Maryland
|
|
1-34073
|
|
31-0724920
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
Huntington Center
41 South High Street
Columbus, Ohio
|
|
43287
|
(Address of principal executive offices)
|
|
(Zip Code)
|
ý
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits.
|
|
|
|
HUNTINGTON BANCSHARES INCORPORATED
|
||
|
|
|
|
|
|
Date:
|
April 20, 2016
|
|
By:
|
|
/s/ Howell D. McCullough III
|
|
|
|
|
|
Howell D. McCullough III
|
|
|
|
|
|
Chief Financial Officer
|
Exhibit
No.
|
|
Description
|
|
|
|
Exhibit 99.1
|
|
News release of Huntington Bancshares Incorporated, dated April 20, 2016.
|
|
|
|
Exhibit 99.2
|
|
Quarterly Financial Supplement, March 2016.
|
|
|
|
•
|
$47 million
, or
7%
, increase in fully-taxable equivalent revenue, comprised of a
$37 million
, or
8%
, increase in fully-taxable equivalent net interest income and a
$10 million
, or
4%
,
increase
in noninterest income
|
•
|
Net interest margin of
3.11%
, a decrease of
4
basis points
|
•
|
$32 million
, or
7%
,
increase
in noninterest expense, including $6 million of FirstMerit acquisition-related expense during the 2016 first quarter and $3 million of Huntington Technology Finance merger-related expense during the year-ago quarter
|
•
|
$2.8 billion
, or
6%
,
increase
in average loans and leases, primarily driven by a
$1.5 billion
, or
8%
,
increase
in Commercial and Industrial loans and a
$0.9 billion
, or
11%
,
increase
in Automobile loans
|
•
|
$2.1 billion
, or
17%
, increase in average securities, including a net increase of $0.7 billion of direct purchase municipal instruments in our Commercial Banking segment
|
•
|
$2.6 billion
, or
5%
,
increase
in average core deposits, driven by a
$1.6 billion
, or
26%
, increase in interest-bearing demand deposits and a
$1.1 billion
, or
7%
,
increase
in noninterest-bearing demand deposits
|
•
|
Net charge-offs declined to
0.07%
of average loans and leases, down from
0.20%
, benefiting from a large Commercial Real Estate recovery
|
•
|
$0.50, or
8%
, increase in tangible book value per common share (TBVPS) to
$7.12
; end of period dividend yield of 2.9%
|
|
2016
|
|
2015
|
||||||||||||||||
($ in millions, except per share data)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|||||||||||
Net Income
|
$
|
171
|
|
|
$
|
178
|
|
|
$
|
153
|
|
|
$
|
196
|
|
|
$
|
166
|
|
Diluted earnings per common share
|
0.20
|
|
|
0.21
|
|
|
0.18
|
|
|
0.23
|
|
|
0.19
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
0.96
|
%
|
|
1.00
|
%
|
|
0.87
|
%
|
|
1.16
|
%
|
|
1.02
|
%
|
|||||
Return on average common equity
|
10.4
|
|
|
10.8
|
|
|
9.3
|
|
|
12.3
|
|
|
10.6
|
|
|||||
Return on average tangible common equity
|
11.9
|
|
|
12.4
|
|
|
10.7
|
|
|
14.4
|
|
|
12.2
|
|
|||||
Net interest margin
|
3.11
|
|
|
3.09
|
|
|
3.16
|
|
|
3.20
|
|
|
3.15
|
|
|||||
Efficiency ratio
|
64.6
|
|
|
63.7
|
|
|
69.1
|
|
|
61.7
|
|
|
63.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share
|
$
|
7.12
|
|
|
$
|
6.91
|
|
|
$
|
6.88
|
|
|
$
|
6.71
|
|
|
$
|
6.62
|
|
Cash dividends declared per common share
|
0.07
|
|
|
0.07
|
|
|
0.06
|
|
|
0.06
|
|
|
0.06
|
|
|||||
Average diluted shares outstanding (000’s)
|
808,349
|
|
|
810,143
|
|
|
814,326
|
|
|
820,238
|
|
|
823,809
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average earning assets
|
$
|
66,234
|
|
|
$
|
64,961
|
|
|
$
|
63,323
|
|
|
$
|
62,569
|
|
|
$
|
61,193
|
|
Average loans and leases
(1)
|
50,618
|
|
|
49,827
|
|
|
49,046
|
|
|
47,899
|
|
|
47,780
|
|
|||||
Average core deposits
|
51,363
|
|
|
51,585
|
|
|
50,891
|
|
|
49,192
|
|
|
48,777
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity / tangible assets ratio
|
7.89
|
%
|
|
7.82
|
%
|
|
7.89
|
%
|
|
7.92
|
%
|
|
7.95
|
%
|
|||||
Common equity Tier 1 risk-based capital ratio
|
9.73
|
|
|
9.79
|
|
|
9.72
|
|
|
9.65
|
|
|
9.51
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NCOs as a % of average loans and leases
|
0.07
|
%
|
|
0.18
|
%
|
|
0.13
|
%
|
|
0.21
|
%
|
|
0.20
|
%
|
|||||
NAL ratio
|
0.97
|
|
|
0.74
|
|
|
0.72
|
|
|
0.75
|
|
|
0.76
|
|
|||||
ACL as a % of total loans and leases
|
1.34
|
|
|
1.33
|
|
|
1.32
|
|
|
1.34
|
|
|
1.38
|
|
(1)
|
Excludes loans held for sale; $1 billion of automobile loans were moved to held for sale at end of 2015 first quarter.
|
(1)
|
Favorable (unfavorable) impact on net income.
|
(2)
|
EPS reflected on a fully diluted basis.
|
(3)
|
Noninterest income and noninterest expense was recorded related to the integration of Huntington Technology Finance (HTF) and the sale of Huntington Asset Advisors (HAA), Huntington Asset Services (HASI), and Unified Financial Securities (Unified), resulting in a net gain less than $1 million.
|
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||||
($ in millions)
|
First
Quarter |
|
Fourth
Quarter |
|
Third
Quarter |
|
Second
Quarter |
|
First
Quarter |
|
Change (%)
|
||||||||||||||
LQ
|
|
YOY
|
|||||||||||||||||||||||
Net interest income
|
$
|
503
|
|
|
$
|
497
|
|
|
$
|
495
|
|
|
$
|
491
|
|
|
$
|
468
|
|
|
1
|
%
|
|
7
|
%
|
FTE adjustment
|
9
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
13
|
|
|
13
|
|
|||||
Net interest income - FTE
|
512
|
|
|
505
|
|
|
504
|
|
|
499
|
|
|
475
|
|
|
1
|
|
|
8
|
|
|||||
Noninterest income
|
242
|
|
|
272
|
|
|
253
|
|
|
282
|
|
|
232
|
|
|
(11
|
)
|
|
4
|
|
|||||
Total revenue - FTE
|
$
|
754
|
|
|
$
|
778
|
|
|
$
|
757
|
|
|
$
|
780
|
|
|
$
|
707
|
|
|
(3
|
)%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Change bp
|
|||||||||
Yield / Cost
|
|
|
|
|
|
|
|
|
|
|
LQ
|
|
YOY
|
|||||||
Total earning assets
|
3.44
|
%
|
|
3.37
|
%
|
|
3.42
|
%
|
|
3.45
|
%
|
|
3.38
|
%
|
|
7
|
|
|
6
|
|
Total loans and leases
