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

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - HUNTINGTON BANCSHARES INC /MD/	hban20181231_8kex991.htm
8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban20181231_8k.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

December 31, 2018

Table of Contents



Quarterly Key Statistics	1

Annual Key Statistics	2

Consolidated Balance Sheets	4

Loans and Leases Composition	5

Deposits Composition	6

Consolidated Quarterly Average Balance Sheets	7

Consolidated Quarterly Net Interest Margin - Interest Income / Expense	8

Consolidated Quarterly Net Interest Margin - Yield	9

Selected Quarterly Income Statement Data	10

Quarterly Mortgage Banking Income	11

Quarterly Credit Reserves Analysis	12

Quarterly Net Charge-Off Analysis	13

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	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 Annual Average Balance Sheets	18

Consolidated Annual Net Interest Margin - Interest Income / Expense	19

Consolidated Annual Net Interest Margin - Yield	20

Selected Annual Income Statement Data	21

Annual Mortgage Banking Income	22

Annual Credit Reserves Analysis	23

Annual Net Charge-Off Analysis	24

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	25

Annual 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
(dollar amounts in millions, except per data, share count in thousands)	December 31,			September 30,			December 31,			Percent Changes vs.
	2018			2018			2017			3Q18		4Q17
Net interest income(3)	$	841		$	810		$	782		4	%	8	%
FTE adjustment	(8		)	(8		)	(12		)	—		33
Net interest income	833			802			770			4		8
Provision for credit losses	60			53			65			13		(8	)
Noninterest income	329			342			340			(4	)	(3	)
Noninterest expense	711			651			633			9		12
Income before income taxes	391			440			412			(11	)	(5	)
Provision for income taxes	57			62			(20		)	(8	)	385
Net income	334			378			432			(12	)	(23	)
Dividends on preferred shares	19			18			19			6		—
Net income applicable to common shares	$	315		$	360		$	413		(13	)%	(24	)%

Net income per common share - diluted	$	0.29		$	0.33		$	0.37		(12	)%	(22	)%
Cash dividends declared per common share	0.14			0.14			0.11			—		27
Tangible book value per common share at end of period	7.34			7.06			6.97			4		5
Number of common shares repurchased	14,967			43,670			9,785			(66	)	53
Average common shares - basic	1,054,460			1,084,536			1,077,397			(3	)	(2	)
Average common shares - diluted	1,073,055			1,103,740			1,130,117			(3	)	(5	)
Ending common shares outstanding	1,046,767			1,061,529			1,072,027			(1	)	(2	)
Return on average assets	1.25		%	1.42		%	1.67		%
Return on average common shareholders’ equity	12.9			14.3			17.0
Return on average tangible common shareholders’ equity(2)	17.3			19.0			22.7
Net interest margin(3)	3.41			3.32			3.30
Efficiency ratio(4)	58.7			55.3			54.9
Effective tax rate	14.6			14.1			(4.8		)
Average total assets	$	105,877		$	105,355		$	102,302		—		3
Average earning assets	97,752			96,753			93,937			1		4
Average loans and leases	73,822			72,751			68,940			1		7
Average loans and leases - linked quarter annualized growth rate	5.9		%	4.8		%	3.9		%
Average total deposits	$	82,931		$	81,498		$	77,737		2		7
Average core deposits(5)	79,078			77,680			73,946			2		7
Average core deposits - linked quarter annualized growth rate	7.2		%	12.2		%	2.2		%
Average shareholders’ equity	10,889			11,156			10,677			(2	)	2
Average common total shareholders' equity	9,686			9,953			9,606			(3	)	1
Average tangible common shareholders' equity	7,460			7,713			7,383			(3	)	1
Total assets at end of period	108,781			105,652			104,185			3		4
Total shareholders’ equity at end of period	11,102			10,934			10,814			2		3

NCOs as a % of average loans and leases	0.27		%	0.16		%	0.24		%
NAL ratio	0.45			0.50			0.50
NPA ratio(6)	0.52			0.55			0.55
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.03			1.04			0.99
Common equity tier 1 risk-based capital ratio(7)	9.65			9.89			10.01
Tangible common equity / tangible asset ratio(8)	7.21			7.25			7.34

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

Huntington Bancshares Incorporated

Annual Key Statistics(1)

(Unaudited)



	Year Ended December 31,						Change
(dollar amounts in millions, except per data, share count in thousands)	2018			2017			Amount			Percent
Net interest income(3)	$	3,219		$	3,052		$	167		5	%
FTE adjustment	(30		)	(50		)	20			40
Net interest income	3,189			3,002			187			6
Provision for credit losses	235			201			34			17
Noninterest income	1,321			1,307			14			1
Noninterest expense	2,647			2,714			(67		)	(2	)
Income before income taxes	1,628			1,394			234			17
Provision for income taxes	235			208			27			13
Net Income	1,393			1,186			207			17
Dividends on preferred shares	70			76			(6		)	(8	)
Net income applicable to common shares	$	1,323		$	1,110		$	213		19	%

Net income per common share - diluted	$	1.20		$	1.00		$	0.20		20	%
Cash dividends declared per common share	0.50			0.35			0.15			43

Average common shares - basic	1,081,542			1,084,686			(3,144		)	—
Average common shares - diluted	1,105,985			1,136,186			(30,201		)	(3	)

Return on average assets	1.33		%	1.17		%
Return on average common shareholders’ equity	13.4			11.6
Return on average tangible common shareholders’ equity(2)	17.9			15.7
Net interest margin(3)	3.33			3.30
Efficiency ratio(4)	56.9			60.9
Effective tax rate	14.5			14.9

Average total assets	$	104,982		$	101,021		$	3,961		4
Average earning assets	96,577			92,423			4,154			4
Average loans and leases	72,246			67,891			4,355			6
Average total deposits	80,186			76,950			3,236			4
Average core deposits(5)	76,403			72,830			3,573			5
Average shareholders’ equity	11,059			10,611			448			4
Average common total shareholders' equity	9,891			9,539			352			4
Average tangible common shareholders' equity	7,647			7,304			343			5

NCOs as a % of average loans and leases	0.20		%	0.23		%
NAL ratio	0.45			0.50
NPA ratio(6)	0.52			0.55

See Notes to the Annual and Quarterly Key Statistics.

Key Statistics Footnotes


(1)	Comparisons for certain 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)	December 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.

Huntington Bancshares Incorporated

Consolidated Balance Sheets



	December 31,			December 31,
(dollar amounts in millions)	2018			2017			Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,108		$	1,212		(9	)%
Interest-bearing deposits in Federal Reserve Bank	1,564			308			408
Interest-bearing deposits in banks	53			47			13
Trading account securities	105			86			22
Available-for-sale securities	13,780			14,869			(7	)
Held-to-maturity securities	8,565			9,091			(6	)
Other securities	565			600			(6	)
Loans held for sale	804			488			65
Loans and leases(1)	74,900			70,117			7
Allowance for loan and lease losses	(772		)	(691		)	(12	)
Net loans and leases	74,128			69,426			7
Bank owned life insurance	2,507			2,466			2
Premises and equipment	790			864			(9	)
Goodwill	1,989			1,993			—
Service rights and other intangible assets	535			584			(8	)
Other assets	2,288			2,151			6
Total assets	$	108,781		$	104,185		4	%

Liabilities and shareholders’ equity
Liabilities
Deposits(2)	$	84,774		$	77,041		10	%
Short-term borrowings	2,017			5,056			(60	)
Long-term debt	8,625			9,206			(6	)
Other liabilities	2,263			2,068			9
Total liabilities	97,679			93,371			5

Shareholders' equity
Preferred stock	1,203			1,071			12
Common stock	11			11			—
Capital surplus	9,181			9,707			(5	)
Less treasury shares, at cost	(45		)	(35		)	(29	)
Accumulated other comprehensive loss	(609		)	(528		)	(15	)
Retained earnings (deficit)	1,361			588			131
Total shareholders’ equity	11,102			10,814			3
Total liabilities and shareholders’ equity	$	108,781		$	104,185		4	%

Common shares authorized (par value of $0.01)	1,500,000,000			1,500,000,000
Common shares issued	1,050,584,637			1,075,294,946
Common shares outstanding	1,046,767,252			1,072,026,681
Treasury shares outstanding	3,817,385			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)



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2018				2018				2018				2018				2017
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	30,605	41	%	$	29,196	40	%	$	28,850	40	%	$	28,622	40	%	$	28,107	40	%
Commercial real estate:
Construction	1,185		2		1,111		2		1,083		1		1,167		2		1,217		2
Commercial	5,657		8		5,962		8		6,118		8		6,245		9		6,008		9
Commercial real estate	6,842		10		7,073		10		7,201		9		7,412		11		7,225		11
Total commercial	37,447		51		36,269		50		36,051		49		36,034		51		35,332		51
Consumer:
Automobile	12,429		16		12,375		17		12,390		17		12,146		17		12,100		17
Home equity	9,722		13		9,850		13		9,907		14		9,987		14		10,099		14
Residential mortgage	10,728		14		10,459		14		10,006		14		9,357		13		9,026		13
RV and marine finance	3,254		4		3,152		4		2,846		4		2,549		3		2,438		3
Other consumer	1,320		2		1,265		2		1,206		2		1,090		2		1,122		2
Total consumer	37,453		49		37,101		50		36,355		51		35,129		49		34,785		49
Total loans and leases	$	74,900	100	%	$	73,370	100	%	$	72,406	100	%	$	71,163	100	%	$	70,117	100	%



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2018				2018				2018				2018				2017
Ending Balances by Business Segment:
Consumer and Business Banking	$	22,333	30	%	$	22,271	30	%	$	21,888	30	%	$	21,471	31	%	$	21,379	31	%
Commercial Banking	27,191		36		26,465		36		26,373		36		26,311		37		25,767		37
Vehicle Finance	19,434		26		18,880		26		18,569		26		18,090		25		17,818		25
RBHPCG	5,886		8		5,734		8		5,527		8		5,227		7		5,145		7
Treasury / Other	56		—		20		—		49		—		64		—		8		—
Total loans and leases	$	74,900	100	%	$	73,370	100	%	$	72,406	100	%	$	71,163	100	%	$	70,117	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	22,321	30	%	$	22,049	30	%	$	21,653	31	%	$	21,429	31	%	$	21,096	31	%
Commercial Banking	26,405		36		26,322		36		26,505		37		25,969		37		25,208		37
Vehicle Finance	19,177		26		18,640		26		18,280		25		17,814		25		17,497		25
RBHPCG	5,793		8		5,641		8		5,355		7		5,181		7		5,071		7
Treasury / Other	126		—		99		—		94		—		91		—		68		—
Total loans and leases	$	73,822	100	%	$	72,751	100	%	$	71,887	100	%	$	70,484	100	%	$	68,940	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2018				2018				2018				2018				2017
Ending Balances by Type:
Demand deposits - noninterest-bearing	$	21,783	26	%	$	19,863	24	%	$	20,353	26	%	$	20,807	26	%	$	21,546	28	%
Demand deposits - interest-bearing	20,042		24		19,615		24		19,026		24		19,337		25		18,001		23
Money market deposits	22,721		27		21,411		26		20,990		26		20,849		26		20,690		27
Savings and other domestic deposits	10,451		12		11,604		14		10,987		14		11,291		14		11,270		15
Core certificates of deposit	5,924		7		5,358		7		4,402		6		3,157		4		1,934		3
Total core deposits	80,921		96		77,851		95		75,758		96		75,441		95		73,441		96
Other domestic deposits of $250,000 or more	337		—		318		1		265		—		228		—		239		—
Brokered deposits and negotiable CDs	3,516		4		3,520		4		3,564		4		3,802		5		3,361		4
Total deposits	$	84,774	100	%	$	81,689	100	%	$	79,587	100	%	$	79,471	100	%	$	77,041	100	%
Total core deposits:
Commercial	$	37,268	46	%	$	35,455	46	%	$	34,094	45	%	$	34,615	46	%	$	34,273	47	%
Consumer	43,653		54		42,396		54		41,664		55		40,826		54		39,168		53
Total core deposits	$	80,921	100	%	$	77,851	100	%	$	75,758	100	%	$	75,441	100	%	$	73,441	100	%
Ending Balances by Business Segment:
Consumer and Business Banking	$	50,300	59	%	$	49,434	61	%	$	48,186	60	%	$	47,124	59	%	$	45,643	59	%
Commercial Banking	23,184		28		22,288		27		21,142		27		21,838		28		21,235		28
Vehicle Finance	346		—		348		—		340		—		345		—		358		—
RBHPCG	6,809		8		5,783		7		5,985		8		6,053		8		6,057		8
Treasury / Other(1)	4,135		5		3,836		5		3,934		5		4,111		5		3,748		5
Total deposits	$	84,774	100	%	$	81,689	100	%	$	79,587	100	%	$	79,471	100	%	$	77,041	100	%



	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2018				2018				2018				2018				2017
Average Balances by Business Segment:
Consumer and Business Banking	$	50,037	61	%	$	48,659	60	%	$	47,242	60	%	$	45,310	59	%	$	45,625	59	%
Commercial Banking	22,673		27		22,823		28		21,671		27		21,679		28		22,118		28
Vehicle Finance	335		—		337		—		328		—		349		—		323		—
RBHPCG	5,936		7		5,694		7		5,947		8		5,873		8		5,851		8
Treasury / Other(1)	3,950		5		3,985		5		4,102		5		3,735		5		3,820		5
Total deposits	$	82,931	100	%	$	81,498	100	%	$	79,290	100	%	$	76,946	100	%	$	77,737	100	%


(1)	Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)



	Quarterly Average Balances (1)
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in millions)	2018			2018			2018			2018			2017			3Q18		4Q17
Assets
Interest-bearing deposits in Federal Reserve Bank (2)	$	483		$	—		$	—		$	—		$	—		100	%	100	%
Interest-bearing deposits in banks	97			83			84			90			90			17		8
Securities:
Trading account securities	131			82			82			87			87			60		51
Available-for-sale securities:
Taxable	10,351			10,469			10,832			11,158			11,154			(1	)	(7	)
Tax-exempt	3,176			3,496			3,554			3,633			3,404			(9	)	(7	)
Total available-for-sale securities	13,527			13,965			14,386			14,791			14,558			(3	)	(7	)
Held-to-maturity securities - taxable	8,433			8,560			8,706			8,877			9,066			(1	)	(7	)
Other securities	565			567			599			605			598			—		(6	)
Total securities	22,656			23,174			23,773			24,360			24,309			(2	)	(7	)
Loans held for sale	694			745			619			478			598			(7	)	16
Loans and leases:(3)
Commercial:
Commercial and industrial	29,557			28,870			28,863			28,243			27,445			2		8
Commercial real estate:
Construction	1,138			1,132			1,126			1,189			1,199			1		(5	)
Commercial	5,806			6,019			6,233			6,142			5,997			(4	)	(3	)
Commercial real estate	6,944			7,151			7,359			7,331			7,196			(3	)	(4	)
Total commercial	36,501			36,021			36,222			35,574			34,641			1		5
Consumer:
Automobile	12,423			12,368			12,271			12,100			11,963			—		4
Home equity	9,817			9,873			9,941			10,040			10,027			(1	)	(2	)
Residential mortgage	10,574			10,236			9,624			9,174			8,809			3		20
RV and marine finance	3,216			3,016			2,667			2,481			2,405			7		34
Other consumer	1,291			1,237			1,162			1,115			1,095			4		18
Total consumer	37,321			36,730			35,665			34,910			34,299			2		9
Total loans and leases	73,822			72,751			71,887			70,484			68,940			1		7
Allowance for loan and lease losses	(777		)	(759		)	(742		)	(709		)	(688		)	(2	)	(13	)
Net loans and leases	73,045			71,992			71,145			69,775			68,252			1		7
Total earning assets	97,752			96,753			96,363			95,412			93,937			1		4
Cash and due from banks	909			1,330			1,283			1,217			1,226			(32	)	(26	)
Intangible assets	2,288			2,305			2,318			2,332			2,346			(1	)	(2	)
All other assets	5,705			5,726			5,599			5,596			5,481			—		4
Total assets	$	105,877		$	105,355		$	104,821		$	103,848		$	102,302		—	%	3	%
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	20,384			20,230			20,382			20,572			21,745			1	%	(6	)%
Demand deposits - interest-bearing	19,860			19,553			19,121			18,630			18,175			2		9
Total demand deposits	40,244			39,783			39,503			39,202			39,920			1		1
Money market deposits	22,595			21,547			20,943			20,678			20,731			5		9
Savings and other domestic deposits	10,534			11,434			11,146			11,219			11,348			(8	)	(7	)
Core certificates of deposit	5,705			4,916			3,794			2,293			1,947			16		193
Total core deposits	79,078			77,680			75,386			73,392			73,946			2		7
Other domestic deposits of $250,000 or more	346			285			243			247			400			21		(14	)
Brokered deposits and negotiable CDs	3,507			3,533			3,661			3,307			3,391			(1	)	3
Total deposits	82,931			81,498			79,290			76,946			77,737			2		7
Short-term borrowings	1,006			1,732			3,082			5,228			2,837			(42	)	(65	)
Long-term debt	8,871			8,915			9,225			8,958			9,232			—		(4	)
Total interest-bearing liabilities	72,424			71,915			71,215			70,560			68,061			1		6
All other liabilities	2,180			2,054			1,891			1,861			1,819			6		20
Shareholders’ equity	10,889			11,156			11,333			10,855			10,677			(2	)	2
Total liabilities and shareholders’ equity	$	105,877		$	105,355		$	104,821		$	103,848		$	102,302		—	%	3	%


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


(2)	Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018.


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

Huntington Bancshares Incorporated

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

(Unaudited)



	Quarterly Interest Income / Expense
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollar amounts in millions)	2018		2018		2018		2018		2017
Assets
Interest-bearing deposits in Federal Reserve Bank (3)	$	3	$	—	$	—	$	—	$	—
Interest-bearing deposits in banks	1		—		1		—		1
Securities:
Trading account securities	1		—		—		—		—
Available-for-sale securities:
Taxable	70		69		71		70		69
Tax-exempt	33		30		30		29		31
Total available-for-sale securities	103		99		101		99		100
Held-to-maturity securities - taxable	52		52		53		54		55
Other securities	5		7		7		6		6
Total securities	161		158		161		159		161
Loans held for sale	7		8		6		5		5
Loans and leases:
Commercial:
Commercial and industrial	363		342		329		303		292
Commercial real estate:
Construction	16		15		15		14		14
Commercial	74		72		72		65		61
Commercial real estate	90		87		87		79		75
Total commercial	453		429		416		382		367
Consumer:
Automobile	122		117		111		106		109
Home equity	135		130		126		121		119
Residential mortgage	101		97		89		84		80
RV and marine finance	41		39		34		31		32
Other consumer	40		37		35		33		32
Total consumer	439		420		395		375		372
Total loans and leases	892		849		811		757		739
Total earning assets	$	1,064	$	1,015	$	979	$	921	$	906

Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—	$	—	$	—
Demand deposits - interest-bearing	25		22		18		13		13
Total demand deposits	25		22		18		13		13
Money market deposits	52		42		31		23		20
Savings and other domestic deposits	5		7		6		6		5
Core certificates of deposit	29		23		14		6		4
Total core deposits	111		94		69		48		42
Other domestic deposits of $250,000 or more	1		1		1		—		—
Brokered deposits and negotiable CDs	20		17		17		12		11
Total deposits	132		112		87		60		53
Short-term borrowings	6		9		14		19		8
Long-term debt	85		84		87		65		63
Total interest bearing liabilities	223		205		188		144		124
Net interest income	$	841	$	810	$	791	$	777	$	782


(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.


(3)	Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018 and associated interest income was not material.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)



	Quarterly Average Rates(2)
	December 31,		September 30,		June 30,		March 31,		December 31,
Fully-taxable equivalent basis(1)	2018		2018		2018		2018		2017
Assets
Interest-bearing deposits in Federal Reserve Bank (2)	2.33	%	—	%	—	%	—	%	—	%
Interest-bearing deposits in banks	1.97		1.95		1.95		1.97		1.92
Securities:
Trading account securities	1.94		0.26		0.23		0.15		0.21
Available-for-sale securities:
Taxable	2.71		2.61		2.63		2.51		2.45
Tax-exempt	4.12		3.53		3.35		3.18		3.76
Total available-for-sale securities	3.04		2.84		2.81		2.67		2.75
Held-to-maturity securities - taxable	2.45		2.43		2.42		2.45		2.41
Other securities	4.24		4.58		4.58		3.98		3.86
Total securities	2.84		2.73		2.71		2.62		2.64
Loans held for sale	4.04		4.45		4.17		3.82		3.68
Loans and leases:(4)
Commercial:
Commercial and industrial	4.81		4.64		4.52		4.28		4.17
Commercial real estate:
Construction	5.47		5.31		5.26		4.73		4.47
Commercial	4.99		4.63		4.58		4.24		4.03
Commercial real estate	5.07		4.74		4.68		4.32		4.10
Total commercial	4.86		4.66		4.55		4.29		4.15
Consumer:
Automobile	3.88		3.75		3.63		3.56		3.61
Home equity	5.45		5.21		5.09		4.90		4.71
Residential mortgage	3.82		3.78		3.69		3.66		3.66
RV and marine finance	5.10		5.06		5.11		5.11		5.25
Other consumer	12.35		12.16		11.90		11.78		11.53
Total consumer	4.67		4.54		4.43		4.34		4.31
Total loans and leases	4.76		4.60		4.49		4.32		4.23
Total earning assets	4.34		4.16		4.07		3.91		3.83
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—		—		—
Demand deposits - interest-bearing	0.48		0.45		0.38		0.29		0.26
Total demand deposits	0.24		0.22		0.18		0.14		0.12
Money market deposits	0.91		0.77		0.60		0.45		0.40
Savings and other domestic deposits	0.23		0.24		0.21		0.20		0.20
Core certificates of deposit	2.00		1.82		1.56		1.01		0.75
Total interest-bearing core deposits	0.75		0.65		0.51		0.36		0.32
Other domestic deposits of $250,000 or more	1.67		1.40		1.01		0.69		0.54
Brokered deposits and negotiable CDs	2.22		1.98		1.81		1.47		1.21
Total interest-bearing deposits	0.84		0.73		0.59		0.43		0.37
Short-term borrowings	2.49		1.98		1.82		1.47		1.15
Long-term debt	3.82		3.78		3.75		2.92		2.73
Total interest-bearing liabilities	1.23		1.13		1.05		0.82		0.73
Net interest rate spread	3.11		3.03		3.02		3.09		3.10
Impact of noninterest-bearing funds on margin	0.30		0.29		0.27		0.21		0.20
Net interest margin	3.41	%	3.32	%	3.29	%	3.30	%	3.30	%



Commercial Loan Derivative Impact
(Unaudited)
	Average Rates
	2018		2018		2018		2018		2017
Fully-taxable equivalent basis(1)	Fourth		Third		Second		First		Fourth
Commercial loans(3)(4)	4.86	%	4.66	%	4.55	%	4.29	%	4.16	%
Impact of commercial loan derivatives	—		—		—		—		(0.01	)
Total commercial - as reported	4.86	%	4.66	%	4.55	%	4.29	%	4.15	%

Average 30 day LIBOR	2.35	%	2.11	%	1.97	%	1.65	%	1.33	%


(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)	Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018.


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


(4)	Includes nonaccrual loans.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data(1)

(Unaudited)



	Three Months Ended
(dollar amounts in millions, except per data, share count in thousands)	December 31,			September 30,			June 30,		March 31,		December 31,
	2018			2018			2018		2018		2017
Interest income	$	1,056		$	1,007		$	972	$	914	$	894
Interest expense	223			205			188		144		124
Net interest income	833			802			784		770		770
Provision for credit losses	60			53			56		66		65
Net interest income after provision for credit losses	773			749			728		704		705
Service charges on deposit accounts	94			93			91		86		91
Card and payment processing income	58			57			56		53		53
Trust and investment management services	42			43			42		44		41
Mortgage banking income	23			31			28		26		33
Capital markets fees	29			22			21		19		23
Insurance income	21			19			21		21		21
Bank owned life insurance income	16			19			17		15		18
Gain on sale of loans and leases	16			16			15		8		17
Securities gains (losses)	(19		)	(2		)	—		—		(4		)
Other income	49			44			45		42		47
Total noninterest income	329			342			336		314		340
Personnel costs	399			388			396		376		373
Outside data processing and other services	83			69			69		73		71
Net occupancy	70			38			35		41		36
Equipment	48			38			38		40		36
Deposit and other insurance expense	9			18			18		18		19
Professional services	17			17			15		11		18
Marketing	15			12			18		8		10
Amortization of intangibles	13			13			13		14		14
Other expense	57			58			50		52		56
Total noninterest expense	711			651			652		633		633
Income before income taxes	391			440			412		385		412
Provision for income taxes	57			62			57		59		(20		)
Net income	334			378			355		326		432
Dividends on preferred shares	19			18			21		12		19
Net income applicable to common shares	$	315		$	360		$	334	$	314	$	413

Average common shares - basic	1,054,460			1,084,536			1,103,337		1,083,836		1,077,397
Average common shares - diluted	1,073,055			1,103,740			1,122,612		1,124,778		1,130,117

Per common share
Net income - basic	$	0.30		$	0.33		$	0.30	$	0.29	$	0.38
Net income - diluted	0.29			0.33			0.30		0.28		0.37
Cash dividends declared	0.14			0.14			0.11		0.11		0.11

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	833		$	802		$	784	$	770	$	770
FTE adjustment	8			8			7		7		12
Net interest income(2)	841			810			791		777		782
Noninterest income	329			342			336		314		340
Total revenue(2)	$	1,170		$	1,152		$	1,127	$	1,091	$	1,122


(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
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in millions)	2018			2018			2018			2018			2017			3Q18		4Q17
Net origination and secondary marketing income	$	16		$	24		$	21		$	18		$	24		(33	)%	(33	)%
Net mortgage servicing income
Loan servicing income	14			14			14			14			13			—		8
Amortization of capitalized servicing	(8		)	(9		)	(8		)	(8		)	(8		)	11		—
Operating income	6			5			6			6			5			20		20
MSR valuation adjustment (1)	—			—			—			7			2			—		(100	)
Gains (losses) due to MSR hedging	(1		)	—			—			(7		)	(1		)	(100	)	—
Net MSR risk management	(1		)	—			—			—			1			(100	)	(200	)
Total net mortgage servicing income	$	5		$	5		$	6		$	6		$	6		—	%	(17	)%
All other	2			2			1			2			3			—		(33	)
Mortgage banking income	$	23		$	31		$	28		$	26		$	33		(26	)%	(30	)%

Mortgage origination volume	$	1,538		$	1,818		$	2,127		$	1,513		$	1,784		(15	)%	(14	)%
Mortgage origination volume for sale	948			1,112			1,131			870			1,006			(15	)	(6	)

Third party mortgage loans serviced (2)	21,068			20,617			20,416			20,225			19,989			2		5
Mortgage servicing rights (2)	221			219			215			212			202			1		9
MSR % of investor servicing portfolio (2)	1.05		%	1.06		%	1.05		%	1.05		%	1.01		%	(1	)%	4	%


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


(2)	At period end.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Allowance for loan and lease losses, beginning of period	$	761		$	741		$	721		$	691		$	675
Loan and lease losses	(84		)	(58		)	(53		)	(73		)	(60		)
Recoveries of loans previously charged off	34			29			25			35			19
Net loan and lease losses	(50		)	(29		)	(28		)	(38		)	(41		)
Provision for loan and lease losses	61			49			48			68			57
Allowance for loan and lease losses, end of period	772			761			741			721			691
Allowance for unfunded loan commitments and letters of credit, beginning of period	97			93			85			87			79
Provision for (reduction in) unfunded loan commitments and letters of credit losses	(1		)	4			8			(2		)	8
Allowance for unfunded loan commitments and letters of credit, end of period	96			97			93			85			87
Total allowance for credit losses, end of period	$	868		$	858		$	834		$	806		$	778
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.03		%	1.04		%	1.02		%	1.01		%	0.99		%
Nonaccrual loans and leases (NALs)	228			206			197			188			198
Nonperforming assets (NPAs)	200			189			180			172			178

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	13		$	(1	)	$	3		$	17		$	8
Commercial real estate:
Construction	—			—			—			(1		)	(1		)
Commercial	—			(3		)	(1		)	(13		)	—
Commercial real estate	—			(3		)	(1		)	(14		)	(1		)
Total commercial	13			(4		)	2			3			7
Consumer:
Automobile	9			8			7			10			12
Home equity	2			1			—			3			1
Residential mortgage	2			2			1			1			—
RV and marine finance	2			2			2			3			2
Other consumer	22			20			16			18			19
Total consumer	37			33			26			35			34
Total net charge-offs	$	50		$	29		$	28		$	38		$	41


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2018			2018			2018			2018			2017
Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.17		%	(0.01		)%	0.04		%	0.24		%	0.10		%
Commercial real estate:
Construction	(0.09		)	(0.01		)	(0.22		)	(0.18		)	(0.14		)
Commercial	—			(0.18		)	(0.06		)	(0.80		)	(0.02		)
Commercial real estate	(0.01		)	(0.15		)	(0.08		)	(0.70		)	(0.04		)
Total commercial	0.14			(0.04		)	0.02			0.04			0.07
Consumer:
Automobile	0.30			0.26			0.22			0.32			0.39
Home equity	0.05			0.06			0.01			0.11			0.01
Residential mortgage	0.10			0.07			0.04			0.04			0.04
RV and marine finance	0.31			0.25			0.34			0.42			0.46
Other consumer	6.66			6.32			5.60			6.51			6.99
Total consumer	0.40			0.36			0.30			0.39			0.40
Net charge-offs as a % of average loans	0.27		%	0.16		%	0.16		%	0.21		%	0.24		%

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	188		$	211		$	207		$	190		$	161
Commercial real estate	15			19			25			30			29
Automobile	5			5			4			5			6
Residential mortgage	69			67			73			82			84
RV and marine finance	1			1			1			1			1
Home equity	62			67			68			75			68
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	340			370			378			383			349
Other real estate, net:
Residential	19			22			23			23			24
Commercial	4			5			5			7			9
Total other real estate, net	23			27			28			30			33
Other NPAs (1)	24			6			6			7			7
Total nonperforming assets	$	387		$	403		$	412		$	420		$	389

Nonaccrual loans and leases as a % of total loans and leases	0.45		%	0.50		%	0.52		%	0.54		%	0.50		%
NPA ratio (2)	0.52			0.55			0.57			0.59			0.55
(NPA+90days)/(Loan+OREO) (3)	0.74			0.76			0.75			0.74			0.72



	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Nonperforming assets, beginning of period	$	403		$	412		$	420		$	389		$	387
New nonperforming assets	109			114			96			158			116
Returns to accruing status	(21		)	(24		)	(25		)	(23		)	(25		)
Loan and lease losses	(32		)	(29		)	(21		)	(32		)	(21		)
Payments	(66		)	(62		)	(53		)	(64		)	(54		)
Sales	(6		)	(8		)	(5		)	(8		)	(14		)
Nonperforming assets, end of period	$	387		$	403		$	412		$	420		$	389


(1)	Other nonperforming assets at December 31, 2018 includes certain nonaccrual loans held-for-sale. Amounts prior to December 31, 2018 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)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	7		$	9		$	9		$	9		$	9
Commercial real estate	—			—			—			1			3
Automobile	8			7			6			6			7
Residential mortgage (excluding loans guaranteed by the U.S. Government)	32			28			18			19			21
RV and marine finance	1			1			1			2			1
Home equity	17			15			16			15			18
Other consumer	6			6			4			4			5
Total, excl. loans guaranteed by the U.S. Government	71			66			54			56			64
Add: loans guaranteed by U.S. Government	99			88			78			50			51
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	170		$	154		$	132		$	106		$	115

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.09		%	0.09		%	0.07		%	0.08		%	0.09		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.13			0.12			0.11			0.07			0.07
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.23			0.21			0.18			0.15			0.16

Accruing troubled debt restructured loans:
Commercial and industrial	$	269		$	308		$	314		$	316		$	300
Commercial real estate	54			60			65			76			78
Automobile	35			34			32			32			30
Home equity	252			257			258			261			265
Residential mortgage	218			219			221			224			224
RV and marine finance	2			2			1			1			1
Other consumer	9			10			9			6			8
Total accruing troubled debt restructured loans	$	839		$	890		$	900		$	916		$	906

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	97		$	100		$	87		$	83		$	82
Commercial real estate	6			8			14			16			15
Automobile	3			3			3			3			4
Home equity	28			28			28			31			28
Residential mortgage	44			46			46			52			55
RV and marine finance	—			1			1			—			—
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	178		$	186		$	179		$	185		$	184

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Common equity tier 1 risk-based capital ratio:(1)
Total shareholders’ equity	$	11,102		$	10,934		$	11,472		$	11,308		$	10,814
Regulatory capital adjustments:
Shareholders’ preferred equity	(1,207		)	(1,207		)	(1,207		)	(1,207		)	(1,076		)
Accumulated other comprehensive income offset	609			790			729			676			528
Goodwill and other intangibles, net of related taxes	(2,200		)	(2,226		)	(2,229		)	(2,244		)	(2,200		)
Deferred tax assets that arise from tax loss and credit carryforwards	(33		)	(28		)	(28		)	(29		)	(25		)
Common equity tier 1 capital	8,271			8,263			8,737			8,504			8,041
Additional tier 1 capital
Shareholders’ preferred equity	1,207			1,207			1,207			1,207			1,076
Other	—			—			—			1			(7		)
Tier 1 capital	9,478			9,470			9,944			9,712			9,110
Long-term debt and other tier 2 qualifying instruments	776			839			809			804			869
Qualifying allowance for loan and lease losses	868			858			834			806			778
Tier 2 capital	1,644			1,697			1,643			1,610			1,647
Total risk-based capital	$	11,122		$	11,167		$	11,587		$	11,322		$	10,757
Risk-weighted assets (RWA)(1)	$	85,687		$	83,580		$	82,951		$	81,365		$	80,340
Common equity tier 1 risk-based capital ratio(1)	9.65		%	9.89		%	10.53		%	10.45		%	10.01		%
Other regulatory capital data:
Tier 1 leverage ratio(1)	9.10			9.14			9.65			9.53			9.09
Tier 1 risk-based capital ratio(1)	11.06			11.33			11.99			11.94			11.34
Total risk-based capital ratio(1)	12.98			13.36			13.97			13.92			13.39
Non-regulatory capital data:
Tangible common equity / RWA ratio(1)	8.97			8.97			9.67			9.65			9.31


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

Huntington Bancshares Incorporated

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

(Unaudited)

Quarterly common stock summary



	December 31,		September 30,		June 30,		March 31,		December 31,
	2018		2018		2018		2018		2017
Dividends, per share
Cash dividends declared per common share	$	0.14	$	0.14	$	0.11	$	0.11	$	0.11
Common shares outstanding (000)
Average - basic	1,054,460		1,084,536		1,103,337		1,083,836		1,077,397
Average - diluted	1,073,055		1,103,740		1,122,612		1,124,778		1,130,117
Ending	1,046,767		1,061,529		1,104,227		1,101,796		1,072,027
Tangible book value per common share(1)	$	7.34	$	7.06	$	7.27	$	7.12	$	6.97
Common share repurchases (000)
Number of shares repurchased	14,967		43,670		—		3,007		9,785

Non-regulatory capital



	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2018			2018			2018			2018			2017
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	11,102		$	10,934		$	11,472		$	11,308		$	10,814
Less: goodwill	(1,989		)	(1,993		)	(1,993		)	(1,993		)	(1,993		)
Less: other intangible assets	(281		)	(306		)	(319		)	(333		)	(346		)
Add: related deferred tax liability(1)	59			64			67			70			73
Total tangible equity	8,891			8,699			9,227			9,052			8,548
Less: preferred equity	(1,203		)	(1,203		)	(1,203		)	(1,203		)	(1,071		)
Total tangible common equity	$	7,688		$	7,496		$	8,024		$	7,849		$	7,477
Total assets	$	108,781		$	105,652		$	105,358		$	104,246		$	104,185
Less: goodwill	(1,989		)	(1,993		)	(1,993		)	(1,993		)	(1,993		)
Less: other intangible assets	(281		)	(306		)	(319		)	(333		)	(346		)
Add: related deferred tax liability(1)	59			64			67			70			73
Total tangible assets	$	106,570		$	103,417		$	103,113		$	101,990		$	101,919
Tangible equity / tangible asset ratio	8.34		%	8.41		%	8.95		%	8.88		%	8.39		%
Tangible common equity / tangible asset ratio	7.21			7.25			7.78			7.70			7.34
Other data:
Number of employees (Average full-time equivalent)	15,657			15,772			15,732			15,599			15,375
Number of domestic full-service branches(2)	954			970			968			966			966
ATM Count	1,774			1,860			1,831			1,866			1,848


(1)	Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.


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

Huntington Bancshares Incorporated

Consolidated Annual Average Balance Sheets

(Unaudited)



	Annual Average Balances (1)
				Change from 2017								Change from 2016
(dollar amounts in millions)	2018			Amount			Percent		2017			Amount			Percent		2016
Assets
Interest-bearing deposits in Federal Reserve Bank (2)	$	122		$	122		100	%	$	—		$	—		—	%	$	—
Interest-bearing deposits in banks	88			(11		)	(11	)	99			(1		)	(1	)	100
Securities:
Trading account securities	96			(6		)	(6	)	102			35			52		67
Available-for-sale and other securities:
Taxable	10,700			(1,203		)	(10	)	11,903			3,042			34		8,861
Tax-exempt	3,463			282			9		3,181			465			17		2,716
Total available-for-sale securities	14,163			(921		)	(6	)	15,084			3,507			30		11,577
Held-to-maturity securities - taxable	8,643			535			7		8,108			2,415			42		5,693
Other securities	584			—			—		584			167			40		417
Total securities	23,486			(392		)	(2	)	23,878			6,124			34		17,754
Loans held for sale	635			80			14		555			(499		)	(47	)	1,054
Loans and leases:(3)
Commercial:
Commercial and industrial	28,887			1,138			4		27,749			4,065			17		23,684
Commercial real estate:
Construction	1,146			(52		)	(4	)	1,198			110			10		1,088
Commercial	6,049			39			1		6,010			1,091			22		4,919
Commercial real estate	7,195			(13		)	—		7,208			1,201			20		6,007
Total commercial	36,082			1,125			3		34,957			5,266			18		29,691
Consumer:
Automobile	12,292			773			7		11,519			979			9		10,540
Home equity	9,915			(79		)	(1	)	9,994			936			10		9,058
Residential mortgage	9,907			1,662			20		8,245			1,515			23		6,730
RV and marine finance	2,847			692			32		2,155			1,462			211		693
Other consumer	1,203			182			18		1,021			279			38		742
Total consumer	36,164			3,230			10		32,934			5,171			19		27,763
Total loans and leases	72,246			4,355			6		67,891			10,437			18		57,454
Allowance for loan and lease losses	(747		)	(80		)	(12	)	(667		)	(53		)	(9	)	(614		)
Net loans and leases	71,499			4,275			6		67,224			10,384			18		56,840
Total earning assets	96,577			4,154			4		92,423			16,061			21		76,362
Cash and due from banks	1,184			(269		)	(19	)	1,453			233			19		1,220
Intangible assets	2,311			(55		)	(2	)	2,366			1,007			74		1,359
All other assets	5,657			211			4		5,446			719			15		4,727
Total assets	$	104,982		$	3,961		4	%	$	101,021		$	17,967		22	%	$	83,054
Liabilities and shareholders’ equity
Deposits:
Demand deposits - noninterest-bearing	$	20,391		$	(1,308	)	(6	)%	$	21,699		$	2,654		14	%	$	19,045
Demand deposits - interest-bearing	19,295			1,715			10		17,580			6,595			60		10,985
Total demand deposits	39,686			407			1		39,279			9,249			31		30,030
Money market deposits	21,446			1,711			9		19,735			666			3		19,069
Savings and other domestic deposits	11,083			(614		)	(5	)	11,697			3,716			47		7,981
Core certificates of deposit	4,188			2,069			98		2,119			(181		)	(8	)	2,300
Total core deposits	76,403			3,573			5		72,830			13,450			23		59,380
Other domestic deposits of $250,000 or more	280			(165		)	(37	)	445			37			9		408
Brokered deposits and negotiable CDs	3,503			(172		)	(5	)	3,675			176			5		3,499
Deposits in foreign offices	—			—			—		—			(204		)	(100	)	204
Total deposits	80,186			3,236			4		76,950			13,459			21		63,491
Short-term borrowings	2,748			(175		)	(6	)	2,923			1,393			91		1,530
Long-term debt	8,992			130			1		8,862			814			10		8,048
Total interest-bearing liabilities	71,535			4,499			7		67,036			13,012			24		54,024
All other liabilities	1,997			322			19		1,675			81			5		1,594
Shareholders’ equity	11,059			448			4		10,611			2,220			26		8,391
Total liabilities and shareholders’ equity	$	104,982		$	3,961		4	%	$	101,021		$	17,967		22	%	$	83,054


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


(2)	Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018.


(3)	Includes nonaccrual loans.

Huntington Bancshares Incorporated

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

(Unaudited)



	Annual Interest Income / Expense
(dollar amounts in millions)	2018		2017		2016
Assets
Interest-bearing deposits in Federal Reserve Bank (3)	$	3	$	—	$	—
Interest-bearing deposits in banks	2		2		—
Securities:
Trading account securities	1		—		—
Available-for-sale and other securities:
Taxable	280		283		210
Tax-exempt	122		118		91
Total available-for-sale securities	402		401		301
Held-to-maturity securities - taxable	211		193		138
Other securities	25		20		12
Total securities	639		614		451
Loans held for sale	26		21		35
Loans and leases:
Commercial:
Commercial and industrial	1,337		1,142		879
Commercial real estate:
Construction	60		52		40
Commercial	283		240		176
Commercial real estate	343		292		216
Total commercial	1,680		1,434		1,095
Consumer:
Automobile	456		412		351
Home equity	512		463		381
Residential mortgage	371		301		244
RV and marine finance	145		118		39
Other consumer	145		118		79
Total consumer	1,629		1,412		1,094
Total loans and leases	3,309		2,846		2,189
Total earning assets	$	3,979	$	3,483	$	2,675
Liabilities
Deposits:
Demand deposits - noninterest-bearing	$	—	$	—	$	—
Demand deposits - interest-bearing	78		38		11
Total demand deposits	78		38		11
Money market deposits	148		66		46
Savings and other domestic deposits	24		24		15
Core certificates of deposit	72		13		13
Total core deposits	322		141		85
Other domestic deposits of $250,000 or more	3		2		2
Brokered deposits and negotiable CDs	66		37		15
Deposits in foreign offices	—		—		—
Total deposits	391		180		102
Short-term borrowings	48		25		5
Long-term debt	321		226		156
Total interest-bearing liabilities	760		431		263
Net interest income	$	3,219	$	3,052	$	2,412


(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 24 for the FTE adjustment.


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


(3)	Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018 and associated interest income was not material.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Yield

(Unaudited)



	Annual Average Rates(2)
Fully-taxable equivalent basis(1)	2018		2017		2016
Assets
Interest-bearing deposits in Federal Reserve Bank (2)	2.33	%	—	%	—	%
Interest-bearing deposits in banks	1.97		1.56		0.44
Securities:
Trading account securities	0.80		0.18		0.42
Available-for-sale and other securities:
Taxable	2.61		2.38		2.36
Tax-exempt	3.53		3.71		3.35
Total available-for-sale securities	2.84		2.66		2.60
Held-to-maturity securities - taxable	2.44		2.38		2.43
Other securities	4.34		3.42		2.95
Total securities	2.72		2.57		2.54
Loans held for sale	4.15		3.75		3.27
Loans and leases:(4)
Commercial:
Commercial and industrial	4.63		4.12		3.71
Commercial real estate:
Construction	5.26		4.36		3.72
Commercial	4.67		4.00		3.57
Commercial real estate	4.77		4.06		3.60
Total commercial	4.66		4.11		3.69
Consumer:
Automobile	3.71		3.58		3.32
Home equity	5.16		4.63		4.21
Residential mortgage	3.74		3.65		3.63
RV and marine finance	5.09		5.46		5.67
Other consumer	12.04		11.53		10.62
Total consumer	4.50		4.28		3.94
Total loans and leases	4.58		4.19		3.81
Total earning assets	4.12		3.77		3.50
Liabilities
Deposits:
Demand deposits - noninterest-bearing	—		—		—
Demand deposits - interest-bearing	0.40		0.21		0.10
Total demand deposit	0.20		0.10		0.04
Money market deposits	0.69		0.33		0.24
Savings and other domestic deposits	0.22		0.21		0.19
Core certificates of deposit	1.72		0.60		0.56
Total core deposits	0.57		0.27		0.21
Other domestic deposits of $250,000 or more	1.25		0.52		0.40
Brokered deposits and negotiable CDs	1.88		1.00		0.43
Deposits in foreign offices	—		—		0.13
Total deposits	0.65		0.33		0.23
Short-term borrowings	1.74		0.86		0.34
Long-term debt	3.57		2.56		1.93
Total interest bearing liabilities	1.06		0.64		0.48
Net interest rate spread	3.06		3.13		3.02
Impact of noninterest-bearing funds on margin	0.27		0.17		0.14
Net interest margin	3.33	%	3.30	%	3.16	%

Commercial Loan Derivative Impact

(Unaudited)



	Annual Average Rates
Fully-taxable equivalent basis(1)	2018		2017		2016
Commercial loans(3)(4)	4.59	%	4.06	%	3.63	%
Impact of commercial loan derivatives	0.07		0.05		0.06
Total commercial - as reported	4.66	%	4.11	%	3.69	%

Average 30 day LIBOR	2.02	%	1.11	%	0.49	%


(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 24 for the FTE adjustment.


(2)	Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018.


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


(4)	Includes the impact of nonacrrual loans.

Huntington Bancshares Incorporated

Selected Annual Income Statement Data(1)

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions, except per data, share count in thousands)				Change								Change
	2018			Amount			Percent		2017			Amount			Percent		2016
Interest income	$	3,949		$	516		15	%	$	3,433		$	801		30	%	$	2,632
Interest expense	760			329			76		431			168			64		263
Net interest income	3,189			187			6		3,002			633			27		2,369
Provision for credit losses	235			34			17		201			10			5		191
Net interest income after provision for credit losses	2,954			153			5		2,801			623			29		2,178
Service charges on deposit accounts	364			11			3		353			29			9		324
Card and payment processing income	224			18			9		206			37			22		169
Trust and investment management services	171			15			10		156			33			27		123
Mortgage banking income	108			(23		)	(18	)	131			3			2		128
Capital markets fees	91			15			20		76			16			27		60
Insurance income	82			1			1		81			(3		)	(4	)	84
Bank owned life insurance income	67			—			—		67			9			16		58
Gain on sale of loans	55			(1		)	(2	)	56			9			19		47
Securities gains (losses)	(21		)	(17		)	(425	)	(4		)	(4		)	(100	)	—
Other income	180			(5		)	(3	)	185			28			18		157
Total noninterest income	1,321			14			1		1,307			157			14		1,150
Personnel costs	1,559			35			2		1,524			175			13		1,349
Outside data processing and other services	294			(19		)	(6	)	313			8			3		305
Net occupancy	184			(28		)	(13	)	212			59			39		153
Equipment	164			(7		)	(4	)	171			6			4		165
Deposit and other insurance expense	63			(15		)	(19	)	78			24			44		54
Professional services	60			(9		)	(13	)	69			(36		)	(34	)	105
Marketing	53			(7		)	(12	)	60			(3		)	(5	)	63
Amortization of intangibles	53			(3		)	(5	)	56			26			87		30
Other expense	217			(14		)	(6	)	231			47			26		184
Total noninterest expense	2,647			(67		)	(2	)	2,714			306			13		2,408
Income before income taxes	1,628			234			17		1,394			474			52		920
Provision for income taxes	235			27			13		208			—			—		208
Net income	1,393			207			17		1,186			474			67		712
Dividends on preferred shares	70			(6		)	(8	)	76			11			17		65
Net income applicable to common shares	$	1,323		$	213		19	%	$	1,110		$	463		72	%	$	647
Average common shares - basic	1,081,542			(3,144		)	—	%	1,084,686			180,248			20	%	904,438
Average common shares - diluted	1,105,985			(30,201		)	(3	)	1,136,186			217,396			24		918,790
Per common share
Net income - basic	$	1.22		$	0.20		20		$	1.02		$	0.30		42		$	0.72
Net income - diluted	1.20			0.20			20		1.00			0.30			43		0.70
Cash dividends declared	0.50			0.15			43		0.35			0.06			21		0.29
Revenue - fully taxable equivalent (FTE)
Net interest income	$	3,189		$	187		6		$	3,002		$	633		27		$	2,369
FTE adjustment	30			(20		)	(40	)	50			7			16		43
Net interest income (2)	3,219			167			5		3,052			640			27		2,412
Noninterest income	1,321			14			1		1,307			157			14		1,150
Total revenue (2)	$	4,540		$	181		4	%	$	4,359		$	797		22	%	$	3,562


(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

Annual Mortgage Banking Income

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions)	2018			2017			2016			2015			2014
Net origination and secondary marketing income	$	79		$	95		$	100		$	91		$	57
Net mortgage servicing income
Loan servicing income	56			52			46			43			41
Amortization of capitalized servicing	(33		)	(29		)	(28		)	(27		)	(24		)
Operating income	23			23			18			16			17
MSR valuation adjustment (1)	7			1			1			(4		)	(11		)
Gains (losses) due to MSR hedging	(8		)	—			(1		)	(2		)	7
Net MSR risk management	(1		)	1			—			(6		)	(4		)
Total net mortgage servicing income	$	22		$	24		$	18		$	10		$	13
All other	7			12			10			11			15
Mortgage banking income	$	108		$	131		$	128		$	112		$	85

Mortgage origination volume	$	6,996		$	6,634		$	5,822		$	4,705		$	3,558
Mortgage origination volume for sale	4,061			3,912			3,822			3,237			2,366

Third party mortgage loans serviced (2)	21,068			19,989			18,852			16,168			15,637
Mortgage servicing rights (2)	221			202			186			161			156
MSR % of investor servicing portfolio	1.05		%	1.01		%	0.99		%	0.99		%	1.00		%


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


(2)	At period end.

Huntington Bancshares Incorporated

Annual Credit Reserves Analysis

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions)	2018			2017			2016			2015			2014
Allowance for loan and lease losses, beginning of period	$	691		$	638		$	598		$	605		$	648
Loan and lease losses	(268		)	(252		)	(227		)	(218		)	(247		)
Recoveries of loans previously charged off	123			93			118			130			122
Net loan and lease losses	(145		)	(159		)	(109		)	(88		)	(125		)
Provision for loan and lease losses	226			212			169			89			83
Allowance of assets sold or transferred to loans held for sale	—			—			(20		)	(8		)	(1		)
Allowance for loan and lease losses, end of period	772			691			638			598			605
Allowance for unfunded loan commitments and letters of credit, beginning of period	87			98			72			61			63
Provision for (reduction in) unfunded loan commitments and letters of credit losses	9			(11		)	22			11			(2		)
Fair value of acquired AULC	—			—			4			—			—
Allowance for unfunded loan commitments and letters of credit, end of period	96			87			98			72			61
Total allowance for credit losses	$	868		$	778		$	736		$	670		$	666
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.03		%	0.99		%	0.95		%	1.19		%	1.27		%
Nonaccrual loans and leases (NALs)	228			198			151			161			202
Nonperforming assets (NPAs)	200			178			133			150			179

Huntington Bancshares Incorporated

Annual Net Charge-Off Analysis

(Unaudited)



	Year Ended December 31,
(dollar amounts in millions)	2018			2017			2016			2015			2014
Total Loans
Commercial:
Commercial and industrial	$	32		$	42		$	45		$	28		$	32
Commercial real estate:
Construction	(1		)	(5		)	(2		)	(1		)	2
Commercial	(17		)	(6		)	(24		)	(15		)	(11		)
Commercial real estate	(18		)	(11		)	(26		)	(16		)	(9		)
Total commercial	14			31			19			12			23
Consumer:
Automobile	34			42			32			20			17
Home equity	6			5			9			20			37
Residential mortgage	6			6			6			10			20
RV and marine finance	9			10			2			—			—
Other consumer	76			65			41			26			28
Total consumer	131			128			90			76			102
Total net charge-offs	$	145		$	159		$	109		$	88		$	125

Net charge-offs - annualized percentages:
Commercial:
Commercial and industrial	0.11		%	0.15		%	0.19		%	0.14		%	0.18		%
Commercial real estate:
Construction	(0.13		)	(0.36		)	(0.19		)	(0.08		)	0.16
Commercial	(0.26		)	(0.10		)	(0.49		)	(0.37		)	(0.25		)
Commercial real estate	(0.24		)	(0.15		)	(0.44		)	(0.32		)	(0.19		)
Total commercial	0.04			0.09			0.06			0.05			0.10
Consumer:
Automobile	0.27			0.36			0.30			0.23			0.23
Home equity	0.06			0.05			0.10			0.23			0.44
Residential mortgage	0.06			0.08			0.09			0.17			0.35
RV and marine finance	0.32			0.48			0.33			—			—
Other consumer	6.27			6.36			5.53			5.44			6.99
Total consumer	0.36			0.39			0.32			0.32			0.46
Net charge-offs as a % of average loans	0.20		%	0.23		%	0.19		%	0.18		%	0.27		%

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,
(dollar amounts in millions)	2018			2017			2016			2015			2014
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	188		$	161		$	234		$	175		$	72
Commercial real estate	15			29			20			29			48
Automobile	5			6			6			7			5
Residential mortgage	69			84			91			95			96
RV and marine finance	1			1			—			—			—
Home equity	62			68			72			66			79
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	340			349			423			372			300
Other real estate, net:
Residential	19			24			31			24			29
Commercial	4			9			20			3			6
Total other real estate, net	23			33			51			27			35
Other NPAs (1)	24			7			7			—			3
Total nonperforming assets	$	387		$	389		$	481		$	399		$	338

Nonaccrual loans and leases as a % of total loans and leases	0.45		%	0.50		%	0.63		%	0.74		%	0.63		%
NPA ratio (2)	0.52			0.55			0.72			0.79			0.71



	December 31,
(dollar amounts in millions)	2018			2017			2016			2015			2014
Nonperforming assets, beginning of period	$	389		$	481		$	399		$	338		$	352
New nonperforming assets	477			415			633			569			431
Returns to accruing status	(93		)	(118		)	(127		)	(101		)	(77		)
Loan and lease losses	(114		)	(95		)	(135		)	(150		)	(175		)
Payments	(245		)	(252		)	(211		)	(212		)	(159		)
Sales	(27		)	(42		)	(79		)	(45		)	(34		)
Nonperforming assets, end of period	$	387		$	389		$	481		$	399		$	338


(1)	Other nonperforming assets at December 31, 2018 includes certain nonaccrual loans held-for-sale. Amounts prior to December 31, 2018 includes certain impaired investment securities.


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

Huntington Bancshares Incorporated

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

(Unaudited)



	December 31,
(dollar amounts in millions)	2018			2017			2016			2015			2014
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	7		$	9		$	18		$	9		$	5
Commercial real estate	—			3			17			10			19
Automobile	8			7			10			7			5
Residential mortgage (excluding loans guaranteed by the U.S. Government)	32			21			15			14			33
RV and marine finance	1			1			1			—			—
Home equity	17			18			12			9			12
Other consumer	6			5			4			1			1
Total, excl. loans guaranteed by the U.S. Government	71			64			77			50			75
Add: loans guaranteed by U.S. Government	99			51			52			56			55
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	170		$	115		$	129		$	106		$	130
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.09		%	0.09		%	0.12		%	0.10		%	0.16		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.13			0.07			0.08			0.11			0.12
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.23			0.16			0.19			0.21			0.27
Accruing troubled debt restructured loans:
Commercial and industrial	$	269		$	300		$	210		$	236		$	117
Commercial real estate	54			78			77			115			177
Automobile	35			30			26			25			26
Home equity	252			265			270			199			252
Residential mortgage	218			224			243			265			265
RV and marine finance	2			1			—			—			—
Other consumer	9			8			4			4			4
Total accruing troubled debt restructured loans	$	839		$	906		$	830		$	844		$	841
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	97		$	82		$	107		$	57		$	21
Commercial real estate	6			15			5			17			25
Automobile	3			4			5			6			5
Home equity	28			28			28			21			27
Residential mortgage	44			55			59			72			69
RV and marine finance	—			—			—			—			—
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	178		$	184		$	204		$	173		$	147

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - January 24, 2019

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports