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
|
¨
|
||||
|
|
|
|
Smaller reporting company
|
¨
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
|
|
|
|
ACL
|
|
Allowance for Credit Losses
|
AFS
|
|
Available-for-Sale
|
ALCO
|
|
Asset-Liability Management Committee
|
ALLL
|
|
Allowance for Loan and Lease Losses
|
AOCI
|
|
Accumulated Other Comprehensive Income
|
ASC
|
|
Accounting Standards Codification
|
ASR
|
|
Accelerated Share Repurchase
|
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
|
FASB
|
|
Financial Accounting Standards Board
|
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
|
SAB
|
|
Staff Accounting Bulletin
|
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)
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions, share amounts in thousands)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Interest income
|
$
|
2,893
|
|
|
$
|
2,539
|
|
|
$
|
354
|
|
|
14
|
%
|
Interest expense
|
537
|
|
|
306
|
|
|
231
|
|
|
75
|
|
|||
Net interest income
|
2,356
|
|
|
2,233
|
|
|
123
|
|
|
6
|
|
|||
Provision for credit losses
|
175
|
|
|
136
|
|
|
39
|
|
|
29
|
|
|||
Net interest income after provision for credit losses
|
2,181
|
|
|
2,097
|
|
|
84
|
|
|
4
|
|
|||
Service charges on deposit accounts
|
270
|
|
|
262
|
|
|
8
|
|
|
3
|
|
|||
Cards and payment processing income
|
166
|
|
|
153
|
|
|
13
|
|
|
8
|
|
|||
Trust and investment management services
|
129
|
|
|
115
|
|
|
14
|
|
|
12
|
|
|||
Mortgage banking income
|
85
|
|
|
98
|
|
|
(13
|
)
|
|
(13
|
)
|
|||
Insurance income
|
61
|
|
|
60
|
|
|
1
|
|
|
2
|
|
|||
Capital markets fees
|
62
|
|
|
53
|
|
|
9
|
|
|
17
|
|
|||
Bank owned life insurance income
|
51
|
|
|
49
|
|
|
2
|
|
|
4
|
|
|||
Gain on sale of loans
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|||
Securities gains (losses)
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(100
|
)
|
|||
Other noninterest income
|
131
|
|
|
138
|
|
|
(7
|
)
|
|
(5
|
)
|
|||
Total noninterest income
|
992
|
|
|
967
|
|
|
25
|
|
|
3
|
|
|||
Personnel costs
|
1,160
|
|
|
1,151
|
|
|
9
|
|
|
1
|
|
|||
Outside data processing and other services
|
211
|
|
|
242
|
|
|
(31
|
)
|
|
(13
|
)
|
|||
Net occupancy
|
114
|
|
|
176
|
|
|
(62
|
)
|
|
(35
|
)
|
|||
Equipment
|
116
|
|
|
135
|
|
|
(19
|
)
|
|
(14
|
)
|
|||
Deposit and other insurance expense
|
54
|
|
|
59
|
|
|
(5
|
)
|
|
(8
|
)
|
|||
Professional services
|
43
|
|
|
51
|
|
|
(8
|
)
|
|
(16
|
)
|
|||
Marketing
|
38
|
|
|
50
|
|
|
(12
|
)
|
|
(24
|
)
|
|||
Amortization of intangibles
|
40
|
|
|
42
|
|
|
(2
|
)
|
|
(5
|
)
|
|||
Other noninterest expense
|
160
|
|
|
176
|
|
|
(16
|
)
|
|
(9
|
)
|
|||
Total noninterest expense
|
1,936
|
|
|
2,082
|
|
|
(146
|
)
|
|
(7
|
)
|
|||
Income before income taxes
|
1,237
|
|
|
982
|
|
|
255
|
|
|
26
|
|
|||
Provision for income taxes
|
178
|
|
|
228
|
|
|
(50
|
)
|
|
(22
|
)
|
|||
Net income
|
1,059
|
|
|
754
|
|
|
305
|
|
|
40
|
|
|||
Dividends declared on preferred shares
|
51
|
|
|
57
|
|
|
(6
|
)
|
|
(11
|
)
|
|||
Net income applicable to common shares
|
$
|
1,008
|
|
|
$
|
697
|
|
|
$
|
311
|
|
|
45
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Average common shares—basic
|
1,090,570
|
|
|
1,087,115
|
|
|
3,455
|
|
|
—
|
%
|
|||
Average common shares—diluted
|
1,116,978
|
|
|
1,107,878
|
|
|
9,100
|
|
|
1
|
|
|||
Net income per common share—basic
|
$
|
0.92
|
|
|
$
|
0.64
|
|
|
$
|
0.28
|
|
|
44
|
|
Net income per common share—diluted
|
0.90
|
|
|
0.63
|
|
|
0.27
|
|
|
43
|
|
|||
Cash dividends declared per common share
|
0.36
|
|
|
0.24
|
|
|
0.12
|
|
|
50
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Revenue—FTE
|
|
|
|
|
|
|
|
|
||||||
Net interest income
|
$
|
2,356
|
|
|
$
|
2,233
|
|
|
$
|
123
|
|
|
6
|
%
|
FTE adjustment
|
22
|
|
|
38
|
|
|
(16
|
)
|
|
(42
|
)
|
|||
Net interest income (3)
|
2,378
|
|
|
2,271
|
|
|
107
|
|
|
5
|
|
|||
Noninterest income
|
992
|
|
|
967
|
|
|
25
|
|
|
3
|
|
|||
Total revenue (3)
|
$
|
3,370
|
|
|
$
|
3,238
|
|
|
$
|
132
|
|
|
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
third quarter,
$31 million
of noninterest expense was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.02 per common share.
|
•
|
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.
|
•
|
During the 2017 first quarter, $73 million of noninterest expense and $2 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.04 per common share.
|
(1)
|
Based upon the quarterly average outstanding diluted common shares.
|
|
Nine Months Ended
|
||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||
(dollar amounts in millions, except per share amounts)
|
Amount
|
|
EPS (1)
|
|
Amount
|
|
EPS (1)
|
||||||||
Net income
|
$
|
1,059
|
|
|
|
|
$
|
754
|
|
|
|
||||
Earnings per share, after-tax
|
|
|
$
|
0.90
|
|
|
|
|
$
|
0.63
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Significant Items—favorable (unfavorable) impact:
|
Earnings
|
|
EPS (1)
|
|
Earnings
|
|
EPS (1)
|
||||||||
Mergers and acquisitions, net expenses
|
$
|
—
|
|
|
|
|
$
|
(152
|
)
|
|
|
||||
Tax impact
|
—
|
|
|
|
|
53
|
|
|
|
||||||
Mergers and acquisitions, after-tax
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(99
|
)
|
|
$
|
(0.09
|
)
|
(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
|
|||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Fully-taxable equivalent basis (1)
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in banks
|
1.95
|
%
|
|
1.95
|
%
|
|
1.97
|
%
|
|
1.92
|
%
|
|
1.77
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||||
Trading account securities
|
0.26
|
|
|
0.23
|
|
|
0.15
|
|
|
0.21
|
|
|
0.16
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|||||
Taxable
|
2.61
|
|
|
2.63
|
|
|
2.51
|
|
|
2.45
|
|
|
2.38
|
|
Tax-exempt
|
3.53
|
|
|
3.35
|
|
|
3.18
|
|
|
3.76
|
|
|
3.62
|
|
Total available-for-sale securities
|
2.84
|
|
|
2.81
|
|
|
2.67
|
|
|
2.75
|
|
|
2.64
|
|
Held-to-maturity securities—taxable
|
2.43
|
|
|
2.42
|
|
|
2.45
|
|
|
2.41
|
|
|
2.36
|
|
Other securities
|
4.58
|
|
|
4.58
|
|
|
3.98
|
|
|
3.86
|
|
|
3.35
|
|
Total securities
|
2.73
|
|
|
2.71
|
|
|
2.62
|
|
|
2.64
|
|
|
2.55
|
|
Loans held for sale
|
4.45
|
|
|
4.17
|
|
|
3.82
|
|
|
3.68
|
|
|
3.83
|
|
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
4.64
|
|
|
4.52
|
|
|
4.28
|
|
|
4.17
|
|
|
4.05
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
5.31
|
|
|
5.26
|
|
|
4.73
|
|
|
4.47
|
|
|
4.55
|
|
Commercial
|
4.63
|
|
|
4.58
|
|
|
4.24
|
|
|
4.03
|
|
|
4.08
|
|
Commercial real estate
|
4.74
|
|
|
4.68
|
|
|
4.32
|
|
|
4.10
|
|
|
4.16
|
|
Total commercial
|
4.66
|
|
|
4.55
|
|
|
4.29
|
|
|
4.15
|
|
|
4.07
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||
Automobile
|
3.75
|
|
|
3.63
|
|
|
3.56
|
|
|
3.61
|
|
|
3.60
|
|
Home equity
|
5.21
|
|
|
5.09
|
|
|
4.90
|
|
|
4.71
|
|
|
4.72
|
|
Residential mortgage
|
3.78
|
|
|
3.69
|
|
|
3.66
|
|
|
3.66
|
|
|
3.65
|
|
RV and marine finance
|
5.06
|
|
|
5.11
|
|
|
5.11
|
|
|
5.25
|
|
|
5.43
|
|
Other consumer
|
12.16
|
|
|
11.90
|
|
|
11.78
|
|
|
11.53
|
|
|
11.59
|
|
Total consumer
|
4.54
|
|
|
4.43
|
|
|
4.34
|
|
|
4.31
|
|
|
4.32
|
|
Total loans and leases
|
4.60
|
|
|
4.49
|
|
|
4.32
|
|
|
4.23
|
|
|
4.20
|
|
Total earning assets
|
4.16
|
|
|
4.07
|
|
|
3.91
|
|
|
3.83
|
|
|
3.78
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits—noninterest-bearing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Demand deposits—interest-bearing
|
0.45
|
|
|
0.38
|
|
|
0.29
|
|
|
0.26
|
|
|
0.23
|
|
Total demand deposits
|
0.22
|
|
|
0.18
|
|
|
0.14
|
|
|
0.12
|
|
|
0.10
|
|
Money market deposits
|
0.77
|
|
|
0.60
|
|
|
0.45
|
|
|
0.40
|
|
|
0.36
|
|
Savings and other domestic deposits
|
0.24
|
|
|
0.21
|
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
Core certificates of deposit
|
1.82
|
|
|
1.56
|
|
|
1.01
|
|
|
0.75
|
|
|
0.73
|
|
Total core deposits
|
0.65
|
|
|
0.51
|
|
|
0.36
|
|
|
0.32
|
|
|
0.30
|
|
Other domestic time deposits of $250,000 or more
|
1.40
|
|
|
1.01
|
|
|
0.69
|
|
|
0.54
|
|
|
0.61
|
|
Brokered deposits and negotiable CDs
|
1.98
|
|
|
1.81
|
|
|
1.47
|
|
|
1.21
|
|
|
1.16
|
|
Total deposits
|
0.73
|
|
|
0.59
|
|
|
0.43
|
|
|
0.37
|
|
|
0.35
|
|
Short-term borrowings
|
1.98
|
|
|
1.82
|
|
|
1.47
|
|
|
1.15
|
|
|
0.95
|
|
Long-term debt
|
3.78
|
|
|
3.75
|
|
|
2.92
|
|
|
2.73
|
|
|
2.65
|
|
Total interest-bearing liabilities
|
1.13
|
|
|
1.05
|
|
|
0.82
|
|
|
0.73
|
|
|
0.68
|
|
Net interest rate spread
|
3.03
|
|
|
3.02
|
|
|
3.09
|
|
|
3.10
|
|
|
3.10
|
|
Impact of noninterest-bearing funds on margin
|
0.29
|
|
|
0.27
|
|
|
0.21
|
|
|
0.20
|
|
|
0.19
|
|
Net interest margin
|
3.32
|
%
|
|
3.29
|
%
|
|
3.30
|
%
|
|
3.30
|
%
|
|
3.29
|
%
|
(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)
|
|||||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|
Nine Months Ended September 30,
|
|||||||||||||||
Fully-taxable equivalent basis (1)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
2018
|
|
2017
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in banks
|
$
|
86
|
|
|
$
|
102
|
|
|
$
|
(16
|
)
|
|
(16
|
)%
|
|
1.95
|
%
|
|
1.46
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Trading account securities
|
84
|
|
|
107
|
|
|
(23
|
)
|
|
(21
|
)
|
|
0.21
|
|
|
0.17
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Taxable
|
10,817
|
|
|
12,157
|
|
|
(1,340
|
)
|
|
(11
|
)
|
|
2.58
|
|
|
2.36
|
|
|||
Tax-exempt
|
3,561
|
|
|
3,105
|
|
|
456
|
|
|
15
|
|
|
3.35
|
|
|
3.70
|
|
|||
Total available-for-sale securities
|
14,378
|
|
|
15,262
|
|
|
(884
|
)
|
|
(6
|
)
|
|
2.77
|
|
|
2.63
|
|
|||
Held-to-maturity securities—taxable
|
8,713
|
|
|
7,785
|
|
|
928
|
|
|
12
|
|
|
2.43
|
|
|
2.37
|
|
|||
Other securities
|
590
|
|
|
578
|
|
|
12
|
|
|
2
|
|
|
4.38
|
|
|
3.28
|
|
|||
Total securities
|
23,765
|
|
|
23,732
|
|
|
33
|
|
|
—
|
|
|
2.69
|
|
|
2.55
|
|
|||
Loans held for sale
|
615
|
|
|
540
|
|
|
75
|
|
|
14
|
|
|
4.19
|
|
|
3.79
|
|
|||
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
28,661
|
|
|
27,852
|
|
|
809
|
|
|
3
|
|
|
4.48
|
|
|
4.03
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction
|
1,149
|
|
|
1,198
|
|
|
(49
|
)
|
|
(4
|
)
|
|
5.09
|
|
|
4.24
|
|
|||
Commercial
|
6,131
|
|
|
6,014
|
|
|
117
|
|
|
2
|
|
|
4.49
|
|
|
3.92
|
|
|||
Commercial real estate
|
7,280
|
|
|
7,212
|
|
|
68
|
|
|
1
|
|
|
4.58
|
|
|
3.97
|
|
|||
Total commercial
|
35,941
|
|
|
35,064
|
|
|
877
|
|
|
3
|
|
|
4.50
|
|
|
4.01
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Automobile
|
12,247
|
|
|
11,369
|
|
|
878
|
|
|
8
|
|
|
3.65
|
|
|
3.57
|
|
|||
Home equity
|
9,948
|
|
|
9,983
|
|
|
(35
|
)
|
|
—
|
|
|
5.07
|
|
|
4.60
|
|
|||
Residential mortgage
|
9,682
|
|
|
8,055
|
|
|
1,627
|
|
|
20
|
|
|
3.71
|
|
|
3.65
|
|
|||
RV and marine finance
|
2,723
|
|
|
2,071
|
|
|
652
|
|
|
31
|
|
|
5.09
|
|
|
5.54
|
|
|||
Other consumer
|
1,175
|
|
|
997
|
|
|
178
|
|
|
18
|
|
|
11.91
|
|
|
11.53
|
|
|||
Total consumer
|
35,775
|
|
|
32,475
|
|
|
3,300
|
|
|
10
|
|
|
4.44
|
|
|
4.27
|
|
|||
Total loans and leases
|
71,716
|
|
|
67,539
|
|
|
4,177
|
|
|
6
|
|
|
4.47
|
|
|
4.14
|
|
|||
Allowance for loan and lease losses
|
(737
|
)
|
|
(660
|
)
|
|
(77
|
)
|
|
(12
|
)
|
|
|
|
|
|||||
Net loans and leases
|
70,979
|
|
|
66,879
|
|
|
4,100
|
|
|
6
|
|
|
|
|
|
|||||
Total earning assets
|
96,182
|
|
|
91,913
|
|
|
4,269
|
|
|
5
|
|
|
4.05
|
%
|
|
3.75
|
%
|
|||
Cash and due from banks
|
1,277
|
|
|
1,530
|
|
|
(253
|
)
|
|
(17
|
)
|
|
|
|
|
|||||
Intangible assets
|
2,318
|
|
|
2,373
|
|
|
(55
|
)
|
|
(2
|
)
|
|
|
|
|
|||||
All other assets
|
5,640
|
|
|
5,433
|
|
|
207
|
|
|
4
|
|
|
|
|
|
|||||
Total assets
|
$
|
104,680
|
|
|
$
|
100,589
|
|
|
$
|
4,091
|
|
|
4
|
%
|
|
|
|
|
||
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Demand deposits—noninterest-bearing
|
$
|
20,393
|
|
|
$
|
21,684
|
|
|
$
|
(1,291
|
)
|
|
(6
|
)%
|
|
—
|
%
|
|
—
|
%
|
Demand deposits—interest-bearing
|
19,105
|
|
|
17,380
|
|
|
1,725
|
|
|
10
|
|
|
0.37
|
|
|
0.20
|
|
|||
Total demand deposits
|
39,498
|
|
|
39,064
|
|
|
434
|
|
|
1
|
|
|
0.18
|
|
|
0.09
|
|
|||
Money market deposits
|
21,059
|
|
|
19,399
|
|
|
1,660
|
|
|
9
|
|
|
0.61
|
|
|
0.31
|
|
|||
Savings and other domestic deposits
|
11,267
|
|
|
11,815
|
|
|
(548
|
)
|
|
(5
|
)
|
|
0.22
|
|
|
0.21
|
|
|||
Core certificates of deposit
|
3,677
|
|
|
2,176
|
|
|
1,501
|
|
|
69
|
|
|
1.57
|
|
|
0.55
|
|
|||
Total core deposits
|
75,501
|
|
|
72,454
|
|
|
3,047
|
|
|
4
|
|
|
0.51
|
|
|
0.26
|
|
|||
Other domestic time deposits of $250,000 or more
|
259
|
|
|
460
|
|
|
(201
|
)
|
|
(44
|
)
|
|
1.05
|
|
|
0.51
|
|
|||
Brokered deposits and negotiable CDs
|
3,501
|
|
|
3,770
|
|
|
(269
|
)
|
|
(7
|
)
|
|
1.76
|
|
|
0.93
|
|
|||
Total deposits
|
79,261
|
|
|
76,684
|
|
|
2,577
|
|
|
3
|
|
|
0.59
|
|
|
0.31
|
|
|||
Short-term borrowings
|
3,335
|
|
|
2,952
|
|
|
383
|
|
|
13
|
|
|
1.67
|
|
|
0.76
|
|
|||
Long-term debt
|
9,033
|
|
|
8,738
|
|
|
295
|
|
|
3
|
|
|
3.48
|
|
|
2.49
|
|
|||
Total interest-bearing liabilities
|
71,236
|
|
|
66,690
|
|
|
4,546
|
|
|
7
|
|
|
1.01
|
|
|
0.61
|
|
|||
All other liabilities
|
1,935
|
|
|
1,627
|
|
|
308
|
|
|
19
|
|
|
|
|
|
|||||
Shareholders’ equity
|
11,116
|
|
|
10,588
|
|
|
528
|
|
|
5
|
|
|
|
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
104,680
|
|
|
$
|
100,589
|
|
|
$
|
4,091
|
|
|
4
|
%
|
|
|
|
|
||
Net interest rate spread
|
|
|
|
|
|
|
|
|
3.05
|
|
|
3.13
|
|
|||||||
Impact of noninterest-bearing funds on margin
|
|
|
|
|
|
|
|
|
0.26
|
|
|
0.17
|
|
|||||||
Net interest margin
|
|
|
|
|
|
|
|
|
3.31
|
%
|
|
3.30
|
%
|
(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
|
|
3Q18 vs. 3Q17
|
|
3Q18 vs. 2Q18
|
||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Service charges on deposit accounts
|
$
|
93
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
2
|
|
|
2
|
%
|
|
$
|
2
|
|
|
2
|
%
|
Cards and payment processing income
|
57
|
|
|
56
|
|
|
54
|
|
|
3
|
|
|
6
|
|
|
1
|
|
|
2
|
|
|||||
Trust and investment management services
|
43
|
|
|
42
|
|
|
39
|
|
|
4
|
|
|
10
|
|
|
1
|
|
|
2
|
|
|||||
Mortgage banking income
|
31
|
|
|
28
|
|
|
34
|
|
|
(3
|
)
|
|
(9
|
)
|
|
3
|
|
|
11
|
|
|||||
Insurance income
|
19
|
|
|
21
|
|
|
18
|
|
|
1
|
|
|
6
|
|
|
(2
|
)
|
|
(10
|
)
|
|||||
Capital markets fees
|
22
|
|
|
21
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|||||
Bank owned life insurance income
|
19
|
|
|
17
|
|
|
16
|
|
|
3
|
|
|
19
|
|
|
2
|
|
|
12
|
|
|||||
Gain on sale of loans and leases
|
16
|
|
|
15
|
|
|
14
|
|
|
2
|
|
|
14
|
|
|
1
|
|
|
7
|
|
|||||
Securities gains (losses)
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(100
|
)
|
|
(2
|
)
|
|
(100
|
)
|
|||||
Other income
|
44
|
|
|
45
|
|
|
42
|
|
|
2
|
|
|
5
|
|
|
(1
|
)
|
|
(2
|
)
|
|||||
Total noninterest income
|
$
|
342
|
|
|
$
|
336
|
|
|
$
|
330
|
|
|
$
|
12
|
|
|
4
|
%
|
|
$
|
6
|
|
|
2
|
%
|
Table 7 - Noninterest Income—2018 First Nine Months vs. 2017 First Nine Months
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Service charges on deposit accounts
|
$
|
270
|
|
|
$
|
262
|
|
|
$
|
8
|
|
|
3
|
%
|
Cards and payment processing income
|
166
|
|
|
153
|
|
|
13
|
|
|
8
|
|
|||
Trust and investment management services
|
129
|
|
|
115
|
|
|
14
|
|
|
12
|
|
|||
Mortgage banking income
|
85
|
|
|
98
|
|
|
(13
|
)
|
|
(13
|
)
|
|||
Insurance income
|
61
|
|
|
60
|
|
|
1
|
|
|
2
|
|
|||
Capital markets fees
|
62
|
|
|
53
|
|
|
9
|
|
|
17
|
|
|||
Bank owned life insurance income
|
51
|
|
|
49
|
|
|
2
|
|
|
4
|
|
|||
Gain on sale of loans and leases
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|||
Securities gains (losses)
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(100
|
)
|
|||
Other income
|
131
|
|
|
138
|
|
|
(7
|
)
|
|
(5
|
)
|
|||
Total noninterest income
|
$
|
992
|
|
|
$
|
967
|
|
|
$
|
25
|
|
|
3
|
%
|
Table 8 - Noninterest Expense
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
3Q18 vs. 3Q17
|
|
3Q18 vs. 2Q18
|
||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Personnel costs
|
$
|
388
|
|
|
$
|
396
|
|
|
$
|
377
|
|
|
$
|
11
|
|
|
3
|
%
|
|
$
|
(8
|
)
|
|
(2
|
)%
|
Outside data processing and other services
|
69
|
|
|
69
|
|
|
80
|
|
|
(11
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|||||
Net occupancy
|
38
|
|
|
35
|
|
|
55
|
|
|
(17
|
)
|
|
(31
|
)
|
|
3
|
|
|
9
|
|
|||||
Equipment
|
38
|
|
|
38
|
|
|
45
|
|
|
(7
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|||||
Deposit and other insurance expense
|
18
|
|
|
18
|
|
|
19
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
17
|
|
|
15
|
|
|
15
|
|
|
2
|
|
|
13
|
|
|
2
|
|
|
13
|
|
|||||
Marketing
|
12
|
|
|
18
|
|
|
17
|
|
|
(5
|
)
|
|
(29
|
)
|
|
(6
|
)
|
|
(33
|
)
|
|||||
Amortization of intangibles
|
13
|
|
|
13
|
|
|
14
|
|
|
(1
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||||
Other noninterest expense
|
58
|
|
|
50
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
16
|
|
|||||
Total noninterest expense
|
$
|
651
|
|
|
$
|
652
|
|
|
$
|
680
|
|
|
$
|
(29
|
)
|
|
(4
|
)%
|
|
$
|
(1
|
)
|
|
—
|
%
|
Number of employees (average full-time equivalent)
|
15,772
|
|
|
15,732
|
|
|
15,508
|
|
|
264
|
|
|
2
|
%
|
|
40
|
|
|
—
|
%
|
|
Three Months Ended
|
||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
||||||
Personnel costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Outside data processing and other services
|
—
|
|
|
—
|
|
|
4
|
|
|||
Net occupancy
|
—
|
|
|
—
|
|
|
14
|
|
|||
Equipment
|
—
|
|
|
—
|
|
|
7
|
|
|||
Professional services
|
—
|
|
|
—
|
|
|
2
|
|
|||
Total noninterest expense adjustments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
Three Months Ended
|
|
3Q18 vs. 3Q17
|
|
3Q18 vs. 2Q18
|
||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Personnel costs
|
$
|
388
|
|
|
$
|
396
|
|
|
$
|
373
|
|
|
$
|
15
|
|
|
4
|
%
|
|
$
|
(8
|
)
|
|
(2
|
)%
|
Outside data processing and other services
|
69
|
|
|
69
|
|
|
76
|
|
|
(7
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||||
Net occupancy
|
38
|
|
|
35
|
|
|
41
|
|
|
(3
|
)
|
|
(7
|
)
|
|
3
|
|
|
9
|
|
|||||
Equipment
|
38
|
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deposit and other insurance expense
|
18
|
|
|
18
|
|
|
19
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
17
|
|
|
15
|
|
|
13
|
|
|
4
|
|
|
31
|
|
|
2
|
|
|
13
|
|
|||||
Marketing
|
12
|
|
|
18
|
|
|
17
|
|
|
(5
|
)
|
|
(29
|
)
|
|
(6
|
)
|
|
(33
|
)
|
|||||
Amortization of intangibles
|
13
|
|
|
13
|
|
|
14
|
|
|
(1
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||||
Other noninterest expense
|
58
|
|
|
50
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
16
|
|
|||||
Total adjusted noninterest expense (Non-GAAP)
|
$
|
651
|
|
|
$
|
652
|
|
|
$
|
649
|
|
|
$
|
2
|
|
|
—
|
%
|
|
$
|
(1
|
)
|
|
—
|
%
|
Table 9 - Noninterest Expense—2018 First Nine Months vs. 2017 First Nine Months
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Personnel costs
|
$
|
1,160
|
|
|
$
|
1,151
|
|
|
$
|
9
|
|
|
1
|
%
|
Outside data processing and other services
|
211
|
|
|
242
|
|
|
(31
|
)
|
|
(13
|
)
|
|||
Net occupancy
|
114
|
|
|
176
|
|
|
(62
|
)
|
|
(35
|
)
|
|||
Equipment
|
116
|
|
|
135
|
|
|
(19
|
)
|
|
(14
|
)
|
|||
Deposit and other insurance expense
|
54
|
|
|
59
|
|
|
(5
|
)
|
|
(8
|
)
|
|||
Professional services
|
43
|
|
|
51
|
|
|
(8
|
)
|
|
(16
|
)
|
|||
Marketing
|
38
|
|
|
50
|
|
|
(12
|
)
|
|
(24
|
)
|
|||
Amortization of intangibles
|
40
|
|
|
42
|
|
|
(2
|
)
|
|
(5
|
)
|
|||
Other noninterest expense
|
160
|
|
|
176
|
|
|
(16
|
)
|
|
(9
|
)
|
|||
Total noninterest expense
|
$
|
1,936
|
|
|
$
|
2,082
|
|
|
$
|
(146
|
)
|
|
(7
|
)%
|
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Personnel costs
|
$
|
—
|
|
|
$
|
42
|
|
Outside data processing and other services
|
—
|
|
|
24
|
|
||
Net occupancy
|
—
|
|
|
52
|
|
||
Equipment
|
—
|
|
|
16
|
|
||
Professional services
|
—
|
|
|
10
|
|
||
Marketing
|
—
|
|
|
1
|
|
||
Other noninterest expense
|
—
|
|
|
9
|
|
||
Total noninterest expense adjustments
|
$
|
—
|
|
|
$
|
154
|
|
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Personnel costs
|
$
|
1,160
|
|
|
$
|
1,109
|
|
|
$
|
51
|
|
|
5
|
%
|
Outside data processing and other services
|
211
|
|
|
218
|
|
|
(7
|
)
|
|
(3
|
)
|
|||
Net occupancy
|
114
|
|
|
124
|
|
|
(10
|
)
|
|
(8
|
)
|
|||
Equipment
|
116
|
|
|
119
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Deposit and other insurance expense
|
54
|
|
|
59
|
|
|
(5
|
)
|
|
(8
|
)
|
|||
Professional services
|
43
|
|
|
41
|
|
|
2
|
|
|
5
|
|
|||
Marketing
|
38
|
|
|
49
|
|
|
(11
|
)
|
|
(22
|
)
|
|||
Amortization of intangibles
|
40
|
|
|
42
|
|
|
(2
|
)
|
|
(5
|
)
|
|||
Other noninterest expense
|
160
|
|
|
167
|
|
|
(7
|
)
|
|
(4
|
)
|
|||
Total adjusted noninterest expense (Non-GAAP)
|
$
|
1,936
|
|
|
$
|
1,928
|
|
|
$
|
8
|
|
|
—
|
%
|
Table 10 - Loan and Lease Portfolio Composition
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(dollar amounts in millions)
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|||||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial
|
$
|
29,196
|
|
|
40
|
%
|
|
$
|
28,850
|
|
|
40
|
%
|
|
$
|
28,622
|
|
|
40
|
%
|
|
$
|
28,107
|
|
|
40
|
%
|
|
$
|
27,469
|
|
|
40
|
%
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction
|
1,111
|
|
|
2
|
|
|
1,083
|
|
|
1
|
|
|
1,167
|
|
|
2
|
|
|
1,217
|
|
|
2
|
|
|
1,182
|
|
|
2
|
|
|||||
Commercial
|
5,962
|
|
|
8
|
|
|
6,118
|
|
|
8
|
|
|
6,245
|
|
|
9
|
|
|
6,008
|
|
|
9
|
|
|
6,024
|
|
|
9
|
|
|||||
Commercial real estate
|
7,073
|
|
|
10
|
|
|
7,201
|
|
|
9
|
|
|
7,412
|
|
|
11
|
|
|
7,225
|
|
|
11
|
|
|
7,206
|
|
|
11
|
|
|||||
Total commercial
|
36,269
|
|
|
50
|
|
|
36,051
|
|
|
49
|
|
|
36,034
|
|
|
51
|
|
|
35,332
|
|
|
51
|
|
|
34,675
|
|
|
51
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Automobile
|
12,375
|
|
|
17
|
|
|
12,390
|
|
|
17
|
|
|
12,146
|
|
|
17
|
|
|
12,100
|
|
|
17
|
|
|
11,876
|
|
|
17
|
|
|||||
Home equity
|
9,850
|
|
|
13
|
|
|
9,907
|
|
|
14
|
|
|
9,987
|
|
|
14
|
|
|
10,099
|
|
|
14
|
|
|
9,985
|
|
|
15
|
|
|||||
Residential mortgage
|
10,459
|
|
|
14
|
|
|
10,006
|
|
|
14
|
|
|
9,357
|
|
|
13
|
|
|
9,026
|
|
|
13
|
|
|
8,616
|
|
|
13
|
|
|||||
RV and marine finance
|
3,152
|
|
|
4
|
|
|
2,846
|
|
|
4
|
|
|
2,549
|
|
|
3
|
|
|
2,438
|
|
|
3
|
|
|
2,371
|
|
|
3
|
|
|||||
Other consumer
|
1,265
|
|
|
2
|
|
|
1,206
|
|
|
2
|
|
|
1,090
|
|
|
2
|
|
|
1,122
|
|
|
2
|
|
|
1,064
|
|
|
1
|
|
|||||
Total consumer
|
37,101
|
|
|
50
|
|
|
36,355
|
|
|
51
|
|
|
35,129
|
|
|
49
|
|
|
34,785
|
|
|
49
|
|
|
33,912
|
|
|
49
|
|
|||||
Total loans and leases
|
$
|
73,370
|
|
|
100
|
%
|
|
$
|
72,406
|
|
|
100
|
%
|
|
$
|
71,163
|
|
|
100
|
%
|
|
$
|
70,117
|
|
|
100
|
%
|
|
$
|
68,587
|
|
|
100
|
%
|
(1)
|
Amounts include
$3.3 billion
,
$3.2 billion
,
$3.4 billion
,
$3.2 billion
and
$3.0 billion
of auto dealer services loans at
September 30, 2018
,
June 30, 2018
,
March 31, 2018
,
December 31, 2017
and
September 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 15 - Quarterly Net Charge-off Analysis
|
|||||||||||
|
Three Months Ended
|
||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2017
|
||||||
Net charge-offs (recoveries) by loan and lease type:
|
|||||||||||
Commercial:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
13
|
|
Commercial real estate:
|
|
|
|
|
|
||||||
Construction
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Commercial
|
(3
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|||
Commercial real estate
|
(3
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|||
Total commercial
|
(4
|
)
|
|
2
|
|
|
9
|
|
|||
Consumer:
|
|
|
|
|
|
||||||
Automobile
|
8
|
|
|
7
|
|
|
9
|
|
|||
Home equity
|
1
|
|
|
—
|
|
|
1
|
|
|||
Residential mortgage
|
2
|
|
|
1
|
|
|
2
|
|
|||
RV and marine finance
|
2
|
|
|
2
|
|
|
4
|
|
|||
Other consumer
|
20
|
|
|
16
|
|
|
18
|
|
|||
Total consumer
|
33
|
|
|
26
|
|
|
34
|
|
|||
Total net charge-offs
|
$
|
29
|
|
|
$
|
28
|
|
|
$
|
43
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended
|
||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
|
2018
|
|
2018
|
|
2017
|
||||||
Net charge-offs (recoveries) - annualized percentages:
|
|||||||||||
Commercial:
|
|
|
|
|
|
||||||
Commercial and industrial
|
(0.01
|
)%
|
|
0.04
|
%
|
|
0.19
|
%
|
|||
Commercial real estate:
|
|
|
|
|
|
||||||
Construction
|
(0.01
|
)
|
|
(0.22
|
)
|
|
(0.30
|
)
|
|||
Commercial
|
(0.18
|
)
|
|
(0.06
|
)
|
|
(0.21
|
)
|
|||
Commercial real estate
|
(0.15
|
)
|
|
(0.08
|
)
|
|
(0.22
|
)
|
|||
Total commercial
|
(0.04
|
)
|
|
0.02
|
|
|
0.11
|
|
|||
Consumer:
|
|
|
|
|
|
||||||
Automobile
|
0.26
|
|
|
0.22
|
|
|
0.33
|
|
|||
Home equity
|
0.06
|
|
|
0.01
|
|
|
0.06
|
|
|||
Residential mortgage
|
0.07
|
|
|
0.04
|
|
|
0.10
|
|
|||
RV and marine finance
|
0.25
|
|
|
0.34
|
|
|
0.59
|
|
|||
Other consumer
|
6.32
|
|
|
5.60
|
|
|
6.51
|
|
|||
Total consumer
|
0.36
|
|
|
0.30
|
|
|
0.40
|
|
|||
Net charge-offs as a % of average loans
|
0.16
|
%
|
|
0.16
|
%
|
|
0.25
|
%
|
Table 16 - Year to Date Net Charge-off Analysis
|
|||||||
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Net charge-offs (recoveries) by loan and lease type: (1)
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
19
|
|
|
$
|
34
|
|
Commercial real estate:
|
|
|
|
||||
Construction
|
(1
|
)
|
|
(4
|
)
|
||
Commercial
|
(17
|
)
|
|
(6
|
)
|
||
Commercial real estate
|
(18
|
)
|
|
(10
|
)
|
||
Total commercial
|
1
|
|
|
24
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
25
|
|
|
30
|
|
||
Home equity
|
4
|
|
|
4
|
|
||
Residential mortgage
|
4
|
|
|
6
|
|
||
RV and marine finance
|
7
|
|
|
8
|
|
||
Other consumer
|
54
|
|
|
46
|
|
||
Total consumer
|
94
|
|
|
94
|
|
||
Total net charge-offs
|
$
|
95
|
|
|
$
|
118
|
|
|
|
|
|
||||
|
|
|
|
||||
|
Nine Months Ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
Net charge-offs (recoveries) - annualized percentages:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
0.09
|
%
|
|
0.16
|
%
|
||
Commercial real estate:
|
|
|
|
||||
Construction
|
(0.14
|
)
|
|
(0.44
|
)
|
||
Commercial
|
(0.34
|
)
|
|
(0.13
|
)
|
||
Commercial real estate
|
(0.31
|
)
|
|
(0.18
|
)
|
||
Total commercial
|
0.01
|
|
|
0.09
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
0.27
|
|
|
0.36
|
|
||
Home equity
|
0.06
|
|
|
0.06
|
|
||
Residential mortgage
|
0.05
|
|
|
0.09
|
|
||
RV and marine finance
|
0.33
|
|
|
0.49
|
|
||
Other consumer
|
6.12
|
|
|
6.13
|
|
||
Total consumer
|
0.35
|
|
|
0.39
|
|
||
Net charge-offs as a % of average loans
|
0.18
|
%
|
|
0.23
|
%
|
Table 19 - Deposit Composition
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||||||||||||||||||||||
(dollar amounts in millions)
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|||||||||||||||||||||||||
By Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits—noninterest-bearing
|
$
|
19,863
|
|
|
24
|
%
|
|
$
|
20,353
|
|
|
26
|
%
|
|
$
|
20,807
|
|
|
26
|
%
|
|
$
|
21,546
|
|
|
28
|
%
|
|
$
|
22,225
|
|
|
28
|
%
|
Demand deposits—interest-bearing
|
19,615
|
|
|
24
|
|
|
19,026
|
|
|
24
|
|
|
19,337
|
|
|
25
|
|
|
18,001
|
|
|
23
|
|
|
18,343
|
|
|
23
|
|
|||||
Money market deposits
|
21,411
|
|
|
26
|
|
|
20,990
|
|
|
26
|
|
|
20,849
|
|
|
26
|
|
|
20,690
|
|
|
27
|
|
|
20,553
|
|
|
26
|
|
|||||
Savings and other domestic deposits
|
11,604
|
|
|
14
|
|
|
10,987
|
|
|
14
|
|
|
11,291
|
|
|
14
|
|
|
11,270
|
|
|
15
|
|
|
11,441
|
|
|
15
|
|
|||||
Core certificates of deposit
|
5,358
|
|
|
7
|
|
|
4,402
|
|
|
6
|
|
|
3,157
|
|
|
4
|
|
|
1,934
|
|
|
3
|
|
|
2,009
|
|
|
3
|
|
|||||
Total core deposits:
|
77,851
|
|
|
95
|
|
|
75,758
|
|
|
96
|
|
|
75,441
|
|
|
95
|
|
|
73,441
|
|
|
96
|
|
|
74,571
|
|
|
95
|
|
|||||
Other domestic deposits of $250,000 or more
|
318
|
|
|
1
|
|
|
265
|
|
|
—
|
|
|
228
|
|
|
—
|
|
|
239
|
|
|
—
|
|
|
418
|
|
|
1
|
|
|||||
Brokered deposits and negotiable CDs
|
3,520
|
|
|
4
|
|
|
3,564
|
|
|
4
|
|
|
3,802
|
|
|
5
|
|
|
3,361
|
|
|
4
|
|
|
3,456
|
|
|
4
|
|
|||||
Total deposits
|
$
|
81,689
|
|
|
100
|
%
|
|
$
|
79,587
|
|
|
100
|
%
|
|
$
|
79,471
|
|
|
100
|
%
|
|
$
|
77,041
|
|
|
100
|
%
|
|
$
|
78,445
|
|
|
100
|
%
|
Total core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
35,455
|
|
|
46
|
%
|
|
$
|
34,094
|
|
|
45
|
%
|
|
$
|
34,615
|
|
|
46
|
%
|
|
$
|
34,273
|
|
|
47
|
%
|
|
$
|
35,516
|
|
|
48
|
%
|
Consumer
|
42,396
|
|
|
54
|
|
|
41,664
|
|
|
55
|
|
|
40,826
|
|
|
54
|
|
|
39,168
|
|
|
53
|
|
|
39,055
|
|
|
52
|
|
|||||
Total core deposits
|
$
|
77,851
|
|
|
100
|
%
|
|
$
|
75,758
|
|
|
100
|
%
|
|
$
|
75,441
|
|
|
100
|
%
|
|
$
|
73,441
|
|
|
100
|
%
|
|
$
|
74,571
|
|
|
100
|
%
|
Table 20 - Regulatory Capital Data
|
|
|
|
|
|
|
|
||||||
|
|
|
Basel III
|
||||||||||
(dollar amounts in millions)
|
|
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
||||||
Total risk-weighted assets
|
Consolidated
|
|
$
|
83,580
|
|
|
$
|
82,951
|
|
|
$
|
78,631
|
|
|
Bank
|
|
83,847
|
|
|
83,051
|
|
|
78,848
|
|
|||
CET I risk-based capital
|
Consolidated
|
|
8,263
|
|
|
8,737
|
|
|
7,817
|
|
|||
|
Bank
|
|
8,601
|
|
|
9,016
|
|
|
8,491
|
|
|||
Tier 1 risk-based capital
|
Consolidated
|
|
9,470
|
|
|
9,944
|
|
|
8,886
|
|
|||
|
Bank
|
|
9,480
|
|
|
9,896
|
|
|
9,362
|
|
|||
Tier 2 risk-based capital
|
Consolidated
|
|
1,697
|
|
|
1,643
|
|
|
1,639
|
|
|||
|
Bank
|
|
1,895
|
|
|
1,833
|
|
|
1,706
|
|
|||
Total risk-based capital
|
Consolidated
|
|
11,167
|
|
|
11,587
|
|
|
10,525
|
|
|||
|
Bank
|
|
11,375
|
|
|
11,729
|
|
|
11,068
|
|
|||
Tier 1 leverage ratio
|
Consolidated
|
|
9.14
|
%
|
|
9.65
|
%
|
|
8.96
|
%
|
|||
|
Bank
|
|
9.15
|
|
|
9.62
|
|
|
9.44
|
|
|||
CET I risk-based capital ratio
|
Consolidated
|
|
9.89
|
|
|
10.53
|
|
|
9.94
|
|
|||
|
Bank
|
|
10.26
|
|
|
10.86
|
|
|
10.77
|
|
|||
Tier 1 risk-based capital ratio
|
Consolidated
|
|
11.33
|
|
|
11.99
|
|
|
11.30
|
|
|||
|
Bank
|
|
11.31
|
|
|
11.92
|
|
|
11.87
|
|
|||
Total risk-based capital ratio
|
Consolidated
|
|
13.36
|
|
|
13.97
|
|
|
13.39
|
|
|||
|
Bank
|
|
13.57
|
|
|
14.12
|
|
|
14.04
|
|
Consumer and Business Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 22 - Key Performance Indicators for Consumer and Business Banking
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
1,239
|
|
|
$
|
1,151
|
|
|
$
|
88
|
|
|
8
|
%
|
Provision for credit losses
|
101
|
|
|
75
|
|
|
26
|
|
|
35
|
|
|||
Noninterest income
|
553
|
|
|
544
|
|
|
9
|
|
|
2
|
|
|||
Noninterest expense
|
1,266
|
|
|
1,242
|
|
|
24
|
|
|
2
|
|
|||
Provision for income taxes
|
89
|
|
|
132
|
|
|
(43
|
)
|
|
(33
|
)
|
|||
Net income
|
$
|
336
|
|
|
$
|
246
|
|
|
$
|
90
|
|
|
37
|
%
|
Number of employees (average full-time equivalent)
|
8,402
|
|
|
8,696
|
|
|
(294
|
)
|
|
(3
|
)%
|
|||
Total average assets
|
$
|
26,692
|
|
|
$
|
25,496
|
|
|
$
|
1,196
|
|
|
5
|
|
Total average loans/leases
|
21,712
|
|
|
20,612
|
|
|
1,100
|
|
|
5
|
|
|||
Total average deposits
|
47,082
|
|
|
45,257
|
|
|
1,825
|
|
|
4
|
|
|||
Net interest margin
|
3.62
|
%
|
|
3.50
|
%
|
|
0.12
|
%
|
|
3
|
|
|||
NCOs
|
$
|
75
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
—
|
|
NCOs as a % of average loans and leases
|
0.46
|
%
|
|
0.49
|
%
|
|
(0.03
|
)%
|
|
(6
|
)
|
Commercial Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 23 - Key Performance Indicators for Commercial Banking
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
688
|
|
|
$
|
675
|
|
|
$
|
13
|
|
|
2
|
%
|
Provision for credit losses
|
38
|
|
|
15
|
|
|
23
|
|
|
153
|
|
|||
Noninterest income
|
228
|
|
|
201
|
|
|
27
|
|
|
13
|
|
|||
Noninterest expense
|
373
|
|
|
353
|
|
|
20
|
|
|
6
|
|
|||
Provision for income taxes
|
106
|
|
|
178
|
|
|
(72
|
)
|
|
(40
|
)
|
|||
Net income
|
$
|
399
|
|
|
$
|
330
|
|
|
$
|
69
|
|
|
21
|
%
|
Number of employees (average full-time equivalent)
|
1,250
|
|
|
1,233
|
|
|
17
|
|
|
1
|
%
|
|||
Total average assets
|
$
|
32,936
|
|
|
$
|
31,329
|
|
|
$
|
1,607
|
|
|
5
|
|
Total average loans/leases
|
26,267
|
|
|
25,291
|
|
|
976
|
|
|
4
|
|
|||
Total average deposits
|
22,062
|
|
|
20,830
|
|
|
1,232
|
|
|
6
|
|
|||
Net interest margin
|
3.19
|
%
|
|
3.34
|
%
|
|
(0.15
|
)%
|
|
(4
|
)
|
|||
NCOs (Recoveries)
|
$
|
(12
|
)
|
|
$
|
3
|
|
|
$
|
(15
|
)
|
|
(500
|
)
|
NCOs as a % of average loans and leases
|
(0.06
|
)%
|
|
0.02
|
%
|
|
(0.08
|
)%
|
|
(400
|
)
|
Regional Banking and The Huntington Private Client Group
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 25 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
139
|
|
|
$
|
126
|
|
|
$
|
13
|
|
|
10
|
%
|
Provision for credit losses
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100
|
)
|
|||
Noninterest income
|
145
|
|
|
141
|
|
|
4
|
|
|
3
|
|
|||
Noninterest expense
|
184
|
|
|
182
|
|
|
2
|
|
|
1
|
|
|||
Provision for income taxes
|
21
|
|
|
29
|
|
|
(8
|
)
|
|
(28
|
)
|
|||
Net income
|
$
|
79
|
|
|
$
|
55
|
|
|
$
|
24
|
|
|
44
|
%
|
Number of employees (average full-time equivalent)
|
1,026
|
|
|
1,027
|
|
|
(1
|
)
|
|
—
|
%
|
|||
Total average assets
|
$
|
6,050
|
|
|
$
|
5,476
|
|
|
$
|
574
|
|
|
10
|
|
Total average loans/leases
|
5,394
|
|
|
4,782
|
|
|
612
|
|
|
13
|
|
|||
Total average deposits
|
5,837
|
|
|
6,041
|
|
|
(204
|
)
|
|
(3
|
)
|
|||
Net interest margin
|
3.25
|
%
|
|
2.87
|
%
|
|
0.38
|
%
|
|
13
|
|
|||
NCOs
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
(100
|
)
|
NCOs as a % of average loans and leases
|
0.01
|
%
|
|
0.05
|
%
|
|
(0.04
|
)%
|
|
(80
|
)
|
|||
Total assets under management (in billions)—eop
|
$
|
17.2
|
|
|
$
|
18.0
|
|
|
$
|
(0.8
|
)
|
|
(4
|
)
|
Total trust assets (in billions)—eop
|
114.3
|
|
|
106.3
|
|
|
8.0
|
|
|
8
|
|
•
|
Tangible common equity to tangible assets, and
|
•
|
Tangible common
equity to risk-weighted assets using Basel III definitions.
