		%	8.95		%
Tangible common equity / tangible asset ratio	7.89			7.91			7.95			8.17			8.35
Tier 1 leverage ratio(4)	N.A.			N.A.			N.A.			9.74			9.83
Tier 1 risk-based capital ratio(4)	N.A.			N.A.			N.A.			11.50			11.61
Total risk-based capital ratio(4)	N.A.			N.A.			N.A.			13.56			13.72
Tangible common equity / risk-weighted assets ratio(4)	N.A.			N.A.			N.A.			9.86			9.99
Other data:
Number of employees (Average full-time equivalent)	12,367			12,274			11,914			11,875			11,946
Number of domestic full-service branches(3)	756			735			733			729			753


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


(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)	Ratios are calculated on the Basel I basis.


N.A.	On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule. See page 16 for Basel III capital ratios.

Huntington Bancshares Incorporated

Consolidated Year to Date Average Balance Sheets

(Unaudited)



	YTD Average Balances
	Nine Months Ended September 30,						Change
(dollar amounts in millions)	2015			2014			Amount			Percent
Assets
Interest-bearing deposits in banks	$	90		$	85		$	5		6	%
Loans held for sale	706			306			400			131
Securities:
Available-for-sale and other securities:
Taxable	7,966			6,615			1,351			20
Tax-exempt	2,014			1,344			670			50
Total available-for-sale and other securities	9,980			7,959			2,021			25
Trading account securities	49			45			4			9
Held-to-maturity securities - taxable	3,299			3,671			(372		)	(10	)
Total securities	13,328			11,675			1,653			14
Loans and leases:(1)
Commercial:
Commercial and industrial	19,581			18,161			1,420			8
Commercial real estate:
Construction	987			697			290			42
Commercial	4,227			4,274			(47		)	(1	)
Commercial real estate	5,214			4,971			243			5
Total commercial	24,795			23,132			1,663			7
Consumer:
Automobile	8,582			7,387			1,195			16
Home equity	8,504			8,376			128			2
Residential mortgage	5,906			5,579			327			6
Other consumer	458			389			69			18
Total consumer	23,450			21,731			1,719			8
Total loans and leases	48,245			44,863			3,382			8
Allowance for loan and lease losses	(610		)	(641		)	31			(5	)
Net loans and leases	47,635			44,222			3,413			8
Total earning assets	62,369			56,929			5,440			10
Cash and due from banks	1,140			888			252			28
Intangible assets	693			570			123			22
All other assets	4,231			3,934			297			8
Total assets	$	67,823		$	61,680		$	6,143		10	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	16,061		$	13,586		$	2,475		18	%
Demand deposits - interest-bearing	6,455			5,878			577			10
Total demand deposits	22,516			19,464			3,052			16
Money market deposits	19,228			17,753			1,475			8
Savings and other domestic deposits	5,222			5,025			197			4
Core certificates of deposit	2,661			3,403			(742		)	(22	)
Total core deposits	49,627			45,645			3,982			9
Other domestic deposits of $250,000 or more	199			256			(57		)	(22	)
Brokered deposits and negotiable CDs	2,694			2,040			654			32
Deposits in foreign offices	537			339			198			58
Total deposits	53,057			48,280			4,777			10
Short-term borrowings	1,623			2,787			(1,164		)	(42	)
Long-term debt	5,199			3,340			1,859			56
Total interest-bearing liabilities	43,818			40,821			2,997			7
All other liabilities	1,442			1,038			404			39
Shareholders’ equity	6,502			6,235			267			4
Total liabilities and shareholders’ equity	$	67,823		$	61,680		$	6,143		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)	2015		2014
Assets
Interest-bearing deposits in banks	$	73	$	53
Loans held for sale	18,488		9,162
Securities:
Available-for-sale and other securities:
Taxable	151,522		123,549
Tax-exempt	46,834		30,844
Total available-for-sale and other securities	198,356		154,393
Trading account securities	387		293
Held-to-maturity securities - taxable	61,220		67,711
Total securities	259,963		222,397
Loans and leases:
Commercial:
Commercial and industrial	520,906		481,954
Commercial real estate:
Construction	27,204		22,380
Commercial	111,311		125,403
Commercial real estate	138,515		147,783
Total commercial	659,421		629,737
Consumer:
Automobile	207,056		191,482
Home equity	254,851		257,105
Residential mortgage	164,976		158,082
Other consumer	29,230		20,847
Total consumer	656,113		627,516
Total loans and leases	1,315,534		1,257,253
Total earning assets	1,594,058		1,488,865
Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—
Demand deposits - interest-bearing	2,888		1,684
Total demand deposits	2,888		1,684
Money market deposits	31,861		31,895
Savings and other domestic deposits	5,529		6,688
Core certificates of deposit	15,578		21,234
Total core deposits	55,856		61,501
Other domestic deposits of $250,000 or more	645		816
Brokered deposits and negotiable CDs	3,368		3,600
Deposits in foreign offices	527		327
Total deposits	60,396		66,244
Short-term borrowings	1,465		2,122
Long-term debt	54,681		36,582
Total interest-bearing liabilities	116,542		104,948
Net interest income	$	1,477,516	$	1,383,917


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 21 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)	2015		2014
Assets
Interest-bearing deposits in banks	0.11	%	0.08	%
Loans held for sale	3.49		3.99
Securities:
Available-for-sale and other securities:
Taxable	2.54		2.49
Tax-exempt	3.10		3.06
Total available-for-sale and other securities	2.65		2.59
Trading account securities	1.06		0.87
Held-to-maturity securities - taxable	2.47		2.46
Total securities	2.60		2.54
Loans and leases:(3)
Commercial:
Commercial and industrial	3.51		3.50
Commercial real estate:
Construction	3.64		4.24
Commercial	3.47		3.87
Commercial real estate	3.50		3.92
Total commercial	3.51		3.59
Consumer:
Automobile	3.23		3.47
Home equity	4.01		4.10
Residential mortgage	3.72		3.78
Other consumer	8.53		7.16
Total consumer	3.74		3.86
Total loans and leases	3.62		3.72
Total earning assets	3.42	%	3.50	%
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—	%	—	%
Demand deposits - interest-bearing	0.06		0.04
Total demand deposit	0.02		0.01
Money market deposits	0.22		0.24
Savings and other domestic deposits	0.14		0.18
Core certificates of deposit	0.78		0.83
Total core deposits	0.22		0.26
Other domestic deposits of $250,000 or more	0.43		0.43
Brokered deposits and negotiable CDs	0.17		0.24
Deposits in foreign offices	0.13		0.13
Total deposits	0.22		0.26
Short-term borrowings	0.12		0.10
Long-term debt	1.40		1.46
Total interest bearing liabilities	0.36		0.34
Net interest rate spread	3.06		3.15
Impact of noninterest-bearing funds on margin	0.11		0.10
Net interest margin	3.17	%	3.25	%

Commercial Loan Derivative Impact

(Unaudited)



	YTD Average Rates
	Nine Months Ended September 30,
Fully-taxable equivalent basis(1)	2015		2014
Commercial loans(2)(3)	3.31	%	3.36	%
Impact of commercial loan derivatives	0.20	%	0.23	%
Total commercial - as reported	3.51	%	3.59	%

Average 30 day LIBOR	0.20	%	0.15	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 21 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,				Change
(dollar amounts in thousands, except per share amounts)	2015		2014		Amount			Percent
Interest income	$	1,570,368	$	1,468,837	$	101,531		7	%
Interest expense	116,542		104,948		11,594			11
Net interest income	1,453,826		1,363,889		89,937			7
Provision for credit losses	63,486		78,495		(15,009		)	(19	)
Net interest income after provision for credit losses	1,390,340		1,285,394		104,946			8
Service charges on deposit accounts	207,495		206,333		1,162			1
Trust services	80,561		87,191		(6,630		)	(8	)
Electronic banking	88,489		77,408		11,081			14
Mortgage banking income	80,435		70,857		9,578			14
Brokerage income	45,743		52,227		(6,484		)	(12	)
Insurance income	49,736		49,221		515			1
Bank owned life insurance income	38,959		42,060		(3,101		)	(7	)
Capital markets fees	39,838		29,940		9,898			33
Gain on sale of loans	22,915		15,683		7,232			46
Securities gains (losses)	270		17,658		(17,388		)	(98	)
Other income	112,074		97,323		14,751			15
Total noninterest income	766,515		745,901		20,614			3
Personnel costs	833,321		785,486		47,835			6
Outside data processing and other services	167,578		158,901		8,677			5
Net occupancy	88,942		96,511		(7,569		)	(8	)
Equipment	93,246		87,682		5,564			6
Professional services	37,281		43,890		(6,609		)	(15	)
Marketing	40,178		38,094		2,084			5
Deposit and other insurance expense	33,504		35,945		(2,441		)	(7	)
Amortization of intangibles	24,079		28,624		(4,545		)	(16	)
Other expense	159,013		123,942		35,071			28
Total noninterest expense	1,477,142		1,399,075		78,067			6
Income before income taxes	679,713		632,220		47,493			8
Provision for income taxes	165,065		163,442		1,623			1
Net income	514,648		468,778		45,870			10
Dividends on preferred shares	23,901		23,891		10			—
Net income applicable to common shares	$	490,747	$	444,887	$	45,860		10	%
Average common shares - basic	805,851		820,884		(15,033		)	(2	)%
Average common shares - diluted	819,458		833,927		(14,469		)	(2	)
Per common share
Net income - basic	$	0.61	$	0.54	$	0.07		13
Net income - diluted	0.60		0.53		0.07			13
Cash dividends declared	0.18		0.15		0.03			20
Revenue - fully taxable equivalent (FTE)
Net interest income	$	1,453,826	$	1,363,889	$	89,937		7
FTE adjustment(2)	23,690		20,028		3,662			18
Net interest income	1,477,516		1,383,917		93,599			7
Noninterest income	766,515		745,901		20,614			3
Total revenue	$	2,244,031	$	2,129,818	$	114,213		5	%


(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)	2015			2014			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	66,387		$	44,332		$	22,055		50	%
Servicing fees	32,282			32,598			(316		)	(1	)
Amortization of capitalized servicing	(20,024		)	(18,052		)	(1,972		)	(11	)
Other mortgage banking income	8,707			11,822			(3,115		)	(26	)
Subtotal	87,352			70,700			16,652			24
MSR valuation adjustment(1)	(8,752		)	(3,654		)	(5,098		)	(140	)
Net trading gains (losses) related to MSR hedging	1,835			3,811			(1,976		)	(52	)
Total mortgage banking income	$	80,435		$	70,857		$	9,578		14	%

Mortgage originations (in millions)	$	3,693		$	2,636		$	1,057		40	%
Capitalized mortgage servicing rights(2)	153,532			161,900			(8,368		)	(5	)
Total mortgages serviced for others (in millions)(2)	15,941			15,593			348			2
MSR % of investor servicing portfolio	0.96		%	1.04		%	0.01		%	(8	)

Net impact of MSR hedging
MSR valuation adjustment(1)	$	(8,752	)	$	(3,654	)	$	(5,098	)	(140	)
Net trading gains (losses) related to MSR hedging	1,835			3,811			(1,976		)	(52	)
Net gain (loss) on MSR hedging	$	(6,917	)	$	157		N.R.			N.R.


N.R.	Not relevant


(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)	2015			2014
Allowance for loan and lease losses, beginning of period	$	605,196		$	647,870
Loan and lease losses	(162,920		)	(190,349		)
Recoveries of loans previously charged off	96,950			88,697
Net loan and lease losses	(65,970		)	(101,652		)
Provision for loan and lease losses	60,069			85,945
Allowance of assets sold or transferred to loans held for sale	(7,357		)	(1,127		)
Allowance for loan and lease losses, end of period	591,938			631,036

Allowance for unfunded loan commitments and letters of credit, beginning of period	$	60,806		$	62,899
Provision for (reduction in) unfunded loan commitments and letters of credit losses	3,417			(7,450		)
Allowance for unfunded loan commitments and letters of credit, end of period	64,223			55,449
Total allowance for credit losses	$	656,161		$	686,485

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.19		%	1.35		%
Nonaccrual loans and leases (NALs)	166			194
Nonperforming assets (NPAs)	155			173

Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.32		%	1.47		%
Nonaccrual loans and leases (NALs)	184			211
Nonperforming assets (NPAs)	172			188

Huntington Bancshares Incorporated

Year to Date Net Charge-Off Analysis

(Unaudited)



	Nine Months Ended September 30,
(dollar amounts in thousands)	2015			2014
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	25,672		$	31,790
Commercial real estate:
Construction	(528		)	2,918
Commercial	(11,780		)	(12,103		)
Commercial real estate	(12,308		)	(9,185		)
Total commercial	13,364			22,605
Consumer:
Automobile	12,598			11,544
Home equity	15,144			30,626
Residential mortgage	6,968			16,693
Other consumer	17,896			20,184
Total consumer	52,606			79,047
Total net charge-offs	$	65,970		$	101,652

Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.17		%	0.23		%
Commercial real estate:
Construction	(0.07		)	0.56
Commercial	(0.37		)	(0.38		)
Commercial real estate	(0.31		)	(0.25		)
Total commercial	0.07			0.13
Consumer:
Automobile	0.20			0.21
Home equity	0.24			0.49
Residential mortgage	0.16			0.40
Other consumer	5.21			6.91
Total consumer	0.30			0.48
Net charge-offs as a % of average loans	0.18		%	0.30		%

Huntington Bancshares Incorporated

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

(Unaudited)



	September 30,
(dollar amounts in thousands)	2015			2014
Nonaccrual loans and leases (NALs): (1)
Commercial and industrial	$	157,902		$	90,265
Commercial real estate	27,516			59,812
Automobile	5,551			4,834
Residential mortgage	98,908			98,139
Home equity	66,446			72,715
Other consumer	154			—
Total nonaccrual loans and leases	356,477			325,765
Other real estate, net:
Residential	21,637			30,661
Commercial	3,273			5,609
Total other real estate, net	24,910			36,270
Other NPAs(2)	—			2,440
Total nonperforming assets (4)	$	381,387		$	364,475

Nonaccrual loans and leases as a % of total loans and leases	0.72		%	0.70		%
NPA ratio(3)	0.77			0.78



	Nine Months Ended September 30,
(dollar amounts in thousands)	2015			2014
Nonperforming assets, beginning of period	$	337,723		$	352,160
New nonperforming assets	427,571			344,239
Returns to accruing status	(77,729		)	(57,217		)
Loan and lease losses	(121,038		)	(138,629		)
Payments	(147,490		)	(110,301		)
Sales and transfers to held-for-sale	(37,650		)	(25,777		)
Nonperforming assets, end of period (3)	$	381,387		$	364,475


(1)	Excludes loans transferred to held-for-sale.


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


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


(4)	Nonaccruing troubled debt restructured loans on page 26 are included in the total nonperforming assets balance.

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)	2015			2014
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	6,571		$	7,458
Commercial real estate	12,178			26,285
Automobile	6,873			4,827
Residential mortgage (excluding loans guaranteed by the U.S. Government)	17,492			33,331
Home equity	10,764			14,809
Other consumer	1,087			638
Total, excl. loans guaranteed by the U.S. Government	54,965			87,348
Add: loans guaranteed by U.S. Government	50,643			54,778
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	105,608		$	142,126
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.11		%	0.19		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.10			0.11
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.21			0.30
Accruing troubled debt restructured loans:
Commercial and industrial	$	241,327		$	89,783
Commercial real estate	103,767			186,542
Automobile	24,537			31,480
Home equity	(1)	192,356		229,500
Residential mortgage	277,154			271,762
Other consumer	4,569			3,313
Total accruing troubled debt restructured loans	$	843,710		$	812,380
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	54,933		$	19,110
Commercial real estate	12,806			28,618
Automobile	5,400			4,817
Home equity	(2)	19,188		25,149
Residential mortgage	68,577			72,729
Other consumer	152			74
Total nonaccruing troubled debt restructured loans	$	161,056		$	150,497


(1)	Excludes approximately $87.9 million in home equity TDRs transferred to held-for-sale.


(2)	Excludes approximately $8.9 million in home equity TDRs transferred to held-for-sale.

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99..2 - EXHIBIT 99..2 - October 22, 2015

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports