☒
|
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
|
Common Stock—Par Value $0.01 per Share
|
HBAN
|
NASDAQ
|
Depositary Shares (each representing a 1/40th interest in a share of 5.875% Series C Non-Cumulative, perpetual preferred stock)
|
HBANN
|
NASDAQ
|
Depositary Shares (each representing a 1/40th interest in a share of 6.250% Series D Non-Cumulative, perpetual preferred stock)
|
HBANO
|
NASDAQ
|
Large Accelerated Filer
|
x
|
|
Accelerated filer
|
☐
|
|
|
|
|
|
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
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
|
PCD
|
|
Purchased-Credit-Deteriorated
|
PPP
|
|
Paycheck Protection Program
|
PPPLF
|
|
Paycheck Protection Program Liquidity Facility
|
RBHPCG
|
|
Regional Banking and The Huntington Private Client Group
|
ROC
|
|
Risk Oversight Committee
|
SBA
|
|
Small Business Administration
|
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
|
Table 1 - Selected Quarterly Income Statement Data
|
|||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
(amounts in millions, except per share data)
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
||||||||||
Interest income
|
$
|
902
|
|
|
$
|
975
|
|
|
$
|
1,011
|
|
|
$
|
1,052
|
|
|
$
|
1,068
|
|
Interest expense
|
110
|
|
|
185
|
|
|
231
|
|
|
253
|
|
|
256
|
|
|||||
Net interest income
|
792
|
|
|
790
|
|
|
780
|
|
|
799
|
|
|
812
|
|
|||||
Provision for credit losses
|
327
|
|
|
441
|
|
|
79
|
|
|
82
|
|
|
59
|
|
|||||
Net interest income after provision for credit losses
|
465
|
|
|
349
|
|
|
701
|
|
|
717
|
|
|
753
|
|
|||||
Service charges on deposit accounts
|
60
|
|
|
87
|
|
|
95
|
|
|
98
|
|
|
92
|
|
|||||
Card and payment processing income
|
59
|
|
|
58
|
|
|
64
|
|
|
64
|
|
|
63
|
|
|||||
Trust and investment management services
|
45
|
|
|
47
|
|
|
47
|
|
|
44
|
|
|
43
|
|
|||||
Mortgage banking income
|
96
|
|
|
58
|
|
|
58
|
|
|
54
|
|
|
34
|
|
|||||
Capital markets fees
|
31
|
|
|
33
|
|
|
31
|
|
|
36
|
|
|
34
|
|
|||||
Insurance income
|
25
|
|
|
23
|
|
|
24
|
|
|
20
|
|
|
23
|
|
|||||
Bank owned life insurance income
|
17
|
|
|
16
|
|
|
17
|
|
|
18
|
|
|
15
|
|
|||||
Gain on sale of loans and leases
|
8
|
|
|
8
|
|
|
16
|
|
|
13
|
|
|
13
|
|
|||||
Net (losses) gains on sales of securities
|
(1
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Other noninterest income
|
51
|
|
|
31
|
|
|
42
|
|
|
42
|
|
|
59
|
|
|||||
Total noninterest income
|
391
|
|
|
361
|
|
|
372
|
|
|
389
|
|
|
374
|
|
|||||
Personnel costs
|
418
|
|
|
395
|
|
|
426
|
|
|
406
|
|
|
428
|
|
|||||
Outside data processing and other services
|
90
|
|
|
85
|
|
|
89
|
|
|
87
|
|
|
89
|
|
|||||
Equipment
|
46
|
|
|
41
|
|
|
42
|
|
|
41
|
|
|
40
|
|
|||||
Net occupancy
|
39
|
|
|
40
|
|
|
41
|
|
|
38
|
|
|
38
|
|
|||||
Professional services
|
11
|
|
|
11
|
|
|
14
|
|
|
16
|
|
|
12
|
|
|||||
Amortization of intangibles
|
10
|
|
|
11
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|||||
Marketing
|
5
|
|
|
9
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|||||
Deposit and other insurance expense
|
9
|
|
|
9
|
|
|
10
|
|
|
8
|
|
|
8
|
|
|||||
Other noninterest expense
|
47
|
|
|
51
|
|
|
58
|
|
|
49
|
|
|
62
|
|
|||||
Total noninterest expense
|
675
|
|
|
652
|
|
|
701
|
|
|
667
|
|
|
700
|
|
|||||
Income before income taxes
|
181
|
|
|
58
|
|
|
372
|
|
|
439
|
|
|
427
|
|
|||||
Provision for income taxes
|
31
|
|
|
10
|
|
|
55
|
|
|
67
|
|
|
63
|
|
|||||
Net income
|
150
|
|
|
48
|
|
|
317
|
|
|
372
|
|
|
364
|
|
|||||
Dividends on preferred shares
|
19
|
|
|
18
|
|
|
19
|
|
|
18
|
|
|
18
|
|
|||||
Net income applicable to common shares
|
$
|
131
|
|
|
$
|
30
|
|
|
$
|
298
|
|
|
$
|
354
|
|
|
$
|
346
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average common shares—basic
|
1,016
|
|
|
1,018
|
|
|
1,029
|
|
|
1,035
|
|
|
1,045
|
|
|||||
Average common shares—diluted
|
1,029
|
|
|
1,035
|
|
|
1,047
|
|
|
1,051
|
|
|
1,060
|
|
|||||
Net income per common share—basic
|
$
|
0.13
|
|
|
$
|
0.03
|
|
|
$
|
0.29
|
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Net income per common share—diluted
|
0.13
|
|
|
0.03
|
|
|
0.28
|
|
|
0.34
|
|
|
0.33
|
|
|||||
Return on average total assets
|
0.51
|
%
|
|
0.17
|
%
|
|
1.15
|
%
|
|
1.37
|
%
|
|
1.36
|
%
|
|||||
Return on average common shareholders’ equity
|
5.0
|
|
|
1.1
|
|
|
11.1
|
|
|
13.4
|
|
|
13.5
|
|
|||||
Return on average tangible common shareholders’ equity (1)
|
6.7
|
|
|
1.8
|
|
|
14.3
|
|
|
17.3
|
|
|
17.7
|
|
|||||
Net interest margin (2)
|
2.94
|
|
|
3.14
|
|
|
3.12
|
|
|
3.20
|
|
|
3.31
|
|
|||||
Efficiency ratio (3)
|
55.9
|
|
|
55.4
|
|
|
58.4
|
|
|
54.7
|
|
|
57.6
|
|
|||||
Effective tax rate
|
17.2
|
|
|
17.0
|
|
|
14.8
|
|
|
15.4
|
|
|
14.6
|
|
|||||
Revenue—FTE
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
792
|
|
|
$
|
790
|
|
|
$
|
780
|
|
|
$
|
799
|
|
|
$
|
812
|
|
FTE adjustment
|
5
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
7
|
|
|||||
Net interest income (2)
|
797
|
|
|
796
|
|
|
786
|
|
|
805
|
|
|
819
|
|
|||||
Noninterest income
|
391
|
|
|
361
|
|
|
372
|
|
|
389
|
|
|
374
|
|
|||||
Total revenue (2)
|
$
|
1,188
|
|
|
$
|
1,157
|
|
|
$
|
1,158
|
|
|
$
|
1,194
|
|
|
$
|
1,193
|
|
|
|
|
|
|
|
|
|
|||||||
Table 2 - Selected Year to Date Income Statements
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(amounts in millions, except per share data)
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
Interest income
|
$
|
1,877
|
|
|
$
|
2,138
|
|
|
$
|
(261
|
)
|
|
(12
|
)%
|
Interest expense
|
295
|
|
|
504
|
|
|
(209
|
)
|
|
(41
|
)
|
|||
Net interest income
|
1,582
|
|
|
1,634
|
|
|
(52
|
)
|
|
(3
|
)
|
|||
Provision for credit losses
|
768
|
|
|
126
|
|
|
642
|
|
|
510
|
|
|||
Net interest income after provision for credit losses
|
814
|
|
|
1,508
|
|
|
(694
|
)
|
|
(46
|
)
|
|||
Service charges on deposit accounts
|
148
|
|
|
179
|
|
|
(31
|
)
|
|
(17
|
)
|
|||
Card and payment processing income
|
117
|
|
|
119
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Trust and investment management services
|
92
|
|
|
87
|
|
|
5
|
|
|
6
|
|
|||
Mortgage banking income
|
154
|
|
|
55
|
|
|
99
|
|
|
180
|
|
|||
Capital markets fees
|
64
|
|
|
56
|
|
|
8
|
|
|
14
|
|
|||
Insurance income
|
48
|
|
|
44
|
|
|
4
|
|
|
9
|
|
|||
Bank owned life insurance income
|
32
|
|
|
31
|
|
|
1
|
|
|
3
|
|
|||
Gain on sale of loans and leases
|
17
|
|
|
26
|
|
|
(9
|
)
|
|
(35
|
)
|
|||
Net (losses) gains on sales of securities
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|
50
|
|
|||
Other noninterest income
|
81
|
|
|
98
|
|
|
(17
|
)
|
|
(17
|
)
|
|||
Total noninterest income
|
752
|
|
|
693
|
|
|
59
|
|
|
9
|
|
|||
Personnel costs
|
814
|
|
|
822
|
|
|
(8
|
)
|
|
(1
|
)
|
|||
Outside data processing and other services
|
175
|
|
|
170
|
|
|
5
|
|
|
3
|
|
|||
Equipment
|
87
|
|
|
80
|
|
|
7
|
|
|
9
|
|
|||
Net occupancy
|
79
|
|
|
80
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Professional services
|
22
|
|
|
24
|
|
|
(2
|
)
|
|
(8
|
)
|
|||
Amortization of intangibles
|
21
|
|
|
25
|
|
|
(4
|
)
|
|
(16
|
)
|
|||
Marketing
|
14
|
|
|
18
|
|
|
(4
|
)
|
|
(22
|
)
|
|||
Deposit and other insurance expense
|
18
|
|
|
16
|
|
|
2
|
|
|
13
|
|
|||
Other noninterest expense
|
97
|
|
|
118
|
|
|
(21
|
)
|
|
(18
|
)
|
|||
Total noninterest expense
|
1,327
|
|
|
1,353
|
|
|
(26
|
)
|
|
(2
|
)
|
|||
Income before income taxes
|
239
|
|
|
848
|
|
|
(609
|
)
|
|
(72
|
)
|
|||
Provision for income taxes
|
41
|
|
|
126
|
|
|
(85
|
)
|
|
(67
|
)
|
|||
Net income
|
198
|
|
|
722
|
|
|
(524
|
)
|
|
(73
|
)
|
|||
Dividends declared on preferred shares
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|||
Net income applicable to common shares
|
$
|
161
|
|
|
$
|
685
|
|
|
$
|
(524
|
)
|
|
(76
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Average common shares—basic
|
1,017
|
|
|
1,046
|
|
|
(29
|
)
|
|
(3
|
)%
|
|||
Average common shares—diluted
|
1,032
|
|
|
1,063
|
|
|
(31
|
)
|
|
(3
|
)
|
|||
Net income per common share—basic
|
$
|
0.16
|
|
|
$
|
0.66
|
|
|
$
|
(0.50
|
)
|
|
(76
|
)
|
Net income per common share—diluted
|
0.16
|
|
|
0.64
|
|
|
(0.48
|
)
|
|
(75
|
)
|
|||
|
|
|
|
|
|
|
|
|||||||
Revenue—FTE
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
1,582
|
|
|
$
|
1,634
|
|
|
$
|
(52
|
)
|
|
(3
|
)%
|
FTE adjustment
|
11
|
|
|
14
|
|
|
(3
|
)
|
|
(21
|
)
|
|||
Net interest income (2)
|
1,593
|
|
|
1,648
|
|
|
(55
|
)
|
|
(3
|
)
|
|||
Noninterest income
|
752
|
|
|
693
|
|
|
59
|
|
|
9
|
|
|||
Total revenue (2)
|
$
|
2,345
|
|
|
$
|
2,341
|
|
|
$
|
4
|
|
|
—
|
%
|
(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
|
||||||||||||||||||||||||||
|
Average Balances
|
|
|
|
|
|||||||||||||||||||||
|
Three Months Ended
|
|
Change
|
|||||||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
2Q20 vs. 2Q19
|
|||||||||||||||
(dollar amounts in millions)
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing deposits in Federal Reserve Bank
|
$
|
3,413
|
|
|
$
|
680
|
|
|
$
|
672
|
|
|
$
|
514
|
|
|
$
|
518
|
|
|
$
|
2,895
|
|
|
559
|
%
|
Interest-bearing deposits in banks
|
169
|
|
|
150
|
|
|
176
|
|
|
149
|
|
|
135
|
|
|
34
|
|
|
25
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account securities
|
39
|
|
|
95
|
|
|
109
|
|
|
137
|
|
|
161
|
|
|
(122
|
)
|
|
(76
|
)
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable
|
11,179
|
|
|
11,671
|
|
|
11,221
|
|
|
11,096
|
|
|
10,501
|
|
|
678
|
|
|
6
|
|
||||||
Tax-exempt
|
2,728
|
|
|
2,753
|
|
|
2,791
|
|
|
2,820
|
|
|
2,970
|
|
|
(242
|
)
|
|
(8
|
)
|
||||||
Total available-for-sale securities
|
13,907
|
|
|
14,424
|
|
|
14,012
|
|
|
13,916
|
|
|
13,471
|
|
|
436
|
|
|
3
|
|
||||||
Held-to-maturity securities—taxable
|
9,798
|
|
|
9,428
|
|
|
8,592
|
|
|
8,566
|
|
|
8,771
|
|
|
1,027
|
|
|
12
|
|
||||||
Other securities
|
474
|
|
|
445
|
|
|
448
|
|
|
437
|
|
|
466
|
|
|
8
|
|
|
2
|
|
||||||
Total securities
|
24,218
|
|
|
24,392
|
|
|
23,161
|
|
|
23,056
|
|
|
22,869
|
|
|
1,349
|
|
|
6
|
|
||||||
Loans held for sale
|
1,039
|
|
|
865
|
|
|
950
|
|
|
877
|
|
|
734
|
|
|
305
|
|
|
42
|
|
||||||
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
35,284
|
|
|
30,849
|
|
|
30,373
|
|
|
30,632
|
|
|
30,644
|
|
|
4,640
|
|
|
15
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
1,201
|
|
|
1,165
|
|
|
1,181
|
|
|
1,165
|
|
|
1,168
|
|
|
33
|
|
|
3
|
|
||||||
Commercial
|
5,885
|
|
|
5,566
|
|
|
5,625
|
|
|
5,762
|
|
|
5,732
|
|
|
153
|
|
|
3
|
|
||||||
Commercial real estate
|
7,086
|
|
|
6,731
|
|
|
6,806
|
|
|
6,927
|
|
|
6,900
|
|
|
186
|
|
|
3
|
|
||||||
Total commercial
|
42,370
|
|
|
37,580
|
|
|
37,179
|
|
|
37,559
|
|
|
37,544
|
|
|
4,826
|
|
|
13
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automobile
|
12,681
|
|
|
12,924
|
|
|
12,607
|
|
|
12,181
|
|
|
12,219
|
|
|
462
|
|
|
4
|
|
||||||
Home equity
|
8,897
|
|
|
9,026
|
|
|
9,192
|
|
|
9,353
|
|
|
9,482
|
|
|
(585
|
)
|
|
(6
|
)
|
||||||
Residential mortgage
|
11,463
|
|
|
11,391
|
|
|
11,330
|
|
|
11,214
|
|
|
11,010
|
|
|
453
|
|
|
4
|
|
||||||
RV and marine
|
3,706
|
|
|
3,590
|
|
|
3,564
|
|
|
3,528
|
|
|
3,413
|
|
|
293
|
|
|
9
|
|
||||||
Other consumer
|
1,082
|
|
|
1,185
|
|
|
1,231
|
|
|
1,261
|
|
|
1,264
|
|
|
(182
|
)
|
|
(14
|
)
|
||||||
Total consumer
|
37,829
|
|
|
38,116
|
|
|
37,924
|
|
|
37,537
|
|
|
37,388
|
|
|
441
|
|
|
1
|
|
||||||
Total loans and leases
|
80,199
|
|
|
75,696
|
|
|
75,103
|
|
|
75,096
|
|
|
74,932
|
|
|
5,267
|
|
|
7
|
|
||||||
Allowance for loan and lease losses
|
(1,557
|
)
|
|
(1,239
|
)
|
|
(787
|
)
|
|
(799
|
)
|
|
(778
|
)
|
|
(779
|
)
|
|
(100
|
)
|
||||||
Net loans and leases
|
78,642
|
|
|
74,457
|
|
|
74,316
|
|
|
74,297
|
|
|
74,154
|
|
|
4,488
|
|
|
6
|
|
||||||
Total earning assets
|
109,038
|
|
|
101,783
|
|
|
100,062
|
|
|
99,692
|
|
|
99,188
|
|
|
9,850
|
|
|
10
|
|
||||||
Cash and due from banks
|
1,299
|
|
|
914
|
|
|
864
|
|
|
817
|
|
|
835
|
|
|
464
|
|
|
56
|
|
||||||
Intangible assets
|
2,206
|
|
|
2,217
|
|
|
2,228
|
|
|
2,240
|
|
|
2,252
|
|
|
(46
|
)
|
|
(2
|
)
|
||||||
All other assets
|
7,205
|
|
|
6,472
|
|
|
6,346
|
|
|
6,216
|
|
|
5,982
|
|
|
1,223
|
|
|
20
|
|
||||||
Total assets
|
$
|
118,191
|
|
|
$
|
110,147
|
|
|
$
|
108,713
|
|
|
$
|
108,166
|
|
|
$
|
107,479
|
|
|
$
|
10,712
|
|
|
10
|
%
|
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits—interest-bearing
|
$
|
23,878
|
|
|
$
|
21,202
|
|
|
20,140
|
|
|
$
|
19,796
|
|
|
$
|
19,693
|
|
|
$
|
4,185
|
|
|
21
|
%
|
|
Money market deposits
|
25,728
|
|
|
24,697
|
|
|
24,560
|
|
|
24,266
|
|
|
23,305
|
|
|
2,423
|
|
|
10
|
|
||||||
Savings and other domestic deposits
|
10,609
|
|
|
9,632
|
|
|
9,552
|
|
|
9,681
|
|
|
10,105
|
|
|
504
|
|
|
5
|
|
||||||
Core certificates of deposit (4)
|
3,003
|
|
|
3,943
|
|
|
4,795
|
|
|
5,666
|
|
|
5,860
|
|
|
(2,857
|
)
|
|
(49
|
)
|
||||||
Other domestic time deposits of $250,000 or more
|
230
|
|
|
321
|
|
|
313
|
|
|
315
|
|
|
310
|
|
|
(80
|
)
|
|
(26
|
)
|
||||||
Brokered deposits and negotiable CDs
|
4,114
|
|
|
2,884
|
|
|
2,589
|
|
|
2,599
|
|
|
2,685
|
|
|
1,429
|
|
|
53
|
|
||||||
Total interest-bearing deposits
|
67,562
|
|
|
62,679
|
|
|
61,949
|
|
|
62,323
|
|
|
61,958
|
|
|
5,604
|
|
|
9
|
|
||||||
Short-term borrowings
|
826
|
|
|
3,383
|
|
|
1,965
|
|
|
2,331
|
|
|
3,166
|
|
|
(2,340
|
)
|
|
(74
|
)
|
||||||
Long-term debt
|
9,802
|
|
|
10,076
|
|
|
9,886
|
|
|
9,536
|
|
|
8,914
|
|
|
888
|
|
|
10
|
|
||||||
Total interest-bearing liabilities
|
78,190
|
|
|
76,138
|
|
|
73,800
|
|
|
74,190
|
|
|
74,038
|
|
|
4,152
|
|
|
6
|
|
||||||
Demand deposits—noninterest-bearing
|
25,660
|
|
|
20,054
|
|
|
20,643
|
|
|
19,926
|
|
|
19,760
|
|
|
5,900
|
|
|
30
|
|
||||||
All other liabilities
|
2,396
|
|
|
2,319
|
|
|
2,386
|
|
|
2,336
|
|
|
2,206
|
|
|
190
|
|
|
9
|
|
||||||
Shareholders’ equity
|
11,945
|
|
|
11,636
|
|
|
11,884
|
|
|
11,714
|
|
|
11,475
|
|
|
470
|
|
|
4
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
118,191
|
|
|
$
|
110,147
|
|
|
$
|
108,713
|
|
|
$
|
108,166
|
|
|
$
|
107,479
|
|
|
$
|
10,712
|
|
|
10
|
%
|
Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Average Yield Rates (2)
|
|||||||||||||
|
Three Months Ended
|
|||||||||||||
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|||||
Fully-taxable equivalent basis (1)
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in Federal Reserve Bank
|
0.10
|
%
|
|
1.08
|
%
|
|
1.66
|
%
|
|
2.19
|
%
|
|
2.38
|
%
|
Interest-bearing deposits in banks
|
0.33
|
|
|
1.52
|
|
|
1.81
|
|
|
2.38
|
|
|
2.08
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||||
Trading account securities
|
1.99
|
|
|
3.21
|
|
|
2.45
|
|
|
2.36
|
|
|
1.92
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|||||
Taxable
|
2.30
|
|
|
2.62
|
|
|
2.63
|
|
|
2.67
|
|
|
2.73
|
|
Tax-exempt
|
2.75
|
|
|
3.30
|
|
|
3.43
|
|
|
3.63
|
|
|
3.66
|
|
Total available-for-sale securities
|
2.39
|
|
|
2.75
|
|
|
2.79
|
|
|
2.87
|
|
|
2.94
|
|
Held-to-maturity securities—taxable
|
2.39
|
|
|
2.50
|
|
|
2.50
|
|
|
2.51
|
|
|
2.54
|
|
Other securities
|
0.57
|
|
|
2.07
|
|
|
2.57
|
|
|
3.15
|
|
|
3.44
|
|
Total securities
|
2.35
|
|
|
2.64
|
|
|
2.68
|
|
|
2.74
|
|
|
2.79
|
|
Loans held for sale
|
3.22
|
|
|
3.39
|
|
|
3.40
|
|
|
3.69
|
|
|
4.00
|
|
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
3.62
|
|
|
4.12
|
|
|
4.31
|
|
|
4.57
|
|
|
4.82
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
3.66
|
|
|
4.75
|
|
|
5.07
|
|
|
5.50
|
|
|
5.59
|
|
Commercial
|
2.94
|
|
|
4.00
|
|
|
4.36
|
|
|
4.67
|
|
|
4.88
|
|
Commercial real estate
|
3.06
|
|
|
4.13
|
|
|
4.48
|
|
|
4.81
|
|
|
5.00
|
|
Total commercial
|
3.53
|
|
|
4.12
|
|
|
4.34
|
|
|
4.61
|
|
|
4.85
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|||||
Automobile
|
3.84
|
|
|
4.05
|
|
|
4.15
|
|
|
4.09
|
|
|
4.02
|
|
Home equity
|
3.73
|
|
|
4.75
|
|
|
5.03
|
|
|
5.38
|
|
|
5.56
|
|
Residential mortgage
|
3.51
|
|
|
3.70
|
|
|
3.73
|
|
|
3.80
|
|
|
3.84
|
|
RV and marine
|
4.71
|
|
|
4.91
|
|
|
4.96
|
|
|
4.96
|
|
|
4.94
|
|
Other consumer
|
11.10
|
|
|
12.39
|
|
|
12.71
|
|
|
13.34
|
|
|
13.29
|
|
Total consumer
|
4.00
|
|
|
4.45
|
|
|
4.59
|
|
|
4.72
|
|
|
4.76
|
|
Total loans and leases
|
3.75
|
|
|
4.29
|
|
|
4.47
|
|
|
4.67
|
|
|
4.80
|
|
Total earning assets
|
3.35
|
|
|
3.88
|
|
|
4.03
|
|
|
4.21
|
|
|
4.35
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits—interest-bearing
|
0.07
|
|
|
0.43
|
|
|
0.63
|
|
|
0.57
|
|
|
0.58
|
|
Money market deposits
|
0.40
|
|
|
0.81
|
|
|
0.99
|
|
|
1.20
|
|
|
1.15
|
|
Savings and other domestic deposits
|
0.10
|
|
|
0.17
|
|
|
0.20
|
|
|
0.22
|
|
|
0.23
|
|
Core certificates of deposit (4)
|
1.55
|
|
|
1.91
|
|
|
2.09
|
|
|
2.17
|
|
|
2.15
|
|
Other domestic time deposits of $250,000 or more
|
1.25
|
|
|
1.56
|
|
|
1.70
|
|
|
1.85
|
|
|
1.92
|
|
Brokered deposits and negotiable CDs
|
0.18
|
|
|
1.22
|
|
|
1.67
|
|
|
2.21
|
|
|
2.39
|
|
Total interest-bearing deposits
|
0.28
|
|
|
0.68
|
|
|
0.87
|
|
|
0.98
|
|
|
0.97
|
|
Short-term borrowings
|
0.47
|
|
|
1.46
|
|
|
1.66
|
|
|
2.28
|
|
|
2.41
|
|
Long-term debt
|
2.58
|
|
|
2.70
|
|
|
3.50
|
|
|
3.59
|
|
|
3.91
|
|
Total interest-bearing liabilities
|
0.57
|
|
|
0.98
|
|
|
1.24
|
|
|
1.36
|
|
|
1.39
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest rate spread
|
2.78
|
|
|
2.90
|
|
|
2.79
|
|
|
2.85
|
|
|
2.96
|
|
Impact of noninterest-bearing funds on margin
|
0.16
|
|
|
0.24
|
|
|
0.33
|
|
|
0.35
|
|
|
0.35
|
|
Net interest margin
|
2.94
|
%
|
|
3.14
|
%
|
|
3.12
|
%
|
|
3.20
|
%
|
|
3.31
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate.
|
(2)
|
Average yield rates include the impact of applicable derivatives. Loan and lease and deposit average yield rates also include impact of applicable non-deferrable and amortized fees.
|
(3)
|
For purposes of this analysis, NALs are reflected in the average balances of loans.
|
(4)
|
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 (2)
|
|||||||||||||||||
|
Six Months Ended June 30,
|
|
Change
|
|
Six Months Ended June 30,
|
|||||||||||||||
Fully-taxable equivalent basis (1)
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|
2020
|
|
2019
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits in Federal Reserve Bank
|
$
|
2,047
|
|
|
$
|
510
|
|
|
$
|
1,537
|
|
|
301
|
%
|
|
0.26
|
%
|
|
2.39
|
%
|
Interest-bearing deposits in banks
|
159
|
|
|
122
|
|
|
37
|
|
|
30
|
|
|
0.89
|
|
|
1.93
|
|
|||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Trading account securities
|
67
|
|
|
149
|
|
|
(82
|
)
|
|
(55
|
)
|
|
2.86
|
|
|
1.97
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Taxable
|
11,425
|
|
|
10,626
|
|
|
799
|
|
|
8
|
|
|
2.46
|
|
|
2.78
|
|
|||
Tax-exempt
|
2,740
|
|
|
3,008
|
|
|
(268
|
)
|
|
(9
|
)
|
|
3.03
|
|
|
3.68
|
|
|||
Total available-for-sale securities
|
14,165
|
|
|
13,634
|
|
|
531
|
|
|
4
|
|
|
2.57
|
|
|
2.98
|
|
|||
Held-to-maturity securities—taxable
|
9,613
|
|
|
8,713
|
|
|
900
|
|
|
10
|
|
|
2.44
|
|
|
2.53
|
|
|||
Other securities
|
460
|
|
|
501
|
|
|
(41
|
)
|
|
(8
|
)
|
|
1.30
|
|
|
4.01
|
|
|||
Total securities
|
24,305
|
|
|
22,997
|
|
|
1,308
|
|
|
6
|
|
|
2.50
|
|
|
2.82
|
|
|||
Loans held for sale
|
952
|
|
|
717
|
|
|
235
|
|
|
33
|
|
|
3.30
|
|
|
4.04
|
|
|||
Loans and leases: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
33,066
|
|
|
30,595
|
|
|
2,471
|
|
|
8
|
|
|
3.86
|
|
|
4.87
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction
|
1,183
|
|
|
1,171
|
|
|
12
|
|
|
1
|
|
|
4.19
|
|
|
5.58
|
|
|||
Commercial
|
5,726
|
|
|
5,710
|
|
|
16
|
|
|
—
|
|
|
3.45
|
|
|
4.94
|
|
|||
Commercial real estate
|
6,909
|
|
|
6,881
|
|
|
28
|
|
|
—
|
|
|
3.58
|
|
|
5.05
|
|
|||
Total commercial
|
39,975
|
|
|
37,476
|
|
|
2,499
|
|
|
7
|
|
|
3.81
|
|
|
4.90
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Automobile
|
12,803
|
|
|
12,290
|
|
|
513
|
|
|
4
|
|
|
3.95
|
|
|
3.98
|
|
|||
Home equity
|
8,961
|
|
|
9,561
|
|
|
(600
|
)
|
|
(6
|
)
|
|
4.24
|
|
|
5.57
|
|
|||
Residential mortgage
|
11,427
|
|
|
10,899
|
|
|
528
|
|
|
5
|
|
|
3.60
|
|
|
3.85
|
|
|||
RV and marine
|
3,648
|
|
|
3,355
|
|
|
293
|
|
|
9
|
|
|
4.81
|
|
|
4.95
|
|
|||
Other consumer
|
1,133
|
|
|
1,273
|
|
|
(140
|
)
|
|
(11
|
)
|
|
11.77
|
|
|
13.27
|
|
|||
Total consumer
|
37,972
|
|
|
37,378
|
|
|
594
|
|
|
2
|
|
|
4.23
|
|
|
4.75
|
|
|||
Total loans and leases
|
77,947
|
|
|
74,854
|
|
|
3,093
|
|
|
4
|
|
|
4.01
|
|
|
4.83
|
|
|||
Allowance for loan and lease losses
|
(1,398
|
)
|
|
(779
|
)
|
|
(619
|
)
|
|
(79
|
)
|
|
|
|
|
|||||
Net loans and leases
|
76,549
|
|
|
74,075
|
|
|
2,474
|
|
|
3
|
|
|
|
|
|
|||||
Total earning assets
|
105,410
|
|
|
99,200
|
|
|
6,210
|
|
|
6
|
|
|
3.60
|
%
|
|
4.38
|
%
|
|||
Cash and due from banks
|
1,106
|
|
|
844
|
|
|
262
|
|
|
31
|
|
|
|
|
|
|||||
Intangible assets
|
2,211
|
|
|
2,258
|
|
|
(47
|
)
|
|
(2
|
)
|
|
|
|
|
|||||
All other assets
|
6,840
|
|
|
5,972
|
|
|
868
|
|
|
15
|
|
|
|
|
|
|||||
Total assets
|
$
|
114,169
|
|
|
$
|
107,495
|
|
|
$
|
6,674
|
|
|
6
|
%
|
|
|
|
|
||
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Demand deposits—interest-bearing
|
$
|
22,540
|
|
|
$
|
19,746
|
|
|
$
|
2,794
|
|
|
14
|
%
|
|
0.24
|
%
|
|
0.57
|
%
|
Money market deposits
|
25,213
|
|
|
23,121
|
|
|
2,092
|
|
|
9
|
|
|
0.60
|
|
|
1.10
|
|
|||
Savings and other domestic deposits
|
10,120
|
|
|
10,222
|
|
|
(102
|
)
|
|
(1
|
)
|
|
0.14
|
|
|
0.23
|
|
|||
Core certificates of deposit (4)
|
3,028
|
|
|
5,955
|
|
|
(2,927
|
)
|
|
(49
|
)
|
|
1.71
|
|
|
2.13
|
|
|||
Other domestic time deposits of $250,000 or more
|
720
|
|
|
323
|
|
|
397
|
|
|
123
|
|
|
1.81
|
|
|
1.87
|
|
|||
Brokered deposits and negotiable CDs
|
3,499
|
|
|
3,042
|
|
|
457
|
|
|
15
|
|
|
0.61
|
|
|
2.39
|
|
|||
Total interest-bearing deposits
|
65,120
|
|
|
62,409
|
|
|
2,711
|
|
|
4
|
|
|
0.47
|
|
|
0.95
|
|
|||
Short-term borrowings
|
2,105
|
|
|
2,745
|
|
|
(640
|
)
|
|
(23
|
)
|
|
1.26
|
|
|
2.41
|
|
|||
Long-term debt
|
9,939
|
|
|
8,946
|
|
|
993
|
|
|
11
|
|
|
2.64
|
|
|
3.95
|
|
|||
Total interest-bearing liabilities
|
77,164
|
|
|
74,100
|
|
|
3,064
|
|
|
4
|
|
|
0.77
|
|
|
1.37
|
|
|||
Demand deposits—noninterest-bearing
|
$
|
22,857
|
|
|
$
|
19,833
|
|
|
3,024
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
All other liabilities
|
2,358
|
|
|
2,245
|
|
|
113
|
|
|
5
|
|
|
|
|
|
|||||
Shareholders’ equity
|
11,790
|
|
|
11,317
|
|
|
473
|
|
|
4
|
|
|
|
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
114,169
|
|
|
$
|
107,495
|
|
|
$
|
6,674
|
|
|
6
|
%
|
|
|
|
|
||
Net interest rate spread
|
|
|
|
|
|
|
|
|
2.83
|
|
|
3.01
|
|
|||||||
Impact of noninterest-bearing funds on margin
|
|
|
|
|
|
|
|
|
0.21
|
|
|
0.34
|
|
|||||||
Net interest margin
|
|
|
|
|
|
|
|
|
3.04
|
%
|
|
3.35
|
%
|
(1)
|
FTE yields are calculated assuming a 21% tax rate.
|
(2)
|
Average yield rates include the impact of applicable derivatives. Loan and lease and deposit average yield rates also include impact of applicable non-deferrable and amortized fees.
|
(4)
|
Includes consumer certificates of deposit of $250,000 or more.
|
Table 5 - Noninterest Income
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
2Q20 vs. 2Q19
|
|
2Q20 vs. 1Q20
|
||||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2020
|
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Service charges on deposit accounts
|
$
|
60
|
|
|
$
|
87
|
|
|
$
|
92
|
|
|
$
|
(32
|
)
|
|
(35
|
)%
|
|
$
|
(27
|
)
|
|
(31
|
)%
|
Card and payment processing income
|
59
|
|
|
58
|
|
|
63
|
|
|
(4
|
)
|
|
(6
|
)
|
|
1
|
|
|
2
|
|
|||||
Trust and investment management services
|
45
|
|
|
47
|
|
|
43
|
|
|
2
|
|
|
5
|
|
|
(2
|
)
|
|
(4
|
)
|
|||||
Mortgage banking income
|
96
|
|
|
58
|
|
|
34
|
|
|
62
|
|
|
182
|
|
|
38
|
|
|
66
|
|
|||||
Capital markets fees
|
31
|
|
|
33
|
|
|
34
|
|
|
(3
|
)
|
|
(9
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|||||
Insurance income
|
25
|
|
|
23
|
|
|
23
|
|
|
2
|
|
|
9
|
|
|
2
|
|
|
9
|
|
|||||
Bank owned life insurance income
|
17
|
|
|
16
|
|
|
15
|
|
|
2
|
|
|
13
|
|
|
1
|
|
|
6
|
|
|||||
Gain on sale of loans and leases
|
8
|
|
|
8
|
|
|
13
|
|
|
(5
|
)
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|||||
Net (losses) gains on sales of securities
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
50
|
|
|
(1
|
)
|
|
(100
|
)
|
|||||
Other noninterest income
|
51
|
|
|
31
|
|
|
59
|
|
|
(8
|
)
|
|
(14
|
)
|
|
20
|
|
|
65
|
|
|||||
Total noninterest income
|
$
|
391
|
|
|
$
|
361
|
|
|
$
|
374
|
|
|
$
|
17
|
|
|
5
|
%
|
|
$
|
30
|
|
|
8
|
%
|
Table 7 - Noninterest Expense
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|
2Q20 vs. 2Q19
|
|
2Q20 vs. 1Q20
|
||||||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
Change
|
|
Change
|
||||||||||||||||
(dollar amounts in millions)
|
2020
|
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
Personnel costs
|
$
|
418
|
|
|
$
|
395
|
|
|
$
|
428
|
|
|
$
|
(10
|
)
|
|
(2
|
)%
|
|
$
|
23
|
|
|
6
|
%
|
Outside data processing and other services
|
90
|
|
|
85
|
|
|
89
|
|
|
1
|
|
|
1
|
|
|
5
|
|
|
6
|
|
|||||
Equipment
|
46
|
|
|
41
|
|
|
40
|
|
|
6
|
|
|
15
|
|
|
5
|
|
|
12
|
|
|||||
Net occupancy
|
39
|
|
|
40
|
|
|
38
|
|
|
1
|
|
|
3
|
|
|
(1
|
)
|
|
(3
|
)
|
|||||
Professional services
|
11
|
|
|
11
|
|
|
12
|
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|||||
Amortization of intangibles
|
10
|
|
|
11
|
|
|
12
|
|
|
(2
|
)
|
|
(17
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|||||
Marketing
|
5
|
|
|
9
|
|
|
11
|
|
|
(6
|
)
|
|
(55
|
)
|
|
(4
|
)
|
|
(44
|
)
|
|||||
Deposit and other insurance expense
|
9
|
|
|
9
|
|
|
8
|
|
|
1
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|||||
Other noninterest expense
|
47
|
|
|
51
|
|
|
62
|
|
|
(15
|
)
|
|
(24
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|||||
Total noninterest expense
|
$
|
675
|
|
|
$
|
652
|
|
|
$
|
700
|
|
|
$
|
(25
|
)
|
|
(4
|
)%
|
|
$
|
23
|
|
|
4
|
%
|
Number of employees (average full-time equivalent)
|
15,703
|
|
|
15,386
|
|
|
15,780
|
|
|
(77
|
)
|
|
—
|
%
|
|
317
|
|
|
2
|
%
|
Table 11 - Loan and Lease Portfolio by Industry Type
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(dollar amounts in millions)
|
June 30,
2020 |
|
March 31,
2020 |
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
|||||||||||||||||||||||||
Commercial loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Real estate and rental and leasing
|
$
|
7,117
|
|
|
9
|
%
|
|
$
|
6,991
|
|
|
9
|
%
|
|
$
|
6,662
|
|
|
9
|
%
|
|
$
|
6,826
|
|
|
9
|
%
|
|
$
|
6,983
|
|
|
9
|
%
|
Manufacturing
|
6,147
|
|
|
8
|
|
|
5,846
|
|
|
7
|
|
|
5,248
|
|
|
7
|
|
|
5,141
|
|
|
7
|
|
|
5,329
|
|
|
7
|
|
|||||
Retail trade (1)
|
5,053
|
|
|
6
|
|
|
5,886
|
|
|
8
|
|
|
5,239
|
|
|
7
|
|
|
5,031
|
|
|
7
|
|
|
5,161
|
|
|
7
|
|
|||||
Health care and social assistance
|
3,534
|
|
|
4
|
|
|
2,815
|
|
|
4
|
|
|
2,498
|
|
|
3
|
|
|
2,604
|
|
|
3
|
|
|
2,497
|
|
|
3
|
|
|||||
Finance and insurance
|
3,345
|
|
|
4
|
|
|
3,670
|
|
|
5
|
|
|
3,307
|
|
|
4
|
|
|
3,308
|
|
|
4
|
|
|
3,473
|
|
|
5
|
|
|||||
Accommodation and food services
|
2,877
|
|
|
4
|
|
|
2,081
|
|
|
3
|
|
|
2,072
|
|
|
3
|
|
|
2,008
|
|
|
3
|
|
|
1,868
|
|
|
2
|
|
|||||
Wholesale trade
|
2,352
|
|
|
3
|
|
|
2,555
|
|
|
3
|
|
|
2,437
|
|
|
3
|
|
|
2,449
|
|
|
3
|
|
|
2,604
|
|
|
3
|
|
|||||
Professional, scientific, and technical services
|
2,177
|
|
|
3
|
|
|
1,615
|
|
|
2
|
|
|
1,360
|
|
|
2
|
|
|
1,347
|
|
|
2
|
|
|
1,336
|
|
|
2
|
|
|||||
Other services
|
1,510
|
|
|
2
|
|
|
1,358
|
|
|
2
|
|
|
1,310
|
|
|
2
|
|
|
1,324
|
|
|
2
|
|
|
1,360
|
|
|
2
|
|
|||||
Construction
|
1,492
|
|
|
2
|
|
|
962
|
|
|
1
|
|
|
900
|
|
|
1
|
|
|
973
|
|
|
1
|
|
|
892
|
|
|
1
|
|
|||||
Transportation and warehousing
|
1,338
|
|
|
2
|
|
|
1,211
|
|
|
2
|
|
|
1,207
|
|
|
2
|
|
|
1,242
|
|
|
2
|
|
|
1,240
|
|
|
2
|
|
|||||
Mining, quarrying, and oil and gas extraction
|
930
|
|
|
1
|
|
|
1,162
|
|
|
1
|
|
|
1,304
|
|
|
2
|
|
|
1,375
|
|
|
2
|
|
|
1,310
|
|
|
2
|
|
|||||
Admin./Support/Waste Mgmt. and Remediation Services
|
916
|
|
|
1
|
|
|
693
|
|
|
1
|
|
|
731
|
|
|
1
|
|
|
687
|
|
|
1
|
|
|
681
|
|
|
1
|
|
|||||
Information
|
759
|
|
|
1
|
|
|
728
|
|
|
1
|
|
|
649
|
|
|
1
|
|
|
619
|
|
|
1
|
|
|
527
|
|
|
1
|
|
|||||
Arts, entertainment, and recreation
|
732
|
|
|
1
|
|
|
694
|
|
|
1
|
|
|
690
|
|
|
1
|
|
|
654
|
|
|
1
|
|
|
617
|
|
|
1
|
|
|||||
Utilities
|
573
|
|
|
1
|
|
|
629
|
|
|
1
|
|
|
546
|
|
|
1
|
|
|
419
|
|
|
1
|
|
|
445
|
|
|
1
|
|
|||||
Educational services
|
559
|
|
|
—
|
|
|
465
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
467
|
|
|
1
|
|
|
481
|
|
|
1
|
|
|||||
Public administration
|
302
|
|
|
—
|
|
|
259
|
|
|
—
|
|
|
261
|
|
|
—
|
|
|
237
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|||||
Agriculture, forestry, fishing and hunting
|
140
|
|
|
—
|
|
|
141
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
172
|
|
|
—
|
|
|
174
|
|
|
—
|
|
|||||
Management of companies and enterprises
|
115
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|||||
Unclassified/Other
|
90
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
195
|
|
|
—
|
|
|
254
|
|
|
1
|
|
|
168
|
|
|
—
|
|
|||||
Total commercial loans and leases by industry category
|
42,058
|
|
|
52
|
|
|
39,932
|
|
|
51
|
|
|
37,338
|
|
|
49
|
|
|
37,249
|
|
|
51
|
|
|
37,496
|
|
|
50
|
|
|||||
Automobile
|
12,678
|
|
|
16
|
|
|
12,907
|
|
|
17
|
|
|
12,797
|
|
|
17
|
|
|
12,292
|
|
|
15
|
|
|
12,173
|
|
|
16
|
|
|||||
Residential mortgage
|
11,621
|
|
|
15
|
|
|
11,398
|
|
|
15
|
|
|
11,376
|
|
|
15
|
|
|
11,247
|
|
|
15
|
|
|
11,182
|
|
|
15
|
|
|||||
Home Equity
|
8,866
|
|
|
11
|
|
|
9,010
|
|
|
11
|
|
|
9,093
|
|
|
12
|
|
|
9,300
|
|
|
12
|
|
|
9,419
|
|
|
12
|
|
|||||
RV and marine
|
3,843
|
|
|
5
|
|
|
3,643
|
|
|
5
|
|
|
3,563
|
|
|
5
|
|
|
3,553
|
|
|
5
|
|
|
3,492
|
|
|
5
|
|
|||||
Other consumer loans
|
1,073
|
|
|
1
|
|
|
1,145
|
|
|
1
|
|
|
1,237
|
|
|
2
|
|
|
1,251
|
|
|
2
|
|
|
1,271
|
|
|
2
|
|
|||||
Total loans and leases
|
$
|
80,139
|
|
|
100
|
%
|
|
$
|
78,035
|
|
|
100
|
%
|
|
$
|
75,404
|
|
|
100
|
%
|
|
$
|
74,892
|
|
|
100
|
%
|
|
$
|
75,033
|
|
|
100
|
%
|
(1)
|
Amounts include $2.8 billion, $4.0 billion, $3.7 billion, $3.5 billion and $3.6 billion of auto dealer services loans at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.
|
(1)
|
Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.
|
Table 13 - Accruing and Nonaccruing Troubled Debt Restructured Loans
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollar amounts in millions)
|
June 30,
2020 |
|
March 31,
2020 |
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
||||||||||
TDRs—accruing:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
192
|
|
|
$
|
219
|
|
|
$
|
213
|
|
|
$
|
225
|
|
|
$
|
245
|
|
Commercial real estate
|
35
|
|
|
37
|
|
|
37
|
|
|
40
|
|
|
48
|
|
|||||
Automobile
|
52
|
|
|
42
|
|
|
40
|
|
|
39
|
|
|
37
|
|
|||||
Home equity
|
209
|
|
|
219
|
|
|
226
|
|
|
233
|
|
|
241
|
|
|||||
Residential mortgage
|
229
|
|
|
227
|
|
|
223
|
|
|
221
|
|
|
221
|
|
|||||
RV and marine
|
6
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|||||
Other consumer
|
10
|
|
|
11
|
|
|
11
|
|
|
10
|
|
|
10
|
|
|||||
Total TDRs—accruing
|
733
|
|
|
758
|
|
|
753
|
|
|
771
|
|
|
804
|
|
|||||
TDRs—nonaccruing:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
169
|
|
|
119
|
|
|
109
|
|
|
84
|
|
|
88
|
|
|||||
Commercial real estate
|
3
|
|
|
4
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|||||
Automobile
|
2
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
|||||
Home equity
|
26
|
|
|
25
|
|
|
26
|
|
|
26
|
|
|
26
|
|
|||||
Residential mortgage
|
43
|
|
|
42
|
|
|
42
|
|
|
44
|
|
|
43
|
|
|||||
RV and marine
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total TDRs—nonaccruing
|
244
|
|
|
194
|
|
|
186
|
|
|
164
|
|
|
167
|
|
|||||
Total TDRs
|
$
|
977
|
|
|
$
|
952
|
|
|
$
|
939
|
|
|
$
|
935
|
|
|
$
|
971
|
|
(1)
|
Percentages represent the percentage of each loan and lease category to total loans and leases.
|
Table 15 - Quarterly Net Charge-off Analysis (1)
|
|||||||||||
|
Three Months Ended
|
||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
||||||
(dollar amounts in millions)
|
2020
|
|
2020
|
|
2019
|
||||||
Net charge-offs (recoveries) by loan and lease type:
|
|||||||||||
Commercial:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
80
|
|
|
$
|
84
|
|
|
$
|
21
|
|
Commercial real estate:
|
|
|
|
|
|
||||||
Construction
|
1
|
|
|
—
|
|
|
(1
|
)
|
|||
Commercial
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
Commercial real estate
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Total commercial
|
80
|
|
|
83
|
|
|
18
|
|
|||
Consumer:
|
|
|
|
|
|
||||||
Automobile
|
10
|
|
|
7
|
|
|
5
|
|
|||
Home equity
|
—
|
|
|
5
|
|
|
2
|
|
|||
Residential mortgage
|
—
|
|
|
1
|
|
|
1
|
|
|||
RV and marine
|
4
|
|
|
2
|
|
|
2
|
|
|||
Other consumer
|
13
|
|
|
19
|
|
|
20
|
|
|||
Total consumer
|
27
|
|
|
34
|
|
|
30
|
|
|||
Total net charge-offs
|
$
|
107
|
|
|
$
|
117
|
|
|
$
|
48
|
|
|
|
|
|
|
|
||||||
Net charge-offs (recoveries) - annualized percentages:
|
|||||||||||
Commercial:
|
|
|
|
|
|
||||||
Commercial and industrial
|
0.90
|
%
|
|
1.09
|
%
|
|
0.27
|
%
|
|||
Commercial real estate:
|
|
|
|
|
|
||||||
Construction
|
(0.01
|
)
|
|
0.08
|
|
|
(0.08
|
)
|
|||
Commercial
|
(0.03
|
)
|
|
(0.06
|
)
|
|
(0.12
|
)
|
|||
Commercial real estate
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.12
|
)
|
|||
Total commercial
|
0.75
|
|
|
0.89
|
|
|
0.20
|
|
|||
Consumer:
|
|
|
|
|
|
||||||
Automobile
|
0.31
|
|
|
0.22
|
|
|
0.17
|
|
|||
Home equity
|
0.08
|
|
|
0.19
|
|
|
0.07
|
|
|||
Residential mortgage
|
0.02
|
|
|
0.02
|
|
|
0.05
|
|
|||
RV and marine
|
0.37
|
|
|
0.27
|
|
|
0.25
|
|
|||
Other consumer
|
4.80
|
|
|
6.45
|
|
|
6.02
|
|
|||
Total consumer
|
0.30
|
|
|
0.35
|
|
|
0.31
|
|
|||
Net charge-offs as a % of average loans
|
0.54
|
%
|
|
0.62
|
%
|
|
0.25
|
%
|
(1)
|
As a result of the COVID-19 pandemic, Huntington suspended repossession for most of 2020 second quarter and foreclosures remain suspended. Additionally, loans in a payment deferral program which are performing according to their modified terms are generally not considered delinquent. While there were some changes to the charge-off process, we continued to accurately reflect the loss content associated with loans considered delinquent.
|
|
|
|
|
||||
Table 16 - Year to Date Net Charge-off Analysis (1)
|
|||||||
|
Six Months Ended June 30,
|
||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
||||
Net charge-offs (recoveries) by loan and lease type:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
$
|
164
|
|
|
$
|
52
|
|
Commercial real estate:
|
|
|
|
||||
Construction
|
1
|
|
|
(1
|
)
|
||
Commercial
|
(2
|
)
|
|
—
|
|
||
Commercial real estate
|
(1
|
)
|
|
(1
|
)
|
||
Total commercial
|
163
|
|
|
51
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
17
|
|
|
15
|
|
||
Home equity
|
5
|
|
|
5
|
|
||
Residential mortgage
|
1
|
|
|
4
|
|
||
RV and marine
|
6
|
|
|
5
|
|
||
Other consumer
|
32
|
|
|
39
|
|
||
Total consumer
|
61
|
|
|
68
|
|
||
Total net charge-offs
|
$
|
224
|
|
|
$
|
119
|
|
|
|
|
|
||||
Net charge-offs (recoveries) - annualized percentages:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Commercial and industrial
|
0.99
|
%
|
|
0.34
|
%
|
||
Commercial real estate:
|
|
|
|
||||
Construction
|
0.04
|
|
|
(0.09
|
)
|
||
Commercial
|
(0.04
|
)
|
|
—
|
|
||
Commercial real estate
|
(0.03
|
)
|
|
(0.02
|
)
|
||
Total commercial
|
0.81
|
|
|
0.27
|
|
||
Consumer:
|
|
|
|
||||
Automobile
|
0.26
|
|
|
0.24
|
|
||
Home equity
|
0.14
|
|
|
0.10
|
|
||
Residential mortgage
|
0.02
|
|
|
0.08
|
|
||
RV and marine
|
0.32
|
|
|
0.32
|
|
||
Other consumer
|
5.66
|
|
|
6.08
|
|
||
Total consumer
|
0.33
|
|
|
0.36
|
|
||
Net charge-offs as a % of average loans
|
0.58
|
%
|
|
0.32
|
%
|
(1)
|
As a result of the COVID-19 pandemic, Huntington suspended repossession for most of 2020 second quarter and foreclosures remain suspended. Additionally, loans in a payment deferral program which are performing according to their modified terms are generally not considered delinquent. While there were some changes to the charge-off process, we continued to accurately reflect the loss content associated with loans considered delinquent.
|
Table 18 - Economic Value of Equity at Risk
|
||||||||
|
Economic Value of Equity at Risk (%)
|
|||||||
Basis point change scenario
|
-25
|
|
|
+100
|
|
|
+200
|
|
Board policy limits
|
NA
|
|
|
-6.0
|
%
|
|
-12.0
|
%
|
June 30, 2020
|
-1.5
|
%
|
|
6.2
|
%
|
|
7.6
|
%
|
December 31, 2019
|
—
|
%
|
|
-3.1
|
%
|
|
-9.1
|
%
|
Table 19 - Weighted-Average Maturity, Receive Rate and LIBOR Reset Rate on Qualifying Hedging Instruments
|
||||||||||||||||
|
June 30, 2020
|
|||||||||||||||
|
|
|
Average Maturity (years)
|
|
|
|
Weighted-Average
Fixed Rate
|
|
Weighted-Average
LIBOR Reset Rate
|
|||||||
(dollar amounts in millions)
|
Notional Value
|
|
|
Fair Value
|
|
|
||||||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive Fixed - 1 month LIBOR
|
$
|
6,525
|
|
|
2.53
|
|
|
$
|
288
|
|
|
1.81
|
%
|
|
0.18
|
%
|
Receive Fixed - 1 month LIBOR - forward starting (a)
|
750
|
|
|
3.79
|
|
|
24
|
|
|
1.24
|
|
|
—
|
|
||
Receive Variable - 1 month LIBOR (b)
|
2,950
|
|
|
1.90
|
|
|
(1
|
)
|
|
0.14
|
|
|
0.19
|
|
||
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive Fixed - 1 month LIBOR
|
5,704
|
|
|
2.47
|
|
|
336
|
|
|
2.29
|
|
|
0.18
|
|
||
Receive Fixed - 3 month LIBOR
|
1,790
|
|
|
0.51
|
|
|
20
|
|
|
1.81
|
|
|
0.33
|
|
||
Total swap portfolio at June 30, 2020
|
$
|
17,719
|
|
|
|
|
$
|
667
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||
|
June 30, 2020
|
|||||||||||||||
|
|
|
Average Maturity (years)
|
|
|
|
Weighted-Average
Floor Strike
|
|
Weighted-Average
LIBOR Reset Rate
|
|||||||
(dollar amounts in millions)
|
Notional Value
|
|
|
Fair Value
|
|
|
||||||||||
Interest rate floors
|
|
|
|
|
|
|
|
|
|
|||||||
Purchased Interest Rate Floors - 1 month LIBOR
|
$
|
7,200
|
|
|
0.87
|
|
|
$
|
118
|
|
|
1.81
|
%
|
|
0.18
|
%
|
Floor Spread - 1 month LIBOR
|
1,400
|
|
|
2.63
|
|
|
31
|
|
|
1.96 / 1.14
|
|
|
0.18
|
|
||
Floor Spread - 1 month LIBOR - forward starting (c)
|
2,500
|
|
|
4.22
|
|
|
73
|
|
|
1.65 / 0.70
|
|
|
—
|
|
||
Total floors portfolio at June 30, 2020
|
$
|
11,100
|
|
|
|
|
|
$
|
222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, 2019
|
|||||||||||||||
|
|
|
Average Maturity (years)
|
|
|
|
Weighted-Average
Fixed Rate
|
|
Weighted-Average
LIBOR Reset Rate
|
|||||||
(dollar amounts in millions)
|
Notional Value
|
|
|
Fair Value
|
|
|
||||||||||
Asset conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive Fixed - 1 month LIBOR
|
$
|
5,387
|
|
|
2.87
|
|
|
$
|
51
|
|
|
1.89
|
%
|
|
1.73%
|
|
Receive Fixed - 1 month LIBOR - forward starting (d)
|
3,250
|
|
|
4.02
|
|
|
(28
|
)
|
|
1.32
|
|
|
—
|
|
||
Liability conversion swaps
|
|
|
|
|
|
|
|
|
|
|||||||
Receive Fixed - 1 month LIBOR
|
5,250
|
|
|
2.97
|
|
|
146
|
|
|
2.37
|
|
|
1.72
|
|
||
Receive Fixed - 3 month LIBOR
|
2,290
|
|
|
0.84
|
|
|
5
|
|
|
1.80
|
|
|
1.94
|
|
||
Total swap portfolio at December 31, 2019
|
$
|
16,177
|
|
|
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
December 31, 2019
|
|||||||||||||||
|
|
|
Average Maturity (years)
|
|
|
|
Weighted-Average
Floor Strike
|
|
Weighted-Average
LIBOR Reset Rate
|
|||||||
(dollar amounts in millions)
|
Notional Value
|
|
|
Fair Value
|
|
|
||||||||||
Interest rate floors
|
|
|
|
|
|
|
|
|
|
|||||||
Purchased Interest Rate Floors - 1 month LIBOR
|
$
|
9,200
|
|
|
1.45
|
|
|
$
|
36
|
|
|
1.84
|
%
|
|
1.54
|
%
|
Floor Spread - 1 month LIBOR
|
400
|
|
|
2.74
|
|
|
8
|
|
|
2.50 / 1.50
|
|
|
1.79
|
|
||
Floor Spread - 1 month LIBOR - forward starting (e)
|
150
|
|
|
4.34
|
|
|
2
|
|
|
1.75 / 1.00
|
|
|
—
|
|
||
Total floors portfolio at December 31, 2019
|
$
|
9,750
|
|
|
|
|
|
$
|
46
|
|
|
|
|
|
|
(a)
|
Forward starting swaps will become effective April 2021.
|
(b)
|
Amounts include interest rate swaps as fair value hedges of fixed-rate investment securities using the last-of-layer method.
|
(c)
|
Forward starting floors will become effective from March 2021 to June 2021.
|
(d)
|
Forward starting swaps will become effective from January 2020 to June 2021.
|
(e)
|
Forward starting floors will become effective from March 2021 to June 2021.
|
Table 20 - Deposit Composition
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|||||||||||||||||||||||||
(dollar amounts in millions)
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|||||||||||||||||||||||||
By Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits—noninterest-bearing
|
$
|
27,574
|
|
|
29
|
%
|
|
$
|
21,039
|
|
|
24
|
%
|
|
$
|
20,247
|
|
|
25
|
%
|
|
$
|
20,553
|
|
|
25
|
%
|
|
$
|
19,383
|
|
|
24
|
%
|
Demand deposits—interest-bearing
|
22,961
|
|
|
25
|
|
|
23,115
|
|
|
27
|
|
|
20,583
|
|
|
25
|
|
|
19,976
|
|
|
24
|
|
|
19,085
|
|
|
24
|
|
|||||
Money market deposits
|
25,312
|
|
|
27
|
|
|
25,068
|
|
|
29
|
|
|
24,726
|
|
|
30
|
|
|
23,977
|
|
|
29
|
|
|
23,952
|
|
|
30
|
|
|||||
Savings and other domestic deposits
|
11,034
|
|
|
12
|
|
|
9,845
|
|
|
11
|
|
|
9,549
|
|
|
12
|
|
|
9,566
|
|
|
12
|
|
|
9,803
|
|
|
12
|
|
|||||
Core certificates of deposit (1)
|
2,478
|
|
|
3
|
|
|
3,599
|
|
|
4
|
|
|
4,356
|
|
|
5
|
|
|
5,443
|
|
|
7
|
|
|
5,703
|
|
|
7
|
|
|||||
Total core deposits:
|
89,359
|
|
|
96
|
|
|
82,666
|
|
|
95
|
|
|
79,461
|
|
|
97
|
|
|
79,515
|
|
|
97
|
|
|
77,926
|
|
|
97
|
|
|||||
Other domestic deposits of $250,000 or more
|
209
|
|
|
—
|
|
|
276
|
|
|
—
|
|
|
313
|
|
|
—
|
|
|
326
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|||||
Brokered deposits and negotiable CDs
|
4,123
|
|
|
4
|
|
|
3,888
|
|
|
5
|
|
|
2,573
|
|
|
3
|
|
|
2,554
|
|
|
3
|
|
|
2,640
|
|
|
3
|
|
|||||
Total deposits
|
$
|
93,691
|
|
|
100
|
%
|
|
$
|
86,830
|
|
|
100
|
%
|
|
$
|
82,347
|
|
|
100
|
%
|
|
$
|
82,395
|
|
|
100
|
%
|
|
$
|
80,882
|
|
|
100
|
%
|
Total core deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
41,630
|
|
|
47
|
%
|
|
$
|
38,064
|
|
|
46
|
%
|
|
$
|
34,957
|
|
|
44
|
%
|
|
$
|
35,247
|
|
|
44
|
%
|
|
$
|
33,371
|
|
|
43
|
%
|
Consumer
|
47,729
|
|
|
53
|
|
|
44,602
|
|
|
54
|
|
|
44,504
|
|
|
56
|
|
|
44,268
|
|
|
56
|
|
|
44,555
|
|
|
57
|
|
|||||
Total core deposits
|
$
|
89,359
|
|
|
100
|
%
|
|
$
|
82,666
|
|
|
100
|
%
|
|
$
|
79,461
|
|
|
100
|
%
|
|
$
|
79,515
|
|
|
100
|
%
|
|
$
|
77,926
|
|
|
100
|
%
|
(1)
|
Includes consumer certificates of deposit of $250,000 or more.
