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

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	hban20170630_8kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20170630_8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

June 30, 2017

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 and Nonaccruing 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.

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
	June 30,			March 31,			June 30,			Percent Changes vs.
(amounts in thousands, except per share amounts and as noted)	2017			2017			2016			1Q17		2Q16
Net interest income (3)	$	756,581		$	742,033		$	515,972		2	%	47	%
FTE adjustment	(12,069		)	(12,058		)	(10,091		)	—		20
Net interest income	744,512			729,975			505,881			2		47
Provision for credit losses	24,978			67,638			24,509			(63	)	2
Noninterest income	325,218			312,463			271,112			4		20
Noninterest expense	694,364			707,422			523,661			(2	)	33
Income before income taxes	350,388			267,378			228,823			31		53
Provision for income taxes	78,647			59,284			54,283			33		45
Net income	271,741			208,094			174,540			31		56
Dividends on preferred shares	18,889			18,878			19,874			—		—
Net income applicable to common shares	$	252,852		$	189,216		$	154,666		34	%	63	%

Net income per common share - diluted	$	0.23		$	0.17		$	0.19		35	%	21	%
Cash dividends declared per common share	0.08			0.08			0.07			—		14
Tangible book value per common share at end of period	6.74			6.55			7.29			3		(8	)
Average common shares - basic	1,088,934			1,086,374			798,167			—		36
Average common shares - diluted	1,108,527			1,108,617			810,371			—		37
Ending common shares outstanding	1,090,016			1,087,120			799,154			—		36
Return on average assets	1.09		%	0.84		%	0.96		%
Return on average common shareholders’ equity	10.6			8.2			9.6
Return on average tangible common shareholders’ equity(2)	14.4			11.3			11.0
Net interest margin(3)	3.31			3.30			3.06
Efficiency ratio(4)	62.9			65.7			66.1
Effective tax rate	22.4			22.2			23.7
Average total assets (millions)	$	100,121		$	100,343		$	73,123		—		37
Average earning assets (millions)	91,728			91,139			67,863			1		35
Average loans and leases (millions)	67,345			66,981			51,932			1		30
Average loans and leases - linked quarter annualized growth rate	2.2		%	3.5		%	10.4		%
Average total deposits (millions)	$	76,553		$	75,939		$	55,414		1		38
Average core deposits(5) (millions)	72,291			71,500			51,895			1		39
Average core deposits - linked quarter annualized growth rate	4.4		%	(3.2		)%	4.1		%
Average shareholders’ equity (millions)	$	10,594		$	10,422		$	7,362		2		44
Average common total shareholders' equity (millions)	9,523			9,351			6,465			2		47
Average tangible common shareholders' equity (millions)	7,283			7,101			5,756			3		27
Total assets at end of period (millions)	101,407			100,046			73,954			1		37
Total shareholders’ equity at end of period (millions)	10,654			10,437			7,507			2		42

NCOs as a % of average loans and leases	0.21		%	0.24		%	0.13		%
NAL ratio	0.54			0.60			0.88
NPA ratio(6)	0.61			0.68			0.93
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	0.98			1.00			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	1.11			1.14			1.33
ACL as a % of NALs	207			190			151
ACL as a % of NPAs	181			167			142
Common equity tier 1 risk-based capital ratio(7)	9.88			9.74			9.80
Tangible common equity / tangible asset ratio(8)	7.41			7.28			7.96

See Notes to the Year to Date and Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year to Date Key Statistics(1)

(Unaudited)



	Six Months Ended June 30,						Change
(dollar amounts in thousands, except as noted)	2017			2016			Amount			Percent
Net interest income(3)	$	1,498,614		$	1,028,197		$	470,417		46	%
FTE adjustment	(24,127		)	(19,250		)	(4,877		)	25
Net interest income	1,474,487			1,008,947			465,540			46
Provision for credit losses	92,616			52,091			40,525			78
Noninterest income	637,681			512,979			124,702			24
Noninterest expense	1,401,786			1,014,741			387,045			38
Income before income taxes	617,766			455,094			162,672			36
Provision for income taxes	137,931			109,240			28,691			26
Net Income	479,835			345,854			133,981			39
Dividends on preferred shares	37,767			27,872			9,895			36
Net income applicable to common shares	$	442,068		$	317,982		$	124,086		39	%

Net income per common share - diluted	$	0.40		$	0.39		$	0.01		3	%
Cash dividends declared per common share	0.16			0.14			0.02			14

Average common shares - basic	1,087,654			796,961			290,693			36
Average common shares - diluted	1,108,572			809,360			299,212			37

Return on average assets	0.97		%	0.96		%
Return on average common shareholders’ equity	9.4			10.0
Return on average tangible common shareholders’ equity(2)	12.9			11.4
Net interest margin(3)	3.31			3.08
Efficiency ratio(4)	64.3			65.4
Effective tax rate	22.3			24.0

Average total assets (millions)	$	100,232		$	72,359		$	27,873		39
Average earning assets (millions)	91,435			67,047			24,388			36
Average loans and leases (millions)	67,164			51,275			15,889			31
Average total deposits (millions)	76,248			55,198			21,050			38
Average core deposits(5) (millions)	71,898			51,630			20,268			39
Average shareholders’ equity (millions)	10,509			7,058			3,451			49
Average common total shareholders' equity (millions)	9,437			6,393			3,044			48
Average tangible common shareholders' equity (millions)	7,193			5,683			1,510			27

NCOs as a % of average loans and leases	0.22		%	0.10		%
NAL ratio	0.54			0.88
NPA ratio(6)	0.61			0.93

See Notes to the Year to Date 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)	June 30, 2017, 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



	June 30,			December 31,
(dollar amounts in thousands, except number of shares)	2017			2016			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,515,476		$	1,384,770		9	%
Interest-bearing deposits in banks	77,148			58,267			32
Trading account securities	94,767			133,295			(29	)
Loans held for sale	748,077			512,951			46
Available-for-sale and other securities	15,388,306			15,562,837			(1	)
Held-to-maturity securities	8,279,577			7,806,939			6
Loans and leases(1)	68,059,310			66,961,996			2
Allowance for loan and lease losses	(667,996		)	(638,413		)	5
Net loans and leases	67,391,314			66,323,583			2
Bank owned life insurance	2,448,913			2,432,086			1
Premises and equipment	855,347			815,508			5
Goodwill	1,992,849			1,992,849			—
Other intangible assets	373,861			402,458			(7	)
Servicing rights	224,656			225,578			—
Accrued income and other assets	2,016,488			2,062,976			(2	)
Total assets	$	101,406,779		$	99,714,097		2	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	75,933,373		$	75,607,717		—	%
Short-term borrowings	4,552,877			3,692,654			23
Long-term debt	8,536,471			8,309,159			3
Accrued expenses and other liabilities	1,729,876			1,796,421			(4	)
Total liabilities	90,752,597			89,405,951			2

Shareholders' equity
Preferred stock	1,071,286			1,071,227			—
Common stock	10,932			10,886			—
Capital surplus	9,920,052			9,881,277			—
Less treasury shares, at cost	(31,288		)	(27,384		)	14
Accumulated other comprehensive loss	(350,357		)	(401,016		)	(13	)
Retained (deficit) earnings	33,557			(226,844		)	(115	)
Total shareholders’ equity	10,654,182			10,308,146			3
Total liabilities and shareholders’ equity	$	101,406,779		$	99,714,097		2	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	1,093,162,464			1,088,641,251
Common shares outstanding	1,090,016,469			1,085,688,538
Treasury shares outstanding	3,145,995			2,952,713
Preferred stock, authorized shares	6,617,808			6,617,808
Preferred shares issued	2,702,571			2,702,571
Preferred shares outstanding	1,098,006			1,098,006


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


(2)	See page 6 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2017				2017				2016				2016				2016
Ending Balances by Type:
Commercial:
Commercial and industrial	$	27,969	41	%	$	28,176	42	%	$	28,059	42	%	$	27,668	42	%	$	21,372	41	%
Commercial real estate:
Construction	1,145		2		1,107		2		1,446		2		1,414		2		856		2
Commercial	6,000		9		5,986		9		5,855		9		5,842		9		4,466		7
Commercial real estate	7,145		11		7,093		11		7,301		11		7,256		11		5,322		9
Total commercial	35,114		52		35,269		53		35,360		53		34,924		53		26,694		50
Consumer:
Automobile	11,555		17		11,155		17		10,969		16		10,791		16		10,381		20
Home equity	9,966		15		9,974		15		10,106		15		10,120		15		8,447		17
Residential mortgage	8,237		12		7,829		12		7,725		12		7,665		12		6,377		12
RV and marine finance	2,178		3		1,935		2		1,846		3		1,840		3		—		—
Other consumer	1,009		1		936		1		956		1		964		1		644		1
Total consumer	32,945		48		31,829		47		31,602		47		31,380		47		25,849		50
Total loans and leases	$	68,059	100	%	$	67,098	100	%	$	66,962	100	%	$	66,304	100	%	$	52,543	100	%



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2017				2017				2016				2016				2016
Ending Balances by Business Segment:
Consumer and Business Banking(1)	$	20,663	31	%	$	20,378	31	%	$	20,433	30	%	$	20,427	31	%	$	16,464	31	%
Commercial Banking	19,137		28		19,105		28		19,327		29		19,217		29		14,243		27
CREVF	23,302		34		22,791		34		22,487		34		22,040		33		17,799		34
RBHPCG	4,888		7		4,690		7		4,610		7		4,558		7		3,990		8
Treasury / Other	69		—		134		—		105		—		62		—		47		—
Total loans and leases	$	68,059	100	%	$	67,098	100	%	$	66,962	100	%	$	66,304	100	%	$	52,543	100	%

Average Balances by Business Segment:
Consumer and Business Banking(1)	$	20,525	31	%	$	20,433	30	%	$	20,420	31	%	$	18,431	30	%	$	16,307	31	%
Commercial Banking	18,948		28		19,202		29		19,069		29		17,218		28		14,073		27
CREVF	23,001		34		22,620		34		22,220		33		20,698		34		17,553		34
RBHPCG	4,758		7		4,640		7		4,572		7		4,266		8		3,900		8
Treasury / Other	113		—		86		—		124		—		109		—		99		—
Total loans and leases	$	67,345	100	%	$	66,981	100	%	$	66,405	100	%	$	60,722	100	%	$	51,932	100	%


(1)	We announced a change within our executive leadership team, which became effective during the 2017 second quarter. As a result, the previously reported Home Lending segment is now included as an operating unit within the Consumer and Business Banking segment.

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2017				2017				2016				2016				2016

Ending Balances by Type:
Demand deposits - noninterest-bearing	$	21,420	28	%	$	21,489	28	%	$	22,836	30	%	$	23,426	30	%	$	16,324	30	%
Demand deposits - interest-bearing	17,113		23		18,618		24		15,676		21		15,730		20		8,412		15
Money market deposits	19,423		26		18,664		24		18,407		24		18,604		24		19,480		34
Savings and other domestic deposits	11,758		15		12,043		16		11,975		16		12,418		16		5,341		10
Core certificates of deposit	2,088		3		2,188		3		2,535		3		2,724		4		1,866		4
Total core deposits	71,802		95		73,002		95		71,429		94		72,902		94		51,423		93
Other domestic deposits of $250,000 or more	441		1		524		1		394		1		391		1		380		1
Brokered deposits and negotiable CDs	3,690		4		3,897		4		3,784		5		3,972		5		3,017		6
Deposits in foreign offices	—		—		—		—		—		—		140		—		223		—
Total deposits	$	75,933	100	%	$	77,423	100	%	$	75,608	100	%	$	77,405	100	%	$	55,043	100	%
Total core deposits:
Commercial	$	32,201	45	%	$	32,963	45	%	$	31,887	45	%	$	32,936	45	%	$	24,308	47	%
Consumer	39,601		55		40,039		55		39,542		55		39,966		55		27,115		53
Total core deposits	$	71,802	100	%	$	73,002	100	%	$	71,429	100	%	$	72,902	100	%	$	51,423	100	%

Ending Balances by Business Segment:
Consumer and Business Banking(1)	$	45,972	60	%	$	46,153	60	%	$	45,356	60	%	$	45,431	59	%	$	31,460	58	%
Commercial Banking	17,867		24		19,042		25		18,053		24		19,296		25		13,593		25
CREVF	1,944		3		1,890		2		1,893		3		1,777		2		1,705		3
RBHPCG	5,883		8		5,982		8		6,214		8		5,982		8		4,863		9
Treasury / Other(2)	4,267		5		4,356		5		4,092		5		4,919		6		3,422		5
Total deposits	$	75,933	100	%	$	77,423	100	%	$	75,608	100	%	$	77,405	100	%	$	55,043	100	%



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2017				2017				2016				2016				2016
Average Balances by Business Segment:
Consumer and Business Banking(1)	$	45,704	60	%	$	45,215	59	%	$	45,564	60	%	$	38,370	58	%	$	31,714	57	%
Commercial Banking	18,719		24		18,731		25		18,673		24		16,764		25		13,865		25
CREVF	1,850		2		1,800		2		1,891		2		1,707		3		1,662		3
RBHPCG	5,937		8		5,918		8		6,084		8		5,365		8		4,919		9
Treasury / Other(2)	4,343		6		4,275		6		4,674		6		4,296		6		3,254		6
Total deposits	$	76,553	100	%	$	75,939	100	%	$	76,886	100	%	$	66,502	100	%	$	55,414	100	%


(1)	We announced a change within our executive leadership team, which became effective during the 2017 second quarter. As a result, the previously reported Home Lending segment is now included as an operating unit within the Consumer and Business Banking segment.


(2)	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)



	Quarterly Average Balances (2)
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in millions)	2017			2017			2016			2016			2016			1Q17		2Q16
Assets
Interest-bearing deposits in banks	$	102		$	100		$	110		$	95		$	99		3	%	4	%
Loans held for sale	525			415			2,507			695			571			26		(8	)
Securities:
Available-for-sale and other securities:
Taxable	13,135			12,801			13,734			9,785			6,904			3		90
Tax-exempt	3,104			3,049			3,136			2,854			2,510			2		24
Total available-for-sale and other securities	16,239			15,849			16,870			12,639			9,414			2		72
Trading account securities	91			137			139			49			41			(34	)	121
Held-to-maturity securities - taxable	7,427			7,656			5,432			5,487			5,806			(3	)	28
Total securities	23,756			23,643			22,441			18,175			15,261			—		56
Loans and leases:(1)
Commercial:
Commercial and industrial	27,992			27,922			27,727			24,957			21,344			—		31
Commercial real estate:
Construction	1,130			1,314			1,413			1,132			881			(14	)	28
Commercial	5,940			6,039			5,805			5,227			4,345			(2	)	37
Commercial real estate	7,070			7,353			7,218			6,359			5,226			(4	)	35
Total commercial	35,062			35,276			34,945			31,316			26,570			(1	)	32
Consumer:
Automobile	11,324			11,063			10,866			11,402			10,146			2		12
Home equity	9,958			10,072			10,101			9,260			8,416			(1	)	18
Residential mortgage	7,979			7,777			7,690			7,012			6,187			3		29
RV and marine finance	2,039			1,874			1,844			915			—			9		N.R.
Other consumer	983			919			959			817			613			7		60
Total consumer	32,283			31,705			31,460			29,406			25,362			2		27
Total loans and leases	67,345			66,981			66,405			60,722			51,932			1		30
Allowance for loan and lease losses	(672		)	(636		)	(614		)	(623		)	(616		)	6		9
Net loans and leases	66,673			66,345			65,791			60,099			51,316			—		30
Total earning assets	91,728			91,139			91,463			79,687			67,863			1		35
Cash and due from banks	1,287			2,011			1,538			1,325			1,001			(36	)	29
Intangible assets	2,373			2,387			2,421			1,547			726			(1	)	227
All other assets	5,405			5,442			5,559			4,962			4,149			(1	)	30
Total assets	$	100,121		$	100,343		$	100,367		$	86,898		$	73,123		—	%	37	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	21,599		$	21,730		$	23,250		$	20,033		$	16,507		(1	)%	31	%
Demand deposits - interest-bearing	17,445			16,805			15,294			12,362			8,445			4		107
Total demand deposits	39,044			38,535			38,544			32,395			24,952			1		56
Money market deposits	19,212			18,653			18,618			18,453			19,534			3		(2	)
Savings and other domestic deposits	11,889			11,970			12,272			8,889			5,402			(1	)	120
Core certificates of deposit	2,146			2,342			2,636			2,285			2,007			(8	)	7
Total core deposits	72,291			71,500			72,070			62,022			51,895			1		39
Other domestic deposits of $250,000 or more	479			470			391			382			402			2		19
Brokered deposits and negotiable CDs	3,783			3,969			4,273			3,904			2,909			(5	)	30
Deposits in foreign offices	—			—			152			194			208			—		—
Total deposits	76,553			75,939			76,886			66,502			55,414			1		38
Short-term borrowings	2,687			3,792			2,628			1,306			1,032			(29	)	160
Long-term debt	8,730			8,529			8,594			8,488			7,899			2		11
Total interest-bearing liabilities	66,371			66,530			64,858			56,263			47,838			—		39
All other liabilities	1,557			1,661			1,833			1,608			1,416			(6	)	10
Shareholders’ equity	10,594			10,422			10,426			8,994			7,362			2		44
Total liabilities and shareholders’ equity	$	100,121		$	100,343		$	100,367		$	86,898		$	73,123		—	%	37	%

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
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollar amounts in thousands)	2017		2017		2016		2016		2016
Assets
Interest-bearing deposits in banks	$	391	$	271	$	177	$	152	$	63
Loans held for sale	4,892		3,958		18,477		6,135		5,546
Securities:
Available-for-sale and other securities:
Taxable	78,292		76,285		83,604		57,572		40,992
Tax-exempt	28,760		28,750		28,245		21,474		21,223
Total available-for-sale and other securities	107,052		105,035		111,849		79,046		62,215
Trading account securities	57		38		62		71		101
Held-to-maturity securities - taxable	44,276		45,195		33,005		33,098		35,420
Total securities	151,385		150,268		144,916		112,215		97,736
Loans and leases:
Commercial:
Commercial and industrial	286,054		277,812		271,715		234,853		188,375
Commercial real estate:
Construction	12,159		12,959		13,172		10,866		8,231
Commercial	59,677		55,746		52,555		47,353		36,763
Commercial real estate	71,836		68,705		65,728		58,219		44,994
Total commercial	357,890		346,517		337,442		293,072		233,369
Consumer:
Automobile	100,177		96,934		97,482		96,585		79,574
Home equity	114,388		110,545		107,637		98,014		87,279
Residential mortgage	72,987		70,614		68,841		63,217		56,509
RV and marine finance	28,313		26,001		26,141		13,102		—
Other consumer	28,070		27,310		26,305		22,452		15,673
Total consumer	343,935		331,404		326,406		293,370		239,035
Total loans and leases	701,825		677,921		663,848		586,442		472,404
Total earning assets	$	858,493	$	832,418	$	827,418	$	704,944	$	575,749

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	8,847		6,366		4,230		3,430		1,939
Total demand deposits	8,847		6,366		4,230		3,430		1,939
Money market deposits	14,786		12,057		11,022		10,945		11,676
Savings and other domestic deposits	6,126		6,573		7,631		4,604		1,442
Core certificates of deposit	3,005		2,254		1,931		2,469		3,938
Total core deposits	32,764		27,250		24,814		21,448		18,995
Other domestic deposits of $250,000 or more	586		523		379		386		399
Brokered deposits and negotiable CDs	8,937		7,016		5,186		4,336		2,861
Deposits in foreign offices	—		—		51		63		68
Total deposits	42,287		34,789		30,430		26,233		22,323
Short-term borrowings	5,204		5,866		2,370		959		913
Long-term debt	54,421		49,730		47,077		41,764		36,541
Total interest bearing liabilities	101,912		90,385		79,877		68,956		59,777
Net interest income	$	756,581	$	742,033	$	747,541	$	635,988	$	515,972


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


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

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)



	Quarterly Average Rates(2)
	June 30,		March 31,		December 31,		September 30,		June 30,
Fully-taxable equivalent basis(1)	2017		2017		2016		2016		2016
Assets
Interest-bearing deposits in banks	1.53	%	1.09	%	0.64	%	0.64	%	0.25	%
Loans held for sale	3.73		3.82		2.95		3.53		3.89
Securities:
Available-for-sale and other securities:
Taxable	2.38		2.38		2.43		2.35		2.37
Tax-exempt	3.71		3.77		3.60		3.01		3.38
Total available-for-sale and other securities	2.64		2.65		2.65		2.50		2.64
Trading account securities	0.25		0.11		0.18		0.58		0.98
Held-to-maturity securities - taxable	2.38		2.36		2.43		2.41		2.44
Total securities	2.55		2.54		2.58		2.47		2.56
Loans and leases:(3)
Commercial:
Commercial and industrial	4.04		3.98		3.83		3.68		3.49
Commercial real estate:
Construction	4.26		3.95		3.65		3.76		3.70
Commercial	3.97		3.69		3.54		3.54		3.35
Commercial real estate	4.02		3.74		3.56		3.58		3.41
Total commercial	4.04		3.93		3.78		3.66		3.47
Consumer:
Automobile	3.55		3.55		3.57		3.37		3.15
Home equity	4.61		4.45		4.24		4.21		4.17
Residential mortgage	3.66		3.63		3.58		3.61		3.65
RV and marine finance	5.57		5.63		5.64		5.70		—
Other consumer	11.47		12.05		10.91		10.93		10.28
Total consumer	4.27		4.23		4.13		3.97		3.79
Total loans and leases	4.15		4.07		3.95		3.81		3.63
Total earning assets	3.75		3.70		3.60		3.52		3.41
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.20		0.15		0.11		0.11		0.09
Total demand deposits	0.09		0.07		0.04		0.04		0.03
Money market deposits	0.31		0.26		0.24		0.24		0.24
Savings and other domestic deposits	0.21		0.22		0.25		0.21		0.11
Core certificates of deposit	0.56		0.39		0.29		0.43		0.79
Total core deposits	0.26		0.22		0.20		0.20		0.22
Other domestic deposits of $250,000 or more	0.49		0.45		0.39		0.40		0.40
Brokered deposits and negotiable CDs	0.95		0.72		0.48		0.44		0.40
Deposits in foreign offices	—		—		0.13		0.13		0.13
Total interest bearing deposits	0.31		0.26		0.23		0.22		0.23
Short-term borrowings	0.78		0.63		0.36		0.29		0.36
Long-term debt	2.49		2.33		2.19		1.97		1.85
Total interest-bearing liabilities	0.61		0.54		0.48		0.49		0.50
Net interest rate spread	3.14		3.16		3.12		3.03		2.91
Impact of noninterest-bearing funds on margin	0.17		0.14		0.13		0.15		0.15
Net interest margin	3.31	%	3.30	%	3.25	%	3.18	%	3.06	%

Commercial Loan Derivative Impact

(Unaudited)



	Average Rates
	2017		2017		2016		2016		2016
Fully-taxable equivalent basis(1)	Second		First		Fourth		Third		Second
Commercial loans(2)(3)	4.06	%	3.93	%	3.76	%	3.62	%	3.40	%
Impact of commercial loan derivatives	(0.02	)	—		0.02		0.04		0.07
Total commercial - as reported	4.04	%	3.93	%	3.78	%	3.66	%	3.47	%

Average 30 day LIBOR	1.06	%	0.80	%	0.59	%	0.51	%	0.44	%


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

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data(1)

(Unaudited)



	Three Months Ended
	June 30,		March 31,			December 31,			September 30,		June 30,
(dollar amounts in thousands, except share amounts)	2017		2017			2016			2016		2016
Interest income	$	846,424	$	820,360		$	814,858		$	694,346	$	565,658
Interest expense	101,912		90,385			79,877			68,956		59,777
Net interest income	744,512		729,975			734,981			625,390		505,881
Provision for credit losses	24,978		67,638			74,906			63,805		24,509
Net interest income after provision for credit losses	719,534		662,337			660,075			561,585		481,372
Service charges on deposit accounts	87,582		83,420			91,577			86,847		75,613
Cards and payment processing income	52,485		47,169			49,113			44,320		39,184
Mortgage banking income	32,268		31,692			37,520			40,603		31,591
Trust and investment management services	32,232		33,869			34,016			28,923		22,497
Insurance income	15,843		15,264			16,486			15,865		15,947
Brokerage income	16,294		15,758			17,014			14,719		14,599
Capital markets fees	16,836		14,200			18,730			14,750		13,037
Bank owned life insurance income	15,322		17,542			17,067			14,452		12,536
Gain on sale of loans	12,002		12,822			24,987			7,506		9,265
Securities gains (losses)	135		(8		)	(1,771		)	1,031		656
Other income	44,219		40,735			29,598			33,399		36,187
Total noninterest income	325,218		312,463			334,337			302,415		271,112
Personnel costs	391,997		382,000			359,755			405,024		298,949
Outside data processing and other services	75,169		87,202			88,695			91,133		63,037
Equipment	42,924		46,700			59,666			40,792		31,805
Net occupancy	52,613		67,700			49,450			41,460		30,704
Professional services	18,190		18,295			23,165			47,075		21,488
Marketing	18,843		13,923			21,478			14,438		14,773
Deposit and other insurance expense	20,418		20,099			15,772			14,940		12,187
Amortization of intangibles	14,242		14,355			14,099			9,046		3,600
Other expense	59,968		57,148			49,417			48,339		47,118
Total noninterest expense	694,364		707,422			681,497			712,247		523,661
Income before income taxes	350,388		267,378			312,915			151,753		228,823
Provision for income taxes	78,647		59,284			73,952			24,749		54,283
Net income	271,741		208,094			238,963			127,004		174,540
Dividends on preferred shares	18,889		18,878			18,865			18,537		19,874
Net income applicable to common shares	$	252,852	$	189,216		$	220,098		$	108,467	$	154,666

Average common shares - basic	1,088,934		1,086,374			1,085,253			938,578		798,167
Average common shares - diluted	1,108,527		1,108,617			1,104,358			952,081		810,371

Per common share
Net income - basic	$	0.23	$	0.17		$	0.20		$	0.12	$	0.19
Net income - diluted	0.23		0.17			0.20			0.11		0.19
Cash dividends declared	0.08		0.08			0.08			0.07		0.07

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	744,512	$	729,975		$	734,981		$	625,390	$	505,881
FTE adjustment	12,069		12,058			12,560			10,598		10,091
Net interest income(2)	756,581		742,033			747,541			635,988		515,972
Noninterest income	325,218		312,463			334,337			302,415		271,112
Total revenue(2)	$	1,081,799	$	1,054,496		$	1,081,878		$	938,403	$	787,084


(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 Noninterest Income

(Unaudited)



	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in thousands, except as noted)	2017			2017			2016			2016			2016			1Q17		2Q16
Mortgage banking income
Origination and secondary marketing	$	23,741		$	21,388		$	22,161		$	32,741		$	26,862		11	%	(12	)%
Servicing fees	12,888			13,014			12,601			11,656			11,010			(1	)	17
Amortization of capitalized servicing	(7,167		)	(6,683		)	(7,582		)	(7,681		)	(6,673		)	7		7
Other mortgage banking income	4,321			2,588			2,862			2,790			2,323			67		86
Subtotal	33,783			30,307			30,042			39,506			33,522			11		1
MSR valuation adjustment(1)	(3,151		)	1,955			24,981			2,505			(8,300		)	(261	)	(62	)
Net trading gains (losses) related to MSR hedging	1,636			(570		)	(17,503		)	(1,408		)	6,369			(387	)	(74	)
Total mortgage banking income	$	32,268		$	31,692		$	37,520		$	40,603		$	31,591		2		2
Total mortgage originations (in millions)	$	1,756		$	1,266		$	1,542		$	1,744		$	1,600		39		10
Capitalized mortgage servicing rights(2)	189,019			191,119			186,213			156,820			134,397			(1	)	41
Total mortgages serviced for others (in millions)(2)	19,111			19,051			18,852			18,631			16,211			—		18
MSR % of investor servicing portfolio(2)	0.99		%	1.00		%	0.99		%	0.84		%	0.83		%	(1	)	19
Net impact of MSR hedging
MSR valuation adjustment(1)	$	(3,151	)	$	1,955		$	24,981		$	2,505		$	(8,300	)	(261	)	(62	)
Net trading gains (losses) related to MSR hedging	1,636			(570		)	(17,503		)	(1,408		)	6,369			(387	)	(74	)
Net gain (loss) of MSR hedging	$	(1,515	)	$	1,385		$	7,478		$	1,097		$	(1,931	)	(209	)	(22	)


(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
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in thousands)	2017			2017			2016			2016			2016
Allowance for loan and lease losses, beginning of period	$	672,580		$	638,413		$	616,898		$	623,064		$	613,719
Loan and lease losses	(56,448		)	(70,715		)	(64,809		)	(59,268		)	(43,545		)
Recoveries of loans previously charged off	20,408			31,277			21,285			19,203			26,790
Net loan and lease losses	(36,040		)	(39,438		)	(43,524		)	(40,065		)	(16,755		)
Provision for loan and lease losses	31,457			73,679			65,460			53,523			26,086
Allowance of assets sold or transferred to loans held for sale	(1		)	(74		)	(421		)	(19,624		)	14
Allowance for loan and lease losses, end of period	667,996			672,580			638,413			616,898			623,064
Allowance for unfunded loan commitments and letters of credit, beginning of period	91,838			97,879			88,433			73,748			75,325
Provision for (reduction in) unfunded loan commitments and letters of credit losses	(6,479		)	(6,041		)	9,446			10,282			(1,577		)
Fair value of acquired AULC	—			—			—			4,403			—
Allowance for unfunded loan commitments and letters of credit, end of period	85,359			91,838			97,879			88,433			73,748
Total allowance for credit losses, end of period	$	753,355		$	764,418		$	736,292		$	705,331		$	696,812
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	0.98		%	1.00		%	0.95		%	0.93		%	1.19		%
Nonaccrual loans and leases (NALs)	183			168			151			153			135
Nonperforming assets (NPAs)	161			147			133			130			127
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.11		%	1.14		%	1.10		%	1.06		%	1.33		%
Nonaccrual loans and leases	207			190			174			174			151
Nonperforming assets	181			167			153			148			142

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in thousands)	2017			2017			2016			2016			2016
Net charge-offs (recoveries) by loan and lease type:

Total loans
Commercial:
Commercial and industrial	$	12,870		$	8,096		$	15,674		$	19,225		$	3,702
Commercial real estate:
Construction	83			(3,137		)	(1,332		)	(271		)	(377		)
Commercial	(3,638		)	895			(4,160		)	(2,427		)	(296		)
Commercial real estate	(3,555		)	(2,242		)	(5,492		)	(2,698		)	(673		)
Total commercial	9,315			5,854			10,182			16,527			3,029
Consumer:
Automobile	8,318			12,407			13,132			7,769			4,320
Home equity	1,218			1,662			1,621			2,624			1,078
Residential mortgage	1,052			2,595			1,673			1,728			776
RV and marine finance	1,875			2,363			2,182			106			—
Other consumer	14,262			14,557			14,734			11,311			7,552
Total consumer	26,725			33,584			33,342			23,538			13,726
Total net charge-offs	$	36,040		$	39,438		$	43,524		$	40,065		$	16,755


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2017			2017			2016			2016			2016
Net charge-offs (recoveries)—annualized percentages:
Commercial:
Commercial and industrial	0.18		%	0.12		%	0.23		%	0.31		%	0.07		%
Commercial real estate:
Construction	0.03			(0.96		)	(0.38		)	(0.10		)	(0.17		)
Commercial	(0.24		)	0.06			(0.29		)	(0.19		)	(0.03		)
Commercial real estate	(0.20		)	(0.12		)	(0.30		)	(0.17		)	(0.05		)
Total commercial	0.11			0.07			0.12			0.21			0.05
Consumer:
Automobile	0.29			0.45			0.48			0.27			0.17
Home equity	0.05			0.07			0.06			0.11			0.05
Residential mortgage	0.05			0.13			0.09			0.10			0.05
RV and marine finance	0.37			0.50			0.47			0.05			—
Other consumer	5.81			6.33			6.14			5.54			4.93
Total consumer	0.33			0.42			0.42			0.32			0.22
Net charge-offs as a % of average loans	0.21		%	0.24		%	0.26		%	0.26		%	0.13		%

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in thousands)	2017			2017			2016			2016			2016
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	195,279		$	232,171		$	234,184		$	220,862		$	289,811
Commercial real estate	16,763			13,889			20,508			21,300			23,663
Automobile	3,825			4,881			5,766			4,777			5,049
Residential mortgage	80,306			80,686			90,502			88,155			85,174
RV and marine finance	341			106			245			96			—
Home equity	67,940			69,575			71,798			69,044			56,845
Other consumer	2			2			—			—			5
Total nonaccrual loans and leases	364,456			401,310			423,003			404,234			460,547
Other real estate:
Residential	26,890			31,786			30,932			34,421			26,653
Commercial	16,926			18,101			19,998			36,915			2,248
Total other real estate	43,816			49,887			50,930			71,336			28,901
Other NPAs (1)	6,906			6,910			6,968			—			376
Total nonperforming assets	$	415,178		$	458,107		$	480,901		$	475,570		$	489,824

Nonaccrual loans and leases as a % of total loans and leases	0.54		%	0.60		%	0.63		%	0.61		%	0.88		%
NPA ratio (2)	0.61			0.68			0.72			0.72			0.93
(NPA+90days)/(Loan+OREO) (3)	0.81			0.87			0.91			0.92			1.12



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in thousands)	2017			2017			2016			2016			2016
Nonperforming assets, beginning of period	$	458,107		$	480,901		$	475,570		$	489,824		$	524,866
New nonperforming assets	89,394			124,550			150,368			166,966			74,577
Returns to accruing status	(33,043		)	(22,441		)	(12,630		)	(81,086		)	(18,648		)
Loan and lease losses	(17,329		)	(33,840		)	(37,410		)	(31,500		)	(25,420		)
Payments	(70,523		)	(82,607		)	(33,038		)	(67,503		)	(58,594		)
Sales and held-for-sale transfers	(11,428		)	(8,456		)	(61,959		)	(1,131		)	(6,957		)
Nonperforming assets, end of period	$	415,178		$	458,107		$	480,901		$	475,570		$	489,824


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


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


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

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in thousands)	2017			2017			2016			2016			2016
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	21,501		$	15,054		$	18,148		$	20,188		$	5,616
Commercial real estate	17,040			14,499			17,215			21,260			10,799
Automobile	8,594			8,123			10,182			7,871			5,452
Residential mortgage (excluding loans guaranteed by the U.S. Government)	16,742			16,192			15,074			15,664			11,383
RV and marine finance	2,464			2,200			1,462			1,043			—
Home equity	18,459			15,453			11,508			12,997			7,579
Other consumer	3,143			3,370			3,895			2,988			1,645
Total, excl. loans guaranteed by the U.S. Government	87,943			74,891			77,484			82,011			42,474
Add: loans guaranteed by U.S. Government	48,417			53,052			51,878			52,665			56,105
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	136,360		$	127,943		$	129,362		$	134,676		$	98,579

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.13		%	0.11		%	0.12		%	0.12		%	0.08		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.07			0.08			0.08			0.08			0.11
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.20			0.19			0.19			0.20			0.19

Accruing troubled debt restructured loans:
Commercial and industrial	$	270,372		$	222,303		$	210,119		$	232,740		$	232,112
Commercial real estate	74,429			81,202			76,844			80,553			85,015
Automobile	28,140			27,968			26,382			27,843			25,892
Home equity	268,731			271,258			269,709			275,601			203,047
Residential mortgage	238,087			239,175			242,901			251,529			256,859
RV and marine finance	950			581			—			—			—
Other consumer	4,017			4,128			3,780			4,102			4,522
Total accruing troubled debt restructured loans	$	884,726		$	846,615		$	829,735		$	872,368		$	807,447

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	89,757		$	88,759		$	107,087		$	70,179		$	77,592
Commercial real estate	3,823			4,357			4,507			5,672			6,833
Automobile	4,291			4,763			4,579			4,437			4,907
Home equity	28,667			29,090			28,128			28,009			21,145
Residential mortgage	55,590			59,773			59,157			62,027			63,638
RV and marine finance	381			106			—			—			—
Other consumer	109			117			118			142			142
Total nonaccruing troubled debt restructured loans	$	182,618		$	186,965		$	203,576		$	170,466		$	174,257

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions, except per share amounts)	2017			2017			2016			2016			2016
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	10,654		$	10,437		$	10,308		$	10,387		$	7,507
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,076		)	(1,076		)	(1,076		)	(1,076		)	(971		)
Accumulated other comprehensive income offset	350			391			401			172			134
Goodwill and other intangibles, net of related taxes	(2,161		)	(2,174		)	(2,126		)	(2,140		)	(700		)
Deferred tax assets that arise from tax loss and credit carryforwards	(27		)	(28		)	(21		)	(29		)	(21		)
Common equity tier 1 capital	7,740			7,550			7,486			7,314			5,949
Additional tier 1 capital
Shareholders’ preferred equity	1,076			1,076			1,076			1,076			971
Other	(7		)	(7		)	(15		)	(19		)	(14		)
Tier 1 capital	8,809			8,619			8,547			8,371			6,906
Long-term debt and other tier 2 qualifying instruments	887			899			932			1,036			590
Qualifying allowance for loan and lease losses	753			764			736			705			697
Tier 2 capital	1,640			1,663			1,668			1,741			1,287
Total risk-based capital	$	10,449		$	10,282		$	10,215		$	10,112		$	8,193
Risk-weighted assets (RWA)(1)	$	78,369		$	77,559		$	78,263		$	80,513		$	60,721
Common equity tier 1 risk-based capital ratio(1)	9.88		%	9.74		%	9.56		%	9.09		%	9.80		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	8.98			8.76			8.70			9.89			9.55
Tier 1 risk-based capital ratio(1)	11.24			11.11			10.92			10.40			11.37
Total risk-based capital ratio(1)	13.33			13.26			13.05			12.56			13.49
Non-regulatory capital data:
Tangible common equity / RWA ratio(1)	9.37			9.18			8.92			8.74			9.60


(1)	June 30, 2017, figures are estimated.

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary



	June 30,		March 31,		December 31,		September 30,		June 30,
	2017		2017		2016		2016		2016
Common stock price, per share
High(1)	$	13.785	$	14.740	$	13.640	$	10.110	$	10.650
Low(1)	12.225		12.370		9.570		8.230		8.045
Close	13.520		13.390		13.220		9.860		8.940
Average closing price	12.949		13.663		11.627		9.522		9.831
Dividends, per share
Cash dividends declared per common share	$	0.08	$	0.08	$	0.08	$	0.07	$	0.07
Common shares outstanding
Average - basic	1,088,934		1,086,374		1,085,253		938,578		798,167
Average - diluted	1,108,527		1,108,617		1,104,358		952,081		810,371
Ending	1,090,016		1,087,120		1,085,689		1,084,783		799,154
Tangible book value per common share(2)	$	6.74	$	6.55	$	6.43	$	6.48	$	7.29

Non-regulatory capital



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2017			2017			2016			2016			2016
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	10,654		$	10,437		$	10,308		$	10,387		$	7,507
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(2,004		)	(677		)
Less: other intangible assets	(374		)	(388		)	(402		)	(429		)	(48		)
Add: related deferred tax liability(2)	131			136			141			150			17
Total tangible equity	8,418			8,192			8,054			8,104			6,799
Less: preferred equity	(1,071		)	(1,071		)	(1,071		)	(1,071		)	(971		)
Total tangible common equity	$	7,347		$	7,121		$	6,983		$	7,033		$	5,828
Total assets	$	101,407		$	100,046		$	99,714		$	100,765		$	73,954
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(2,004		)	(677		)
Less: other intangible assets	(374		)	(388		)	(402		)	(429		)	(48		)
Add: related deferred tax liability(2)	131			136			141			150			17
Total tangible assets	$	99,171		$	97,801		$	97,460		$	98,482		$	73,246
Tangible equity / tangible asset ratio	8.49		%	8.38		%	8.26		%	8.23		%	9.28		%
Tangible common equity / tangible asset ratio	7.41			7.28			7.16			7.14			7.96
Other data:
Number of employees (Average full-time equivalent)	16,103			16,331			15,993			14,511			12,363
Number of domestic full-service branches(3)	996			996			1,115			1,129			772


(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 Year To Date Average Balance Sheets

(Unaudited)



	YTD Average Balances (2)
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2017			2016			Amount			Percent
Assets
Interest-bearing deposits in banks	$	101		$	98		$	3		3	%
Loans held for sale	470			502			(32		)	(6	)
Securities:
Available-for-sale and other securities:
Taxable	12,969			6,768			6,201			92
Tax-exempt	3,076			2,434			642			26
Total available-for-sale and other securities	16,045			9,202			6,843			74
Trading account securities	114			40			74			185
Held-to-maturity securities - taxable	7,541			5,930			1,611			27
Total securities	23,700			15,172			8,528			56
Loans and leases:(1)
Commercial:
Commercial and industrial	27,957			20,996			6,961			33
Commercial real estate:
Construction	1,221			902			319			35
Commercial	5,990			4,314			1,676			39
Commercial real estate	7,211			5,216			1,995			38
Total commercial	35,168			26,212			8,956			34
Consumer:
Automobile	11,194			9,938			1,256			13
Home equity	9,994			8,429			1,565			19
Residential mortgage	7,879			6,102			1,777			29
RV and marine finance	1,957			—			1,957			N.R.
Other consumer	972			594			378			64
Total consumer	31,996			25,063			6,933			28
Total loans and leases	67,164			51,275			15,889			31
Allowance for loan and lease losses	(654		)	(610		)	(44		)	7
Net loans and leases	66,510			50,665			15,845			31
Total earning assets	91,435			67,047			24,388			36
Cash and due from banks	1,647			1,007			640			64
Intangible assets	2,380			728			1,652			227
All other assets	5,424			4,187			1,237			30
Total assets	$	100,232		$	72,359		$	27,873		39	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	21,664		$	16,421		$	5,243		32	%
Demand deposits - interest-bearing	17,127			8,111			9,016			111
Total demand deposits	38,791			24,532			14,259			58
Money market deposits	18,934			19,608			(674		)	(3	)
Savings and other domestic deposits	11,930			5,354			6,576			123
Core certificates of deposit	2,243			2,136			107			5
Total core deposits	71,898			51,630			20,268			39
Other domestic deposits of $250,000 or more	474			429			45			10
Brokered deposits and negotiable CDs	3,876			2,903			973			34
Deposits in foreign offices	—			236			(236		)	—
Total deposits	76,248			55,198			21,050			38
Short-term borrowings	3,236			1,089			2,147			197
Long-term debt	8,630			7,549			1,081			14
Total interest-bearing liabilities	66,450			47,415			19,035			40
All other liabilities	1,609			1,465			144			10
Shareholders’ equity	10,509			7,058			3,451			49
Total liabilities and shareholders’ equity	$	100,232		$	72,359		$	27,873		39	%

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 Year To Date Net Interest Margin - Interest Income / Expense(1)(2)

(Unaudited)



	YTD Interest Income / Expense
	Six Months Ended June 30,
(dollar amounts in thousands)	2017		2016
Assets
Interest-bearing deposits in banks	$	662	$	114
Loans held for sale	8,850		9,868
Securities:
Available-for-sale and other securities:
Taxable	154,577		80,606
Tax-exempt	57,511		41,253
Total available-for-sale and other securities	212,088		121,859
Trading account securities	95		151
Held-to-maturity securities - taxable	89,471		72,209
Total securities	301,654		194,219
Loans and leases:
Commercial:
Commercial and industrial	563,866		372,305
Commercial real estate:
Construction	25,118		16,429
Commercial	115,423		75,583
Commercial real estate	140,541		92,012
Total commercial	704,407		464,317
Consumer:
Automobile	197,095		156,291
Home equity	224,934		175,351
Residential mortgage	143,602		112,019
RV and marine finance	54,330		—
Other consumer	55,378		29,980
Total consumer	675,339		473,641
Total loans and leases	1,379,746		937,958
Total earning assets	$	1,690,912	$	1,142,159
Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—
Demand deposits - interest-bearing	15,213		3,618
Total demand deposits	15,213		3,618
Money market deposits	26,843		23,444
Savings and other domestic deposits	12,699		3,102
Core certificates of deposit	5,260		8,561
Total core deposits	60,015		38,725
Other domestic deposits of $250,000 or more	1,109		859
Brokered deposits and negotiable CDs	15,953		5,603
Deposits in foreign offices	—		154
Total deposits	77,077		45,341
Short-term borrowings	11,069		1,811
Long-term debt	104,152		66,810
Total interest-bearing liabilities	192,298		113,962
Net interest income	$	1,498,614	$	1,028,197


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 35% tax rate. See page 21 for the FTE adjustment.


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

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin - Yield

(Unaudited)



	YTD Average Rates(2)
	Six Months Ended June 30,
Fully-taxable equivalent basis(1)	2017		2016
Assets
Interest-bearing deposits in banks	1.31	%	0.23	%
Loans held for sale	3.76		3.93
Securities:
Available-for-sale and other securities:
Taxable	2.38		2.38
Tax-exempt	3.74		3.39
Total available-for-sale and other securities	2.64		2.65
Trading account securities	0.17		0.75
Held-to-maturity securities - taxable	2.37		2.44
Total securities	2.55		2.56
Loans and leases:(3)
Commercial:
Commercial and industrial	4.01		3.51
Commercial real estate:
Construction	4.09		3.60
Commercial	3.83		3.47
Commercial real estate	3.88		3.49
Total commercial	3.98		3.50
Consumer:
Automobile	3.55		3.16
Home equity	4.54		4.18
Residential mortgage	3.65		3.67
RV and marine finance	5.60		—
Other consumer	11.49		10.16
Total consumer	4.25		3.80
Total loans and leases	4.11		3.65
Total earning assets	3.73	%	3.43	%
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—	%	—	%
Demand deposits - interest-bearing	0.18		0.09
Total demand deposit	0.08		0.03
Money market deposits	0.29		0.24
Savings and other domestic deposits	0.21		0.12
Core certificates of deposit	0.47		0.81
Total core deposits	0.24		0.22
Other domestic deposits of $250,000 or more	0.47		0.40
Brokered deposits and negotiable CDs	0.83		0.39
Deposits in foreign offices	—		0.13
Total interest bearing deposits	0.28		0.24
Short-term borrowings	0.69		0.33
Long-term debt	2.41		1.77
Total interest bearing liabilities	0.58		0.48
Net interest rate spread	3.15		2.94
Impact of noninterest-bearing funds on margin	0.16		0.14
Net interest margin	3.31	%	3.08	%

Commercial Loan Derivative Impact

(Unaudited)



	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis(1)	2017		2016
Commercial loans(2)(3)	4.00	%	3.42	%
Impact of commercial loan derivatives	(0.02	)%	0.08	%
Total commercial - as reported	3.98	%	3.50	%

Average 30 day LIBOR	0.94	%	0.44	%


(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 nonaccrual loans.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data(1)

(Unaudited)



	Six Months Ended June 30,				Change
(dollar amounts in thousands, except per share amounts)	2017		2016		Amount			Percent
Interest income	$	1,666,784	$	1,122,909	$	543,875		48	%
Interest expense	192,297		113,962		78,335			69
Net interest income	1,474,487		1,008,947		465,540			46
Provision for credit losses	92,616		52,091		40,525			78
Net interest income after provision for credit losses	1,381,871		956,856		425,015			44
Service charges on deposit accounts	171,002		145,875		25,127			17
Cards and payment processing income	99,654		75,631		24,023			32
Mortgage banking income	63,960		50,134		13,826			28
Trust and investment management services	66,101		45,335		20,766			46
Insurance income	31,107		32,172		(1,065		)	(3	)
Brokerage income	32,052		30,101		1,951			6
Capital market fees	31,036		26,047		4,989			19
Bank owned life insurance income	32,864		26,049		6,815			26
Gain on sale of loans	24,824		14,660		10,164			69
Securities gains (losses)	127		656		(529		)	(81	)
Other income	84,954		66,319		18,635			28
Total noninterest income	637,681		512,979		124,702			24
Personnel costs	773,997		584,346		189,651			32
Outside data processing and other services	162,371		124,915		37,456			30
Equipment	89,624		64,381		25,243			39
Net occupancy	120,313		62,180		58,133			93
Professional services	36,485		35,026		1,459			4
Marketing	32,766		27,041		5,725			21
Deposit and other insurance expense	40,517		23,395		17,122			73
Amortization of intangibles	28,597		7,312		21,285			291
Other expense	117,116		86,145		30,971			36
Total noninterest expense	1,401,786		1,014,741		387,045			38
Income before income taxes	617,766		455,094		162,672			36
Provision for income taxes	137,931		109,240		28,691			26
Net income	479,835		345,854		133,981			39
Dividends on preferred shares	37,767		27,872		9,895			36
Net income applicable to common shares	$	442,068	$	317,982	$	124,086		39	%
Average common shares - basic	1,087,654		796,961		290,693			36	%
Average common shares - diluted	1,108,572		809,360		299,212			37
Per common share
Net income - basic	$	0.41	$	0.40	$	0.01		3
Net income - diluted	0.40		0.39		0.01			3
Cash dividends declared	0.16		0.14		0.02			14
Revenue - fully taxable equivalent (FTE)
Net interest income	$	1,474,487	$	1,008,947	$	465,540		46
FTE adjustment(2)	24,127		19,250		4,877			25
Net interest income	1,498,614		1,028,197		470,417			46
Noninterest income	637,681		512,979		124,702			24
Total revenue(2)	$	2,136,295	$	1,541,176	$	595,119		39	%


(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 Noninterest Income

(Unaudited)



	Six Months Ended June 30,						Change
(dollar amounts in thousands, except as noted)	2017			2016			Amount			Percent
Mortgage banking income
Origination and secondary marketing	$	45,129		$	45,395		$	(266	)	(1	)%
Servicing fees	25,902			22,147			3,755			17
Amortization of capitalized servicing	(13,850		)	(13,078		)	(772		)	(6	)
Other mortgage banking income	6,909			3,995			2,914			73
Subtotal	64,090			58,459			5,631			10
MSR valuation adjustment(1)	(1,196		)	(26,629		)	25,433			96
Net trading gains (losses) related to MSR hedging	1,066			18,304			(17,238		)	(94	)
Total mortgage banking income	$	63,960		$	50,134		$	13,826		28	%

Total mortgage originations (in millions)	$	3,022		$	2,536		$	486		19	%
Capitalized mortgage servicing rights(2)	189,019			134,397			54,622			41
Total mortgages serviced for others (in millions)(2)	19,111			16,211			2,900			18
MSR % of investor servicing portfolio	0.99		%	0.83		%	0.16		%	19

Net impact of MSR hedging
MSR valuation adjustment(1)	$	(1,196	)	$	(26,629	)	$	25,433		96	%
Net trading gains (losses) related to MSR hedging	1,066			18,304			(17,238		)	(94	)
Net gain (loss) on MSR hedging	$	(130	)	$	(8,325	)	$	8,195		98	%


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


(2)	At period end.

Huntington Bancshares Incorporated

Year To Date Credit Reserves Analysis

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in thousands)	2017			2016
Allowance for loan and lease losses, beginning of period	$	638,413		$	597,843
Loan and lease losses	(127,163		)	(103,237		)
Recoveries of loans previously charged off	51,685			77,930
Net loan and lease losses	(75,478		)	(25,307		)
Provision for loan and lease losses	105,136			50,424
Allowance of assets sold or transferred to loans held for sale	(75		)	104
Allowance for loan and lease losses, end of period	667,996			623,064
Allowance for unfunded loan commitments and letters of credit, beginning of period	$	97,879		$	72,081
Provision for (reduction in) unfunded loan commitments and letters of credit losses	(12,520		)	1,667
Allowance for unfunded loan commitments and letters of credit, end of period	85,359			73,748
Total allowance for credit losses	$	753,355		$	696,812
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	0.98		%	1.19		%
Nonaccrual loans and leases (NALs)	183			135
Nonperforming assets (NPAs)	161			127
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.11		%	1.33		%
Nonaccrual loans and leases (NALs)	207			151
Nonperforming assets (NPAs)	181			142

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in thousands)	2017			2016
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	20,966		$	10,216
Commercial real estate:
Construction	(3,054		)	(481		)
Commercial	(2,743		)	(17,668		)
Commercial real estate	(5,797		)	(18,149		)
Total commercial	15,169			(7,933		)
Consumer:
Automobile	20,725			11,090
Home equity	2,880			4,759
Residential mortgage	3,647			2,423
RV and marine finance	4,238			—
Other consumer	28,819			14,968
Total consumer	60,309			33,240
Total net charge-offs	$	75,478		$	25,307


	Six Months Ended June 30,
	2017			2016
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.15		%	0.10		%
Commercial real estate:
Construction	(0.50		)	(0.11		)
Commercial	(0.09		)	(0.82		)
Commercial real estate	(0.16		)	(0.70		)
Total commercial	0.09			(0.06		)
Consumer:
Automobile	0.37			0.22
Home equity	0.06			0.11
Residential mortgage	0.09			0.08
RV and marine finance	0.43			—
Other consumer	5.93			5.04
Total consumer	0.38			0.27
Net charge-offs as a % of average loans	0.22		%	0.10		%

Huntington Bancshares Incorporated

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

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in thousands)	2017			2016
Nonaccrual loans and leases (NALs): (1)
Commercial and industrial	$	195,279		$	289,811
Commercial real estate	16,763			23,663
Automobile	3,825			5,049
Residential mortgage	80,306			85,174
RV and marine finance	341			—
Home equity	67,940			56,845
Other consumer	2			5
Total nonaccrual loans and leases	364,456			460,547
Other real estate, net:
Residential	26,890			26,653
Commercial	16,926			2,248
Total other real estate, net	43,816			28,901
Other NPAs(2)	6,906			376
Total nonperforming assets (4)	$	415,178		$	489,824

Nonaccrual loans and leases as a % of total loans and leases	0.54		%	0.88		%
NPA ratio(3)	0.61			0.93



	Six Months Ended June 30,
(dollar amounts in thousands)	2017			2016
Nonperforming assets, beginning of period	$	480,901		$	398,923
New nonperforming assets	213,944			315,284
Returns to accruing status	(55,484		)	(32,937		)
Loan and lease losses	(51,169		)	(65,885		)
Payments	(153,130		)	(110,106		)
Sales and held-for-sale transfers	(19,884		)	(15,455		)
Nonperforming assets, end of period (3)	$	415,178		$	489,824


(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)



	Six Months Ended June 30,
(dollar amounts in thousands)	2017			2016
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	21,501		$	5,616
Commercial real estate	17,040			10,799
Automobile	8,594			5,452
Residential mortgage (excluding loans guaranteed by the U.S. Government)	16,742			11,383
RV and marine finance	2,464			—
Home equity	18,459			7,579
Other consumer	3,143			1,645
Total, excl. loans guaranteed by the U.S. Government	87,943			42,474
Add: loans guaranteed by U.S. Government	48,417			56,105
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	136,360		$	98,579
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.13		%	0.08		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.07			0.11
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.20			0.19
Accruing troubled debt restructured loans:
Commercial and industrial	$	270,372		$	232,112
Commercial real estate	74,429			85,015
Automobile	28,140			25,892
Home equity	268,731			203,047
Residential mortgage	238,087			256,859
RV and marine finance	950			—
Other consumer	4,017			4,522
Total accruing troubled debt restructured loans	$	884,726		$	807,447
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	89,757		$	77,592
Commercial real estate	3,823			6,833
Automobile	4,291			4,907
Home equity	28,667			21,145
Residential mortgage	55,590			63,638
RV and marine finance	381			—
Other consumer	109			142
Total nonaccruing troubled debt restructured loans	$	182,618		$	174,257

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 21, 2017

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports