x
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Maryland
|
|
31-0724920
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
41 S. High Street, Columbus, Ohio
|
|
43287
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of class
|
|
Name of exchange on which registered
|
8.50% Series A non-voting, perpetual convertible preferred stock
|
|
NASDAQ
|
5.875% Series C Non-Cumulative, perpetual preferred stock
|
|
NASDAQ
|
6.250% Series D Non-Cumulative, perpetual preferred stock
|
|
NASDAQ
|
Common Stock—Par Value $0.01 per Share
|
|
NASDAQ
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
¨
|
|
|
|
|
|
|
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
||||
|
|
|
|
Smaller reporting company
|
¨
|
|
|
|
|
Emerging growth company
|
¨
|
ABL
|
Asset Based Lending
|
ABS
|
Asset-Backed Securities
|
ACL
|
Allowance for Credit Losses
|
AFS
|
Available-for-Sale
|
ALCO
|
Asset-Liability Management Committee
|
ALLL
|
Allowance for Loan and Lease Losses
|
AML
|
Anti-Money Laundering
|
ANPR
|
Advance Notice of Proposed Rulemaking
|
AOCI
|
Accumulated Other Comprehensive Income
|
ASC
|
Accounting Standards Codification
|
ATM
|
Automated Teller Machine
|
AULC
|
Allowance for Unfunded Loan Commitments
|
Bank Secrecy Act
|
Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970
|
BHC
|
Bank Holding Company
|
BHC Act
|
Bank Holding Company Act of 1956
|
C&I
|
Commercial and Industrial
|
CCAR
|
Comprehensive Capital Analysis and Review
|
CDO
|
Collateralized Debt Obligation
|
CDs
|
Certificates of Deposit
|
CET1
|
Common equity tier 1 on a transitional Basel III basis
|
CFPB
|
Consumer Financial Protection Bureau
|
CISA
|
Cybersecurity Information Sharing Act
|
CMO
|
Collateralized Mortgage Obligations
|
CRA
|
Community Reinvestment Act
|
CRE
|
Commercial Real Estate
|
DIF
|
Deposit Insurance Fund
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
EPS
|
Earnings Per Share
|
EVE
|
Economic Value of Equity
|
FASB
|
Financial Accounting Standard Board
|
FCRA
|
Fair Credit Reporting Act
|
FDIA
|
Federal Deposit Insurance Act
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHA
|
Federal Housing Administration
|
FHC
|
Financial Holding Company
|
FHLB
|
Federal Home Loan Bank
|
FICO
|
Fair Isaac Corporation
|
FinCEN
|
Financial Crimes Enforcement Network
|
FINRA
|
Financial Industry Regulatory Authority, Inc.
|
FirstMerit
|
FirstMerit Corporation
|
FRB
|
Federal Reserve Bank
|
FTE
|
Fully-Taxable Equivalent
|
FTP
|
Funds Transfer Pricing
|
GAAP
|
Generally Accepted Accounting Principles in the United States of America
|
GSE
|
Government Sponsored Enterprise
|
HMDA
|
Home Mortgage Disclosure Act
|
HTM
|
Held-to-Maturity
|
IRS
|
Internal Revenue Service
|
LCR
|
Liquidity Coverage Ratio
|
LGD
|
Loss Given Default
|
LIBOR
|
London Interbank Offered Rate
|
LIHTC
|
Low Income Housing Tax Credit
|
LTD
|
Long Term Debt
|
LTV
|
Loan to Value
|
MBS
|
Mortgage-Backed Securities
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MSA
|
Metropolitan Statistical Area
|
MSR
|
Mortgage Servicing Rights
|
NAICS
|
North American Industry Classification System
|
NALs
|
Nonaccrual Loans
|
NCO
|
Net Charge-off
|
NII
|
Noninterest Income
|
NIM
|
Net Interest Margin
|
NPAs
|
Nonperforming Assets
|
OCC
|
Office of the Comptroller of the Currency
|
OCI
|
Other Comprehensive Income (Loss)
|
OCR
|
Optimal Customer Relationship
|
OFAC
|
Office of Foreign Assets Control
|
OLEM
|
Other Loans Especially Mentioned
|
OREO
|
Other Real Estate Owned
|
OTTI
|
Other-Than-Temporary Impairment
|
Patriot Act
|
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
|
PD
|
Probability Of Default
|
Plan
|
Huntington Bancshares Retirement Plan
|
Problem Loans
|
Includes nonaccrual loans and leases (Table 12), accruing loans and leases past due 90 days or more (Table 13), troubled debt restructured loans (Table 15), and criticized commercial loans (credit quality indicators section of Footnote 4).
|
RBHPCG
|
Regional Banking and The Huntington Private Client Group
|
REIT
|
Real Estate Investment Trust
|
Riegle-Neal Act
|
The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
|
ROC
|
Risk Oversight Committee
|
RWA
|
Risk-Weighted Assets
|
SAB
|
Staff Accounting Bulletin
|
SAD
|
Special Assets Division
|
SBA
|
Small Business Administration
|
SEC
|
Securities and Exchange Commission
|
SERP
|
Supplemental Executive Retirement Plan
|
SRIP
|
Supplemental Retirement Income Plan
|
TCJA
|
H.R. 1, Originally known as the Tax Cuts and Jobs Act
|
TDR
|
Troubled Debt Restructured loan
|
U.S. Basel III
|
Refers to the final rule issued by the FRB and OCC and published in the Federal Register on October 11, 2013
|
U.S. Treasury
|
U.S. Department of the Treasury
|
UCS
|
Uniform Classification System
|
UPB
|
Unpaid Principal Balance
|
USDA
|
U.S. Department of Agriculture
|
VA
|
U.S. Department of Veteran Affairs
|
VIE
|
Variable Interest Entity
|
XBRL
|
eXtensible Business Reporting Language
|
|
• 458 branches in Ohio
|
|
• 37 branches in Illinois
|
|
|
• 303 branches in Michigan
|
|
• 31 branches in Wisconsin
|
|
|
• 50 branches in Pennsylvania
|
|
• 25 branches in West Virginia
|
|
|
• 42 branches in Indiana
|
|
• 10 branches in Kentucky
|
|
•
|
Consumer and Business Banking
:
The
Consumer and Business Banking
segment provides a wide array of financial products and services to consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts, certificates of deposit, investments, consumer loans, credit cards and small business loans. Other financial services available to consumer and small business customers include mortgages, insurance, interest rate risk protection, foreign exchange, and treasury management. Huntington serves customers through our network of branches in Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania, West Virginia, and Wisconsin. In addition to our extensive branch network, customers can access Huntington through online banking, mobile banking, telephone banking and ATMs.
|
•
|
Commercial Banking
:
Through a relationship banking model, this segment provides a wide array of products and services to the middle market, large corporate, real estate and government public sector customers located primarily within our geographic footprint. The segment is divided into six business units: Middle Market, Specialty Banking, Asset Finance, Capital Markets/ Institutional Corporate Banking, Commercial Real Estate and Treasury Management.
|
•
|
Vehicle Finance
:
Our products and services include providing financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles and marine craft at franchised and other select dealerships, and providing financing to franchised dealerships for the acquisition of new and used inventory. Products and services are delivered through highly specialized relationship-focused bankers and product partners.
Huntington creates well-defined relationship plans which identify needs where solutions are developed and customer commitments are obtained.
|
•
|
Regional Banking and The Huntington Private Client Group
:
Regional Banking and The Huntington Private Client Group
is closely aligned with our regional banking markets. A fundamental point of differentiation is our commitment to be actively engaged within our local markets - building connections with community and business leaders and offering a uniquely personal experience delivered by colleagues working within those markets.
|
MSA
|
|
Rank
|
|
Deposits
(in millions)
|
|
Market Share
|
||||
Columbus, OH
|
|
1
|
|
|
$
|
22,332
|
|
|
34
|
%
|
Cleveland, OH
|
|
2
|
|
|
9,273
|
|
|
14
|
|
|
Detroit, MI
|
|
5
|
|
|
7,358
|
|
|
6
|
|
|
Akron, OH
|
|
1
|
|
|
3,864
|
|
|
29
|
|
|
Indianapolis, IN
|
|
4
|
|
|
3,285
|
|
|
7
|
|
|
Cincinnati, OH
|
|
4
|
|
|
2,623
|
|
|
2
|
|
|
Pittsburgh, PA
|
|
9
|
|
|
2,978
|
|
|
2
|
|
|
Chicago, IL
|
|
19
|
|
|
2,324
|
|
|
1
|
|
|
Toledo, OH
|
|
1
|
|
|
2,535
|
|
|
24
|
|
|
Grand Rapids, MI
|
|
2
|
|
|
2,367
|
|
|
11
|
|
|
Source: FDIC.gov, based on June 30, 2017 survey.
|
|
|
|
|
|
|
•
|
Tier 1 Leverage Ratio
, equal to the ratio of Tier 1 capital to quarterly average assets (net of goodwill, certain other intangible assets and certain other deductions).
|
•
|
CET1 Risk-Based Capital Ratio
, equal to the ratio of CET1 capital to risk-weighted assets. CET1 capital primarily includes common shareholders’ equity subject to certain regulatory adjustments and deductions, including with respect to goodwill, intangible assets, certain deferred tax assets and AOCI. Certain of these adjustments and deductions were subject to phase-in periods that began on January 1, 2015 and ended on January 1, 2018. Together with the FDIC, the Federal Reserve and OCC have issued proposed rules that would simplify the capital treatment of certain capital deductions and adjustments, and the final phase-in period for these capital deductions and adjustments has been indefinitely delayed.
|
•
|
Tier 1 Risk-Based Capital Ratio
, equal to the ratio of Tier 1 capital to risk-weighted assets. Tier 1 capital is primarily comprised of CET1 capital, perpetual preferred stock and certain qualifying capital instruments.
|
•
|
Total Risk-Based Capital Ratio
, equal to the ratio of total capital, including CET1 capital, Tier 1 capital and Tier 2 capital, to risk-weighted assets. Tier 2 capital primarily includes qualifying subordinated debt and qualifying ALLL. Tier 2 capital also includes, among other things, certain trust preferred securities.
|
|
Minimum Basel III Regulatory Capital Ratio
Plus Capital Conservation Buffer
|
|||||||
|
January 1, 2017
|
|
January 1, 2018
|
|
January 1, 2019
|
|||
CET 1 risk-based capital ratio
|
5.75
|
%
|
|
6.375
|
%
|
|
7.0
|
%
|
Tier 1 risk-based capital ratio
|
7.25
|
|
|
7.875
|
|
|
8.5
|
|
Total risk-based capital ratio
|
9.25
|
|
|
9.875
|
|
|
10.5
|
|
|
|
Minimum Regulatory Capital Ratio
|
Minimum Ratio + Capital Conservation Buffer (1)
|
Well-Capitalized
Minimums (2)
|
|
At December 31, 2017
|
||||
(dollar amounts in billions)
|
|
|
Actual
|
|||||||
Ratios:
|
|
|
|
|
|
|
||||
Tier 1 leverage ratio
|
Consolidated
|
4.00
|
%
|
N/A
|
|
N/A
|
|
|
9.09
|
%
|
|
Bank
|
4.00
|
|
N/A
|
|
5.00
|
%
|
|
9.70
|
|
CET 1 risk-based capital ratio
|
Consolidated
|
4.50
|
|
5.75
|
%
|
N/A
|
|
|
10.01
|
|
|
Bank
|
4.50
|
|
5.75
|
|
6.50
|
|
|
11.02
|
|
Tier 1 risk-based capital ratio
|
Consolidated
|
6.00
|
|
7.25
|
|
6.00
|
|
|
11.34
|
|
|
Bank
|
6.00
|
|
7.25
|
|
8.00
|
|
|
12.10
|
|
Total risk-based capital ratio
|
Consolidated
|
8.00
|
|
9.25
|
|
10.00
|
|
|
13.39
|
|
|
Bank
|
8.00
|
|
9.25
|
|
10.00
|
|
|
14.33
|
|
(1)
|
Reflects the capital conservation buffer of 1.25% applicable during 2017. Huntington and the Bank already meet the Capital Conservation Buffer at the fully phased-in level of 2.5%
|
(2)
|
Reflects the well-capitalized standard applicable to Huntington and the well-capitalized standard applicable to the Bank under Federal Reserve Regulation Y.
|
•
|
Credit risk
, which is the risk of loss due to loan and lease customers or other counterparties not being able to meet their financial obligations under agreed upon terms;
|
•
|
Market risk
, which occurs when fluctuations in interest rates impact earnings and capital. Financial impacts are realized through changes in the interest rates of balance sheet assets and liabilities (net interest margin) or directly through valuation changes of capitalized MSR and/or trading assets (noninterest income);
|
•
|
Liquidity risk
, which is the risk to current or anticipated earnings or capital arising from an inability to meet obligations when they come due. Liquidity risk includes the inability to access funding sources or manage fluctuations in funding levels. Liquidity risk also results from the failure to recognize or address changes in market conditions that affect our ability to liquidate assets quickly and with minimal loss in value;
|
•
|
Operational and Legal risk
, which is the risk of loss arising from inadequate or failed internal processes or systems, human errors or misconduct, or adverse external events. Operational losses result from internal fraud; external fraud, inadequate or inappropriate employment practices and workplace safety, failure to meet professional obligations involving customers, products, and business practices, damage to physical assets, business disruption and systems failures, and failures in execution, delivery, and process management. Legal risk includes, but is not limited to, exposure to orders, fines, penalties, or punitive damages resulting from litigation, as well as regulatory actions;
|
•
|
Compliance risk
, which exposes us to money penalties, enforcement actions or other sanctions as a result of non-conformance with laws, rules, and regulations that apply to the financial services industry;
|
•
|
Strategic risk
, which is defined as risk to current or anticipated earnings, capital, or enterprise value arising from adverse business decisions, improper implementation of business decisions or lack of responsiveness to industry / market changes; and
|
•
|
Reputation risk
, which is the risk that negative publicity regarding an institution's business practices, whether true or not, will cause a decline in the customer base, costly litigation, or revenue reductions.
|
•
|
A decrease in the demand for loans and other products and services offered by us;
|
•
|
A decrease in customer savings generally and in the demand for savings and investment products offered by us; and
|
•
|
An increase in the number of customers and counterparties who become delinquent, file for protection under bankruptcy laws, or default on their loans or other obligations to us.
|
|
|
|
|
|
|
Description
|
Location
|
|
Own
|
|
Lease
|
13 story office building, located adjacent to the Huntington Center
|
Columbus, Ohio
|
|
ü
|
|
|
12 story office building, located adjacent to the Huntington Center
|
Columbus, Ohio
|
|
ü
|
|
|
A portion of 200 Public Square Building
|
Cleveland, Ohio
|
|
|
|
ü
|
12 story office building
|
Youngstown, Ohio
|
|
ü
|
|
|
10 story office building
|
Warren, Ohio
|
|
|
|
ü
|
10 story office building
|
Toledo, Ohio
|
|
ü
|
|
|
A portion of the Grant Building
|
Pittsburgh, Pennsylvania
|
|
|
|
ü
|
18 story office building
|
Charleston, West Virginia
|
|
|
|
ü
|
3 story office building
|
Holland, Michigan
|
|
|
|
ü
|
2 building office complex
|
Troy, Michigan
|
|
|
|
ü
|
Data processing and operations center (Easton)
|
Columbus, Ohio
|
|
ü
|
|
|
Data processing and operations center (Parma)
|
Cleveland, Ohio
|
|
|
|
ü
|
8 story office building
|
Indianapolis, Indiana
|
|
ü
|
|
|
A portion of Huntington Center at 525 Vine
|
Cincinnati, OH
|
|
|
|
ü
|
A portion of 222 LaSalle St.
|
Chicago, IL
|
|
|
|
ü
|
A portion of Two Towne Square
|
Southfield, MI
|
|
|
|
ü
|
7 story office building (ground lease / own building)
|
Akron, OH
|
|
ü
|
|
|
27 story office building
|
Akron, OH
|
|
ü
|
|
|
Operations Center
|
Akron, OH
|
|
|
|
ü
|
12 story office building
|
Saginaw, MI
|
|
|
|
ü
|
2 building office complex (ground lease / own building)
|
Flint, MI
|
|
ü
|
|
|
4 story office building
|
Melrose Park, IL
|
|
|
|
ü
|
Gateway Center building - operations center
|
Columbus, OH
|
|
ü
|
|
|
|
|
|
|
|
|
|||||
Period
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
Per Share
|
|
Maximum Number of Shares (or
Approximate Dollar Value) that
May Yet Be Purchased Under
the Plans or Programs
|
|||||
October 1, 2017 to October 31, 2017
|
702,100
|
|
|
$
|
13.88
|
|
|
$
|
175,036,965
|
|
November 1, 2017 to November 30, 2017
|
5,349,756
|
|
|
13.58
|
|
|
102,298,891
|
|
||
December 1, 2017 to December 31, 2017
|
3,732,985
|
|
|
14.62
|
|
|
47,659,625
|
|
||
Total
|
9,784,841
|
|
|
$
|
14.00
|
|
|
$
|
47,659,625
|
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the "Significant Items" in the Discussion of Results of Operations for additional discussion regarding these key factors.
|
(2)
|
On an FTE basis assuming a 35% tax rate.
|
(3)
|
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax
.
|
(4)
|
Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains. (Non-GAAP)
|
(5)
|
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. (Non-GAAP)
|
(6)
|
Tangible equity (total 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
.
|
(7)
|
Tier 1 common equity, tangible equity, tangible common equity, and tangible assets are non-GAAP financial measures. Additionally, any ratios utilizing these financial measures are also non-GAAP. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. Other companies may calculate these financial measures differently.
|
(8)
|
In accordance with applicable regulatory reporting guidance, we are not required to retrospectively update historical filings for newly adopted accounting principles. Therefore, regulatory capital data, tier 1 capital, tier 1 common equity, and risk-weighted assets have not been updated for the adoption of ASU 2014-01.
|
N.A.
|
On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule.
|
Table 2 - Selected Annual Income Statements (1)
|
|||||||||||||||||||||||||
(dollar amounts in millions, except per share amounts)
|
|||||||||||||||||||||||||
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
|
|
Change from 2016
|
|
|
|
Change from 2015
|
|
|
||||||||||||||||
|
2017
|
|
Amount
|
|
Percent
|
|
2016
|
|
Amount
|
|
Percent
|
|
2015
|
||||||||||||
Interest income
|
$
|
3,433
|
|
|
$
|
801
|
|
|
30
|
%
|
|
$
|
2,632
|
|
|
$
|
517
|
|
|
24
|
%
|
|
$
|
2,115
|
|
Interest expense
|
431
|
|
|
168
|
|
|
64
|
|
|
263
|
|
|
99
|
|
|
60
|
|
|
164
|
|
|||||
Net interest income
|
3,002
|
|
|
633
|
|
|
27
|
|
|
2,369
|
|
|
418
|
|
|
21
|
|
|
1,951
|
|
|||||
Provision for credit losses
|
201
|
|
|
10
|
|
|
5
|
|
|
191
|
|
|
91
|
|
|
91
|
|
|
100
|
|
|||||
Net interest income after provision for credit losses
|
2,801
|
|
|
623
|
|
|
29
|
|
|
2,178
|
|
|
327
|
|
|
18
|
|
|
1,851
|
|
|||||
Service charges on deposit accounts
|
353
|
|
|
29
|
|
|
9
|
|
|
324
|
|
|
44
|
|
|
16
|
|
|
280
|
|
|||||
Cards and payment processing income
|
206
|
|
|
37
|
|
|
22
|
|
|
169
|
|
|
26
|
|
|
18
|
|
|
143
|
|
|||||
Trust and investment management services
|
156
|
|
|
33
|
|
|
27
|
|
|
123
|
|
|
7
|
|
|
6
|
|
|
116
|
|
|||||
Mortgage banking income
|
131
|
|
|
3
|
|
|
2
|
|
|
128
|
|
|
16
|
|
|
14
|
|
|
112
|
|
|||||
Insurance income
|
81
|
|
|
(3
|
)
|
|
(4
|
)
|
|
84
|
|
|
3
|
|
|
4
|
|
|
81
|
|
|||||
Capital markets fees
|
76
|
|
|
16
|
|
|
27
|
|
|
60
|
|
|
6
|
|
|
11
|
|
|
54
|
|
|||||
Bank owned life insurance income
|
67
|
|
|
9
|
|
|
16
|
|
|
58
|
|
|
6
|
|
|
12
|
|
|
52
|
|
|||||
Gain on sale of loans
|
56
|
|
|
9
|
|
|
19
|
|
|
47
|
|
|
14
|
|
|
42
|
|
|
33
|
|
|||||
Securities gains (losses)
|
(4
|
)
|
|
(4
|
)
|
|
(100
|
)
|
|
—
|
|
|
(1
|
)
|
|
(100
|
)
|
|
1
|
|
|||||
Other income
|
185
|
|
|
28
|
|
|
18
|
|
|
157
|
|
|
(10
|
)
|
|
(6
|
)
|
|
167
|
|
|||||
Total noninterest income
|
1,307
|
|
|
157
|
|
|
14
|
|
|
1,150
|
|
|
111
|
|
|
11
|
|
|
1,039
|
|
|||||
Personnel costs
|
1,524
|
|
|
175
|
|
|
13
|
|
|
1,349
|
|
|
227
|
|
|
20
|
|
|
1,122
|
|
|||||
Outside data processing and other services
|
313
|
|
|
8
|
|
|
3
|
|
|
305
|
|
|
74
|
|
|
32
|
|
|
231
|
|
|||||
Net occupancy
|
212
|
|
|
59
|
|
|
39
|
|
|
153
|
|
|
31
|
|
|
25
|
|
|
122
|
|
|||||
Equipment
|
171
|
|
|
6
|
|
|
4
|
|
|
165
|
|
|
40
|
|
|
32
|
|
|
125
|
|
|||||
Deposit and other insurance expense
|
78
|
|
|
24
|
|
|
44
|
|
|
54
|
|
|
9
|
|
|
20
|
|
|
45
|
|
|||||
Professional services
|
69
|
|
|
(36
|
)
|
|
(34
|
)
|
|
105
|
|
|
55
|
|
|
110
|
|
|
50
|
|
|||||
Marketing
|
60
|
|
|
(3
|
)
|
|
(5
|
)
|
|
63
|
|
|
11
|
|
|
21
|
|
|
52
|
|
|||||
Amortization of intangibles
|
56
|
|
|
26
|
|
|
87
|
|
|
30
|
|
|
2
|
|
|
7
|
|
|
28
|
|
|||||
Other expense
|
231
|
|
|
47
|
|
|
26
|
|
|
184
|
|
|
(17
|
)
|
|
(8
|
)
|
|
201
|
|
|||||
Total noninterest expense
|
2,714
|
|
|
306
|
|
|
13
|
|
|
2,408
|
|
|
432
|
|
|
22
|
|
|
1,976
|
|
|||||
Income before income taxes
|
1,394
|
|
|
474
|
|
|
52
|
|
|
920
|
|
|
6
|
|
|
1
|
|
|
914
|
|
|||||
Provision for income taxes
|
208
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|
(13
|
)
|
|
(6
|
)
|
|
221
|
|
|||||
Net income
|
1,186
|
|
|
474
|
|
|
67
|
|
|
712
|
|
|
19
|
|
|
3
|
|
|
693
|
|
|||||
Dividends on preferred shares
|
76
|
|
|
11
|
|
|
17
|
|
|
65
|
|
|
33
|
|
|
103
|
|
|
32
|
|
|||||
Net income applicable to common shares
|
$
|
1,110
|
|
|
$
|
463
|
|
|
72
|
%
|
|
$
|
647
|
|
|
$
|
(14
|
)
|
|
(2
|
)%
|
|
$
|
661
|
|
Average common shares—basic (000)
|
1,084,686
|
|
|
180,248
|
|
|
20
|
%
|
|
904,438
|
|
|
101,026
|
|
|
13
|
%
|
|
803,412
|
|
|||||
Average common shares—diluted
|
1,136,186
|
|
|
217,396
|
|
|
24
|
|
|
918,790
|
|
|
101,661
|
|
|
12
|
|
|
817,129
|
|
|||||
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income—basic
|
$
|
1.02
|
|
|
$
|
0.30
|
|
|
42
|
%
|
|
$
|
0.72
|
|
|
$
|
(0.10
|
)
|
|
(12
|
)%
|
|
$
|
0.82
|
|
Net income—diluted
|
1.00
|
|
|
0.30
|
|
|
43
|
|
|
0.70
|
|
|
(0.11
|
)
|
|
(14
|
)
|
|
0.81
|
|
|||||
Cash dividends declared
|
0.35
|
|
|
0.06
|
|
|
21
|
|
|
0.29
|
|
|
0.04
|
|
|
16
|
|
|
0.25
|
|
|||||
Revenue—FTE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
3,002
|
|
|
$
|
633
|
|
|
27
|
%
|
|
$
|
2,369
|
|
|
$
|
418
|
|
|
21
|
%
|
|
$
|
1,951
|
|
FTE adjustment
|
50
|
|
|
7
|
|
|
16
|
|
|
43
|
|
|
11
|
|
|
34
|
|
|
32
|
|
|||||
Net interest income
(2)
|
3,052
|
|
|
640
|
|
|
27
|
|
|
2,412
|
|
|
429
|
|
|
22
|
|
|
1,983
|
|
|||||
Noninterest income
|
1,307
|
|
|
157
|
|
|
14
|
|
|
1,150
|
|
|
111
|
|
|
11
|
|
|
1,039
|
|
|||||
Total revenue
(2)
|
$
|
4,359
|
|
|
$
|
797
|
|
|
22
|
%
|
|
$
|
3,562
|
|
|
$
|
540
|
|
|
18
|
%
|
|
$
|
3,022
|
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to “Significant Items” in the Discussion of Results of Operations.
|
(2)
|
On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
|
1.
|
Mergers and Acquisitions.
Significant events relating to mergers and acquisitions, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2017, $154 million of noninterest expense and $2 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.09 per common share in 2017.
|
•
|
During 2016, $282 million of noninterest expense and $1 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.20 per common share in 2016.
|
•
|
During 2015, $9 million of noninterest expense was recorded related to the acquisition of Macquarie Equipment Finance, Inc., which was rebranded Huntington Technology Finance. Also during 2015, $4 million of noninterest expense and $3 million of noninterest income was recorded related to the sale of Huntington Asset Advisors, Inc., Huntington Asset Services, Inc., and Unified Financial Services, Inc. This resulted in a net negative impact of $0.01 per common share in 2015.
|
2.
|
Federal tax reform-related tax benefit.
Significant events relating to federal tax reform-related tax benefits, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2017, $123 million of federal tax reform-related tax benefit was recorded as provision for income taxes. This resulted in a positive impact of $0.11 per common share in 2017.
|
3.
|
Litigation Reserve.
Significant events relating to our litigation reserve, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2016, a $42 million reduction to litigation reserves was recorded as other noninterest expense. This resulted in a positive impact of $0.03 per common share in 2016.
|
•
|
During 2015, $38 million of net additions to litigation reserves were recorded as other noninterest expense. This resulted in a negative impact of $0.03 per common share in 2015.
|
4.
|
Franchise Repositioning Related Expense.
Significant events relating to franchise repositioning, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2015, $8 million of franchise repositioning related expense was recorded as non-interest expense. This resulted in a negative impact of $0.01 per common share in 2015.
|
(1)
|
Based upon the annual average outstanding diluted common shares.
|
(1)
|
The change in interest rates due to both rate and volume has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.
|
(2)
|
Calculated assuming a 35% tax rate.
|
(1)
|
FTE yields are calculated assuming a 35% tax rate.
|
(2)
|
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.
|
(3)
|
Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
|
Table 5 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)
|
||||||||||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest Income / Expense
|
|
Average Rate (2)
|
|||||||||||||||||
Fully-taxable equivalent basis (1)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in banks
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1.56
|
%
|
|
0.44
|
%
|
|
0.10
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading account securities
|
—
|
|
|
—
|
|
|
—
|
|
|
0.18
|
|
|
0.42
|
|
|
1.06
|
|
|||
Available-for-sale and other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable
|
303
|
|
|
222
|
|
|
202
|
|
|
2.43
|
|
|
2.39
|
|
|
2.53
|
|
|||
Tax-exempt
|
118
|
|
|
91
|
|
|
65
|
|
|
3.71
|
|
|
3.35
|
|
|
3.11
|
|
|||
Total available-for-sale and other securities
|
421
|
|
|
313
|
|
|
267
|
|
|
2.69
|
|
|
2.61
|
|
|
2.65
|
|
|||
Held-to-maturity securities—taxable
|
193
|
|
|
138
|
|
|
87
|
|
|
2.38
|
|
|
2.43
|
|
|
2.47
|
|
|||
Total securities
|
614
|
|
|
451
|
|
|
354
|
|
|
2.57
|
|
|
2.54
|
|
|
2.60
|
|
|||
Loans held for sale
|
21
|
|
|
35
|
|
|
24
|
|
|
3.75
|
|
|
3.27
|
|
|
3.64
|
|
|||
Loans and leases: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
1,142
|
|
|
879
|
|
|
700
|
|
|
4.12
|
|
|
3.71
|
|
|
3.55
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
52
|
|
|
40
|
|
|
37
|
|
|
4.36
|
|
|
3.72
|
|
|
3.63
|
|
|||
Commercial
|
240
|
|
|
176
|
|
|
147
|
|
|
4.00
|
|
|
3.57
|
|
|
3.48
|
|
|||
Commercial real estate
|
292
|
|
|
216
|
|
|
184
|
|
|
4.06
|
|
|
3.60
|
|
|
3.51
|
|
|||
Total commercial
|
1,434
|
|
|
1,095
|
|
|
884
|
|
|
4.11
|
|
|
3.69
|
|
|
3.54
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Automobile loans and leases
|
412
|
|
|
351
|
|
|
282
|
|
|
3.58
|
|
|
3.32
|
|
|
3.22
|
|
|||
Home equity
|
463
|
|
|
381
|
|
|
340
|
|
|
4.63
|
|
|
4.21
|
|
|
4.01
|
|
|||
Residential mortgage
|
301
|
|
|
244
|
|
|
221
|
|
|
3.65
|
|
|
3.63
|
|
|
3.71
|
|
|||
RV and marine finance
|
118
|
|
|
39
|
|
|
—
|
|
|
5.46
|
|
|
5.67
|
|
|
—
|
|
|||
Other consumer
|
118
|
|
|
79
|
|
|
42
|
|
|
11.53
|
|
|
10.62
|
|
|
8.71
|
|
|||
Total consumer
|
1,412
|
|
|
1,094
|
|
|
885
|
|
|
4.28
|
|
|
3.94
|
|
|
3.74
|
|
|||
Total loans and leases
|
2,846
|
|
|
2,189
|
|
|
1,769
|
|
|
4.19
|
|
|
3.81
|
|
|
3.64
|
|
|||
Total earning assets
|
$
|
3,483
|
|
|
$
|
2,675
|
|
|
$
|
2,147
|
|
|
3.77
|
%
|
|
3.50
|
%
|
|
3.41
|
%
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits—noninterest-bearing
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Demand deposits—interest-bearing
|
38
|
|
|
11
|
|
|
4
|
|
|
0.21
|
|
|
0.10
|
|
|
0.07
|
|
|||
Total demand deposits
|
38
|
|
|
11
|
|
|
4
|
|
|
0.10
|
|
|
0.04
|
|
|
0.02
|
|
|||
Money market deposits
|
66
|
|
|
46
|
|
|
43
|
|
|
0.33
|
|
|
0.24
|
|
|
0.22
|
|
|||
Savings and other domestic deposits
|
24
|
|
|
15
|
|
|
7
|
|
|
0.21
|
|
|
0.19
|
|
|
0.14
|
|
|||
Core certificates of deposit
|
13
|
|
|
13
|
|
|
21
|
|
|
0.60
|
|
|
0.56
|
|
|
0.79
|
|
|||
Total core deposits
|
141
|
|
|
85
|
|
|
75
|
|
|
0.27
|
|
|
0.21
|
|
|
0.22
|
|
|||
Other domestic time deposits of $250,000 or more
|
2
|
|
|
2
|
|
|
1
|
|
|
0.52
|
|
|
0.40
|
|
|
0.42
|
|
|||
Brokered time deposits and negotiable CDs
|
37
|
|
|
15
|
|
|
5
|
|
|
1.00
|
|
|
0.43
|
|
|
0.17
|
|
|||
Deposits in foreign offices
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
0.13
|
|
|
0.13
|
|
|||
Total deposits
|
180
|
|
|
102
|
|
|
82
|
|
|
0.33
|
|
|
0.23
|
|
|
0.22
|
|
|||
Short-term borrowings
|
25
|
|
|
5
|
|
|
2
|
|
|
0.86
|
|
|
0.34
|
|
|
0.12
|
|
|||
Long-term debt
|
226
|
|
|
156
|
|
|
80
|
|
|
2.56
|
|
|
1.93
|
|
|
1.43
|
|
|||
Total interest-bearing liabilities
|
431
|
|
|
263
|
|
|
164
|
|
|
0.64
|
|
|
0.48
|
|
|
0.37
|
|
|||
Net interest income
|
$
|
3,052
|
|
|
$
|
2,412
|
|
|
$
|
1,983
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest rate spread
|
|
|
|
|
|
|
3.13
|
|
|
3.02
|
|
|
3.04
|
|
||||||
Impact of noninterest-bearing funds on margin
|
|
|
|
|
|
|
0.17
|
|
|
0.14
|
|
|
0.11
|
|
||||||
Net interest margin
|
|
|
|
|
|
|
3.30
|
%
|
|
3.16
|
%
|
|
3.15
|
%
|
(1)
|
FTE yields are calculated assuming a 35% tax rate.
|
(2)
|
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.
|
(3)
|
Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
|
Table 6 - Noninterest Income
|
|||||||||||||||||||||||||
|
Year Ended December 31,
|
||||||||||||||||||||||||
(dollar amounts in millions)
|
|
|
Change from 2016
|
|
|
|
Change from 2015
|
|
|
||||||||||||||||
|
2017
|
|
Amount
|
|
Percent
|
|
2016
|
|
Amount
|
|
Percent
|
|
2015
|
||||||||||||
Service charges on deposit accounts
|
$
|
353
|
|
|
$
|
29
|
|
|
9
|
%
|
|
$
|
324
|
|
|
$
|
44
|
|
|
16
|
%
|
|
$
|
280
|
|
Cards and payment processing income
|
206
|
|
|
37
|
|
|
22
|
|
|
169
|
|
|
26
|
|
|
18
|
|
|
143
|
|
|||||
Trust and investment management services
|
156
|
|
|
33
|
|
|
27
|
|
|
123
|
|
|
7
|
|
|
6
|
|
|
116
|
|
|||||
Mortgage banking income
|
131
|
|
|
3
|
|
|
2
|
|
|
128
|
|
|
16
|
|
|
14
|
|
|
112
|
|
|||||
Insurance income
|
81
|
|
|
(3
|
)
|
|
(4
|
)
|
|
84
|
|
|
3
|
|
|
4
|
|
|
81
|
|
|||||
Capital markets fees
|
76
|
|
|
16
|
|
|
27
|
|
|
60
|
|
|
6
|
|
|
11
|
|
|
54
|
|
|||||
Bank owned life insurance income
|
67
|
|
|
9
|
|
|
16
|
|
|
58
|
|
|
6
|
|
|
12
|
|
|
52
|
|
|||||
Gain on sale of loans
|
56
|
|
|
9
|
|
|
19
|
|
|
47
|
|
|
14
|
|
|
42
|
|
|
33
|
|
|||||
Securities gains (losses)
|
(4
|
)
|
|
(4
|
)
|
|
(100
|
)
|
|
—
|
|
|
(1
|
)
|
|
(100
|
)
|
|
1
|
|
|||||
Other income
|
185
|
|
|
28
|
|
|
18
|
|
|
157
|
|
|
(10
|
)
|
|
(6
|
)
|
|
167
|
|
|||||
Total noninterest income
|
$
|
1,307
|
|
|
$
|
157
|
|
|
14
|
%
|
|
$
|
1,150
|
|
|
$
|
111
|
|
|
11
|
%
|
|
$
|
1,039
|
|
Impact of Significant Items:
|
|
|
|
|
|
||||||
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Personnel costs
|
$
|
42
|
|
|
$
|
76
|
|
|
$
|
5
|
|
Outside data processing and other services
|
24
|
|
|
46
|
|
|
4
|
|
|||
Net occupancy
|
52
|
|
|
15
|
|
|
5
|
|
|||
Equipment
|
16
|
|
|
25
|
|
|
—
|
|
|||
Professional services
|
10
|
|
|
58
|
|
|
5
|
|
|||
Marketing
|
1
|
|
|
5
|
|
|
—
|
|
|||
Other expense
|
9
|
|
|
14
|
|
|
39
|
|
|||
Total impact of significant items on noninterest expense
|
$
|
154
|
|
|
$
|
239
|
|
|
$
|
58
|
|
•
|
The
Audit Committee
oversees the integrity of the consolidated financial statements, including policies, procedures, and practices regarding the preparation of financial statements, the financial reporting process, disclosures, and internal control over financial reporting. The Audit Committee also provides assistance to the board in overseeing the internal audit division and the independent registered public accounting firm’s qualifications and independence; compliance with our Financial Code of Ethics for the chief executive officer and senior financial officers; and compliance with corporate securities trading policies.
|
•
|
The
Risk Oversight Committee (ROC)
assists the board of directors in overseeing management of material risks, the approval and monitoring of the Company’s capital position and plan supporting our overall aggregate moderate-to-low risk profile, the risk governance structure, compliance with applicable laws and regulations, and determining adherence to the board’s stated risk appetite. The committee has oversight responsibility with respect to the full range of inherent risks: market, credit, liquidity, legal, compliance/regulatory, operational, strategic, and reputational. This committee also oversees our capital management and planning process, ensures that the amount and quality of capital are adequate in relation to expected and unexpected risks, and that our capital levels exceed “well-capitalized” requirements.
|
•
|
The
Technology Committee
assists the board of directors in fulfilling its oversight responsibilities with respect to all technology, cyber security, and third-party risk management strategies and plans. The committee is charged with evaluating Huntington’s capability to properly perform all technology functions necessary for its business plan, including projected growth, technology capacity, planning, operational execution, product development, and management capacity. The committee provides oversight of technology investments and plans to drive efficiency as well as to meet defined standards for risk, information security, and redundancy. The Committee oversees the allocation of technology costs and ensures that they are understood by the board of directors. The Technology Committee monitors and evaluates innovation and technology trends that may affect the Company’s strategic plans, including monitoring of overall industry trends. The Technology Committee reviews and provides oversight of the Company’s continuity and disaster recovery planning and preparedness.
|
Table 9 - Loan and Lease Portfolio by Industry Type
|
|
|
|
|
|
|
|
||||||
(dollar amounts in millions)
|
December 31,
2017 |
|
December 31,
2016 |
||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
||||||
Real estate and rental and leasing
|
$
|
7,378
|
|
|
11
|
%
|
|
$
|
7,545
|
|
|
11
|
%
|
Retail trade (1)
|
4,886
|
|
|
7
|
|
|
4,758
|
|
|
7
|
|
||
Manufacturing
|
4,791
|
|
|
7
|
|
|
4,937
|
|
|
7
|
|
||
Finance and insurance
|
3,044
|
|
|
4
|
|
|
2,010
|
|
|
3
|
|
||
Health care and social assistance
|
2,664
|
|
|
4
|
|
|
2,729
|
|
|
4
|
|
||
Wholesale trade
|
2,291
|
|
|
3
|
|
|
2,071
|
|
|
3
|
|
||
Accommodation and food services
|
1,617
|
|
|
2
|
|
|
1,678
|
|
|
3
|
|
||
Other services
|
1,296
|
|
|
2
|
|
|
1,223
|
|
|
2
|
|
||
Professional, scientific, and technical services
|
1,257
|
|
|
2
|
|
|
1,264
|
|
|
2
|
|
||
Transportation and warehousing
|
1,243
|
|
|
2
|
|
|
1,366
|
|
|
2
|
|
||
Construction
|
976
|
|
|
1
|
|
|
875
|
|
|
1
|
|
||
Mining, quarrying, and oil and gas extraction
|
694
|
|
|
1
|
|
|
668
|
|
|
1
|
|
||
Arts, entertainment, and recreation
|
593
|
|
|
1
|
|
|
556
|
|
|
1
|
|
||
Admin./Support/Waste Mgmt. and Remediation Services
|
561
|
|
|
1
|
|
|
429
|
|
|
1
|
|
||
Educational services
|
504
|
|
|
1
|
|
|
501
|
|
|
1
|
|
||
Information
|
467
|
|
|
1
|
|
|
473
|
|
|
1
|
|
||
Utilities
|
389
|
|
|
1
|
|
|
470
|
|
|
1
|
|
||
Public administration
|
255
|
|
|
—
|
|
|
272
|
|
|
—
|
|
||
Agriculture, forestry, fishing and hunting
|
172
|
|
|
—
|
|
|
151
|
|
|
—
|
|
||
Unclassified/Other
|
163
|
|
|
—
|
|
|
1,288
|
|
|
2
|
|
||
Management of companies and enterprises
|
91
|
|
|
—
|
|
|
96
|
|
|
—
|
|
||
Total commercial loans and leases by industry category
|
35,332
|
|
|
51
|
%
|
|
35,360
|
|
|
53
|
%
|
||
Automobile
|
12,100
|
|
|
17
|
|
|
10,969
|
|
|
16
|
|
||
Home Equity
|
10,099
|
|
|
14
|
|
|
10,106
|
|
|
15
|
|
||
Residential mortgage
|
9,026
|
|
|
13
|
|
|
7,725
|
|
|
12
|
|
||
RV and marine finance
|
2,438
|
|
|
3
|
|
|
1,846
|
|
|
3
|
|
||
Other consumer loans
|
1,122
|
|
|
2
|
|
|
956
|
|
|
1
|
|
||
Total loans and leases
|
$
|
70,117
|
|
|
100
|
%
|
|
$
|
66,962
|
|
|
100
|
%
|
(1)
|
Amounts include $3.2 billion of auto dealer services loans at both
December 31, 2017
and
December 31, 2016
.
|
(1)
|
Other nonperforming assets represent an investment security backed by a municipal bond for all periods presented.
|
(2)
|
Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
|
(1)
|
Amounts include Huntington Technology Finance administrative lease delinquencies and accruing purchase impaired loans related to acquisitions.
|
(2)
|
Amounts include accruing purchase impaired loans related to acquisitions.
|
(1)
|
Percentages represent the percentage of each loan and lease category to total loans and leases.
|
Table 15 - Net Loan and Lease Charge-offs
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollar amounts in millions)
|
Year Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Net charge-offs by loan and lease type:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
42
|
|
|
$
|
45
|
|
|
$
|
28
|
|
|
$
|
32
|
|
|
$
|
16
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
(5
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
2
|
|
|
7
|
|
|||||
Commercial
|
(6
|
)
|
|
(24
|
)
|
|
(15
|
)
|
|
(11
|
)
|
|
19
|
|
|||||
Commercial real estate
|
(11
|
)
|
|
(26
|
)
|
|
(16
|
)
|
|
(9
|
)
|
|
26
|
|
|||||
Total commercial
|
31
|
|
|
19
|
|
|
12
|
|
|
23
|
|
|
42
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
42
|
|
|
32
|
|
|
20
|
|
|
17
|
|
|
11
|
|
|||||
Home equity
|
5
|
|
|
9
|
|
|
20
|
|
|
37
|
|
|
82
|
|
|||||
Residential mortgage
|
6
|
|
|
6
|
|
|
10
|
|
|
20
|
|
|
27
|
|
|||||
RV and marine finance
|
10
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
65
|
|
|
41
|
|
|
26
|
|
|
28
|
|
|
27
|
|
|||||
Total consumer
|
128
|
|
|
90
|
|
|
76
|
|
|
102
|
|
|
147
|
|
|||||
Total net charge-offs
|
$
|
159
|
|
|
$
|
109
|
|
|
$
|
88
|
|
|
$
|
125
|
|
|
$
|
189
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs - annualized percentages:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
0.15
|
%
|
|
0.19
|
%
|
|
0.14
|
%
|
|
0.18
|
%
|
|
0.10
|
%
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
(0.36
|
)
|
|
(0.19
|
)
|
|
(0.08
|
)
|
|
0.16
|
|
|
1.10
|
|
|||||
Commercial
|
(0.10
|
)
|
|
(0.49
|
)
|
|
(0.37
|
)
|
|
(0.25
|
)
|
|
0.42
|
|
|||||
Commercial real estate
|
(0.15
|
)
|
|
(0.44
|
)
|
|
(0.32
|
)
|
|
(0.19
|
)
|
|
0.49
|
|
|||||
Total commercial
|
0.09
|
|
|
0.06
|
|
|
0.05
|
|
|
0.10
|
|
|
0.19
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
0.36
|
|
|
0.30
|
|
|
0.23
|
|
|
0.23
|
|
|
0.19
|
|
|||||
Home equity
|
0.05
|
|
|
0.10
|
|
|
0.23
|
|
|
0.44
|
|
|
0.99
|
|
|||||
Residential mortgage
|
0.08
|
|
|
0.09
|
|
|
0.17
|
|
|
0.35
|
|
|
0.52
|
|
|||||
RV and marine finance
|
0.48
|
|
|
0.33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
6.36
|
|
|
5.53
|
|
|
5.44
|
|
|
6.99
|
|
|
6.30
|
|
|||||
Total consumer
|
0.39
|
|
|
0.32
|
|
|
0.32
|
|
|
0.46
|
|
|
0.75
|
|
|||||
Net charge-offs as a % of average loans
|
0.23
|
%
|
|
0.19
|
%
|
|
0.18
|
%
|
|
0.27
|
%
|
|
0.45
|
%
|
Table 18 - Available-for-sale and other securities Portfolio Summary at Fair Value
|
|
|
|
|
|
||||||
(dollar amounts in millions)
|
At December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
U.S. Treasury, Federal agency, and other agency securities
|
$
|
10,413
|
|
|
$
|
10,752
|
|
|
$
|
4,643
|
|
Other
|
5,056
|
|
|
4,811
|
|
|
4,132
|
|
|||
Total available-for-sale and other securities
|
$
|
15,469
|
|
|
$
|
15,563
|
|
|
$
|
8,775
|
|
Duration in years (1)
|
4.9
|
|
|
4.7
|
|
|
5.2
|
|
(1)
|
The average duration assumes a market driven prepayment rate on securities subject to prepayment.
|
Table 19 - Available-for-sale and other securities Portfolio Composition and Maturity
|
|
|
|
|
|
|||||
(dollar amounts in millions)
|
At December 31, 2017
|
|||||||||
|
Amortized
|
|
|
|
|
|||||
|
Cost
|
|
Fair Value
|
|
Yield (1)
|
|||||
U.S. Treasury, Federal agency, and other agency securities:
|
|
|
|
|
|
|||||
U.S. Treasury:
|
|
|
|
|
|
|||||
1 year or less
|
$
|
5
|
|
|
$
|
5
|
|
|
1.69
|
%
|
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
—
|
|
||
After 5 years through 10 years
|
—
|
|
|
—
|
|
|
—
|
|
||
After 10 years
|
—
|
|
|
—
|
|
|
—
|
|
||
Total U.S. Treasury
|
5
|
|
|
5
|
|
|
1.69
|
|
||
Federal agencies:
|
|
|
|
|
|
|||||
Residential CMO
|
|
|
|
|
|
|||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
||
After 1 year through 5 years
|
1
|
|
|
1
|
|
|
2.87
|
|
||
After 5 years through 10 years
|
90
|
|
|
89
|
|
|
2.77
|
|
||
After 10 years
|
6,570
|
|
|
6,394
|
|
|
2.24
|
|
||
Total Residential CMO
|
6,661
|
|
|
6,484
|
|
|
2.25
|
|
||
Residential MBS
|
|
|
|
|
|
|||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
||
After 1 year through 5 years
|
6
|
|
|
6
|
|
|
3.60
|
|
||
After 5 years through 10 years
|
7
|
|
|
8
|
|
|
3.74
|
|
||
After 10 years
|
1,358
|
|
|
1,353
|
|
|
2.84
|
|
||
Residential MBS
|
1,371
|
|
|
1,367
|
|
|
2.84
|
|
||
Commercial MBS:
|
|
|
|
|
|
|||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
||
After 1 year through 5 years
|
23
|
|
|
22
|
|
|
1.92
|
|
||
After 5 years through 10 years
|
151
|
|
|
148
|
|
|
2.46
|
|
||
After 10 years
|
2,365
|
|
|
2,317
|
|
|
2.41
|
|
||
Commercial MBS
|
2,539
|
|
|
2,487
|
|
|
2.41
|
|
||
Other agencies:
|
|
|
|
|
|
|||||
1 year or less
|
2
|
|
|
2
|
|
|
2.83
|
|
||
After 1 year through 5 years
|
9
|
|
|
9
|
|
|
2.73
|
|
||
After 5 years through 10 years
|
58
|
|
|
59
|
|
|
2.58
|
|
||
After 10 years
|
—
|
|
|
—
|
|
|
—
|
|
||
Total other agencies
|
69
|
|
|
70
|
|
|
2.60
|
|
||
Total U.S. Treasury, Federal agency, and other agency securities
|
10,645
|
|
|
10,413
|
|
|
2.36
|
|
||
Municipal securities:
|
|
|
|
|
|
|||||
1 year or less
|
103
|
|
|
103
|
|
|
4.62
|
|
||
After 1 year through 5 years
|
1,140
|
|
|
1,134
|
|
|
3.58
|
|
||
After 5 years through 10 years
|
1,709
|
|
|
1,704
|
|
|
3.85
|
|
||
After 10 years
|
940
|
|
|
937
|
|
|
4.24
|
|
||
Total municipal securities
|
3,892
|
|
|
3,878
|
|
|
3.89
|
|
||
Asset-backed securities:
|
|
|
|
|
|
|||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
||
After 1 year through 5 years
|
80
|
|
|
80
|
|
|
2.55
|
|
||
After 5 years through 10 years
|
53
|
|
|
54
|
|
|
3.78
|
|
||
After 10 years
|
349
|
|
|
333
|
|
|
2.93
|
|
||
Total asset-backed securities
|
482
|
|
|
467
|
|
|
2.96
|
|
||
Corporate debt:
|
|
|
|
|
|
|||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
||
After 1 year through 5 years
|
73
|
|
|
74
|
|
|
3.59
|
|
||
After 5 years through 10 years
|
20
|
|
|
21
|
|
|
3.42
|
|
||
After 10 years
|
13
|
|
|
14
|
|
|
3.39
|
|
||
Total corporate debt
|
106
|
|
|
109
|
|
|
3.53
|
|
||
Other:
|
|
|
|
|
|
|||||
1 year or less
|
1
|
|
|
1
|
|
|
2.62
|
|
||
After 1 year through 5 years
|
1
|
|
|
1
|
|
|
3.01
|
|
||
After 5 years through 10 years
|
—
|
|
|
—
|
|
|
N/A
|
|
||
After 10 years
|
—
|
|
|
—
|
|
|
N/A
|
|
||
Non-marketable equity securities (2)
|
581
|
|
|
581
|
|
|
3.69
|
|
||
Mutual funds
|
18
|
|
|
18
|
|
|
N/A
|
|
||
Marketable equity securities (3)
|
1
|
|
|
1
|
|
|
N/A
|
|
||
Total other
|
602
|
|
|
602
|
|
|
3.57
|
|
||
Total available-for-sale and other securities
|
$
|
15,727
|
|
|
$
|
15,469
|
|
|
2.81
|
%
|
(1)
|
Weighted average yields were calculated using amortized cost on a fully-taxable equivalent basis, assuming a 35% tax rate.
|
(2)
|
Consists of FHLB and FRB restricted stock holding carried at par. For
2017
, the Federal Reserve reduced the dividend rate on FRB stock from 6% to 2.41%, the current 10-year Treasury rate for banks with more than $10 billion in assets.
|
(3)
|
Consists of certain mutual fund and equity security holdings.
|
Table 21 - Deposit Composition
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(dollar amounts in millions)
|
At December 31,
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
By Type:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits—noninterest-bearing
|
$
|
21,546
|
|
|
28
|
%
|
|
$
|
22,836
|
|
|
30
|
%
|
|
$
|
16,480
|
|
|
30
|
%
|
Demand deposits—interest-bearing
|
18,001
|
|
|
23
|
|
|
15,676
|
|
|
21
|
|
|
7,682
|
|
|
14
|
|
|||
Money market deposits
|
20,690
|
|
|
27
|
|
|
18,407
|
|
|
24
|
|
|
19,792
|
|
|
36
|
|
|||
Savings and other domestic deposits
|
11,270
|
|
|
15
|
|
|
11,975
|
|
|
16
|
|
|
5,246
|
|
|
9
|
|
|||
Core certificates of deposit
|
1,934
|
|
|
3
|
|
|
2,535
|
|
|
3
|
|
|
2,382
|
|
|
4
|
|
|||
Total core deposits:
|
73,441
|
|
|
96
|
|
|
71,429
|
|
|
94
|
|
|
51,582
|
|
|
93
|
|
|||
Other domestic deposits of $250,000 or more
|
239
|
|
|
—
|
|
|
395
|
|
|
1
|
|
|
501
|
|
|
1
|
|
|||
Brokered deposits and negotiable CDs
|
3,361
|
|
|
4
|
|
|
3,784
|
|
|
5
|
|
|
2,944
|
|
|
5
|
|
|||
Deposits in foreign offices
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
268
|
|
|
1
|
|
|||
Total deposits
|
$
|
77,041
|
|
|
100
|
%
|
|
$
|
75,608
|
|
|
100
|
%
|
|
$
|
55,295
|
|
|
100
|
%
|
Total core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
$
|
34,273
|
|
|
47
|
%
|
|
$
|
31,887
|
|
|
45
|
%
|
|
$
|
24,474
|
|
|
47
|
%
|
Consumer
|
39,168
|
|
|
53
|
|
|
39,542
|
|
|
55
|
|
|
27,108
|
|
|
53
|
|
|||
Total core deposits
|
$
|
73,441
|
|
|
100
|
%
|
|
$
|
71,429
|
|
|
100
|
%
|
|
$
|
51,582
|
|
|
100
|
%
|
Table 22 - Maturity Schedule of Commercial Loans
|
||||||||||||||||||
(dollar amounts in millions)
|
At December 31, 2017
|
|||||||||||||||||
|
One Year
or Less |
|
One to
Five Years |
|
After
Five Years |
|
Total
|
|
Percent
of total |
|||||||||
Commercial and industrial
|
$
|
7,334
|
|
|
$
|
15,829
|
|
|
$
|
4,944
|
|
|
$
|
28,107
|
|
|
80
|
%
|
Commercial real estate—construction
|
500
|
|
|
682
|
|
|
35
|
|
|
1,217
|
|
|
3
|
|
||||
Commercial real estate—commercial
|
1,407
|
|
|
3,693
|
|
|
908
|
|
|
6,008
|
|
|
17
|
|
||||
Total
|
$
|
9,241
|
|
|
$
|
20,204
|
|
|
$
|
5,887
|
|
|
$
|
35,332
|
|
|
100
|
%
|
Variable-interest rates
|
$
|
8,013
|
|
|
$
|
16,452
|
|
|
$
|
3,186
|
|
|
$
|
27,651
|
|
|
78
|
%
|
Fixed-interest rates
|
1,228
|
|
|
3,752
|
|
|
2,701
|
|
|
7,681
|
|
|
22
|
|
||||
Total
|
$
|
9,241
|
|
|
$
|
20,204
|
|
|
$
|
5,887
|
|
|
$
|
35,332
|
|
|
100
|
%
|
Percent of total
|
26
|
%
|
|
57
|
%
|
|
17
|
%
|
|
100
|
%
|
|
|
Table 23 - Contractual Obligations (1)
|
|||||||||||||||||||
(dollar amounts in millions)
|
At December 31, 2017
|
||||||||||||||||||
|
One Year
or Less
|
|
1 to 3
Years
|
|
3 to 5
Years
|
|
More than
5 Years
|
|
Total
|
||||||||||
Deposits without a stated maturity
|
$
|
70,554
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,554
|
|
Certificates of deposit and other time deposits
|
4,016
|
|
|
1,314
|
|
|
962
|
|
|
195
|
|
|
6,487
|
|
|||||
Short-term borrowings
|
5,056
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,056
|
|
|||||
Long-term debt
|
2,688
|
|
|
3,016
|
|
|
2,798
|
|
|
833
|
|
|
9,335
|
|
|||||
Operating lease obligations
|
59
|
|
|
108
|
|
|
72
|
|
|
135
|
|
|
374
|
|
|||||
Purchase commitments
|
90
|
|
|
92
|
|
|
25
|
|
|
19
|
|
|
226
|
|
(1)
|
Amounts do not include associated interest payments.
|
Table 24 - Capital Under Current Regulatory Standards (transitional Basel III basis) (Non-GAAP)
|
||||||||
(dollar amounts in millions, except per share amounts)
|
|
At December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
CET 1 risk-based capital ratio:
|
|
|
|
|
||||
Total shareholders’ equity
|
|
$
|
10,814
|
|
|
$
|
10,308
|
|
Regulatory capital adjustments:
|
|
|
|
|
||||
Shareholders’ preferred equity and related surplus
|
|
(1,076
|
)
|
|
(1,076
|
)
|
||
Accumulated other comprehensive loss (income) offset
|
|
528
|
|
|
401
|
|
||
Goodwill and other intangibles, net of taxes
|
|
(2,200
|
)
|
|
(2,126
|
)
|
||
Deferred tax assets that arise from tax loss and credit carryforwards
|
|
(25
|
)
|
|
(21
|
)
|
||
CET 1 capital
|
|
8,041
|
|
|
7,486
|
|
||
Additional tier 1 capital
|
|
|
|
|
||||
Shareholders’ preferred equity
|
|
1,076
|
|
|
1,076
|
|
||
Other
|
|
(7
|
)
|
|
(15
|
)
|
||
Tier 1 capital
|
|
9,110
|
|
|
8,547
|
|
||
LTD and other tier 2 qualifying instruments
|
|
869
|
|
|
932
|
|
||
Qualifying allowance for loan and lease losses
|
|
778
|
|
|
736
|
|
||
Tier 2 capital
|
|
1,647
|
|
|
1,668
|
|
||
Total risk-based capital
|
|
$
|
10,757
|
|
|
$
|
10,215
|
|
Risk-weighted assets (RWA)
|
|
$
|
80,340
|
|
|
$
|
78,263
|
|
CET 1 risk-based capital ratio
|
|
10.01
|
%
|
|
9.56
|
%
|
||
Other regulatory capital data:
|
|
|
|
|
||||
Tier 1 leverage ratio
|
|
9.09
|
|
|
8.70
|
|
||
Tier 1 risk-based capital ratio
|
|
11.34
|
|
|
10.92
|
|
||
Total risk-based capital ratio
|
|
13.39
|
|
|
13.05
|
|
||
Tangible common equity / RWA ratio
|
|
9.31
|
|
|
8.92
|
|
(1)
|
Other intangible assets are net of deferred tax liability.
|
Table 26 - Regulatory Capital Data
|
|
|
|
|
||||
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
|
Basel III
|
||||||
|
|
2017
|
|
2016
|
||||
Total risk-weighted assets
|
Consolidated
|
$
|
80,340
|
|
|
$
|
78,263
|
|
|
Bank
|
80,383
|
|
|
78,242
|
|
||
CET 1 risk-based capital
|
Consolidated
|
8,041
|
|
|
7,486
|
|
||
|
Bank
|
8,856
|
|
|
8,153
|
|
||
Tier 1 risk-based capital
|
Consolidated
|
9,110
|
|
|
8,547
|
|
||
|
Bank
|
9,727
|
|
|
9,086
|
|
||
Tier 2 risk-based capital
|
Consolidated
|
1,647
|
|
|
1,668
|
|
||
|
Bank
|
1,790
|
|
|
1,732
|
|
||
Total risk-based capital
|
Consolidated
|
10,757
|
|
|
10,215
|
|
||
|
Bank
|
11,517
|
|
|
10,818
|
|
||
Tier 1 leverage ratio
|
Consolidated
|
9.09
|
%
|
|
8.70
|
%
|
||
|
Bank
|
9.70
|
|
|
9.29
|
|
||
CET 1 risk-based capital ratio
|
Consolidated
|
10.01
|
|
|
9.56
|
|
||
|
Bank
|
11.02
|
|
|
10.42
|
|
||
Tier 1 risk-based capital ratio
|
Consolidated
|
11.34
|
|
|
10.92
|
|
||
|
Bank
|
12.10
|
|
|
11.61
|
|
||
Total risk-based capital ratio
|
Consolidated
|
13.39
|
|
|
13.05
|
|
||
|
Bank
|
14.33
|
|
|
13.83
|
|
Vehicle Finance
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Table 30 - Key Performance Indicators for Vehicle Finance
|
||||||||||||||||||
|
Year Ended December 31,
|
|
Change from 2016
|
|
|
|||||||||||||
(dollar amounts in millions unless otherwise noted)
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|
2015
|
|||||||||
Net interest income
|
$
|
424
|
|
|
$
|
345
|
|
|
$
|
79
|
|
|
23
|
%
|
|
$
|
262
|
|
Provision (reduction in allowance) for credit losses
|
63
|
|
|
47
|
|
|
16
|
|
|
34
|
|
|
39
|
|
||||
Noninterest income
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Noninterest expense
|
150
|
|
|
118
|
|
|
32
|
|
|
27
|
|
|
93
|
|
||||
Provision for income taxes
|
79
|
|
|
68
|
|
|
11
|
|
|
16
|
|
|
50
|
|
||||
Net income
|
$
|
146
|
|
|
$
|
126
|
|
|
$
|
20
|
|
|
16
|
%
|
|
$
|
93
|
|
Number of employees (average full-time equivalent)
|
253
|
|
|
211
|
|
|
42
|
|
|
20
|
%
|
|
174
|
|
||||
Total average assets
|
$
|
16,966
|
|
|
$
|
14,369
|
|
|
$
|
2,597
|
|
|
18
|
|
|
$
|
11,367
|
|
Total average loans/leases
|
16,936
|
|
|
14,089
|
|
|
2,847
|
|
|
20
|
|
|
11,138
|
|
||||
Total average deposits
|
310
|
|
|
275
|
|
|
35
|
|
|
13
|
|
|
238
|
|
||||
Net interest margin
|
2.50
|
%
|
|
2.40
|
%
|
|
0.10
|
%
|
|
4
|
|
|
2.31
|
%
|
||||
NCOs
|
$
|
52
|
|
|
$
|
34
|
|
|
$
|
18
|
|
|
53
|
|
|
$
|
20
|
|
NCOs as a % of average loans and leases
|
0.31
|
%
|
|
0.24
|
%
|
|
0.07
|
%
|
|
29
|
|
|
0.18
|
%
|
Table 32 - Significant Items Influencing Earnings Performance Comparison
|
|||||||
(dollar amounts in millions, except per share amounts)
|
|
|
|
||||
|
|
|
|
||||
Three Months Ended:
|
Amount
|
|
EPS (1)
|
||||
December 31, 2017—Net income
|
$
|
432
|
|
|
|
||
Earnings per share, after-tax
|
|
|
$
|
0.37
|
|
||
|
|
|
|
||||
Federal tax reform-related tax benefit
|
$
|
—
|
|
|
|
||
Tax impact
|
123
|
|
|
|
|||
Federal tax reform-related tax benefit, after-tax
|
$
|
123
|
|
|
$
|
0.11
|
|
|
|
|
|
||||
|
Amount
|
|
EPS (1)
|
||||
December 31, 2016—Net income
|
$
|
239
|
|
|
|
||
Earnings per share, after-tax
|
|
|
$
|
0.20
|
|
||
|
|
|
|
||||
Mergers and acquisitions
|
$
|
(96
|
)
|
|
|
||
Tax impact
|
33
|
|
|
|
|||
Mergers and acquisitions, after-tax
|
$
|
(63
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
||||
Litigation reserves
|
$
|
42
|
|
|
|
||
Tax impact
|
(15
|
)
|
|
|
|||
Litigation reserves, after-tax
|
$
|
27
|
|
|
$
|
0.02
|
|
(1)
|
Based on average outstanding diluted common shares.
|
Noninterest Expense
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Table 36 - Noninterest Expense - 2017 Fourth Quarter vs. 2016 Fourth Quarter
|
||||||||||||||
|
Fourth Quarter
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Personnel costs
|
$
|
373
|
|
|
$
|
360
|
|
|
$
|
13
|
|
|
4
|
%
|
Outside data processing and other services
|
71
|
|
|
89
|
|
|
(18
|
)
|
|
(20
|
)
|
|||
Net occupancy
|
36
|
|
|
49
|
|
|
(13
|
)
|
|
(27
|
)
|
|||
Equipment
|
36
|
|
|
60
|
|
|
(24
|
)
|
|
(40
|
)
|
|||
Deposit and other insurance expense
|
19
|
|
|
16
|
|
|
3
|
|
|
19
|
|
|||
Professional services
|
18
|
|
|
23
|
|
|
(5
|
)
|
|
(22
|
)
|
|||
Marketing
|
10
|
|
|
21
|
|
|
(11
|
)
|
|
(52
|
)
|
|||
Amortization of intangibles
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|||
Other expense
|
56
|
|
|
49
|
|
|
7
|
|
|
14
|
|
|||
Total noninterest expense
|
$
|
633
|
|
|
$
|
681
|
|
|
$
|
(48
|
)
|
|
(7
|
)%
|
Number of employees (average full-time equivalent)
|
15,375
|
|
|
15,993
|
|
|
(618
|
)
|
|
(4
|
)%
|
Impacts of Significant Items:
|
Fourth Quarter
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Personnel costs
|
$
|
—
|
|
|
$
|
(5
|
)
|
Outside data processing and other services
|
—
|
|
|
15
|
|
||
Net occupancy
|
—
|
|
|
7
|
|
||
Equipment
|
—
|
|
|
20
|
|
||
Professional services
|
—
|
|
|
9
|
|
||
Marketing
|
—
|
|
|
4
|
|
||
Other expense
|
—
|
|
|
3
|
|
||
Total noninterest expense adjustments
|
$
|
—
|
|
|
$
|
53
|
|
Adjusted Noninterest Expense (Non-GAAP):
|
|
|
|
|
|
|
|
|||||||
|
Fourth Quarter
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Personnel costs
|
$
|
373
|
|
|
$
|
365
|
|
|
$
|
8
|
|
|
2
|
%
|
Outside data processing and other services
|
71
|
|
|
74
|
|
|
(3
|
)
|
|
(4
|
)
|
|||
Net occupancy
|
36
|
|
|
42
|
|
|
(6
|
)
|
|
(14
|
)
|
|||
Equipment
|
36
|
|
|
40
|
|
|
(4
|
)
|
|
(10
|
)
|
|||
Deposit and other insurance expense
|
19
|
|
|
16
|
|
|
3
|
|
|
19
|
|
|||
Professional services
|
18
|
|
|
14
|
|
|
4
|
|
|
29
|
|
|||
Marketing
|
10
|
|
|
17
|
|
|
(7
|
)
|
|
(41
|
)
|
|||
Amortization of intangibles
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|||
Other expense
|
56
|
|
|
46
|
|
|
10
|
|
|
22
|
|
|||
Total adjusted noninterest expense (Non-GAAP)
|
$
|
633
|
|
|
$
|
628
|
|
|
$
|
5
|
|
|
1
|
%
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the Significant Items section for additional discussion regarding these items.
|
(2)
|
For all quarterly periods presented prior to December 31, 2017, the impact of the convertible preferred stock issued in April of 2008 was excluded from the diluted share calculation because the result would have been higher than basic earnings per common share (anti-dilutive) for the periods.
|
(3)
|
Other intangible assets are net of deferred tax liability.
|
(4)
|
High and low stock prices are intra-day quotes obtained from Bloomberg.
|
(5)
|
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability
.
|
(6)
|
Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
|
(7)
|
Presented on a FTE basis assuming a 35% tax rate.
|
(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. (Non-GAAP)
|
(9)
|
Tangible equity (total 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
.
|
(10)
|
On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule.
|
Table 39 - Selected Quarterly Financial Information (1)
|
|||||||||||||||
|
Three Months Ended
|
||||||||||||||
(dollar amounts in millions, except per share amounts)
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
2016
|
|
2016
|
|
2016
|
|
2016
|
||||||||
Interest income
|
$
|
815
|
|
|
$
|
694
|
|
|
$
|
566
|
|
|
$
|
557
|
|
Interest expense
|
80
|
|
|
69
|
|
|
60
|
|
|
54
|
|
||||
Net interest income
|
735
|
|
|
625
|
|
|
506
|
|
|
503
|
|
||||
Provision for credit losses
|
75
|
|
|
63
|
|
|
25
|
|
|
28
|
|
||||
Net interest income after provision for credit losses
|
660
|
|
|
562
|
|
|
481
|
|
|
475
|
|
||||
Total noninterest income
|
334
|
|
|
303
|
|
|
271
|
|
|
242
|
|
||||
Total noninterest expense
|
681
|
|
|
713
|
|
|
523
|
|
|
491
|
|
||||
Income before income taxes
|
313
|
|
|
152
|
|
|
229
|
|
|
226
|
|
||||
Provision for income taxes
|
74
|
|
|
25
|
|
|
54
|
|
|
55
|
|
||||
Net income
|
239
|
|
|
127
|
|
|
175
|
|
|
171
|
|
||||
Dividends on preferred shares
|
19
|
|
|
18
|
|
|
20
|
|
|
8
|
|
||||
Net income applicable to common shares
|
$
|
220
|
|
|
$
|
109
|
|
|
$
|
155
|
|
|
$
|
163
|
|
Common shares outstanding (000)
|
|
|
|
|
|
|
|
||||||||
Average—basic
|
1,085,253
|
|
|
938,578
|
|
|
798,167
|
|
|
795,755
|
|
||||
Average—diluted(2)
|
1,104,358
|
|
|
952,081
|
|
|
810,371
|
|
|
808,349
|
|
||||
Ending
|
1,085,688
|
|
|
1,084,783
|
|
|
799,154
|
|
|
796,689
|
|
||||
Book value per share
|
$
|
8.51
|
|
|
$
|
8.59
|
|
|
$
|
8.18
|
|
|
$
|
8.01
|
|
Tangible book value per share(3)
|
6.43
|
|
|
6.48
|
|
|
7.29
|
|
|
7.12
|
|
||||
Per common share
|
|
|
|
|
|
|
|
||||||||
Net income—basic
|
$
|
0.20
|
|
|
$
|
0.12
|
|
|
$
|
0.19
|
|
|
$
|
0.21
|
|
Net income —diluted
|
0.20
|
|
|
0.11
|
|
|
0.19
|
|
|
0.20
|
|
||||
Cash dividends declared
|
0.08
|
|
|
0.07
|
|
|
0.07
|
|
|
0.07
|
|
||||
Common stock price, per share
|
|
|
|
|
|
|
|
||||||||
High(4)
|
$
|
13.64
|
|
|
$
|
10.11
|
|
|
$
|
10.65
|
|
|
$
|
10.81
|
|
Low(4)
|
9.57
|
|
|
8.23
|
|
|
8.05
|
|
|
7.83
|
|
||||
Close
|
13.22
|
|
|
9.86
|
|
|
8.94
|
|
|
9.54
|
|
||||
Average closing price
|
11.63
|
|
|
9.52
|
|
|
9.83
|
|
|
9.22
|
|
||||
Return on average total assets
|
0.95
|
%
|
|
0.58
|
%
|
|
0.96
|
%
|
|
0.96
|
%
|
||||
Return on average common shareholders’ equity
|
9.4
|
|
|
5.4
|
|
|
9.6
|
|
|
10.4
|
|
||||
Return on average tangible common shareholders’ equity(5)
|
12.9
|
|
|
7.0
|
|
|
11.0
|
|
|
11.9
|
|
||||
Efficiency ratio(6)
|
61.6
|
|
|
75.0
|
|
|
66.1
|
|
|
64.6
|
|
||||
Effective tax rate
|
23.6
|
|
|
16.3
|
|
|
23.7
|
|
|
24.3
|
|
||||
Margin analysis-as a % of average earning assets(7)
|
|
|
|
|
|
|
|
||||||||
Interest income(7)
|
3.60
|
%
|
|
3.52
|
%
|
|
3.41
|
%
|
|
3.44
|
%
|
||||
Interest expense
|
0.35
|
|
|
0.34
|
|
|
0.35
|
|
|
0.33
|
|
||||
Net interest margin(7)
|
3.25
|
%
|
|
3.18
|
%
|
|
3.06
|
%
|
|
3.11
|
%
|
||||
Revenue—FTE
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
735
|
|
|
$
|
625
|
|
|
$
|
506
|
|
|
$
|
503
|
|
FTE adjustment
|
13
|
|
|
11
|
|
|
10
|
|
|
9
|
|
||||
Net interest income(7)
|
748
|
|
|
636
|
|
|
516
|
|
|
512
|
|
||||
Noninterest income
|
334
|
|
|
302
|
|
|
271
|
|
|
242
|
|
||||
Total revenue(7)
|
$
|
1,082
|
|
|
$
|
938
|
|
|
$
|
787
|
|
|
$
|
754
|
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the Significant Items section for additional discussion regarding these items.
|
(2)
|
For all quarterly periods presented prior to December 31, 2017, the impact of the convertible preferred stock issued in April of 2008 was excluded from the diluted share calculation because the result would have been higher than basic earnings per common share (anti-dilutive) for the periods.
|
(3)
|
Other intangible assets are net of deferred tax.
|
(4)
|
High and low stock prices are intra-day quotes obtained from Bloomberg.
|
(5)
|
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax
.
|
(6)
|
Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
|
(7)
|
Presented on a FTE basis assuming a 35% tax rate.
|
(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. (Non-GAAP)
|
(9)
|
Tangible equity (total 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
.
|
(10)
|
On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule.
|
•
|
Tangible common equity to tangible assets, and
|
•
|
Tangible common equity to risk-weighted assets using Basel III definitions.
|
|
December 31,
|
||||||
(dollar amounts in millions, except per share amounts)
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,520
|
|
|
$
|
1,385
|
|
Interest-bearing deposits in banks
|
47
|
|
|
58
|
|
||
Trading account securities
|
86
|
|
|
133
|
|
||
Available-for-sale and other securities
|
15,469
|
|
|
15,563
|
|
||
Held-to-maturity securities
|
9,091
|
|
|
7,807
|
|
||
Loans held for sale (includes $413 and $438 respectively, measured at fair value)(1)
|
488
|
|
|
513
|
|
||
Loans and leases (includes $93 and $82 respectively, measured at fair value)(1)
|
70,117
|
|
|
66,962
|
|
||
Allowance for loan and lease losses
|
(691
|
)
|
|
(638
|
)
|
||
Net loans and leases
|
69,426
|
|
|
66,324
|
|
||
Bank owned life insurance
|
2,466
|
|
|
2,432
|
|
||
Premises and equipment
|
864
|
|
|
816
|
|
||
Goodwill
|
1,993
|
|
|
1,993
|
|
||
Other intangible assets
|
346
|
|
|
402
|
|
||
Servicing rights
|
238
|
|
|
226
|
|
||
Accrued income and other assets
|
2,151
|
|
|
2,062
|
|
||
Total assets
|
$
|
104,185
|
|
|
$
|
99,714
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits in domestic offices
|
|
|
|
||||
Demand deposits—noninterest-bearing
|
$
|
21,546
|
|
|
$
|
22,836
|
|
Interest-bearing
|
55,495
|
|
|
52,772
|
|
||
Deposits
|
77,041
|
|
|
75,608
|
|
||
Short-term borrowings
|
5,056
|
|
|
3,693
|
|
||
Long-term debt
|
9,206
|
|
|
8,309
|
|
||
Accrued expenses and other liabilities
|
2,068
|
|
|
1,796
|
|
||
Total liabilities
|
93,371
|
|
|
89,406
|
|
||
Commitments and contingencies (Note 21)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock
|
1,071
|
|
|
1,071
|
|
||
Common stock
|
11
|
|
|
11
|
|
||
Capital surplus
|
9,707
|
|
|
9,881
|
|
||
Less treasury shares, at cost
|
(35
|
)
|
|
(27
|
)
|
||
Accumulated other comprehensive loss
|
(528
|
)
|
|
(401
|
)
|
||
Retained earnings (deficit)
|
588
|
|
|
(227
|
)
|
||
Total shareholders’ equity
|
10,814
|
|
|
10,308
|
|
||
Total liabilities and shareholders’ equity
|
$
|
104,185
|
|
|
$
|
99,714
|
|
Common shares authorized (par value of $0.01)
|
1,500,000,000
|
|
|
1,500,000,000
|
|
||
Common shares issued
|
1,075,294,946
|
|
|
1,088,641,251
|
|
||
Common shares outstanding
|
1,072,026,681
|
|
|
1,085,688,538
|
|
||
Treasury shares outstanding
|
3,268,265
|
|
|
2,952,713
|
|
||
Preferred stock, authorized shares
|
6,617,808
|
|
|
6,617,808
|
|
||
Preferred shares issued
|
2,702,571
|
|
|
2,702,571
|
|
||
Preferred shares outstanding
|
1,098,006
|
|
|
1,098,006
|
|
(1)
|
Amounts represent loans for which Huntington has elected the fair value option. See Note
18
.
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions, except per share amounts)
|
2017
|
|
2016
|
|
2015
|
||||||
Interest and fee income:
|
|
|
|
|
|
||||||
Loans and leases
|
$
|
2,838
|
|
|
$
|
2,178
|
|
|
$
|
1,760
|
|
Available-for-sale and other securities
|
|
|
|
|
|
||||||
Taxable
|
303
|
|
|
223
|
|
|
202
|
|
|||
Tax-exempt
|
77
|
|
|
59
|
|
|
42
|
|
|||
Held-to-maturity securities
|
193
|
|
|
138
|
|
|
87
|
|
|||
Other
|
22
|
|
|
34
|
|
|
24
|
|
|||
Total interest income
|
3,433
|
|
|
2,632
|
|
|
2,115
|
|
|||
Interest expense
|
|
|
|
|
|
||||||
Deposits
|
180
|
|
|
102
|
|
|
82
|
|
|||
Short-term borrowings
|
25
|
|
|
5
|
|
|
2
|
|
|||
Federal Home Loan Bank advances
|
—
|
|
|
—
|
|
|
1
|
|
|||
Subordinated notes and other long-term debt
|
226
|
|
|
156
|
|
|
79
|
|
|||
Total interest expense
|
431
|
|
|
263
|
|
|
164
|
|
|||
Net interest income
|
3,002
|
|
|
2,369
|
|
|
1,951
|
|
|||
Provision for credit losses
|
201
|
|
|
191
|
|
|
100
|
|
|||
Net interest income after provision for credit losses
|
2,801
|
|
|
2,178
|
|
|
1,851
|
|
|||
Service charges on deposit accounts
|
353
|
|
|
324
|
|
|
280
|
|
|||
Cards and payment processing income
|
206
|
|
|
169
|
|
|
143
|
|
|||
Trust and investment management services
|
156
|
|
|
123
|
|
|
116
|
|
|||
Mortgage banking income
|
131
|
|
|
128
|
|
|
112
|
|
|||
Insurance income
|
81
|
|
|
84
|
|
|
81
|
|
|||
Capital markets fees
|
76
|
|
|
60
|
|
|
54
|
|
|||
Bank owned life insurance income
|
67
|
|
|
58
|
|
|
52
|
|
|||
Gain on sale of loans
|
56
|
|
|
47
|
|
|
33
|
|
|||
Net gains on sales of securities
|
—
|
|
|
2
|
|
|
3
|
|
|||
Impairment losses recognized in earnings on available-for-sale securities (a)
|
(4
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|||
Other Income
|
185
|
|
|
157
|
|
|
167
|
|
|||
Total noninterest income
|
1,307
|
|
|
1,150
|
|
|
1,039
|
|
|||
Personnel costs
|
1,524
|
|
|
1,349
|
|
|
1,122
|
|
|||
Outside data processing and other services
|
313
|
|
|
305
|
|
|
231
|
|
|||
Net occupancy
|
212
|
|
|
153
|
|
|
122
|
|
|||
Equipment
|
171
|
|
|
165
|
|
|
125
|
|
|||
Deposit and other insurance expense
|
78
|
|
|
54
|
|
|
45
|
|
|||
Professional services
|
69
|
|
|
105
|
|
|
50
|
|
|||
Marketing
|
60
|
|
|
63
|
|
|
52
|
|
|||
Amortization of intangibles
|
56
|
|
|
30
|
|
|
28
|
|
|||
Other expense
|
231
|
|
|
184
|
|
|
201
|
|
|||
Total noninterest expense
|
2,714
|
|
|
2,408
|
|
|
1,976
|
|
|||
Income before income taxes
|
1,394
|
|
|
920
|
|
|
914
|
|
|||
Provision for income taxes
|
208
|
|
|
208
|
|
|
221
|
|
|||
Net income
|
1,186
|
|
|
712
|
|
|
693
|
|
|||
Dividends on preferred shares
|
76
|
|
|
65
|
|
|
32
|
|
|||
Net income applicable to common shares
|
$
|
1,110
|
|
|
$
|
647
|
|
|
$
|
661
|
|
Average common shares—basic
|
1,084,686
|
|
|
904,438
|
|
|
803,412
|
|
|||
Average common shares—diluted
|
1,136,186
|
|
|
918,790
|
|
|
817,129
|
|
|||
Per common share:
|
|
|
|
|
|
||||||
Net income—basic
|
$
|
1.02
|
|
|
$
|
0.72
|
|
|
$
|
0.82
|
|
Net income—diluted
|
1.00
|
|
|
0.70
|
|
|
0.81
|
|
|||
Cash dividends declared
|
0.35
|
|
|
0.29
|
|
|
0.25
|
|
(a)
|
The following OTTI losses are included in securities losses for the periods presented:
|
Total OTTI losses
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
|
$
|
(3
|
)
|
Noncredit-related portion of loss recognized in OCI
|
—
|
|
|
4
|
|
|
1
|
|
|||
Net impairment credit losses recognized in earnings
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
1,186
|
|
|
$
|
712
|
|
|
$
|
693
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||||||
Unrealized gains (losses) on available-for-sale and other securities:
|
|
|
|
|
|
||||||
Non-credit-related impairment recoveries on debt securities not expected to be sold
|
2
|
|
|
1
|
|
|
13
|
|
|||
Unrealized net gains (losses) on available-for-sale and other securities arising during the period, net of reclassification for net realized gains and losses
|
(39
|
)
|
|
(202
|
)
|
|
(20
|
)
|
|||
Total unrealized gains (losses) on available-for-sale securities
|
(37
|
)
|
|
(201
|
)
|
|
(7
|
)
|
|||
Unrealized gains on cash flow hedging derivatives, net of reclassifications to income
|
3
|
|
|
1
|
|
|
8
|
|
|||
Change in accumulated unrealized gains (losses) for pension and other post-retirement obligations
|
—
|
|
|
25
|
|
|
(5
|
)
|
|||
Other comprehensive loss, net of tax
|
(34
|
)
|
|
(175
|
)
|
|
(4
|
)
|
|||
Comprehensive income
|
$
|
1,152
|
|
|
$
|
537
|
|
|
$
|
689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Retained
|
|
|
||||||||||||||||
(dollar amounts in millions, except per share amounts)
|
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
Treasury Stock
|
|
Comprehensive
|
|
Earnings
|
|
|
||||||||||||||||||||
|
Amount
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Shares
|
|
Amount
|
|
Loss
|
|
(Deficit)
|
|
Total
|
|||||||||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of year
|
|
$
|
1,071
|
|
|
1,088,641
|
|
|
$
|
11
|
|
|
$
|
9,881
|
|
|
(2,953
|
)
|
|
$
|
(27
|
)
|
|
$
|
(401
|
)
|
|
$
|
(227
|
)
|
|
$
|
10,308
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,186
|
|
|
1,186
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(34
|
)
|
|
|
|
(34
|
)
|
||||||||||||||
Repurchases of common stock
|
|
|
|
(19,430
|
)
|
|
—
|
|
|
(260
|
)
|
|
|
|
|
|
|
|
|
|
(260
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.35 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(379
|
)
|
|
(379
|
)
|
||||||||||||||
Preferred Series A ($85.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Preferred Series B ($39.11 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($58.76 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||||||||
Preferred Series D ($62.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38
|
)
|
|
(38
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
92
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
|
5,923
|
|
|
—
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
(9
|
)
|
|
(19
|
)
|
|||||||||||
TCJA, Reclassification from accumulated OCI to retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(93
|
)
|
|
93
|
|
|
—
|
|
|||||||||||||
Other
|
|
|
|
161
|
|
|
—
|
|
|
4
|
|
|
(315
|
)
|
|
(8
|
)
|
|
|
|
—
|
|
|
(4
|
)
|
|||||||||
Balance, end of year
|
|
$
|
1,071
|
|
|
1,075,295
|
|
|
$
|
11
|
|
|
$
|
9,707
|
|
|
(3,268
|
)
|
|
$
|
(35
|
)
|
|
$
|
(528
|
)
|
|
$
|
588
|
|
|
$
|
10,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Retained
|
|
|
||||||||||||||||
(dollar amounts in millions, except per share amounts)
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
Treasury Stock
|
|
Comprehensive
|
|
Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Shares
|
|
Amount
|
|
Loss
|
|
(Deficit)
|
|
Total
|
|||||||||||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of year
|
$
|
386
|
|
|
796,970
|
|
|
$
|
8
|
|
|
$
|
7,039
|
|
|
(2,041
|
)
|
|
$
|
(18
|
)
|
|
$
|
(226
|
)
|
|
$
|
(594
|
)
|
|
$
|
6,595
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
712
|
|
|
712
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(175
|
)
|
|
|
|
(175
|
)
|
||||||||||||||
FirstMerit Acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Issuance of common stock
|
|
|
285,425
|
|
|
3
|
|
|
2,764
|
|
|
|
|
|
|
|
|
|
|
2,767
|
|
||||||||||||
Issuance of Series C preferred stock
|
100
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
104
|
|
|||||||||||||
Net proceeds from issuance of Series D preferred stock
|
585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
585
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.29 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(275
|
)
|
|
(275
|
)
|
||||||||||||||
Preferred Series A ($85.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Preferred Series B ($34.03 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($26.28 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series D ($51.04 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
66
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
5,924
|
|
|
—
|
|
|
5
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
1
|
|
|||||||||||
Other
|
|
|
322
|
|
|
—
|
|
|
3
|
|
|
(912
|
)
|
|
(9
|
)
|
|
|
|
—
|
|
|
(6
|
)
|
|||||||||
Balance, end of year
|
$
|
1,071
|
|
|
1,088,641
|
|
|
$
|
11
|
|
|
$
|
9,881
|
|
|
(2,953
|
)
|
|
$
|
(27
|
)
|
|
$
|
(401
|
)
|
|
$
|
(227
|
)
|
|
$
|
10,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Retained
|
|
|
||||||||||||||||
(dollar amounts in millions, except per share amounts)
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
Treasury Stock
|
|
Comprehensive
|
|
Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Shares
|
|
Amount
|
|
Loss
|
|
(Deficit)
|
|
Total
|
|||||||||||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of year
|
$
|
386
|
|
|
813,136
|
|
|
$
|
8
|
|
|
$
|
7,222
|
|
|
(1,682
|
)
|
|
$
|
(14
|
)
|
|
$
|
(222
|
)
|
|
$
|
(1,052
|
)
|
|
$
|
6,328
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
693
|
|
|
693
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
||||||||||||||
Repurchase of common stock
|
|
|
(23,036
|
)
|
|
—
|
|
|
(252
|
)
|
|
|
|
|
|
|
|
|
|
(252
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.25 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(200
|
)
|
|
(200
|
)
|
||||||||||||||
Preferred Series A ($85.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Preferred Series B ($29.84 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
51
|
|
|
|
|
|
|
|
|
|
|
51
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
6,784
|
|
|
—
|
|
|
16
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
13
|
|
|||||||||||
Other
|
|
|
86
|
|
|
—
|
|
|
2
|
|
|
(359
|
)
|
|
(4
|
)
|
|
|
|
—
|
|
|
(2
|
)
|
|||||||||
Balance, end of year
|
$
|
386
|
|
|
796,970
|
|
|
$
|
8
|
|
|
$
|
7,039
|
|
|
(2,041
|
)
|
|
$
|
(18
|
)
|
|
$
|
(226
|
)
|
|
$
|
(594
|
)
|
|
$
|
6,595
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,186
|
|
|
$
|
712
|
|
|
$
|
693
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
|
|
|
|
|
||||||
Provision for credit losses
|
201
|
|
|
191
|
|
|
100
|
|
|||
Depreciation and amortization
|
413
|
|
|
380
|
|
|
341
|
|
|||
Share-based compensation expense
|
92
|
|
|
66
|
|
|
51
|
|
|||
Deferred income tax expense
|
168
|
|
|
165
|
|
|
69
|
|
|||
Net gains on sales of securities
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
|||
Impairment losses recognized in earnings on available-for-sale securities
|
4
|
|
|
2
|
|
|
2
|
|
|||
Net Change in:
|
|
|
|
|
|
||||||
Trading account securities
|
47
|
|
|
(96
|
)
|
|
5
|
|
|||
Loans held for sale
|
12
|
|
|
(123
|
)
|
|
54
|
|
|||
Accrued income and other assets
|
(420
|
)
|
|
(96
|
)
|
|
(234
|
)
|
|||
Accrued expense and other liabilities
|
233
|
|
|
4
|
|
|
(35
|
)
|
|||
Other, net
|
18
|
|
|
12
|
|
|
(10
|
)
|
|||
Net cash provided by (used in) operating activities
|
1,954
|
|
|
1,215
|
|
|
1,033
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Change in interest bearing deposits in banks
|
39
|
|
|
26
|
|
|
13
|
|
|||
Cash paid for acquisition of a business, net of cash received
|
—
|
|
|
(133
|
)
|
|
(458
|
)
|
|||
Proceeds from:
|
|
|
|
|
|
||||||
Maturities and calls of available-for-sale and other securities
|
1,946
|
|
|
2,113
|
|
|
1,908
|
|
|||
Maturities and calls of held-to-maturity securities
|
1,054
|
|
|
1,212
|
|
|
595
|
|
|||
Sales of available-for-sale securities
|
2,490
|
|
|
6,154
|
|
|
163
|
|
|||
Purchases of available-for-sale securities
|
(5,418
|
)
|
|
(10,888
|
)
|
|
(4,507
|
)
|
|||
Purchases of held-to-maturity securities
|
(1,356
|
)
|
|
—
|
|
|
(379
|
)
|
|||
Net proceeds from sales of portfolio loans
|
603
|
|
|
2,981
|
|
|
1,304
|
|
|||
Net loan and lease activity, excluding sales and purchases
|
(3,680
|
)
|
|
(3,951
|
)
|
|
(3,187
|
)
|
|||
Purchases of premises and equipment
|
(194
|
)
|
|
(120
|
)
|
|
(93
|
)
|
|||
Proceeds from sales of other real estate
|
38
|
|
|
50
|
|
|
36
|
|
|||
Purchases of loans and leases
|
(405
|
)
|
|
(411
|
)
|
|
(334
|
)
|
|||
Net cash paid for branch divestiture
|
—
|
|
|
(480
|
)
|
|
—
|
|
|||
Other, net
|
17
|
|
|
2
|
|
|
10
|
|
|||
Net cash provided by (used in) investing activities
|
(4,866
|
)
|
|
(3,445
|
)
|
|
(4,929
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Increase (decrease) in deposits
|
1,433
|
|
|
(292
|
)
|
|
3,644
|
|
|||
Increase (decrease) in short-term borrowings
|
1,371
|
|
|
1,900
|
|
|
(1,819
|
)
|
|||
Sale of deposits
|
—
|
|
|
—
|
|
|
(48
|
)
|
|||
Net proceeds from issuance of long-term debt
|
1,816
|
|
|
2,128
|
|
|
3,232
|
|
|||
Maturity/redemption of long-term debt
|
(948
|
)
|
|
(1,275
|
)
|
|
(1,037
|
)
|
|||
Dividends paid on preferred stock
|
(76
|
)
|
|
(54
|
)
|
|
(32
|
)
|
|||
Dividends paid on common stock
|
(349
|
)
|
|
(245
|
)
|
|
(193
|
)
|
|||
Repurchases of common stock
|
(260
|
)
|
|
—
|
|
|
(252
|
)
|
|||
Proceeds from stock options exercised
|
11
|
|
|
17
|
|
|
19
|
|
|||
Net proceeds from issuance of preferred stock
|
—
|
|
|
585
|
|
|
—
|
|
|||
Net proceeds from issuance of secured financing
|
75
|
|
|
—
|
|
|
—
|
|
|||
Payments related to tax-withholding for share based compensation awards
|
(26
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
—
|
|
|
4
|
|
|
8
|
|
|||
Net cash provided by (used) financing activities
|
3,047
|
|
|
2,768
|
|
|
3,522
|
|
|||
Increase (decrease) in cash and cash equivalents
|
135
|
|
|
538
|
|
|
(374
|
)
|
|||
Cash and cash equivalents at beginning of period
|
1,385
|
|
|
847
|
|
|
1,221
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,520
|
|
|
$
|
1,385
|
|
|
$
|
847
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Supplemental disclosures:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
409
|
|
|
$
|
241
|
|
|
$
|
150
|
|
Income taxes paid
|
84
|
|
|
5
|
|
|
154
|
|
|||
Non-cash activities:
|
|
|
|
|
|
||||||
Common stock issued to acquire FirstMerit
|
—
|
|
|
2,767
|
|
|
—
|
|
|||
Preferred stock issued to acquire FirstMerit
|
—
|
|
|
104
|
|
|
—
|
|
|||
Loans transferred to held-for-sale from portfolio
|
660
|
|
|
3,437
|
|
|
1,727
|
|
|||
Loans transferred to portfolio from held-for-sale
|
12
|
|
|
482
|
|
|
278
|
|
|||
Transfer of loans to OREO
|
29
|
|
|
79
|
|
|
25
|
|
|||
Transfer of securities to held-to-maturity from available-for-sale
|
993
|
|
|
2,870
|
|
|
3,000
|
|
•
|
a qualifying hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge);
|
•
|
a qualifying hedge of the variability of cash flows to be received or paid related to a recognized asset liability or forecasted transaction (cash flow hedge); or
|
•
|
a trading instrument or a non-qualifying (economic) hedge.
|
•
|
the derivative is no longer effective or expected to be effective in offsetting changes in the fair value or cash flows of a hedged item (including firm commitments or forecasted transactions);
|
•
|
the derivative expires or is sold, terminated, or exercised;
|
•
|
the forecasted transaction is no longer probable of occurring;
|
•
|
the hedged firm commitment no longer meets the definition of a firm commitment; or
|
•
|
the designation of the derivative as a hedging instrument is removed.
|
•
|
Level 1
– inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2
– inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3
– inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2017-12 - Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities.
Issued August 2017
|
- Aligns the entity’s risk management activities and financial reporting for hedging relationships.
- Requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported.
- Refines measurement techniques for hedges of benchmark interest rate risk.
- Eliminates the separate measurement and reporting of hedge ineffectiveness.
- Allows stated amount of assets in a closed portfolio to be fair value hedged by excluding proportion of hedged item related to prepayments, defaults and other events.
- Eases hedge effectiveness testing including an option to perform qualitative testing.
|
- Effective for annual periods and interim periods within those annual periods, beginning after December 15, 2018. For cash flow and net investment hedges, cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness should be recognized in AOCI with a corresponding adjustment to retained earnings. Earlier application is permitted.
- Huntington adopted the new guidance on January 1, 2018. The Update did not have a significant impact on Huntington's Consolidated Financial Statements.
|
ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)
Issued Feb 2018
|
- Allows an entity to elect a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.
- The amount of that reclassification should include the effect of changes of tax rate on the deferred tax amount, any related valuation allowance and other income tax effects on the items in AOCI.
- Requires an entity to state if an election to reclassify the tax effect to retained earnings is made along with the description of other income tax effects that are reclassified from AOCI.
|
- Effective for fiscal years beginning after Dec 15, 2018 and interim periods within those fiscal years with earl
y
adoption permitted.
- Huntington has elected to reclassify $93 million from AOCI to retained earnings in the current period.
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Loans and leases:
|
|
|
|
||||
Commercial and industrial
|
$
|
28,107
|
|
|
$
|
28,059
|
|
Commercial real estate
|
7,225
|
|
|
7,301
|
|
||
Automobile
|
12,100
|
|
|
10,969
|
|
||
Home equity
|
10,099
|
|
|
10,106
|
|
||
Residential mortgage
|
9,026
|
|
|
7,725
|
|
||
RV and marine finance
|
2,438
|
|
|
1,846
|
|
||
Other consumer
|
1,122
|
|
|
956
|
|
||
Loans and leases
|
70,117
|
|
|
66,962
|
|
||
Allowance for loan and lease losses
|
(691
|
)
|
|
(638
|
)
|
||
Net loans and leases
|
$
|
69,426
|
|
|
$
|
66,324
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Commercial and industrial:
|
|
|
|
||||
Lease payments receivable
|
$
|
1,645
|
|
|
$
|
1,881
|
|
Estimated residual value of leased assets
|
755
|
|
|
798
|
|
||
Gross investment in commercial lease financing receivables
|
2,400
|
|
|
2,679
|
|
||
Deferred origination costs
|
18
|
|
|
13
|
|
||
Deferred fees
|
(225
|
)
|
|
(254
|
)
|
||
Total net investment in commercial lease financing receivables
|
$
|
2,193
|
|
|
$
|
2,438
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Balance, beginning of period
|
$
|
37
|
|
|
$
|
—
|
|
Impact of acquisition/purchase on August 16, 2016
|
—
|
|
|
18
|
|
||
Accretion
|
(18
|
)
|
|
(5
|
)
|
||
Reclassification from nonaccretable difference
|
14
|
|
|
24
|
|
||
Balance at December 31,
|
$
|
33
|
|
|
$
|
37
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
(dollar amounts in millions)
|
Ending
Balance |
|
Unpaid Principal
Balance |
|
Ending
Balance |
|
Unpaid Principal
Balance |
||||||||
Commercial and industrial
|
$
|
39
|
|
|
$
|
61
|
|
|
$
|
68
|
|
|
$
|
100
|
|
Commercial real estate
|
2
|
|
|
15
|
|
|
34
|
|
|
56
|
|
||||
Total
|
$
|
41
|
|
|
$
|
76
|
|
|
$
|
102
|
|
|
$
|
156
|
|
|
December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Commercial and industrial
|
$
|
161
|
|
|
$
|
234
|
|
Commercial real estate
|
29
|
|
|
20
|
|
||
Automobile
|
6
|
|
|
6
|
|
||
Home equity
|
68
|
|
|
72
|
|
||
Residential mortgage
|
84
|
|
|
91
|
|
||
RV and marine finance
|
1
|
|
|
—
|
|
||
Other consumer
|
—
|
|
|
—
|
|
||
Total nonaccrual loans
|
$
|
349
|
|
|
$
|
423
|
|
|
December 31, 2017
|
|||||||||||||||||||||||||||||||||||
|
Past Due
|
|
|
|
Purchased Credit
Impaired
|
|
Loans Accounted for Under the Fair Value Option
|
|
Total Loans
and Leases |
|
90 or
more days past due and accruing |
|
||||||||||||||||||||||||
(dollar amounts in millions)
|
30-59
Days |
|
60-89
Days |
|
90 or
more days |
Total
|
|
Current
|
|
|
|
|
|
|||||||||||||||||||||||
Commercial and industrial
|
$
|
35
|
|
|
$
|
14
|
|
|
$
|
65
|
|
|
$
|
114
|
|
|
$
|
27,954
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
28,107
|
|
|
$
|
9
|
|
(2)
|
Commercial real estate
|
10
|
|
|
1
|
|
|
11
|
|
|
22
|
|
|
7,201
|
|
|
2
|
|
|
—
|
|
|
7,225
|
|
|
3
|
|
|
|||||||||
Automobile
|
89
|
|
|
18
|
|
|
10
|
|
|
117
|
|
|
11,982
|
|
|
—
|
|
|
1
|
|
|
12,100
|
|
|
7
|
|
|
|||||||||
Home equity
|
49
|
|
|
19
|
|
|
60
|
|
|
128
|
|
|
9,969
|
|
|
—
|
|
|
2
|
|
|
10,099
|
|
|
18
|
|
|
|||||||||
Residential mortgage
|
129
|
|
|
48
|
|
|
118
|
|
|
295
|
|
|
8,642
|
|
|
—
|
|
|
89
|
|
|
9,026
|
|
|
72
|
|
|
|||||||||
RV and marine finance
|
11
|
|
|
3
|
|
|
2
|
|
|
16
|
|
|
2,421
|
|
|
—
|
|
|
1
|
|
|
2,438
|
|
|
1
|
|
|
|||||||||
Other consumer
|
12
|
|
|
5
|
|
|
5
|
|
|
22
|
|
|
1,100
|
|
|
—
|
|
|
—
|
|
|
1,122
|
|
|
5
|
|
|
|||||||||
Total loans and leases
|
$
|
335
|
|
|
$
|
108
|
|
|
$
|
271
|
|
|
$
|
714
|
|
|
$
|
69,269
|
|
|
$
|
41
|
|
|
$
|
93
|
|
|
$
|
70,117
|
|
|
$
|
115
|
|
|
|
December 31, 2016
|
|||||||||||||||||||||||||||||||||||
|
Past Due
|
|
|
|
|
|
Loans Accounted for Under the Fair Value Option
|
|
Total Loans
and Leases |
|
90 or
more days past due and accruing |
|
||||||||||||||||||||||||
(dollar amounts in millions)
|
30-59
Days |
|
60-89
Days |
|
90 or
more days |
Total
|
|
Current
|
|
Purchased
Credit Impaired |
|
|
|
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
42
|
|
|
$
|
20
|
|
|
$
|
74
|
|
|
$
|
136
|
|
|
$
|
27,855
|
|
|
68
|
|
|
—
|
|
|
$
|
28,059
|
|
|
$
|
18
|
|
(2)
|
||
Commercial real estate
|
21
|
|
|
3
|
|
|
30
|
|
|
54
|
|
|
7,213
|
|
|
34
|
|
|
—
|
|
|
7,301
|
|
|
17
|
|
|
|||||||||
Automobile
|
76
|
|
|
17
|
|
|
10
|
|
|
103
|
|
|
10,864
|
|
|
—
|
|
|
2
|
|
|
10,969
|
|
|
10
|
|
|
|||||||||
Home equity
|
39
|
|
|
24
|
|
|
53
|
|
|
116
|
|
|
9,987
|
|
|
—
|
|
|
3
|
|
|
10,106
|
|
|
12
|
|
|
|||||||||
Residential mortgage
|
122
|
|
|
37
|
|
|
117
|
|
|
276
|
|
|
7,374
|
|
|
—
|
|
|
75
|
|
|
7,725
|
|
|
67
|
|
|
|||||||||
RV and marine finance
|
10
|
|
|
2
|
|
|
2
|
|
|
14
|
|
|
1,830
|
|
|
—
|
|
|
2
|
|
|
1,846
|
|
|
1
|
|
|
|||||||||
Other consumer
|
11
|
|
|
6
|
|
|
3
|
|
|
20
|
|
|
936
|
|
|
—
|
|
|
—
|
|
|
956
|
|
|
4
|
|
|
|||||||||
Total loans and leases
|
$
|
321
|
|
|
$
|
109
|
|
|
$
|
289
|
|
|
$
|
719
|
|
|
$
|
66,059
|
|
|
$
|
102
|
|
|
$
|
82
|
|
|
$
|
66,962
|
|
|
$
|
129
|
|
|
(1)
|
NALs are included in this aging analysis based on the loan’s past due status.
|
(2)
|
Amounts include Huntington Technology Finance administrative lease delinquencies.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Year ended December 31, 2017:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
Loan charge-offs
|
|
(72
|
)
|
|
(180
|
)
|
|
(252
|
)
|
|||
Recoveries of loans previously charged-off
|
|
41
|
|
|
52
|
|
|
93
|
|
|||
Provision for loan and lease losses
|
|
62
|
|
|
150
|
|
|
212
|
|
|||
Allowance for loans sold or transferred to loans held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
ALLL balance, end of period
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
AULC balance, beginning of period
|
|
$
|
87
|
|
|
$
|
11
|
|
|
$
|
98
|
|
Provision (reduction in allowance) for unfunded loan commitments
and letters of credit
|
|
(3
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|||
AULC recorded at acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
AULC balance, end of period
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
87
|
|
ACL balance, end of period
|
|
$
|
566
|
|
|
$
|
212
|
|
|
$
|
778
|
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2016:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
399
|
|
|
$
|
199
|
|
|
$
|
598
|
|
Loan charge-offs
|
|
(92
|
)
|
|
(135
|
)
|
|
(227
|
)
|
|||
Recoveries of loans previously charged-off
|
|
73
|
|
|
45
|
|
|
118
|
|
|||
Provision for loan and lease losses
|
|
85
|
|
|
84
|
|
|
169
|
|
|||
Allowance for loans sold or transferred to loans held for sale
|
|
(14
|
)
|
|
(6
|
)
|
|
(20
|
)
|
|||
ALLL balance, end of period
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
AULC balance, beginning of period
|
|
$
|
64
|
|
|
$
|
8
|
|
|
$
|
72
|
|
Provision (reduction in allowance) for unfunded loan commitments
and letters of credit
|
|
19
|
|
|
3
|
|
|
22
|
|
|||
AULC recorded at acquisition
|
|
4
|
|
|
—
|
|
|
4
|
|
|||
AULC balance, end of period
|
|
$
|
87
|
|
|
$
|
11
|
|
|
$
|
98
|
|
ACL balance, end of period
|
|
$
|
538
|
|
|
$
|
198
|
|
|
$
|
736
|
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2015:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
390
|
|
|
$
|
215
|
|
|
$
|
605
|
|
Loan charge-offs
|
|
(98
|
)
|
|
(120
|
)
|
|
(218
|
)
|
|||
Recoveries of loans previously charged-off
|
|
86
|
|
|
44
|
|
|
130
|
|
|||
Provision for loan and lease losses
|
|
21
|
|
|
68
|
|
|
89
|
|
|||
Allowance for loans sold or transferred to loans held for sale
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|||
ALLL balance, end of period
|
|
$
|
399
|
|
|
$
|
199
|
|
|
$
|
598
|
|
AULC balance, beginning of period
|
|
$
|
55
|
|
|
$
|
6
|
|
|
$
|
61
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
9
|
|
|
2
|
|
|
11
|
|
|||
AULC recorded at acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
AULC balance, end of period
|
|
$
|
64
|
|
|
$
|
8
|
|
|
$
|
72
|
|
ACL balance, end of period
|
|
$
|
463
|
|
|
$
|
207
|
|
|
$
|
670
|
|
•
|
Pass
- Higher quality loans that do not fit any of the other categories described below.
|
•
|
OLEM
- The credit risk may be relatively minor yet represents a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans.
|
•
|
Substandard
- Inadequately protected loans by the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.
|
•
|
Doubtful
- Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.
|
|
December 31, 2017
|
||||||||||||||||||
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
(dollar amounts in millions)
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
26,268
|
|
|
$
|
694
|
|
|
$
|
1,116
|
|
|
$
|
29
|
|
|
$
|
28,107
|
|
Commercial real estate
|
6,909
|
|
|
200
|
|
|
115
|
|
|
1
|
|
|
7,225
|
|
|||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
6,102
|
|
|
4,312
|
|
|
1,390
|
|
|
295
|
|
|
12,099
|
|
|||||
Home equity
|
6,352
|
|
|
3,024
|
|
|
617
|
|
|
104
|
|
|
10,097
|
|
|||||
Residential mortgage
|
5,697
|
|
|
2,581
|
|
|
605
|
|
|
54
|
|
|
8,937
|
|
|||||
RV and marine finance
|
1,433
|
|
|
863
|
|
|
96
|
|
|
45
|
|
|
2,437
|
|
|||||
Other consumer
|
428
|
|
|
540
|
|
|
143
|
|
|
11
|
|
|
1,122
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
(dollar amounts in millions)
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
26,212
|
|
|
$
|
810
|
|
|
$
|
1,029
|
|
|
$
|
8
|
|
|
$
|
28,059
|
|
Commercial real estate
|
7,042
|
|
|
97
|
|
|
159
|
|
|
3
|
|
|
7,301
|
|
|||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
5,369
|
|
|
4,044
|
|
|
1,298
|
|
|
256
|
|
|
$
|
10,967
|
|
||||
Home equity
|
6,280
|
|
|
2,891
|
|
|
638
|
|
|
294
|
|
|
10,103
|
|
|||||
Residential mortgage
|
4,663
|
|
|
2,285
|
|
|
615
|
|
|
87
|
|
|
7,650
|
|
|||||
RV and marine finance
|
1,064
|
|
|
644
|
|
|
73
|
|
|
64
|
|
|
1,845
|
|
|||||
Other consumer
|
347
|
|
|
456
|
|
|
133
|
|
|
20
|
|
|
956
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
(2)
|
Reflects updated customer credit scores.
|
(3)
|
Reflects deferred fees and costs, loans in process, etc.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL at December 31, 2017:
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
Attributable to purchased credit-impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Attributable to loans individually evaluated for impairment
|
|
$
|
32
|
|
|
$
|
9
|
|
|
$
|
41
|
|
Attributable to loans collectively evaluated for impairment
|
|
450
|
|
|
200
|
|
|
650
|
|
|||
Total ALLL balance
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
Loan and Lease Ending Balances at December 31, 2017: (1)
|
|
|
|
|
|
|
||||||
Portion of loan and lease ending balance:
|
|
|
|
|
|
|
||||||
Attributable to purchased credit-impaired loans
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
41
|
|
Individually evaluated for impairment
|
|
607
|
|
|
616
|
|
|
1,223
|
|
|||
Collectively evaluated for impairment
|
|
34,684
|
|
|
34,076
|
|
|
68,760
|
|
|||
Total loans and leases evaluated for impairment
|
|
$
|
35,332
|
|
|
$
|
34,692
|
|
|
$
|
70,024
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL at December 31, 2016:
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
Attributable to purchased credit-impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Attributable to loans individually evaluated for impairment
|
|
11
|
|
|
11
|
|
|
22
|
|
|||
Attributable to loans collectively evaluated for impairment
|
|
440
|
|
|
176
|
|
|
616
|
|
|||
Total ALLL balance:
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
Loan and Lease Ending Balances at December 31, 2016: (1)
|
|
|
|
|
|
|
||||||
Portion of loan and lease ending balances:
|
|
|
|
|
|
|
||||||
Attributable to purchased credit-impaired loans
|
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
102
|
|
Individually evaluated for impairment
|
|
416
|
|
|
458
|
|
|
874
|
|
|||
Collectively evaluated for impairment
|
|
34,842
|
|
|
31,062
|
|
|
65,904
|
|
|||
Total loans and leases evaluated for impairment
|
|
$
|
35,360
|
|
|
$
|
31,520
|
|
|
$
|
66,880
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
|
|
|
|
|
|
|
Year Ended
|
||||||||||||
|
December 31, 2017
|
|
December 31, 2017
|
||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
284
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
12
|
|
Commercial real estate
|
56
|
|
|
81
|
|
|
—
|
|
|
64
|
|
|
8
|
|
|||||
Automobile
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
257
|
|
|
280
|
|
|
29
|
|
|
292
|
|
|
16
|
|
|||||
Commercial real estate
|
51
|
|
|
51
|
|
|
3
|
|
|
52
|
|
|
2
|
|
|||||
Automobile
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
2
|
|
|||||
Home equity
|
334
|
|
|
385
|
|
|
14
|
|
|
329
|
|
|
15
|
|
|||||
Residential mortgage
|
308
|
|
|
338
|
|
|
4
|
|
|
325
|
|
|
12
|
|
|||||
RV and marine finance
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other consumer
|
8
|
|
|
8
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial (3)
|
541
|
|
|
591
|
|
|
29
|
|
|
498
|
|
|
28
|
|
|||||
Commercial real estate (4)
|
107
|
|
|
132
|
|
|
3
|
|
|
116
|
|
|
10
|
|
|||||
Automobile (2)
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
2
|
|
|||||
Home equity (5)
|
334
|
|
|
385
|
|
|
14
|
|
|
329
|
|
|
15
|
|
|||||
Residential mortgage (5)
|
308
|
|
|
338
|
|
|
4
|
|
|
325
|
|
|
12
|
|
|||||
RV and marine finance (2)
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other consumer (2)
|
8
|
|
|
8
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
|
|
|
|
|
|
Year Ended
|
||||||||||||
|
December 31, 2016
|
|
December 31, 2016
|
||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
300
|
|
|
$
|
359
|
|
|
$
|
—
|
|
|
$
|
293
|
|
|
$
|
9
|
|
Commercial real estate
|
89
|
|
|
126
|
|
|
—
|
|
|
73
|
|
|
4
|
|
|||||
Automobile
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
406
|
|
|
448
|
|
|
22
|
|
|
302
|
|
|
8
|
|
|||||
Commercial real estate
|
97
|
|
|
108
|
|
|
3
|
|
|
69
|
|
|
3
|
|
|||||
Automobile
|
31
|
|
|
31
|
|
|
2
|
|
|
32
|
|
|
2
|
|
|||||
Home equity
|
319
|
|
|
353
|
|
|
15
|
|
|
278
|
|
|
13
|
|
|||||
Residential mortgage
|
328
|
|
|
363
|
|
|
13
|
|
|
348
|
|
|
12
|
|
|||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial (3)
|
706
|
|
|
807
|
|
|
22
|
|
|
595
|
|
|
17
|
|
|||||
Commercial real estate (4)
|
186
|
|
|
234
|
|
|
3
|
|
|
142
|
|
|
7
|
|
|||||
Automobile (2)
|
31
|
|
|
31
|
|
|
2
|
|
|
32
|
|
|
2
|
|
|||||
Home equity (5)
|
319
|
|
|
353
|
|
|
15
|
|
|
278
|
|
|
13
|
|
|||||
Residential mortgage (5)
|
328
|
|
|
363
|
|
|
13
|
|
|
348
|
|
|
12
|
|
|||||
RV and marine finance (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer (2)
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
(1)
|
These tables do not include loans fully charged-off.
|
(2)
|
All automobile, RV and marine finance and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
|
(3)
|
At
December 31, 2017
and
December 31, 2016
, commercial and industrial loans of
$382 million
and
$317 million
, respectively, were considered impaired due to their status as a TDR.
|
(4)
|
At
December 31, 2017
and
December 31, 2016
, commercial real estate loans of
$93 million
and
$82 million
, respectively, were considered impaired due to their status as a TDR.
|
(5)
|
Includes home equity and residential mortgages considered to be collateral dependent due to their non-accrual status as well as home equity and mortgage loans considered impaired due to their status as a TDR.
|
(6)
|
The differences between the ending balance and unpaid principal balance amounts represent partial charge-offs.
|
•
|
Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the debt.
|
•
|
Amortization or maturity date change beyond what the collateral supports, including any of the following:
|
•
|
Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and could increase the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven.
|
•
|
Reduces the amount of loan principal to be amortized and increases the amount of the balloon payment at the end of the term of the loan. This concession also reduces the minimum monthly payment. Principal is generally not forgiven.
|
•
|
Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan.
|
•
|
Chapter 7 bankruptcy: A bankruptcy court’s discharge of a borrower’s debt is considered a concession when the borrower does not reaffirm the discharged debt.
|
•
|
Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. However, the aggregate amount of principal forgiven as a result of loans modified as TDRs during the years ended December 31,
2017
and
2016
, was not significant.
|
|
New Troubled Debt Restructurings During The Year Ended (1)
|
||||||||||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
(dollar amounts in millions)
|
Number of
Contracts
|
|
Post-modification
Outstanding
Balance (2)
|
|
Financial effects
of modification (3)
|
|
Number of
Contracts
|
|
Post-modification
Outstanding
Balance (2)
|
|
Financial effects
of modification (3)
|
||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
9
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization or maturity date change
|
1,034
|
|
|
600
|
|
|
(9
|
)
|
|
872
|
|
|
490
|
|
|
(9
|
)
|
||||
Other
|
4
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
3
|
|
|
—
|
|
||||
Total Commercial and industrial
|
1,047
|
|
|
601
|
|
|
(9
|
)
|
|
896
|
|
|
493
|
|
|
(9
|
)
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
3
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Amortization or maturity date change
|
106
|
|
|
122
|
|
|
(1
|
)
|
|
111
|
|
|
69
|
|
|
(2
|
)
|
||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
Total commercial real estate:
|
111
|
|
|
122
|
|
|
(1
|
)
|
|
117
|
|
|
69
|
|
|
(2
|
)
|
||||
Automobile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
31
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
||||
Amortization or maturity date change
|
1,727
|
|
|
15
|
|
|
1
|
|
|
1,593
|
|
|
15
|
|
|
1
|
|
||||
Chapter 7 bankruptcy
|
983
|
|
|
8
|
|
|
—
|
|
|
1,059
|
|
|
8
|
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Automobile
|
2,741
|
|
|
23
|
|
|
1
|
|
|
2,669
|
|
|
23
|
|
|
1
|
|
||||
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
36
|
|
|
2
|
|
|
—
|
|
|
55
|
|
|
3
|
|
|
—
|
|
||||
Amortization or maturity date change
|
517
|
|
|
33
|
|
|
(4
|
)
|
|
578
|
|
|
32
|
|
|
(4
|
)
|
||||
Chapter 7 bankruptcy
|
299
|
|
|
11
|
|
|
2
|
|
|
282
|
|
|
10
|
|
|
4
|
|
||||
Other
|
70
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Home equity
|
922
|
|
|
50
|
|
|
(2
|
)
|
|
915
|
|
|
45
|
|
|
—
|
|
||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
3
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
1
|
|
|
—
|
|
||||
Amortization or maturity date change
|
349
|
|
|
40
|
|
|
(2
|
)
|
|
363
|
|
|
39
|
|
|
(2
|
)
|
||||
Chapter 7 bankruptcy
|
79
|
|
|
7
|
|
|
—
|
|
|
62
|
|
|
6
|
|
|
—
|
|
||||
Other
|
22
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
—
|
|
||||
Total Residential mortgage
|
453
|
|
|
49
|
|
|
(2
|
)
|
|
442
|
|
|
47
|
|
|
(2
|
)
|
||||
RV and marine finance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amortization or maturity date change
|
42
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Chapter 7 bankruptcy
|
88
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total RV and marine finance
|
131
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amortization or maturity date change
|
1,312
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
—
|
|
||||
Chapter 7 bankruptcy
|
9
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Other consumer
|
1,340
|
|
|
6
|
|
|
—
|
|
|
14
|
|
|
1
|
|
|
—
|
|
||||
Total new troubled debt restructurings
|
6,745
|
|
|
$
|
853
|
|
|
$
|
(13
|
)
|
|
5,053
|
|
|
$
|
678
|
|
|
$
|
(12
|
)
|
(1)
|
TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
|
(2)
|
Post-modification balances approximate pre-modification balances. The aggregate amount of charge-offs as a result of a restructuring are not significant.
|
(3)
|
Amounts represent the financial impact via provision (recovery) for loan and lease losses as a result of the modification.
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Under 1 year
|
$
|
111
|
|
|
$
|
111
|
|
|
$
|
224
|
|
|
$
|
222
|
|
After 1 year through 5 years
|
1,333
|
|
|
1,327
|
|
|
1,147
|
|
|
1,150
|
|
||||
After 5 years through 10 years
|
2,088
|
|
|
2,083
|
|
|
1,957
|
|
|
1,962
|
|
||||
After 10 years
|
11,595
|
|
|
11,348
|
|
|
11,885
|
|
|
11,665
|
|
||||
Other securities:
|
|
|
|
|
|
|
|
||||||||
Nonmarketable equity securities
|
581
|
|
|
581
|
|
|
548
|
|
|
548
|
|
||||
Mutual funds
|
18
|
|
|
18
|
|
|
15
|
|
|
15
|
|
||||
Marketable equity securities
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Total available-for-sale and other securities
|
$
|
15,727
|
|
|
$
|
15,469
|
|
|
$
|
15,777
|
|
|
$
|
15,563
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
6,661
|
|
|
1
|
|
|
(178
|
)
|
|
6,484
|
|
||||
Residential MBS
|
1,371
|
|
|
1
|
|
|
(5
|
)
|
|
1,367
|
|
||||
Commercial MBS
|
2,539
|
|
|
—
|
|
|
(52
|
)
|
|
2,487
|
|
||||
Other agencies
|
69
|
|
|
1
|
|
|
—
|
|
|
70
|
|
||||
Total U.S. Treasury, Federal agency, and other agency securities
|
10,645
|
|
|
3
|
|
|
(235
|
)
|
|
10,413
|
|
||||
Municipal securities
|
3,892
|
|
|
21
|
|
|
(35
|
)
|
|
3,878
|
|
||||
Asset-backed securities
|
482
|
|
|
1
|
|
|
(16
|
)
|
|
467
|
|
||||
Corporate debt
|
106
|
|
|
3
|
|
|
—
|
|
|
109
|
|
||||
Other securities
|
602
|
|
|
—
|
|
|
—
|
|
|
602
|
|
||||
Total available-for-sale and other securities
|
$
|
15,727
|
|
|
$
|
28
|
|
|
$
|
(286
|
)
|
|
$
|
15,469
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
6,955
|
|
|
6
|
|
|
(151
|
)
|
|
6,810
|
|
||||
Residential MBS
|
196
|
|
|
5
|
|
|
(1
|
)
|
|
200
|
|
||||
Commercial MBS
|
3,700
|
|
|
2
|
|
|
(39
|
)
|
|
3,663
|
|
||||
Other agencies
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
||||
Total U.S. Treasury, Federal agency, and other agency securities
|
10,930
|
|
|
13
|
|
|
(191
|
)
|
|
10,752
|
|
||||
Municipal securities
|
3,260
|
|
|
29
|
|
|
(39
|
)
|
|
3,250
|
|
||||
Asset-backed securities
|
824
|
|
|
2
|
|
|
(32
|
)
|
|
794
|
|
||||
Corporate debt
|
195
|
|
|
4
|
|
|
—
|
|
|
199
|
|
||||
Other securities
|
568
|
|
|
—
|
|
|
—
|
|
|
568
|
|
||||
Total available-for-sale and other securities
|
$
|
15,777
|
|
|
$
|
48
|
|
|
$
|
(262
|
)
|
|
$
|
15,563
|
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
1,660
|
|
|
$
|
(19
|
)
|
|
$
|
4,520
|
|
|
$
|
(159
|
)
|
|
$
|
6,180
|
|
|
$
|
(178
|
)
|
Residential MBS
|
1,078
|
|
|
(5
|
)
|
|
11
|
|
|
—
|
|
|
1,089
|
|
|
(5
|
)
|
||||||
Commercial MBS
|
960
|
|
|
(15
|
)
|
|
1,527
|
|
|
(37
|
)
|
|
2,487
|
|
|
(52
|
)
|
||||||
Other agencies
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
||||||
Total Federal agency, and other agency securities
|
3,737
|
|
|
(39
|
)
|
|
6,058
|
|
|
(196
|
)
|
|
9,795
|
|
|
(235
|
)
|
||||||
Municipal securities
|
1,681
|
|
|
(21
|
)
|
|
497
|
|
|
(14
|
)
|
|
2,178
|
|
|
(35
|
)
|
||||||
Asset-backed securities
|
127
|
|
|
(1
|
)
|
|
173
|
|
|
(15
|
)
|
|
300
|
|
|
(16
|
)
|
||||||
Corporate debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
5,545
|
|
|
$
|
(61
|
)
|
|
$
|
6,728
|
|
|
$
|
(225
|
)
|
|
$
|
12,273
|
|
|
$
|
(286
|
)
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
5,858
|
|
|
$
|
(150
|
)
|
|
$
|
21
|
|
|
$
|
(1
|
)
|
|
$
|
5,879
|
|
|
$
|
(151
|
)
|
Residential MBS
|
31
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
31
|
|
|
(1
|
)
|
||||||
Commercial MBS
|
3,019
|
|
|
(39
|
)
|
|
21
|
|
|
—
|
|
|
3,040
|
|
|
(39
|
)
|
||||||
Other agencies
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total Federal agency, and other agency securities
|
8,909
|
|
|
(190
|
)
|
|
42
|
|
|
(1
|
)
|
|
8,951
|
|
|
(191
|
)
|
||||||
Municipal securities
|
1,412
|
|
|
(29
|
)
|
|
272
|
|
|
(10
|
)
|
|
1,684
|
|
|
(39
|
)
|
||||||
Asset-backed securities
|
361
|
|
|
(3
|
)
|
|
179
|
|
|
(29
|
)
|
|
540
|
|
|
(32
|
)
|
||||||
Corporate debt
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Other securities
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
10,687
|
|
|
$
|
(222
|
)
|
|
$
|
495
|
|
|
$
|
(40
|
)
|
|
$
|
11,182
|
|
|
$
|
(262
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Gross gains on sales of securities
|
$
|
10
|
|
|
$
|
23
|
|
|
$
|
7
|
|
Gross (losses) on sales of securities
|
(10
|
)
|
|
(21
|
)
|
|
(4
|
)
|
|||
Net gain (loss) on sales of securities
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
3
|
|
OTTI recognized in earnings
|
(4
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|||
Net securities gains (losses)
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
(dollar amounts in millions)
|
Par Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Unrealized
Loss (1)
|
||||||||
MM Comm III
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
||||
Tropic III
|
31
|
|
|
31
|
|
|
20
|
|
|
(11
|
)
|
||||
Total at December 31, 2017
|
$
|
35
|
|
|
$
|
35
|
|
|
$
|
24
|
|
|
$
|
(11
|
)
|
Total at December 31, 2016
|
$
|
137
|
|
|
$
|
101
|
|
|
$
|
76
|
|
|
$
|
(25
|
)
|
(1)
|
One of the two remaining securities in the portfolio has been in a continuous loss position for 12 months or longer.
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Available-for-sale and other securities:
|
|
|
|
|
|
||||||
Collateralized Debt Obligations
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Municipal Securities
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Total available-for-sale and other securities
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Balance, beginning of year
|
$
|
12
|
|
|
$
|
18
|
|
|
$
|
31
|
|
Reductions from sales
|
(15
|
)
|
|
(8
|
)
|
|
(15
|
)
|
|||
Credit losses not previously recognized
|
4
|
|
|
2
|
|
|
—
|
|
|||
Additional credit losses
|
—
|
|
|
—
|
|
|
2
|
|
|||
Balance, end of year
|
$
|
1
|
|
|
$
|
12
|
|
|
$
|
18
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 5 years through 10 years
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 10 years
|
3,714
|
|
|
3,657
|
|
|
4,189
|
|
|
4,163
|
|
||||
Total Residential CMO
|
3,714
|
|
|
3,657
|
|
|
4,189
|
|
|
4,163
|
|
||||
Residential MBS:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 5 years through 10 years
|
28
|
|
|
28
|
|
|
15
|
|
|
15
|
|
||||
After 10 years
|
1,021
|
|
|
1,016
|
|
|
83
|
|
|
86
|
|
||||
Total Residential MBS
|
1,049
|
|
|
1,044
|
|
|
98
|
|
|
101
|
|
||||
Commercial MBS:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After 1 year through 5 years
|
38
|
|
|
37
|
|
|
—
|
|
|
—
|
|
||||
After 5 years through 10 years
|
1
|
|
|
1
|
|
|
26
|
|
|
25
|
|
||||
After 10 years
|
3,752
|
|
|
3,698
|
|
|
2,885
|
|
|
2,891
|
|
||||
Total Commercial MBS
|
3,791
|
|
|
3,736
|
|
|
2,911
|
|
|
2,916
|
|
||||
Other agencies:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 1 year through 5 years
|
7
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||
After 5 years through 10 years
|
362
|
|
|
360
|
|
|
399
|
|
|
399
|
|
||||
After 10 years
|
163
|
|
|
161
|
|
|
204
|
|
|
202
|
|
||||
Total other agencies
|
532
|
|
|
529
|
|
|
603
|
|
|
601
|
|
||||
Total Federal agencies and other agencies
|
9,086
|
|
|
8,966
|
|
|
7,801
|
|
|
7,781
|
|
||||
Municipal securities:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 5 years through 10 years
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
After 10 years
|
5
|
|
|
5
|
|
|
6
|
|
|
6
|
|
||||
Total Municipal securities
|
5
|
|
|
5
|
|
|
6
|
|
|
6
|
|
||||
Total held-to-maturity securities
|
$
|
9,091
|
|
|
$
|
8,971
|
|
|
$
|
7,807
|
|
|
$
|
7,787
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
3,714
|
|
|
$
|
1
|
|
|
$
|
(58
|
)
|
|
$
|
3,657
|
|
Residential MBS
|
1,049
|
|
|
2
|
|
|
(7
|
)
|
|
1,044
|
|
||||
Commercial MBS
|
3,791
|
|
|
—
|
|
|
(55
|
)
|
|
3,736
|
|
||||
Other agencies
|
532
|
|
|
1
|
|
|
(4
|
)
|
|
529
|
|
||||
Total Federal agencies and other agencies
|
9,086
|
|
|
4
|
|
|
(124
|
)
|
|
8,966
|
|
||||
Municipal securities
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Total held-to-maturity securities
|
$
|
9,091
|
|
|
$
|
4
|
|
|
$
|
(124
|
)
|
|
$
|
8,971
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
4,189
|
|
|
$
|
7
|
|
|
$
|
(33
|
)
|
|
$
|
4,163
|
|
Residential MBS
|
98
|
|
|
3
|
|
|
—
|
|
|
101
|
|
||||
Commercial MBS
|
2,911
|
|
|
10
|
|
|
(5
|
)
|
|
2,916
|
|
||||
Other agencies
|
603
|
|
|
2
|
|
|
(4
|
)
|
|
601
|
|
||||
Total Federal agencies and other agencies
|
7,801
|
|
|
22
|
|
|
(42
|
)
|
|
7,781
|
|
||||
Municipal securities
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Total held-to-maturity securities
|
$
|
7,807
|
|
|
$
|
22
|
|
|
$
|
(42
|
)
|
|
$
|
7,787
|
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
2,369
|
|
|
$
|
(26
|
)
|
|
$
|
1,019
|
|
|
$
|
(32
|
)
|
|
$
|
3,388
|
|
|
$
|
(58
|
)
|
Residential MBS
|
974
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
974
|
|
|
(7
|
)
|
||||||
Commercial MBS
|
3,456
|
|
|
(49
|
)
|
|
253
|
|
|
(6
|
)
|
|
3,709
|
|
|
(55
|
)
|
||||||
Other agencies
|
249
|
|
|
(2
|
)
|
|
139
|
|
|
(2
|
)
|
|
388
|
|
|
(4
|
)
|
||||||
Total Federal agencies and other agencies
|
7,048
|
|
|
(84
|
)
|
|
1,411
|
|
|
(40
|
)
|
|
8,459
|
|
|
(124
|
)
|
||||||
Municipal securities
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
7,048
|
|
|
$
|
(84
|
)
|
|
$
|
1,416
|
|
|
$
|
(40
|
)
|
|
$
|
8,464
|
|
|
$
|
(124
|
)
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
2,483
|
|
|
$
|
(26
|
)
|
|
$
|
186
|
|
|
$
|
(7
|
)
|
|
$
|
2,669
|
|
|
$
|
(33
|
)
|
Residential MBS
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||||
Commercial MBS
|
352
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
352
|
|
|
(5
|
)
|
||||||
Other agencies
|
414
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
414
|
|
|
(4
|
)
|
||||||
Total Federal agencies and other agencies
|
3,269
|
|
|
(35
|
)
|
|
186
|
|
|
(7
|
)
|
|
3,455
|
|
|
(42
|
)
|
||||||
Municipal securities
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
3,275
|
|
|
$
|
(35
|
)
|
|
$
|
186
|
|
|
$
|
(7
|
)
|
|
$
|
3,461
|
|
|
$
|
(42
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Residential mortgage loans sold with servicing retained
|
$
|
3,985
|
|
|
$
|
3,632
|
|
|
$
|
3,323
|
|
Pretax gains resulting from above loan sales (1)
|
99
|
|
|
97
|
|
|
83
|
|
(1)
|
Recorded in mortgage banking income.
|
|
|
|
|
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Carrying value, beginning of year
|
$
|
172
|
|
|
$
|
143
|
|
New servicing assets created
|
44
|
|
|
38
|
|
||
Servicing assets acquired
|
—
|
|
|
15
|
|
||
Impairment recovery (charge)
|
1
|
|
|
2
|
|
||
Amortization and other
|
(26
|
)
|
|
(26
|
)
|
||
Carrying value, end of year
|
$
|
191
|
|
|
$
|
172
|
|
Fair value, end of year
|
$
|
191
|
|
|
$
|
173
|
|
Weighted-average life (years)
|
7.1
|
|
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
|
|
Decline in fair value due to
|
|
|
|
Decline in fair value due to
|
||||||||||||||
(dollar amounts in millions)
|
Actual
|
|
10%
adverse
change
|
|
20%
adverse
change
|
|
Actual
|
|
10%
adverse
change
|
|
20%
adverse
change
|
||||||||||
Constant prepayment rate
(annualized)
|
8.30
|
%
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
|
7.80
|
%
|
|
$
|
(5
|
)
|
|
$
|
(9
|
)
|
Spread over forward interest rate swap rates
|
1,049
|
bps
|
|
(7
|
)
|
|
(13
|
)
|
|
1,173
|
bps
|
|
(5
|
)
|
|
(10
|
)
|
|
Year Ended December 31,
|
||||||||
(dollar amounts in millions)
|
2017 (1)
|
|
2016
|
|
2015
|
||||
UPB of automobile loans securitized with servicing retained
|
$
|
—
|
|
|
1,500
|
|
|
750
|
|
Net proceeds received in loan securitizations
|
—
|
|
|
1,552
|
|
|
780
|
|
|
Servicing asset recognized in loan securitizations (2)
|
—
|
|
|
15
|
|
|
11
|
|
|
Pretax gains resulting from above loan securitizations (3)
|
—
|
|
|
6
|
|
|
5
|
|
(1)
|
Huntington did not sell or securitize any automobile loans in 2017.
|
(2)
|
Recorded in servicing rights.
|
(3)
|
Recorded in gain on sale of loans.
|
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Carrying value, beginning of year
|
$
|
18
|
|
|
$
|
9
|
|
New servicing assets created
|
—
|
|
|
15
|
|
||
Amortization and other
|
(10
|
)
|
|
(6
|
)
|
||
Carrying value, end of year
|
$
|
8
|
|
|
$
|
18
|
|
Fair value, end of year
|
$
|
9
|
|
|
$
|
18
|
|
Weighted-average life (years)
|
3.5
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
SBA loans sold with servicing retained
|
$
|
413
|
|
|
$
|
270
|
|
|
$
|
233
|
|
Pretax gains resulting from above loan sales (1)
|
32
|
|
|
21
|
|
|
19
|
|
(1)
|
Recorded in gain on sale of loans.
|
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Carrying value, beginning of year
|
$
|
21
|
|
|
$
|
20
|
|
New servicing assets created
|
14
|
|
|
9
|
|
||
Amortization and other
|
(8
|
)
|
|
(8
|
)
|
||
Carrying value, end of year
|
$
|
27
|
|
|
$
|
21
|
|
Fair value, end of year
|
$
|
30
|
|
|
$
|
24
|
|
Weighted-average life (years)
|
3.3
|
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer &
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Business
|
|
Commercial
|
|
Vehicle
|
|
|
|
Treasury/
|
|
Huntington
|
||||||||||||
(dollar amounts in millions)
|
Banking
|
|
Banking
|
|
Finance
|
|
RBHPCG
|
|
Other
|
|
Consolidated
|
||||||||||||
Balance, January 1, 2016
|
$
|
368
|
|
|
$
|
215
|
|
|
$
|
—
|
|
|
$
|
89
|
|
|
$
|
5
|
|
|
$
|
677
|
|
Goodwill acquired during the period
|
1,030
|
|
|
238
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
1,321
|
|
||||||
Adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Balance, December 31, 2016
|
1,398
|
|
|
453
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
1,993
|
|
||||||
Adjustments
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
||||||
Balance, December 31, 2017
|
$
|
1,398
|
|
|
$
|
425
|
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
$
|
1,993
|
|
(dollar amounts in millions)
|
Gross
Carrying Amount |
|
|
Accumulated
Amortization |
|
Net
Carrying Value |
||||||
December 31, 2017
|
|
|
|
|
|
|
||||||
Core deposit intangible
|
$
|
325
|
|
|
|
$
|
(61
|
)
|
|
$
|
264
|
|
Customer relationship
|
190
|
|
|
|
(108
|
)
|
|
82
|
|
|||
Total other intangible assets
|
$
|
515
|
|
|
|
$
|
(169
|
)
|
|
$
|
346
|
|
December 31, 2016
|
|
|
|
|
|
|
||||||
Core deposit intangible
|
$
|
325
|
|
|
|
$
|
(27
|
)
|
|
$
|
298
|
|
Customer relationship
|
195
|
|
(1)
|
|
(91
|
)
|
|
104
|
|
|||
Total other intangible assets
|
$
|
520
|
|
|
|
$
|
(118
|
)
|
|
$
|
402
|
|
(1)
|
During the 2016 third quarter, certain commercial merchant relationships, which resulted in an intangible of
$14 million
, were contributed to a joint venture in which Huntington holds a minority interest.
|
(dollar amounts in millions)
|
Amortization
Expense
|
||
2018
|
$
|
53
|
|
2019
|
50
|
|
|
2020
|
42
|
|
|
2021
|
40
|
|
|
2022
|
38
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Land and land improvements
|
$
|
193
|
|
|
$
|
199
|
|
Buildings
|
563
|
|
|
523
|
|
||
Leasehold improvements
|
240
|
|
|
265
|
|
||
Equipment
|
746
|
|
|
722
|
|
||
Total premises and equipment
|
1,742
|
|
|
1,709
|
|
||
Less accumulated depreciation and amortization
|
(878
|
)
|
|
(893
|
)
|
||
Net premises and equipment
|
$
|
864
|
|
|
$
|
816
|
|
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Total depreciation and amortization of premises and equipment
|
$
|
123
|
|
|
$
|
126
|
|
|
$
|
86
|
|
Rental income credited to occupancy expense
|
14
|
|
|
13
|
|
|
13
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
1,318
|
|
|
$
|
1,248
|
|
Federal Home Loan Bank advances
|
3,725
|
|
|
2,425
|
|
||
Other borrowings
|
13
|
|
|
20
|
|
||
Total short-term borrowings
|
$
|
5,056
|
|
|
$
|
3,693
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
The Parent Company:
|
|
|
|
||||
Senior Notes:
|
|
|
|
||||
3.19% Huntington Bancshares Incorporated medium-term notes due 2021
|
$
|
969
|
|
|
$
|
973
|
|
2.33% Huntington Bancshares Incorporated senior note due 2022
|
953
|
|
|
954
|
|
||
2.64% Huntington Bancshares Incorporated senior note due 2018
|
399
|
|
|
399
|
|
||
Subordinated Notes:
|
|
|
|
||||
7.00% Huntington Bancshares Incorporated subordinated notes due 2020
|
312
|
|
|
320
|
|
||
3.55% Huntington Bancshares Incorporated subordinated notes due 2023
|
245
|
|
|
248
|
|
||
Sky Financial Capital Trust IV 3.09% junior subordinated debentures due 2036 (1)
|
74
|
|
|
74
|
|
||
Sky Financial Capital Trust III 3.09% junior subordinated debentures due 2036 (1)
|
72
|
|
|
72
|
|
||
Huntington Capital I Trust Preferred 2.39% junior subordinated debentures due 2027 (2)
|
69
|
|
|
69
|
|
||
Huntington Capital II Trust Preferred 2.32% junior subordinated debentures due 2028 (3)
|
31
|
|
|
32
|
|
||
Camco Financial Statutory Trust I 3.02% due 2037 (4)
|
4
|
|
|
4
|
|
||
Total notes issued by the parent
|
3,128
|
|
|
3,145
|
|
||
The Bank:
|
|
|
|
||||
Senior Notes:
|
|
|
|
||||
2.24% Huntington National Bank senior notes due 2018
|
844
|
|
|
844
|
|
||
2.10% Huntington National Bank senior notes due 2018
|
748
|
|
|
747
|
|
||
2.47% Huntington National Bank senior notes due 2020
|
694
|
|
|
—
|
|
||
2.55% Huntington National Bank senior notes due 2022
|
685
|
|
|
—
|
|
||
2.43% Huntington National Bank senior notes due 2020
|
498
|
|
|
498
|
|
||
2.23% Huntington National Bank senior note due 2019
|
497
|
|
|
500
|
|
||
1.75% Huntington National Bank senior notes due 2018
|
496
|
|
|
500
|
|
||
2.97% Huntington National Bank senior notes due 2020
|
492
|
|
|
495
|
|
||
2.20% Huntington National Bank senior notes due 2020 (5)
|
300
|
|
|
—
|
|
||
5.04% Huntington National Bank medium-term notes due 2018
|
35
|
|
|
36
|
|
||
2.23% Huntington National Bank senior note due 2017
|
—
|
|
|
499
|
|
||
1.42% Huntington National Bank senior notes due 2017 (6)
|
—
|
|
|
250
|
|
||
Subordinated Notes:
|
|
|
|
||||
3.86% Huntington National Bank subordinated notes due 2026
|
238
|
|
|
239
|
|
||
6.67% Huntington National Bank subordinated notes due 2018
|
129
|
|
|
132
|
|
||
5.45% Huntington National Bank subordinated notes due 2019
|
77
|
|
|
81
|
|
||
Total notes issued by the bank
|
5,733
|
|
|
4,821
|
|
||
FHLB Advances:
|
|
|
|
||||
3.51% weighted average rate, varying maturities greater than one year
|
7
|
|
|
8
|
|
||
Other:
|
|
|
|
||||
Huntington Technology Finance nonrecourse debt, 3.63% effective interest rate, varying maturities
|
263
|
|
|
278
|
|
||
3.57% Huntington Preferred Capital II - Class F securities (7)
|
75
|
|
|
—
|
|
||
Huntington Technology Finance ABS Trust 2014 1.70% due 2020
|
—
|
|
|
57
|
|
||
Total other
|
338
|
|
|
335
|
|
||
Total long-term debt
|
$
|
9,206
|
|
|
$
|
8,309
|
|
(1)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
1.400%
.
|
(2)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
0.70%
|
(3)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
0.625%
.
|
(4)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
1.33%
.
|
(5)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
0.51%
|
(6)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
0.425%
.
|
(7)
|
Variable effective rate at
December 31, 2017
, based on
three-month LIBOR
+
1.880%
.
|
(dollar amounts in millions)
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
||||||||||||||
The Parent Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
$
|
400
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
2,400
|
|
Subordinated notes
|
—
|
|
|
—
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
504
|
|
|
804
|
|
|||||||
The Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
2,135
|
|
|
500
|
|
|
2,000
|
|
|
—
|
|
|
700
|
|
|
—
|
|
|
5,335
|
|
|||||||
Subordinated notes
|
125
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|
526
|
|
|||||||
FHLB Advances
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
7
|
|
|||||||
Other
|
27
|
|
|
43
|
|
|
95
|
|
|
48
|
|
|
50
|
|
|
—
|
|
|
263
|
|
|||||||
Total
|
$
|
2,688
|
|
|
$
|
619
|
|
|
$
|
2,397
|
|
|
$
|
1,048
|
|
|
$
|
1,750
|
|
|
$
|
833
|
|
|
$
|
9,335
|
|
|
2017
|
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
(87
|
)
|
|
31
|
|
|
(56
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
26
|
|
|
(9
|
)
|
|
17
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(57
|
)
|
|
20
|
|
|
(37
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
|
3
|
|
|
(1
|
)
|
|
2
|
|
|||
Less: Reclassification adjustment for net (gains) losses included in net income
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
|
4
|
|
|
(1
|
)
|
|
3
|
|
|||
Net change in pension and other post-retirement obligations
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total other comprehensive income (loss)
|
$
|
(52
|
)
|
|
$
|
18
|
|
|
$
|
(34
|
)
|
|
2016
|
||||||||||
|
|
|
Tax (expense)
|
|
|
||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
(203
|
)
|
|
70
|
|
|
(133
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
(107
|
)
|
|
38
|
|
|
(69
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(309
|
)
|
|
108
|
|
|
(201
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Less: Reclassification adjustment for net (gains) losses included in net income
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Net change in pension and other post-retirement obligations
|
38
|
|
|
(13
|
)
|
|
25
|
|
|||
Total other comprehensive income (loss)
|
$
|
(269
|
)
|
|
$
|
94
|
|
|
$
|
(175
|
)
|
|
2015
|
||||||||||
|
|
|
Tax (expense)
|
|
|
||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
20
|
|
|
$
|
(7
|
)
|
|
$
|
13
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
(26
|
)
|
|
9
|
|
|
(17
|
)
|
|||
Less: Reclassification adjustment for net gains (losses) included in net income
|
(4
|
)
|
|
1
|
|
|
(3
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(10
|
)
|
|
3
|
|
|
(7
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unrealized gains and losses on derivatives used in cash flow hedging relationships arising during the period
|
13
|
|
|
(4
|
)
|
|
9
|
|
|||
Less: Reclassification adjustment for net losses (gains) losses included in net income
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
|
12
|
|
|
(4
|
)
|
|
8
|
|
|||
Defined benefit pension items
|
(8
|
)
|
|
3
|
|
|
(5
|
)
|
|||
Net change in pension and post-retirement obligations
|
(8
|
)
|
|
3
|
|
|
(5
|
)
|
|||
Total other comprehensive income (loss)
|
$
|
(6
|
)
|
|
$
|
2
|
|
|
$
|
(4
|
)
|
(dollar amounts in millions)
|
Unrealized
gains (losses) on
debt
securities (1)
|
|
Unrealized
gains (losses) on
equity
securities
|
|
Unrealized
gains (losses) on
cash flow hedging
derivatives
|
|
Unrealized
gains (losses) for
pension and other
post-retirement
obligations
|
|
Total
|
||||||||||
December 31, 2015
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(230
|
)
|
|
$
|
(226
|
)
|
Other comprehensive income before reclassifications
|
(132
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(131
|
)
|
|||||
Amounts reclassified from accumulated OCI to earnings
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
25
|
|
|
(44
|
)
|
|||||
Period change
|
(201
|
)
|
|
—
|
|
|
1
|
|
|
25
|
|
|
(175
|
)
|
|||||
December 31, 2016
|
(193
|
)
|
|
—
|
|
|
(3
|
)
|
|
(205
|
)
|
|
(401
|
)
|
|||||
Other comprehensive income before reclassifications
|
(54
|
)
|
|
—
|
|
|
2
|
|
|
(10
|
)
|
|
(62
|
)
|
|||||
Amounts reclassified from accumulated OCI to earnings
|
17
|
|
|
—
|
|
|
1
|
|
|
10
|
|
|
28
|
|
|||||
Period change
|
(37
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(34
|
)
|
|||||
TCJA, Reclassification from accumulated OCI to retained earnings
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
(93
|
)
|
|||||
December 31, 2017
|
$
|
(278
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(250
|
)
|
|
$
|
(528
|
)
|
(1)
|
Amount at
December 31, 2017
includes
$95 million
of net unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.
|
|
Reclassifications out of accumulated OCI
|
||||||||
Accumulated OCI components
|
Amounts reclassified
from accumulated OCI
|
|
Location of net gain (loss)
reclassified from accumulated OCI into earnings
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(8
|
)
|
|
$
|
91
|
|
|
Interest income—held-to-maturity securities—taxable
|
Realized gain (loss) on sale of securities
|
(14
|
)
|
|
18
|
|
|
Noninterest income—net gains (losses) on sale of securities
|
||
OTTI recorded
|
(4
|
)
|
|
(2
|
)
|
|
Noninterest income—net gains (losses) on sale of securities
|
||
Total before tax
|
(26
|
)
|
|
107
|
|
|
|
||
Tax (expense) benefit
|
9
|
|
|
(38
|
)
|
|
|
||
Net of tax
|
$
|
(17
|
)
|
|
$
|
69
|
|
|
|
Gains (losses) on cash flow hedging relationships:
|
|
|
|
|
|
||||
Interest rate contracts
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Interest and fee income—loans and leases
|
Interest rate contracts
|
—
|
|
|
—
|
|
|
Noninterest expense—other income
|
||
Total before tax
|
(1
|
)
|
|
—
|
|
|
|
||
Tax (expense) benefit
|
—
|
|
|
—
|
|
|
|
||
Net of tax
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|
|
|
|
|
||||
Actuarial gains (losses)
|
$
|
(18
|
)
|
|
$
|
(40
|
)
|
|
Noninterest expense—personnel costs
|
Net periodic benefit costs
|
2
|
|
|
2
|
|
|
Noninterest expense—personnel costs
|
||
Total before tax
|
(16
|
)
|
|
(38
|
)
|
|
|
||
Tax (expense) benefit
|
6
|
|
|
13
|
|
|
|
||
Net of tax
|
$
|
(10
|
)
|
|
$
|
(25
|
)
|
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions, except per share amounts)
|
2017
|
|
2016
|
|
2015
|
||||||
Basic earnings per common share:
|
|
|
|
|
|
||||||
Net income
|
$
|
1,186
|
|
|
$
|
712
|
|
|
$
|
693
|
|
Preferred stock dividends
|
(76
|
)
|
|
(65
|
)
|
|
(32
|
)
|
|||
Net income available to common shareholders
|
$
|
1,110
|
|
|
$
|
647
|
|
|
$
|
661
|
|
Average common shares issued and outstanding (000)
|
1,084,686
|
|
|
904,438
|
|
|
803,412
|
|
|||
Basic earnings per common share
|
$
|
1.02
|
|
|
$
|
0.72
|
|
|
$
|
0.82
|
|
Diluted earnings per common share:
|
|
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
1,110
|
|
|
$
|
647
|
|
|
$
|
661
|
|
Effect of assumed preferred stock conversion
|
31
|
|
|
—
|
|
|
—
|
|
|||
Net income applicable to diluted earnings per share
|
$
|
1,141
|
|
|
$
|
647
|
|
|
$
|
661
|
|
Average common shares issued and outstanding (000)
|
1,084,686
|
|
|
904,438
|
|
|
803,412
|
|
|||
Dilutive potential common shares
|
|
|
|
|
|
||||||
Stock options and restricted stock units and awards
|
17,883
|
|
|
11,728
|
|
|
11,633
|
|
|||
Shares held in deferred compensation plans
|
3,160
|
|
|
2,486
|
|
|
1,912
|
|
|||
Other
|
30,457
|
|
|
138
|
|
|
172
|
|
|||
Dilutive potential common shares
|
51,500
|
|
|
14,352
|
|
|
13,717
|
|
|||
Total diluted average common shares issued and outstanding (000)
|
1,136,186
|
|
|
918,790
|
|
|
817,129
|
|
|||
Diluted earnings per common share
|
$
|
1.00
|
|
|
$
|
0.70
|
|
|
$
|
0.81
|
|
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Share-based compensation expense
|
$
|
92
|
|
|
$
|
66
|
|
|
$
|
51
|
|
Tax benefit
|
32
|
|
|
22
|
|
|
18
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Assumptions
|
|
|
|
|
|
||||||
Risk-free interest rate
|
2.04
|
%
|
|
1.63
|
%
|
|
2.13
|
%
|
|||
Expected dividend yield
|
3.31
|
|
|
3.18
|
|
|
2.57
|
|
|||
Expected volatility of Huntington’s common stock
|
29.5
|
|
|
30.0
|
|
|
29.0
|
|
|||
Expected option term (years)
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
|||
Weighted-average grant date fair value per share
|
$
|
2.81
|
|
|
$
|
2.17
|
|
|
$
|
2.57
|
|
(dollar amounts in millions, except per share and options amounts)
|
Options
(in thousands)
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding at January 1, 2017
|
14,874
|
|
|
$
|
7.50
|
|
|
|
|
|
||
Granted
|
1,486
|
|
|
13.09
|
|
|
|
|
|
|||
Exercised
|
(2,372
|
)
|
|
6.72
|
|
|
|
|
|
|||
Forfeited/expired
|
(70
|
)
|
|
11.17
|
|
|
|
|
|
|||
Outstanding at December 31, 2017
|
13,918
|
|
|
$
|
8.21
|
|
|
3.5
|
|
$
|
88
|
|
Expected to vest (1)
|
3,508
|
|
|
$
|
11.33
|
|
|
8.0
|
|
$
|
11
|
|
Exercisable at December 31, 2017
|
10,311
|
|
|
$
|
7.11
|
|
|
1.9
|
|
$
|
77
|
|
(1)
|
The number of options expected to vest includes an estimate of
99 thousand
shares expected to be forfeited.
|
|
Restricted Stock Awards
|
|
Restricted Stock Units
|
|
Performance Share Awards
|
|||||||||||||||
(amounts in thousands, except per share amounts)
|
Quantity
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|
Quantity
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|
Quantity
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|||||||||
Nonvested at January 1, 2017 (000)
|
656
|
|
|
$
|
9.68
|
|
|
14,733
|
|
|
$
|
9.61
|
|
|
3,307
|
|
|
$
|
9.63
|
|
Granted
|
—
|
|
|
—
|
|
|
6,232
|
|
|
13.45
|
|
|
1,278
|
|
|
12.18
|
|
|||
Assumed
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Vested
|
(174
|
)
|
|
9.68
|
|
|
(4,267
|
)
|
|
8.72
|
|
|
(1,550
|
)
|
|
9.00
|
|
|||
Forfeited
|
(34
|
)
|
|
9.68
|
|
|
(539
|
)
|
|
10.91
|
|
|
(17
|
)
|
|
11.07
|
|
|||
Nonvested at December 31, 2017 (000)
|
448
|
|
|
$
|
9.68
|
|
|
16,159
|
|
|
$
|
11.26
|
|
|
3,018
|
|
|
$
|
10.67
|
|
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Weighted-average assumptions used to determine benefit obligations
|
|
|
|
|
|
|
|
||||
Discount rate
|
3.73
|
%
|
|
4.38
|
%
|
|
3.34
|
%
|
|
3.64
|
%
|
Rate of compensation increase
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Weighted-average assumptions used to determine net periodic benefit cost
|
|
|
|
|
|
|
|
||||
Discount rate
|
4.38
|
|
|
4.54
|
|
|
3.64
|
|
|
3.81
|
|
Expected return on plan assets
|
6.50
|
|
|
6.75
|
|
|
N/A
|
|
|
N/A
|
|
Rate of compensation increase
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
N/A—Not Applicable
|
|
|
|
|
|
|
|
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Projected benefit obligation at beginning of measurement year
|
$
|
851
|
|
|
$
|
1,084
|
|
|
$
|
14
|
|
|
$
|
15
|
|
Changes due to:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
3
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(27
|
)
|
|
(20
|
)
|
|
(2
|
)
|
|
(1
|
)
|
||||
Settlements
|
(31
|
)
|
|
(203
|
)
|
|
(4
|
)
|
|
—
|
|
||||
Plan amendments
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Actuarial assumptions and gains and losses
|
74
|
|
|
(45
|
)
|
|
1
|
|
|
—
|
|
||||
Total changes
|
49
|
|
|
(233
|
)
|
|
(7
|
)
|
|
(1
|
)
|
||||
Projected benefit obligation at end of measurement year
|
$
|
900
|
|
|
$
|
851
|
|
|
$
|
7
|
|
|
$
|
14
|
|
|
Pension Benefits
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Fair value of plan assets at beginning of measurement year
|
$
|
841
|
|
|
$
|
874
|
|
Changes due to:
|
|
|
|
||||
Actual return on plan assets
|
118
|
|
|
37
|
|
||
Employer Contributions
|
—
|
|
|
150
|
|
||
Settlements
|
(29
|
)
|
|
(199
|
)
|
||
Benefits paid
|
(27
|
)
|
|
(21
|
)
|
||
Total changes
|
62
|
|
|
(33
|
)
|
||
Fair value of plan assets at end of measurement year
|
$
|
903
|
|
|
$
|
841
|
|
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||||||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Service cost
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
30
|
|
|
30
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Expected return on plan assets
|
(55
|
)
|
|
(45
|
)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Amortization of (gain) / loss
|
7
|
|
|
7
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
11
|
|
|
(8
|
)
|
|
12
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Benefit costs
|
$
|
(4
|
)
|
|
$
|
(11
|
)
|
|
$
|
10
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
|
Fair Value
|
||||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||
Mutual Funds-money market
|
$
|
14
|
|
|
2
|
%
|
|
$
|
21
|
|
|
3
|
%
|
U.S. Treasury bills
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
Fixed income:
|
|
|
|
|
|
|
|
|
|||||
Corporate obligations
|
293
|
|
|
32
|
|
|
218
|
|
|
26
|
|
||
U.S. Government obligations
|
216
|
|
|
24
|
|
|
165
|
|
|
19
|
|
||
Mutual funds-fixed income
|
—
|
|
|
—
|
|
|
51
|
|
|
6
|
|
||
U.S. Government Agencies
|
23
|
|
|
3
|
|
|
10
|
|
|
1
|
|
||
Equities:
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds-equities
|
118
|
|
|
13
|
|
|
150
|
|
|
18
|
|
||
Common stock
|
158
|
|
|
17
|
|
|
182
|
|
|
22
|
|
||
Preferred stock
|
5
|
|
|
1
|
|
|
5
|
|
|
1
|
|
||
Exchange Traded Funds
|
58
|
|
|
6
|
|
|
28
|
|
|
3
|
|
||
Limited Partnerships
|
13
|
|
|
1
|
|
|
11
|
|
|
1
|
|
||
Fair value of plan assets
|
$
|
903
|
|
|
100
|
%
|
|
$
|
841
|
|
|
100
|
%
|
(dollar amounts in millions)
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||
2018
|
$
|
50
|
|
|
$
|
1
|
|
2019
|
49
|
|
|
1
|
|
||
2020
|
48
|
|
|
1
|
|
||
2021
|
47
|
|
|
1
|
|
||
2022
|
47
|
|
|
1
|
|
||
2023 through 2027
|
233
|
|
|
2
|
|
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Noncurrent liabilities
|
$
|
78
|
|
|
$
|
189
|
|
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Net actuarial loss
|
$
|
(264
|
)
|
|
$
|
(217
|
)
|
|
$
|
(244
|
)
|
Prior service cost
|
14
|
|
|
12
|
|
|
14
|
|
|||
Defined benefit pension plans
|
$
|
(250
|
)
|
|
$
|
(205
|
)
|
|
$
|
(230
|
)
|
|
2017
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Tax (expense) Benefit
|
|
After-tax
|
||||||
Balance, beginning of year
|
$
|
(316
|
)
|
|
$
|
111
|
|
|
$
|
(205
|
)
|
Net actuarial (loss) gain:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
(16
|
)
|
|
6
|
|
|
(10
|
)
|
|||
Amortization included in net periodic benefit costs
|
18
|
|
|
(7
|
)
|
|
11
|
|
|||
TCJA, Reclassification from accumulated OCI to retained earnings
|
|
|
|
|
(47
|
)
|
|||||
Prior service cost:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization included in net periodic benefit costs
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|||
TCJA, Reclassification from accumulated OCI to retained earnings
|
|
|
|
|
2
|
|
|||||
Balance, end of year
|
$
|
(316
|
)
|
|
$
|
111
|
|
|
$
|
(250
|
)
|
|
2016
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Tax (expense) Benefit
|
|
After-tax
|
||||||
Balance, beginning of year
|
$
|
(354
|
)
|
|
$
|
124
|
|
|
$
|
(230
|
)
|
Net actuarial (loss) gain:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
38
|
|
|
(13
|
)
|
|
25
|
|
|||
Amortization included in net periodic benefit costs
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Prior service cost:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization included in net periodic benefit costs
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|||
Balance, end of year
|
$
|
(316
|
)
|
|
$
|
111
|
|
|
$
|
(205
|
)
|
|
2015
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Tax (expense) Benefit
|
|
After-tax
|
||||||
Balance, beginning of year
|
$
|
(347
|
)
|
|
$
|
121
|
|
|
$
|
(226
|
)
|
Net actuarial (loss) gain:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
(25
|
)
|
|
9
|
|
|
(16
|
)
|
|||
Amortization included in net periodic benefit costs
|
20
|
|
|
(7
|
)
|
|
13
|
|
|||
Prior service cost:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization included in net periodic benefit costs
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|||
Balance, end of year
|
$
|
(354
|
)
|
|
$
|
124
|
|
|
$
|
(230
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Defined contribution plan
|
$
|
35
|
|
|
$
|
36
|
|
|
$
|
32
|
|
|
December 31,
|
||||||
(dollar amounts in millions, except share amounts)
|
2017
|
|
2016
|
||||
Shares in Huntington common stock (000)
|
13,566
|
|
|
11,748
|
|
||
Market value of Huntington common stock
|
$
|
198
|
|
|
$
|
162
|
|
Dividends received on shares of Huntington stock
|
4
|
|
|
4
|
|
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Unrecognized tax benefits at beginning of year
|
$
|
24
|
|
|
$
|
23
|
|
Gross increases for tax positions taken during current period
|
—
|
|
|
1
|
|
||
Gross increases for tax positions taken during prior years
|
26
|
|
|
—
|
|
||
Unrecognized tax benefits at end of year
|
$
|
50
|
|
|
$
|
24
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Current tax provision (benefit)
|
|
|
|
|
|
||||||
Federal
|
$
|
41
|
|
|
$
|
40
|
|
|
$
|
146
|
|
State
|
(1
|
)
|
|
3
|
|
|
6
|
|
|||
Total current tax provision (benefit)
|
40
|
|
|
43
|
|
|
152
|
|
|||
Deferred tax provision (benefit)
|
|
|
|
|
|
||||||
Federal
|
151
|
|
|
161
|
|
|
67
|
|
|||
State
|
17
|
|
|
4
|
|
|
2
|
|
|||
Total deferred tax provision (benefit)
|
168
|
|
|
165
|
|
|
69
|
|
|||
Provision (benefit) for income taxes
|
$
|
208
|
|
|
$
|
208
|
|
|
$
|
221
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Provision for income taxes computed at the statutory rate
|
$
|
488
|
|
|
$
|
322
|
|
|
$
|
320
|
|
Increases (decreases):
|
|
|
|
|
|
||||||
Tax-exempt income
|
(31
|
)
|
|
(27
|
)
|
|
(21
|
)
|
|||
Tax-exempt bank owned life insurance income
|
(23
|
)
|
|
(20
|
)
|
|
(18
|
)
|
|||
General business credits
|
(71
|
)
|
|
(64
|
)
|
|
(48
|
)
|
|||
Capital loss
|
(67
|
)
|
|
(46
|
)
|
|
(46
|
)
|
|||
Impact from TCJA
|
(123
|
)
|
|
—
|
|
|
—
|
|
|||
Affordable housing investment amortization, net of tax benefits
|
46
|
|
|
37
|
|
|
32
|
|
|||
State income taxes, net
|
11
|
|
|
5
|
|
|
5
|
|
|||
Stock based compensation
|
(13
|
)
|
|
(4
|
)
|
|
—
|
|
|||
Other
|
(9
|
)
|
|
5
|
|
|
(3
|
)
|
|||
Provision (benefit) for income taxes
|
$
|
208
|
|
|
$
|
208
|
|
|
$
|
221
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017 (1)
|
|
2016 (2)
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowances for credit losses
|
$
|
162
|
|
|
$
|
255
|
|
Tax credit carryforward
|
153
|
|
|
76
|
|
||
Fair value adjustments
|
142
|
|
|
217
|
|
||
Net operating and other loss carryforward
|
108
|
|
|
141
|
|
||
Accrued expense/prepaid
|
17
|
|
|
64
|
|
||
Market discount
|
10
|
|
|
8
|
|
||
Pension and other employee benefits
|
—
|
|
|
35
|
|
||
Partnership investments
|
7
|
|
|
23
|
|
||
Other assets
|
6
|
|
|
11
|
|
||
Total deferred tax assets
|
605
|
|
|
830
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Lease financing
|
249
|
|
|
325
|
|
||
Loan origination costs
|
116
|
|
|
138
|
|
||
Deferred dividend income
|
77
|
|
|
—
|
|
||
Purchase accounting adjustments
|
68
|
|
|
74
|
|
||
Operating assets
|
53
|
|
|
54
|
|
||
Mortgage servicing rights
|
39
|
|
|
51
|
|
||
Securities adjustments
|
6
|
|
|
56
|
|
||
Pension and other employee benefits
|
5
|
|
|
—
|
|
||
Other liabilities
|
18
|
|
|
9
|
|
||
Total deferred tax liabilities
|
631
|
|
|
707
|
|
||
Net deferred tax (liability) asset before valuation allowance
|
(26
|
)
|
|
123
|
|
||
Valuation allowance
|
(6
|
)
|
|
(5
|
)
|
||
Net deferred tax (liability) asset
|
$
|
(32
|
)
|
|
$
|
118
|
|
(1)
|
2017 balances reflect federal statutory tax rate
21%
.
|
(2)
|
2016 balances reflect federal statutory tax rate
35%
.
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
December 31, 2017
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale
|
$
|
—
|
|
|
$
|
413
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
413
|
|
Loans held for investment
|
—
|
|
|
55
|
|
|
38
|
|
|
—
|
|
|
93
|
|
|||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other securities
|
83
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|||||
|
83
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|||||
Available-for-sale and other securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Residential CMOs
|
—
|
|
|
6,484
|
|
|
—
|
|
|
—
|
|
|
6,484
|
|
|||||
Residential MBS
|
|
|
1,367
|
|
|
|
|
|
|
1,367
|
|
||||||||
Commercial MBS
|
|
|
2,487
|
|
|
|
|
|
|
2,487
|
|
||||||||
Other agencies
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|||||
Municipal securities
|
—
|
|
|
711
|
|
|
3,167
|
|
|
—
|
|
|
3,878
|
|
|||||
Asset-backed securities
|
—
|
|
|
443
|
|
|
24
|
|
|
—
|
|
|
467
|
|
|||||
Corporate debt
|
—
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|||||
Other securities
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
|
25
|
|
|
11,672
|
|
|
3,191
|
|
|
—
|
|
|
14,888
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Derivative assets
|
—
|
|
|
316
|
|
|
6
|
|
|
(190
|
)
|
|
132
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
326
|
|
|
5
|
|
|
(245
|
)
|
|
86
|
|
|||||
Short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
December 31, 2016
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale
|
$
|
—
|
|
|
$
|
438
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
438
|
|
Loans held for investment
|
—
|
|
|
34
|
|
|
48
|
|
|
—
|
|
|
82
|
|
|||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Other securities
|
132
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
132
|
|
|||||
|
132
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
133
|
|
|||||
Available-for-sale and other securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Residential CMOs
|
—
|
|
|
6,810
|
|
|
—
|
|
|
—
|
|
|
6,810
|
|
|||||
Residential MBS
|
|
|
200
|
|
|
|
|
|
|
200
|
|
||||||||
Commercial MBS
|
|
|
3,663
|
|
|
|
|
|
|
3,663
|
|
||||||||
Other agencies
|
—
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|||||
Municipal securities
|
—
|
|
|
452
|
|
|
2,798
|
|
|
—
|
|
|
3,250
|
|
|||||
Asset-backed securities
|
—
|
|
|
718
|
|
|
76
|
|
|
—
|
|
|
794
|
|
|||||
Corporate debt
|
—
|
|
|
199
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|||||
Other securities
|
16
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||
|
22
|
|
|
12,119
|
|
|
2,874
|
|
|
—
|
|
|
15,015
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|||||
Derivative assets
|
—
|
|
|
414
|
|
|
6
|
|
|
(182
|
)
|
|
238
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
363
|
|
|
8
|
|
|
(272
|
)
|
|
99
|
|
|||||
Short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2017 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
14
|
|
|
$
|
(2
|
)
|
|
$
|
2,798
|
|
|
$
|
76
|
|
|
$
|
48
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers out of Level 3 (1)
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(3
|
)
|
|
16
|
|
|
(2
|
)
|
|
(5
|
)
|
|
1
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
14
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
787
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(408
|
)
|
|
(1
|
)
|
|
—
|
|
|||||
Closing balance
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
3,167
|
|
|
$
|
24
|
|
|
$
|
38
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2016 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
18
|
|
|
$
|
6
|
|
|
$
|
2,095
|
|
|
$
|
100
|
|
|
$
|
2
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers out of Level 3 (1)
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(4
|
)
|
|
(1
|
)
|
|
7
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
6
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
1,399
|
|
|
—
|
|
|
56
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
(25
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(638
|
)
|
|
(3
|
)
|
|
—
|
|
|||||
Closing balance
|
$
|
14
|
|
|
$
|
(2
|
)
|
|
$
|
2,798
|
|
|
$
|
76
|
|
|
$
|
48
|
|
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
(33
|
)
|
|
$
|
4
|
|
|
$
|
—
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2015 |
||||||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Private
label CMO
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||||
Balance, beginning of year
|
$
|
23
|
|
|
$
|
3
|
|
|
$
|
1,418
|
|
|
$
|
30
|
|
|
$
|
83
|
|
|
$
|
10
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (1)
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
(5
|
)
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||||
Included in OCI
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
2
|
|
|
25
|
|
|
—
|
|
||||||
Purchases/originations
|
—
|
|
|
—
|
|
|
1,002
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sales
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
||||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(311
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
—
|
|
||||||
Balance, end of year
|
$
|
18
|
|
|
$
|
6
|
|
|
$
|
2,095
|
|
|
$
|
—
|
|
|
$
|
100
|
|
|
$
|
2
|
|
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date
|
$
|
(5
|
)
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2017 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage banking income
|
$
|
(3
|
)
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||||
Interest and fee income
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total
|
$
|
(3
|
)
|
|
$
|
16
|
|
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2016 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage banking income
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|||||
Interest and fee income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(2
|
)
|
|||||
Total
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
7
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2015 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage banking income (loss)
|
$
|
(5
|
)
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|||||
Interest and fee income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
(5
|
)
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
(dollar amounts in millions)
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
$
|
413
|
|
|
$
|
400
|
|
|
$
|
13
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Loans held for investment
|
93
|
|
|
102
|
|
|
(9
|
)
|
|
10
|
|
|
11
|
|
|
(1
|
)
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
(dollar amounts in millions)
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
$
|
438
|
|
|
$
|
434
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans held for investment
|
82
|
|
|
92
|
|
|
$
|
(10
|
)
|
|
8
|
|
|
11
|
|
|
$
|
(3
|
)
|
|
Net gains (losses) from fair value
changes Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Assets
|
|
|
|
|
|
||||||
Loans held for sale
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
(2
|
)
|
Loans held for investment
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
|
|
Fair Value Measurements Using
|
|
|
||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
Gains/(Losses) Year ended December 31, 2017 |
||||||||||
MSRs
|
$
|
190
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
190
|
|
|
$
|
1
|
|
Impaired loans
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
(5
|
)
|
|||||
Other real estate owned
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
(2
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||
(dollar amounts in millions)
|
Amount
|
|
Value
|
|
Amount
|
|
Value
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and short-term assets
|
$
|
1,567
|
|
|
$
|
1,567
|
|
|
$
|
1,443
|
|
|
$
|
1,443
|
|
Trading account securities
|
86
|
|
|
86
|
|
|
133
|
|
|
133
|
|
||||
Loans held for sale
|
488
|
|
|
491
|
|
|
513
|
|
|
516
|
|
||||
Available-for-sale and other securities
|
15,469
|
|
|
15,469
|
|
|
15,563
|
|
|
15,563
|
|
||||
Held-to-maturity securities
|
9,091
|
|
|
8,971
|
|
|
7,807
|
|
|
7,787
|
|
||||
Net loans and direct financing leases
|
69,426
|
|
|
69,146
|
|
|
66,324
|
|
|
66,295
|
|
||||
Derivatives
|
132
|
|
|
132
|
|
|
238
|
|
|
238
|
|
||||
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
77,041
|
|
|
77,010
|
|
|
75,608
|
|
|
76,161
|
|
||||
Short-term borrowings
|
5,056
|
|
|
5,056
|
|
|
3,693
|
|
|
3,693
|
|
||||
Long-term debt
|
9,206
|
|
|
9,402
|
|
|
8,309
|
|
|
8,387
|
|
||||
Derivatives
|
86
|
|
|
86
|
|
|
98
|
|
|
98
|
|
|
Estimated Fair Value Measurements at Reporting Date Using
|
|
December 31, 2017
|
|||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|||||||
Trading account securities
|
$
|
83
|
|
|
$
|
3
|
|
|
|
|
$
|
86
|
|
|
Loans held for sale
|
—
|
|
|
413
|
|
|
78
|
|
|
491
|
|
|||
Available-for-sale and other securities
|
25
|
|
|
11,672
|
|
|
3,191
|
|
|
14,888
|
|
|||
Held-to-maturity securities
|
—
|
|
|
8,971
|
|
|
—
|
|
|
8,971
|
|
|||
Net loans and direct financing leases
|
—
|
|
|
—
|
|
|
69,146
|
|
|
69,146
|
|
|||
Financial Liabilities:
|
|
|
|
|
|
|
|
|||||||
Deposits
|
—
|
|
|
73,975
|
|
|
3,035
|
|
|
77,010
|
|
|||
Short-term borrowings
|
—
|
|
|
—
|
|
|
5,056
|
|
|
5,056
|
|
|||
Long-term debt
|
—
|
|
|
8,944
|
|
|
458
|
|
|
9,402
|
|
|
Estimated Fair Value Measurements at Reporting Date Using
|
|
December 31, 2016
|
||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities
|
$
|
—
|
|
|
$
|
7,787
|
|
|
$
|
—
|
|
|
$
|
7,787
|
|
Net loans and direct financing leases
|
—
|
|
|
—
|
|
|
66,295
|
|
|
66,295
|
|
||||
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
—
|
|
|
72,319
|
|
|
3,842
|
|
|
76,161
|
|
||||
Short-term borrowings
|
1
|
|
|
—
|
|
|
3,692
|
|
|
3,693
|
|
||||
Long-term debt
|
—
|
|
|
7,980
|
|
|
407
|
|
|
8,387
|
|
|
December 31, 2017
|
December 31, 2016
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Derivatives designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
22
|
|
|
$
|
121
|
|
|
$
|
46
|
|
|
$
|
100
|
|
Derivatives not designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts (1)
|
187
|
|
|
100
|
|
|
233
|
|
|
141
|
|
||||
Foreign exchange contracts
|
18
|
|
|
18
|
|
|
23
|
|
|
20
|
|
||||
Commodities contracts
|
92
|
|
|
87
|
|
|
108
|
|
|
104
|
|
||||
Equity contracts
|
3
|
|
|
5
|
|
|
10
|
|
|
6
|
|
||||
Total Contracts
|
$
|
322
|
|
|
$
|
331
|
|
|
$
|
420
|
|
|
$
|
371
|
|
(1)
|
Includes derivative assets and liabilities used in mortgage banking activities.
|
|
December 31, 2017
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Subordinated notes
|
950
|
|
|
—
|
|
|
950
|
|
|||
Long-term debt
|
7,425
|
|
|
—
|
|
|
7,425
|
|
|||
Total notional value at December 31, 2017
|
$
|
8,375
|
|
|
$
|
—
|
|
|
$
|
8,375
|
|
|
|
|
|
|
|
||||||
|
December 31, 2016
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Loans
|
$
|
—
|
|
|
$
|
3,325
|
|
|
$
|
3,325
|
|
Subordinated notes
|
950
|
|
|
—
|
|
|
950
|
|
|||
Long-term debt
|
6,525
|
|
|
—
|
|
|
6,525
|
|
|||
Total notional value at December 31, 2016
|
$
|
7,475
|
|
|
$
|
3,325
|
|
|
$
|
10,800
|
|
|
December 31, 2017
|
||||||||||||||
|
|
|
|
|
|
|
Weighted-Average
Rate |
||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
|
Receive
|
|
Pay
|
||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||
Receive fixed—generic
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
|
—
|
%
|
|
—
|
%
|
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||
Receive fixed—generic
|
8,375
|
|
|
2.5
|
|
(99
|
)
|
|
1.56
|
|
|
1.44
|
|
||
Total swap portfolio at December 31, 2017
|
$
|
8,375
|
|
|
2.5
|
|
$
|
(99
|
)
|
|
1.56
|
%
|
|
1.44
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2016
|
||||||||||||||
|
|
|
|
|
|
|
Weighted-Average
Rate |
||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
|
Receive
|
|
Pay
|
||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||
Receive fixed—generic
|
$
|
3,325
|
|
|
0.6
|
|
$
|
(2
|
)
|
|
1.04
|
%
|
|
0.91
|
%
|
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||
Receive fixed—generic
|
7,475
|
|
|
3.1
|
|
(52
|
)
|
|
1.49
|
|
|
0.88
|
|
||
Total swap portfolio at December 31, 2016
|
$
|
10,800
|
|
|
2.3
|
|
$
|
(54
|
)
|
|
1.35
|
%
|
|
0.89
|
%
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Interest rate contracts
|
|
|
|
|
|
||||||
Change in fair value of interest rate swaps hedging deposits (1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Change in fair value of hedged deposits (1)
|
—
|
|
|
—
|
|
|
1
|
|
|||
Change in fair value of interest rate swaps hedging subordinated notes (2)
|
(14
|
)
|
|
(48
|
)
|
|
(8
|
)
|
|||
Change in fair value of hedged subordinated notes (2)
|
17
|
|
|
45
|
|
|
8
|
|
|||
Change in fair value of interest rate swaps hedging long-term debt (2)
|
(39
|
)
|
|
(74
|
)
|
|
4
|
|
|||
Change in fair value of hedged other long-term debt (2)
|
37
|
|
|
67
|
|
|
(4
|
)
|
(1)
|
Effective portion of the hedging relationship is recognized in Interest expense—deposits in the Consolidated Statements of Income. Any resulting ineffective portion of the hedging relationship is recognized in noninterest income in the Consolidated Statements of Income.
|
(2)
|
Effective portion of the hedging relationship is recognized in Interest expense—subordinated notes and other long-term debt in the Consolidated Statements of Income. Any resulting ineffective portion of the hedging relationship is recognized in noninterest income in the Consolidated Statements of Income.
|
Derivatives in cash
flow hedging
relationships
|
Amount of gain or (loss)
recognized in OCI on
derivatives (effective portion)
|
|
Location of gain or (loss)
reclassified from accumulated OCI
into earnings (effective portion)
|
|
Amount of (gain) or loss
reclassified from accumulated OCI
into earnings (effective portion)
(pre-tax)
|
||||||||||||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
9
|
|
|
Interest and fee income—loans and leases
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Total
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
9
|
|
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Derivatives used in mortgage banking activities
|
December 31, 2017
|
December 31, 2016
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Interest rate lock agreements
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
2
|
|
Forward trades and options
|
1
|
|
|
—
|
|
|
13
|
|
|
1
|
|
||||
Total derivatives used in mortgage banking activities
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
3
|
|
Offsetting of Financial Assets and Derivative Assets
|
||||||||||||||||||||||||
|
|
|
|
Gross amounts
offset in the
consolidated
balance sheets
|
|
Net amounts of
assets
presented in
the
consolidated
balance sheets
|
|
Gross amounts not offset in
the consolidated balance
sheets
|
|
|
||||||||||||||
(dollar amounts in millions)
|
|
Gross amounts
of recognized
assets
|
|
|
|
Financial
instruments
|
|
Cash collateral
received
|
|
Net amount
|
||||||||||||||
December 31, 2017
|
Derivatives
|
$
|
322
|
|
|
$
|
(190
|
)
|
|
$
|
132
|
|
|
$
|
(11
|
)
|
|
$
|
(18
|
)
|
|
$
|
103
|
|
December 31, 2016
|
Derivatives
|
420
|
|
|
(182
|
)
|
|
238
|
|
|
(34
|
)
|
|
(5
|
)
|
|
199
|
|
Offsetting of Financial Liabilities and Derivative Liabilities
|
||||||||||||||||||||||||
|
|
|
|
Gross amounts
offset in the
consolidated
balance sheets
|
|
Net amounts of
assets
presented in
the
consolidated
balance sheets
|
|
Gross amounts not offset in
the consolidated balance
sheets
|
|
|
||||||||||||||
(dollar amounts in millions)
|
|
Gross amounts
of recognized
liabilities
|
|
|
|
Financial
instruments
|
|
Cash collateral
delivered
|
|
Net amount
|
||||||||||||||
December 31, 2017
|
Derivatives
|
$
|
331
|
|
|
$
|
(245
|
)
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
65
|
|
December 31, 2016
|
Derivatives
|
371
|
|
|
(272
|
)
|
|
99
|
|
|
(8
|
)
|
|
(24
|
)
|
|
67
|
|
|
December 31, 2016
|
|||||||||||
|
|
Huntington Technology
Funding Trust |
|
Other Consolidated VIEs
|
|
Total
|
||||||
(dollar amounts in millions)
|
|
Series 2014A
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Net loans and leases
|
|
70
|
|
|
—
|
|
|
70
|
|
|||
Accrued income and other assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total assets
|
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
72
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Other long-term debt
|
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
57
|
|
Accrued interest and other liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total liabilities
|
|
57
|
|
|
—
|
|
|
57
|
|
|||
Equity:
|
|
|
|
|
|
|
||||||
Beneficial Interest owned by third party
|
|
$
|
14
|
|
|
—
|
|
|
14
|
|
||
Total liabilities and equity
|
|
$
|
71
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
December 31, 2017
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
2016-1 Automobile Trust
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
2015-1 Automobile Trust
|
1
|
|
|
—
|
|
|
1
|
|
|||
Trust Preferred Securities
|
14
|
|
|
252
|
|
|
—
|
|
|||
Affordable Housing Tax Credit Partnerships
|
636
|
|
|
335
|
|
|
636
|
|
|||
Other Investments
|
117
|
|
|
53
|
|
|
117
|
|
|||
Total
|
$
|
775
|
|
|
$
|
640
|
|
|
$
|
761
|
|
|
December 31, 2016
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
2016-1 Automobile Trust
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
15
|
|
2015-1 Automobile Trust
|
2
|
|
|
—
|
|
|
2
|
|
|||
Trust Preferred Securities
|
14
|
|
|
253
|
|
|
—
|
|
|||
Affordable Housing Tax Credit Partnerships
|
577
|
|
|
293
|
|
|
577
|
|
|||
Other Investments
|
79
|
|
|
42
|
|
|
79
|
|
|||
Total
|
$
|
687
|
|
|
$
|
588
|
|
|
$
|
673
|
|
(dollar amounts in millions)
|
|
Year
|
|
Amount Transferred
|
||
2016-1 Automobile Trust
|
|
2016
|
|
$
|
1,500
|
|
2015-1 Automobile Trust
|
|
2015
|
|
750
|
|
(dollar amounts in millions)
|
Rate
|
|
Principal amount of
subordinated note/
debenture issued to trust (1)
|
|
Investment in
unconsolidated
subsidiary
|
|||||
Huntington Capital I
|
2.39
|
%
|
(2)
|
$
|
70
|
|
|
$
|
6
|
|
Huntington Capital II
|
2.32
|
|
(3)
|
32
|
|
|
3
|
|
||
Sky Financial Capital Trust III
|
3.09
|
|
(4)
|
72
|
|
|
2
|
|
||
Sky Financial Capital Trust IV
|
3.09
|
|
(4)
|
74
|
|
|
2
|
|
||
Camco Financial Trust
|
3.02
|
|
(5)
|
4
|
|
|
1
|
|
||
Total
|
|
|
$
|
252
|
|
|
$
|
14
|
|
(1)
|
Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.
|
(2)
|
Variable effective rate at
December 31, 2017
, based on three-month LIBOR +
0.70
%.
|
(3)
|
Variable effective rate at
December 31, 2017
, based on three-month LIBOR +
0.625
%.
|
(4)
|
Variable effective rate at
December 31, 2017
, based on three-month LIBOR +
1.40
%.
|
(5)
|
Variable effective rate at
December 31, 2017
, based on three month LIBOR +
1.33
%.
|
(dollar amounts in millions)
|
December 31,
2017 |
|
December 31,
2016 |
||||
Affordable housing tax credit investments
|
$
|
996
|
|
|
$
|
877
|
|
Less: amortization
|
(360
|
)
|
|
(300
|
)
|
||
Net affordable housing tax credit investments
|
$
|
636
|
|
|
$
|
577
|
|
Unfunded commitments
|
$
|
335
|
|
|
$
|
293
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Tax credits and other tax benefits recognized
|
$
|
91
|
|
|
$
|
80
|
|
|
$
|
60
|
|
Proportional amortization method
|
|
|
|
|
|
||||||
Tax credit amortization expense included in provision for income taxes (1)
|
70
|
|
|
53
|
|
|
43
|
|
|||
Equity method
|
|
|
|
|
|
||||||
Tax credit investment losses included in noninterest income
|
—
|
|
|
1
|
|
|
—
|
|
(1)
|
Includes an adjustment of $4 million tax related to the TCJA for the year ended December 31, 2017.
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Contract amount represents credit risk
|
|
|
|
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial
|
$
|
16,219
|
|
|
$
|
15,190
|
|
Consumer
|
13,384
|
|
|
12,236
|
|
||
Commercial real estate
|
1,366
|
|
|
1,698
|
|
||
Standby letters of credit
|
510
|
|
|
637
|
|
||
Commercial letters-of-credit
|
21
|
|
|
5
|
|
•
|
Tier 1 Leverage Ratio
, equal to the ratio of Tier 1 capital to quarterly average assets (net of goodwill, certain other intangible assets and certain other deductions). The Bank’s minimum Tier 1 leverage ratio requirement is 4%.
|
•
|
CET1 Risk-Based Capital Ratio
, equal to the ratio of CET1 capital to risk-weighted assets. CET1 capital primarily includes common shareholders’ equity subject to certain regulatory adjustments and deductions, including with respect to goodwill,
|
•
|
Tier 1 Risk-Based Capital Ratio
, equal to the ratio of Tier 1 capital to risk-weighted assets. Tier 1 capital is primarily comprised of CET1 capital, perpetual preferred stock and certain qualifying capital instruments. The minimum Tier 1 risk-based capital ratio requirement for Huntington and the Bank is 6%.
|
•
|
Total Risk-Based Capital Ratio
, equal to the ratio of total capital, including CET1 capital, Tier 1 capital and Tier 2 capital, to risk-weighted assets. Tier 2 capital primarily includes qualifying subordinated debt and qualifying ALLL. Tier 2 capital also includes, among other things, certain trust preferred securities. The minimum total risk-based capital ratio requirement for Huntington and the Bank is 8%.
|
|
|
Minimum
|
|
Minimum
|
|
|
|
December 31,
|
|||||||||||||||
|
|
Regulatory
|
|
Ratio+Capital
|
|
Well-
|
|
2017
|
|
2016
|
|||||||||||||
|
|
Capital
|
|
Conservation
|
|
Capitalized
|
|
Basel III
|
|||||||||||||||
(dollar amounts in millions)
|
|
Ratios
|
|
Buffer
|
|
Minimums
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|||||||||
Tier 1 leverage
|
Consolidated
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
9.09
|
%
|
|
$
|
9,110
|
|
|
8.70
|
%
|
|
$
|
8,547
|
|
|
Bank
|
4.00
|
|
|
N/A
|
|
|
5.00
|
%
|
|
9.70
|
|
|
9,727
|
|
|
9.29
|
|
|
9,086
|
|
||
CET 1 risk-based capital
|
Consolidated
|
4.50
|
|
|
5.75
|
%
|
|
N/A
|
|
|
10.01
|
|
|
8,041
|
|
|
9.56
|
|
|
7,486
|
|
||
|
Bank
|
4.50
|
|
|
5.75
|
|
|
6.50
|
|
|
11.02
|
|
|
8,856
|
|
|
10.42
|
|
|
8,153
|
|
||
Tier 1 risk-based capital
|
Consolidated
|
6.00
|
|
|
7.25
|
|
|
6.00
|
|
|
11.34
|
|
|
9,110
|
|
|
10.92
|
|
|
8,547
|
|
||
|
Bank
|
6.00
|
|
|
7.25
|
|
|
8.00
|
|
|
12.10
|
|
|
9,727
|
|
|
11.61
|
|
|
9,086
|
|
||
Total risk-based capital
|
Consolidated
|
8.00
|
|
|
9.25
|
|
|
10.00
|
|
|
13.39
|
|
|
10,757
|
|
|
13.05
|
|
|
10,215
|
|
||
|
Bank
|
8.00
|
|
|
9.25
|
|
|
10.00
|
|
|
14.33
|
|
|
11,517
|
|
|
13.83
|
|
|
10,818
|
|
Balance Sheets
|
December 31,
|
||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,618
|
|
|
$
|
1,753
|
|
Due from The Huntington National Bank
|
798
|
|
|
730
|
|
||
Due from non-bank subsidiaries
|
58
|
|
|
45
|
|
||
Investment in The Huntington National Bank
|
11,696
|
|
|
10,668
|
|
||
Investment in non-bank subsidiaries
|
111
|
|
|
500
|
|
||
Accrued interest receivable and other assets
|
252
|
|
|
321
|
|
||
Total assets
|
$
|
14,533
|
|
|
$
|
14,017
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Long-term borrowings
|
$
|
3,128
|
|
|
$
|
3,145
|
|
Dividends payable, accrued expenses, and other liabilities
|
591
|
|
|
564
|
|
||
Total liabilities
|
3,719
|
|
|
3,709
|
|
||
Shareholders’ equity (1)
|
10,814
|
|
|
10,308
|
|
||
Total liabilities and shareholders’ equity
|
$
|
14,533
|
|
|
$
|
14,017
|
|
(1)
|
See Consolidated Statements of Changes in Shareholders’ Equity.
|
Statements of Income
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Income
|
|
|
|
|
|
||||||
Dividends from
|
|
|
|
|
|
||||||
The Huntington National Bank
|
$
|
298
|
|
|
$
|
188
|
|
|
$
|
822
|
|
Non-bank subsidiaries
|
14
|
|
|
11
|
|
|
39
|
|
|||
Interest from
|
|
|
|
|
|
||||||
The Huntington National Bank
|
20
|
|
|
14
|
|
|
6
|
|
|||
Non-bank subsidiaries
|
2
|
|
|
3
|
|
|
2
|
|
|||
Other
|
4
|
|
|
—
|
|
|
5
|
|
|||
Total income
|
338
|
|
|
216
|
|
|
874
|
|
|||
Expense
|
|
|
|
|
|
||||||
Personnel costs
|
19
|
|
|
12
|
|
|
5
|
|
|||
Interest on borrowings
|
91
|
|
|
59
|
|
|
17
|
|
|||
Other
|
115
|
|
|
123
|
|
|
93
|
|
|||
Total expense
|
225
|
|
|
194
|
|
|
115
|
|
|||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries
|
113
|
|
|
22
|
|
|
759
|
|
|||
Provision (benefit) for income taxes
|
(56
|
)
|
|
(56
|
)
|
|
(110
|
)
|
|||
Income (loss) before equity in undistributed net income of subsidiaries
|
169
|
|
|
78
|
|
|
869
|
|
|||
Increase (decrease) in undistributed net income (loss) of:
|
|
|
|
|
|
||||||
The Huntington National Bank
|
1,015
|
|
|
629
|
|
|
(161
|
)
|
|||
Non-bank subsidiaries
|
2
|
|
|
5
|
|
|
(15
|
)
|
|||
Net income
|
$
|
1,186
|
|
|
$
|
712
|
|
|
$
|
693
|
|
Other comprehensive income (loss) (1)
|
(34
|
)
|
|
(175
|
)
|
|
(4
|
)
|
|||
Comprehensive income
|
$
|
1,152
|
|
|
$
|
537
|
|
|
$
|
689
|
|
(1)
|
See Consolidated Statements of Comprehensive Income for other comprehensive income (loss) detail.
|
Statements of Cash Flows
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,186
|
|
|
$
|
712
|
|
|
$
|
693
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net income of subsidiaries
|
(997
|
)
|
|
(634
|
)
|
|
176
|
|
|||
Depreciation and amortization
|
4
|
|
|
(1
|
)
|
|
1
|
|
|||
Loss on sales of securities available-for-sale
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(37
|
)
|
|
(24
|
)
|
|
(45
|
)
|
|||
Net cash (used for) provided by operating activities
|
156
|
|
|
53
|
|
|
825
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Repayments from subsidiaries
|
442
|
|
|
464
|
|
|
495
|
|
|||
Advances to subsidiaries
|
(29
|
)
|
|
(1,758
|
)
|
|
(612
|
)
|
|||
Proceeds from sale of securities available-for-sale
|
1
|
|
|
(2
|
)
|
|
—
|
|
|||
Cash paid for acquisitions, net of cash received
|
—
|
|
|
(133
|
)
|
|
—
|
|
|||
Proceeds from business divestitures
|
—
|
|
|
—
|
|
|
9
|
|
|||
Net cash (used for) provided by investing activities
|
414
|
|
|
(1,429
|
)
|
|
(108
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term borrowings
|
—
|
|
|
1,990
|
|
|
—
|
|
|||
Payment of borrowings
|
—
|
|
|
(65
|
)
|
|
—
|
|
|||
Dividends paid on stock
|
(425
|
)
|
|
(299
|
)
|
|
(225
|
)
|
|||
Net proceeds from issuance of preferred stock
|
—
|
|
|
585
|
|
|
—
|
|
|||
Repurchases of common stock
|
(260
|
)
|
|
—
|
|
|
(252
|
)
|
|||
Other, net
|
(20
|
)
|
|
1
|
|
|
14
|
|
|||
Net cash provided by (used for) financing activities
|
(705
|
)
|
|
2,212
|
|
|
(463
|
)
|
|||
Increase (decrease) in cash and due from banks
|
(135
|
)
|
|
836
|
|
|
254
|
|
|||
Cash and due from banks at beginning of year
|
1,753
|
|
|
917
|
|
|
663
|
|
|||
Cash and due from banks at end of year
|
$
|
1,618
|
|
|
$
|
1,753
|
|
|
$
|
917
|
|
Supplemental disclosure:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
90
|
|
|
$
|
36
|
|
|
$
|
17
|
|
Income Statements
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington
Consolidated
|
||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,555
|
|
|
$
|
899
|
|
|
$
|
424
|
|
|
$
|
184
|
|
|
$
|
(60
|
)
|
|
$
|
3,002
|
|
Provision (benefit) for credit losses
|
110
|
|
|
28
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
201
|
|
||||||
Noninterest income
|
735
|
|
|
278
|
|
|
14
|
|
|
188
|
|
|
92
|
|
|
1,307
|
|
||||||
Noninterest expense
|
1,647
|
|
|
474
|
|
|
150
|
|
|
243
|
|
|
200
|
|
|
2,714
|
|
||||||
Provision (benefit) for income taxes
|
187
|
|
|
236
|
|
|
79
|
|
|
45
|
|
|
(339
|
)
|
|
208
|
|
||||||
Net income (loss)
|
$
|
346
|
|
|
$
|
439
|
|
|
$
|
146
|
|
|
$
|
84
|
|
|
$
|
171
|
|
|
$
|
1,186
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,224
|
|
|
$
|
725
|
|
|
$
|
345
|
|
|
$
|
152
|
|
|
$
|
(77
|
)
|
|
$
|
2,369
|
|
Provision (benefit) for credit losses
|
68
|
|
|
79
|
|
|
47
|
|
|
(3
|
)
|
|
—
|
|
|
191
|
|
||||||
Noninterest income
|
650
|
|
|
244
|
|
|
14
|
|
|
177
|
|
|
65
|
|
|
1,150
|
|
||||||
Noninterest expense
|
1,338
|
|
|
398
|
|
|
118
|
|
|
229
|
|
|
325
|
|
|
2,408
|
|
||||||
Provision (benefit) for income taxes
|
164
|
|
|
172
|
|
|
68
|
|
|
36
|
|
|
(232
|
)
|
|
208
|
|
||||||
Net income (loss)
|
$
|
304
|
|
|
$
|
320
|
|
|
$
|
126
|
|
|
$
|
67
|
|
|
$
|
(105
|
)
|
|
$
|
712
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
995
|
|
|
$
|
560
|
|
|
$
|
262
|
|
|
$
|
125
|
|
|
$
|
9
|
|
|
$
|
1,951
|
|
Provision (benefit) for credit losses
|
45
|
|
|
16
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
100
|
|
||||||
Noninterest income
|
566
|
|
|
214
|
|
|
13
|
|
|
174
|
|
|
72
|
|
|
1,039
|
|
||||||
Noninterest expense
|
1,192
|
|
|
343
|
|
|
93
|
|
|
241
|
|
|
107
|
|
|
1,976
|
|
||||||
Provision (benefit) for income taxes
|
113
|
|
|
145
|
|
|
50
|
|
|
21
|
|
|
(108
|
)
|
|
221
|
|
||||||
Net income (loss)
|
$
|
211
|
|
|
$
|
270
|
|
|
$
|
93
|
|
|
$
|
37
|
|
|
$
|
82
|
|
|
$
|
693
|
|
|
Assets at
December 31,
|
|
Deposits at
December 31,
|
||||||||||||
(dollar amounts in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Consumer & Business Banking
|
$
|
26,220
|
|
|
$
|
25,333
|
|
|
$
|
45,643
|
|
|
$
|
45,356
|
|
Commercial Banking
|
32,118
|
|
|
31,566
|
|
|
21,235
|
|
|
19,597
|
|
||||
Vehicle Finance
|
17,865
|
|
|
16,132
|
|
|
358
|
|
|
349
|
|
||||
RBHPCG
|
5,821
|
|
|
5,328
|
|
|
6,057
|
|
|
6,214
|
|
||||
Treasury / Other
|
22,161
|
|
|
21,355
|
|
|
3,748
|
|
|
4,092
|
|
||||
Total
|
$
|
104,185
|
|
|
$
|
99,714
|
|
|
$
|
77,041
|
|
|
$
|
75,608
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
(dollar amounts in millions, except per share data)
|
2017
|
|
2017
|
|
2017
|
|
2017
|
||||||||
Interest income
|
$
|
894
|
|
|
$
|
873
|
|
|
$
|
846
|
|
|
$
|
820
|
|
Interest expense
|
124
|
|
|
115
|
|
|
101
|
|
|
91
|
|
||||
Net interest income
|
770
|
|
|
758
|
|
|
745
|
|
|
729
|
|
||||
Provision for credit losses
|
65
|
|
|
43
|
|
|
25
|
|
|
68
|
|
||||
Noninterest income
|
340
|
|
|
330
|
|
|
325
|
|
|
312
|
|
||||
Noninterest expense
|
633
|
|
|
680
|
|
|
694
|
|
|
707
|
|
||||
Income before income taxes
|
412
|
|
|
365
|
|
|
351
|
|
|
266
|
|
||||
Provision (benefit) for income taxes
|
(20
|
)
|
|
90
|
|
|
79
|
|
|
59
|
|
||||
Net income
|
432
|
|
|
275
|
|
|
272
|
|
|
207
|
|
||||
Dividends on preferred shares
|
19
|
|
|
19
|
|
|
19
|
|
|
19
|
|
||||
Net income applicable to common shares
|
$
|
413
|
|
|
$
|
256
|
|
|
$
|
253
|
|
|
$
|
188
|
|
Net income per common share — Basic
|
$
|
0.38
|
|
|
$
|
0.24
|
|
|
$
|
0.23
|
|
|
$
|
0.17
|
|
Net income per common share — Diluted
|
0.37
|
|
|
0.23
|
|
|
0.23
|
|
|
0.17
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
(dollar amounts in millions, except per share data)
|
2016
|
|
2016
|
|
2016
|
|
2016
|
||||||||
Interest income
|
$
|
815
|
|
|
$
|
694
|
|
|
$
|
566
|
|
|
$
|
557
|
|
Interest expense
|
80
|
|
|
69
|
|
|
60
|
|
|
54
|
|
||||
Net interest income
|
735
|
|
|
625
|
|
|
506
|
|
|
503
|
|
||||
Provision for credit losses
|
75
|
|
|
63
|
|
|
25
|
|
|
28
|
|
||||
Noninterest income
|
334
|
|
|
303
|
|
|
271
|
|
|
242
|
|
||||
Noninterest expense
|
681
|
|
|
713
|
|
|
523
|
|
|
491
|
|
||||
Income before income taxes
|
313
|
|
|
152
|
|
|
229
|
|
|
226
|
|
||||
Provision (benefit) for income taxes
|
74
|
|
|
25
|
|
|
54
|
|
|
55
|
|
||||
Net income
|
239
|
|
|
127
|
|
|
175
|
|
|
171
|
|
||||
Dividends on preferred shares
|
19
|
|
|
18
|
|
|
20
|
|
|
8
|
|
||||
Net income applicable to common shares
|
$
|
220
|
|
|
$
|
109
|
|
|
$
|
155
|
|
|
$
|
163
|
|
Net income per common share — Basic
|
$
|
0.20
|
|
|
$
|
0.12
|
|
|
$
|
0.19
|
|
|
$
|
0.21
|
|
Net income per common share — Diluted
|
0.20
|
|
|
0.11
|
|
|
0.19
|
|
|
0.20
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Stephen D. Steinour
|
|
By:
|
|
/s/ Howell D. McCullough III
|
|
|
Stephen D. Steinour
|
|
|
|
Howell D. McCullough III
|
|
|
Chairman, President, Chief Executive
|
|
|
|
Chief Financial Officer
|
|
|
Officer, and Director (Principal Executive Officer)
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Nancy E. Maloney
|
|
|
|
|
|
|
Nancy E. Maloney
|
|
|
|
|
|
|
Executive Vice President, Controller
|
|
|
|
|
|
|
(Principal Accounting Officer)
|
Lizabeth Ardisana *
|
|
Lizabeth Ardisana
|
|
Director
|
|
|
|
Ann B. Crane *
|
|
Ann B. Crane
|
|
Director
|
|
|
|
Robert S. Cubbin *
|
|
Robert S. Cubbin
|
|
Director
|
|
|
|
Steven G. Elliott *
|
|
Steven G. Elliott
|
|
Director
|
|
|
|
Michael J. Endres *
|
|
Michael J. Endres
|
|
Director
|
|
|
|
Gina D. France *
|
|
Gina D. France
|
|
Director
|
|
|
|
J. Michael Hochschwender *
|
|
J. Michael Hochschwender
|
|
Director
|
|
|
|
John C. Inglis *
|
|
John C. Inglis
|
|
Director
|
|
|
|
Peter J. Kight *
|
|
Peter J. Kight
|
|
Director
|
|
|
|
Jonathan A. Levy *
|
|
Jonathan A. Levy
|
|
Director
|
|
|
|
Eddie R. Munson *
|
|
Eddie R. Munson
|
|
Director
|
|
|
|
Richard W. Neu *
|
|
Richard W. Neu
|
|
Director
|
|
|
|
David L. Porteous *
|
|
David L. Porteous
|
|
Director
|
|
|
|
Kathleen H. Ransier *
|
|
Kathleen H. Ransier
|
|
Director
|
|
|
|
*/s/ Jana J. Litsey
|
|
Jana J. Litsey
|
|
Attorney-in-fact for each of the persons indicated
|
|
(a)
|
The Corporation’s identification of the individuals who fall within the definition of “key employee” under Code Section 416(i) (without regard to paragraph (5) thereof) shall be based upon the 12-month period ending on each December 31
st
(referred to below as the “identification date”). In applying the applicable provisions of Code Section 416(i) to identify such individuals, “compensation” shall be determined in accordance with Treas. Reg. §1.415(c)-2(a) without regard to (i) any safe harbor provided in Treas. Reg. §1.415(c)-2(d), (ii) any of the special timing rules provided in Treas. Reg. §1.415(c)-2(e), and (iii) any of the special rules provided in Treas. Reg. §1.415(c)-2(g); and
|
(b)
|
Each Participant who is among the individuals identified as a “key employee” in accordance with part (a) of this Section shall be treated as a Specified Employee for purposes of this Plan if such Participant experiences a Separation from Service during the 12-month period that begins on the April 1
st
following the applicable identification date and ends March 31
st
of the following year.
|
(a)
|
General Payment Timing
. If a Participant is scheduled to receive payment or payments as a result of Separation from Service, payment shall commence on the last Business Day of the month after the month in which the participant incurred a Separation from Service, or such other objectively determinable time that is specified in an Election Form that governs the payment of a Participant’s Account or subaccount. If the Participant has elected to receive installment payments, each installment shall be made on each anniversary of the initial payment date, or if such date is not a Business Day, the first Business Day immediately after the applicable anniversary date. In no event may payment be made at an earlier or later date except as permitted under Code Section 409A. The value of the Participant’s Account to be distributed shall be determined in accordance with Section 4.3 of this Plan and measured on the Business Day described in Section 5.2 of this Plan for lump sum and installment payments, as applicable.
|
(b)
|
Specified Employee
. Notwithstanding subsection (a), if the Participant is classified as a “Specified Employee” within the meaning of Code Section 409A and regulations promulgated thereunder at the time of the Participant’s Separation from Service (or at such other time for determining Specified Employee status as may apply under Code Section 409A), then such Participant’s Account shall not be paid, as a result of the Participant’s Separation from Service, earlier than the date that is at least six (6) months after the Participant’s Separation from Service. The value of the Participant’s Account to be distributed shall be determined in accordance with Section 4.3 of this Plan and measured on the Business Day described in Section 5.2 of this Plan for lump sum and installment payments, as applicable.
|
(a)
|
If a Participant’s initial election specified payment based on a Specified Payment Date, the Participant’s modified election must be made at least 12 months before the Participant’s original Specified Payment Date and such election will not be effective until 12 months after it is made. In addition, the Participant’s modified election must specify one of the following two new Specified Payment Dates: (i) a new Specified Payment Date that is at least 5 years after the original Specified Payment Date, or (ii) a new Specified Payment Date that is at least 5 years after the original Specified Payment Date or, if later, Separation from Service.
|
(b)
|
If a Participant’s initial election specified payment based on the Participant’s Separation from Service, the Participant’s modified election must be made at least 12 months before the Participant’s Separation from Service and such election will not be effective until 12 months after it is made. In addition, the Participant must elect a payment date that is at least 5 years after the Participant’s Separation from Service.
|
(i)
|
the specific reason(s) for the denial of the claim, or any part of it;
|
(ii)
|
specific reference(s) to pertinent provisions of the Plan upon which such denial was based;
|
(iii)
|
a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and
|
(iv)
|
an explanation of the claim review procedure set forth in Section 9.3 below.
|
(a)
|
Deferrals
. The Account shall be increased by any deferred Compensation credited.
|
(b)
|
Distributions
. The Account shall be reduced by any benefits previously distributed from the Account to the Participant.
|
(c)
|
Earnings Credits
. The Account shall be increased or decreased by the aggregate hypothetical earnings, gains and losses on such Account. Such earnings, gains, expenses and losses are hypothetical and not actual, but they shall be applied to measure the value of a Participant’s Account and the amount of the Corporation’s liability to make deferred payments to or on behalf of the Participant.
|
(a)
|
If a Participant’s initial election specified payment based on a Specified Payment Date, the Participant’s modified election must be made at least 12 months before the Participant’s original Specified Payment Date and such election will not be effective until 12 months after it is made. In addition, the Participant’s modified election must specify one of the following two new Specified Payment Dates: (i) a new Specified Payment Date that is at least 5 years after the original Specified Payment Date, or (ii) a new Specified Payment Date that is at least 5 years after the original Specified Payment Date or, if later, Separation from Service.
|
(b)
|
If a Participant’s initial election specified payment based on the Participant’s Separation from Service, the Participant’s modified election must be made at least 12 months before the Participant’s Separation from Service and such election will
|
(a)
|
The Participant’s then-current spouse as of the date of the Participant’s death; or,
|
(b)
|
If the Participant has no such surviving spouse, the executor or personal representative of the Participant's estate.
|
(a)
|
that the Claimant's requested determination has been made, and that the claim has been allowed in full; or
|
(b)
|
that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant's requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:
|
(i)
|
the specific reason(s) for the denial of the claim, or any part of it;
|
(ii)
|
specific reference(s) to pertinent provisions of the Plan upon which such denial was based;
|
(iii)
|
a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and
|
(iv)
|
an explanation of the claim review procedure set forth in Section 9.3 below.
|
(a)
|
may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits;
|
(b)
|
may submit written comments or other documents; and/or
|
(c)
|
may request a hearing, which the Board, in its sole discretion, may grant.
|
(a)
|
specific reasons for the decision;
|
(b)
|
specific reference(s) to the pertinent Plan provisions upon which the decision was based;
|
(c)
|
a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant to the Claimant’s claim for benefits; and
|
(d)
|
a statement of the Claimant’s right to bring a civil action.
|
Ratio of Earnings to Fixed Charges
|
Twelve Months Ended December 31,
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
1,394
|
|
|
$
|
920
|
|
|
$
|
914
|
|
|
$
|
853
|
|
|
$
|
869
|
|
|
Add: Fixed charges, excluding interest on deposits
|
275
|
|
|
181
|
|
|
100
|
|
|
71
|
|
|
57
|
|
|
|||||
Earnings available for fixed charges, excluding interest on deposits
|
1,669
|
|
|
1,101
|
|
|
1,014
|
|
|
924
|
|
|
926
|
|
|
|||||
Add: Interest on deposits
|
180
|
|
|
102
|
|
|
82
|
|
|
86
|
|
|
116
|
|
|
|||||
Earnings available for fixed charges, including interest on deposits
|
$
|
1,849
|
|
|
$
|
1,203
|
|
|
$
|
1,096
|
|
|
$
|
1,010
|
|
|
$
|
1,042
|
|
|
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, excluding interest on deposits
|
$
|
251
|
|
|
$
|
161
|
|
|
$
|
82
|
|
|
$
|
53
|
|
|
$
|
40
|
|
|
Interest factor in net rental expense
|
24
|
|
|
20
|
|
|
18
|
|
|
18
|
|
|
17
|
|
|
|||||
Total fixed charges, excluding interest on deposits
|
275
|
|
|
181
|
|
|
100
|
|
|
71
|
|
|
57
|
|
|
|||||
Add: Interest on deposits
|
180
|
|
|
102
|
|
|
82
|
|
|
86
|
|
|
116
|
|
|
|||||
Total fixed charges, including interest on deposits
|
$
|
455
|
|
|
$
|
283
|
|
|
$
|
182
|
|
|
$
|
157
|
|
|
$
|
173
|
|
|
Ratio of Earnings to Fixed Charges
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Excluding interest on deposits
|
6.07
|
|
X
|
6.07
|
|
X
|
10.17
|
|
X
|
13.07
|
|
X
|
16.23
|
|
X
|
|||||
Including interest on deposits
|
4.06
|
|
X
|
4.25
|
|
X
|
6.03
|
|
X
|
6.43
|
|
X
|
6.01
|
|
X
|
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
|
Twelve Months Ended December 31,
|
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
1,394
|
|
|
$
|
920
|
|
|
$
|
914
|
|
|
$
|
853
|
|
|
$
|
869
|
|
|
Add: Fixed charges, excluding interest on deposits and preferred stock dividends
|
275
|
|
|
181
|
|
|
100
|
|
|
71
|
|
|
57
|
|
|
|||||
Earnings available for fixed charges, excluding interest on deposits
|
1,669
|
|
|
1,101
|
|
|
1,014
|
|
|
924
|
|
|
926
|
|
|
|||||
Add: Interest on deposits
|
180
|
|
|
102
|
|
|
82
|
|
|
86
|
|
|
116
|
|
|
|||||
Earnings available for fixed charges, including interest on deposits
|
$
|
1,849
|
|
|
$
|
1,203
|
|
|
$
|
1,096
|
|
|
$
|
1,010
|
|
|
$
|
1,042
|
|
|
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, excluding interest on deposits
|
$
|
251
|
|
|
$
|
161
|
|
|
$
|
82
|
|
|
$
|
53
|
|
|
$
|
40
|
|
|
Interest factor in net rental expense
|
24
|
|
|
20
|
|
|
18
|
|
|
18
|
|
|
17
|
|
|
|||||
Preferred stock dividends
|
76
|
|
|
65
|
|
|
32
|
|
|
32
|
|
|
32
|
|
|
|||||
Total fixed charges, excluding interest on deposits
|
351
|
|
|
246
|
|
|
132
|
|
|
103
|
|
|
89
|
|
|
|||||
Add: Interest on deposits
|
180
|
|
|
102
|
|
|
82
|
|
|
86
|
|
|
116
|
|
|
|||||
Total fixed charges, including interest on deposits
|
$
|
531
|
|
|
$
|
348
|
|
|
$
|
214
|
|
|
$
|
189
|
|
|
$
|
205
|
|
|
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Excluding interest on deposits
|
4.75
|
|
X
|
4.47
|
|
X
|
7.71
|
|
X
|
9.01
|
|
X
|
10.41
|
|
X
|
|||||
Including interest on deposits
|
3.48
|
|
X
|
3.45
|
|
X
|
5.13
|
|
X
|
5.34
|
|
X
|
5.08
|
|
X
|
41 South High Ltd. **
|
7575 Corporation
|
791, 801, AND 803 W. Big Beaver Road, LLC
|
Camco Statutory Trust 1 (Connecticut)
|
CASCADE Holdings, LLC (Illinois)
|
Community Bank Audit Services, Inc. (Michigan)
|
Community Bank Insurance Agency, Inc. (Michigan)
|
CREPD, LLC
|
FirstMerit Advisors, Inc.
|
FirstMerit Community Development Corporation
|
FirstMerit Financial Services, Inc.
|
FirstMerit Mortgage Reinsurance Co., Inc. (Hawaii)
|
FirstMerit Risk Management, Inc. (Vermont)
|
FirstMerit Securities, Inc.
|
FirstMerit Title Agency, LTD.
|
FMRC, Inc. (Delaware)
|
Forty-One Corporation
|
Franklin Mortgage Asset Trust 2009-A (Delaware)
|
Haberer Registered Investment Advisor, Inc.
|
HBI Payments Holdings, Inc.
|
HBI Specialty Insurance, Inc.
|
HBI Title Services, Inc.
|
HCFFL, LLC (Nevada)
|
Henry Acquisitions, Inc.
|
HLFB, Inc. (Nevada)
|
HMC Reinsurance Company (Vermont)
|
HMFAL, LLC
|
HNB I LLC (Delaware)
|
HPAL Holdings, LLC (Nevada)
|
HPAL, LLC (Nevada)
|
HPAL II, LLC (Nevada)
|
HPCDS, Inc. (Nevada)
|
HPCF Corporation (Nevada)
|
HPCKAL, LLC (Nevada)
|
HPCLI, Inc.
|
HREIC Holdings, LLC
|
Huntington Auto Trust 2011-1 (Delaware)
|
Huntington Auto Trust 2012-1 (Delaware)
|
Huntington Auto Trust 2012-2 (Delaware)
|
Huntington Auto Trust 2015-1 (Delaware)
|
Huntington Auto Trust 2016-1 (Delaware)
|
Huntington Bancshares Financial Corporation
|
Huntington Capital Financing Holdings I, Inc. (Nevada)
|
Huntington Capital Financing Holdings II, Inc. (Nevada)
|
Huntington Capital Financing OREO, Inc. (Nevada)
|
Huntington Capital I (Delaware)
|
Huntington Capital II (Delaware)
|
Huntington Captive Insurance Company (Arizona)
|
Huntington Equipment Finance, Inc. (Delaware)
|
Huntington Equity Investments, LLC
|
Huntington Finance LLC
|
Huntington Funding, LLC (Delaware)
|
Huntington Insurance, Inc.
|
Huntington LT (Delaware)
|
Huntington Mezzanine Opportunities Inc.
|
Huntington Municipal Fund I, Inc.
|
Huntington Municipal Fund II, Inc.
|
Huntington Municipal Securities, Inc. (Nevada) *
|
Huntington Preferred Capital Holdings, Inc. (Indiana)
|
Huntington Preferred Capital, Inc.
|
Huntington Preferred Capital II, Inc.
|
Huntington Public Capital Corporation (Nevada)
|
Huntington Residential Mortgage Securities, Inc.
|
Huntington Technology Finance, Inc. (Delaware)
|
Huntington Technology Funding, LLC (Delaware)
|
Huntington West, Inc. (Delaware)
|
Inner City Partnerships, LLC **
|
Metropolitan Savings Service Corporation
|
Mezzanine Opportunities LLC **
|
Mezzanine Opportunities II LLC **
|
Midwest Funding, LLC (Illinois)
|
Mobile Consultants, Inc.
|
Prospect Trust I (Delaware)
|
Rate Risk Management Advisors, LLC
|
Sky Capital LLC (Delaware) *
|
Sky Financial Capital Trust III (Delaware)
|
Sky Financial Capital Trust IV (Delaware)
|
STB Auto Exchange, LLC
|
Troy BNK Investors LLC
|
The Derlam Company
|
The Huntington Capital Investment Company
|
The Huntington Capital Investment Company II
|
The Huntington Community Development Corporation
|
The Huntington Investment Company
|
The Huntington Kentucky, LLC (Kentucky)
|
The Huntington Leasing Company
|
The Huntington National Bank (United States)
|
The Huntington Real Estate Investment Company
|
The Huntington Real Estate Investment Company II
|
Tower Hill Securities, Inc. (Nevada)
|
Unizan Capital, LLC (Delaware) *
|
WMC Acquisition LLC (Indiana)
|
/s/ Stephen D. Steinour
|
Stephen D. Steinour
Chairman, President, Chief Executive Officer, and Director (Principal Executive Officer)
|
|
/s/ Howell D. McCullough III
|
Howell D. McCullough III
Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
/s/ Nancy E. Maloney
|
Nancy E. Maloney
Executive Vice President and Controller (Principal Accounting Officer)
|
|
/s/ Lizabeth Ardisana *
|
Lizabeth Ardisana
|
Director
|
|
/s/ Ann B. Crane *
|
Ann B. Crane
|
Director
|
|
/s/ Robert S. Cubbin *
|
Robert S. Cubbin
|
Director
|
|
/s/ Steven G. Elliott *
|
Steven G. Elliott
|
Director
|
|
/s/ Michael J. Endres *
|
Michael J. Endres
|
Director
|
|
/s/ Gina D. France *
|
Gina D. France
|
Director
|
|
/s/ J. Michael Hochschwender *
|
J. Michael Hochschwender
|
Director
|
|
/s/ John C. Inglis *
|
John C. Inglis
|
Director
|
|
/s/ Peter J. Kight *
|
Peter J. Kight
|
Director
|
|
/s/ Jonathan A. Levy *
|
Jonathan A. Levy
|
Director
|
|
/s/ Eddie R. Munson *
|
Eddie R. Munson
|
Director
|
|
/s/ Richard W. Neu *
|
Richard W. Neu
|
Director
|
|
/s/ David L. Porteous *
|
David L. Porteous
|
Director
|
|
/s/ Kathleen H. Ransier *
|
Kathleen H. Ransier
|
Director
|
1.
|
I have reviewed this Annual Report on Form 10-K of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Stephen D. Steinour
|
|
Stephen D. Steinour
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Howell D. McCullough III
|
|
Howell D. McCullough III
|
|
Chief Financial Officer
|
|
/s/ Stephen D. Steinour
|
|
Stephen D. Steinour
|
|
Chief Executive Officer
|
|
February 16, 2018
|
|
/s/ Howell D. McCullough III
|
|
Howell D. McCullough III
|
|
Chief Financial Officer
|
|
February 16, 2018
|