x
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Maryland
|
|
31-0724920
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
41 S. High Street, Columbus, Ohio
|
|
43287
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of class
|
|
Name of exchange on which registered
|
5.875% Series C Non-Cumulative, perpetual preferred stock
|
|
NASDAQ
|
6.250% Series D Non-Cumulative, perpetual preferred stock
|
|
NASDAQ
|
Common Stock—Par Value $0.01 per Share
|
|
NASDAQ
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
¨
|
|
|
|
|
|
|
|
Non-accelerated filer
|
¨
|
|
|
|
|
|
|
|
|
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
|
AML
|
Anti-Money Laundering
|
ANPR
|
Advance Notice of Proposed Rulemaking
|
AOCI
|
Accumulated Other Comprehensive Income
|
ASC
|
Accounting Standards Codification
|
ASR
|
Accelerated Share Repurchase
|
ATM
|
Automated Teller Machine
|
AULC
|
Allowance for Unfunded Loan Commitments
|
Bank Secrecy Act
|
Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970
|
BHC
|
Bank Holding Company
|
BHC Act
|
Bank Holding Company Act of 1956
|
C&I
|
Commercial and Industrial
|
CCAR
|
Comprehensive Capital Analysis and Review
|
CCPA
|
California Consumer Privacy Act of 2018
|
CDs
|
Certificates of Deposit
|
CET1
|
Common equity tier 1 on a transitional Basel III basis
|
CFPB
|
Consumer Financial Protection Bureau
|
CISA
|
Cybersecurity Information Sharing Act
|
CMO
|
Collateralized Mortgage Obligations
|
CRA
|
Community Reinvestment Act
|
CRE
|
Commercial Real Estate
|
DIF
|
Deposit Insurance Fund
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
Economic Growth Act
|
Economic Growth, Regulatory Relief and Consumer Protection Act
|
EPS
|
Earnings Per Share
|
EVE
|
Economic Value of Equity
|
FASB
|
Financial Accounting Standards Board
|
FCRA
|
Fair Credit Reporting Act
|
FDIA
|
Federal Deposit Insurance Act
|
FDIC
|
Federal Deposit Insurance Corporation
|
Federal Reserve
|
Board of Governors of the Federal Reserve System
|
FHA
|
Federal Housing Administration
|
FHC
|
Financial Holding Company
|
FHLB
|
Federal Home Loan Bank
|
FICO
|
Fair Isaac Corporation
|
FinCEN
|
Financial Crimes Enforcement Network
|
FINRA
|
Financial Industry Regulatory Authority, Inc.
|
FirstMerit
|
FirstMerit Corporation
|
FRB
|
Federal Reserve Bank
|
FTE
|
Fully-Taxable Equivalent
|
FTP
|
Funds Transfer Pricing
|
FVO
|
Fair Value Option
|
GAAP
|
Generally Accepted Accounting Principles in the United States of America
|
GLBA
|
Gramm-Leach-Bliley Act
|
GSE
|
Government Sponsored Enterprise
|
HMDA
|
Home Mortgage Disclosure Act
|
HSE
|
Hutchinson, Shockey, Erley & Co.
|
HTM
|
Held-to-Maturity
|
IRS
|
Internal Revenue Service
|
LCR
|
Liquidity Coverage Ratio
|
LGD
|
Loss Given Default
|
LIBOR
|
London Interbank Offered Rate
|
LFI Rating System
|
Large Financial Institution Rating System
|
LIHTC
|
Low Income Housing Tax Credit
|
LTD
|
Long Term Debt
|
LTV
|
Loan to Value
|
MBS
|
Mortgage-Backed Securities
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MSA
|
Metropolitan Statistical Area
|
MSR
|
Mortgage Servicing Right
|
NAICS
|
North American Industry Classification System
|
NALs
|
Nonaccrual Loans
|
NCO
|
Net Charge-off
|
NII
|
Noninterest Income
|
NIM
|
Net Interest Margin
|
NOW
|
Negotiable Order of Withdrawal
|
NPAs
|
Nonperforming Assets
|
NSF
|
Non-Sufficient Funds
|
OCC
|
Office of the Comptroller of the Currency
|
OCI
|
Other Comprehensive Income (Loss)
|
OCR
|
Optimal Customer Relationship
|
OFAC
|
Office of Foreign Assets Control
|
OIS
|
Overnight Indexed Swaps
|
OLEM
|
Other Loans Especially Mentioned
|
OREO
|
Other Real Estate Owned
|
OTTI
|
Other-Than-Temporary Impairment
|
Patriot Act
|
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
|
PD
|
Probability Of Default
|
Plan
|
Huntington Bancshares Retirement Plan
|
Problem Loans
|
Includes nonaccrual loans and leases, accruing loans and leases past due 90 days or more, troubled debt restructured loans, and criticized commercial loans
|
Proposed Capital and Liquidity Tailoring Rule
|
Refers to the proposed rule, Proposed changes to applicability thresholds for regulatory and capital and liquidity requirements, issued by the OCC, the Federal Reserve and the FDIC on October 31, 2018
|
Proposed EPS Tailoring Rule
|
Refers to the proposed rule, Prudential Standards for Large Bank Holding Companies and Savings and Loan Holding, issued by the Federal Reserve on October 31, 2018
|
Proposed Tailoring Rules
|
Refers to the Proposed Capital and Liquidity Tailoring Rule and the Proposed EPS Tailoring Rule
|
RBHPCG
|
Regional Banking and The Huntington Private Client Group
|
REIT
|
Real Estate Investment Trust
|
Riegle-Neal Act
|
The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
|
ROC
|
Risk Oversight Committee
|
RWA
|
Risk-Weighted Assets
|
SAD
|
Special Assets Division
|
SBA
|
Small Business Administration
|
SEC
|
Securities and Exchange Commission
|
SERP
|
Supplemental Executive Retirement Plan
|
SIFMA
|
Securities Industry and Financial Markets Association
|
SOFR
|
Secured Overnight Financing Rate
|
SRIP
|
Supplemental Retirement Income Plan
|
TCJA
|
H.R. 1, Originally known as the Tax Cuts and Jobs Act
|
TDR
|
Troubled Debt Restructuring
|
U.S. Basel III
|
Refers to the final rule issued by the Federal Reserve and OCC and published in the Federal Register on October 11, 2013
|
U.S. Treasury
|
U.S. Department of the Treasury
|
UCS
|
Uniform Classification System
|
UPB
|
Unpaid Principal Balance
|
USDA
|
U.S. Department of Agriculture
|
VA
|
U.S. Department of Veteran Affairs
|
VIE
|
Variable Interest Entity
|
XBRL
|
eXtensible Business Reporting Language
|
|
• 451 branches in Ohio
|
|
• 37 branches in Illinois
|
|
• 300 branches in Michigan
|
|
• 31 branches in Wisconsin
|
|
• 49 branches in Pennsylvania
|
|
• 25 branches in West Virginia
|
|
• 41 branches in Indiana
|
|
• 10 branches in Kentucky
|
•
|
Consumer and Business Banking
:
The
Consumer and Business Banking
segment provides a wide array of financial products and services to consumer and small business customers including but not limited to checking accounts, savings accounts, money market accounts, certificates of deposit, investments, consumer loans, credit cards, and small business loans. Other financial services available to consumer and small business customers include mortgages, insurance, interest rate risk protection, foreign exchange, and treasury management. Huntington serves customers through our network of branches. In addition to our extensive branch network, customers can access Huntington through online banking, mobile banking, telephone banking, and ATMs.
|
•
|
Commercial Banking
:
Through a relationship banking model, this segment provides a wide array of products and services to the middle market, corporate, real estate and government public sector customers located primarily within our geographic footprint. The segment is divided into six business units: Middle Market, Specialty Banking, Asset Finance, Capital Markets/Institutional Corporate Banking, Commercial Real Estate, and Treasury Management.
|
•
|
Vehicle Finance
:
Our products and services include providing financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, and providing financing to franchised dealerships for the acquisition of new and used inventory. Products and services are delivered through highly specialized relationship-focused bankers and product partners.
Huntington creates well-defined relationship plans which identify needs where solutions are developed and customer commitments are obtained.
|
•
|
Regional Banking and The Huntington Private Client Group
:
Regional Banking and The Huntington Private Client Group
is closely aligned with our regional banking markets. A fundamental point of differentiation is our commitment to be actively engaged within our local markets - building connections with community and business leaders and offering a uniquely personal experience delivered by colleagues working within those markets.
|
•
|
Treasury/Other:
The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
|
MSA
|
|
Rank
|
|
Deposits
(in millions)
|
|
Market Share
|
||||
Columbus, OH
|
|
1
|
|
|
$
|
24,746
|
|
|
37
|
%
|
Cleveland, OH
|
|
2
|
|
|
9,718
|
|
|
14
|
|
|
Detroit, MI
|
|
6
|
|
|
7,737
|
|
|
6
|
|
|
Akron, OH
|
|
1
|
|
|
3,937
|
|
|
28
|
|
|
Indianapolis, IN
|
|
4
|
|
|
3,452
|
|
|
7
|
|
|
Cincinnati, OH
|
|
5
|
|
|
3,365
|
|
|
3
|
|
|
Pittsburgh, PA
|
|
9
|
|
|
2,955
|
|
|
2
|
|
|
Toledo, OH
|
|
2
|
|
|
2,491
|
|
|
22
|
|
|
Grand Rapids, MI
|
|
2
|
|
|
2,416
|
|
|
11
|
|
|
Chicago, IL
|
|
20
|
|
|
2,303
|
|
|
1
|
|
|
Source: FDIC.gov, based on June 30, 2018 survey.
|
|
|
|
|
|
|
•
|
CET1 Risk-Based Capital Ratio
, equal to the ratio of CET1 capital to risk-weighted assets. CET1 capital primarily includes common shareholders’ equity subject to certain regulatory adjustments and deductions, including with respect to goodwill, intangible assets, certain deferred tax assets, and AOCI. Certain of these adjustments and deductions were subject to phase-in periods that began on January 1, 2015, and was scheduled to end on January 1, 2018. Together with the FDIC, the Federal Reserve and OCC have issued proposed rules that would simplify the capital treatment of certain capital deductions and adjustments, and the final phase-in period for these capital deductions and adjustments has been indefinitely delayed. In addition, in December 2018, the U.S. federal banking agencies finalized rules that would permit BHCs and banks to phase-in, for regulatory capital purposes, the day-one impact of the new current expected credit loss accounting rule on retained earnings over a period of three years. For further discussion of the new current expected credit loss accounting rule, see Note 2 of the Notes to Consolidated Financial Statements.
|
•
|
Tier 1 Risk-Based Capital Ratio
, equal to the ratio of Tier 1 capital to risk-weighted assets. Tier 1 capital is primarily comprised of CET1 capital, perpetual preferred stock, and certain qualifying capital instruments.
|
•
|
Total Risk-Based Capital Ratio
, equal to the ratio of total capital, including CET1 capital, Tier 1 capital, and Tier 2 capital, to risk-weighted assets. Tier 2 capital primarily includes qualifying subordinated debt and qualifying ALLL. Tier 2 capital also includes, among other things, certain trust preferred securities.
|
•
|
Tier 1 Leverage Ratio
, equal to the ratio of Tier 1 capital to quarterly average assets (net of goodwill, certain other intangible assets, and certain other deductions).
|
|
Minimum Basel III Regulatory Capital Ratio
Plus Capital Conservation Buffer
|
||||
|
January 1, 2018
|
|
January 1, 2019
|
||
CET 1 risk-based capital ratio
|
6.375
|
%
|
|
7.00
|
%
|
Tier 1 risk-based capital ratio
|
7.875
|
|
|
8.50
|
|
Total risk-based capital ratio
|
9.875
|
|
|
10.50
|
|
|
|
Minimum Regulatory Capital Ratio
|
Minimum Ratio + Capital Conservation Buffer (1)
|
Well-Capitalized
Minimums (2)
|
|
At December 31, 2018
|
||||
(dollar amounts in billions)
|
|
|
Actual
|
|||||||
Ratios:
|
|
|
|
|
|
|
||||
CET 1 risk-based capital ratio
|
Consolidated
|
4.50
|
%
|
6.375
|
%
|
N/A
|
|
|
9.65
|
%
|
|
Bank
|
4.50
|
|
6.375
|
|
6.50
|
%
|
|
10.19
|
|
Tier 1 risk-based capital ratio
|
Consolidated
|
6.00
|
|
7.875
|
|
6.00
|
|
|
11.06
|
|
|
Bank
|
6.00
|
|
7.875
|
|
8.00
|
|
|
11.21
|
|
Total risk-based capital ratio
|
Consolidated
|
8.00
|
|
9.875
|
|
10.00
|
|
|
12.98
|
|
|
Bank
|
8.00
|
|
9.875
|
|
10.00
|
|
|
13.42
|
|
Tier 1 leverage ratio
|
Consolidated
|
4.00
|
|
N/A
|
|
N/A
|
|
|
9.10
|
|
|
Bank
|
4.00
|
|
N/A
|
|
5.00
|
|
|
9.23
|
|
(1)
|
Reflects the capital conservation buffer of 1.875% applicable during 2018. Huntington and the Bank already meet the Capital Conservation Buffer at the fully phased-in level of 2.5%.
|
(2)
|
Reflects the well-capitalized standard applicable to Huntington under Federal Reserve Regulation Y and the well-capitalized standard applicable to the Bank.
|
•
|
Credit risk
, which is the risk of loss due to loan and lease customers or other counterparties not being able to meet their financial obligations under agreed upon terms;
|
•
|
Market risk
, which occurs when fluctuations in interest rates impact earnings and capital. Financial impacts are realized through changes in the interest rates of balance sheet assets and liabilities (net interest margin) or directly through valuation changes of capitalized MSR and/or trading assets (noninterest income);
|
•
|
Liquidity risk
, which is the risk to current or anticipated earnings or capital arising from an inability to meet obligations when they come due. Liquidity risk includes the inability to access funding sources or manage fluctuations in funding levels. Liquidity risk also results from the failure to recognize or address changes in market conditions that affect our ability to liquidate assets quickly and with minimal loss in value;
|
•
|
Operational and Legal risk
, which is the risk of loss arising from inadequate or failed internal processes or systems, human errors or misconduct, or adverse external events. Operational losses result from internal fraud, external fraud, inadequate or inappropriate employment practices and workplace safety, failure to meet professional obligations involving customers, products, and business practices, damage to physical assets, business disruption and systems failures, and failures in execution, delivery, and process management. Legal risk includes, but is not limited to, exposure to orders, fines, penalties, or punitive damages resulting from litigation, as well as regulatory actions;
|
•
|
Compliance risk
, which exposes us to money penalties, enforcement actions, or other sanctions as a result of non-conformance with laws, rules, and regulations that apply to the financial services industry;
|
•
|
Strategic risk
, which is defined as risk to current or anticipated earnings, capital, or enterprise value arising from adverse business decisions, improper implementation of business decisions or lack of responsiveness to industry / market changes; and
|
•
|
Reputation risk
, which is the risk that negative publicity regarding an institution’s business practices, whether true or not, will cause a decline in the customer base, costly litigation, or revenue reductions.
|
•
|
A decrease in the demand for loans and other products and services offered by us;
|
•
|
A decrease in customer savings generally and in the demand for savings and investment products offered by us; and
|
•
|
An increase in the number of customers and counterparties who become delinquent, file for protection under bankruptcy laws, or default on their loans or other obligations to us.
|
•
|
adversely affect the interest rates paid or received on, the revenue and expenses associated with or the value of Huntington’s LIBOR-based assets and liabilities, which include certain variable rate loans, Huntington’s Series B preferred stock, certain of Huntington’s junior subordinated debentures, certain of the Bank’s senior notes and certain other securities or financial arrangements;
|
•
|
adversely affect the interest rates paid or received on, the revenue and expenses associated with or the value of other securities or financial arrangements, given LIBOR’s role in determining market interest rates globally;
|
•
|
prompt inquiries or other actions from regulators in respect of Huntington’s preparation and readiness for the replacement of LIBOR with an alternative reference rate; and
|
•
|
result in disputes, litigation or other actions with counterparties regarding the interpretation and enforceability of certain fallback language in LIBOR-based contracts and securities.
|
|
|
|
|
|
|
|
Description
|
|
Location
|
|
Own
|
|
Lease
|
Indianapolis Main
|
|
Indianapolis, IN
|
|
ü
|
|
|
Flint South (own building, lease portion of land, own portion of land)
|
|
Flint, MI
|
|
ü
|
|
ü
|
Flint West (own building, lease land)
|
|
Flint, MI
|
|
ü
|
|
ü
|
Holland Operations Center
|
|
Holland, MI
|
|
|
|
ü
|
Downtown Saginaw
|
|
Saginaw, MI
|
|
ü
|
|
|
Tower Building - Office
|
|
Akron, OH
|
|
ü
|
|
|
Cascade III (own building, lease land)
|
|
Akron, OH
|
|
ü
|
|
ü
|
Operations Center
|
|
Akron, OH
|
|
ü
|
|
|
Cleveland - Public Square (lease a portion of building)
|
|
Cleveland, OH
|
|
|
|
ü
|
Easton - HNB Business Service Center
|
|
Columbus, OH
|
|
ü
|
|
|
Capitol Square
|
|
Columbus, OH
|
|
ü
|
|
|
Gateway Center
|
|
Columbus, OH
|
|
ü
|
|
|
Huntington Center (lease a portion of building)
|
|
Columbus, OH
|
|
|
|
ü
|
Northland Center
|
|
Columbus, OH
|
|
|
|
ü
|
Huntington Plaza
|
|
Columbus, OH
|
|
ü
|
|
|
Crosswoods - Mortgage Group
|
|
Columbus, OH
|
|
|
|
ü
|
Court Street
|
|
Elyria, OH
|
|
ü
|
|
|
Parma NORC
|
|
Parma, OH
|
|
|
|
ü
|
Toledo Corporate Building
|
|
Toledo, OH
|
|
ü
|
|
|
Mahoning Federal Plaza Building
|
|
Youngstown, OH
|
|
ü
|
|
|
New Castle Building
|
|
New Castle, PA
|
|
ü
|
|
|
Pittsburgh Main (lease a portion of building)
|
|
Pittsburgh, PA
|
|
|
|
ü
|
Charleston Main
|
|
Charleston, WV
|
|
|
|
ü
|
|
|
|
|
|
|
|||||
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)
|
|||||
October 1, 2018 to October 31, 2018
|
7,149,221
|
|
|
$
|
14.55
|
|
|
$
|
273,010,029
|
|
November 1, 2018 to November 30, 2018
|
194,400
|
|
|
14.43
|
|
|
270,204,137
|
|
||
December 1, 2018 to December 31, 2018
|
7,622,627
|
|
|
12.23
|
|
|
177,010,035
|
|
||
Total
|
14,966,248
|
|
|
$
|
13.36
|
|
|
$
|
177,010,035
|
|
(1)
|
The reported shares were repurchased pursuant to Huntington’s publicly-announced share repurchase authorization.
|
(2)
|
The number shown represents, as of the end of each period, the approximate dollar value of Common Stock that may yet be purchased under publicly-announced share repurchase authorizations. The shares may be purchased, from time-to-time, depending on market conditions.
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” in the Discussion of Results of Operations for additional discussion regarding these key factors.
|
(2)
|
On an FTE basis assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(3)
|
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax
.
|
(4)
|
Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains. (Non-GAAP)
|
(5)
|
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax.
|
(6)
|
Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax
.
|
(7)
|
Tier 1 common equity, tangible equity, tangible common equity, and tangible assets are non-GAAP financial measures. Additionally, any ratios utilizing these financial measures are also non-GAAP. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. Other companies may calculate these financial measures differently.
|
(8)
|
In accordance with applicable regulatory reporting guidance, we are not required to retrospectively update historical filings for newly adopted accounting principles. On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule.
|
Table 2 - Selected Annual Income Statements (1)
|
|||||||||||||||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
|||||||||||||||||||||||||
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
|
|
Change from 2017
|
|
|
|
Change from 2016
|
|
|
||||||||||||||||
|
2018
|
|
Amount
|
|
Percent
|
|
2017
|
|
Amount
|
|
Percent
|
|
2016
|
||||||||||||
Interest income
|
$
|
3,949
|
|
|
$
|
516
|
|
|
15
|
%
|
|
$
|
3,433
|
|
|
$
|
801
|
|
|
30
|
%
|
|
$
|
2,632
|
|
Interest expense
|
760
|
|
|
329
|
|
|
76
|
|
|
431
|
|
|
168
|
|
|
64
|
|
|
263
|
|
|||||
Net interest income
|
3,189
|
|
|
187
|
|
|
6
|
|
|
3,002
|
|
|
633
|
|
|
27
|
|
|
2,369
|
|
|||||
Provision for credit losses
|
235
|
|
|
34
|
|
|
17
|
|
|
201
|
|
|
10
|
|
|
5
|
|
|
191
|
|
|||||
Net interest income after provision for credit losses
|
2,954
|
|
|
153
|
|
|
5
|
|
|
2,801
|
|
|
623
|
|
|
29
|
|
|
2,178
|
|
|||||
Service charges on deposit accounts
|
364
|
|
|
11
|
|
|
3
|
|
|
353
|
|
|
29
|
|
|
9
|
|
|
324
|
|
|||||
Card and payment processing income
|
224
|
|
|
18
|
|
|
9
|
|
|
206
|
|
|
37
|
|
|
22
|
|
|
169
|
|
|||||
Trust and investment management services
|
171
|
|
|
15
|
|
|
10
|
|
|
156
|
|
|
33
|
|
|
27
|
|
|
123
|
|
|||||
Mortgage banking income
|
108
|
|
|
(23
|
)
|
|
(18
|
)
|
|
131
|
|
|
3
|
|
|
2
|
|
|
128
|
|
|||||
Capital markets fees
|
91
|
|
|
15
|
|
|
20
|
|
|
76
|
|
|
16
|
|
|
27
|
|
|
60
|
|
|||||
Insurance income
|
82
|
|
|
1
|
|
|
1
|
|
|
81
|
|
|
(3
|
)
|
|
(4
|
)
|
|
84
|
|
|||||
Bank owned life insurance income
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
9
|
|
|
16
|
|
|
58
|
|
|||||
Gain on sale of loans and leases
|
55
|
|
|
(1
|
)
|
|
(2
|
)
|
|
56
|
|
|
9
|
|
|
19
|
|
|
47
|
|
|||||
Securities gains (losses)
|
(21
|
)
|
|
(17
|
)
|
|
(425
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
(100
|
)
|
|
—
|
|
|||||
Other income
|
180
|
|
|
(5
|
)
|
|
(3
|
)
|
|
185
|
|
|
28
|
|
|
18
|
|
|
157
|
|
|||||
Total noninterest income
|
1,321
|
|
|
14
|
|
|
1
|
|
|
1,307
|
|
|
157
|
|
|
14
|
|
|
1,150
|
|
|||||
Personnel costs
|
1,559
|
|
|
35
|
|
|
2
|
|
|
1,524
|
|
|
175
|
|
|
13
|
|
|
1,349
|
|
|||||
Outside data processing and other services
|
294
|
|
|
(19
|
)
|
|
(6
|
)
|
|
313
|
|
|
8
|
|
|
3
|
|
|
305
|
|
|||||
Net occupancy
|
184
|
|
|
(28
|
)
|
|
(13
|
)
|
|
212
|
|
|
59
|
|
|
39
|
|
|
153
|
|
|||||
Equipment
|
164
|
|
|
(7
|
)
|
|
(4
|
)
|
|
171
|
|
|
6
|
|
|
4
|
|
|
165
|
|
|||||
Deposit and other insurance expense
|
63
|
|
|
(15
|
)
|
|
(19
|
)
|
|
78
|
|
|
24
|
|
|
44
|
|
|
54
|
|
|||||
Professional services
|
60
|
|
|
(9
|
)
|
|
(13
|
)
|
|
69
|
|
|
(36
|
)
|
|
(34
|
)
|
|
105
|
|
|||||
Marketing
|
53
|
|
|
(7
|
)
|
|
(12
|
)
|
|
60
|
|
|
(3
|
)
|
|
(5
|
)
|
|
63
|
|
|||||
Amortization of intangibles
|
53
|
|
|
(3
|
)
|
|
(5
|
)
|
|
56
|
|
|
26
|
|
|
87
|
|
|
30
|
|
|||||
Other expense
|
217
|
|
|
(14
|
)
|
|
(6
|
)
|
|
231
|
|
|
47
|
|
|
26
|
|
|
184
|
|
|||||
Total noninterest expense
|
2,647
|
|
|
(67
|
)
|
|
(2
|
)
|
|
2,714
|
|
|
306
|
|
|
13
|
|
|
2,408
|
|
|||||
Income before income taxes
|
1,628
|
|
|
234
|
|
|
17
|
|
|
1,394
|
|
|
474
|
|
|
52
|
|
|
920
|
|
|||||
Provision for income taxes
|
235
|
|
|
27
|
|
|
13
|
|
|
208
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|||||
Net income
|
1,393
|
|
|
207
|
|
|
17
|
|
|
1,186
|
|
|
474
|
|
|
67
|
|
|
712
|
|
|||||
Dividends on preferred shares
|
70
|
|
|
(6
|
)
|
|
(8
|
)
|
|
76
|
|
|
11
|
|
|
17
|
|
|
65
|
|
|||||
Net income applicable to common shares
|
$
|
1,323
|
|
|
$
|
213
|
|
|
19
|
%
|
|
$
|
1,110
|
|
|
$
|
463
|
|
|
72
|
%
|
|
$
|
647
|
|
Average common shares—basic
|
1,081,542
|
|
|
(3,144
|
)
|
|
—
|
%
|
|
1,084,686
|
|
|
180,248
|
|
|
20
|
%
|
|
904,438
|
|
|||||
Average common shares—diluted
|
1,105,985
|
|
|
(30,201
|
)
|
|
(3
|
)
|
|
1,136,186
|
|
|
217,396
|
|
|
24
|
|
|
918,790
|
|
|||||
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income—basic
|
$
|
1.22
|
|
|
$
|
0.20
|
|
|
20
|
%
|
|
$
|
1.02
|
|
|
$
|
0.30
|
|
|
42
|
%
|
|
$
|
0.72
|
|
Net income—diluted
|
1.20
|
|
|
0.20
|
|
|
20
|
|
|
1.00
|
|
|
0.30
|
|
|
43
|
|
|
0.70
|
|
|||||
Cash dividends declared
|
0.50
|
|
|
0.15
|
|
|
43
|
|
|
0.35
|
|
|
0.06
|
|
|
21
|
|
|
0.29
|
|
|||||
Revenue—FTE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
3,189
|
|
|
$
|
187
|
|
|
6
|
%
|
|
$
|
3,002
|
|
|
$
|
633
|
|
|
27
|
%
|
|
$
|
2,369
|
|
FTE adjustment
|
30
|
|
|
(20
|
)
|
|
(40
|
)
|
|
50
|
|
|
7
|
|
|
16
|
|
|
43
|
|
|||||
Net interest income
(2)
|
3,219
|
|
|
167
|
|
|
5
|
|
|
3,052
|
|
|
640
|
|
|
27
|
|
|
2,412
|
|
|||||
Noninterest income
|
1,321
|
|
|
14
|
|
|
1
|
|
|
1,307
|
|
|
157
|
|
|
14
|
|
|
1,150
|
|
|||||
Total revenue
(2)
|
$
|
4,540
|
|
|
$
|
181
|
|
|
4
|
%
|
|
$
|
4,359
|
|
|
$
|
797
|
|
|
22
|
%
|
|
$
|
3,562
|
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to “Significant Items” in the Discussion of Results of Operations.
|
(2)
|
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
1.
|
Mergers and Acquisitions.
Significant events relating to mergers and acquisitions, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2017, $154 million of noninterest expense and $2 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.09 per common share in 2017.
|
•
|
During 2016, $282 million of noninterest expense and $1 million of noninterest income was recorded related to the acquisition of FirstMerit. This resulted in a negative impact of $0.20 per common share in 2016.
|
2.
|
Federal tax reform-related tax benefit.
Significant events relating to federal tax reform-related tax benefits, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2017, $123 million of federal tax reform-related tax benefit was recorded as provision for income taxes. This resulted in a positive impact of $0.11 per common share in 2017.
|
3.
|
Litigation Reserve.
Significant events relating to our litigation reserve, and the impacts of those events on our reported results, were as follows:
|
•
|
During 2016, a $42 million reduction to litigation reserves was recorded as other noninterest expense. This resulted in a positive impact of $0.03 per common share in 2016.
|
(1)
|
Based upon the annual average outstanding diluted common shares.
|
(1)
|
The change in interest rates due to both rate and volume has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.
|
(2)
|
Calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(1)
|
FTE yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(2)
|
Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018.
|
(3)
|
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.
|
Table 5 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)
|
||||||||||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest Income / Expense
|
|
Average Rate (4)
|
|||||||||||||||||
Fully-taxable equivalent basis (1)
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in Federal Reserve Bank (2)
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2.33
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest-bearing deposits in banks
|
2
|
|
|
2
|
|
|
—
|
|
|
1.97
|
|
|
1.56
|
%
|
|
0.44
|
|
|||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading account securities
|
1
|
|
|
—
|
|
|
—
|
|
|
0.80
|
|
|
0.18
|
|
|
0.42
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable
|
280
|
|
|
283
|
|
|
210
|
|
|
2.61
|
|
|
2.38
|
|
|
2.36
|
|
|||
Tax-exempt
|
122
|
|
|
118
|
|
|
91
|
|
|
3.53
|
|
|
3.71
|
|
|
3.35
|
|
|||
Total available-for-sale securities
|
402
|
|
|
401
|
|
|
301
|
|
|
2.84
|
|
|
2.66
|
|
|
2.60
|
|
|||
Held-to-maturity securities—taxable
|
211
|
|
|
193
|
|
|
138
|
|
|
2.44
|
|
|
2.38
|
|
|
2.43
|
|
|||
Other securities
|
25
|
|
|
20
|
|
|
12
|
|
|
4.34
|
|
|
3.42
|
|
|
2.95
|
|
|||
Total securities
|
639
|
|
|
614
|
|
|
451
|
|
|
2.72
|
|
|
2.57
|
|
|
2.54
|
|
|||
Loans held for sale
|
26
|
|
|
21
|
|
|
35
|
|
|
4.15
|
|
|
3.75
|
|
|
3.27
|
|
|||
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
1,337
|
|
|
1,142
|
|
|
879
|
|
|
4.63
|
|
|
4.12
|
|
|
3.71
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
60
|
|
|
52
|
|
|
40
|
|
|
5.26
|
|
|
4.36
|
|
|
3.72
|
|
|||
Commercial
|
283
|
|
|
240
|
|
|
176
|
|
|
4.67
|
|
|
4.00
|
|
|
3.57
|
|
|||
Commercial real estate
|
343
|
|
|
292
|
|
|
216
|
|
|
4.77
|
|
|
4.06
|
|
|
3.60
|
|
|||
Total commercial
|
1,680
|
|
|
1,434
|
|
|
1,095
|
|
|
4.66
|
|
|
4.11
|
|
|
3.69
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Automobile loans and leases
|
456
|
|
|
412
|
|
|
351
|
|
|
3.71
|
|
|
3.58
|
|
|
3.32
|
|
|||
Home equity
|
512
|
|
|
463
|
|
|
381
|
|
|
5.16
|
|
|
4.63
|
|
|
4.21
|
|
|||
Residential mortgage
|
371
|
|
|
301
|
|
|
244
|
|
|
3.74
|
|
|
3.65
|
|
|
3.63
|
|
|||
RV and marine finance
|
145
|
|
|
118
|
|
|
39
|
|
|
5.09
|
|
|
5.46
|
|
|
5.67
|
|
|||
Other consumer
|
145
|
|
|
118
|
|
|
79
|
|
|
12.04
|
|
|
11.53
|
|
|
10.62
|
|
|||
Total consumer
|
1,629
|
|
|
1,412
|
|
|
1,094
|
|
|
4.50
|
|
|
4.28
|
|
|
3.94
|
|
|||
Total loans and leases
|
3,309
|
|
|
2,846
|
|
|
2,189
|
|
|
4.58
|
|
|
4.19
|
|
|
3.81
|
|
|||
Total earning assets
|
$
|
3,979
|
|
|
$
|
3,483
|
|
|
$
|
2,675
|
|
|
4.12
|
%
|
|
3.77
|
%
|
|
3.50
|
%
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits—noninterest-bearing
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Demand deposits—interest-bearing
|
78
|
|
|
38
|
|
|
11
|
|
|
0.40
|
|
|
0.21
|
|
|
0.10
|
|
|||
Total demand deposits
|
78
|
|
|
38
|
|
|
11
|
|
|
0.20
|
|
|
0.10
|
|
|
0.04
|
|
|||
Money market deposits
|
148
|
|
|
66
|
|
|
46
|
|
|
0.69
|
|
|
0.33
|
|
|
0.24
|
|
|||
Savings and other domestic deposits
|
24
|
|
|
24
|
|
|
15
|
|
|
0.22
|
|
|
0.21
|
|
|
0.19
|
|
|||
Core certificates of deposit
|
72
|
|
|
13
|
|
|
13
|
|
|
1.72
|
|
|
0.60
|
|
|
0.56
|
|
|||
Total core deposits
|
322
|
|
|
141
|
|
|
85
|
|
|
0.57
|
|
|
0.27
|
|
|
0.21
|
|
|||
Other domestic time deposits of $250,000 or more
|
3
|
|
|
2
|
|
|
2
|
|
|
1.25
|
|
|
0.52
|
|
|
0.40
|
|
|||
Brokered time deposits and negotiable CDs
|
66
|
|
|
37
|
|
|
15
|
|
|
1.88
|
|
|
1.00
|
|
|
0.43
|
|
|||
Deposits in foreign offices
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
|||
Total deposits
|
391
|
|
|
180
|
|
|
102
|
|
|
0.65
|
|
|
0.33
|
|
|
0.23
|
|
|||
Short-term borrowings
|
48
|
|
|
25
|
|
|
5
|
|
|
1.74
|
|
|
0.86
|
|
|
0.34
|
|
|||
Long-term debt
|
321
|
|
|
226
|
|
|
156
|
|
|
3.57
|
|
|
2.56
|
|
|
1.93
|
|
|||
Total interest-bearing liabilities
|
760
|
|
|
431
|
|
|
263
|
|
|
1.06
|
|
|
0.64
|
|
|
0.48
|
|
|||
Net interest income
|
$
|
3,219
|
|
|
$
|
3,052
|
|
|
$
|
2,412
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest rate spread
|
|
|
|
|
|
|
3.06
|
|
|
3.13
|
|
|
3.02
|
|
||||||
Impact of noninterest-bearing funds on margin
|
|
|
|
|
|
|
0.27
|
|
|
0.17
|
|
|
0.14
|
|
||||||
Net interest margin
|
|
|
|
|
|
|
3.33
|
%
|
|
3.30
|
%
|
|
3.16
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate and a 35% tax rate for periods prior to January 1, 2018.
|
(2)
|
Deposits in Federal Reserve Bank were treated as nonearning assets prior to 4Q 2018 and associated interest income was not material.
|
(3)
|
For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.
|
(4)
|
Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
|
Table 6 - Noninterest Income
|
|||||||||||||||||||||||||
|
Year Ended December 31,
|
||||||||||||||||||||||||
(dollar amounts in millions)
|
|
|
Change from 2017
|
|
|
|
Change from 2016
|
|
|
||||||||||||||||
|
2018
|
|
Amount
|
|
Percent
|
|
2017
|
|
Amount
|
|
Percent
|
|
2016
|
||||||||||||
Service charges on deposit accounts
|
$
|
364
|
|
|
$
|
11
|
|
|
3
|
%
|
|
$
|
353
|
|
|
$
|
29
|
|
|
9
|
%
|
|
$
|
324
|
|
Card and payment processing income
|
224
|
|
|
18
|
|
|
9
|
|
|
206
|
|
|
37
|
|
|
22
|
|
|
169
|
|
|||||
Trust and investment management services
|
171
|
|
|
15
|
|
|
10
|
|
|
156
|
|
|
33
|
|
|
27
|
|
|
123
|
|
|||||
Mortgage banking income
|
108
|
|
|
(23
|
)
|
|
(18
|
)
|
|
131
|
|
|
3
|
|
|
2
|
|
|
128
|
|
|||||
Capital markets fees
|
91
|
|
|
15
|
|
|
20
|
|
|
76
|
|
|
16
|
|
|
27
|
|
|
60
|
|
|||||
Insurance income
|
82
|
|
|
1
|
|
|
1
|
|
|
81
|
|
|
(3
|
)
|
|
(4
|
)
|
|
84
|
|
|||||
Bank owned life insurance income
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
9
|
|
|
16
|
|
|
58
|
|
|||||
Gain on sale of loans and leases
|
55
|
|
|
(1
|
)
|
|
(2
|
)
|
|
56
|
|
|
9
|
|
|
19
|
|
|
47
|
|
|||||
Securities gains (losses)
|
(21
|
)
|
|
(17
|
)
|
|
(425
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
(100
|
)
|
|
—
|
|
|||||
Other income
|
180
|
|
|
(5
|
)
|
|
(3
|
)
|
|
185
|
|
|
28
|
|
|
18
|
|
|
157
|
|
|||||
Total noninterest income
|
$
|
1,321
|
|
|
$
|
14
|
|
|
1
|
%
|
|
$
|
1,307
|
|
|
$
|
157
|
|
|
14
|
%
|
|
$
|
1,150
|
|
Impact of Significant Items:
|
|
|
|
|
|
|
|
||||||
|
Year Ended December 31,
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
|
|
2017
|
|
2016
|
||||||
Personnel costs
|
$
|
—
|
|
|
|
|
$
|
42
|
|
|
$
|
76
|
|
Outside data processing and other services
|
—
|
|
|
|
|
24
|
|
|
46
|
|
|||
Net occupancy
|
—
|
|
|
|
|
52
|
|
|
15
|
|
|||
Equipment
|
—
|
|
|
|
|
16
|
|
|
25
|
|
|||
Professional services
|
—
|
|
|
|
|
10
|
|
|
58
|
|
|||
Marketing
|
—
|
|
|
|
|
1
|
|
|
5
|
|
|||
Other expense
|
—
|
|
|
|
|
9
|
|
|
14
|
|
|||
Total impact of significant items on
noninterest expense
|
$
|
—
|
|
|
|
|
$
|
154
|
|
|
$
|
239
|
|
•
|
The
Audit Committee
oversees the integrity of the consolidated financial statements, including policies, procedures, and practices regarding the preparation of financial statements, the financial reporting process, disclosures, and internal control over financial reporting. The Audit Committee also provides assistance to the board in overseeing the internal audit division and the independent registered public accounting firm’s qualifications and independence; compliance with our Financial Code of Ethics for the chief executive officer and senior financial officers; and compliance with corporate securities trading policies.
|
•
|
The
Risk Oversight Committee (ROC)
assists the board of directors in overseeing management of material risks, the approval and monitoring of the Company’s capital position and plan supporting our overall aggregate moderate-to-low risk profile, the risk governance structure, compliance with applicable laws and regulations, and determining adherence to the board’s stated risk appetite. The committee has oversight responsibility with respect to the full range of inherent risks: market, credit, liquidity, legal, compliance/regulatory, operational, strategic, and reputational. The ROC provides assistance to the Board in overseeing the credit review division. This committee also oversees our capital management and planning process, ensures that the amount and quality of capital are adequate in relation to expected and unexpected risks, and that our capital levels exceed “well-capitalized” requirements.
|
•
|
The
Technology Committee
assists the board of directors in fulfilling its oversight responsibilities with respect to all technology, cyber security, and third-party risk management strategies and plans. The committee is charged with evaluating Huntington’s capability to properly perform all technology functions necessary for its business plan, including projected growth, technology capacity, planning, operational execution, product development, and management capacity. The committee provides oversight of technology investments and plans to drive efficiency as well as to meet defined standards for risk, information security, and redundancy. The Committee oversees the allocation of technology costs and ensures that they are understood by the board of directors. The Technology Committee monitors and evaluates innovation and technology trends that may affect the Company’s strategic plans, including monitoring of overall industry trends. The Technology Committee reviews and provides oversight of the Company’s continuity and disaster recovery planning and preparedness.
|
Table 9 - Loan and Lease Portfolio by Industry Type
|
|
|
|
|
|
|
|
||||||
(dollar amounts in millions)
|
December 31,
2018 |
|
December 31,
2017 |
||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
||||||
Real estate and rental and leasing
|
$
|
6,964
|
|
|
9
|
%
|
|
$
|
7,378
|
|
|
11
|
%
|
Retail trade (1)
|
5,337
|
|
|
7
|
|
|
4,886
|
|
|
7
|
|
||
Manufacturing
|
5,140
|
|
|
7
|
|
|
4,791
|
|
|
7
|
|
||
Finance and insurance
|
3,377
|
|
|
5
|
|
|
3,044
|
|
|
4
|
|
||
Wholesale trade
|
2,830
|
|
|
4
|
|
|
2,291
|
|
|
3
|
|
||
Health care and social assistance
|
2,533
|
|
|
3
|
|
|
2,664
|
|
|
4
|
|
||
Accommodation and food services
|
1,709
|
|
|
2
|
|
|
1,617
|
|
|
2
|
|
||
Professional, scientific, and technical services
|
1,344
|
|
|
2
|
|
|
1,257
|
|
|
2
|
|
||
Transportation and warehousing
|
1,320
|
|
|
2
|
|
|
1,243
|
|
|
2
|
|
||
Other services
|
1,290
|
|
|
2
|
|
|
1,296
|
|
|
2
|
|
||
Mining, quarrying, and oil and gas extraction
|
1,286
|
|
|
2
|
|
|
694
|
|
|
1
|
|
||
Construction
|
924
|
|
|
1
|
|
|
976
|
|
|
1
|
|
||
Admin./Support/Waste Mgmt. and Remediation Services
|
737
|
|
|
1
|
|
|
561
|
|
|
1
|
|
||
Arts, entertainment, and recreation
|
599
|
|
|
1
|
|
|
593
|
|
|
1
|
|
||
Educational services
|
473
|
|
|
1
|
|
|
504
|
|
|
1
|
|
||
Utilities
|
454
|
|
|
1
|
|
|
389
|
|
|
1
|
|
||
Information
|
441
|
|
|
1
|
|
|
467
|
|
|
1
|
|
||
Public administration
|
253
|
|
|
—
|
|
|
255
|
|
|
—
|
|
||
Unclassified/Other
|
174
|
|
|
—
|
|
|
163
|
|
|
—
|
|
||
Agriculture, forestry, fishing and hunting
|
174
|
|
|
—
|
|
|
172
|
|
|
—
|
|
||
Management of companies and enterprises
|
88
|
|
|
—
|
|
|
91
|
|
|
—
|
|
||
Total commercial loans and leases by industry category
|
37,447
|
|
|
51
|
%
|
|
35,332
|
|
|
51
|
%
|
||
Automobile
|
12,429
|
|
|
16
|
|
|
12,100
|
|
|
17
|
|
||
Home Equity
|
9,722
|
|
|
13
|
|
|
10,099
|
|
|
14
|
|
||
Residential mortgage
|
10,728
|
|
|
14
|
|
|
9,026
|
|
|
13
|
|
||
RV and marine finance
|
3,254
|
|
|
4
|
|
|
2,438
|
|
|
3
|
|
||
Other consumer loans
|
1,320
|
|
|
2
|
|
|
1,122
|
|
|
2
|
|
||
Total loans and leases
|
$
|
74,900
|
|
|
100
|
%
|
|
$
|
70,117
|
|
|
100
|
%
|
(1)
|
Amounts include
$3.6 billion
and
$3.2 billion
of auto dealer services loans at
December 31, 2018
and
December 31, 2017
, respectively.
|
(1)
|
Other nonperforming assets at December 31, 2018 includes certain nonaccrual loans held-for-sale. Amounts prior to December 31, 2018 includes certain impaired investment securities.
|
(2)
|
Nonperforming assets divided by the sum of loans and leases, other real estate owned, and other NPAs.
|
(1)
|
Amounts include Huntington Technology Finance administrative lease delinquencies and accruing purchase impaired loans related to acquisitions.
|
(1)
|
Percentages represent the percentage of each loan and lease category to total loans and leases.