|
Table 21 - Regulatory Capital Data (1)
|
|
|
|
|
|
|
|
||||||
|
|
|
Basel III
|
||||||||||
(dollar amounts in millions)
|
|
|
June 30,
2020 |
|
March 31,
2020 |
|
June 30,
2019 |
||||||
Total risk-weighted assets
|
Consolidated
|
|
$
|
87,323
|
|
|
$
|
90,193
|
|
|
$
|
86,332
|
|
|
Bank
|
|
87,061
|
|
|
90,016
|
|
|
86,410
|
|
|||
CET I risk-based capital
|
Consolidated
|
|
8,596
|
|
|
8,538
|
|
|
8,530
|
|
|||
|
Bank
|
|
9,214
|
|
|
9,887
|
|
|
9,583
|
|
|||
Tier 1 risk-based capital
|
Consolidated
|
|
10,297
|
|
|
9,746
|
|
|
9,737
|
|
|||
|
Bank
|
|
10,378
|
|
|
10,760
|
|
|
10,460
|
|
|||
Tier 2 risk-based capital
|
Consolidated
|
|
1,790
|
|
|
1,746
|
|
|
1,602
|
|
|||
|
Bank
|
|
1,446
|
|
|
1,481
|
|
|
1,296
|
|
|||
Total risk-based capital
|
Consolidated
|
|
12,087
|
|
|
11,492
|
|
|
11,339
|
|
|||
|
Bank
|
|
11,824
|
|
|
12,241
|
|
|
11,756
|
|
|||
CET I risk-based capital ratio
|
Consolidated
|
|
9.84
|
%
|
|
9.47
|
%
|
|
9.88
|
%
|
|||
|
Bank
|
|
10.58
|
|
|
10.98
|
|
|
11.09
|
|
|||
Tier 1 risk-based capital ratio
|
Consolidated
|
|
11.79
|
|
|
10.81
|
|
|
11.28
|
|
|||
|
Bank
|
|
11.92
|
|
|
11.95
|
|
|
12.11
|
|
|||
Total risk-based capital ratio
|
Consolidated
|
|
13.84
|
|
|
12.74
|
|
|
13.13
|
|
|||
|
Bank
|
|
13.58
|
|
|
13.60
|
|
|
13.60
|
|
|||
Tier 1 leverage ratio
|
Consolidated
|
|
8.86
|
|
|
9.01
|
|
|
9.24
|
|
|||
|
Bank
|
|
8.95
|
|
|
9.98
|
|
|
9.93
|
|
(1)
|
The June 30, 2020 and March 31, 2020 capital ratios reflect Huntington's election of a five-year transition to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.
|
Consumer and Business Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 23 - Key Performance Indicators for Consumer and Business Banking
|
||||||||||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
733
|
|
|
$
|
936
|
|
|
$
|
(203
|
)
|
|
(22
|
)%
|
Provision for credit losses
|
114
|
|
|
48
|
|
|
66
|
|
|
138
|
|
|||
Noninterest income
|
430
|
|
|
372
|
|
|
58
|
|
|
16
|
|
|||
Noninterest expense
|
840
|
|
|
827
|
|
|
13
|
|
|
2
|
|
|||
Provision for income taxes
|
44
|
|
|
91
|
|
|
(47
|
)
|
|
(52
|
)
|
|||
Net income
|
$
|
165
|
|
|
$
|
342
|
|
|
$
|
(177
|
)
|
|
(52
|
)%
|
Number of employees (average full-time equivalent)
|
7,871
|
|
|
8,124
|
|
|
(253
|
)
|
|
(3
|
)%
|
|||
Total average assets
|
$
|
26,815
|
|
|
$
|
25,428
|
|
|
$
|
1,387
|
|
|
5
|
|
Total average loans/leases
|
23,486
|
|
|
22,195
|
|
|
1,291
|
|
|
6
|
|
|||
Total average deposits
|
54,077
|
|
|
51,454
|
|
|
2,623
|
|
|
5
|
|
|||
Net interest margin
|
2.69
|
%
|
|
3.61
|
%
|
|
(0.92
|
)%
|
|
(25
|
)
|
|||
NCOs
|
$
|
56
|
|
|
$
|
61
|
|
|
$
|
(5
|
)
|
|
(8
|
)
|
NCOs as a % of average loans and leases
|
0.47
|
%
|
|
0.55
|
%
|
|
(0.08
|
)%
|
|
(15
|
)
|
Commercial Banking
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
Table 24 - Key Performance Indicators for Commercial Banking
|
||||||||||||||
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
Net interest income
|
$
|
472
|
|
|
$
|
536
|
|
|
$
|
(64
|
)
|
|
(12
|
)%
|
Provision for credit losses
|
523
|
|
|
67
|
|
|
456
|
|
|
681
|
|
|||
Noninterest income
|
170
|
|
|
165
|
|
|
5
|
|
|
3
|
|
|||
Noninterest expense
|
265
|
|
|
288
|
|
|
(23
|
)
|
|
(8
|
)
|
|||
Provision for income taxes
|
(31
|
)
|
|
73
|
|
|
(104
|
)
|
|
(142
|
)
|
|||
Net income
|
$
|
(115
|
)
|
|
$
|
273
|
|
|
$
|
(388
|
)
|
|
(142
|
)%
|
Number of employees (average full-time equivalent)
|
1,281
|
|
|
1,327
|
|
|
(46
|
)
|
|
(3
|
)%
|
|||
Total average assets
|
$
|
35,535
|
|
|
$
|
33,479
|
|
|
$
|
2,056
|
|
|
6
|
|
Total average loans/leases
|
27,706
|
|
|
27,257
|
|
|
449
|
|
|
2
|
|
|||
Total average deposits
|
22,970
|
|
|
21,043
|
|
|
1,927
|
|
|
9
|
|
|||
Net interest margin
|
3.14
|
%
|
|
3.62
|
%
|
|
(0.48
|
)%
|
|
(13
|
)
|
|||
NCOs
|
$
|
146
|
|
|
$
|
38
|
|
|
$
|
108
|
|
|
284
|
|
NCOs as a % of average loans and leases
|
1.06
|
%
|
|
0.28
|
%
|
|
0.78
|
%
|
|
279
|
|
•
|
Tangible common equity to tangible assets,
|
•
|
Tangible equity to tangible assets, and
|
•
|
Tangible common equity to risk-weighted assets using Basel III definitions.
|
|
June 30,
|
|
December 31,
|
||||
(dollar amounts in millions)
|
2020
|
|
2019
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
1,285
|
|
|
$
|
1,045
|
|
Interest-bearing deposits at Federal Reserve Bank
|
5,008
|
|
|
125
|
|
||
Interest-bearing deposits in banks
|
82
|
|
|
102
|
|
||
Trading account securities
|
45
|
|
|
99
|
|
||
Available-for-sale securities
|
13,297
|
|
|
14,149
|
|
||
Held-to-maturity securities
|
9,416
|
|
|
9,070
|
|
||
Other securities
|
438
|
|
|
441
|
|
||
Loans held for sale (includes $954 and $781 respectively, measured at fair value)(1)
|
1,165
|
|
|
877
|
|
||
Loans and leases (includes $92 and $81 respectively, measured at fair value)(1)
|
80,139
|
|
|
75,404
|
|
||
Allowance for loan and lease losses
|
(1,702
|
)
|
|
(783
|
)
|
||
Net loans and leases
|
78,437
|
|
|
74,621
|
|
||
Bank owned life insurance
|
2,560
|
|
|
2,542
|
|
||
Premises and equipment
|
751
|
|
|
763
|
|
||
Goodwill
|
1,990
|
|
|
1,990
|
|
||
Servicing rights and other intangible assets
|
411
|
|
|
475
|
|
||
Other assets
|
3,540
|
|
|
2,703
|
|
||
Total assets
|
$
|
118,425
|
|
|
$
|
109,002
|
|
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits
|
$
|
93,691
|
|
|
$
|
82,347
|
|
Short-term borrowings
|
146
|
|
|
2,606
|
|
||
Long-term debt
|
9,753
|
|
|
9,849
|
|
||
Other liabilities
|
2,521
|
|
|
2,405
|
|
||
Total liabilities
|
106,111
|
|
|
97,207
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred stock
|
1,697
|
|
|
1,203
|
|
||
Common stock
|
10
|
|
|
10
|
|
||
Capital surplus
|
8,743
|
|
|
8,806
|
|
||
Less treasury shares, at cost
|
(59
|
)
|
|
(56
|
)
|
||
Accumulated other comprehensive gain (loss)
|
290
|
|
|
(256
|
)
|
||
Retained earnings
|
1,633
|
|
|
2,088
|
|
||
Total shareholders’ equity
|
12,314
|
|
|
11,795
|
|
||
Total liabilities and shareholders’ equity
|
$
|
118,425
|
|
|
$
|
109,002
|
|
Common shares authorized (par value of $0.01)
|
1,500,000,000
|
|
|
1,500,000,000
|
|
||
Common shares outstanding
|
1,017,309,583
|
|
|
1,020,003,482
|
|
||
Treasury shares outstanding
|
4,999,371
|
|
|
4,537,605
|
|
||
Preferred stock, authorized shares
|
6,617,808
|
|
|
6,617,808
|
|
||
Preferred shares outstanding
|
745,500
|
|
|
740,500
|
|
(1)
|
Amounts represent loans for which Huntington has elected the fair value option. See Note 12 “Fair Values of Assets and Liabilities”.
|
Huntington Bancshares Incorporated
|
|
|
|
|
|
|
|
||||||||
Condensed Consolidated Statements of Income
|
|
|
|
|
|
|
|
||||||||
(Unaudited)
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions, except per share data, share count in thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest and fee income:
|
|
|
|
|
|
|
|
||||||||
Loans and leases
|
$
|
754
|
|
|
$
|
903
|
|
|
$
|
1,563
|
|
|
$
|
1,804
|
|
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
Taxable
|
64
|
|
|
72
|
|
|
141
|
|
|
148
|
|
||||
Tax-exempt
|
15
|
|
|
21
|
|
|
33
|
|
|
43
|
|
||||
Held-to-maturity securities—taxable
|
59
|
|
|
56
|
|
|
117
|
|
|
110
|
|
||||
Other securities—taxable
|
1
|
|
|
4
|
|
|
3
|
|
|
10
|
|
||||
Other
|
9
|
|
|
12
|
|
|
20
|
|
|
23
|
|
||||
Total interest income
|
902
|
|
|
1,068
|
|
|
1,877
|
|
|
2,138
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
46
|
|
|
150
|
|
|
151
|
|
|
295
|
|
||||
Short-term borrowings
|
1
|
|
|
19
|
|
|
13
|
|
|
33
|
|
||||
Long-term debt
|
63
|
|
|
87
|
|
|
131
|
|
|
176
|
|
||||
Total interest expense
|
110
|
|
|
256
|
|
|
295
|
|
|
504
|
|
||||
Net interest income
|
792
|
|
|
812
|
|
|
1,582
|
|
|
1,634
|
|
||||
Provision for credit losses
|
327
|
|
|
59
|
|
|
768
|
|
|
126
|
|
||||
Net interest income after provision for credit losses
|
465
|
|
|
753
|
|
|
814
|
|
|
1,508
|
|
||||
Service charges on deposit accounts
|
60
|
|
|
92
|
|
|
148
|
|
|
179
|
|
||||
Card and payment processing income
|
59
|
|
|
63
|
|
|
117
|
|
|
119
|
|
||||
Trust and investment management services
|
45
|
|
|
43
|
|
|
92
|
|
|
87
|
|
||||
Mortgage banking income
|
96
|
|
|
34
|
|
|
154
|
|
|
55
|
|
||||
Capital markets fees
|
31
|
|
|
34
|
|
|
64
|
|
|
56
|
|
||||
Insurance income
|
25
|
|
|
23
|
|
|
48
|
|
|
44
|
|
||||
Bank owned life insurance income
|
17
|
|
|
15
|
|
|
32
|
|
|
31
|
|
||||
Gain on sale of loans and leases
|
8
|
|
|
13
|
|
|
17
|
|
|
26
|
|
||||
Net (losses) gains on sales of securities
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Other noninterest income
|
51
|
|
|
59
|
|
|
81
|
|
|
98
|
|
||||
Total noninterest income
|
391
|
|
|
374
|
|
|
752
|
|
|
693
|
|
||||
Personnel costs
|
418
|
|
|
428
|
|
|
814
|
|
|
822
|
|
||||
Outside data processing and other services
|
90
|
|
|
89
|
|
|
175
|
|
|
170
|
|
||||
Equipment
|
46
|
|
|
40
|
|
|
87
|
|
|
80
|
|
||||
Net occupancy
|
39
|
|
|
38
|
|
|
79
|
|
|
80
|
|
||||
Professional services
|
11
|
|
|
12
|
|
|
22
|
|
|
24
|
|
||||
Amortization of intangibles
|
10
|
|
|
12
|
|
|
21
|
|
|
25
|
|
||||
Marketing
|
5
|
|
|
11
|
|
|
14
|
|
|
18
|
|
||||
Deposit and other insurance expense
|
9
|
|
|
8
|
|
|
18
|
|
|
16
|
|
||||
Other noninterest expense
|
47
|
|
|
62
|
|
|
97
|
|
|
118
|
|
||||
Total noninterest expense
|
675
|
|
|
700
|
|
|
1,327
|
|
|
1,353
|
|
||||
Income before income taxes
|
181
|
|
|
427
|
|
|
239
|
|
|
848
|
|
||||
Provision for income taxes
|
31
|
|
|
63
|
|
|
41
|
|
|
126
|
|
||||
Net income
|
150
|
|
|
364
|
|
|
198
|
|
|
722
|
|
||||
Dividends on preferred shares
|
19
|
|
|
18
|
|
|
37
|
|
|
37
|
|
||||
Net income applicable to common shares
|
$
|
131
|
|
|
$
|
346
|
|
|
$
|
161
|
|
|
$
|
685
|
|
Average common shares—basic
|
1,016,259
|
|
|
1,044,802
|
|
|
1,016,951
|
|
|
1,045,899
|
|
||||
Average common shares—diluted
|
1,028,683
|
|
|
1,060,280
|
|
|
1,031,629
|
|
|
1,062,959
|
|
||||
Per common share:
|
|
|
|
|
|
|
|
||||||||
Net income—basic
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
$
|
0.16
|
|
|
$
|
0.66
|
|
Net income—diluted
|
0.13
|
|
|
0.33
|
|
|
0.16
|
|
|
0.64
|
|
||||
|
|
|
|
|
|
|
|
||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income
|
$
|
150
|
|
|
$
|
364
|
|
|
$
|
198
|
|
|
$
|
722
|
|
Unrealized net gains (losses) on available-for-sale securities arising during the period, net of reclassification for net realized gains and losses
|
62
|
|
|
134
|
|
|
235
|
|
|
280
|
|
||||
Change in fair value related to cash flow hedges
|
11
|
|
|
47
|
|
|
319
|
|
|
54
|
|
||||
Change in accumulated unrealized gains (losses) for pension and other post-retirement obligations
|
(10
|
)
|
|
1
|
|
|
(8
|
)
|
|
2
|
|
||||
Other comprehensive income, net of tax
|
63
|
|
|
182
|
|
|
546
|
|
|
336
|
|
||||
Comprehensive income
|
$
|
213
|
|
|
$
|
546
|
|
|
$
|
744
|
|
|
$
|
1,058
|
|
(dollar amounts in millions, share amounts in thousands)
|
Preferred Stock
|
|
Common Stock
|
|
Capital Surplus
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Gain (Loss)
|
|
Retained Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
||||||||||||||||||||
Three Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,018,752
|
|
|
$
|
10
|
|
|
$
|
8,728
|
|
|
(4,534
|
)
|
|
$
|
(56
|
)
|
|
$
|
227
|
|
|
$
|
1,657
|
|
|
$
|
11,769
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150
|
|
|
150
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
|
|
63
|
|
||||||||||||||
Net proceeds from issuance of Preferred Series F Stock
|
494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
494
|
|
||||||||||||||
Repurchases of common stock
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.15 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(155
|
)
|
|
(155
|
)
|
||||||||||||||
Preferred Series B ($9.80 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
||||||||||||||
Preferred Series C ($14.69 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||||||||
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
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
25
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
3,557
|
|
|
—
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
(10
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
(465
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
|||||||||||
Balance, end of period
|
$
|
1,697
|
|
|
1,022,309
|
|
|
$
|
10
|
|
|
$
|
8,743
|
|
|
(4,999
|
)
|
|
$
|
(59
|
)
|
|
$
|
290
|
|
|
$
|
1,633
|
|
|
$
|
12,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,050,253
|
|
|
$
|
11
|
|
|
$
|
9,167
|
|
|
(3,813
|
)
|
|
$
|
(45
|
)
|
|
$
|
(455
|
)
|
|
$
|
1,551
|
|
|
$
|
11,432
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
364
|
|
|
364
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
182
|
|
|
|
|
182
|
|
||||||||||||||
Repurchase of common stock
|
|
|
(11,344
|
)
|
|
(1
|
)
|
|
(151
|
)
|
|
|
|
|
|
|
|
|
|
(152
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.14 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(148
|
)
|
|
(148
|
)
|
||||||||||||||
Preferred Series B ($13.24 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
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
31
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
3,231
|
|
|
—
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
—
|
|
|
(17
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
(486
|
)
|
|
(7
|
)
|
|
|
|
1
|
|
|
(6
|
)
|
||||||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,042,140
|
|
|
$
|
10
|
|
|
$
|
9,030
|
|
|
(4,299
|
)
|
|
$
|
(52
|
)
|
|
$
|
(273
|
)
|
|
$
|
1,750
|
|
|
$
|
11,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(dollar amounts in millions, share amounts in thousands)
|
|
|
Common Stock
|
|
Capital Surplus
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Gain (Loss)
|
|
Retained Earnings
|
|
|
||||||||||||||||||||
Amount
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
||||||||||||||||||||
Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,024,541
|
|
|
$
|
10
|
|
|
$
|
8,806
|
|
|
(4,537
|
)
|
|
$
|
(56
|
)
|
|
$
|
(256
|
)
|
|
$
|
2,088
|
|
|
$
|
11,795
|
|
Cumulative-effect of change in accounting principle for financial instruments - credit losses (ASU 2016-13), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(306
|
)
|
|
(306
|
)
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
198
|
|
|
198
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
546
|
|
|
|
|
546
|
|
||||||||||||||
Net proceeds from issuance of Preferred Series F Stock
|
494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
494
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(7,088
|
)
|
|
—
|
|
|
(88
|
)
|
|
|
|
|
|
|
|
|
|
(88
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.30 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(310
|
)
|
|
(310
|
)
|
||||||||||||||
Preferred Series B ($21.13 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($29.38 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series D ($31.25 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
(19
|
)
|
||||||||||||||
Preferred Series E ($2,850.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14
|
)
|
|
(14
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
40
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
4,856
|
|
|
—
|
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
|
(15
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
—
|
|
|
(462
|
)
|
|
(3
|
)
|
|
|
|
|
—
|
|
|
(3
|
)
|
||||||||||
Balance, end of period
|
$
|
1,697
|
|
|
1,022,309
|
|
|
$
|
10
|
|
|
$
|
8,743
|
|
|
(4,999
|
)
|
|
$
|
(59
|
)
|
|
$
|
290
|
|
|
$
|
1,633
|
|
|
$
|
12,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
1,203
|
|
|
1,050,584
|
|
|
$
|
11
|
|
|
$
|
9,181
|
|
|
(3,817
|
)
|
|
$
|
(45
|
)
|
|
$
|
(609
|
)
|
|
$
|
1,361
|
|
|
$
|
11,102
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
722
|
|
|
722
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
336
|
|
|
|
|
336
|
|
||||||||||||||
Repurchases of common stock
|
|
|
(13,177
|
)
|
|
(1
|
)
|
|
(176
|
)
|
|
|
|
|
|
|
|
|
|
(177
|
)
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common ($0.28 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(297
|
)
|
|
(297
|
)
|
||||||||||||||
Preferred Series B ($26.96 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||||
Preferred Series C ($29.38 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||||||
Preferred Series D ($31.25 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
(19
|
)
|
||||||||||||||
Preferred Series E ($2,850.00 per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14
|
)
|
|
(14
|
)
|
||||||||||||||
Recognition of the fair value of share-based compensation
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
48
|
|
||||||||||||||
Other share-based compensation activity
|
|
|
4,733
|
|
|
—
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
—
|
|
|
(23
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
—
|
|
|
(482
|
)
|
|
(7
|
)
|
|
|
|
1
|
|
|
(6
|
)
|
|||||||||
Balance, end of period
|
$
|
1,203
|
|
|
1,042,140
|
|
|
$
|
10
|
|
|
$
|
9,030
|
|
|
(4,299
|
)
|
|
$
|
(52
|
)
|
|
$
|
(273
|
)
|
|
$
|
1,750
|
|
|
$
|
11,668
|
|
|
Six Months Ended June 30,
|
||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
||||
Operating activities
|
|
||||||
Net income
|
$
|
198
|
|
|
$
|
722
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
||||||
Provision for credit losses
|
768
|
|
|
126
|
|
||
Depreciation and amortization
|
178
|
|
|
204
|
|
||
Share-based compensation expense
|
40
|
|
|
48
|
|
||
Deferred income tax (benefit) expense
|
(66
|
)
|
|
29
|
|
||
Net change in:
|
|
|
|
||||
Trading account securities
|
54
|
|
|
(71
|
)
|
||
Loans held for sale
|
(181
|
)
|
|
(97
|
)
|
||
Other assets
|
(1,032
|
)
|
|
(464
|
)
|
||
Other liabilities
|
755
|
|
|
362
|
|
||
Other, net
|
(4
|
)
|
|
(7
|
)
|
||
Net cash provided by (used in) operating activities
|
710
|
|
|
852
|
|
||
Investing activities
|
|
||||||
Change in interest bearing deposits in banks
|
(27
|
)
|
|
(137
|
)
|
||
Proceeds from:
|
|
|
|
||||
Maturities and calls of available-for-sale securities
|
1,947
|
|
|
768
|
|
||
Maturities and calls of held-to-maturity securities
|
1,173
|
|
|
380
|
|
||
Maturities and calls of other securities
|
65
|
|
|
127
|
|
||
Sales of available-for-sale securities
|
390
|
|
|
1,546
|
|
||
Purchases of available-for-sale securities
|
(2,744
|
)
|
|
(1,890
|
)
|
||
Purchases of held-to-maturity securities
|
—
|
|
|
(516
|
)
|
||
Purchases of other securities
|
(62
|
)
|
|
(2
|
)
|
||
Net proceeds from sales of portfolio loans
|
416
|
|
|
430
|
|
||
Principal payments received under direct finance and sales-type leases
|
346
|
|
|
340
|
|
||
Net loan and lease activity, excluding sales and purchases
|
(5,443
|
)
|
|
(807
|
)
|
||
Purchases of premises and equipment
|
(49
|
)
|
|
(51
|
)
|
||
Purchases of loans and leases
|
(402
|
)
|
|
(241
|
)
|
||
Net cash paid for branch disposition
|
—
|
|
|
(555
|
)
|
||
Other, net
|
21
|
|
|
29
|
|
||
Net cash provided by (used in) investing activities
|
(4,369
|
)
|
|
(579
|
)
|
||
Financing activities
|
|
|
|
||||
Increase (decrease) in deposits
|
11,344
|
|
|
(3,167
|
)
|
||
(Decrease) increase in short-term borrowings
|
(2,293
|
)
|
|
2,157
|
|
||
Net proceeds from issuance of long-term debt
|
1,321
|
|
|
857
|
|
||
Maturity/redemption of long-term debt
|
(1,634
|
)
|
|
(661
|
)
|
||
Dividends paid on preferred stock
|
(37
|
)
|
|
(37
|
)
|
||
Dividends paid on common stock
|
(307
|
)
|
|
(295
|
)
|
||
Repurchases of common stock
|
(88
|
)
|
|
(177
|
)
|
||
Net proceeds from issuance of preferred stock
|
494
|
|
|
—
|
|
||
Payments related to tax-withholding for share based compensation awards
|
(19
|
)
|
|
(26
|
)
|
||
Other, net
|
1
|
|
|
2
|
|
||
Net cash provided by (used for) financing activities
|
8,782
|
|
|
(1,347
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
5,123
|
|
|
(1,074
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,170
|
|
|
2,672
|
|
||
Cash and cash equivalents at end of period
|
$
|
6,293
|
|
|
$
|
1,598
|
|
|
Six Months Ended June 30,
|
||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
||||
Supplemental disclosures:
|
|
||||||
Interest paid
|
$
|
297
|
|
|
$
|
508
|
|
Income taxes paid (refunded)
|
10
|
|
|
(19
|
)
|
||
Non-cash activities
|
|
||||||
Loans transferred to held-for-sale from portfolio
|
589
|
|
|
457
|
|
||
Loans transferred to portfolio from held-for-sale
|
23
|
|
|
8
|
|
||
Transfer of loans to OREO
|
5
|
|
|
10
|
|
||
Transfer of securities from available-for-sale to held-to-maturity
|
1,520
|
|
|
—
|
|
Accounting standards adopted in current period
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2019-05 - Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief
Issued: May 2019
|
- Provides entities that have certain instruments within the scope of ASC Subtopic 326-20 with an option to irrevocably elect fair value option, applied on instrument-by-instrument basis. The fair value option does not apply to held-to-maturity debt securities.
|
- Management did not elect this option on any eligible instruments when adopting Topic 326 on January 1, 2020.
- The ASU did not impact Huntington’s Unaudited Condensed Consolidated Financial Statements.
|
ASU 2019-08 - Compensation - Codification Improvements - Share-based Consideration Payable to a Customer
Issued: November 2019
|
- The ASU requires that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718.
- The amount of share-based payment awards should be recorded as a reduction of the transaction price and is required to be measured on the basis of grant-date fair value of the share-based payment awards in accordance with Topic 718.
- The classification and subsequent measurement of the award are subject to the guidance in Topic 718 unless the share-based payment award is subsequently modified and the grantee is no longer a customer.
|
- Management adopted the amendments on January 1, 2020.
- The ASU did not have a material impact on Huntington’s Unaudited Condensed Consolidated Financial Statements.
|
ASU 2019-11 - Financial Instruments - Credit Losses (Topic 326): Codification Improvements to Topic 326
Issued: November 2019
|
- The ASU clarifies or addresses stakeholders’ specific issues related to ASU 2016-13 as described below:
- Clarifies that the allowance for purchased financial assets with credit deterioration should include expected recoveries. If a method other than a discounted cash flow method is used to calculate allowance, expected recoveries should not result in an acceleration of the noncredit discount.
- Provides transition relief by permitting entities an accounting policy election to adjust the effective interest rate on existing TDRs using prepayment assumptions on the date of adoption of Topic 326 rather than the prepayment assumptions in effect immediately before the restructuring.
- Extends the disclosure relief for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis.
- Clarifies that an entity should assess whether it reasonably expects the borrower will be able to continually replenish collateral securing the financial asset to apply the practical expedient related to collateral maintenance provision.
|
- Management adopted the amendments on January 1, 2020.
- The ASU did not have a material impact on Huntington’s Unaudited Condensed Consolidated Financial Statements.
|
Accounting standards yet to be adopted
|
Standard
|
Summary of guidance
|
Effects on financial statements
|
ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
Issued: December 2019
|
- The ASU simplifies the accounting for income taxes by removing exceptions to the:
(a) Incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items;
(b) Requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment;
(c) Ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and
(d) General methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year.
- The ASU also simplifies various other aspects of the accounting for income taxes.
|
- The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.
- Early adoption of the ASU is permitted, including adoption in any interim period for which financial statements have not yet been issued. An entity that elects to early adopt in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period.
- The ASU is not expected to have a material impact on Huntington’s Unaudited Condensed Consolidated Financial Statements.
|
ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
Issued: March 2020
|
- The ASU provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met, including the following:
- Modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, should be accounted for by prospectively adjusting the effective interest rate.
- Modifications of contracts within the scope of Topic 842, Leases, should be accounted for as a continuation of the existing contracts with no reassessments of the lease classification and the discount rate.
- Modifications of contracts do not require an entity to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Topic 815.
- The ASU also provides optional expedients for various hedging relationships and do not require de-designation of hedging relationships if certain criteria are met.
- An entity may make a one time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020.
|
- The ASU is effective for all entities from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022.
- The ASU is not expected to have a material impact Huntington’s Unaudited Condensed Consolidated Financial Statements.
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Fair Value
|
||||||||
June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
4,933
|
|
|
185
|
|
|
—
|
|
|
5,118
|
|
||||
Residential MBS
|
3,718
|
|
|
120
|
|
|
—
|
|
|
3,838
|
|
||||
Commercial MBS
|
764
|
|
|
24
|
|
|
—
|
|
|
788
|
|
||||
Other agencies
|
144
|
|
|
3
|
|
|
—
|
|
|
147
|
|
||||
Total U.S. Treasury, federal agency and other agency securities
|
9,567
|
|
|
332
|
|
|
—
|
|
|
9,899
|
|
||||
Municipal securities
|
3,145
|
|
|
47
|
|
|
(35
|
)
|
|
3,157
|
|
||||
Private-label CMO
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Asset-backed securities
|
208
|
|
|
3
|
|
|
—
|
|
|
211
|
|
||||
Corporate debt
|
22
|
|
|
—
|
|
|
(1
|
)
|
|
21
|
|
||||
Other securities/Sovereign debt
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total available-for-sale securities
|
$
|
12,951
|
|
|
$
|
382
|
|
|
$
|
(36
|
)
|
|
$
|
13,297
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
2,151
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
2,257
|
|
Residential MBS
|
3,361
|
|
|
120
|
|
|
—
|
|
|
3,481
|
|
||||
Commercial MBS
|
3,631
|
|
|
202
|
|
|
—
|
|
|
3,833
|
|
||||
Other agencies
|
269
|
|
|
12
|
|
|
—
|
|
|
281
|
|
||||
Total federal agency and other agency securities
|
9,412
|
|
|
440
|
|
|
—
|
|
|
9,852
|
|
||||
Municipal securities
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total held-to-maturity securities
|
$
|
9,416
|
|
|
$
|
440
|
|
|
$
|
—
|
|
|
$
|
9,856
|
|
|
|
|
|
|
|
|
|
||||||||
Other securities, at cost:
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank stock
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
84
|
|
Federal Reserve Bank stock
|
298
|
|
|
—
|
|
|
—
|
|
|
298
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
52
|
|
|
—
|
|
|
—
|
|
|
52
|
|
||||
Marketable equity securities
|
3
|
|
|
1
|
|
|
—
|
|
|
4
|
|
||||
Total other securities
|
$
|
437
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
438
|
|
|
|
|
Unrealized
|
|
|
||||||||||
(dollar amounts in millions)
|
Amortized
Cost |
|
Gross
Gains |
|
Gross
Losses |
|
Fair Value
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
5,055
|
|
|
48
|
|
|
(18
|
)
|
|
5,085
|
|
||||
Residential MBS
|
4,180
|
|
|
45
|
|
|
(3
|
)
|
|
4,222
|
|
||||
Commercial MBS
|
979
|
|
|
1
|
|
|
(4
|
)
|
|
976
|
|
||||
Other agencies
|
165
|
|
|
1
|
|
|
(1
|
)
|
|
165
|
|
||||
Total U.S. Treasury, federal agency and other agency securities
|
10,389
|
|
|
95
|
|
|
(26
|
)
|
|
10,458
|
|
||||
Municipal securities
|
3,044
|
|
|
34
|
|
|
(23
|
)
|
|
3,055
|
|
||||
Private-label CMO
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Asset-backed securities
|
575
|
|
|
6
|
|
|
(2
|
)
|
|
579
|
|
||||
Corporate debt
|
49
|
|
|
2
|
|
|
—
|
|
|
51
|
|
||||
Other securities/Sovereign debt
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total available-for-sale securities
|
$
|
14,063
|
|
|
$
|
137
|
|
|
$
|
(51
|
)
|
|
$
|
14,149
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Federal agencies:
|
|
|
|
|
|
|
|
||||||||
Residential CMO
|
$
|
2,351
|
|
|
$
|
33
|
|
|
$
|
(3
|
)
|
|
$
|
2,381
|
|
Residential MBS
|
2,463
|
|
|
50
|
|
|
—
|
|
|
2,513
|
|
||||
Commercial MBS
|
3,959
|
|
|
34
|
|
|
—
|
|
|
3,993
|
|
||||
Other agencies
|
293
|
|
|
2
|
|
|
—
|
|
|
295
|
|
||||
Total federal agency and other agency securities
|
9,066
|
|
|
119
|
|
|
(3
|
)
|
|
9,182
|
|
||||
Municipal securities
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Total held-to-maturity securities
|
$
|
9,070
|
|
|
$
|
119
|
|
|
$
|
(3
|
)
|
|
$
|
9,186
|
|
|
|
|
|
|
|
|
|
||||||||
Other securities, at cost:
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank stock
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
90
|
|
Federal Reserve Bank stock
|
297
|
|
|
—
|
|
|
—
|
|
|
297
|
|
||||
Other securities, at fair value
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||
Marketable equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total other securities
|
$
|
441
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
441
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||
(dollar amounts in millions)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Under 1 year
|
$
|
344
|
|
|
$
|
337
|
|
|
$
|
231
|
|
|
$
|
229
|
|
After 1 year through 5 years
|
1,166
|
|
|
1,159
|
|
|
1,196
|
|
|
1,189
|
|
||||
After 5 years through 10 years
|
1,410
|
|
|
1,421
|
|
|
1,594
|
|
|
1,606
|
|
||||
After 10 years
|
10,031
|
|
|
10,380
|
|
|
11,042
|
|
|
11,125
|
|
||||
Total available-for-sale securities
|
$
|
12,951
|
|
|
$
|
13,297
|
|
|
$
|
14,063
|
|
|
$
|
14,149
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Under 1 year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
After 1 year through 5 years
|
141
|
|
|
149
|
|
|
17
|
|
|
17
|
|
||||
After 5 years through 10 years
|
181
|
|
|
190
|
|
|
300
|
|
|
305
|
|
||||
After 10 years
|
9,094
|
|
|
9,517
|
|
|
8,753
|
|
|
8,864
|
|
||||
Total held-to-maturity securities
|
$
|
9,416
|
|
|
$
|
9,856
|
|
|
$
|
9,070
|
|
|
$
|
9,186
|
|
|
Less than 12 Months
|
|
Over 12 Months
|
|
Total
|
||||||||||||||||||
(dollar amounts in millions)
|
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
|
Fair
Value |
|
Gross Unrealized
Losses |
||||||||||||
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
—
|
|
Residential MBS
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial MBS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other agencies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total federal agency and other agency securities
|
74
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
||||||
Municipal securities
|
428
|
|
|
(8
|
)
|
|
1,023
|
|
|
(27
|
)
|
|
1,451
|
|
|
(35
|
)
|
||||||
Asset-backed securities
|
26
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
82
|
|
|
—
|
|
||||||
Corporate debt
|
13
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
13
|
|
|
(1
|
)
|
||||||
Total temporarily impaired securities
|
$
|
541
|
|
|
$
|
(9
|
)
|
|
$
|
1,079
|
|
|
$
|
(27
|
)
|
|
$
|
1,620
|
|
|
$
|
(36
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Residential MBS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial MBS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other agencies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total federal agency and other agency securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Municipal securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
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, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
1,206
|
|
|
$
|
(10
|
)
|
|
$
|
519
|
|
|
$
|
(8
|
)
|
|
$
|
1,725
|
|
|
$
|
(18
|
)
|
Residential MBS
|
1,169
|
|
|
(3
|
)
|
|
9
|
|
|
—
|
|
|
1,178
|
|
|
(3
|
)
|
||||||
Commercial MBS
|
472
|
|
|
(2
|
)
|
|
272
|
|
|
(2
|
)
|
|
744
|
|
|
(4
|
)
|
||||||
Other agencies
|
86
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
86
|
|
|
(1
|
)
|
||||||
Total federal agency and other agency securities
|
2,933
|
|
|
(16
|
)
|
|
800
|
|
|
(10
|
)
|
|
3,733
|
|
|
(26
|
)
|
||||||
Municipal securities
|
273
|
|
|
(4
|
)
|
|
1,204
|
|
|
(19
|
)
|
|
1,477
|
|
|
(23
|
)
|
||||||
Asset-backed securities
|
116
|
|
|
(1
|
)
|
|
37
|
|
|
(1
|
)
|
|
153
|
|
|
(2
|
)
|
||||||
Corporate debt
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
3,323
|
|
|
$
|
(21
|
)
|
|
$
|
2,041
|
|
|
$
|
(30
|
)
|
|
$
|
5,364
|
|
|
$
|
(51
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential CMO
|
$
|
218
|
|
|
$
|
(1
|
)
|
|
$
|
112
|
|
|
$
|
(2
|
)
|
|
$
|
330
|
|
|
$
|
(3
|
)
|
Residential MBS
|
317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317
|
|
|
—
|
|
||||||
Commercial MBS
|
81
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|
—
|
|
||||||
Other agencies
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
||||||
Total federal agency and other agency securities
|
674
|
|
|
(1
|
)
|
|
112
|
|
|
(2
|
)
|
|
786
|
|
|
(3
|
)
|
||||||
Municipal securities
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Total temporarily impaired securities
|
$
|
678
|
|
|
$
|
(1
|
)
|
|
$
|
112
|
|
|
$
|
(2
|
)
|
|
$
|
790
|
|
|
$
|
(3
|
)
|
(dollar amounts in millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Loans and leases:
|
|
|
|
||||
Commercial and industrial
|
$
|
34,879
|
|
|
$
|
30,664
|
|
Commercial real estate
|
7,179
|
|
|
6,674
|
|
||
Automobile
|
12,678
|
|
|
12,797
|
|
||
Home equity
|
8,866
|
|
|
9,093
|
|
||
Residential mortgage
|
11,621
|
|
|
11,376
|
|
||
RV and marine
|
3,843
|
|
|
3,563
|
|
||
Other consumer
|
1,073
|
|
|
1,237
|
|
||
Loans and leases
|
$
|
80,139
|
|
|
$
|
75,404
|
|
Allowance for loan and lease losses
|
(1,702
|
)
|
|
(783
|
)
|
||
Net loans and leases
|
$
|
78,437
|
|
|
$
|
74,621
|
|
(dollar amounts in millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Commercial and industrial:
|
|
|
|
||||
Lease payments receivable
|
$
|
1,762
|
|
|
$
|
1,841
|
|
Estimated residual value of leased assets
|
691
|
|
|
728
|
|
||
Gross investment in commercial and industrial lease financing receivables
|
2,453
|
|
|
2,569
|
|
||
Deferred origination costs
|
19
|
|
|
19
|
|
||
Deferred fees
|
(214
|
)
|
|
(249
|
)
|
||
Total net investment in commercial and industrial lease financing receivables
|
$
|
2,258
|
|
|
$
|
2,339
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||
(dollar amounts in millions)
|
Nonaccrual loans with no ACL
|
Total nonaccrual loans
|
|
Nonaccrual loans with no ACL
|
Total nonaccrual loans
|
||||||||
Commercial and industrial
|
$
|
97
|
|
$
|
485
|
|
|
$
|
109
|
|
$
|
323
|
|
Commercial real estate
|
6
|
|
28
|
|
|
2
|
|
10
|
|
||||
Automobile
|
—
|
|
8
|
|
|
—
|
|
4
|
|
||||
Home equity
|
—
|
|
59
|
|
|
—
|
|
59
|
|
||||
Residential mortgage
|
—
|
|
66
|
|
|
—
|
|
71
|
|
||||
RV and marine
|
—
|
|
2
|
|
|
—
|
|
1
|
|
||||
Other consumer
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total nonaccrual loans
|
$
|
103
|
|
$
|
648
|
|
|
$
|
111
|
|
$
|
468
|
|
(1)
|
Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.
|
|
June 30, 2020
|
|
||||||||||||||||||||||||||||||
|
Past Due (1)(2)
|
|
|
|
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
|
$
|
46
|
|
|
$
|
24
|
|
|
$
|
87
|
|
|
$
|
157
|
|
|
$
|
34,722
|
|
|
$
|
—
|
|
|
$
|
34,879
|
|
|
$
|
13
|
|
(3)
|
Commercial real estate
|
3
|
|
|
21
|
|
|
4
|
|
|
28
|
|
|
7,151
|
|
|
—
|
|
|
7,179
|
|
|
—
|
|
|
||||||||
Automobile
|
47
|
|
|
14
|
|
|
14
|
|
|
75
|
|
|
12,603
|
|
|
—
|
|
|
12,678
|
|
|
8
|
|
|
||||||||
Home equity
|
26
|
|
|
12
|
|
|
48
|
|
|
86
|
|
|
8,779
|
|
|
1
|
|
|
8,866
|
|
|
10
|
|
|
||||||||
Residential mortgage
|
75
|
|
|
24
|
|
|
194
|
|
|
293
|
|
|
11,237
|
|
|
91
|
|
|
11,621
|
|
|
158
|
|
(4)
|
||||||||
RV and marine
|
8
|
|
|
3
|
|
|
3
|
|
|
14
|
|
|
3,829
|
|
|
—
|
|
|
3,843
|
|
|
2
|
|
|
||||||||
Other consumer
|
6
|
|
|
2
|
|
|
3
|
|
|
11
|
|
|
1,062
|
|
|
—
|
|
|
1,073
|
|
|
3
|
|
|
||||||||
Total loans and leases
|
$
|
211
|
|
|
$
|
100
|
|
|
$
|
353
|
|
|
$
|
664
|
|
|
$
|
79,383
|
|
|
$
|
92
|
|
|
$
|
80,139
|
|
|
$
|
194
|
|
|
|
December 31, 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
|
$
|
65
|
|
|
$
|
31
|
|
|
$
|
69
|
|
|
$
|
165
|
|
|
$
|
30,499
|
|
|
$
|
—
|
|
|
$
|
30,664
|
|
|
$
|
11
|
|
(3)
|
Commercial real estate
|
3
|
|
|
1
|
|
|
7
|
|
|
11
|
|
|
6,663
|
|
|
—
|
|
|
6,674
|
|
|
—
|
|
|
||||||||
Automobile
|
95
|
|
|
19
|
|
|
11
|
|
|
125
|
|
|
12,672
|
|
|
—
|
|
|
12,797
|
|
|
8
|
|
|
||||||||
Home equity
|
50
|
|
|
19
|
|
|
51
|
|
|
120
|
|
|
8,972
|
|
|
1
|
|
|
9,093
|
|
|
14
|
|
|
||||||||
Residential mortgage
|
103
|
|
|
49
|
|
|
170
|
|
|
322
|
|
|
10,974
|
|
|
80
|
|
|
11,376
|
|
|
129
|
|
(4)
|
||||||||
RV and marine
|
13
|
|
|
4
|
|
|
2
|
|
|
19
|
|
|
3,544
|
|
|
—
|
|
|
3,563
|
|
|
2
|
|
|
||||||||
Other consumer
|
13
|
|
|
6
|
|
|
7
|
|
|
26
|
|
|
1,211
|
|
|
—
|
|
|
1,237
|
|
|
7
|
|
|
||||||||
Total loans and leases
|
$
|
342
|
|
|
$
|
129
|
|
|
$
|
317
|
|
|
$
|
788
|
|
|
$
|
74,535
|
|
|
$
|
81
|
|
|
$
|
75,404
|
|
|
$
|
171
|
|
|
(1)
|
NALs are included in this aging analysis based on the loan’s past due status.
|
(2)
|
At June 30, 2020, the principal balance of loans in payment deferral programs offered in response to the COVID-19 pandemic which are performing according to their modified terms are generally not considered delinquent.
|
(3)
|
Amounts include Huntington Technology Finance administrative lease delinquencies.
|
(4)
|
Amounts include mortgage loans insured by U.S. government agencies.
|
•
|
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 resulting from 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.
|
|
|
As of June 30, 2020
|
||||||||||||||||||||||||||||||||||
|
|
Term Loans Amortized Cost Basis by Origination Year
|
|
Revolver Total at Amortized Cost Basis
|
|
Revolver Total Converted to Term Loans
|
|
|
||||||||||||||||||||||||||||
(dollar amounts in millions)
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
|
Total (3)
|
||||||||||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
9,667
|
|
|
$
|
5,916
|
|
|
$
|
3,675
|
|
|
$
|
1,937
|
|
|
$
|
1,236
|
|
|
$
|
1,369
|
|
|
$
|
8,112
|
|
|
$
|
3
|
|
|
$
|
31,915
|
|
OLEM
|
|
348
|
|
|
118
|
|
|
146
|
|
|
59
|
|
|
77
|
|
|
33
|
|
|
268
|
|
|
—
|
|
|
1,049
|
|
|||||||||
Substandard
|
|
241
|
|
|
187
|
|
|
279
|
|
|
194
|
|
|
91
|
|
|
204
|
|
|
711
|
|
|
—
|
|
|
1,907
|
|
|||||||||
Doubtful
|
|
2
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||||||
Total Commercial and industrial
|
|
$
|
10,258
|
|
|
$
|
6,221
|
|
|
$
|
4,105
|
|
|
$
|
2,190
|
|
|
$
|
1,404
|
|
|
$
|
1,607
|
|
|
$
|
9,091
|
|
|
$
|
3
|
|
|
$
|
34,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
|
$
|
1,023
|
|
|
$
|
1,616
|
|
|
$
|
1,287
|
|
|
$
|
603
|
|
|
$
|
610
|
|
|
$
|
700
|
|
|
$
|
720
|
|
|
$
|
—
|
|
|
$
|
6,559
|
|
OLEM
|
|
44
|
|
|
140
|
|
|
100
|
|
|
59
|
|
|
23
|
|
|
32
|
|
|
37
|
|
|
—
|
|
|
435
|
|
|||||||||
Substandard
|
|
19
|
|
|
30
|
|
|
11
|
|
|
37
|
|
|
56
|
|
|
20
|
|
|
10
|
|
|
—
|
|
|
183
|
|
|||||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||||
Total Commercial real estate
|
|
$
|
1,086
|
|
|
$
|
1,786
|
|
|
$
|
1,398
|
|
|
$
|
699
|
|
|
$
|
689
|
|
|
$
|
754
|
|
|
$
|
767
|
|
|
$
|
—
|
|
|
$
|
7,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Automobile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
750+
|
|
$
|
1,389
|
|
|
$
|
2,367
|
|
|
$
|
1,442
|
|
|
$
|
1,025
|
|
|
$
|
449
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,842
|
|
650-749
|
|
921
|
|
|
1,752
|
|
|
1,011
|
|
|
551
|
|
|
247
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
4,582
|
|
|||||||||
<650
|
|
125
|
|
|
391
|
|
|
327
|
|
|
226
|
|
|
118
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
1,254
|
|
|||||||||
Total Automobile
|
|
$
|
2,435
|
|
|
$
|
4,510
|
|
|
$
|
2,780
|
|
|
$
|
1,802
|
|
|
$
|
814
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Home equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
750+
|
|
$
|
236
|
|
|
$
|
32
|
|
|
$
|
36
|
|
|
$
|
39
|
|
|
$
|
110
|
|
|
$
|
547
|
|
|
$
|
4,511
|
|
|
$
|
193
|
|
|
$
|
5,704
|
|
650-749
|
|
38
|
|
|
12
|
|
|
10
|
|
|
14
|
|
|
31
|
|
|
198
|
|
|
2,130
|
|
|
189
|
|
|
2,622
|
|
|||||||||
<650
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
7
|
|
|
86
|
|
|
329
|
|
|
114
|
|
|
539
|
|
|||||||||
Total Home equity
|
|
$
|
274
|
|
|
$
|
45
|
|
|
$
|
47
|
|
|
$
|
54
|
|
|
$
|
148
|
|
|
$
|
831
|
|
|
$
|
6,970
|
|
|
$
|
496
|
|
|
$
|
8,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
750+
|
|
$
|
1,492
|
|
|
$
|
1,664
|
|
|
$
|
1,236
|
|
|
$
|
1,384
|
|
|
$
|
950
|
|
|
$
|
1,608
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,334
|
|
650-749
|
|
512
|
|
|
586
|
|
|
418
|
|
|
322
|
|
|
209
|
|
|
565
|
|
|
—
|
|
|
—
|
|
|
2,612
|
|
|||||||||
<650
|
|
12
|
|
|
35
|
|
|
67
|
|
|
75
|
|
|
58
|
|
|
337
|
|
|
—
|
|
|
—
|
|
|
584
|
|
|||||||||
Total Residential mortgage
|
|
$
|
2,016
|
|
|
$
|
2,285
|
|
|
$
|
1,721
|
|
|
$
|
1,781
|
|
|
$
|
1,217
|
|
|
$
|
2,510
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
RV and marine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
750+
|
|
$
|
562
|
|
|
$
|
585
|
|
|
$
|
682
|
|
|
$
|
386
|
|
|
$
|
174
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,689
|
|
650-749
|
|
131
|
|
|
263
|
|
|
239
|
|
|
165
|
|
|
77
|
|
|
159
|
|
|
—
|
|
|
—
|
|
|
1,034
|
|
|||||||||
<650
|
|
2
|
|
|
16
|
|
|
25
|
|
|
27
|
|
|
14
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|||||||||
Total RV and marine
|
|
$
|
695
|
|
|
$
|
864
|
|
|
$
|
946
|
|
|
$
|
578
|
|
|
$
|
265
|
|
|
$
|
495
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit Quality Indicator (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
750+
|
|
$
|
52
|
|
|
$
|
69
|
|
|
$
|
32
|
|
|
$
|
11
|
|
|
$
|
5
|
|
|
$
|
10
|
|
|
$
|
325
|
|
|
$
|
2
|
|
|
$
|
506
|
|
650-749
|
|
21
|
|
|
74
|
|
|
25
|
|
|
8
|
|
|
3
|
|
|
5
|
|
|
311
|
|
|
32
|
|
|
479
|
|
|||||||||
<650
|
|
1
|
|
|
11
|
|
|
4
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
30
|
|
|
38
|
|
|
88
|
|
|||||||||
Total Other consumer
|
|
$
|
74
|
|
|
$
|
154
|
|
|
$
|
61
|
|
|
$
|
21
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
$
|
666
|
|
|
$
|
72
|
|
|
$
|
1,073
|
|
(1)
|
Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually.
|
(2)
|
Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
|
(3)
|
The total amount of accrued interest recorded for these loans at June 30, 2020, presented in Other assets within the Condensed Consolidated Balance Sheets, was $106 million and $127 million of commercial and consumer, respectively.
|
|
December 31, 2019
|
||||||||||||||||||
(dollar amounts in millions)
|
Credit Risk Profile by UCS Classification
|
||||||||||||||||||
Commercial
|
Pass
|
|
OLEM
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and industrial
|
$
|
28,477
|
|
|
$
|
634
|
|
|
$
|
1,551
|
|
|
$
|
2
|
|
|
$
|
30,664
|
|
Commercial real estate
|
6,487
|
|
|
98
|
|
|
88
|
|
|
1
|
|
|
6,674
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Credit Risk Profile by FICO Score (1), (2)
|
||||||||||||||||
Consumer
|
|
|
750+
|
|
650-749
|
|
<650
|
|
Total
|
||||||||||
Automobile
|
|
|
$
|
6,759
|
|
|
$
|
4,661
|
|
|
$
|
1,377
|
|
|
$
|
12,797
|
|
||
Home equity
|
|
|
5,763
|
|
|
2,772
|
|
|
557
|
|
|
9,092
|
|
||||||
Residential mortgage
|
|
|
7,976
|
|
|
2,742
|
|
|
578
|
|
|
11,296
|
|
||||||
RV and marine
|
|
|
2,391
|
|
|
1,053
|
|
|
119
|
|
|
3,563
|
|
||||||
Other consumer
|
|
|
546
|
|
|
571
|
|
|
120
|
|
|
1,237
|
|
(1)
|
Excludes loans accounted for under the fair value option.
|
(2)
|
Reflects updated customer credit scores.
|
|
New Troubled Debt Restructurings (1)
|
|||||||||||||||||||||
|
Three Months Ended June 30, 2020
|
|||||||||||||||||||||
|
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
|
98
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
78
|
|
Commercial real estate
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Automobile
|
1,058
|
|
|
—
|
|
|
14
|
|
|
2
|
|
|
—
|
|
|
16
|
|
|||||
Home equity
|
63
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||
Residential mortgage
|
105
|
|
|
—
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
14
|
|
|||||
RV and marine
|
68
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Other consumer
|
142
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total new TDRs
|
1,536
|
|
|
$
|
1
|
|
|
$
|
58
|
|
|
$
|
5
|
|
|
$
|
52
|
|
|
$
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended June 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
|
101
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39
|
|
Commercial real estate
|
6
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Automobile
|
650
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|||||
Home equity
|
68
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||
Residential mortgage
|
96
|
|
|
—
|
|
|
10
|
|
|
1
|
|
|
—
|
|
|
11
|
|
|||||
RV and marine
|
31
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Other consumer
|
343
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total new TDRs
|
1,295
|
|
|
$
|
2
|
|
|
$
|
57
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
New Troubled Debt Restructurings (1)
|
|||||||||||||||||||||
|
Six Months Ended June 30, 2020
|
|||||||||||||||||||||
|
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
|
238
|
|
|
$
|
—
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
146
|
|
Commercial real estate
|
9
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Automobile
|
1,856
|
|
|
—
|
|
|
20
|
|
|
4
|
|
|
—
|
|
|
24
|
|
|||||
Home equity
|
126
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
6
|
|
|||||
Residential mortgage
|
206
|
|
|
—
|
|
|
21
|
|
|
4
|
|
|
—
|
|
|
25
|
|
|||||
RV and marine finance
|
96
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Other consumer
|
391
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total new TDRs
|
2,922
|
|
|
$
|
2
|
|
|
$
|
139
|
|
|
$
|
11
|
|
|
$
|
58
|
|
|
$
|
210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Six Months Ended June 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
|
216
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74
|
|
Commercial real estate
|
14
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
Automobile
|
1,394
|
|
|
—
|
|
|
9
|
|
|
4
|
|
|
—
|
|
|
13
|
|
|||||
Home equity
|
172
|
|
|
—
|
|
|
5
|
|
|
3
|
|
|
—
|
|
|
8
|
|
|||||
Residential mortgage
|
172
|
|
|
—
|
|
|
18
|
|
|
1
|
|
|
—
|
|
|
19
|
|
|||||
RV and marine finance
|
67
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Other consumer
|
587
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Total new TDRs
|
2,622
|
|
|
$
|
3
|
|
|
$
|
117
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended June 30, 2020:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
996
|
|
|
$
|
508
|
|
|
$
|
1,504
|
|
Loan charge-offs
|
|
(84
|
)
|
|
(39
|
)
|
|
(123
|
)
|
|||
Recoveries of loans previously charged-off
|
|
4
|
|
|
12
|
|
|
16
|
|
|||
Provision for loan and lease losses
|
|
253
|
|
|
52
|
|
|
305
|
|
|||
ALLL balance, end of period
|
|
$
|
1,169
|
|
|
$
|
533
|
|
|
$
|
1,702
|
|
AULC balance, beginning of period
|
|
$
|
58
|
|
|
$
|
41
|
|
|
$
|
99
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
25
|
|
|
(3
|
)
|
|
22
|
|
|||
Unfunded commitment losses
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
AULC balance, end of period
|
|
$
|
81
|
|
|
$
|
38
|
|
|
$
|
119
|
|
ACL balance, end of period
|
|
$
|
1,250
|
|
|
$
|
571
|
|
|
$
|
1,821
|
|
Six-month period ended June 30, 2020:
|
|
|
|
|
|
|
||||||
ALLL balance, beginning of period
|
|
$
|
552
|
|
|
$
|
231
|
|
|
$
|
783
|
|
Cumulative-effect of change in accounting principle for financial instruments - credit losses (1)
|
|
180
|
|
|
211
|
|
|
391
|
|
|||
Loan charge-offs
|
|
(172
|
)
|
|
(87
|
)
|
|
(259
|
)
|
|||
Recoveries of loans previously charged-off
|
|
9
|
|
|
26
|
|
|
35
|
|
|||
Provision for loan and lease losses
|
|
600
|
|
|
152
|
|
|
752
|
|
|||
ALLL balance, end of period
|
|
$
|
1,169
|
|
|
$
|
533
|
|
|
$
|
1,702
|
|
AULC balance, beginning of period
|
|
$
|
102
|
|
|
$
|
2
|
|
|
$
|
104
|
|
Cumulative-effect of change in accounting principle for financial instruments - credit losses (1)
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
(20
|
)
|
|
36
|
|
|
16
|
|
|||
Unfunded commitment losses
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
AULC balance, end of period
|
|
$
|
81
|
|
|
$
|
38
|
|
|
$
|
119
|
|
ACL balance, end of period
|
|
$
|
1,250
|
|
|
$
|
571
|
|
|
$
|
1,821
|
|
(1)
|
Relates to day one impact of the CECL adjustment as a result of the implementation of ASU 2016-13.
|
(dollar amounts in millions)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Three-month period ended June 30, 2019:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
545
|
|
|
$
|
219
|
|
|
$
|
764
|
|
Loan charge-offs
|
|
(24
|
)
|
|
(46
|
)
|
|
(70
|
)
|
|||
Recoveries of loans previously charged-off
|
|
6
|
|
|
16
|
|
|
22
|
|
|||
Provision for loan and lease losses
|
|
33
|
|
|
25
|
|
|
58
|
|
|||
ALLL balance, end of period
|
|
$
|
560
|
|
|
$
|
214
|
|
|
$
|
774
|
|
AULC balance, beginning of period
|
|
$
|
98
|
|
|
$
|
2
|
|
|
$
|
100
|
|
Provision (reduction in allowance) for unfunded loan commitments and letters of credit
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
AULC balance, end of period
|
|
$
|
99
|
|
|
$
|
2
|
|
|
$
|
101
|
|
ACL balance, end of period
|
|
$
|
659
|
|
|
$
|
216
|
|
|
$
|
875
|
|
Six-month period ended June 30, 2019:
|
||||||||||||
ALLL balance, beginning of period
|
|
$
|
542
|
|
|
$
|
230
|
|
|
$
|
772
|
|
Loan charge-offs
|
|
(70
|
)
|
|
(97
|
)
|
|
(167
|
)
|
|||
Recoveries of loans previously charged-off
|
|
19
|
|
|
29
|
|
|
48
|
|
|||
Provision for loan and lease losses
|
|
69
|
|
|
52
|
|
|
121
|
|
|||
ALLL balance, end of period
|
|
$
|
560
|
|
|
$
|
214
|
|
|
$
|
774
|
|
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
|
|
$
|
659
|
|
|
$
|
216
|
|
|
$
|
875
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Residential mortgage loans sold with servicing retained
|
|
$
|
2,287
|
|
|
$
|
954
|
|
|
$
|
3,715
|
|
|
$
|
1,787
|
|
Pretax gains resulting from above loan sales (1)
|
|
59
|
|
|
23
|
|
|
98
|
|
|
35
|
|
(1)
|
Recorded in mortgage banking income
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
|
2020
|
|
2019 (1)
|
|
2020
|
|
2019 (1)
|
||||||||
Fair value, beginning of period
|
|
$
|
165
|
|
|
$
|
10
|
|
|
$
|
7
|
|
|
$
|
10
|
|
Fair value election for servicing assets previously measured using the amortized method
|
|
—
|
|
|
—
|
|
|
205
|
|
|
—
|
|
||||
New servicing assets created
|
|
26
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||
Change in fair value during the period due to:
|
|
|
|
|
|
|
|
|
||||||||
Time decay (2)
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Payoffs (3)
|
|
(10
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Changes in valuation inputs or assumptions (4)
|
|
(7
|
)
|
|
(1
|
)
|
|
(60
|
)
|
|
(1
|
)
|
||||
Fair value, end of period
|
|
$
|
172
|
|
|
$
|
9
|
|
|
$
|
172
|
|
|
$
|
9
|
|
Weighted-average life (years)
|
|
6.5
|
|
|
6.4
|
|
|
6.5
|
|
|
6.4
|
|
(1)
|
Prior to January 1, 2020, substantially all of Huntington’s MSR assets were recorded at amortized cost.
|
(2)
|
Represents decrease in value due to passage of time, including the impact from both regularly scheduled loan principal payments and partial loan paydowns.
|
(3)
|
Represents decrease in value associated with loans that paid off during the period.
|
(4)
|
Represents change in value resulting primarily from market-driven changes in interest rates and prepayment speeds.
|
|
June 30, 2020
|
|
December 31, 2019 (1)
|
||||||||||||||||||||
|
|
|
|
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)
|
17.32
|
%
|
|
|
$
|
(9
|
)
|
|
$
|
(17
|
)
|
|
8.21
|
%
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Spread over forward interest rate swap rates
|
793
|
|
bps
|
|
(5
|
)
|
|
(9
|
)
|
|
824
|
|
bps
|
|
—
|
|
|
—
|
|
(1)
|
Prior to January 1, 2020, substantially all of Huntington’s MSR assets were recorded at amortized cost.
|
|
|
|
|
|
|
||||||
|
Three Months Ended
June 30, 2020 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized gains (losses) on available-for-sale securities arising during the period
|
$
|
57
|
|
|
$
|
(13
|
)
|
|
$
|
44
|
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
23
|
|
|
(5
|
)
|
|
18
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale securities
|
80
|
|
|
(18
|
)
|
|
62
|
|
|||
Net change in fair value on cash flow hedges
|
14
|
|
|
(3
|
)
|
|
11
|
|
|||
Net change in pension and other post-retirement obligations (1)
|
(12
|
)
|
|
2
|
|
|
(10
|
)
|
|||
Total other comprehensive income (loss)
|
$
|
82
|
|
|
$
|
(19
|
)
|
|
$
|
63
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended
June 30, 2019 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized gains (losses) on available-for-sale securities arising during the period
|
$
|
163
|
|
|
$
|
(36
|
)
|
|
$
|
127
|
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
9
|
|
|
(2
|
)
|
|
7
|
|
|||
Net change in unrealized gains (losses) on available-for-sale securities
|
172
|
|
|
(38
|
)
|
|
134
|
|
|||
Net change in fair value on cash flow hedges
|
60
|
|
|
(13
|
)
|
|
47
|
|
|||
Net change in pension and other post-retirement obligations
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total other comprehensive income (loss)
|
$
|
233
|
|
|
$
|
(51
|
)
|
|
$
|
182
|
|
|
Six Months Ended
June 30, 2020 |
||||||||||
|
Tax (expense)
|
||||||||||
(dollar amounts in millions)
|
Pretax
|
|
Benefit
|
|
After-tax
|
||||||
Unrealized holding gains (losses) on available-for-sale securities arising during the period
|
$
|
274
|
|
|
$
|
(61
|
)
|
|
$
|
213
|
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
28
|
|
|
(6
|
)
|
|
22
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale securities
|
302
|
|
|
(67
|
)
|
|
235
|
|
|||
Net change in fair value on cash flow hedges
|
409
|
|
|
(90
|
)
|
|
319
|
|
|||
Net change in pension and other post-retirement obligations (1)
|
(10
|
)
|
|
2
|
|
|
(8
|
)
|
|||
Total other comprehensive income (loss)
|
$
|
701
|
|
|
$
|
(155
|
)
|
|
$
|
546
|
|
|
Six Months Ended
June 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
|
$
|
347
|
|
|
$
|
(77
|
)
|
|
$
|
270
|
|
Less: Reclassification adjustment for realized net losses (gains) included in net income
|
13
|
|
|
(3
|
)
|
|
10
|
|
|||
Net change in unrealized holding gains (losses) on available-for-sale securities
|
360
|
|
|
(80
|
)
|
|
280
|
|
|||
Net change in fair value on cash flow hedges
|
68
|
|
|
(14
|
)
|
|
54
|
|
|||
Net change in pension and other post-retirement obligations
|
2
|
|
|
—
|
|
|
2
|
|
|||
Total other comprehensive income (loss)
|
$
|
430
|
|
|
$
|
(94
|
)
|
|
$
|
336
|
|
|
|
|
|
|
|
|
|
||||||||
(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 (2)
|
|
Total
|
||||||||
Three Months Ended June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
145
|
|
|
$
|
331
|
|
|
$
|
(249
|
)
|
|
$
|
227
|
|
Other comprehensive income before reclassifications
|
44
|
|
|
11
|
|
|
—
|
|
|
55
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
18
|
|
|
—
|
|
|
(10
|
)
|
|
8
|
|
||||
Period change
|
62
|
|
|
11
|
|
|
(10
|
)
|
|
63
|
|
||||
Balance, end of period
|
$
|
207
|
|
|
$
|
342
|
|
|
$
|
(259
|
)
|
|
$
|
290
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(217
|
)
|
|
$
|
7
|
|
|
$
|
(245
|
)
|
|
$
|
(455
|
)
|
Other comprehensive income before reclassifications
|
127
|
|
|
47
|
|
|
—
|
|
|
174
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
7
|
|
|
—
|
|
|
1
|
|
|
8
|
|
||||
Period change
|
134
|
|
|
47
|
|
|
1
|
|
|
182
|
|
||||
Balance, end of period
|
$
|
(83
|
)
|
|
$
|
54
|
|
|
$
|
(244
|
)
|
|
$
|
(273
|
)
|
(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 (2)
|
|
Total
|
||||||||
Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(28
|
)
|
|
$
|
23
|
|
|
$
|
(251
|
)
|
|
$
|
(256
|
)
|
Other comprehensive income before reclassifications
|
213
|
|
|
319
|
|
|
—
|
|
|
532
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
22
|
|
|
—
|
|
|
(8
|
)
|
|
14
|
|
||||
Period change
|
235
|
|
|
319
|
|
|
(8
|
)
|
|
546
|
|
||||
Balance, end of period
|
$
|
207
|
|
|
$
|
342
|
|
|
$
|
(259
|
)
|
|
$
|
290
|
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(363
|
)
|
|
$
|
—
|
|
|
$
|
(246
|
)
|
|
$
|
(609
|
)
|
Other comprehensive income before reclassifications
|
270
|
|
|
54
|
|
|
—
|
|
|
324
|
|
||||
Amounts reclassified from accumulated OCI to earnings
|
10
|
|
|
—
|
|
|
2
|
|
|
12
|
|
||||
Period change
|
280
|
|
|
54
|
|
|
2
|
|
|
336
|
|
||||
Balance, end of period
|
$
|
(83
|
)
|
|
$
|
54
|
|
|
$
|
(244
|
)
|
|
$
|
(273
|
)
|
(1)
|
AOCI amounts at June 30, 2020, March 31, 2020 and June 30, 2019 include $81 million, $87 million and $131 million, respectively, net of 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.
|
(2)
|
Amounts for the three months and six months ended June 30, 2020 include a settlement gain recognized in other noninterest income on the Unaudited Condensed Consolidated Statements of Income.
|
(dollar amounts in millions)
|
|
|
|
|
|
|
||||||||
Series
|
|
Issuance Date
|
|
Total Shares Outstanding
|
|
Carrying Amount
|
|
Dividend Rate
|
|
Earliest Redemption Date
|
||||
Series B
|
|
12/28/2011
|
|
35,500
|
|
|
$
|
23
|
|
|
3-mo. LIBOR + 270 bps
|
|
|
1/15/2017
|
Series D
|
|
3/21/2016
|
|
400,000
|
|
|
386
|
|
|
6.25
|
%
|
|
4/15/2021
|
|
Series D
|
|
5/5/2016
|
|
200,000
|
|
|
199
|
|
|
6.25
|
%
|
|
4/15/2021
|
|
Series C
|
|
8/16/2016
|
|
100,000
|
|
|
100
|
|
|
5.875
|
%
|
|
1/15/2022
|
|
Series E
|
|
2/27/2018
|
|
5,000
|
|
|
495
|
|
|
5.700
|
%
|
|
4/15/2023
|
|
Series F
|
|
5/27/2020
|
|
5,000
|
|
|
494
|
|
|
5.625
|
%
|
|
7/15/2030
|
|
Total
|
|
|
|
745,500
|
|
|
$
|
1,697
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions, except per share data, share count in thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
150
|
|
|
$
|
364
|
|
|
$
|
198
|
|
|
$
|
722
|
|
Preferred stock dividends
|
(19
|
)
|
|
(18
|
)
|
|
(37
|
)
|
|
(37
|
)
|
||||
Net income available to common shareholders
|
$
|
131
|
|
|
$
|
346
|
|
|
$
|
161
|
|
|
$
|
685
|
|
Average common shares issued and outstanding
|
1,016,259
|
|
|
1,044,802
|
|
|
1,016,951
|
|
|
1,045,899
|
|
||||
Basic earnings per common share
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
$
|
0.16
|
|
|
$
|
0.66
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Dilutive potential common shares:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock units and awards
|
7,516
|
|
|
11,308
|
|
|
9,939
|
|
|
13,057
|
|
||||
Shares held in deferred compensation plans
|
4,908
|
|
|
4,170
|
|
|
4,739
|
|
|
4,003
|
|
||||
Dilutive potential common shares
|
12,424
|
|
|
15,478
|
|
|
14,678
|
|
|
17,060
|
|
||||
Total diluted average common shares issued and outstanding
|
1,028,683
|
|
|
1,060,280
|
|
|
1,031,629
|
|
|
1,062,959
|
|
||||
Diluted earnings per common share
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
$
|
0.16
|
|
|
$
|
0.64
|
|
Anti-dilutive awards (1)
|
17,200
|
|
|
7,656
|
|
|
12,291
|
|
|
6,237
|
|
(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 June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Noninterest income
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Noninterest income from contracts with customers
|
|
$
|
201
|
|
|
$
|
235
|
|
|
$
|
428
|
|
|
$
|
457
|
|
Noninterest income within the scope of other GAAP topics
|
|
190
|
|
|
139
|
|
|
324
|
|
|
236
|
|
||||
Total noninterest income
|
|
$
|
391
|
|
|
$
|
374
|
|
|
$
|
752
|
|
|
$
|
693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended June 30, 2020
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
||||||||||||||||||
Service charges on deposit accounts
|
$
|
39
|
|
|
$
|
18
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
59
|
|
Card and payment processing income
|
52
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||||
Trust and investment management services
|
10
|
|
|
1
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
45
|
|
||||||
Insurance income
|
12
|
|
|
1
|
|
|
—
|
|
|
11
|
|
|
1
|
|
|
25
|
|
||||||
Other noninterest income
|
4
|
|
|
5
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
17
|
|
||||||
Net revenue from contracts with customers
|
$
|
117
|
|
|
$
|
28
|
|
|
$
|
1
|
|
|
$
|
53
|
|
|
$
|
2
|
|
|
$
|
201
|
|
Noninterest income within the scope of
other GAAP topics
|
101
|
|
|
57
|
|
|
1
|
|
|
1
|
|
|
30
|
|
|
190
|
|
||||||
Total noninterest income
|
$
|
218
|
|
|
$
|
85
|
|
|
$
|
2
|
|
|
$
|
54
|
|
|
$
|
32
|
|
|
$
|
391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended June 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
|
$
|
73
|
|
|
$
|
16
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
92
|
|
Card and payment processing income
|
56
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||||
Trust and investment management services
|
8
|
|
|
1
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
43
|
|
||||||
Insurance income
|
9
|
|
|
1
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|
23
|
|
||||||
Other noninterest income
|
8
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
17
|
|
||||||
Net revenue from contracts with customers
|
$
|
154
|
|
|
$
|
27
|
|
|
$
|
3
|
|
|
$
|
48
|
|
|
$
|
3
|
|
|
$
|
235
|
|
Noninterest income within the scope of
other GAAP topics
|
44
|
|
|
62
|
|
|
1
|
|
|
1
|
|
|
31
|
|
|
139
|
|
||||||
Total noninterest income
|
$
|
198
|
|
|
$
|
89
|
|
|
$
|
4
|
|
|
$
|
49
|
|
|
$
|
34
|
|
|
$
|
374
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||||
(dollar amounts in millions)
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
Major Revenue Streams
|
|
|
|
|
|
||||||||||||||||||
Service charges on deposit accounts
|
$
|
107
|
|
|
$
|
35
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
146
|
|
Card and payment processing income
|
104
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
111
|
|
||||||
Trust and investment management services
|
20
|
|
|
2
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
92
|
|
||||||
Insurance income
|
20
|
|
|
3
|
|
|
—
|
|
|
23
|
|
|
2
|
|
|
48
|
|
||||||
Other noninterest income
|
12
|
|
|
8
|
|
|
1
|
|
|
8
|
|
|
2
|
|
|
31
|
|
||||||
Net revenue from contracts with customers
|
$
|
263
|
|
|
$
|
55
|
|
|
$
|
3
|
|
|
$
|
103
|
|
|
$
|
4
|
|
|
$
|
428
|
|
Noninterest income within the scope of
other GAAP topics
|
167
|
|
|
115
|
|
|
2
|
|
|
2
|
|
|
38
|
|
|
324
|
|
||||||
Total noninterest income
|
$
|
430
|
|
|
$
|
170
|
|
|
$
|
5
|
|
|
$
|
105
|
|
|
$
|
42
|
|
|
$
|
752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 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
|
$
|
142
|
|
|
$
|
32
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
179
|
|
Card and payment processing income
|
106
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113
|
|
||||||
Trust and investment management services
|
16
|
|
|
1
|
|
|
—
|
|
|
69
|
|
|
1
|
|
|
87
|
|
||||||
Insurance income
|
17
|
|
|
3
|
|
|
—
|
|
|
23
|
|
|
1
|
|
|
44
|
|
||||||
Other noninterest income
|
16
|
|
|
10
|
|
|
2
|
|
|
4
|
|
|
2
|
|
|
34
|
|
||||||
Net revenue from contracts with customers
|
$
|
297
|
|
|
$
|
53
|
|
|
$
|
5
|
|
|
$
|
98
|
|
|
$
|
4
|
|
|
$
|
457
|
|
Noninterest income within the scope of
other GAAP topics
|
75
|
|
|
112
|
|
|
1
|
|
|
2
|
|
|
46
|
|
|
236
|
|
||||||
Total noninterest income
|
$
|
372
|
|
|
$
|
165
|
|
|
$
|
6
|
|
|
$
|
100
|
|
|
$
|
50
|
|
|
$
|
693
|
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
June 30, 2020
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Residential CMOs
|
—
|
|
|
5,118
|
|
|
—
|
|
|
—
|
|
|
5,118
|
|
|||||
Residential MBS
|
—
|
|
|
3,838
|
|
|
—
|
|
|
—
|
|
|
3,838
|
|
|||||
Commercial MBS
|
—
|
|
|
788
|
|
|
—
|
|
|
—
|
|
|
788
|
|
|||||
Other agencies
|
—
|
|
|
147
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|||||
Municipal securities
|
—
|
|
|
55
|
|
|
3,102
|
|
|
—
|
|
|
3,157
|
|
|||||
Private-label CMO
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Asset-backed securities
|
—
|
|
|
155
|
|
|
56
|
|
|
—
|
|
|
211
|
|
|||||
Corporate debt
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Other securities/sovereign debt
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
8
|
|
|
10,126
|
|
|
3,163
|
|
|
—
|
|
|
13,297
|
|
|||||
Other securities
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Loans held for sale
|
—
|
|
|
954
|
|
|
—
|
|
|
—
|
|
|
954
|
|
|||||
Loans held for investment
|
—
|
|
|
67
|
|
|
25
|
|
|
—
|
|
|
92
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
172
|
|
|
—
|
|
|
172
|
|
|||||
Derivative assets
|
—
|
|
|
2,278
|
|
|
43
|
|
|
(1,214
|
)
|
|
1,107
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
1,276
|
|
|
3
|
|
|
(1,107
|
)
|
|
172
|
|
|
Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
|
December 31, 2019
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal agencies: Other agencies
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Municipal securities
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||
Other securities
|
30
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
|
30
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Residential CMOs
|
—
|
|
|
5,085
|
|
|
—
|
|
|
—
|
|
|
5,085
|
|
|||||
Residential MBS
|
—
|
|
|
4,222
|
|
|
—
|
|
|
—
|
|
|
4,222
|
|
|||||
Commercial MBS
|
—
|
|
|
976
|
|
|
—
|
|
|
—
|
|
|
976
|
|
|||||
Other agencies
|
—
|
|
|
165
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|||||
Municipal securities
|
—
|
|
|
56
|
|
|
2,999
|
|
|
—
|
|
|
3,055
|
|
|||||
Private-label CMO
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Asset-backed securities
|
—
|
|
|
531
|
|
|
48
|
|
|
—
|
|
|
579
|
|
|||||
Corporate debt
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|||||
Other securities/sovereign debt
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
|
10
|
|
|
11,090
|
|
|
3,049
|
|
|
—
|
|
|
14,149
|
|
|||||
Other securities
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|||||
Loans held for sale
|
—
|
|
|
781
|
|
|
—
|
|
|
—
|
|
|
781
|
|
|||||
Loans held for investment
|
—
|
|
|
55
|
|
|
26
|
|
|
—
|
|
|
81
|
|
|||||
MSRs
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Derivative assets
|
—
|
|
|
848
|
|
|
8
|
|
|
(404
|
)
|
|
452
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
—
|
|
|
519
|
|
|
2
|
|
|
(417
|
)
|
|
104
|
|
(1)
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
|
|
Level 3 Fair Value Measurements
Three Months Ended June 30, 2020 |
||||||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Private-
label
CMO
|
|
Asset-backed
securities
|
|
Loans held for investment
|
||||||||||||
Opening balance
|
$
|
165
|
|
|
$
|
39
|
|
|
$
|
2,937
|
|
|
$
|
2
|
|
|
$
|
69
|
|
|
$
|
26
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
7
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Included in OCI
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases/originations
|
—
|
|
|
—
|
|
|
264
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(168
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||||
Closing balance
|
$
|
172
|
|
|
$
|
40
|
|
|
$
|
3,102
|
|
|
$
|
5
|
|
|
$
|
56
|
|
|
$
|
25
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements
Three Months Ended June 30, 2019 |
||||||||||||||
|
MSRs
|
|
Derivative
instruments
|
|
Available-for-sale securities
|
|
Loans held for investment
|
||||||||
(dollar amounts in millions)
|
|
|
Municipal
securities
|
|
|||||||||||
Opening balance
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
3,237
|
|
|
$
|
29
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
(1
|
)
|
|
19
|
|
|
(1
|
)
|
|
—
|
|
||||
Included in OCI
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Purchases/originations
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
||||
Closing balance
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
3,202
|
|
|
$
|
28
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period
|
$
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
—
|
|
|
Level 3 Fair Value Measurements
Six Months Ended June 30, 2020 |
||||||||||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
|
||||||||||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
Private-
label
CMO
|
|
Asset-backed
securities
|
|
Loans held for investment
|
||||||||||||
Opening balance
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
2,999
|
|
|
$
|
2
|
|
|
$
|
48
|
|
|
$
|
26
|
|
Fair value election for servicing assets previously measured using the amortized method
|
205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (1)
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
(40
|
)
|
|
109
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Included in OCI
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases/originations
|
—
|
|
|
—
|
|
|
338
|
|
|
3
|
|
|
28
|
|
|
—
|
|
||||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(235
|
)
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
||||||
Closing balance
|
$
|
172
|
|
|
$
|
40
|
|
|
$
|
3,102
|
|
|
$
|
5
|
|
|
$
|
56
|
|
|
$
|
25
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(40
|
)
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Level 3 Fair Value Measurements
Six Months Ended June 30, 2019 |
||||||||||||||
|
|
|
|
|
Available-for-sale securities
|
|
Loans held for investment
|
||||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
|
|||||||||
Opening balance
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
3,165
|
|
|
$
|
30
|
|
Transfers out of Level 3 (1)
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
||||
Total gains/losses for the period:
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
(1
|
)
|
|
31
|
|
|
—
|
|
|
—
|
|
||||
Included in OCI
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
||||
Purchases/originations
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
—
|
|
||||
Closing balance
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
3,202
|
|
|
$
|
28
|
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date
|
$
|
(1
|
)
|
|
$
|
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
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
(1)
|
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
|
|
|
|
|
|
|
||||||
|
Level 3 Fair Value Measurements
Three Months Ended June 30, 2020 |
||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
||||||
Mortgage banking income
|
$
|
7
|
|
|
$
|
56
|
|
|
$
|
—
|
|
Interest and fee income
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
7
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
|
Level 3 Fair Value Measurements
Three Months Ended June 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
Six Months Ended June 30, 2020 |
||||||||||
|
|
|
|
|
Available-for-sale securities
|
||||||
(dollar amounts in millions)
|
MSRs
|
|
Derivative
instruments
|
|
Municipal
securities
|
||||||
Classification of gains and losses in earnings:
|
|
|
|
|
|
||||||
Mortgage banking income
|
$
|
(40
|
)
|
|
$
|
109
|
|
|
$
|
—
|
|
Interest and fee income
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Total
|
$
|
(40
|
)
|
|
$
|
109
|
|
|
$
|
(1
|
)
|
|
Level 3 Fair Value Measurements
Six Months Ended June 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
|
)
|
|
$
|
31
|
|
|
$
|
—
|
|
Interest and fee income
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
(1
|
)
|
|
$
|
31
|
|
|
$
|
—
|
|
|
June 30, 2020
|
||||||||||||||||||||||
(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
|
$
|
954
|
|
|
$
|
906
|
|
|
$
|
48
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Loans held for investment
|
92
|
|
|
97
|
|
|
(5
|
)
|
|
4
|
|
|
4
|
|
|
—
|
|
|
December 31, 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
|
$
|
781
|
|
|
$
|
755
|
|
|
$
|
26
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Loans held for investment
|
81
|
|
|
87
|
|
|
(6
|
)
|
|
3
|
|
|
4
|
|
|
(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) Six Months Ended June 30, 2020 |
|||||
Collateral-dependent loans
|
116
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
(38
|
)
|
Loans held for sale
|
76
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
(45
|
)
|
(1)
|
Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
|
|
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019 (1)
|
||||||||||||||
(dollar amounts in millions)
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Input
|
|
Range
|
|
Weighted Average
|
||||||
Measured at fair value on a recurring basis:
|
|
|
|
|
|||||||||||
MSRs
|
$
|
7
|
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
—
|
%
|
-
|
26%
|
|
8
|
%
|
|
|
|
|
|
Spread over forward interest rate swap rates
|
|
5
|
%
|
-
|
11%
|
|
8
|
%
|
||
Derivative assets
|
8
|
|
|
Consensus Pricing
|
|
Net market price
|
|
(2
|
)%
|
-
|
11%
|
|
2
|
%
|
|
|
|
|
|
|
Estimated Pull through %
|
|
2
|
%
|
-
|
100%
|
|
91
|
%
|
||
Municipal securities
|
2,999
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2
|
%
|
-
|
3%
|
|
2
|
%
|
|
Asset-backed securities
|
48
|
|
|
|
|
Cumulative default
|
|
—
|
%
|
-
|
39%
|
|
4
|
%
|
|
|
|
|
|
|
Loss given default
|
|
5
|
%
|
-
|
80%
|
|
24
|
%
|
||
Measured at fair value on a nonrecurring basis:
|
|
|
|
|
|||||||||||
MSRs
|
206
|
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
10
|
%
|
-
|
31%
|
|
12
|
%
|
|
|
|
|
|
|
Spread over forward interest rate swap rates
|
|
5
|
%
|
-
|
11%
|
|
9
|
%
|
||
Impaired loans
|
26
|
|
|
Appraisal value
|
|
NA
|
|
|
|
|
|
NA
|
|
(1)
|
Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
|
|
June 30, 2020
|
||||||||||||||||||
(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
|
$
|
6,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,375
|
|
|
$
|
6,375
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|
45
|
|
|||||
Available-for-sale securities
|
—
|
|
|
—
|
|
|
13,297
|
|
|
13,297
|
|
|
13,297
|
|
|||||
Held-to-maturity securities
|
9,416
|
|
|
—
|
|
|
—
|
|
|
9,416
|
|
|
9,856
|
|
|||||
Other securities
|
382
|
|
|
—
|
|
|
56
|
|
|
438
|
|
|
438
|
|
|||||
Loans held for sale
|
—
|
|
|
211
|
|
|
954
|
|
|
1,165
|
|
|
1,167
|
|
|||||
Net loans and leases (1)
|
78,345
|
|
|
—
|
|
|
92
|
|
|
78,437
|
|
|
79,502
|
|
|||||
Derivative assets
|
—
|
|
|
—
|
|
|
1,107
|
|
|
1,107
|
|
|
1,107
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
93,691
|
|
|
—
|
|
|
—
|
|
|
93,691
|
|
|
93,702
|
|
|||||
Short-term borrowings
|
146
|
|
|
—
|
|
|
—
|
|
|
146
|
|
|
146
|
|
|||||
Long-term debt
|
9,753
|
|
|
—
|
|
|
—
|
|
|
9,753
|
|
|
9,992
|
|
|||||
Derivative liabilities
|
—
|
|
|
—
|
|
|
172
|
|
|
172
|
|
|
172
|
|
|
December 31, 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
|
$
|
1,272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
|
$
|
1,272
|
|
Trading account securities
|
—
|
|
|
—
|
|
|
99
|
|
|
99
|
|
|
99
|
|
|||||
Available-for-sale securities
|
—
|
|
|
—
|
|
|
14,149
|
|
|
14,149
|
|
|
14,149
|
|
|||||
Held-to-maturity securities
|
9,070
|
|
|
—
|
|
|
—
|
|
|
9,070
|
|
|
9,186
|
|
|||||
Other securities
|
387
|
|
|
—
|
|
|
54
|
|
|
441
|
|
|
441
|
|
|||||
Loans held for sale
|
—
|
|
|
96
|
|
|
781
|
|
|
877
|
|
|
879
|
|
|||||
Net loans and leases (1)
|
74,540
|
|
|
—
|
|
|
81
|
|
|
74,621
|
|
|
75,177
|
|
|||||
Derivative assets
|
—
|
|
|
—
|
|
|
452
|
|
|
452
|
|
|
452
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
82,347
|
|
|
—
|
|
|
—
|
|
|
82,347
|
|
|
82,344
|
|
|||||
Short-term borrowings
|
2,606
|
|
|
—
|
|
|
—
|
|
|
2,606
|
|
|
2,606
|
|
|||||
Long-term debt
|
9,849
|
|
|
—
|
|
|
—
|
|
|
9,849
|
|
|
10,075
|
|
|||||
Derivative liabilities
|
—
|
|
|
—
|
|
|
104
|
|
|
104
|
|
|
104
|
|
(1)
|
Includes collateral-dependent loans.
|
|
Estimated Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
June 30, 2020
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
|
$
|
45
|
|
||
Available-for-sale securities
|
8
|
|
|
10,126
|
|
|
3,163
|
|
|
|
13,297
|
|
||||||
Held-to-maturity securities
|
—
|
|
|
9,856
|
|
|
—
|
|
|
|
9,856
|
|
||||||
Other securities (2)
|
56
|
|
|
—
|
|
|
—
|
|
|
|
56
|
|
||||||
Loans held for sale
|
—
|
|
|
954
|
|
|
213
|
|
|
|
1,167
|
|
||||||
Net loans and direct financing leases
|
—
|
|
|
67
|
|
|
79,435
|
|
|
|
79,502
|
|
||||||
Derivative assets
|
—
|
|
|
2,278
|
|
|
43
|
|
|
$
|
(1,214
|
)
|
1,107
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
—
|
|
|
90,153
|
|
|
3,549
|
|
|
|
93,702
|
|
||||||
Short-term borrowings
|
—
|
|
|
—
|
|
|
146
|
|
|
|
146
|
|
||||||
Long-term debt
|
—
|
|
|
9,374
|
|
|
618
|
|
|
|
9,992
|
|
||||||
Derivative liabilities
|
—
|
|
|
1,276
|
|
|
3
|
|
|
(1,107
|
)
|
172
|
|
|
Estimated Fair Value Measurements at Reporting Date Using
|
|
Netting Adjustments (1)
|
December 31, 2019
|
||||||||||||||
(dollar amounts in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||||
Trading account securities
|
$
|
30
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
|
$
|
99
|
|
||
Available-for-sale securities
|
10
|
|
|
11,090
|
|
|
3,049
|
|
|
|
14,149
|
|
||||||
Held-to-maturity securities
|
—
|
|
|
9,186
|
|
|
—
|
|
|
|
9,186
|
|
||||||
Other securities (2)
|
54
|
|
|
—
|
|
|
—
|
|
|
|
54
|
|
||||||
Loans held for sale
|
—
|
|
|
781
|
|
|
98
|
|
|
|
879
|
|
||||||
Net loans and direct financing leases
|
—
|
|
|
55
|
|
|
75,122
|
|
|
|
75,177
|
|
||||||
Derivative assets
|
—
|
|
|
848
|
|
|
8
|
|
|
$
|
(404
|
)
|
452
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
—
|
|
|
76,790
|
|
|
5,554
|
|
|
|
82,344
|
|
||||||
Short-term borrowings
|
—
|
|
|
—
|
|
|
2,606
|
|
|
|
2,606
|
|
||||||
Long-term debt
|
—
|
|
|
9,439
|
|
|
636
|
|
|
|
10,075
|
|
||||||
Derivative liabilities
|
—
|
|
|
519
|
|
|
2
|
|
|
(417
|
)
|
104
|
|
(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.
|
(2)
|
Excludes securities without readily determinable fair values.
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
(dollar amounts in millions)
|
Notional Value
|
|
Asset
|
|
Liability
|
|
Notional Value
|
|
Asset
|
|
Liability
|
||||||||||||
Derivatives designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
28,819
|
|
|
$
|
975
|
|
|
$
|
86
|
|
|
$
|
25,927
|
|
|
$
|
256
|
|
|
$
|
36
|
|
Derivatives not designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
32,025
|
|
|
1,122
|
|
|
951
|
|
|
27,614
|
|
|
420
|
|
|
314
|
|
||||||
Foreign exchange contracts
|
2,093
|
|
|
27
|
|
|
27
|
|
|
2,173
|
|
|
19
|
|
|
18
|
|
||||||
Commodities contracts
|
2,278
|
|
|
197
|
|
|
193
|
|
|
3,020
|
|
|
155
|
|
|
152
|
|
||||||
Equity contracts
|
478
|
|
|
—
|
|
|
22
|
|
|
427
|
|
|
6
|
|
|
1
|
|
||||||
Total Contracts
|
$
|
65,693
|
|
|
$
|
2,321
|
|
|
$
|
1,279
|
|
|
$
|
59,161
|
|
|
$
|
856
|
|
|
$
|
521
|
|
|
|
Location of Gain or (Loss) Recognized in Income
on Derivative
|
|
Amount of Gain or (Loss) Recognized in Income on Derivative
|
||||||||||||||
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|||||||||||||
(dollar amounts in millions)
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Customer
|
|
Capital markets fees
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
29
|
|
|
$
|
22
|
|
Mortgage Banking
|
|
Mortgage banking income
|
|
6
|
|
|
22
|
|
|
63
|
|
|
34
|
|
||||
Interest Rate Floors
|
|
Other noninterest income
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Foreign exchange contracts
|
|
Capital markets fees
|
|
6
|
|
|
7
|
|
|
12
|
|
|
15
|
|
||||
Commodities contracts
|
|
Capital markets fees
|
|
1
|
|
|
2
|
|
|
3
|
|
|
(4
|
)
|
||||
Equity contracts
|
|
Other noninterest expense
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
||||
Total
|
|
|
|
$
|
24
|
|
|
$
|
48
|
|
|
$
|
104
|
|
|
$
|
71
|
|
|
June 30, 2020
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Loans
|
$
|
—
|
|
|
$
|
18,375
|
|
|
$
|
18,375
|
|
Investment securities
|
2,950
|
|
|
—
|
|
|
2,950
|
|
|||
Long-term debt
|
7,494
|
|
|
—
|
|
|
7,494
|
|
|||
Total notional value at June 30, 2020
|
$
|
10,444
|
|
|
$
|
18,375
|
|
|
$
|
28,819
|
|
|
|
|
|
|
|
||||||
|
December 31, 2019
|
||||||||||
(dollar amounts in millions)
|
Fair Value Hedges
|
|
Cash Flow Hedges
|
|
Total
|
||||||
Instruments associated with:
|
|
|
|
|
|
||||||
Loans
|
$
|
—
|
|
|
$
|
18,375
|
|
|
$
|
18,375
|
|
Investment securities
|
—
|
|
|
12
|
|
|
12
|
|
|||
Long-term debt
|
7,540
|
|
|
—
|
|
|
7,540
|
|
|||
Total notional value at December 31, 2019
|
$
|
7,540
|
|
|
$
|
18,387
|
|
|
$
|
25,927
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||||
Change in fair value of interest rate swaps hedging investment securities (1)
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Change in fair value of hedged investment securities (1)
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Change in fair value of interest rate swaps hedging long-term debt (2)
|
(5
|
)
|
|
88
|
|
|
196
|
|
|
129
|
|
||||
Change in fair value of hedged long term debt (2)
|
(4
|
)
|
|
(88
|
)
|
|
(195
|
)
|
|
(129
|
)
|
(1)
|
Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Condensed Consolidated Statements of Income
|
(2)
|
Recognized in Interest expense—long-term debt in the Unaudited Condensed Consolidated Statements of Income.
|
|
Amortized Cost
|
|
Cumulative Amount of Fair Value Hedging Adjustment To Hedged Items
|
||||||||||||
(dollar amounts in millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||
Investment securities (1)
|
$
|
7,573
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Long-term debt
|
7,242
|
|
|
7,578
|
|
|
309
|
|
|
114
|
|
||||
Total
|
$
|
14,815
|
|
|
$
|
7,578
|
|
|
$
|
310
|
|
|
$
|
114
|
|
(1)
|
Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of June 30, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $7.6 billion, the cumulative basis adjustments associated with these hedging relationships was $1.0 million, and the amounts of the designated hedged items were $3.0 billion.
|
(dollar amounts in millions)
|
June 30, 2020
|
December 31, 2019
|
|||||||
Notional value
|
$
|
540
|
|
|
$
|
778
|
|
||
Trading assets
|
69
|
|
|
19
|
|
||||
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||
(dollar amounts in millions)
|
2020
|
2019
|
|
2020
|
2019
|
||||||||
Trading gains
|
$
|
6
|
|
$
|
18
|
|
|
$
|
63
|
|
$
|
25
|
|
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
|
||||||||||||||
June 30, 2020
|
Derivatives
|
$
|
1,279
|
|
|
$
|
(1,107
|
)
|
|
$
|
172
|
|
|
$
|
(40
|
)
|
|
$
|
(28
|
)
|
|
$
|
104
|
|
December 31, 2019
|
Derivatives
|
521
|
|
|
(417
|
)
|
|
104
|
|
|
—
|
|
|
(75
|
)
|
|
29
|
|
|
June 30, 2020
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
Trust Preferred Securities
|
$
|
14
|
|
|
$
|
252
|
|
|
$
|
—
|
|
Affordable Housing Tax Credit Partnerships
|
858
|
|
|
432
|
|
|
858
|
|
|||
Other Investments
|
220
|
|
|
59
|
|
|
220
|
|
|||
Total
|
$
|
1,092
|
|
|
$
|
743
|
|
|
$
|
1,078
|
|
|
December 31, 2019
|
||||||||||
(dollar amounts in millions)
|
Total Assets
|
|
Total Liabilities
|
|
Maximum Exposure to Loss
|
||||||
Trust Preferred Securities
|
$
|
14
|
|
|
$
|
252
|
|
|
$
|
—
|
|
Affordable Housing Tax Credit Partnerships
|
727
|
|
|
332
|
|
|
727
|
|
|||
Other Investments
|
179
|
|
|
63
|
|
|
179
|
|
|||
Total
|
$
|
920
|
|
|
$
|
647
|
|
|
$
|
906
|
|
(dollar amounts in millions)
|
Rate
|
|
Principal amount of
subordinated note/
debenture issued to trust (1)
|
|
Investment in
unconsolidated
subsidiary
|
|||||
Huntington Capital I
|
1.00
|
%
|
(2)
|
$
|
70
|
|
|
$
|
6
|
|
Huntington Capital II
|
0.93
|
|
(3)
|
32
|
|
|
3
|
|
||
Sky Financial Capital Trust III
|
1.70
|
|
(4)
|
72
|
|
|
2
|
|
||
Sky Financial Capital Trust IV
|
1.70
|
|
(4)
|
74
|
|
|
2
|
|
||
Camco Financial Trust
|
1.63
|
|
(5)
|
4
|
|
|
1
|
|
||
Total
|
|
|
$
|
252
|
|
|
$
|
14
|
|
(1)
|
Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.
|
(2)
|
Variable effective rate at June 30, 2020, based on three-month LIBOR +0.70%.
|
(3)
|
Variable effective rate at June 30, 2020, based on three-month LIBOR +0.625%.
|
(4)
|
Variable effective rate at June 30, 2020, based on three-month LIBOR +1.40%.
|
(5)
|
Variable effective rate at June 30, 2020, based on three-month LIBOR +1.33%.
|
(dollar amounts in millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Affordable housing tax credit investments
|
$
|
1,423
|
|
|
$
|
1,242
|
|
Less: amortization
|
(565
|
)
|
|
(515
|
)
|
||
Net affordable housing tax credit investments
|
$
|
858
|
|
|
$
|
727
|
|
Unfunded commitments
|
$
|
432
|
|
|
$
|
332
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(dollar amounts in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Tax credits and other tax benefits recognized
|
|
$
|
30
|
|
|
$
|
26
|
|
|
$
|
59
|
|
|
$
|
53
|
|
Proportional amortization expense included in provision for income taxes
|
|
25
|
|
|
22
|
|
|
50
|
|
|
44
|
|
(dollar amounts in millions)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Contract amount representing credit risk
|
|
|
|
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial
|
$
|
20,283
|
|
|
$
|
18,326
|
|
Consumer
|
14,735
|
|
|
14,831
|
|
||
Commercial real estate
|
1,261
|
|
|
1,364
|
|
||
Standby letters of credit
|
591
|
|
|
587
|
|
||
Commercial letters of credit
|
20
|
|
|
8
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
368
|
|
|
$
|
240
|
|
|
$
|
100
|
|
|
$
|
40
|
|
|
$
|
44
|
|
|
$
|
792
|
|
Provision (benefit) for credit losses
|
31
|
|
|
226
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
327
|
|
||||||
Noninterest income
|
218
|
|
|
85
|
|
|
2
|
|
|
54
|
|
|
32
|
|
|
391
|
|
||||||
Noninterest expense
|
422
|
|
|
136
|
|
|
34
|
|
|
62
|
|
|
21
|
|
|
675
|
|
||||||
Provision (benefit) for income taxes
|
27
|
|
|
(7
|
)
|
|
—
|
|
|
6
|
|
|
5
|
|
|
31
|
|
||||||
Net income (loss)
|
$
|
106
|
|
|
$
|
(30
|
)
|
|
$
|
(2
|
)
|
|
$
|
26
|
|
|
$
|
50
|
|
|
$
|
150
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
464
|
|
|
$
|
264
|
|
|
$
|
96
|
|
|
$
|
52
|
|
|
$
|
(64
|
)
|
|
$
|
812
|
|
Provision (benefit) for credit losses
|
30
|
|
|
24
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Noninterest income
|
198
|
|
|
89
|
|
|
4
|
|
|
49
|
|
|
34
|
|
|
374
|
|
||||||
Noninterest expense
|
427
|
|
|
145
|
|
|
38
|
|
|
67
|
|
|
23
|
|
|
700
|
|
||||||
Provision (benefit) for income taxes
|
43
|
|
|
39
|
|
|
12
|
|
|
7
|
|
|
(38
|
)
|
|
63
|
|
||||||
Net income (loss)
|
$
|
162
|
|
|
$
|
145
|
|
|
$
|
45
|
|
|
$
|
27
|
|
|
$
|
(15
|
)
|
|
$
|
364
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
Income Statements
|
Consumer & Business Banking
|
|
Commercial Banking
|
|
Vehicle Finance
|
|
RBHPCG
|
|
Treasury / Other
|
|
Huntington Consolidated
|
||||||||||||
(dollar amounts in millions)
|
|
|
|
|
|
||||||||||||||||||
2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
733
|
|
|
$
|
472
|
|
|
$
|
206
|
|
|
$
|
83
|
|
|
$
|
88
|
|
|
$
|
1,582
|
|
Provision (benefit) for credit losses
|
114
|
|
|
523
|
|
|
131
|
|
|
—
|
|
|
—
|
|
|
768
|
|
||||||
Noninterest income
|
430
|
|
|
170
|
|
|
5
|
|
|
105
|
|
|
42
|
|
|
752
|
|
||||||
Noninterest expense
|
840
|
|
|
265
|
|
|
69
|
|
|
124
|
|
|
29
|
|
|
1,327
|
|
||||||
Provision (benefit) for income taxes
|
44
|
|
|
(31
|
)
|
|
2
|
|
|
14
|
|
|
12
|
|
|
41
|
|
||||||
Net income (loss)
|
$
|
165
|
|
|
$
|
(115
|
)
|
|
$
|
9
|
|
|
$
|
50
|
|
|
$
|
89
|
|
|
$
|
198
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
936
|
|
|
$
|
536
|
|
|
$
|
191
|
|
|
$
|
104
|
|
|
$
|
(133
|
)
|
|
$
|
1,634
|
|
Provision (benefit) for credit losses
|
48
|
|
|
67
|
|
|
14
|
|
|
(3
|
)
|
|
—
|
|
|
126
|
|
||||||
Noninterest income
|
372
|
|
|
165
|
|
|
6
|
|
|
100
|
|
|
50
|
|
|
693
|
|
||||||
Noninterest expense
|
827
|
|
|
288
|
|
|
75
|
|
|
130
|
|
|
33
|
|
|
1,353
|
|
||||||
Provision (benefit) for income taxes
|
91
|
|
|
73
|
|
|
23
|
|
|
16
|
|
|
(77
|
)
|
|
126
|
|
||||||
Net income (loss)
|
$
|
342
|
|
|
$
|
273
|
|
|
$
|
85
|
|
|
$
|
61
|
|
|
$
|
(39
|
)
|
|
$
|
722
|
|
|
Assets at
|
|
Deposits at
|
||||||||||||
(dollar amounts in millions)
|
June 30,
2020 |
|
December 31,
2019 |
|
June 30,
2020 |
|
December 31,
2019 |
||||||||
Consumer & Business Banking
|
$
|
30,697
|
|
|
$
|
25,073
|
|
|
$
|
59,202
|
|
|
$
|
51,675
|
|
Commercial Banking
|
35,323
|
|
|
34,337
|
|
|
22,041
|
|
|
20,762
|
|
||||
Vehicle Finance
|
19,137
|
|
|
20,155
|
|
|
824
|
|
|
376
|
|
||||
RBHPCG
|
6,855
|
|
|
6,665
|
|
|
6,834
|
|
|
6,370
|
|
||||
Treasury / Other
|
26,413
|
|
|
22,772
|
|
|
4,790
|
|
|
3,164
|
|
||||
Total
|
$
|
118,425
|
|
|
$
|
109,002
|
|
|
$
|
93,691
|
|
|
$
|
82,347
|
|
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)
|
|||||
April 1, 2020 to April 30, 2020
|
—
|
|
|
$
|
—
|
|
|
$
|
161,349,865
|
|
May 1, 2020 to May 31, 2020
|
—
|
|
|
—
|
|
|
161,349,865
|
|
||
June 1, 2020 to June 30, 2020
|
—
|
|
|
—
|
|
|
161,349,865
|
|
||
Total
|
—
|
|
|
$
|
—
|
|
|
$
|
161,349,865
|
|
(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 June 30, 2020, 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:
|
July 31, 2020
|
|
/s/ Stephen D. Steinour
|
|
|
|
Stephen D. Steinour
|
|
|
|
Chairman, President, and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
Date:
|
July 31, 2020
|
|
/s/ Zachary Wasserman
|
|
|
|
Zachary Wasserman
|
|
|
|
Chief Financial Officer
(Principal Financial 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):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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July 31, 2020
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/s/
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Stephen D. Steinour
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Stephen D. Steinour
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Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Huntington Bancshares Incorporated;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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July 31, 2020
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/s/
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Zachary Wasserman
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Zachary Wasserman
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/
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Stephen D. Steinour
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Stephen D. Steinour
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Chief Executive Officer
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July 31, 2020
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/
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Zachary Wasserman
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Zachary Wasserman
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Chief Financial Officer
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July 31, 2020
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