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/	hban20170930_8kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20170930_8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

September 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
	September 30,			June 30,			September 30,			Percent Changes vs.
(amounts in thousands, except per share amounts and as noted)	2017			2017			2016			2Q17		3Q16
Net interest income(3)	$	770,642		$	756,581		$	635,988		2	%	21	%
FTE adjustment	(12,209		)	(12,069		)	(10,598		)	1		15
Net interest income	758,433			744,512			625,390			2		21
Provision for credit losses	43,590			24,978			63,805			75		(32	)
Noninterest income	330,097			325,218			302,415			2		9
Noninterest expense	680,428			694,364			712,247			(2	)	(4	)
Income before income taxes	364,512			350,388			151,753			4		140
Provision for income taxes	89,944			78,647			24,749			14		263
Net income	274,568			271,741			127,004			1		116
Dividends on preferred shares	18,903			18,889			18,537			—		—
Net income applicable to common shares	$	255,665		$	252,852		$	108,467		1	%	136	%

Net income per common share - diluted	$	0.23		$	0.23		$	0.11		—	%	109	%
Cash dividends declared per common share	0.08			0.08			0.07			—		14
Tangible book value per common share at end of period	6.85			6.74			6.48			2		6
Average common shares - basic	1,086,038			1,088,934			938,578			—		16
Average common shares - diluted	1,106,491			1,108,527			952,081			—		16
Ending common shares outstanding	1,080,946			1,090,016			1,084,783			(1	)	—
Return on average assets	1.08		%	1.09		%	0.58		%
Return on average common shareholders’ equity	10.5			10.6			5.4
Return on average tangible common shareholders’ equity(2)	14.1			14.4			7.0
Net interest margin(3)	3.29			3.31			3.18
Efficiency ratio(4)	60.5			62.9			75.0
Effective tax rate	24.7			22.4			16.3
Average total assets (millions)	$	101,290		$	100,121		$	86,898		1		17
Average earning assets (millions)	92,849			91,728			79,687			1		17
Average loans and leases (millions)	68,276			67,345			60,722			1		12
Average loans and leases - linked quarter annualized growth rate	5.5		%	2.2		%	67.7		%
Average total deposits (millions)	$	77,544		$	76,553		$	66,502		1		17
Average core deposits(5) (millions)	73,549			72,291			62,022			2		19
Average core deposits - linked quarter annualized growth rate	7.0		%	4.4		%	78.1		%
Average shareholders’ equity (millions)	$	10,745		$	10,594		$	8,994		1		19
Average common total shareholders' equity (millions)	9,674			9,523			7,972			2		21
Average tangible common shareholders' equity (millions)	7,443			7,283			6,509			2		14
Total assets at end of period (millions)	101,988			101,407			100,765			1		1
Total shareholders’ equity at end of period (millions)	10,699			10,654			10,387			—		3

NCOs as a % of average loans and leases	0.25		%	0.21		%	0.26		%
NAL ratio	0.49			0.54			0.61
NPA ratio(6)	0.56			0.61			0.72
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	0.98			0.98			0.93
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			1.11			1.06
ACL as a % of NALs	223			207			174
ACL as a % of NPAs	195			181			148
Common equity tier 1 risk-based capital ratio(7)	9.94			9.88			9.09
Tangible common equity / tangible asset ratio(8)	7.42			7.41			7.14

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

Huntington Bancshares Incorporated

Year to Date Key Statistics(1)

(Unaudited)



	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except as noted)	2017			2016			Amount			Percent
Net interest income(3)	$	2,269,256		$	1,664,185		$	605,071		36	%
FTE adjustment	(36,336		)	(29,848		)	(6,488		)	22
Net interest income	2,232,920			1,634,337			598,583			37
Provision for credit losses	136,206			115,896			20,310			18
Noninterest income	967,778			815,394			152,384			19
Noninterest expense	2,082,214			1,726,988			355,226			21
Income before income taxes	982,278			606,847			375,431			62
Provision for income taxes	227,875			133,989			93,886			70
Net Income	754,403			472,858			281,545			60
Dividends on preferred shares	56,670			46,409			10,261			22
Net income applicable to common shares	$	697,733		$	426,449		$	271,284		64	%

Net income per common share - diluted	$	0.63		$	0.50		$	0.13		26	%
Cash dividends declared per common share	0.24			0.21			0.03			14

Average common shares - basic	1,087,115			844,167			242,948			29
Average common shares - diluted	1,107,878			856,934			250,944			29

Return on average assets	1.00		%	0.82		%
Return on average common shareholders’ equity	9.8			8.2
Return on average tangible common shareholders’ equity(2)	13.3			9.8
Net interest margin(3)	3.30			3.12
Efficiency ratio(4)	63.0			69.0
Effective tax rate	23.2			22.1

Average total assets (millions)	$	100,589		$	77,241		$	23,348		30
Average earning assets (millions)	91,913			71,292			20,621			29
Average loans and leases (millions)	67,539			54,447			13,092			24
Average total deposits (millions)	76,684			58,993			17,691			30
Average core deposits(5) (millions)	72,454			55,119			17,335			31
Average shareholders’ equity (millions)	10,588			7,708			2,880			37
Average common total shareholders' equity (millions)	9,517			6,924			2,593			37
Average tangible common shareholders' equity (millions)	7,277			5,961			1,316			22

NCOs as a % of average loans and leases	0.23		%	0.16		%
NAL ratio	0.49			0.61
NPA ratio(6)	0.56			0.72

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)	September 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



	September 30,			December 31,
(dollar amounts in thousands, except number of shares)	2017			2016			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,193,738		$	1,384,770		(14	)%
Interest-bearing deposits in banks	50,090			58,267			(14	)
Trading account securities	88,488			133,295			(34	)
Loans held for sale	651,734			512,951			27
Available-for-sale and other securities	15,453,061			15,562,837			(1	)
Held-to-maturity securities	8,688,399			7,806,939			11
Loans and leases(1)	68,587,296			66,961,996			2
Allowance for loan and lease losses	(675,486		)	(638,413		)	6
Net loans and leases	67,911,810			66,323,583			2
Bank owned life insurance	2,459,807			2,432,086			1
Premises and equipment	853,290			815,508			5
Goodwill	1,992,849			1,992,849			—
Other intangible assets	359,844			402,458			(11	)
Servicing rights	229,746			225,578			2
Accrued income and other assets	2,055,270			2,062,976			—
Total assets	$	101,988,126		$	99,714,097		2	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	78,445,113		$	75,607,717		4	%
Short-term borrowings	1,829,549			3,692,654			(50	)
Long-term debt	9,200,707			8,309,159			11
Accrued expenses and other liabilities	1,813,908			1,796,421			1
Total liabilities	91,289,277			89,405,951			2

Shareholders' equity
Preferred stock	1,071,286			1,071,227			—
Common stock	10,844			10,886			—
Capital surplus	9,820,600			9,881,277			(1	)
Less treasury shares, at cost	(35,133		)	(27,384		)	28
Accumulated other comprehensive loss	(369,963		)	(401,016		)	(8	)
Retained (deficit) earnings	201,215			(226,844		)	(189	)
Total shareholders’ equity	10,698,849			10,308,146			4
Total liabilities and shareholders’ equity	$	101,988,126		$	99,714,097		2	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	1,084,366,589			1,088,641,251
Common shares outstanding	1,080,946,315			1,085,688,538
Treasury shares outstanding	3,420,274			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)



	September 30,				June 30,				March 31,				December 31,				September 30,
(dollar amounts in millions)	2017				2017				2017				2016				2016
Ending Balances by Type:
Commercial:
Commercial and industrial	$	27,469	40	%	$	27,969	41	%	$	28,176	42	%	$	28,059	42	%	$	27,668	42	%
Commercial real estate:
Construction	1,182		2		1,145		2		1,107		2		1,446		2		1,414		2
Commercial	6,024		9		6,000		9		5,986		9		5,855		9		5,842		9
Commercial real estate	7,206		11		7,145		11		7,093		11		7,301		11		7,256		11
Total commercial	34,675		51		35,114		52		35,269		53		35,360		53		34,924		53
Consumer:
Automobile	11,876		17		11,555		17		11,155		17		10,969		16		10,791		16
Home equity	9,985		15		9,966		15		9,974		15		10,106		15		10,120		15
Residential mortgage	8,616		13		8,237		12		7,829		12		7,725		12		7,665		12
RV and marine finance	2,371		3		2,178		3		1,935		2		1,846		3		1,840		3
Other consumer	1,064		1		1,009		1		936		1		956		1		964		1
Total consumer	33,912		49		32,945		48		31,829		47		31,602		47		31,380		47
Total loans and leases	$	68,587	100	%	$	68,059	100	%	$	67,098	100	%	$	66,962	100	%	$	66,304	100	%



	September 30,					June 30,				March 31,				December 31,				September 30,
(dollar amounts in millions)	2017					2017				2017				2016				2016
Ending Balances by Business Segment:
Consumer and Business Banking(1)	$	20,921		31	%	$	20,663	31	%	$	20,378	31	%	$	20,433	30	%	$	20,427	31	%
Commercial Banking	19,082			28		19,137		28		19,105		28		19,327		29		19,217		29
CREVF	23,577			34		23,302		34		22,791		34		22,487		34		22,040		33
RBHPCG	5,012			7		4,888		7		4,690		7		4,610		7		4,558		7
Treasury / Other	(5		)	—		69		—		134		—		105		—		62		—
Total loans and leases	$	68,587		100	%	$	68,059	100	%	$	67,098	100	%	$	66,962	100	%	$	66,304	100	%

Average Balances by Business Segment:
Consumer and Business Banking(1)	$	20,769		31	%	$	20,525	31	%	$	20,433	30	%	$	20,420	31	%	$	18,431	30	%
Commercial Banking	19,005			28		18,948		28		19,202		29		19,069		29		17,218		28
CREVF	23,446			34		23,001		34		22,620		34		22,220		33		20,698		34
RBHPCG	4,937			7		4,758		7		4,640		7		4,572		7		4,266		8
Treasury / Other	119			—		113		—		86		—		124		—		109		—
Total loans and leases	$	68,276		100	%	$	67,345	100	%	$	66,981	100	%	$	66,405	100	%	$	60,722	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)



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

Ending Balances by Type:
Demand deposits - noninterest-bearing	$	22,225	28	%	$	21,420	28	%	$	21,489	28	%	$	22,836	30	%	$	23,426	30	%
Demand deposits - interest-bearing	18,343		23		17,113		23		18,618		24		15,676		21		15,730		20
Money market deposits	20,553		26		19,423		26		18,664		24		18,407		24		18,604		24
Savings and other domestic deposits	11,441		15		11,758		15		12,043		16		11,975		16		12,418		16
Core certificates of deposit	2,009		3		2,088		3		2,188		3		2,535		3		2,724		4
Total core deposits	74,571		95		71,802		95		73,002		95		71,429		94		72,902		94
Other domestic deposits of $250,000 or more	418		1		441		1		524		1		394		1		391		1
Brokered deposits and negotiable CDs	3,456		4		3,690		4		3,897		4		3,785		5		3,972		5
Deposits in foreign offices	—		—		—		—		—		—		—		—		140		—
Total deposits	$	78,445	100	%	$	75,933	100	%	$	77,423	100	%	$	75,608	100	%	$	77,405	100	%
Total core deposits:
Commercial	$	35,516	48	%	$	32,201	45	%	$	32,963	45	%	$	31,887	45	%	$	32,936	45	%
Consumer	39,055		52		39,601		55		40,039		55		39,542		55		39,966		55
Total core deposits	$	74,571	100	%	$	71,802	100	%	$	73,002	100	%	$	71,429	100	%	$	72,902	100	%

Ending Balances by Business Segment:
Consumer and Business Banking(1)	$	45,694	58	%	$	45,972	60	%	$	46,153	60	%	$	45,356	60	%	$	45,431	59	%
Commercial Banking	20,795		26		17,867		24		19,042		25		18,053		24		19,296		25
CREVF	2,052		3		1,944		3		1,890		2		1,893		3		1,777		2
RBHPCG	5,944		8		5,883		8		5,982		8		6,214		8		5,982		8
Treasury / Other(2)	3,960		5		4,267		5		4,356		5		4,092		5		4,919		6
Total deposits	$	78,445	100	%	$	75,933	100	%	$	77,423	100	%	$	75,608	100	%	$	77,405	100	%



	September 30,				June 30,				March 31,				December 31,				September 30,
(dollar amounts in millions)	2017				2017				2017				2016				2016
Average Balances by Business Segment:
Consumer and Business Banking(1)	$	45,511	59	%	$	45,704	60	%	$	45,215	59	%	$	45,564	60	%	$	38,370	58	%
Commercial Banking	20,152		26		18,719		24		18,731		25		18,673		24		16,764		25
CREVF	1,983		3		1,850		2		1,800		2		1,891		2		1,707		3
RBHPCG	5,826		7		5,937		8		5,918		8		6,084		8		5,365		8
Treasury / Other(2)	4,072		5		4,343		6		4,275		6		4,674		6		4,296		6
Total deposits	$	77,544	100	%	$	76,553	100	%	$	75,939	100	%	$	76,886	100	%	$	66,502	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)
	September 30,			June 30,			March 31,			December 31,			September 30,			Percent Changes vs.
(dollar amounts in millions)	2017			2017			2017			2016			2016			2Q17		3Q16
Assets
Interest-bearing deposits in banks	$	102		$	102		$	100		$	110		$	95		—	%	8	%
Loans held for sale	678			525			415			2,507			695			29		(2	)
Securities:
Available-for-sale and other securities:
Taxable	12,275			13,135			12,801			13,734			9,785			(7	)	25
Tax-exempt	3,161			3,104			3,049			3,136			2,854			2		11
Total available-for-sale and other securities	15,436			16,239			15,850			16,870			12,639			(5	)	22
Trading account securities	92			91			137			139			49			2		88
Held-to-maturity securities - taxable	8,264			7,427			7,656			5,432			5,487			11		51
Total securities	23,793			23,756			23,643			22,441			18,175			—		31
Loans and leases:(1)
Commercial:
Commercial and industrial	27,643			27,992			27,922			27,727			24,957			(1	)	11
Commercial real estate:
Construction	1,152			1,130			1,314			1,413			1,132			2		2
Commercial	6,064			5,940			6,039			5,805			5,227			2		16
Commercial real estate	7,216			7,070			7,353			7,218			6,359			2		13
Total commercial	34,859			35,062			35,276			34,945			31,316			(1	)	11
Consumer:
Automobile	11,713			11,324			11,063			10,866			11,402			3		3
Home equity	9,960			9,958			10,072			10,101			9,260			—		8
Residential mortgage	8,402			7,979			7,777			7,690			7,012			5		20
RV and marine finance	2,296			2,039			1,874			1,844			915			13		151
Other consumer	1,046			983			919			959			817			7		28
Total consumer	33,417			32,283			31,705			31,460			29,406			4		14
Total loans and leases	68,276			67,345			66,981			66,405			60,722			1		12
Allowance for loan and lease losses	(672		)	(672		)	(636		)	(614		)	(623		)	—		8
Net loans and leases	67,604			66,673			66,345			65,791			60,099			1		12
Total earning assets	92,849			91,728			91,139			91,463			79,687			1		17
Cash and due from banks	1,299			1,287			2,011			1,538			1,325			1		(2	)
Intangible assets	2,359			2,373			2,387			2,421			1,547			(1	)	52
All other assets	5,455			5,405			5,442			5,559			4,962			1		10
Total assets	$	101,290		$	100,121		$	100,343		$	100,367		$	86,898		1	%	17	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	21,723		$	21,599		$	21,730		$	23,250		$	20,033		1	%	8	%
Demand deposits - interest-bearing	17,878			17,445			16,805			15,294			12,362			2		45
Total demand deposits	39,601			39,044			38,535			38,544			32,395			1		22
Money market deposits	20,314			19,212			18,653			18,618			18,453			6		10
Savings and other domestic deposits	11,590			11,889			11,970			12,272			8,889			(3	)	30
Core certificates of deposit	2,044			2,146			2,342			2,636			2,285			(5	)	(11	)
Total core deposits	73,549			72,291			71,500			72,070			62,022			2		19
Other domestic deposits of $250,000 or more	432			479			470			391			382			(10	)	13
Brokered deposits and negotiable CDs	3,563			3,783			3,969			4,273			3,904			(6	)	(9	)
Deposits in foreign offices	—			—			—			152			194			—		—
Total deposits	77,544			76,553			75,939			76,886			66,502			1		17
Short-term borrowings	2,391			2,687			3,792			2,628			1,306			(11	)	83
Long-term debt	8,949			8,730			8,529			8,594			8,488			3		5
Total interest-bearing liabilities	67,161			66,371			66,530			64,858			56,263			1		19
All other liabilities	1,661			1,557			1,661			1,833			1,608			7		3
Shareholders’ equity	10,745			10,594			10,422			10,426			8,994			1		19
Total liabilities and shareholders’ equity	$	101,290		$	100,121		$	100,343		$	100,367		$	86,898		1	%	17	%


(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
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollar amounts in thousands)	2017		2017		2017		2016		2016
Assets
Interest-bearing deposits in banks	$	452	$	391	$	271	$	177	$	152
Loans held for sale	6,494		4,892		3,958		18,477		6,135
Securities:
Available-for-sale and other securities:
Taxable	74,410		78,292		76,285		83,604		57,572
Tax-exempt	28,583		28,760		28,750		28,245		21,474
Total available-for-sale and other securities	102,993		107,052		105,035		111,849		79,046
Trading account securities	37		57		38		62		71
Held-to-maturity securities - taxable	48,743		44,276		45,195		33,005		33,098
Total securities	151,773		151,385		150,268		144,916		112,215
Loans and leases:
Commercial:
Commercial and industrial	286,330		286,054		277,812		271,715		234,853
Commercial real estate:
Construction	13,398		12,159		12,959		13,172		10,866
Commercial	63,266		59,677		55,746		52,555		47,353
Commercial real estate	76,664		71,836		68,705		65,728		58,219
Total commercial	362,994		357,890		346,517		337,442		293,072
Consumer:
Automobile	106,152		100,177		96,934		97,482		96,585
Home equity	118,574		114,388		110,545		107,637		98,014
Residential mortgage	76,749		72,987		70,614		68,841		63,217
RV and marine finance	31,446		28,313		26,001		26,141		13,102
Other consumer	30,562		28,070		27,310		26,305		22,452
Total consumer	363,483		343,935		331,404		326,406		293,370
Total loans and leases	726,477		701,825		677,921		663,848		586,442
Total earning assets	$	885,196	$	858,493	$	832,418	$	827,418	$	704,944

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	10,450		8,847		6,366		4,230		3,430
Total demand deposits	10,450		8,847		6,366		4,230		3,430
Money market deposits	18,450		14,786		12,057		11,022		10,945
Savings and other domestic deposits	5,920		6,126		6,573		7,631		4,604
Core certificates of deposit	3,748		3,005		2,254		1,931		2,469
Total core deposits	38,568		32,764		27,250		24,814		21,448
Other domestic deposits of $250,000 or more	661		586		523		379		386
Brokered deposits and negotiable CDs	10,382		8,937		7,016		5,186		4,336
Deposits in foreign offices	—		—		—		51		63
Total deposits	49,611		42,287		34,789		30,430		26,233
Short-term borrowings	5,713		5,204		5,866		2,370		959
Long-term debt	59,230		54,421		49,730		47,077		41,764
Total interest bearing liabilities	114,554		101,912		90,385		79,877		68,956
Net interest income	$	770,642	$	756,581	$	742,033	$	747,541	$	635,988


(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)
	September 30,		June 30,		March 31,		December 31,		September 30,
Fully-taxable equivalent basis(1)	2017		2017		2017		2016		2016
Assets
Interest-bearing deposits in banks	1.77	%	1.53	%	1.09	%	0.64	%	0.64	%
Loans held for sale	3.83		3.73		3.82		2.95		3.53
Securities:
Available-for-sale and other securities:
Taxable	2.42		2.38		2.38		2.43		2.35
Tax-exempt	3.62		3.71		3.77		3.60		3.01
Total available-for-sale and other securities	2.67		2.64		2.65		2.65		2.50
Trading account securities	0.16		0.25		0.11		0.18		0.58
Held-to-maturity securities - taxable	2.36		2.38		2.36		2.43		2.41
Total securities	2.55		2.55		2.54		2.58		2.47
Loans and leases:(3)
Commercial:
Commercial and industrial	4.05		4.04		3.98		3.83		3.68
Commercial real estate:
Construction	4.55		4.26		3.95		3.65		3.76
Commercial	4.08		3.97		3.69		3.54		3.54
Commercial real estate	4.16		4.02		3.74		3.56		3.58
Total commercial	4.07		4.04		3.93		3.78		3.66
Consumer:
Automobile	3.60		3.55		3.55		3.57		3.37
Home equity	4.72		4.61		4.45		4.24		4.21
Residential mortgage	3.65		3.66		3.63		3.58		3.61
RV and marine finance	5.43		5.57		5.63		5.64		5.70
Other consumer	11.59		11.47		12.05		10.91		10.93
Total consumer	4.32		4.27		4.23		4.13		3.97
Total loans and leases	4.20		4.15		4.07		3.95		3.81
Total earning assets	3.78		3.75		3.70		3.60		3.52
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.23		0.20		0.15		0.11		0.11
Total demand deposits	0.10		0.09		0.07		0.04		0.04
Money market deposits	0.36		0.31		0.26		0.24		0.24
Savings and other domestic deposits	0.20		0.21		0.22		0.25		0.21
Core certificates of deposit	0.73		0.56		0.39		0.29		0.43
Total interest-bearing core deposits	0.30		0.26		0.22		0.20		0.20
Other domestic deposits of $250,000 or more	0.61		0.49		0.45		0.39		0.40
Brokered deposits and negotiable CDs	1.16		0.95		0.72		0.48		0.44
Deposits in foreign offices	—		—		—		0.13		0.13
Total interest-bearing deposits	0.35		0.31		0.26		0.23		0.22
Short-term borrowings	0.95		0.78		0.63		0.36		0.29
Long-term debt	2.65		2.49		2.33		2.19		1.97
Total interest-bearing liabilities	0.68		0.61		0.54		0.48		0.49
Net interest rate spread	3.10		3.14		3.16		3.12		3.03
Impact of noninterest-bearing funds on margin	0.19		0.17		0.14		0.13		0.15
Net interest margin	3.29	%	3.31	%	3.30	%	3.25	%	3.18	%

Commercial Loan Derivative Impact

(Unaudited)



	Average Rates
	2017		2017		2017		2016		2016
Fully-taxable equivalent basis(1)	Third		Second		First		Fourth		Third
Commercial loans(2)(3)	4.10	%	4.06	%	3.93	%	3.76	%	3.62	%
Impact of commercial loan derivatives	(0.03	)	(0.02	)	—		0.02		0.04
Total commercial - as reported	4.07	%	4.04	%	3.93	%	3.78	%	3.66	%

Average 30 day LIBOR	1.23	%	1.06	%	0.80	%	0.59	%	0.51	%


(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
	September 30,			June 30,		March 31,			December 31,			September 30,
(dollar amounts in thousands, except share amounts)	2017			2017		2017			2016			2016
Interest income	$	872,987		$	846,424	$	820,360		$	814,858		$	694,346
Interest expense	114,554			101,912		90,385			79,877			68,956
Net interest income	758,433			744,512		729,975			734,981			625,390
Provision for credit losses	43,590			24,978		67,638			74,906			63,805
Net interest income after provision for credit losses	714,843			719,534		662,337			660,075			561,585
Service charges on deposit accounts	90,681			87,582		83,420			91,577			86,847
Cards and payment processing income	53,647			52,485		47,169			49,113			44,320
Mortgage banking income	33,615			32,268		31,692			37,520			40,603
Trust and investment management services	33,531			32,747		34,271			34,304			29,158
Insurance income	13,992			15,843		15,264			16,486			15,865
Brokerage income	14,458			16,294		15,758			17,014			14,719
Capital markets fees	21,719			16,836		14,200			18,730			14,750
Bank owned life insurance income	16,453			15,322		17,542			17,067			14,452
Gain on sale of loans	13,877			12,002		12,822			24,987			7,506
Securities gains (losses)	(33		)	135		(8		)	(1,771		)	1,031
Other income	38,157			43,704		40,333			29,310			33,164
Total noninterest income	330,097			325,218		312,463			334,337			302,415
Personnel costs	377,088			391,997		382,000			359,755			405,024
Outside data processing and other services	79,586			75,169		87,202			88,695			91,133
Equipment	45,458			42,924		46,700			59,666			40,792
Net occupancy	55,124			52,613		67,700			49,450			41,460
Professional services	15,227			18,190		18,295			23,165			47,075
Marketing	16,970			18,843		13,923			21,478			14,438
Deposit and other insurance expense	18,514			20,418		20,099			15,772			14,940
Amortization of intangibles	14,017			14,242		14,355			14,099			9,046
Other expense	58,444			59,968		57,148			49,417			48,339
Total noninterest expense	680,428			694,364		707,422			681,497			712,247
Income before income taxes	364,512			350,388		267,378			312,915			151,753
Provision for income taxes	89,944			78,647		59,284			73,952			24,749
Net income	274,568			271,741		208,094			238,963			127,004
Dividends on preferred shares	18,903			18,889		18,878			18,865			18,537
Net income applicable to common shares	$	255,665		$	252,852	$	189,216		$	220,098		$	108,467

Average common shares - basic	1,086,038			1,088,934		1,086,374			1,085,253			938,578
Average common shares - diluted	1,106,491			1,108,527		1,108,617			1,104,358			952,081

Per common share
Net income - basic	$	0.24		$	0.23	$	0.17		$	0.20		$	0.12
Net income - diluted	0.23			0.23		0.17			0.20			0.11
Cash dividends declared	0.08			0.08		0.08			0.08			0.07

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	758,433		$	744,512	$	729,975		$	734,981		$	625,390
FTE adjustment	12,209			12,069		12,058			12,560			10,598
Net interest income(2)	770,642			756,581		742,033			747,541			635,988
Noninterest income	330,097			325,218		312,463			334,337			302,415
Total revenue(2)	$	1,100,739		$	1,081,799	$	1,054,496		$	1,081,878		$	938,403


(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
	September 30,			June 30,			March 31,			December 31,			September 30,			Percent Changes vs.
(dollar amounts in thousands, except as noted)	2017			2017			2017			2016			2016			2Q17		3Q16
Net origination and secondary marketing income	$	24,623		$	23,741		$	21,388		$	22,161		$	32,741		4	%	(25	)%
Net mortgage servicing income
Loan servicing income	12,829			12,888			13,014			12,601			11,656			—		10
Amortization of capitalized servicing	(7,492		)	(7,167		)	(6,683		)	(7,582		)	(7,681		)	5		(2	)
Operating income	5,337			5,721			6,331			5,019			3,975			(7	)	34
MSR valuation adjustment (1)	410			(3,151		)	1,955			24,981			2,505			(113	)	(84	)
Gains (losses) due to MSR hedging	186			1,636			(570		)	(17,503		)	(1,408		)	(89	)	(113	)
Net MSR risk management	596			(1,515		)	1,385			7,478			1,097			(139	)	(46	)
Total net mortgage servicing income	$	5,933		$	4,206		$	7,716		$	12,497		$	5,072		41	%	17	%
All other	3,059			4,321			2,588			2,862			2,790			(29	)	10
Mortgage banking income	$	33,615		$	32,268		$	31,692		$	37,520		$	40,603		4	%	(17	)%

Mortgage origination volume (in millions)	$	1,828		$	1,756		$	1,266		$	1,542		$	1,744		4	%	5	%
Mortgage origination volume for sale (in millions)	1,095			1,018			793			1,064			1,148			8		(5	)

Third party mortgage loans serviced (in millions) (2)	19,552			19,111			19,051			18,852			18,631			2		5
Mortgage servicing rights (2)	194,778			189,019			191,119			186,213			156,820			3		24
MSR % of investor servicing portfolio (2)	1.00		%	0.99		%	1.00		%	0.99		%	0.84		%	1	%	19	%


(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
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in thousands)	2017			2017			2017			2016			2016
Allowance for loan and lease losses, beginning of period	$	667,996		$	672,580		$	638,413		$	616,898		$	623,064
Loan and lease losses	(64,772		)	(56,448		)	(70,715		)	(64,809		)	(59,268		)
Recoveries of loans previously charged off	21,880			20,408			31,277			21,285			19,203
Net loan and lease losses	(42,892		)	(36,040		)	(39,438		)	(43,524		)	(40,065		)
Provision for loan and lease losses	50,383			31,457			73,679			65,460			53,523
Allowance of assets sold or transferred to loans held for sale	(1		)	(1		)	(74		)	(421		)	(19,624		)
Allowance for loan and lease losses, end of period	675,486			667,996			672,580			638,413			616,898
Allowance for unfunded loan commitments and letters of credit, beginning of period	85,359			91,838			97,879			88,433			73,748
Provision for (reduction in) unfunded loan commitments and letters of credit losses	(6,793		)	(6,479		)	(6,041		)	9,446			10,282
Fair value of acquired AULC	—			—			—			—			4,403
Allowance for unfunded loan commitments and letters of credit, end of period	78,566			85,359			91,838			97,879			88,433
Total allowance for credit losses, end of period	$	754,052		$	753,355		$	764,418		$	736,292		$	705,331
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	0.98		%	0.98		%	1.00		%	0.95		%	0.93		%
Nonaccrual loans and leases (NALs)	200			183			168			151			153
Nonperforming assets (NPAs)	175			161			147			133			130
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.10		%	1.11		%	1.14		%	1.10		%	1.06		%
Nonaccrual loans and leases	223			207			190			174			174
Nonperforming assets	195			181			167			153			148

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



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

Total loans
Commercial:
Commercial and industrial	$	13,317		$	12,870		$	8,096		$	15,674		$	19,225
Commercial real estate:
Construction	(870		)	83			(3,137		)	(1,332		)	(271		)
Commercial	(3,184		)	(3,638		)	895			(4,160		)	(2,427		)
Commercial real estate	(4,054		)	(3,555		)	(2,242		)	(5,492		)	(2,698		)
Total commercial	9,263			9,315			5,854			10,182			16,527
Consumer:
Automobile	9,619			8,318			12,407			13,132			7,769
Home equity	1,532			1,218			1,662			1,621			2,624
Residential mortgage	2,057			1,052			2,595			1,673			1,728
RV and marine finance	3,390			1,875			2,363			2,182			106
Other consumer	17,031			14,262			14,557			14,734			11,311
Total consumer	33,629			26,725			33,584			33,342			23,538
Total net charge-offs	$	42,892		$	36,040		$	39,438		$	43,524		$	40,065


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2017			2017			2017			2016			2016
Net charge-offs (recoveries)—annualized percentages:
Commercial:
Commercial and industrial	0.19		%	0.18		%	0.12		%	0.23		%	0.31		%
Commercial real estate:
Construction	(0.30		)	0.03			(0.96		)	(0.38		)	(0.10		)
Commercial	(0.21		)	(0.24		)	0.06			(0.29		)	(0.19		)
Commercial real estate	(0.22		)	(0.20		)	(0.12		)	(0.30		)	(0.17		)
Total commercial	0.11			0.11			0.07			0.12			0.21
Consumer:
Automobile	0.33			0.29			0.45			0.48			0.27
Home equity	0.06			0.05			0.07			0.06			0.11
Residential mortgage	0.10			0.05			0.13			0.09			0.10
RV and marine finance	0.59			0.37			0.50			0.47			0.05
Other consumer	6.51			5.81			6.33			6.14			5.54
Total consumer	0.40			0.33			0.42			0.42			0.32
Net charge-offs as a % of average loans	0.25		%	0.21		%	0.24		%	0.26		%	0.26		%

Huntington Bancshares Incorporated

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

(Unaudited)



	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in thousands)	2017			2017			2017			2016			2016
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	169,751		$	195,279		$	232,171		$	234,184		$	220,862
Commercial real estate	17,397			16,763			13,889			20,508			21,300
Automobile	4,076			3,825			4,881			5,766			4,777
Residential mortgage	75,251			80,306			80,686			90,502			88,155
RV and marine finance	309			341			106			245			96
Home equity	71,353			67,940			69,575			71,798			69,044
Other consumer	108			2			2			—			—
Total nonaccrual loans and leases	338,245			364,456			401,310			423,003			404,234
Other real estate:
Residential	26,449			26,890			31,786			30,932			34,421
Commercial	15,592			16,926			18,101			19,998			36,915
Total other real estate	42,041			43,816			49,887			50,930			71,336
Other NPAs (1)	6,677			6,906			6,910			6,968			—
Total nonperforming assets	$	386,963		$	415,178		$	458,107		$	480,901		$	475,570

Nonaccrual loans and leases as a % of total loans and leases	0.49		%	0.54		%	0.60		%	0.63		%	0.61		%
NPA ratio (2)	0.56			0.61			0.68			0.72			0.72
(NPA+90days)/(Loan+OREO) (3)	0.74			0.81			0.87			0.91			0.92



	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in thousands)	2017			2017			2017			2016			2016
Nonperforming assets, beginning of period	$	415,178		$	458,107		$	480,901		$	475,570		$	489,824
New nonperforming assets	85,222			89,394			124,550			150,368			166,966
Returns to accruing status	(37,993		)	(33,043		)	(22,441		)	(12,630		)	(81,086		)
Loan and lease losses	(22,938		)	(17,329		)	(33,840		)	(37,410		)	(31,500		)
Payments	(44,764		)	(70,523		)	(82,607		)	(33,038		)	(67,503		)
Sales and held-for-sale transfers	(7,742		)	(11,428		)	(8,456		)	(61,959		)	(1,131		)
Nonperforming assets, end of period	$	386,963		$	415,178		$	458,107		$	480,901		$	475,570


(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)



	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in thousands)	2017			2017			2017			2016			2016
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	14,083		$	21,501		$	15,054		$	18,148		$	20,188
Commercial real estate	9,550			17,040			14,499			17,215			21,260
Automobile	10,239			8,594			8,123			10,182			7,871
Residential mortgage (excluding loans guaranteed by the U.S. Government)	13,603			16,742			16,192			15,074			15,664
RV and marine finance	2,063			2,464			2,200			1,462			1,043
Home equity	16,150			18,459			15,453			11,508			12,997
Other consumer	3,753			3,143			3,370			3,895			2,988
Total, excl. loans guaranteed by the U.S. Government	69,441			87,943			74,891			77,484			82,011
Add: loans guaranteed by U.S. Government	49,229			48,417			53,052			51,878			52,665
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	118,670		$	136,360		$	127,943		$	129,362		$	134,676

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.10		%	0.13		%	0.11		%	0.12		%	0.12		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.07			0.07			0.08			0.08			0.08
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.17			0.20			0.19			0.19			0.20

Accruing troubled debt restructured loans:
Commercial and industrial	$	268,373		$	270,372		$	222,303		$	210,119		$	232,740
Commercial real estate	80,272			74,429			81,202			76,844			80,553
Automobile	28,973			28,140			27,968			26,382			27,843
Home equity	264,410			268,731			271,258			269,709			275,601
Residential mortgage	235,191			238,087			239,175			242,901			251,529
RV and marine finance	1,211			950			581			—			—
Other consumer	6,353			4,017			4,128			3,780			4,102
Total accruing troubled debt restructured loans	$	884,783		$	884,726		$	846,615		$	829,735		$	872,368

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	96,248		$	89,757		$	88,759		$	107,087		$	70,179
Commercial real estate	3,797			3,823			4,357			4,507			5,672
Automobile	4,076			4,291			4,763			4,579			4,437
Home equity	30,753			28,667			29,090			28,128			28,009
Residential mortgage	50,428			55,590			59,773			59,157			62,027
RV and marine finance	309			381			106			—			—
Other consumer	103			109			117			118			142
Total nonaccruing troubled debt restructured loans	$	185,714		$	182,618		$	186,965		$	203,576		$	170,466

Huntington Bancshares Incorporated

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

(Unaudited)



	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions, except per share amounts)	2017			2017			2017			2016			2016
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	10,699		$	10,654		$	10,437		$	10,308		$	10,387
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,076		)	(1,076		)	(1,076		)	(1,076		)	(1,076		)
Accumulated other comprehensive income offset	370			350			391			401			172
Goodwill and other intangibles, net of related taxes	(2,150		)	(2,161		)	(2,174		)	(2,126		)	(2,140		)
Deferred tax assets that arise from tax loss and credit carryforwards	(26		)	(27		)	(28		)	(21		)	(29		)
Common equity tier 1 capital	7,817			7,740			7,550			7,486			7,314
Additional tier 1 capital
Shareholders’ preferred equity	1,076			1,076			1,076			1,076			1,076
Other	(7		)	(7		)	(7		)	(15		)	(19		)
Tier 1 capital	8,886			8,809			8,619			8,547			8,371
Long-term debt and other tier 2 qualifying instruments	884			887			899			932			1,036
Qualifying allowance for loan and lease losses	754			753			764			736			705
Tier 2 capital	1,638			1,640			1,663			1,668			1,741
Total risk-based capital	$	10,525		$	10,449		$	10,282		$	10,215		$	10,112
Risk-weighted assets (RWA)(1)	$	78,631		$	78,366		$	77,559		$	78,263		$	80,513
Common equity tier 1 risk-based capital ratio(1)	9.94		%	9.88		%	9.74		%	9.56		%	9.09		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	8.96			8.98			8.76			8.70			9.89
Tier 1 risk-based capital ratio(1)	11.30			11.24			11.11			10.92			10.40
Total risk-based capital ratio(1)	13.39			13.33			13.26			13.05			12.56
Non-regulatory capital data:
Tangible common equity / RWA ratio(1)	9.41			9.37			9.18			8.92			8.74


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

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary



	September 30,		June 30,		March 31,		December 31,		September 30,
	2017		2017		2017		2016		2016
Common stock price, per share
High(1)	$	14.050	$	13.785	$	14.740	$	13.640	$	10.110
Low(1)	12.140		12.225		12.370		9.570		8.230
Close	13.960		13.520		13.390		13.220		9.860
Average closing price	13.152		12.949		13.663		11.627		9.522
Dividends, per share
Cash dividends declared per common share	$	0.08	$	0.08	$	0.08	$	0.08	$	0.07
Common shares outstanding
Average - basic	1,086,038		1,088,934		1,086,374		1,085,253		938,578
Average - diluted	1,106,491		1,108,527		1,108,617		1,104,358		952,081
Ending	1,080,946		1,090,016		1,087,120		1,085,689		1,084,783
Tangible book value per common share(2)	$	6.85	$	6.74	$	6.55	$	6.43	$	6.48

Non-regulatory capital



	September 30,			June 30,			March 31,			December 31,			September 30,
(dollar amounts in millions)	2017			2017			2017			2016			2016
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	10,699		$	10,654		$	10,437		$	10,308		$	10,387
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(1,993		)	(2,004		)
Less: other intangible assets	(360		)	(374		)	(388		)	(402		)	(429		)
Add: related deferred tax liability(2)	126			131			136			141			150
Total tangible equity	8,472			8,418			8,192			8,054			8,104
Less: preferred equity	(1,071		)	(1,071		)	(1,071		)	(1,071		)	(1,071		)
Total tangible common equity	$	7,401		$	7,347		$	7,121		$	6,983		$	7,033
Total assets	$	101,988		$	101,407		$	100,046		$	99,714		$	100,765
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(1,993		)	(2,004		)
Less: other intangible assets	(360		)	(374		)	(388		)	(402		)	(429		)
Add: related deferred tax liability(2)	126			131			136			141			150
Total tangible assets	$	99,761		$	99,171		$	97,801		$	97,460		$	98,482
Tangible equity / tangible asset ratio	8.49		%	8.49		%	8.38		%	8.26		%	8.23		%
Tangible common equity / tangible asset ratio	7.42			7.41			7.28			7.16			7.14
Other data:
Number of employees (Average full-time equivalent)	15,508			15,877			16,331			15,993			14,511
Number of domestic full-service branches(3)	958			996			996			1,115			1,129
ATM Count	1,860			1,860			1,855			1,891			1,979


(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)
	Nine Months Ended September 30,						Change
(dollar amounts in millions)	2017			2016			Amount			Percent
Assets
Interest-bearing deposits in banks	$	102		$	97		$	5		5	%
Loans held for sale	540			567			(27		)	(5	)
Securities:
Available-for-sale and other securities:
Taxable	12,735			7,781			4,954			64
Tax-exempt	3,105			2,576			529			21
Total available-for-sale and other securities	15,840			10,357			5,483			53
Trading account securities	107			43			64			149
Held-to-maturity securities - taxable	7,785			5,781			2,004			35
Total securities	23,732			16,181			7,551			47
Loans and leases:(1)
Commercial:
Commercial and industrial	27,852			22,326			5,526			25
Commercial real estate:
Construction	1,198			979			219			22
Commercial	6,014			4,621			1,393			30
Commercial real estate	7,212			5,600			1,612			29
Total commercial	35,064			27,926			7,138			26
Consumer:
Automobile	11,369			10,430			939			9
Home equity	9,983			8,708			1,275			15
Residential mortgage	8,055			6,406			1,649			26
RV and marine finance	2,071			307			1,764			575
Other consumer	997			670			327			49
Total consumer	32,475			26,521			5,954			22
Total loans and leases	67,539			54,447			13,092			24
Allowance for loan and lease losses	(660		)	(614		)	(46		)	7
Net loans and leases	66,879			53,833			13,046			24
Total earning assets	91,913			71,292			20,621			29
Cash and due from banks	1,530			1,114			416			37
Intangible assets	2,373			1,003			1,370			137
All other assets	5,433			4,446			987			22
Total assets	$	100,589		$	77,241		$	23,348		30	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	21,684		$	17,634		$	4,050		23	%
Demand deposits - interest-bearing	17,380			9,538			7,842			82
Total demand deposits	39,064			27,172			11,892			44
Money market deposits	19,399			19,220			179			1
Savings and other domestic deposits	11,815			6,541			5,274			81
Core certificates of deposit	2,176			2,186			(10		)	—
Total core deposits	72,454			55,119			17,335			31
Other domestic deposits of $250,000 or more	460			413			47			11
Brokered deposits and negotiable CDs	3,770			3,239			531			16
Deposits in foreign offices	—			222			(222		)	—
Total deposits	76,684			58,993			17,691			30
Short-term borrowings	2,952			1,161			1,791			154
Long-term debt	8,738			7,866			872			11
Total interest-bearing liabilities	66,690			50,386			16,304			32
All other liabilities	1,627			1,513			114			8
Shareholders’ equity	10,588			7,708			2,880			37
Total liabilities and shareholders’ equity	$	100,589		$	77,241		$	23,348		30	%


(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
	Nine Months Ended September 30,
(dollar amounts in thousands)	2017		2016
Assets
Interest-bearing deposits in banks	$	1,114	$	266
Loans held for sale	15,344		16,003
Securities:
Available-for-sale and other securities:
Taxable	228,987		138,178
Tax-exempt	86,093		62,727
Total available-for-sale and other securities	315,080		200,905
Trading account securities	132		222
Held-to-maturity securities - taxable	138,214		105,307
Total securities	453,426		306,434
Loans and leases:
Commercial:
Commercial and industrial	850,196		607,158
Commercial real estate:
Construction	38,516		27,295
Commercial	178,689		122,936
Commercial real estate	217,205		150,231
Total commercial	1,067,401		757,389
Consumer:
Automobile	303,247		252,876
Home equity	343,507		273,365
Residential mortgage	220,350		175,236
RV and marine finance	85,776		13,102
Other consumer	85,942		52,432
Total consumer	1,038,822		767,011
Total loans and leases	2,106,223		1,524,400
Total earning assets	$	2,576,107	$	1,847,103
Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—
Demand deposits - interest-bearing	25,663		7,048
Total demand deposits	25,663		7,048
Money market deposits	45,293		34,389
Savings and other domestic deposits	18,619		7,706
Core certificates of deposit	9,007		11,030
Total core deposits	98,582		60,173
Other domestic deposits of $250,000 or more	1,770		1,245
Brokered deposits and negotiable CDs	26,335		9,939
Deposits in foreign offices	—		217
Total deposits	126,687		71,574
Short-term borrowings	16,783		2,770
Long-term debt	163,381		108,574
Total interest-bearing liabilities	306,851		182,918
Net interest income	$	2,269,256	$	1,664,185


(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)
	Nine Months Ended September 30,
Fully-taxable equivalent basis(1)	2017		2016
Assets
Interest-bearing deposits in banks	1.46	%	0.37	%
Loans held for sale	3.79		3.76
Securities:
Available-for-sale and other securities:
Taxable	2.40		2.37
Tax-exempt	3.70		3.25
Total available-for-sale and other securities	2.65		2.59
Trading account securities	0.17		0.68
Held-to-maturity securities - taxable	2.37		2.43
Total securities	2.55		2.53
Loans and leases:(3)
Commercial:
Commercial and industrial	4.03		3.57
Commercial real estate:
Construction	4.24		3.66
Commercial	3.92		3.50
Commercial real estate	3.97		3.52
Total commercial	4.01		3.56
Consumer:
Automobile	3.57		3.24
Home equity	4.60		4.19
Residential mortgage	3.65		3.65
RV and marine finance	5.54		5.70
Other consumer	11.53		10.46
Total consumer	4.27		3.86
Total loans and leases	4.14		3.71
Total earning assets	3.75	%	3.46	%
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—	%	—	%
Demand deposits - interest-bearing	0.20		0.10
Total demand deposit	0.09		0.03
Money market deposits	0.31		0.24
Savings and other domestic deposits	0.21		0.16
Core certificates of deposit	0.55		0.67
Total interest-bearing core deposits	0.26		0.21
Other domestic deposits of $250,000 or more	0.51		0.40
Brokered deposits and negotiable CDs	0.93		0.41
Deposits in foreign offices	—		0.13
Total interest-bearing deposits	0.31		0.23
Short-term borrowings	0.76		0.32
Long-term debt	2.49		1.84
Total interest-bearing liabilities	0.61		0.48
Net interest rate spread	3.13		2.98
Impact of noninterest-bearing funds on margin	0.17		0.14
Net interest margin	3.30	%	3.12	%

Commercial Loan Derivative Impact

(Unaudited)



	YTD Average Rates
	Nine Months Ended September 30,
Fully-taxable equivalent basis(1)	2017		2016
Commercial loans(2)(3)	4.03	%	3.50	%
Impact of commercial loan derivatives	(0.02	)%	0.06	%
Total commercial - as reported	4.01	%	3.56	%

Average 30 day LIBOR	1.04	%	0.46	%


(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)



	Nine Months Ended September 30,				Change
(dollar amounts in thousands, except per share amounts)	2017		2016		Amount			Percent
Interest income	$	2,539,771	$	1,817,255	$	722,516		40	%
Interest expense	306,851		182,918		123,933			68
Net interest income	2,232,920		1,634,337		598,583			37
Provision for credit losses	136,206		115,896		20,310			18
Net interest income after provision for credit losses	2,096,714		1,518,441		578,273			38
Service charges on deposit accounts	261,683		232,722		28,961			12
Cards and payment processing income	153,301		119,951		33,350			28
Mortgage banking income	97,575		90,737		6,838			8
Trust and investment management services	100,549		74,998		25,551			34
Insurance income	45,099		48,037		(2,938		)	(6	)
Brokerage income	46,510		44,819		1,691			4
Capital market fees	52,755		40,797		11,958			29
Bank owned life insurance income	49,317		40,500		8,817			22
Gain on sale of loans	38,701		22,166		16,535			75
Securities gains (losses)	94		1,687		(1,593		)	(94	)
Other income	122,194		98,980		23,214			23
Total noninterest income	967,778		815,394		152,384			19
Personnel costs	1,151,085		989,369		161,716			16
Outside data processing and other services	241,957		216,047		25,910			12
Equipment	135,082		105,173		29,909			28
Net occupancy	175,437		103,640		71,797			69
Professional services	51,712		82,101		(30,389		)	(37	)
Marketing	49,736		41,479		8,257			20
Deposit and other insurance expense	59,031		38,335		20,696			54
Amortization of intangibles	42,614		16,357		26,257			161
Other expense	175,560		134,487		41,073			31
Total noninterest expense	2,082,214		1,726,988		355,226			21
Income before income taxes	982,278		606,847		375,431			62
Provision for income taxes	227,875		133,989		93,886			70
Net income	754,403		472,858		281,545			60
Dividends on preferred shares	56,670		46,409		10,261			22
Net income applicable to common shares	$	697,733	$	426,449	$	271,284		64	%
Average common shares - basic	1,087,115		844,167		242,948			29	%
Average common shares - diluted	1,107,878		856,934		250,944			29
Per common share
Net income - basic	$	0.64	$	0.51	$	0.13		25
Net income - diluted	0.63		0.50		0.13			26
Cash dividends declared	0.24		0.21		0.03			14
Revenue - fully taxable equivalent (FTE)
Net interest income	$	2,232,920	$	1,634,337	$	598,583		37
FTE adjustment(2)	36,336		29,848		6,488			22
Net interest income	2,269,256		1,664,185		605,071			36
Noninterest income	967,778		815,394		152,384			19
Total revenue(2)	$	3,237,034	$	2,479,579	$	757,455		31	%


(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)



	Nine Months Ended September 30,						Change
(dollar amounts in thousands, except as noted)	2017			2016			Amount			Percent
Net origination and secondary marketing income	$	69,752		$	78,136		(8,384		)	(11	)%
Net mortgage servicing income
Loan servicing income	38,731			33,803			4,928			15
Amortization of capitalized servicing	(21,342		)	(20,759		)	(583		)	(3	)
Operating income	17,389			13,044			4,345			33
MSR valuation adjustment (1)	(786		)	(24,124		)	23,338			97
Gains (losses) due to MSR hedging	1,252			16,896			(15,644		)	(93	)
Net MSR risk management	466			(7,228		)	7,694			(106	)
Total net mortgage servicing income	$	17,855		$	5,816		$	12,039		207	%
All other	9,968			6,785			3,183			47
Mortgage banking income	$	97,575		$	90,737		$	6,838		8	%

Mortgage origination volume (in millions)	$	4,850		$	4,280		$	570		13	%
Mortgage origination volume for sale (in millions)	2,906			2,758			148			5	%

Third party mortgage loans serviced (in millions) (2)	19,552			18,631			921			5
Mortgage servicing rights (2)	194,778			156,820			37,958			24
MSR % of investor servicing portfolio	1.00		%	0.84		%	0.16		%	19	%


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


(2)	At period end.

Huntington Bancshares Incorporated

Year To Date Credit Reserves Analysis

(Unaudited)



	Nine Months Ended September 30,
(dollar amounts in thousands)	2017			2016
Allowance for loan and lease losses, beginning of period	$	638,413		$	597,843
Loan and lease losses	(191,935		)	(162,505		)
Recoveries of loans previously charged off	73,565			97,133
Net loan and lease losses	(118,370		)	(65,372		)
Provision for loan and lease losses	155,519			103,947
Allowance of assets sold or transferred to loans held for sale	(76		)	(19,520		)
Allowance for loan and lease losses, end of period	675,486			616,898
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	(19,313		)	11,949
Allowance for unfunded loan commitments and letters of credit, end of period	78,566			88,433
Total allowance for credit losses	$	754,052		$	705,331
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	0.98		%	0.93		%
Nonaccrual loans and leases (NALs)	200			153
Nonperforming assets (NPAs)	175			130
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.10		%	1.06		%
Nonaccrual loans and leases (NALs)	223			174
Nonperforming assets (NPAs)	195			148

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)



	Nine Months Ended September 30,
(dollar amounts in thousands)	2017			2016
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	34,283		$	29,441
Commercial real estate:
Construction	(3,924		)	(752		)
Commercial	(5,927		)	(20,095		)
Commercial real estate	(9,851		)	(20,847		)
Total commercial	24,432			8,594
Consumer:
Automobile	30,344			18,859
Home equity	4,412			7,383
Residential mortgage	5,704			4,151
RV and marine finance	7,628			106
Other consumer	45,850			26,279
Total consumer	93,938			56,778
Total net charge-offs	$	118,370		$	65,372


	Nine Months Ended September 30,
	2017			2016
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.16		%	0.18		%
Commercial real estate:
Construction	(0.44		)	(0.10		)
Commercial	(0.13		)	(0.58		)
Commercial real estate	(0.18		)	(0.50		)
Total commercial	0.09			0.04
Consumer:
Automobile	0.36			0.24
Home equity	0.06			0.11
Residential mortgage	0.09			0.09
RV and marine finance	0.49			0.05
Other consumer	6.13			5.23
Total consumer	0.39			0.29
Net charge-offs as a % of average loans	0.23		%	0.16		%

Huntington Bancshares Incorporated

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

(Unaudited)



	Nine Months Ended September 30,
(dollar amounts in thousands)	2017			2016
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	169,751		$	220,862
Commercial real estate	17,397			21,300
Automobile	4,076			4,777
Residential mortgage	75,251			88,155
RV and marine finance	309			96
Home equity	71,353			69,044
Other consumer	108			—
Total nonaccrual loans and leases	338,245			404,234
Other real estate, net:
Residential	26,449			34,421
Commercial	15,592			36,915
Total other real estate, net	42,041			71,336
Other NPAs (1)	6,677			—
Total nonperforming assets (3)	$	386,963		$	475,570

Nonaccrual loans and leases as a % of total loans and leases	0.49		%	0.61		%
NPA ratio (2)	0.56			0.72



	Nine Months Ended September 30,
(dollar amounts in thousands)	2017			2016
Nonperforming assets, beginning of period	$	480,901		$	398,923
New nonperforming assets	299,166			482,250
Returns to accruing status	(93,477		)	(114,023		)
Loan and lease losses	(74,107		)	(97,385		)
Payments	(197,894		)	(177,609		)
Sales and held-for-sale transfers	(27,626		)	(16,586		)
Nonperforming assets, end of period (2)	$	386,963		$	475,570


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


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


(3)	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)



	Nine Months Ended September 30,
(dollar amounts in thousands)	2017			2016
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	14,083		$	20,188
Commercial real estate	9,550			21,260
Automobile	10,239			7,871
Residential mortgage (excluding loans guaranteed by the U.S. Government)	13,603			15,664
RV and marine finance	2,063			1,043
Home equity	16,150			12,997
Other consumer	3,753			2,988
Total, excl. loans guaranteed by the U.S. Government	69,441			82,011
Add: loans guaranteed by U.S. Government	49,229			52,665
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	118,670		$	134,676
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.10		%	0.12		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.07			0.08
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.17			0.20
Accruing troubled debt restructured loans:
Commercial and industrial	$	268,373		$	232,740
Commercial real estate	80,272			80,553
Automobile	28,973			27,843
Home equity	264,410			275,601
Residential mortgage	235,191			251,529
RV and marine finance	1,211			—
Other consumer	6,353			4,102
Total accruing troubled debt restructured loans	$	884,783		$	872,368
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	96,248		$	70,179
Commercial real estate	3,797			5,672
Automobile	4,076			4,437
Home equity	30,754			28,009
Residential mortgage	50,427			62,027
RV and marine finance	309			—
Other consumer	103			142
Total nonaccruing troubled debt restructured loans	$	185,714		$	170,466

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

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports