HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	hban20161231_8kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20161231_8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

December 31, 2016

Table of Contents



Quarterly Key Statistics	1

Annual 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)	15

Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans	17

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data	18

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data	19

Consolidated Annual Average Balance Sheets	20

Consolidated Annual Net Interest Margin - Interest Income / Expense	21

Consolidated Annual Net Interest Margin - Yield	22

Selected Annual Income Statement Data	23

Annual Mortgage Banking Income	24

Annual Credit Reserves Analysis	25

Annual Net Charge-Off Analysis	26

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	28

Annual Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans	30

Notes:

The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Fully-Taxable Equivalent Basis

Interest income, yields, and ratios on a FTE basis are considered non-GAAP financial measures. Management believes net interest income on a FTE basis provides a more accurate picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a federal statutory tax rate of 35 percent.

Non-Regulatory Capital Ratios

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:


•	Tangible common equity to tangible assets, and


•	Tangible common equity to risk-weighted assets using Basel III definition.

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

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

Huntington Bancshares Incorporated

Quarterly Key Statistics(1)

(Unaudited)



	Three months ended
	December 31,			September 30,			December 31,			Percent Changes vs.
(dollar amounts in thousands, except as noted)	2016			2016			2015			3Q16		4Q15
Net interest income (3)	$	747,541		$	635,988		$	505,336		18	%	48	%
FTE adjustment	(12,560		)	(10,598		)	(8,425		)	19		49
Net interest income	734,981			625,390			496,911			18		48
Provision for credit losses	74,906			63,805			36,468			17		105
Noninterest income	334,337			302,415			272,215			11		23
Noninterest expense	723,084			712,247			498,766			2		45
Income before income taxes	271,328			151,753			233,892			79		16
Provision for income taxes	59,064			24,749			55,583			139		6
Net income	212,264			127,004			178,309			67		19
Dividends on preferred shares	18,865			18,537			7,972			2		137
Net income applicable to common shares	$	193,399		$	108,467		$	170,337		78	%	14	%

Net income per common share - diluted	$	0.18		$	0.11		$	0.21		64	%	(14	)%
Cash dividends declared per common share	0.08			0.07			0.07			14		14
Tangible book value per common share at end of period	6.41			6.48			6.91			(1	)	(7	)
Number of common shares repurchased	—			—			2,490			—		—
Average common shares - basic	1,085,253			938,578			796,095			16		36
Average common shares - diluted	1,104,358			952,081			810,143			16		36
Ending common shares outstanding	1,085,688			1,084,783			794,929			—		37
Return on average assets	0.84		%	0.58		%	1.00		%
Return on average common shareholders’ equity	8.2			5.4			10.8
Return on average tangible common shareholders’ equity(2)	11.4			7.0			12.4
Net interest margin(3)	3.25			3.18			3.09
Efficiency ratio(4)	65.4			75.0			63.7
Effective tax rate	21.8			16.3			23.8
Average total assets (millions)	$	100,367		$	86,898		$	70,801		15		42
Average earning assets (millions)	91,463			79,687			64,961			15		41
Average loans and leases (millions)	66,405			60,722			49,827			9		33
Average loans and leases - linked quarter annualized growth rate	37.4		%	67.7		%	6.4		%
Average total deposits (millions)	$	76,886		$	66,502		$	55,338		16		39
Average core deposits(5) (millions)	72,070			62,022			51,585			16		40
Average core deposits - linked quarter annualized growth rate	64.8		%	78.1		%	5.4		%
Average shareholders’ equity (millions)	$	10,426		$	8,994		$	6,636		16		57
Average common total shareholders' equity (millions)	9,355			7,972			6,249			17		50
Average tangible common shareholders' equity (millions)	7,080			6,509			5,536			9		28
Total assets at end of period (millions)	99,729			100,765			71,018			(1	)	40
Total shareholders’ equity at end of period (millions)	10,281			10,387			6,595			(1	)	56

NCOs as a % of average loans and leases	0.26		%	0.26		%	0.18		%
NAL ratio	0.63			0.61			0.74
NPA ratio(6)	0.72			0.72			0.79
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	0.95			0.93			1.19
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period	1.10			1.06			1.33
ACL as a % of NALs	174			174			180
ACL as a % of NPAs	153			148			168
Common equity tier 1 risk-based capital ratio(7)	9.53			9.09			9.79
Tangible common equity / tangible asset ratio(8)	7.14			7.14			7.82

See Notes to the Annual and Quarterly Key Statistics.

Huntington Bancshares Incorporated

Annual Key Statistics(1)

(Unaudited)



	Year Ended December 31,						Change
(dollar amounts in thousands, except as noted)	2016			2015			Amount			Percent
Net interest income(3)	$	2,411,726		$	1,982,852		$	428,874		22	%
FTE adjustment	(42,408		)	(32,115		)	(10,293		)	32
Net interest income	2,369,318			1,950,737			418,581			21
Provision for credit losses	190,802			99,954			90,848			91
Noninterest income	1,149,731			1,038,730			111,001			11
Noninterest expense	2,450,072			1,975,908			474,164			24
Income before income taxes	878,175			913,605			(35,430		)	(4	)
Provision for income taxes	193,053			220,648			(27,595		)	(13	)
Net Income	685,122			692,957			(7,835		)	(1	)
Dividends on preferred shares	65,274			31,873			33,401			105
Net income applicable to common shares	$	619,848		$	661,084		$	(41,236	)	(6	)%

Net income per common share - diluted	$	0.67		$	0.81		$	(0.14	)	(17	)%
Cash dividends declared per common share	0.29			0.25			0.04			16

Average common shares - basic	904,438			803,412			101,026			13
Average common shares - diluted	918,790			817,129			101,661			12

Return on average assets	0.82		%	1.01		%
Return on average common shareholders’ equity	8.2			10.7
Return on average tangible common shareholders’ equity(2)	10.2			12.4
Net interest margin(3)	3.16			3.15
Efficiency ratio(4)	67.9			64.5
Effective tax rate	22.0			24.2

Average total assets (millions)	$	83,054		$	68,560		$	14,494		21
Average earning assets (millions)	76,362			63,023			13,340			21
Average loans and leases (millions)	57,454			48,646			8,808			18
Average total deposits (millions)	63,491			53,632			9,859			18
Average core deposits(5) (millions)	59,380			50,121			9,259			18
Average shareholders’ equity (millions)	8,391			6,536			1,855			28
Average common total shareholders' equity (millions)	7,535			6,150			1,385			23
Average tangible common shareholders' equity (millions)	6,242			5,469			773			14

NCOs as a % of average loans and leases	0.19		%	0.18		%
NAL ratio	0.63			0.74
NPA ratio(6)	0.72			0.79

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 applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.


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


(4)	Noninterest expense less amortization of intangibles 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)	December 31, 2016, 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



	December 31,			December 31,
(dollar amounts in thousands, except number of shares)	2016			2015			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,384,770		$	847,156		63	%
Interest-bearing deposits in banks	58,267			51,838			12
Trading account securities	133,295			36,997			260
Loans held for sale	512,951			474,621			8
Available-for-sale and other securities	15,562,837			8,775,441			77
Held-to-maturity securities	7,806,939			6,159,590			27
Loans and leases(1)	66,961,996			50,341,099			33
Allowance for loan and lease losses	(638,413		)	(597,843		)	7
Net loans and leases	66,323,583			49,743,256			33
Bank owned life insurance	2,432,086			1,757,668			38
Premises and equipment	815,508			620,540			31
Goodwill	1,992,849			676,869			194
Other intangible assets	402,458			54,978			632
Servicing rights	225,578			189,237			19
Accrued income and other assets	2,077,864			1,630,110			27
Total assets	$	99,728,985		$	71,018,301		40	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	75,607,717		$	55,294,979		37	%
Short-term borrowings	3,692,654			615,279			500
Long-term debt	8,309,159			7,041,364			18
Accrued expenses and other liabilities	1,838,008			1,472,073			25
Total liabilities	89,447,538			64,423,695			39

Shareholders' equity
Preferred stock	1,071,227			386,291			177
Common stock	10,886			7,970			37
Capital surplus	9,881,277			7,038,502			40
Less treasury shares, at cost	(27,384		)	(17,932		)	53
Accumulated other comprehensive loss	(401,016		)	(226,158		)	77
Retained (deficit) earnings	(253,543		)	(594,067		)	(57	)
Total shareholders’ equity	10,281,447			6,594,606			56
Total liabilities and shareholders’ equity	$	99,728,985		$	71,018,301		40	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	1,088,641,251			796,969,694
Common shares outstanding	1,085,688,538			794,928,886
Treasury shares outstanding	2,952,713			2,040,808
Preferred stock, authorized shares	6,617,808			6,617,808
Preferred shares issued	2,702,571			1,967,071
Preferred shares outstanding	1,098,006			398,006


(1)	See pages 5-6 for detail of loans and leases.


(2)	See page 7 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2016				2016				2016				2016				2015

Ending Balances by Type:
Originated loans
Commercial:
Commercial and industrial	$	21,631	41	%	$	21,025	41	%	$	21,372	41	%	$	21,254	41	%	$	20,560	41	%
Commercial real estate:
Construction	979		2		934		2		856		2		939		2		1,031		2
Commercial	4,740		9		4,569		8		4,466		7		4,343		8		4,237		8
Commercial real estate	5,719		11		5,503		10		5,322		9		5,282		10		5,268		10
Total commercial	27,350		52		26,528		51		26,694		50		26,536		51		25,828		51
Consumer:
Automobile	9,619		18		9,283		18		10,381		20		9,920		19		9,481		19
Home equity	8,665		16		8,626		17		8,447		17		8,422		17		8,471		17
Residential mortgage	6,717		13		6,591		13		6,377		12		6,082		12		5,998		12
RV and marine finance	166		—		78		—		—		—		—		—		—		—
Other consumer	730		1		718		1		644		1		579		1		563		1
Total consumer	25,897		48		25,296		49		25,849		50		25,003		49		24,513		49
Total originated loans and leases	$	53,247	100	%	$	51,824	100	%	$	52,543	100	%	$	51,539	100	%	$	50,341	100	%

Acquired loans (1)
Commercial:
Commercial and industrial	$	6,428	47	%	$	6,643	46	%
Commercial real estate:
Construction	467		3		480		3
Commercial	1,115		8		1,273		10
Commercial real estate	1,582		11		1,753		13
Total commercial	8,010		58		8,396		59
Consumer:
Automobile	1,350		10		1,508		10
Home equity	1,441		11		1,494		10
Residential mortgage	1,008		7		1,074		7
RV and marine finance	1,680		12		1,762		12
Other consumer	226		2		246		2
Total consumer	5,705		42		6,084		41
Total acquired loans and leases	$	13,715	100	%	$	14,480	100	%

Total loans
Commercial:
Commercial and industrial	$	28,059	42	%	$	27,668	42	%	$	21,372	41	%	$	21,254	41	%	$	20,560	41	%
Commercial real estate:
Construction	1,446		2		1,414		2		856		2		939		2		1,031		2
Commercial	5,855		9		5,842		9		4,466		7		4,343		8		4,237		8
Commercial real estate	7,301		11		7,256		11		5,322		9		5,282		10		5,268		10
Total commercial	35,360		53		34,924		53		26,694		50		26,536		51		25,828		51
Consumer:
Automobile	10,969		16		10,791		16		10,381		20		9,920		19		9,481		19
Home equity	10,106		15		10,120		15		8,447		17		8,422		17		8,471		17
Residential mortgage	7,725		12		7,665		12		6,377		12		6,082		12		5,998		12
RV and marine finance	1,846		3		1,840		3		—		—		—		—		—		—
Other consumer	956		1		964		1		644		1		579		1		563		1
Total consumer	31,602		47		31,380		47		25,849		50		25,003		49		24,513		49
Total loans and leases	$	66,962	100	%	$	66,304	100	%	$	52,543	100	%	$	51,539	100	%	$	50,341	100	%


(1)	Represents loans from FirstMerit acquisition.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)



	December 31,				September 30,				June 30,				March 31,					December 31,
(dollar amounts in millions)	2016				2016				2016				2016					2015
Ending Balances by Business Segment:
Consumer and Business Banking	$	17,629	26	%	$	17,658	27	%	$	13,811	26	%	$	13,637		26	%	$	13,681	27	%
Commercial Banking	19,255		29		19,151		29		14,202		27		14,073			27		13,409		27
CREVF	22,491		34		22,043		33		17,800		34		17,412			34		16,864		33
RBHPCG	4,673		7		4,618		7		4,024		8		3,876			8		3,021		6
Home Lending	2,801		4		2,768		4		2,659		5		2,552			5		3,366		7
Treasury / Other	113		—		66		—		47		—		(11		)	—		—		—
Total loans and leases	$	66,962	100	%	$	66,304	100	%	$	52,543	100	%	$	51,539		100	%	$	50,341	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	17,643	27	%	$	15,731	26	%	$	13,730	26	%	$	13,619		27	%	$	13,686	28	%
Commercial Banking	19,002		29		17,159		28		14,033		27		13,499			27		13,132		26
CREVF	22,224		33		20,699		34		17,554		34		17,023			34		16,494		33
RBHPCG	4,631		7		4,318		8		3,934		8		3,852			7		2,990		6
Home Lending	2,774		4		2,702		4		2,583		5		2,533			5		3,434		7
Treasury / Other	131		—		113		—		98		—		92			—		91		—
Total loans and leases	$	66,405	100	%	$	60,722	100	%	$	51,932	100	%	$	50,618		100	%	$	49,827	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2016				2016				2016				2016				2015

Ending Balances by Type:
Demand deposits - noninterest-bearing	$	22,836	30	%	$	23,426	30	%	$	16,324	30	%	$	16,571	30	%	$	16,480	30	%
Demand deposits - interest-bearing	15,676		21		15,730		20		8,412		15		8,174		15		7,682		14
Money market deposits	18,407		24		18,604		24		19,480		34		19,844		35		19,792		36
Savings and other domestic deposits	11,975		16		12,418		16		5,341		10		5,423		10		5,246		9
Core certificates of deposit	2,535		3		2,724		4		1,866		4		2,123		4		2,382		4
Total core deposits	71,429		94		72,902		94		51,423		93		52,135		94		51,582		93
Other domestic deposits of $250,000 or more	394		1		391		1		380		1		424		1		501		1
Brokered deposits and negotiable CDs	3,784		5		3,972		5		3,017		6		2,890		5		2,944		5
Deposits in foreign offices	—		—		140		—		223		—		180		—		268		1
Total deposits	$	75,608	100	%	$	77,405	100	%	$	55,043	100	%	$	55,629	100	%	$	55,295	100	%
Total core deposits:
Commercial	$	31,887	45	%	$	32,936	45	%	$	24,308	47	%	$	24,543	47	%	$	24,474	47	%
Consumer	39,542		55		39,966		55		27,115		53		27,592		53		27,108		53
Total core deposits	$	71,429	100	%	$	72,902	100	%	$	51,423	100	%	$	52,135	100	%	$	51,582	100	%

Ending Balances by Business Segment:
Consumer and Business Banking	$	44,861	59	%	$	45,082	58	%	$	31,287	57	%	$	31,502	57	%	$	30,964	56	%
Commercial Banking	15,616		21		16,434		21		10,353		19		11,258		20		11,499		21
CREVF	1,887		2		1,772		2		1,693		3		1,608		3		1,649		3
RBHPCG	8,521		11		8,705		11		7,970		14		7,690		14		7,530		14
Home Lending	639		1		500		1		335		1		334		1		362		—
Treasury / Other(1)	4,084		6		4,912		7		3,405		6		3,237		5		3,291		6
Total deposits	$	75,608	100	%	$	77,405	100	%	$	55,043	100	%	$	55,629	100	%	$	55,295	100	%



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2016				2016				2016				2016				2015
Average Balances by Business Segment:
Consumer and Business Banking	$	45,109	59	%	$	38,076	57	%	$	31,484	57	%	$	30,985	56	%	$	30,622	55	%
Commercial Banking	16,003		21		13,664		21		10,769		19		11,375		20		11,831		21
CREVF	1,887		2		1,704		3		1,656		3		1,629		3		1,629		3
RBHPCG	8,616		11		8,326		13		7,876		14		7,480		14		7,706		14
Home Lending	606		1		447		1		386		1		316		1		349		1
Treasury / Other(1)	4,665		6		4,285		5		3,243		6		3,194		6		3,201		6
Total deposits	$	76,886	100	%	$	66,502	100	%	$	55,414	100	%	$	54,979	100	%	$	55,338	100	%


(1)	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)



	Quarterly Average Balances (2)
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in millions)	2016			2016			2016			2016			2015			3Q16		4Q15
Assets
Interest-bearing deposits in banks	$	110		$	95		$	99		$	98		$	89		16	%	24	%
Loans held for sale	2,507			695			571			433			502			261		399
Securities:
Available-for-sale and other securities:
Taxable	13,734			9,785			6,904			6,633			8,099			40		70
Tax-exempt	3,136			2,854			2,510			2,358			2,257			10		39
Total available-for-sale and other securities	16,870			12,639			9,414			8,991			10,356			33		63
Trading account securities	139			49			41			40			39			184		258
Held-to-maturity securities - taxable	5,432			5,487			5,806			6,054			4,148			(1	)	31
Total securities	22,441			18,175			15,261			15,085			14,543			23		54
Loans and leases:(1)
Commercial:
Commercial and industrial	27,727			24,957			21,344			20,649			20,186			11		37
Commercial real estate:
Construction	1,413			1,132			881			923			1,108			25		28
Commercial	5,805			5,227			4,345			4,283			4,158			11		40
Commercial real estate	7,218			6,359			5,226			5,206			5,266			13		37
Total commercial	34,945			31,316			26,570			25,855			25,452			12		37
Consumer:
Automobile	10,866			11,402			10,146			9,730			9,286			(5	)	17
Home equity	10,101			9,260			8,416			8,441			8,463			9		19
Residential mortgage	7,690			7,012			6,187			6,018			6,079			10		27
RV and marine finance	1,844			915			—			—			—			101		N.R.
Other consumer	959			817			613			547			547			17		75
Total consumer	31,460			29,406			25,362			24,763			24,375			7		29
Total loans and leases	66,405			60,722			51,932			50,618			49,827			9		33
Allowance for loan and lease losses	(614		)	(623		)	(616		)	(604		)	(595		)	(1	)	3
Net loans and leases	65,791			60,099			51,316			50,014			49,232			9		34
Total earning assets	91,463			79,687			67,863			66,234			64,961			15		41
Cash and due from banks	1,538			1,325			1,001			1,013			1,468			16		5
Intangible assets	2,421			1,547			726			730			734			56		230
All other assets	5,559			4,962			4,149			4,223			4,233			12		31
Total assets	$	100,367		$	86,898		$	73,123		$	71,596		$	70,801		15	%	42	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	23,250		$	20,033		$	16,507		$	16,334		$	17,174		16	%	35	%
Demand deposits - interest-bearing	15,294			12,362			8,445			7,776			6,923			24		121
Total demand deposits	38,544			32,395			24,952			24,110			24,097			19		60
Money market deposits	18,618			18,453			19,534			19,682			19,843			1		(6	)
Savings and other domestic deposits	12,272			8,889			5,402			5,306			5,215			38		135
Core certificates of deposit	2,636			2,285			2,007			2,265			2,430			15		8
Total core deposits	72,070			62,022			51,895			51,363			51,585			16		40
Other domestic deposits of $250,000 or more	391			382			402			455			426			2		(8	)
Brokered deposits and negotiable CDs	4,273			3,904			2,909			2,897			2,929			9		46
Deposits in foreign offices	152			194			208			264			398			(22	)	(62	)
Total deposits	76,886			66,502			55,414			54,979			55,338			16		39
Short-term borrowings	2,628			1,306			1,032			1,145			524			101		402
Long-term debt	8,594			8,488			7,899			7,202			6,788			1		27
Total interest-bearing liabilities	64,858			56,263			47,838			46,992			45,476			15		43
All other liabilities	1,833			1,608			1,416			1,515			1,515			14		21
Shareholders’ equity	10,426			8,994			7,362			6,755			6,636			16		57
Total liabilities and shareholders’ equity	$	100,367		$	86,898		$	73,123		$	71,596		$	70,801		15	%	42	%

N.R. Not relevant.


(1)	Includes nonaccrual loans.


(2)	Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Interest Income / Expense(1)(2)

(Unaudited)



	Quarterly Interest Income / Expense
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollar amounts in thousands)	2016		2016		2016		2016		2015
Assets
Interest-bearing deposits in banks	$	177	$	152	$	63	$	51	$	17
Loans held for sale	18,477		6,135		5,546		4,322		5,324
Securities:
Available-for-sale and other securities:
Taxable	83,604		57,572		40,992		39,614		50,582
Tax-exempt	28,245		21,474		21,223		20,030		17,803
Total available-for-sale and other securities	111,849		79,046		62,215		59,644		68,385
Trading account securities	62		71		101		50		106
Held-to-maturity securities - taxable	33,005		33,098		35,420		36,789		25,394
Total securities	144,916		112,215		97,736		96,483		93,885
Loans and leases:
Commercial:
Commercial and industrial	271,715		234,853		188,375		183,930		179,233
Commercial real estate:
Construction	13,172		10,866		8,231		8,198		9,752
Commercial	52,555		47,353		36,763		38,820		35,215
Commercial real estate	65,728		58,219		44,994		47,018		44,967
Total commercial	337,442		293,072		233,369		230,948		224,200
Consumer:
Automobile	97,482		96,585		79,574		76,717		75,323
Home equity	107,637		98,014		87,279		88,072		85,491
Residential mortgage	68,841		63,217		56,509		55,510		55,702
RV and marine finance	26,141		13,102		—		—		—
Other consumer	26,305		22,452		15,673		14,307		12,636
Total consumer	326,406		293,370		239,035		234,606		229,152
Total loans and leases	663,848		586,442		472,404		465,554		453,352
Total earning assets	$	827,418	$	704,944	$	575,749	$	566,410	$	552,578

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	4,230		3,430		1,939		1,679		1,390
Total demand deposits	4,230		3,430		1,939		1,679		1,390
Money market deposits	11,022		10,945		11,676		11,768		11,545
Savings and other domestic deposits	7,631		4,604		1,442		1,660		1,811
Core certificates of deposit	1,931		2,469		3,938		4,623		5,068
Total core deposits	24,814		21,448		18,995		19,730		19,814
Other domestic deposits of $250,000 or more	379		386		399		460		433
Brokered deposits and negotiable CDs	5,186		4,336		2,861		2,742		1,399
Deposits in foreign offices	51		63		68		86		132
Total deposits	30,430		26,233		22,323		23,018		21,778
Short-term borrowings	2,370		959		913		898		119
Long-term debt	47,077		41,764		36,541		30,269		25,345
Total interest bearing liabilities	79,877		68,956		59,777		54,185		47,242
Net interest income	$	747,541	$	635,988	$	515,972	$	512,225	$	505,336


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 11 for the FTE adjustment.


(2)	Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)



	Quarterly Average Rates(2)
	December 31,		September 30,		June 30,		March 31,		December 31,
Fully-taxable equivalent basis(1)	2016		2016		2016		2016		2015
Assets
Interest-bearing deposits in banks	0.64	%	0.64	%	0.25	%	0.21	%	0.08	%
Loans held for sale	2.95		3.53		3.89		3.99		4.24
Securities:
Available-for-sale and other securities:
Taxable	2.43		2.35		2.37		2.39		2.50
Tax-exempt	3.60		3.01		3.38		3.40		3.15
Total available-for-sale and other securities	2.65		2.50		2.64		2.65		2.64
Trading account securities	0.18		0.58		0.98		0.50		1.09
Held-to-maturity securities - taxable	2.43		2.41		2.44		2.43		2.45
Total securities	2.58		2.47		2.56		2.56		2.58
Loans and leases:(3)
Commercial:
Commercial and industrial	3.83		3.68		3.49		3.52		3.47
Commercial real estate:
Construction	3.65		3.76		3.70		3.51		3.45
Commercial	3.54		3.54		3.35		3.59		3.31
Commercial real estate	3.56		3.58		3.41		3.57		3.34
Total commercial	3.78		3.66		3.47		3.53		3.45
Consumer:
Automobile	3.57		3.37		3.15		3.17		3.22
Home equity	4.24		4.21		4.17		4.20		4.01
Residential mortgage	3.58		3.61		3.65		3.69		3.67
RV and marine finance	5.64		5.70		—		—		—
Other consumer	10.91		10.93		10.28		10.02		9.17
Total consumer	4.13		3.97		3.79		3.81		3.74
Total loans and leases	3.95		3.81		3.63		3.67		3.59
Total earning assets	3.60		3.52		3.41		3.44		3.37
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.11		0.11		0.09		0.09		0.08
Total demand deposits	0.04		0.04		0.03		0.03		0.02
Money market deposits	0.24		0.24		0.24		0.24		0.23
Savings and other domestic deposits	0.25		0.21		0.11		0.13		0.14
Core certificates of deposit	0.29		0.43		0.79		0.82		0.83
Total core deposits	0.20		0.20		0.22		0.23		0.23
Other domestic deposits of $250,000 or more	0.39		0.40		0.40		0.41		0.40
Brokered deposits and negotiable CDs	0.48		0.44		0.40		0.38		0.19
Deposits in foreign offices	0.13		0.13		0.13		0.13		0.13
Total deposits	0.23		0.22		0.23		0.24		0.23
Short-term borrowings	0.36		0.29		0.36		0.32		0.09
Long-term debt	2.19		1.97		1.85		1.68		1.49
Total interest-bearing liabilities	0.48		0.49		0.50		0.46		0.41
Net interest rate spread	3.12		3.03		2.91		2.98		2.96
Impact of noninterest-bearing funds on margin	0.13		0.15		0.15		0.13		0.13
Net interest margin	3.25	%	3.18	%	3.06	%	3.11	%	3.09	%

Commercial Loan Derivative Impact

(Unaudited)



	Average Rates
	2016		2016		2016		2016		2015
Fully-taxable equivalent basis(1)	Fourth		Third		Second		First		Fourth
Commercial loans(2)(3)	3.76	%	3.62	%	3.40	%	3.44	%	3.27	%
Impact of commercial loan derivatives	0.02		0.04		0.07		0.09		0.18
Total commercial - as reported	3.78	%	3.66	%	3.47	%	3.53	%	3.45	%

Average 30 day LIBOR	0.59	%	0.51	%	0.44	%	0.43	%	0.25	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 11 for the FTE adjustment.


(2)	Yield/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.


(3)	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data(1)

(Unaudited)



	Three months ended
	December 31,			September 30,		June 30,		March 31,		December 31,
(dollar amounts in thousands, except per share amounts)	2016			2016		2016		2016		2015
Interest income	$	814,858		$	694,346	$	565,658	$	557,251	$	544,153
Interest expense	79,877			68,956		59,777		54,185		47,242
Net interest income	734,981			625,390		505,881		503,066		496,911
Provision for credit losses	74,906			63,805		24,509		27,582		36,468
Net interest income after provision for credit losses	660,075			561,585		481,372		475,484		460,443
Service charges on deposit accounts	91,577			86,847		75,613		70,262		72,854
Cards and payment processing income	49,113			44,320		39,184		36,447		37,594
Mortgage banking income	37,520			40,603		31,591		18,543		31,418
Trust services	34,016			28,923		22,497		22,838		25,272
Insurance income	16,486			15,865		15,947		16,225		15,528
Brokerage income	17,014			14,719		14,599		15,502		14,462
Capital markets fees	18,730			14,750		13,037		13,010		13,778
Bank owned life insurance income	17,067			14,452		12,536		13,513		13,441
Gain on sale of loans	24,987			7,506		9,265		5,395		10,122
Securities gains (losses)	(1,771		)	1,031		656		—		474
Other income	29,598			33,399		36,187		30,132		37,272
Total noninterest income	334,337			302,415		271,112		241,867		272,215
Personnel costs	359,755			405,024		298,949		285,397		288,861
Outside data processing and other services	88,695			91,133		63,037		61,878		63,775
Equipment	59,666			40,792		31,805		32,576		31,711
Net occupancy	49,450			41,460		30,704		31,476		32,939
Professional services	23,165			47,075		21,488		13,538		13,010
Marketing	21,478			14,438		14,773		12,268		12,035
Deposit and other insurance expense	15,772			14,940		12,187		11,208		11,105
Amortization of intangibles	14,099			9,046		3,600		3,712		3,788
Other expense	91,004			48,339		47,118		39,027		41,542
Total noninterest expense	723,084			712,247		523,661		491,080		498,766
Income before income taxes	271,328			151,753		228,823		226,271		233,892
Provision for income taxes	59,064			24,749		54,283		54,957		55,583
Net income	212,264			127,004		174,540		171,314		178,309
Dividends on preferred shares	18,865			18,537		19,874		7,998		7,972
Net income applicable to common shares	$	193,399		$	108,467	$	154,666	$	163,316	$	170,337

Average common shares - basic	1,085,253			938,578		798,167		795,755		796,095
Average common shares - diluted	1,104,358			952,081		810,371		808,349		810,143

Per common share
Net income - basic	$	0.18		$	0.12	$	0.19	$	0.21	$	0.21
Net income - diluted	0.18			0.11		0.19		0.20		0.21
Cash dividends declared	0.08			0.07		0.07		0.07		0.07

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	734,981		$	625,390	$	505,881	$	503,066	$	496,911
FTE adjustment	12,560			10,598		10,091		9,159		8,425
Net interest income(2)	747,541			635,988		515,972		512,225		505,336
Noninterest income	334,337			302,415		271,112		241,867		272,215
Total revenue(2)	$	1,081,878		$	938,403	$	787,084	$	754,092	$	777,551


(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)



	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in thousands, except as noted)	2016			2016			2016			2016			2015			3Q16		4Q15
Mortgage banking income
Origination and secondary marketing	$	22,161		$	32,741		$	26,862		$	18,533		$	23,885		(32	)%	(7	)%
Servicing fees	12,601			11,656			11,010			11,137			11,060			8		14
Amortization of capitalized servicing	(7,582		)	(7,681		)	(6,673		)	(6,405		)	(6,655		)	(1	)	14
Other mortgage banking income	2,862			2,790			2,323			1,672			2,271			3		26
Subtotal	30,042			39,506			33,522			24,937			30,561			(24	)	(2	)
MSR valuation adjustment(1)	24,981			2,505			(8,300		)	(18,329		)	5,144			897		386
Net trading gains (losses) related to MSR hedging	(17,503		)	(1,408		)	6,369			11,935			(4,287		)	1,143		308
Total mortgage banking income	$	37,520		$	40,603		$	31,591		$	18,543		$	31,418		(8	)	19
Mortgage originations (in millions)	$	1,542		$	1,744		$	1,600		$	936		$	1,012		(12	)	52
Capitalized mortgage servicing rights(2)	186,213			156,820			134,397			142,094			160,718			19		16
Total mortgages serviced for others (in millions)(2)	18,852			18,631			16,211			16,239			16,168			1		17
MSR % of investor servicing portfolio(2)	0.99		%	0.84		%	0.83		%	0.88		%	0.99		%	18		—
Net impact of MSR hedging
MSR valuation adjustment(1)	$	24,981		$	2,505		$	(8,300	)	$	(18,329	)	$	5,144		897		386
Net trading gains (losses) related to MSR hedging	(17,503		)	(1,408		)	6,369			11,935			(4,287		)	1,143		308
Net gain (loss) of MSR hedging	$	7,478		$	1,097		$	(1,931	)	$	(6,394	)	$	857		582		773


(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)



	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in thousands)	2016			2016			2016			2016			2015
Allowance for loan and lease losses, beginning of period	$	616,898		$	623,064		$	613,719		$	597,843		$	591,938
Loan and lease losses	(64,809		)	(59,268		)	(43,545		)	(59,692		)	(54,961		)
Recoveries of loans previously charged off	21,285			19,203			26,790			51,140			33,138
Net loan and lease losses	(43,524		)	(40,065		)	(16,755		)	(8,552		)	(21,823		)
Provision for loan and lease losses	65,460			53,523			26,086			24,338			28,610
Allowance of assets sold or transferred to loans held for sale	(421		)	(19,624		)	14			90			(882		)
Allowance for loan and lease losses, end of period	638,413			616,898			623,064			613,719			597,843
Allowance for unfunded loan commitments and letters of credit, beginning of period	88,433			73,748			75,325			72,081			64,223
Provision for (reduction in) unfunded loan commitments and letters of credit losses	9,446			10,282			(1,577		)	3,244			7,858
Fair value of acquired AULC	—			4,403			—			—			—
Allowance for unfunded loan commitments and letters of credit, end of period	97,879			88,433			73,748			75,325			72,081
Total allowance for credit losses, end of period	$	736,292		$	705,331		$	696,812		$	689,044		$	669,924
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	0.95		%	0.93		%	1.19		%	1.19		%	1.19		%
Nonaccrual loans and leases (NALs)	151			153			135			123			161
Nonperforming assets (NPAs)	133			130			127			117			150
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.10		%	1.06		%	1.33		%	1.34		%	1.33		%
Nonaccrual loans and leases	174			174			151			138			180
Nonperforming assets	153			148			142			131			168

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in thousands)	2016 (2)			2016 (2)			2016			2016			2015
Net charge-offs (recoveries) by loan and lease type:
Originated loans
Commercial:
Commercial and industrial	$	14,824		$	18,889		$	3,702		$	6,514		$	2,252
Commercial real estate:
Construction	(1,332		)	(271		)	(377		)	(104		)	(296		)
Commercial	(4,317		)	(2,475		)	(296		)	(17,372		)	(3,939		)
Commercial real estate	(5,649		)	(2,746		)	(673		)	(17,476		)	(4,235		)
Total commercial	9,175			16,143			3,029			(10,962		)	(1,983		)
Consumer:
Automobile	9,378			6,589			4,320			6,770			7,693
Home equity	1,173			2,141			1,078			3,681			4,706
Residential mortgage	1,411			1,726			776			1,647			3,158
RV and marine finance	—			—			—			—			—
Other consumer	12,394			11,265			7,552			7,416			8,249
Total consumer	24,356			21,721			13,726			19,514			23,806
Total originated net charge-offs	$	33,531		$	37,864		$	16,755		$	8,552		$	21,823

Acquired loans (1)
Commercial:
Commercial and industrial	$	850		$	336
Commercial real estate:
Construction	—			—
Commercial	157			48
Commercial real estate	157			48
Total commercial	1,007			384
Consumer:
Automobile	3,754			1,180
Home equity	448			483
Residential mortgage	262			2
RV and marine finance	2,182			106
Other consumer	2,340			46
Total consumer	8,986			1,817
Total acquired net charge-offs	$	9,993		$	2,201

Total loans
Commercial:
Commercial and industrial	$	15,674		$	19,225		$	3,702		$	6,514		$	2,252
Commercial real estate:
Construction	(1,332		)	(271		)	(377		)	(104		)	(296		)
Commercial	(4,160		)	(2,427		)	(296		)	(17,372		)	(3,939		)
Commercial real estate	(5,492		)	(2,698		)	(673		)	(17,476		)	(4,235		)
Total commercial	10,182			16,527			3,029			(10,962		)	(1,983		)
Consumer:
Automobile	13,132			7,769			4,320			6,770			7,693
Home equity	1,621			2,624			1,078			3,681			4,706
Residential mortgage	1,673			1,728			776			1,647			3,158
RV and marine finance	2,182			106			—			—			—
Other consumer	14,734			11,311			7,552			7,416			8,249
Total consumer	33,342			23,538			13,726			19,514			23,806
Total net charge-offs	$	43,524		$	40,065		$	16,755		$	8,552		$	21,823



	Three months ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2016 (2)		2016 (2)		2016		2016		2015
Net charge-offs (recoveries)—annualized percentages:
Commercial:
Commercial and industrial	0.23	%	0.31	%	0.07	%	0.13	%	0.04	%
Commercial real estate:
Construction	(0.38	)	(0.10	)	(0.17	)	(0.05	)	(0.11	)
Commercial	(0.29	)	(0.19	)	(0.03	)	(1.62	)	(0.38	)
Commercial real estate	(0.30	)	(0.17	)	(0.05	)	(1.34	)	(0.32	)
Total commercial	0.12		0.21		0.05		(0.17	)	(0.03	)
Consumer:
Automobile	0.48		0.27		0.17		0.28		0.33
Home equity	0.06		0.11		0.05		0.17		0.22
Residential mortgage	0.09		0.10		0.05		0.11		0.21
RV and marine finance	0.47		0.05		—		—		—
Other consumer	6.14		5.54		4.93		5.17		6.03
Total consumer	0.42		0.32		0.22		0.32		0.39
Net charge-offs as a % of average loans	0.26	%	0.26	%	0.13	%	0.07	%	0.18	%


(1)	Represents loans from FirstMerit acquisition.


(2)	Amounts presented above exclude write-downs of loans transferred to loans held-for-sale.

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in thousands)	2016			2016			2016			2016			2015
Nonaccrual loans and leases (NALs): (1)
Originated NALs
Commercial and industrial	$	225,162		$	211,669		$	289,811		$	307,824		$	175,195
Commercial real estate	19,565			19,322			23,663			30,801			28,984
Automobile	4,696			4,578			5,049			7,598			6,564
Residential mortgage	83,159			83,916			85,174			90,303			94,560
RV and marine finance	—			—			—			—			—
Home equity	66,033			62,457			56,845			62,208			66,278
Other consumer	—			—			5			—			—
Total nonaccrual loans and leases	398,615			381,942			460,547			498,734			371,581
Other real estate, net:
Residential	23,326			25,912			26,653			23,175			24,194
Commercial	3,404			3,549			2,248			2,957			3,148
Total other real estate, net	26,730			29,461			28,901			26,132			27,342
Other NPAs (2)	6,968			—			376			—			—
Total originated nonperforming assets	$	432,313		$	411,403		$	489,824		$	524,866		$	398,923

Acquired NALs (5)
Commercial and industrial	$	9,022		$	9,193
Commercial real estate	943			1,978
Automobile	1,070			199
Residential mortgage	7,343			4,239
RV and marine finance	245			96
Home equity	5,765			6,587
Other consumer	—			—
Total nonaccrual loans and leases	24,388			22,292
Other real estate, net:
Residential	7,606			8,509
Commercial	16,594			33,366
Total other real estate, net	24,200			41,875
Other NPAs (2)	—			—
Total nonperforming assets	$	48,588		$	64,167

Total NALs
Commercial and industrial	$	234,184		$	220,862		$	289,811		$	307,824		$	175,195
Commercial real estate	20,508			21,300			23,663			30,801			28,984
Automobile	5,766			4,777			5,049			7,598			6,564
Residential mortgage	90,502			88,155			85,174			90,303			94,560
RV and marine finance	245			96			—			—			—
Home equity	71,798			69,044			56,845			62,208			66,278
Other consumer	—			—			5			—			—
Total nonaccrual loans and leases	423,003			404,234			460,547			498,734			371,581
Other real estate, net:
Residential	30,932			34,421			26,653			23,175			24,194
Commercial	19,998			36,915			2,248			2,957			3,148
Total other real estate, net	50,930			71,336			28,901			26,132			27,342
Other NPAs (2)	6,968			—			376			—			—
Total nonperforming assets	$	480,901		$	475,570		$	489,824		$	524,866		$	398,923

Nonaccrual loans and leases as a % of total loans and leases	0.63		%	0.61		%	0.88		%	0.97		%	0.74		%
NPA ratio(3)	0.72			0.72			0.93			1.02			0.79
(NPA+90days)/(Loan+OREO)(4)	0.91			0.92			1.12			1.22			1.00

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in thousands)	2016			2016			2016			2016			2015
Nonperforming assets, beginning of period	$	475,570		$	489,824		$	524,866		$	398,923		$	381,387
New nonperforming assets	150,368			166,966			74,577			240,707			141,862
Returns to accruing status	(12,630		)	(81,086		)	(18,648		)	(14,289		)	(23,199		)
Loan and lease losses	(37,410		)	(31,500		)	(25,420		)	(40,465		)	(29,394		)
Payments	(33,038		)	(67,503		)	(58,594		)	(51,512		)	(64,137		)
Sales and held-for-sale transfers	(61,959		)	(1,131		)	(6,957		)	(8,498		)	(7,596		)
Nonperforming assets, end of period	$	480,901		$	475,570		$	489,824		$	524,866		$	398,923


(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.


(5)	Represents loans from FirstMerit acquisition.

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in thousands)	2016			2016			2016			2016			2015
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	18,148		$	20,188		$	5,616		$	8,032		$	8,724
Commercial real estate	17,215			21,260			10,799			12,694			9,549
Automobile	10,182			7,871			5,452			5,064			7,162
Residential mortgage (excluding loans guaranteed by the U.S. Government)	15,074			15,664			11,383			11,740			14,082
RV and marine finance	1,462			1,043			—			—			—
Home equity	11,508			12,997			7,579			8,571			9,044
Other consumer	3,895			2,988			1,645			1,868			1,394
Total, excl. loans guaranteed by the U.S. Government	77,484			82,011			42,474			47,969			49,955
Add: loans guaranteed by U.S. Government	51,878			52,665			56,105			57,843			55,835
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	129,362		$	134,676		$	98,579		$	105,812		$	105,790

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.12		%	0.12		%	0.08		%	0.09		%	0.10		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.08			0.08			0.11			0.11			0.11
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.19			0.20			0.19			0.21			0.21

Accruing troubled debt restructured loans:
Commercial and industrial	$	210,119		$	232,740		$	232,112		$	205,989		$	235,689
Commercial real estate	76,844			80,553			85,015			108,861			115,074
Automobile	26,382			27,843			25,892			25,856			24,893
Home equity	269,709		(1)	275,601		(1)	203,047		(2)	204,244		(2)	199,393		(2)
Residential mortgage	242,901			251,529			256,859			259,750			264,666
RV and marine finance	—			—			—			—			—
Other consumer	3,780			4,102			4,522			4,768			4,488
Total accruing troubled debt restructured loans	$	829,735		$	872,368		$	807,447		$	809,468		$	844,203

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	107,087		$	70,179		$	77,592		$	83,600		$	56,919
Commercial real estate	4,507			5,672			6,833			14,607			16,617
Automobile	4,579			4,437			4,907			7,407			6,412
Home equity	28,128		(1)	28,009		(1)	21,145		(2)	23,211		(2)	20,996		(2)
Residential mortgage	59,157			62,027			63,638			68,918			71,640
RV and marine finance	—			—			—			—			—
Other consumer	118			142			142			191			151
Total nonaccruing troubled debt restructured loans	$	203,576		$	170,466		$	174,257		$	197,934		$	172,735


(1)	Includes TDRs transferred from loans to held-for-sale to loans.


(2)	Excludes TDRs transferred from loans to loans held-for-sale.

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions except per share amounts)	2016			2016			2016			2016			2015
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	10,281		$	10,387		$	7,507		$	7,158		$	6,595
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,076		)	(1,076		)	(971		)	(773		)	(386		)
Accumulated other comprehensive income offset	401			172			134			167			226
Goodwill and other intangibles, net of related taxes	(2,126		)	(2,140		)	(700		)	(703		)	(695		)
Deferred tax assets that arise from tax loss and credit carryforwards	(21		)	(29		)	(21		)	(29		)	(19		)
Common equity tier 1 capital	7,459			7,314			5,949			5,820			5,721
Additional tier 1 capital
Shareholders’ preferred equity	1,076			1,076			971			773			386
Qualifying capital instruments subject to phase-out	—			—			—			—			76
Other	(14		)	(19		)	(14		)	(19		)	(29		)
Tier 1 capital	8,521			8,371			6,906			6,574			6,154
Long-term debt and other tier 2 qualifying instruments	932			1,036			590			611			563
Qualifying allowance for loan and lease losses	736			705			697			689			670
Tier 2 capital	1,668			1,741			1,287			1,300			1,233
Total risk-based capital	$	10,189		$	10,112		$	8,193		$	7,874		$	7,387
Risk-weighted assets (RWA)(1)	$	78,267		$	80,513		$	60,721		$	59,798		$	58,420
Common equity tier 1 risk-based capital ratio(1)	9.53		%	9.09		%	9.80		%	9.73		%	9.79		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	8.67			9.89			9.55			9.29			8.79
Tier 1 risk-based capital ratio(1)	10.89			10.40			11.37			10.99			10.53
Total risk-based capital ratio(1)	13.02			12.56			13.49			13.17			12.64
Non-regulatory capital data:
Tangible common equity / RWA ratio(1)	8.89			8.74			9.60			9.49			9.41


(1)	December 31, 2016, 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



	December 31,		September 30,		June 30,		March 31,		December 31,
	2016		2016		2016		2016		2015
Common stock price, per share
High(1)	$	13.640	$	10.110	$	10.650	$	10.810	$	11.870
Low(1)	9.570		8.230		8.045		7.830		10.210
Close	13.220		9.860		8.940		9.540		11.060
Average closing price	11.627		9.522		9.831		9.222		11.177
Dividends, per share
Cash dividends declared per common share	$	0.08	$	0.07	$	0.07	$	0.07	$	0.07
Common shares outstanding
Average - basic	1,085,253		938,578		798,167		795,755		796,095
Average - diluted	1,104,358		952,081		810,371		808,349		810,143
Ending	1,085,688		1,084,783		799,154		796,689		794,929
Tangible book value per common share(2)	$	6.41	$	6.48	$	7.29	$	7.12	$	6.91
Common share repurchases
Number of shares repurchased	—		—		—		—		2,490

Non-regulatory capital



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2016			2016			2016			2016			2015
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	10,281		$	10,387		$	7,507		$	7,158		$	6,595
Less: goodwill	(1,993		)	(2,004		)	(677		)	(677		)	(677		)
Less: other intangible assets	(402		)	(429		)	(48		)	(51		)	(55		)
Add: related deferred tax liability(2)	141			150			17			18			19
Total tangible equity	8,027			8,104			6,799			6,448			5,882
Less: preferred equity	(1,071		)	(1,071		)	(971		)	(773		)	(386		)
Total tangible common equity	$	6,956		$	7,033		$	5,828		$	5,675		$	5,496
Total assets	$	99,729		$	100,765		$	73,954		$	72,645		$	71,018
Less: goodwill	(1,993		)	(2,004		)	(677		)	(677		)	(677		)
Less: other intangible assets	(402		)	(429		)	(48		)	(51		)	(55		)
Add: related deferred tax liability(2)	141			150			17			18			19
Total tangible assets	$	97,475		$	98,482		$	73,246		$	71,935		$	70,305
Tangible equity / tangible asset ratio	8.24		%	8.23		%	9.28		%	8.96		%	8.37		%
Tangible common equity / tangible asset ratio	7.14			7.14			7.96			7.89			7.82
Other data:
Number of employees (Average full-time equivalent)	15,993			14,511			12,363			12,386			12,418
Number of domestic full-service branches(3)	1,115			1,129			772			771			777


(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.

Huntington Bancshares Incorporated

Consolidated Annual Average Balance Sheets

(Unaudited)



	Annual Average Balances (2)
				Change from 2015								Change from 2014
(dollar amounts in thousands)	2016			Amount			Percent		2015			Amount			Percent		2014
Assets
Interest-bearing deposits in banks	$	100		$	10		11	%	$	90		$	5		6	%	$	85
Loans held for sale	1,054			400			61		654			331			102		323
Securities:
Available-for-sale and other securities:
Taxable	9,278			1,278			16		7,999			1,214			18		6,785
Tax-exempt	2,716			641			31		2,075			646			45		1,429
Total available-for-sale and other securities	11,994			1,919			19		10,074			1,860			23		8,214
Trading account securities	67			21			45		46			—			—		46
Held-to-maturity securities - taxable	5,693			2,181			62		3,513			(99		)	(3	)	3,612
Total securities	17,754			4,121			30		13,633			1,761			15		11,872
Loans and leases:(1)
Commercial:
Commercial and industrial	23,684			3,950			20		19,734			1,392			8		18,342
Commercial real estate:
Construction	1,088			71			7		1,017			289			40		728
Commercial	4,919			709			17		4,210			(61		)	(1	)	4,271
Commercial real estate	6,007			780			15		5,227			228			5		4,999
Total commercial	29,691			4,730			19		24,961			1,620			7		23,341
Consumer:
Automobile	10,540			1,780			20		8,760			1,090			14		7,670
Home equity	9,058			564			7		8,494			99			1		8,395
Residential mortgage	6,730			780			13		5,950			327			6		5,623
RV and marine finance	693			693			—		—			—			—		—
Other consumer	742			261			54		481			85			21		396
Total consumer	27,763			4,079			17		23,685			1,601			7		22,084
Total loans and leases	57,454			8,808			18		48,646			3,221			7		45,425
Allowance for loan and lease losses	(614		)	(8		)	1		(606		)	32			(5	)	(638		)
Net loans and leases	56,840			8,800			18		48,040			3,253			7		44,787
Total earning assets	76,362			13,340			21		63,023			5,318			9		57,705
Cash and due from banks	1,220			(3		)	—		1,223			325			36		898
Intangible assets	1,359			656			93		703			125			22		578
All other assets	4,727			509			12		4,217			276			7		3,941
Total assets	$	83,054		$	14,494		21	%	$	68,560		$	6,076		10	%	$	62,484
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	19,045		$	2,704		17	%	$	16,342		$	2,354		17	%	$	13,988
Demand deposits - interest-bearing	10,985			4,412			67		6,573			677			11		5,896
Total demand deposits	30,030			7,116			31		22,915			3,031			15		19,884
Money market deposits	19,069			(314		)	(2	)	19,383			1,466			8		17,917
Savings and other domestic deposits	7,981			2,761			53		5,220			189			4		5,031
Core certificates of deposit	2,300			(303		)	(12	)	2,603			(712		)	(21	)	3,315
Total core deposits	59,380			9,259			18		50,121			3,974			9		46,147
Other domestic deposits of $250,000 or more	408			151			59		256			14			6		242
Brokered deposits and negotiable CDs	3,499			746			27		2,753			614			29		2,139
Deposits in foreign offices	204			(297		)	(59	)	502			127			34		375
Total deposits	63,491			9,859			18		53,632			4,729			10		48,903
Short-term borrowings	1,530			184			14		1,346			(1,415		)	(51	)	2,761
Long-term debt	8,048			2,463			44		5,585			2,105			60		3,480
Total interest-bearing liabilities	54,024			9,803			22		44,221			3,065			7		41,156
All other liabilities	1,594			133			9		1,461			391			37		1,070
Shareholders’ equity	8,391			1,855			28		6,536			266			4		6,270
Total liabilities and shareholders’ equity	$	83,054		$	14,494		21	%	$	68,560		$	6,076		10	%	$	62,484


(1)	Includes nonaccrual loans


(2)	Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Interest Income / Expense(1)(2)

(Unaudited)



	Annual Interest Income / Expense
(dollar amounts in thousands)	2016		2015		2014
Assets
Interest-bearing deposits in banks	$	443	$	90	$	103
Loans held for sale	34,480		23,812		12,728
Securities:
Available-for-sale and other securities:
Taxable	221,782		202,104		171,080
Tax-exempt	90,972		64,637		44,562
Total available-for-sale and other securities	312,754		266,741		215,642
Trading account securities	284		493		421
Held-to-maturity securities - taxable	138,312		86,614		88,724
Total securities	451,350		353,848		304,787
Loans and leases:
Commercial:
Commercial and industrial	878,873		700,139		643,484
Commercial real estate:
Construction	40,467		36,956		31,414
Commercial	175,491		146,526		163,192
Commercial real estate	215,958		183,482		194,606
Total commercial	1,094,831		883,621		838,090
Consumer:
Automobile	350,358		282,379		262,931
Home equity	381,002		340,342		343,281
Residential mortgage	244,077		220,678		213,268
RV and marine finance	39,243
Other consumer	78,737		41,866		28,824
Total consumer	1,093,417		885,265		848,304
Total loans and leases	2,188,248		1,768,886		1,686,394
Total earning assets	$	2,674,521	$	2,146,636	$	2,004,012
Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—
Demand deposits - interest-bearing	11,278		4,278		2,272
Total demand deposits	11,278		4,278		2,272
Money market deposits	45,411		43,406		42,156
Savings and other domestic deposits	15,337		7,340		8,779
Core certificates of deposit	12,961		20,646		26,998
Total core deposits	84,987		75,670		80,205
Other domestic deposits of $250,000 or more	1,624		1,078		1,036
Brokered deposits and negotiable CDs	15,125		4,767		4,728
Deposits in foreign offices	268		659		483
Total deposits	102,004		82,174		86,452
Short-term borrowings	5,140		1,584		2,940
Long-term debt	155,651		80,026		49,929
Total interest-bearing liabilities	262,795		163,784		139,321
Net interest income	$	2,411,726	$	1,982,852	$	1,864,691


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 24 for the FTE adjustment.


(2)	Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Yield

(Unaudited)



	Annual Average Rates(2)
Fully-taxable equivalent basis(1)	2016		2015		2014
Assets
Interest-bearing deposits in banks	0.44	%	0.10	%	0.12	%
Loans held for sale	3.27		3.64		3.94
Securities:
Available-for-sale and other securities:
Taxable	2.39		2.53		2.52
Tax-exempt	3.35		3.11		3.12
Total available-for-sale and other securities	2.61		2.65		2.63
Trading account securities	0.42		1.06		0.92
Held-to-maturity securities - taxable	2.43		2.47		2.46
Total securities	2.54		2.60		2.57
Loans and leases:(3)
Commercial:
Commercial and industrial	3.71		3.55		3.51
Commercial real estate:
Construction	3.72		3.63		4.31
Commercial	3.57		3.48		3.82
Commercial real estate	3.60		3.51		3.89
Total commercial	3.69		3.54		3.59
Consumer:
Automobile	3.32		3.22		3.43
Home equity	4.21		4.01		4.09
Residential mortgage	3.63		3.71		3.79
RV and marine finance	5.67		—		—
Other consumer	10.62		8.71		7.30
Total consumer	3.94		3.74		3.84
Total loans and leases	3.81		3.64		3.71
Total earning assets	3.50		3.41		3.47
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—
Demand deposits - interest-bearing	0.10		0.07		0.04
Total demand deposit	0.04		0.02		0.01
Money market deposits	0.24		0.22		0.24
Savings and other domestic deposits	0.19		0.14		0.17
Core certificates of deposit	0.56		0.79		0.81
Total core deposits	0.21		0.22		0.25
Other domestic deposits of $250,000 or more	0.40		0.42		0.43
Brokered deposits and negotiable CDs	0.43		0.17		0.22
Deposits in foreign offices	0.13		0.13		0.13
Total deposits	0.23		0.22		0.25
Short-term borrowings	0.34		0.12		0.11
Long-term debt	1.93		1.43		1.43
Total interest bearing liabilities	0.48		0.37		0.34
Net interest rate spread	3.02		3.04		3.13
Impact of noninterest-bearing funds on margin	0.14		0.11		0.10
Net interest margin	3.16	%	3.15	%	3.23	%

Commercial Loan Derivative Impact

(Unaudited)



	Annual Average Rates
Fully-taxable equivalent basis(1)	2016		2015		2014
Commercial loans(2)(3)	3.63	%	3.34	%	3.37	%
Impact of commercial loan derivatives	0.06		0.20		0.22
Total commercial - as reported	3.69	%	3.54	%	3.59	%

Average 30 day LIBOR	0.49	%	0.20	%	0.15	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 24 for the FTE adjustment.


(2)	Yield/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.


(3)	Includes the impact of nonacrrual loans.

Huntington Bancshares Incorporated

Selected Annual Income Statement Data(1)

(Unaudited)



	Year Ended December 31,
				Change							Change
(dollar amounts in thousands, except per share amounts)	2016			Amount			Percent		2015		Amount			Percent		2014
Interest income	$	2,632,113		$	517,592		24	%	$	2,114,521	$	138,059		7	%	$	1,976,462
Interest expense	262,795			99,011			60		163,784		24,463			18		139,321
Net interest income	2,369,318			418,581			21		1,950,737		113,596			6		1,837,141
Provision for credit losses	190,802			90,848			91		99,954		18,965			23		80,989
Net interest income after provision for credit losses	2,178,516			327,733			18		1,850,783		94,631			5		1,756,152
Service charges on deposit accounts	324,299			43,950			16		280,349		6,608			2		273,741
Cards and payment processing income	169,064			26,349			18		142,715		37,314			35		105,401
Mortgage banking income	128,257			16,404			15		111,853		26,966			32		84,887
Trust services	108,274			2,441			2		105,833		(10,139		)	(9	)	115,972
Insurance income	64,523			(741		)	(1	)	65,264		(209		)	—		65,473
Brokerage income	61,834			1,629			3		60,205		(8,072		)	(12	)	68,277
Capital markets fees	59,527			5,911			11		53,616		9,885			23		43,731
Bank owned life insurance income	57,567			5,167			10		52,400		(4,648		)	(8	)	57,048
Gain on sale of loans	47,153			14,116			43		33,037		11,946			57		21,091
Securities gains (losses)	(84		)	(828		)	(111	)	744		(16,810		)	(96	)	17,554
Other income	129,317			(3,397		)	(3	)	132,714		6,710			5		126,004
Total noninterest income	1,149,731			111,001			11		1,038,730		59,551			6		979,179
Personnel costs	1,349,124			226,942			20		1,122,182		73,407			7		1,048,775
Outside data processing and other services	304,743			73,390			32		231,353		18,767			9		212,586
Equipment	164,839			39,882			32		124,957		5,294			4		119,663
Net occupancy	153,090			31,209			26		121,881		(6,195		)	(5	)	128,076
Professional services	105,266			54,975			109		50,291		(9,264		)	(16	)	59,555
Marketing	62,957			10,744			21		52,213		1,653			3		50,560
Deposit and other insurance expense	54,107			9,498			21		44,609		(4,435		)	(9	)	49,044
Amortization of intangibles	30,456			2,589			9		27,867		(11,410		)	(29	)	39,277
Other expense	225,490			24,935			12		200,555		25,745			15		174,810
Total noninterest expense	2,450,072			474,164			24		1,975,908		93,562			5		1,882,346
Income before income taxes	878,175			(35,430		)	(4	)	913,605		60,620			7		852,985
Provision for income taxes	193,053			(27,595		)	(13	)	220,648		55			—		220,593
Net income	685,122			(7,835		)	(1	)	692,957		60,565			10		632,392
Dividends on preferred shares	65,274			33,401			105		31,873		19			—		31,854
Net income applicable to common shares	$	619,848		$	(41,236	)	(6	)%	$	661,084	$	60,546		10	%	$	600,538
Average common shares - basic	904,438			101,026			13	%	803,412		(16,505		)	(2	)%	819,917
Average common shares - diluted	918,790			101,661			12		817,129		(15,952		)	(2	)	833,081
Per common share
Net income - basic	$	0.69		$	(0.13	)	(16	)	$	0.82	$	0.09		12		$	0.73
Net income - diluted	0.67			(0.14		)	(17	)	0.81		0.09			13		0.72
Cash dividends declared	0.29			0.04			16		0.25		0.04			19		0.21
Revenue - fully taxable equivalent (FTE)
Net interest income	$	2,369,318		$	418,581		21		$	1,950,737	$	113,596		6		$	1,837,141
FTE adjustment	42,408			10,293			32		32,115		4,565			17		27,550
Net interest income (2)	2,411,726			428,874			22		1,982,852		118,161			6		1,864,691
Noninterest income	1,149,731			111,001			11		1,038,730		59,551			6		979,179
Total revenue (2)	$	3,561,457		$	539,875		18	%	$	3,021,582	$	177,712		6	%	$	2,843,870


(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

Annual Mortgage Banking Income

(Unaudited)



	Year Ended December 31,
(dollar amounts in thousands, except as noted)	2016			2015			2014			2013			2012
Mortgage banking income
Origination and secondary marketing	$	100,297		$	90,272		$	57,272		$	85,016		$	146,845
Servicing fees	46,404			43,342			40,602			43,816			46,177
Amortization of capitalized servicing	(28,341		)	(26,679		)	(24,102		)	(28,746		)	(35,908		)
Other mortgage banking income	9,647			10,978			14,734			16,206			19,607
Subtotal	128,007			117,913			88,506			116,292			176,721
MSR valuation adjustment(1)	857			(3,608		)	(10,734		)	35,556			(16,902		)
Net trading gains (losses) related to MSR hedging	(607		)	(2,452		)	7,115			(24,993		)	31,273
Total mortgage banking income	$	128,257		$	111,853		$	84,887		$	126,855		$	191,092

Mortgage originations (in millions)	$	5,822		$	4,705		$	3,558		$	4,418		$	4,833
Capitalized mortgage servicing rights(2)	186,213			160,718			155,598			162,301			120,747
Total mortgages serviced for others (in millions)(2)	18,852			16,168			15,637			15,239			15,623
MSR % of investor servicing portfolio	0.99		%	0.99		%	1.00		%	1.07		%	0.77		%

Net impact of MSR hedging
MSR valuation adjustment(1)	$	857		$	(3,608	)	$	(10,734	)	$	35,556		$	(16,902	)
Net trading gains (losses) related to MSR hedging	(607		)	(2,452		)	7,115			(24,993		)	31,273
Net interest income related to MSR hedging	—			—			—			—			(26		)
Net gain (loss) on MSR hedging	$	250		$	(6,060	)	$	(3,619	)	$	10,563		$	14,345


(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

Annual Credit Reserves Analysis

(Unaudited)



	Year Ended December 31,
(dollar amounts in thousands)	2016			2015			2014			2013			2012
Allowance for loan and lease losses, beginning of period	$	597,843		$	605,196		$	647,870		$	769,075		$	964,828
Loan and lease losses	(227,314		)	(217,881		)	(246,601		)	(306,316		)	(455,200		)
Recoveries of loans previously charged off	118,418			130,088			121,974			117,650			112,738
Net loan and lease losses	(108,896		)	(87,793		)	(124,627		)	(188,666		)	(342,462		)
Provision for loan and lease losses	169,407			88,679			83,082			67,797			155,193
Allowance of assets sold or transferred to loans held for sale	(19,941		)	(8,239		)	(1,129		)	(336		)	(8,484		)
Allowance for loan and lease losses, end of period	638,413			597,843			605,196			647,870			769,075

Allowance for unfunded loan commitments and letters of credit, beginning of period	72,081			60,806			62,899			40,651			48,456
Provision for (reduction in) unfunded loan commitments and letters of credit losses	21,395			11,275			(2,093		)	22,248			(7,805		)
Fair value of acquired AULC	4,403			—			—			—			—
Allowance for unfunded loan commitments and letters of credit, end of period	97,879			72,081			60,806			62,899			40,651
Total allowance for credit losses	$	736,292		$	669,924		$	666,002		$	710,769		$	809,726

Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	0.95		%	1.19		%	1.27		%	1.50		%	1.89		%
Nonaccrual loans and leases (NALs)	151			161			202			201			189
Nonperforming assets (NPAs)	133			150			179			184			173

Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.10		%	1.33		%	1.40		%	1.65		%	1.99		%
Nonaccrual loans and leases (NALs)	174			180			222			221			199
Nonperforming assets (NPAs)	153			168			197			202			182

Huntington Bancshares Incorporated

Annual Net Charge-Off Analysis

(Unaudited)



	Year Ended December 31,
(dollar amounts in thousands)	2016 (2)			2015			2014			2013		2012
Net charge-offs by loan and lease type:
Originated Loans
Commercial:
Commercial and industrial	$	43,929		$	27,924		$	32,123		$	16,390	$	64,248
Commercial real estate:
Construction	(2,084		)	(824		)	1,171			6,358		8,041
Commercial	(24,460		)	(15,719		)	(10,538		)	18,496		70,388
Commercial real estate	(26,544		)	(16,543		)	(9,367		)	24,854		78,429
Total commercial	17,385			11,381			22,756			41,244		142,677
Consumer:
Automobile	27,057			20,291			17,568			10,537		9,442
Home equity	8,073			19,850			36,947			82,263		116,379
Residential mortgage	5,560			10,126			19,752			27,162		47,923
RV and marine finance	—			—			—			—		—
Other consumer	38,627			26,145			27,604			27,460		26,041
Total consumer	79,317			76,412			101,871			147,422		199,785
Total originated net charge-offs	$	96,702		$	87,793		$	124,627		$	188,666	$	342,462

Acquired loans (1)
Commercial:
Commercial and industrial	$	1,186
Commercial real estate:
Construction	—
Commercial	205
Commercial real estate	205
Total commercial	1,391
Consumer:
Automobile	4,934
Home equity	931
Residential mortgage	264
RV and marine finance	2,288
Other consumer	2,386
Total consumer	10,803
Total acquired net charge-offs	$	12,194

Total Loans
Commercial:
Commercial and industrial	$	45,115		$	27,924		$	32,123		$	16,390	$	64,248
Commercial real estate:
Construction	(2,084		)	(824		)	1,171			6,358		8,041
Commercial	(24,255		)	(15,719		)	(10,538		)	18,496		70,388
Commercial real estate	(26,339		)	(16,543		)	(9,367		)	24,854		78,429
Total commercial	18,776			11,381			22,756			41,244		142,677
Consumer:
Automobile	31,991			20,291			17,568			10,537		9,442
Home equity	9,004			19,850			36,947			82,263		116,379
Residential mortgage	5,824			10,126			19,752			27,162		47,923
RV and marine finance	2,288			—			—			—		—
Other consumer	41,013			26,145			27,604			27,460		26,041
Total consumer	90,120			76,412			101,871			147,422		199,785
Total net charge-offs	$	108,896		$	87,793		$	124,627		$	188,666	$	342,462



Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.19	%	0.14	%	0.18	%	0.10	%	0.40	%
Commercial real estate:
Construction	(0.19	)	(0.08	)	0.16		1.10		1.38
Commercial	(0.49	)	(0.37	)	(0.25	)	0.42		1.35
Commercial real estate	(0.44	)	(0.32	)	(0.19	)	0.49		1.36
Total commercial	0.06		0.05		0.10		0.19		0.66
Consumer:
Automobile	0.30		0.23		0.23		0.19		0.21
Home equity	0.10		0.23		0.44		0.99		1.40
Residential mortgage	0.09		0.17		0.35		0.52		0.92
RV and marine finance	0.33		—		—		—		—
Other consumer	5.53		5.44		6.99		6.30		5.72
Total consumer	0.32		0.32		0.46		0.75		1.08
Net charge-offs as a % of average loans	0.19	%	0.18	%	0.27	%	0.45	%	0.85	%


(1)	Represents loans from FirstMerit acquisition.


(2)	Amounts presented above exclude write-downs of loans transferred to loans held-for-sale.

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,
(dollar amounts in thousands)	2016			2015			2014			2013			2012
Nonaccrual loans and leases (NALs): (1)
Originated NALs
Commercial and industrial	$	225,162		$	175,195		$	71,974		$	56,615		$	90,705
Commercial real estate	19,565			28,984			48,523			73,417			127,128
Automobile	4,696			6,564			4,623			6,303			7,823
Residential mortgage	83,159			94,560			96,564			119,532			122,452
RV and marine	—
Home equity	66,033			66,278			78,515			66,169			59,519
Other consumer	—			—			45			20			6
Total nonaccrual loans and leases	398,615			371,581			300,244			322,056			407,633
Other real estate, net:
Residential	23,326			24,194			29,291			23,447			21,378
Commercial	3,404			3,148			5,748			4,217			6,719
Total other real estate, net	26,730			27,342			35,039			27,664			28,097
Other NPAs(2)	6,968			—			2,440			2,440			10,045
Total nonperforming assets (4)	$	432,313		$	398,923		$	337,723		$	352,160		$	445,775

Acquired NALs (5)
Commercial and industrial	$	9,022
Commercial real estate	943
Automobile	1,070
Residential mortgage	7,343
RV and marine	245
Home equity	5,765
Other consumer	—
Total nonaccrual loans and leases	24,388
Other real estate, net:
Residential	7,606
Commercial	16,594
Total other real estate, net	24,200
Other NPAs(2)	—
Total nonperforming assets (4)	$	48,588

Total NALs
Commercial and industrial	$	234,184		$	175,195		$	71,974		$	56,615		$	90,705
Commercial real estate	20,508			28,984			48,523			73,417			127,128
Automobile	5,766			6,564			4,623			6,303			7,823
Residential mortgage	90,502			94,560			96,564			119,532			122,452
RV and marine	245
Home equity	71,798			66,278			78,515			66,169			59,519
Other consumer	—			—			45			20			6
Total nonaccrual loans and leases	423,003			371,581			300,244			322,056			407,633
Other real estate, net:
Residential	30,932			24,194			29,291			23,447			21,378
Commercial	19,998			3,148			5,748			4,217			6,719
Total other real estate, net	50,930			27,342			35,039			27,664			28,097
Other NPAs(2)	6,968			—			2,440			2,440			10,045
Total nonperforming assets (4)	$	480,901		$	398,923		$	337,723		$	352,160		$	445,775

Nonaccrual loans and leases as a % of total loans and leases	0.63		%	0.74		%	0.63		%	0.75		%	1.00		%
NPA ratio(3)	0.72			0.79			0.71			0.82			1.09



	December 31,
(dollar amounts in thousands)	2016			2015			2014			2013			2012
Nonperforming assets, beginning of period	$	398,923		$	337,723		$	352,160		$	445,775		$	590,276
New nonperforming assets	632,618			569,433			431,261			466,122			741,724
Returns to accruing status	(126,653		)	(100,928		)	(77,241		)	(82,112		)	(140,714		)
Loan and lease losses	(134,795		)	(150,432		)	(174,737		)	(213,138		)	(310,979		)
Payments	(210,647		)	(211,627		)	(158,946		)	(230,726		)	(302,614		)
Sales and transfers to held-for-sale	(78,545		)	(45,246		)	(34,774		)	(33,761		)	(131,918		)
Other	—			—			—			—			—
Nonperforming assets, end of period (3)	$	480,901		$	398,923		$	337,723		$	352,160		$	445,775


(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 31 are included in the total nonperforming assets balance.


(5)	Represents loans from FirstMerit acquisition.

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,
(dollar amounts in thousands)	2016			2015			2014			2013			2012
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	18,148		$	8,724		$	4,937		$	14,562		$	26,648
Commercial real estate	17,215			9,549			18,793			39,142			56,660
Automobile	10,182			7,162			5,703			5,055			4,418
Residential mortgage (excluding loans guaranteed by the U.S. Government)	15,074			14,082			33,040			2,469			2,718
RV and marine finance	1,462			—			—			—			—
Home equity	11,508			9,044			12,159			13,983			18,200
Other consumer	3,895			1,394			837			998			1,672
Total, excl. loans guaranteed by the U.S. Government	77,484			49,955			75,469			76,209			110,316
Add: loans guaranteed by U.S. Government	51,878			55,835			55,012			87,985			90,816
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	129,362		$	105,790		$	130,481		$	164,194		$	201,132
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.12		%	0.10		%	0.16		%	0.18		%	0.27		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.08			0.11			0.12			0.20			0.22
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.19			0.21			0.27			0.38			0.49
Accruing troubled debt restructured loans:
Commercial and industrial	$	210,119		$	235,689		$	116,331		$	83,857		$	76,586
Commercial real estate	76,844			115,074			177,156			204,668			208,901
Automobile	26,382			24,893			26,060			30,781			35,784
Home equity	269,709		(1)	199,393		(2)	252,084			188,266			110,581
Residential mortgage	242,901			264,666			265,084			305,059			290,011
RV and marine finance	—			—			—			—			—
Other consumer	3,780			4,488			4,018			1,041			2,544
Total accruing troubled debt restructured loans	$	829,735		$	844,203		$	840,733		$	813,672		$	724,407
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	107,087		$	56,919		$	20,580		$	7,291		$	19,268
Commercial real estate	4,507			16,617			24,964			23,981			32,548
Automobile	4,579			6,412			4,552			6,303			7,823
Home equity	28,128		(1)	20,996		(2)	27,224			20,715			6,951
Residential mortgage	59,157			71,640			69,305			82,879			84,515
RV and marine finance	—			—			—			—			—
Other consumer	118			151			70			—			113
Total nonaccruing troubled debt restructured loans	$	203,576		$	172,735		$	146,695		$	141,169		$	151,218


(1)	Includes TDRs transferred from loans to held-for-sale to loans.


(2)	Excludes TDRs transferred from loans to loans held-for-sale.

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - January 25, 2017

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports