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/	hban20180630_8kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20180630_8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

June 30, 2018

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 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
	June 30,			March 31,			June 30,			Percent Changes vs.
(amounts in millions, except per share amounts)	2018			2018			2017			1Q18		2Q17
Net interest income(3)	$	791		$	777		$	757		2	%	4	%
FTE adjustment	(7		)	(7		)	(12		)	—		42
Net interest income	784			770			745			2		5
Provision for credit losses	56			66			25			(15	)	124
Noninterest income	336			314			325			7		3
Noninterest expense	652			633			694			3		(6	)
Income before income taxes	412			385			351			7		17
Provision for income taxes	57			59			79			(3	)	(28	)
Net income	355			326			272			9		31
Dividends on preferred shares	21			12			19			75		11
Net income applicable to common shares	$	334		$	314		$	253		6	%	32	%

Net income per common share - diluted	$	0.30		$	0.28		$	0.23		7	%	30	%
Cash dividends declared per common share	0.11			0.11			0.08			—		38
Tangible book value per common share at end of period	7.27			7.12			6.74			2		8
Number of common shares repurchased (000)	—			3,007			—			(100	)	—
Average common shares - basic	1,103,337			1,083,836			1,088,934			2		1
Average common shares - diluted	1,122,612			1,124,778			1,108,527			—		1
Ending common shares outstanding	1,104,227			1,101,796			1,090,016			—		1
Return on average assets	1.36		%	1.27		%	1.09		%
Return on average common shareholders’ equity	13.2			13.0			10.6
Return on average tangible common shareholders’ equity(2)	17.6			17.5			14.4
Net interest margin(3)	3.29			3.30			3.31
Efficiency ratio(4)	56.6			56.8			62.9
Effective tax rate	13.8			15.3			22.4
Average total assets	$	104,821		$	103,848		$	100,121		1		5
Average earning assets	96,363			95,412			91,728			1		5
Average loans and leases	71,887			70,484			67,345			2		7
Average loans and leases - linked quarter annualized growth rate	8.0		%	9.0		%	2.2		%
Average total deposits	$	79,290		$	76,946		$	76,553		3		4
Average core deposits(5)	75,386			73,392			72,291			3		4
Average core deposits - linked quarter annualized growth rate	10.9		%	(3.0		)%	4.4		%
Average shareholders’ equity	11,333			10,855			10,594			4		7
Average common total shareholders' equity	10,130			9,794			9,523			3		6
Average tangible common shareholders' equity	7,880			7,533			7,283			5		8
Total assets at end of period	105,358			104,246			101,407			1		4
Total shareholders’ equity at end of period	11,472			11,308			10,654			1		8

NCOs as a % of average loans and leases	0.16		%	0.21		%	0.21		%
NAL ratio	0.52			0.54			0.54
NPA ratio(6)	0.57			0.59			0.61
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.02			1.01			0.98
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period	1.15			1.13			1.11
Common equity tier 1 risk-based capital ratio(7)	10.53			10.45			9.88
Tangible common equity / tangible asset ratio(8)	7.78			7.70			7.41

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

Huntington Bancshares Incorporated

Year to Date Key Statistics(1)

(Unaudited)



	Six Months Ended June 30,						Change
(amounts in millions, except per share amounts)	2018			2017			Amount			Percent
Net interest income(3)	$	1,568		$	1,499		$	69		5	%
FTE adjustment	(14		)	(24		)	10			42
Net interest income	1,554			1,475			79			5
Provision for credit losses	122			93			29			31
Noninterest income	650			638			12			2
Noninterest expense	1,285			1,402			(117		)	(8	)
Income before income taxes	797			618			179			29
Provision for income taxes	116			138			(22		)	(16	)
Net Income	681			480			201			42
Dividends on preferred shares	33			38			(5		)	(13	)
Net income applicable to common shares	$	648		$	442		$	206		47	%

Net income per common share - diluted	$	0.58		$	0.40		$	0.18		45	%
Cash dividends declared per common share	0.22			0.16			0.06			38

Average common shares - basic (000)	1,093,587			1,087,654			5,933			1
Average common shares - diluted	1,123,646			1,108,572			15,074			1

Return on average assets	1.32		%	0.97		%
Return on average common shareholders’ equity	13.1			9.4
Return on average tangible common shareholders’ equity(2)	17.5			12.9
Net interest margin(3)	3.30			3.31
Efficiency ratio(4)	56.7			64.3
Effective tax rate	14.6			22.3

Average total assets	$	104,337		$	100,232		$	4,105		4
Average earning assets	95,890			91,434			4,456			5
Average loans and leases	71,190			67,164			4,026			6
Average total deposits	78,125			76,248			1,877			2
Average core deposits(5)	74,395			71,898			2,497			3
Average shareholders’ equity	11,095			10,509			586			6
Average common total shareholders' equity	9,963			9,437			526			6
Average tangible common shareholders' equity	7,708			7,193			515			7

NCOs as a % of average loans and leases	0.19		%	0.22		%
NAL ratio	0.52			0.54
NPA ratio(6)	0.57			0.61

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 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)	June 30, 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



	June 30,			December 31,
(dollar amounts in millions, except number of shares)	2018			2017			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,382		$	1,520		(9	)%
Interest-bearing deposits in banks	41			47			(13	)
Trading account securities	85			86			(1	)
Available-for-sale securities	14,070			14,869			(5	)
Held-to-maturity securities	8,682			9,091			(4	)
Other securities	597			600			(1	)
Loans held for sale	709			488			45
Loans and leases(1)	72,406			70,117			3
Allowance for loan and lease losses	(741		)	(691		)	(7	)
Net loans and leases	71,665			69,426			3
Bank owned life insurance	2,488			2,466			1
Premises and equipment	840			864			(3	)
Goodwill	1,993			1,993			—
Other intangible assets	319			346			(8	)
Servicing rights	248			238			4
Accrued income and other assets	2,239			2,151			4
Total assets	$	105,358		$	104,185		1	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	79,587		$	77,041		3	%
Short-term borrowings	2,442			5,056			(52	)
Long-term debt	9,726			9,206			6
Accrued expenses and other liabilities	2,131			2,068			3
Total liabilities	93,886			93,371			1

Shareholders' equity
Preferred stock	1,203			1,071			12
Common stock	11			11			—
Capital surplus	10,038			9,707			3
Less treasury shares, at cost	(40		)	(35		)	(14	)
Accumulated other comprehensive loss	(730		)	(528		)	(38	)
Retained earnings (deficit)	990			588			68
Total shareholders’ equity	11,472			10,814			6
Total liabilities and shareholders’ equity	$	105,358		$	104,185		1	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	1,107,817,801			1,075,294,946
Common shares outstanding	1,104,226,603			1,072,026,681
Treasury shares outstanding	3,591,198			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 5 for detail of loans and leases.


(2)	See page 6 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2018				2018				2017				2017				2017
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	28,850	40	%	$	28,622	40	%	$	28,107	40	%	$	27,469	40	%	$	27,969	41	%
Commercial real estate:
Construction	1,083		1		1,167		2		1,217		2		1,182		2		1,145		2
Commercial	6,118		8		6,245		9		6,008		9		6,024		9		6,000		9
Commercial real estate	7,201		9		7,412		11		7,225		11		7,206		11		7,145		11
Total commercial	36,051		49		36,034		51		35,332		51		34,675		51		35,114		52
Consumer:
Automobile	12,390		17		12,146		17		12,100		17		11,876		17		11,555		17
Home equity	9,907		14		9,987		14		10,099		14		9,985		15		9,966		15
Residential mortgage	10,006		14		9,357		13		9,026		13		8,616		13		8,237		12
RV and marine finance	2,846		4		2,549		3		2,438		3		2,371		3		2,178		3
Other consumer	1,206		2		1,090		2		1,122		2		1,064		1		1,009		1
Total consumer	36,355		51		35,129		49		34,785		49		33,912		49		32,945		48
Total loans and leases	$	72,406	100	%	$	71,163	100	%	$	70,117	100	%	$	68,587	100	%	$	68,059	100	%



	June 30,				March 31,				December 31,				September 30,					June 30,
(dollar amounts in millions)	2018				2018				2017				2017					2017
Ending Balances by Business Segment:
Consumer and Business Banking	$	21,888	30	%	$	21,471	31	%	$	21,379	31	%	$	20,921		31	%	$	20,663	31	%
Commercial Banking(1)	26,373		36		26,311		37		25,767		37		25,297			37		25,400		37
Vehicle Finance	18,569		26		18,090		25		17,818		25		17,363			25		17,040		25
RBHPCG	5,527		8		5,227		7		5,145		7		5,012			7		4,888		7
Treasury / Other	49		—		64		—		8		—		(6		)	—		68		—
Total loans and leases	$	72,406	100	%	$	71,163	100	%	$	70,117	100	%	$	68,587		100	%	$	68,059	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	21,653	31	%	$	21,429	31	%	$	21,096	31	%	$	20,769		31	%	$	20,525	31	%
Commercial Banking(1)	26,505		37		25,969		37		25,208		37		25,209			37		25,198		37
Vehicle Finance	18,280		25		17,814		25		17,497		25		17,242			25		16,751		25
RBHPCG	5,355		7		5,181		7		5,071		7		4,937			7		4,758		7
Treasury / Other	94		—		91		—		68		—		119			—		113		—
Total loans and leases	$	71,887	100	%	$	70,484	100	%	$	68,940	100	%	$	68,276		100	%	$	67,345	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)



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

Ending Balances by Type:
Demand deposits - noninterest-bearing	$	20,353	26	%	$	20,807	26	%	$	21,546	28	%	$	22,225	28	%	$	21,420	28	%
Demand deposits - interest-bearing	19,026		24		19,337		25		18,001		23		18,343		23		17,113		23
Money market deposits	20,990		26		20,849		26		20,690		27		20,553		26		19,423		26
Savings and other domestic deposits	10,987		14		11,291		14		11,270		15		11,441		15		11,758		15
Core certificates of deposit	4,402		6		3,157		4		1,934		3		2,009		3		2,088		3
Total core deposits	75,758		96		75,441		95		73,441		96		74,571		95		71,802		95
Other domestic deposits of $250,000 or more	265		—		228		—		239		—		418		1		441		1
Brokered deposits and negotiable CDs	3,564		4		3,802		5		3,361		4		3,456		4		3,690		4
Total deposits	$	79,587	100	%	$	79,471	100	%	$	77,041	100	%	$	78,445	100	%	$	75,933	100	%
Total core deposits:
Commercial	$	34,094	45	%	$	34,615	46	%	$	34,273	47	%	$	35,516	48	%	$	32,201	45	%
Consumer	41,664		55		40,826		54		39,168		53		39,055		52		39,601		55
Total core deposits	$	75,758	100	%	$	75,441	100	%	$	73,441	100	%	$	74,571	100	%	$	71,802	100	%

Ending Balances by Business Segment:
Consumer and Business Banking	$	48,186	60	%	$	47,124	59	%	$	45,643	59	%	$	45,694	58	%	$	45,972	61	%
Commercial Banking(1)	21,142		27		21,838		28		21,235		28		22,529		29		19,481		26
Vehicle Finance	340		—		345		—		358		—		319		—		330		—
RBHPCG	5,985		8		6,053		8		6,057		8		5,944		8		5,883		8
Treasury / Other(2)	3,934		5		4,111		5		3,748		5		3,959		5		4,267		5
Total deposits	$	79,587	100	%	$	79,471	100	%	$	77,041	100	%	$	78,445	100	%	$	75,933	100	%



	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2018				2018				2017				2017				2017
Average Balances by Business Segment:
Consumer and Business Banking	$	47,242	60	%	$	45,310	59	%	$	45,625	59	%	$	45,511	59	%	$	45,704	60	%
Commercial Banking(1)	21,671		27		21,679		28		22,118		28		21,834		28		20,267		26
Vehicle Finance	328		—		349		—		323		—		300		—		301		—
RBHPCG	5,947		8		5,873		8		5,851		8		5,826		8		5,937		8
Treasury / Other(2)	4,102		5		3,735		5		3,820		5		4,073		5		4,344		6
Total deposits	$	79,290	100	%	$	76,946	100	%	$	77,737	100	%	$	77,544	100	%	$	76,553	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)
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in millions)	2018			2018			2017			2017			2017			1Q18		2Q17
Assets
Interest-bearing deposits in banks	$	84		$	90		$	90		$	102		$	102		(7	)%	(18	)%
Securities:
Trading account securities	82			87			87			92			91			(6	)	(10	)
Available-for-sale securities:
Taxable	10,832			11,158			11,154			11,680			12,570			(3	)	(14	)
Tax-exempt	3,554			3,633			3,404			3,160			3,103			(2	)	15
Total available-for-sale securities	14,386			14,791			14,558			14,840			15,673			(3	)	(8	)
Held-to-maturity securities - taxable	8,706			8,877			9,066			8,264			7,426			(2	)	17
Other securities	599			605			598			597			566			(1	)	6
Total securities	23,773			24,360			24,309			23,793			23,756			(2	)	—
Loans held for sale	619			478			598			678			525			29		18
Loans and leases:(1)
Commercial:
Commercial and industrial	28,863			28,243			27,445			27,643			27,992			2		3
Commercial real estate:
Construction	1,126			1,189			1,199			1,152			1,130			(5	)	—
Commercial	6,233			6,142			5,997			6,064			5,940			1		5
Commercial real estate	7,359			7,331			7,196			7,216			7,070			—		4
Total commercial	36,222			35,574			34,641			34,859			35,062			2		3
Consumer:
Automobile	12,271			12,100			11,963			11,713			11,324			1		8
Home equity	9,941			10,040			10,027			9,960			9,958			(1	)	—
Residential mortgage	9,624			9,174			8,809			8,402			7,979			5		21
RV and marine finance	2,667			2,481			2,405			2,296			2,039			7		31
Other consumer	1,162			1,115			1,095			1,046			983			4		18
Total consumer	35,665			34,910			34,299			33,417			32,283			2		10
Total loans and leases	71,887			70,484			68,940			68,276			67,345			2		7
Allowance for loan and lease losses	(742		)	(709		)	(688		)	(672		)	(672		)	5		10
Net loans and leases	71,145			69,775			68,252			67,604			66,673			2		7
Total earning assets	96,363			95,412			93,937			92,849			91,728			1		5
Cash and due from banks	1,283			1,217			1,226			1,299			1,287			5		—
Intangible assets	2,318			2,332			2,346			2,359			2,373			(1	)	(2	)
All other assets	5,599			5,596			5,481			5,455			5,405			—		4
Total assets	$	104,821		$	103,848		$	102,302		$	101,290		$	100,121		1	%	5	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	20,382			20,572			21,745			21,723			21,599			(1	)%	(6	)%
Demand deposits - interest-bearing	19,121			18,630			18,175			17,878			17,445			3		10
Total demand deposits	39,503			39,202			39,920			39,601			39,044			1		1
Money market deposits	20,943			20,678			20,731			20,314			19,212			1		9
Savings and other domestic deposits	11,146			11,219			11,348			11,590			11,889			(1	)	(6	)
Core certificates of deposit	3,794			2,293			1,947			2,044			2,146			65		77
Total core deposits	75,386			73,392			73,946			73,549			72,291			3		4
Other domestic deposits of $250,000 or more	243			247			400			432			479			(2	)	(49	)
Brokered deposits and negotiable CDs	3,661			3,307			3,391			3,563			3,783			11		(3	)
Total deposits	79,290			76,946			77,737			77,544			76,553			3		4
Short-term borrowings	3,082			5,228			2,837			2,391			2,687			(41	)	15
Long-term debt	9,225			8,958			9,232			8,949			8,730			3		6
Total interest-bearing liabilities	71,215			70,560			68,061			67,161			66,371			1		7
All other liabilities	1,891			1,861			1,819			1,661			1,557			2		21
Shareholders’ equity	11,333			10,855			10,677			10,745			10,594			4		7
Total liabilities and shareholders’ equity	$	104,821		$	103,848		$	102,302		$	101,290		$	100,121		1	%	5	%


(1)	Includes nonaccrual loans.


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

Huntington Bancshares Incorporated

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

(Unaudited)



	Quarterly Interest Income / Expense
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollar amounts in millions)	2018		2018		2017		2017		2017
Assets
Interest-bearing deposits in banks	$	1	$	—	$	1	$	—	$	1
Securities:
Trading account securities	—		—		—		—		—
Available-for-sale securities:
Taxable	71		70		69		69		74
Tax-exempt	30		29		31		29		29
Total available-for-sale securities	101		99		100		98		103
Held-to-maturity securities - taxable	53		54		55		49		44
Other securities	7		6		6		5		4
Total securities	161		159		161		152		151
Loans held for sale	6		5		5		7		5
Loans and leases:
Commercial:
Commercial and industrial	329		303		292		286		286
Commercial real estate:
Construction	15		14		14		13		12
Commercial	72		65		61		63		60
Commercial real estate	87		79		75		76		72
Total commercial	416		382		367		362		358
Consumer:
Automobile	111		106		109		106		100
Home equity	126		121		119		119		114
Residential mortgage	89		84		80		77		73
RV and marine finance	34		31		32		32		28
Other consumer	35		33		32		31		28
Total consumer	395		375		372		365		343
Total loans and leases	811		757		739		727		701
Total earning assets	$	979	$	921	$	906	$	886	$	858

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	18		13		13		10		9
Total demand deposits	18		13		13		10		9
Money market deposits	31		23		20		19		15
Savings and other domestic deposits	6		6		5		6		6
Core certificates of deposit	14		6		4		4		3
Total core deposits	69		48		42		39		33
Other domestic deposits of $250,000 or more	1		—		—		1		—
Brokered deposits and negotiable CDs	17		12		11		10		9
Total deposits	87		60		53		50		42
Short-term borrowings	14		19		8		6		5
Long-term debt	87		65		63		59		54
Total interest bearing liabilities	188		144		124		115		101
Net interest income	$	791	$	777	$	782	$	771	$	757


(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 10 for the FTE adjustment.


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

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)



	Quarterly Average Rates(2)
	June 30,		March 31,		December 31,		September 30,		June 30,
Fully-taxable equivalent basis(1)	2018		2018		2017		2017		2017
Assets
Interest-bearing deposits in banks	1.95	%	1.97	%	1.92	%	1.77	%	1.53	%
Securities:
Trading account securities	0.23		0.15		0.21		0.16		0.25
Available-for-sale securities:
Taxable	2.63		2.51		2.45		2.38		2.35
Tax-exempt	3.35		3.18		3.76		3.62		3.71
Total available-for-sale securities	2.81		2.67		2.75		2.64		2.62
Held-to-maturity securities - taxable	2.42		2.45		2.41		2.36		2.38
Other securities	4.58		3.98		3.86		3.35		3.18
Total securities	2.71		2.62		2.64		2.55		2.55
Loans held for sale	4.17		3.82		3.68		3.83		3.73
Loans and leases:(3)
Commercial:
Commercial and industrial	4.52		4.28		4.17		4.05		4.04
Commercial real estate:
Construction	5.26		4.73		4.47		4.55		4.26
Commercial	4.58		4.24		4.03		4.08		3.97
Commercial real estate	4.68		4.32		4.10		4.16		4.02
Total commercial	4.55		4.29		4.15		4.07		4.04
Consumer:
Automobile	3.63		3.56		3.61		3.60		3.55
Home equity	5.09		4.90		4.71		4.72		4.61
Residential mortgage	3.69		3.66		3.66		3.65		3.66
RV and marine finance	5.11		5.11		5.25		5.43		5.57
Other consumer	11.90		11.78		11.53		11.59		11.47
Total consumer	4.43		4.34		4.31		4.32		4.27
Total loans and leases	4.49		4.32		4.23		4.20		4.15
Total earning assets	4.07		3.91		3.83		3.78		3.75
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.38		0.29		0.26		0.23		0.20
Total demand deposits	0.18		0.14		0.12		0.10		0.09
Money market deposits	0.60		0.45		0.40		0.36		0.31
Savings and other domestic deposits	0.21		0.20		0.20		0.20		0.21
Core certificates of deposit	1.56		1.01		0.75		0.73		0.56
Total interest-bearing core deposits	0.51		0.36		0.32		0.30		0.26
Other domestic deposits of $250,000 or more	1.01		0.69		0.54		0.61		0.49
Brokered deposits and negotiable CDs	1.81		1.47		1.21		1.16		0.95
Total interest-bearing deposits	0.59		0.43		0.37		0.35		0.31
Short-term borrowings	1.82		1.47		1.15		0.95		0.78
Long-term debt	3.75		2.92		2.73		2.65		2.49
Total interest-bearing liabilities	1.05		0.82		0.73		0.68		0.61
Net interest rate spread	3.02		3.09		3.10		3.10		3.14
Impact of noninterest-bearing funds on margin	0.27		0.21		0.20		0.19		0.17
Net interest margin	3.29	%	3.30	%	3.30	%	3.29	%	3.31	%



Commercial Loan Derivative Impact
(Unaudited)
	Average Rates
	2018		2018		2017		2017		2017
Fully-taxable equivalent basis(1)	Second		First		Fourth		Third		Second
Commercial loans(2)(3)	4.55	%	4.29	%	4.16	%	4.10	%	4.06	%
Impact of commercial loan derivatives	—		—		(0.01	)	(0.03	)	(0.02	)
Total commercial - as reported	4.55	%	4.29	%	4.15	%	4.07	%	4.04	%

Average 30 day LIBOR	1.97	%	1.65	%	1.33	%	1.23	%	1.06	%


(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 10 for the FTE adjustment.


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


(3)	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data(1)

(Unaudited)



	Three Months Ended
	June 30,		March 31,		December 31,			September 30,		June 30,
(dollar amounts in millions, except share amounts)	2018		2018		2017			2017		2017
Interest income	$	972	$	914	$	894		$	873	$	846
Interest expense	188		144		124			115		101
Net interest income	784		770		770			758		745
Provision for credit losses	56		66		65			43		25
Net interest income after provision for credit losses	728		704		705			715		720
Service charges on deposit accounts	91		86		91			91		88
Cards and payment processing income	56		53		53			54		52
Trust and investment management services	42		44		41			39		37
Mortgage banking income	28		26		33			34		32
Insurance income	21		21		21			18		22
Capital markets fees	21		19		23			22		17
Bank owned life insurance income	17		15		18			16		15
Gain on sale of loans	15		8		17			14		12
Securities gains (losses)	—		—		(4		)	—		—
Other income	45		42		47			42		50
Total noninterest income	336		314		340			330		325
Personnel costs	396		376		373			377		392
Outside data processing and other services	69		73		71			80		75
Net occupancy	35		41		36			55		53
Equipment	38		40		36			45		43
Deposit and other insurance expense	18		18		19			19		20
Professional services	15		11		18			15		18
Marketing	18		8		10			17		19
Amortization of intangibles	13		14		14			14		14
Other expense	50		52		56			58		60
Total noninterest expense	652		633		633			680		694
Income before income taxes	412		385		412			365		351
Provision for income taxes	57		59		(20		)	90		79
Net income	355		326		432			275		272
Dividends on preferred shares	21		12		19			19		19
Net income applicable to common shares	$	334	$	314	$	413		$	256	$	253

Average common shares - basic (000)	1,103,337		1,083,836		1,077,397			1,086,038		1,088,934
Average common shares - diluted	1,122,612		1,124,778		1,130,117			1,106,491		1,108,527

Per common share
Net income - basic	$	0.30	$	0.29	$	0.38		$	0.24	$	0.23
Net income - diluted	0.30		0.28		0.37			0.23		0.23
Cash dividends declared	0.11		0.11		0.11			0.08		0.08

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	784	$	770	$	770		$	758	$	745
FTE adjustment	7		7		12			13		12
Net interest income(2)	791		777		782			771		757
Noninterest income	336		314		340			330		325
Total revenue(2)	$	1,127	$	1,091	$	1,122		$	1,101	$	1,082


(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
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in millions)	2018			2018			2017			2017			2017			1Q18		2Q17
Net origination and secondary marketing income	$	21		$	18		$	24		$	25		$	24		17	%	(13	)%
Net mortgage servicing income
Loan servicing income	14			14			13			13			13			—		8
Amortization of capitalized servicing	(8		)	(8		)	(8		)	(7		)	(7		)	—		(14	)
Operating income	6			6			5			6			6			—		—
MSR valuation adjustment (1)	—			7			2			—			(3		)	100		(100	)
Gains (losses) due to MSR hedging	—			(7		)	(1		)	—			2			(100	)	100
Net MSR risk management	—			—			1			—			(1		)	—		(100	)
Total net mortgage servicing income	$	6		$	6		$	6		$	6		$	5		—	%	20	%
All other	1			2			3			3			3			(50	)	(67	)
Mortgage banking income	$	28		$	26		$	33		$	34		$	32		8	%	(13	)%

Mortgage origination volume	$	2,127		$	1,513		$	1,784		$	1,828		$	1,756		41	%	21	%
Mortgage origination volume for sale	1,131			870			1,006			1,095			1,018			30		11

Third party mortgage loans serviced (2)	20,416			20,225			19,989			19,552			19,111			1		7
Mortgage servicing rights (2)	215			212			202			195			189			1		14
MSR % of investor servicing portfolio (2)	1.05		%	1.05		%	1.01		%	1.00		%	0.99		%	—	%	6	%


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


(2)	At period end.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)



	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2018			2018			2017			2017			2017
Allowance for loan and lease losses, beginning of period	$	721		$	691		$	675		$	668		$	673
Loan and lease losses	(53		)	(73		)	(60		)	(65		)	(57		)
Recoveries of loans previously charged off	25			35			19			22			21
Net loan and lease losses	(28		)	(38		)	(41		)	(43		)	(36		)
Provision for loan and lease losses	48			68			57			50			31
Allowance for loan and lease losses, end of period	741			721			691			675			668
Allowance for unfunded loan commitments and letters of credit, beginning of period	85			87			79			85			92
Provision for (reduction in) unfunded loan commitments and letters of credit losses	8			(2		)	8			(6		)	(7		)
Allowance for unfunded loan commitments and letters of credit, end of period	93			85			87			79			85
Total allowance for credit losses, end of period	$	834		$	806		$	778		$	754		$	753
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.02		%	1.01		%	0.99		%	0.98		%	0.98		%
Nonaccrual loans and leases (NALs)	197			188			198			200			183
Nonperforming assets (NPAs)	180			172			178			175			161
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.15		%	1.13		%	1.11		%	1.10		%	1.11		%

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



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

Total loans
Commercial:
Commercial and industrial	$	3		$	17		$	8		$	13		$	13
Commercial real estate:
Construction	—			(1		)	(1		)	(1		)	—
Commercial	(1		)	(13		)	—			(3		)	(4		)
Commercial real estate	(1		)	(14		)	(1		)	(4		)	(4		)
Total commercial	2			3			7			9			9
Consumer:
Automobile	7			10			12			9			9
Home equity	—			3			1			1			1
Residential mortgage	1			1			—			2			1
RV and marine finance	2			3			2			4			2
Other consumer	16			18			19			18			14
Total consumer	26			35			34			34			27
Total net charge-offs	$	28		$	38		$	41		$	43		$	36


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2018			2018			2017			2017			2017
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.04		%	0.24		%	0.10		%	0.19		%	0.18		%
Commercial real estate:
Construction	(0.22		)	(0.18		)	(0.14		)	(0.30		)	0.03
Commercial	(0.06		)	(0.80		)	(0.02		)	(0.21		)	(0.24		)
Commercial real estate	(0.08		)	(0.70		)	(0.04		)	(0.22		)	(0.20		)
Total commercial	0.02			0.04			0.07			0.11			0.11
Consumer:
Automobile	0.22			0.32			0.39			0.33			0.29
Home equity	0.01			0.11			0.01			0.06			0.05
Residential mortgage	0.04			0.04			0.04			0.10			0.05
RV and marine finance	0.34			0.42			0.46			0.59			0.37
Other consumer	5.60			6.51			6.99			6.51			5.81
Total consumer	0.30			0.39			0.40			0.40			0.33
Net charge-offs as a % of average loans	0.16		%	0.21		%	0.24		%	0.25		%	0.21		%

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2018			2018			2017			2017			2017
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	207		$	190		$	161		$	170		$	195
Commercial real estate	25			30			29			18			17
Automobile	4			5			6			4			4
Residential mortgage	73			82			84			75			80
RV and marine finance	1			1			1			—			—
Home equity	68			75			68			71			68
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	378			383			349			338			364
Other real estate, net:
Residential	23			23			24			26			27
Commercial	5			7			9			16			17
Total other real estate, net	28			30			33			42			44
Other NPAs (1)	6			7			7			7			7
Total nonperforming assets	$	412		$	420		$	389		$	387		$	415

Nonaccrual loans and leases as a % of total loans and leases	0.52		%	0.54		%	0.50		%	0.49		%	0.54		%
NPA ratio (2)	0.57			0.59			0.55			0.56			0.61
(NPA+90days)/(Loan+OREO) (3)	0.75			0.74			0.72			0.74			0.81



	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2018			2018			2017			2017			2017
Nonperforming assets, beginning of period	$	420		$	389		$	387		$	415		$	458
New nonperforming assets	96			158			116			85			89
Returns to accruing status	(25		)	(23		)	(25		)	(38		)	(33		)
Loan and lease losses	(21		)	(32		)	(21		)	(23		)	(17		)
Payments	(53		)	(64		)	(54		)	(44		)	(71		)
Sales and held-for-sale transfers	(5		)	(8		)	(14		)	(8		)	(11		)
Nonperforming assets, end of period	$	412		$	420		$	389		$	387		$	415


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


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


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

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2018			2018			2017			2017			2017
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	9		$	9		$	9		$	14		$	22
Commercial real estate	—			1			3			10			17
Automobile	6			6			7			10			9
Residential mortgage (excluding loans guaranteed by the U.S. Government)	18			19			21			14			17
RV and marine finance	1			2			1			2			2
Home equity	16			15			18			16			18
Other consumer	4			4			5			4			3
Total, excl. loans guaranteed by the U.S. Government	54			56			64			70			88
Add: loans guaranteed by U.S. Government	78			50			51			49			48
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	132		$	106		$	115		$	119		$	136

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.07		%	0.08		%	0.09		%	0.10		%	0.13		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.11			0.07			0.07			0.07			0.07
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.18			0.15			0.16			0.17			0.20

Accruing troubled debt restructured loans:
Commercial and industrial	$	314		$	316		$	300		$	268		$	270
Commercial real estate	65			76			78			80			74
Automobile	32			32			30			29			28
Home equity	258			261			265			265			269
Residential mortgage	221			224			224			235			238
RV and marine finance	1			1			1			1			1
Other consumer	9			6			8			7			4
Total accruing troubled debt restructured loans	$	900		$	916		$	906		$	885		$	884

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	87		$	83		$	82		$	96		$	90
Commercial real estate	14			16			15			4			4
Automobile	3			3			4			4			4
Home equity	28			31			28			31			29
Residential mortgage	46			52			55			50			56
RV and marine finance	1			—			—			—			—
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	179		$	185		$	184		$	185		$	183

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2018			2018			2017			2017			2017
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	11,472		$	11,308		$	10,814		$	10,699		$	10,654
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,207		)	(1,207		)	(1,076		)	(1,076		)	(1,076		)
Accumulated other comprehensive income offset	729			676			528			370			350
Goodwill and other intangibles, net of related taxes	(2,229		)	(2,244		)	(2,200		)	(2,150		)	(2,161		)
Deferred tax assets that arise from tax loss and credit carryforwards	(28		)	(29		)	(25		)	(26		)	(27		)
Common equity tier 1 capital	8,737			8,504			8,041			7,817			7,740
Additional tier 1 capital
Shareholders’ preferred equity	1,207			1,207			1,076			1,076			1,076
Other	—			1			(7		)	(7		)	(7		)
Tier 1 capital	9,944			9,712			9,110			8,886			8,809
Long-term debt and other tier 2 qualifying instruments	809			804			869			885			887
Qualifying allowance for loan and lease losses	834			806			778			754			753
Tier 2 capital	1,643			1,610			1,647			1,639			1,640
Total risk-based capital	$	11,587		$	11,322		$	10,757		$	10,525		$	10,449
Risk-weighted assets (RWA)(1)	$	82,951		$	81,365		$	80,340		$	78,631		$	78,366
Common equity tier 1 risk-based capital ratio(1)	10.53		%	10.45		%	10.01		%	9.94		%	9.88		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	9.65			9.53			9.09			8.96			8.98
Tier 1 risk-based capital ratio(1)	11.99			11.94			11.34			11.30			11.24
Total risk-based capital ratio(1)	13.97			13.92			13.39			13.39			13.33
Non-regulatory capital data:
Tangible common equity / RWA ratio(1)	9.67			9.65			9.31			9.41			9.37


(1)	June 30, 2018, figures are estimated.

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary



	June 30,		March 31,		December 31,		September 30,		June 30,
	2018		2018		2017		2017		2017
Common stock price, per share
High(1)	$	15.850	$	16.600	$	14.930	$	14.050	$	13.785
Low(1)	14.260		14.490		13.040		12.140		12.225
Close	14.760		15.100		14.560		13.960		13.520
Average closing price	15.040		15.718		13.470		13.152		12.949
Dividends, per share
Cash dividends declared per common share	$	0.11	$	0.11	$	0.11	$	0.08	$	0.08
Common shares outstanding (000)
Average - basic	1,103,337		1,083,836		1,077,397		1,086,038		1,088,934
Average - diluted	1,122,612		1,124,778		1,130,117		1,106,491		1,108,527
Ending	1,104,227		1,101,796		1,072,027		1,080,946		1,090,016
Tangible book value per common share(2)	$	7.27	$	7.12	$	6.97	$	6.85	$	6.74
Common share repurchases (000)
Number of shares repurchased	—		3,007		9,785		9,645		—

Non-regulatory capital



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2018			2018			2017			2017			2017
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	11,472		$	11,308		$	10,814		$	10,699		$	10,654
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(1,993		)	(1,993		)
Less: other intangible assets	(319		)	(333		)	(346		)	(360		)	(374		)
Add: related deferred tax liability(2)	67			70			73			126			131
Total tangible equity	9,227			9,052			8,548			8,472			8,418
Less: preferred equity	(1,203		)	(1,203		)	(1,071		)	(1,071		)	(1,071		)
Total tangible common equity	$	8,024		$	7,849		$	7,477		$	7,401		$	7,347
Total assets	$	105,358		$	104,246		$	104,185		$	101,988		$	101,407
Less: goodwill	(1,993		)	(1,993		)	(1,993		)	(1,993		)	(1,993		)
Less: other intangible assets	(319		)	(333		)	(346		)	(360		)	(374		)
Add: related deferred tax liability(2)	67			70			73			126			131
Total tangible assets	$	103,113		$	101,990		$	101,919		$	99,761		$	99,171
Tangible equity / tangible asset ratio	8.95		%	8.88		%	8.39		%	8.49		%	8.49		%
Tangible common equity / tangible asset ratio	7.78			7.70			7.34			7.42			7.41
Other data:
Number of employees (Average full-time equivalent)	15,732			15,599			15,375			15,508			15,877
Number of domestic full-service branches(3)	968			966			966			958			996
ATM Count	1,831			1,866			1,848			1,860			1,860


(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 Incorporated

Consolidated Year To Date Average Balance Sheets

(Unaudited)



	YTD Average Balances (2)
	Six Months Ended June 30,						Change
(dollar amounts in millions)	2018			2017			Amount			Percent
Assets
Interest-bearing deposits in banks	$	87		$	101		$	(14	)	(14	)%
Securities:
Trading account securities	84			114			(30		)	(26	)
Available-for-sale securities:
Taxable	10,994			12,401			(1,407		)	(11	)
Tax-exempt	3,593			3,075			518			17
Total available-for-sale securities	14,587			15,476			(889		)	(6	)
Held-to-maturity securities - taxable	8,791			7,541			1,250			17
Other securities	602			569			33			6
Total securities	24,064			23,700			364			2
Loans held for sale	549			470			79			17
Loans and leases:(1)
Commercial:
Commercial and industrial	28,555			27,957			598			2
Commercial real estate:
Construction	1,157			1,221			(64		)	(5	)
Commercial	6,188			5,990			198			3
Commercial real estate	7,345			7,211			134			2
Total commercial	35,900			35,168			732			2
Consumer:
Automobile	12,186			11,194			992			9
Home equity	9,986			9,994			(8		)	—
Residential mortgage	9,401			7,879			1,522			19
RV and marine finance	2,574			1,957			617			32
Other consumer	1,143			972			171			18
Total consumer	35,290			31,996			3,294			10
Total loans and leases	71,190			67,164			4,026			6
Allowance for loan and lease losses	(726		)	(654		)	(72		)	11
Net loans and leases	70,464			66,510			3,954			6
Total earning assets	95,890			91,435			4,455			5
Cash and due from banks	1,250			1,647			(397		)	(24	)
Intangible assets	2,325			2,380			(55		)	(2	)
All other assets	5,598			5,424			174			3
Total assets	$	104,337		$	100,232		4,105			4	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	20,477		$	21,664		$	(1,187	)	(5	)%
Demand deposits - interest-bearing	18,877			17,127			1,750			10
Total demand deposits	39,354			38,791			563			1
Money market deposits	20,811			18,934			1,877			10
Savings and other domestic deposits	11,182			11,930			(748		)	(6	)
Core certificates of deposit	3,048			2,243			805			36
Total core deposits	74,395			71,898			2,497			3
Other domestic deposits of $250,000 or more	245			474			(229		)	(48	)
Brokered deposits and negotiable CDs	3,485			3,876			(391		)	(10	)
Total deposits	78,125			76,248			1,877			2
Short-term borrowings	4,149			3,236			913			28
Long-term debt	9,092			8,630			462			5
Total interest-bearing liabilities	70,889			66,450			4,439			7
All other liabilities	1,876			1,609			267			17
Shareholders’ equity	11,095			10,509			586			6
Total liabilities and shareholders’ equity	$	104,337		$	100,232		$	4,105		4	%


(1)	Includes nonaccrual loans.


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

Huntington Bancshares Incorporated

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

(Unaudited)



	YTD Interest Income / Expense
	Six Months Ended June 30,
(dollar amounts in millions)	2018		2017
Assets
Interest-bearing deposits in banks	$	1	$	1
Securities:
Trading account securities	—		—
Available-for-sale securities:
Taxable	141		146
Tax-exempt	59		58
Total available-for-sale securities	200		204
Held-to-maturity securities - taxable	107		89
Other securities	13		9
Total securities	320		302
Loans held for sale	11		9
Loans and leases:
Commercial:
Commercial and industrial	632		564
Commercial real estate:
Construction	29		25
Commercial	137		115
Commercial real estate	166		140
Total commercial	798		704
Consumer:
Automobile	217		197
Home equity	247		225
Residential mortgage	173		144
RV and marine finance	65		54
Other consumer	68		55
Total consumer	770		675
Total loans and leases	1,568		1,379
Total earning assets	$	1,900	$	1,691
Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—
Demand deposits - interest-bearing	31		15
Total demand deposits	31		15
Money market deposits	54		27
Savings and other domestic deposits	12		13
Core certificates of deposit	20		5
Total core deposits	117		60
Other domestic deposits of $250,000 or more	1		1
Brokered deposits and negotiable CDs	29		16
Total deposits	147		77
Short-term borrowings	33		11
Long-term debt	152		104
Total interest-bearing liabilities	332		192
Net interest income	$	1,568	$	1,499


(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 21 for the FTE adjustment.


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

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin - Yield

(Unaudited)



	YTD Average Rates(2)
	Six Months Ended June 30,
Fully-taxable equivalent basis(1)	2018		2017
Assets
Interest-bearing deposits in banks	1.96	%	1.31	%
Securities:
Trading account securities	0.19		0.17
Available-for-sale securities:
Taxable	2.57		2.34
Tax-exempt	3.26		3.74
Total available-for-sale securities	2.74		2.62
Held-to-maturity securities - taxable	2.44		2.37
Other securities	4.28		3.23
Total securities	2.67		2.55
Loans held for sale	4.02		3.76
Loans and leases:(3)
Commercial:
Commercial and industrial	4.40		4.01
Commercial real estate:
Construction	4.99		4.09
Commercial	4.41		3.83
Commercial real estate	4.50		3.88
Total commercial	4.42		3.98
Consumer:
Automobile	3.60		3.55
Home equity	4.99		4.54
Residential mortgage	3.68		3.65
RV and marine finance	5.11		5.60
Other consumer	11.80		11.49
Total consumer	4.39		4.25
Total loans and leases	4.41		4.11
Total earning assets	4.00	%	3.73	%
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—	%	—	%
Demand deposits - interest-bearing	0.33		0.18
Total demand deposit	0.16		0.08
Money market deposits	0.52		0.29
Savings and other domestic deposits	0.20		0.21
Core certificates of deposit	1.35		0.47
Total interest-bearing core deposits	0.44		0.24
Other domestic deposits of $250,000 or more	0.85		0.47
Brokered deposits and negotiable CDs	1.65		0.83
Total interest-bearing deposits	0.51		0.28
Short-term borrowings	1.60		0.69
Long-term debt	3.34		2.41
Total interest-bearing liabilities	0.94		0.58
Net interest rate spread	3.06		3.15
Impact of noninterest-bearing funds on margin	0.24		0.16
Net interest margin	3.30	%	3.31	%



Commercial Loan Derivative Impact
(Unaudited)
	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis(1)	2018		2017
Commercial loans(2)(3)	4.42	%	4.00	%
Impact of commercial loan derivatives	—	%	(0.02	)%
Total commercial - as reported	4.42	%	3.98	%

Average 30 day LIBOR	1.81	%	0.94	%


(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 21 for the FTE adjustment.


(2)	Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.


(3)	Includes the impact of nonaccrual loans.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data(1)

(Unaudited)



	Six Months Ended June 30,				Change
(dollar amounts in millions, except per share amounts)	2018		2017		Amount			Percent
Interest income	$	1,886	$	1,667	$	219		13	%
Interest expense	332		192		140			73
Net interest income	1,554		1,475		79			5
Provision for credit losses	122		93		29			31
Net interest income after provision for credit losses	1,432		1,382		50			4
Service charges on deposit accounts	177		171		6			4
Cards and payment processing income	109		100		9			9
Trust and investment management services	86		76		10			13
Mortgage banking income	54		64		(10		)	(16	)
Insurance income	42		42		—			—
Capital market fees	40		31		9			29
Bank owned life insurance income	32		33		(1		)	(3	)
Gain on sale of loans	23		25		(2		)	(8	)
Securities gains (losses)	—		—		—			—
Other income	87		96		(9		)	(9	)
Total noninterest income	650		638		12			2
Personnel costs	772		774		(2		)	—
Outside data processing and other services	142		162		(20		)	(12	)
Net occupancy	76		120		(44		)	(37	)
Equipment	78		90		(12		)	(13	)
Deposit and other insurance expense	36		41		(5		)	(12	)
Professional services	26		36		(10		)	(28	)
Marketing	26		33		(7		)	(21	)
Amortization of intangibles	27		29		(2		)	(7	)
Other expense	102		117		(15		)	(13	)
Total noninterest expense	1,285		1,402		(117		)	(8	)
Income before income taxes	797		618		179			29
Provision for income taxes	116		138		(22		)	(16	)
Net income	681		480		201			42
Dividends on preferred shares	33		38		(5		)	(13	)
Net income applicable to common shares	$	648	$	442	$	206		47	%
Average common shares - basic	1,093,587		1,087,654		6			1	%
Average common shares - diluted	1,123,646		1,108,572		15			1
Per common share
Net income - basic	$	0.59	$	0.41	$	0.18		44
Net income - diluted	0.58		0.40		0.18			45
Cash dividends declared	0.22		0.16		0.06			38
Revenue - fully taxable equivalent (FTE)
Net interest income	$	1,554	$	1,475	$	79		5
FTE adjustment(2)	14		24		(10		)	(42	)
Net interest income	1,568		1,499		69			5
Noninterest income	650		638		12			2
Total revenue(2)	$	2,218	$	2,137	$	81		4	%


(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

Year To Date Mortgage Banking Noninterest Income

(Unaudited)



	Six Months Ended June 30,						Change
(dollar amounts in millions)	2018			2017			Amount			Percent
Net origination and secondary marketing income	$	39		$	46		(7		)	(15	)%
Net mortgage servicing income
Loan servicing income	28			26			2			8
Amortization of capitalized servicing	(16		)	(14		)	(2		)	(14	)
Operating income	12			12			—			—
MSR valuation adjustment (1)	7			(1		)	8			(800	)
Gains (losses) due to MSR hedging	(7		)	1			(8		)	800
Net MSR risk management	—			—			—			—
Total net mortgage servicing income	$	12		$	12		$	—		—	%
All other	3			6			(3		)	(50	)
Mortgage banking income	$	54		$	64		$	(10	)	(16	)%

Mortgage origination volume	$	3,640		$	3,022		$	618		20	%
Mortgage origination volume for sale	2,001			1,811			190			10	%

Third party mortgage loans serviced (2)	20,416			19,111			1,305			7
Mortgage servicing rights (2)	215			189			26			14
MSR % of investor servicing portfolio	1.05		%	0.99		%	0.06		%	6	%


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


(2)	At period end.

Huntington Bancshares Incorporated

Year To Date Credit Reserves Analysis

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in millions)	2018			2017
Allowance for loan and lease losses, beginning of period	$	691		$	638
Loan and lease losses	(126		)	(127		)
Recoveries of loans previously charged off	60			52
Net loan and lease losses	(66		)	(75		)
Provision for loan and lease losses	116			105
Allowance of assets sold or transferred to loans held for sale	—			—
Allowance for loan and lease losses, end of period	741			668
Allowance for unfunded loan commitments and letters of credit, beginning of period	$	87		$	98
Provision for (reduction in) unfunded loan commitments and letters of credit losses	6			(13		)
Allowance for unfunded loan commitments and letters of credit, end of period	93			85
Total allowance for credit losses	$	834		$	753
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.02		%	0.98		%
Nonaccrual loans and leases (NALs)	197			183
Nonperforming assets (NPAs)	180			161
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.15		%	1.11		%

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in millions)	2018			2017
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	20		$	21
Commercial real estate:
Construction	(1		)	(3		)
Commercial	(14		)	(3		)
Commercial real estate	(15		)	(6		)
Total commercial	5			15
Consumer:
Automobile	17			21
Home equity	3			3
Residential mortgage	2			4
RV and marine finance	5			4
Other consumer	34			28
Total consumer	61			60
Total net charge-offs	$	66		$	75


	Six Months Ended June 30,
	2018			2017
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.14		%	0.15		%
Commercial real estate:
Construction	(0.20		)	(0.50		)
Commercial	(0.42		)	(0.09		)
Commercial real estate	(0.39		)	(0.16		)
Total commercial	0.03			0.09
Consumer:
Automobile	0.27			0.37
Home equity	0.06			0.06
Residential mortgage	0.04			0.09
RV and marine finance	0.38			0.43
Other consumer	6.02			5.93
Total consumer	0.34			0.38
Net charge-offs as a % of average loans	0.19		%	0.22		%

Huntington Bancshares Incorporated

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

(Unaudited)



	June 30,
(dollar amounts in millions)	2018			2017
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	207		$	195
Commercial real estate	25			17
Automobile	4			4
Residential mortgage	73			80
RV and marine finance	1			—
Home equity	68			68
Other consumer	—			—
Total nonaccrual loans and leases	378			364
Other real estate, net:
Residential	23			27
Commercial	5			17
Total other real estate, net	28			44
Other NPAs (1)	6			7
Total nonperforming assets (3)	$	412		$	415

Nonaccrual loans and leases as a % of total loans and leases	0.52		%	0.54		%
NPA ratio (2)	0.57			0.61



	Six Months Ended June 30,
(dollar amounts in millions)	2018			2017
Nonperforming assets, beginning of period	$	389		$	481
New nonperforming assets	254			214
Returns to accruing status	(48		)	(56		)
Loan and lease losses	(53		)	(51		)
Payments	(117		)	(153		)
Sales and held-for-sale transfers	(13		)	(20		)
Nonperforming assets, end of period (2)	$	412		$	415


(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 25 are included in the total nonperforming assets balance.

Huntington Bancshares Incorporated

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

(Unaudited)



	Six Months Ended June 30,
(dollar amounts in millions)	2018			2017
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	9		$	22
Commercial real estate	—			17
Automobile	6			9
Residential mortgage (excluding loans guaranteed by the U.S. Government)	18			17
RV and marine finance	1			2
Home equity	16			18
Other consumer	4			3
Total, excl. loans guaranteed by the U.S. Government	54			88
Add: loans guaranteed by U.S. Government	78			48
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	132		$	136
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.07		%	0.13		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.11			0.07
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.18			0.20
Accruing troubled debt restructured loans:
Commercial and industrial	$	314		$	270
Commercial real estate	65			75
Automobile	32			28
Home equity	258			269
Residential mortgage	221			238
RV and marine finance	1			1
Other consumer	9			4
Total accruing troubled debt restructured loans	$	900		$	885
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	87		$	90
Commercial real estate	14			4
Automobile	3			4
Home equity	28			29
Residential mortgage	46			56
RV and marine finance	1			—
Other consumer	—			—
Total nonaccruing troubled debt restructured loans	$	179		$	183

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 25, 2018

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports