☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
1-34073
|
31-0724920
|
(State or other jurisdiction of
incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
Title of class
|
Trading
Symbol(s)
|
Name of exchange on which registered
|
5.875% Series C Non-Cumulative, perpetual preferred stock
|
HBANN
|
NASDAQ
|
6.250% Series D Non-Cumulative, perpetual preferred stock
|
HBANO
|
NASDAQ
|
Common Stock—Par Value $0.01 per Share
|
HBAN
|
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
|
ALLL
|
|
Allowance for Loan and Lease Losses
|
AOCI
|
|
Accumulated Other Comprehensive Income
|
ASC
|
|
Accounting Standards Codification
|
AULC
|
|
Allowance for Unfunded Loan Commitments
|
Basel III
|
|
Refers to the final rule issued by the FRB and OCC and published in the Federal Register on October 11, 2013
|
C&I
|
|
Commercial and Industrial
|
CCAR
|
|
Comprehensive Capital Analysis and Review
|
CDs
|
|
Certificates of Deposit
|
CECL
|
|
Current Expected Credit Loss
|
CET1
|
|
Common equity tier 1 on a transitional Basel III basis
|
CFPB
|
|
Bureau of Consumer Financial Protection
|
CMO
|
|
Collateralized Mortgage Obligations
|
CRE
|
|
Commercial Real Estate
|
EVE
|
|
Economic Value of Equity
|
FASB
|
|
Financial Accounting Standards Board
|
FDIC
|
|
Federal Deposit Insurance Corporation
|
FHLB
|
|
Federal Home Loan Bank of Cincinnati
|
FICO
|
|
Fair Isaac Corporation
|
FRB
|
|
Federal Reserve Bank
|
FTE
|
|
Fully-Taxable Equivalent
|
FTP
|
|
Funds Transfer Pricing
|
FVO
|
|
Fair Value Option
|
GAAP
|
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Generally Accepted Accounting Principles in the United States of America
|
HTM
|
|
Held-to-Maturity
|
IRS
|
|
Internal Revenue Service
|
LCR
|
|
Liquidity Coverage Ratio
|
LIBOR
|
|
London Interbank Offered Rate
|
LIHTC
|
|
Low Income Housing Tax Credit
|
MBS
|
|
Mortgage-Backed Securities
|
MD&A
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
MSR
|
|
Mortgage Servicing Right
|
NAICS
|
|
North American Industry Classification System
|
NALs
|
|
Nonaccrual Loans
|
NCO
|
|
Net Charge-off
|
NII
|
|
Noninterest Income
|
NIM
|
|
Net Interest Margin
|
NPAs
|
|
Nonperforming Assets
|
OCC
|
|
Office of the Comptroller of the Currency
|
OCI
|
|
Other Comprehensive Income (Loss)
|
OLEM
|
|
Other Loans Especially Mentioned
|
OREO
|
|
Other Real Estate Owned
|
OTTI
|
|
Other-Than-Temporary Impairment
|
PCD
|
|
Purchased-Credit-Deteriorated
|
RBHPCG
|
|
Regional Banking and The Huntington Private Client Group
|
ROC
|
|
Risk Oversight Committee
|
SEC
|
|
Securities and Exchange Commission
|
TDR
|
|
Troubled Debt Restructuring
|
U.S. Treasury
|
|
U.S. Department of the Treasury
|
UCS
|
|
Uniform Classification System
|
VIE
|
|
Variable Interest Entity
|
XBRL
|
|
eXtensible Business Reporting Language
|
|
|
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|
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|||||||
Table 2 - Selected Year to Date Income Statements
|
||||||||||||||
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|
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|
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|
|||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions, except per share amounts)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Interest income
|
$
|
3,190
|
|
|
$
|
2,893
|
|
|
$
|
297
|
|
|
10
|
%
|
Interest expense
|
757
|
|
|
537
|
|
|
220
|
|
|
41
|
|
|||
Net interest income
|
2,433
|
|
|
2,356
|
|
|
77
|
|
|
3
|
|
|||
Provision for credit losses
|
208
|
|
|
175
|
|
|
33
|
|
|
19
|
|
|||
Net interest income after provision for credit losses
|
2,225
|
|
|
2,181
|
|
|
44
|
|
|
2
|
|
|||
Service charges on deposit accounts
|
277
|
|
|
270
|
|
|
7
|
|
|
3
|
|
|||
Card and payment processing income
|
183
|
|
|
166
|
|
|
17
|
|
|
10
|
|
|||
Trust and investment management services
|
131
|
|
|
129
|
|
|
2
|
|
|
2
|
|
|||
Mortgage banking income
|
109
|
|
|
85
|
|
|
24
|
|
|
28
|
|
|||
Capital markets fees
|
92
|
|
|
74
|
|
|
18
|
|
|
24
|
|
|||
Insurance income
|
64
|
|
|
61
|
|
|
3
|
|
|
5
|
|
|||
Bank owned life insurance income
|
49
|
|
|
51
|
|
|
(2
|
)
|
|
(4
|
)
|
|||
Gain on sale of loans and leases
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|||
Securities gains (losses)
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Other income
|
140
|
|
|
119
|
|
|
21
|
|
|
18
|
|
|||
Total noninterest income
|
1,082
|
|
|
992
|
|
|
90
|
|
|
9
|
|
|||
Personnel costs
|
1,228
|
|
|
1,160
|
|
|
68
|
|
|
6
|
|
|||
Outside data processing and other services
|
257
|
|
|
211
|
|
|
46
|
|
|
22
|
|
|||
Equipment
|
121
|
|
|
116
|
|
|
5
|
|
|
4
|
|
|||
Net occupancy
|
118
|
|
|
114
|
|
|
4
|
|
|
4
|
|
|||
Professional services
|
40
|
|
|
43
|
|
|
(3
|
)
|
|
(7
|
)
|
|||
Marketing
|
28
|
|
|
38
|
|
|
(10
|
)
|
|
(26
|
)
|
|||
Deposit and other insurance expense
|
24
|
|
|
54
|
|
|
(30
|
)
|
|
(56
|
)
|
|||
Amortization of intangibles
|
37
|
|
|
40
|
|
|
(3
|
)
|
|
(8
|
)
|
|||
Other expense
|
167
|
|
|
160
|
|
|
7
|
|
|
4
|
|
|||
Total noninterest expense
|
2,020
|
|
|
1,936
|
|
|
84
|
|
|
4
|
|
|||
Income before income taxes
|
1,287
|
|
|
1,237
|
|
|
50
|
|
|
4
|
|
|||
Provision for income taxes
|
193
|
|
|
178
|
|
|
15
|
|
|
8
|
|
|||
Net income
|
1,094
|
|
|
1,059
|
|
|
35
|
|
|
3
|
|
|||
Dividends declared on preferred shares
|
55
|
|
|
51
|
|
|
4
|
|
|
8
|
|
|||
Net income applicable to common shares
|
$
|
1,039
|
|
|
$
|
1,008
|
|
|
$
|
31
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|||||||
Average common shares—basic
|
1,042,246
|
|
|
1,090,570
|
|
|
(48,324
|
)
|
|
(4
|
)%
|
|||
Average common shares—diluted
|
1,059,064
|
|
|
1,116,978
|
|
|
(57,914
|
)
|
|
(5
|
)
|
|||
Net income per common share—basic
|
$
|
1.00
|
|
|
$
|
0.92
|
|
|
$
|
0.08
|
|
|
9
|
|
Net income per common share—diluted
|
0.98
|
|
|
0.90
|
|
|
0.08
|
|
|
9
|
|
|||
|
|
|
|
|
|
|
|
|||||||
Revenue—FTE
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
2,433
|
|
|
$
|
2,356
|
|
|
$
|
77
|
|
|
3
|
%
|
FTE adjustment
|
20
|
|
|
22
|
|
|
(2
|
)
|
|
(9
|
)
|
|||
Net interest income (2)
|
2,453
|
|
|
2,378
|
|
|
75
|
|
|
3
|
|
|||
Noninterest income
|
1,082
|
|
|
992
|
|
|
90
|
|
|
9
|
|
|||
Total revenue (2)
|
$
|
3,535
|
|
|
$
|
3,370
|
|
|
$
|
165
|
|
|
5
|
%
|
(1)
|
Net income excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 21% tax rate.
|
(2)
|
On an FTE basis assuming a 21% tax rate.
|
(3)
|
Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains.
|
Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Average Yield Rates (3)
|
|||||||||||||
|
Three Months Ended
|
|||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Fully-taxable equivalent basis (1)
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in Federal Reserve Bank (2)
|
2.19
|
%
|
|
2.38
|
%
|
|
2.40
|
%
|
|
2.33
|
%
|
|
—
|
%
|
Interest-bearing deposits in banks
|
2.38
|
|
|
2.08
|
|
|
1.75
|
|
|
1.97
|
|
|
1.95
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||||
Trading account securities
|
2.36
|
|
|
1.92
|
|
|
2.03
|
|
|
1.94
|
|
|
0.26
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|||||
Taxable
|
2.67
|
|
|
2.73
|
|
|
2.82
|
|
|
2.71
|
|
|
2.61
|
|
Tax-exempt
|
3.63
|
|
|
3.66
|
|
|
3.69
|
|
|
4.12
|
|
|
3.53
|
|
Total available-for-sale securities
|
2.87
|
|
|
2.94
|
|
|
3.01
|
|
|
3.04
|
|
|
2.84
|
|
Held-to-maturity securities—taxable
|
2.51
|
|
|
2.54
|
|
|
2.52
|
|
|
2.45
|
|
|
2.43
|
|
Other securities
|
3.15
|
|
|
3.44
|
|
|
4.51
|
|
|
4.24
|
|
|
4.58
|
|
Total securities
|
2.74
|
|
|
2.79
|
|
|
2.86
|
|
|
2.84
|
|
|
2.73
|
|
Loans held for sale
|
3.69
|
|
|
4.00
|
|
|
4.07
|
|
|
4.04
|
|
|
4.45
|
|
Loans and leases: (4)
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
4.57
|
|
|
4.82
|
|
|
4.91
|
|
|
4.81
|
|
|
4.64
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
5.50
|
|
|
5.59
|
|
|
5.58
|
|
|
5.47
|
|
|
5.31
|
|
Commercial
|
4.67
|
|
|
4.88
|
|
|
5.00
|
|
|
4.99
|
|
|
4.63
|
|
Commercial real estate
|
4.81
|
|
|
5.00
|
|
|
5.10
|
|
|
5.07
|
|
|
4.74
|
|
Total commercial
|
4.61
|
|
|
4.85
|
|
|
4.94
|
|
|
4.86
|
|
|
4.66
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||
Automobile
|
4.09
|
|
|
4.02
|
|
|
3.95
|
|
|
3.88
|
|
|
3.75
|
|
Home equity
|
5.38
|
|
|
5.56
|
|
|
5.61
|
|
|
5.45
|
|
|
5.21
|
|
Residential mortgage
|
3.80
|
|
|
3.84
|
|
|
3.86
|
|
|
3.82
|
|
|
3.78
|
|
RV and marine
|
4.96
|
|
|
4.94
|
|
|
4.96
|
|
|
5.10
|
|
|
5.06
|
|
Other consumer
|
13.34
|
|
|
13.29
|
|
|
13.07
|
|
|
12.35
|
|
|
12.16
|
|
Total consumer
|
4.72
|
|
|
4.76
|
|
|
4.75
|
|
|
4.67
|
|
|
4.54
|
|
Total loans and leases
|
4.67
|
|
|
4.80
|
|
|
4.85
|
|
|
4.76
|
|
|
4.60
|
|
Total earning assets
|
4.21
|
|
|
4.35
|
|
|
4.40
|
|
|
4.32
|
|
|
4.16
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits—interest-bearing
|
0.57
|
|
|
0.58
|
|
|
0.56
|
|
|
0.48
|
|
|
0.45
|
|
Money market deposits
|
1.20
|
|
|
1.15
|
|
|
1.04
|
|
|
0.91
|
|
|
0.77
|
|
Savings and other domestic deposits
|
0.22
|
|
|
0.23
|
|
|
0.23
|
|
|
0.23
|
|
|
0.24
|
|
Core certificates of deposit (5)
|
2.17
|
|
|
2.15
|
|
|
2.11
|
|
|
2.00
|
|
|
1.82
|
|
Other domestic time deposits of $250,000 or more
|
1.85
|
|
|
1.92
|
|
|
1.82
|
|
|
1.67
|
|
|
1.40
|
|
Brokered deposits and negotiable CDs
|
2.21
|
|
|
2.39
|
|
|
2.38
|
|
|
2.22
|
|
|
1.98
|
|
Total interest-bearing deposits
|
0.98
|
|
|
0.97
|
|
|
0.94
|
|
|
0.84
|
|
|
0.73
|
|
Short-term borrowings
|
2.28
|
|
|
2.41
|
|
|
2.41
|
|
|
2.49
|
|
|
1.98
|
|
Long-term debt
|
3.59
|
|
|
3.91
|
|
|
3.98
|
|
|
3.82
|
|
|
3.78
|
|
Total interest-bearing liabilities
|
1.36
|
|
|
1.39
|
|
|
1.35
|
|
|
1.23
|
|
|
1.13
|
|
Demand deposits—noninterest-bearing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net interest rate spread
|
2.85
|
|
|
2.96
|
|
|
3.05
|
|
|
3.09
|
|
|
3.03
|
|
Impact of noninterest-bearing funds on margin
|
0.35
|
|
|
0.35
|
|
|
0.34
|
|
|
0.32
|
|
|
0.29
|
|
Net interest margin
|
3.20
|
%
|
|
3.31
|
%
|
|
3.39
|
%
|
|
3.41
|
%
|
|
3.32
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate.
|
(2)
|
Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018.
|
(3)
|
Loan and lease and deposit average yield rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
|
(4)
|
For purposes of this analysis, NALs are reflected in the average balances of loans.
|
(5)
|
Includes consumer certificates of deposit of $250,000 or more.
