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/	hban20180331_8kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20180331_8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

March 31, 2018

Table of Contents



Quarterly Key Statistics	1

Consolidated Balance Sheets	3

Loans and Leases Composition	4

Deposits Composition	5

Consolidated Quarterly Average Balance Sheets	6

Consolidated Quarterly Net Interest Margin - Interest Income / Expense	7

Consolidated Quarterly Net Interest Margin - Yield	8

Selected Quarterly Income Statement Data	9

Quarterly Mortgage Banking Income	10

Quarterly Credit Reserves Analysis	11

Quarterly Net Charge-Off Analysis	12

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	13

Quarterly Accruing Past Due Loans and Leases and Accruing and Nonaccruing Troubled Debt Restructured Loans	14

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data	15

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data	16

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 21 percent and 35 percent for periods prior to January 1, 2018.

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
	March 31,			December 31,			March 31,			Percent Changes vs.
(amounts in millions, except per share amounts)	2018			2017			2017			4Q17		1Q17
Net interest income(3)	$	777		$	782		$	743		(1	)%	5	%
FTE adjustment	(7		)	(12		)	(13		)	42		46
Net interest income	770			770			730			—		5
Provision for credit losses	66			65			68			2		(3	)
Noninterest income	314			340			312			(8	)	1
Noninterest expense	633			633			707			—		(10	)
Income before income taxes	385			412			267			(7	)	44
Provision for income taxes	59			(20		)	59			395		—
Net income	326			432			208			(25	)	57
Dividends on preferred shares	12			19			19			(37	)	(37	)
Net income applicable to common shares	$	314		$	413		$	189		(24	)%	66	%

Net income per common share - diluted	$	0.28		$	0.37		$	0.17		(24	)%	65	%
Cash dividends declared per common share	0.11			0.11			0.08			—		38
Tangible book value per common share at end of period	7.12			6.97			6.55			2		9
Number of common shares repurchased (000)	3,007			9,785			—			(69	)	100
Average common shares - basic	1,083,836			1,077,397			1,086,374			1		—
Average common shares - diluted	1,124,778			1,130,117			1,108,617			—		1
Ending common shares outstanding	1,101,796			1,072,027			1,087,120			3		1
Return on average assets	1.27		%	1.67		%	0.84		%
Return on average common shareholders’ equity	13.0			17.0			8.2
Return on average tangible common shareholders’ equity(2)	17.5			22.7			11.3
Net interest margin(3)	3.30			3.30			3.30
Efficiency ratio(4)	56.8			54.9			65.7
Effective tax rate	15.3			(4.8		)	22.2
Average total assets	$	103,848		$	102,302		$	100,343		2		3
Average earning assets	95,412			93,937			91,139			2		5
Average loans and leases	70,484			68,940			66,981			2		5
Average loans and leases - linked quarter annualized growth rate	9.0		%	3.9		%	3.5		%
Average total deposits	$	76,946		$	77,737		$	75,939		(1	)	1
Average core deposits(5)	73,392			73,946			71,500			(1	)	3
Average core deposits - linked quarter annualized growth rate	(3.0		)%	2.2		%	(3.2		)%
Average shareholders’ equity	10,855			10,677			10,422			2		4
Average common total shareholders' equity	9,794			9,606			9,351			2		5
Average tangible common shareholders' equity	7,533			7,383			7,101			2		6
Total assets at end of period	104,246			104,185			100,046			—		4
Total shareholders’ equity at end of period	11,308			10,814			10,437			5		8

NCOs as a % of average loans and leases	0.21		%	0.24		%	0.24		%
NAL ratio	0.54			0.50			0.60
NPA ratio(6)	0.59			0.55			0.68
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.01			0.99			1.00
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period	1.13			1.11			1.14
ACL as a % of NALs	210			223			190
ACL as a % of NPAs	192			200			167
Common equity tier 1 risk-based capital ratio(7)	10.51			10.01			9.74
Tangible common equity / tangible asset ratio(8)	7.70			7.34			7.28

See Notes to the 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 21% tax rate and a 35% tax rate for periods prior to December 31, 2017.


(3)	On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.


(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)	March 31, 2018, 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, calculated at a 21% tax rate and a 35% tax rate for periods prior to December 31, 2017.

Huntington Bancshares Incorporated

Consolidated Balance Sheets



	March 31,			December 31,
(dollar amounts in millions, except number of shares)	2018			2017			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,069		$	1,520		(30	)%
Interest-bearing deposits in banks	46			47			(2	)
Trading account securities	85			86			(1	)
Available-for-sale securities	14,607			14,869			(2	)
Held-to-maturity securities	8,789			9,091			(3	)
Other securities	602			600			—
Loans held for sale	506			488			4
Loans and leases(1)	71,163			70,117			1
Allowance for loan and lease losses	(721		)	(691		)	(4	)
Net loans and leases	70,442			69,426			1
Bank owned life insurance	2,480			2,466			1
Premises and equipment	847			864			(2	)
Goodwill	1,993			1,993			—
Other intangible assets	333			346			(4	)
Servicing rights	246			238			3
Accrued income and other assets	2,201			2,151			2
Total assets	$	104,246		$	104,185		—	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	79,471		$	77,041		3	%
Short-term borrowings	2,854			5,056			(44	)
Long-term debt	8,618			9,206			(6	)
Accrued expenses and other liabilities	1,995			2,068			(4	)
Total liabilities	92,938			93,371			—

Shareholders' equity
Preferred stock	1,203			1,071			12
Common stock	11			11			—
Capital surplus	10,025			9,707			3
Less treasury shares, at cost	(34		)	(35		)	3
Accumulated other comprehensive loss	(677		)	(528		)	(28	)
Retained earnings (deficit)	780			588			33
Total shareholders’ equity	11,308			10,814			5
Total liabilities and shareholders’ equity	$	104,246		$	104,185		—	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	1,104,988,531			1,075,294,946
Common shares outstanding	1,101,795,768			1,072,026,681
Treasury shares outstanding	3,192,763			3,268,265
Preferred stock, authorized shares	6,617,808			6,617,808
Preferred shares issued	2,707,571			2,702,571
Preferred shares outstanding	740,500			1,098,006


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


(2)	See page 5 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)



	March 31,				December 31,				September 30,				June 30,				March 31,
(dollar amounts in millions)	2018				2017				2017				2017				2017
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	28,622	40	%	$	28,107	40	%	$	27,469	40	%	$	27,969	41	%	$	28,176	42	%
Commercial real estate:
Construction	1,167		2		1,217		2		1,182		2		1,145		2		1,107		2
Commercial	6,245		9		6,008		9		6,024		9		6,000		9		5,986		9
Commercial real estate	7,412		11		7,225		11		7,206		11		7,145		11		7,093		11
Total commercial	36,034		51		35,332		51		34,675		51		35,114		52		35,269		53
Consumer:
Automobile	12,146		17		12,100		17		11,876		17		11,555		17		11,155		17
Home equity	9,987		14		10,099		14		9,985		15		9,966		15		9,974		15
Residential mortgage	9,357		13		9,026		13		8,616		13		8,237		12		7,829		12
RV and marine finance	2,549		3		2,438		3		2,371		3		2,178		3		1,935		2
Other consumer	1,090		2		1,122		2		1,064		1		1,009		1		936		1
Total consumer	35,129		49		34,785		49		33,912		49		32,945		48		31,829		47
Total loans and leases	$	71,163	100	%	$	70,117	100	%	$	68,587	100	%	$	68,059	100	%	$	67,098	100	%



	March 31,				December 31,				September 30,					June 30,				March 31,
(dollar amounts in millions)	2018				2017				2017					2017				2017
Ending Balances by Business Segment:
Consumer and Business Banking	$	21,471	31	%	$	21,379	31	%	$	20,921		31	%	$	20,663	31	%	$	20,378	30	%
Commercial Banking(1)	26,311		37		25,767		37		25,297			37		25,400		37		25,384		38
Vehicle Finance	18,090		25		17,818		25		17,363			25		17,040		25		16,512		25
RBHPCG	5,227		7		5,145		7		5,012			7		4,888		7		4,690		7
Treasury / Other	64		—		8		—		(6		)	—		68		—		134		—
Total loans and leases	$	71,163	100	%	$	70,117	100	%	$	68,587		100	%	$	68,059	100	%	$	67,098	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	21,429	31	%	$	21,096	31	%	$	20,769		31	%	$	20,525	31	%	$	20,433	31	%
Commercial Banking(1)	25,969		37		25,208		37		25,209			37		25,198		37		25,585		38
Vehicle Finance	17,814		25		17,497		25		17,242			25		16,751		25		16,237		24
RBHPCG	5,181		7		5,071		7		4,937			7		4,758		7		4,640		7
Treasury / Other	91		—		68		—		119			—		113		—		86		—
Total loans and leases	$	70,484	100	%	$	68,940	100	%	$	68,276		100	%	$	67,345	100	%	$	66,981	100	%


(1)	We announced a change within our executive leadership team, which became effective during the 2017 fourth quarter. As a result, the Commercial Real Estate operating unit is now included as an operating unit within the Commercial Banking segment.

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	March 31,				December 31,				September 30,				June 30,				March 31,
(dollar amounts in millions)	2018				2017				2017				2017				2017

Ending Balances by Type:
Demand deposits - noninterest-bearing	$	20,807	26	%	$	21,546	28	%	$	22,225	28	%	$	21,420	28	%	$	21,489	28	%
Demand deposits - interest-bearing	19,337		25		18,001		23		18,343		23		17,113		23		18,618		24
Money market deposits	20,849		26		20,690		27		20,553		26		19,423		26		18,664		24
Savings and other domestic deposits	11,291		14		11,270		15		11,441		15		11,758		15		12,043		16
Core certificates of deposit	3,157		4		1,934		3		2,009		3		2,088		3		2,188		3
Total core deposits	75,441		95		73,441		96		74,571		95		71,802		95		73,002		95
Other domestic deposits of $250,000 or more	228		—		239		—		418		1		441		1		524		1
Brokered deposits and negotiable CDs	3,802		5		3,361		4		3,456		4		3,690		4		3,897		4
Total deposits	$	79,471	100	%	$	77,041	100	%	$	78,445	100	%	$	75,933	100	%	$	77,423	100	%
Total core deposits:
Commercial	$	34,615	46	%	$	34,273	47	%	$	35,516	48	%	$	32,201	45	%	$	32,963	45	%
Consumer	40,826		54		39,168		53		39,055		52		39,601		55		40,039		55
Total core deposits	$	75,441	100	%	$	73,441	100	%	$	74,571	100	%	$	71,802	100	%	$	73,002	100	%

Ending Balances by Business Segment:
Consumer and Business Banking	$	47,124	59	%	$	45,643	59	%	$	45,694	58	%	$	45,972	61	%	$	46,153	60	%
Commercial Banking(1)	21,838		28		21,235		28		22,529		29		19,481		26		20,613		27
Vehicle Finance	345		—		358		—		319		—		330		—		319		—
RBHPCG	6,053		8		6,057		8		5,944		8		5,883		8		5,982		8
Treasury / Other(2)	4,111		5		3,748		5		3,959		5		4,267		5		4,356		5
Total deposits	$	79,471	100	%	$	77,041	100	%	$	78,445	100	%	$	75,933	100	%	$	77,423	100	%



	March 31,				December 31,				September 30,				June 30,				March 31,
(dollar amounts in millions)	2018				2017				2017				2017				2017
Average Balances by Business Segment:
Consumer and Business Banking	$	45,310	59	%	$	45,625	59	%	$	45,511	59	%	$	45,704	60	%	$	45,215	59	%
Commercial Banking(1)	21,679		28		22,118		28		21,834		28		20,267		26		20,215		27
Vehicle Finance	349		—		323		—		300		—		301		—		317		—
RBHPCG	5,873		8		5,851		8		5,826		8		5,937		8		5,918		8
Treasury / Other(2)	3,735		5		3,820		5		4,073		5		4,344		6		4,274		6
Total deposits	$	76,946	100	%	$	77,737	100	%	$	77,544	100	%	$	76,553	100	%	$	75,939	100	%


(1)	We announced a change within our executive leadership team, which became effective during the 2017 fourth quarter. As a result, the Commercial Real Estate operating unit is now included as an operating unit within the Commercial Banking segment.


(2)	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)



	Quarterly Average Balances (2)
	March 31,			December 31,			September 30,			June 30,			March 31,			Percent Changes vs.
(dollar amounts in millions)	2018			2017			2017			2017			2017			4Q17		1Q17
Assets
Interest-bearing deposits in banks	$	90		$	90		$	102		$	102		$	100		—	%	(10	)%
Securities:
Trading account securities	87			87			92			91			137			—		(36	)
Available-for-sale securities:
Taxable	11,158			11,154			11,680			12,570			12,234			—		(9	)
Tax-exempt	3,633			3,404			3,160			3,103			3,048			7		19
Total available-for-sale securities	14,791			14,558			14,840			15,673			15,282			2		(3	)
Held-to-maturity securities - taxable	8,877			9,066			8,264			7,426			7,656			(2	)	16
Other securities:																—		—
Taxable	604			597			596			565			567			1		7
Tax-exempt	1			1			1			1			1			—		—
Total other securities	605			598			597			566			568			1		7
Total securities	24,360			24,309			23,793			23,756			23,643			—		3
Loans held for sale	478			598			678			525			415			(20	)	15
Loans and leases:(1)
Commercial:
Commercial and industrial	28,243			27,445			27,643			27,992			27,923			3		1
Commercial real estate:
Construction	1,189			1,199			1,152			1,130			1,314			(1	)	(10	)
Commercial	6,142			5,997			6,064			5,940			6,039			2		2
Commercial real estate	7,331			7,196			7,216			7,070			7,353			2		—
Total commercial	35,574			34,641			34,859			35,062			35,276			3		1
Consumer:
Automobile	12,100			11,963			11,713			11,324			11,063			1		9
Home equity	10,040			10,027			9,960			9,958			10,072			—		—
Residential mortgage	9,174			8,809			8,402			7,979			7,777			4		18
RV and marine finance	2,481			2,405			2,296			2,039			1,874			3		32
Other consumer	1,115			1,095			1,046			983			919			2		21
Total consumer	34,910			34,299			33,417			32,283			31,705			2		10
Total loans and leases	70,484			68,940			68,276			67,345			66,981			2		5
Allowance for loan and lease losses	(709		)	(688		)	(672		)	(672		)	(636		)	3		11
Net loans and leases	69,775			68,252			67,604			66,673			66,345			2		5
Total earning assets	95,412			93,937			92,849			91,728			91,139			2		5
Cash and due from banks	1,217			1,226			1,299			1,287			2,011			(1	)	(39	)
Intangible assets	2,332			2,346			2,359			2,373			2,387			(1	)	(2	)
All other assets	5,596			5,481			5,455			5,405			5,442			2		3
Total assets	$	103,848		$	102,302		$	101,290		$	100,121		$	100,343		2	%	3	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	20,572			21,745			21,723			21,599			21,730			(5	)%	(5	)%
Demand deposits - interest-bearing	18,630			18,175			17,878			17,445			16,805			3		11
Total demand deposits	39,202			39,920			39,601			39,044			38,535			(2	)	2
Money market deposits	20,678			20,731			20,314			19,212			18,653			—		11
Savings and other domestic deposits	11,219			11,348			11,590			11,889			11,970			(1	)	(6	)
Core certificates of deposit	2,293			1,947			2,044			2,146			2,342			18		(2	)
Total core deposits	73,392			73,946			73,549			72,291			71,500			(1	)	3
Other domestic deposits of $250,000 or more	247			400			432			479			470			(38	)	(47	)
Brokered deposits and negotiable CDs	3,307			3,391			3,563			3,783			3,969			(2	)	(17	)
Total deposits	76,946			77,737			77,544			76,553			75,939			(1	)	1
Short-term borrowings	5,228			2,837			2,391			2,687			3,792			84		38
Long-term debt	8,958			9,232			8,949			8,730			8,529			(3	)	5
Total interest-bearing liabilities	70,560			68,061			67,161			66,371			66,530			4		6
All other liabilities	1,861			1,819			1,661			1,557			1,661			2		12
Shareholders’ equity	10,855			10,677			10,745			10,594			10,422			2		4
Total liabilities and shareholders’ equity	$	103,848		$	102,302		$	101,290		$	100,121		$	100,343		2	%	3	%


(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
	March 31,		December 31,		September 30,		June 30,		March 31,
(dollar amounts in millions)	2018		2017		2017		2017		2017
Assets
Interest-bearing deposits in banks	$	—	$	1	$	—	$	1	$	—
Securities:
Trading account securities	—		—		—		—		—
Available-for-sale securities:
Taxable	70		69		69		74		72
Tax-exempt	29		31		29		29		29
Total available-for-sale securities	99		100		98		103		101
Held-to-maturity securities - taxable	54		55		49		44		45
Other securities:
Taxable	6		6		5		4		4
Tax-exempt	—		—		—		—		—
Total other securities	6		6		5		4		4
Total securities	159		161		152		151		150
Loans held for sale	5		5		7		5		4
Loans and leases:
Commercial:
Commercial and industrial	303		292		286		286		278
Commercial real estate:
Construction	14		14		13		12		13
Commercial	65		61		63		60		56
Commercial real estate	79		75		76		72		69
Total commercial	382		367		362		358		347
Consumer:
Automobile	106		109		106		100		97
Home equity	121		119		119		114		111
Residential mortgage	84		80		77		73		71
RV and marine finance	31		32		32		28		26
Other consumer	33		32		31		28		27
Total consumer	375		372		365		343		332
Total loans and leases	757		739		727		701		679
Total earning assets	$	921	$	906	$	886	$	858	$	833

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	13		13		10		9		6
Total demand deposits	13		13		10		9		6
Money market deposits	23		20		19		15		12
Savings and other domestic deposits	6		5		6		6		7
Core certificates of deposit	6		4		4		3		2
Total core deposits	48		42		39		33		27
Other domestic deposits of $250,000 or more	—		—		1		—		—
Brokered deposits and negotiable CDs	12		11		10		9		7
Total deposits	60		53		50		42		34
Short-term borrowings	19		8		6		5		6
Long-term debt	65		63		59		54		50
Total interest bearing liabilities	144		124		115		101		90
Net interest income	$	777	$	782	$	771	$	757	$	743


(1)	Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018. See page 9 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)
	March 31,		December 31,		September 30,		June 30,		March 31,
Fully-taxable equivalent basis(1)	2018		2017		2017		2017		2017
Assets
Interest-bearing deposits in banks	1.97	%	1.92	%	1.77	%	1.53	%	1.09	%
Securities:
Trading account securities	0.15		0.21		0.16		0.25		0.11
Available-for-sale securities:
Taxable	2.51		2.45		2.38		2.35		2.34
Tax-exempt	3.18		3.76		3.62		3.71		3.77
Total available-for-sale securities	2.67		2.75		2.64		2.62		2.63
Held-to-maturity securities - taxable	2.45		2.41		2.36		2.38		2.36
Other securities:
Taxable	3.98		3.86		3.35		3.18		3.31
Tax-exempt	2.88		3.89		3.89		2.22		2.86
Total other securities	3.98		3.86		3.35		3.18		3.31
Total securities	2.62		2.64		2.55		2.55		2.54
Loans held for sale	3.82		3.68		3.83		3.73		3.82
Loans and leases:(3)
Commercial:
Commercial and industrial	4.28		4.17		4.05		4.04		3.98
Commercial real estate:
Construction	4.73		4.47		4.55		4.26		3.95
Commercial	4.24		4.03		4.08		3.97		3.69
Commercial real estate	4.32		4.10		4.16		4.02		3.74
Total commercial	4.29		4.15		4.07		4.04		3.93
Consumer:
Automobile	3.56		3.61		3.60		3.55		3.55
Home equity	4.90		4.71		4.72		4.61		4.45
Residential mortgage	3.66		3.66		3.65		3.66		3.63
RV and marine finance	5.11		5.25		5.43		5.57		5.63
Other consumer	11.78		11.53		11.59		11.47		12.05
Total consumer	4.34		4.31		4.32		4.27		4.23
Total loans and leases	4.32		4.23		4.20		4.15		4.07
Total earning assets	3.91		3.83		3.78		3.75		3.70
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.29		0.26		0.23		0.20		0.15
Total demand deposits	0.14		0.12		0.10		0.09		0.07
Money market deposits	0.45		0.40		0.36		0.31		0.26
Savings and other domestic deposits	0.20		0.20		0.20		0.21		0.22
Core certificates of deposit	1.01		0.75		0.73		0.56		0.39
Total interest-bearing core deposits	0.36		0.32		0.30		0.26		0.22
Other domestic deposits of $250,000 or more	0.69		0.54		0.61		0.49		0.45
Brokered deposits and negotiable CDs	1.47		1.21		1.16		0.95		0.72
Total interest-bearing deposits	0.43		0.37		0.35		0.31		0.26
Short-term borrowings	1.47		1.15		0.95		0.78		0.63
Long-term debt	2.92		2.73		2.65		2.49		2.33
Total interest-bearing liabilities	0.82		0.73		0.68		0.61		0.54
Net interest rate spread	3.09		3.10		3.10		3.14		3.16
Impact of noninterest-bearing funds on margin	0.21		0.20		0.19		0.17		0.14
Net interest margin	3.30	%	3.30	%	3.29	%	3.31	%	3.30	%

Commercial Loan Derivative Impact

(Unaudited)



	Average Rates
	2018		2017		2017		2017		2017
Fully-taxable equivalent basis(1)	First		Fourth		Third		Second		First
Commercial loans(2)(3)	4.29	%	4.16	%	4.10	%	4.06	%	3.93	%
Impact of commercial loan derivatives	—		(0.01	)	(0.03	)	(0.02	)	—
Total commercial - as reported	4.29	%	4.15	%	4.07	%	4.04	%	3.93	%

Average 30 day LIBOR	1.65	%	1.33	%	1.23	%	1.06	%	0.80	%


(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018. See page 9 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
	March 31,		December 31,			September 30,		June 30,		March 31,
(dollar amounts in millions, except share amounts)	2018		2017			2017		2017		2017
Interest income	$	914	$	894		$	873	$	846	$	820
Interest expense	144		124			115		101		90
Net interest income	770		770			758		745		730
Provision for credit losses	66		65			43		25		68
Net interest income after provision for credit losses	704		705			715		720		662
Service charges on deposit accounts	86		91			91		88		83
Cards and payment processing income	53		53			54		52		47
Trust and investment management services	44		41			39		37		39
Mortgage banking income	26		33			34		32		32
Insurance income	21		21			18		22		20
Capital markets fees	19		23			22		17		14
Bank owned life insurance income	15		18			16		15		18
Gain on sale of loans	8		17			14		12		13
Securities gains (losses)	—		(4		)	—		—		—
Other income	42		47			42		50		46
Total noninterest income	314		340			330		325		312
Personnel costs	376		373			377		392		382
Outside data processing and other services	73		71			80		75		87
Net occupancy	41		36			55		53		68
Equipment	40		36			45		43		47
Deposit and other insurance expense	18		19			19		20		20
Professional services	11		18			15		18		18
Marketing	8		10			17		19		14
Amortization of intangibles	14		14			14		14		14
Other expense	52		56			58		60		57
Total noninterest expense	633		633			680		694		707
Income before income taxes	385		412			365		351		267
Provision for income taxes	59		(20		)	90		79		59
Net income	326		432			275		272		208
Dividends on preferred shares	12		19			19		19		19
Net income applicable to common shares	$	314	$	413		$	256	$	253	$	189

Average common shares - basic (000)	1,083,836		1,077,397			1,086,038		1,088,934		1,086,374
Average common shares - diluted	1,124,778		1,130,117			1,106,491		1,108,527		1,108,617

Per common share
Net income - basic	$	0.29	$	0.38		$	0.24	$	0.23	$	0.17
Net income - diluted	0.28		0.37			0.23		0.23		0.17
Cash dividends declared	0.11		0.11			0.08		0.08		0.08

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	770	$	770		$	758	$	745	$	730
FTE adjustment	7		12			13		12		13
Net interest income(2)	777		782			771		757		743
Noninterest income	314		340			330		325		312
Total revenue(2)	$	1,091	$	1,122		$	1,101	$	1,082	$	1,055


(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 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Noninterest Income

(Unaudited)



	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,			Percent Changes vs.
(dollar amounts in millions)	2018			2017			2017			2017			2017			4Q17		1Q17
Net origination and secondary marketing income	$	18		$	24		$	25		$	24		$	22		(25	)%	(18	)%
Net mortgage servicing income
Loan servicing income	14			13			13			13			13			8		8
Amortization of capitalized servicing	(8		)	(8		)	(7		)	(7		)	(7		)	—		14
Operating income	6			5			6			6			6			20		—
MSR valuation adjustment (1)	7			2			—			(3		)	2			100		250
Gains (losses) due to MSR hedging	(7		)	(1		)	—			2			(1		)	100		600
Net MSR risk management	—			1			—			(1		)	1			100		—
Total net mortgage servicing income	$	6		$	6		$	6		$	5		$	7		—	%	(14	)%
All other	2			3			3			3			3			(33	)	(33	)
Mortgage banking income	$	26		$	33		$	34		$	32		$	32		(21	)%	(19	)%

Mortgage origination volume	$	1,513		$	1,784		$	1,828		$	1,756		$	1,266		(15	)%	20	%
Mortgage origination volume for sale	870			1,006			1,095			1,018			793			(14	)	10

Third party mortgage loans serviced (2)	20,225			19,989			19,552			19,111			19,051			1		6
Mortgage servicing rights (2)	212			202			195			189			191			5		11
MSR % of investor servicing portfolio (2)	1.05		%	1.01		%	1.00		%	0.99		%	1.00		%	4	%	5	%


(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
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Allowance for loan and lease losses, beginning of period	$	691		$	675		$	668		$	673		$	638
Loan and lease losses	(73		)	(60		)	(65		)	(57		)	(70		)
Recoveries of loans previously charged off	35			19			22			21			31
Net loan and lease losses	(38		)	(41		)	(43		)	(36		)	(39		)
Provision for loan and lease losses	68			57			50			31			74
Allowance for loan and lease losses, end of period	721			691			675			668			673
Allowance for unfunded loan commitments and letters of credit, beginning of period	87			79			85			92			98
Provision for (reduction in) unfunded loan commitments and letters of credit losses	(2		)	8			(6		)	(7		)	(6		)
Allowance for unfunded loan commitments and letters of credit, end of period	85			87			79			85			92
Total allowance for credit losses, end of period	$	806		$	778		$	754		$	753		$	765
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.01		%	0.99		%	0.98		%	0.98		%	1.00		%
Nonaccrual loans and leases (NALs)	188			198			200			183			168
Nonperforming assets (NPAs)	172			178			175			161			147
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.13		%	1.11		%	1.10		%	1.11		%	1.14		%
Nonaccrual loans and leases	210			223			223			207			190
Nonperforming assets	192			200			195			181			167

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Net charge-offs by loan and lease type:

Total loans
Commercial:
Commercial and industrial	$	17		$	8		$	13		$	13		$	8
Commercial real estate:
Construction	(1		)	(1		)	(1		)	—			(3		)
Commercial	(13		)	—			(3		)	(4		)	1
Commercial real estate	(14		)	(1		)	(4		)	(4		)	(2		)
Total commercial	3			7			9			9			6
Consumer:
Automobile	10			12			9			9			12
Home equity	3			1			1			1			2
Residential mortgage	1			—			2			1			3
RV and marine finance	3			2			4			2			2
Other consumer	18			19			18			14			14
Total consumer	35			34			34			27			33
Total net charge-offs	$	38		$	41		$	43		$	36		$	39


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2018			2017			2017			2017			2017
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.24		%	0.10		%	0.19		%	0.18		%	0.12		%
Commercial real estate:
Construction	(0.18		)	(0.14		)	(0.30		)	0.03			(0.96		)
Commercial	(0.80		)	(0.02		)	(0.21		)	(0.24		)	0.06
Commercial real estate	(0.70		)	(0.04		)	(0.22		)	(0.20		)	(0.12		)
Total commercial	0.04			0.07			0.11			0.11			0.07
Consumer:
Automobile	0.32			0.39			0.33			0.29			0.45
Home equity	0.11			0.01			0.06			0.05			0.07
Residential mortgage	0.04			0.04			0.10			0.05			0.13
RV and marine finance	0.42			0.46			0.59			0.37			0.50
Other consumer	6.51			6.99			6.51			5.81			6.33
Total consumer	0.39			0.40			0.40			0.33			0.42
Net charge-offs as a % of average loans	0.21		%	0.24		%	0.25		%	0.21		%	0.24		%

Huntington Bancshares Incorporated

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

(Unaudited)



	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	190		$	161		$	170		$	195		$	232
Commercial real estate	30			29			18			17			14
Automobile	5			6			4			4			5
Residential mortgage	82			84			75			80			81
RV and marine finance	1			1			—			—			—
Home equity	75			68			71			68			69
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	383			349			338			364			401
Other real estate, net:
Residential	23			24			26			27			32
Commercial	7			9			16			17			18
Total other real estate, net	30			33			42			44			50
Other NPAs (1)	7			7			7			7			7
Total nonperforming assets	$	420		$	389		$	387		$	415		$	458

Nonaccrual loans and leases as a % of total loans and leases	0.54		%	0.50		%	0.49		%	0.54		%	0.60		%
NPA ratio (2)	0.59			0.55			0.56			0.61			0.68
(NPA+90days)/(Loan+OREO) (3)	0.74			0.72			0.74			0.81			0.87



	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Nonperforming assets, beginning of period	$	389		$	387		$	415		$	458		$	481
New nonperforming assets	158			116			85			89			125
Returns to accruing status	(23		)	(25		)	(38		)	(33		)	(22		)
Loan and lease losses	(32		)	(21		)	(23		)	(17		)	(34		)
Payments	(64		)	(54		)	(44		)	(71		)	(83		)
Sales and held-for-sale transfers	(8		)	(14		)	(8		)	(11		)	(9		)
Nonperforming assets, end of period	$	420		$	389		$	387		$	415		$	458


(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)



	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	9		$	9		$	14		$	22		$	15
Commercial real estate	1			3			10			17			15
Automobile	6			7			10			9			8
Residential mortgage (excluding loans guaranteed by the U.S. Government)	19			21			14			17			16
RV and marine finance	2			1			2			2			2
Home equity	15			18			16			18			15
Other consumer	4			5			4			3			4
Total, excl. loans guaranteed by the U.S. Government	56			64			70			88			75
Add: loans guaranteed by U.S. Government	50			51			49			48			53
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	106		$	115		$	119		$	136		$	128

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.08		%	0.09		%	0.10		%	0.13		%	0.11		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.07			0.07			0.07			0.07			0.08
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.15			0.16			0.17			0.20			0.19

Accruing troubled debt restructured loans:
Commercial and industrial	$	316		$	300		$	268		$	270		$	223
Commercial real estate	76			78			80			74			81
Automobile	32			30			29			28			28
Home equity	261			265			265			269			271
Residential mortgage	224			224			235			238			239
RV and marine finance	1			1			1			1			1
Other consumer	6			8			7			4			4
Total accruing troubled debt restructured loans	$	916		$	906		$	885		$	884		$	847

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	83		$	82		$	96		$	90		$	89
Commercial real estate	16			15			4			4			4
Automobile	3			4			4			4			5
Home equity	31			28			31			29			29
Residential mortgage	52			55			50			56			60
RV and marine finance	—			—			—			—			—
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	185		$	184		$	185		$	183		$	187

Huntington Bancshares Incorporated

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

(Unaudited)



	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	11,308		$	10,814		$	10,699		$	10,654		$	10,437
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,207		)	(1,076		)	(1,076		)	(1,076		)	(1,076		)
Accumulated other comprehensive income offset	676			528			370			350			391
Goodwill and other intangibles, net of related taxes	(2,186		)	(2,200		)	(2,150		)	(2,161		)	(2,174		)
Deferred tax assets that arise from tax loss and credit carryforwards	(29		)	(25		)	(26		)	(27		)	(28		)
Common equity tier 1 capital	8,562			8,041			7,817			7,740			7,550
Additional tier 1 capital
Shareholders’ preferred equity	1,207			1,076			1,076			1,076			1,076
Other	—			(7		)	(7		)	(7		)	(7		)
Tier 1 capital	9,769			9,110			8,886			8,809			8,619
Long-term debt and other tier 2 qualifying instruments	817			869			885			887			899
Qualifying allowance for loan and lease losses	806			778			754			753			764
Tier 2 capital	1,623			1,647			1,639			1,640			1,663
Total risk-based capital	$	11,392		$	10,757		$	10,525		$	10,449		$	10,282
Risk-weighted assets (RWA)(1)	$	81,485		$	80,340		$	78,631		$	78,366		$	77,559
Common equity tier 1 risk-based capital ratio(1)	10.51		%	10.01		%	9.94		%	9.88		%	9.74		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	9.61			9.09			8.96			8.98			8.76
Tier 1 risk-based capital ratio(1)	11.99			11.34			11.30			11.24			11.11
Total risk-based capital ratio(1)	13.98			13.39			13.39			13.33			13.26
Non-regulatory capital data:
Tangible common equity / RWA ratio(1)	9.63			9.31			9.41			9.37			9.18


(1)	March 31, 2018, figures are estimated.

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary



	March 31,		December 31,		September 30,		June 30,		March 31,
	2018		2017		2017		2017		2017
Common stock price, per share
High(1)	$	16.600	$	14.930	$	14.050	$	13.785	$	14.740
Low(1)	14.490		13.040		12.140		12.225		12.370
Close	15.100		14.560		13.960		13.520		13.390
Average closing price	15.718		13.470		13.152		12.949		13.663
Dividends, per share
Cash dividends declared per common share	$	0.11	$	0.11	$	0.08	$	0.08	$	0.08
Common shares outstanding (000)
Average - basic	1,083,836		1,077,397		1,086,038		1,088,934		1,086,374
Average - diluted	1,124,778		1,130,117		1,106,491		1,108,527		1,108,617
Ending	1,101,796		1,072,027		1,080,946		1,090,016		1,087,120
Tangible book value per common share(2)	$	7.12	$	6.97	$	6.85	$	6.74	$	6.55
Common share repurchases (000)
Number of shares repurchased	3,007		9,785		9,645		—		—

Non-regulatory capital



	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	11,308		$	10,814		$	10,699		$	10,654		$	10,437
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(1,993		)	(1,993		)
Less: other intangible assets	(333		)	(346		)	(360		)	(374		)	(388		)
Add: related deferred tax liability(2)	70			73			126			131			136
Total tangible equity	9,052			8,548			8,472			8,418			8,192
Less: preferred equity	(1,203		)	(1,071		)	(1,071		)	(1,071		)	(1,071		)
Total tangible common equity	$	7,849		$	7,477		$	7,401		$	7,347		$	7,121
Total assets	$	104,246		$	104,185		$	101,988		$	101,407		$	100,046
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(1,993		)	(1,993		)
Less: other intangible assets	(333		)	(346		)	(360		)	(374		)	(388		)
Add: related deferred tax liability(2)	70			73			126			131			136
Total tangible assets	$	101,990		$	101,919		$	99,761		$	99,171		$	97,801
Tangible equity / tangible asset ratio	8.88		%	8.39		%	8.49		%	8.49		%	8.38		%
Tangible common equity / tangible asset ratio	7.70			7.34			7.42			7.41			7.28
Other data:
Number of employees (Average full-time equivalent)	15,599			15,375			15,508			15,877			16,331
Number of domestic full-service branches(3)	966			966			958			996			996
ATM Count	1,866			1,848			1,860			1,860			1,855


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


(2)	Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate and a 35% tax rate for periods prior to December 31, 2017.


(3)	Includes Regional Banking and The Huntington Private Client Group offices.

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 24, 2018

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports