Maryland
|
31-0724920
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
¨
|
|
|
|
|
|
|
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
||||
|
|
|
|
Smaller reporting company
|
¨
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
|
|
|
|
ACL
|
|
Allowance for Credit Losses
|
AFS
|
|
Available-for-Sale
|
ALLL
|
|
Allowance for Loan and Lease Losses
|
AOCI
|
|
Accumulated Other Comprehensive Income
|
ASC
|
|
Accounting Standards Codification
|
AULC
|
|
Allowance for Unfunded Loan Commitments
|
Basel III
|
|
Refers to the final rule issued by the FRB and OCC and published in the Federal Register on October 11, 2013
|
C&I
|
|
Commercial and Industrial
|
CCAR
|
|
Comprehensive Capital Analysis and Review
|
CDs
|
|
Certificates of Deposit
|
CET1
|
|
Common equity tier 1 on a transitional Basel III basis
|
CFPB
|
|
Bureau of Consumer Financial Protection
|
CMO
|
|
Collateralized Mortgage Obligations
|
CRE
|
|
Commercial Real Estate
|
EPS
|
|
Earnings Per Share
|
EVE
|
|
Economic Value of Equity
|
FDIC
|
|
Federal Deposit Insurance Corporation
|
FHLB
|
|
Federal Home Loan Bank
|
FICO
|
|
Fair Isaac Corporation
|
FirstMerit
|
|
FirstMerit Corporation
|
FRB
|
|
Federal Reserve Bank
|
FTE
|
|
Fully-Taxable Equivalent
|
FTP
|
|
Funds Transfer Pricing
|
FVO
|
|
Fair Value Option
|
GAAP
|
|
Generally Accepted Accounting Principles in the United States of America
|
HTM
|
|
Held-to-Maturity
|
IRS
|
|
Internal Revenue Service
|
LCR
|
|
Liquidity Coverage Ratio
|
LIBOR
|
|
London Interbank Offered Rate
|
MBS
|
|
Mortgage-Backed Securities
|
MD&A
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MSR
|
|
Mortgage Servicing Right
|
NAICS
|
|
North American Industry Classification System
|
NALs
|
|
Nonaccrual Loans
|
NCO
|
|
Net Charge-off
|
NII
|
|
Noninterest Income
|
NIM
|
|
Net Interest Margin
|
NPAs
|
|
Nonperforming Assets
|
NSF
|
|
Non-sufficient funds
|
OCC
|
|
Office of the Comptroller of the Currency
|
OCI
|
|
Other Comprehensive Income (Loss)
|
OCR
|
|
Optimal Customer Relationship
|
OLEM
|
|
Other Loans Especially Mentioned
|
OREO
|
|
Other Real Estate Owned
|
OTTI
|
|
Other-Than-Temporary Impairment
|
Plan
|
|
Huntington Bancshares Retirement Plan
|
RBHPCG
|
|
Regional Banking and The Huntington Private Client Group
|
ROC
|
|
Risk Oversight Committee
|
SAD
|
|
Special Assets Division
|
SBA
|
|
Small Business Administration
|
SEC
|
|
Securities and Exchange Commission
|
TCJA
|
|
H.R. 1, Originally known as the Tax Cuts and Jobs Act
|
TDR
|
|
Troubled Debt Restructuring
|
U.S. Treasury
|
|
U.S. Department of the Treasury
|
UCS
|
|
Uniform Classification System
|
VIE
|
|
Variable Interest Entity
|
XBRL
|
|
eXtensible Business Reporting Language
|
|
|
|
|
|
|
|
|
|||||||
Table 2 - Selected Year to Date Income Statements (1)
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions, except per share amounts)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Interest income
|
$
|
1,886
|
|
|
$
|
1,667
|
|
|
$
|
219
|
|
|
13
|
%
|
Interest expense
|
332
|
|
|
192
|
|
|
140
|
|
|
73
|
|
|||
Net interest income
|
1,554
|
|
|
1,475
|
|
|
79
|
|
|
5
|
|
|||
Provision for credit losses
|
122
|
|
|
93
|
|
|
29
|
|
|
31
|
|
|||
Net interest income after provision for credit losses
|
1,432
|
|
|
1,382
|
|
|
50
|
|
|
4
|
|
|||
Service charges on deposit accounts
|
177
|
|
|
171
|
|
|
6
|
|
|
4
|
|
|||
Cards and payment processing income
|
109
|
|
|
100
|
|
|
9
|
|
|
9
|
|
|||
Trust and investment management services
|
86
|
|
|
76
|
|
|
10
|
|
|
13
|
|
|||
Mortgage banking income
|
54
|
|
|
64
|
|
|
(10
|
)
|
|
(16
|
)
|
|||
Insurance income
|
42
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|||
Capital markets fees
|
40
|
|
|
31
|
|
|
9
|
|
|
29
|
|
|||
Bank owned life insurance income
|
32
|
|
|
33
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Gain on sale of loans
|
23
|
|
|
25
|
|
|
(2
|
)
|
|
(8
|
)
|
|||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other noninterest income
|
87
|
|
|
96
|
|
|
(9
|
)
|
|
(9
|
)
|
|||
Total noninterest income
|
650
|
|
|
638
|
|
|
12
|
|
|
2
|
|
|||
Personnel costs
|
772
|
|
|
774
|
|
|
(2
|
)
|
|
—
|
|
|||
Outside data processing and other services
|
142
|
|
|
162
|
|
|
(20
|
)
|
|
(12
|
)
|
|||
Net occupancy
|
76
|
|
|
120
|
|
|
(44
|
)
|
|
(37
|
)
|
|||
Equipment
|
78
|
|
|
90
|
|
|
(12
|
)
|
|
(13
|
)
|
|||
Deposit and other insurance expense
|
36
|
|
|
41
|
|
|
(5
|
)
|
|
(12
|
)
|
|||
Professional services
|
26
|
|
|
36
|
|
|
(10
|
)
|
|
(28
|
)
|
|||
Marketing
|
26
|
|
|
33
|
|
|
(7
|
)
|
|
(21
|
)
|
|||
Amortization of intangibles
|
27
|
|
|
29
|
|
|
(2
|
)
|
|
(7
|
)
|
|||
Other noninterest expense
|
102
|
|
|
117
|
|
|
(15
|
)
|
|
(13
|
)
|
|||
Total noninterest expense
|
1,285
|
|
|
1,402
|
|
|
(117
|
)
|
|
(8
|
)
|
|||
Income before income taxes
|
797
|
|
|
618
|
|
|
179
|
|
|
29
|
|
|||
Provision for income taxes
|
116
|
|
|
138
|
|
|
(22
|
)
|
|
(16
|
)
|
|||
Net income
|
681
|
|
|
480
|
|
|
201
|
|
|
42
|
|
|||
Dividends declared on preferred shares
|
33
|
|
|
38
|
|
|
(5
|
)
|
|
(13
|
)
|
|||
Net income applicable to common shares
|
$
|
648
|
|
|
$
|
442
|
|
|
$
|
206
|
|
|
47
|
%
|
|
|
|
|
|
|
|
|
|||||||
Average common shares—basic
|
1,093,587
|
|
|
1,087,654
|
|
|
5,933
|
|
|
1
|
%
|
|||
Average common shares—diluted
|
1,123,646
|
|
|
1,108,572
|
|
|
15,074
|
|
|
1
|
|
|||
Net income per common share—basic
|
$
|
0.59
|
|
|
$
|
0.41
|
|
|
$
|
0.18
|
|
|
44
|
|
Net income per common share—diluted
|
0.58
|
|
|
0.40
|
|
|
0.18
|
|
|
45
|
|
|||
Cash dividends declared per common share
|
0.22
|
|
|
0.16
|
|
|
0.06
|
|
|
38
|
|
|||
|
|
|
|
|
|
|
|
|||||||
Revenue—FTE
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
1,554
|
|
|
$
|
1,475
|
|
|
$
|
79
|
|
|
5
|
%
|
FTE adjustment
|
14
|
|
|
24
|
|
|
(10
|
)
|
|
(42
|
)
|
|||
Net interest income (3)
|
1,568
|
|
|
1,499
|
|
|
69
|
|
|
5
|
|
|||
Noninterest income
|
650
|
|
|
638
|
|
|
12
|
|
|
2
|
|
|||
Total revenue (3)
|
$
|
2,218
|
|
|
$
|
2,137
|
|
|
$
|
81
|
|
|
4
|
%
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” for additional discussion regarding these key factors.
|
(2)
|
Net income excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 21% tax rate and a 35% tax rate for periods prior to December 31, 2017.
|
(3)
|
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(4)
|
Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains.
|
•
|
During the
2017
second quarter,
$50 million
of noninterest expense was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.03 per common share.
|
(1)
|
Based upon the quarterly average outstanding diluted common shares.
|
|
Six Months Ended
|
||||||||||||||
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||||
(dollar amounts in millions, except per share amounts)
|
Amount
|
|
EPS (1)
|
|
Amount
|
|
EPS (1)
|
||||||||
Net income
|
$
|
681
|
|
|
|
|
$
|
480
|
|
|
|
||||
Earnings per share, after-tax
|
|
|
$
|
0.58
|
|
|
|
|
$
|
0.40
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Significant Items—favorable (unfavorable) impact:
|
Earnings
|
|
EPS (1)
|
|
Earnings
|
|
EPS (1)
|
||||||||
Mergers and acquisitions, net expenses
|
$
|
—
|
|
|
|
|
$
|
(121
|
)
|
|
|
||||
Tax impact
|
—
|
|
|
|
|
42
|
|
|
|
||||||
Mergers and acquisitions, after-tax
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(79
|
)
|
|
$
|
(0.07
|
)
|
(1)
|
Based upon the year to date average outstanding diluted common shares.
|
Table 4 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Average Yield Rates (2)
|
|||||||||||||
|
Three Months Ended
|
|||||||||||||
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|||||
Fully-taxable equivalent basis (1)
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in banks
|
1.95
|
%
|
|
1.97
|
%
|
|
1.92
|
%
|
|
1.77
|
%
|
|
1.53
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||||
Trading account securities
|
0.23
|
|
|
0.15
|
|
|
0.21
|
|
|
0.16
|
|
|
0.25
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|||||
Taxable
|
2.63
|
|
|
2.51
|
|
|
2.45
|
|
|
2.38
|
|
|
2.35
|
|
Tax-exempt
|
3.35
|
|
|
3.18
|
|
|
3.76
|
|
|
3.62
|
|
|
3.71
|
|
Total available-for-sale securities
|
2.81
|
|
|
2.67
|
|
|
2.75
|
|
|
2.64
|
|
|
2.62
|
|
Held-to-maturity securities—taxable
|
2.42
|
|
|
2.45
|
|
|
2.41
|
|
|
2.36
|
|
|
2.38
|
|
Other securities
|
4.58
|
|
|
3.98
|
|
|
3.86
|
|
|
3.35
|
|
|
3.18
|
|
Total securities
|
2.71
|
|
|
2.62
|
|
|
2.64
|
|
|
2.55
|
|
|
2.55
|
|
Loans held for sale
|
4.17
|
|
|
3.82
|
|
|
3.68
|
|
|
3.83
|
|
|
3.73
|
|
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
4.52
|
|
|
4.28
|
|
|
4.17
|
|
|
4.05
|
|
|
4.04
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
5.26
|
|
|
4.73
|
|
|
4.47
|
|
|
4.55
|
|
|
4.26
|
|
Commercial
|
4.58
|
|
|
4.24
|
|
|
4.03
|
|
|
4.08
|
|
|
3.97
|
|
Commercial real estate
|
4.68
|
|
|
4.32
|
|
|
4.10
|
|
|
4.16
|
|
|
4.02
|
|
Total commercial
|
4.55
|
|
|
4.29
|
|
|
4.15
|
|
|
4.07
|
|
|
4.04
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||
Automobile
|
3.63
|
|
|
3.56
|
|
|
3.61
|
|
|
3.60
|
|
|
3.55
|
|
Home equity
|
5.09
|
|
|
4.90
|
|
|
4.71
|
|
|
4.72
|
|
|
4.61
|
|
Residential mortgage
|
3.69
|
|
|
3.66
|
|
|
3.66
|
|
|
3.65
|
|
|
3.66
|
|
RV and marine finance
|
5.11
|
|
|
5.11
|
|
|
5.25
|
|
|
5.43
|
|
|
5.57
|
|
Other consumer
|
11.90
|
|
|
11.78
|
|
|
11.53
|
|
|
11.59
|
|
|
11.47
|
|
Total consumer
|
4.43
|
|
|
4.34
|
|
|
4.31
|
|
|
4.32
|
|
|
4.27
|
|
Total loans and leases
|
4.49
|
|
|
4.32
|
|
|
4.23
|
|
|
4.20
|
|
|
4.15
|
|
Total earning assets
|
4.07
|
|
|
3.91
|
|
|
3.83
|
|
|
3.78
|
|
|
3.75
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits—noninterest-bearing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Demand deposits—interest-bearing
|
0.38
|
|
|
0.29
|
|
|
0.26
|
|
|
0.23
|
|
|
0.20
|
|
Total demand deposits
|
0.18
|
|
|
0.14
|
|
|
0.12
|
|
|
0.10
|
|
|
0.09
|
|
Money market deposits
|
0.60
|
|
|
0.45
|
|
|
0.40
|
|
|
0.36
|
|
|
0.31
|
|
Savings and other domestic deposits
|
0.21
|
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.21
|
|
Core certificates of deposit
|
1.56
|
|
|
1.01
|
|
|
0.75
|
|
|
0.73
|
|
|
0.56
|
|
Total core deposits
|
0.51
|
|
|
0.36
|
|
|
0.32
|
|
|
0.30
|
|
|
0.26
|
|
Other domestic time deposits of $250,000 or more
|
1.01
|
|
|
0.69
|
|
|
0.54
|
|
|
0.61
|
|
|
0.49
|
|
Brokered deposits and negotiable CDs
|
1.81
|
|
|
1.47
|
|
|
1.21
|
|
|
1.16
|
|
|
0.95
|
|
Total deposits
|
0.59
|
|
|
0.43
|
|
|
0.37
|
|
|
0.35
|
|
|
0.31
|
|
Short-term borrowings
|
1.82
|
|
|
1.47
|
|
|
1.15
|
|
|
0.95
|
|
|
0.78
|
|
Long-term debt
|
3.75
|
|
|
2.92
|
|
|
2.73
|
|
|
2.65
|
|
|
2.49
|
|
Total interest-bearing liabilities
|
1.05
|
|
|
0.82
|
|
|
0.73
|
|
|
0.68
|
|
|
0.61
|
|
Net interest rate spread
|
3.02
|
|
|
3.09
|
|
|
3.10
|
|
|
3.10
|
|
|
3.14
|
|
Impact of noninterest-bearing funds on margin
|
0.27
|
|
|
0.21
|
|
|
0.20
|
|
|
0.19
|
|
|
0.17
|
|
Net interest margin
|
3.29
|
%
|
|
3.30
|
%
|
|
3.30
|
%
|
|
3.29
|
%
|
|
3.31
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(2)
|
Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
|
(3)
|
For purposes of this analysis, NALs are reflected in the average balances of loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Table 5 - Consolidated YTD Average Balance Sheets and Net Interest Margin Analysis
|
||||||||||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
YTD Average Balances
|
|
YTD Average Rates (2)
|
|||||||||||||||||
|
Six months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|||||||||||||||
Fully-taxable equivalent basis (1)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
2018
|
|
2017
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in banks
|
$
|
87
|
|
|
$
|
101
|
|
|
$
|
(14
|
)
|
|
(14
|
)%
|
|
1.96
|
%
|
|
1.31
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Trading account securities
|
84
|
|
|
114
|
|
|
(30
|
)
|
|
(26
|
)
|
|
0.19
|
|
|
0.17
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Taxable
|
10,994
|
|
|
12,401
|
|
|
(1,407
|
)
|
|
(11
|
)
|
|
2.57
|
|
|
2.34
|
|
|||
Tax-exempt
|
3,593
|
|
|
3,075
|
|
|
518
|
|
|
17
|
|
|
3.26
|
|
|
3.74
|
|
|||
Total available-for-sale securities
|
14,587
|
|
|
15,476
|
|
|
(889
|
)
|
|
(6
|
)
|
|
2.74
|
|
|
2.62
|
|
|||
Held-to-maturity securities—taxable
|
8,791
|
|
|
7,541
|
|
|
1,250
|
|
|
17
|
|
|
2.44
|
|
|
2.37
|
|
|||
Other securities
|
602
|
|
|
569
|
|
|
33
|
|
|
6
|
|
|
4.28
|
|
|
3.23
|
|
|||
Total securities
|
24,064
|
|
|
23,700
|
|
|
364
|
|
|
2
|
|
|
2.67
|
|
|
2.55
|
|
|||
Loans held for sale
|
549
|
|
|
470
|
|
|
79
|
|
|
17
|
|
|
4.02
|
|
|
3.76
|
|
|||
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
28,555
|
|
|
27,957
|
|
|
598
|
|
|
2
|
|
|
4.40
|
|
|
4.01
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
1,157
|
|
|
1,221
|
|
|
(64
|
)
|
|
(5
|
)
|
|
4.99
|
|
|
4.09
|
|
|||
Commercial
|
6,188
|
|
|
5,990
|
|
|
198
|
|
|
3
|
|
|
4.41
|
|
|
3.83
|
|
|||
Commercial real estate
|
7,345
|
|
|
7,211
|
|
|
134
|
|
|
2
|
|
|
4.50
|
|
|
3.88
|
|
|||
Total commercial
|
35,900
|
|
|
35,168
|
|
|
732
|
|
|
2
|
|
|
4.42
|
|
|
3.98
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Automobile
|
12,186
|
|
|
11,194
|
|
|
992
|
|
|
9
|
|
|
3.60
|
|
|
3.55
|
|
|||
Home equity
|
9,986
|
|
|
9,994
|
|
|
(8
|
)
|
|
—
|
|
|
4.99
|
|
|
4.54
|
|
|||
Residential mortgage
|
9,401
|
|
|
7,879
|
|
|
1,522
|
|
|
19
|
|
|
3.68
|
|
|
3.65
|
|
|||
RV and marine finance
|
2,574
|
|
|
1,957
|
|
|
617
|
|
|
32
|
|
|
5.11
|
|
|
5.60
|
|
|||
Other consumer
|
1,143
|
|
|
972
|
|
|
171
|
|
|
18
|
|
|
11.80
|
|
|
11.49
|
|
|||
Total consumer
|
35,290
|
|
|
31,996
|
|
|
3,294
|
|
|
10
|
|
|
4.39
|
|
|
4.25
|
|
|||
Total loans and leases
|
71,190
|
|
|
67,164
|
|
|
4,026
|
|
|
6
|
|
|
4.41
|
|
|
4.11
|
|
|||
Allowance for loan and lease losses
|
(726
|
)
|
|
(654
|
)
|
|
(72
|
)
|
|
11
|
|
|
|
|
|
|||||
Net loans and leases
|
70,464
|
|
|
66,510
|
|
|
3,954
|
|
|
6
|
|
|
|
|
|
|||||
Total earning assets
|
95,890
|
|
|
91,435
|
|
|
4,455
|
|
|
5
|
|
|
4.00
|
%
|
|
3.73
|
%
|
|||
Cash and due from banks
|
1,250
|
|
|
1,647
|
|
|
(397
|
)
|
|
(24
|
)
|
|
|
|
|
|||||
Intangible assets
|
2,325
|
|
|
2,380
|
|
|
(55
|
)
|
|
(2
|
)
|
|
|
|
|
|||||
All other assets
|
5,598
|
|
|
5,424
|
|
|
174
|
|
|
3
|
|
|
|
|
|
|||||
Total assets
|
$
|
104,337
|
|
|
$
|
100,232
|
|
|
$
|
4,105
|
|
|
4
|
%
|
|
|
|
|
||
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits—noninterest-bearing
|
$
|
20,477
|
|
|
$
|
21,664
|
|
|
$
|
(1,187
|
)
|
|
(5
|
)%
|
|
—
|
%
|
|
—
|
%
|
Demand deposits—interest-bearing
|
18,877
|
|
|
17,127
|
|
|
1,750
|
|
|
10
|
|
|
0.33
|
|
|
0.18
|
|
|||
Total demand deposits
|
39,354
|
|
|
38,791
|
|
|
563
|
|
|
1
|
|
|
0.16
|
|
|
0.08
|
|
|||
Money market deposits
|
20,811
|
|
|
18,934
|
|
|
1,877
|
|
|
10
|
|
|
0.52
|
|
|
0.29
|
|
|||
Savings and other domestic deposits
|
11,182
|
|
|
11,930
|
|
|
(748
|
)
|
|
(6
|
)
|
|
0.20
|
|
|
0.21
|
|
|||
Core certificates of deposit
|
3,048
|
|
|
2,243
|
|
|
805
|
|
|
36
|
|
|
1.35
|
|
|
0.47
|
|
|||
Total core deposits
|
74,395
|
|
|
71,898
|
|
|
2,497
|
|
|
3
|
|
|
0.44
|
|
|
0.24
|
|
|||
Other domestic time deposits of $250,000 or more
|
245
|
|
|
474
|
|
|
(229
|
)
|
|
(48
|
)
|
|
0.85
|
|
|
0.47
|
|
|||
Brokered deposits and negotiable CDs
|
3,485
|
|
|
3,876
|
|
|
(391
|
)
|
|
(10
|
)
|
|
1.65
|
|
|
0.83
|
|
|||
Total deposits
|
78,125
|
|
|
76,248
|
|
|
1,877
|
|
|
2
|
|
|
0.51
|
|
|
0.28
|
|
|||
Short-term borrowings
|
4,149
|
|
|
3,236
|
|
|
913
|
|
|
28
|
|
|
1.60
|
|
|
0.69
|
|
|||
Long-term debt
|
9,092
|
|
|
8,630
|
|
|
462
|
|
|
5
|
|
|
3.34
|
|
|
2.41
|
|
|||
Total interest-bearing liabilities
|
70,889
|
|
|
66,450
|
|
|
4,439
|
|
|
7
|
|
|
0.94
|
|
|
0.58
|
|
|||
All other liabilities
|
1,876
|
|
|
1,609
|
|
|
267
|
|
|
17
|
|
|
|
|
|
|||||
Shareholders’ equity
|
11,095
|
|
|
10,509
|
|
|
586
|
|
|
6
|
|
|
|
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
104,337
|
|
|
$
|
100,232
|
|
|
$
|
4,105
|
|
|
4
|
%
|
|
|
|
|
||
Net interest rate spread
|
|
|
|
|
|
|
|
|
3.06
|
|
|
3.15
|
|
|||||||
Impact of noninterest-bearing funds on margin
|
|
|
|
|
|
|
|
|
0.24
|
|
|
0.16
|
|
|||||||
Net interest margin
|
|
|
|
|
|
|
|
|
3.30
|
%
|
|
3.31
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(2)
|
Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
|
(3)
|
For purposes of this analysis, NALs are reflected in the average balances of loans.
|
Table 6 - Noninterest Income
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
2Q18 vs. 2Q17
|
|
2Q18 vs. 1Q18
|
||||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Service charges on deposit accounts
|
$
|
91
|
|
|
$
|
86
|
|
|
$
|
88
|
|
|
$
|
3
|
|
|
3
|
%
|
|
$
|
5
|
|
|
6
|
%
|
Cards and payment processing income
|
56
|
|
|
53
|
|
|
52
|
|
|
4
|
|
|
8
|
|
|
3
|
|
|
6
|
|
|||||
Trust and investment management services
|
42
|
|
|
44
|
|
|
37
|
|
|
5
|
|
|
14
|
|
|
(2
|
)
|
|
(5
|
)
|
|||||
Mortgage banking income
|
28
|
|
|
26
|
|
|
32
|
|
|
(4
|
)
|
|
(13
|
)
|
|
2
|
|
|
8
|
|
|||||
Insurance income
|
21
|
|
|
21
|
|
|
22
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|||||
Capital markets fees
|
21
|
|
|
19
|
|
|
17
|
|
|
4
|
|
|
24
|
|
|
2
|
|
|
11
|
|
|||||
Bank owned life insurance income
|
17
|
|
|
15
|
|
|
15
|
|
|
2
|
|
|
13
|
|
|
2
|
|
|
13
|
|
|||||
Gain on sale of loans
|
15
|
|
|
8
|
|
|
12
|
|
|
3
|
|
|
25
|
|
|
7
|
|
|
88
|
|
|||||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other income
|
45
|
|
|
42
|
|
|
50
|
|
|
(5
|
)
|
|
(10
|
)
|
|
3
|
|
|
7
|
|
|||||
Total noninterest income
|
$
|
336
|
|
|
$
|
314
|
|
|
$
|
325
|
|
|
$
|
11
|
|
|
3
|
%
|
|
$
|
22
|
|
|
7
|
%
|
Table 8 - Noninterest Expense
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
2Q18 vs. 2Q17
|
|
2Q18 vs. 1Q18
|
||||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Personnel costs
|
$
|
396
|
|
|
$
|
376
|
|
|
$
|
392
|
|
|
$
|
4
|
|
|
1
|
%
|
|
$
|
20
|
|
|
5
|
%
|
Outside data processing and other services
|
69
|
|
|
73
|
|
|
75
|
|
|
(6
|
)
|
|
(8
|
)
|
|
(4
|
)
|
|
(5
|
)
|
|||||
Net occupancy
|
35
|
|
|
41
|
|
|
53
|
|
|
(18
|
)
|
|
(34
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|||||
Equipment
|
38
|
|
|
40
|
|
|
43
|
|
|
(5
|
)
|
|
(12
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|||||
Deposit and other insurance expense
|
18
|
|
|
18
|
|
|
20
|
|
|
(2
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
15
|
|
|
11
|
|
|
18
|
|
|
(3
|
)
|
|
(17
|
)
|
|
4
|
|
|
36
|
|
|||||
Marketing
|
18
|
|
|
8
|
|
|
19
|
|
|
(1
|
)
|
|
(5
|
)
|
|
10
|
|
|
125
|
|
|||||
Amortization of intangibles
|
13
|
|
|
14
|
|
|
14
|
|
|
(1
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|||||
Other noninterest expense
|
50
|
|
|
52
|
|
|
60
|
|
|
(10
|
)
|
|
(17
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|||||
Total noninterest expense
|
$
|
652
|
|
|
$
|
633
|
|
|
$
|
694
|
|
|
$
|
(42
|
)
|
|
(6
|
)%
|
|
$
|
19
|
|
|
3
|
%
|
Number of employees (average full-time equivalent)
|
15,732
|
|
|
15,599
|
|
|
16,103
|
|
|
(371
|
)
|
|
(2
|
)%
|
|
133
|
|
|
1
|
%
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
||||||
Personnel costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
Outside data processing and other services
|
—
|
|
|
—
|
|
|
6
|
|
|||
Net occupancy
|
—
|
|
|
—
|
|
|
14
|
|
|||
Equipment
|
—
|
|
|
—
|
|
|
4
|
|
|||
Professional services
|
—
|
|
|
—
|
|
|
4
|
|
|||
Marketing
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other noninterest expense
|
—
|
|
|
—
|
|
|
4
|
|
|||
Total noninterest expense adjustments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
Three Months Ended
|
|
2Q18 vs. 2Q17
|
|
2Q18 vs. 1Q18
|
||||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Personnel costs
|
$
|
396
|
|
|
$
|
376
|
|
|
$
|
374
|
|
|
$
|
22
|
|
|
6
|
%
|
|
$
|
20
|
|
|
5
|
%
|
Outside data processing and other services
|
69
|
|
|
73
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(5
|
)
|
|||||
Net occupancy
|
35
|
|
|
41
|
|
|
39
|
|
|
(4
|
)
|
|
(10
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|||||
Equipment
|
38
|
|
|
40
|
|
|
39
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|||||
Deposit and other insurance expense
|
18
|
|
|
18
|
|
|
20
|
|
|
(2
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
15
|
|
|
11
|
|
|
14
|
|
|
1
|
|
|
7
|
|
|
4
|
|
|
36
|
|
|||||
Marketing
|
18
|
|
|
8
|
|
|
19
|
|
|
(1
|
)
|
|
(5
|
)
|
|
10
|
|
|
125
|
|
|||||
Amortization of intangibles
|
13
|
|
|
14
|
|
|
14
|
|
|
(1
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|||||
Other noninterest expense
|
50
|
|
|
52
|
|
|
56
|
|
|
(6
|
)
|
|
(11
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|||||
Total adjusted noninterest expense (Non-GAAP)
|
$
|
652
|
|
|
$
|
633
|
|
|
$
|
644
|
|
|
$
|
8
|
|
|
1
|
%
|
|
$
|
19
|
|
|
3
|
%
|
Table 9 - Noninterest Expense—2018 First Six Months vs. 2017 First Six Months
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Personnel costs
|
$
|
772
|
|
|
$
|
774
|
|
|
$
|
(2
|
)
|
|
—
|
%
|
Outside data processing and other services
|
142
|
|
|
162
|
|
|
(20
|
)
|
|
(12
|
)
|
|||
Net occupancy
|
76
|
|
|
120
|
|
|
(44
|
)
|
|
(37
|
)
|
|||
Equipment
|
78
|
|
|
90
|
|
|
(12
|
)
|
|
(13
|
)
|
|||
Deposit and other insurance expense
|
36
|
|
|
41
|
|
|
(5
|
)
|
|
(12
|
)
|
|||
Professional services
|
26
|
|
|
36
|
|
|
(10
|
)
|
|
(28
|
)
|
|||
Marketing
|
26
|
|
|
33
|
|
|
(7
|
)
|
|
(21
|
)
|
|||
Amortization of intangibles
|
27
|
|
|
29
|
|
|
(2
|
)
|
|
(7
|
)
|
|||
Other noninterest expense
|
102
|
|
|
117
|
|
|
(15
|
)
|
|
(13
|
)
|
|||
Total noninterest expense
|
$
|
1,285
|
|
|
$
|
1,402
|
|
|
$
|
(117
|
)
|
|
(8
|
)%
|
|
Six Months Ended June 30,
|
||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
||||
Personnel costs
|
$
|
—
|
|
|
$
|
37
|
|
Outside data processing and other services
|
—
|
|
|
21
|
|
||
Net occupancy
|
—
|
|
|
38
|
|
||
Equipment
|
—
|
|
|
10
|
|
||
Professional services
|
—
|
|
|
8
|
|
||
Marketing
|
—
|
|
|
1
|
|
||
Other noninterest expense
|
—
|
|
|
9
|
|
||
Total noninterest expense adjustments
|
$
|
—
|
|
|
$
|
124
|
|
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in thousands)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Personnel costs
|
$
|
772
|
|
|
$
|
737
|
|
|
$
|
35
|
|
|
5
|
%
|
Outside data processing and other services
|
142
|
|
|
141
|
|
|
1
|
|
|
1
|
|
|||
Net occupancy
|
76
|
|
|
82
|
|
|
(6
|
)
|
|
(7
|
)
|
|||
Equipment
|
78
|
|
|
80
|
|
|
(2
|
)
|
|
(3
|
)
|
|||
Deposit and other insurance expense
|
36
|
|
|
41
|
|
|
(5
|
)
|
|
(12
|
)
|
|||
Professional services
|
26
|
|
|
28
|
|
|
(2
|
)
|
|
(7
|
)
|
|||
Marketing
|
26
|
|
|
32
|
|
|
(6
|
)
|
|
(19
|
)
|
|||
Amortization of intangibles
|
27
|
|
|
29
|
|
|
(2
|
)
|
|
(7
|
)
|
|||
Other noninterest expense
|
102
|
|
|
108
|
|
|
(6
|
)
|
|
(6
|
)
|
|||
Total adjusted noninterest expense (Non-GAAP)
|
$
|
1,285
|
|
|
$
|
1,278
|
|
|
$
|
7
|
|
|
1
|
%
|
(1)
|
Amounts include $3.2 billion, $3.4 billion, $3.2 billion, $3.0 billion and $3.2 billion of auto dealer services loans at
June 30, 2018
,
March 31, 2018
,
December 31, 2017
,
September 30, 2017
and
June 30, 2017
, respectively.
|
(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, other real estate owned, and other NPAs.
|
(1)
|
Percentages represent the percentage of each loan and lease category to total loans and leases.
|
Table 16 - Year to Date Net Charge-off Analysis
|
|||||||
|
Six Months Ended June 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Net charge-offs (recoveries) by loan and lease type: (1)
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
20
|
|
|
$
|
21
|
|
Commercial real estate:
|
|
|
|
||||
Construction
|
(1
|
)
|
|
(3
|
)
|
||
Commercial
|
(14
|
)
|
|
(3
|
)
|
||
Commercial real estate
|
(15
|
)
|
|
(6
|
)
|
||
Total commercial
|
5
|
|
|
15
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
17
|
|
|
21
|
|
||
Home equity
|
3
|
|
|
3
|
|
||
Residential mortgage
|
2
|
|
|
4
|
|
||
RV and marine finance
|
5
|
|
|
4
|
|
||
Other consumer
|
34
|
|
|
28
|
|
||
Total consumer
|
61
|
|
|
60
|
|
||
Total net charge-offs
|
$
|
66
|
|
|
$
|
75
|
|
|
|
|
|
||||
|
|
|
|
||||
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Net charge-offs (recoveries) - annualized percentages:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
0.14
|
%
|
|
0.15
|
%
|
||
Commercial real estate:
|
|
|
|
||||
Construction
|
(0.20
|
)
|
|
(0.50
|
)
|
||
Commercial
|
(0.42
|
)
|
|
(0.09
|
)
|
||
Commercial real estate
|
(0.39
|
)
|
|
(0.16
|
)
|
||
Total commercial
|
0.03
|
|
|
0.09
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
0.27
|
|
|
0.37
|
|
||
Home equity
|
0.06
|
|
|
0.06
|
|
||
Residential mortgage
|
0.04
|
|
|
0.09
|
|
||
RV and marine finance
|
0.38
|
|
|
0.43
|
|
||
Other consumer
|
6.02
|
|
|
5.93
|
|
||
Total consumer
|
0.34
|
|
|
0.38
|
|
||
Net charge-offs as a % of average loans
|
0.19
|
%
|
|
0.22
|
%
|
Table 19 - Deposit Composition
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|||||||||||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|||||||||||||||||||||||||
By Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits—noninterest-bearing
|
$
|
20,353
|
|
|
26
|
%
|
|
$
|
20,807
|
|
|
26
|
%
|
|
$
|
21,546
|
|
|
28
|
%
|
|
$
|
22,225
|
|
|
28
|
%
|
|
$
|
21,420
|
|
|
28
|
%
|
Demand deposits—interest-bearing
|
19,026
|
|
|
24
|
|
|
19,337
|
|
|
25
|
|
|
18,001
|
|
|
23
|
|
|
18,343
|
|
|
23
|
|
|
17,113
|
|
|
23
|
|
|||||
Money market deposits
|
20,990
|
|
|
26
|
|
|
20,849
|
|
|
26
|
|
|
20,690
|
|
|
27
|
|
|
20,553
|
|
|
26
|
|
|
19,423
|
|
|
26
|
|
|||||
Savings and other domestic deposits
|
10,987
|
|
|
14
|
|
|
11,291
|
|
|
14
|
|
|
11,270
|
|
|
15
|
|
|
11,441
|
|
|
15
|
|
|
11,758
|
|
|
15
|
|
|||||
Core certificates of deposit
|
4,402
|
|
|
6
|
|
|
3,157
|
|
|
4
|
|
|
1,934
|
|
|
3
|
|
|
2,009
|
|
|
3
|
|
|
2,088
|
|
|
3
|
|
|||||
Total core deposits:
|
75,758
|
|
|
96
|
|
|
75,441
|
|
|
95
|
|
|
73,441
|
|
|
96
|
|
|
74,571
|
|
|
95
|
|
|
71,802
|
|
|
95
|
|
|||||
Other domestic deposits of $250,000 or more
|
265
|
|
|
—
|
|
|
228
|
|
|
—
|
|
|
239
|
|
|
—
|
|
|
418
|
|
|
1
|
|
|
441
|
|
|
1
|
|
|||||
Brokered deposits and negotiable CDs
|
3,564
|
|
|
4
|
|
|
3,802
|
|
|
5
|
|
|
3,361
|
|
|
4
|
|
|
3,456
|
|
|
4
|
|
|
3,690
|
|
|
4
|
|
|||||
Total deposits
|
$
|
79,587
|
|
|
100
|
%
|
|
$
|
79,471
|
|
|
100
|
%
|
|
$
|
77,041
|
|
|
100
|
%
|
|
$
|
78,445
|
|
|
100
|
%
|
|
$
|
75,933
|
|
|
100
|
%
|
Total core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
34,094
|
|
|
45
|
%
|
|
$
|
34,615
|
|
|
46
|
%
|
|
$
|
34,273
|
|
|
47
|
%
|
|
$
|
35,516
|
|
|
48
|
%
|
|
$
|
32,201
|
|
|
45
|
%
|
Consumer
|
41,664
|
|
|
55
|
|
|
40,826
|
|
|
54
|
|
|
39,168
|
|
|
53
|
|
|
39,055
|
|
|
52
|
|
|
39,601
|
|
|
55
|
|
|||||
Total core deposits
|
$
|
75,758
|
|
|
100
|
%
|
|
$
|
75,441
|
|
|
100
|
%
|
|
$
|
73,441
|
|
|
100
|
%
|
|
$
|
74,571
|
|
|
100
|
%
|
|
$
|
71,802
|
|
|
100
|
%
|
Consumer and Business Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 22 - Key Performance Indicators for Consumer and Business Banking
|
||||||||||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
808
|
|
|
$
|
759
|
|
|
$
|
49
|
|
|
6
|
%
|
Provision for credit losses
|
59
|
|
|
51
|
|
|
8
|
|
|
16
|
|
|||
Noninterest income
|
361
|
|
|
355
|
|
|
6
|
|
|
2
|
|
|||
Noninterest expense
|
840
|
|
|
826
|
|
|
14
|
|
|
2
|
|
|||
Provision for income taxes
|
57
|
|
|
83
|
|
|
(26
|
)
|
|
(31
|
)
|
|||
Net income
|
$
|
213
|
|
|
$
|
154
|
|
|
$
|
59
|
|
|
38
|
%
|
Number of employees (average full-time equivalent)
|
8,430
|
|
|
8,816
|
|
|
(386
|
)
|
|
(4
|
)%
|
|||
Total average assets
|
$
|
26,449
|
|
|
$
|
25,318
|
|
|
$
|
1,131
|
|
|
4
|
|
Total average loans/leases
|
21,542
|
|
|
20,514
|
|
|
1,028
|
|
|
5
|
|
|||
Total average deposits
|
46,281
|
|
|
45,260
|
|
|
1,021
|
|
|
2
|
|
|||
Net interest margin
|
3.62
|
%
|
|
3.48
|
%
|
|
0.14
|
%
|
|
4
|
|
|||
NCOs
|
$
|
49
|
|
|
$
|
49
|
|
|
$
|
—
|
|
|
—
|
|
NCOs as a % of average loans and leases
|
0.45
|
%
|
|
0.47
|
%
|
|
(0.02
|
)%
|
|
(4
|
)
|
Commercial Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 23 - Key Performance Indicators for Commercial Banking
|
||||||||||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
449
|
|
|
$
|
452
|
|
|
$
|
(3
|
)
|
|
(1
|
)%
|
Provision for credit losses
|
39
|
|
|
16
|
|
|
23
|
|
|
144
|
|
|||
Noninterest income
|
149
|
|
|
134
|
|
|
15
|
|
|
11
|
|
|||
Noninterest expense
|
249
|
|
|
236
|
|
|
13
|
|
|
6
|
|
|||
Provision for income taxes
|
65
|
|
|
117
|
|
|
(52
|
)
|
|
(44
|
)
|
|||
Net income
|
$
|
245
|
|
|
$
|
217
|
|
|
$
|
28
|
|
|
13
|
%
|
Number of employees (average full-time equivalent)
|
1,238
|
|
|
1,244
|
|
|
(6
|
)
|
|
—
|
%
|
|||
Total average assets
|
$
|
32,731
|
|
|
$
|
31,338
|
|
|
$
|
1,393
|
|
|
4
|
|
Total average loans/leases
|
26,239
|
|
|
25,354
|
|
|
885
|
|
|
3
|
|
|||
Total average deposits
|
21,675
|
|
|
20,276
|
|
|
1,399
|
|
|
7
|
|
|||
Net interest margin
|
3.15
|
%
|
|
3.36
|
%
|
|
(0.21
|
)%
|
|
(6
|
)
|
|||
NCOs (Recoveries)
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
$
|
(6
|
)
|
|
(600
|
)
|
NCOs as a % of average loans and leases
|
(0.04
|
)%
|
|
0.01
|
%
|
|
(0.05
|
)%
|
|
(500
|
)
|
Regional Banking and The Huntington Private Client Group
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 25 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
|
||||||||||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
91
|
|
|
$
|
83
|
|
|
$
|
8
|
|
|
10
|
%
|
Provision for credit losses
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||
Noninterest income
|
98
|
|
|
94
|
|
|
4
|
|
|
4
|
|
|||
Noninterest expense
|
123
|
|
|
124
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Provision for income taxes
|
13
|
|
|
19
|
|
|
(6
|
)
|
|
(32
|
)
|
|||
Net income
|
$
|
52
|
|
|
$
|
34
|
|
|
$
|
18
|
|
|
53
|
%
|
Number of employees (average full-time equivalent)
|
1,017
|
|
|
1,034
|
|
|
(17
|
)
|
|
(2
|
)%
|
|||
Total average assets
|
$
|
5,931
|
|
|
$
|
5,404
|
|
|
$
|
527
|
|
|
10
|
|
Total average loans/leases
|
5,268
|
|
|
4,701
|
|
|
567
|
|
|
12
|
|
|||
Total average deposits
|
5,910
|
|
|
6,076
|
|
|
(166
|
)
|
|
(3
|
)
|
|||
Net interest margin
|
3.18
|
%
|
|
2.82
|
%
|
|
0.36
|
%
|
|
13
|
|
|||
NCOs
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
(100
|
)
|
NCOs as a % of average loans and leases
|
0.02
|
%
|
|
0.04
|
%
|
|
(0.02
|
)%
|
|
(50
|
)
|
|||
Total assets under management (in billions)—eop
|
$
|
17.9
|
|
|
$
|
17.6
|
|
|
$
|
0.3
|
|
|
2
|
|
Total trust assets (in billions)—eop
|
122.5
|
|
|
101.6
|
|
|
20.9
|
|
|
21
|
|
•
|
Tangible common equity to tangible assets, and
|
•
|
Tangible common
equity to risk-weighted assets using Basel III definitions.
|
|
June 30,
|
|
December 31,
|
||||
(dollar amounts in millions, except number of shares)
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,382
|
|
|
$
|
1,520
|
|
Interest-bearing deposits in banks
|
41
|
|
|
47
|
|
||
Trading account securities
|
85
|
|
|
86
|
|
||
Available-for-sale securities
|
14,070
|
|
|
14,869
|
|
||
Held-to-maturity securities
|
8,682
|
|
|
9,091
|
|
||
Other securities
|
597
|
|
|
600
|
|
||
Loans held for sale (includes $643 and $413 respectively, measured at fair value)(1)
|
709
|
|
|
488
|
|
||
Loans and leases (includes $84 and $93 respectively, measured at fair value)(1)
|
72,406
|
|
|
70,117
|
|
||
Allowance for loan and lease losses
|
(741
|
)
|
|
(691
|
)
|
||
Net loans and leases
|
71,665
|
|
|
69,426
|
|
||
Bank owned life insurance
|
2,488
|
|
|
2,466
|
|
||
Premises and equipment
|
840
|
|
|
864
|
|
||
Goodwill
|
1,993
|
|
|
1,993
|
|
||
Other intangible assets
|
319
|
|
|
346
|
|
||
Servicing rights
|
248
|
|
|
238
|
|
||
Accrued income and other assets
|
2,239
|
|
|
2,151
|
|
||
Total assets
|
$
|
105,358
|
|
|
$
|
104,185
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits
|
$
|
79,587
|
|
|
$
|
77,041
|
|
Short-term borrowings
|
2,442
|
|
|
5,056
|
|
||
Long-term debt
|
9,726
|
|
|
9,206
|
|
||
Accrued expenses and other liabilities
|
2,131
|
|
|
2,068
|
|
||
Total liabilities
|
93,886
|
|
|
93,371
|
|
||
Commitments and contingencies (Note 17)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock
|
1,203
|
|
|
1,071
|
|
||
Common stock
|
11
|
|
|
11
|
|
||
Capital surplus
|
10,038
|
|
|
9,707
|
|
||
Less treasury shares, at cost
|
(40
|
)
|
|
(35
|
)
|
||
Accumulated other comprehensive loss
|
(730
|
)
|
|
(528
|
)
|
||
Retained earnings
|
990
|
|
|
588
|
|
||
Total shareholders’ equity
|
11,472
|
|
|
10,814
|
|
||
Total liabilities and shareholders’ equity
|
$
|
105,358
|
|
|
$
|
104,185
|
|
Common shares authorized (par value of $0.01)
|
1,500,000,000
|
|
|
1,500,000,000
|
|
||
Common shares issued
|
1,107,817,801
|
|
|
1,075,294,946
|
|
||
Common shares outstanding
|
1,104,226,603
|
|
|
1,072,026,681
|
|
||
Treasury shares outstanding
|
3,591,198
|
|
|
3,268,265
|
|
||
Preferred stock, authorized shares
|
6,617,808
|
|
|
6,617,808
|
|
||
Preferred shares issued
|
2,707,571
|
|
|
2,702,571
|
|
||
Preferred shares outstanding
|
740,500
|
|
|
1,098,006
|
|
(1)
|
Amounts represent loans for which Huntington has elected the fair value option. See Note
14
.
|
Huntington Bancshares Incorporated
|
|
|
|
|
|
|
|
||||||||
Condensed Consolidated Statements of Income
|
|
|
|
|
|
|
|
||||||||
(Unaudited)
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest and fee income:
|
|
|
|
|
|
|
|
||||||||
Loans and leases
|
$
|
810
|
|
|
$
|
700
|
|
|
$
|
1,566
|
|
|
$
|
1,376
|
|
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Taxable
|
71
|
|
|
74
|
|
|
141
|
|
|
145
|
|
||||
Tax-exempt
|
24
|
|
|
19
|
|
|
47
|
|
|
38
|
|
||||
Held-to-maturity securities—taxable
|
53
|
|
|
44
|
|
|
107
|
|
|
89
|
|
||||
Other securities
|
|
|
|
|
|
|
|
||||||||
Taxable
|
7
|
|
|
4
|
|
|
13
|
|
|
9
|
|
||||
Other
|
7
|
|
|
5
|
|
|
12
|
|
|
10
|
|
||||
Total interest income
|
972
|
|
|
846
|
|
|
1,886
|
|
|
1,667
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
87
|
|
|
42
|
|
|
147
|
|
|
77
|
|
||||
Short-term borrowings
|
14
|
|
|
5
|
|
|
33
|
|
|
11
|
|
||||
Subordinated notes and other long-term debt
|
87
|
|
|
54
|
|
|
152
|
|
|
104
|
|
||||
Total interest expense
|
188
|
|
|
101
|
|
|
332
|
|
|
192
|
|
||||
Net interest income
|
784
|
|
|
745
|
|
|
1,554
|
|
|
1,475
|
|
||||
Provision for credit losses
|
56
|
|
|
25
|
|
|
122
|
|
|
93
|
|
||||
Net interest income after provision for credit losses
|
728
|
|
|
720
|
|
|
1,432
|
|
|
1,382
|
|
||||
Service charges on deposit accounts
|
91
|
|
|
88
|
|
|
177
|
|
|
171
|
|
||||
Cards and payment processing income
|
56
|
|
|
52
|
|
|
109
|
|
|
100
|
|
||||
Trust and investment management services
|
42
|
|
|
37
|
|
|
86
|
|
|
76
|
|
||||
Mortgage banking income
|
28
|
|
|
32
|
|
|
54
|
|
|
64
|
|
||||
Insurance income
|
21
|
|
|
22
|
|
|
42
|
|
|
42
|
|
||||
Capital markets fees
|
21
|
|
|
17
|
|
|
40
|
|
|
31
|
|
||||
Bank owned life insurance income
|
17
|
|
|
15
|
|
|
32
|
|
|
33
|
|
||||
Gain on sale of loans
|
15
|
|
|
12
|
|
|
23
|
|
|
25
|
|
||||
Net gains on sales of securities
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Impairment losses on available-for-sale securities
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Other noninterest income
|
45
|
|
|
50
|
|
|
87
|
|
|
96
|
|
||||
Total noninterest income
|
336
|
|
|
325
|
|
|
650
|
|
|
638
|
|
||||
Personnel costs
|
396
|
|
|
392
|
|
|
772
|
|
|
774
|
|
||||
Outside data processing and other services
|
69
|
|
|
75
|
|
|
142
|
|
|
162
|
|
||||
Net occupancy
|
35
|
|
|
53
|
|
|
76
|
|
|
120
|
|
||||
Equipment
|
38
|
|
|
43
|
|
|
78
|
|
|
90
|
|
||||
Deposit and other insurance expense
|
18
|
|
|
20
|
|
|
36
|
|
|
41
|
|
||||
Professional services
|
15
|
|
|
18
|
|
|
26
|
|
|
36
|
|
||||
Marketing
|
18
|
|
|
19
|
|
|
26
|
|
|
33
|
|
||||
Amortization of intangibles
|
13
|
|
|
14
|
|
|
27
|
|
|
29
|
|
||||
Other noninterest expense
|
50
|
|
|
60
|
|
|
102
|
|
|
117
|
|
||||
Total noninterest expense
|
652
|
|
|
694
|
|
|
1,285
|
|
|
1,402
|
|
||||
Income before income taxes
|
412
|
|
|
351
|
|
|
797
|
|
|
618
|
|
||||
Provision for income taxes
|
57
|
|
|
79
|
|
|
116
|
|
|
138
|
|
||||
Net income
|
355
|
|
|
272
|
|
|
681
|
|
|
480
|
|
||||
Dividends on preferred shares
|
21
|
|
|
19
|
|
|
33
|
|
|
38
|
|
||||
Net income applicable to common shares
|
$
|
334
|
|
|
$
|
253
|
|
|
$
|
648
|
|
|
$
|
442
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
355
|
|
|
$
|
272
|
|
|
$
|
681
|
|
|
$
|
480
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Non-credit-related impairment recoveries (losses) on debt securities not expected to be sold
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Unrealized net gains (losses) on available-for-sale securities arising during the period, net of reclassification for net realized gains and losses
|
(53
|
)
|
|
37
|
|
|
(203
|
)
|
|
47
|
|
||||
Total unrealized gains (losses) on available-for-sale securities
|
(53
|
)
|
|
38
|
|
|
(203
|
)
|
|
49
|
|
||||
Unrealized gains (losses) on cash flow hedging derivatives, net of reclassifications to income
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Change in accumulated unrealized losses for pension and other post-retirement obligations
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Other comprehensive income (loss), net of tax
|
(52
|
)
|
|
40
|
|
|
(201
|
)
|
|
51
|
|
||||
Comprehensive income
|
$
|
303
|
|
|
$
|
312
|
|
|
$
|
480
|
|
|
$
|
531
|
|
(dollar amounts in millions, except per share amounts)
|
Preferred Stock
|
|
Common Stock
|
|
Capital Surplus
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings (Deficit)
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
||||||||||||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,071
|
|
|
1,075,295
|
|
|
$
|
11
|
|
|
$
|
9,707
|
|
|
(3,268
|
)
|
|
$
|
(35
|
)
|
|
$
|
(528
|
)
|
|
$
|
588
|
|
|
$
|
10,814
|
|
Cumulative-effect adjustment (ASU 2016-01)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
681
|
|
|
681
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(201
|
)
|
|
|
|
(201
|
)
|
||||||||||||||
Net proceeds from issuance of Preferred Series E Stock
|
495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
495
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(3,007
|
)
|
|
—
|
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
(48
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.22 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(243
|
)
|
|
(243
|
)
|
||||||||||||||
Preferred Series B ($23.67 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($29.38 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series D ($31.25 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
(19
|
)
|
||||||||||||||
Preferred Series E ($2042.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||||||||||
Conversion of Preferred Series A Stock to Common Stock
|
(363
|
)
|
|
30,330
|
|
|
|
|
363
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
44
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
5,199
|
|
|
—
|
|
|
(28
|
)
|
|
|
|
|
|
|
|
(4
|
)
|
|
(32
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
|
|
|
|
(5
|
)
|
||||||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,107,817
|
|
|
$
|
11
|
|
|
$
|
10,038
|
|
|
(3,268
|
)
|
|
$
|
(40
|
)
|
|
$
|
(730
|
)
|
|
$
|
990
|
|
|
$
|
11,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,071
|
|
|
1,088,641
|
|
|
$
|
11
|
|
|
$
|
9,881
|
|
|
(2,953
|
)
|
|
$
|
(27
|
)
|
|
$
|
(401
|
)
|
|
$
|
(227
|
)
|
|
$
|
10,308
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
480
|
|
|
480
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
51
|
|
|
|
|
51
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.16 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(174
|
)
|
|
(174
|
)
|
||||||||||||||
Preferred Series A ($42.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15
|
)
|
|
(15
|
)
|
||||||||||||||
Preferred Series B ($18.95 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($29.38 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series D ($31.25 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
(19
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
52
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
4,514
|
|
|
—
|
|
|
(15
|
)
|
|
|
|
|
|
|
|
(7
|
)
|
|
(22
|
)
|
|||||||||||
Other
|
|
|
7
|
|
|
—
|
|
|
1
|
|
|
(193
|
)
|
|
(4
|
)
|
|
|
|
—
|
|
|
(3
|
)
|
|||||||||
Balance, end of period
|
$
|
1,071
|
|
|
1,093,162
|
|
|
$
|
11
|
|
|
$
|
9,919
|
|
|
(3,146
|
)
|
|
$
|
(31
|
)
|
|
$
|
(350
|
)
|
|
$
|
34
|
|
|
$
|
10,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, |
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Operating activities
|
|
||||||
Net income
|
$
|
681
|
|
|
$
|
480
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
||||||
Provision for credit losses
|
122
|
|
|
93
|
|
||
Depreciation and amortization
|
228
|
|
|
211
|
|
||
Share-based compensation expense
|
44
|
|
|
52
|
|
||
Deferred income tax expense
|
139
|
|
|
12
|
|
||
Net change in:
|
|
|
|
||||
Trading account securities
|
1
|
|
|
39
|
|
||
Loans held for sale
|
(274
|
)
|
|
(221
|
)
|
||
Accrued income and other assets
|
(170
|
)
|
|
(58
|
)
|
||
Accrued expense and other liabilities
|
(33
|
)
|
|
(60
|
)
|
||
Other, net
|
(136
|
)
|
|
11
|
|
||
Net cash provided by (used in) operating activities
|
602
|
|
|
559
|
|
||
Investing activities
|
|
||||||
Change in interest bearing deposits in banks
|
56
|
|
|
19
|
|
||
Proceeds from:
|
|
|
|
||||
Maturities and calls of available-for-sale securities
|
1,014
|
|
|
716
|
|
||
Maturities of held-to-maturity securities
|
350
|
|
|
523
|
|
||
Maturities and calls of other securities
|
5
|
|
|
—
|
|
||
Sales of available-for-sale securities
|
381
|
|
|
406
|
|
||
Sales of other securities
|
—
|
|
|
6
|
|
||
Purchases of available-for-sale securities
|
(771
|
)
|
|
(1,850
|
)
|
||
Purchases of held-to-maturity securities
|
(71
|
)
|
|
(9
|
)
|
||
Purchases of other securities
|
(2
|
)
|
|
(41
|
)
|
||
Net proceeds from sales of portfolio loans
|
310
|
|
|
259
|
|
||
Net loan and lease activity, excluding sales and purchases
|
(2,619
|
)
|
|
(1,429
|
)
|
||
Purchases of premises and equipment
|
(38
|
)
|
|
(113
|
)
|
||
Proceeds from sales of other real estate
|
13
|
|
|
18
|
|
||
Purchases of loans and leases
|
(104
|
)
|
|
(94
|
)
|
||
Other, net
|
18
|
|
|
9
|
|
||
Net cash provided by (used in) investing activities
|
(1,458
|
)
|
|
(1,580
|
)
|
||
Financing activities
|
|
|
|
||||
Increase (decrease) in deposits
|
2,546
|
|
|
326
|
|
||
Increase (decrease) in short-term borrowings
|
(2,579
|
)
|
|
838
|
|
||
Net proceeds from issuance of long-term debt
|
1,331
|
|
|
1,061
|
|
||
Maturity/redemption of long-term debt
|
(734
|
)
|
|
(843
|
)
|
||
Dividends paid on preferred stock
|
(30
|
)
|
|
(38
|
)
|
||
Dividends paid on common stock
|
(240
|
)
|
|
(174
|
)
|
||
Repurchases of common stock
|
(48
|
)
|
|
—
|
|
||
Proceeds from stock options exercised
|
4
|
|
|
6
|
|
||
Net proceeds from issuance of preferred stock
|
495
|
|
|
—
|
|
||
Payments related to tax-withholding for share based compensation awards
|
(27
|
)
|
|
(25
|
)
|
||
Other, net
|
—
|
|
|
—
|
|
||
Net cash provided by (used for) financing activities
|
718
|
|
|
1,151
|
|
||
Increase (decrease) in cash a cash equivalents
|
(138
|
)
|
|
130
|
|
||
Cash and cash equivalents at beginning of period
|
1,520
|
|
|
1,385
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,382
|
|
|
$
|
1,515
|
|
|
Six Months Ended
June 30, |
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Supplemental disclosures:
|
|
||||||
Interest paid
|
$
|
320
|
|
|
$
|
185
|
|
Income taxes paid (refunded)
|
(113
|
)
|
|
54
|
|
||
Non-cash activities
|
|
||||||
Loans transferred to held-for-sale from portfolio
|
316
|
|
|
298
|
|
||
Loans transferred to portfolio from held-for-sale
|
34
|
|
|
1
|
|
||
Transfer of loans to OREO
|
10
|
|
|
17
|
|
||
Transfer of securities from held-to-maturity to available-for-sale
|
2,833
|
|
|
—
|
|
||
Transfer of securities from available-for-sale to held-to-maturity
|
2,707
|
|
|
993
|
|
Accounting standards adopted in current period
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2017-09 - Stock Compensation Modification Accounting.
Issued May 2017
|
- Reduces the current diversity in practice and provides explicit guidance pertaining to the provisions of modification accounting.
- Clarifies that an entity should account for effects of modification unless the fair value, vesting conditions and the classification of the modified award are the same as the original awards immediately before the original award is modified.
|
- Huntington adopted the new guidance on January 1, 2018.
- The update did not have a significant impact on Huntington's Unaudited Condensed Consolidated 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.
|
- For cash flow and net investment hedges, the cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness should be recognized in AOCI with a corresponding adjustment to retained earnings.
- Huntington adopted the new guidance on January 1, 2018. Except as mentioned in the paragraph below, the update did not have a significant impact on Huntington's Unaudited Condensed Consolidated Financial Statements.
- Huntington reclassified $2.8 billion securities eligible to be hedged under the last-of-layer method from held-to-maturity to available-for-sale and recognized $26 million of fair value loss (net of tax) within OCI.
|
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 AOCI to retained earnings for stranded tax effects resulting from TCJA.
- 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 December 15, 2018 and interim periods within those fiscal years with earl
y
adoption permitted.
- Huntington early adopted the guidance effective 4Q 2017.
|
Accounting standards yet to be adopted
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2017-04 - Simplifying the Test for Goodwill Impairment.
Issued January 2017
|
- Simplifies the goodwill impairment test by eliminating Step 2 of the goodwill impairment process, which requires an entity to determine the implied fair value of its goodwill by assigning fair value to all its assets and liabilities.
- Entities will instead recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value.
- Entities will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.
|
- Effective for annual and interim goodwill tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted.
- The amendment is not expected to have a significant impact on Huntington's Unaudited Condensed Consolidated Financial Statements.
|
(dollar amounts in millions)
|
June 30, 2018
|
|
December 31, 2017
|
||||
Loans and leases:
|
|
|
|
||||
Commercial and industrial
|
$
|
28,850
|
|
|
$
|
28,107
|
|
Commercial real estate
|
7,201
|
|
|
7,225
|
|
||
Automobile
|
12,390
|
|
|
12,100
|
|
||
Home equity
|
9,907
|
|
|
10,099
|
|
||
Residential mortgage
|
10,006
|
|
|
9,026
|
|
||
RV and marine finance
|
2,846
|
|
|
2,438
|
|
||
Other consumer
|
1,206
|
|
|
1,122
|
|
||
Loans and leases
|
$
|
72,406
|
|
|
$
|
70,117
|
|
Allowance for loan and lease losses
|
(741
|
)
|
|
(691
|
)
|
||
Net loans and leases
|
$
|
71,665
|
|
|
$
|
69,426
|
|
(dollar amounts in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Commercial and industrial
|
$
|
207
|
|
|
$
|
161
|
|
Commercial real estate
|
25
|
|
|
29
|
|
||
Automobile
|
4
|
|
|
6
|
|
||
Home equity
|
68
|
|
|
68
|
|
||
Residential mortgage
|
73
|
|
|
84
|
|
||
RV and marine finance
|
1
|
|
|
1
|
|
||
Other consumer
|
—
|
|
|
—
|
|
||
Total nonaccrual loans
|
$
|
378
|
|
|
$
|
349
|
|
|
June 30, 2018
|
|||||||||||||||||||||||||||||||
|
Past Due (1)
|
|
|
|
Loans Accounted for Under FVO
|
|
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
|
$
|
47
|
|
|
$
|
28
|
|
|
$
|
63
|
|
|
$
|
138
|
|
|
$
|
28,712
|
|
|
$
|
—
|
|
|
$
|
28,850
|
|
|
$
|
9
|
|
(2)
|
Commercial real estate
|
2
|
|
|
12
|
|
|
6
|
|
|
20
|
|
|
7,181
|
|
|
—
|
|
|
7,201
|
|
|
—
|
|
|
||||||||
Automobile
|
71
|
|
|
15
|
|
|
7
|
|
|
93
|
|
|
12,297
|
|
|
—
|
|
|
12,390
|
|
|
6
|
|
|
||||||||
Home equity
|
44
|
|
|
19
|
|
|
59
|
|
|
122
|
|
|
9,783
|
|
|
2
|
|
|
9,907
|
|
|
16
|
|
|
||||||||
Residential mortgage
|
108
|
|
|
40
|
|
|
133
|
|
|
281
|
|
|
9,644
|
|
|
81
|
|
|
10,006
|
|
|
96
|
|
(3)
|
||||||||
RV and marine finance
|
8
|
|
|
2
|
|
|
1
|
|
|
11
|
|
|
2,834
|
|
|
1
|
|
|
2,846
|
|
|
1
|
|
|
||||||||
Other consumer
|
12
|
|
|
6
|
|
|
4
|
|
|
22
|
|
|
1,184
|
|
|
—
|
|
|
1,206
|
|
|
4
|
|
|
||||||||
Total loans and leases
|
$
|
292
|
|
|
$
|
122
|
|
|
$
|
273
|
|
|
$
|
687
|
|
|
$
|
71,635
|
|
|
$
|
84
|
|
|
$
|
72,406
|
|
|
$
|
132
|
|
|
|
December 31, 2017
|
|||||||||||||||||||||||||||||||||||
|
Past Due (1)
|
|
|
|
Purchased
Credit Impaired |
|
Loans Accounted for Under FVO
|
|
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
|
|
(3)
|
|||||||||
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
|
|
|
(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.
|
(3)
|
Amounts include mortgage loans insured by U.S. government agencies.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended June 30, 2018:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
515
|
|
|
$
|
206
|
|
|
$
|
721
|
|
Loan charge-offs
|
|
(12
|
)
|
|
(41
|
)
|
|
(53
|
)
|
|||
Recoveries of loans previously charged-off
|
|
10
|
|
|
15
|
|
|
25
|
|
|||
Provision for loan and lease losses
|
|
18
|
|
|
30
|
|
|
48
|
|
|||
ALLL balance, end of period
|
|
$
|
531
|
|
|
$
|
210
|
|
|
$
|
741
|
|
AULC balance, beginning of period
|
|
$
|
82
|
|
|
$
|
3
|
|
|
$
|
85
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
8
|
|
|
—
|
|
|
8
|
|
|||
AULC balance, end of period
|
|
$
|
90
|
|
|
$
|
3
|
|
|
$
|
93
|
|
ACL balance, end of period
|
|
$
|
621
|
|
|
$
|
213
|
|
|
$
|
834
|
|
Six-month period ended June 30, 2018:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
Loan charge-offs
|
|
(35
|
)
|
|
(91
|
)
|
|
(126
|
)
|
|||
Recoveries of loans previously charged-off
|
|
30
|
|
|
30
|
|
|
60
|
|
|||
Provision for loan and lease losses
|
|
54
|
|
|
62
|
|
|
116
|
|
|||
ALLL balance, end of period
|
|
$
|
531
|
|
|
$
|
210
|
|
|
$
|
741
|
|
AULC balance, beginning of period
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
87
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
6
|
|
|
—
|
|
|
6
|
|
|||
AULC balance, end of period
|
|
$
|
90
|
|
|
$
|
3
|
|
|
$
|
93
|
|
ACL balance, end of period
|
|
$
|
621
|
|
|
$
|
213
|
|
|
$
|
834
|
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended June 30, 2017:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
480
|
|
|
$
|
193
|
|
|
$
|
673
|
|
Loan charge-offs
|
|
(15
|
)
|
|
(42
|
)
|
|
(57
|
)
|
|||
Recoveries of loans previously charged-off
|
|
6
|
|
|
15
|
|
|
21
|
|
|||
Provision for loan and lease losses
|
|
4
|
|
|
27
|
|
|
31
|
|
|||
ALLL balance, end of period
|
|
$
|
475
|
|
|
$
|
193
|
|
|
$
|
668
|
|
AULC balance, beginning of period
|
|
$
|
89
|
|
|
$
|
3
|
|
|
$
|
92
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||
AULC balance, end of period
|
|
$
|
82
|
|
|
$
|
3
|
|
|
$
|
85
|
|
ACL balance, end of period
|
|
$
|
557
|
|
|
$
|
196
|
|
|
$
|
753
|
|
Six-month period ended June 30, 2017:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
Loan charge-offs
|
|
(39
|
)
|
|
(88
|
)
|
|
(127
|
)
|
|||
Recoveries of loans previously charged-off
|
|
24
|
|
|
28
|
|
|
52
|
|
|||
Provision for loan and lease losses
|
|
39
|
|
|
66
|
|
|
105
|
|
|||
ALLL balance, end of period
|
|
$
|
475
|
|
|
$
|
193
|
|
|
$
|
668
|
|
AULC balance, beginning of period
|
|
$
|
87
|
|
|
$
|
11
|
|
|
$
|
98
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
(5
|
)
|
|
(8
|
)
|
|
(13
|
)
|
|||
AULC balance, end of period
|
|
$
|
82
|
|
|
$
|
3
|
|
|
$
|
85
|
|
ACL balance, end of period
|
|
$
|
557
|
|
|
$
|
196
|
|
|
$
|
753
|
|
•
|
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.
|
|
June 30, 2018
|
||||||||||||||||||
(dollar amounts in millions)
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
Commercial
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
26,940
|
|
|
$
|
784
|
|
|
$
|
1,115
|
|
|
$
|
11
|
|
|
$
|
28,850
|
|
Commercial real estate
|
6,895
|
|
|
181
|
|
|
123
|
|
|
2
|
|
|
7,201
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
Consumer
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
$
|
6,338
|
|
|
$
|
4,469
|
|
|
$
|
1,296
|
|
|
$
|
287
|
|
|
$
|
12,390
|
|
Home equity
|
6,219
|
|
|
3,014
|
|
|
601
|
|
|
71
|
|
|
9,905
|
|
|||||
Residential mortgage
|
6,579
|
|
|
2,598
|
|
|
592
|
|
|
156
|
|
|
9,925
|
|
|||||
RV and marine finance
|
1,805
|
|
|
887
|
|
|
96
|
|
|
57
|
|
|
2,845
|
|
|||||
Other consumer
|
452
|
|
|
580
|
|
|
116
|
|
|
58
|
|
|
1,206
|
|
|
December 31, 2017
|
||||||||||||||||||
(dollar amounts in millions)
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
Commercial
|
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)
|
||||||||||||||||||
Consumer
|
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
|
|
(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 June 30, 2018:
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
Attributable to loans individually evaluated for impairment
|
|
$
|
39
|
|
|
$
|
10
|
|
|
$
|
49
|
|
Attributable to loans collectively evaluated for impairment
|
|
492
|
|
|
200
|
|
|
692
|
|
|||
Total ALLL balance
|
|
$
|
531
|
|
|
$
|
210
|
|
|
$
|
741
|
|
Loan and Lease Ending Balances at June 30, 2018: (1)
|
|
|
|
|
|
|
||||||
Portion of loan and lease ending balance:
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
642
|
|
|
$
|
599
|
|
|
$
|
1,241
|
|
Collectively evaluated for impairment
|
|
35,409
|
|
|
35,672
|
|
|
71,081
|
|
|||
Total loans and leases evaluated for impairment
|
|
$
|
36,051
|
|
|
$
|
36,271
|
|
|
$
|
72,322
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL at December 31, 2017:
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
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 balances:
|
|
|
|
|
|
|
||||||
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.
|
|
June 30, 2018
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
276
|
|
|
$
|
305
|
|
|
$
|
—
|
|
|
$
|
259
|
|
|
$
|
6
|
|
|
$
|
268
|
|
|
$
|
10
|
|
Commercial real estate
|
39
|
|
|
58
|
|
|
—
|
|
|
55
|
|
|
2
|
|
|
55
|
|
|
4
|
|
|||||||
Automobile
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
277
|
|
|
311
|
|
|
37
|
|
|
295
|
|
|
3
|
|
|
283
|
|
|
6
|
|
|||||||
Commercial real estate
|
50
|
|
|
56
|
|
|
2
|
|
|
46
|
|
|
—
|
|
|
48
|
|
|
1
|
|
|||||||
Automobile
|
36
|
|
|
40
|
|
|
2
|
|
|
37
|
|
|
1
|
|
|
36
|
|
|
1
|
|
|||||||
Home equity
|
327
|
|
|
372
|
|
|
13
|
|
|
331
|
|
|
4
|
|
|
332
|
|
|
7
|
|
|||||||
Residential mortgage
|
294
|
|
|
327
|
|
|
4
|
|
|
300
|
|
|
3
|
|
|
303
|
|
|
5
|
|
|||||||
RV and marine finance
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||||
Other consumer
|
9
|
|
|
9
|
|
|
3
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial (3)
|
553
|
|
|
616
|
|
|
37
|
|
|
554
|
|
|
9
|
|
|
551
|
|
|
16
|
|
|||||||
Commercial real estate (4)
|
89
|
|
|
114
|
|
|
2
|
|
|
101
|
|
|
2
|
|
|
103
|
|
|
5
|
|
|||||||
Automobile (2)
|
36
|
|
|
40
|
|
|
2
|
|
|
37
|
|
|
1
|
|
|
36
|
|
|
1
|
|
|||||||
Home equity (5)
|
327
|
|
|
372
|
|
|
13
|
|
|
331
|
|
|
4
|
|
|
332
|
|
|
7
|
|
|||||||
Residential mortgage (5)
|
294
|
|
|
327
|
|
|
4
|
|
|
300
|
|
|
3
|
|
|
303
|
|
|
5
|
|
|||||||
RV and marine finance (2)
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||||
Other consumer (2)
|
9
|
|
|
9
|
|
|
3
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
December 31, 2017
|
|
Three Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2017 |
||||||||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
284
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
263
|
|
|
$
|
5
|
|
|
$
|
268
|
|
|
$
|
9
|
|
Commercial real estate
|
56
|
|
|
81
|
|
|
—
|
|
|
82
|
|
|
2
|
|
|
85
|
|
|
4
|
|
|||||||
Automobile
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
257
|
|
|
280
|
|
|
29
|
|
|
258
|
|
|
2
|
|
|
311
|
|
|
4
|
|
|||||||
Commercial real estate
|
51
|
|
|
51
|
|
|
3
|
|
|
39
|
|
|
—
|
|
|
58
|
|
|
1
|
|
|||||||
Automobile
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
1
|
|
|
32
|
|
|
1
|
|
|||||||
Home equity
|
334
|
|
|
385
|
|
|
14
|
|
|
326
|
|
|
4
|
|
|
324
|
|
|
8
|
|
|||||||
Residential mortgage
|
308
|
|
|
338
|
|
|
4
|
|
|
339
|
|
|
3
|
|
|
335
|
|
|
6
|
|
|||||||
RV and marine finance
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||||
Other consumer
|
8
|
|
|
8
|
|
|
2
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial (3)
|
541
|
|
|
591
|
|
|
29
|
|
|
521
|
|
|
7
|
|
|
579
|
|
|
13
|
|
|||||||
Commercial real estate (4)
|
107
|
|
|
132
|
|
|
3
|
|
|
121
|
|
|
2
|
|
|
143
|
|
|
5
|
|
|||||||
Automobile (2)
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
1
|
|
|
32
|
|
|
1
|
|
|||||||
Home equity (5)
|
334
|
|
|
385
|
|
|
14
|
|
|
326
|
|
|
4
|
|
|
324
|
|
|
8
|
|
|||||||
Residential mortgage (5)
|
308
|
|
|
338
|
|
|
4
|
|
|
339
|
|
|
3
|
|
|
335
|
|
|
6
|
|
|||||||
RV and marine finance (2)
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||||
Other consumer (2)
|
8
|
|
|
8
|
|
|
2
|
|
|
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
June 30, 2018
and
December 31, 2017
, C&I loans of
$401 million
and
$382 million
, respectively, were considered impaired due to their status as a TDR.
|
(4)
|
At
June 30, 2018
and
December 31, 2017
, CRE loans of
$79 million
and
$93 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.
|
|
New Troubled Debt Restructurings During The Three-Month Period Ended (1)
|
||||||||||||||||||
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||||||||
(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
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization or maturity date change
|
264
|
|
|
171
|
|
|
(6
|
)
|
|
228
|
|
|
168
|
|
|
(7
|
)
|
||
Other
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
Total Commercial and industrial
|
269
|
|
|
171
|
|
|
(6
|
)
|
|
230
|
|
|
168
|
|
|
(7
|
)
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
36
|
|
|
43
|
|
|
(1
|
)
|
|
19
|
|
|
25
|
|
|
—
|
|
||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total commercial real estate:
|
38
|
|
|
43
|
|
|
(1
|
)
|
|
19
|
|
|
25
|
|
|
—
|
|
||
Automobile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
10
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
382
|
|
|
3
|
|
|
—
|
|
|
334
|
|
|
3
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
221
|
|
|
2
|
|
|
—
|
|
|
198
|
|
|
1
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total Automobile
|
613
|
|
|
5
|
|
|
—
|
|
|
537
|
|
|
4
|
|
|
—
|
|
||
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
113
|
|
|
8
|
|
|
—
|
|
|
135
|
|
|
8
|
|
|
(1
|
)
|
||
Chapter 7 bankruptcy
|
56
|
|
|
2
|
|
|
—
|
|
|
77
|
|
|
3
|
|
|
1
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|
—
|
|
||
Total Home equity
|
169
|
|
|
10
|
|
|
—
|
|
|
233
|
|
|
12
|
|
|
—
|
|
||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
107
|
|
|
12
|
|
|
—
|
|
|
81
|
|
|
8
|
|
|
(1
|
)
|
||
Chapter 7 bankruptcy
|
7
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
2
|
|
|
—
|
|
||
Other
|
1
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
||
Total Residential mortgage
|
119
|
|
|
12
|
|
|
—
|
|
|
111
|
|
|
11
|
|
|
(1
|
)
|
||
RV and marine finance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
14
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
26
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
1
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total RV and marine finance
|
40
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
1
|
|
|
—
|
|
||
Other consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
491
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total Other consumer
|
493
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Total new troubled debt restructurings
|
1,741
|
|
|
245
|
|
|
(7
|
)
|
|
1,178
|
|
|
$
|
221
|
|
|
$
|
(8
|
)
|
(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)
|
Amount represents the financial impact via provision for loan and lease losses as a result of the modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
New Troubled Debt Restructurings During The Six-Month Period Ended (1)
|
||||||||||||||||||
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||||||||
(dollar amounts in millions)
|
Number of
Contracts
|
|
Post-modification
Outstanding
Ending Balance (2)
|
|
Financial effects
of modification (3)
|
|
Number of
Contracts
|
|
Post-modification
Outstanding
Ending Balance (2)
|
|
Financial effects
of modification (3)
|
||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
5
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization or maturity date change
|
502
|
|
|
267
|
|
|
(8
|
)
|
|
464
|
|
|
281
|
|
|
(8
|
)
|
||
Other
|
3
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Total Commercial and industrial
|
510
|
|
|
267
|
|
|
(8
|
)
|
|
470
|
|
|
281
|
|
|
(8
|
)
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
84
|
|
|
74
|
|
|
(1
|
)
|
|
43
|
|
|
56
|
|
|
(1
|
)
|
||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total commercial real estate:
|
86
|
|
|
74
|
|
|
(1
|
)
|
|
43
|
|
|
56
|
|
|
(1
|
)
|
||
Automobile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
26
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
793
|
|
|
7
|
|
|
—
|
|
|
811
|
|
|
7
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
421
|
|
|
4
|
|
|
—
|
|
|
438
|
|
|
4
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total Automobile
|
1,240
|
|
|
11
|
|
|
—
|
|
|
1,268
|
|
|
11
|
|
|
—
|
|
||
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
1
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
1
|
|
|
—
|
|
||
Amortization or maturity date change
|
212
|
|
|
14
|
|
|
(1
|
)
|
|
241
|
|
|
14
|
|
|
(1
|
)
|
||
Chapter 7 bankruptcy
|
105
|
|
|
5
|
|
|
—
|
|
|
164
|
|
|
6
|
|
|
1
|
|
||
Other
|
7
|
|
|
1
|
|
|
—
|
|
|
70
|
|
|
4
|
|
|
—
|
|
||
Total Home equity
|
325
|
|
|
20
|
|
|
(1
|
)
|
|
492
|
|
|
25
|
|
|
—
|
|
||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
4
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
179
|
|
|
20
|
|
|
—
|
|
|
180
|
|
|
19
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
17
|
|
|
1
|
|
|
—
|
|
|
49
|
|
|
5
|
|
|
—
|
|
||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
3
|
|
|
—
|
|
||
Total Residential mortgage
|
202
|
|
|
21
|
|
|
—
|
|
|
252
|
|
|
27
|
|
|
—
|
|
||
RV and marine finance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
17
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
42
|
|
|
1
|
|
|
—
|
|
|
49
|
|
|
1
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total RV and marine finance
|
59
|
|
|
1
|
|
|
—
|
|
|
73
|
|
|
1
|
|
|
—
|
|
||
Other consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate reduction
|
931
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
Amortization or maturity date change
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Chapter 7 bankruptcy
|
2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total Other consumer
|
934
|
|
|
4
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||
Total new troubled debt restructurings
|
3,356
|
|
|
398
|
|
|
(10
|
)
|
|
2,606
|
|
|
$
|
401
|
|
|
$
|
(9
|
)
|
(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)
|
Amount represents the financial impact via provision for loan and lease losses as a result of the modification.
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
U.S. Treasury, Federal agency, and other agency securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
5
|
|
Total U.S. Treasury
|
6
|
|
|
6
|
|
|
5
|
|
|
5
|
|
||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
After 5 years through 10 years
|
44
|
|
|
42
|
|
|
90
|
|
|
89
|
|
||||
After 10 years
|
7,510
|
|
|
7,208
|
|
|
6,570
|
|
|
6,394
|
|
||||
Total Residential CMO
|
7,554
|
|
|
7,250
|
|
|
6,661
|
|
|
6,484
|
|
||||
Residential MBS:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
4
|
|
|
4
|
|
|
6
|
|
|
6
|
|
||||
After 5 years through 10 years
|
31
|
|
|
30
|
|
|
7
|
|
|
8
|
|
||||
After 10 years
|
643
|
|
|
625
|
|
|
1,358
|
|
|
1,353
|
|
||||
Total Residential MBS
|
678
|
|
|
659
|
|
|
1,371
|
|
|
1,367
|
|
||||
Commercial MBS:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
69
|
|
|
66
|
|
|
23
|
|
|
22
|
|
||||
After 5 years through 10 years
|
9
|
|
|
8
|
|
|
151
|
|
|
148
|
|
||||
After 10 years
|
1,737
|
|
|
1,669
|
|
|
2,365
|
|
|
2,317
|
|
||||
Total Commercial MBS
|
1,815
|
|
|
1,743
|
|
|
2,539
|
|
|
2,487
|
|
||||
Other agencies:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
After 1 year through 5 years
|
8
|
|
|
8
|
|
|
9
|
|
|
9
|
|
||||
After 5 years through 10 years
|
179
|
|
|
174
|
|
|
58
|
|
|
59
|
|
||||
Total other agencies
|
188
|
|
|
183
|
|
|
69
|
|
|
70
|
|
||||
Total U.S. Treasury, Federal agency, and other agency securities
|
10,241
|
|
|
9,841
|
|
|
10,645
|
|
|
10,413
|
|
||||
Municipal securities:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
164
|
|
|
164
|
|
|
103
|
|
|
103
|
|
||||
After 1 year through 5 years
|
1,115
|
|
|
1,105
|
|
|
1,140
|
|
|
1,134
|
|
||||
After 5 years through 10 years
|
1,702
|
|
|
1,674
|
|
|
1,709
|
|
|
1,704
|
|
||||
After 10 years
|
845
|
|
|
822
|
|
|
940
|
|
|
937
|
|
||||
Total municipal securities
|
3,826
|
|
|
3,765
|
|
|
3,892
|
|
|
3,878
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
40
|
|
|
39
|
|
|
80
|
|
|
80
|
|
||||
After 5 years through 10 years
|
46
|
|
|
46
|
|
|
53
|
|
|
54
|
|
||||
After 10 years
|
295
|
|
|
288
|
|
|
349
|
|
|
333
|
|
||||
Total asset-backed securities
|
381
|
|
|
373
|
|
|
482
|
|
|
467
|
|
||||
Corporate debt:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
After 1 year through 5 years
|
75
|
|
|
74
|
|
|
73
|
|
|
74
|
|
||||
After 5 years through 10 years
|
11
|
|
|
12
|
|
|
20
|
|
|
21
|
|
||||
After 10 years
|
—
|
|
|
—
|
|
|
13
|
|
|
14
|
|
||||
Total corporate debt
|
87
|
|
|
87
|
|
|
106
|
|
|
109
|
|
||||
Other securities/Sovereign debt:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
After 1 year through 5 years
|
4
|
|
|
4
|
|
|
1
|
|
|
1
|
|
||||
Total other securities/Sovereign debt
|
4
|
|
|
4
|
|
|
2
|
|
|
2
|
|
||||
Total available-for-sale securities
|
$
|
14,539
|
|
|
$
|
14,070
|
|
|
$
|
15,127
|
|
|
$
|
14,869
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
7,554
|
|
|
—
|
|
|
(304
|
)
|
|
7,250
|
|
||||
Residential MBS
|
678
|
|
|
—
|
|
|
(19
|
)
|
|
659
|
|
||||
Commercial MBS
|
1,815
|
|
|
—
|
|
|
(72
|
)
|
|
1,743
|
|
||||
Other agencies
|
188
|
|
|
—
|
|
|
(5
|
)
|
|
183
|
|
||||
Total U.S. Treasury, Federal agency and other agency securities
|
10,241
|
|
|
—
|
|
|
(400
|
)
|
|
9,841
|
|
||||
Municipal securities
|
3,826
|
|
|
12
|
|
|
(73
|
)
|
|
3,765
|
|
||||
Asset-backed securities
|
381
|
|
|
—
|
|
|
(8
|
)
|
|
373
|
|
||||
Corporate debt
|
87
|
|
|
1
|
|
|
(1
|
)
|
|
87
|
|
||||
Other securities/Sovereign debt
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total available-for-sale securities
|
$
|
14,539
|
|
|
$
|
13
|
|
|
$
|
(482
|
)
|
|
$
|
14,070
|
|
|
|
|
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/Sovereign debt
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Total available-for-sale securities
|
$
|
15,127
|
|
|
$
|
28
|
|
|
$
|
(286
|
)
|
|
$
|
14,869
|
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Gross Unrealized
Losses
|
|
Fair Value
|
|
Gross Unrealized
Losses
|
|
Fair Value
|
|
Gross Unrealized
Losses
|
||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
3,217
|
|
|
$
|
(86
|
)
|
|
$
|
3,988
|
|
|
$
|
(218
|
)
|
|
$
|
7,205
|
|
|
$
|
(304
|
)
|
Residential MBS
|
638
|
|
|
(19
|
)
|
|
12
|
|
|
—
|
|
|
650
|
|
|
(19
|
)
|
||||||
Commercial MBS
|
285
|
|
|
(9
|
)
|
|
1,458
|
|
|
(63
|
)
|
|
1,743
|
|
|
(72
|
)
|
||||||
Other agencies
|
88
|
|
|
(2
|
)
|
|
85
|
|
|
(3
|
)
|
|
173
|
|
|
(5
|
)
|
||||||
Total Federal Agency and other agency securities
|
4,228
|
|
|
(116
|
)
|
|
5,543
|
|
|
(284
|
)
|
|
9,771
|
|
|
(400
|
)
|
||||||
Municipal securities
|
2,306
|
|
|
(49
|
)
|
|
723
|
|
|
(24
|
)
|
|
3,029
|
|
|
(73
|
)
|
||||||
Asset-backed securities
|
210
|
|
|
(4
|
)
|
|
102
|
|
|
(4
|
)
|
|
312
|
|
|
(8
|
)
|
||||||
Corporate debt
|
61
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
61
|
|
|
(1
|
)
|
||||||
Other securities/Sovereign debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
6,805
|
|
|
$
|
(170
|
)
|
|
$
|
6,368
|
|
|
$
|
(312
|
)
|
|
$
|
13,173
|
|
|
$
|
(482
|
)
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Gross Unrealized
Losses
|
|
Fair Value
|
|
Gross Unrealized
Losses
|
|
Fair Value
|
|
Gross 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
|
)
|
||||||
Total temporarily impaired securities
|
$
|
5,545
|
|
|
$
|
(61
|
)
|
|
$
|
6,728
|
|
|
$
|
(225
|
)
|
|
$
|
12,273
|
|
|
$
|
(286
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gross gains on sales of securities
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
5
|
|
Gross (losses) on sales of securities
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
|
(1
|
)
|
||||
Net gain on sales of securities
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
OTTI recognized in earnings
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Net securities gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO:
|
|
|
|
|
|
|
|
||||||||
After 5 years through 10 years
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
||||
After 10 years
|
2,262
|
|
|
2,185
|
|
|
3,714
|
|
|
3,657
|
|
||||
Total Residential CMO
|
2,299
|
|
|
2,222
|
|
|
3,714
|
|
|
3,657
|
|
||||
Residential MBS:
|
|
|
|
|
|
|
|
||||||||
After 5 years through 10 years
|
—
|
|
|
—
|
|
|
28
|
|
|
28
|
|
||||
After 10 years
|
1,677
|
|
|
1,623
|
|
|
1,021
|
|
|
1,016
|
|
||||
Total Residential MBS
|
1,677
|
|
|
1,623
|
|
|
1,049
|
|
|
1,044
|
|
||||
Commercial MBS:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
38
|
|
|
37
|
|
||||
After 5 years through 10 years
|
130
|
|
|
127
|
|
|
1
|
|
|
1
|
|
||||
After 10 years
|
4,196
|
|
|
4,047
|
|
|
3,752
|
|
|
3,698
|
|
||||
Total Commercial MBS
|
4,326
|
|
|
4,174
|
|
|
3,791
|
|
|
3,736
|
|
||||
Other agencies:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
13
|
|
|
13
|
|
|
7
|
|
|
8
|
|
||||
After 5 years through 10 years
|
211
|
|
|
206
|
|
|
362
|
|
|
360
|
|
||||
After 10 years
|
151
|
|
|
148
|
|
|
163
|
|
|
161
|
|
||||
Total other agencies
|
375
|
|
|
367
|
|
|
532
|
|
|
529
|
|
||||
Total Federal agencies and other agencies
|
8,677
|
|
|
8,386
|
|
|
9,086
|
|
|
8,966
|
|
||||
Municipal securities:
|
|
|
|
|
|
|
|
||||||||
After 10 years
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
||||
Total municipal securities
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
||||
Total held-to-maturity securities
|
$
|
8,682
|
|
|
$
|
8,391
|
|
|
$
|
9,091
|
|
|
$
|
8,971
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
2,299
|
|
|
$
|
—
|
|
|
$
|
(77
|
)
|
|
$
|
2,222
|
|
Residential MBS
|
1,677
|
|
|
—
|
|
|
(54
|
)
|
|
1,623
|
|
||||
Commercial MBS
|
4,326
|
|
|
—
|
|
|
(152
|
)
|
|
4,174
|
|
||||
Other agencies
|
375
|
|
|
—
|
|
|
(8
|
)
|
|
367
|
|
||||
Total Federal agencies and other agencies
|
8,677
|
|
|
—
|
|
|
(291
|
)
|
|
8,386
|
|
||||
Municipal securities
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Total held-to-maturity securities
|
$
|
8,682
|
|
|
$
|
—
|
|
|
$
|
(291
|
)
|
|
$
|
8,391
|
|
|
|
|
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
|
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
958
|
|
|
$
|
(29
|
)
|
|
$
|
1,264
|
|
|
$
|
(48
|
)
|
|
$
|
2,222
|
|
|
$
|
(77
|
)
|
Residential MBS
|
1,552
|
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
1,552
|
|
|
(54
|
)
|
||||||
Commercial MBS
|
3,458
|
|
|
(134
|
)
|
|
716
|
|
|
(18
|
)
|
|
4,174
|
|
|
(152
|
)
|
||||||
Other agencies
|
281
|
|
|
(6
|
)
|
|
64
|
|
|
(2
|
)
|
|
345
|
|
|
(8
|
)
|
||||||
Total Federal agencies and other agencies
|
6,249
|
|
|
(223
|
)
|
|
2,044
|
|
|
(68
|
)
|
|
8,293
|
|
|
(291
|
)
|
||||||
Municipal securities
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
6,249
|
|
|
$
|
(223
|
)
|
|
$
|
2,049
|
|
|
$
|
(68
|
)
|
|
$
|
8,298
|
|
|
$
|
(291
|
)
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross 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
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Other securities, at cost
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank stock
|
282
|
|
|
282
|
|
|
287
|
|
|
287
|
|
||||
Federal Reserve Bank stock
|
294
|
|
|
294
|
|
|
294
|
|
|
294
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
19
|
|
|
19
|
|
|
18
|
|
|
18
|
|
||||
Marketable equity securities
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
||||
Total other securities
|
$
|
596
|
|
|
$
|
597
|
|
|
$
|
600
|
|
|
$
|
600
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Residential mortgage loans sold with servicing retained
|
$
|
897
|
|
|
$
|
798
|
|
|
$
|
1,740
|
|
|
$
|
1,646
|
|
Pretax gains resulting from above loan sales (1)
|
19
|
|
|
17
|
|
|
40
|
|
|
39
|
|
(1)
|
Recorded in mortgage banking income.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Carrying value, beginning of period
|
$
|
200
|
|
|
$
|
178
|
|
|
$
|
191
|
|
|
$
|
172
|
|
New servicing assets created
|
11
|
|
|
8
|
|
|
20
|
|
|
18
|
|
||||
Impairment recovery (charge)
|
—
|
|
|
(3
|
)
|
|
7
|
|
|
(1
|
)
|
||||
Amortization
|
(7
|
)
|
|
(7
|
)
|
|
(14
|
)
|
|
(13
|
)
|
||||
Carrying value, end of period
|
$
|
204
|
|
|
$
|
176
|
|
|
$
|
204
|
|
|
$
|
176
|
|
Fair value, end of period
|
$
|
212
|
|
|
$
|
177
|
|
|
$
|
212
|
|
|
$
|
177
|
|
Weighted-average life (years)
|
7.0
|
|
|
7.1
|
|
|
7.0
|
|
|
7.1
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
|
|
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)
|
8.50
|
%
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
|
8.30
|
%
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
Spread over forward interest rate swap rates
|
952
|
bps
|
|
(8
|
)
|
|
(15
|
)
|
|
1,049
|
bps
|
|
(7
|
)
|
|
(13
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Carrying value, beginning of period
|
$
|
6
|
|
|
$
|
15
|
|
|
$
|
8
|
|
|
$
|
18
|
|
Amortization
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(6
|
)
|
||||
Carrying value, end of period
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
12
|
|
Fair value, end of period
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
12
|
|
Weighted-average contractual life (years)
|
3.2
|
|
|
3.8
|
|
|
3.2
|
|
|
3.8
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
SBA loans sold with servicing retained
|
$
|
97
|
|
|
$
|
88
|
|
|
$
|
161
|
|
|
$
|
165
|
|
Pretax gains resulting from above loan sales (1)
|
10
|
|
|
7
|
|
|
17
|
|
|
13
|
|
(1)
|
Recorded in gain on sale of loans.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Carrying value, beginning of period
|
$
|
28
|
|
|
$
|
21
|
|
|
$
|
27
|
|
|
$
|
21
|
|
New servicing assets created
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
||||
Amortization
|
(3
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(4
|
)
|
||||
Carrying value, end of period
|
$
|
28
|
|
|
$
|
23
|
|
|
$
|
28
|
|
|
$
|
23
|
|
Fair value, end of period
|
$
|
33
|
|
|
$
|
27
|
|
|
$
|
33
|
|
|
$
|
27
|
|
Weighted-average life (years)
|
3.4
|
|
|
3.3
|
|
|
3.4
|
|
|
3.3
|
|
|
Three Months Ended
June 30, 2018 |
||||||||||
|
|
|
Tax (Expense)
|
|
|
||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
(71
|
)
|
|
15
|
|
|
(56
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
3
|
|
|
—
|
|
|
3
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(68
|
)
|
|
15
|
|
|
(53
|
)
|
|||
Net change in pension and other post-retirement obligations
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
(67
|
)
|
|
$
|
15
|
|
|
$
|
(52
|
)
|
|
Three Months Ended
June 30, 2017 |
||||||||||
|
Tax (Expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
53
|
|
|
(19
|
)
|
|
34
|
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
4
|
|
|
(1
|
)
|
|
3
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
59
|
|
|
(21
|
)
|
|
38
|
|
|||
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
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
62
|
|
|
$
|
(22
|
)
|
|
$
|
40
|
|
|
Six Months Ended
June 30, 2018 |
||||||||||
|
|
|
Tax (expense)
|
|
|
||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
(277
|
)
|
|
59
|
|
|
(218
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
18
|
|
|
(3
|
)
|
|
15
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(259
|
)
|
|
56
|
|
|
(203
|
)
|
|||
Net change in pension and other post-retirement obligations
|
2
|
|
|
—
|
|
|
2
|
|
|||
Total other comprehensive income (loss)
|
$
|
(257
|
)
|
|
$
|
56
|
|
|
$
|
(201
|
)
|
|
Six Months Ended
June 30, 2017 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
62
|
|
|
(22
|
)
|
|
40
|
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
10
|
|
|
(3
|
)
|
|
7
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
75
|
|
|
(26
|
)
|
|
49
|
|
|||
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
|
—
|
|
|
—
|
|
|
—
|
|
|||
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
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net change in pension and other post-retirement obligations
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
78
|
|
|
$
|
(27
|
)
|
|
$
|
51
|
|
(dollar amounts in millions)
|
Unrealized gains
and (losses) on
debt securities
(1)
|
|
Unrealized
gains and
(losses) on
cash flow
hedging
derivatives
|
|
Unrealized gains
(losses) for
pension and
other post-
retirement
obligations
|
|
Total
|
||||||||
December 31, 2016
|
$
|
(193
|
)
|
|
$
|
(3
|
)
|
|
$
|
(205
|
)
|
|
$
|
(401
|
)
|
Other comprehensive income before reclassifications
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
7
|
|
|
1
|
|
|
1
|
|
|
9
|
|
||||
Period change
|
49
|
|
|
1
|
|
|
1
|
|
|
51
|
|
||||
June 30, 2017
|
$
|
(144
|
)
|
|
$
|
(2
|
)
|
|
$
|
(204
|
)
|
|
$
|
(350
|
)
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
$
|
(278
|
)
|
|
$
|
—
|
|
|
$
|
(250
|
)
|
|
$
|
(528
|
)
|
Cumulative-effect adjustments (ASU 2016-01)
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income before reclassifications
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
(218
|
)
|
||||
Amounts reclassified from accumulated OCI to earnings
|
15
|
|
|
—
|
|
|
2
|
|
|
17
|
|
||||
Period change
|
(203
|
)
|
|
—
|
|
|
2
|
|
|
(201
|
)
|
||||
June 30, 2018
|
$
|
(482
|
)
|
|
$
|
—
|
|
|
$
|
(248
|
)
|
|
$
|
(730
|
)
|
(1)
|
AOCI amounts at
June 30, 2018
,
December 31, 2017
and
June 30, 2017
include
$144 million
,
$95 million
and
$98 million
, respectively, of net unrealized gains on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized gains 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
|
||||||
|
Three Months Ended
|
|
|
||||||
(dollar amounts in millions)
|
June 30, 2018
|
|
June 30, 2017
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
Interest income - held-to-maturity securities - taxable
|
Realized gain (loss) on sale of securities
|
—
|
|
|
2
|
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
OTTI recorded
|
—
|
|
|
(4
|
)
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
Total before tax
|
(3
|
)
|
|
(4
|
)
|
|
|
||
Tax (expense) benefit
|
—
|
|
|
1
|
|
|
|
||
Net of tax
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|
|
|||||||
Actuarial gains (losses)
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
Noninterest income / expense (1)
|
Net periodic benefit costs
|
—
|
|
|
1
|
|
|
Noninterest income / expense (1)
|
||
Total before tax
|
(1
|
)
|
|
(1
|
)
|
|
|
||
Tax (expense) benefit
|
—
|
|
|
—
|
|
|
|
||
Net of tax
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
||||
|
Reclassifications out of accumulated OCI
|
||||||||
Accumulated OCI components
|
Amounts reclassified from accumulated OCI
|
|
Location of net gain (loss) reclassified from accumulated OCI into earnings
|
||||||
|
Six Months Ended
|
|
|
||||||
(dollar amounts in millions)
|
June 30, 2018
|
|
June 30, 2017
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(6
|
)
|
|
$
|
(6
|
)
|
|
Interest income - held-to-maturity securities - taxable
|
Realized gain (loss) on sale of securities
|
(12
|
)
|
|
—
|
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
OTTI recorded
|
—
|
|
|
(4
|
)
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
|
(18
|
)
|
|
(10
|
)
|
|
Total before tax
|
||
|
3
|
|
|
3
|
|
|
Tax (expense) benefit
|
||
|
$
|
(15
|
)
|
|
$
|
(7
|
)
|
|
Net of tax
|
Gains (losses) on cash flow hedging relationships:
|
|
|
|
|
|
||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Interest income - loans and leases
|
Interest rate contracts
|
—
|
|
|
—
|
|
|
Noninterest income - other income
|
||
|
—
|
|
|
(1
|
)
|
|
Total before tax
|
||
|
—
|
|
|
—
|
|
|
Tax (expense) benefit
|
||
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Amortization of defined benefit pension and post-retirement items:
|
|
|
|
|
|
||||
Actuarial gains (losses)
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
Noninterest income / expense (1)
|
Net periodic benefit costs
|
1
|
|
|
1
|
|
|
Noninterest income / expense (1)
|
||
|
(2
|
)
|
|
(2
|
)
|
|
Total before tax
|
||
|
—
|
|
|
1
|
|
|
Tax (expense) benefit
|
||
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
Net of tax
|
(1)
|
The activity for 2018 and 2017 is recorded in Noninterest Income - other noninterest income and Noninterest Expense - personnel costs on the Condensed Consolidated Statements of Income, respectively.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
355
|
|
|
$
|
272
|
|
|
$
|
681
|
|
|
$
|
480
|
|
Preferred stock dividends
|
(21
|
)
|
|
(19
|
)
|
|
(33
|
)
|
|
(38
|
)
|
||||
Net income available to common shareholders
|
$
|
334
|
|
|
$
|
253
|
|
|
$
|
648
|
|
|
$
|
442
|
|
Average common shares issued and outstanding (000)
|
1,103,337
|
|
|
1,088,934
|
|
|
1,093,587
|
|
|
1,087,654
|
|
||||
Basic earnings per common share
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.59
|
|
|
$
|
0.41
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income available to common shareholders
|
$
|
334
|
|
|
$
|
253
|
|
|
$
|
648
|
|
|
$
|
442
|
|
Effect of assumed preferred stock conversion
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income applicable to diluted earnings per share
|
$
|
334
|
|
|
$
|
253
|
|
|
$
|
648
|
|
|
$
|
442
|
|
Average common shares issued and outstanding (000)
|
1,103,337
|
|
|
1,088,934
|
|
|
1,093,587
|
|
|
1,087,654
|
|
||||
Dilutive potential common shares:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock units and awards
|
15,803
|
|
|
16,329
|
|
|
17,830
|
|
|
17,734
|
|
||||
Shares held in deferred compensation plans
|
3,472
|
|
|
3,108
|
|
|
3,350
|
|
|
3,030
|
|
||||
Dilutive impact of Preferred Stock
|
—
|
|
|
—
|
|
|
8,879
|
|
|
—
|
|
||||
Other
|
—
|
|
|
156
|
|
|
—
|
|
|
154
|
|
||||
Dilutive potential common shares
|
19,275
|
|
|
19,593
|
|
|
30,059
|
|
|
20,918
|
|
||||
Total diluted average common shares issued and outstanding (000)
|
1,122,612
|
|
|
1,108,527
|
|
|
1,123,646
|
|
|
1,108,572
|
|
||||
Diluted earnings per common share
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.58
|
|
|
$
|
0.40
|
|
(dollar amounts in millions)
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||
Noninterest income
|
|
|
|
||||
Noninterest income from contracts with customers
|
$
|
217
|
|
|
$
|
431
|
|
Noninterest income within the scope of other GAAP topics
|
119
|
|
|
219
|
|
||
Total noninterest income
|
$
|
336
|
|
|
$
|
650
|
|
•
|
Service charges on deposit accounts
include fees and other charges Huntington receives to provide various services, including but not limited to, maintaining an account with a customer, providing overdraft services, wire transfer, transferring funds, and accepting and executing stop-payment orders. The consideration includes both fixed (e.g., account maintenance fee) and transaction fees (e.g., wire-transfer fee). The fixed fee is recognized over a period of time while the transaction fee is recognized when a specific service (e.g., execution of wire-transfer) is rendered to the customer. Huntington may, from time to time, waive certain fees (e.g., NSF fee) for customers but generally does not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer.
|
•
|
Cards and payment processing income
includes interchange fees earned on debit cards and credit cards. All other fees (e.g. annual fees), and interest income are recognized in accordance with ASC 310. Huntington recognizes interchange fees for services performed related to authorization and settlement of a cardholder’s transaction with a merchant. Revenue is recognized when a cardholder’s transaction is approved and settled. The revenue may be constrained due to inherent uncertainty related to cardholder’s right to return goods and services but the uncertainty is resolved within a short period of time (generally within 30 days) and the amount of returns was not material for the reporting period ended
June 30, 2018
. Revenue is not adjusted for such variability, rather returns reduce the amount of interchange revenue in the period the return is made by the customer.
|
•
|
Trust and investment management services
includes fee income generated from personal, corporate and institutional customers. Huntington also provides investment management services, cash management services and tax reporting to customers. Services are rendered over a period of time, over which revenue is recognized. Huntington may also recognize revenue from referring a customer to outside third-parties including mutual fund companies that pay distribution (12b-1) fees and other expenses. 12b-1 fees are received upon initially placing account holder’s funds with a mutual fund company as well as in the future periods as long as the account holder (i.e., the fund investor), remains invested in the fund. The transaction price includes variable consideration which is considered constrained as it is not probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur. Accordingly, those fees are recognized as revenue when the uncertainty associated with the variable consideration is subsequently resolved, that is, initial fees are recognized in the initial period while the future fees are recognized in future periods.
|
•
|
Insurance income
includes agency commissions that are recognized when Huntington sells insurance policies to customers. Huntington is also entitled to renewal commissions and, in some cases, profit sharing which are recognized in subsequent periods. The initial commission is recognized when the insurance policy is sold to a customer. Renewal commission is variable consideration and is recognized in subsequent periods when the uncertainty around variable consideration is subsequently resolved (i.e., when customer renews the policy). Profit sharing is also a variable consideration that is not recognized until the variability surrounding realization of revenue is resolved (i.e., Huntington have reached a minimum volume of sales). Another source of variability is the ability of the policy holder to cancel the policy anytime and in such cases, Huntington may be required, under the terms of the contract, to return part of the commission received. The variability related to cancellation of the policy is not deemed significant and thus, does not impact the amount of revenue recognized. In the event the policyholder chooses to cancel the policy at any time, the revenue for amounts which qualify for claw-back are reversed in the period the cancellation occurs.
|
•
|
Other noninterest income
includes a variety of other revenue streams including capital markets revenue, consumer fees and marketing allowance revenue. Revenue is recognized when, or as, a performance obligation is satisfied. Inherent variability in the transaction price is not recognized until the uncertainty affecting the variability is resolved.
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts
|
$
|
72
|
|
|
$
|
16
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
91
|
|
Cards and payment processing income
|
49
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
||||||
Trust and investment management services
|
5
|
|
|
2
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
42
|
|
||||||
Insurance income
|
10
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
21
|
|
||||||
Other income
|
10
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Net revenue from contracts with customers
|
$
|
146
|
|
|
$
|
23
|
|
|
$
|
2
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
217
|
|
Noninterest income within the scope of other GAAP topics
|
41
|
|
|
57
|
|
|
—
|
|
|
2
|
|
|
19
|
|
|
119
|
|
||||||
Total noninterest income
|
$
|
187
|
|
|
$
|
80
|
|
|
$
|
2
|
|
|
$
|
48
|
|
|
$
|
19
|
|
|
$
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts
|
$
|
140
|
|
|
$
|
32
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
177
|
|
Cards and payment processing income
|
96
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
||||||
Trust and investment management services
|
12
|
|
|
2
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
86
|
|
||||||
Insurance income
|
18
|
|
|
2
|
|
|
—
|
|
|
21
|
|
|
1
|
|
|
42
|
|
||||||
Other Income
|
20
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
25
|
|
||||||
Net revenue from contracts with customers
|
$
|
286
|
|
|
$
|
42
|
|
|
$
|
4
|
|
|
$
|
97
|
|
|
$
|
2
|
|
|
$
|
431
|
|
Noninterest income within the scope of other GAAP topics
|
75
|
|
|
107
|
|
|
2
|
|
|
1
|
|
|
34
|
|
|
219
|
|
||||||
Total noninterest income
|
$
|
361
|
|
|
$
|
149
|
|
|
$
|
6
|
|
|
$
|
98
|
|
|
$
|
36
|
|
|
$
|
650
|
|
|
Pension Benefits (1)
|
|
Post-Retirement Benefits (1)
|
||||||||||||
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(12
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Amortization of loss
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
Net periodic (benefit) cost
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Pension Benefits (1)
|
|
Post-Retirement Benefits (1)
|
||||||||||||
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
14
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(24
|
)
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Amortization of (gain) loss
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
4
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Net periodic (benefit) cost
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
(1)
|
The Pension and post-retirement (benefits) costs for 2018 and 2017 are recorded in Other noninterest income and Noninterest expense - personnel costs, respectively on the Condensed Consolidated Statements of Income.
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
June 30, 2018
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Other securities
|
78
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|||||
|
78
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Residential CMOs
|
—
|
|
|
7,250
|
|
|
—
|
|
|
—
|
|
|
7,250
|
|
|||||
Residential MBS
|
—
|
|
|
659
|
|
|
—
|
|
|
—
|
|
|
659
|
|
|||||
Commercial MBS
|
—
|
|
|
1,743
|
|
|
—
|
|
|
—
|
|
|
1,743
|
|
|||||
Other agencies
|
—
|
|
|
183
|
|
|
—
|
|
|
—
|
|
|
183
|
|
|||||
Municipal securities
|
—
|
|
|
587
|
|
|
3,178
|
|
|
—
|
|
|
3,765
|
|
|||||
Asset-backed securities
|
—
|
|
|
373
|
|
|
—
|
|
|
—
|
|
|
373
|
|
|||||
Corporate debt
|
—
|
|
|
87
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|||||
Other securities/sovereign debt
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
6
|
|
|
10,886
|
|
|
3,178
|
|
|
—
|
|
|
14,070
|
|
|||||
Other securities
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Loans held for sale
|
—
|
|
|
643
|
|
|
—
|
|
|
—
|
|
|
643
|
|
|||||
Loans held for investment
|
—
|
|
|
50
|
|
|
34
|
|
|
—
|
|
|
84
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Derivative assets
|
—
|
|
|
446
|
|
|
8
|
|
|
(275
|
)
|
|
179
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
399
|
|
|
7
|
|
|
(204
|
)
|
|
202
|
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
December 31, 2017
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other securities
|
$
|
83
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
83
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|||||
Available-for-sale 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/sovereign debt
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
|
5
|
|
|
11,673
|
|
|
3,191
|
|
|
—
|
|
|
14,869
|
|
|||||
Other securities
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
Loans held for sale
|
—
|
|
|
413
|
|
|
—
|
|
|
—
|
|
|
413
|
|
|||||
Loans held for investment
|
—
|
|
|
55
|
|
|
38
|
|
|
—
|
|
|
93
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Derivative assets
|
—
|
|
|
316
|
|
|
6
|
|
|
(190
|
)
|
|
132
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
326
|
|
|
5
|
|
|
(245
|
)
|
|
86
|
|
(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
Three Months Ended June 30, 2018 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Loans held for investment
|
||||||||
Opening balance
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
3,230
|
|
|
$
|
37
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Transfers out of Level 3 (1)
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
(1
|
)
|
|
10
|
|
|
(1
|
)
|
|
—
|
|
||||
Included in OCI
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
||||
Purchases/originations
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
||||
Closing balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,178
|
|
|
$
|
34
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Three Months Ended June 30, 2017 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
13
|
|
|
$
|
3
|
|
|
$
|
2,868
|
|
|
$
|
59
|
|
|
$
|
44
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers out of Level 3 (1)
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
(3
|
)
|
|
2
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
12
|
|
|
6
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
115
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
13
|
|
|
$
|
3
|
|
|
$
|
2,872
|
|
|
$
|
43
|
|
|
$
|
44
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
12
|
|
|
$
|
6
|
|
|
$
|
—
|
|
(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
Six Months Ended June 30, 2018 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
3,167
|
|
|
$
|
24
|
|
|
$
|
38
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers out of Level 3 (1)
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
—
|
|
|
16
|
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
11
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
279
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(229
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,178
|
|
|
$
|
—
|
|
|
$
|
34
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Six Months Ended June 30, 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)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(1
|
)
|
|
8
|
|
|
(3
|
)
|
|
(3
|
)
|
|
1
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
33
|
|
|
9
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(204
|
)
|
|
(1
|
)
|
|
—
|
|
|||||
Closing balance
|
$
|
13
|
|
|
$
|
3
|
|
|
$
|
2,872
|
|
|
$
|
43
|
|
|
$
|
44
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
8
|
|
|
$
|
33
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(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
Three Months Ended June 30, 2018 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Loans held for investment
|
||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
||||||||
Mortgage banking income
|
$
|
(1
|
)
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other expense
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Total
|
$
|
(1
|
)
|
|
$
|
10
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Three Months Ended June 30, 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
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
2
|
|
|
Level 3 Fair Value Measurements
Six Months Ended June 30, 2018 |
||||||||||||||||||
|
|
|
|
|
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
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||
Other expense
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements
Six Months Ended June 30, 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
|
$
|
(1
|
)
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total
|
$
|
(1
|
)
|
|
$
|
8
|
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
Assets
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
||||||||||||
Loans held for sale
|
$
|
643
|
|
|
$
|
625
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans held for investment
|
84
|
|
|
93
|
|
|
(9
|
)
|
|
7
|
|
|
8
|
|
|
(1
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
Assets
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
||||||||||||
Loans held for sale
|
$
|
413
|
|
|
$
|
400
|
|
|
$
|
13
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Loans held for investment
|
93
|
|
|
102
|
|
|
(9
|
)
|
|
10
|
|
|
11
|
|
|
(1
|
)
|
|
Net gains (losses) from fair value changes
|
|
Net gains (losses) from fair value changes
|
||||||||||||
(dollar amounts in millions)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Assets
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Loans held for sale
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
14
|
|
Loans held for investment
|
—
|
|
|
2
|
|
|
—
|
|
|
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) Six Months Ended June 30, 2018 |
|||||
Impaired loans
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
Other real estate owned
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
(1
|
)
|
|
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017
|
||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Input
|
|
Range (Weighted Average)
|
||
Measured at fair value on a recurring basis:
|
|||||||||
MSRs
|
$
|
11
|
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
8% - 33% (12%)
|
|
|
|
|
|
Spread over forward interest rate
swap rates |
|
8% - 10% (8%)
|
||
Derivative assets
|
6
|
|
|
Consensus Pricing
|
|
Net market price
|
|
-5% - 20% (2%)
|
|
|
|
|
|
|
Estimated Pull through %
|
|
3% - 100% (75%)
|
||
Derivative liabilities
|
5
|
|
|
Discounted cash flow
|
|
Estimated conversion factor
|
|
165%
|
|
|
|
|
|
|
Estimated growth rate of Visa Class A shares
|
|
7%
|
||
|
|
|
|
|
Discount rate
|
|
3%
|
||
|
|
|
|
|
Timing of the resolution of the litigation
|
|
12/31/2017 - 06/30/2020
|
||
Municipal securities
|
3,167
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
0% - 10% (4%)
|
|
|
|
|
|
|
Cumulative default
|
|
0% - 64% (3%)
|
||
|
|
|
|
|
Loss given default
|
|
5% - 90% (24%)
|
||
Asset-backed securities
|
24
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
7% - 7% (7%)
|
|
|
|
|
|
|
Cumulative prepayment rate
|
|
0% - 72% (7%)
|
||
|
|
|
|
|
Cumulative default
|
|
3% - 53% (7%)
|
||
|
|
|
|
|
Loss given default
|
|
90% - 100% (98%)
|
||
|
|
|
|
|
Cure given deferral
|
|
50% - 50% (50%)
|
||
Loans held for investment
|
38
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
7% - 18% (8%)
|
|
|
|
|
|
|
Constant prepayment rate
|
|
2% - 22% (9%)
|
||
Measured at fair value on a nonrecurring basis:
|
|||||||||
MSRs
|
190
|
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
6% - 21% (8%)
|
|
|
|
|
|
|
Spread over forward interest rate
swap rates |
|
2% - 20% (10%)
|
||
Impaired loans
|
36
|
|
|
Appraisal value
|
|
NA
|
|
NA
|
|
Other real estate owned
|
33
|
|
|
Appraisal value
|
|
NA
|
|
NA
|
|
June 30, 2018
|
|||||||||||||
(dollar amounts in millions)
|
Amortized Cost
|
|
Lower of Cost or Market
|
|
Fair Value or
Fair Value Option
|
|
Total Carrying Amount
|
|
Estimated Fair Value
|
|||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|||||
Cash and short-term assets
|
1,423
|
|
|
—
|
|
|
—
|
|
|
1,423
|
|
|
1,423
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
85
|
|
|
85
|
|
|
85
|
|
Available-for-sale securities
|
—
|
|
|
—
|
|
|
14,070
|
|
|
14,070
|
|
|
14,070
|
|
Held-to-maturity securities
|
8,682
|
|
|
—
|
|
|
—
|
|
|
8,682
|
|
|
8,391
|
|
Other securities
|
576
|
|
|
—
|
|
|
21
|
|
|
597
|
|
|
597
|
|
Loans held for sale
|
—
|
|
|
66
|
|
|
643
|
|
|
709
|
|
|
713
|
|
Net loans and direct financing leases (1)
|
71,581
|
|
|
—
|
|
|
84
|
|
|
71,665
|
|
|
70,996
|
|
Derivatives
|
—
|
|
|
—
|
|
|
179
|
|
|
179
|
|
|
179
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
79,587
|
|
|
—
|
|
|
—
|
|
|
79,587
|
|
|
79,534
|
|
Short-term borrowings
|
2,442
|
|
|
—
|
|
|
—
|
|
|
2,442
|
|
|
2,442
|
|
Long-term debt
|
9,726
|
|
|
—
|
|
|
—
|
|
|
9,726
|
|
|
9,889
|
|
Derivatives
|
—
|
|
|
—
|
|
|
202
|
|
|
202
|
|
|
202
|
|
(1)
|
Includes collateral-dependent loans measured for impairment.
|
|
December 31, 2017
|
|||||||||||||||
(dollar amounts in millions)
|
Amortized Cost
|
|
Lower of Cost or Market
|
|
Fair Value or
Fair Value Option
|
|
Total Carrying Amount
|
|
Estimated Fair Value
|
|||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and short-term assets
|
1,567
|
|
|
—
|
|
|
—
|
|
|
$
|
1,567
|
|
|
$
|
1,567
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
86
|
|
|
86
|
|
|
86
|
|
||
Available-for-sale securities
|
—
|
|
|
—
|
|
|
14,869
|
|
|
14,869
|
|
|
14,869
|
|
||
Held-to-maturity securities
|
9,091
|
|
|
—
|
|
|
—
|
|
|
9,091
|
|
|
8,971
|
|
||
Other securities
|
581
|
|
|
—
|
|
|
19
|
|
|
600
|
|
|
600
|
|
||
Loans held for sale
|
—
|
|
|
75
|
|
|
413
|
|
|
488
|
|
|
491
|
|
||
Net loans and direct financing leases (1)
|
69,333
|
|
|
—
|
|
|
93
|
|
|
69,426
|
|
|
69,146
|
|
||
Derivatives
|
—
|
|
|
—
|
|
|
132
|
|
|
132
|
|
|
132
|
|
||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits
|
77,041
|
|
|
—
|
|
|
—
|
|
|
77,041
|
|
|
77,010
|
|
||
Short-term borrowings
|
5,056
|
|
|
—
|
|
|
—
|
|
|
5,056
|
|
|
5,056
|
|
||
Long-term debt
|
9,206
|
|
|
—
|
|
|
—
|
|
|
9,206
|
|
|
9,402
|
|
||
Derivatives
|
—
|
|
|
—
|
|
|
86
|
|
|
86
|
|
|
86
|
|
(1)
|
Includes collateral-dependent loans measured for impairment.
|
|
Estimated Fair Value Measurements at Reporting Date Using
|
|
June 30, 2018
|
||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Trading account securities
|
$
|
78
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
85
|
|
Available-for-sale securities
|
6
|
|
|
10,886
|
|
|
3,178
|
|
|
14,070
|
|
||||
Held-to-maturity securities
|
—
|
|
|
8,391
|
|
|
—
|
|
|
8,391
|
|
||||
Other securities
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||
Loans held for sale
|
—
|
|
|
643
|
|
|
70
|
|
|
713
|
|
||||
Net loans and direct financing leases
|
—
|
|
|
50
|
|
|
70,946
|
|
|
70,996
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
—
|
|
|
73,371
|
|
|
6,163
|
|
|
79,534
|
|
||||
Short-term borrowings
|
2
|
|
|
—
|
|
|
2,440
|
|
|
2,442
|
|
||||
Long-term debt
|
—
|
|
|
9,416
|
|
|
473
|
|
|
9,889
|
|
|
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
|
|
Available-for-sale securities
|
5
|
|
|
11,673
|
|
|
3,191
|
|
|
14,869
|
|
||||
Held-to-maturity securities
|
—
|
|
|
8,971
|
|
|
—
|
|
|
8,971
|
|
||||
Other securities
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||
Loans held for sale
|
—
|
|
|
413
|
|
|
78
|
|
|
491
|
|
||||
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
|
|
|
June 30, 2018
|
December 31, 2017
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Derivatives designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
16
|
|
|
$
|
66
|
|
|
$
|
22
|
|
|
$
|
121
|
|
Derivatives not designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
268
|
|
|
176
|
|
|
187
|
|
|
100
|
|
||||
Foreign exchange contracts
|
32
|
|
|
29
|
|
|
18
|
|
|
18
|
|
||||
Commodities contracts
|
134
|
|
|
129
|
|
|
92
|
|
|
87
|
|
||||
Equity contracts
|
4
|
|
|
6
|
|
|
3
|
|
|
5
|
|
||||
Total Contracts
|
$
|
454
|
|
|
$
|
406
|
|
|
$
|
322
|
|
|
$
|
331
|
|
|
|
Location of Gain or (Loss) Recognized in Income on Derivative
|
|
Amount of Gain or (Loss) Recognized in Income on Derivative
|
||||||
(dollar amounts in millions)
|
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||
Interest rate contracts:
|
|
|
|
|
|
|
||||
Customer
|
|
Capital markets fees
|
|
$
|
12
|
|
|
$
|
19
|
|
Mortgage Banking
|
|
Mortgage banking income
|
|
—
|
|
|
(8
|
)
|
||
Foreign exchange contracts
|
|
Capital markets fees
|
|
7
|
|
|
12
|
|
||
Commodities contracts
|
|
Capital markets fees
|
|
—
|
|
|
2
|
|
||
Equity contracts
|
|
Other noninterest expense
|
|
(3
|
)
|
|
(3
|
)
|
||
Total
|
|
|
|
$
|
16
|
|
|
$
|
22
|
|
|
June 30, 2018
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Investment securities
|
—
|
|
|
12
|
|
|
$
|
12
|
|
||
Subordinated notes
|
375
|
|
|
—
|
|
|
375
|
|
|||
Long-term debt
|
4,990
|
|
|
—
|
|
|
4,990
|
|
|||
Total notional value at June 30, 2018
|
$
|
5,365
|
|
|
$
|
12
|
|
|
$
|
5,377
|
|
|
|
|
|
|
|
||||||
|
December 31, 2017
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Subordinated notes
|
950
|
|
|
—
|
|
|
950
|
|
|||
Long-term debt
|
7,425
|
|
|
—
|
|
|
7,425
|
|
|||
Total notional value at December 31, 2017
|
$
|
8,375
|
|
|
$
|
—
|
|
|
$
|
8,375
|
|
|
June 30, 2018
|
|||||||||||||||
|
|
|
|
|
|
|
Weighted-Average Rate
|
|||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
|
Receive
|
|
Pay
|
|||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive fixed—generic
|
$
|
12
|
|
|
1.7
|
|
|
$
|
—
|
|
|
2.20
|
%
|
|
2.07
|
%
|
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive fixed—generic
|
5,365
|
|
|
2.2
|
|
|
(50
|
)
|
|
1.93
|
|
|
2.27
|
|
||
Total swap portfolio at June 30, 2018
|
$
|
5,377
|
|
|
2.2
|
|
|
$
|
(50
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, 2017
|
|||||||||||||||
|
|
|
|
|
|
|
Weighted-Average Rate
|
|||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
|
Receive
|
|
Pay
|
|||||||
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
|
)
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||
Change in fair value of interest rate swaps hedging subordinated notes (1)
|
41
|
|
|
2
|
|
|
24
|
|
|
(2
|
)
|
Change in fair value of hedged subordinated notes (1)
|
(42
|
)
|
|
(2
|
)
|
|
(24
|
)
|
|
3
|
|
Change in fair value of interest rate swaps hedging other long-term debt (1)
|
93
|
|
|
16
|
|
|
42
|
|
|
6
|
|
Change in fair value of hedged other long-term debt (1)
|
(90
|
)
|
|
(17
|
)
|
|
(37
|
)
|
|
(8
|
)
|
(1)
|
Recognized in Interest expense—subordinated notes and other long-term debt in the Unaudited Condensed Consolidated Statements of Income.
|
|
Carrying Amount of the Hedged Liabilities
|
|
Cumulative Amount of Fair Value Hedging Adjustment To Hedged Liabilities
|
||||
(dollar amounts in millions)
|
June 30, 2018
|
|
June 30, 2018
|
||||
Long-term debt
|
$
|
5,302
|
|
|
$
|
(55
|
)
|
Derivatives used in mortgage banking activities
|
June 30, 2018
|
December 31, 2017
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Interest rate lock agreements
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Forward trades and options
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
||||
Total derivatives used in mortgage banking activities
|
$
|
8
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Offsetting of Financial Liabilities and Derivative Liabilities
|
||||||||||||||||||||||||
|
|
|
|
Gross amounts
offset in the
condensed
consolidated
balance sheets
|
|
Net amounts of
liabilities
presented in
the condensed
consolidated
balance sheets
|
|
Gross amounts not offset in
the condensed consolidated
balance sheets
|
|
|
||||||||||||||
(dollar amounts in millions)
|
|
Gross amounts
of recognized
liabilities
|
|
|
|
Financial
instruments
|
|
Cash collateral
delivered
|
|
Net amount
|
||||||||||||||
June 30, 2018
|
Derivatives
|
$
|
406
|
|
|
$
|
(204
|
)
|
|
$
|
202
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
182
|
|
December 31, 2017
|
Derivatives
|
331
|
|
|
(245
|
)
|
|
86
|
|
|
—
|
|
|
(21
|
)
|
|
65
|
|
|
June 30, 2018
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
2016-1 Automobile Trust
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
4
|
|
2015-1 Automobile Trust
|
—
|
|
|
—
|
|
|
—
|
|
|||
Trust Preferred Securities
|
14
|
|
|
252
|
|
|
—
|
|
|||
Affordable Housing Tax Credit Partnerships
|
625
|
|
|
293
|
|
|
625
|
|
|||
Other Investments
|
135
|
|
|
62
|
|
|
135
|
|
|||
Total
|
$
|
778
|
|
|
$
|
608
|
|
|
$
|
764
|
|
|
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
|
|
(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
|
3.04
|
%
|
(2)
|
$
|
70
|
|
|
$
|
6
|
|
Huntington Capital II
|
2.96
|
|
(3)
|
32
|
|
|
3
|
|
||
Sky Financial Capital Trust III
|
3.74
|
|
(4)
|
72
|
|
|
2
|
|
||
Sky Financial Capital Trust IV
|
3.74
|
|
(4)
|
74
|
|
|
2
|
|
||
Camco Financial Trust
|
3.67
|
|
(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
June 30, 2018
, based on three-month LIBOR +
0.70%
.
|
(3)
|
Variable effective rate at
June 30, 2018
, based on three-month LIBOR +
0.625%
.
|
(4)
|
Variable effective rate at
June 30, 2018
, based on three-month LIBOR +
1.40%
.
|
(5)
|
Variable effective rate at
June 30, 2018
, based on
three-month LIBOR
+
1.33%
.
|
(dollar amounts in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Affordable housing tax credit investments
|
$
|
1,024
|
|
|
$
|
996
|
|
Less: amortization
|
(399
|
)
|
|
(360
|
)
|
||
Net affordable housing tax credit investments
|
$
|
625
|
|
|
$
|
636
|
|
Unfunded commitments
|
$
|
293
|
|
|
$
|
335
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Tax credits and other tax benefits recognized
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
46
|
|
|
$
|
46
|
|
Proportional amortization method
|
|
|
|
|
|
|
|
|
||||||||
Tax credit amortization expense included in provision for income taxes
|
20
|
|
|
17
|
|
|
39
|
|
|
34
|
|
(dollar amounts in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Contract amount representing credit risk
|
|
|
|
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial
|
$
|
16,641
|
|
|
$
|
16,219
|
|
Consumer
|
14,338
|
|
|
13,384
|
|
||
Commercial real estate
|
1,200
|
|
|
1,366
|
|
||
Standby letters of credit
|
601
|
|
|
510
|
|
||
Commercial letters-of-credit
|
27
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended June 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
413
|
|
|
$
|
229
|
|
|
$
|
100
|
|
|
$
|
46
|
|
|
$
|
(4
|
)
|
|
$
|
784
|
|
Provision (benefit) for credit losses
|
27
|
|
|
18
|
|
|
10
|
|
|
1
|
|
|
—
|
|
|
56
|
|
||||||
Noninterest income
|
187
|
|
|
80
|
|
|
2
|
|
|
48
|
|
|
19
|
|
|
336
|
|
||||||
Noninterest expense
|
429
|
|
|
128
|
|
|
38
|
|
|
66
|
|
|
(9
|
)
|
|
652
|
|
||||||
Provision (benefit) for income taxes
|
30
|
|
|
35
|
|
|
11
|
|
|
6
|
|
|
(25
|
)
|
|
57
|
|
||||||
Net income (loss)
|
$
|
114
|
|
|
$
|
128
|
|
|
$
|
43
|
|
|
$
|
21
|
|
|
$
|
49
|
|
|
$
|
355
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
385
|
|
|
223
|
|
|
106
|
|
|
42
|
|
|
(11
|
)
|
|
745
|
|
||||||
Provision (benefit) for credit losses
|
17
|
|
|
(5
|
)
|
|
16
|
|
|
(3
|
)
|
|
—
|
|
|
25
|
|
||||||
Noninterest income
|
184
|
|
|
69
|
|
|
3
|
|
|
47
|
|
|
22
|
|
|
325
|
|
||||||
Noninterest expense
|
413
|
|
|
119
|
|
|
38
|
|
|
61
|
|
|
63
|
|
|
694
|
|
||||||
Provision (benefit) for income taxes
|
49
|
|
|
62
|
|
|
19
|
|
|
11
|
|
|
(62
|
)
|
|
79
|
|
||||||
Net income (loss)
|
$
|
90
|
|
|
$
|
116
|
|
|
$
|
36
|
|
|
$
|
20
|
|
|
$
|
10
|
|
|
$
|
272
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
808
|
|
|
$
|
449
|
|
|
$
|
199
|
|
|
$
|
91
|
|
|
$
|
7
|
|
|
$
|
1,554
|
|
Provision (benefit) for credit losses
|
59
|
|
|
39
|
|
|
23
|
|
|
1
|
|
|
—
|
|
|
122
|
|
||||||
Noninterest income
|
361
|
|
|
149
|
|
|
6
|
|
|
98
|
|
|
36
|
|
|
650
|
|
||||||
Noninterest expense
|
840
|
|
|
249
|
|
|
74
|
|
|
123
|
|
|
(1
|
)
|
|
1,285
|
|
||||||
Provision (benefit) for income taxes
|
57
|
|
|
65
|
|
|
23
|
|
|
13
|
|
|
(42
|
)
|
|
116
|
|
||||||
Net income (loss)
|
$
|
213
|
|
|
$
|
245
|
|
|
$
|
85
|
|
|
$
|
52
|
|
|
$
|
86
|
|
|
$
|
681
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
759
|
|
|
$
|
452
|
|
|
$
|
210
|
|
|
$
|
83
|
|
|
$
|
(29
|
)
|
|
$
|
1,475
|
|
Provision (benefit) for credit losses
|
51
|
|
|
16
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
93
|
|
||||||
Noninterest income
|
355
|
|
|
134
|
|
|
8
|
|
|
94
|
|
|
47
|
|
|
638
|
|
||||||
Noninterest expense
|
826
|
|
|
236
|
|
|
74
|
|
|
124
|
|
|
142
|
|
|
1,402
|
|
||||||
Provision (benefit) for income taxes
|
83
|
|
|
117
|
|
|
41
|
|
|
19
|
|
|
(122
|
)
|
|
138
|
|
||||||
Net income (loss)
|
$
|
154
|
|
|
$
|
217
|
|
|
$
|
77
|
|
|
$
|
34
|
|
|
$
|
(2
|
)
|
|
$
|
480
|
|
|
Assets at
|
|
Deposits at
|
||||||||||||
(dollar amounts in millions)
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2018 |
|
December 31,
2017 |
||||||||
Consumer & Business Banking
|
$
|
27,013
|
|
|
$
|
26,220
|
|
|
$
|
48,186
|
|
|
$
|
45,643
|
|
Commercial Banking
|
33,036
|
|
|
32,118
|
|
|
21,142
|
|
|
21,235
|
|
||||
Vehicle Finance
|
18,590
|
|
|
17,865
|
|
|
340
|
|
|
358
|
|
||||
RBHPCG
|
6,185
|
|
|
5,821
|
|
|
5,985
|
|
|
6,057
|
|
||||
Treasury / Other
|
20,534
|
|
|
22,161
|
|
|
3,934
|
|
|
3,748
|
|
||||
Total
|
$
|
105,358
|
|
|
$
|
104,185
|
|
|
$
|
79,587
|
|
|
$
|
77,041
|
|
Exhibit
Number
|
|
Document Description
|
|
Report or Registration Statement
|
|
SEC File or
Registration
Number
|
|
Exhibit
Reference
|
|
|
3.1 (P)
|
|
Articles of Restatement of Charter.
|
|
Annual Report on Form 10-K for the year ended December 31, 1993
|
|
000-02525
|
|
3
|
|
(i)
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.4
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.5
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.6
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.7
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.8
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.10
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.11
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.12
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.13
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
3.14
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
4.1(P)
|
|
Instruments defining the Rights of Security Holders—reference is made to Articles Fifth, Eighth, and Tenth of Articles of Restatement of Charter, as amended and supplemented. Instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission upon request.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
10.4
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
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32.1
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32.2
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101
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*The following material from Huntington’s Form 10-Q Report for the quarterly period ended June 30, 2018, formatted in XBRL: (1) Unaudited Condensed Consolidated Balance Sheets, (2) Unaudited Condensed Consolidated Statements of Income, (3) Unaudited Condensed Consolidated Statements of Comprehensive Income (4) Unaudited Condensed Consolidated Statement of Changes in Shareholders’ Equity, (5) Unaudited Condensed Consolidated Statements of Cash Flows, and (6) the Notes to Unaudited Condensed Consolidated Financial Statements.
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*
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Filed herewith
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**
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Furnished herewith
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Date:
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July 30, 2018
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/s/ Stephen D. Steinour
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Stephen D. Steinour
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Chairman, President, and Chief Executive Officer (Principal Executive Officer)
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Date:
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July 30, 2018
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/s/ Howell D. McCullough III
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Howell D. McCullough III
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Chief Financial Officer
(Principal Financial Officer)
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1.
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Grant of Options
.
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2.
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Vesting Provisions
.
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3.
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Forfeiture Provisions
.
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(1)
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within 12 months after a Change in Control occurs, the Employee’s service has been terminated by the Company (provided that such termination is for a reason other than for Cause); or
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(2)
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the Company previously terminated the Employee’s service without Cause (i) during the year before the Change in Control was consummated, but (ii) after a third party or the Company had taken steps reasonably calculated to effect a Change in Control. In addition to items (i)-(ii) above, the Employee also must reasonably demonstrate that such termination of service was in connection with or in anticipation of the Change in Control.
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1.
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Solicit, encourage, or induce any person employed by the Company, or attempt to solicit, encourage or induce any person employed by the Company, to terminate his or her employment with the Company or to seek or accept employment with any other person or entity; or
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2.
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Contact or attempt to contact any customer or prospective customer of the Company for whom the Employee performed any services or had any direct or indirect business contact for the purposes of identifying his or her new association or his or her change of employment or current affiliation; or
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3.
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Contact any customer of the Company for whom the Employee performed any services or had any direct or indirect business contact for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers to obtain any product or service offered by the Company from any person or entity other than the Company; or
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4.
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Contact any customer or prospective customer of the Company whose identity or other customer specific information the Employee obtained or gained access to as an employee of Company for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers or prospective customers to obtain any product or service provided by the Company from any person or entity other than the Company; or
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5.
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Accept or provide assistance in the accepting of business from any customers or any prospective customers of the Company for whom the Employee performed any services or had any direct or indirect business contact, or whose identity or other
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Level
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Notice Period
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SVP
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30 days
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EVP
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60 days
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SEVP
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90 days
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1.
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Grant of Restricted Stock Units
.
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2.
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Employee RSU Account
.
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3.
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Vesting Provisions
.
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4.
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Forfeiture Provisions
.
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5.
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Change in Control
.
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6.
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Issuance of Stock
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7.
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Election to
Defer Receipt of Shares
.
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8.
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Withholding Taxes
.
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9.
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Non-transferability of Grant
.
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10.
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Employee’s Rights Unsecured
.
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11.
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No Voting Rights as Stockholder
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12.
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Dividends
.
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13.
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Capital Adjustment Provisions
.
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14.
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Securities Law Compliance
.
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15.
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Plan Governs
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16.
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No Right to Continued Employment
.
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17.
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Addresses for Notices
.
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18.
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Captions
.
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19.
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Notice Severable
.
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20.
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Expenses
.
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21.
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Governing Law and Exclusive Jurisdiction
.
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22.
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Entire Notice; Amendment; Code Section 409A Provisions
.
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1.
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Solicit, encourage, or induce any person employed by the Company, or attempt to solicit, encourage or induce any person employed by the Company, to terminate his or her employment with the Company or to seek or accept employment with any other person or entity; or
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2.
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Contact or attempt to contact any customer or prospective customer of the Company for whom the Employee performed any services or had any direct or indirect business contact for the purposes of identifying his or her new association or his or her change of employment or current affiliation; or
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3.
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Contact any customer of the Company for whom the Employee performed any services or had any direct or indirect business contact for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers to obtain any product or service offered by the Company from any person or entity other than the Company; or
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4.
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Contact any customer or prospective customer of the Company whose identity or other customer specific information the Employee obtained or gained access to as an employee of Company for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers or prospective customers to obtain any product or service provided by the Company from any person or entity other than the Company; or
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5.
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Accept or provide assistance in the accepting of business from any customers or any prospective customers of the Company for whom the Employee performed any services or had any direct or indirect business contact, or whose identity or other customer specific information the Employee obtained or gained access to as an employee of the Company.
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Level
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Notice Period
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SVP
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30 days
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EVP
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60 days
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SEVP
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90 days
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1.
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Solicit, encourage, or induce any person employed by the Company, or attempt to solicit, encourage or induce any person employed by the Company, to terminate his or her employment with the Company or to seek or accept employment with any other person or entity; or
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2.
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Contact or attempt to contact any customer or prospective customer of the Company for whom the Employee performed any services or had any direct or indirect business contact for the purposes of identifying his or her new association or his or her change of employment or current affiliation; or
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3.
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Contact any customer of the Company for whom the Employee performed any services or had any direct or indirect business contact for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers to obtain any product or service offered by the Company from any person or entity other than the Company; or
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4.
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Contact any customer or prospective customer of the Company whose identity or other customer specific information the Employee obtained or gained access to as an employee of Company for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers or prospective customers to obtain any product or service provided by the Company from any person or entity other than the Company; or
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5.
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Accept or provide assistance in the accepting of business from any customers or any prospective customers of the Company for whom the Employee performed any services or had any direct or indirect business contact, or whose identity or other customer specific information the Employee obtained or gained access to as an employee of the Company.
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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The registrant’s other certifying officer 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):
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a)
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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
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b)
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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.
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Date:
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July 30, 2018
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/s/
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Stephen D. Steinour
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Stephen D. Steinour
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Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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The registrant’s other certifying officer 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):
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a)
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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
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b)
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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.
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Date:
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July 30, 2018
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/s/
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Howell D. McCullough III
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|
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Howell D. McCullough III
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/
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Stephen D. Steinour
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Stephen D. Steinour
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Chief Executive Officer
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July 30, 2018
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/
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Howell D. McCullough III
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Howell D. McCullough III
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Chief Financial Officer
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July 30, 2018
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