|
Table 4 - Consolidated YTD Average Balance Sheets and Net Interest Margin Analysis
|
||||||||||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
YTD Average Balances
|
|
YTD Average Rates (3)
|
|||||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|
Nine Months Ended September 30,
|
|||||||||||||||
Fully-taxable equivalent basis (1)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|
2019
|
|
2018
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in Federal Reserve Bank (2)
|
$
|
511
|
|
|
$
|
—
|
|
|
$
|
511
|
|
|
100
|
%
|
|
2.32
|
%
|
|
—
|
%
|
Interest-bearing deposits in banks
|
131
|
|
|
86
|
|
|
45
|
|
|
52
|
|
|
2.10
|
|
|
1.95
|
|
|||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Trading account securities
|
146
|
|
|
84
|
|
|
62
|
|
|
74
|
|
|
2.10
|
|
|
0.21
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Taxable
|
10,784
|
|
|
10,817
|
|
|
(33
|
)
|
|
—
|
|
|
2.74
|
|
|
2.58
|
|
|||
Tax-exempt
|
2,945
|
|
|
3,561
|
|
|
(616
|
)
|
|
(17
|
)
|
|
3.66
|
|
|
3.35
|
|
|||
Total available-for-sale securities
|
13,729
|
|
|
14,378
|
|
|
(649
|
)
|
|
(5
|
)
|
|
2.94
|
|
|
2.77
|
|
|||
Held-to-maturity securities—taxable
|
8,663
|
|
|
8,713
|
|
|
(50
|
)
|
|
(1
|
)
|
|
2.52
|
|
|
2.43
|
|
|||
Other securities
|
479
|
|
|
590
|
|
|
(111
|
)
|
|
(19
|
)
|
|
3.75
|
|
|
4.38
|
|
|||
Total securities
|
23,017
|
|
|
23,765
|
|
|
(748
|
)
|
|
(3
|
)
|
|
2.79
|
|
|
2.69
|
|
|||
Loans held for sale
|
771
|
|
|
615
|
|
|
156
|
|
|
25
|
|
|
3.90
|
|
|
4.19
|
|
|||
Loans and leases: (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
30,608
|
|
|
28,661
|
|
|
1,947
|
|
|
7
|
|
|
4.77
|
|
|
4.48
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction
|
1,169
|
|
|
1,149
|
|
|
20
|
|
|
2
|
|
|
5.56
|
|
|
5.09
|
|
|||
Commercial
|
5,727
|
|
|
6,131
|
|
|
(404
|
)
|
|
(7
|
)
|
|
4.85
|
|
|
4.49
|
|
|||
Commercial real estate
|
6,896
|
|
|
7,280
|
|
|
(384
|
)
|
|
(5
|
)
|
|
4.97
|
|
|
4.58
|
|
|||
Total commercial
|
37,504
|
|
|
35,941
|
|
|
1,563
|
|
|
4
|
|
|
4.80
|
|
|
4.50
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Automobile
|
12,253
|
|
|
12,247
|
|
|
6
|
|
|
—
|
|
|
4.02
|
|
|
3.65
|
|
|||
Home equity
|
9,491
|
|
|
9,948
|
|
|
(457
|
)
|
|
(5
|
)
|
|
5.51
|
|
|
5.07
|
|
|||
Residential mortgage
|
11,005
|
|
|
9,682
|
|
|
1,323
|
|
|
14
|
|
|
3.83
|
|
|
3.71
|
|
|||
RV and marine
|
3,413
|
|
|
2,723
|
|
|
690
|
|
|
25
|
|
|
4.95
|
|
|
5.09
|
|
|||
Other consumer
|
1,270
|
|
|
1,175
|
|
|
95
|
|
|
8
|
|
|
13.29
|
|
|
11.91
|
|
|||
Total consumer
|
37,432
|
|
|
35,775
|
|
|
1,657
|
|
|
5
|
|
|
4.74
|
|
|
4.44
|
|
|||
Total loans and leases
|
74,936
|
|
|
71,716
|
|
|
3,220
|
|
|
4
|
|
|
4.77
|
|
|
4.47
|
|
|||
Allowance for loan and lease losses
|
(786
|
)
|
|
(737
|
)
|
|
(49
|
)
|
|
(7
|
)
|
|
|
|
|
|||||
Net loans and leases
|
74,150
|
|
|
70,979
|
|
|
3,171
|
|
|
4
|
|
|
|
|
|
|||||
Total earning assets
|
99,366
|
|
|
96,182
|
|
|
3,184
|
|
|
3
|
|
|
4.32
|
%
|
|
4.05
|
%
|
|||
Cash and due from banks
|
835
|
|
|
1,277
|
|
|
(442
|
)
|
|
(35
|
)
|
|
|
|
|
|||||
Intangible assets
|
2,252
|
|
|
2,318
|
|
|
(66
|
)
|
|
(3
|
)
|
|
|
|
|
|||||
All other assets
|
6,054
|
|
|
5,640
|
|
|
414
|
|
|
7
|
|
|
|
|
|
|||||
Total assets
|
$
|
107,721
|
|
|
$
|
104,680
|
|
|
$
|
3,041
|
|
|
3
|
%
|
|
|
|
|
||
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Demand deposits—interest-bearing
|
$
|
19,763
|
|
|
$
|
19,105
|
|
|
$
|
658
|
|
|
3
|
%
|
|
0.57
|
%
|
|
0.37
|
%
|
Money market deposits
|
23,507
|
|
|
21,059
|
|
|
2,448
|
|
|
12
|
|
|
1.13
|
|
|
0.61
|
|
|||
Savings and other domestic deposits
|
10,039
|
|
|
11,267
|
|
|
(1,228
|
)
|
|
(11
|
)
|
|
0.23
|
|
|
0.22
|
|
|||
Core certificates of deposit (5)
|
5,858
|
|
|
3,677
|
|
|
2,181
|
|
|
59
|
|
|
2.14
|
|
|
1.57
|
|
|||
Other domestic time deposits of $250,000 or more
|
320
|
|
|
259
|
|
|
61
|
|
|
24
|
|
|
1.86
|
|
|
1.05
|
|
|||
Brokered deposits and negotiable CDs
|
2,893
|
|
|
3,501
|
|
|
(608
|
)
|
|
(17
|
)
|
|
2.33
|
|
|
1.76
|
|
|||
Total interest-bearing deposits
|
62,380
|
|
|
58,868
|
|
|
3,512
|
|
|
6
|
|
|
0.96
|
|
|
0.59
|
|
|||
Short-term borrowings
|
2,605
|
|
|
3,335
|
|
|
(730
|
)
|
|
(22
|
)
|
|
2.37
|
|
|
1.67
|
|
|||
Long-term debt
|
9,145
|
|
|
9,033
|
|
|
112
|
|
|
1
|
|
|
3.82
|
|
|
3.48
|
|
|||
Total interest-bearing liabilities
|
74,130
|
|
|
71,236
|
|
|
2,894
|
|
|
4
|
|
|
1.36
|
|
|
1.01
|
|
|||
Demand deposits—noninterest-bearing
|
$
|
19,864
|
|
|
$
|
20,393
|
|
|
(529
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
All other liabilities
|
2,277
|
|
|
1,935
|
|
|
342
|
|
|
18
|
|
|
|
|
|
|||||
Shareholders’ equity
|
11,450
|
|
|
11,116
|
|
|
334
|
|
|
3
|
|
|
|
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
107,721
|
|
|
$
|
104,680
|
|
|
$
|
3,041
|
|
|
3
|
%
|
|
|
|
|
||
Net interest rate spread
|
|
|
|
|
|
|
|
|
2.96
|
|
|
3.05
|
|
|||||||
Impact of noninterest-bearing funds on margin
|
|
|
|
|
|
|
|
|
0.34
|
|
|
0.26
|
|
|||||||
Net interest margin
|
|
|
|
|
|
|
|
|
3.30
|
%
|
|
3.31
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate.
|
(2)
|
Deposits in Federal Reserve Bank were treated as non-earning assets prior to 4Q 2018
|
(3)
|
Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
|
(4)
|
For purposes of this analysis, NALs are reflected in the average balances of loans.
|
(5)
|
Includes consumer certificates of deposit of $250,000 or more.
|
Table 5 - Noninterest Income
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
3Q19 vs. 3Q18
|
|
3Q19 vs. 2Q19
|
||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2019
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Service charges on deposit accounts
|
$
|
98
|
|
|
$
|
92
|
|
|
$
|
93
|
|
|
$
|
5
|
|
|
5
|
%
|
|
$
|
6
|
|
|
7
|
%
|
Card and payment processing income
|
64
|
|
|
63
|
|
|
57
|
|
|
7
|
|
|
12
|
|
|
1
|
|
|
2
|
|
|||||
Trust and investment management services
|
44
|
|
|
43
|
|
|
43
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|||||
Mortgage banking income
|
54
|
|
|
34
|
|
|
31
|
|
|
23
|
|
|
74
|
|
|
20
|
|
|
59
|
|
|||||
Capital markets fees
|
36
|
|
|
34
|
|
|
26
|
|
|
10
|
|
|
38
|
|
|
2
|
|
|
6
|
|
|||||
Insurance income
|
20
|
|
|
23
|
|
|
19
|
|
|
1
|
|
|
5
|
|
|
(3
|
)
|
|
(13
|
)
|
|||||
Bank owned life insurance income
|
18
|
|
|
15
|
|
|
19
|
|
|
(1
|
)
|
|
(5
|
)
|
|
3
|
|
|
20
|
|
|||||
Gain on sale of loans and leases
|
13
|
|
|
13
|
|
|
16
|
|
|
(3
|
)
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|||||
Securities gains (losses)
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
2
|
|
|
100
|
|
|
2
|
|
|
100
|
|
|||||
Other income
|
42
|
|
|
59
|
|
|
40
|
|
|
2
|
|
|
5
|
|
|
(17
|
)
|
|
(29
|
)
|
|||||
Total noninterest income
|
$
|
389
|
|
|
$
|
374
|
|
|
$
|
342
|
|
|
$
|
47
|
|
|
14
|
%
|
|
$
|
15
|
|
|
4
|
%
|
Table 7 - Noninterest Expense
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
3Q19 vs. 3Q18
|
|
3Q19 vs. 2Q19
|
||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2019
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Personnel costs
|
$
|
406
|
|
|
$
|
428
|
|
|
$
|
388
|
|
|
$
|
18
|
|
|
5
|
%
|
|
$
|
(22
|
)
|
|
(5
|
)%
|
Outside data processing and other services
|
87
|
|
|
89
|
|
|
69
|
|
|
18
|
|
|
26
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||
Net occupancy
|
38
|
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Equipment
|
41
|
|
|
40
|
|
|
38
|
|
|
3
|
|
|
8
|
|
|
1
|
|
|
3
|
|
|||||
Deposit and other insurance expense
|
8
|
|
|
8
|
|
|
18
|
|
|
(10
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
16
|
|
|
12
|
|
|
17
|
|
|
(1
|
)
|
|
(6
|
)
|
|
4
|
|
|
33
|
|
|||||
Marketing
|
10
|
|
|
11
|
|
|
12
|
|
|
(2
|
)
|
|
(17
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|||||
Amortization of intangibles
|
12
|
|
|
12
|
|
|
13
|
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|||||
Other expense
|
49
|
|
|
62
|
|
|
58
|
|
|
(9
|
)
|
|
(16
|
)
|
|
(13
|
)
|
|
(21
|
)
|
|||||
Total noninterest expense
|
$
|
667
|
|
|
$
|
700
|
|
|
$
|
651
|
|
|
$
|
16
|
|
|
2
|
%
|
|
$
|
(33
|
)
|
|
(5
|
)%
|
Number of employees (average full-time equivalent)
|
15,659
|
|
|
15,780
|
|
|
15,772
|
|
|
(113
|
)
|
|
(1
|
)%
|
|
(121
|
)
|
|
(1
|
)%
|
Table 9 - Loan and Lease Portfolio Composition
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(dollar amounts in millions)
|
September 30,
2019 |
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|||||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial
|
$
|
30,394
|
|
|
41
|
%
|
|
$
|
30,608
|
|
|
41
|
%
|
|
$
|
30,972
|
|
|
41
|
%
|
|
$
|
30,605
|
|
|
41
|
%
|
|
$
|
29,196
|
|
|
40
|
%
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction
|
1,157
|
|
|
2
|
|
|
1,146
|
|
|
1
|
|
|
1,152
|
|
|
2
|
|
|
1,185
|
|
|
2
|
|
|
1,111
|
|
|
2
|
|
|||||
Commercial
|
5,698
|
|
|
8
|
|
|
5,742
|
|
|
8
|
|
|
5,643
|
|
|
8
|
|
|
5,657
|
|
|
8
|
|
|
5,962
|
|
|
8
|
|
|||||
Commercial real estate
|
6,855
|
|
|
10
|
|
|
6,888
|
|
|
9
|
|
|
6,795
|
|
|
10
|
|
|
6,842
|
|
|
10
|
|
|
7,073
|
|
|
10
|
|
|||||
Total commercial
|
37,249
|
|
|
51
|
|
|
37,496
|
|
|
50
|
|
|
37,767
|
|
|
51
|
|
|
37,447
|
|
|
51
|
|
|
36,269
|
|
|
50
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Automobile
|
12,292
|
|
|
15
|
|
|
12,173
|
|
|
16
|
|
|
12,272
|
|
|
16
|
|
|
12,429
|
|
|
16
|
|
|
12,375
|
|
|
17
|
|
|||||
Home equity
|
9,300
|
|
|
12
|
|
|
9,419
|
|
|
12
|
|
|
9,551
|
|
|
13
|
|
|
9,722
|
|
|
13
|
|
|
9,850
|
|
|
13
|
|
|||||
Residential mortgage
|
11,247
|
|
|
15
|
|
|
11,182
|
|
|
15
|
|
|
10,885
|
|
|
14
|
|
|
10,728
|
|
|
14
|
|
|
10,459
|
|
|
14
|
|
|||||
RV and marine
|
3,553
|
|
|
5
|
|
|
3,492
|
|
|
5
|
|
|
3,344
|
|
|
4
|
|
|
3,254
|
|
|
4
|
|
|
3,152
|
|
|
4
|
|
|||||
Other consumer
|
1,251
|
|
|
2
|
|
|
1,271
|
|
|
2
|
|
|
1,260
|
|
|
2
|
|
|
1,320
|
|
|
2
|
|
|
1,265
|
|
|
2
|
|
|||||
Total consumer
|
37,643
|
|
|
49
|
|
|
37,537
|
|
|
50
|
|
|
37,312
|
|
|
49
|
|
|
37,453
|
|
|
49
|
|
|
37,101
|
|
|
50
|
|
|||||
Total loans and leases
|
$
|
74,892
|
|
|
100
|
%
|
|
$
|
75,033
|
|
|
100
|
%
|
|
$
|
75,079
|
|
|
100
|
%
|
|
$
|
74,900
|
|
|
100
|
%
|
|
$
|
73,370
|
|
|
100
|
%
|
(1)
|
Amounts include $3.5 billion, $3.6 billion, $3.6 billion, $3.6 billion and $3.3 billion of auto dealer services loans at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.
|
(1)
|
Other nonperforming assets include certain impaired investment securities and/or nonaccrual loans held-for-sale.
|
(2)
|
Nonperforming assets divided by the sum of loans and leases, other real estate owned, and other NPAs.
|
(1)
|
Percentages represent the percentage of each loan and lease category to total loans and leases.
|
Table 14 - Quarterly Net Charge-off Analysis
|
|||||||||||
|
Three Months Ended
|
||||||||||
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
(dollar amounts in millions)
|
2019
|
|
2019
|
|
2018
|
||||||
Net charge-offs (recoveries) by loan and lease type:
|
|||||||||||
Commercial:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
40
|
|
|
$
|
21
|
|
|
$
|
(1
|
)
|
Commercial real estate:
|
|
|
|
|
|
||||||
Construction
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Commercial
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Commercial real estate
|
(2
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|||
Total commercial
|
38
|
|
|
18
|
|
|
(4
|
)
|
|||
Consumer:
|
|
|
|
|
|
||||||
Automobile
|
8
|
|
|
5
|
|
|
8
|
|
|||
Home equity
|
2
|
|
|
2
|
|
|
1
|
|
|||
Residential mortgage
|
1
|
|
|
1
|
|
|
2
|
|
|||
RV and marine
|
2
|
|
|
2
|
|
|
2
|
|
|||
Other consumer
|
22
|
|
|
20
|
|
|
20
|
|
|||
Total consumer
|
35
|
|
|
30
|
|
|
33
|
|
|||
Total net charge-offs
|
$
|
73
|
|
|
$
|
48
|
|
|
$
|
29
|
|
|
|
|
|
|
|
||||||
Net charge-offs (recoveries) - annualized percentages:
|
|||||||||||
Commercial:
|
|
|
|
|
|
||||||
Commercial and industrial
|
0.52
|
%
|
|
0.27
|
%
|
|
(0.01
|
)%
|
|||
Commercial real estate:
|
|
|
|
|
|
||||||
Construction
|
(0.40
|
)
|
|
(0.08
|
)
|
|
(0.01
|
)
|
|||
Commercial
|
(0.09
|
)
|
|
(0.12
|
)
|
|
(0.18
|
)
|
|||
Commercial real estate
|
(0.14
|
)
|
|
(0.12
|
)
|
|
(0.15
|
)
|
|||
Total commercial
|
0.40
|
|
|
0.20
|
|
|
(0.04
|
)
|
|||
Consumer:
|
|
|
|
|
|
||||||
Automobile
|
0.26
|
|
|
0.17
|
|
|
0.26
|
|
|||
Home equity
|
0.11
|
|
|
0.07
|
|
|
0.06
|
|
|||
Residential mortgage
|
0.03
|
|
|
0.05
|
|
|
0.07
|
|
|||
RV and marine
|
0.23
|
|
|
0.25
|
|
|
0.25
|
|
|||
Other consumer
|
7.07
|
|
|
6.02
|
|
|
6.32
|
|
|||
Total consumer
|
0.38
|
|
|
0.31
|
|
|
0.36
|
|
|||
Net charge-offs as a % of average loans
|
0.39
|
%
|
|
0.25
|
%
|
|
0.16
|
%
|
Table 15 - Year to Date Net Charge-off Analysis
|
|||||||
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
||||
Net charge-offs (recoveries) by loan and lease type:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
92
|
|
|
$
|
19
|
|
Commercial real estate:
|
|
|
|
||||
Construction
|
(2
|
)
|
|
(1
|
)
|
||
Commercial
|
(1
|
)
|
|
(17
|
)
|
||
Commercial real estate
|
(3
|
)
|
|
(18
|
)
|
||
Total commercial
|
89
|
|
|
1
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
23
|
|
|
25
|
|
||
Home equity
|
7
|
|
|
4
|
|
||
Residential mortgage
|
5
|
|
|
4
|
|
||
RV and marine
|
7
|
|
|
7
|
|
||
Other consumer
|
61
|
|
|
54
|
|
||
Total consumer
|
103
|
|
|
94
|
|
||
Total net charge-offs
|
$
|
192
|
|
|
$
|
95
|
|
|
|
|
|
||||
Net charge-offs (recoveries) - annualized percentages:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
0.40
|
%
|
|
0.09
|
%
|
||
Commercial real estate:
|
|
|
|
||||
Construction
|
(0.19
|
)
|
|
(0.14
|
)
|
||
Commercial
|
(0.03
|
)
|
|
(0.34
|
)
|
||
Commercial real estate
|
(0.06
|
)
|
|
(0.31
|
)
|
||
Total commercial
|
0.32
|
|
|
0.01
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
0.25
|
|
|
0.27
|
|
||
Home equity
|
0.10
|
|
|
0.06
|
|
||
Residential mortgage
|
0.06
|
|
|
0.05
|
|
||
RV and marine
|
0.29
|
|
|
0.33
|
|
||
Other consumer
|
6.41
|
|
|
6.12
|
|
||
Total consumer
|
0.37
|
|
|
0.35
|
|
||
Net charge-offs as a % of average loans
|
0.34
|
%
|
|
0.18
|
%
|
(1)
|
The policy limit for the -100 basis point scenario changed from -4.0%, which was in effect at December 31, 2018, to -2.0% as of September 30, 2019.
|
Table 18 - Deposit Composition
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||||||||||||||||||||||
(dollar amounts in millions)
|
2019
|
|
2019
|
|
2019 (1)
|
|
2018 (2)
|
|
2018
|
|||||||||||||||||||||||||
By Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits—noninterest-bearing
|
$
|
20,553
|
|
|
25
|
%
|
|
$
|
19,383
|
|
|
24
|
%
|
|
$
|
20,036
|
|
|
24
|
%
|
|
$
|
21,783
|
|
|
26
|
%
|
|
$
|
19,863
|
|
|
24
|
%
|
Demand deposits—interest-bearing
|
19,976
|
|
|
24
|
|
|
19,085
|
|
|
24
|
|
|
19,906
|
|
|
24
|
|
|
20,042
|
|
|
24
|
|
|
19,615
|
|
|
24
|
|
|||||
Money market deposits
|
23,977
|
|
|
29
|
|
|
23,952
|
|
|
30
|
|
|
22,931
|
|
|
28
|
|
|
22,721
|
|
|
27
|
|
|
21,411
|
|
|
26
|
|
|||||
Savings and other domestic deposits
|
9,566
|
|
|
12
|
|
|
9,803
|
|
|
12
|
|
|
10,277
|
|
|
13
|
|
|
10,451
|
|
|
12
|
|
|
11,604
|
|
|
14
|
|
|||||
Core certificates of deposit (3)
|
5,443
|
|
|
7
|
|
|
5,703
|
|
|
7
|
|
|
6,007
|
|
|
7
|
|
|
5,924
|
|
|
7
|
|
|
5,358
|
|
|
7
|
|
|||||
Total core deposits:
|
79,515
|
|
|
97
|
|
|
77,926
|
|
|
97
|
|
|
79,157
|
|
|
96
|
|
|
80,921
|
|
|
96
|
|
|
77,851
|
|
|
95
|
|
|||||
Other domestic deposits of $250,000 or more
|
326
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|
313
|
|
|
1
|
|
|
337
|
|
|
—
|
|
|
318
|
|
|
1
|
|
|||||
Brokered deposits and negotiable CDs
|
2,554
|
|
|
3
|
|
|
2,640
|
|
|
3
|
|
|
2,685
|
|
|
3
|
|
|
3,516
|
|
|
4
|
|
|
3,520
|
|
|
4
|
|
|||||
Total deposits
|
$
|
82,395
|
|
|
100
|
%
|
|
$
|
80,882
|
|
|
100
|
%
|
|
$
|
82,155
|
|
|
100
|
%
|
|
$
|
84,774
|
|
|
100
|
%
|
|
$
|
81,689
|
|
|
100
|
%
|
Total core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
35,247
|
|
|
44
|
%
|
|
$
|
33,371
|
|
|
43
|
%
|
|
$
|
33,546
|
|
|
42
|
%
|
|
$
|
37,268
|
|
|
46
|
%
|
|
$
|
35,455
|
|
|
46
|
%
|
Consumer
|
44,268
|
|
|
56
|
|
|
44,555
|
|
|
57
|
|
|
45,611
|
|
|
58
|
|
|
43,653
|
|
|
54
|
|
|
42,396
|
|
|
54
|
|
|||||
Total core deposits
|
$
|
79,515
|
|
|
100
|
%
|
|
$
|
77,926
|
|
|
100
|
%
|
|
$
|
79,157
|
|
|
100
|
%
|
|
$
|
80,921
|
|
|
100
|
%
|
|
$
|
77,851
|
|
|
100
|
%
|
(1)
|
March 31, 2019 includes $845 million of deposits classified as held-for-sale.
|
(2)
|
December 31, 2018 includes $872 million of deposits classified as held-for-sale.
|
(3)
|
Includes consumer certificates of deposit of $250,000 or more.
|
Table 19 - Regulatory Capital Data
|
|
|
|
|
|
|
|
||||||
|
|
|
Basel III
|
||||||||||
(dollar amounts in millions)
|
|
|
September 30,
2019 |
|
June 30,
2019 |
|
September 30,
2018 |
||||||
Total risk-weighted assets
|
Consolidated
|
|
$
|
86,719
|
|
|
$
|
86,332
|
|
|
$
|
83,580
|
|
|
Bank
|
|
86,831
|
|
|
86,410
|
|
|
83,847
|
|
|||
CET I risk-based capital
|
Consolidated
|
|
8,685
|
|
|
8,530
|
|
|
8,263
|
|
|||
|
Bank
|
|
9,590
|
|
|
9,583
|
|
|
8,601
|
|
|||
Tier 1 risk-based capital
|
Consolidated
|
|
9,893
|
|
|
9,737
|
|
|
9,470
|
|
|||
|
Bank
|
|
10,466
|
|
|
10,460
|
|
|
9,480
|
|
|||
Tier 2 risk-based capital
|
Consolidated
|
|
1,634
|
|
|
1,602
|
|
|
1,697
|
|
|||
|
Bank
|
|
1,255
|
|
|
1,296
|
|
|
1,895
|
|
|||
Total risk-based capital
|
Consolidated
|
|
11,527
|
|
|
11,339
|
|
|
11,167
|
|
|||
|
Bank
|
|
11,721
|
|
|
11,756
|
|
|
11,375
|
|
|||
CET I risk-based capital ratio
|
Consolidated
|
|
10.02
|
%
|
|
9.88
|
%
|
|
9.89
|
%
|
|||
|
Bank
|
|
11.05
|
|
|
11.09
|
|
|
10.26
|
|
|||
Tier 1 risk-based capital ratio
|
Consolidated
|
|
11.41
|
|
|
11.28
|
|
|
11.33
|
|
|||
|
Bank
|
|
12.05
|
|
|
12.11
|
|
|
11.31
|
|
|||
Total risk-based capital ratio
|
Consolidated
|
|
13.29
|
|
|
13.13
|
|
|
13.36
|
|
|||
|
Bank
|
|
13.50
|
|
|
13.60
|
|
|
13.57
|
|
|||
Tier 1 leverage ratio
|
Consolidated
|
|
9.34
|
|
|
9.24
|
|
|
9.14
|
|
|||
|
Bank
|
|
9.88
|
|
|
9.93
|
|
|
9.15
|
|
Table 20 - Net Income by Business Segment
|
|||||||
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
||||
Consumer and Business Banking
|
$
|
505
|
|
|
$
|
355
|
|
Commercial Banking
|
421
|
|
|
453
|
|
||
Vehicle Finance
|
128
|
|
|
127
|
|
||
RBHPCG
|
87
|
|
|
90
|
|
||
Treasury / Other
|
(47
|
)
|
|
34
|
|
||
Net income
|
$
|
1,094
|
|
|
$
|
1,059
|
|
Consumer and Business Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 21 - Key Performance Indicators for Consumer and Business Banking
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
1,371
|
|
|
$
|
1,254
|
|
|
$
|
117
|
|
|
9
|
%
|
Provision for credit losses
|
81
|
|
|
98
|
|
|
(17
|
)
|
|
(17
|
)
|
|||
Noninterest income
|
596
|
|
|
557
|
|
|
39
|
|
|
7
|
|
|||
Noninterest expense
|
1,247
|
|
|
1,263
|
|
|
(16
|
)
|
|
(1
|
)
|
|||
Provision for income taxes
|
134
|
|
|
95
|
|
|
39
|
|
|
41
|
|
|||
Net income
|
$
|
505
|
|
|
$
|
355
|
|
|
$
|
150
|
|
|
42
|
%
|
Number of employees (average full-time equivalent)
|
8,015
|
|
|
8,374
|
|
|
(359
|
)
|
|
(4
|
)%
|
|||
Total average assets
|
$
|
25,486
|
|
|
$
|
24,995
|
|
|
$
|
491
|
|
|
2
|
|
Total average loans/leases
|
22,226
|
|
|
21,892
|
|
|
334
|
|
|
2
|
|
|||
Total average deposits
|
51,505
|
|
|
47,032
|
|
|
4,473
|
|
|
10
|
|
|||
Net interest margin
|
3.51
|
%
|
|
3.52
|
%
|
|
(0.01
|
)%
|
|
—
|
|
|||
NCOs
|
$
|
97
|
|
|
$
|
75
|
|
|
$
|
22
|
|
|
29
|
|
NCOs as a % of average loans and leases
|
0.58
|
%
|
|
0.46
|
%
|
|
0.12
|
%
|
|
26
|
|
Commercial Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 22 - Key Performance Indicators for Commercial Banking
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
798
|
|
|
$
|
744
|
|
|
$
|
54
|
|
|
7
|
%
|
Provision for credit losses
|
103
|
|
|
41
|
|
|
62
|
|
|
151
|
|
|||
Noninterest income
|
266
|
|
|
234
|
|
|
32
|
|
|
14
|
|
|||
Noninterest expense
|
427
|
|
|
364
|
|
|
63
|
|
|
17
|
|
|||
Provision for income taxes
|
113
|
|
|
120
|
|
|
(7
|
)
|
|
(6
|
)
|
|||
Net income
|
$
|
421
|
|
|
$
|
453
|
|
|
$
|
(32
|
)
|
|
(7
|
)%
|
Number of employees (average full-time equivalent)
|
1,323
|
|
|
1,240
|
|
|
83
|
|
|
7
|
%
|
|||
Total average assets
|
$
|
33,678
|
|
|
$
|
30,954
|
|
|
$
|
2,724
|
|
|
9
|
|
Total average loans/leases
|
27,204
|
|
|
26,094
|
|
|
1,110
|
|
|
4
|
|
|||
Total average deposits
|
21,105
|
|
|
22,041
|
|
|
(936
|
)
|
|
(4
|
)
|
|||
Net interest margin
|
3.58
|
%
|
|
3.47
|
%
|
|
0.11
|
%
|
|
3
|
|
|||
NCOs (Recoveries)
|
$
|
65
|
|
|
$
|
(12
|
)
|
|
$
|
77
|
|
|
642
|
|
NCOs as a % of average loans and leases
|
0.32
|
%
|
|
(0.06
|
)%
|
|
0.38
|
%
|
|
633
|
|
Vehicle Finance
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 23 - Key Performance Indicators for Vehicle Finance
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
291
|
|
|
$
|
294
|
|
|
$
|
(3
|
)
|
|
(1
|
)%
|
Provision for credit losses
|
27
|
|
|
36
|
|
|
(9
|
)
|
|
(25
|
)
|
|||
Noninterest income
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|||
Noninterest expense
|
112
|
|
|
106
|
|
|
6
|
|
|
6
|
|
|||
Provision for income taxes
|
33
|
|
|
34
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Net income
|
$
|
128
|
|
|
$
|
127
|
|
|
$
|
1
|
|
|
1
|
%
|
Number of employees (average full-time equivalent)
|
266
|
|
|
263
|
|
|
3
|
|
|
1
|
%
|
|||
Total average assets
|
$
|
19,264
|
|
|
$
|
18,200
|
|
|
$
|
1,064
|
|
|
6
|
|
Total average loans/leases
|
19,336
|
|
|
18,250
|
|
|
1,086
|
|
|
6
|
|
|||
Total average deposits
|
329
|
|
|
339
|
|
|
(10
|
)
|
|
(3
|
)
|
|||
Net interest margin
|
2.01
|
%
|
|
2.15
|
%
|
|
(0.14
|
)%
|
|
(7
|
)
|
|||
NCOs
|
$
|
30
|
|
|
$
|
31
|
|
|
$
|
(1
|
)
|
|
(3
|
)
|
NCOs as a % of average loans and leases
|
0.21
|
%
|
|
0.23
|
%
|
|
(0.02
|
)%
|
|
(9
|
)
|
Regional Banking and The Huntington Private Client Group
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 24 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
153
|
|
|
$
|
148
|
|
|
$
|
5
|
|
|
3
|
%
|
Provision for credit losses
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
(100
|
)
|
|||
Noninterest income
|
147
|
|
|
146
|
|
|
1
|
|
|
1
|
|
|||
Noninterest expense
|
193
|
|
|
180
|
|
|
13
|
|
|
7
|
|
|||
Provision for income taxes
|
23
|
|
|
24
|
|
|
(1
|
)
|
|
(4
|
)
|
|||
Net income
|
$
|
87
|
|
|
$
|
90
|
|
|
$
|
(3
|
)
|
|
(3
|
)%
|
Number of employees (average full-time equivalent)
|
1,059
|
|
|
1,022
|
|
|
37
|
|
|
4
|
%
|
|||
Total average assets
|
$
|
6,377
|
|
|
$
|
5,703
|
|
|
$
|
674
|
|
|
12
|
|
Total average loans/leases
|
6,071
|
|
|
5,386
|
|
|
685
|
|
|
13
|
|
|||
Total average deposits
|
5,939
|
|
|
5,908
|
|
|
31
|
|
|
1
|
|
|||
Net interest margin
|
3.31
|
%
|
|
3.25
|
%
|
|
0.06
|
%
|
|
2
|
|
|||
NCOs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
NCOs as a % of average loans and leases
|
—
|
%
|
|
0.01
|
%
|
|
(0.01
|
)%
|
|
(100
|
)
|
|||
Total assets under management (in billions)—eop
|
$
|
16.8
|
|
|
$
|
17.2
|
|
|
$
|
(0.4
|
)
|
|
(2
|
)
|
Total trust assets (in billions)—eop
|
117.6
|
|
|
114.3
|
|
|
3.3
|
|
|
3
|
|
•
|
Tangible common equity to tangible assets,
|
•
|
Tangible equity to tangible assets, and
|
•
|
Tangible common equity to risk-weighted assets using Basel III definitions.
|
|
September 30,
|
|
December 31,
|
||||
(dollar amounts in millions)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,018
|
|
|
$
|
1,108
|
|
Interest-bearing deposits at Federal Reserve Bank
|
618
|
|
|
1,564
|
|
||
Interest-bearing deposits in banks
|
122
|
|
|
53
|
|
||
Trading account securities
|
118
|
|
|
105
|
|
||
Available-for-sale securities
|
14,286
|
|
|
13,780
|
|
||
Held-to-maturity securities
|
8,430
|
|
|
8,565
|
|
||
Other securities
|
455
|
|
|
565
|
|
||
Loans held for sale (includes $963 and $613 respectively, measured at fair value)(1)
|
1,064
|
|
|
804
|
|
||
Loans and leases (includes $80 and $79 respectively, measured at fair value)(1)
|
74,892
|
|
|
74,900
|
|
||
Allowance for loan and lease losses
|
(783
|
)
|
|
(772
|
)
|
||
Net loans and leases
|
74,109
|
|
|
74,128
|
|
||
Bank owned life insurance
|
2,532
|
|
|
2,507
|
|
||
Premises and equipment
|
775
|
|
|
790
|
|
||
Goodwill
|
1,990
|
|
|
1,989
|
|
||
Servicing rights and other intangible assets
|
455
|
|
|
535
|
|
||
Other assets
|
2,763
|
|
|
2,288
|
|
||
Total assets
|
$
|
108,735
|
|
|
$
|
108,781
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits (includes $0 and $872 respectively, classified as held-for-sale)
|
$
|
82,395
|
|
|
$
|
84,774
|
|
Short-term borrowings
|
2,173
|
|
|
2,017
|
|
||
Long-term debt
|
9,874
|
|
|
8,625
|
|
||
Other liabilities
|
2,384
|
|
|
2,263
|
|
||
Total liabilities
|
96,826
|
|
|
97,679
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock
|
1,203
|
|
|
1,203
|
|
||
Common stock
|
10
|
|
|
11
|
|
||
Capital surplus
|
8,980
|
|
|
9,181
|
|
||
Less treasury shares, at cost
|
(55
|
)
|
|
(45
|
)
|
||
Accumulated other comprehensive loss
|
(175
|
)
|
|
(609
|
)
|
||
Retained earnings
|
1,946
|
|
|
1,361
|
|
||
Total shareholders’ equity
|
11,909
|
|
|
11,102
|
|
||
Total liabilities and shareholders’ equity
|
$
|
108,735
|
|
|
$
|
108,781
|
|
Common shares authorized (par value of $0.01)
|
1,500,000,000
|
|
|
1,500,000,000
|
|
||
Common shares outstanding
|
1,032,755,207
|
|
|
1,046,767,252
|
|
||
Treasury shares outstanding
|
4,548,310
|
|
|
3,817,385
|
|
||
Preferred stock, authorized shares
|
6,617,808
|
|
|
6,617,808
|
|
||
Preferred shares outstanding
|
740,500
|
|
|
740,500
|
|
(1)
|
Amounts represent loans for which Huntington has elected the fair value option. See Note 11 "Fair Values of Assets and Liabilities".
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
372
|
|
|
$
|
378
|
|
|
$
|
1,094
|
|
|
$
|
1,059
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Unrealized net gains (losses) on available-for-sale securities arising during the period, net of reclassification for net realized gains and losses
|
69
|
|
|
(62
|
)
|
|
349
|
|
|
(264
|
)
|
||||
Total unrealized gains (losses) on available-for-sale securities
|
69
|
|
|
(62
|
)
|
|
349
|
|
|
(264
|
)
|
||||
Change in fair value related to cash flow hedges
|
28
|
|
|
—
|
|
|
82
|
|
|
—
|
|
||||
Change in accumulated unrealized losses for pension and other post-retirement obligations
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Other comprehensive income (loss), net of tax
|
98
|
|
|
(61
|
)
|
|
434
|
|
|
(261
|
)
|
||||
Comprehensive income
|
$
|
470
|
|
|
$
|
317
|
|
|
$
|
1,528
|
|
|
$
|
798
|
|
(dollar amounts in millions, share amounts in thousands)
|
Preferred Stock
|
|
Common Stock
|
|
Capital Surplus
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Loss
|
|
Retained Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
||||||||||||||||||||
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,042,140
|
|
|
$
|
10
|
|
|
$
|
9,030
|
|
|
(4,299
|
)
|
|
$
|
(52
|
)
|
|
$
|
(273
|
)
|
|
$
|
1,750
|
|
|
$
|
11,668
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
372
|
|
|
372
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
98
|
|
|
|
|
98
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(5,213
|
)
|
|
—
|
|
|
(68
|
)
|
|
|
|
|
|
|
|
|
|
(68
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.15 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(158
|
)
|
|
(158
|
)
|
||||||||||||||
Preferred Series B ($12.51 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
||||||||||||||
Preferred Series C ($14.69 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series D ($15.63 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||||||||||
Preferred Series E ($1,425.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
16
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
376
|
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
(249
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
|||||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,037,303
|
|
|
$
|
10
|
|
|
$
|
8,980
|
|
|
(4,548
|
)
|
|
$
|
(55
|
)
|
|
$
|
(175
|
)
|
|
$
|
1,946
|
|
|
$
|
11,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,107,817
|
|
|
$
|
11
|
|
|
$
|
10,038
|
|
|
(3,268
|
)
|
|
$
|
(40
|
)
|
|
$
|
(730
|
)
|
|
$
|
990
|
|
|
$
|
11,472
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
378
|
|
|
378
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(61
|
)
|
|
|
|
(61
|
)
|
||||||||||||||
Repurchase of common stock
|
|
|
(43,670
|
)
|
|
—
|
|
|
(691
|
)
|
|
|
|
|
|
|
|
|
|
(691
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.14 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(150
|
)
|
|
(150
|
)
|
||||||||||||||
Preferred Series B ($12.84 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($14.69 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series D ($15.63 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||||||||||
Preferred Series E ($1,425.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
15
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
1,104
|
|
|
—
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
(4
|
)
|
|
(8
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
(454
|
)
|
|
(4
|
)
|
|
1
|
|
|
|
|
(3
|
)
|
||||||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,065,251
|
|
|
$
|
11
|
|
|
$
|
9,358
|
|
|
(3,722
|
)
|
|
$
|
(44
|
)
|
|
$
|
(790
|
)
|
|
$
|
1,196
|
|
|
$
|
10,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in millions, share amounts in thousands)
|
Preferred Stock
|
|
Common Stock
|
|
Capital Surplus
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Loss
|
|
Retained Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
||||||||||||||||||||
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,050,584
|
|
|
$
|
11
|
|
|
$
|
9,181
|
|
|
(3,817
|
)
|
|
$
|
(45
|
)
|
|
$
|
(609
|
)
|
|
$
|
1,361
|
|
|
$
|
11,102
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,094
|
|
|
1,094
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
434
|
|
|
|
|
434
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(18,390
|
)
|
|
(1
|
)
|
|
(244
|
)
|
|
|
|
|
|
|
|
|
|
(245
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.43 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(455
|
)
|
|
(455
|
)
|
||||||||||||||
Preferred Series B ($39.47 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($44.07 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||||||||||
Preferred Series D ($46.88 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29
|
)
|
|
(29
|
)
|
||||||||||||||
Preferred Series E ($4,275.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21
|
)
|
|
(21
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
64
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
5,109
|
|
|
—
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
(21
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
—
|
|
|
(731
|
)
|
|
(10
|
)
|
|
|
|
|
1
|
|
|
(9
|
)
|
||||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,037,303
|
|
|
$
|
10
|
|
|
$
|
8,980
|
|
|
(4,548
|
)
|
|
$
|
(55
|
)
|
|
$
|
(175
|
)
|
|
$
|
1,946
|
|
|
$
|
11,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,071
|
|
|
1,075,295
|
|
|
$
|
11
|
|
|
$
|
9,707
|
|
|
(3,268
|
)
|
|
$
|
(35
|
)
|
|
$
|
(528
|
)
|
|
$
|
588
|
|
|
$
|
10,814
|
|
Cumulative-effect adjustment (ASU 2016-01)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,059
|
|
|
1,059
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(261
|
)
|
|
|
|
(261
|
)
|
||||||||||||||
Net proceeds from issuance of Preferred Series E Stock
|
495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
495
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(46,677
|
)
|
|
—
|
|
|
(739
|
)
|
|
|
|
|
|
|
|
|
|
(739
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.36 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(393
|
)
|
|
(393
|
)
|
||||||||||||||
Preferred Series B ($36.51 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||||||||
Preferred Series C ($44.07 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||||||||||
Preferred Series D ($46.88 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(28
|
)
|
|
(28
|
)
|
||||||||||||||
Preferred Series E ($3,467.50 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17
|
)
|
|
(17
|
)
|
||||||||||||||
Conversion of Preferred Series A Stock to Common Stock
|
(363
|
)
|
|
30,330
|
|
|
|
|
363
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
59
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
6,303
|
|
|
—
|
|
|
(32
|
)
|
|
|
|
|
|
|
|
(8
|
)
|
|
(40
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
—
|
|
|
(454
|
)
|
|
(9
|
)
|
|
|
|
|
|
|
(9
|
)
|
|||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,065,251
|
|
|
$
|
11
|
|
|
$
|
9,358
|
|
|
(3,722
|
)
|
|
$
|
(44
|
)
|
|
$
|
(790
|
)
|
|
$
|
1,196
|
|
|
$
|
10,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
||||
Operating activities
|
|
||||||
Net income
|
$
|
1,094
|
|
|
$
|
1,059
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
||||||
Provision for credit losses
|
208
|
|
|
175
|
|
||
Depreciation and amortization
|
308
|
|
|
350
|
|
||
Share-based compensation expense
|
64
|
|
|
59
|
|
||
Deferred income tax expense
|
(6
|
)
|
|
125
|
|
||
Net change in:
|
|
|
|
||||
Trading account securities
|
(51
|
)
|
|
3
|
|
||
Loans held for sale
|
(356
|
)
|
|
(384
|
)
|
||
Other assets
|
(662
|
)
|
|
(325
|
)
|
||
Other liabilities
|
297
|
|
|
215
|
|
||
Other, net
|
2
|
|
|
(133
|
)
|
||
Net cash provided by (used in) operating activities
|
898
|
|
|
1,144
|
|
||
Investing activities
|
|
||||||
Change in interest bearing deposits in banks
|
(121
|
)
|
|
62
|
|
||
Proceeds from:
|
|
|
|
||||
Maturities and calls of available-for-sale securities
|
1,338
|
|
|
1,539
|
|
||
Maturities and calls of held-to-maturity securities
|
656
|
|
|
573
|
|
||
Maturities and calls of other securities
|
153
|
|
|
40
|
|
||
Sales of available-for-sale securities
|
1,746
|
|
|
381
|
|
||
Purchases of available-for-sale securities
|
(3,174
|
)
|
|
(1,044
|
)
|
||
Purchases of held-to-maturity securities
|
(516
|
)
|
|
(71
|
)
|
||
Purchases of other securities
|
(5
|
)
|
|
(5
|
)
|
||
Net proceeds from sales of portfolio loans
|
670
|
|
|
461
|
|
||
Principal payments received under direct finance and sales-type leases
|
544
|
|
|
—
|
|
||
Net loan and lease activity, excluding sales and purchases
|
(1,162
|
)
|
|
(3,583
|
)
|
||
Purchases of premises and equipment
|
(82
|
)
|
|
(62
|
)
|
||
Purchases of loans and leases
|
(311
|
)
|
|
(318
|
)
|
||
Net cash paid for branch disposition
|
(548
|
)
|
|
—
|
|
||
Other, net
|
49
|
|
|
50
|
|
||
Net cash provided by (used in) investing activities
|
(763
|
)
|
|
(1,977
|
)
|
||
Financing activities
|
|
|
|
||||
Increase (decrease) in deposits
|
(1,654
|
)
|
|
4,648
|
|
||
Increase (decrease) in short-term borrowings
|
196
|
|
|
(3,613
|
)
|
||
Net proceeds from issuance of long-term debt
|
1,737
|
|
|
2,171
|
|
||
Maturity/redemption of long-term debt
|
(684
|
)
|
|
(1,915
|
)
|
||
Dividends paid on preferred stock
|
(55
|
)
|
|
(51
|
)
|
||
Dividends paid on common stock
|
(442
|
)
|
|
(362
|
)
|
||
Repurchases of common stock
|
(245
|
)
|
|
(739
|
)
|
||
Net proceeds from issuance of preferred stock
|
—
|
|
|
495
|
|
||
Payments related to tax-withholding for share based compensation awards
|
(26
|
)
|
|
(27
|
)
|
||
Other, net
|
2
|
|
|
5
|
|
||
Net cash provided by (used for) financing activities
|
(1,171
|
)
|
|
612
|
|
||
Increase (decrease) in cash and cash equivalents
|
(1,036
|
)
|
|
(221
|
)
|
||
Cash and cash equivalents at beginning of period
|
2,672
|
|
|
1,520
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,636
|
|
|
$
|
1,299
|
|
|
Nine Months Ended September 30,
|
||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
||||
Supplemental disclosures:
|
|
||||||
Interest paid
|
$
|
758
|
|
|
$
|
527
|
|
Income taxes paid (refunded)
|
54
|
|
|
(112
|
)
|
||
Non-cash activities
|
|
||||||
Loans transferred to held-for-sale from portfolio
|
744
|
|
|
470
|
|
||
Loans transferred to portfolio from held-for-sale
|
14
|
|
|
49
|
|
||
Transfer of loans to OREO
|
16
|
|
|
15
|
|
||
Transfer of securities from held-to-maturity to available-for-sale
|
—
|
|
|
2,833
|
|
||
Transfer of securities from available-for-sale to held-to-maturity
|
—
|
|
|
2,707
|
|
Accounting standards adopted in current period
|
Accounting standards yet to be adopted
|
(dollar amounts in millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Loans and leases:
|
|
|
|
||||
Commercial and industrial
|
$
|
30,394
|
|
|
$
|
30,605
|
|
Commercial real estate
|
6,855
|
|
|
6,842
|
|
||
Automobile
|
12,292
|
|
|
12,429
|
|
||
Home equity
|
9,300
|
|
|
9,722
|
|
||
Residential mortgage
|
11,247
|
|
|
10,728
|
|
||
RV and marine
|
3,553
|
|
|
3,254
|
|
||
Other consumer
|
1,251
|
|
|
1,320
|
|
||
Loans and leases
|
$
|
74,892
|
|
|
$
|
74,900
|
|
Allowance for loan and lease losses
|
(783
|
)
|
|
(772
|
)
|
||
Net loans and leases
|
$
|
74,109
|
|
|
$
|
74,128
|
|
(dollar amounts in millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Commercial and industrial:
|
|
|
|
||||
Lease payments receivable
|
$
|
1,743
|
|
|
$
|
1,747
|
|
Estimated residual value of leased assets
|
701
|
|
|
726
|
|
||
Gross investment in commercial and industrial lease financing receivables
|
2,444
|
|
|
2,473
|
|
||
Deferred origination costs
|
18
|
|
|
20
|
|
||
Deferred fees
|
(245
|
)
|
|
(250
|
)
|
||
Total net investment in commercial and industrial lease financing receivables
|
$
|
2,217
|
|
|
$
|
2,243
|
|
(dollar amounts in millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Commercial and industrial
|
$
|
291
|
|
|
$
|
188
|
|
Commercial real estate
|
12
|
|
|
15
|
|
||
Automobile
|
5
|
|
|
5
|
|
||
Home equity
|
60
|
|
|
62
|
|
||
Residential mortgage
|
69
|
|
|
69
|
|
||
RV and marine
|
1
|
|
|
1
|
|
||
Other consumer
|
—
|
|
|
—
|
|
||
Total nonaccrual loans
|
$
|
438
|
|
|
$
|
340
|
|
|
September 30, 2019
|
|
||||||||||||||||||||||||||||||
|
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
|
$
|
69
|
|
|
$
|
30
|
|
|
$
|
70
|
|
|
$
|
169
|
|
|
$
|
30,225
|
|
|
$
|
—
|
|
|
$
|
30,394
|
|
|
$
|
9
|
|
(2)
|
Commercial real estate
|
9
|
|
|
—
|
|
|
7
|
|
|
16
|
|
|
6,839
|
|
|
—
|
|
|
6,855
|
|
|
—
|
|
|
||||||||
Automobile
|
79
|
|
|
18
|
|
|
10
|
|
|
107
|
|
|
12,185
|
|
|
—
|
|
|
12,292
|
|
|
8
|
|
|
||||||||
Home equity
|
49
|
|
|
16
|
|
|
50
|
|
|
115
|
|
|
9,184
|
|
|
1
|
|
|
9,300
|
|
|
13
|
|
|
||||||||
Residential mortgage
|
119
|
|
|
44
|
|
|
164
|
|
|
327
|
|
|
10,841
|
|
|
79
|
|
|
11,247
|
|
|
125
|
|
(3)
|
||||||||
RV and marine
|
11
|
|
|
3
|
|
|
2
|
|
|
16
|
|
|
3,537
|
|
|
—
|
|
|
3,553
|
|
|
1
|
|
|
||||||||
Other consumer
|
13
|
|
|
6
|
|
|
7
|
|
|
26
|
|
|
1,225
|
|
|
—
|
|
|
1,251
|
|
|
7
|
|
|
||||||||
Total loans and leases
|
$
|
349
|
|
|
$
|
117
|
|
|
$
|
310
|
|
|
$
|
776
|
|
|
$
|
74,036
|
|
|
$
|
80
|
|
|
$
|
74,892
|
|
|
$
|
163
|
|
|
|
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
|
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
|
|
|
(1)
|
NALs are included in this aging analysis based on the loan's past due status.
|
(2)
|
Amounts include Huntington Technology Finance administrative lease delinquencies.
|
(3)
|
Amounts include mortgage loans insured by U.S. government agencies.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended September 30, 2019:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
560
|
|
|
$
|
214
|
|
|
$
|
774
|
|
Loan charge-offs
|
|
(53
|
)
|
|
(49
|
)
|
|
(102
|
)
|
|||
Recoveries of loans previously charged-off
|
|
15
|
|
|
14
|
|
|
29
|
|
|||
Provision for loan and lease losses
|
|
39
|
|
|
43
|
|
|
82
|
|
|||
ALLL balance, end of period
|
|
$
|
561
|
|
|
$
|
222
|
|
|
$
|
783
|
|
AULC balance, beginning of period
|
|
$
|
99
|
|
|
$
|
2
|
|
|
$
|
101
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
AULC balance, end of period
|
|
$
|
99
|
|
|
$
|
2
|
|
|
$
|
101
|
|
ACL balance, end of period
|
|
$
|
660
|
|
|
$
|
224
|
|
|
$
|
884
|
|
Nine-month period ended September 30, 2019:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
542
|
|
|
$
|
230
|
|
|
$
|
772
|
|
Loan charge-offs
|
|
(124
|
)
|
|
(145
|
)
|
|
(269
|
)
|
|||
Recoveries of loans previously charged-off
|
|
35
|
|
|
42
|
|
|
77
|
|
|||
Provision for loan and lease losses
|
|
108
|
|
|
95
|
|
|
203
|
|
|||
ALLL balance, end of period
|
|
$
|
561
|
|
|
$
|
222
|
|
|
$
|
783
|
|
AULC balance, beginning of period
|
|
$
|
94
|
|
|
$
|
2
|
|
|
$
|
96
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
5
|
|
|
—
|
|
|
5
|
|
|||
AULC balance, end of period
|
|
$
|
99
|
|
|
$
|
2
|
|
|
$
|
101
|
|
ACL balance, end of period
|
|
$
|
660
|
|
|
$
|
224
|
|
|
$
|
884
|
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended September 30, 2018:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
531
|
|
|
$
|
210
|
|
|
$
|
741
|
|
Loan charge-offs
|
|
(11
|
)
|
|
(47
|
)
|
|
(58
|
)
|
|||
Recoveries of loans previously charged-off
|
|
15
|
|
|
14
|
|
|
29
|
|
|||
Provision for loan and lease losses
|
|
8
|
|
|
41
|
|
|
49
|
|
|||
ALLL balance, end of period
|
|
$
|
543
|
|
|
$
|
218
|
|
|
$
|
761
|
|
AULC balance, beginning of period
|
|
$
|
90
|
|
|
$
|
3
|
|
|
$
|
93
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
|||
AULC balance, end of period
|
|
$
|
95
|
|
|
$
|
2
|
|
|
$
|
97
|
|
ACL balance, end of period
|
|
$
|
638
|
|
|
$
|
220
|
|
|
$
|
858
|
|
Nine-month period ended September 30, 2018:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
482
|
|
|
$
|
209
|
|
|
$
|
691
|
|
Loan charge-offs
|
|
(46
|
)
|
|
(138
|
)
|
|
(184
|
)
|
|||
Recoveries of loans previously charged-off
|
|
45
|
|
|
44
|
|
|
89
|
|
|||
Provision for loan and lease losses
|
|
62
|
|
|
103
|
|
|
165
|
|
|||
ALLL balance, end of period
|
|
$
|
543
|
|
|
$
|
218
|
|
|
$
|
761
|
|
AULC balance, beginning of period
|
|
$
|
84
|
|
|
$
|
3
|
|
|
$
|
87
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
11
|
|
|
(1
|
)
|
|
10
|
|
|||
AULC balance, end of period
|
|
$
|
95
|
|
|
$
|
2
|
|
|
$
|
97
|
|
ACL balance, end of period
|
|
$
|
638
|
|
|
$
|
220
|
|
|
$
|
858
|
|
•
|
Pass - Higher quality loans that do not fit any of the other categories described below.
|
•
|
OLEM - The credit risk may be relatively minor yet represents a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans.
|
•
|
Substandard - Inadequately protected loans by the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.
|
•
|
Doubtful - Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.
|
|
September 30, 2019
|
||||||||||||||||||
(dollar amounts in millions)
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
Commercial
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
28,276
|
|
|
$
|
657
|
|
|
$
|
1,457
|
|
|
$
|
4
|
|
|
$
|
30,394
|
|
Commercial real estate
|
6,609
|
|
|
158
|
|
|
87
|
|
|
1
|
|
|
6,855
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||||
Consumer
|
750+
|
|
650-749
|
|
<650
|
|
Other (3)
|
|
Total
|
||||||||||
Automobile
|
$
|
6,257
|
|
|
$
|
4,462
|
|
|
$
|
1,328
|
|
|
$
|
245
|
|
|
$
|
12,292
|
|
Home equity
|
5,847
|
|
|
2,815
|
|
|
592
|
|
|
45
|
|
|
9,299
|
|
|||||
Residential mortgage
|
7,633
|
|
|
2,796
|
|
|
600
|
|
|
139
|
|
|
11,168
|
|
|||||
RV and marine
|
2,313
|
|
|
1,027
|
|
|
111
|
|
|
102
|
|
|
3,553
|
|
|||||
Other consumer
|
487
|
|
|
583
|
|
|
117
|
|
|
64
|
|
|
1,251
|
|
|
December 31, 2018
|
||||||||||||||||||
(dollar amounts in millions)
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
Commercial
|
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)
|
||||||||||||||||||
Consumer
|
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
|
2,074
|
|
|
990
|
|
|
105
|
|
|
85
|
|
|
3,254
|
|
|||||
Other consumer
|
501
|
|
|
633
|
|
|
129
|
|
|
57
|
|
|
1,320
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
(2)
|
Reflects updated customer credit scores.
|
(3)
|
Reflects deferred fees and costs, loans in process, etc.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
ALLL at September 30, 2019
|
|
|
|
|
|
|
||||||
Portion of ALLL balance:
|
|
|
|
|
|
|
||||||
Attributable to loans individually evaluated for impairment
|
|
$
|
45
|
|
|
$
|
7
|
|
|
$
|
52
|
|
Attributable to loans collectively evaluated for impairment
|
|
516
|
|
|
215
|
|
|
731
|
|
|||
Total ALLL balance
|
|
$
|
561
|
|
|
$
|
222
|
|
|
$
|
783
|
|
Loan and Lease Ending Balances at September 30, 2019 (1)
|
|
|
|
|
|
|
||||||
Portion of loan and lease ending balance:
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
574
|
|
|
$
|
579
|
|
|
$
|
1,153
|
|
Collectively evaluated for impairment
|
|
36,675
|
|
|
36,984
|
|
|
73,659
|
|
|||
Total loans and leases evaluated for impairment
|
|
$
|
37,249
|
|
|
$
|
37,563
|
|
|
$
|
74,812
|
|
(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 balances:
|
|
|
|
|
|
|
||||||
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.
|
|
September 30, 2019
|
|
Three Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2019 |
||||||||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance (7)
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
205
|
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
204
|
|
|
$
|
4
|
|
|
$
|
210
|
|
|
$
|
16
|
|
Commercial real estate
|
31
|
|
|
33
|
|
|
—
|
|
|
30
|
|
|
2
|
|
|
34
|
|
|
6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
314
|
|
|
344
|
|
|
43
|
|
|
322
|
|
|
3
|
|
|
298
|
|
|
8
|
|
|||||||
Commercial real estate
|
24
|
|
|
27
|
|
|
2
|
|
|
29
|
|
|
—
|
|
|
32
|
|
|
1
|
|
|||||||
Automobile
|
42
|
|
|
45
|
|
|
2
|
|
|
41
|
|
|
1
|
|
|
40
|
|
|
2
|
|
|||||||
Home equity
|
292
|
|
|
329
|
|
|
9
|
|
|
297
|
|
|
3
|
|
|
305
|
|
|
10
|
|
|||||||
Residential mortgage
|
290
|
|
|
326
|
|
|
3
|
|
|
287
|
|
|
3
|
|
|
287
|
|
|
8
|
|
|||||||
RV and marine
|
4
|
|
|
4
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||||
Other consumer
|
10
|
|
|
10
|
|
|
2
|
|
|
10
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial (3)
|
519
|
|
|
594
|
|
|
43
|
|
|
526
|
|
|
7
|
|
|
508
|
|
|
24
|
|
|||||||
Commercial real estate (4)
|
55
|
|
|
60
|
|
|
2
|
|
|
59
|
|
|
2
|
|
|
66
|
|
|
7
|
|
|||||||
Automobile (2)
|
42
|
|
|
45
|
|
|
2
|
|
|
41
|
|
|
1
|
|
|
40
|
|
|
2
|
|
|||||||
Home equity (5)
|
292
|
|
|
329
|
|
|
9
|
|
|
297
|
|
|
3
|
|
|
305
|
|
|
10
|
|
|||||||
Residential mortgage (5)
|
290
|
|
|
326
|
|
|
3
|
|
|
287
|
|
|
3
|
|
|
287
|
|
|
8
|
|
|||||||
RV and marine (2)
|
4
|
|
|
4
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||||
Other consumer (2)
|
10
|
|
|
10
|
|
|
2
|
|
|
10
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
December 31, 2018
|
|
Three Months Ended
September 30, 2018 |
|
Nine Months Ended
September 30, 2018 |
||||||||||||||||||||||
(dollar amounts in millions)
|
Ending
Balance
|
|
Unpaid
Principal
Balance (6)
|
|
Related
Allowance (7)
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
|
Average
Balance
|
|
Interest
Income
Recognized
|
||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
224
|
|
|
$
|
261
|
|
|
$
|
—
|
|
|
$
|
264
|
|
|
$
|
5
|
|
|
$
|
264
|
|
|
$
|
16
|
|
Commercial real estate
|
36
|
|
|
45
|
|
|
—
|
|
|
36
|
|
|
2
|
|
|
49
|
|
|
6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
221
|
|
|
240
|
|
|
31
|
|
|
284
|
|
|
3
|
|
|
285
|
|
|
9
|
|
|||||||
Commercial real estate
|
35
|
|
|
39
|
|
|
2
|
|
|
49
|
|
|
1
|
|
|
48
|
|
|
2
|
|
|||||||
Automobile
|
38
|
|
|
42
|
|
|
2
|
|
|
38
|
|
|
1
|
|
|
37
|
|
|
2
|
|
|||||||
Home equity
|
314
|
|
|
356
|
|
|
10
|
|
|
326
|
|
|
3
|
|
|
330
|
|
|
11
|
|
|||||||
Residential mortgage
|
287
|
|
|
323
|
|
|
4
|
|
|
290
|
|
|
3
|
|
|
299
|
|
|
8
|
|
|||||||
RV and marine
|
2
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||||
Other consumer
|
9
|
|
|
9
|
|
|
3
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial (3)
|
445
|
|
|
501
|
|
|
31
|
|
|
548
|
|
|
8
|
|
|
549
|
|
|
25
|
|
|||||||
Commercial real estate (4)
|
71
|
|
|
84
|
|
|
2
|
|
|
85
|
|
|
3
|
|
|
97
|
|
|
8
|
|
|||||||
Automobile (2)
|
38
|
|
|
42
|
|
|
2
|
|
|
38
|
|
|
1
|
|
|
37
|
|
|
2
|
|
|||||||
Home equity (5)
|
314
|
|
|
356
|
|
|
10
|
|
|
326
|
|
|
3
|
|
|
330
|
|
|
11
|
|
|||||||
Residential mortgage (5)
|
287
|
|
|
323
|
|
|
4
|
|
|
290
|
|
|
3
|
|
|
299
|
|
|
8
|
|
|||||||
RV and marine (2)
|
2
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||||
Other consumer (2)
|
9
|
|
|
9
|
|
|
3
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
—
|
|
(1)
|
These tables do not include loans fully charged-off.
|
(2)
|
All automobile, RV and marine, and other consumer impaired loans included in these tables are considered impaired due to their status as a TDR.
|
(3)
|
At September 30, 2019 and December 31, 2018, C&I loans of $309 million and $366 million, respectively, were considered impaired due to their status as a TDR.
|
(4)
|
At September 30, 2019 and December 31, 2018, CRE loans of $46 million and $60 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 are all classified as with an allowance in the tables above.
|
|
New Troubled Debt Restructurings (1)
|
|||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
|||||||||||||||||||||
|
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
|
119
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39
|
|
Commercial real estate
|
7
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Automobile
|
833
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
—
|
|
|
7
|
|
|||||
Home equity
|
76
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
5
|
|
|||||
Residential mortgage
|
69
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
RV and marine
|
46
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Other consumer
|
385
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total new TDRs
|
1,535
|
|
|
$
|
2
|
|
|
$
|
57
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended September 30, 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
|
131
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35
|
|
Commercial real estate
|
9
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Automobile
|
848
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
7
|
|
|||||
Home equity
|
159
|
|
|
—
|
|
|
8
|
|
|
3
|
|
|
—
|
|
|
11
|
|
|||||
Residential mortgage
|
76
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
9
|
|
|||||
RV and marine
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
386
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total new TDRs
|
1,649
|
|
|
$
|
2
|
|
|
$
|
60
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
New Troubled Debt Restructurings (1)
|
|||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||||||
|
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
|
335
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114
|
|
Commercial real estate
|
21
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||
Automobile
|
2,227
|
|
|
—
|
|
|
14
|
|
|
6
|
|
|
—
|
|
|
20
|
|
|||||
Home equity
|
248
|
|
|
—
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
13
|
|
|||||
Residential mortgage
|
241
|
|
|
—
|
|
|
27
|
|
|
1
|
|
|
—
|
|
|
28
|
|
|||||
RV and marine finance
|
113
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|||||
Other consumer
|
972
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Total new TDRs
|
4,157
|
|
|
$
|
6
|
|
|
$
|
175
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended September 30, 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
|
641
|
|
|
$
|
—
|
|
|
$
|
302
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
302
|
|
Commercial real estate
|
95
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|||||
Automobile
|
2,088
|
|
|
—
|
|
|
11
|
|
|
6
|
|
|
—
|
|
|
17
|
|
|||||
Home equity
|
472
|
|
|
—
|
|
|
21
|
|
|
8
|
|
|
—
|
|
|
29
|
|
|||||
Residential mortgage
|
278
|
|
|
—
|
|
|
29
|
|
|
2
|
|
|
—
|
|
|
31
|
|
|||||
RV and marine finance
|
99
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Other consumer
|
1,320
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Total new TDRs
|
4,993
|
|
|
$
|
6
|
|
|
$
|
442
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
465
|
|
(1)
|
TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
|
(2)
|
Post-modification balances approximate pre-modification balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
6,668
|
|
|
71
|
|
|
(15
|
)
|
|
6,724
|
|
||||
Residential MBS
|
2,355
|
|
|
39
|
|
|
(1
|
)
|
|
2,393
|
|
||||
Commercial MBS
|
1,237
|
|
|
3
|
|
|
(1
|
)
|
|
1,239
|
|
||||
Other agencies
|
117
|
|
|
—
|
|
|
—
|
|
|
117
|
|
||||
Total U.S. Treasury, federal agency and other agency securities
|
10,387
|
|
|
113
|
|
|
(17
|
)
|
|
10,483
|
|
||||
Municipal securities
|
3,147
|
|
|
35
|
|
|
(30
|
)
|
|
3,152
|
|
||||
Asset-backed securities
|
588
|
|
|
8
|
|
|
(1
|
)
|
|
595
|
|
||||
Corporate debt
|
50
|
|
|
2
|
|
|
—
|
|
|
52
|
|
||||
Other securities/Sovereign debt
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total available-for-sale securities
|
$
|
14,176
|
|
|
$
|
158
|
|
|
$
|
(48
|
)
|
|
$
|
14,286
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
1,970
|
|
|
$
|
41
|
|
|
$
|
(3
|
)
|
|
$
|
2,008
|
|
Residential MBS
|
2,065
|
|
|
45
|
|
|
—
|
|
|
2,110
|
|
||||
Commercial MBS
|
4,075
|
|
|
66
|
|
|
—
|
|
|
4,141
|
|
||||
Other agencies
|
316
|
|
|
5
|
|
|
—
|
|
|
321
|
|
||||
Total federal agency and other agency securities
|
8,426
|
|
|
157
|
|
|
(3
|
)
|
|
8,580
|
|
||||
Municipal securities
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total held-to-maturity securities
|
$
|
8,430
|
|
|
$
|
157
|
|
|
$
|
(3
|
)
|
|
$
|
8,584
|
|
|
|
|
|
|
|
|
|
||||||||
Other securities, at cost:
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank stock
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
104
|
|
Federal Reserve Bank stock
|
297
|
|
|
—
|
|
|
—
|
|
|
297
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||
Marketable equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total other securities
|
$
|
455
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
455
|
|
|
|
|
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
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Under 1 year
|
$
|
294
|
|
|
$
|
291
|
|
|
$
|
186
|
|
|
$
|
185
|
|
After 1 year through 5 years
|
1,084
|
|
|
1,074
|
|
|
1,057
|
|
|
1,039
|
|
||||
After 5 years through 10 years
|
1,708
|
|
|
1,717
|
|
|
1,838
|
|
|
1,802
|
|
||||
After 10 years
|
11,090
|
|
|
11,204
|
|
|
11,027
|
|
|
10,754
|
|
||||
Total available-for-sale securities
|
$
|
14,176
|
|
|
$
|
14,286
|
|
|
$
|
14,108
|
|
|
$
|
13,780
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Under 1 year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After 1 year through 5 years
|
18
|
|
|
19
|
|
|
11
|
|
|
11
|
|
||||
After 5 years through 10 years
|
329
|
|
|
335
|
|
|
362
|
|
|
356
|
|
||||
After 10 years
|
8,083
|
|
|
8,230
|
|
|
8,192
|
|
|
7,919
|
|
||||
Total held-to-maturity securities
|
$
|
8,430
|
|
|
$
|
8,584
|
|
|
$
|
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 |
||||||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
1,287
|
|
|
$
|
(3
|
)
|
|
$
|
1,207
|
|
|
$
|
(12
|
)
|
|
$
|
2,494
|
|
|
$
|
(15
|
)
|
Residential MBS
|
353
|
|
|
(1
|
)
|
|
9
|
|
|
—
|
|
|
362
|
|
|
(1
|
)
|
||||||
Commercial MBS
|
80
|
|
|
—
|
|
|
401
|
|
|
(1
|
)
|
|
481
|
|
|
(1
|
)
|
||||||
Other agencies
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total federal agency and other agency securities
|
1,721
|
|
|
(4
|
)
|
|
1,617
|
|
|
(13
|
)
|
|
3,338
|
|
|
(17
|
)
|
||||||
Municipal securities
|
403
|
|
|
(7
|
)
|
|
1,238
|
|
|
(23
|
)
|
|
1,641
|
|
|
(30
|
)
|
||||||
Asset-backed securities
|
68
|
|
|
—
|
|
|
93
|
|
|
(1
|
)
|
|
161
|
|
|
(1
|
)
|
||||||
Corporate debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
2,192
|
|
|
$
|
(11
|
)
|
|
$
|
2,948
|
|
|
$
|
(37
|
)
|
|
$
|
5,140
|
|
|
$
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
160
|
|
|
$
|
(1
|
)
|
|
$
|
119
|
|
|
$
|
(2
|
)
|
|
$
|
279
|
|
|
$
|
(3
|
)
|
Residential MBS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial MBS
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
||||||
Other agencies
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||
Total federal agency and other agency securities
|
165
|
|
|
(1
|
)
|
|
146
|
|
|
(2
|
)
|
|
311
|
|
|
(3
|
)
|
||||||
Municipal securities
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
169
|
|
|
$
|
(1
|
)
|
|
$
|
146
|
|
|
$
|
(2
|
)
|
|
$
|
315
|
|
|
$
|
(3
|
)
|
|
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
|
)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross gains on sales of securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
6
|
|
Gross losses on sales of securities
|
—
|
|
|
(2
|
)
|
|
(11
|
)
|
|
(8
|
)
|
||||
Net (loss) gain on sales of securities
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Residential mortgage loans sold with servicing retained
|
|
$
|
1,238
|
|
|
$
|
1,047
|
|
|
$
|
3,025
|
|
|
$
|
2,787
|
|
Pretax gains resulting from above loan sales (1)
|
|
26
|
|
|
24
|
|
|
61
|
|
|
64
|
|
(1)
|
Recorded in mortgage banking income.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Carrying value, beginning of period
|
|
$
|
184
|
|
|
$
|
204
|
|
|
$
|
211
|
|
|
$
|
191
|
|
New servicing assets created
|
|
12
|
|
|
12
|
|
|
31
|
|
|
32
|
|
||||
Impairment (charge) recovery
|
|
(11
|
)
|
|
—
|
|
|
(38
|
)
|
|
7
|
|
||||
Amortization
|
|
(13
|
)
|
|
(8
|
)
|
|
(32
|
)
|
|
(22
|
)
|
||||
Carrying value, end of period
|
|
$
|
172
|
|
|
$
|
208
|
|
|
$
|
172
|
|
|
$
|
208
|
|
Fair value, end of period
|
|
$
|
172
|
|
|
$
|
222
|
|
|
$
|
172
|
|
|
$
|
222
|
|
Weighted-average life (years)
|
|
4.9
|
|
|
7.1
|
|
|
4.9
|
|
|
7.1
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
|
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)
|
15.60
|
%
|
|
|
$
|
(8
|
)
|
|
$
|
(15
|
)
|
|
9.40
|
%
|
|
|
$
|
(6
|
)
|
|
$
|
(12
|
)
|
Spread over forward interest rate swap rates
|
889
|
|
bps
|
|
(5
|
)
|
|
(9
|
)
|
|
934
|
|
bps
|
|
(7
|
)
|
|
(13
|
)
|
(dollar amounts in millions)
|
|
Classification
|
|
September 30, 2019
|
||
Assets
|
|
|
|
|
||
Operating lease assets
|
|
Other assets
|
|
$
|
200
|
|
Liabilities
|
|
|
|
|
||
Lease liabilities
|
|
Other liabilities
|
|
$
|
225
|
|
(dollar amounts in millions)
|
|
Classification
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Operating lease cost
|
|
Net occupancy
|
|
$
|
11
|
|
|
$
|
34
|
|
Short term lease cost
|
|
Net occupancy
|
|
—
|
|
|
1
|
|
||
Sublease income
|
|
Net occupancy
|
|
(1
|
)
|
|
(2
|
)
|
||
Net lease cost
|
|
|
|
$
|
10
|
|
|
$
|
33
|
|
(dollar amounts in millions)
|
|
Total
|
||
Remainder of 2019
|
|
$
|
10
|
|
2020
|
|
50
|
|
|
2021
|
|
39
|
|
|
2022
|
|
34
|
|
|
2023
|
|
29
|
|
|
Thereafter
|
|
105
|
|
|
Total lease payments
|
|
$
|
267
|
|
Less: Interest
|
|
(42
|
)
|
|
Total lease liabilities
|
|
$
|
225
|
|
|
|
September 30, 2019
|
|
Weighted-average remaining lease term (years)
|
|
|
|
Operating leases
|
|
7.41
|
|
|
|
|
|
Weighted-average discount rate
|
|
|
|
Operating leases
|
|
4.67
|
%
|
(dollar amounts in millions)
|
|
Nine Months Ended September 30, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
(41
|
)
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations
|
|
|
||
Operating leases
|
|
19
|
|
|
Three Months Ended
September 30, 2019 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized gains (losses) on available-for-sale securities arising during the period
|
$
|
81
|
|
|
$
|
(18
|
)
|
|
$
|
63
|
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale securities
|
89
|
|
|
(20
|
)
|
|
69
|
|
|||
Net change in fair value on cash flow hedges
|
36
|
|
|
(8
|
)
|
|
28
|
|
|||
Net change in pension and other post-retirement obligations
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
126
|
|
|
$
|
(28
|
)
|
|
$
|
98
|
|
|
Three Months Ended
September 30, 2018 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized gains (losses) on available-for-sale securities arising during the period
|
$
|
(82
|
)
|
|
$
|
18
|
|
|
$
|
(64
|
)
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
3
|
|
|
(1
|
)
|
|
2
|
|
|||
Net change in unrealized gains (losses) on available-for-sale securities
|
(79
|
)
|
|
17
|
|
|
(62
|
)
|
|||
Net change in pension and other post-retirement obligations
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
(77
|
)
|
|
$
|
16
|
|
|
$
|
(61
|
)
|
|
Nine Months Ended
September 30, 2019 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized holding gains (losses) on available-for-sale securities arising during the period
|
$
|
428
|
|
|
$
|
(95
|
)
|
|
$
|
333
|
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
21
|
|
|
(5
|
)
|
|
16
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale securities
|
449
|
|
|
(100
|
)
|
|
349
|
|
|||
Net change in fair value on cash flow hedges
|
104
|
|
|
(22
|
)
|
|
82
|
|
|||
Net change in pension and other post-retirement obligations
|
3
|
|
|
—
|
|
|
3
|
|
|||
Total other comprehensive income (loss)
|
$
|
556
|
|
|
$
|
(122
|
)
|
|
$
|
434
|
|
|
Nine Months Ended
September 30, 2018 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized holding gains (losses) on available-for-sale securities arising during the period
|
$
|
(359
|
)
|
|
$
|
78
|
|
|
$
|
(281
|
)
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
21
|
|
|
(4
|
)
|
|
17
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale securities
|
(338
|
)
|
|
74
|
|
|
(264
|
)
|
|||
Net change in pension and other post-retirement obligations
|
4
|
|
|
(1
|
)
|
|
3
|
|
|||
Total other comprehensive income (loss)
|
$
|
(334
|
)
|
|
$
|
73
|
|
|
$
|
(261
|
)
|
(dollar amounts in millions)
|
Unrealized gains (losses) on
debt securities (1)
|
|
Change in fair value related to cash flow hedges
|
|
Unrealized gains
(losses) for
pension and
other post-
retirement
obligations
|
|
Total
|
||||||||
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(83
|
)
|
|
$
|
54
|
|
|
$
|
(244
|
)
|
|
$
|
(273
|
)
|
Other comprehensive income before reclassifications
|
63
|
|
|
28
|
|
|
—
|
|
|
91
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
6
|
|
|
—
|
|
|
1
|
|
|
7
|
|
||||
Period change
|
69
|
|
|
28
|
|
|
1
|
|
|
98
|
|
||||
Balance, end of period
|
$
|
(14
|
)
|
|
$
|
82
|
|
|
$
|
(243
|
)
|
|
$
|
(175
|
)
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(482
|
)
|
|
$
|
—
|
|
|
$
|
(248
|
)
|
|
$
|
(730
|
)
|
Other comprehensive income before reclassifications
|
(64
|
)
|
|
—
|
|
|
—
|
|
|
(64
|
)
|
||||
Amounts reclassified from accumulated OCI to earnings
|
2
|
|
|
—
|
|
|
1
|
|
|
3
|
|
||||
Period change
|
(62
|
)
|
|
—
|
|
|
1
|
|
|
(61
|
)
|
||||
Other
|
1
|
|
|
|
|
|
|
1
|
|
||||||
Balance, end of period
|
$
|
(543
|
)
|
|
$
|
—
|
|
|
$
|
(247
|
)
|
|
$
|
(790
|
)
|
(dollar amounts in millions)
|
Unrealized gains (losses) on
debt securities (1)
|
|
Change in fair value related to cash flow hedges
|
|
Unrealized gains
(losses) for
pension and
other post-
retirement
obligations
|
|
Total
|
||||||||
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(363
|
)
|
|
$
|
—
|
|
|
$
|
(246
|
)
|
|
$
|
(609
|
)
|
Other comprehensive income before reclassifications
|
333
|
|
|
82
|
|
|
—
|
|
|
415
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
16
|
|
|
—
|
|
|
3
|
|
|
19
|
|
||||
Period change
|
349
|
|
|
82
|
|
|
3
|
|
|
434
|
|
||||
Balance, end of period
|
$
|
(14
|
)
|
|
$
|
82
|
|
|
$
|
(243
|
)
|
|
$
|
(175
|
)
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(278
|
)
|
|
$
|
—
|
|
|
$
|
(250
|
)
|
|
$
|
(528
|
)
|
Cumulative-effect adjustments (ASU 2016-01)
|
(1
|
)
|
|
|
|
|
|
(1
|
)
|
||||||
Other comprehensive income before reclassifications
|
(281
|
)
|
|
—
|
|
|
—
|
|
|
(281
|
)
|
||||
Amounts reclassified from accumulated OCI to earnings
|
17
|
|
|
—
|
|
|
3
|
|
|
20
|
|
||||
Period change
|
(264
|
)
|
|
—
|
|
|
3
|
|
|
(261
|
)
|
||||
Balance, end of period
|
$
|
(543
|
)
|
|
$
|
—
|
|
|
$
|
(247
|
)
|
|
$
|
(790
|
)
|
(1)
|
AOCI amounts at September 30, 2019, June 30, 2019 and September 30, 2018 include $126 million, $131 million and $141 million, respectively, of net unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.
|
|
Reclassifications out of accumulated OCI
|
||||||||
Accumulated OCI components
|
Amounts reclassified from accumulated OCI
|
|
Location of net gain (loss) reclassified from
accumulated OCI into earnings
|
||||||
|
Three Months Ended
|
|
|
||||||
(dollar amounts in millions)
|
September 30, 2019
|
|
September 30, 2018
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(4
|
)
|
|
$
|
(3
|
)
|
|
Interest income - held-to-maturity securities - taxable
|
Realized gain (loss) on sale of securities
|
(4
|
)
|
|
—
|
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
Total before tax
|
(8
|
)
|
|
(3
|
)
|
|
|
||
Tax (expense) benefit
|
2
|
|
|
1
|
|
|
|
||
Net of tax
|
$
|
(6
|
)
|
|
$
|
(2
|
)
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|
|
|||||||
Actuarial gains (losses)
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
Noninterest income
|
Net periodic benefit costs
|
—
|
|
|
—
|
|
|
Noninterest income
|
||
Total before tax
|
(1
|
)
|
|
(2
|
)
|
|
|
||
Tax (expense) benefit
|
—
|
|
|
1
|
|
|
|
||
Net of tax
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
||||
|
Reclassifications out of accumulated OCI
|
||||||||
Accumulated OCI components
|
Amounts reclassified from accumulated OCI
|
|
Location of net gain (loss) reclassified from accumulated OCI into earnings
|
||||||
|
Nine Months Ended
|
|
|
||||||
(dollar amounts in millions)
|
September 30, 2019
|
|
September 30, 2018
|
|
|
||||
Gains (losses) on debt securities:
|
|
|
|
|
|
||||
Amortization of unrealized gains (losses)
|
$
|
(11
|
)
|
|
$
|
(9
|
)
|
|
Interest income - held-to-maturity securities - taxable
|
Realized gain (loss) on sale of securities
|
(10
|
)
|
|
(12
|
)
|
|
Noninterest income - net gains (losses) on sale of securities
|
||
Total before tax
|
(21
|
)
|
|
(21
|
)
|
|
|
||
Tax (expense) benefit
|
5
|
|
|
4
|
|
|
|
||
Net of tax
|
$
|
(16
|
)
|
|
$
|
(17
|
)
|
|
|
Amortization of defined benefit pension and post-retirement items:
|
|||||||||
Actuarial gains (losses)
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
|
Noninterest income
|
Net periodic benefit costs
|
1
|
|
|
2
|
|
|
Noninterest income
|
||
Total before tax
|
(3
|
)
|
|
(4
|
)
|
|
|
||
Tax (expense) benefit
|
—
|
|
|
1
|
|
|
|
||
Net of tax
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions, except per share data, share count in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
372
|
|
|
$
|
378
|
|
|
$
|
1,094
|
|
|
$
|
1,059
|
|
Preferred stock dividends
|
(18
|
)
|
|
(18
|
)
|
|
(55
|
)
|
|
(51
|
)
|
||||
Net income available to common shareholders
|
$
|
354
|
|
|
$
|
360
|
|
|
$
|
1,039
|
|
|
$
|
1,008
|
|
Average common shares issued and outstanding
|
1,034,940
|
|
|
1,084,536
|
|
|
1,042,246
|
|
|
1,090,570
|
|
||||
Basic earnings per common share
|
$
|
0.34
|
|
|
$
|
0.33
|
|
|
$
|
1.00
|
|
|
$
|
0.92
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Dilutive potential common shares:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock units and awards
|
11,930
|
|
|
15,655
|
|
|
12,681
|
|
|
17,105
|
|
||||
Shares held in deferred compensation plans
|
4,403
|
|
|
3,549
|
|
|
4,137
|
|
|
3,416
|
|
||||
Dilutive impact of Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
5,887
|
|
||||
Dilutive potential common shares
|
16,333
|
|
|
19,204
|
|
|
16,818
|
|
|
26,408
|
|
||||
Total diluted average common shares issued and outstanding
|
1,051,273
|
|
|
1,103,740
|
|
|
1,059,064
|
|
|
1,116,978
|
|
||||
Diluted earnings per common share
|
$
|
0.34
|
|
|
$
|
0.33
|
|
|
$
|
0.98
|
|
|
$
|
0.90
|
|
Anti-dilutive awards (1)
|
6,253
|
|
|
1,616
|
|
|
4,900
|
|
|
2,035
|
|
(1)
|
Reflects the total number of shares related to outstanding options that have been excluded from the computation of diluted earnings per share because the impact would have been anti-dilutive.
|
(dollar amounts in millions)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Noninterest income
|
|
|
|
|
|
|
|
|
||||||||
Noninterest income from contracts with customers
|
|
$
|
240
|
|
|
$
|
222
|
|
|
$
|
697
|
|
|
$
|
654
|
|
Noninterest income within the scope of other GAAP topics
|
|
149
|
|
|
120
|
|
|
385
|
|
|
338
|
|
||||
Total noninterest income
|
|
$
|
389
|
|
|
$
|
342
|
|
|
$
|
1,082
|
|
|
$
|
992
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
||||||||||||||||||
Service charges on deposit accounts
|
$
|
79
|
|
|
$
|
16
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
98
|
|
Card and payment processing income
|
56
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||||
Trust and investment management services
|
9
|
|
|
1
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
44
|
|
||||||
Insurance income
|
8
|
|
|
2
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
20
|
|
||||||
Other income
|
8
|
|
|
7
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
18
|
|
||||||
Net revenue from contracts with customers
|
$
|
160
|
|
|
$
|
30
|
|
|
$
|
4
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
240
|
|
Noninterest income within the scope of other GAAP topics
|
63
|
|
|
71
|
|
|
—
|
|
|
1
|
|
|
14
|
|
|
149
|
|
||||||
Total noninterest income
|
$
|
223
|
|
|
$
|
101
|
|
|
$
|
4
|
|
|
$
|
47
|
|
|
$
|
14
|
|
|
$
|
389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
||||||||||||||||||
Service charges on deposit accounts
|
$
|
75
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
93
|
|
Card and payment processing income
|
50
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Trust and investment management services
|
7
|
|
|
1
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
42
|
|
||||||
Insurance income
|
8
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
19
|
|
||||||
Other income
|
10
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
15
|
|
||||||
Net revenue from contracts with customers
|
$
|
150
|
|
|
$
|
23
|
|
|
$
|
2
|
|
|
$
|
46
|
|
|
$
|
1
|
|
|
$
|
222
|
|
Noninterest income within the scope of other GAAP topics
|
44
|
|
|
58
|
|
|
1
|
|
|
—
|
|
|
17
|
|
|
120
|
|
||||||
Total noninterest income
|
$
|
194
|
|
|
$
|
81
|
|
|
$
|
3
|
|
|
$
|
46
|
|
|
$
|
18
|
|
|
$
|
342
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
||||||||||||||||||
Service charges on deposit accounts
|
$
|
221
|
|
|
$
|
48
|
|
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
277
|
|
Card and payment processing income
|
162
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173
|
|
||||||
Trust and investment management services
|
25
|
|
|
2
|
|
|
—
|
|
|
103
|
|
|
1
|
|
|
131
|
|
||||||
Insurance income
|
25
|
|
|
5
|
|
|
—
|
|
|
33
|
|
|
1
|
|
|
64
|
|
||||||
Other income
|
24
|
|
|
17
|
|
|
4
|
|
|
5
|
|
|
2
|
|
|
52
|
|
||||||
Net revenue from contracts with customers
|
$
|
457
|
|
|
$
|
83
|
|
|
$
|
9
|
|
|
$
|
144
|
|
|
$
|
4
|
|
|
$
|
697
|
|
Noninterest income within the scope of other GAAP topics
|
139
|
|
|
183
|
|
|
—
|
|
|
3
|
|
|
60
|
|
|
385
|
|
||||||
Total noninterest income
|
$
|
596
|
|
|
$
|
266
|
|
|
$
|
9
|
|
|
$
|
147
|
|
|
$
|
64
|
|
|
$
|
1,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
||||||||||||||||||
Service charges on deposit accounts
|
$
|
215
|
|
|
$
|
48
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
270
|
|
Card and payment processing income
|
146
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154
|
|
||||||
Trust and investment management services
|
19
|
|
|
3
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
128
|
|
||||||
Insurance income
|
26
|
|
|
3
|
|
|
—
|
|
|
31
|
|
|
1
|
|
|
61
|
|
||||||
Other income
|
30
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
2
|
|
|
41
|
|
||||||
Net revenue from contracts with customers
|
$
|
436
|
|
|
$
|
65
|
|
|
$
|
6
|
|
|
$
|
144
|
|
|
$
|
3
|
|
|
$
|
654
|
|
Noninterest income within the scope of other GAAP topics
|
121
|
|
|
169
|
|
|
3
|
|
|
2
|
|
|
43
|
|
|
338
|
|
||||||
Total noninterest income
|
$
|
557
|
|
|
$
|
234
|
|
|
$
|
9
|
|
|
$
|
146
|
|
|
$
|
46
|
|
|
$
|
992
|
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
September 30, 2019
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
$
|
—
|
|
|
$
|
89
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89
|
|
Other securities
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|||||
|
29
|
|
|
89
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Residential CMOs
|
—
|
|
|
6,724
|
|
|
—
|
|
|
—
|
|
|
6,724
|
|
|||||
Residential MBS
|
—
|
|
|
2,393
|
|
|
—
|
|
|
—
|
|
|
2,393
|
|
|||||
Commercial MBS
|
—
|
|
|
1,239
|
|
|
—
|
|
|
—
|
|
|
1,239
|
|
|||||
Other agencies
|
—
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||
Municipal securities
|
—
|
|
|
58
|
|
|
3,094
|
|
|
—
|
|
|
3,152
|
|
|||||
Asset-backed securities
|
—
|
|
|
540
|
|
|
55
|
|
|
—
|
|
|
595
|
|
|||||
Corporate debt
|
—
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|||||
Other securities/sovereign debt
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
10
|
|
|
11,127
|
|
|
3,149
|
|
|
—
|
|
|
14,286
|
|
|||||
Other securities
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|||||
Loans held for sale
|
—
|
|
|
963
|
|
|
—
|
|
|
—
|
|
|
963
|
|
|||||
Loans held for investment
|
—
|
|
|
53
|
|
|
27
|
|
|
—
|
|
|
80
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|||||
Derivative assets
|
—
|
|
|
1,112
|
|
|
11
|
|
|
(546
|
)
|
|
577
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
628
|
|
|
3
|
|
|
(504
|
)
|
|
127
|
|
|
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
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
|
|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2019 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
3,202
|
|
|
$
|
—
|
|
|
$
|
28
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(1
|
)
|
|
19
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
28
|
|
|
55
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
3,094
|
|
|
$
|
55
|
|
|
$
|
27
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
(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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2018 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Loans held for investment
|
||||||||
Opening balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,178
|
|
|
$
|
34
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
—
|
|
|
9
|
|
|
(1
|
)
|
|
—
|
|
||||
Included in OCI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases/originations
|
—
|
|
|
—
|
|
|
260
|
|
|
—
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Settlements
|
—
|
|
|
3
|
|
|
(160
|
)
|
|
—
|
|
||||
Closing balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,277
|
|
|
$
|
32
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2019 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
3,165
|
|
|
$
|
—
|
|
|
$
|
30
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(2
|
)
|
|
50
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
136
|
|
|
55
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(276
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
3,094
|
|
|
$
|
55
|
|
|
$
|
27
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(2
|
)
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2018 |
||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment
|
||||||||||
Opening balance
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
3,167
|
|
|
$
|
24
|
|
|
$
|
38
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
—
|
|
|
25
|
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|||||
Included in OCI
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
11
|
|
|
—
|
|
|||||
Purchases/originations
|
—
|
|
|
—
|
|
|
539
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Settlements
|
—
|
|
|
3
|
|
|
(389
|
)
|
|
—
|
|
|
—
|
|
|||||
Closing balance
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
3,277
|
|
|
$
|
—
|
|
|
$
|
32
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
|
|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2019 |
||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
||||||
Mortgage banking income
|
$
|
(1
|
)
|
|
$
|
19
|
|
|
$
|
—
|
|
Interest and fee income
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Total
|
$
|
(1
|
)
|
|
$
|
19
|
|
|
$
|
(1
|
)
|
|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2018 |
||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
||||||
Mortgage banking income
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Other expense
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Total
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
(1
|
)
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2019 |
||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
||||||
Mortgage banking income
|
$
|
(2
|
)
|
|
$
|
50
|
|
|
$
|
—
|
|
Interest and fee income
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Total
|
$
|
(2
|
)
|
|
$
|
50
|
|
|
$
|
(1
|
)
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2018 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
||||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
|
|
||||||||
Mortgage banking income
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Other expense
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Total
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
September 30, 2019
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
Assets
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
||||||||||||
Loans held for sale
|
$
|
963
|
|
|
$
|
932
|
|
|
$
|
31
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Loans held for investment
|
80
|
|
|
86
|
|
|
(6
|
)
|
|
4
|
|
|
6
|
|
|
(2
|
)
|
|
December 31, 2018
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Total Loans
|
|
Loans that are 90 or more days past due
|
||||||||||||||||||||
Assets
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference
|
||||||||||||
Loans held for sale
|
$
|
613
|
|
|
$
|
594
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans held for investment
|
79
|
|
|
87
|
|
|
(8
|
)
|
|
6
|
|
|
7
|
|
|
(1
|
)
|
|
|
Net gains (losses) from fair value changes
|
|
Net gains (losses) from fair value changes
|
||||||||||||
(dollar amounts in millions)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Assets
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Loans held for sale (1)
|
|
$
|
6
|
|
|
$
|
(4
|
)
|
|
$
|
12
|
|
|
$
|
(1
|
)
|
(1)
|
The net gains (losses) from fair value changes are included in Mortgage banking income on the Unaudited Condensed Consolidated Statements of Income.
|
|
|
|
Fair Value Measurements Using
|
|
|
||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
Gains/(Losses) Nine Months Ended September 30, 2019 |
||||||||||
MSRs
|
$
|
172
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
172
|
|
|
$
|
(38
|
)
|
Impaired loans
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
(1
|
)
|
|||||
Loans held for sale
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
(13
|
)
|
|
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
|
|||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Input
|
|
Range
|
|
Weighted Average
|
|||||||
Measured at fair value on a recurring basis:
|
|
|
|
|
||||||||||||
MSRs
|
$
|
10
|
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
6
|
%
|
-
|
54
|
%
|
|
8
|
%
|
|
|
|
|
|
Spread over forward interest rate swap rates
|
|
5
|
%
|
-
|
11
|
%
|
|
8
|
%
|
||
Derivative assets
|
5
|
|
|
Consensus Pricing
|
|
Net market price
|
|
(5
|
)%
|
-
|
23
|
%
|
|
2
|
%
|
|
|
|
|
|
|
Estimated Pull through %
|
|
1
|
%
|
-
|
100
|
%
|
|
92
|
%
|
||
Derivative liabilities
|
3
|
|
|
Discounted cash flow
|
|
Estimated conversion factor
|
|
|
|
|
|
163
|
%
|
|||
|
|
|
|
|
Estimated growth rate of Visa Class A shares
|
|
|
|
|
|
7
|
%
|
||||
|
|
|
|
|
Discount rate
|
|
|
|
|
|
4
|
%
|
||||
|
|
|
|
|
Timing of the resolution of the litigation
|
|
|
|
|
|
6/30/2020
|
|
||||
Municipal securities
|
3,165
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
4
|
%
|
-
|
4
|
%
|
|
4
|
%
|
|
|
|
|
|
|
Cumulative default
|
|
0
|
%
|
-
|
39
|
%
|
|
3
|
%
|
||
|
|
|
|
|
Loss given default
|
|
5
|
%
|
-
|
90
|
%
|
|
25
|
%
|
||
Loans held for investment
|
30
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
7
|
%
|
-
|
9
|
%
|
|
9
|
%
|
|
|
|
|
|
|
Constant prepayment rate
|
|
9
|
%
|
-
|
9
|
%
|
|
9
|
%
|
||
Measured at fair value on a nonrecurring basis:
|
|
|
|
|
||||||||||||
Impaired loans
|
33
|
|
|
Appraisal value
|
|
NA
|
|
|
|
|
|
NA
|
|
|||
Loans held for sale
|
121
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
5
|
%
|
-
|
6
|
%
|
|
5
|
%
|
|
|
24
|
|
|
Appraisal value
|
|
NA
|
|
|
|
|
|
NA
|
|
|
September 30, 2019
|
||||||||||||||||||
(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
|
$
|
1,758
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,758
|
|
|
$
|
1,758
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
118
|
|
|
118
|
|
|
118
|
|
|||||
Available-for-sale securities
|
—
|
|
|
—
|
|
|
14,286
|
|
|
14,286
|
|
|
14,286
|
|
|||||
Held-to-maturity securities
|
8,430
|
|
|
—
|
|
|
—
|
|
|
8,430
|
|
|
8,584
|
|
|||||
Other securities
|
401
|
|
|
—
|
|
|
54
|
|
|
455
|
|
|
455
|
|
|||||
Loans held for sale
|
—
|
|
|
101
|
|
|
963
|
|
|
1,064
|
|
|
1,067
|
|
|||||
Net loans and leases (1)
|
74,029
|
|
|
—
|
|
|
80
|
|
|
74,109
|
|
|
75,234
|
|
|||||
Derivatives
|
—
|
|
|
—
|
|
|
577
|
|
|
577
|
|
|
577
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
82,395
|
|
|
—
|
|
|
—
|
|
|
82,395
|
|
|
82,398
|
|
|||||
Short-term borrowings
|
2,173
|
|
|
—
|
|
|
—
|
|
|
2,173
|
|
|
2,173
|
|
|||||
Long-term debt
|
9,874
|
|
|
—
|
|
|
—
|
|
|
9,874
|
|
|
10,075
|
|
|||||
Derivatives
|
—
|
|
|
—
|
|
|
127
|
|
|
127
|
|
|
127
|
|
|
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
|
|
(1)
|
Includes collateral-dependent loans measured for impairment.
|
|
Estimated Fair Value Measurements at Reporting Date Using
|
|
September 30, 2019
|
||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Trading account securities
|
$
|
29
|
|
|
$
|
89
|
|
|
$
|
—
|
|
|
$
|
118
|
|
Available-for-sale securities
|
10
|
|
|
11,127
|
|
|
3,149
|
|
|
14,286
|
|
||||
Held-to-maturity securities
|
—
|
|
|
8,584
|
|
|
—
|
|
|
8,584
|
|
||||
Other securities (1)
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||
Loans held for sale
|
—
|
|
|
963
|
|
|
104
|
|
|
1,067
|
|
||||
Net loans and direct financing leases
|
—
|
|
|
80
|
|
|
75,154
|
|
|
75,234
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
—
|
|
|
75,707
|
|
|
6,691
|
|
|
82,398
|
|
||||
Short-term borrowings
|
—
|
|
|
—
|
|
|
2,173
|
|
|
2,173
|
|
||||
Long-term debt
|
—
|
|
|
9,435
|
|
|
640
|
|
|
10,075
|
|
|
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
|
|
(1)
|
Excludes securities without readily determinable fair values.
|
|
September 30, 2019
|
December 31, 2018
|
|||||||||||||
(dollar amounts in millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Derivatives designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
376
|
|
|
$
|
19
|
|
|
$
|
44
|
|
|
$
|
42
|
|
Derivatives not designated as Hedging Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
544
|
|
|
417
|
|
|
261
|
|
|
165
|
|
||||
Foreign exchange contracts
|
22
|
|
|
20
|
|
|
23
|
|
|
19
|
|
||||
Commodities contracts
|
178
|
|
|
172
|
|
|
172
|
|
|
168
|
|
||||
Equity contracts
|
3
|
|
|
3
|
|
|
—
|
|
|
10
|
|
||||
Total Contracts
|
$
|
1,123
|
|
|
$
|
631
|
|
|
$
|
500
|
|
|
$
|
404
|
|
|
|
Location of Gain or (Loss) Recognized in Income on Derivative
|
|
Amount of Gain or (Loss) Recognized in Income on Derivative
|
||||||||||||||
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||
(dollar amounts in millions)
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Customer
|
|
Capital markets fees
|
|
$
|
15
|
|
|
$
|
11
|
|
|
$
|
38
|
|
|
$
|
30
|
|
Mortgage Banking
|
|
Mortgage banking income
|
|
28
|
|
|
5
|
|
|
52
|
|
|
(3
|
)
|
||||
Interest Rate Floors
|
|
Other noninterest income
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Foreign exchange contracts
|
|
Capital markets fees
|
|
7
|
|
|
6
|
|
|
22
|
|
|
18
|
|
||||
Commodities contracts
|
|
Capital markets fees
|
|
1
|
|
|
1
|
|
|
(3
|
)
|
|
3
|
|
||||
Equity contracts
|
|
Other noninterest expense
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
3
|
|
||||
Total
|
|
|
|
$
|
48
|
|
|
$
|
23
|
|
|
$
|
110
|
|
|
$
|
51
|
|
|
September 30, 2019
|
||||||||||
(dollar amounts in millions)
|
Fair Value
Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Loans
|
$
|
—
|
|
|
$
|
17,150
|
|
|
$
|
17,150
|
|
Investment securities
|
—
|
|
|
12
|
|
|
12
|
|
|||
Long-term debt
|
7,540
|
|
|
—
|
|
|
7,540
|
|
|||
Total notional value at September 30, 2019
|
$
|
7,540
|
|
|
$
|
17,162
|
|
|
$
|
24,702
|
|
|
|
|
|
|
|
||||||
|
|
|
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
|
|
|
September 30, 2019
|
||||||||||||||||
|
|
|
|
|
|
|
Weighted-Average Rate
|
||||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
|
Receive
|
|
Pay
|
||||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||||
Receive fixed—generic
|
$
|
8,287
|
|
|
3.5
|
|
|
$
|
106
|
|
|
1.69
|
%
|
|
1.33
|
%
|
|
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||||
Receive fixed—generic
|
7,540
|
|
|
2.5
|
|
|
191
|
|
|
2.20
|
|
|
2.08
|
|
|||
Total swap portfolio at September 30, 2019
|
$
|
15,827
|
|
|
3.0
|
|
|
$
|
297
|
|
|
1.93
|
%
|
|
1.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
September 30, 2019
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
||||||||||||
Interest rate floors
|
|
|
|
|
|
|
|
|
|
||||||||
Designated interest rate floors
|
$
|
8,875
|
|
|
1.6
|
|
|
$
|
60
|
|
|||||||
Total floors portfolio at September 30, 2019
|
$
|
8,875
|
|
|
1.6
|
|
|
$
|
60
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2018
|
||||||||||||||||
|
|
|
|
|
|
|
Weighted-Average Rate
|
||||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Average Maturity (years)
|
|
Fair Value
|
|
Receive
|
|
Pay
|
||||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
||||||||
Receive fixed—generic
|
$
|
12
|
|
|
1.2
|
|
|
$
|
—
|
|
|
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
|
%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended September 30,
|
||||||||||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||||
Change in fair value of interest rate swaps hedging long-term debt (1)
|
$
|
36
|
|
|
$
|
(11
|
)
|
|
$
|
165
|
|
|
$
|
55
|
|
Change in fair value of hedged long term debt (1)
|
(32
|
)
|
|
12
|
|
|
(162
|
)
|
|
(49
|
)
|
(1)
|
Recognized in Interest expense—long-term debt in the Unaudited Condensed Consolidated Statements of Income.
|
|
Carrying Amount of the Hedged Liabilities
|
|
Cumulative Amount of Fair Value Hedging Adjustment To Hedged Liabilities
|
||||||||||||
(dollar amounts in millions)
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
Long-term debt
|
$
|
7,835
|
|
|
$
|
4,845
|
|
|
$
|
150
|
|
|
$
|
(12
|
)
|
(dollar amounts in millions)
|
September 30, 2019
|
December 31, 2018
|
|||||||||||
Notional value
|
$
|
572
|
|
|
$
|
—
|
|
||||||
Trading assets
|
30
|
|
|
—
|
|
||||||||
Trading liabilities
|
(1
|
)
|
|
—
|
|
||||||||
|
|
|
|
||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(dollar amounts in millions)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Trading gains (losses)
|
$
|
20
|
|
$
|
—
|
|
|
$
|
44
|
|
$
|
(8
|
)
|
Offsetting of Financial Liabilities and Derivative Liabilities
|
||||||||||||||||||||||||
|
|
|
|
Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets
|
|
Net amounts of
liabilities
presented in
the unaudited condensed
consolidated
balance sheets
|
|
Gross amounts not offset in the
unaudited condensed consolidated
balance sheets
|
|
|
||||||||||||||
(dollar amounts in millions)
|
|
Gross amounts
of recognized
liabilities
|
|
|
|
Financial
instruments
|
|
Cash collateral
delivered
|
|
Net amount
|
||||||||||||||
September 30, 2019
|
Derivatives
|
$
|
631
|
|
|
$
|
(504
|
)
|
|
$
|
127
|
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
104
|
|
December 31, 2018
|
Derivatives
|
404
|
|
|
(217
|
)
|
|
187
|
|
|
—
|
|
|
(12
|
)
|
|
175
|
|
|
September 30, 2019
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
Trust Preferred Securities
|
$
|
14
|
|
|
$
|
252
|
|
|
$
|
—
|
|
Affordable Housing Tax Credit Partnerships
|
714
|
|
|
338
|
|
|
714
|
|
|||
Other Investments
|
157
|
|
|
64
|
|
|
157
|
|
|||
Total
|
$
|
885
|
|
|
$
|
654
|
|
|
$
|
871
|
|
|
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
|
|
(dollar amounts in millions)
|
Rate
|
|
Principal amount of
subordinated note/
debenture issued to trust (1)
|
|
Investment in
unconsolidated
subsidiary
|
|||||
Huntington Capital I
|
2.79
|
%
|
(2)
|
$
|
70
|
|
|
$
|
6
|
|
Huntington Capital II
|
2.71
|
|
(3)
|
32
|
|
|
3
|
|
||
Sky Financial Capital Trust III
|
3.49
|
|
(4)
|
72
|
|
|
2
|
|
||
Sky Financial Capital Trust IV
|
3.49
|
|
(4)
|
74
|
|
|
2
|
|
||
Camco Financial Trust
|
3.42
|
|
(5)
|
4
|
|
|
1
|
|
||
Total
|
|
|
$
|
252
|
|
|
$
|
14
|
|
(1)
|
Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.
|
(2)
|
Variable effective rate at September 30, 2019, based on three-month LIBOR +0.70%.
|
(3)
|
Variable effective rate at September 30, 2019, based on three-month LIBOR +0.625%.
|
(4)
|
Variable effective rate at September 30, 2019, based on three-month LIBOR +1.40%.
|
(5)
|
Variable effective rate at September 30, 2019, based on three-month LIBOR +1.33%.
|
(dollar amounts in millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Affordable housing tax credit investments
|
$
|
1,219
|
|
|
$
|
1,147
|
|
Less: amortization
|
(505
|
)
|
|
(439
|
)
|
||
Net affordable housing tax credit investments
|
$
|
714
|
|
|
$
|
708
|
|
Unfunded commitments
|
$
|
338
|
|
|
$
|
357
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(dollar amounts in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Tax credits and other tax benefits recognized
|
|
$
|
26
|
|
|
$
|
24
|
|
|
$
|
79
|
|
|
$
|
70
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proportional amortization expense included in provision for income taxes
|
|
22
|
|
|
19
|
|
|
66
|
|
|
59
|
|
(dollar amounts in millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Contract amount representing credit risk
|
|
|
|
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial
|
$
|
18,345
|
|
|
$
|
17,149
|
|
Consumer
|
14,754
|
|
|
14,974
|
|
||
Commercial real estate
|
1,410
|
|
|
1,188
|
|
||
Standby letters of credit
|
624
|
|
|
676
|
|
||
Commercial letters-of-credit
|
10
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
433
|
|
|
$
|
263
|
|
|
$
|
100
|
|
|
$
|
48
|
|
|
$
|
(45
|
)
|
|
$
|
799
|
|
Provision (benefit) for credit losses
|
35
|
|
|
36
|
|
|
12
|
|
|
(1
|
)
|
|
—
|
|
|
82
|
|
||||||
Noninterest income
|
223
|
|
|
101
|
|
|
4
|
|
|
47
|
|
|
14
|
|
|
389
|
|
||||||
Noninterest expense
|
421
|
|
|
142
|
|
|
36
|
|
|
63
|
|
|
5
|
|
|
667
|
|
||||||
Provision (benefit) for income taxes
|
42
|
|
|
39
|
|
|
12
|
|
|
7
|
|
|
(33
|
)
|
|
67
|
|
||||||
Net income (loss)
|
$
|
158
|
|
|
$
|
147
|
|
|
$
|
44
|
|
|
$
|
26
|
|
|
$
|
(3
|
)
|
|
$
|
372
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
445
|
|
|
$
|
259
|
|
|
$
|
97
|
|
|
$
|
51
|
|
|
$
|
(50
|
)
|
|
$
|
802
|
|
Provision (benefit) for credit losses
|
41
|
|
|
(1
|
)
|
|
13
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Noninterest income
|
194
|
|
|
81
|
|
|
3
|
|
|
46
|
|
|
18
|
|
|
342
|
|
||||||
Noninterest expense
|
424
|
|
|
121
|
|
|
35
|
|
|
60
|
|
|
11
|
|
|
651
|
|
||||||
Provision (benefit) for income taxes
|
38
|
|
|
46
|
|
|
11
|
|
|
6
|
|
|
(39
|
)
|
|
62
|
|
||||||
Net income (loss)
|
$
|
136
|
|
|
$
|
174
|
|
|
$
|
41
|
|
|
$
|
31
|
|
|
$
|
(4
|
)
|
|
$
|
378
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,371
|
|
|
$
|
798
|
|
|
$
|
291
|
|
|
$
|
153
|
|
|
$
|
(180
|
)
|
|
$
|
2,433
|
|
Provision (benefit) for credit losses
|
81
|
|
|
103
|
|
|
27
|
|
|
(3
|
)
|
|
—
|
|
|
208
|
|
||||||
Noninterest income
|
596
|
|
|
266
|
|
|
9
|
|
|
147
|
|
|
64
|
|
|
1,082
|
|
||||||
Noninterest expense
|
1,247
|
|
|
427
|
|
|
112
|
|
|
193
|
|
|
41
|
|
|
2,020
|
|
||||||
Provision (benefit) for income taxes
|
134
|
|
|
113
|
|
|
33
|
|
|
23
|
|
|
(110
|
)
|
|
193
|
|
||||||
Net income (loss)
|
$
|
505
|
|
|
$
|
421
|
|
|
$
|
128
|
|
|
$
|
87
|
|
|
$
|
(47
|
)
|
|
$
|
1,094
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
1,254
|
|
|
$
|
744
|
|
|
$
|
294
|
|
|
$
|
148
|
|
|
$
|
(84
|
)
|
|
$
|
2,356
|
|
Provision (benefit) for credit losses
|
98
|
|
|
41
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
175
|
|
||||||
Noninterest income
|
557
|
|
|
234
|
|
|
9
|
|
|
146
|
|
|
46
|
|
|
992
|
|
||||||
Noninterest expense
|
1,263
|
|
|
364
|
|
|
106
|
|
|
180
|
|
|
23
|
|
|
1,936
|
|
||||||
Provision (benefit) for income taxes
|
95
|
|
|
120
|
|
|
34
|
|
|
24
|
|
|
(95
|
)
|
|
178
|
|
||||||
Net income (loss)
|
$
|
355
|
|
|
$
|
453
|
|
|
$
|
127
|
|
|
$
|
90
|
|
|
$
|
34
|
|
|
$
|
1,059
|
|
|
Assets at
|
|
Deposits at
|
||||||||||||
(dollar amounts in millions)
|
September 30,
2019 |
|
December 31,
2018 |
|
September 30,
2019 |
|
December 31,
2018 |
||||||||
Consumer & Business Banking
|
$
|
25,418
|
|
|
$
|
27,486
|
|
|
$
|
51,671
|
|
|
$
|
50,300
|
|
Commercial Banking
|
34,368
|
|
|
34,818
|
|
|
21,088
|
|
|
23,185
|
|
||||
Vehicle Finance
|
19,414
|
|
|
19,435
|
|
|
363
|
|
|
346
|
|
||||
RBHPCG
|
6,593
|
|
|
6,540
|
|
|
6,101
|
|
|
6,809
|
|
||||
Treasury / Other
|
22,942
|
|
|
20,502
|
|
|
3,172
|
|
|
4,134
|
|
||||
Total
|
$
|
108,735
|
|
|
$
|
108,781
|
|
|
$
|
82,395
|
|
|
$
|
84,774
|
|
Period
|
Total Number of Shares Purchased (1)
|
|
Average
Price Paid Per Share |
|
Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs (2)
|
|||||
July 1, 2019 to July 31, 2019
|
59,000
|
|
|
$
|
14.42
|
|
|
$
|
512,149,127
|
|
August 1, 2019 to August 31, 2019
|
5,154,176
|
|
|
13.01
|
|
|
445,099,835
|
|
||
September 1, 2019 to September 30, 2019
|
—
|
|
|
—
|
|
|
445,099,835
|
|
||
Total
|
5,213,176
|
|
|
$
|
13.02
|
|
|
$
|
445,099,835
|
|
(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.
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
***
|
The following material from Huntington’s Form 10-Q Report for the quarterly period ended September 30, 2019, formatted in Inline XBRL: (1) Unaudited Condensed Consolidated Balance Sheets, (2) Unaudited Condensed Consolidated Statements of Income, (3) Unaudited Condensed Consolidated Statements of Comprehensive Income (4) Unaudited Condensed Consolidated Statement of Changes in Shareholders’ Equity, (5) Unaudited Condensed Consolidated Statements of Cash Flows, and (6) the Notes to Unaudited Condensed Consolidated Financial Statements.
|
|
|
|
|
Date:
|
October 28, 2019
|
|
/s/ Stephen D. Steinour
|
|
|
|
Stephen D. Steinour
|
|
|
|
Chairman, President, and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
Date:
|
October 28, 2019
|
|
/s/ Howell D. McCullough III
|
|
|
|
Howell D. McCullough III
|
|
|
|
Chief Financial Officer
(Principal Financial Officer)
|
A.
|
Huntington Bancshares Incorporated (the “Company”) maintains The Huntington Supplemental 401(k) Plan (the “Plan”), amended and restated effective as of January 1, 2019.
|
B.
|
Section 7.1 of the Plan gives the Company the power and authority to amend the Plan from time to time by action of the Compensation Committee of its Board of Directors or an authorized delegate thereof.
|
C.
|
The Company desires to amend the Plan effective as of December 31, 2019, to provide for the freezing of all participation in and accrual of any additional benefits (other than investment earnings on amounts already deferred) under the Plan.
|
1.
|
A new Section 2.6 is hereby added to the Plan, reading as follows:
|
2.
|
Section 3.1 of the Plan is hereby amended by adding the following to the end thereof:
|
3.
|
All other provisions of the Plan shall remain unchanged.
|
A.
|
Huntington Bancshares Incorporated (the “Company”) maintains The Huntington Bancshares Supplemental Retirement Income Plan (the “Plan”), amended and restated effective as of December 31, 2013.
|
B.
|
Section 8.01 of the Plan gives the Company the power and authority to amend the Plan from time to time by action of its Board of Directors or an authorized delegate thereof.
|
C.
|
The Company desires to amend the Plan effective one year following the date of this Amendment, to require that a pre-retirement death benefit under the Plan be paid in the form of a single lump sum.
|
1.
|
Section 4.02 of the Plan is hereby amended by adding the following sentence to the end of the paragraph:
|
2.
|
All other provisions of the Plan shall remain unchanged.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 28, 2019
|
|
|
|
|
|
|
/s/
|
Stephen D. Steinour
|
|
|
|
|
Stephen D. Steinour
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 28, 2019
|
|
|
|
|
|
|
/s/
|
Howell D. McCullough III
|
|
|
|
|
Howell D. McCullough III
|
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/
|
Stephen D. Steinour
|
|
|
Stephen D. Steinour
|
|
|
Chief Executive Officer
|
|
|
October 28, 2019
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/
|
Howell D. McCullough III
|
|
|
Howell D. McCullough III
|
|
|
Chief Financial Officer
|
|
|
October 28, 2019
|