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

Attached files

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8-K - 8-K - HUNTINGTON BANCSHARES INC /MD/	hban-20210729.htm
EX-99.1 - EX-99.1 - HUNTINGTON BANCSHARES INC /MD/	hban20210630_8kex991.htm

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

June 30, 2021

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

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%.

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

(Unaudited)


	Three Months Ended
(dollar amounts in millions, except per share data)	June 30,			March 31,			June 30,			Percent Changes vs.
	2021			2021			2020			1Q21		2Q20
Net interest income (2)	$	844		$	978		$	797		(14)	%	6	%
FTE adjustment	(6)			(6)			(5)			—		(20)
Net interest income	838			972			792			(14)		6
Provision (benefit) for credit losses	211			(60)			327			452		(35)
Noninterest income	444			395			391			12		14
Noninterest expense	1,072			793			675			35		59
(Loss) income before income taxes	(1)			634			181			(100)		(101)
Provision for income taxes	14			102			31			(86)		(55)
(Loss) income after income taxes	(15)			532			150			(103)		(110)
Income attributable to non-controlling interest	—			—			—			—		—
Net (loss) income attributable to Huntington Bancshares Inc	(15)			532			150			(103)		(110)
Dividends on preferred shares	43			31			19			39		126
Net (loss) income applicable to common shares	$	(58)		$	501		$	131		(112)	%	(144)	%

Net (loss) income per common share - diluted	$	(0.05)		$	0.48		$	0.13		(110)	%	(138)	%
Cash dividends declared per common share	0.15			0.15			0.15			—		—
Tangible book value per common share at end of period	8.23			8.64			8.32			(5)		(1)
Number of common shares repurchased	—			—			—			—		—
Average common shares - basic	1,125			1,018			1,016			11		11
Average common shares - diluted	1,125			1,041			1,029			8		9
Ending common shares outstanding	1,477			1,018			1,017			45		45
Return on average assets	(0.05)		%	1.76		%	0.51		%
Return on average common shareholders’ equity	(1.9)			18.7			5.0
Return on average tangible common shareholders’ equity (1)	(2.1)			23.7			6.7
Net interest margin (2)	2.66			3.48			2.94
Efficiency ratio (3)	83.1			57.0			55.9
Effective tax rate (4)	(2,353.3)			16.1			17.2
Average total assets	$	137,830		$	122,995		$	118,191		12		17
Average earning assets	127,421			114,105			109,038			12		17
Average loans and leases	87,437			80,261			80,199			9		9
Average loans and leases - linked quarter annualized growth rate	35.8		%	(4.2)		%	23.8		%
Average total deposits	$	112,678		$	99,285		$	93,222		13		21
Average core deposits (5)	109,433			95,815			88,878			14		23
Average core deposits - linked quarter annualized growth rate	56.9		%	15.1		%	47.0		%
Average shareholders’ equity	15,410			13,324			11,945			16		29
Average common total shareholders' equity	12,697			10,858			10,590			17		20
Average tangible common shareholders' equity	9,686			8,722			8,429			11		15
Total assets at end of period	175,172			125,768			118,425			39		48
Total shareholders’ equity at end of period	20,511			13,600			12,314			51		67

NCOs as a % of average loans and leases	0.28		%	0.32		%	0.54		%
NAL ratio	0.87			0.64			0.81
NPA ratio (6)	0.91			0.68			0.89
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.98			2.12			2.12
Allowance for credit losses (ACL) as a % of total loans and leases at the end of period	2.08			2.17			2.27
Common equity tier 1 risk-based capital ratio (7)	9.97			10.32			9.84
Tangible common equity / tangible asset ratio (8)	7.16			7.11			7.28

See Notes to the Quarterly Key Statistics.

Huntington Bancshares Incorporated

Year to Date Key Statistics

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in millions, except per share data)	2021			2020			Amount		Percent
Net interest income (2)	$	1,822		$	1,593		$	229	14	%
FTE adjustment	(12)			(11)			(1)		(9)
Net interest income	1,810			1,582			228		14
Provision for credit losses	151			768			(617)		(80)
Noninterest income	839			752			87		12
Noninterest expense	1,865			1,327			538		41
Income before income taxes	633			239			394		165
Provision for income taxes	116			41			75		183
Income after income taxes	517			198			319		161
Income attributable to non-controlling interest	—			—			—		—
Net Income attributable to Huntington Bancshares Inc	517			198			319		161
Dividends on preferred shares	74			37			37		100
Net income applicable to common shares	$	443		$	161		$	282	175	%

Net income per common share - diluted	$	0.40		$	0.16		$	0.24	150	%
Cash dividends declared per common share	0.30			0.30			—		—

Average common shares - basic	1,071			1,017			54		5
Average common shares - diluted	1,094			1,032			62		6

Return on average assets	0.80		%	0.35		%
Return on average common shareholders’ equity	7.6			3.1
Return on average tangible common shareholders’ equity (1)	10.0			4.3
Net interest margin (2)	3.04			3.04
Efficiency ratio (3)	69.6			55.7
Effective tax rate	18.5			17.2

Average total assets	$	130,454		$	114,169		$	16,285	14
Average earning assets	120,800			105,410			15,390		15
Average loans and leases	83,867			77,947			5,920		8
Average total deposits	106,018			87,977			18,041		21
Average core deposits (5)	102,540			83,758			18,782		22
Average shareholders’ equity	14,376			11,790			2,586		22
Average common total shareholders' equity	11,786			10,511			1,275		12
Average tangible common shareholders' equity	9,210			8,347			863		10

NCOs as a % of average loans and leases	0.30		%	0.58		%
NAL ratio	0.87			0.81
NPA ratio (6)	0.91			0.89

See Notes to the Annual and Quarterly Key Statistics.

Key Statistics Footnotes

(1)Net (loss) 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.

(2)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.

(3)Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

(4)For the three months ended June 30, 2021, excluding TCF acquisition-related net expenses of $269 million, the related tax benefit of $51 million and discrete tax expenses of $16 million, the effective tax rate would have been 18.8%.

(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 nonperforming assets, which includes certain impaired securities and/or nonaccrual loans held for sale, and other real estate owned.

(7)June 30, 2021, 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


	June 30,		December 31,
(dollar amounts in millions)	2021		2020		Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,479	$	1,319	12	%
Interest-bearing deposits at Federal Reserve Bank	11,776		5,276		123
Interest-bearing deposits in banks	671		117		474
Trading account securities	93		62		50
Available-for-sale securities	22,915		16,485		39
Held-to-maturity securities	11,415		8,861		29


Other securities	692		418		66
Loans held for sale	1,391		1,275		9
Loans and leases (1)	111,905		81,608		37
Allowance for loan and lease losses	(2,218)		(1,814)		(22)
Net loans and leases	109,687		79,794		37
Bank owned life insurance	2,763		2,577		7
Premises and equipment	1,128		757		49
Goodwill	5,316		1,990		167
Servicing rights and other intangible assets	619		428		45
Other assets	5,227		3,679		42
Total assets	$	175,172	$	123,038	42	%

Liabilities and shareholders’ equity
Liabilities
Deposits (2)	$	142,805	$	98,948	44	%
Short-term borrowings	391		183		114
Long-term debt	7,342		8,352		(12)
Other liabilities	4,103		2,562		60
Total liabilities	154,641		110,045		41

Shareholders' equity
Preferred stock	2,851		2,191		30
Common stock	15		10		50
Capital surplus	15,830		8,781		80
Less treasury shares, at cost	(105)		(59)		(78)
Accumulated other comprehensive (loss) gain	(19)		192		(110)
Retained earnings	1,939		1,878		3
Total Huntington Bancshares Inc shareholders’ equity	20,511		12,993		58
Non-controlling interest	20		—		100
Total Equity	20,531		12,993		58
Total liabilities and shareholders’ equity	$	175,172	$	123,038	42	%

Common shares authorized (par value of $0.01)	2,250,000,000		1,500,000,000
Common shares outstanding	1,476,557,426		1,017,196,776
Treasury shares outstanding	8,056,484		5,062,054
Preferred stock, authorized shares	6,617,808		6,617,808
Preferred shares outstanding	1,257,500		750,500

(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)	2021				2021				2020				2020				2020
Ending Balances by Type:
Total loans
Commercial:
Commercial and industrial	$	41,900	38	%	$	32,297	40	%	$	33,151	40	%	$	32,588	40	%	$	32,548	41	%
Commercial real estate:
Construction	1,926		2		1,083		1		1,035		1		1,154		1		1,200		1
Commercial	12,848		11		6,096		8		6,164		8		6,055		7		5,979		7
Commercial real estate	14,774		13		7,179		9		7,199		9		7,209		8		7,179		8
Lease financing	5,027		4		2,167		3		2,222		3		2,307		3		2,331		3
Total commercial	61,701		55		41,643		52		42,572		52		42,104		51		42,058		52
Consumer:
Automobile	13,174		12		12,591		16		12,778		16		12,925		17		12,678		16
Residential mortgage	18,729		17		12,092		15		12,141		15		12,031		15		11,621		15
Home Equity	11,317		10		8,727		11		8,894		11		8,904		11		8,866		11
RV and marine	4,960		4		4,218		5		4,190		5		4,146		5		3,843		5
Other consumer	2,024		2		959		1		1,033		1		1,046		1		1,073		1
Total consumer	50,204		45		38,587		48		39,036		48		39,052		49		38,081		48
Total loans and leases	$	111,905	100	%	$	80,230	100	%	$	81,608	100	%	$	81,156	100	%	$	80,139	100	%


	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2021				2021				2020				2020				2020
Ending Balances by Business Segment:
Consumer and Business Banking	$	36,798	33	%	$	26,658	33	%	$	27,230	33	%	$	27,517	34	%	$	27,173	34	%
Commercial Banking	46,559		41		27,318		34		27,374		34		26,847		33		26,916		34
Vehicle Finance	20,196		18		19,474		24		20,027		25		19,891		25		19,345		24
RBHPCG (Regional Banking and The Huntington Private Client Group)	7,394		7		6,587		8		6,809		8		6,682		8		6,576		8
Treasury / Other	958		1		193		1		168		—		219		—		129		—
Total loans and leases	$	111,905	100	%	$	80,230	100	%	$	81,608	100	%	$	81,156	100	%	$	80,139	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	28,948	33	%	$	27,069	34	%	$	27,483	34	%	$	27,315	34	%	$	25,379	32	%
Commercial Banking	31,896		37		26,694		33		26,727		33		26,809		34		28,173		35
Vehicle Finance	19,548		22		19,735		25		19,977		25		19,651		24		19,822		25
RBHPCG	6,840		8		6,568		8		6,751		8		6,630		8		6,498		8
Treasury / Other	205		—		195		—		178		—		137		—		327		—
Total loans and leases	$	87,437	100	%	$	80,261	100	%	$	81,116	100	%	$	80,542	100	%	$	80,199	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)


	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2021				2021				2020				2020				2020
Ending Balances by Type:
Demand deposits - noninterest-bearing	$	45,249	32	%	$	31,226	30	%	$	28,553	29	%	$	27,466	29	%	$	27,574	29	%
Demand deposits - interest-bearing	34,938		24		27,493		27		26,757		27		24,242		25		22,961		25
Money market deposits	33,616		24		26,268		26		26,248		27		26,230		28		25,312		27
Savings and other domestic deposits	20,876		15		13,115		13		11,722		12		11,268		12		11,034		12
Core certificates of deposit (1)	3,537		2		1,329		1		1,425		1		1,586		2		2,478		3
Total core deposits	138,216		97		99,431		97		94,705		96		90,792		96		89,359		96
Other domestic deposits of $250,000 or more	675		—		105		—		131		—		156		—		209		—
Negotiable CDS, brokered and other deposits	3,914		3		2,648		3		4,112		4		4,206		4		4,123		4

Total deposits	$	142,805	100	%	$	102,184	100	%	$	98,948	100	%	$	95,154	100	%	$	93,691	100	%
Total core deposits:
Commercial	$	61,055	44	%	$	46,539	47	%	$	44,698	47	%	$	43,018	47	%	$	41,630	47	%
Consumer	77,161		56		52,892		53		50,007		53		47,774		53		47,729		53
Total core deposits	$	138,216	100	%	$	99,431	100	%	$	94,705	100	%	$	90,792	100	%	$	89,359	100	%


	June 30,				March 31,				December 31,				September 30,				June 30,
(dollar amounts in millions)	2021				2021				2020				2020				2020
Ending Balances by Business Segment:
Consumer and Business Banking	$	95,693	67	%	$	65,437	64	%	$	60,910	61	%	$	59,302	62	%	$	59,202	63	%
Commercial Banking	32,624		23		25,420		25		24,766		25		23,599		25		22,041		24
Vehicle Finance	1,155		1		849		1		722		1		777		1		824		1
RBHPCG	8,416		6		7,163		7		7,635		8		6,623		7		6,834		7
Treasury / Other (2)	4,917		3		3,315		3		4,915		5		4,853		5		4,790		5
Total deposits	$	142,805	100	%	$	102,184	100	%	$	98,948	100	%	$	95,154	100	%	$	93,691	100	%

Average Balances by Business Segment:
Consumer and Business Banking	$	73,011	65	%	$	62,333	63	%	$	60,163	62	%	$	59,460	63	%	$	56,858	61	%
Commercial Banking	27,372		24		25,100		25		24,051		25		23,285		24		24,414		26
Vehicle Finance	1,035		1		768		1		760		1		839		1		646		1
RBHPCG	7,564		7		7,059		7		6,850		7		6,605		7		6,565		7
Treasury / Other (2)	3,696		3		4,025		4		4,740		5		4,860		5		4,739		5
Total deposits	$	112,678	100	%	$	99,285	100	%	$	96,564	100	%	$	95,049	100	%	$	93,222	100	%

(1)Includes consumer certificates of deposit of $250,000 or more.

(2)Comprised primarily of national market deposits.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Quarterly Average Balances (1)
	June 30,		March 31,		December 31,		September 30,		June 30,		Percent Changes vs.
(dollar amounts in millions)	2021		2021		2020		2020		2020		1Q21		2Q20
Assets
Interest-bearing deposits at Federal Reserve Bank	$	7,636	$	6,065	$	5,507	$	5,857	$	3,413	26	%	124	%
Interest-bearing deposits in banks	319		177		205		177		169		80		89
Securities:
Trading account securities	48		52		53		49		39		(8)		23
Available-for-sale securities:
Taxable	20,096		14,827		12,048		10,670		11,179		36		80
Tax-exempt	2,832		2,650		2,710		2,749		2,728		7		4
Total available-for-sale securities	22,928		17,477		14,758		13,419		13,907		31		65


Held-to-maturity securities - taxable	7,280		8,269		8,844		8,932		9,798		(12)		(26)





Other securities	479		412		420		430		474		16		1
Total securities	30,735		26,210		24,075		22,830		24,218		17		27
Loans held for sale	1,294		1,392		1,319		1,259		1,039		(7)		25
Loans and leases: (2)
Commercial:
Commercial and industrial	34,126		32,153		32,508		32,464		32,975		6		3
Commercial real estate:
Construction	1,310		1,053		1,085		1,175		1,201		24		9
Commercial	7,773		6,122		6,092		6,045		5,885		27		32
Commercial real estate	9,083		7,175		7,177		7,220		7,086		27		28
Lease financing	2,798		2,199		2,342		2,205		2,309		27		21
Total commercial	46,007		41,527		42,027		41,889		42,370		11		9
Consumer:
Automobile	12,793		12,665		12,857		12,889		12,681		1		1
Residential mortgage	13,768		12,094		12,100		11,817		11,463		14		20
Home equity	9,375		8,809		8,919		8,878		8,897		6		5
RV and marine	4,447		4,193		4,181		4,020		3,706		6		20
Other consumer	1,047		973		1,032		1,049		1,082		8		(3)
Total consumer	41,430		38,734		39,089		38,653		37,829		7		10
Total loans and leases	87,437		80,261		81,116		80,542		80,199		9		9
Allowance for loan and lease losses	(1,828)		(1,809)		(1,804)		(1,720)		(1,557)		(1)		(17)
Net loans and leases	85,609		78,452		79,312		78,822		78,642		9		9
Total earning assets	127,421		114,105		112,222		110,665		109,038		12		17
Cash and due from banks	1,106		1,080		1,113		1,173		1,299		2		(15)
Goodwill and other intangible assets	3,055		2,176		2,185		2,195		2,206		40		38
All other assets	8,076		7,443		7,279		7,216		7,205		9		12
Total assets	$	137,830	$	122,995	$	120,995	$	119,529	$	118,191	12	%	17	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	29,729	$	26,812	$	25,094	$	23,865	$	23,878	11	%	25	%
Money market deposits	28,124		26,247		26,144		26,200		25,728		7		9
Savings and other domestic deposits	15,190		12,277		11,468		11,157		10,609		24		43
Core certificates of deposit (3)	1,832		1,384		1,479		2,035		3,003		32		(39)

Other domestic deposits of $250,000 or more	259		115		139		175		230		125		13
Negotiable CDS, brokered and other deposits	2,986		3,355		4,100		4,182		4,114		(11)		(27)

Total interest-bearing deposits	78,120		70,190		68,424		67,614		67,562		11		16
Short-term borrowings	241		208		239		162		826		16		(71)
Long-term debt	6,887		7,766		8,799		9,318		9,802		(11)		(30)
Total interest-bearing liabilities	85,248		78,164		77,462		77,094		78,190		9		9
Demand deposits - noninterest-bearing	34,558		29,095		28,140		27,435		25,660		19		35
All other liabilities	2,608		2,412		2,452		2,322		2,396		8		9
Total Huntington Bancshares Inc shareholders’ equity	15,410		13,324		12,941		12,678		11,945		16		29
Non-controlling interest	6		—		—		—		—		100		100
Total equity	15,416		13,324		12,941		12,678		11,945		16		29
Total liabilities and shareholders’ equity	$	137,830	$	122,995	$	120,995	$	119,529	$	118,191	12	%	17	%

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

(2)Includes nonaccrual loans and leases.

(3)Includes consumer certificates of deposit of $250,000 or more.

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)	2021		2021		2020		2020		2020
Assets
Interest-bearing deposits at Federal Reserve Bank	$	2	$	2	$	2	$	1	$	1
Interest-bearing deposits in banks	—		—		—		—		—
Securities:
Trading account securities	1		—		1		—		—
Available-for-sale securities:
Taxable	67		49		46		50		65
Tax-exempt	17		17		17		18		19
Total available-for-sale securities	84		66		63		68		84
Held-to-maturity securities - taxable	35		42		47		52		58



Other securities	2		2		2		1		1
Total securities	122		110		113		121		143
Loans held for sale	9		9		9		9		9
Loans and leases:
Commercial:
Commercial and industrial	319		315		294		294		292
Commercial real estate:
Construction	12		9		9		10		11
Commercial	60		40		41		41		43
Commercial real estate	72		49		50		51		54
Lease financing	36		28		30		31		31
Total commercial	427		392		374		376		377
Consumer:
Automobile	115		116		125		128		121
Residential mortgage	104		95		99		101		101
Home Equity	89		80		85		84		82
RV and marine	46		44		47		47		43
Other consumer	27		27		29		30		30
Total consumer	381		362		385		390		377
Total loans and leases	808		754		759		766		754
Total earning assets	$	941	$	875	$	883	$	897	$	907

Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	4	$	2	$	2	$	3	$	4
Money market deposits	4		4		7		18		25
Savings and other domestic deposits	2		1		1		2		3
Core certificates of deposit (3)	1		2		2		10		7

Other domestic deposits of $250,000 or more	—		—		1		(4)		5
Negotiable CDS, brokered and other deposits	1		2		2		2		3

Total interest-bearing deposits	12		11		15		31		47
Short-term borrowings	—		—		—		—		1
Long-term debt	85		(114)		38		44		62
Total interest bearing liabilities	97		(103)		53		75		110
Net interest income	$	844	$	978	$	830	$	822	$	797

(1)Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.

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

(3)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)


	Quarterly Average Rates
	June 30,		March 31,		December 31,		September 30,		June 30,
Fully-taxable equivalent basis (1)	2021		2021		2020		2020		2020
Assets
Interest-bearing deposits at Federal Reserve Bank	0.11	%	0.10	%	0.10	%	0.10	%	0.10	%
Interest-bearing deposits in banks	0.01		0.08		0.12		0.13		0.33
Securities:
Trading account securities	2.96		3.64		3.65		3.18		1.99
Available-for-sale securities:
Taxable	1.34		1.32		1.53		1.89		2.30
Tax-exempt	2.42		2.52		2.59		2.71		2.75
Total available-for-sale securities	1.47		1.50		1.72		2.06		2.39
Held-to-maturity securities - taxable	1.94		2.02		2.11		2.28		2.39



Other securities	1.72		1.66		1.85		1.23		0.57
Total securities	1.59		1.67		1.87		2.13		2.35
Loans held for sale	2.79		2.64		2.96		2.82		3.22
Loans and leases: (3)
Commercial:
Commercial and industrial	3.70		3.91		3.53		3.55		3.50
Commercial real estate:
Construction	3.57		3.41		3.36		3.40		3.66
Commercial	3.06		2.64		2.62		2.63		2.94
Commercial real estate	3.13		2.75		2.73		2.75		3.06
Lease financing	5.00		5.18		5.08		5.52		5.32
Total commercial	3.67		3.78		3.48		3.52		3.53
Consumer:
Automobile	3.62		3.71		3.88		3.93		3.84
Residential mortgage	3.04		3.13		3.27		3.41		3.51
Home Equity	3.79		3.71		3.76		3.79		3.73
RV and marine	4.13		4.30		4.53		4.60		4.71
Other consumer	10.17		11.17		11.12		11.23		11.10
Total consumer	3.69		3.78		3.93		4.00		4.00
Total loans and leases	3.68		3.78		3.70		3.75		3.75
Total earning assets	2.96		3.11		3.13		3.22		3.35
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.04		0.04		0.04		0.05		0.07
Money market deposits	0.06		0.06		0.10		0.28		0.40
Savings and other domestic deposits	0.04		0.04		0.05		0.06		0.10
Core certificates of deposit (4)	0.19		0.51		0.56		1.03		1.55

Other domestic deposits of $250,000 or more	0.26		0.22		0.51		0.92		1.25
Negotiable CDS, brokered and other deposits	0.16		0.18		0.19		0.19		0.18

Total interest-bearing deposits	0.06		0.06		0.08		0.18		0.28
Short-term borrowings	0.47		0.19		0.26		0.30		0.47
Long-term debt	4.97		(5.88)		1.72		1.87		2.58
Total interest-bearing liabilities	0.45		(0.53)		0.27		0.39		0.57

Net interest rate spread	2.51		3.64		2.86		2.83		2.78
Impact of noninterest-bearing funds on margin	0.15		(0.16)		0.08		0.13		0.16
Net interest margin	2.66	%	3.48	%	2.94	%	2.96	%	2.94	%


Commercial Loan Derivative Impact
(Unaudited)
	Average Rates
	2021		2021		2020		2020		2020
Fully-taxable equivalent basis (1)	Second		First		Fourth		Third		Second
Commercial loans (2)(3)	3.27	%	3.22	%	2.92	%	3.01	%	3.17	%
Impact of commercial loan derivatives	0.40		0.56		0.56		0.51		0.36
Total commercial - as reported	3.67	%	3.78	%	3.48	%	3.52	%	3.53	%
Average 1 Month LIBOR	0.10	%	0.12	%	0.15	%	0.16	%	0.36	%

(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.

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

(3)Includes nonaccrual loans and leases.

(4)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data

(Unaudited)


	Three Months Ended
(dollar amounts in millions, except per share data)	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
Interest income	$	935	$	869	$	878	$	892	$	902
Interest expense	97		(103)		53		75		110
Net interest income	838		972		825		817		792
Provision for credit losses	211		(60)		103		177		327
Net interest income after provision for credit losses	627		1,032		722		640		465
Mortgage banking income	67		100		90		122		96
Service charges on deposit accounts	88		69		78		76		60
Card and payment processing income	80		65		65		66		59
Trust and investment management services	56		52		49		48		45
Leasing revenue	12		4		6		3		7
Capital markets fees	35		29		34		27		31
Insurance income	25		27		25		24		25
Bank owned life insurance income	16		16		14		17		17
Gain on sale of loans	3		3		13		13		8
Net gains (losses) on sales of securities	10		—		—		—		(1)
Other noninterest income	52		30		35		34		44
Total noninterest income	444		395		409		430		391
Personnel costs	592		468		426		453		418
Outside data processing and other services	162		115		111		98		90
Equipment	55		46		49		44		46
Net occupancy	72		42		39		40		39
Lease financing equipment depreciation	5		—		—		—		1
Professional services	48		17		21		12		11
Amortization of intangibles	11		10		10		10		10
Marketing	15		14		15		9		5
Deposit and other insurance expense	8		8		8		6		9
Other noninterest expense	104		73		77		40		46
Total noninterest expense	1,072		793		756		712		675
(Loss) income before income taxes	(1)		634		375		358		181
Provision for income taxes	14		102		59		55		31
(Loss) income after income taxes	(15)		532		316		303		150
Income attributable to non-controlling interest	—		—		—		—		—
Net (loss) income attributable to Huntington Bancshares Inc	(15)		532		316		303		150
Dividends on preferred shares	43		31		35		28		19
Net (loss) income applicable to common shares	$	(58)	$	501	$	281	$	275	$	131

Average common shares - basic	1,125		1,018		1,017		1,017		1,016
Average common shares - diluted	1,125		1,041		1,036		1,031		1,029

Per common share
Net (loss) income - basic	$	(0.05)	$	0.49	$	0.28	$	0.27	$	0.13
Net (loss) income - diluted	(0.05)		0.48		0.27		0.27		0.13
Cash dividends declared	0.15		0.15		0.15		0.15		0.15

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	838	$	972	$	825	$	817	$	792
FTE adjustment	6		6		5		5		5
Net interest income (1)	844		978		830		822		797
Noninterest income	444		395		409		430		391
Total revenue (1)	$	1,288	$	1,373	$	1,239	$	1,252	$	1,188

(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Noninterest Income

(Unaudited)


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			Percent Changes vs.
(dollar amounts in millions)	2021			2021			2020			2020			2020			1Q21		2Q20
Net origination and secondary marketing income	$	70		$	94		$	92		$	118		$	91		(26)	%	(23)	%
Net mortgage servicing income
Loan servicing income	17			17			16			15			14			—		21
Amortization of capitalized servicing	(20)			(20)			(17)			(15)			(12)			—		(67)
Operating (expense) income	(3)			(3)			(1)			—			2			—		(250)
MSR valuation adjustment (1)	(24)			51			4			3			(6)			(147)		(300)
Gains (losses) due to MSR hedging	22			(46)			(9)			(1)			6			148		267
Net MSR risk management	(2)			5			(5)			2			—			(140)		(100)
Total net mortgage servicing (expense) income	$	(5)		$	2		$	(6)		$	2		$	2		(350)	%	(350)	%
All other	2			4			4			2			3			(50)		(33)
Mortgage banking income	$	67		$	100		$	90		$	122		$	96		(33)	%	(30)	%

Mortgage origination volume	$	4,007		$	4,042		$	3,741		$	3,811		$	3,802		(1)	%	5	%
Mortgage origination volume for sale	2,265			2,669			2,444			2,568			2,421			(15)		(6)

Third party mortgage loans serviced (2)	30,398			23,585			23,471			23,334			23,184			29		31
Mortgage servicing rights (2)	327			274			210			191			172			19		90
MSR % of investor servicing portfolio (2)	1.08		%	1.16		%	0.89		%	0.82		%	0.74		%	(7)	%	46	%

(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)	2021			2021			2020			2020			2020
Allowance for loan and lease losses, beginning of period	$	1,703		$	1,814		$	1,796		$	1,702		$	1,504

Loan and lease losses	(102)			(95)			(140)			(141)			(123)
Recoveries of loans and leases previously charged off	40			31			28			28			16
Net loan and lease losses	(62)			(64)			(112)			(113)			(107)
Provision for loan and lease losses	145			(47)			130			207			305
Allowance on loans and leases purchased with credit deterioration	432			—			—			—			—
Allowance of assets sold or transferred to loans held for sale	—			—			—			—			—
Allowance for loan and lease losses, end of period	2,218			1,703			1,814			1,796			1,702
Allowance for unfunded lending commitments, beginning of period	38			52			82			119			99

Provision for (reduction in) unfunded lending commitments	66			(13)			(27)			(30)			22

Unfunded lending commitment losses	—			(1)			(3)			(7)			(2)
Allowance for unfunded lending commitments, end of period	104			38			52			82			119
Total allowance for credit losses, end of period	$	2,322		$	1,741		$	1,866		$	1,878		$	1,821
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.98		%	2.12		%	2.22		%	2.21		%	2.12		%
Nonaccrual loans and leases (NALs)	227			330			341			316			263
Nonperforming assets (NPAs)	219			313			323			298			239
Total allowance for credit losses (ACL) as % of:
Total loans and leases	2.08		%	2.17		%	2.29		%	2.31		%	2.27		%
Nonaccrual loans and leases (NALs)	238			338			351			330			281
Nonperforming assets (NPAs)	229			320			332			311			255

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)	2021			2021			2020			2020			2020
Net charge-offs (recoveries) by loan and lease type:
Commercial:
Commercial and industrial	$	37		$	28		$	54		$	70		$	80
Commercial real estate:
Construction	—			—			—			(1)			1
Commercial	17			(3)			32			13			(1)
Commercial real estate	17			(3)			32			12			—
Lease Financing	5			24			4			7			—
Total commercial	59			49			90			89			80
Consumer:
Automobile	(4)			2			6			10			10
Residential mortgage	—			—			1			1			—
Home Equity	(1)			—			1			—			—
RV and marine	—			3			2			4			4
Other consumer	8			10			12			9			13
Total consumer	3			15			22			24			27
Total net charge-offs (1)	$	62		$	64		$	112		$	113		$	107


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2021			2021			2020			2020			2020
Net charge-offs (recoveries) - annualized percentages:
Commercial:
Commercial and industrial	0.43		%	0.35		%	0.65		%	0.88		%	0.96		%
Commercial real estate:
Construction	(0.04)			(0.04)			(0.04)			(0.25)			(0.01)
Commercial	0.81			(0.17)			2.14			0.80			(0.03)
Commercial real estate	0.69			(0.15)			1.81			0.63			(0.03)
Lease financing	0.93			4.32			0.86			1.10			0.01
Total commercial	0.51			0.47			0.86			0.85			0.75
Consumer:
Automobile	(0.13)			0.05			0.21			0.31			0.31
Residential mortgage	—			0.01			0.05			0.03			0.02
Home Equity	(0.08)			0.02			0.01			(0.02)			0.08
RV and marine	0.02			0.29			0.21			0.38			0.37
Other consumer	3.13			3.99			4.35			3.55			4.80
Total consumer	0.02			0.16			0.22			0.24			0.30
Net charge-offs as a % of average loans (1)	0.28		%	0.32		%	0.55		%	0.56		%	0.54		%

(1)Net charge-offs and associated metrics for the period ended June 30, 2021 exclude $80 million of charge-offs recognized immediately upon completion of the TCF acquisition and related to required purchase accounting treatment.

Huntington Bancshares Incorporated

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (1)

(Unaudited)


	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2021			2021			2020			2020			2020
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	591		$	326		$	349		$	378		$	462
Commercial real estate	83			8			15			16			28
Lease financing	74			17			4			10			23
Automobile	3			3			4			5			8
Residential mortgage	130			90			88			88			66
Home equity	91			71			70			71			59
RV and marine	5			1			2			1			2
Other consumer	—			—			—			—			—
Total nonaccrual loans and leases	977			516			532			569			648
Other real estate, net:
Residential	5			2			4			4			5
Commercial	2			—			—			1			2
Total other real estate, net	7			2			4			5			7
Other NPAs (2)	30			26			27			28			58
Total nonperforming assets	$	1,014		$	544		$	563		$	602		$	713

Nonaccrual loans and leases as a % of total loans and leases	0.87		%	0.64		%	0.65		%	0.70		%	0.81		%
NPA ratio (3)	0.91			0.68			0.69			0.74			0.89
(NPA+90days)/(Loan+OREO) (4)	1.04			0.87			0.90			0.96			1.13


	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollar amounts in millions)	2021		2021		2020		2020		2020
Nonperforming assets, beginning of period	$	544	$	563	$	602	$	713	$	586
New nonperforming assets	116		129		248		190		279
Acquired NPAs	630		—		—		—		—
Transfer to OREO	(1)		—		—		—		—
Returns to accruing status	(46)		(33)		(108)		(47)		(25)
Charge-offs	(77)		(52)		(73)		(102)		(61)
Payments	(81)		(55)		(82)		(77)		(63)
Sales	(71)		(8)		(24)		(75)		(3)

Nonperforming assets, end of period	$	1,014	$	544	$	563	$	602	$	713

(1)Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.

(2)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.

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

(4)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)	2021			2021			2020			2020			2020
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	1		$	—		$	—		$	—		$	—
Commercial real estate	—			—			—			—			—
Lease financing	14			8			10			10			13
Automobile	4			5			9			8			8
Residential mortgage (excluding loans guaranteed by the U.S. Government)	17			18			30			18			17
Home equity	9			10			14			11			10
RV and marine	1			1			3			2			2
Other consumer	2			2			3			2			3
Total, excl. loans guaranteed by the U.S. Government	48			44			69			51			53
Add: loans guaranteed by U.S. Government	100			110			102			124			141
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government	$	148		$	154		$	171		$	175		$	194

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.04		%	0.05		%	0.08		%	0.06		%	0.07		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.09			0.14			0.13			0.15			0.18
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.13			0.19			0.21			0.22			0.24

Accruing troubled debt restructured loans:
Commercial and industrial	$	130		$	127		$	193		$	189		$	192
Commercial real estate	26			32			33			34			35
Lease financing	—			—			—			—			—
Automobile	48			51			50			53			52
Residential mortgage	247			249			248			256			229
Home equity	172			179			187			199			209
RV and marine	7			7			6			6			6
Other consumer	8			8			9			10			10
Total accruing troubled debt restructured loans	$	638		$	653		$	726		$	747		$	733

Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	92		$	101		$	95		$	146		$	169
Commercial real estate	2			3			3			3			3
Lease financing	—			—			—			—			—
Automobile	2			2			2			2			2
Residential mortgage	51			51			51			48			43
Home equity	27			30			30			29			26
RV and marine	1			1			1			1			1
Other consumer	—			—			—			—			—
Total nonaccruing troubled debt restructured loans	$	175		$	188		$	182		$	229		$	244

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)	2021			2021			2020			2020			2020
Common equity tier 1 risk-based capital ratio: (1)
Total shareholders’ equity	$	20,511		$	13,600		$	12,992		$	12,917		$	12,314
Regulatory capital adjustments:
CECL transitional amount (2)	459			422			453			456			442
Shareholders’ preferred equity	(2,866)			(2,680)			(2,196)			(2,195)			(1,701)
Accumulated other comprehensive income (loss) offset	19			56			(192)			(257)			(290)
Goodwill and other intangibles, net of related taxes	(5,479)			(2,095)			(2,107)			(2,118)			(2,129)
Deferred tax assets that arise from tax loss and credit carryforwards	(48)			(63)			(63)			(59)			(40)
Common equity tier 1 capital	12,596			9,240			8,887			8,744			8,596
Additional tier 1 capital
Shareholders’ preferred equity	2,866			2,680			2,196			2,195			1,701

Other	—			—			—			—			—
Tier 1 capital	15,462			11,920			11,083			10,939			10,297
Long-term debt and other tier 2 qualifying instruments	1,062			610			660			677			697
Qualifying allowance for loan and lease losses	1,345			1,119			1,113			1,107			1,093
Tier 2 capital	2,407			1,729			1,773			1,784			1,790
Total risk-based capital	$	17,869		$	13,649		$	12,856		$	12,723		$	12,087
Risk-weighted assets (RWA)(1)	$	126,318		$	89,494		$	88,878		$	88,417		$	87,323
Common equity tier 1 risk-based capital ratio (1)	9.97		%	10.32		%	10.00		%	9.89		%	9.84		%
Other regulatory capital data:
Tier 1 leverage ratio (1)	11.65			9.85			9.32			9.31			8.86
Tier 1 risk-based capital ratio (1)	12.24			13.32			12.47			12.37			11.79
Total risk-based capital ratio (1)	14.15			15.25			14.46			14.39			13.84
Non-regulatory capital data:
Tangible common equity / RWA ratio (1)	9.60			9.82			9.74			9.70			9.69

(1)June 30, 2021, figures are estimated.

(2)The CECL transitional amount includes the impact of Huntington's adoption of the new CECL accounting standard on January 1, 2020 and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL, excluding the allowance established at acquisition for purchased credit deteriorated loans.

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,
	2021		2021		2020		2020		2020





Dividends, per share
Cash dividends declared per common share	$	0.15	$	0.15	$	0.15	$	0.15	$	0.15
Common shares outstanding (in millions)
Average - basic	1,125		1,018		1,017		1,017		1,016
Average - diluted	1,125		1,041		1,036		1,031		1,029
Ending	1,477		1,018		1,017		1,017		1,017
Tangible book value per common share (1)	$	8.23	$	8.64	$	8.51	$	8.43	$	8.32
Common share repurchases (in millions)
Number of shares repurchased	—		—		—		—		—

Non-regulatory capital


	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2021			2021			2020			2020			2020
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	20,531		$	13,600		$	12,993		$	12,917		$	12,314
Less: goodwill	(5,316)			(1,990)			(1,990)			(1,990)			(1,990)
Less: other intangible assets	(269)			(181)			(191)			(201)			(211)
Add: related deferred tax liability (1)	56			38			40			42			44
Total tangible equity	15,002			11,467			10,852			10,768			10,157
Less: preferred equity	(2,851)			(2,676)			(2,191)			(2,191)			(1,697)
Total tangible common equity	$	12,151		$	8,791		$	8,661		$	8,577		$	8,460
Total assets	$	175,172		$	125,768		$	123,038		$	120,116		$	118,425
Less: goodwill	(5,316)			(1,990)			(1,990)			(1,990)			(1,990)
Less: other intangible assets	(269)			(181)			(191)			(201)			(211)
Add: related deferred tax liability (1)	56			38			40			42			44
Total tangible assets	$	169,643		$	123,635		$	120,897		$	117,967		$	116,268
Tangible equity / tangible asset ratio	8.84		%	9.28		%	8.98		%	9.13		%	8.74		%
Tangible common equity / tangible asset ratio	7.16			7.11			7.16			7.27			7.28
Other data:
Number of employees (Average full-time equivalent)	17,018			15,449			15,477			15,680			15,703
Number of domestic full-service branches (2)	1,239			814			839			839			839
ATM Count	2,340			1,314			1,322			1,330			1,344

(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 Year To Date Average Balance Sheets

(Unaudited)


	YTD Average Balances (1)
	Six Months Ended June 30,				Change
(dollar amounts in millions)	2021		2020		Amount		Percent
Assets
Interest-bearing deposits at Federal Reserve Bank	$	6,855	$	2,047	$	4,808	235	%
Interest-bearing deposits in banks	248		159		89		56
Securities:
Trading account securities	50		67		(17)		(25)
Available-for-sale securities:
Taxable	17,476		11,425		6,051		53
Tax-exempt	2,742		2,740		2		—
Total available-for-sale securities	20,218		14,165		6,053		43


Held-to-maturity securities - taxable	7,772		9,613		(1,841)		(19)





Other securities	447		460		(13)		(3)
Total securities	28,487		24,305		10,235		17
Loans held for sale	1,343		952		391		41
Loans and leases: (2)
Commercial:
Commercial and industrial	33,145		30,753		2,392		8
Commercial real estate:
Construction	1,182		1,183		(1)		—
Commercial	6,952		5,726		1,226		21
Commercial real estate	8,134		6,909		1,225		18
Lease financing	2,500		2,313		187		8
Total commercial	43,779		39,975		3,804		10
Consumer:
Automobile	12,729		12,803		(74)		(1)
Residential mortgage	12,936		11,427		1,509		13
Home equity	9,093		8,961		132		1
RV and marine	4,320		3,648		672		18
Other consumer	1,010		1,133		(123)		(11)
Total consumer	40,088		37,972		2,116		6
Total loans and leases	83,867		77,947		5,920		8
Allowance for loan and lease losses	(1,818)		(1,398)		(420)		(30)
Net loans and leases	82,049		76,549		5,500		7
Total earning assets	120,800		105,410		15,390		15
Cash and due from banks	1,093		1,106		(13)		(1)
Goodwill and other intangible assets	2,618		2,211		407		18
All other assets	7,761		6,840		921		13
Total assets	$	130,454	$	114,169	16,285		14	%
Liabilities and shareholders’ equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	28,279	$	22,540	$	5,739	25	%
Money market deposits	27,190		25,213		1,977		8
Savings and other domestic deposits	13,743		10,120		3,623		36
Core certificates of deposit (3)	1,487		3,028		(1,541)		(51)

Other domestic deposits of $250,000 or more	309		720		(411)		(57)
Negotiable CDS, brokered and other deposits	3,169		3,499		(330)		(9)

Total interest-bearing deposits	74,177		65,120		9,057		14
Short-term borrowings	224		2,105		(1,881)		(89)
Long-term debt	7,324		9,939		(2,615)		(26)
Total interest-bearing liabilities	81,725		77,164		4,561		6
Demand deposits - noninterest-bearing	31,841		22,857		8,984		39
All other liabilities	2,512		2,358		154		7
Total Huntington Bancshares Inc shareholders’ equity	14,376		11,790		2,586		22
Non-controlling interest	—		—		—		—
Total equity	$	14,376	$	11,790	$	2,586	22
Total liabilities and shareholders’ equity	$	130,454	$	114,169	$	16,285	14	%

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

(2)Includes nonaccrual loans and leases.

(3)Includes consumer certificates of deposit of $250,000 or more.

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)	2021		2020
Assets
Interest-bearing deposits at Federal Reserve Bank	$	4	$	3
Interest-bearing deposits in banks	—		1
Securities:
Trading account securities	1		1
Available-for-sale securities:
Taxable	116		141
Tax-exempt	34		42
Total available-for-sale securities	150		183
Held-to-maturity securities - taxable	77		117



Other securities	4		3
Total securities	232		304
Loans held for sale	18		16
Loans and leases:
Commercial:
Commercial and industrial	634		578
Commercial real estate:
Construction	21		25
Commercial	100		99
Commercial real estate	121		124
Lease financing	64		63
Total commercial	819		765
Consumer:
Automobile	231		251
Residential mortgage	199		206
Home equity	169		189
RV and marine	90		87
Other consumer	54		66
Total consumer	743		799
Total loans and leases	1,562		1,564
Total earning assets	$	1,816	$	1,888
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	6	$	27
Money market deposits	8		75
Savings and other domestic deposits	3		7
Core certificates of deposit (3)	3		26

Other domestic deposits of $250,000 or more	—		6
Negotiable CDS, brokered and other deposits	3		11

Total interest-bearing deposits	23		152
Short-term borrowings	—		13
Long-term debt	(29)		130
Total interest-bearing liabilities	(6)		295

Net interest income	$	1,822	$	1,593

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

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

(3)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Year To Date Net Interest Margin - Yield

(Unaudited)


	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis (1)	2021		2020
Assets
Interest-bearing deposits in Federal Reserve Bank	0.11	%	0.26	%
Interest-bearing deposits in banks	0.03		0.89
Securities:
Trading account securities	3.32		2.86
Available-for-sale securities:
Taxable	1.33		2.46
Tax-exempt	2.46		3.03
Total available-for-sale securities	1.48		2.57
Held-to-maturity securities - taxable	1.98		2.44



Other securities	1.69		1.30
Total securities	1.63		2.50
Loans held for sale	2.71		3.30
Loans and leases: (3)
Commercial:
Commercial and industrial	3.80		3.74
Commercial real estate:
Construction	3.50		4.19
Commercial	2.87		3.45
Commercial real estate	2.96		3.58
Lease financing	5.08		5.41
Total commercial	3.72		3.81
Consumer:
Automobile	3.67		3.95
Residential mortgage	3.08		3.60
Home Equity	3.75		4.24
RV and marine	4.21		4.81
Other consumer	10.65		11.77
Total consumer	3.73		4.23
Total loans and leases	3.72		4.01
Total earning assets	3.03	%	3.60	%
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	0.04	%	0.24	%
Money market deposits	0.06		0.60
Savings and other domestic deposits	0.04		0.14
Core certificates of deposit (4)	0.36		1.71

Other domestic deposits of $250,000 or more	0.15		1.81
Negotiable CDS, brokered and other deposits	0.17		0.61

Total interest-bearing deposits	0.06		0.47
Short-term borrowings	0.34		1.26
Long-term debt	(0.78)		2.64
Total interest-bearing liabilities	(0.02)		0.77

Net interest rate spread	3.05		2.83
Impact of noninterest-bearing funds on margin	(0.01)		0.21
Net interest margin	3.04	%	3.04	%


Commercial Loan Derivative Impact
(Unaudited)
	YTD Average Rates
	Six Months Ended June 30,
Fully-taxable equivalent basis (1)	2021		2020
Commercial loans (2)(3)	3.25	%	3.60	%
Impact of commercial loan derivatives	0.47		0.21
Total commercial - as reported	3.72	%	3.81	%
Average 1 Month LIBOR	0.11	%	0.90	%

(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.

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

(3)Includes the impact of nonaccrual loans and leases.

(4)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Selected Year To Date Income Statement Data

(Unaudited)


	Six Months Ended June 30,				Change
(dollar amounts in millions, except per share data)	2021		2020		Amount		Percent
Interest income	$	1,804	$	1,877	$	(73)	(4)	%
Interest expense	(6)		295		(301)		(102)
Net interest income	1,810		1,582		228		14
Provision for credit losses	151		768		(617)		(80)
Net interest income after provision for credit losses	1,659		814		845		104
Mortgage banking income	167		154		13		8
Service charges on deposit accounts	157		148		9		6
Card and payment processing income	145		117		28		24
Trust and investment management services	108		92		16		17
Leasing revenue	16		10		6		60
Capital markets fees	64		64		—		—
Insurance income	52		48		4		8
Bank owned life insurance income	32		32		—		—
Gain on sale of loans	6		17		(11)		(65)
Net gains (losses) on sales of securities	10		(1)		11		1,100
Other noninterest income	82		71		11		15
Total noninterest income	839		752		87		12
Personnel costs	1,060		814		246		30
Outside data processing and other services	277		175		102		58
Equipment	101		87		14		16
Net occupancy	114		79		35		44
Lease financing equipment depreciation	5		1		4		400
Professional services	65		22		43		195
Amortization of intangibles	21		21		—		—
Marketing	29		14		15		107
Deposit and other insurance expense	16		18		(2)		(11)
Other noninterest expense	177		96		81		84
Total noninterest expense	1,865		1,327		538		41
Income before income taxes	633		239		394		165
Provision for income taxes	116		41		75		183
Income after income taxes	517		198		319		161
Income attributable to non-controlling interest	—		—		—		—
Net income attributable to Huntington Bancshares Inc	517		198		319		161
Dividends on preferred shares	74		37		37		100
Net income applicable to common shares	$	443	$	161	$	282	175	%
Average common shares - basic	1,071		1,017		54		5
Average common shares - diluted	1,094		1,032		62		6
Per common share
Net income - basic	$	0.41	$	0.16	$	0.25	156	%
Net income - diluted	0.40		0.16		0.24		150
Cash dividends declared	0.30		0.30		—		—
Revenue - fully taxable equivalent (FTE)
Net interest income	$	1,810	$	1,582	$	228	14	%
FTE adjustment (1)	12		11		1		9
Net interest income	1,822		1,593		229		14
Noninterest income	839		752		87		12
Total revenue (1)	$	2,661	$	2,345	$	316	13	%

(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.

Huntington Bancshares Incorporated

Year To Date Mortgage Banking Noninterest Income

(Unaudited)


	Six Months Ended June 30,						Change
(dollar amounts in millions)	2021			2020			Amount			Percent
Net origination and secondary marketing income	$	164		$	136		28			21	%
Net mortgage servicing income
Loan servicing income	34			30			4			13
Amortization of capitalized servicing	(40)			(21)			(19)			(90)
Operating (expense) income	(6)			9			(15)			(167)
MSR valuation adjustment (1)	27			(59)			86			146
(Losses) gains due to MSR hedging	(24)			63			(87)			(138)
Net MSR risk management	3			4			(1)			—
Total net mortgage servicing income	$	(3)		$	13		$	(16)		(123)	%
All other	6			5			1			20
Mortgage banking income	$	167		$	154		$	13		8	%

Mortgage origination volume	$	8,049		$	5,938		$	2,111		36	%
Mortgage origination volume for sale	4,934			3,677			1,257			34

Third party mortgage loans serviced (2)	30,398			23,184			7,214			31
Mortgage servicing rights (2)	327			172			155			90
MSR % of investor servicing portfolio	1.08		%	0.74		%	0.34		%	46	%

(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)	2021			2020
Allowance for loan and lease losses, beginning of period	$	1,814		$	783
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	$	—		$	391
Loan and lease losses	(197)			(259)
Recoveries of loans and leases previously charged off	71			35
Net loan and lease losses	(126)			(224)
Provision for loan and lease losses	98			752
Allowance on loans and leases purchased with credit deterioration	432			—

Allowance for loan and lease losses, end of period	2,218			1,702
Allowance for unfunded lending commitments, beginning of period	$	52		$	104
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13)	—			2
Provision for unfunded lending commitments	53			16

Unfunded lending commitment losses	(1)			(3)
Allowance for unfunded lending commitments, end of period	104			119
Total allowance for credit losses	$	2,322		$	1,821
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.98		%	2.12		%
Nonaccrual loans and leases (NALs)	227			263
Nonperforming assets (NPAs)	219			239
Total allowance for credit losses (ACL) as % of:
Total loans and leases	2.08		%	2.27		%
Nonaccrual loans and leases (NALs)	238			281
Nonperforming assets (NPAs)	229			255

Huntington Bancshares Incorporated

Year To Date Net Charge-Off Analysis

(Unaudited)


	Six Months Ended June 30,
(dollar amounts in millions)	2021			2020
Net charge-offs (recoveries) by loan and lease type:
Commercial:
Commercial and industrial	$	65		$	163
Commercial real estate:
Construction	—			1
Commercial	14			(2)
Commercial real estate	14			(1)
Lease financing	29			1
Total commercial	108			163
Consumer:
Automobile	(2)			17
Residential mortgage	—			1
Home equity	(1)			5
RV and marine	3			6
Other consumer	18			32
Total consumer	18			61
Total net charge-offs (1)	$	126		$	224


	Six Months Ended June 30,
	2021			2020
Net charge-offs (recoveries) - annualized percentages:
Commercial:
Commercial and industrial	0.39		%	1.06		%
Commercial real estate:
Construction	(0.04)			0.04
Commercial	0.38			(0.04)
Commercial real estate	0.32			(0.03)
Lease financing	2.42			0.11
Total commercial	0.49			0.81
Consumer:
Automobile	(0.04)			0.26
Residential mortgage	0.01			0.02
Home equity	(0.03)			0.14
RV and marine	0.15			0.32
Other consumer	3.54			5.66
Total consumer	0.09			0.33
Net charge-offs as a % of average loans (1)	0.30		%	0.58		%

Huntington Bancshares Incorporated

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

(Unaudited)


	June 30,
(dollar amounts in millions)	2021			2020
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	591		$	462
Commercial real estate	83			28
Lease financing	74			23
Automobile	3			8
Residential mortgage	130			66
Home equity	91			59
RV and marine	5			2
Other consumer	—			—
Total nonaccrual loans and leases	977			648
Other real estate, net:
Residential	5			5
Commercial	2			2
Total other real estate, net	7			7
Other NPAs (1)	30			58
Total nonperforming assets (3)	$	1,014		$	713

Nonaccrual loans and leases as a % of total loans and leases	0.87		%	0.81		%
NPA ratio (2)	0.91			0.89


	Six Months Ended June 30,
(dollar amounts in millions)	2021		2020
Nonperforming assets, beginning of period	$	563	$	498
New nonperforming assets	245		553
Acquired NPAs	630		—
Transfer to OREO	(1)		—
Returns to accruing status	(79)		(43)
Charge-offs	(129)		(152)
Payments	(136)		(133)
Sales and held-for-sale transfers	(79)		(10)
Nonperforming assets, end of period (2)	$	1,014	$	713

(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.

(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 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)	2021			2020
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	1		$	—
Commercial real estate	—			—
Lease financing	14			13
Automobile	4			8
Residential mortgage (excluding loans guaranteed by the U.S. Government)	17			17
Home equity	9			10
RV and marine	1			2
Other consumer	2			3
Total, excl. loans guaranteed by the U.S. Government	48			53
Add: loans guaranteed by U.S. Government	100			141
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	148		$	194
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.04		%	0.07		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.09			0.18
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.13			0.24
Accruing troubled debt restructured loans:
Commercial and industrial	$	130		$	192
Commercial real estate	26			35
Lease financing	—			—
Automobile	48			52
Residential mortgage	247			229
Home equity	172			209
RV and marine	7			6
Other consumer	8			10
Total accruing troubled debt restructured loans	$	638		$	733
Nonaccruing troubled debt restructured loans:
Commercial and industrial	$	92		$	169
Commercial real estate	2			3
Lease financing	—			—
Automobile	2			2
Residential mortgage	51			43
Home equity	27			26
RV and marine	1			1
Other consumer	—			—
Total nonaccruing troubled debt restructured loans	$	175		$	244

HUNTINGTON BANCSHARES INC /MD/ - FORM 8-K - EX-99.2 - July 29, 2021

Attached files

HUNTINGTON BANCSHARES INC /MD/ Reports