|
|
September 30,
|
|
December 31,
|
||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,299
|
|
|
$
|
1,520
|
|
Interest-bearing deposits in banks
|
43
|
|
|
47
|
|
||
Trading account securities
|
83
|
|
|
86
|
|
||
Available-for-sale securities
|
13,727
|
|
|
14,869
|
|
||
Held-to-maturity securities
|
8,465
|
|
|
9,091
|
|
||
Other securities
|
565
|
|
|
600
|
|
||
Loans held for sale (includes $727 and $413 respectively, measured at fair value)(1)
|
792
|
|
|
488
|
|
||
Loans and leases (includes $81 and $93 respectively, measured at fair value)(1)
|
73,370
|
|
|
70,117
|
|
||
Allowance for loan and lease losses
|
(761
|
)
|
|
(691
|
)
|
||
Net loans and leases
|
72,609
|
|
|
69,426
|
|
||
Bank owned life insurance
|
2,494
|
|
|
2,466
|
|
||
Premises and equipment
|
827
|
|
|
864
|
|
||
Goodwill
|
1,993
|
|
|
1,993
|
|
||
Other intangible assets
|
306
|
|
|
346
|
|
||
Servicing rights
|
251
|
|
|
238
|
|
||
Accrued income and other assets
|
2,198
|
|
|
2,151
|
|
||
Total assets
|
$
|
105,652
|
|
|
$
|
104,185
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits
|
$
|
81,689
|
|
|
$
|
77,041
|
|
Short-term borrowings
|
1,348
|
|
|
5,056
|
|
||
Long-term debt
|
9,385
|
|
|
9,206
|
|
||
Accrued expenses and other liabilities
|
2,296
|
|
|
2,068
|
|
||
Total liabilities
|
94,718
|
|
|
93,371
|
|
||
Commitments and contingencies (Note 17)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock
|
1,203
|
|
|
1,071
|
|
||
Common stock
|
11
|
|
|
11
|
|
||
Capital surplus
|
9,358
|
|
|
9,707
|
|
||
Less treasury shares, at cost
|
(44
|
)
|
|
(35
|
)
|
||
Accumulated other comprehensive loss
|
(790
|
)
|
|
(528
|
)
|
||
Retained earnings
|
1,196
|
|
|
588
|
|
||
Total shareholders’ equity
|
10,934
|
|
|
10,814
|
|
||
Total liabilities and shareholders’ equity
|
$
|
105,652
|
|
|
$
|
104,185
|
|
Common shares authorized (par value of $0.01)
|
1,500,000,000
|
|
|
1,500,000,000
|
|
||
Common shares issued
|
1,065,251,488
|
|
|
1,075,294,946
|
|
||
Common shares outstanding
|
1,061,529,259
|
|
|
1,072,026,681
|
|
||
Treasury shares outstanding
|
3,722,229
|
|
|
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
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest and fee income:
|
|
|
|
|
|
|
|
||||||||
Loans and leases
|
$
|
848
|
|
|
$
|
724
|
|
|
$
|
2,414
|
|
|
$
|
2,100
|
|
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Taxable
|
68
|
|
|
69
|
|
|
209
|
|
|
215
|
|
||||
Tax-exempt
|
24
|
|
|
19
|
|
|
71
|
|
|
56
|
|
||||
Held-to-maturity securities—taxable
|
52
|
|
|
49
|
|
|
159
|
|
|
138
|
|
||||
Other securities—taxable
|
6
|
|
|
5
|
|
|
19
|
|
|
14
|
|
||||
Other
|
9
|
|
|
7
|
|
|
21
|
|
|
16
|
|
||||
Total interest income
|
1,007
|
|
|
873
|
|
|
2,893
|
|
|
2,539
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
112
|
|
|
50
|
|
|
259
|
|
|
126
|
|
||||
Short-term borrowings
|
9
|
|
|
6
|
|
|
42
|
|
|
17
|
|
||||
Subordinated notes and other long-term debt
|
84
|
|
|
59
|
|
|
236
|
|
|
163
|
|
||||
Total interest expense
|
205
|
|
|
115
|
|
|
537
|
|
|
306
|
|
||||
Net interest income
|
802
|
|
|
758
|
|
|
2,356
|
|
|
2,233
|
|
||||
Provision for credit losses
|
53
|
|
|
43
|
|
|
175
|
|
|
136
|
|
||||
Net interest income after provision for credit losses
|
749
|
|
|
715
|
|
|
2,181
|
|
|
2,097
|
|
||||
Service charges on deposit accounts
|
93
|
|
|
91
|
|
|
270
|
|
|
262
|
|
||||
Cards and payment processing income
|
57
|
|
|
54
|
|
|
166
|
|
|
153
|
|
||||
Trust and investment management services
|
43
|
|
|
39
|
|
|
129
|
|
|
115
|
|
||||
Mortgage banking income
|
31
|
|
|
34
|
|
|
85
|
|
|
98
|
|
||||
Insurance income
|
19
|
|
|
18
|
|
|
61
|
|
|
60
|
|
||||
Capital markets fees
|
22
|
|
|
22
|
|
|
62
|
|
|
53
|
|
||||
Bank owned life insurance income
|
19
|
|
|
16
|
|
|
51
|
|
|
49
|
|
||||
Gain on sale of loans and leases
|
16
|
|
|
14
|
|
|
39
|
|
|
39
|
|
||||
Net (losses) gains on sales of securities
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
4
|
|
||||
Impairment losses on available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Other noninterest income
|
44
|
|
|
42
|
|
|
131
|
|
|
138
|
|
||||
Total noninterest income
|
342
|
|
|
330
|
|
|
992
|
|
|
967
|
|
||||
Personnel costs
|
388
|
|
|
377
|
|
|
1,160
|
|
|
1,151
|
|
||||
Outside data processing and other services
|
69
|
|
|
80
|
|
|
211
|
|
|
242
|
|
||||
Net occupancy
|
38
|
|
|
55
|
|
|
114
|
|
|
176
|
|
||||
Equipment
|
38
|
|
|
45
|
|
|
116
|
|
|
135
|
|
||||
Deposit and other insurance expense
|
18
|
|
|
19
|
|
|
54
|
|
|
59
|
|
||||
Professional services
|
17
|
|
|
15
|
|
|
43
|
|
|
51
|
|
||||
Marketing
|
12
|
|
|
17
|
|
|
38
|
|
|
50
|
|
||||
Amortization of intangibles
|
13
|
|
|
14
|
|
|
40
|
|
|
42
|
|
||||
Other noninterest expense
|
58
|
|
|
58
|
|
|
160
|
|
|
176
|
|
||||
Total noninterest expense
|
651
|
|
|
680
|
|
|
1,936
|
|
|
2,082
|
|
||||
Income before income taxes
|
440
|
|
|
365
|
|
|
1,237
|
|
|
982
|
|
||||
Provision for income taxes
|
62
|
|
|
90
|
|
|
178
|
|
|
228
|
|
||||
Net income
|
378
|
|
|
275
|
|
|
1,059
|
|
|
754
|
|
||||
Dividends on preferred shares
|
18
|
|
|
19
|
|
|
51
|
|
|
57
|
|
||||
Net income applicable to common shares
|
$
|
360
|
|
|
$
|
256
|
|
|
$
|
1,008
|
|
|
$
|
697
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
378
|
|
|
$
|
275
|
|
|
$
|
1,059
|
|
|
$
|
754
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Unrealized net gains (losses) on available-for-sale securities arising during the period, net of reclassification for net realized gains and losses
|
(62
|
)
|
|
(22
|
)
|
|
(264
|
)
|
|
25
|
|
||||
Total unrealized gains (losses) on available-for-sale securities
|
(62
|
)
|
|
(22
|
)
|
|
(264
|
)
|
|
27
|
|
||||
Unrealized gains (losses) on cash flow hedging derivatives, net of reclassifications to income
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Change in accumulated unrealized losses for pension and other post-retirement obligations
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Other comprehensive income (loss), net of tax
|
(61
|
)
|
|
(19
|
)
|
|
(261
|
)
|
|
31
|
|
||||
Comprehensive income
|
$
|
317
|
|
|
$
|
256
|
|
|
$
|
798
|
|
|
$
|
785
|
|
(dollar amounts in millions, share amounts in thousands)
|
Preferred Stock
|
|
Common Stock
|
|
Capital Surplus
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Loss
|
|
Retained Earnings (Deficit)
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
||||||||||||||||||||
Nine Months Ended September 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,059
|
|
|
1,059
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(261
|
)
|
|
|
|
(261
|
)
|
||||||||||||||
Net proceeds from issuance of Preferred Series E Stock
|
495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
495
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(46,677
|
)
|
|
—
|
|
|
(739
|
)
|
|
|
|
|
|
|
|
|
|
(739
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.36 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(393
|
)
|
|
(393
|
)
|
||||||||||||||
Preferred Series B ($36.51 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||||||||
Preferred Series C ($44.07 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||||||||||
Preferred Series D ($46.88 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(28
|
)
|
|
(28
|
)
|
||||||||||||||
Preferred Series E ($3,467.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17
|
)
|
|
(17
|
)
|
||||||||||||||
Conversion of Preferred Series A Stock to Common Stock
|
(363
|
)
|
|
30,330
|
|
|
|
|
363
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
59
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
6,303
|
|
|
—
|
|
|
(32
|
)
|
|
|
|
|
|
|
|
(8
|
)
|
|
(40
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
—
|
|
|
(454
|
)
|
|
(9
|
)
|
|
|
|
|
|
(9
|
)
|
||||||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,065,251
|
|
|
$
|
11
|
|
|
$
|
9,358
|
|
|
(3,722
|
)
|
|
$
|
(44
|
)
|
|
$
|
(790
|
)
|
|
$
|
1,196
|
|
|
$
|
10,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,071
|
|
|
1,088,641
|
|
|
$
|
11
|
|
|
$
|
9,881
|
|
|
(2,953
|
)
|
|
$
|
(27
|
)
|
|
$
|
(401
|
)
|
|
$
|
(227
|
)
|
|
$
|
10,308
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
754
|
|
|
754
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
31
|
|
|
|
|
31
|
|
||||||||||||||
Repurchase of common stock
|
|
|
(9,645
|
)
|
|
—
|
|
|
(123
|
)
|
|
|
|
|
|
|
|
|
|
(123
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.24 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(261
|
)
|
|
(261
|
)
|
||||||||||||||
Preferred Series A ($63.75 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23
|
)
|
|
(23
|
)
|
||||||||||||||
Preferred Series B ($28.96 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($44.07 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||||||||||
Preferred Series D ($46.88 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(28
|
)
|
|
(28
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
73
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
5,361
|
|
|
—
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
(8
|
)
|
|
(20
|
)
|
|||||||||||
Other
|
|
|
10
|
|
|
—
|
|
|
2
|
|
|
(468
|
)
|
|
(8
|
)
|
|
|
|
—
|
|
|
(6
|
)
|
|||||||||
Balance, end of period
|
$
|
1,071
|
|
|
1,084,367
|
|
|
$
|
11
|
|
|
$
|
9,821
|
|
|
(3,421
|
)
|
|
$
|
(35
|
)
|
|
$
|
(370
|
)
|
|
$
|
201
|
|
|
$
|
10,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Operating activities
|
|
||||||
Net income
|
$
|
1,059
|
|
|
$
|
754
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
||||||
Provision for credit losses
|
175
|
|
|
136
|
|
||
Depreciation and amortization
|
350
|
|
|
307
|
|
||
Share-based compensation expense
|
59
|
|
|
73
|
|
||
Deferred income tax expense
|
125
|
|
|
36
|
|
||
Net losses (gains) on sales of securities
|
2
|
|
|
(4
|
)
|
||
Impairment losses recognized in earnings on available-for-sale securities
|
—
|
|
|
4
|
|
||
Net change in:
|
|
|
|
||||
Trading account securities
|
3
|
|
|
45
|
|
||
Loans held for sale
|
(384
|
)
|
|
(164
|
)
|
||
Accrued income and other assets
|
(325
|
)
|
|
(137
|
)
|
||
Accrued expense and other liabilities
|
215
|
|
|
42
|
|
||
Other, net
|
(135
|
)
|
|
14
|
|
||
Net cash provided by (used in) operating activities
|
1,144
|
|
|
1,106
|
|
||
Investing activities
|
|
||||||
Change in interest bearing deposits in banks
|
62
|
|
|
21
|
|
||
Proceeds from:
|
|
|
|
||||
Maturities and calls of available-for-sale securities
|
1,539
|
|
|
1,081
|
|
||
Maturities of held-to-maturity securities
|
573
|
|
|
793
|
|
||
Sales of available-for-sale securities
|
381
|
|
|
1,247
|
|
||
Maturities, calls, and sales of other securities
|
40
|
|
|
8
|
|
||
Purchases of available-for-sale securities
|
(1,044
|
)
|
|
(3,169
|
)
|
||
Purchases of held-to-maturity securities
|
(71
|
)
|
|
(690
|
)
|
||
Purchases of other securities
|
(5
|
)
|
|
(40
|
)
|
||
Net proceeds from sales of portfolio loans
|
461
|
|
|
427
|
|
||
Net loan and lease activity, excluding sales and purchases
|
(3,583
|
)
|
|
(2,159
|
)
|
||
Purchases of premises and equipment
|
(62
|
)
|
|
(145
|
)
|
||
Purchases of loans and leases
|
(318
|
)
|
|
(113
|
)
|
||
Other, net
|
50
|
|
|
37
|
|
||
Net cash provided by (used in) investing activities
|
(1,977
|
)
|
|
(2,702
|
)
|
||
Financing activities
|
|
|
|
||||
Increase in deposits
|
4,648
|
|
|
2,837
|
|
||
Decrease in short-term borrowings
|
(3,613
|
)
|
|
(1,865
|
)
|
||
Net proceeds from issuance of long-term debt
|
2,121
|
|
|
1,773
|
|
||
Maturity/redemption of long-term debt
|
(1,915
|
)
|
|
(883
|
)
|
||
Dividends paid on preferred stock
|
(51
|
)
|
|
(57
|
)
|
||
Dividends paid on common stock
|
(362
|
)
|
|
(262
|
)
|
||
Repurchases of common stock
|
(739
|
)
|
|
(123
|
)
|
||
Net proceeds from issuance of preferred stock
|
495
|
|
|
—
|
|
||
Net proceeds from issuance of secured financing
|
50
|
|
|
—
|
|
||
Payments related to tax-withholding for share based compensation awards
|
(27
|
)
|
|
(24
|
)
|
||
Other, net
|
5
|
|
|
9
|
|
||
Net cash provided by (used for) financing activities
|
612
|
|
|
1,405
|
|
||
Increase (decrease) in cash a cash equivalents
|
(221
|
)
|
|
(191
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,520
|
|
|
1,385
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,299
|
|
|
$
|
1,194
|
|
|
Nine Months Ended
September 30, |
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Supplemental disclosures:
|
|
||||||
Interest paid
|
$
|
527
|
|
|
$
|
307
|
|
Income taxes (refunded) paid
|
(112
|
)
|
|
71
|
|
||
Non-cash activities
|
|
||||||
Loans transferred to held-for-sale from portfolio
|
470
|
|
|
446
|
|
||
Loans transferred to portfolio from held-for-sale
|
49
|
|
|
5
|
|
||
Transfer of loans to OREO
|
15
|
|
|
24
|
|
||
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
|
Accounting standards yet to be adopted
|
(dollar amounts in millions)
|
September 30, 2018
|
|
December 31, 2017
|
||||
Loans and leases:
|
|
|
|
||||
Commercial and industrial
|
$
|
29,196
|
|
|
$
|
28,107
|
|
Commercial real estate
|
7,073
|
|
|
7,225
|
|
||
Automobile
|
12,375
|
|
|
12,100
|
|
||
Home equity
|
9,850
|
|
|
10,099
|
|
||
Residential mortgage
|
10,459
|
|
|
9,026
|
|
||
RV and marine finance
|
3,152
|
|
|
2,438
|
|
||
Other consumer
|
1,265
|
|
|
1,122
|
|
||
Loans and leases
|
$
|
73,370
|
|
|
$
|
70,117
|
|
Allowance for loan and lease losses
|
(761
|
)
|
|
(691
|
)
|
||
Net loans and leases
|
$
|
72,609
|
|
|
$
|
69,426
|
|
(dollar amounts in millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
Commercial and industrial
|
$
|
211
|
|
|
$
|
161
|
|
Commercial real estate
|
19
|
|
|
29
|
|
||
Automobile
|
5
|
|
|
6
|
|
||
Home equity
|
67
|
|
|
68
|
|
||
Residential mortgage
|
67
|
|
|
84
|
|
||
RV and marine finance
|
1
|
|
|
1
|
|
||
Other consumer
|
—
|
|
|
—
|
|
||
Total nonaccrual loans
|
$
|
370
|
|
|
$
|
349
|
|
|
September 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
|
$
|
48
|
|
|
$
|
17
|
|
|
$
|
58
|
|
|
$
|
123
|
|
|
$
|
29,073
|
|
|
$
|
—
|
|
|
$
|
29,196
|
|
|
$
|
9
|
|
(2)
|
Commercial real estate
|
6
|
|
|
1
|
|
|
7
|
|
|
14
|
|
|
7,059
|
|
|
—
|
|
|
7,073
|
|
|
—
|
|
|
||||||||
Automobile
|
77
|
|
|
16
|
|
|
8
|
|
|
101
|
|
|
12,274
|
|
|
—
|
|
|
12,375
|
|
|
7
|
|
|
||||||||
Home equity
|
46
|
|
|
17
|
|
|
60
|
|
|
123
|
|
|
9,725
|
|
|
2
|
|
|
9,850
|
|
|
15
|
|
|
||||||||
Residential mortgage
|
116
|
|
|
42
|
|
|
151
|
|
|
309
|
|
|
10,071
|
|
|
79
|
|
|
10,459
|
|
|
117
|
|
(3)
|
||||||||
RV and marine finance
|
9
|
|
|
2
|
|
|
2
|
|
|
13
|
|
|
3,139
|
|
|
—
|
|
|
3,152
|
|
|
1
|
|
|
||||||||
Other consumer
|
13
|
|
|
6
|
|
|
5
|
|
|
24
|
|
|
1,241
|
|
|
—
|
|
|
1,265
|
|
|
5
|
|
|
||||||||
Total loans and leases
|
$
|
315
|
|
|
$
|
101
|
|
|
$
|
291
|
|
|
$
|
707
|
|
|
$
|
72,582
|
|
|
$
|
81
|
|
|
$
|
73,370
|
|
|
$
|
154
|
|
|
|
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 September 30, 2018:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
531
|
|
|
$
|
210
|
|
|
$
|
741
|
|
Loan charge-offs
|
|
(11
|
)
|
|
(47
|
)
|
|
(58
|
)
|
|||
Recoveries of loans previously charged-off
|
|
15
|
|
|
14
|
|
|
29
|
|
|||
Provision for loan and lease losses
|
|
8
|
|
|
41
|
|
|
49
|
|
|||
ALLL balance, end of period
|
|
$
|
543
|
|
|
$
|
218
|
|
|
$
|
761
|
|
AULC balance, beginning of period
|
|
$
|
90
|
|
|
$
|
3
|
|
|
$
|
93
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
|||
AULC balance, end of period
|
|
$
|
95
|
|
|
$
|
2
|
|
|
$
|
97
|
|
ACL balance, end of period
|
|
$
|
638
|
|
|
$
|
220
|
|
|
$
|
858
|
|
Nine-month period ended September 30, 2018:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
Loan charge-offs
|
|
(46
|
)
|
|
(138
|
)
|
|
(184
|
)
|
|||
Recoveries of loans previously charged-off
|
|
45
|
|
|
44
|
|
|
89
|
|
|||
Provision for loan and lease losses
|
|
62
|
|
|
103
|
|
|
165
|
|
|||
ALLL balance, end of period
|
|
$
|
543
|
|
|
$
|
218
|
|
|
$
|
761
|
|
AULC balance, beginning of period
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
87
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
11
|
|
|
(1
|
)
|
|
10
|
|
|||
AULC balance, end of period
|
|
$
|
95
|
|
|
$
|
2
|
|
|
$
|
97
|
|
ACL balance, end of period
|
|
$
|
638
|
|
|
$
|
220
|
|
|
$
|
858
|
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended September 30, 2017:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
475
|
|
|
$
|
193
|
|
|
$
|
668
|
|
Loan charge-offs
|
|
(19
|
)
|
|
(46
|
)
|
|
(65
|
)
|
|||
Recoveries of loans previously charged-off
|
|
10
|
|
|
12
|
|
|
22
|
|
|||
Provision for loan and lease losses
|
|
8
|
|
|
42
|
|
|
50
|
|
|||
ALLL balance, end of period
|
|
$
|
474
|
|
|
$
|
201
|
|
|
$
|
675
|
|
AULC balance, beginning of period
|
|
$
|
82
|
|
|
$
|
3
|
|
|
$
|
85
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|||
AULC balance, end of period
|
|
$
|
76
|
|
|
$
|
3
|
|
|
$
|
79
|
|
ACL balance, end of period
|
|
$
|
550
|
|
|
$
|
204
|
|
|
$
|
754
|
|
Nine-month period ended September 30, 2017:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
Loan charge-offs
|
|
(58
|
)
|
|
(134
|
)
|
|
(192
|
)
|
|||
Recoveries of loans previously charged-off
|
|
34
|
|
|
40
|
|
|
74
|
|
|||
Provision for loan and lease losses
|
|
47
|
|
|
108
|
|
|
155
|
|
|||
ALLL balance, end of period
|
|
$
|
474
|
|
|
$
|
201
|
|
|
$
|
675
|
|
AULC balance, beginning of period
|
|
$
|
87
|
|
|
$
|
11
|
|
|
$
|
98
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
(11
|
)
|
|
(8
|
)
|
|
(19
|
)
|
|||
AULC balance, end of period
|
|
$
|
76
|
|
|
$
|
3
|
|
|
$
|
79
|
|
ACL balance, end of period
|
|
$
|
550
|
|
|
$
|
204
|
|
|
$
|
754
|
|
•
|
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.
|
|
September 30, 2018
|
||||||||||||||||||
(dollar amounts in millions)
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
Commercial
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
27,407
|
|
|
$
|
678
|
|
|
$
|
1,104
|
|
|
$
|
7
|
|
|
$
|
29,196
|
|
Commercial real estate
|
6,766
|
|
|
189
|
|
|
117
|
|
|
1
|
|
|
7,073
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
Consumer
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
$
|
6,233
|
|
|
$
|
4,503
|
|
|
$
|
1,350
|
|
|
$
|
289
|
|
|
$
|
12,375
|
|
Home equity
|
6,173
|
|
|
2,963
|
|
|
650
|
|
|
62
|
|
|
9,848
|
|
|||||
Residential mortgage
|
6,841
|
|
|
2,783
|
|
|
622
|
|
|
134
|
|
|
10,380
|
|
|||||
RV and marine finance
|
2,007
|
|
|
966
|
|
|
101
|
|
|
78
|
|
|
3,152
|
|
|||||
Other consumer
|
471
|
|
|
612
|
|
|
124
|
|
|
58
|
|
|
1,265
|
|
|
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 September 30, 2018
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
Attributable to loans individually evaluated for impairment
|
|
$
|
46
|
|
|
$
|
10
|
|
|
$
|
56
|
|
Attributable to loans collectively evaluated for impairment
|
|
497
|
|
|
208
|
|
|
705
|
|
|||
Total ALLL balance
|
|
$
|
543
|
|
|
$
|
218
|
|
|
$
|
761
|
|
Loan and Lease Ending Balances at September 30, 2018 (1)
|
|
|
|
|
|
|
||||||
Portion of loan and lease ending balance:
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
623
|
|
|
$
|
598
|
|
|
$
|
1,221
|
|
Collectively evaluated for impairment
|
|
35,646
|
|
|
36,422
|
|
|
72,068
|
|
|||
Total loans and leases evaluated for impairment
|
|
$
|
36,269
|
|
|
$
|
37,020
|
|
|
$
|
73,289
|
|
(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.
|
|
September 30, 2018
|
|
Three Months Ended
September 30, 2018 |
|
Nine Months Ended
September 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
|
$
|
252
|
|
|
$
|
289
|
|
|
$
|
—
|
|
|
$
|
264
|
|
|
$
|
5
|
|
|
$
|
264
|
|
|
$
|
16
|
|
Commercial real estate
|
33
|
|
|
44
|
|
|
—
|
|
|
36
|
|
|
2
|
|
|
49
|
|
|
6
|
|
|||||||
Automobile
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
291
|
|
|
318
|
|
|
43
|
|
|
284
|
|
|
3
|
|
|
285
|
|
|
9
|
|
|||||||
Commercial real estate
|
47
|
|
|
52
|
|
|
3
|
|
|
49
|
|
|
1
|
|
|
48
|
|
|
2
|
|
|||||||
Automobile
|
39
|
|
|
43
|
|
|
2
|
|
|
38
|
|
|
1
|
|
|
37
|
|
|
2
|
|
|||||||
Home equity
|
325
|
|
|
370
|
|
|
6
|
|
|
326
|
|
|
3
|
|
|
330
|
|
|
11
|
|
|||||||
Residential mortgage
|
286
|
|
|
322
|
|
|
4
|
|
|
290
|
|
|
3
|
|
|
299
|
|
|
8
|
|
|||||||
RV and marine finance
|
3
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||||
Other consumer
|
8
|
|
|
8
|
|
|
3
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial (3)
|
543
|
|
|
607
|
|
|
43
|
|
|
548
|
|
|
8
|
|
|
549
|
|
|
25
|
|
|||||||
Commercial real estate (4)
|
80
|
|
|
96
|
|
|
3
|
|
|
85
|
|
|
3
|
|
|
97
|
|
|
8
|
|
|||||||
Automobile (2)
|
39
|
|
|
43
|
|
|
2
|
|
|
38
|
|
|
1
|
|
|
37
|
|
|
2
|
|
|||||||
Home equity (5)
|
325
|
|
|
370
|
|
|
6
|
|
|
326
|
|
|
3
|
|
|
330
|
|
|
11
|
|
|||||||
Residential mortgage (5)
|
286
|
|
|
322
|
|
|
4
|
|
|
290
|
|
|
3
|
|
|
299
|
|
|
8
|
|
|||||||
RV and marine finance (2)
|
3
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||||
Other consumer (2)
|
8
|
|
|
8
|
|
|
3
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
December 31, 2017
|
|
Three Months Ended
September 30, 2017 |
|
Nine Months Ended
September 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
|
|
|
$
|
—
|
|
|
$
|
295
|
|
|
$
|
5
|
|
|
$
|
228
|
|
|
$
|
7
|
|
Commercial real estate
|
56
|
|
|
81
|
|
|
—
|
|
|
71
|
|
|
2
|
|
|
80
|
|
|
6
|
|
|||||||
Automobile
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
RV and marine finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
257
|
|
|
280
|
|
|
29
|
|
|
223
|
|
|
2
|
|
|
334
|
|
|
13
|
|
|||||||
Commercial real estate
|
51
|
|
|
51
|
|
|
3
|
|
|
41
|
|
|
—
|
|
|
54
|
|
|
1
|
|
|||||||
Automobile
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
—
|
|
|
32
|
|
|
2
|
|
|||||||
Home equity
|
334
|
|
|
385
|
|
|
14
|
|
|
331
|
|
|
4
|
|
|
327
|
|
|
12
|
|
|||||||
Residential mortgage
|
308
|
|
|
338
|
|
|
4
|
|
|
320
|
|
|
3
|
|
|
329
|
|
|
9
|
|
|||||||
RV and marine finance
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||||
Other consumer
|
8
|
|
|
8
|
|
|
2
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial (3)
|
541
|
|
|
591
|
|
|
29
|
|
|
518
|
|
|
7
|
|
|
562
|
|
|
20
|
|
|||||||
Commercial real estate (4)
|
107
|
|
|
132
|
|
|
3
|
|
|
112
|
|
|
2
|
|
|
134
|
|
|
7
|
|
|||||||
Automobile (2)
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
—
|
|
|
32
|
|
|
2
|
|
|||||||
Home equity (5)
|
334
|
|
|
385
|
|
|
14
|
|
|
331
|
|
|
4
|
|
|
327
|
|
|
12
|
|
|||||||
Residential mortgage (5)
|
308
|
|
|
338
|
|
|
4
|
|
|
320
|
|
|
3
|
|
|
329
|
|
|
9
|
|
|||||||
RV and marine finance (2)
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||||
Other consumer (2)
|
8
|
|
|
8
|
|
|
2
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
(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
September 30, 2018
and
December 31, 2017
, C&I loans of
$408 million
and
$382 million
, respectively, were considered impaired due to their status as a TDR.
|
(4)
|
At
September 30, 2018
and
December 31, 2017
, CRE loans of
$68 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 (1)
|
|||||||||||||||||||||||||
|
Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||
|
Number of
Contracts |
|
Post-modification Outstanding Recorded Investment (2)
|
|
Financial effects of modification (3)
|
|||||||||||||||||||||
(dollar amounts in millions)
|
|
Interest rate reduction
|
|
Amortization or maturity date change
|
|
Chapter 7 bankruptcy
|
|
Other
|
|
Total
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial
|
131
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
—
|
|
Commercial real estate
|
9
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||
Automobile
|
848
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Home equity
|
159
|
|
|
—
|
|
|
8
|
|
|
3
|
|
|
—
|
|
|
11
|
|
|
(1
|
)
|
||||||
Residential mortgage
|
76
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||||
RV and marine finance
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other consumer
|
386
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
Total new TDRs
|
1,649
|
|
|
$
|
2
|
|
|
$
|
60
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2017
|
|||||||||||||||||||||||||
|
Number of
Contracts |
|
Post-modification Outstanding Recorded Investment (2)
|
|
Financial effects of modification (3)
|
|||||||||||||||||||||
(dollar amounts in millions)
|
|
Interest rate reduction
|
|
Amortization or maturity date change
|
|
Chapter 7 bankruptcy
|
|
Other
|
|
Total
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial
|
277
|
|
|
$
|
1
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
139
|
|
|
$
|
(1
|
)
|
Commercial real estate
|
28
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||||
Automobile
|
797
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Home equity
|
247
|
|
|
—
|
|
|
12
|
|
|
3
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||
Residential mortgage
|
123
|
|
|
—
|
|
|
11
|
|
|
2
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||
RV and marine finance
|
32
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Other consumer
|
699
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
Total new TDRs
|
2,203
|
|
|
$
|
1
|
|
|
$
|
185
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (1)
|
|||||||||||||||||||||||||
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||
|
Number of
Contracts |
|
Post-modification Outstanding Recorded Investment (2)
|
|
Financial effects of modification (3)
|
|||||||||||||||||||||
(dollar amounts in millions)
|
|
Interest rate reduction
|
|
Amortization or maturity date change
|
|
Chapter 7 bankruptcy
|
|
Other
|
|
Total
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial
|
641
|
|
|
$
|
—
|
|
|
$
|
302
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
302
|
|
|
$
|
(7
|
)
|
Commercial real estate
|
95
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
(1
|
)
|
||||||
Automobile
|
2,088
|
|
|
—
|
|
|
11
|
|
|
6
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||||
Home equity
|
472
|
|
|
—
|
|
|
21
|
|
|
8
|
|
|
—
|
|
|
29
|
|
|
(2
|
)
|
||||||
Residential mortgage
|
278
|
|
|
—
|
|
|
29
|
|
|
2
|
|
|
—
|
|
|
31
|
|
|
(1
|
)
|
||||||
RV and marine finance
|
99
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Other consumer
|
1,320
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Total new TDRs
|
4,993
|
|
|
$
|
6
|
|
|
$
|
442
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
465
|
|
|
$
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2017
|
|||||||||||||||||||||||||
|
Number of
Contracts |
|
Post-modification Outstanding Recorded Investment (2)
|
|
Financial effects of modification (3)
|
|||||||||||||||||||||
(dollar amounts in millions)
|
|
Interest rate reduction
|
|
Amortization or maturity date change
|
|
Chapter 7 bankruptcy
|
|
Other
|
|
Total
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial
|
747
|
|
|
$
|
1
|
|
|
$
|
419
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
420
|
|
|
$
|
(9
|
)
|
Commercial real estate
|
71
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
(1
|
)
|
||||||
Automobile
|
2,065
|
|
|
—
|
|
|
11
|
|
|
6
|
|
|
—
|
|
|
17
|
|
|
1
|
|
||||||
Home equity
|
739
|
|
|
1
|
|
|
26
|
|
|
9
|
|
|
4
|
|
|
40
|
|
|
(1
|
)
|
||||||
Residential mortgage
|
375
|
|
|
—
|
|
|
31
|
|
|
6
|
|
|
3
|
|
|
40
|
|
|
(1
|
)
|
||||||
RV and marine finance
|
105
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
Other consumer
|
707
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Total new TDRs
|
4,809
|
|
|
$
|
2
|
|
|
$
|
566
|
|
|
$
|
22
|
|
|
$
|
7
|
|
|
$
|
597
|
|
|
$
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 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
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
5
|
|
Total U.S. Treasury
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
After 5 years through 10 years
|
41
|
|
|
40
|
|
|
90
|
|
|
89
|
|
||||
After 10 years
|
7,266
|
|
|
6,900
|
|
|
6,570
|
|
|
6,394
|
|
||||
Total Residential CMO
|
7,307
|
|
|
6,940
|
|
|
6,661
|
|
|
6,484
|
|
||||
Residential MBS:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
3
|
|
|
3
|
|
|
6
|
|
|
6
|
|
||||
After 5 years through 10 years
|
30
|
|
|
29
|
|
|
7
|
|
|
8
|
|
||||
After 10 years
|
613
|
|
|
588
|
|
|
1,358
|
|
|
1,353
|
|
||||
Total Residential MBS
|
646
|
|
|
620
|
|
|
1,371
|
|
|
1,367
|
|
||||
Commercial MBS:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
68
|
|
|
65
|
|
|
23
|
|
|
22
|
|
||||
After 5 years through 10 years
|
8
|
|
|
8
|
|
|
151
|
|
|
148
|
|
||||
After 10 years
|
1,707
|
|
|
1,630
|
|
|
2,365
|
|
|
2,317
|
|
||||
Total Commercial MBS
|
1,783
|
|
|
1,703
|
|
|
2,539
|
|
|
2,487
|
|
||||
Other agencies:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
After 1 year through 5 years
|
10
|
|
|
10
|
|
|
9
|
|
|
9
|
|
||||
After 5 years through 10 years
|
151
|
|
|
146
|
|
|
58
|
|
|
59
|
|
||||
Total other agencies
|
162
|
|
|
157
|
|
|
69
|
|
|
70
|
|
||||
Total U.S. Treasury, Federal agency, and other agency securities
|
9,903
|
|
|
9,425
|
|
|
10,645
|
|
|
10,413
|
|
||||
Municipal securities:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
211
|
|
|
208
|
|
|
103
|
|
|
103
|
|
||||
After 1 year through 5 years
|
1,156
|
|
|
1,143
|
|
|
1,140
|
|
|
1,134
|
|
||||
After 5 years through 10 years
|
1,714
|
|
|
1,686
|
|
|
1,709
|
|
|
1,704
|
|
||||
After 10 years
|
833
|
|
|
811
|
|
|
940
|
|
|
937
|
|
||||
Total municipal securities
|
3,914
|
|
|
3,848
|
|
|
3,892
|
|
|
3,878
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
40
|
|
|
39
|
|
|
80
|
|
|
80
|
|
||||
After 5 years through 10 years
|
41
|
|
|
41
|
|
|
53
|
|
|
54
|
|
||||
After 10 years
|
291
|
|
|
283
|
|
|
349
|
|
|
333
|
|
||||
Total asset-backed securities
|
372
|
|
|
363
|
|
|
482
|
|
|
467
|
|
||||
Corporate debt:
|
|
|
|
|
|
|
|
||||||||
1 year or less
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
After 1 year through 5 years
|
74
|
|
|
74
|
|
|
73
|
|
|
74
|
|
||||
After 5 years through 10 years
|
11
|
|
|
12
|
|
|
20
|
|
|
21
|
|
||||
After 10 years
|
—
|
|
|
—
|
|
|
13
|
|
|
14
|
|
||||
Total corporate debt
|
86
|
|
|
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
|
$
|
14,279
|
|
|
$
|
13,727
|
|
|
$
|
15,127
|
|
|
$
|
14,869
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
7,307
|
|
|
—
|
|
|
(367
|
)
|
|
6,940
|
|
||||
Residential MBS
|
646
|
|
|
—
|
|
|
(26
|
)
|
|
620
|
|
||||
Commercial MBS
|
1,783
|
|
|
—
|
|
|
(80
|
)
|
|
1,703
|
|
||||
Other agencies
|
162
|
|
|
—
|
|
|
(5
|
)
|
|
157
|
|
||||
Total U.S. Treasury, Federal agency and other agency securities
|
9,903
|
|
|
—
|
|
|
(478
|
)
|
|
9,425
|
|
||||
Municipal securities
|
3,914
|
|
|
11
|
|
|
(77
|
)
|
|
3,848
|
|
||||
Asset-backed securities
|
372
|
|
|
—
|
|
|
(9
|
)
|
|
363
|
|
||||
Corporate debt
|
86
|
|
|
1
|
|
|
—
|
|
|
87
|
|
||||
Other securities/Sovereign debt
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total available-for-sale securities
|
$
|
14,279
|
|
|
$
|
12
|
|
|
$
|
(564
|
)
|
|
$
|
13,727
|
|
|
|
|
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
|
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
2,286
|
|
|
$
|
(77
|
)
|
|
$
|
4,632
|
|
|
$
|
(290
|
)
|
|
$
|
6,918
|
|
|
$
|
(367
|
)
|
Residential MBS
|
542
|
|
|
(23
|
)
|
|
70
|
|
|
(3
|
)
|
|
612
|
|
|
(26
|
)
|
||||||
Commercial MBS
|
109
|
|
|
(4
|
)
|
|
1,594
|
|
|
(76
|
)
|
|
1,703
|
|
|
(80
|
)
|
||||||
Other agencies
|
80
|
|
|
(2
|
)
|
|
72
|
|
|
(3
|
)
|
|
152
|
|
|
(5
|
)
|
||||||
Total Federal Agency and other agency securities
|
3,017
|
|
|
(106
|
)
|
|
6,368
|
|
|
(372
|
)
|
|
9,385
|
|
|
(478
|
)
|
||||||
Municipal securities
|
1,846
|
|
|
(39
|
)
|
|
1,278
|
|
|
(38
|
)
|
|
3,124
|
|
|
(77
|
)
|
||||||
Asset-backed securities
|
157
|
|
|
(3
|
)
|
|
146
|
|
|
(6
|
)
|
|
303
|
|
|
(9
|
)
|
||||||
Corporate debt
|
65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||||
Other securities/Sovereign debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
5,085
|
|
|
$
|
(148
|
)
|
|
$
|
7,792
|
|
|
$
|
(416
|
)
|
|
$
|
12,877
|
|
|
$
|
(564
|
)
|
|
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
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gross gains on sales of securities
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
8
|
|
Gross losses on sales of securities
|
(2
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|
(4
|
)
|
||||
Net (loss) gain on sales of securities
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
4
|
|
OTTI recognized in earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Net securities losses
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
September 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
|
36
|
|
|
35
|
|
|
—
|
|
|
—
|
|
||||
After 10 years
|
2,167
|
|
|
2,073
|
|
|
3,714
|
|
|
3,657
|
|
||||
Total Residential CMO
|
2,203
|
|
|
2,108
|
|
|
3,714
|
|
|
3,657
|
|
||||
Residential MBS:
|
|
|
|
|
|
|
|
||||||||
After 5 years through 10 years
|
—
|
|
|
—
|
|
|
28
|
|
|
28
|
|
||||
After 10 years
|
1,624
|
|
|
1,555
|
|
|
1,021
|
|
|
1,016
|
|
||||
Total Residential MBS
|
1,624
|
|
|
1,555
|
|
|
1,049
|
|
|
1,044
|
|
||||
Commercial MBS:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
—
|
|
|
—
|
|
|
38
|
|
|
37
|
|
||||
After 5 years through 10 years
|
130
|
|
|
126
|
|
|
1
|
|
|
1
|
|
||||
After 10 years
|
4,141
|
|
|
3,968
|
|
|
3,752
|
|
|
3,698
|
|
||||
Total Commercial MBS
|
4,271
|
|
|
4,094
|
|
|
3,791
|
|
|
3,736
|
|
||||
Other agencies:
|
|
|
|
|
|
|
|
||||||||
After 1 year through 5 years
|
12
|
|
|
12
|
|
|
7
|
|
|
8
|
|
||||
After 5 years through 10 years
|
204
|
|
|
197
|
|
|
362
|
|
|
360
|
|
||||
After 10 years
|
146
|
|
|
141
|
|
|
163
|
|
|
161
|
|
||||
Total other agencies
|
362
|
|
|
350
|
|
|
532
|
|
|
529
|
|
||||
Total Federal agencies and other agencies
|
8,460
|
|
|
8,107
|
|
|
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
|
$
|
8,465
|
|
|
$
|
8,112
|
|
|
$
|
9,091
|
|
|
$
|
8,971
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
2,203
|
|
|
$
|
—
|
|
|
$
|
(95
|
)
|
|
$
|
2,108
|
|
Residential MBS
|
1,624
|
|
|
—
|
|
|
(69
|
)
|
|
1,555
|
|
||||
Commercial MBS
|
4,271
|
|
|
—
|
|
|
(177
|
)
|
|
4,094
|
|
||||
Other agencies
|
362
|
|
|
—
|
|
|
(12
|
)
|
|
350
|
|
||||
Total Federal agencies and other agencies
|
8,460
|
|
|
—
|
|
|
(353
|
)
|
|
8,107
|
|
||||
Municipal securities
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Total held-to-maturity securities
|
$
|
8,465
|
|
|
$
|
—
|
|
|
$
|
(353
|
)
|
|
$
|
8,112
|
|
|
|
|
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 |
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
557
|
|
|
$
|
(21
|
)
|
|
$
|
1,551
|
|
|
$
|
(74
|
)
|
|
$
|
2,108
|
|
|
$
|
(95
|
)
|
Residential MBS
|
807
|
|
|
(33
|
)
|
|
748
|
|
|
(36
|
)
|
|
1,555
|
|
|
(69
|
)
|
||||||
Commercial MBS
|
410
|
|
|
(15
|
)
|
|
3,683
|
|
|
(162
|
)
|
|
4,093
|
|
|
(177
|
)
|
||||||
Other agencies
|
192
|
|
|
(6
|
)
|
|
138
|
|
|
(6
|
)
|
|
330
|
|
|
(12
|
)
|
||||||
Total Federal agencies and other agencies
|
1,966
|
|
|
(75
|
)
|
|
6,120
|
|
|
(278
|
)
|
|
8,086
|
|
|
(353
|
)
|
||||||
Municipal securities
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
1,966
|
|
|
$
|
(75
|
)
|
|
$
|
6,124
|
|
|
$
|
(278
|
)
|
|
$
|
8,090
|
|
|
$
|
(353
|
)
|
|
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
|
)
|
|
September 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
|
248
|
|
|
248
|
|
|
287
|
|
|
287
|
|
||||
Federal Reserve Bank stock
|
295
|
|
|
295
|
|
|
294
|
|
|
294
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
20
|
|
|
20
|
|
|
18
|
|
|
18
|
|
||||
Marketable equity securities
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
||||
Total other securities
|
$
|
564
|
|
|
$
|
565
|
|
|
$
|
600
|
|
|
$
|
600
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Residential mortgage loans sold with servicing retained
|
$
|
1,047
|
|
|
$
|
1,179
|
|
|
$
|
2,787
|
|
|
$
|
2,824
|
|
Pretax gains resulting from above loan sales (1)
|
24
|
|
|
27
|
|
|
64
|
|
|
66
|
|
(1)
|
Recorded in mortgage banking income.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Carrying value, beginning of period
|
$
|
204
|
|
|
$
|
176
|
|
|
$
|
191
|
|
|
$
|
172
|
|
New servicing assets created
|
12
|
|
|
13
|
|
|
32
|
|
|
31
|
|
||||
Impairment recovery (charge)
|
—
|
|
|
1
|
|
|
7
|
|
|
—
|
|
||||
Amortization
|
(8
|
)
|
|
(7
|
)
|
|
(22
|
)
|
|
(20
|
)
|
||||
Carrying value, end of period
|
$
|
208
|
|
|
$
|
183
|
|
|
$
|
208
|
|
|
$
|
183
|
|
Fair value, end of period
|
$
|
222
|
|
|
$
|
184
|
|
|
$
|
222
|
|
|
$
|
184
|
|
Weighted-average life (years)
|
7.1
|
|
|
7.0
|
|
|
7.1
|
|
|
7.0
|
|
|
September 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)
|
8.10
|
%
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
|
8.30
|
%
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
Spread over forward interest rate swap rates
|
941
|
bps
|
|
(7
|
)
|
|
(14
|
)
|
|
1,049
|
bps
|
|
(7
|
)
|
|
(13
|
)
|
|
Three Months Ended
September 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
|
(82
|
)
|
|
18
|
|
|
(64
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
3
|
|
|
(1
|
)
|
|
2
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(79
|
)
|
|
17
|
|
|
(62
|
)
|
|||
Net change in pension and other post-retirement obligations
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
(77
|
)
|
|
$
|
16
|
|
|
$
|
(61
|
)
|
|
Three Months Ended
September 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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
|
(42
|
)
|
|
15
|
|
|
(27
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
9
|
|
|
(4
|
)
|
|
5
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(33
|
)
|
|
11
|
|
|
(22
|
)
|
|||
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
|
2
|
|
|
—
|
|
|
2
|
|
|||
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
|
|
|
—
|
|
|
2
|
|
|||
Net change in pension and other post-retirement obligations
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
(29
|
)
|
|
$
|
10
|
|
|
$
|
(19
|
)
|
|
Nine Months Ended
September 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
|
(359
|
)
|
|
78
|
|
|
(281
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
21
|
|
|
(4
|
)
|
|
17
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(338
|
)
|
|
74
|
|
|
(264
|
)
|
|||
Net change in pension and other post-retirement obligations
|
4
|
|
|
(1
|
)
|
|
3
|
|
|||
Total other comprehensive income (loss)
|
$
|
(334
|
)
|
|
$
|
73
|
|
|
$
|
(261
|
)
|
|
Nine Months Ended
September 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
|
20
|
|
|
(7
|
)
|
|
13
|
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
19
|
|
|
(7
|
)
|
|
12
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
42
|
|
|
(15
|
)
|
|
27
|
|
|||
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
|
2
|
|
|
—
|
|
|
2
|
|
|||
Less: Reclassification adjustment for net (gains) losses included in net income
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
|
3
|
|
|
(1
|
)
|
|
2
|
|
|||
Net change in pension and other post-retirement obligations
|
3
|
|
|
(1
|
)
|
|
2
|
|
|||
Total other comprehensive income (loss)
|
$
|
48
|
|
|
$
|
(17
|
)
|
|
$
|
31
|
|
(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, 2017
|
$
|
(278
|
)
|
|
$
|
—
|
|
|
$
|
(250
|
)
|
|
$
|
(528
|
)
|
Cumulative-effect adjustments (ASU 2016-01)
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income before reclassifications
|
(281
|
)
|
|
—
|
|
|
—
|
|
|
(281
|
)
|
||||
Amounts reclassified from accumulated OCI to earnings
|
17
|
|
|
—
|
|
|
3
|
|
|
20
|
|
||||
Period change
|
(264
|
)
|
|
—
|
|
|
3
|
|
|
(261
|
)
|
||||
September 30, 2018
|
$
|
(543
|
)
|
|
$
|
—
|
|
|
$
|
(247
|
)
|
|
$
|
(790
|
)
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
$
|
(193
|
)
|
|
$
|
(3
|
)
|
|
$
|
(205
|
)
|
|
$
|
(401
|
)
|
Other comprehensive income before reclassifications
|
15
|
|
|
2
|
|
|
—
|
|
|
17
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
12
|
|
|
—
|
|
|
2
|
|
|
14
|
|
||||
Period change
|
27
|
|
|
2
|
|
|
2
|
|
|
31
|
|
||||
September 30, 2017
|
$
|
(166
|
)
|
|
$
|
(1
|
)
|
|
$
|
(203
|
)
|
|
$
|
(370
|
)
|
(1)
|
AOCI amounts at
September 30, 2018
,
December 31, 2017
and
September 30, 2017
include
$141 million
,
$95 million
and
$97 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)
|
September 30, 2018
|
|
September 30, 2017
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(3
|
)
|
|
$
|
(1
|
)
|
|
Interest income - held-to-maturity securities - taxable
|
Realized gain (loss) on sale of securities
|
—
|
|
|
(8
|
)
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
OTTI recorded
|
—
|
|
|
—
|
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
Total before tax
|
(3
|
)
|
|
(9
|
)
|
|
|
||
Tax (expense) benefit
|
1
|
|
|
4
|
|
|
|
||
Net of tax
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|
|
|||||||
Actuarial gains (losses)
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
Noninterest income / expense (1)
|
Net periodic benefit costs
|
—
|
|
|
(1
|
)
|
|
Noninterest income / expense (1)
|
||
Total before tax
|
(2
|
)
|
|
(2
|
)
|
|
|
||
Tax (expense) benefit
|
1
|
|
|
1
|
|
|
|
||
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
|
||||||
|
Nine Months Ended
|
|
|
||||||
(dollar amounts in millions)
|
September 30, 2018
|
|
September 30, 2017
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(9
|
)
|
|
$
|
(7
|
)
|
|
Interest income - held-to-maturity securities - taxable
|
Realized gain (loss) on sale of securities
|
(12
|
)
|
|
(8
|
)
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
OTTI recorded
|
—
|
|
|
(4
|
)
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
Total before tax
|
(21
|
)
|
|
(19
|
)
|
|
|
||
Tax (expense) benefit
|
4
|
|
|
7
|
|
|
|
||
Net of tax
|
$
|
(17
|
)
|
|
$
|
(12
|
)
|
|
|
Gains (losses) on cash flow hedging relationships:
|
|||||||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Interest income - loans and leases
|
Interest rate contracts
|
—
|
|
|
—
|
|
|
Noninterest income - other income
|
||
Total before tax
|
—
|
|
|
(1
|
)
|
|
|
||
Tax (expense) benefit
|
—
|
|
|
1
|
|
|
|
||
Net of tax
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|||||||||
Actuarial gains (losses)
|
$
|
(6
|
)
|
|
$
|
(4
|
)
|
|
Noninterest income / expense (1)
|
Net periodic benefit costs
|
2
|
|
|
1
|
|
|
Noninterest income / expense (1)
|
||
Total before tax
|
(4
|
)
|
|
(3
|
)
|
|
|
||
Tax (expense) benefit
|
1
|
|
|
1
|
|
|
|
||
Net of tax
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
|
(1)
|
The activity for 2018 and 2017 is recorded in Noninterest Income - other noninterest income and Noninterest Expense - personnel costs, respectively, on the Condensed Consolidated Statements of Income.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
378
|
|
|
$
|
275
|
|
|
$
|
1,059
|
|
|
$
|
754
|
|
Preferred stock dividends
|
(18
|
)
|
|
(19
|
)
|
|
(51
|
)
|
|
(57
|
)
|
||||
Net income available to common shareholders
|
$
|
360
|
|
|
$
|
256
|
|
|
$
|
1,008
|
|
|
$
|
697
|
|
Average common shares issued and outstanding
|
1,084,536
|
|
|
1,086,038
|
|
|
1,090,570
|
|
|
1,087,115
|
|
||||
Basic earnings per common share
|
$
|
0.33
|
|
|
$
|
0.24
|
|
|
$
|
0.92
|
|
|
$
|
0.64
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income available to common shareholders
|
$
|
360
|
|
|
$
|
256
|
|
|
$
|
1,008
|
|
|
$
|
697
|
|
Effect of assumed preferred stock conversion
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income applicable to diluted earnings per share
|
$
|
360
|
|
|
$
|
256
|
|
|
$
|
1,008
|
|
|
$
|
697
|
|
Average common shares issued and outstanding
|
1,084,536
|
|
|
1,086,038
|
|
|
1,090,570
|
|
|
1,087,115
|
|
||||
Dilutive potential common shares:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock units and awards
|
15,655
|
|
|
17,079
|
|
|
17,105
|
|
|
17,515
|
|
||||
Shares held in deferred compensation plans
|
3,549
|
|
|
3,228
|
|
|
3,416
|
|
|
3,096
|
|
||||
Dilutive impact of Preferred Stock
|
—
|
|
|
—
|
|
|
5,887
|
|
|
—
|
|
||||
Other
|
—
|
|
|
146
|
|
|
—
|
|
|
152
|
|
||||
Dilutive potential common shares
|
19,204
|
|
|
20,453
|
|
|
26,408
|
|
|
20,763
|
|
||||
Total diluted average common shares issued and outstanding
|
1,103,740
|
|
|
1,106,491
|
|
|
1,116,978
|
|
|
1,107,878
|
|
||||
Diluted earnings per common share
|
$
|
0.33
|
|
|
$
|
0.23
|
|
|
$
|
0.90
|
|
|
$
|
0.63
|
|
(dollar amounts in millions)
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||
Noninterest income
|
|
|
|
||||
Noninterest income from contracts with customers
|
$
|
223
|
|
|
$
|
654
|
|
Noninterest income within the scope of other GAAP topics
|
119
|
|
|
338
|
|
||
Total noninterest income
|
$
|
342
|
|
|
$
|
992
|
|
•
|
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 has been assessed as not material. 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 September 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
|
$
|
75
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
93
|
|
Cards and payment processing income
|
50
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Trust and investment management services
|
7
|
|
|
1
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
42
|
|
||||||
Insurance income
|
8
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
19
|
|
||||||
Other income
|
10
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
16
|
|
||||||
Net revenue from contracts with customers
|
$
|
150
|
|
|
$
|
23
|
|
|
$
|
2
|
|
|
$
|
47
|
|
|
$
|
1
|
|
|
$
|
223
|
|
Noninterest income within the scope of other GAAP topics
|
42
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
119
|
|
||||||
Total noninterest income
|
$
|
192
|
|
|
$
|
79
|
|
|
$
|
2
|
|
|
$
|
47
|
|
|
$
|
22
|
|
|
$
|
342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended September 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
|
$
|
215
|
|
|
$
|
48
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
270
|
|
Cards and payment processing income
|
146
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154
|
|
||||||
Trust and investment management services
|
19
|
|
|
3
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
128
|
|
||||||
Insurance income
|
26
|
|
|
3
|
|
|
—
|
|
|
31
|
|
|
1
|
|
|
61
|
|
||||||
Other Income
|
30
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
2
|
|
|
41
|
|
||||||
Net revenue from contracts with customers
|
$
|
436
|
|
|
$
|
65
|
|
|
$
|
6
|
|
|
$
|
144
|
|
|
$
|
3
|
|
|
$
|
654
|
|
Noninterest income within the scope of other GAAP topics
|
117
|
|
|
163
|
|
|
2
|
|
|
1
|
|
|
55
|
|
|
338
|
|
||||||
Total noninterest income
|
$
|
553
|
|
|
$
|
228
|
|
|
$
|
8
|
|
|
$
|
145
|
|
|
$
|
58
|
|
|
$
|
992
|
|
|
Pension Benefits (1)
|
|
Post-Retirement Benefits (1)
|
||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
9
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(12
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Amortization of loss
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
1
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
Net periodic (benefit) cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Pension Benefits (1)
|
|
Post-Retirement Benefits (1)
|
||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
23
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(36
|
)
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
||||
Amortization of loss
|
6
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
6
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||||
Net periodic (benefit) cost
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(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, in the Condensed Consolidated Statements of Income.
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
September 30, 2018
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Other securities
|
77
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|||||
|
77
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Residential CMOs
|
—
|
|
|
6,940
|
|
|
—
|
|
|
—
|
|
|
6,940
|
|
|||||
Residential MBS
|
—
|
|
|
620
|
|
|
—
|
|
|
—
|
|
|
620
|
|
|||||
Commercial MBS
|
—
|
|
|
1,703
|
|
|
—
|
|
|
—
|
|
|
1,703
|
|
|||||
Other agencies
|
—
|
|
|
157
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|||||
Municipal securities
|
—
|
|
|
571
|
|
|
3,277
|
|
|
—
|
|
|
3,848
|
|
|||||
Asset-backed securities
|
—
|
|
|
363
|
|
|
—
|
|
|
—
|
|
|
363
|
|
|||||
Corporate debt
|
—
|
|
|
87
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|||||
Other securities/sovereign debt
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
5
|
|
|
10,445
|
|
|
3,277
|
|
|
—
|
|
|
13,727
|
|
|||||
Other securities
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Loans held for sale
|
—
|
|
|
727
|
|
|
—
|
|
|
—
|
|
|
727
|
|
|||||
Loans held for investment
|
—
|
|
|
49
|
|
|
32
|
|
|
—
|
|
|
81
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Derivative assets
|
—
|
|
|
493
|
|
|
5
|
|
|
(318
|
)
|
|
180
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
437
|
|
|
4
|
|
|
(221
|
)
|
|
220
|
|
|
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 September 30, 2018 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Loans held for investment
|
||||||||
Opening balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,178
|
|
|
$
|
34
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
—
|
|
|
9
|
|
|
(1
|
)
|
|
—
|
|
||||
Included in OCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases/originations
|
—
|
|
|
—
|
|
|
260
|
|
|
—
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Settlements
|
—
|
|
|
3
|
|
|
(160
|
)
|
|
—
|
|
||||
Closing balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,277
|
|
|
$
|
32
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Three Months Ended September 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
|
|
|
$
|
2,872
|
|
|
$
|
43
|
|
|
$
|
44
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
5
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
167
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
2,958
|
|
|
$
|
24
|
|
|
$
|
40
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(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
Nine Months Ended September 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 out of Level 3 (1)
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
—
|
|
|
25
|
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
11
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
539
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Settlements
|
—
|
|
|
3
|
|
|
(389
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,277
|
|
|
$
|
—
|
|
|
$
|
32
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 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 out of Level 3 (1)
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(2
|
)
|
|
9
|
|
|
(4
|
)
|
|
(5
|
)
|
|
1
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
13
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
414
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(249
|
)
|
|
(1
|
)
|
|
—
|
|
|||||
Closing balance
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
2,958
|
|
|
$
|
24
|
|
|
$
|
40
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(2
|
)
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
|
|
Level 3 Fair Value Measurements
Three Months Ended September 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
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expense
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Total
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Three Months Ended September 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
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||
Interest and fee income
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 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
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||
Other expense
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 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
|
)
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||||
Interest and fee income
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total
|
$
|
(2
|
)
|
|
$
|
9
|
|
|
$
|
(4
|
)
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
September 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
|
$
|
727
|
|
|
$
|
713
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans held for investment
|
81
|
|
|
88
|
|
|
(7
|
)
|
|
6
|
|
|
7
|
|
|
(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 September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Assets
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Loans held for sale
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
$
|
12
|
|
Loans held for investment
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
|
|
Fair Value Measurements Using
|
|
|
|||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
Gains/(Losses) Nine Months Ended September 30, 2018 |
|||||
Impaired loans
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
1
|
|
Other real estate owned
|
27
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
(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
|
|
September 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
|
1,342
|
|
|
—
|
|
|
—
|
|
|
1,342
|
|
|
1,342
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
83
|
|
|
83
|
|
|
83
|
|
Available-for-sale securities
|
—
|
|
|
—
|
|
|
13,727
|
|
|
13,727
|
|
|
13,727
|
|
Held-to-maturity securities
|
8,465
|
|
|
—
|
|
|
—
|
|
|
8,465
|
|
|
8,112
|
|
Other securities
|
543
|
|
|
—
|
|
|
22
|
|
|
565
|
|
|
565
|
|
Loans held for sale
|
—
|
|
|
65
|
|
|
727
|
|
|
792
|
|
|
795
|
|
Net loans and direct financing leases (1)
|
72,528
|
|
|
—
|
|
|
81
|
|
|
72,609
|
|
|
71,918
|
|
Derivatives
|
—
|
|
|
—
|
|
|
180
|
|
|
180
|
|
|
180
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
81,689
|
|
|
—
|
|
|
—
|
|
|
81,689
|
|
|
81,631
|
|
Short-term borrowings
|
1,348
|
|
|
—
|
|
|
—
|
|
|
1,348
|
|
|
1,348
|
|
Long-term debt
|
9,385
|
|
|
—
|
|
|
—
|
|
|
9,385
|
|
|
9,523
|
|
Derivatives
|
—
|
|
|
—
|
|
|
220
|
|
|
220
|
|
|
220
|
|
(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
|
|
September 30, 2018
|
||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Trading account securities
|
$
|
77
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
83
|
|
Available-for-sale securities
|
5
|
|
|
10,445
|
|
|
3,277
|
|
|
13,727
|
|
||||
Held-to-maturity securities
|
—
|
|
|
8,112
|
|
|
—
|
|
|
8,112
|
|
||||
Other securities
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||
Loans held for sale
|
—
|
|
|
727
|
|
|
68
|
|
|
795
|
|
||||
Net loans and direct financing leases
|
—
|
|
|
49
|
|
|
71,869
|
|
|
71,918
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
—
|
|
|
74,423
|
|
|
7,208
|
|
|
81,631
|
|
||||
Short-term borrowings
|
2
|
|
|
—
|
|
|
1,346
|
|
|
1,348
|
|
||||
Long-term debt
|
—
|
|
|
8,986
|
|
|
537
|
|
|
9,523
|
|
|
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
|
|
|
September 30, 2018
|
December 31, 2017
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Derivatives designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
15
|
|
|
$
|
65
|
|
|
$
|
22
|
|
|
$
|
121
|
|
Derivatives not designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
294
|
|
|
198
|
|
|
187
|
|
|
100
|
|
||||
Foreign exchange contracts
|
28
|
|
|
22
|
|
|
18
|
|
|
18
|
|
||||
Commodities contracts
|
157
|
|
|
152
|
|
|
92
|
|
|
87
|
|
||||
Equity contracts
|
4
|
|
|
4
|
|
|
3
|
|
|
5
|
|
||||
Total Contracts
|
$
|
498
|
|
|
$
|
441
|
|
|
$
|
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 September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||
Interest rate contracts:
|
|
|
|
|
|
|
||||
Customer
|
|
Capital markets fees
|
|
$
|
11
|
|
|
$
|
30
|
|
Mortgage Banking
|
|
Mortgage banking income
|
|
5
|
|
|
(3
|
)
|
||
Foreign exchange contracts
|
|
Capital markets fees
|
|
6
|
|
|
18
|
|
||
Commodities contracts
|
|
Capital markets fees
|
|
1
|
|
|
3
|
|
||
Equity contracts
|
|
Other noninterest expense
|
|
—
|
|
|
3
|
|
||
Total
|
|
|
|
$
|
23
|
|
|
$
|
51
|
|
|
September 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
|
5,340
|
|
|
—
|
|
|
5,340
|
|
|||
Total notional value at September 30, 2018
|
$
|
5,715
|
|
|
$
|
12
|
|
|
$
|
5,727
|
|
|
|
|
|
|
|
||||||
|
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
|
|
|
September 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
|
|
|
1.5
|
|
|
$
|
—
|
|
|
2.20
|
%
|
|
2.16
|
%
|
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive fixed—generic
|
5,715
|
|
|
2.5
|
|
|
(50
|
)
|
|
2.08
|
|
|
2.26
|
|
||
Total swap portfolio at September 30, 2018
|
$
|
5,727
|
|
|
2.5
|
|
|
$
|
(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
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||||
Change in fair value of interest rate swaps hedging subordinated notes (1)
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
22
|
|
|
$
|
(5
|
)
|
Change in fair value of hedged subordinated notes (1)
|
2
|
|
|
4
|
|
|
(22
|
)
|
|
7
|
|
||||
Change in fair value of interest rate swaps hedging other long-term debt (1)
|
(9
|
)
|
|
(6
|
)
|
|
33
|
|
|
(1
|
)
|
||||
Change in fair value of hedged other long-term debt (1)
|
10
|
|
|
7
|
|
|
(27
|
)
|
|
(1
|
)
|
(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)
|
September 30, 2018
|
|
September 30, 2018
|
||||
Long-term debt
|
$
|
5,637
|
|
|
$
|
(67
|
)
|
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
|
||||||||||||||
September 30, 2018
|
Derivatives
|
$
|
441
|
|
|
$
|
(221
|
)
|
|
$
|
220
|
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
205
|
|
December 31, 2017
|
Derivatives
|
331
|
|
|
(245
|
)
|
|
86
|
|
|
—
|
|
|
(21
|
)
|
|
65
|
|
|
September 30, 2018
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
2016-1 Automobile Trust
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
3
|
|
2015-1 Automobile Trust
|
—
|
|
|
—
|
|
|
—
|
|
|||
Trust Preferred Securities
|
14
|
|
|
252
|
|
|
—
|
|
|||
Affordable Housing Tax Credit Partnerships
|
683
|
|
|
345
|
|
|
683
|
|
|||
Other Investments
|
125
|
|
|
54
|
|
|
125
|
|
|||
Total
|
$
|
825
|
|
|
$
|
652
|
|
|
$
|
811
|
|
|
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)
|
Rate
|
|
Principal amount of
subordinated note/
debenture issued to trust (1)
|
|
Investment in
unconsolidated
subsidiary
|
|||||
Huntington Capital I
|
3.10
|
%
|
(2)
|
$
|
70
|
|
|
$
|
6
|
|
Huntington Capital II
|
3.02
|
|
(3)
|
32
|
|
|
3
|
|
||
Sky Financial Capital Trust III
|
3.80
|
|
(4)
|
72
|
|
|
2
|
|
||
Sky Financial Capital Trust IV
|
3.80
|
|
(4)
|
74
|
|
|
2
|
|
||
Camco Financial Trust
|
3.73
|
|
(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
September 30, 2018
, based on three-month LIBOR +
0.70%
.
|
(3)
|
Variable effective rate at
September 30, 2018
, based on three-month LIBOR +
0.625%
.
|
(4)
|
Variable effective rate at
September 30, 2018
, based on three-month LIBOR +
1.40%
.
|
(5)
|
Variable effective rate at
September 30, 2018
, based on
three-month LIBOR
+
1.33%
.
|
(dollar amounts in millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
Affordable housing tax credit investments
|
$
|
1,102
|
|
|
$
|
996
|
|
Less: amortization
|
(419
|
)
|
|
(360
|
)
|
||
Net affordable housing tax credit investments
|
$
|
683
|
|
|
$
|
636
|
|
Unfunded commitments
|
$
|
345
|
|
|
$
|
335
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Tax credits and other tax benefits recognized
|
|
$
|
24
|
|
|
$
|
22
|
|
|
$
|
70
|
|
|
$
|
68
|
|
Proportional amortization method
|
|
|
|
|
|
|
|
|
||||||||
Tax credit amortization expense included in provision for income taxes
|
19
|
|
|
17
|
|
|
59
|
|
|
51
|
|
(dollar amounts in millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
Contract amount representing credit risk
|
|
|
|
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial
|
$
|
16,594
|
|
|
$
|
16,219
|
|
Consumer
|
14,798
|
|
|
13,384
|
|
||
Commercial real estate
|
1,182
|
|
|
1,366
|
|
||
Standby letters of credit
|
623
|
|
|
510
|
|
||
Commercial letters-of-credit
|
33
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
431
|
|
|
$
|
239
|
|
|
$
|
101
|
|
|
$
|
48
|
|
|
$
|
(17
|
)
|
|
$
|
802
|
|
Provision (benefit) for credit losses
|
42
|
|
|
(1
|
)
|
|
12
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Noninterest income
|
192
|
|
|
79
|
|
|
2
|
|
|
47
|
|
|
22
|
|
|
342
|
|
||||||
Noninterest expense
|
425
|
|
|
124
|
|
|
37
|
|
|
61
|
|
|
4
|
|
|
651
|
|
||||||
Provision (benefit) for income taxes
|
33
|
|
|
41
|
|
|
11
|
|
|
7
|
|
|
(30
|
)
|
|
62
|
|
||||||
Net income (loss)
|
$
|
123
|
|
|
$
|
154
|
|
|
$
|
43
|
|
|
$
|
27
|
|
|
$
|
31
|
|
|
$
|
378
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
391
|
|
|
$
|
224
|
|
|
$
|
108
|
|
|
$
|
43
|
|
|
$
|
(8
|
)
|
|
$
|
758
|
|
Provision (benefit) for credit losses
|
24
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
(1
|
)
|
|
43
|
|
||||||
Noninterest income
|
189
|
|
|
67
|
|
|
3
|
|
|
46
|
|
|
25
|
|
|
330
|
|
||||||
Noninterest expense
|
416
|
|
|
117
|
|
|
39
|
|
|
58
|
|
|
50
|
|
|
680
|
|
||||||
Provision (benefit) for income taxes
|
49
|
|
|
61
|
|
|
18
|
|
|
11
|
|
|
(49
|
)
|
|
90
|
|
||||||
Net income (loss)
|
$
|
91
|
|
|
$
|
113
|
|
|
$
|
34
|
|
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
275
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,239
|
|
|
$
|
688
|
|
|
$
|
300
|
|
|
$
|
139
|
|
|
$
|
(10
|
)
|
|
$
|
2,356
|
|
Provision (benefit) for credit losses
|
101
|
|
|
38
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
175
|
|
||||||
Noninterest income
|
553
|
|
|
228
|
|
|
8
|
|
|
145
|
|
|
58
|
|
|
992
|
|
||||||
Noninterest expense
|
1,266
|
|
|
373
|
|
|
110
|
|
|
184
|
|
|
3
|
|
|
1,936
|
|
||||||
Provision (benefit) for income taxes
|
89
|
|
|
106
|
|
|
34
|
|
|
21
|
|
|
(72
|
)
|
|
178
|
|
||||||
Net income (loss)
|
$
|
336
|
|
|
$
|
399
|
|
|
$
|
128
|
|
|
$
|
79
|
|
|
$
|
117
|
|
|
$
|
1,059
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,151
|
|
|
$
|
675
|
|
|
$
|
318
|
|
|
$
|
126
|
|
|
$
|
(37
|
)
|
|
$
|
2,233
|
|
Provision (benefit) for credit losses
|
75
|
|
|
15
|
|
|
45
|
|
|
1
|
|
|
—
|
|
|
136
|
|
||||||
Noninterest income
|
544
|
|
|
201
|
|
|
11
|
|
|
141
|
|
|
70
|
|
|
967
|
|
||||||
Noninterest expense
|
1,242
|
|
|
353
|
|
|
113
|
|
|
182
|
|
|
192
|
|
|
2,082
|
|
||||||
Provision (benefit) for income taxes
|
132
|
|
|
178
|
|
|
60
|
|
|
29
|
|
|
(171
|
)
|
|
228
|
|
||||||
Net income (loss)
|
$
|
246
|
|
|
$
|
330
|
|
|
$
|
111
|
|
|
$
|
55
|
|
|
$
|
12
|
|
|
$
|
754
|
|
|
Assets at
|
|
Deposits at
|
||||||||||||
(dollar amounts in millions)
|
September 30,
2018 |
|
December 31,
2017 |
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
Consumer & Business Banking
|
$
|
27,362
|
|
|
$
|
26,220
|
|
|
$
|
49,434
|
|
|
$
|
45,643
|
|
Commercial Banking
|
33,759
|
|
|
32,118
|
|
|
22,288
|
|
|
21,235
|
|
||||
Vehicle Finance
|
18,895
|
|
|
17,865
|
|
|
348
|
|
|
358
|
|
||||
RBHPCG
|
6,374
|
|
|
5,821
|
|
|
5,783
|
|
|
6,057
|
|
||||
Treasury / Other
|
19,262
|
|
|
22,161
|
|
|
3,836
|
|
|
3,748
|
|
||||
Total
|
$
|
105,652
|
|
|
$
|
104,185
|
|
|
$
|
81,689
|
|
|
$
|
77,041
|
|
Period
|
Total Number of Shares Purchased (1)
|
|
Average
Price Paid Per Share |
|
Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs (2)
|
|||||
July 1, 2018 to July 31, 2018
|
21,951,696
|
|
|
$
|
18.96
|
|
|
$
|
651,693,191
|
|
August 1, 2018 to August 31, 2018
|
7,486,872
|
|
|
15.90
|
|
|
532,552,522
|
|
||
September 1, 2018 to September 30, 2018
|
14,232,070
|
|
|
10.92
|
|
|
377,010,017
|
|
||
Total
|
43,670,638
|
|
|
$
|
15.82
|
|
|
$
|
377,010,017
|
|
(1)
|
The reported shares were repurchased pursuant to Huntington’s publicly-announced share repurchase and accelerated share repurchase authorizations.
|
(2)
|
The number shown represents, as of the end of each period, the maximum number of shares (or approximate dollar value) of Common Stock that may yet be purchased under publicly-announced stock repurchase authorizations. The shares may be purchased, from time-to-time, depending on market conditions.
|
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
|
|
|
|
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||||
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3.3
|
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|
||||
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|
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3.4
|
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||||
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|
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3.5
|
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||||
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|
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3.6
|
|
|
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|
||||
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|
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3.7
|
|
|
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|
||||
|
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|
|
|
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|
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3.8
|
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||||
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3.9
|
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||||
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|
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3.10
|
|
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|
||||
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3.11
|
|
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|
||||
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3.12
|
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||||
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|
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3.13
|
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||||
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3.14
|
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|
||||
|
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|
|
|
|
|
|
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.
|
|
|
|
|
|
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|
|
|
|
|
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|
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|
|
|
|
10.1
|
|
|
|
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|
|
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|
||
|
|
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|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
||
101
|
|
**The following material from Huntington’s Form 10-Q Report for the quarterly period ended September 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.
|
|
|
|
|
|
|
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
|
|
|
|
Date:
|
October 30, 2018
|
|
/s/ Stephen D. Steinour
|
|
|
|
Stephen D. Steinour
|
|
|
|
Chairman, President, and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
Date:
|
October 30, 2018
|
|
/s/ Howell D. McCullough III
|
|
|
|
Howell D. McCullough III
|
|
|
|
Chief Financial Officer
(Principal Financial Officer)
|
ARTICLE 1
|
Definitions
................................................................................................................1
|
ARTICLE 2
|
Selection, Enrollment, Eligibility
..............................................................................7
|
2.1
|
Selection as a Participant
..........................................................................................7
|
2.2
|
Enrollment and Eligibility Requirements; Commencement of Participation
...........7
|
2.3
|
Amendment of Eligibility Criteria
.............................................................................8
|
ARTICLE 3
|
Deferrals and Contributions to the Plan/Vesting/Crediting/Taxes
.........................8
|
3.1
|
Elections to Defer Compensation - General
.............................................................8
|
3.2
|
Timing of Deferral
and Payment
Elections; Effect of Election Form
........................9
|
3.3
|
Withholding and Crediting of Annual Deferral Amounts
.......................................10
|
3.4
|
Company Contribution Amounts
............................................................................11
|
3.5
|
Vesting
.....................................................................................................................11
|
3.6
|
Crediting/Debiting of Account Balances
................................................................12
|
3.7
|
Corporate Transactions
...........................................................................................14
|
3.8
|
FICA and Other Taxes
..............................................................................................14
|
3.9
|
Mandatory Deferrals
...............................................................................................14
|
ARTICLE 4
|
Distributions of Benefits
.........................................................................................15
|
4.1
|
Distributions/Events Generally
...............................................................................15
|
4.2
|
In-Service Distributions
...........................................................................................15
|
4.3
|
Distributions After Separation from Service
..........................................................16
|
4.4
|
Unforeseeable Emergency
......................................................................................18
|
4.5
|
Automatic Cash-Out
................................................................................................18
|
4.6
|
Withholding for Taxes
............................................................................................18
|
4.7
|
Payment to Guardian
..............................................................................................18
|
4.8
|
Payment of Mandatory Deferrals
...........................................................................18
|
ARTICLE 5
|
Death Benefit
..........................................................................................................19
|
5.1
|
Death Benefit
..........................................................................................................19
|
5.2
|
Payment of Death Benefit
.......................................................................................19
|
ARTICLE 6
|
Beneficiary Designation
.........................................................................................19
|
6.1
|
Beneficiary
...............................................................................................................19
|
6.2
|
Beneficiary Designation; Change; Spousal Consent
...............................................19
|
6.3
|
Acknowledgement
..................................................................................................19
|
6.4
|
No Beneficiary Designation
.....................................................................................19
|
6.5
|
Doubt as to Beneficiary
...........................................................................................19
|
6.6
|
Discharge of Obligations
.........................................................................................20
|
ARTICLE 7
|
Leave of Absence
....................................................................................................20
|
7.1
|
Paid Leave of Absence
.............................................................................................20
|
7.2
|
Unpaid Leave of Absence
........................................................................................20
|
ARTICLE 8
|
Change in Control
...................................................................................................20
|
ARTICLE 9
|
Termination of Plan, Amendment or Modification
...............................................21
|
9.1
|
Termination of Plan
.................................................................................................21
|
9.2
|
Amendment
.............................................................................................................21
|
9.3
|
Effect of Payment
....................................................................................................21
|
ARTICLE 10
|
Administration
........................................................................................................21
|
10.1
|
Administrative Duties
..............................................................................................21
|
10.2
|
Administration Upon Change In Control
.................................................................22
|
10.3
|
Agents
......................................................................................................................22
|
10.4
|
Binding Effect of Decisions
......................................................................................22
|
10.5
|
Indemnity of Company
............................................................................................22
|
10.6
|
Employer Information
.............................................................................................22
|
ARTICLE 11
|
Other Benefits and Agreements
.............................................................................23
|
11.1
|
Coordination with Other Benefits
..........................................................................23
|
ARTICLE 12
|
Claims Procedures
..................................................................................................23
|
12.1
|
Presentation of Claim
..............................................................................................23
|
12.2
|
Notification of Decision
...........................................................................................23
|
12.3
|
Review of a Denied Claim
.......................................................................................24
|
12.4
|
Decision on Review
.................................................................................................24
|
12.5
|
Legal Action
.............................................................................................................24
|
ARTICLE 13
|
Trust
........................................................................................................................25
|
13.1
|
Establishment of the Trust
......................................................................................25
|
13.2
|
Interrelationship of the Plan and the Trust
............................................................25
|
13.3
|
Distributions From the Trust
...................................................................................25
|
ARTICLE 14
|
Miscellaneous
.........................................................................................................25
|
14.1
|
Status of Plan
...........................................................................................................25
|
14.2
|
Unsecured General Creditor
...................................................................................25
|
14.3
|
Employer’s Liability
.................................................................................................25
|
14.4
|
Nonassignability
......................................................................................................25
|
14.5
|
Not a Contract of Employment
...............................................................................26
|
14.6
|
Furnishing Information
...........................................................................................26
|
14.7
|
Terms
.......................................................................................................................26
|
14.8
|
Captions
...................................................................................................................26
|
14.9
|
Governing Law
.........................................................................................................26
|
14.10
|
Notice
......................................................................................................................26
|
14.11
|
Successors
................................................................................................................27
|
14.12
|
Spouse’s Interest
.....................................................................................................27
|
14.13
|
Validity
.....................................................................................................................27
|
14.14
|
Incompetent
............................................................................................................27
|
14.15
|
Domestic Relations Orders
......................................................................................27
|
14.16
|
Distribution in the Event of Income Inclusion Under Code Section 409A
.............27
|
14.17
|
Deduction Limitation on Benefit Payments
............................................................27
|
14.18
|
Permitted Delays for Potential Federal Securities Laws or Other Violations
........28
|
14.19
|
Forfeiture
.................................................................................................................28
|
14.20
|
Compliance with Code Section 409A
......................................................................28
|
1.1
|
“Account Balance” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the sum of the Participant’s Annual Accounts. The Account Balance shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.
|
1.2
|
“Annual Account” shall mean, with respect to a Participant, an entry on the records of the Employer equal to (a) the sum of the Participant’s Annual Deferral Amount, plus (b) any Mandatory Deferrals made during a Plan Year, plus (c) Company Contribution Amounts or any other amounts credited or debited to such amounts pursuant to this Plan, less (d) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Annual Account for such Plan Year. The Annual Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.
|
1.3
|
“Annual Deferral Amount” shall mean that portion of a Participant's Base Salary, Bonus, LTIP Amounts, RSUs, and any other compensation designated by the Company that a Participant defers in accordance with Article 3 for any one Plan Year, without regard to whether such amounts are withheld and credited during such Plan Year.
|
1.4
|
“Annual Installment Method” shall mean the method used to determine the amount of each payment due to a Participant who has elected to receive a benefit over a period of years in accordance with the applicable provisions of the Plan. The amount of each annual payment due to the Participant shall be calculated by multiplying the Participant’s Account Balance as of the Business Day coincident with, or if that is not administratively practicable, immediately preceding, the date an installment payment actually is made, by a fraction, the numerator of which is one and the denominator of which is the remaining number of annual payments due to the Participant. By way of example, if the Participant elects a 10‑year Annual Installment Method for his or her Account Balance, the first payment shall be 1/10 of the vested Account Balance, calculated as described in this definition. The following year, the payment shall be 1/9 of the vested Account Balance, calculated as described in this definition. The amount of the first annual payment shall be calculated as of the Business Day, and the amount of each subsequent annual payment shall be calculated on or around each anniversary of such Business Day. For purposes of this Plan, the right to receive a benefit payment in annual installments shall be treated as the entitlement to a series of separate individual payments rather than as entitlement to a single payment.
|
1.5
|
“Base Salary” shall mean the annual cash compensation relating to services performed during any calendar year, excluding the following items: (i) distributions from nonqualified deferred compensation plans, (ii) bonuses, (iii) commissions, (iv) overtime, (v) fringe benefits, (vi) stock options, (vii) restricted stock units, (viii) relocation expenses, (ix) incentive payments, (x) nonmonetary awards, (xi) director fees and other fees, and (xii) automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Employee’s gross income). Base Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or nonqualified plans of any Employer and shall be calculated to include amounts not otherwise included in the Participant's gross income under Code Sections 125, 402(e)(3), 402(h), 403(b), or 132(f) pursuant to plans established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Employee.
|
1.6
|
“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 6, that are entitled to receive benefits under this Plan upon the death of a Participant.
|
1.7
|
“Beneficiary Designation Form” shall mean the form established from time to time by the Company that a Participant completes, signs and returns to the Company to designate one or more Beneficiaries.
|
1.8
|
“Board” shall mean the board of directors of the Company.
|
1.9
|
“Bonus” shall mean (i) any compensation, in addition to Base Salary, LTIP Amounts and RSUs, earned by a Participant under any Employer's bonus, commission or other cash incentive plans or other arrangements designated by the Committee as further specified on any Election Form and (ii) any signing bonus that is not yet earned, as further specified to the extent compliant with Code Section 409A on any Election Form.
|
1.10
|
“Business Day” shall mean a day, except for a Saturday, Sunday, a legal holiday or a day when the primary stock exchange on which the Company’s common stock is traded is not open.
|
1.11
|
“Change in Control” shall mean with respect to the Company, the occurrence of any of the following:
|
(a)
|
Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (“the Exchange Act”) as in effect as of the date of this Plan) becomes the beneficial owner, directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of directors (“voting securities”); provided, however, that, for purposes of this Plan, the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, or (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company of any of its affiliates;
|
(b)
|
Individuals who, as of the effective date of this restated plan, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that, any individual becoming a director subsequent to the date hereof whose election, or nomination for election, was approved by a vote of at least a majority of the directors comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding for this purpose any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board;
|
(c)
|
The consummation of a merger, statutory share exchange, consolidation or similar corporate transaction involving the Company, other than any such transaction in which the voting securities of the Company immediately prior to the transaction continue to represent (either by remaining outstanding or being converted into securities of the “surviving entity,” which for purposes of this Agreement shall include the corporation or other entity resulting from such transaction and/or the corporation or other entity that, as a result of the transaction, owns the Company or all or substantially all of the Company’s assets, either directly or indirectly) more than 50% of the combined voting power of the Company or surviving entity resulting from such transaction immediately after the transaction with another entity;
|
(d)
|
The consummation of a sale, exchange, lease, mortgage, pledge, transfer, or other disposition (in a single transaction or a series of related transactions) of all or substantially all of the assets of the Company, which shall include, without limitation, the sale of assets or earning power aggregating more than 50% of the assets or earning power of the Company on a consolidated basis, other than any such transaction in which a majority of the voting securities of the surviving entity are, immediately following consummation of such transaction, beneficially owned by the individuals and entities that were the beneficial owners of the Company’s voting securities immediately prior to the transaction;
|
(e)
|
The consummation of a liquidation or dissolution of the Company;
|
(f)
|
The consummation of a reorganization, reverse stock split, or recapitalization of the Company which would result in any of the foregoing; or
|
(g)
|
The consummation of a transaction or series of related transactions having, directly or indirectly, the same effect as any of the foregoing.
|
1.12
|
“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.
|
1.13
|
“Compensation Committee” or “Committee” shall mean the Compensation Committee of the Board of Directors.
|
1.14
|
“Company” shall mean Huntington Bancshares Incorporated, a Maryland corporation, and any successor to all or substantially all of the Company’s assets or business.
|
1.15
|
"Company Contribution Amount" shall mean, for any one Plan Year, the amount determined in accordance with Section 3.4.
|
1.16
|
“Election Form” shall mean the form or forms, which may be in electronic format, established from time to time by the Company that a Participant completes, signs and returns to the Company to make deferral, payment, and other elections under the Plan.
|
1.17
|
“Employee” shall mean a person who is an employee of an Employer.
|
1.18
|
“Employer(s)” shall be defined as follows:
|
(a)
|
Except as otherwise provided in part (b) of this Section, the term “Employer” shall mean the Company and/or any of its subsidiaries or affiliates (now in existence or hereafter formed or acquired) that have been selected by the Company to participate in the Plan.
|
(b)
|
For the purpose of determining whether a Participant has experienced a Separation from Service, the term “Employer” shall mean:
|
(i)
|
The entity for which the Participant performs services and with respect to which the legally binding right to compensation deferred or contributed under this Plan arises; and
|
(ii)
|
All other entities with which the entity described above would be aggregated and treated as a single employer under Code Section 414(b) (controlled group of corporations) and Code Section 414(c) (a group of trades or businesses, whether or not incorporated, under common control), as applicable. In order to identify the group of entities described in the preceding sentence, the Committee shall use an ownership threshold of at least 50% as a substitute for the 80% minimum ownership threshold that appears in, and otherwise must be used when applying, the applicable provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code Section 414(b), and (B) Treas. Reg. §1.414(c)-2 for determining the trades or businesses that are under common control under Code Section 414(c).
|
1.19
|
“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.
|
1.20
|
“Investment Funds” shall mean hypothetical investment alternatives based on mutual funds or other investments, including deemed interest crediting measures, selected by the Company for the purpose of determining the earnings (or losses) on a Participant’s Account Balance.
|
1.21
|
“LTIP Amounts” shall mean any portion of the compensation attributable to a Plan Year that is earned by a Participant under any Employer's long-term incentive plan or any other long-term incentive arrangement designated by the Company, including performance units.
|
1.22
|
"Mandatory Deferral" means any Bonus, LTIP Amount, RSU, or such other compensation that the Company requires a Participant to defer under the terms of an applicable incentive plan arrangement.
|
1.23
|
“Participant” shall mean any Employee (a) who is selected to participate in the Plan, (b) whose executed Election Form is accepted by the Company, and (c) whose eligibility to participate in this Plan has not terminated.
|
1.24
|
“Performance-Based Compensation” shall mean compensation the entitlement to or amount of which is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 consecutive months, as determined by the Company in accordance with Treas. Reg. §1.409A-1(e).
|
1.25
|
“Plan” or “409A Plan” shall mean the Huntington Bancshares Incorporated Executive Deferred Compensation Plan, effective January 1, 2012, which shall be evidenced by this instrument, as it may be amended from time to time, and by any other documents that together with this instrument define a Participant’s rights to amounts credited to his or her Account Balance.
|
1.26
|
“Plan Year” shall
mean (a) a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year, (b) in the case of LTIP Amounts, the period beginning January 1 of a calendar year and ending on the last day of the performance cycle in which such LTIP Amounts are earned, or (c) such other period as designated by the Committee or Company.
|
1.27
|
“Restricted Stock Unit” or “RSU” shall mean any restricted stock unit award including dividend equivalents unless otherwise determined by the Committee granted under the Huntington Bancshares Incorporated Second Amended and Restated 2007 Stock and Long‑Term Incentive Plan, or any new or successor plan.
|
1.28
|
“Retirement,” “Retire(s)” or “Retired” shall mean the retirement from employment with the Company under one or more of the retirement plans of the Company, or as otherwise defined by the Committee.
|
1.29
|
“Separation from Service” shall mean a termination of services provided by a Participant to his or her Employer, whether voluntarily or involuntarily, as determined by the Company in accordance with Treas. Reg. §1.409A‑1(h). In determining whether a Participant has experienced a Separation from Service, a Separation from Service shall occur when such Participant has experienced a termination of employment with such Employer. A Participant shall be considered to have experienced a termination of employment when the facts and circumstances indicate that the Participant and his or her Employer reasonably anticipate that either (i) no further services will be performed for the Employer after a certain date, or (ii) that the level of bona fide services the Participant will perform for the Employer after such date (whether as an Employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by such Participant (whether as an Employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the Employer if the Participant has been providing services to the Employer less than 36 months).
|
1.30
|
“Specified Employee” shall mean any Participant who is determined to be a “key employee” (as defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable period, as determined annually by the Company in accordance with Treas. Reg. §1.409A-1(i). In determining whether a Participant is a Specified Employee, the following provisions shall apply:
|
(a)
|
The Company’s identification of the individuals who fall within the definition of “key employee” under Code Section 416(i) (without regard to paragraph (5) thereof) shall be based upon the 12-month period ending on each December 31
st
(referred to below as the “identification date”). In applying the applicable provisions of Code Section 416(i) to identify such individuals, “compensation” shall be determined in accordance with Treas. Reg. §1.415(c)-2(a) without regard to (i) any safe harbor provided in Treas. Reg. §1.415(c)-2(d), (ii) any of the special timing rules provided in Treas. Reg. §1.415(c)-2(e), and (iii) any of the special rules provided in Treas. Reg. §1.415(c)-2(g); and
|
(b)
|
Each Participant who is among the individuals identified as a “key employee” in accordance with part (a) of this Section shall be treated as a Specified Employee for purposes of this Plan if such Participant experiences a Separation from Service during the 12-month period that begins on the April 1
st
following the applicable identification date and ends March 31
st
of the following year.
|
1.31
|
“Trust” shall mean one or more trusts established by the Company in accordance with Article 13.
|
1.32
|
“Unforeseeable Emergency” shall mean a severe financial hardship of the Participant resulting from (a) an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary or the Participant’s dependent (as defined in Code Section 152 without regard to paragraphs (b)(1), (b)(2) and (d)(1)(b) thereof), (b) a loss of the Participant’s property due to casualty, or (c) such other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined by the Committee based on the relevant facts and circumstances.
|
2.1
|
Selection as a Participant
. Participation in the Plan shall be limited, as determined by the Committee in its sole discretion, to a select group of management or highly compensated Employees. From that group, the Company shall select, in its sole discretion, those individuals who may actually participate in this Plan.
|
2.2
|
Enrollment and Eligibility Requirements; Commencement of Participation
.
|
(a)
|
As a condition to participation, each selected Employee shall complete, execute and return to the Company an Election Form, and such Employee also may execute a Beneficiary Designation Form by the deadline(s) established by the Company in accordance with the applicable provisions of this Plan. In addition, the Company shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary.
|
(b)
|
Each selected Employee who is eligible to participate in the Plan shall commence participation in the Plan on the date that the Company determines that the Employee has met all enrollment requirements set forth in this Plan, including returning all required documents to the Company within the specified time period and in the terms specified by the Company.
|
(c)
|
If an Employee fails to meet all requirements established by the Company within the period required, that Employee shall not be eligible to participate in the Plan during such Plan Year.
|
2.3
|
Amendment of Eligibility Criteria
. Eligibility for participation in one year does not guarantee eligibility to participate in a future year. The Committee may, in its discretion, change the criteria for eligibility for any reason, provided however, that it is always limited to a select group of management or highly compensated employees.
|
3.1
|
Elections to Defer Compensation - General
.
|
(a)
|
Annual Deferral Amount
. For each Plan Year, a Participant may elect to defer (if eligible to receive such compensation), his or her Base Salary, Bonus, LTIP Amounts, RSUs, and/or other designated compensation, to be his or her Annual Deferral Amount; provided however, that the Company may require that in order for a deferral election to be effective, the amount deferred must satisfy minimum and maximum amounts specified by the Company.
|
(b)
|
Short Plan Year
. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, then to the extent required by Section 3.2 and Code Section 409A and related Treasury Regulations, the minimum and maximum amount of the Participant’s Base Salary, Bonus, LTIP Amounts or other designated compensation that may be deferred by the Participant for the Plan Year shall be determined by applying the percentages set forth in Section 3.1(a) to the
|
(c)
|
No Right to Deferrals
. A Participant may elect to defer Base Salary, Bonus, LTIP Amounts, RSUs, and/or other designated compensation only if the Company first provides the Participant the ability to defer any such compensation. If the Company has provided the Participant with such a right, this Plan will govern the administration of the deferrals. This Plan does not create any right to defer Base Salary, Bonus, LTIP Amounts, RSUs, and/or other designated compensation that the Company has not granted previously.
|
3.2
|
Timing of Deferral and Payment Elections; Effect of Election Form
.
|
(a)
|
General Timing Rule for Deferral and Payment Elections
. Except as otherwise provided in this Section 3.2, in order for a Participant to (i) make a valid election to defer Base Salary, Bonus, LTIP Amounts, RSUs, and/or other designated compensation; and (ii) make a valid election as to the time and form of payment of such deferrals, the Participant must submit an Election Form on or before the deadline established by the Company, which in no event shall be later than the December 31
st
preceding the Plan Year in which such compensation will be earned.
|
(b)
|
Timing of Deferral and Payment Elections for Newly Eligible Plan Participants
. Notwithstanding Section 3.2(a) above, a selected Employee who first becomes eligible to participate in the Plan on or after the beginning of a Plan Year, as determined in accordance with Treas. Reg. §1.409A-2(a)(7)(ii) and the “plan aggregation” rules provided in Treas. Reg. §1.409A-1(c)(2), may be permitted to (i) make an election to defer the portion of Base Salary, Bonus, LTIP Amounts, RSUs, and/or other designated compensation attributable to services to be performed after such election, and (ii) make a valid election as to the time and form of payment of such deferrals, provided that the Participant submits an Election Form on or before the deadline established by the Committee, which in no event shall be later than 30 days after the Participant first becomes eligible to participate in the Plan.
|
(c)
|
Timing of Deferral and Payment Elections for Performance-Based Compensation
.
Notwithstanding Section 3.2(a) or 3.2(b) above, and subject to the limitations described below, the Company may determine that a deferral or payment election for an amount that qualifies as Performance-Based Compensation may be made by submitting an Election Form on or before the deadline established by the Company, and such election shall become irrevocable no later than 6 months before the end of the performance period.
|
(d)
|
Timing Rule for Deferral of Compensation Subject to Risk of Forfeiture (e.g. certain RSUs)
.
With respect to compensation (i) to which a Participant has a legally binding right to payment in a subsequent year, and (ii) that is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least 12 months from the date the Participant obtains the legally binding right, the Company may determine that an irrevocable deferral or payment election for such compensation may be made by timely delivering an Election Form to the Committee in accordance with its rules and procedures, no later than the 30
th
day after the Participant obtains the legally binding right to the compensation, provided that the election is made at least 12 months in advance of the earliest date at which the forfeiture condition could lapse, as determined in accordance with Treas. Reg. §1.409A-2(a)(5).
|
3.3
|
Withholding and Crediting of Annual Deferral Amounts
. For each Plan Year, the Base Salary portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Base Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base Salary. The Bonus, LTIP Amounts, RSUs, (and any other designated compensation) portion of the Annual Deferral Amount shall be withheld at the time the Bonus, Commissions, LTIP Amounts, RSUs, and other compensation are or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. Annual Deferral Amounts shall be credited to the Participant’s Annual Account for such Plan Year at the time such amounts would otherwise have been paid to the Participant.
|
3.4
|
Company Contribution Amount
.
|
(a)
|
For each Plan Year, an Employer may credit amounts to a Participant’s Annual Account in accordance with employment or other agreements entered into between the Participant and the Employer, which amounts shall be part of the Participant’s Company Contribution Amount for that Plan Year. Such amounts shall be credited to the Participant’s Annual Account in cash for the applicable Plan Year on the date or dates prescribed by such agreements.
|
(b)
|
For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit any amount it desires in cash to any Participant’s Annual Account under this Plan, which amount shall be part
|
(c)
|
If not otherwise specified in the Participant’s employment or other agreement entered into between the Participant and the Employer, the amount (or the method or formula for determining the amount) of a Participant’s Company Contribution Amount shall be set forth in writing in one or more documents, which shall be deemed to be incorporated into this Plan, no later than the date on which such Company Contribution Amount is credited to the applicable Annual Account of the Participant.
|
3.5
|
Vesting
.
|
(a)
|
A Participant shall at all times be 100% vested in the portion of his or her Account Balance attributable to Annual Deferral Amounts, plus amounts credited or debited on such amounts pursuant to Section 3.6.
|
(b)
|
A Participant shall be vested in the portion of his or her Account Balance attributable to any Company Contribution Amounts, plus amounts credited or debited on such amounts pursuant to Section 3.6, in accordance with the vesting schedule(s) set forth in his or her employment agreement or any other agreement entered into between the Participant and his or her Employer. If not addressed in such agreements, a Participant shall vest in the portion of his or her Account Balance attributable to any Company Contribution Amounts, plus amounts credited or debited on such amounts pursuant to Section 3.6, in accordance with the following schedule:
|
Years of Plan Participation
|
Vested Percentage
|
Less than 1 year
|
0%
|
At least 1 year but less than 2 years
|
33%
|
At least 2 years but less than 3 years
|
66%
|
At least 3 years
|
100%
|
(c)
|
Notwithstanding anything to the contrary contained in this Section 3.5, in the event of a Change in Control, upon a Participant’s Separation from Service on or after qualifying for Retirement, or death prior to Separation from Service, any amounts that are not vested in accordance with Section
3.5(b) above, shall immediately become 100% vested.
|
(d)
|
Notwithstanding subsection 3.5(c) above, the Company has the discretion not to accelerate the vesting provisions described in Section 3.5(b) upon a Change in Control to the extent that the Company determines that such acceleration would cause the deduction limitations of Section 280G of the Code to become effective. In the event of such a determination, the Company and Participant may agree to an appropriate method to verify the Company’s calculations with respect to the application of Section 280G.
|
(e)
|
Section 3.5(d) shall not prevent the acceleration of the vesting provisions described in Section 3.5(b) if such Participant is entitled to a “gross-up” payment, to eliminate the effect of the Code section
|
(f)
|
If a Participant's Account Balance has been credited with any Mandatory Deferral that is subject to a vesting period (as set forth by the Company in accordance with the applicable plan under which the amount of the Mandatory Deferral was earned), and the Participant terminates service with the Company for any reason prior to meeting the vesting requirements for such Mandatory Deferral, then that portion of the Mandatory Deferral that is not vested, and the earnings on such nonvested portion, shall be forfeited and deducted from the Participant's Account Balance.
|
3.6
|
Crediting/Debiting of Account Balances
. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, Company, or trustee of the Trust, in its sole discretion, amounts shall be credited or debited to a Participant's Account Balance in accordance with the following rules:
|
(a)
|
Investment Funds
. Unless otherwise determined by the Committee, the Participant may elect one or more of the Investment Funds provided by the Company, in its sole discretion but under general direction from the Committee, for the purpose of crediting or debiting additional amounts to his or her Account Balance. As necessary, the Company may, in its sole discretion, discontinue, substitute or add an Investment Fund. Each such action will take effect on such date established by the Company. One of the Investment Funds may include a Company common stock fund. For purposes of such a common stock fund, all dividend equivalents payable in relation to common stock will be credited to the Participant’s Account Balance in the form of additional whole or fractional shares of common stock.
|
(b)
|
Election of Investment Funds
. A Participant, in connection with his or her initial deferral election in accordance with Section 3.2 above, shall elect, on the Election Form, one or more Investment Fund(s) to be used to determine the amounts to be credited or debited to his or her Account Balance. If a Participant does not elect any of the Investment Funds as described in the previous sentence, the Participant’s Account Balance shall automatically be allocated into the lowest-risk Investment Fund, as determined by the Company, in its sole discretion. The Participant may (but is not required to) elect, by submitting an Election Form to the Company that is accepted by the Company, to add or delete one or more Investment Fund(s) to be used to determine the amounts to be credited or debited to his or her Account Balance, or to change the portion of his or her Account Balance allocated to each previously or newly elected Investment Fund. If an election is made in accordance with the previous sentence, it shall apply as of the first business day deemed reasonably practicable by the Company, in its sole discretion, and shall continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence. Notwithstanding the foregoing, the Company, in its sole discretion, may impose limitations on the frequency with which one or more of the Investment Funds elected in accordance with this Section 3.6(b) may be added or deleted by such Participant; furthermore, the Company, in its sole discretion, may impose limitations on the frequency with which the Participant may change the portion of his or her Account Balance allocated to each previously or newly elected Investment Fund.
|
(c)
|
Proportionate Allocation
. In making any election described in Section 3.6(b) above, the Participant shall specify on the Election Form, in increments specified by the Company, the percentage of his or her Account Balance or Investment Fund, as applicable, to be allocated/reallocated.
|
(d)
|
Crediting or Debiting Method
. The performance of each Investment Fund (either positive or negative) will be determined on a daily basis based on the manner in which such Participant’s Account Balance has been hypothetically allocated among the Investment Funds by the Participant.
|
(e)
|
No Actual Investment
. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Investment Funds are to be used for measurement purposes only, and a Participant's election of any such Investment Fund, the allocation of his or her Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account Balance shall not be considered or construed in any manner as an actual investment of his or her Account Balance in any such Investment Fund. In the event that the Company or the trustee of the Trust, in its own discretion, decides to invest funds in any or all of the investments on which the Investment Funds are based, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant's Account Balance shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company.
|
3.7
|
Corporate Transactions
. In the event that the Company determines that any recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of common stock or other securities of the Company, issuance of warrants or other rights to purchase common stock or other securities of the Company, or other similar corporate transactions or events affects the common stock, an appropriate adjustment to the Participant’s Account Balance shall be made to prevent reduction or enlargement of the Participant’s benefits under the Plan.
|
3.8
|
FICA and Other Taxes
.
|
(a)
|
Annual Deferral Amounts
. For each Plan Year in which an Annual Deferral Amount is being withheld from a Participant, the Participant’s Employer(s) shall withhold from that portion of the Participant’s Base Salary, Bonus, LTIP Amounts, RSUs and/or other designated compensation that is not being deferred, in a manner determined by the Employer(s), the Participant’s share of FICA, federal, state, local, and other applicable taxes on such Annual Deferral Amount that is required to be withheld. If necessary, the Company may reduce the Annual Deferral Amount in order to comply with this Section 3.7(a). If necessary, the Company may reduce the Annual Deferral Amount to provide for deferrals under the Supplemental Stock Purchase Plan, the Supplemental Retirement Income Plan, or other nonqualified plans.
|
(b)
|
Distributions
. The Participant’s Employer(s), or the trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and the trustee of the Trust.
|
(c)
|
Annual Elections
. To the extent permitted by the Company, a Participant may be able to complete a separate Election Form for each year’s Annual Deferral Amount. If permitted by the Company, on each such Election Form, a Participant may elect to defer a different Annual Deferral Amount from what was deferred on a previous Election Form and choose a different time and form of payment for that year’s Annual Deferral Amount from what was selected on a previous Election Form, provided that such times and forms of payment are made in accordance with Article 4. If no Election Form is submitted for a particular
|
3.9
|
Mandatory Deferrals
. The amount of any Mandatory Deferral shall be established in accordance with the timing rules set forth in this Plan for Participants to complete an Election Form, or at any later time permitted under Code Section 409A. In general, Mandatory Deferrals shall be subject to the terms of this Plan. Notwithstanding the foregoing, the Company, in accordance with the applicable plan under which the Mandatory Deferral was earned, shall determine the vesting schedule, if any, that applies to the Mandatory Deferral and whether the Mandatory Deferral is subject to any investment restrictions. Mandatory Deferrals shall be credited to a Participant's Annual Account as soon as practicable after the amounts otherwise would have been paid to the Participant.
|
4.1
|
Distributions/Events Generally
. Participants generally will not be entitled to receive a distribution of their Account Balance until they experience a Separation from Service with the Employer for any reason. A Participant may receive a distribution before Separation from Service, however, in accordance with this Article 4, upon (1) an Unforeseeable Emergency that occurs before Separation from Service, or (2) a year (or years) that has been designated by the Participant in an Election Form and that occurs before Separation from Service. A Participant who elects to defer compensation otherwise payable in the form of the Company’s common stock shall receive the distribution of such compensation only in the form of common stock. Any portions of the Account Balance hypothetically invested in a Company common stock fund also will be paid in the form of common stock. All other portions of the Account Balance will be paid in the form of cash. Participants also may elect the form of payment of different deferred amounts in accordance with Article 4 of this Plan. Payment elections shall be made, and become irrevocable, coincident with the deferral election timing requirements under Section 3.2 of this Plan.
|
4.2
|
In-Service Distributions
.
|
(a)
|
General Payments
. A Participant may elect, in his or her Election Form for each Plan Year, to receive the portion of his or her Account Balance elected to be distributed as an In‑Service Distribution and all amounts credited or debited thereto, in a specified year while employed with an Employer (an “In-Service Distribution”). The Participant may receive such an In-Service Distribution in the amount specified on his or her Election Form as a lump sum or installments, pursuant to the Annual Installment Method over a period not to exceed 5 years.
|
(b)
|
Modifying In-Service Distributions
. The Company, in its discretion, may allow a Participant to modify his or her election as to the form or time of distribution of the portion of his or her Account Balance elected to be paid in an In‑Service Distribution in a specified year and earnings thereon, if (1) such election does not take effect until at least 12 months after the date on which the election is made, (2) the first payment with respect to which such election is made is deferred for a period of not less than five (5) years from the date on which such payment would otherwise have been made, and (3) any election related to a payment to be made at a specified date is made at least 12 months prior to the date of the first scheduled payment. For purposes of the Plan, the term “payment” means each separate installment and not the collective group of installment payments.
|
(c)
|
Precedence of Distributions
. In the event a Participant has a Separation from Service, Unforeseeable Emergency, or other event that triggers distribution of benefits under this Plan, all amounts subject to an In-Service Distribution shall be paid in accordance with other applicable provisions of the Plan and not under this Section 4.2. If, however, a Participant made an election to postpone an In-Service Distribution under Section 4.2(b), and the Participant experiences a Separation from Service, the distribution will be made in accordance with Section 4.2(b) and not Section 4.3.
|
4.3
|
Distributions After Separation from Service
.
|
(a)
|
Generally
. If a Participant experiences a Separation from Service with an Employer, the provisions of this Section 4.3 shall apply to the distribution of the Participant’s Account Balance. The Participant may elect, in his or her Election Form for each Plan Year to receive such benefits payable upon a Separation from Service as a lump sum or installments, pursuant to the Annual Installment Method over a period not to exceed 15 years, or a combination of the lump sum and installments as described in this Plan. If no election is made as to the form of payment, then payment shall be made as a lump sum.
|
(b)
|
Lump Sum
. If payment of a Participant’s Account Balance is to be made to the Participant in a lump sum, the lump sum payment generally shall be made on (i) the last Business Day of the month after the month in which the Participant incurred a Separation of Service, for a Participant who is not a Specified Employee, (ii) the last Business Day of the sixth (6th) month after the month in which the Participant experiences a Separation from Service, unless due to such Participant’s death, in which case payment generally shall be made to the Beneficiary at the time provided in Section 5.2 of this Plan, for a Participant who is a Specified Employee; or (iii) such later date permitted under Code Section 409A and the guidance and regulations thereunder. The amount of the lump sum payment will be the value of the Participant’s Account Balance as of the Business Day that is coincident with or immediately preceding the payment date.
|
(c)
|
Installments
. If payment of a Participant’s Account Balance is to be made to the Participant in annual installments, the distribution of the first annual installment payment generally shall be made on (i) the last Business Day of the month after the month in which the Participant incurred a Separation of Service, for a Participant who is not a Specified Employee, (ii) the last Business Day of the sixth (6th) month after the month in which the Participant experiences a Separation from Service, unless due to such Participant’s death, in which case payment generally shall be made to the Beneficiary at the time provided in Section 5.2 of this Plan, for a Participant who is a Specified Employee; or (iii) such later date permitted under Code Section 409A and the guidance and
|
(d)
|
Combination Lump Sum and Installments
. If a payment of a Participant's Account Balance is to be made to the Participant in a combination of a lump sum and annual installments, the distribution of the lump sum generally shall be made at the time, and valued in the manner, provided in subsection (b) above. Each subsequent installment payment generally shall be paid at the time, and valued in the manner, provided in subsection (c) above, consistent with the Annual Installment Method described in Section 1.4.
|
(e)
|
Modifying Separation from Service Distributions
. The Employer, in its discretion, may allow a Participant to modify his election as to the form or time of distribution of his entire Account Balance, and earnings thereon, if (1) such election does not take effect until at least 12 months after the date on which the election is made, (2) the first payment with respect to which such election is made is deferred for a period of not less than 5 years from the date on which such payment would otherwise have been made, and (3) such election is made at least 12 months before the first scheduled payment of the Participant’s Account Balance. For purposes of the Plan, the term “payment” means each separate installment and not the collective group of installment payments.
|
4.4
|
Unforeseeable Emergency
. Upon finding that a Participant has suffered an Unforeseeable Emergency, the Committee may, in its sole discretion, make distributions from the Participant’s Account Balance and/or allow a Participant to suspend the elections made on his or her Election Form entirely. The amount of such distribution shall be limited to the amount necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). Any distribution pursuant to this Section 4.4 shall be payable in a lump sum. The distribution shall be paid within 30 days after the determination of an Unforeseeable Emergency.
|
4.5
|
Automatic Cash-Out
. In the event a Participant’s Account Balance at the time distribution begins, or following a distribution or an installment payment, is two times the then current limit under Code Section 402(g) or less, that balance shall be paid to the Participant or his Beneficiary in a lump sum on the next annual installment distribution date notwithstanding any form of benefit payment elected by the Participant.
|
4.6
|
Withholding for Taxes
. To the extent required by the law in effect at the time payments are made, an Employer shall withhold from the payments made hereunder any taxes required to be withheld by the federal or any state or local government, including any amounts which the Employer determines is reasonably necessary to pay any generation‑skipping transfer tax which is or may become due. A Beneficiary, however, may elect not to have withholding of federal income tax to the extent permitted by applicable law and approved by the Company.
|
4.7
|
Payment to Guardian
. The Committee may direct payment to the duly appointed guardian, conservator or other similar legal representative of a Participant or Beneficiary to whom payment is due. In the absence of such a legal representative, the Committee may, in its sole and absolute discretion, make payment to a person having the care and custody of a minor, an incompetent or a person incapable of handling the disposition of property upon proof satisfactory to the Committee of incompetency, status as a minor, or
|
4.8
|
Payment of Mandatory Deferrals
. Notwithstanding any provision of the Plan to the contrary, the vested portion of a Participant's Account Balance attributable to a Mandatory Deferral shall be paid at the time and in the form provided in accordance with the applicable plan under which the amount of the Mandatory Deferral was earned. The Company may, but is not required to, allow a Participant to complete an Election Form in accordance with the rules set forth in this Plan to elect an alternative time or form of payment.
|
5.1
|
Death Benefit
.
In the event of a Participant’s death prior to the complete distribution of his or her vested Account Balance, the Participant's Beneficiary(ies) shall receive the Participant's unpaid vested Account Balance in a lump sum payment (the “Death Benefit”). The Death Benefit shall be calculated as of the close of business on the date on which the Company is provided with proof that is satisfactory to the Company of the Participant’s death.
|
5.2
|
Payment of Death Benefit
.
The Death Benefit shall be paid to the Participant’s Beneficiary(ies) no later than 60 days after the date described in subsection 5.1 above.
|
6.1
|
Beneficiary
.
Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates.
|
6.2
|
Beneficiary Designation; Change; Spousal Consent
.
A Participant shall designate his or her Beneficiary by completing and signing the Beneficiary Designation Form, and returning it to the Company or its designated agent. A Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Company's rules and procedures, in effect from time to time. If the Participant names someone other than his or her spouse as a Beneficiary, the Company may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Company, executed by such Participant's spouse and returned to the Company. Upon the acceptance by the Company of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The Company shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Company prior to his or her death.
|
6.3
|
Acknowledgment
.
No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Company or its designated agent.
|
6.4
|
No Beneficiary Designation
.
If a Participant fails to designate a Beneficiary as provided in Sections 6.1, 6.2 and 6.3 above or, if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant's benefits, then the Participant's designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant's estate.
|
6.5
|
Doubt as to Beneficiary
.
If the Company has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Company shall have the right, exercisable in its discretion, to cause the Participant's Employer to withhold such payments until this matter is resolved to the Company's satisfaction.
|
6.6
|
Discharge of Obligations
.
The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Company from all further obligations under this Plan with respect to the Participant.
|
7.1
|
Paid Leave of Absence
.
If a Participant is authorized by the Participant's Employer to take a paid leave of absence from the employment of the Employer, and such leave of absence does not constitute a Separation from Service, (a) the Participant shall continue to be considered eligible for the benefits provided under the Plan, and (b) the Annual Deferral Amount
shall continue to be withheld during such paid leave of absence in accordance with Section 3.2.
|
7.2
|
Unpaid Leave of Absence
.
If a Participant is authorized by the Participant's Employer to take an unpaid leave of absence from the employment of the Employer for any reason, and such leave of absence does not constitute a Separation from Service, such Participant shall continue to be eligible for the benefits provided under the Plan. During the unpaid leave of absence, the Participant shall not be allowed to make any additional deferral elections. However, if the Participant returns to employment, the Participant may elect to defer an Annual Deferral Amount for the Plan Year following his or her return to employment and for every Plan Year thereafter while a Participant in the Plan, provided such deferral elections are otherwise allowed and an Election Form is delivered to and accepted by the Committee for each such election in accordance with Section 3.2 above.
|
9.1
|
Termination of Plan
.
The Committee reserves the right to terminate the Plan with respect to all Participants, including Participants of a participating employer. In the event of a Plan termination no new
|
9.2
|
Amendment
.
The Committee may, at any time, amend or modify the Plan in whole or in part. Notwithstanding the foregoing, (i) no amendment or modification shall be effective to decrease the value of a Participant's vested Account Balance in existence at the time the amendment or modification is made, and (ii) no amendment or modification of this Section 9.2 or Section 10.2 of the Plan shall be effective.
|
9.3
|
Effect of Payment
.
The full payment of the Participant’s vested Account Balance in accordance with the applicable provisions of the Plan shall completely discharge all obligations to a Participant and his or her designated Beneficiaries under this Plan.
|
10.1
|
Administrative Duties
.
Except as otherwise provided in this Article 10, this Plan shall be administered by the Company, which from time to time will provide a report summarizing the administration of this Plan to the Committee. Both the Committee and the Company shall also have the discretion and authority to interpret the Plan, to prescribe, amend and rescind any rules, forms and procedures as it deems necessary or appropriate for the proper administration of the Plan and to make any other determinations, including factual determinations, and take such other actions as it deems necessary or advisable in carrying out its duties under the Plan. The Company may seek from the Committee final resolution of any ambiguous or unresolved issue that arises in the administration of the Plan. Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee or Company, as applicable, shall be entitled to rely on information furnished by a Participant or an Employer.
|
10.2
|
Administration Upon Change In Control
.
Within 120 days following a Change in Control, the Committee immediately prior to the Change in Control (whether or not such individuals are members of the Committee following the Change in Control) may, by written consent of the majority of such individuals, appoint an independent third party administrator (the “Administrator”) to perform any or all of the Company’s duties described in Section 10.1 above, including without limitation, the power to determine any questions arising in connection with the administration or interpretation of the Plan, and the power to make benefit entitlement determinations. Upon and after the effective date of such appointment, (a) the Company must pay all reasonable administrative expenses and fees of the Administrator, and (b) the Administrator may only be terminated with the written consent of the majority of Participants with an Account Balance in the Plan as of the date of such proposed termination.
|
10.3
|
Agents
.
In the administration of this Plan, the Company or the Administrator, as applicable, may, from time to time, employ agents or third party administrators and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative ) and may from time to time consult with counsel.
|
10.4
|
Binding Effect of Decisions
.
The decision or action of the Committee, Company or Administrator, as applicable, with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.
|
10.5
|
Indemnity of Company
.
The Company shall indemnify and hold harmless any Employee to whom the duties of the Company may be delegated, and the Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by any such Employee or the Administrator.
|
10.6
|
Employer Information
.
To enable the Company and/or Administrator to perform its functions, the Company and each Employer shall supply full and timely information to the Company and/or Administrator, as the case may be, on all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the Participants, the compensation of its Participants, the date and circumstances of the Separation from Service, Disability or death of its Participants, and such other pertinent information as the Company or Administrator may reasonably require.
|
11.1
|
Coordination with Other Benefits
.
The benefits provided for a Participant and Participant's Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Participant's Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.
|
12.1
|
Presentation of Claim
.
Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Company a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.
|
12.2
|
Notification of Decision
.
The Company shall consider a Claimant's claim within a reasonable time, but no later than 90 days after receiving the claim. If the Company determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 90 day period. In no event shall such extension exceed a period of 90 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Company expects to render the benefit determination. The Company shall notify the Claimant in writing:
|
(a)
|
that the Claimant's requested determination has been made, and that the claim has been allowed in full; or
|
(b)
|
that the Company has reached a conclusion contrary, in whole or in part, to the Claimant's requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:
|
(i)
|
the specific reason(s) for the denial of the claim, or any part of it;
|
(ii)
|
specific reference(s) to pertinent provisions of the Plan upon which such denial was based;
|
(iii)
|
a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary;
|
(iv)
|
an explanation of the claim review procedure set forth in Section 12.3 below; and
|
(v)
|
a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.
|
12.3
|
Review of a Denied Claim
.
On or before 60 days after receiving a notice from the Company that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Company a written request for a review of the denial of the claim. The Claimant (or the Claimant's duly authorized representative):
|
(a)
|
may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claim for benefits;
|
(b)
|
may submit written comments or other documents; and/or
|
(c)
|
may request a hearing, which the Company, in its sole discretion, may grant.
|
12.4
|
Decision on Review
.
The Company shall render its decision on review promptly, and no later than 60 days after the Company receives the Claimant’s written request for a review of the denial of the claim. If the Company determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 60 day period. In no event shall such extension exceed a period of 60 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Company expects to render the benefit determination. In rendering its decision, the Company shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain:
|
(a)
|
specific reasons for the decision;
|
(b)
|
specific reference(s) to the pertinent Plan provisions upon which the decision was based;
|
(c)
|
a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and
|
(d)
|
a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a).
|
12.5
|
Legal Action
.
A Claimant's compliance with the foregoing provisions of this Article 12 is a mandatory prerequisite to a Claimant's right to commence any legal action with respect to any claim for benefits under this Plan.
|
13.1
|
Establishment of the Trust
.
In order to provide assets from which to fulfill its obligations to the Participants and their Beneficiaries under the Plan, the Company, unless otherwise specified by the Company, has established or may establish a rabbi trust in accordance with Revenue Procedure 92‑64, to which each Employer may, in its discretion, contribute cash or other property, including securities issued by the Company, to provide for the benefit payments under the Plan (the “Trust”).
|
13.2
|
Interrelationship of the Plan and the Trust
.
The provisions of the Plan and the Participant’s Election Form shall govern the rights of a Participant to receive distributions pursuant to the Plan. If a Participant’s Election Form could be construed to be in contradiction of or different from the terms of the Plan, the Plan controls. The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust. Each Employer shall at all times remain liable to carry out its obligations under the Plan.
|
13.3
|
Distributions From the Trust
.
Each Employer's obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Employer's obligations under this Plan.
|
14.1
|
Status of Plan
. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted (a) to the extent possible in a manner consistent with the intent described in the preceding sentence, and (b) in accordance with Code Section 409A and related Treasury guidance and Regulations.
|
14.2
|
Unsecured General Creditor
.
Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of an Employer's assets shall be, and remain, the general, unpledged unrestricted assets of the Employer. An Employer's obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.
|
14.3
|
Employer's Liability
.
An Employer's liability for the payment of benefits shall be defined only by the Plan. An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan.
|
14.4
|
Nonassignability
.
Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant's or any
|
14.5
|
Not a Contract of Employment
.
The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between any Employer and the Participant. Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of any Employer as an Employee or to interfere with the right of any Employer to discipline or discharge the Participant at any time.
|
14.6
|
Furnishing Information
.
A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder.
|
14.7
|
Terms
.
Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.
|
14.8
|
Captions
.
The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.
|
14.9
|
Governing Law
.
Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of Delaware without regard to its conflicts of laws principles.
|
14.10
|
Notice
.
Any notice or filing required or permitted to be given to the Committee or Company under this Plan shall be sufficient if in writing and hand-delivered, sent by registered or certified mail, or sent electronically, to the individual or address below:
|
Huntington Bancshares Incorporated
|
Attn: Compensation Director
|
41 South High Street
|
Columbus, Ohio 43215
|
14.11
|
Successors
.
The provisions of this Plan shall bind and inure to the benefit of the Participant's Employer and its successors and assigns and the Participant and the Participant's designated Beneficiaries.
|
14.12
|
Spouse's Interest
.
The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse's will, nor shall such interest pass under the laws of intestate succession.
|
14.13
|
Validity
.
In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.
|
14.14
|
Incompetent
.
If the Company determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person's property, the Company may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The Company may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.
|
14.15
|
Domestic Relations Orders
.
If necessary to comply with a domestic relations order, as defined in Code Section 414(p)(1)(B), pursuant to which a court has determined that a spouse or former spouse of a Participant has an interest in the Participant’s benefits under the Plan, the Committee shall have the right to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to such spouse or former spouse.
|
14.16
|
Distribution in the Event of Income Inclusion Under Code Section 409A
.
If any portion of a Participant’s Account Balance under this Plan is required to be included in income by the Participant prior to receipt due to a failure of this Plan to comply with the requirements of Code Section 409A and related Treasury Regulations, the Committee may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser of (i) the portion of his or her Account Balance required to be included in income as a result of the failure of the Plan to comply with the requirements of Code Section 409A and related Treasury Regulations, or (ii) the unpaid vested Account Balance.
|
14.17
|
Deduction Limitation on Benefit Payments
.
If an Employer reasonably anticipates that the Employer’s deduction with respect to any distribution from this Plan would be limited or eliminated by application of Code Section 162(m), then to the extent permitted by Treas. Reg. §1.409A-2(b)(7)(i), payment shall be delayed as deemed necessary to ensure that the entire amount of any distribution from this Plan is deductible. Any amounts for which distribution is delayed pursuant to this Section shall continue to be credited/debited with additional amounts in accordance with Section 3.6. The delayed amounts (and any amounts credited thereon) shall be distributed to the Participant (or his or her Beneficiary in the event of the Participant’s death) at the earliest date the Employer reasonably anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of Code Section 162(m). In the event that such date is determined to be after a Participant’s Separation from Service and the Participant to whom the payment relates is determined to be a Specified Employee, then to the extent deemed necessary to comply with Treas. Reg. §1.409A-3(i)(2), the delayed payment shall not made before the end of the six-month period following such Participant’s Separation from Service.
|
14.18
|
Permitted Delays for Potential Federal Securities Laws or Other Violations
. Notwithstanding any provision of the Plan to the contrary, any payment to a Participant under the Plan shall be delayed where the Company reasonably anticipates that making such payment will violate Federal securities laws or other applicable law; provided that any payment that is delayed under this section shall be made at the earliest date at which the Company reasonably anticipates that the making of the payment will not cause a violation of Federal securities laws or other applicable law.
|
14.19
|
Forfeiture
. Federal law and regulations (including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act and any guidance thereunder) may impose restrictions or penalties on the ability of the Company to pay certain amounts deferred under this Plan. The Company also has established recoupment policies under which employees of the Company must forfeit amounts of compensation previously earned if the Company later learns of wrongdoing on the part of the employee. Notwithstanding any provision of the Plan to the contrary, to the extent necessary to comply with any such law or regulation,
|
14.20
|
Compliance with Code Section 409A
. To the extent that rights or payments under this Plan are subject to Code Section 409A, this Plan shall be interpreted and administered in compliance with the conditions of Code Section 409A and the regulations and guidance thereunder. Any deferral or payment election that would not comply with Code Section 409A’s requirements shall not be effective. To the extent that a provision of this Plan does not comply with Code Section 409A, such provision shall be void and without effect. If an Employer unintentionally fails to operate this Plan or follow the terms of this Plan in such a way that is not compliant with Code Section 409A, the Employer may take any steps necessary to correct the error, as provided in Internal Revenue Service guidance for correcting operational and document errors, or other applicable guidance.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying 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):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 30, 2018
|
|
|
|
|
|
|
/s/
|
Stephen D. Steinour
|
|
|
|
|
Stephen D. Steinour
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying 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):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 30, 2018
|
|
|
|
|
|
|
/s/
|
Howell D. McCullough III
|
|
|
|
|
Howell D. McCullough III
|
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/
|
Stephen D. Steinour
|
|
|
Stephen D. Steinour
|
|
|
Chief Executive Officer
|
|
|
October 30, 2018
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/
|
Howell D. McCullough III
|
|
|
Howell D. McCullough III
|
|
|
Chief Financial Officer
|
|
|
October 30, 2018
|