|
Table 15 - Net Loan and Lease Charge-offs
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollar amounts in millions)
|
Year Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Net charge-offs by loan and lease type:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
32
|
|
|
$
|
42
|
|
|
$
|
45
|
|
|
$
|
28
|
|
|
$
|
32
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
(1
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
2
|
|
|||||
Commercial
|
(17
|
)
|
|
(6
|
)
|
|
(24
|
)
|
|
(15
|
)
|
|
(11
|
)
|
|||||
Commercial real estate
|
(18
|
)
|
|
(11
|
)
|
|
(26
|
)
|
|
(16
|
)
|
|
(9
|
)
|
|||||
Total commercial
|
14
|
|
|
31
|
|
|
19
|
|
|
12
|
|
|
23
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
34
|
|
|
42
|
|
|
32
|
|
|
20
|
|
|
17
|
|
|||||
Home equity
|
6
|
|
|
5
|
|
|
9
|
|
|
20
|
|
|
37
|
|
|||||
Residential mortgage
|
6
|
|
|
6
|
|
|
6
|
|
|
10
|
|
|
20
|
|
|||||
RV and marine finance
|
9
|
|
|
10
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
76
|
|
|
65
|
|
|
41
|
|
|
26
|
|
|
28
|
|
|||||
Total consumer
|
131
|
|
|
128
|
|
|
90
|
|
|
76
|
|
|
102
|
|
|||||
Total net charge-offs
|
$
|
145
|
|
|
$
|
159
|
|
|
$
|
109
|
|
|
$
|
88
|
|
|
$
|
125
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs - annualized percentages:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
0.11
|
%
|
|
0.15
|
%
|
|
0.19
|
%
|
|
0.14
|
%
|
|
0.18
|
%
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
(0.13
|
)
|
|
(0.36
|
)
|
|
(0.19
|
)
|
|
(0.08
|
)
|
|
0.16
|
|
|||||
Commercial
|
(0.26
|
)
|
|
(0.10
|
)
|
|
(0.49
|
)
|
|
(0.37
|
)
|
|
(0.25
|
)
|
|||||
Commercial real estate
|
(0.24
|
)
|
|
(0.15
|
)
|
|
(0.44
|
)
|
|
(0.32
|
)
|
|
(0.19
|
)
|
|||||
Total commercial
|
0.04
|
|
|
0.09
|
|
|
0.06
|
|
|
0.05
|
|
|
0.10
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
0.27
|
|
|
0.36
|
|
|
0.30
|
|
|
0.23
|
|
|
0.23
|
|
|||||
Home equity
|
0.06
|
|
|
0.05
|
|
|
0.10
|
|
|
0.23
|
|
|
0.44
|
|
|||||
Residential mortgage
|
0.06
|
|
|
0.08
|
|
|
0.09
|
|
|
0.17
|
|
|
0.35
|
|
|||||
RV and marine finance
|
0.32
|
|
|
0.48
|
|
|
0.33
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
6.27
|
|
|
6.36
|
|
|
5.53
|
|
|
5.44
|
|
|
6.99
|
|
|||||
Total consumer
|
0.36
|
|
|
0.39
|
|
|
0.32
|
|
|
0.32
|
|
|
0.46
|
|
|||||
Net charge-offs as a % of average loans
|
0.20
|
%
|
|
0.23
|
%
|
|
0.19
|
%
|
|
0.18
|
%
|
|
0.27
|
%
|
(1)
|
Consists of FHLB and FRB restricted stock holding carried at par.
|
(2)
|
The average duration assumes a market driven prepayment rate on securities subject to prepayment.
|
(1)
|
Weighted average yields were calculated using amortized cost on a fully-taxable equivalent basis, assuming a 21% tax rate where applicable.
|
Table 21 - Deposit Composition
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
At December 31,
|
|||||||||||||||||||
(dollar amounts in millions)
|
2018 (1)
|
|
2017
|
|
2016
|
|||||||||||||||
By Type:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits—noninterest-bearing
|
$
|
21,783
|
|
|
26
|
%
|
|
$
|
21,546
|
|
|
28
|
%
|
|
$
|
22,836
|
|
|
30
|
%
|
Demand deposits—interest-bearing
|
20,042
|
|
|
24
|
|
|
18,001
|
|
|
23
|
|
|
15,676
|
|
|
21
|
|
|||
Money market deposits
|
22,721
|
|
|
27
|
|
|
20,690
|
|
|
27
|
|
|
18,407
|
|
|
24
|
|
|||
Savings and other domestic deposits
|
10,451
|
|
|
12
|
|
|
11,270
|
|
|
15
|
|
|
11,975
|
|
|
16
|
|
|||
Core certificates of deposit
|
5,924
|
|
|
7
|
|
|
1,934
|
|
|
3
|
|
|
2,535
|
|
|
3
|
|
|||
Total core deposits:
|
80,921
|
|
|
96
|
|
|
73,441
|
|
|
96
|
|
|
71,429
|
|
|
94
|
|
|||
Other domestic deposits of $250,000 or more
|
337
|
|
|
—
|
|
|
239
|
|
|
—
|
|
|
395
|
|
|
1
|
|
|||
Brokered deposits and negotiable CDs
|
3,516
|
|
|
4
|
|
|
3,361
|
|
|
4
|
|
|
3,784
|
|
|
5
|
|
|||
Total deposits
|
$
|
84,774
|
|
|
100
|
%
|
|
$
|
77,041
|
|
|
100
|
%
|
|
$
|
75,608
|
|
|
100
|
%
|
Total core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
$
|
37,268
|
|
|
46
|
%
|
|
$
|
34,273
|
|
|
47
|
%
|
|
$
|
31,887
|
|
|
45
|
%
|
Consumer
|
43,653
|
|
|
54
|
|
|
39,168
|
|
|
53
|
|
|
39,542
|
|
|
55
|
|
|||
Total core deposits
|
$
|
80,921
|
|
|
100
|
%
|
|
$
|
73,441
|
|
|
100
|
%
|
|
$
|
71,429
|
|
|
100
|
%
|
(1)
|
December 31, 2018 includes $210 million of noninterest-bearing and $662 million of interesting bearing deposits classified as held-for-sale.
|
(1)
|
Amounts do not include associated interest payments.
|
(1)
|
Other intangible assets are net of deferred tax liability.
|
Table 26 - Regulatory Capital Data
|
|
|
|
|
||||
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
|
Basel III
|
||||||
|
|
2018
|
|
2017
|
||||
Total risk-weighted assets
|
Consolidated
|
$
|
85,687
|
|
|
$
|
80,340
|
|
|
Bank
|
85,717
|
|
|
80,383
|
|
||
CET 1 risk-based capital
|
Consolidated
|
8,271
|
|
|
8,041
|
|
||
|
Bank
|
8,732
|
|
|
8,856
|
|
||
Tier 1 risk-based capital
|
Consolidated
|
9,478
|
|
|
9,110
|
|
||
|
Bank
|
9,611
|
|
|
9,727
|
|
||
Tier 2 risk-based capital
|
Consolidated
|
1,644
|
|
|
1,647
|
|
||
|
Bank
|
1,893
|
|
|
1,790
|
|
||
Total risk-based capital
|
Consolidated
|
11,122
|
|
|
10,757
|
|
||
|
Bank
|
11,504
|
|
|
11,517
|
|
||
CET 1 risk-based capital ratio
|
Consolidated
|
9.65
|
%
|
|
10.01
|
%
|
||
|
Bank
|
10.19
|
|
|
11.02
|
|
||
Tier 1 risk-based capital ratio
|
Consolidated
|
11.06
|
|
|
11.34
|
|
||
|
Bank
|
11.21
|
|
|
12.10
|
|
||
Total risk-based capital ratio
|
Consolidated
|
12.98
|
|
|
13.39
|
|
||
|
Bank
|
13.42
|
|
|
14.33
|
|
||
Tier 1 leverage ratio
|
Consolidated
|
9.10
|
|
|
9.09
|
|
||
|
Bank
|
9.23
|
|
|
9.70
|
|
Consumer and Business Banking
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Table 28 - Key Performance Indicators for Consumer and Business Banking
|
||||||||||||||||||
|
Year Ended December 31,
|
|
Change from 2017
|
|
|
|||||||||||||
(dollar amounts in millions unless otherwise noted)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
2016
|
|||||||||
Net interest income
|
$
|
1,685
|
|
|
$
|
1,549
|
|
|
$
|
136
|
|
|
9
|
%
|
|
$
|
1,224
|
|
Provision for credit losses
|
141
|
|
|
108
|
|
|
33
|
|
|
31
|
|
|
68
|
|
||||
Noninterest income
|
738
|
|
|
735
|
|
|
3
|
|
|
—
|
|
|
649
|
|
||||
Noninterest expense
|
1,696
|
|
|
1,647
|
|
|
49
|
|
|
3
|
|
|
1,339
|
|
||||
Provision for income taxes
|
123
|
|
|
185
|
|
|
(62
|
)
|
|
(34
|
)
|
|
163
|
|
||||
Net income
|
$
|
463
|
|
|
$
|
344
|
|
|
$
|
119
|
|
|
35
|
%
|
|
$
|
303
|
|
Number of employees (average full-time equivalent)
|
8,355
|
|
|
8,616
|
|
|
(261
|
)
|
|
(3
|
)%
|
|
7,466
|
|
||||
Total average assets
|
$
|
26,861
|
|
|
$
|
25,656
|
|
|
$
|
1,205
|
|
|
5
|
|
|
$
|
21,317
|
|
Total average loans/leases
|
21,866
|
|
|
20,744
|
|
|
1,122
|
|
|
5
|
|
|
17,861
|
|
||||
Total average deposits
|
47,827
|
|
|
45,287
|
|
|
2,540
|
|
|
6
|
|
|
36,652
|
|
||||
Net interest margin
|
3.62
|
%
|
|
3.52
|
%
|
|
0.10
|
%
|
|
3
|
|
|
3.42
|
%
|
||||
NCOs
|
$
|
108
|
|
|
$
|
104
|
|
|
$
|
4
|
|
|
4
|
|
|
$
|
74
|
|
NCOs as a % of average loans and leases
|
0.50
|
%
|
|
0.50
|
%
|
|
—
|
%
|
|
—
|
|
|
0.42
|
%
|
Commercial Banking
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Table 29 - Key Performance Indicators for Commercial Banking
|
||||||||||||||||||
|
Year Ended December 31,
|
|
Change from 2017
|
|
|
|||||||||||||
(dollar amounts in millions unless otherwise noted)
|
2018
|
|
2017
|
|
Amount
|
|
Percent
|
|
2016
|
|||||||||
Net interest income
|
$
|
938
|
|
|
$
|
901
|
|
|
$
|
37
|
|
|
4
|
%
|
|
$
|
717
|
|
Provision for credit losses
|
38
|
|
|
30
|
|
|
8
|
|
|
27
|
|
|
79
|
|
||||
Noninterest income
|
313
|
|
|
278
|
|
|
35
|
|
|
13
|
|
|
245
|
|
||||
Noninterest expense
|
513
|
|
|
474
|
|
|
39
|
|
|
8
|
|
|
397
|
|
||||
Provision for income taxes
|
147
|
|
|
236
|
|
|
(89
|
)
|
|
(38
|
)
|
|
170
|
|
||||
Net income
|
$
|
553
|
|
|
$
|
439
|
|
|
$
|
114
|
|
|
26
|
%
|
|
$
|
316
|
|
Number of employees (average full-time equivalent)
|
1,266
|
|
|
1,227
|
|
|
39
|
|
|
3
|
%
|
|
1,075
|
|
||||
Total average assets
|
$
|
33,178
|
|
|
$
|
31,322
|
|
|
$
|
1,856
|
|
|
6
|
|
|
$
|
26,894
|
|
Total average loans/leases
|
26,301
|
|
|
25,259
|
|
|
1,042
|
|
|
4
|
|
|
21,278
|
|
||||
Total average deposits
|
22,216
|
|
|
21,175
|
|
|
1,041
|
|
|
5
|
|
|
17,349
|
|
||||
Net interest margin
|
3.26
|
%
|
|
3.34
|
%
|
|
(0.08
|
)%
|
|
(2
|
)
|
|
3.11
|
%
|
||||
NCOs
|
$
|
(7
|
)
|
|
$
|
1
|
|
|
$
|
(8
|
)
|
|
(800
|
)
|
|
$
|
2
|
|
NCOs as a % of average loans and leases
|
(0.03
|
)%
|
|
—
|
%
|
|
(0.03
|
)%
|
|
(100
|
)
|
|
0.01
|
%
|
Table 32 - Significant Items Influencing Earnings Performance Comparison
|
|||||||
(dollar amounts in millions, except per share data)
|
|
|
|
||||
|
|
|
|
||||
Three Months Ended:
|
Amount
|
|
EPS (1)
|
||||
December 31, 2018—Net income
|
$
|
334
|
|
|
|
||
Earnings per share, after-tax
|
|
|
$
|
0.29
|
|
||
|
|
|
|
||||
|
Amount
|
|
EPS (1)
|
||||
December 31, 2017—Net income
|
$
|
432
|
|
|
|
||
Earnings per share, after-tax
|
|
|
$
|
0.37
|
|
||
|
|
|
|
||||
Federal tax reform-related tax benefit
|
$
|
—
|
|
|
|
||
Tax impact
|
123
|
|
|
|
|||
Federal tax reform-related tax benefit, after-tax
|
$
|
123
|
|
|
$
|
0.11
|
|
(1)
|
Based on average outstanding diluted common shares.
|
Table 37 - Selected Quarterly Financial Information (1)
|
|||||||||||||||
|
Three Months Ended
|
||||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
2018
|
|
2018
|
|
2018
|
|
2018
|
||||||||
Interest income
|
$
|
1,056
|
|
|
$
|
1,007
|
|
|
$
|
972
|
|
|
$
|
914
|
|
Interest expense
|
223
|
|
|
205
|
|
|
188
|
|
|
144
|
|
||||
Net interest income
|
833
|
|
|
802
|
|
|
784
|
|
|
770
|
|
||||
Provision for credit losses
|
60
|
|
|
53
|
|
|
56
|
|
|
66
|
|
||||
Net interest income after provision for credit losses
|
773
|
|
|
749
|
|
|
728
|
|
|
704
|
|
||||
Total noninterest income
|
329
|
|
|
342
|
|
|
336
|
|
|
314
|
|
||||
Total noninterest expense
|
711
|
|
|
651
|
|
|
652
|
|
|
633
|
|
||||
Income before income taxes
|
391
|
|
|
440
|
|
|
412
|
|
|
385
|
|
||||
Provision (benefit) for income taxes
|
57
|
|
|
62
|
|
|
57
|
|
|
59
|
|
||||
Net income
|
334
|
|
|
378
|
|
|
355
|
|
|
326
|
|
||||
Dividends on preferred shares
|
19
|
|
|
18
|
|
|
21
|
|
|
12
|
|
||||
Net income applicable to common shares
|
$
|
315
|
|
|
$
|
360
|
|
|
$
|
334
|
|
|
$
|
314
|
|
Common shares outstanding
|
|
|
|
|
|
|
|
||||||||
Average—basic
|
1,054,460
|
|
|
1,084,536
|
|
|
1,103,337
|
|
|
1,083,836
|
|
||||
Average—diluted (2)
|
1,073,055
|
|
|
1,103,740
|
|
|
1,122,612
|
|
|
1,124,778
|
|
||||
Ending
|
1,046,767
|
|
|
1,061,529
|
|
|
1,104,227
|
|
|
1,101,796
|
|
||||
Book value per common share
|
$
|
9.46
|
|
|
$
|
9.17
|
|
|
$
|
9.30
|
|
|
$
|
9.17
|
|
Tangible book value per common share (3)
|
7.34
|
|
|
7.06
|
|
|
7.27
|
|
|
7.12
|
|
||||
Per common share
|
|
|
|
|
|
|
|
||||||||
Net income—basic
|
$
|
0.30
|
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.29
|
|
Net income—diluted
|
0.29
|
|
|
0.33
|
|
|
0.30
|
|
|
0.28
|
|
||||
Return on average total assets
|
1.25
|
%
|
|
1.42
|
%
|
|
1.36
|
%
|
|
1.27
|
%
|
||||
Return on average common shareholders’ equity
|
12.9
|
|
|
14.3
|
|
|
13.2
|
|
|
13.0
|
|
||||
Return on average tangible common shareholders’ equity (4)
|
17.3
|
|
|
19.0
|
|
|
17.6
|
|
|
17.5
|
|
||||
Efficiency ratio (5)
|
58.7
|
|
|
55.3
|
|
|
56.6
|
|
|
56.8
|
|
||||
Effective tax rate
|
14.6
|
|
|
14.1
|
|
|
13.8
|
|
|
15.3
|
|
||||
Margin analysis-as a % of average earning assets (6)
|
|
|
|
|
|
|
|
||||||||
Interest income (6)
|
4.34
|
%
|
|
4.16
|
%
|
|
4.07
|
%
|
|
3.91
|
%
|
||||
Interest expense
|
0.93
|
|
|
0.84
|
|
|
0.78
|
|
|
0.61
|
|
||||
Net interest margin (6)
|
3.41
|
%
|
|
3.32
|
%
|
|
3.29
|
%
|
|
3.30
|
%
|
||||
Revenue—FTE
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
833
|
|
|
$
|
802
|
|
|
$
|
784
|
|
|
$
|
770
|
|
FTE adjustment
|
8
|
|
|
8
|
|
|
7
|
|
|
7
|
|
||||
Net interest income (6)
|
841
|
|
|
810
|
|
|
791
|
|
|
777
|
|
||||
Noninterest income
|
329
|
|
|
342
|
|
|
336
|
|
|
314
|
|
||||
Total revenue (6)
|
$
|
1,170
|
|
|
$
|
1,152
|
|
|
$
|
1,127
|
|
|
$
|
1,091
|
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the Significant Items section for additional discussion regarding these items.
|
(2)
|
Weighted average diluted shares outstanding for the quarterly period ending March 31, 2018, includes the impact of the convertible preferred stock issued in April of 2008.
|
(3)
|
Other intangible assets are net of deferred tax liability.
|
(4)
|
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability
.
|
(5)
|
Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
|
(6)
|
Presented on a FTE basis assuming a 21% tax rate.
|
(7)
|
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax.
|
(8)
|
Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax
.
|
(9)
|
Tangible equity, tangible common equity, and tangible assets are non-GAAP financial measures. Additionally, any ratios utilizing these financial measures are also non-GAAP. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. Other companies may calculate these financial measures differently.
|
(1)
|
Comparisons for presented periods are impacted by a number of factors. Refer to the Significant Items section for additional discussion regarding these items.
|
(2)
|
For all quarterly periods presented prior to December 31, 2017, the impact of the convertible preferred stock issued in April of 2008 was excluded from the diluted share calculation because the result would have been higher than basic earnings per common share (anti-dilutive) for the periods.
|
(3)
|
Other intangible assets are net of deferred tax.
|
(4)
|
Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax
.
|
(5)
|
Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
|
(6)
|
Presented on a FTE basis assuming a 35% tax rate.
|
(7)
|
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax.
|
(8)
|
Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax
.
|
(9)
|
Tangible equity, tangible common equity, and tangible assets are non-GAAP financial measures. Additionally, any ratios utilizing these financial measures are also non-GAAP. These financial measures have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. Other companies may calculate these financial measures differently.
|
•
|
Tangible common equity to tangible assets,
|
•
|
Tangible equity to tangible assets, and
|
•
|
Tangible common equity to risk-weighted assets using Basel III definitions.
|
|
December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,108
|
|
|
$
|
1,212
|
|
Interest-bearing deposits at Federal Reserve Bank
|
1,564
|
|
|
308
|
|
||
Interest-bearing deposits in banks
|
53
|
|
|
47
|
|
||
Trading account securities
|
105
|
|
|
86
|
|
||
Available-for-sale securities
|
13,780
|
|
|
14,869
|
|
||
Held-to-maturity securities
|
8,565
|
|
|
9,091
|
|
||
Other securities
|
565
|
|
|
600
|
|
||
Loans held for sale (includes $613 and $413 respectively, measured at fair value)(1)
|
804
|
|
|
488
|
|
||
Loans and leases (includes $79 and $93 respectively, measured at fair value)(1)
|
74,900
|
|
|
70,117
|
|
||
Allowance for loan and lease losses
|
(772
|
)
|
|
(691
|
)
|
||
Net loans and leases
|
74,128
|
|
|
69,426
|
|
||
Bank owned life insurance
|
2,507
|
|
|
2,466
|
|
||
Premises and equipment
|
790
|
|
|
864
|
|
||
Goodwill
|
1,989
|
|
|
1,993
|
|
||
Servicing rights and other intangible assets
|
535
|
|
|
584
|
|
||
Other assets
|
2,288
|
|
|
2,151
|
|
||
Total assets
|
$
|
108,781
|
|
|
$
|
104,185
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits in domestic offices
|
|
|
|
||||
Demand deposits—noninterest-bearing (includes $210 classified as held-for-sale at December 31, 2018)
|
$
|
21,783
|
|
|
$
|
21,546
|
|
Interest-bearing (includes $662 classified as held-for-sale at December 31, 2018)
|
62,991
|
|
|
55,495
|
|
||
Deposits
|
84,774
|
|
|
77,041
|
|
||
Short-term borrowings
|
2,017
|
|
|
5,056
|
|
||
Long-term debt
|
8,625
|
|
|
9,206
|
|
||
Other liabilities
|
2,263
|
|
|
2,068
|
|
||
Total liabilities
|
97,679
|
|
|
93,371
|
|
||
Commitments and contingencies (Note 20)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock
|
1,203
|
|
|
1,071
|
|
||
Common stock
|
11
|
|
|
11
|
|
||
Capital surplus
|
9,181
|
|
|
9,707
|
|
||
Less treasury shares, at cost
|
(45
|
)
|
|
(35
|
)
|
||
Accumulated other comprehensive loss
|
(609
|
)
|
|
(528
|
)
|
||
Retained earnings
|
1,361
|
|
|
588
|
|
||
Total shareholders’ equity
|
11,102
|
|
|
10,814
|
|
||
Total liabilities and shareholders’ equity
|
$
|
108,781
|
|
|
$
|
104,185
|
|
Common shares authorized (par value of $0.01)
|
1,500,000,000
|
|
|
1,500,000,000
|
|
||
Common shares outstanding
|
1,046,767,252
|
|
|
1,072,026,681
|
|
||
Treasury shares outstanding
|
3,817,385
|
|
|
3,268,265
|
|
||
Preferred stock, authorized shares
|
6,617,808
|
|
|
6,617,808
|
|
||
Preferred shares outstanding
|
740,500
|
|
|
1,098,006
|
|
(1)
|
Amounts represent loans for which Huntington has elected the fair value option. See Note
17
.
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions, share amounts in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Interest and fee income:
|
|
|
|
|
|
||||||
Loans and leases
|
$
|
3,305
|
|
|
$
|
2,838
|
|
|
$
|
2,178
|
|
Available-for-sale securities
|
|
|
|
|
|
||||||
Taxable
|
279
|
|
|
283
|
|
|
211
|
|
|||
Tax-exempt
|
97
|
|
|
77
|
|
|
59
|
|
|||
Held-to-maturity securities-taxable
|
211
|
|
|
193
|
|
|
138
|
|
|||
Other securities-taxable
|
25
|
|
|
20
|
|
|
12
|
|
|||
Other interest income
|
32
|
|
|
22
|
|
|
34
|
|
|||
Total interest income
|
3,949
|
|
|
3,433
|
|
|
2,632
|
|
|||
Interest expense
|
|
|
|
|
|
||||||
Deposits
|
391
|
|
|
180
|
|
|
102
|
|
|||
Short-term borrowings
|
48
|
|
|
25
|
|
|
5
|
|
|||
Long-term debt
|
321
|
|
|
226
|
|
|
156
|
|
|||
Total interest expense
|
760
|
|
|
431
|
|
|
263
|
|
|||
Net interest income
|
3,189
|
|
|
3,002
|
|
|
2,369
|
|
|||
Provision for credit losses
|
235
|
|
|
201
|
|
|
191
|
|
|||
Net interest income after provision for credit losses
|
2,954
|
|
|
2,801
|
|
|
2,178
|
|
|||
Service charges on deposit accounts
|
364
|
|
|
353
|
|
|
324
|
|
|||
Card and payment processing income
|
224
|
|
|
206
|
|
|
169
|
|
|||
Trust and investment management services
|
171
|
|
|
156
|
|
|
123
|
|
|||
Mortgage banking income
|
108
|
|
|
131
|
|
|
128
|
|
|||
Capital markets fees
|
91
|
|
|
76
|
|
|
60
|
|
|||
Insurance income
|
82
|
|
|
81
|
|
|
84
|
|
|||
Bank owned life insurance income
|
67
|
|
|
67
|
|
|
58
|
|
|||
Gain on sale of loans and leases
|
55
|
|
|
56
|
|
|
47
|
|
|||
Net (losses) gains on sales of securities
|
(21
|
)
|
|
—
|
|
|
2
|
|
|||
Impairment losses recognized in earnings on available-for-sale securities (a)
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|||
Other income
|
180
|
|
|
185
|
|
|
157
|
|
|||
Total noninterest income
|
1,321
|
|
|
1,307
|
|
|
1,150
|
|
|||
Personnel costs
|
1,559
|
|
|
1,524
|
|
|
1,349
|
|
|||
Outside data processing and other services
|
294
|
|
|
313
|
|
|
305
|
|
|||
Net occupancy
|
184
|
|
|
212
|
|
|
153
|
|
|||
Equipment
|
164
|
|
|
171
|
|
|
165
|
|
|||
Deposit and other insurance expense
|
63
|
|
|
78
|
|
|
54
|
|
|||
Professional services
|
60
|
|
|
69
|
|
|
105
|
|
|||
Marketing
|
53
|
|
|
60
|
|
|
63
|
|
|||
Amortization of intangibles
|
53
|
|
|
56
|
|
|
30
|
|
|||
Other expense
|
217
|
|
|
231
|
|
|
184
|
|
|||
Total noninterest expense
|
2,647
|
|
|
2,714
|
|
|
2,408
|
|
|||
Income before income taxes
|
1,628
|
|
|
1,394
|
|
|
920
|
|
|||
Provision for income taxes
|
235
|
|
|
208
|
|
|
208
|
|
|||
Net income
|
1,393
|
|
|
1,186
|
|
|
712
|
|
|||
Dividends on preferred shares
|
70
|
|
|
76
|
|
|
65
|
|
|||
Net income applicable to common shares
|
$
|
1,323
|
|
|
$
|
1,110
|
|
|
$
|
647
|
|
Average common shares—basic
|
1,081,542
|
|
|
1,084,686
|
|
|
904,438
|
|
|||
Average common shares—diluted
|
1,105,985
|
|
|
1,136,186
|
|
|
918,790
|
|
|||
Per common share:
|
|
|
|
|
|
||||||
Net income—basic
|
$
|
1.22
|
|
|
$
|
1.02
|
|
|
$
|
0.72
|
|
Net income—diluted
|
1.20
|
|
|
1.00
|
|
|
0.70
|
|
(a)
|
The following OTTI losses are included in securities losses for the periods presented:
|
Total OTTI losses
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
Noncredit-related portion of loss recognized in OCI
|
—
|
|
|
—
|
|
|
4
|
|
|||
Net impairment credit losses recognized in earnings
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
1,393
|
|
|
$
|
1,186
|
|
|
$
|
712
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||||||
Unrealized gains (losses) on available-for-sale and other securities:
|
|
|
|
|
|
||||||
Non-credit-related impairment recoveries on debt securities not expected to be sold
|
—
|
|
|
2
|
|
|
1
|
|
|||
Unrealized net gains (losses) on available-for-sale and other securities arising during the period, net of reclassification for net realized gains and losses
|
(84
|
)
|
|
(39
|
)
|
|
(202
|
)
|
|||
Total unrealized gains (losses) on available-for-sale securities
|
(84
|
)
|
|
(37
|
)
|
|
(201
|
)
|
|||
Unrealized gains on cash flow hedging derivatives, net of reclassifications to income
|
—
|
|
|
3
|
|
|
1
|
|
|||
Change in accumulated unrealized gains (losses) for pension and other post-retirement obligations
|
4
|
|
|
—
|
|
|
25
|
|
|||
Other comprehensive loss, net of tax
|
(80
|
)
|
|
(34
|
)
|
|
(175
|
)
|
|||
Comprehensive income
|
$
|
1,313
|
|
|
$
|
1,152
|
|
|
$
|
537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Retained
|
|
|
||||||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
Treasury Stock
|
|
Comprehensive
|
|
Earnings
|
|
|
||||||||||||||||||||
|
Amount
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Shares
|
|
Amount
|
|
Loss
|
|
(Deficit)
|
|
Total
|
|||||||||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of year
|
|
$
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,393
|
|
|
1,393
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(80
|
)
|
|
|
|
(80
|
)
|
||||||||||||||
Net proceeds from issuance of Preferred Series E Stock
|
|
495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
495
|
|
||||||||||||||
Repurchases of common stock
|
|
|
|
(61,644
|
)
|
|
—
|
|
|
(939
|
)
|
|
|
|
|
|
|
|
|
|
(939
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(541
|
)
|
|
(541
|
)
|
||||||||||||||
Preferred Series B ($49.11 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series C ($58.76 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||||||||
Preferred Series D ($62.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37
|
)
|
|
(37
|
)
|
||||||||||||||
Preferred Series E ($4,892.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24
|
)
|
|
(24
|
)
|
||||||||||||||
Conversion of Preferred Series A Stock to Common Stock
|
|
(363
|
)
|
|
30,330
|
|
|
|
|
363
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
|
78
|
|
|
|
|
|
|
|
|
|
|
78
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
|
6,603
|
|
|
—
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
(10
|
)
|
|
(41
|
)
|
|||||||||||
Other
|
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(549
|
)
|
|
(10
|
)
|
|
|
|
—
|
|
|
(7
|
)
|
|||||||||
Balance, end of year
|
|
$
|
1,203
|
|
|
1,050,584
|
|
|
$
|
11
|
|
|
$
|
9,181
|
|
|
(3,817
|
)
|
|
$
|
(45
|
)
|
|
$
|
(609
|
)
|
|
$
|
1,361
|
|
|
$
|
11,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Retained
|
|
|
||||||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
Treasury Stock
|
|
Comprehensive
|
|
Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Shares
|
|
Amount
|
|
Loss
|
|
(Deficit)
|
|
Total
|
|||||||||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of year
|
$
|
1,071
|
|
|
1,088,641
|
|
|
$
|
11
|
|
|
$
|
9,881
|
|
|
(2,953
|
)
|
|
$
|
(27
|
)
|
|
$
|
(401
|
)
|
|
$
|
(227
|
)
|
|
$
|
10,308
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,186
|
|
|
1,186
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(34
|
)
|
|
|
|
(34
|
)
|
||||||||||||||
Repurchase of common stock
|
|
|
(19,430
|
)
|
|
—
|
|
|
(260
|
)
|
|
|
|
|
|
|
|
|
|
(260
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.35 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(379
|
)
|
|
(379
|
)
|
||||||||||||||
Preferred Series A ($85.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Preferred Series B ($39.11 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($58.76 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||||||||
Preferred Series D ($62.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38
|
)
|
|
(38
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
92
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
5,923
|
|
|
—
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
(9
|
)
|
|
(19
|
)
|
|||||||||||
TCJA, Reclassification from accumulated OCI to retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
(93
|
)
|
|
93
|
|
|
—
|
|
|||||||||||||
Other
|
|
|
161
|
|
|
|
|
4
|
|
|
(315
|
)
|
|
(8
|
)
|
|
|
|
|
|
(4
|
)
|
|||||||||||
Balance, end of year
|
$
|
1,071
|
|
|
1,075,295
|
|
|
$
|
11
|
|
|
$
|
9,707
|
|
|
(3,268
|
)
|
|
$
|
(35
|
)
|
|
$
|
(528
|
)
|
|
$
|
588
|
|
|
$
|
10,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Retained
|
|
|
||||||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
Treasury Stock
|
|
Comprehensive
|
|
Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Shares
|
|
Amount
|
|
Loss
|
|
(Deficit)
|
|
Total
|
|||||||||||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of year
|
$
|
386
|
|
|
796,970
|
|
|
$
|
8
|
|
|
$
|
7,039
|
|
|
(2,041
|
)
|
|
$
|
(18
|
)
|
|
$
|
(226
|
)
|
|
$
|
(594
|
)
|
|
$
|
6,595
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
712
|
|
|
712
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(175
|
)
|
|
|
|
(175
|
)
|
||||||||||||||
FirstMerit Acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Issuance of common stock
|
|
|
285,425
|
|
|
3
|
|
|
2,764
|
|
|
|
|
|
|
|
|
|
|
2,767
|
|
||||||||||||
Issuance of Preferred Series C Stock
|
100
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
104
|
|
|||||||||||||
Net proceeds from issuance of Preferred Series D Stock
|
585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
585
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.29 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(275
|
)
|
|
(275
|
)
|
||||||||||||||
Preferred Series A ($85.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Preferred Series B ($34.03 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($26.28 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series D ($51.04 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
66
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
5,924
|
|
|
—
|
|
|
5
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
1
|
|
|||||||||||
Other
|
|
|
322
|
|
|
—
|
|
|
3
|
|
|
(912
|
)
|
|
(9
|
)
|
|
|
|
|
|
|
(6
|
)
|
|||||||||
Balance, end of year
|
$
|
1,071
|
|
|
1,088,641
|
|
|
$
|
11
|
|
|
$
|
9,881
|
|
|
(2,953
|
)
|
|
$
|
(27
|
)
|
|
$
|
(401
|
)
|
|
$
|
(227
|
)
|
|
$
|
10,308
|
|
•
|
a qualifying hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge);
|
•
|
a qualifying hedge of the variability of cash flows to be received or paid related to a recognized asset liability or forecasted transaction (cash flow hedge); or
|
•
|
a trading instrument or a non-qualifying (economic) hedge.
|
•
|
the derivative is no longer effective or expected to be effective in offsetting changes in the fair value or cash flows of a hedged item (including firm commitments or forecasted transactions);
|
•
|
the derivative expires or is sold, terminated, or exercised;
|
•
|
the forecasted transaction is no longer probable of occurring;
|
•
|
the hedged firm commitment no longer meets the definition of a firm commitment; or
|
•
|
the designation of the derivative as a hedging instrument is removed.
|
•
|
Level 1
– inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2
– inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3
– inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
•
|
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.
|
•
|
Card 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 as the uncertainty is resolved within a short period of time (generally within 30 days) interchange revenue is reduced by the amount of returns 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 has reached a minimum volume of sales). Another source of variability is the ability of the policy holder to cancel the policy anytime. In such cases, Huntington may be required, under the terms of the contract, to return part of the commission received. A policy cancellation reserve is established for such expected cancellations.
|
•
|
Other noninterest income
includes a variety of other revenue streams including capital markets revenue, miscellaneous 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.
|
Accounting standards adopted in current period
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2017-09 - Stock Compensation Modification Accounting.
Issued May 2017
|
- Reduces the current diversity in practice and provides explicit guidance pertaining to the provisions of modification accounting.
- Clarifies that an entity should account for effects of modification unless the fair value, vesting conditions and the classification of the modified award are the same as the original awards immediately before the original award is modified.
|
- Huntington adopted the new guidance on January 1, 2018.
- The update did not have a material impact on Huntington’s Consolidated Financial Statements.
|
ASU 2017-12 - Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities.
Issued August 2017
|
- Aligns the entity’s risk management activities and financial reporting for hedging relationships.
- Requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported.
- Refines measurement techniques for hedges of benchmark interest rate risk.
- Eliminates the separate measurement and reporting of hedge ineffectiveness.
- Allows stated amount of assets in a closed portfolio to be fair value hedged by excluding proportion of hedged item related to prepayments, defaults and other events.
- Eases hedge effectiveness testing including an option to perform qualitative testing.
|
- For cash flow and net investment hedges, the cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness should be recognized in AOCI with a corresponding adjustment to retained earnings.
- Huntington adopted the new guidance on January 1, 2018. Except as mentioned in the paragraph below, the update did not have a material impact on Huntington’s Consolidated Financial Statements.
- Huntington reclassified $2.8 billion securities eligible to be hedged under the last-of-layer method from held-to-maturity to available-for-sale and recognized $26 million of fair value loss (net of tax) within OCI.
|
ASU 2018-13 - Fair Value Measurement (Topic 820).
Issued August 2018
|
- Modifies the disclosure requirements on fair value measurements.
- Removes disclosures for transfers between Level 1 and Level 2, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements.
- Clarifies that the information about uncertainty in measurement in uncertainty disclosure should be as of the reporting date.
- Adds disclosures related to (a) changes in unrealized gains/losses in OCI for Level 3 fair value measurements for assets held at the end of the reporting period, and (b) the process of calculating weighted average for significant unobservable inputs used to develop Level 3 fair value measurements.
|
- Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years with early adoption permitted.
- Huntington early adopted the guidance effective 4Q 2018. The amendment did not have a material impact on Huntington’s Consolidated Financial Statements.
|
ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans.
Issued August 2018
|
- Modifies the disclosure requirements for defined benefit pension plans.
- Removes disclosures pertaining to (a) the amounts of AOCI expected to be recognized as pension costs over the next fiscal year, (b) the amount and timing of plan assets expected to be returned to the employer, and (c) the effect of one-percentage-point change in the assumed health care trends on (i) service and interest cost and (ii) postretirement health care benefit obligation.
- Adds a new disclosure requiring an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.
|
- Effective retrospectively for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted.
- Huntington early adopted the guidance effective 4Q 2018. The amendment did not have a material impact on the Huntington’s Consolidated Financial Statements.
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2018-15 - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.
Issued August 2018
|
- Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software as well as with hosting arrangements that include an internal-use software license.
- Requires the entity to expense the capitalized implementation costs of a hosting arrangement over the term of the hosting arrangement.
- Requires the entity to present the expense related to implementation costs in the same statement of income line and statement of cash flows line where the fees for the service contract is recognized for respective statements.
|
- Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years with early adoption permitted.
- Huntington early adopted the guidance effective 3Q 2018. The update did not have a material impact on Huntington’s Consolidated Financial Statements as the guidance was consistent with Huntington’s existing accounting treatment for such arrangements.
|
Accounting standards yet to be adopted
|
ASU 2017-04 - Simplifying the Test for Goodwill Impairment.
Issued January 2017
|
- Simplifies the goodwill impairment test by eliminating Step 2 of the goodwill impairment process, which requires an entity to determine the implied fair value of its goodwill by assigning fair value to all its assets and liabilities.
- Entities will instead recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.
- Entities will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.
|
- Effective for annual and interim goodwill tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted.
- The amendment is not expected to have a material impact on Huntington’s Consolidated Financial Statements.
|
ASU 2018-16 - Derivatives and Hedging - Inclusion of SOFR as Benchmark Interest Rate for Hedge Accounting Purposes.
Issued October 2018
|
- Permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the U.S. Treasury, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate.
|
- For public business entities that already have adopted the amendments in ASU 2017-12, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.
- The amendments should be adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption.
- Huntington will evaluate its risk management and may determine to hedge risk associated with OIS based on SOFR on case-to-case basis.
|
ASU 2018-20 - Narrow-Scope Improvements for Lessors
Issued December 2018
|
- The amendments create a lessor practical expedient applicable to sales and other similar taxes incurred in connection with a lease, and simplify lessor accounting for lessor costs paid by the lessee.
- Permits lessors, as an entity-wide accounting policy election, to present sales and other similar taxes that arise from a specific leasing transaction on a net basis.
- Requires lessors to present lessor costs paid by the lessee directly to a third party on a net basis – regardless of whether the lessor knows, can determine or can reliably estimate those costs.
- Requires lessors to present lessor costs paid by the lessee to the lessor (e.g. through direct reimbursement or as part of the fixed lease payments) on a gross basis
|
- Effective date coincides with the effective date of ASU 2016-02 for Huntington (fiscal period beginning after December 15, 2018).
- Huntington elected to present sales and other similar taxes that arise from specific leasing transactions on a net basis.
- Management will present property taxes on a gross basis where such taxes are paid by Huntington and reimbursed by the lessee, and has assessed the impact of that change to Huntington’s consolidated financial statements.
- The amendment does not have a material impact on Huntington’s Consolidated Financial Statements.
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Loans and leases:
|
|
|
|
||||
Commercial and industrial
|
$
|
30,605
|
|
|
$
|
28,107
|
|
Commercial real estate
|
6,842
|
|
|
7,225
|
|
||
Automobile
|
12,429
|
|
|
12,100
|
|
||
Home equity
|
9,722
|
|
|
10,099
|
|
||
Residential mortgage
|
10,728
|
|
|
9,026
|
|
||
RV and marine finance
|
3,254
|
|
|
2,438
|
|
||
Other consumer
|
1,320
|
|
|
1,122
|
|
||
Loans and leases
|
74,900
|
|
|
70,117
|
|
||
Allowance for loan and lease losses
|
(772
|
)
|
|
(691
|
)
|
||
Net loans and leases
|
$
|
74,128
|
|
|
$
|
69,426
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Commercial and industrial:
|
|
|
|
||||
Lease payments receivable
|
$
|
1,747
|
|
|
$
|
1,645
|
|
Estimated residual value of leased assets
|
726
|
|
|
755
|
|
||
Gross investment in commercial lease financing receivables
|
2,473
|
|
|
2,400
|
|
||
Deferred origination costs
|
20
|
|
|
18
|
|
||
Deferred fees
|
(250
|
)
|
|
(225
|
)
|
||
Total net investment in commercial lease financing receivables
|
$
|
2,243
|
|
|
$
|
2,193
|
|
|
December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Commercial and industrial
|
$
|
188
|
|
|
$
|
161
|
|
Commercial real estate
|
15
|
|
|
29
|
|
||
Automobile
|
5
|
|
|
6
|
|
||
Home equity
|
62
|
|
|
68
|
|
||
Residential mortgage
|
69
|
|
|
84
|
|
||
RV and marine finance
|
1
|
|
|
1
|
|
||
Other consumer
|
—
|
|
|
—
|
|
||
Total nonaccrual loans
|
$
|
340
|
|
|
$
|
349
|
|
|
December 31, 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
|
$
|
72
|
|
|
$
|
17
|
|
|
$
|
51
|
|
|
$
|
140
|
|
|
$
|
30,465
|
|
|
$
|
—
|
|
|
$
|
30,605
|
|
|
$
|
7
|
|
(2)
|
Commercial real estate
|
10
|
|
|
—
|
|
|
5
|
|
|
15
|
|
|
6,827
|
|
|
—
|
|
|
6,842
|
|
|
—
|
|
|
||||||||
Automobile
|
95
|
|
|
19
|
|
|
10
|
|
|
124
|
|
|
12,305
|
|
|
—
|
|
|
12,429
|
|
|
8
|
|
|
||||||||
Home equity
|
51
|
|
|
21
|
|
|
56
|
|
|
128
|
|
|
9,593
|
|
|
1
|
|
|
9,722
|
|
|
17
|
|
|
||||||||
Residential mortgage
|
108
|
|
|
47
|
|
|
168
|
|
|
323
|
|
|
10,327
|
|
|
78
|
|
|
10,728
|
|
|
131
|
|
(3)
|
||||||||
RV and marine finance
|
12
|
|
|
3
|
|
|
2
|
|
|
17
|
|
|
3,237
|
|
|
—
|
|
|
3,254
|
|
|
1
|
|
|
||||||||
Other consumer
|
14
|
|
|
7
|
|
|
6
|
|
|
27
|
|
|
1,293
|
|
|
—
|
|
|
1,320
|
|
|
6
|
|
|
||||||||
Total loans and leases
|
$
|
362
|
|
|
$
|
114
|
|
|
$
|
298
|
|
|
$
|
774
|
|
|
$
|
74,047
|
|
|
$
|
79
|
|
|
$
|
74,900
|
|
|
$
|
170
|
|
|
|
December 31, 2017
|
|||||||||||||||||||||||||||||||||||
|
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
|
|
Purchased
Credit Impaired |
|
|
|
|
||||||||||||||||||||||
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
|
||||||
Year ended December 31, 2018:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
Loan charge-offs
|
|
(79
|
)
|
|
(189
|
)
|
|
(268
|
)
|
|||
Recoveries of loans previously charged-off
|
|
65
|
|
|
58
|
|
|
123
|
|
|||
Provision for loan and lease losses
|
|
74
|
|
|
152
|
|
|
226
|
|
|||
ALLL balance, end of period
|
|
$
|
542
|
|
|
$
|
230
|
|
|
$
|
772
|
|
AULC balance, beginning of period
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
87
|
|
Provision (reduction in allowance) for unfunded loan commitments
and letters of credit
|
|
10
|
|
|
(1
|
)
|
|
9
|
|
|||
AULC balance, end of period
|
|
$
|
94
|
|
|
$
|
2
|
|
|
$
|
96
|
|
ACL balance, end of period
|
|
$
|
636
|
|
|
$
|
232
|
|
|
$
|
868
|
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2017:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
Loan charge-offs
|
|
(72
|
)
|
|
(180
|
)
|
|
(252
|
)
|
|||
Recoveries of loans previously charged-off
|
|
41
|
|
|
52
|
|
|
93
|
|
|||
Provision for loan and lease losses
|
|
62
|
|
|
150
|
|
|
212
|
|
|||
ALLL balance, end of period
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
AULC balance, beginning of period
|
|
$
|
87
|
|
|
$
|
11
|
|
|
$
|
98
|
|
Provision (reduction in allowance) for unfunded loan commitments
and letters of credit
|
|
(3
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|||
AULC balance, end of period
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
87
|
|
ACL balance, end of period
|
|
$
|
566
|
|
|
$
|
212
|
|
|
$
|
778
|
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2016:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
399
|
|
|
$
|
199
|
|
|
$
|
598
|
|
Loan charge-offs
|
|
(92
|
)
|
|
(135
|
)
|
|
(227
|
)
|
|||
Recoveries of loans previously charged-off
|
|
73
|
|
|
45
|
|
|
118
|
|
|||
Provision for loan and lease losses
|
|
85
|
|
|
84
|
|
|
169
|
|
|||
Allowance for loans sold or transferred to loans held for sale
|
|
(14
|
)
|
|
(6
|
)
|
|
(20
|
)
|
|||
ALLL balance, end of period
|
|
$
|
451
|
|
|
$
|
187
|
|
|
$
|
638
|
|
AULC balance, beginning of period
|
|
$
|
64
|
|
|
$
|
8
|
|
|
$
|
72
|
|
Provision (reduction in allowance) for unfunded loan commitments
and letters of credit
|
|
19
|
|
|
3
|
|
|
22
|
|
|||
AULC recorded at acquisition
|
|
4
|
|
|
—
|
|
|
4
|
|
|||
AULC balance, end of period
|
|
$
|
87
|
|
|
$
|
11
|
|
|
$
|
98
|
|
ACL balance, end of period
|
|
$
|
538
|
|
|
$
|
198
|
|
|
$
|
736
|
|
•
|
Pass
- Higher quality loans that do not fit any of the other categories described below.
|
•
|
OLEM
- The credit risk may be relatively minor yet represents a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans.
|
•
|
Substandard
- Inadequately protected loans by the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.
|
•
|
Doubtful
- Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.
|
|
December 31, 2018
|
||||||||||||||||||
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
(dollar amounts in millions)
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
28,807
|
|
|
$
|
518
|
|
|
$
|
1,269
|
|
|
$
|
11
|
|
|
$
|
30,605
|
|
Commercial real estate
|
6,586
|
|
|
181
|
|
|
74
|
|
|
1
|
|
|
6,842
|
|
|||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
6,254
|
|
|
4,520
|
|
|
1,373
|
|
|
282
|
|
|
$
|
12,429
|
|
||||
Home equity
|
6,098
|
|
|
2,975
|
|
|
591
|
|
|
56
|
|
|
9,720
|
|
|||||
Residential mortgage
|
7,159
|
|
|
2,801
|
|
|
612
|
|
|
78
|
|
|
10,650
|
|
|||||
RV and marine finance
|
2,074
|
|
|
990
|
|
|
105
|
|
|
85
|
|
|
3,254
|
|
|||||
Other consumer
|
501
|
|
|
633
|
|
|
129
|
|
|
57
|
|
|
1,320
|
|
|
December 31, 2017
|
||||||||||||||||||
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
(dollar amounts in millions)
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
26,268
|
|
|
$
|
694
|
|
|
$
|
1,116
|
|
|
$
|
29
|
|
|
$
|
28,107
|
|
Commercial real estate
|
6,909
|
|
|
200
|
|
|
115
|
|
|
1
|
|
|
7,225
|
|
|||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
6,102
|
|
|
4,312
|
|
|
1,390
|
|
|
295
|
|
|
$
|
12,099
|
|
||||
Home equity
|
6,352
|
|
|
3,024
|
|
|
617
|
|
|
104
|
|
|
10,097
|
|
|||||
Residential mortgage
|
5,697
|
|
|
2,581
|
|
|
605
|
|
|
54
|
|
|
8,937
|
|
|||||
RV and marine finance
|
1,433
|
|
|
863
|
|
|
96
|
|
|
45
|
|
|
2,437
|
|
|||||
Other consumer
|
428
|
|
|
540
|
|
|
143
|
|
|
11
|
|
|
1,122
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
(2)
|
Reflects updated customer credit scores.
|
(3)
|
Reflects deferred fees and costs, loans in process, etc.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL at December 31, 2018
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
Attributable to loans individually evaluated for impairment
|
|
$
|
33
|
|
|
$
|
10
|
|
|
$
|
43
|
|
Attributable to loans collectively evaluated for impairment
|
|
509
|
|
|
220
|
|
|
729
|
|
|||
Total ALLL balance
|
|
$
|
542
|
|
|
$
|
230
|
|
|
$
|
772
|
|
Loan and Lease Ending Balances at December 31, 2018 (1)
|
|
|
|
|
|
|
||||||
Portion of loan and lease ending balance:
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
516
|
|
|
591
|
|
|
1,107
|
|
|||
Collectively evaluated for impairment
|
|
36,931
|
|
|
36,783
|
|
|
73,714
|
|
|||
Total loans and leases evaluated for impairment
|
|
$
|
37,447
|
|
|
$
|
37,374
|
|
|
$
|
74,821
|
|
(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.
|
|
|
|
|
|
|
|
Year Ended
|
||||||||||||
|
December 31, 2018
|
|
December 31, 2018
|
||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance (7)
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
224
|
|
|
$
|
261
|
|
|
$
|
—
|
|
|
$
|
256
|
|
|
$
|
22
|
|
Commercial real estate
|
36
|
|
|
45
|
|
|
—
|
|
|
47
|
|
|
8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
221
|
|
|
240
|
|
|
31
|
|
|
272
|
|
|
11
|
|
|||||
Commercial real estate
|
35
|
|
|
39
|
|
|
2
|
|
|
45
|
|
|
2
|
|
|||||
Automobile
|
38
|
|
|
42
|
|
|
2
|
|
|
37
|
|
|
2
|
|
|||||
Home equity
|
314
|
|
|
356
|
|
|
10
|
|
|
326
|
|
|
14
|
|
|||||
Residential mortgage
|
287
|
|
|
323
|
|
|
4
|
|
|
297
|
|
|
11
|
|
|||||
RV and marine finance
|
2
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||
Other consumer
|
9
|
|
|
9
|
|
|
3
|
|
|
8
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial (3)
|
445
|
|
|
501
|
|
|
31
|
|
|
528
|
|
|
33
|
|
|||||
Commercial real estate (4)
|
71
|
|
|
84
|
|
|
2
|
|
|
92
|
|
|
10
|
|
|||||
Automobile (2)
|
38
|
|
|
42
|
|
|
2
|
|
|
37
|
|
|
2
|
|
|||||
Home equity (5)
|
314
|
|
|
356
|
|
|
10
|
|
|
326
|
|
|
14
|
|
|||||
Residential mortgage (5)
|
287
|
|
|
323
|
|
|
4
|
|
|
297
|
|
|
11
|
|
|||||
RV and marine finance (2)
|
2
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||
Other consumer (2)
|
9
|
|
|
9
|
|
|
3
|
|
|
8
|
|
|
—
|
|
|
|
|
|
|
|
|
Year Ended
|
||||||||||||
|
December 31, 2017
|
|
December 31, 2017
|
||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance (7)
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
284
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
12
|
|
Commercial real estate
|
56
|
|
|
81
|
|
|
—
|
|
|
64
|
|
|
8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
257
|
|
|
280
|
|
|
29
|
|
|
292
|
|
|
16
|
|
|||||
Commercial real estate
|
51
|
|
|
51
|
|
|
3
|
|
|
52
|
|
|
2
|
|
|||||
Automobile
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
2
|
|
|||||
Home equity
|
334
|
|
|
385
|
|
|
14
|
|
|
329
|
|
|
15
|
|
|||||
Residential mortgage
|
308
|
|
|
338
|
|
|
4
|
|
|
325
|
|
|
12
|
|
|||||
RV and marine finance
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other consumer
|
8
|
|
|
8
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial (3)
|
541
|
|
|
591
|
|
|
29
|
|
|
498
|
|
|
28
|
|
|||||
Commercial real estate (4)
|
107
|
|
|
132
|
|
|
3
|
|
|
116
|
|
|
10
|
|
|||||
Automobile (2)
|
36
|
|
|
40
|
|
|
2
|
|
|
33
|
|
|
2
|
|
|||||
Home equity (5)
|
334
|
|
|
385
|
|
|
14
|
|
|
329
|
|
|
15
|
|
|||||
Residential mortgage (5)
|
308
|
|
|
338
|
|
|
4
|
|
|
325
|
|
|
12
|
|
|||||
RV and marine finance (2)
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other consumer (2)
|
8
|
|
|
8
|
|
|
2
|
|
|
5
|
|
|
—
|
|
(1)
|
These tables do not include loans fully charged-off.
|
(2)
|
All automobile, RV and marine finance and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
|
(3)
|
At
December 31, 2018
and
December 31, 2017
, C&I loans of
$366 million
and
$382 million
, respectively, were considered impaired due to their status as a TDR.
|
(4)
|
At
December 31, 2018
and
December 31, 2017
, CRE loans of
$60 million
and
$93 million
, respectively, were considered impaired due to their status as a TDR.
|
(5)
|
Includes home equity and residential mortgages considered impaired due to collateral dependent designation associated with 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 primarily represent partial charge-offs.
|
(7)
|
Impaired loans in the consumer portfolio are evaluated in pools and not at the loan level. Thus, these loans do not have an individually assigned allowance and as such all are classified as with an allowance recorded in the tables above.
|
|
New Troubled Debt Restructurings (1)
|
|||||||||||||||||||||
|
Year Ended December 31, 2018
|
|||||||||||||||||||||
|
Number of
Contracts |
|
Post-modification Outstanding Recorded Investment (2)
|
|||||||||||||||||||
(dollar amounts in millions)
|
|
Interest rate reduction
|
|
Amortization or maturity date change
|
|
Chapter 7 bankruptcy
|
|
Other
|
|
Total
|
||||||||||||
Commercial and industrial
|
725
|
|
|
$
|
—
|
|
|
$
|
352
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
352
|
|
Commercial real estate
|
102
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|||||
Automobile
|
2,867
|
|
|
—
|
|
|
15
|
|
|
8
|
|
|
—
|
|
|
23
|
|
|||||
Home equity
|
602
|
|
|
—
|
|
|
25
|
|
|
11
|
|
|
—
|
|
|
36
|
|
|||||
Residential mortgage
|
345
|
|
|
—
|
|
|
34
|
|
|
3
|
|
|
—
|
|
|
37
|
|
|||||
RV and marine finance
|
117
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Other consumer
|
1,633
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Total new TDRs
|
6,391
|
|
|
$
|
8
|
|
|
$
|
508
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Year Ended December 31, 2017
|
|||||||||||||||||||||
|
Number of
Contracts |
|
Post-modification Outstanding Recorded Investment (2)
|
|||||||||||||||||||
(dollar amounts in millions)
|
|
Interest rate reduction
|
|
Amortization or maturity date change
|
|
Chapter 7 bankruptcy
|
|
Other
|
|
Total
|
||||||||||||
Commercial and industrial
|
1,047
|
|
|
$
|
1
|
|
|
$
|
600
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
601
|
|
Commercial real estate
|
111
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|||||
Automobile
|
2,741
|
|
|
—
|
|
|
15
|
|
|
8
|
|
|
—
|
|
|
23
|
|
|||||
Home equity
|
922
|
|
|
2
|
|
|
33
|
|
|
11
|
|
|
4
|
|
|
50
|
|
|||||
Residential mortgage
|
453
|
|
|
—
|
|
|
40
|
|
|
7
|
|
|
2
|
|
|
49
|
|
|||||
RV and marine finance
|
131
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|||||
Other consumer
|
1,340
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Total new TDRs
|
6,745
|
|
|
$
|
3
|
|
|
$
|
817
|
|
|
$
|
27
|
|
|
$
|
6
|
|
|
$
|
853
|
|
(1)
|
TDRs may include multiple concessions. 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.
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
7,185
|
|
|
15
|
|
|
(201
|
)
|
|
6,999
|
|
||||
Residential MBS
|
1,261
|
|
|
9
|
|
|
(15
|
)
|
|
1,255
|
|
||||
Commercial MBS
|
1,641
|
|
|
—
|
|
|
(58
|
)
|
|
1,583
|
|
||||
Other agencies
|
128
|
|
|
—
|
|
|
(2
|
)
|
|
126
|
|
||||
Total U.S. Treasury, federal agency and other agency securities
|
10,220
|
|
|
24
|
|
|
(276
|
)
|
|
9,968
|
|
||||
Municipal securities
|
3,512
|
|
|
6
|
|
|
(78
|
)
|
|
3,440
|
|
||||
Asset-backed securities
|
318
|
|
|
1
|
|
|
(4
|
)
|
|
315
|
|
||||
Corporate debt
|
54
|
|
|
—
|
|
|
(1
|
)
|
|
53
|
|
||||
Other securities/Sovereign debt
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total available-for-sale securities
|
$
|
14,108
|
|
|
$
|
31
|
|
|
$
|
(359
|
)
|
|
$
|
13,780
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
2,124
|
|
|
$
|
—
|
|
|
$
|
(47
|
)
|
|
$
|
2,077
|
|
Residential MBS
|
1,851
|
|
|
2
|
|
|
(42
|
)
|
|
1,811
|
|
||||
Commercial MBS
|
4,235
|
|
|
—
|
|
|
(186
|
)
|
|
4,049
|
|
||||
Other agencies
|
350
|
|
|
—
|
|
|
(6
|
)
|
|
344
|
|
||||
Total federal agency and other agency securities
|
8,560
|
|
|
2
|
|
|
(281
|
)
|
|
8,281
|
|
||||
Municipal securities
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Total held-to-maturity securities
|
$
|
8,565
|
|
|
$
|
2
|
|
|
$
|
(281
|
)
|
|
$
|
8,286
|
|
|
|
|
|
|
|
|
|
||||||||
Other securities, at cost:
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank stock
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
248
|
|
Federal Reserve Bank stock
|
295
|
|
|
—
|
|
|
—
|
|
|
295
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Marketable equity securities
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Total other securities
|
$
|
564
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
565
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
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 agency and other agency securities
|
9,086
|
|
|
4
|
|
|
(124
|
)
|
|
8,966
|
|
||||
Municipal securities
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Total held-to-maturity securities
|
$
|
9,091
|
|
|
$
|
4
|
|
|
$
|
(124
|
)
|
|
$
|
8,971
|
|
|
|
|
|
|
|
|
|
||||||||
Other securities, at cost:
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank stock
|
$
|
287
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287
|
|
Federal Reserve Bank stock
|
294
|
|
|
—
|
|
|
—
|
|
|
294
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Marketable equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total other securities
|
$
|
600
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
600
|
|
|
2018
|
||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair
Value
|
||||
Available-for-sale securities:
|
|
|
|
||||
Under 1 year
|
$
|
186
|
|
|
$
|
185
|
|
After 1 year through 5 years
|
1,057
|
|
|
1,039
|
|
||
After 5 years through 10 years
|
1,838
|
|
|
1,802
|
|
||
After 10 years
|
11,027
|
|
|
10,754
|
|
||
Total available-for-sale securities
|
$
|
14,108
|
|
|
$
|
13,780
|
|
|
|
|
|
||||
Held-to-maturity securities:
|
|
|
|
||||
Under 1 year
|
$
|
—
|
|
|
$
|
—
|
|
After 1 year through 5 years
|
11
|
|
|
11
|
|
||
After 5 years through 10 years
|
362
|
|
|
356
|
|
||
After 10 years
|
8,192
|
|
|
7,919
|
|
||
Total held-to-maturity securities
|
$
|
8,565
|
|
|
$
|
8,286
|
|
|
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, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
425
|
|
|
$
|
(3
|
)
|
|
$
|
5,943
|
|
|
$
|
(198
|
)
|
|
$
|
6,368
|
|
|
$
|
(201
|
)
|
Residential MBS
|
259
|
|
|
(6
|
)
|
|
319
|
|
|
(9
|
)
|
|
578
|
|
|
(15
|
)
|
||||||
Commercial MBS
|
10
|
|
|
—
|
|
|
1,573
|
|
|
(58
|
)
|
|
1,583
|
|
|
(58
|
)
|
||||||
Other agencies
|
—
|
|
|
—
|
|
|
124
|
|
|
(2
|
)
|
|
124
|
|
|
(2
|
)
|
||||||
Total federal agency and other agency securities
|
694
|
|
|
(9
|
)
|
|
7,959
|
|
|
(267
|
)
|
|
8,653
|
|
|
(276
|
)
|
||||||
Municipal securities
|
1,425
|
|
|
(24
|
)
|
|
1,602
|
|
|
(54
|
)
|
|
3,027
|
|
|
(78
|
)
|
||||||
Asset-backed securities
|
95
|
|
|
(2
|
)
|
|
117
|
|
|
(2
|
)
|
|
212
|
|
|
(4
|
)
|
||||||
Corporate debt
|
40
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
41
|
|
|
(1
|
)
|
||||||
Total temporarily impaired securities
|
$
|
2,254
|
|
|
$
|
(35
|
)
|
|
$
|
9,679
|
|
|
$
|
(324
|
)
|
|
$
|
11,933
|
|
|
$
|
(359
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
2,004
|
|
|
$
|
(47
|
)
|
|
$
|
2,016
|
|
|
$
|
(47
|
)
|
Residential MBS
|
16
|
|
|
—
|
|
|
1,457
|
|
|
(42
|
)
|
|
1,473
|
|
|
(42
|
)
|
||||||
Commercial MBS
|
—
|
|
|
—
|
|
|
4,041
|
|
|
(186
|
)
|
|
4,041
|
|
|
(186
|
)
|
||||||
Other agencies
|
113
|
|
|
(2
|
)
|
|
205
|
|
|
(4
|
)
|
|
318
|
|
|
(6
|
)
|
||||||
Total federal agency and other agency securities
|
141
|
|
|
(2
|
)
|
|
7,707
|
|
|
(279
|
)
|
|
7,848
|
|
|
(281
|
)
|
||||||
Municipal securities
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
141
|
|
|
$
|
(2
|
)
|
|
$
|
7,711
|
|
|
$
|
(279
|
)
|
|
$
|
7,852
|
|
|
$
|
(281
|
)
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 agency and other agency securities
|
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
|
)
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Gross gains on sales of securities
|
$
|
7
|
|
|
$
|
10
|
|
|
$
|
23
|
|
Gross (losses) on sales of securities
|
(28
|
)
|
|
(10
|
)
|
|
(21
|
)
|
|||
Net gain (loss) on sales of securities
|
$
|
(21
|
)
|
|
$
|
—
|
|
|
$
|
2
|
|
OTTI recognized in earnings
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|||
Net securities (losses)
|
$
|
(21
|
)
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Residential mortgage loans sold with servicing retained
|
$
|
3,846
|
|
|
$
|
3,985
|
|
|
$
|
3,632
|
|
Pretax gains resulting from above loan sales (1)
|
87
|
|
|
99
|
|
|
97
|
|
(1)
|
Recorded in mortgage banking income.
|
|
|
|
|
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Carrying value, beginning of year
|
$
|
191
|
|
|
$
|
172
|
|
New servicing assets created
|
44
|
|
|
44
|
|
||
Impairment recovery (charge)
|
6
|
|
|
1
|
|
||
Amortization and other
|
(30
|
)
|
|
(26
|
)
|
||
Carrying value, end of year
|
$
|
211
|
|
|
$
|
191
|
|
Fair value, end of year
|
$
|
212
|
|
|
$
|
191
|
|
Weighted-average life (years)
|
6.7
|
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 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)
|
9.40
|
%
|
|
$
|
(6
|
)
|
|
$
|
(12
|
)
|
|
8.30
|
%
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
Spread over forward interest rate swap rates
|
934
|
bps
|
|
(7
|
)
|
|
(13
|
)
|
|
1,049
|
bps
|
|
(7
|
)
|
|
(13
|
)
|
|
Consumer &
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Business
|
|
Commercial
|
|
Vehicle
|
|
|
|
Treasury/
|
|
Huntington
|
||||||||||||
(dollar amounts in millions)
|
Banking
|
|
Banking
|
|
Finance
|
|
RBHPCG
|
|
Other
|
|
Consolidated
|
||||||||||||
Balance, January 1, 2017
|
$
|
1,398
|
|
|
$
|
453
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
1,993
|
|
Adjustments
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
||||||
Balance, December 31, 2017
|
1,398
|
|
|
425
|
|
|
—
|
|
|
170
|
|
|
—
|
|
|
1,993
|
|
||||||
Goodwill acquired during the period
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Adjustments
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Balance, December 31, 2018
|
$
|
1,393
|
|
|
$
|
426
|
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
$
|
1,989
|
|
(dollar amounts in millions)
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Value |
||||||
December 31, 2018
|
|
|
|
|
|
||||||
Core deposit intangible
|
$
|
314
|
|
|
$
|
(93
|
)
|
|
$
|
221
|
|
Customer relationship
|
182
|
|
|
(122
|
)
|
|
60
|
|
|||
Total other intangible assets
|
$
|
496
|
|
|
$
|
(215
|
)
|
|
$
|
281
|
|
December 31, 2017
|
|
|
|
|
|
||||||
Core deposit intangible
|
$
|
325
|
|
|
$
|
(61
|
)
|
|
$
|
264
|
|
Customer relationship
|
190
|
|
|
(108
|
)
|
|
82
|
|
|||
Total other intangible assets
|
$
|
515
|
|
|
$
|
(169
|
)
|
|
$
|
346
|
|
(dollar amounts in millions)
|
Amortization
Expense
|
||
2019
|
$
|
49
|
|
2020
|
41
|
|
|
2021
|
38
|
|
|
2022
|
36
|
|
|
2023
|
34
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Land and land improvements
|
$
|
188
|
|
|
$
|
193
|
|
Buildings
|
579
|
|
|
563
|
|
||
Leasehold improvements
|
199
|
|
|
240
|
|
||
Equipment
|
739
|
|
|
746
|
|
||
Total premises and equipment
|
1,705
|
|
|
1,742
|
|
||
Less accumulated depreciation and amortization
|
(915
|
)
|
|
(878
|
)
|
||
Net premises and equipment
|
$
|
790
|
|
|
$
|
864
|
|
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Total depreciation and amortization of premises and equipment
|
$
|
130
|
|
|
$
|
123
|
|
|
$
|
126
|
|
Rental income credited to occupancy expense
|
13
|
|
|
14
|
|
|
13
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
2,004
|
|
|
$
|
1,318
|
|
Federal Home Loan Bank advances
|
—
|
|
|
3,725
|
|
||
Other borrowings
|
13
|
|
|
13
|
|
||
Total short-term borrowings
|
$
|
2,017
|
|
|
$
|
5,056
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
The Parent Company:
|
|
|
|
||||
Senior Notes:
|
|
|
|
||||
3.19% Huntington Bancshares Incorporated medium-term notes due 2021
|
$
|
969
|
|
|
$
|
969
|
|
2.33% Huntington Bancshares Incorporated senior notes due 2022
|
946
|
|
|
953
|
|
||
4.00% Huntington Bancshares Incorporated senior notes due 2025
|
507
|
|
|
—
|
|
||
2.64% Huntington Bancshares Incorporated senior notes due 2018
|
—
|
|
|
399
|
|
||
Subordinated Notes:
|
|
|
|
||||
7.00% Huntington Bancshares Incorporated subordinated notes due 2020
|
305
|
|
|
312
|
|
||
3.55% Huntington Bancshares Incorporated subordinated notes due 2023
|
239
|
|
|
245
|
|
||
Sky Financial Capital Trust IV 4.20% junior subordinated debentures due 2036 (1)
|
74
|
|
|
74
|
|
||
Sky Financial Capital Trust III 4.20% junior subordinated debentures due 2036 (1)
|
72
|
|
|
72
|
|
||
Huntington Capital I Trust Preferred 3.50% junior subordinated debentures due 2027 (2)
|
69
|
|
|
69
|
|
||
Huntington Capital II Trust Preferred 3.42% junior subordinated debentures due 2028 (3)
|
31
|
|
|
31
|
|
||
Camco Financial Statutory Trust I 4.13% due 2037 (4)
|
4
|
|
|
4
|
|
||
Total notes issued by the parent
|
3,216
|
|
|
3,128
|
|
||
The Bank:
|
|
|
|
||||
Senior Notes:
|
|
|
|
||||
3.55% Huntington National Bank senior notes due 2023
|
756
|
|
|
—
|
|
||
3.25% Huntington National Bank senior notes due 2021
|
750
|
|
|
—
|
|
||
2.47% Huntington National Bank senior notes due 2020
|
692
|
|
|
694
|
|
||
2.55% Huntington National Bank senior notes due 2022
|
672
|
|
|
685
|
|
||
2.23% Huntington National Bank senior notes due 2019
|
498
|
|
|
497
|
|
||
2.43% Huntington National Bank senior notes due 2020
|
493
|
|
|
498
|
|
||
2.97% Huntington National Bank senior notes due 2020
|
491
|
|
|
492
|
|
||
3.31% Huntington National Bank senior notes due 2020 (5)
|
300
|
|
|
300
|
|
||
2.24% Huntington National Bank senior notes due 2018
|
—
|
|
|
844
|
|
||
2.10% Huntington National Bank senior notes due 2018
|
—
|
|
|
748
|
|
||
1.75% Huntington National Bank senior notes due 2018
|
—
|
|
|
496
|
|
||
5.04% Huntington National Bank medium-term notes due 2018
|
—
|
|
|
35
|
|
||
Subordinated Notes:
|
|
|
|
||||
3.86% Huntington National Bank subordinated notes due 2026
|
229
|
|
|
238
|
|
||
5.45% Huntington National Bank subordinated notes due 2019
|
76
|
|
|
77
|
|
||
6.67% Huntington National Bank subordinated notes due 2018
|
—
|
|
|
129
|
|
||
Total notes issued by the bank
|
4,957
|
|
|
5,733
|
|
||
FHLB Advances:
|
|
|
|
||||
3.12% weighted average rate, varying maturities greater than one year
|
6
|
|
|
7
|
|
||
Other:
|
|
|
|
||||
Huntington Technology Finance nonrecourse debt, 4.19% effective interest rate, varying maturities
|
322
|
|
|
263
|
|
||
4.68% Huntington Preferred Capital II - Class F securities (6)
|
74
|
|
|
75
|
|
||
4.68% Huntington Preferred Capital II - Class G securities (6)
|
50
|
|
|
—
|
|
||
Total other
|
446
|
|
|
338
|
|
||
Total long-term debt
|
$
|
8,625
|
|
|
$
|
9,206
|
|
(1)
|
Variable effective rate at
December 31, 2018
, based on
three-month LIBOR
+
1.40%
.
|
(2)
|
Variable effective rate at
December 31, 2018
, based on
three-month LIBOR
+
0.70%
|
(3)
|
Variable effective rate at
December 31, 2018
, based on
three-month LIBOR
+
0.625%
.
|
(4)
|
Variable effective rate at
December 31, 2018
, based on
three-month LIBOR
+
1.33%
.
|
(5)
|
Variable effective rate at
December 31, 2018
, based on
three-month LIBOR
+
0.51%
|
(6)
|
Variable effective rate at
December 31, 2018
, based on
three-month LIBOR
+
1.88%
.
|
(dollar amounts in millions)
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
The Parent Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
2,500
|
|
Subordinated notes
|
—
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|
253
|
|
|
803
|
|
|||||||
The Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes
|
500
|
|
|
2,000
|
|
|
750
|
|
|
700
|
|
|
750
|
|
|
—
|
|
|
4,700
|
|
|||||||
Subordinated notes
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|
326
|
|
|||||||
FHLB Advances
|
1
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
6
|
|
|||||||
Other
|
16
|
|
|
74
|
|
|
85
|
|
|
163
|
|
|
108
|
|
|
—
|
|
|
446
|
|
|||||||
Total
|
$
|
593
|
|
|
$
|
2,376
|
|
|
$
|
1,835
|
|
|
$
|
1,864
|
|
|
$
|
1,109
|
|
|
$
|
1,004
|
|
|
$
|
8,781
|
|
|
2018
|
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized holding gains (losses) on available-for-sale debt securities
arising during the period |
$
|
(151
|
)
|
|
$
|
35
|
|
|
$
|
(116
|
)
|
Less: Reclassification adjustment for net losses (gains) included in net income
|
41
|
|
|
(9
|
)
|
|
32
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(110
|
)
|
|
26
|
|
|
(84
|
)
|
|||
Net change in pension and other post-retirement obligations
|
4
|
|
|
—
|
|
|
4
|
|
|||
Total other comprehensive income (loss)
|
$
|
(106
|
)
|
|
$
|
26
|
|
|
$
|
(80
|
)
|
|
2017
|
||||||||||
|
|
|
Tax (expense)
|
|
|
||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
Unrealized holding gains (losses) on available-for-sale debt securities
arising during the period |
(87
|
)
|
|
31
|
|
|
(56
|
)
|
|||
Less: Reclassification adjustment for net losses (gains) included in net income
|
26
|
|
|
(9
|
)
|
|
17
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(57
|
)
|
|
20
|
|
|
(37
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Unrealized gains (losses) on derivatives used in cash flow hedging relationships
arising during the period |
3
|
|
|
(1
|
)
|
|
2
|
|
|||
Less: Reclassification adjustment for net (gains) losses included in net income
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
|
4
|
|
|
(1
|
)
|
|
3
|
|
|||
Net change in pension and other post-retirement obligations
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total other comprehensive income (loss)
|
$
|
(52
|
)
|
|
$
|
18
|
|
|
$
|
(34
|
)
|
|
2016
|
||||||||||
|
|
|
Tax (expense)
|
|
|
||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Unrealized holding gains (losses) on available-for-sale debt securities
arising during the period
|
(203
|
)
|
|
70
|
|
|
(133
|
)
|
|||
Less: Reclassification adjustment for net gains (losses) included in net income
|
(107
|
)
|
|
38
|
|
|
(69
|
)
|
|||
Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
(309
|
)
|
|
108
|
|
|
(201
|
)
|
|||
Unrealized gains and losses on derivatives used in cash flow hedging relationships
arising during the period
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Net change in pension and post-retirement obligations
|
38
|
|
|
(13
|
)
|
|
25
|
|
|||
Total other comprehensive income (loss)
|
$
|
(269
|
)
|
|
$
|
94
|
|
|
$
|
(175
|
)
|
(dollar amounts in millions)
|
Unrealized
gains (losses) on
debt
securities (1)
|
|
Unrealized
gains (losses) on
cash flow hedging
derivatives
|
|
Unrealized
gains (losses) for
pension and other
post-retirement
obligations
|
|
Total
|
||||||||
December 31, 2016
|
$
|
(193
|
)
|
|
$
|
(3
|
)
|
|
$
|
(205
|
)
|
|
$
|
(401
|
)
|
Other comprehensive income before reclassifications
|
(54
|
)
|
|
2
|
|
|
(10
|
)
|
|
(62
|
)
|
||||
Amounts reclassified from accumulated OCI to earnings
|
17
|
|
|
1
|
|
|
10
|
|
|
28
|
|
||||
Period change
|
(37
|
)
|
|
3
|
|
|
—
|
|
|
(34
|
)
|
||||
TCJA, Reclassification from accumulated OCI to retained earnings
|
(48
|
)
|
|
—
|
|
|
(45
|
)
|
|
(93
|
)
|
||||
December 31, 2017
|
(278
|
)
|
|
—
|
|
|
(250
|
)
|
|
(528
|
)
|
||||
Cumulative-effect adjustments (ASU 2016-01)
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income before reclassifications
|
(116
|
)
|
|
—
|
|
|
—
|
|
|
(116
|
)
|
||||
Amounts reclassified from accumulated OCI to earnings
|
32
|
|
|
—
|
|
|
4
|
|
|
36
|
|
||||
Period change
|
(84
|
)
|
|
—
|
|
|
4
|
|
|
(80
|
)
|
||||
December 31, 2018
|
$
|
(363
|
)
|
|
$
|
—
|
|
|
$
|
(246
|
)
|
|
$
|
(609
|
)
|
(1)
|
AOCI amounts at
December 31, 2018
,
2017
, and
2016
include
$137 million
,
$95 million
, and
$82 million
of net unrealized losses (before any deferred tax benefits) on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.
|
|
Reclassifications out of accumulated OCI
|
||||||||
Accumulated OCI components
|
Amounts reclassified
from accumulated OCI
|
|
Location of net gain (loss)
reclassified from accumulated OCI into earnings
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized (losses)
|
$
|
(13
|
)
|
|
$
|
(8
|
)
|
|
Interest income—held-to-maturity securities—taxable
|
Realized (loss) on sale of securities
|
(28
|
)
|
|
(14
|
)
|
|
Noninterest income—net gains (losses) on sale of securities
|
||
OTTI recorded
|
—
|
|
|
(4
|
)
|
|
Noninterest income—
I
mpairment losses recognized in earnings on available-for-sale securities
|
||
Total before tax
|
(41
|
)
|
|
(26
|
)
|
|
|
||
Tax benefit
|
9
|
|
|
9
|
|
|
|
||
Net of tax
|
$
|
(32
|
)
|
|
$
|
(17
|
)
|
|
|
Gains (losses) on cash flow hedging relationships:
|
|
|
|
|
|
||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Interest and fee income—loans and leases
|
Total before tax
|
—
|
|
|
(1
|
)
|
|
|
||
Tax benefit
|
—
|
|
|
—
|
|
|
|
||
Net of tax
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|
|
|
|
|
||||
Actuarial losses
|
$
|
(13
|
)
|
|
$
|
(18
|
)
|
|
Noninterest income / expense (1)
|
Net periodic benefit costs
|
4
|
|
|
2
|
|
|
Noninterest income / expense (1)
|
||
Total before tax
|
(9
|
)
|
|
(16
|
)
|
|
|
||
Tax benefit
|
2
|
|
|
6
|
|
|
|
||
Net of tax
|
$
|
(7
|
)
|
|
$
|
(10
|
)
|
|
|
(1)
|
The activity for 2018 and 2017 is recorded in Noninterest Income - other income and Noninterest Expense - personnel costs, respectively, on the Consolidated Statements of Income.
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions, except per share data, share count in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Basic earnings per common share:
|
|
|
|
|
|
||||||
Net income
|
$
|
1,393
|
|
|
$
|
1,186
|
|
|
$
|
712
|
|
Preferred stock dividends
|
(70
|
)
|
|
(76
|
)
|
|
(65
|
)
|
|||
Net income available to common shareholders
|
$
|
1,323
|
|
|
$
|
1,110
|
|
|
$
|
647
|
|
Average common shares issued and outstanding
|
1,081,542
|
|
|
1,084,686
|
|
|
904,438
|
|
|||
Basic earnings per common share
|
$
|
1.22
|
|
|
$
|
1.02
|
|
|
$
|
0.72
|
|
Diluted earnings per common share:
|
|
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
1,323
|
|
|
$
|
1,110
|
|
|
$
|
647
|
|
Effect of assumed preferred stock conversion
|
—
|
|
|
31
|
|
|
—
|
|
|||
Net income applicable to diluted earnings per share
|
$
|
1,323
|
|
|
$
|
1,141
|
|
|
$
|
647
|
|
Average common shares issued and outstanding
|
1,081,542
|
|
|
1,084,686
|
|
|
904,438
|
|
|||
Dilutive potential common shares
|
|
|
|
|
|
||||||
Stock options and restricted stock units and awards
|
16,529
|
|
|
17,883
|
|
|
11,728
|
|
|||
Shares held in deferred compensation plans
|
3,511
|
|
|
3,160
|
|
|
2,486
|
|
|||
Dilutive impact of Preferred Stock
|
4,403
|
|
|
30,330
|
|
|
—
|
|
|||
Other
|
—
|
|
|
127
|
|
|
138
|
|
|||
Dilutive potential common shares
|
24,443
|
|
|
51,500
|
|
|
14,352
|
|
|||
Total diluted average common shares issued and outstanding
|
1,105,985
|
|
|
1,136,186
|
|
|
918,790
|
|
|||
Diluted earnings per common share
|
$
|
1.20
|
|
|
$
|
1.00
|
|
|
$
|
0.70
|
|
(dollar amounts in millions)
|
|
Year Ended
December 31, 2018 |
||
Noninterest income
|
|
|
||
Noninterest income from contracts with customers
|
|
$
|
881
|
|
Noninterest income within the scope of other GAAP topics
|
|
440
|
|
|
Total noninterest income
|
|
$
|
1,321
|
|
(dollar amounts in millions)
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
Major Revenue Streams
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Service charges on deposit accounts
|
$
|
290
|
|
|
$
|
64
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
363
|
|
Card and payment processing income
|
198
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
||||||
Trust and investment management services
|
28
|
|
|
4
|
|
|
—
|
|
|
139
|
|
|
—
|
|
|
171
|
|
||||||
Insurance income
|
34
|
|
|
5
|
|
|
—
|
|
|
41
|
|
|
2
|
|
|
82
|
|
||||||
Other income
|
38
|
|
|
6
|
|
|
3
|
|
|
8
|
|
|
1
|
|
|
56
|
|
||||||
Net revenue from contracts with customers
|
$
|
588
|
|
|
$
|
90
|
|
|
$
|
8
|
|
|
$
|
192
|
|
|
$
|
3
|
|
|
$
|
881
|
|
Noninterest income
within the scope of other GAAP topics
|
150
|
|
|
223
|
|
|
2
|
|
|
1
|
|
|
64
|
|
|
440
|
|
||||||
Total noninterest income
|
$
|
738
|
|
|
$
|
313
|
|
|
$
|
10
|
|
|
$
|
193
|
|
|
$
|
67
|
|
|
$
|
1,321
|
|
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Share-based compensation expense
|
$
|
78
|
|
|
$
|
92
|
|
|
$
|
66
|
|
Tax benefit
|
14
|
|
|
32
|
|
|
22
|
|
Assumptions
|
2018
|
|
2017
|
|
2016
|
||||||
Risk-free interest rate
|
2.88
|
%
|
|
2.04
|
%
|
|
1.63
|
%
|
|||
Expected dividend yield
|
3.71
|
|
|
3.31
|
|
|
3.18
|
|
|||
Expected volatility of Huntington’s common stock
|
24.0
|
|
|
29.5
|
|
|
30.0
|
|
|||
Expected option term (years)
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
|||
Weighted-average grant date fair value per share
|
$
|
2.58
|
|
|
$
|
2.81
|
|
|
$
|
2.17
|
|
(dollar amounts in millions, except per share and options amounts in thousands)
|
Options
|
|
Weighted-
Average Exercise Price |
|
Weighted-Average
Remaining
Contractual Life (Years)
|
|
Aggregate
Intrinsic Value |
|||||
Outstanding at January 1, 2018
|
13,918
|
|
|
$
|
8.21
|
|
|
|
|
|
||
Granted
|
2,538
|
|
|
14.81
|
|
|
|
|
|
|||
Exercised
|
(5,775
|
)
|
|
6.57
|
|
|
|
|
|
|||
Forfeited/expired
|
(64
|
)
|
|
13.31
|
|
|
|
|
|
|||
Outstanding at December 31, 2018
|
10,617
|
|
|
$
|
10.64
|
|
|
5.4
|
|
$
|
22
|
|
Expected to vest (1)
|
4,503
|
|
|
$
|
13.36
|
|
|
8.6
|
|
$
|
2
|
|
Exercisable at December 31, 2018
|
5,981
|
|
|
$
|
8.52
|
|
|
3.0
|
|
$
|
21
|
|
(1)
|
The number of options expected to vest reflects an estimate of
133,000
shares expected to be forfeited.
|
|
Restricted Stock Awards
|
|
Restricted Stock Units
|
|
Performance Share Units
|
|||||||||||||||
(amounts in thousands, except per share amounts)
|
Quantity
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|
Quantity
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|
Quantity
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|||||||||
Nonvested at January 1, 2018
|
448
|
|
|
$
|
9.68
|
|
|
16,159
|
|
|
$
|
11.26
|
|
|
3,018
|
|
|
$
|
10.67
|
|
Granted
|
—
|
|
|
—
|
|
|
4,743
|
|
|
15.01
|
|
|
691
|
|
|
14.81
|
|
|||
Vested
|
(227
|
)
|
|
9.68
|
|
|
(4,948
|
)
|
|
10.56
|
|
|
(719
|
)
|
|
10.89
|
|
|||
Forfeited
|
(20
|
)
|
|
9.68
|
|
|
(474
|
)
|
|
12.32
|
|
|
(32
|
)
|
|
12.27
|
|
|||
Nonvested at December 31, 2018
|
201
|
|
|
$
|
9.68
|
|
|
15,480
|
|
|
$
|
12.51
|
|
|
2,958
|
|
|
$
|
11.75
|
|
|
Pension Benefits
|
||||
|
2018
|
|
2017
|
||
Weighted-average assumptions used to determine benefit obligations
|
|
|
|
||
Discount rate
|
4.41
|
%
|
|
3.73
|
%
|
Weighted-average assumptions used to determine net periodic benefit cost
|
|
|
|
||
Discount rate
|
3.73
|
|
|
4.38
|
|
Expected return on plan assets
|
5.75
|
|
|
6.50
|
|
|
Pension Benefits
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Projected benefit obligation at beginning of measurement year
|
$
|
900
|
|
|
$
|
851
|
|
Changes due to:
|
|
|
|
||||
Service cost
|
3
|
|
|
3
|
|
||
Interest cost
|
29
|
|
|
30
|
|
||
Benefits paid
|
(26
|
)
|
|
(27
|
)
|
||
Settlements
|
(18
|
)
|
|
(31
|
)
|
||
Actuarial assumptions and gains (losses)
|
(67
|
)
|
|
74
|
|
||
Total changes
|
(79
|
)
|
|
49
|
|
||
Projected benefit obligation at end of measurement year
|
$
|
821
|
|
|
$
|
900
|
|
|
Pension Benefits
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Fair value of plan assets at beginning of measurement year
|
$
|
903
|
|
|
$
|
841
|
|
Changes due to:
|
|
|
|
||||
Actual return on plan assets
|
(30
|
)
|
|
118
|
|
||
Settlements
|
(19
|
)
|
|
(29
|
)
|
||
Benefits paid
|
(26
|
)
|
|
(27
|
)
|
||
Total changes
|
(75
|
)
|
|
62
|
|
||
Fair value of plan assets at end of measurement year
|
$
|
828
|
|
|
$
|
903
|
|
|
Pension Benefits (1)
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Service cost
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
5
|
|
Interest cost
|
29
|
|
|
30
|
|
|
30
|
|
|||
Expected return on plan assets
|
(49
|
)
|
|
(55
|
)
|
|
(45
|
)
|
|||
Amortization of loss
|
9
|
|
|
7
|
|
|
7
|
|
|||
Settlements
|
7
|
|
|
11
|
|
|
(8
|
)
|
|||
Benefit costs
|
$
|
(1
|
)
|
|
$
|
(4
|
)
|
|
$
|
(11
|
)
|
(1)
|
The pension costs for 2018 were recorded in noninterest income - other income. For 2017 and 2016 the costs were recorded in noninterest expense - personnel costs, in the Consolidated Statements of Income.
|
|
Fair Value
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||
Mutual funds-money market
|
$
|
4
|
|
|
—
|
%
|
|
$
|
14
|
|
|
2
|
%
|
U.S. Treasury bills
|
4
|
|
|
1
|
|
|
5
|
|
|
1
|
|
||
Fixed income:
|
|
|
|
|
|
|
|
|
|||||
Corporate obligations
|
272
|
|
|
33
|
|
|
293
|
|
|
32
|
|
||
U.S. Government obligations
|
298
|
|
|
36
|
|
|
216
|
|
|
24
|
|
||
U.S. Government agencies
|
22
|
|
|
3
|
|
|
23
|
|
|
3
|
|
||
Equities:
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds-equities
|
64
|
|
|
8
|
|
|
118
|
|
|
13
|
|
||
Common stock
|
98
|
|
|
12
|
|
|
158
|
|
|
17
|
|
||
Preferred stock
|
5
|
|
|
1
|
|
|
5
|
|
|
1
|
|
||
Exchange traded funds
|
45
|
|
|
5
|
|
|
58
|
|
|
6
|
|
||
Limited Partnerships
|
16
|
|
|
1
|
|
|
13
|
|
|
1
|
|
||
Fair value of plan assets
|
$
|
828
|
|
|
100
|
%
|
|
$
|
903
|
|
|
100
|
%
|
(dollar amounts in millions)
|
Pension Benefits
|
||
2019
|
$
|
49
|
|
2020
|
49
|
|
|
2021
|
48
|
|
|
2022
|
48
|
|
|
2023
|
48
|
|
|
2024 through 2028
|
238
|
|
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Other liabilities
|
$
|
63
|
|
|
$
|
78
|
|
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Net actuarial loss
|
$
|
(257
|
)
|
|
$
|
(264
|
)
|
|
$
|
(217
|
)
|
Prior service cost
|
11
|
|
|
14
|
|
|
12
|
|
|||
Defined benefit pension plans
|
$
|
(246
|
)
|
|
$
|
(250
|
)
|
|
$
|
(205
|
)
|
|
2018
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Tax (expense) Benefit
|
|
After-tax
|
||||||
Net actuarial (loss) gain:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
$
|
(5
|
)
|
|
$
|
2
|
|
|
$
|
(3
|
)
|
Amortization included in net periodic benefit costs
|
13
|
|
|
(3
|
)
|
|
10
|
|
|||
Prior service cost:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization included in net periodic benefit costs
|
(4
|
)
|
|
1
|
|
|
(3
|
)
|
|||
Total recognized in OCI
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
2017
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Tax (expense) Benefit
|
|
After-tax (1)
|
||||||
Net actuarial (loss) gain:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
$
|
(16
|
)
|
|
$
|
6
|
|
|
$
|
(10
|
)
|
Amortization included in net periodic benefit costs
|
18
|
|
|
(7
|
)
|
|
11
|
|
|||
Prior service cost:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization included in net periodic benefit costs
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|||
Total recognized in OCI
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
TCJA reclassification from AOCI to retained earnings recorded during 2017 was $45 million.
|
|
2016
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Tax (expense) Benefit
|
|
After-tax
|
||||||
Net actuarial (loss) gain:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
$
|
38
|
|
|
$
|
(13
|
)
|
|
$
|
25
|
|
Amortization included in net periodic benefit costs
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Prior service cost:
|
|
|
|
|
|
||||||
Amounts arising during the year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization included in net periodic benefit costs
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|||
Total recognized in OCI
|
$
|
38
|
|
|
$
|
(13
|
)
|
|
$
|
25
|
|
|
December 31,
|
||||||
(dollar amounts in millions, share amounts in thousands)
|
2018
|
|
2017
|
||||
Shares in Huntington common stock
|
11,635
|
|
|
13,566
|
|
||
Market value of Huntington common stock
|
$
|
139
|
|
|
$
|
198
|
|
Dividends received on shares of Huntington stock
|
6
|
|
|
4
|
|
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Unrecognized tax benefits at beginning of year
|
$
|
50
|
|
|
$
|
24
|
|
Gross increases for tax positions taken during prior years
|
—
|
|
|
26
|
|
||
Gross decreases for tax positions taken during prior years
|
(12
|
)
|
|
—
|
|
||
Settlements with taxing authorities
|
(38
|
)
|
|
—
|
|
||
Unrecognized tax benefits at end of year
|
$
|
—
|
|
|
$
|
50
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Current tax provision (benefit)
|
|
|
|
|
|
||||||
Federal
|
$
|
152
|
|
|
$
|
41
|
|
|
$
|
40
|
|
State
|
20
|
|
|
(1
|
)
|
|
3
|
|
|||
Total current tax provision
|
172
|
|
|
40
|
|
|
43
|
|
|||
Deferred tax provision (benefit)
|
|
|
|
|
|
||||||
Federal
|
71
|
|
|
151
|
|
|
161
|
|
|||
State
|
(8
|
)
|
|
17
|
|
|
4
|
|
|||
Total deferred tax provision
|
63
|
|
|
168
|
|
|
165
|
|
|||
Provision for income taxes
|
$
|
235
|
|
|
$
|
208
|
|
|
$
|
208
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Provision for income taxes computed at the statutory rate
|
$
|
342
|
|
|
$
|
488
|
|
|
$
|
322
|
|
Increases (decreases):
|
|
|
|
|
|
||||||
Tax-exempt income
|
(23
|
)
|
|
(31
|
)
|
|
(27
|
)
|
|||
Tax-exempt bank owned life insurance income
|
(14
|
)
|
|
(23
|
)
|
|
(20
|
)
|
|||
General business credits
|
(80
|
)
|
|
(71
|
)
|
|
(64
|
)
|
|||
Capital loss
|
(60
|
)
|
|
(67
|
)
|
|
(46
|
)
|
|||
Impact from TCJA
|
(3
|
)
|
|
(123
|
)
|
|
—
|
|
|||
Affordable housing investment amortization, net of tax benefits
|
64
|
|
|
46
|
|
|
37
|
|
|||
State income taxes, net
|
10
|
|
|
11
|
|
|
5
|
|
|||
Stock based compensation
|
(14
|
)
|
|
(13
|
)
|
|
(4
|
)
|
|||
Other
|
13
|
|
|
(9
|
)
|
|
5
|
|
|||
Provision for income taxes
|
$
|
235
|
|
|
$
|
208
|
|
|
$
|
208
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowances for credit losses
|
$
|
184
|
|
|
$
|
162
|
|
Fair value adjustments
|
173
|
|
|
142
|
|
||
Net operating and other loss carryforward
|
95
|
|
|
108
|
|
||
Accrued expense/prepaid
|
16
|
|
|
17
|
|
||
Pension and other employee benefits
|
14
|
|
|
—
|
|
||
Market discount
|
6
|
|
|
10
|
|
||
Partnership investments
|
5
|
|
|
7
|
|
||
Tax credit carryforward
|
—
|
|
|
153
|
|
||
Other assets
|
6
|
|
|
6
|
|
||
Total deferred tax assets
|
499
|
|
|
605
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Lease financing
|
262
|
|
|
249
|
|
||
Loan origination costs
|
148
|
|
|
116
|
|
||
Operating assets
|
69
|
|
|
53
|
|
||
Mortgage servicing rights
|
45
|
|
|
39
|
|
||
Purchase accounting adjustments
|
25
|
|
|
68
|
|
||
Securities adjustments
|
6
|
|
|
6
|
|
||
Deferred dividend income
|
—
|
|
|
77
|
|
||
Pension and other employee benefits
|
—
|
|
|
5
|
|
||
Other liabilities
|
2
|
|
|
18
|
|
||
Total deferred tax liabilities
|
557
|
|
|
631
|
|
||
Net deferred tax (liability) asset before valuation allowance
|
(58
|
)
|
|
(26
|
)
|
||
Valuation allowance
|
(6
|
)
|
|
(6
|
)
|
||
Net deferred tax (liability) asset
|
$
|
(64
|
)
|
|
$
|
(32
|
)
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
December 31, 2018
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
$
|
1
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
Other securities
|
77
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|||||
|
78
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Residential CMOs
|
—
|
|
|
6,999
|
|
|
—
|
|
|
—
|
|
|
6,999
|
|
|||||
Residential MBS
|
—
|
|
|
1,255
|
|
|
—
|
|
|
—
|
|
|
1,255
|
|
|||||
Commercial MBS
|
—
|
|
|
1,583
|
|
|
—
|
|
|
—
|
|
|
1,583
|
|
|||||
Other agencies
|
—
|
|
|
126
|
|
|
—
|
|
|
—
|
|
|
126
|
|
|||||
Municipal securities
|
—
|
|
|
275
|
|
|
3,165
|
|
|
—
|
|
|
3,440
|
|
|||||
Asset-backed securities
|
—
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
315
|
|
|||||
Corporate debt
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||
Other securities/Sovereign debt
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
5
|
|
|
10,610
|
|
|
3,165
|
|
|
—
|
|
|
13,780
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other securities
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
Loans held for sale
|
—
|
|
|
613
|
|
|
—
|
|
|
—
|
|
|
613
|
|
|||||
Loans held for investment
|
—
|
|
|
49
|
|
|
30
|
|
|
—
|
|
|
79
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
Derivative assets
|
21
|
|
|
474
|
|
|
5
|
|
|
(291
|
)
|
|
209
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
11
|
|
|
390
|
|
|
3
|
|
|
(217
|
)
|
|
187
|
|
|
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
Year Ended December 31, 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)
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(1
|
)
|
|
35
|
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
11
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
658
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Settlements
|
—
|
|
|
3
|
|
|
(605
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
3,165
|
|
|
$
|
—
|
|
|
$
|
30
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(52
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2017 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
14
|
|
|
$
|
(2
|
)
|
|
$
|
2,798
|
|
|
$
|
76
|
|
|
$
|
48
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(3
|
)
|
|
16
|
|
|
(2
|
)
|
|
(5
|
)
|
|
1
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
14
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
787
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(408
|
)
|
|
(1
|
)
|
|
—
|
|
|||||
Closing balance
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
3,167
|
|
|
$
|
24
|
|
|
$
|
38
|
|
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2016 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
18
|
|
|
$
|
6
|
|
|
$
|
2,095
|
|
|
$
|
100
|
|
|
$
|
2
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(4
|
)
|
|
(1
|
)
|
|
7
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
6
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
1,399
|
|
|
—
|
|
|
56
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
(25
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(638
|
)
|
|
(3
|
)
|
|
—
|
|
|||||
Closing balance
|
$
|
14
|
|
|
$
|
(2
|
)
|
|
$
|
2,798
|
|
|
$
|
76
|
|
|
$
|
48
|
|
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at end of the reporting date
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
(33
|
)
|
|
$
|
4
|
|
|
$
|
—
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that are transferred to loans held for sale, which is classified as Level 2.
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2018 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
||||||||
Mortgage banking income
|
$
|
(1
|
)
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Interest and fee income
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Total
|
$
|
(1
|
)
|
|
$
|
35
|
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2017 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage banking income
|
$
|
(3
|
)
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||||
Interest and fee income
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total
|
$
|
(3
|
)
|
|
$
|
16
|
|
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
Level 3 Fair Value Measurements
Year Ended December 31, 2016 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage banking income (loss)
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|||||
Noninterest income
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(2
|
)
|
|||||
Total
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
7
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
(dollar amounts in millions)
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
$
|
613
|
|
|
$
|
594
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans held for investment
|
79
|
|
|
87
|
|
|
(8
|
)
|
|
6
|
|
|
7
|
|
|
(1
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
(dollar amounts in millions)
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
|
Fair value
carrying amount |
|
Aggregate
unpaid principal |
|
Difference
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
$
|
413
|
|
|
$
|
400
|
|
|
$
|
13
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Loans held for investment
|
93
|
|
|
102
|
|
|
$
|
(9
|
)
|
|
10
|
|
|
11
|
|
|
$
|
(1
|
)
|
|
Net gains (losses) from fair value
changes Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Assets
|
|
|
|
|
|
||||||
Loans held for sale
|
$
|
5
|
|
|
$
|
8
|
|
|
$
|
7
|
|
Loans held for investment
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Fair Value Measurements Using
|
|
|
|||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
Gains/(Losses) Year Ended December 31, 2018 |
|||||
Impaired loans
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
(1
|
)
|
Other real estate owned
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
(7
|
)
|
Loans held for sale
|
145
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
(11
|
)
|
|
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
|
|
—
|
%
|
-
|
10
|
%
|
|
4
|
%
|
|
|
|
|
|
|
Cumulative default
|
|
—
|
%
|
-
|
64
|
%
|
|
3
|
%
|
||
|
|
|
|
|
Loss given default
|
|
5
|
%
|
-
|
90
|
%
|
|
24
|
%
|
||
Asset-backed securities
|
24
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
7
|
%
|
|
7
|
%
|
|
7
|
%
|
|
|
|
|
|
|
Cumulative prepayment rate
|
|
—
|
%
|
|
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
|
%
|
|
December 31, 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
|
2,725
|
|
|
—
|
|
|
—
|
|
|
2,725
|
|
|
2,725
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
105
|
|
|
105
|
|
|
105
|
|
Available-for-sale securities
|
—
|
|
|
—
|
|
|
13,780
|
|
|
13,780
|
|
|
13,780
|
|
Held-to-maturity securities
|
8,565
|
|
|
—
|
|
|
—
|
|
|
8,565
|
|
|
8,286
|
|
Other securities
|
543
|
|
|
—
|
|
|
22
|
|
|
565
|
|
|
565
|
|
Loans held for sale
|
—
|
|
|
191
|
|
|
613
|
|
|
804
|
|
|
806
|
|
Net loans and leases (1)
|
74,049
|
|
|
—
|
|
|
79
|
|
|
74,128
|
|
|
73,668
|
|
Derivatives
|
—
|
|
|
—
|
|
|
209
|
|
|
209
|
|
|
209
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
84,774
|
|
|
—
|
|
|
—
|
|
|
84,774
|
|
|
84,731
|
|
Short-term borrowings
|
2,017
|
|
|
—
|
|
|
—
|
|
|
2,017
|
|
|
2,017
|
|
Long-term debt
|
8,625
|
|
|
—
|
|
|
—
|
|
|
8,625
|
|
|
8,718
|
|
Derivatives
|
—
|
|
|
—
|
|
|
187
|
|
|
187
|
|
|
187
|
|
|
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 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
|
|
December 31, 2018
|
||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Trading account securities
|
$
|
78
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
105
|
|
Available-for-sale securities
|
5
|
|
|
10,610
|
|
|
3,165
|
|
|
13,780
|
|
||||
Held-to-maturity securities
|
—
|
|
|
8,286
|
|
|
—
|
|
|
8,286
|
|
||||
Other securities (1)
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||
Loans held for sale
|
—
|
|
|
613
|
|
|
193
|
|
|
806
|
|
||||
Net loans and direct financing leases
|
—
|
|
|
49
|
|
|
73,619
|
|
|
73,668
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
—
|
|
|
76,922
|
|
|
7,809
|
|
|
84,731
|
|
||||
Short-term borrowings
|
1
|
|
|
—
|
|
|
2,016
|
|
|
2,017
|
|
||||
Long-term debt
|
—
|
|
|
8,158
|
|
|
560
|
|
|
8,718
|
|
|
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 (1)
|
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
|
|
(1)
|
Excludes securities without readily determinable fair values.
|
|
December 31, 2018
|
December 31, 2017
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Derivatives designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
44
|
|
|
$
|
42
|
|
|
$
|
22
|
|
|
$
|
121
|
|
Derivatives not designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
261
|
|
|
165
|
|
|
187
|
|
|
100
|
|
||||
Foreign exchange contracts
|
23
|
|
|
19
|
|
|
18
|
|
|
18
|
|
||||
Commodities contracts
|
172
|
|
|
168
|
|
|
92
|
|
|
87
|
|
||||
Equity contracts
|
—
|
|
|
10
|
|
|
3
|
|
|
5
|
|
||||
Total Contracts
|
$
|
500
|
|
|
$
|
404
|
|
|
$
|
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)
|
|
|
|
|
Year Ended December 31,
|
||
Interest rate contracts:
|
|
|
|
|
|
||
Customer
|
|
Capital markets fees
|
|
|
$
|
41
|
|
Mortgage Banking
|
|
Mortgage banking income
|
|
|
(19
|
)
|
|
Foreign exchange contracts
|
|
Capital markets fees
|
|
|
27
|
|
|
Commodities contracts
|
|
Capital markets fees
|
|
|
6
|
|
|
Equity contracts
|
|
Other noninterest expense
|
|
|
4
|
|
|
Total
|
|
|
|
|
$
|
59
|
|
|
December 31, 2018
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Investment securities
|
—
|
|
|
12
|
|
|
12
|
|
|||
Long-term debt
|
4,865
|
|
|
—
|
|
|
4,865
|
|
|||
Total notional value at December 31, 2018
|
$
|
4,865
|
|
|
$
|
12
|
|
|
$
|
4,877
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
December 31, 2017
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Long-term debt
|
8,375
|
|
|
—
|
|
|
8,375
|
|
|||
Total notional value at December 31, 2017
|
$
|
8,375
|
|
|
$
|
—
|
|
|
$
|
8,375
|
|
|
December 31, 2018
|
||||||||||||||
|
|
|
Average Maturity (years)
|
|
|
|
Weighted-Average Rate
|
||||||||
(dollar amounts in millions)
|
Notional Value
|
|
|
Fair Value
|
|
Receive
|
|
Pay
|
|||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||
Receive fixed—generic
|
$
|
12
|
|
|
1.2
|
|
$
|
—
|
|
|
2.20
|
%
|
|
2.46
|
%
|
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||
Receive fixed—generic
|
4,865
|
|
|
2.6
|
|
2
|
|
|
2.24
|
|
|
2.54
|
|
||
Total swap portfolio at December 31, 2018
|
$
|
4,877
|
|
|
2.6
|
|
$
|
2
|
|
|
2.24
|
%
|
|
2.54
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2017
|
||||||||||||||
|
|
|
Average Maturity (years)
|
|
|
|
Weighted-Average Rate
|
||||||||
(dollar amounts in millions)
|
Notional Value
|
|
|
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
|
)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
|||
Interest rate contracts
|
|
|
|
|
|
|||
Change in fair value of interest rate swaps hedging long-term debt (1)
|
112
|
|
|
(53
|
)
|
|
(122
|
)
|
Change in fair value of hedged long term debt (1)
|
(104
|
)
|
|
54
|
|
|
112
|
|
(1)
|
Recognized in Interest expense— long-term debt in the Consolidated Statements of Income.
|
|
Carrying Amount of the Hedged Liabilities
|
|
Cumulative Amount of Fair Value Hedging Adjustment To Hedged Liabilities
|
||||
(dollar amounts in millions)
|
December 31, 2018
|
|
December 31, 2018
|
||||
Long-term debt
|
$
|
4,845
|
|
|
$
|
(12
|
)
|
Offsetting of Derivative Assets
|
||||||||||||||||||||||||
|
|
|
|
Gross amounts
offset in the
consolidated
balance sheets
|
|
Net amounts of
assets
presented in
the
consolidated
balance sheets
|
|
Gross amounts not offset in the condensed consolidated balance sheets
|
|
|
||||||||||||||
(dollar amounts in millions)
|
|
Gross amounts
of recognized
assets
|
|
|
|
Financial
instruments
|
|
Cash collateral
received
|
|
Net amount
|
||||||||||||||
December 31, 2018
|
Derivatives
|
$
|
500
|
|
|
$
|
(291
|
)
|
|
$
|
209
|
|
|
$
|
(4
|
)
|
|
$
|
(53
|
)
|
|
$
|
152
|
|
December 31, 2017
|
Derivatives
|
322
|
|
|
(190
|
)
|
|
132
|
|
|
(11
|
)
|
|
(18
|
)
|
|
103
|
|
Offsetting of Derivative Liabilities
|
||||||||||||||||||||||||
|
|
|
|
Gross amounts
offset in the
consolidated
balance sheets
|
|
Net amounts of
liabilities
presented in
the
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
|
||||||||||||||
December 31, 2018
|
Derivatives
|
$
|
404
|
|
|
$
|
(217
|
)
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
175
|
|
December 31, 2017
|
Derivatives
|
331
|
|
|
(245
|
)
|
|
86
|
|
|
—
|
|
|
(21
|
)
|
|
65
|
|
|
December 31, 2018
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
Trust Preferred Securities
|
14
|
|
|
252
|
|
|
—
|
|
|||
Affordable Housing Tax Credit Partnerships
|
708
|
|
|
357
|
|
|
708
|
|
|||
Other Investments
|
126
|
|
|
53
|
|
|
126
|
|
|||
Total
|
$
|
848
|
|
|
$
|
662
|
|
|
$
|
834
|
|
|
December 31, 2017
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
Trust Preferred Securities
|
14
|
|
|
252
|
|
|
—
|
|
|||
Affordable Housing Tax Credit Partnerships
|
636
|
|
|
335
|
|
|
636
|
|
|||
Other Investments
|
125
|
|
|
53
|
|
|
125
|
|
|||
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
|
3.50
|
%
|
(2)
|
$
|
70
|
|
|
$
|
6
|
|
Huntington Capital II
|
3.42
|
|
(3)
|
32
|
|
|
3
|
|
||
Sky Financial Capital Trust III
|
4.20
|
|
(4)
|
72
|
|
|
2
|
|
||
Sky Financial Capital Trust IV
|
4.20
|
|
(4)
|
74
|
|
|
2
|
|
||
Camco Financial Trust
|
4.13
|
|
(5)
|
4
|
|
|
1
|
|
||
Total
|
|
|
$
|
252
|
|
|
$
|
14
|
|
(1)
|
Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.
|
(2)
|
Variable effective rate at
December 31, 2018
, based on three-month LIBOR +
0.70
%.
|
(3)
|
Variable effective rate at
December 31, 2018
, based on three-month LIBOR +
0.625
%.
|
(4)
|
Variable effective rate at
December 31, 2018
, based on three-month LIBOR +
1.40
%.
|
(5)
|
Variable effective rate at
December 31, 2018
, based on three month LIBOR +
1.33
%.
|
(dollar amounts in millions)
|
December 31,
2018 |
|
December 31,
2017 |
||||
Affordable housing tax credit investments
|
$
|
1,147
|
|
|
$
|
996
|
|
Less: amortization
|
(439
|
)
|
|
(360
|
)
|
||
Net affordable housing tax credit investments
|
$
|
708
|
|
|
$
|
636
|
|
Unfunded commitments
|
$
|
357
|
|
|
$
|
335
|
|
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Tax credits and other tax benefits recognized
|
$
|
92
|
|
|
$
|
91
|
|
|
$
|
80
|
|
Proportional amortization method
|
|
|
|
|
|
||||||
Tax credit amortization expense included in provision for income taxes
|
79
|
|
|
70
|
|
|
53
|
|
|||
Equity method
|
|
|
|
|
|
||||||
Tax credit investment losses included in noninterest income
|
—
|
|
|
—
|
|
|
1
|
|
|
At December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Contract amount representing credit risk
|
|
|
|
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial
|
$
|
17,149
|
|
|
$
|
16,219
|
|
Consumer
|
14,974
|
|
|
13,384
|
|
||
Commercial real estate
|
1,188
|
|
|
1,366
|
|
||
Standby letters of credit
|
676
|
|
|
510
|
|
||
Commercial letters-of-credit
|
14
|
|
|
21
|
|
|
|
Minimum
|
|
Minimum
|
|
|
|
Basel III
|
|||||||||||||||
|
|
Regulatory
|
|
Ratio+Capital
|
|
Well-
|
|
December 31,
|
|||||||||||||||
|
|
Capital
|
|
Conservation
|
|
Capitalized
|
|
2018
|
|
2017
|
|||||||||||||
(dollar amounts in millions)
|
|
Ratios
|
|
Buffer
|
|
Minimums
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET 1 risk-based capital
|
Consolidated
|
4.50
|
|
|
6.375
|
%
|
|
N/A
|
|
|
9.65
|
|
|
8,271
|
|
|
10.01
|
|
|
8,041
|
|
||
|
Bank
|
4.50
|
|
|
6.375
|
|
|
6.50
|
|
|
10.19
|
|
|
8,732
|
|
|
11.02
|
|
|
8,856
|
|
||
Tier 1 risk-based capital
|
Consolidated
|
6.00
|
|
|
7.875
|
|
|
6.00
|
|
|
11.06
|
|
|
9,478
|
|
|
11.34
|
|
|
9,110
|
|
||
|
Bank
|
6.00
|
|
|
7.875
|
|
|
8.00
|
|
|
11.21
|
|
|
9,611
|
|
|
12.10
|
|
|
9,727
|
|
||
Total risk-based capital
|
Consolidated
|
8.00
|
|
|
9.875
|
|
|
10.00
|
|
|
12.98
|
|
|
11,122
|
|
|
13.39
|
|
|
10,757
|
|
||
|
Bank
|
8.00
|
|
|
9.875
|
|
|
10.00
|
|
|
13.42
|
|
|
11,504
|
|
|
14.33
|
|
|
11,517
|
|
||
Tier 1 leverage
|
Consolidated
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
9.10
|
%
|
|
$
|
9,478
|
|
|
9.09
|
%
|
|
$
|
9,110
|
|
|
Bank
|
4.00
|
|
|
N/A
|
|
|
5.00
|
%
|
|
9.23
|
|
|
9,611
|
|
|
9.70
|
|
|
9,727
|
|
Balance Sheets
|
December 31,
|
||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
2,352
|
|
|
$
|
1,618
|
|
Due from The Huntington National Bank
|
739
|
|
|
798
|
|
||
Due from non-bank subsidiaries
|
40
|
|
|
58
|
|
||
Investment in The Huntington National Bank
|
11,493
|
|
|
11,696
|
|
||
Investment in non-bank subsidiaries
|
142
|
|
|
111
|
|
||
Accrued interest receivable and other assets
|
239
|
|
|
252
|
|
||
Total assets
|
$
|
15,005
|
|
|
$
|
14,533
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Long-term borrowings
|
$
|
3,216
|
|
|
$
|
3,128
|
|
Dividends payable, accrued expenses, and other liabilities
|
687
|
|
|
591
|
|
||
Total liabilities
|
3,903
|
|
|
3,719
|
|
||
Shareholders’ equity (1)
|
11,102
|
|
|
10,814
|
|
||
Total liabilities and shareholders’ equity
|
$
|
15,005
|
|
|
$
|
14,533
|
|
(1)
|
See Consolidated Statements of Changes in Shareholders’ Equity.
|
Statements of Income
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Income
|
|
|
|
|
|
||||||
Dividends from:
|
|
|
|
|
|
||||||
The Huntington National Bank
|
$
|
1,722
|
|
|
$
|
298
|
|
|
$
|
188
|
|
Non-bank subsidiaries
|
—
|
|
|
14
|
|
|
11
|
|
|||
Interest from:
|
|
|
|
|
|
||||||
The Huntington National Bank
|
27
|
|
|
20
|
|
|
14
|
|
|||
Non-bank subsidiaries
|
2
|
|
|
2
|
|
|
3
|
|
|||
Other
|
(2
|
)
|
|
4
|
|
|
—
|
|
|||
Total income
|
1,749
|
|
|
338
|
|
|
216
|
|
|||
Expense
|
|
|
|
|
|
||||||
Personnel costs
|
2
|
|
|
19
|
|
|
12
|
|
|||
Interest on borrowings
|
124
|
|
|
91
|
|
|
59
|
|
|||
Other
|
118
|
|
|
115
|
|
|
123
|
|
|||
Total expense
|
244
|
|
|
225
|
|
|
194
|
|
|||
Income before income taxes and equity in undistributed net income of subsidiaries
|
1,505
|
|
|
113
|
|
|
22
|
|
|||
Provision (benefit) for income taxes
|
(48
|
)
|
|
(56
|
)
|
|
(56
|
)
|
|||
Income before equity in undistributed net income of subsidiaries
|
1,553
|
|
|
169
|
|
|
78
|
|
|||
Increase (decrease) in undistributed net income (loss) of:
|
|
|
|
|
|
||||||
The Huntington National Bank
|
(186
|
)
|
|
1,015
|
|
|
629
|
|
|||
Non-bank subsidiaries
|
26
|
|
|
2
|
|
|
5
|
|
|||
Net income
|
$
|
1,393
|
|
|
$
|
1,186
|
|
|
$
|
712
|
|
Other comprehensive income (loss) (1)
|
(80
|
)
|
|
(34
|
)
|
|
(175
|
)
|
|||
Comprehensive income
|
$
|
1,313
|
|
|
$
|
1,152
|
|
|
$
|
537
|
|
(1)
|
See Consolidated Statements of Comprehensive Income for other comprehensive income (loss) detail.
|
Statements of Cash Flows
|
Year Ended December 31,
|
||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,393
|
|
|
$
|
1,186
|
|
|
$
|
712
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net income of subsidiaries
|
197
|
|
|
(997
|
)
|
|
(634
|
)
|
|||
Depreciation and amortization
|
(2
|
)
|
|
4
|
|
|
(1
|
)
|
|||
Other, net
|
121
|
|
|
(37
|
)
|
|
(24
|
)
|
|||
Net cash (used for) provided by operating activities
|
1,709
|
|
|
156
|
|
|
53
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Repayments from subsidiaries
|
21
|
|
|
442
|
|
|
464
|
|
|||
Advances to subsidiaries
|
(13
|
)
|
|
(29
|
)
|
|
(1,758
|
)
|
|||
Proceeds from sale of securities available-for-sale
|
—
|
|
|
1
|
|
|
(2
|
)
|
|||
Cash paid for acquisitions, net of cash received
|
(15
|
)
|
|
—
|
|
|
(133
|
)
|
|||
Net cash (used for) provided by investing activities
|
(7
|
)
|
|
414
|
|
|
(1,429
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Net proceeds from issuance of medium-term notes
|
501
|
|
|
—
|
|
|
—
|
|
|||
Net proceeds from issuance of long-term borrowings
|
—
|
|
|
—
|
|
|
1,990
|
|
|||
Payment of medium-term notes
|
(400
|
)
|
|
—
|
|
|
—
|
|
|||
Payment of long-term debt
|
—
|
|
|
—
|
|
|
(65
|
)
|
|||
Dividends paid on common stock
|
(584
|
)
|
|
(425
|
)
|
|
(299
|
)
|
|||
Repurchases of common stock
|
(939
|
)
|
|
(260
|
)
|
|
—
|
|
|||
Net proceeds from issuance of preferred stock
|
495
|
|
|
—
|
|
|
585
|
|
|||
Other, net
|
(41
|
)
|
|
(20
|
)
|
|
1
|
|
|||
Net cash provided by (used for) financing activities
|
(968
|
)
|
|
(705
|
)
|
|
2,212
|
|
|||
Increase (decrease) in cash and cash equivalents
|
734
|
|
|
(135
|
)
|
|
836
|
|
|||
Cash and cash equivalents at beginning of year
|
1,618
|
|
|
1,753
|
|
|
917
|
|
|||
Cash and cash equivalents at end of year
|
$
|
2,352
|
|
|
$
|
1,618
|
|
|
$
|
1,753
|
|
Supplemental disclosure:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
126
|
|
|
$
|
90
|
|
|
$
|
36
|
|
Income Statements
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington
Consolidated
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,685
|
|
|
$
|
938
|
|
|
$
|
403
|
|
|
$
|
192
|
|
|
$
|
(29
|
)
|
|
$
|
3,189
|
|
Provision (benefit) for credit losses
|
141
|
|
|
38
|
|
|
55
|
|
|
1
|
|
|
—
|
|
|
235
|
|
||||||
Noninterest income
|
738
|
|
|
313
|
|
|
10
|
|
|
193
|
|
|
67
|
|
|
1,321
|
|
||||||
Noninterest expense
|
1,696
|
|
|
513
|
|
|
149
|
|
|
250
|
|
|
39
|
|
|
2,647
|
|
||||||
Provision (benefit) for income taxes
|
123
|
|
|
147
|
|
|
44
|
|
|
28
|
|
|
(107
|
)
|
|
235
|
|
||||||
Net income (loss)
|
$
|
463
|
|
|
$
|
553
|
|
|
$
|
165
|
|
|
$
|
106
|
|
|
$
|
106
|
|
|
$
|
1,393
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,549
|
|
|
$
|
901
|
|
|
$
|
424
|
|
|
$
|
172
|
|
|
$
|
(44
|
)
|
|
$
|
3,002
|
|
Provision (benefit) for credit losses
|
108
|
|
|
30
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
201
|
|
||||||
Noninterest income
|
735
|
|
|
278
|
|
|
14
|
|
|
188
|
|
|
92
|
|
|
1,307
|
|
||||||
Noninterest expense
|
1,647
|
|
|
474
|
|
|
149
|
|
|
243
|
|
|
201
|
|
|
2,714
|
|
||||||
Provision (benefit) for income taxes
|
185
|
|
|
236
|
|
|
79
|
|
|
41
|
|
|
(333
|
)
|
|
208
|
|
||||||
Net income (loss)
|
$
|
344
|
|
|
$
|
439
|
|
|
$
|
147
|
|
|
$
|
76
|
|
|
$
|
180
|
|
|
$
|
1,186
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,224
|
|
|
$
|
717
|
|
|
$
|
344
|
|
|
$
|
153
|
|
|
$
|
(69
|
)
|
|
$
|
2,369
|
|
Provision (benefit) for credit losses
|
68
|
|
|
79
|
|
|
47
|
|
|
(3
|
)
|
|
—
|
|
|
191
|
|
||||||
Noninterest income
|
649
|
|
|
245
|
|
|
15
|
|
|
177
|
|
|
64
|
|
|
1,150
|
|
||||||
Noninterest expense
|
1,339
|
|
|
397
|
|
|
118
|
|
|
229
|
|
|
325
|
|
|
2,408
|
|
||||||
Provision (benefit) for income taxes
|
163
|
|
|
170
|
|
|
68
|
|
|
36
|
|
|
(229
|
)
|
|
208
|
|
||||||
Net income (loss)
|
$
|
303
|
|
|
$
|
316
|
|
|
$
|
126
|
|
|
$
|
68
|
|
|
$
|
(101
|
)
|
|
$
|
712
|
|
|
Assets at
December 31,
|
|
Deposits at
December 31,
|
||||||||||||
(dollar amounts in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Consumer & Business Banking
|
$
|
27,486
|
|
|
$
|
26,262
|
|
|
$
|
50,300
|
|
|
$
|
45,427
|
|
Commercial Banking
|
34,818
|
|
|
32,067
|
|
|
23,185
|
|
|
21,286
|
|
||||
Vehicle Finance
|
19,435
|
|
|
17,865
|
|
|
346
|
|
|
381
|
|
||||
RBHPCG
|
6,540
|
|
|
5,829
|
|
|
6,809
|
|
|
6,202
|
|
||||
Treasury / Other
|
20,502
|
|
|
22,162
|
|
|
4,134
|
|
|
3,745
|
|
||||
Total
|
$
|
108,781
|
|
|
$
|
104,185
|
|
|
$
|
84,774
|
|
|
$
|
77,041
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
(dollar amounts in millions, except per share data)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
||||||||
Interest income
|
$
|
1,056
|
|
|
$
|
1,007
|
|
|
$
|
972
|
|
|
$
|
914
|
|
Interest expense
|
223
|
|
|
205
|
|
|
188
|
|
|
144
|
|
||||
Net interest income
|
833
|
|
|
802
|
|
|
784
|
|
|
770
|
|
||||
Provision for credit losses
|
60
|
|
|
53
|
|
|
56
|
|
|
66
|
|
||||
Noninterest income
|
329
|
|
|
342
|
|
|
336
|
|
|
314
|
|
||||
Noninterest expense
|
711
|
|
|
651
|
|
|
652
|
|
|
633
|
|
||||
Income before income taxes
|
391
|
|
|
440
|
|
|
412
|
|
|
385
|
|
||||
Provision for income taxes
|
57
|
|
|
62
|
|
|
57
|
|
|
59
|
|
||||
Net income
|
334
|
|
|
378
|
|
|
355
|
|
|
326
|
|
||||
Dividends on preferred shares
|
19
|
|
|
18
|
|
|
21
|
|
|
12
|
|
||||
Net income applicable to common shares
|
$
|
315
|
|
|
$
|
360
|
|
|
$
|
334
|
|
|
$
|
314
|
|
Net income per common share — Basic
|
$
|
0.30
|
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.29
|
|
Net income per common share — Diluted
|
0.29
|
|
|
0.33
|
|
|
0.30
|
|
|
0.28
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
(dollar amounts in millions, except per share data)
|
2017
|
|
2017
|
|
2017
|
|
2017
|
||||||||
Interest income
|
$
|
894
|
|
|
$
|
873
|
|
|
$
|
846
|
|
|
$
|
820
|
|
Interest expense
|
124
|
|
|
115
|
|
|
101
|
|
|
91
|
|
||||
Net interest income
|
770
|
|
|
758
|
|
|
745
|
|
|
729
|
|
||||
Provision for credit losses
|
65
|
|
|
43
|
|
|
25
|
|
|
68
|
|
||||
Noninterest income
|
340
|
|
|
330
|
|
|
325
|
|
|
312
|
|
||||
Noninterest expense
|
633
|
|
|
680
|
|
|
694
|
|
|
707
|
|
||||
Income before income taxes
|
412
|
|
|
365
|
|
|
351
|
|
|
266
|
|
||||
Provision (benefit) for income taxes
|
(20
|
)
|
|
90
|
|
|
79
|
|
|
59
|
|
||||
Net income
|
432
|
|
|
275
|
|
|
272
|
|
|
207
|
|
||||
Dividends on preferred shares
|
19
|
|
|
19
|
|
|
19
|
|
|
19
|
|
||||
Net income applicable to common shares
|
$
|
413
|
|
|
$
|
256
|
|
|
$
|
253
|
|
|
$
|
188
|
|
Net income per common share — Basic
|
$
|
0.38
|
|
|
$
|
0.24
|
|
|
$
|
0.23
|
|
|
$
|
0.17
|
|
Net income per common share — Diluted
|
0.37
|
|
|
0.23
|
|
|
0.23
|
|
|
0.17
|
|
Plan Category (1)
|
|
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants,
and rights (2)
(a)
|
|
Weighted-average
exercise price of
outstanding
options, warrants,
and rights (3)
(b)
|
|
Number of
securities
remaining available
for future issuance
under equity
compensation
plans (excluding
securities reflected
in column (a)) (4)
(c)
|
||||
Equity compensation plans approved by security holders
|
|
29,252,019
|
|
|
$
|
3.86
|
|
|
26,185,301
|
|
Equity compensation plans not approved by security holders
|
|
3,290
|
|
|
6.08
|
|
|
—
|
|
|
Total
|
|
29,255,309
|
|
|
$
|
3.86
|
|
|
26,185,301
|
|
(1)
|
All equity compensation plan authorizations for shares of common stock provide for the number of shares to be adjusted for stock splits, stock dividends, and other changes in capitalization. The Huntington Investment and Tax Savings Plan, a broad-based plan qualified under Code Section 401(a) which includes Huntington common stock as one of a number of investment options available to participants, is excluded from the table.
|
(2)
|
The numbers in this column (a) reflect shares of common stock to be issued upon exercise of outstanding stock options and the vesting of outstanding awards of RSUs, and PSUs and the release of DSUs. The shares of common stock to be issued upon exercise or vesting under equity compensation plans not approved by shareholders include an inducement grant issued outside of the Company’s stock plans, and awards granted under the following plans which are no longer active and for which Huntington has not reserved the right to make subsequent grants or awards: employee and director stock plans of Unizan Financial Corp., Camco Financial Corporation, and FirstMerit Corporation assumed in the acquisitions of these companies.
|
(3)
|
The weighted-average exercise prices in this column are based on outstanding options and do not take into account unvested awards of RSUs, RSAs and PSUs and unreleased DSUs as these awards do not have an exercise price.
|
(4)
|
The number of shares in this column (c) reflects the number of shares remaining available for future issuance under Huntington’s 2018 Plan, excluding shares reflected in column (a). The number of shares in this column (c) does not include shares of common stock to be issued under the following compensation plans: the Executive Deferred Compensation Plan, which provides senior officers designated by the Compensation Committee the opportunity to defer up to 90% of base salary, annual bonus compensation and certain equity awards, and up to 90% of long-term incentive awards; the Supplemental Plan under which voluntary participant contributions made by payroll deduction are used to purchase shares; the Deferred Compensation for Huntington Bancshares Incorporated Directors under which directors may defer their director compensation and such amounts may be invested in shares of common stock; and the Deferred Compensation Plan for directors (now inactive) under which directors of selected subsidiaries may defer their director compensation and such amounts may be invested in shares of Huntington common stock. These plans do not contain a limit on the number of shares that may be issued under them.
|
Exhibit
Number
|
Document Description
|
Report or Registration Statement
|
SEC File or
Registration
Number
|
Exhibit
Reference
|
3.1
|
||||
3.2
|
||||
3.3
|
||||
4.1
|
Instruments defining the Rights of Security Holders — reference is made to Articles Fifth, Eighth, and Tenth of Articles of Restatement of Charter, as amended and supplemented. Instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission upon request.
|
|
|
|
10.1
|
||||
10.2
|
||||
10.3
|
||||
10.4(P)
|
* Deferred Compensation Plan and Trust for Directors
|
Post-Effective Amendment No. 2 to Registration Statement on Form S-8 filed on January 28, 1991.
|
33-10546
|
4(a)
|
10.7
|
||||
10.8
|
||||
10.9
|
||||
10.10
|
||||
10.11
|
||||
10.12
|
||||
10.13
|
||||
10.14
|
||||
10.15
|
||||
10.16
|
||||
10.17
|
||||
10.18
|
||||
10.19
|
||||
10.20
|
||||
10.21
|
|
|
|
|
|
|
|
By:
|
|
/s/ Stephen D. Steinour
|
|
By:
|
|
/s/ Howell D. McCullough III
|
|
|
Stephen D. Steinour
|
|
|
|
Howell D. McCullough III
|
|
|
Chairman, President, Chief Executive
|
|
|
|
Chief Financial Officer
|
|
|
Officer, and Director (Principal Executive Officer)
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Nancy E. Maloney
|
|
|
|
|
|
|
Nancy E. Maloney
|
|
|
|
|
|
|
Executive Vice President, Controller
|
|
|
|
|
|
|
(Principal Accounting Officer)
|
Lizabeth Ardisana *
|
|
Lizabeth Ardisana
|
|
Director
|
|
|
|
Ann B. Crane *
|
|
Ann B. Crane
|
|
Director
|
|
|
|
Robert S. Cubbin *
|
|
Robert S. Cubbin
|
|
Director
|
|
|
|
Steven G. Elliott *
|
|
Steven G. Elliott
|
|
Director
|
|
|
|
Gina D. France *
|
|
Gina D. France
|
|
Director
|
|
|
|
J. Michael Hochschwender *
|
|
J. Michael Hochschwender
|
|
Director
|
|
|
|
John C. Inglis *
|
|
John C. Inglis
|
|
Director
|
|
|
|
Peter J. Kight *
|
|
Peter J. Kight
|
|
Director
|
|
|
|
Richard W. Neu *
|
|
Richard W. Neu
|
|
Director
|
|
|
|
David L. Porteous *
|
|
David L. Porteous
|
|
Director
|
|
|
|
Kathleen H. Ransier *
|
|
Kathleen H. Ransier
|
|
Director
|
|
|
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*/s/ Jana J. Litsey
|
|
Jana J. Litsey
|
|
Attorney-in-fact for each of the persons indicated
|
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41 South High Ltd. **
|
7575 Corporation
|
791, 801, AND 803 W. Big Beaver Road, LLC
|
AM-HBAN Solar Trust (Delaware)
|
Camco Statutory Trust 1 (Connecticut)
|
CASCADE Holdings, LLC (Illinois)
|
Community Bank Insurance Agency, Inc. (Michigan)
|
CREPD, LLC
|
FirstMerit Advisors, Inc.
|
FirstMerit Community Development Corporation
|
FirstMerit Mortgage Reinsurance Co., Inc. (Hawaii)
|
FirstMerit Risk Management, Inc. (Vermont)
|
FirstMerit Securities, Inc.
|
FirstMerit Title Agency, LTD.
|
FMRC, Inc. (Delaware)
|
Forty-One Corporation
|
Fourteen Corporation
|
Franklin Mortgage Asset Trust 2009-A (Delaware)
|
Haberer Registered Investment Advisor, Inc.
|
HBI Payments Holdings, Inc.
|
HBI Specialty Insurance, Inc.
|
HBI Title Services, Inc.
|
HCFFL, LLC (Nevada)
|
Henry Acquisitions, Inc.
|
HLFB, Inc. (Nevada)
|
HMC Reinsurance Company (Vermont)
|
HMFAL, LLC
|
HNB I LLC (Delaware)
|
HPAL Holdings, LLC (Nevada)
|
HPAL, LLC (Nevada)
|
HPAL II, LLC (Nevada)
|
HPCDS, Inc. (Nevada)
|
HPCF Corporation (Nevada)
|
HPCKAL, LLC (Nevada)
|
HPCLI, Inc.
|
HREIC Holdings, LLC
|
Huntington Auto Trust 2016-1 (Delaware)
|
Huntington Bancshares Financial Corporation
|
Huntington Capital Financing Holdings I, Inc. (Nevada)
|
Huntington Capital Financing Holdings II, Inc. (Nevada)
|
Huntington Capital Financing OREO, Inc. (Nevada)
|
Huntington Capital I (Delaware)
|
Huntington Capital II (Delaware)
|
Huntington Captive Insurance Company (Arizona)
|
Huntington Equipment Finance, Inc. (Delaware)
|
Huntington Equity Investments, LLC
|
Huntington Finance LLC
|
Huntington Funding, LLC (Delaware)
|
Huntington Insurance, Inc.
|
Huntington LT (Delaware)
|
Huntington Merchant Services, LLC (Delaware)**
|
Huntington Mezzanine Opportunities Inc.
|
Huntington Municipal Fund I, Inc.
|
Huntington Municipal Fund II, Inc.
|
Huntington Municipal Securities, Inc. (Nevada) *
|
Huntington Preferred Capital Holdings, Inc. (Indiana)
|
Huntington Preferred Capital, Inc. *
|
Huntington Preferred Capital II, Inc.
|
Huntington Public Capital Corporation (Nevada)
|
Huntington Renewable Energy Investments, LLC
|
Huntington Residential Mortgage Securities, Inc.
|
Huntington Technology Finance, Inc. (Delaware)
|
Huntington Technology Funding, LLC (Delaware)
|
Huntington West, Inc. (Delaware)
|
Hutchinson Shockey Erley & Co. (Illinois)
|
Inner City Partnerships, LLC **
|
Metropolitan Savings Service Corporation
|
Mezzanine Opportunities LLC **
|
Mezzanine Opportunities II LLC **
|
Midwest Funding, LLC (Illinois)
|
Mobile Consultants, Inc.
|
Prospect Trust I (Delaware)
|
Rate Risk Management Advisors, LLC
|
Red Mountain LLC (Delaware)
|
Sky Capital LLC (Delaware) *
|
Sky Financial Capital Trust III (Delaware)
|
Sky Financial Capital Trust IV (Delaware)
|
STB Auto Exchange, LLC
|
The Derlam Company
|
The Huntington Capital Investment Company
|
The Huntington Capital Investment Company II
|
The Huntington Community Development Corporation
|
The Huntington Investment Company
|
The Huntington Kentucky, LLC (Kentucky)
|
The Huntington Leasing Company
|
The Huntington National Bank (United States)
|
The Huntington Real Estate Investment Company
|
The Huntington Real Estate Investment Company II
|
Thirty-Seven Corporation
|
Tower Hill Securities, Inc. (Nevada)
|
Troy BNK Investors LLC
|
Unizan Capital, LLC (Delaware) *
|
WMC Acquisition LLC (Indiana)
|
/s/ Stephen D. Steinour
|
Stephen D. Steinour
Chairman, President, Chief Executive Officer, and Director (Principal Executive Officer)
|
|
/s/ Howell D. McCullough III
|
Howell D. McCullough III
Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
/s/ Nancy E. Maloney
|
Nancy E. Maloney
Executive Vice President and Controller (Principal Accounting Officer)
|
|
/s/ Lizabeth Ardisana *
|
Lizabeth Ardisana
|
Director
|
|
/s/ Ann B. Crane *
|
Ann B. Crane
|
Director
|
|
/s/ Robert S. Cubbin *
|
Robert S. Cubbin
|
Director
|
|
/s/ Steven G. Elliott *
|
Steven G. Elliott
|
Director
|
|
|
/s/ Gina D. France *
|
Gina D. France
|
Director
|
|
/s/ J. Michael Hochschwender *
|
J. Michael Hochschwender
|
Director
|
|
/s/ John C. Inglis *
|
John C. Inglis
|
Director
|
|
/s/ Peter J. Kight *
|
Peter J. Kight
|
Director
|
|
/s/ Richard W. Neu *
|
Richard W. Neu
|
Director
|
|
/s/ David L. Porteous *
|
David L. Porteous
|
Director
|
|
/s/ Kathleen H. Ransier *
|
Kathleen H. Ransier
|
Director
|
1.
|
I have reviewed this Annual Report on Form 10-K of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Stephen D. Steinour
|
|
Stephen D. Steinour
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Howell D. McCullough III
|
|
Howell D. McCullough III
|
|
Chief Financial Officer
|
|
/s/ Stephen D. Steinour
|
|
Stephen D. Steinour
|
|
Chief Executive Officer
|
|
February 15, 2019
|
|
/s/ Howell D. McCullough III
|
|
Howell D. McCullough III
|
|
Chief Financial Officer
|
|
February 15, 2019
|