|
3.67
|
|
|
3.59
|
|
|
3.65
|
|
|
3.65
|
|
|
3.56
|
|
|
8
|
|
|
11
|
|
Total securities
|
2.56
|
|
|
2.58
|
|
|
2.59
|
|
|
2.65
|
|
|
2.57
|
|
|
(2
|
)
|
|
(1
|
)
|
Total interest-bearing liabilities
|
0.46
|
|
|
0.41
|
|
|
0.39
|
|
|
0.36
|
|
|
0.32
|
|
|
5
|
|
|
14
|
|
Total interest-bearing deposits
|
0.24
|
|
|
0.23
|
|
|
0.22
|
|
|
0.22
|
|
|
0.22
|
|
|
1
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest rate spread
|
2.98
|
|
|
2.96
|
|
|
3.03
|
|
|
3.09
|
|
|
3.06
|
|
|
2
|
|
|
(8
|
)
|
Impact of noninterest-bearing funds on margin
|
0.13
|
|
|
0.13
|
|
|
0.13
|
|
|
0.11
|
|
|
0.09
|
|
|
—
|
|
|
4
|
|
Net interest margin
|
3.11
|
%
|
|
3.09
|
%
|
|
3.16
|
%
|
|
3.20
|
%
|
|
3.15
|
%
|
|
2
|
|
|
(4
|
)
|
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||||
($ in billions)
|
First
Quarter |
|
Fourth
Quarter |
|
Third
Quarter |
|
Second
Quarter |
|
First
Quarter |
|
Change (%)
|
||||||||||||||
LQ
|
|
YOY
|
|||||||||||||||||||||||
Commercial and industrial
|
$
|
20.6
|
|
|
$
|
20.2
|
|
|
$
|
19.8
|
|
|
$
|
19.8
|
|
|
$
|
19.1
|
|
|
2
|
%
|
|
8
|
%
|
Commercial real estate
|
5.2
|
|
|
5.3
|
|
|
5.3
|
|
|
5.2
|
|
|
5.2
|
|
|
(1
|
)
|
|
1
|
|
|||||
Total commercial
|
25.9
|
|
|
25.5
|
|
|
25.1
|
|
|
25.0
|
|
|
24.3
|
|
|
2
|
|
|
6
|
|
|||||
Automobile
|
9.7
|
|
|
9.3
|
|
|
8.9
|
|
|
8.1
|
|
|
8.8
|
|
|
5
|
|
|
11
|
|
|||||
Home equity
|
8.4
|
|
|
8.5
|
|
|
8.5
|
|
|
8.5
|
|
|
8.5
|
|
|
—
|
|
|
(1
|
)
|
|||||
Residential mortgage
|
6.0
|
|
|
6.1
|
|
|
6.0
|
|
|
5.9
|
|
|
5.8
|
|
|
(1
|
)
|
|
4
|
|
|||||
Other consumer
|
0.6
|
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
5
|
|
|
35
|
|
|||||
Total consumer
|
24.8
|
|
|
24.4
|
|
|
23.9
|
|
|
22.9
|
|
|
23.5
|
|
|
2
|
|
|
5
|
|
|||||
Total loans and leases
|
50.6
|
|
|
49.8
|
|
|
49.0
|
|
|
47.9
|
|
|
47.8
|
|
|
2
|
|
|
6
|
|
|||||
Total securities
|
15.1
|
|
|
14.5
|
|
|
13.7
|
|
|
13.3
|
|
|
12.9
|
|
|
4
|
|
|
17
|
|
|||||
Held-for-sale and other earning assets
|
0.5
|
|
|
0.6
|
|
|
0.6
|
|
|
1.4
|
|
|
0.5
|
|
|
(17
|
)
|
|
—
|
|
|||||
Total earning assets
|
$
|
66.2
|
|
|
$
|
65.0
|
|
|
$
|
63.3
|
|
|
$
|
62.6
|
|
|
$
|
61.2
|
|
|
2
|
%
|
|
8
|
%
|
•
|
$2.1 billion
, or
17%
, increase in average securities, primarily reflecting the reinvestment of cash flows and additional investment in Liquidity Coverage Ratio (LCR) Level 1 qualifying securities and a $0.6 billion increase in direct purchase municipal instruments in our Commercial Banking segment.
|
•
|
$1.5 billion
, or
8%
,
increase
in average Commercial and Industrial (C&I) loans and leases, primarily reflecting the $0.8 billion of equipment finance leases acquired in the HTF transaction at the end of the 2015 first quarter, as well as organic growth in equipment finance leases, automobile dealer floorplan lending, and corporate banking.
|
•
|
$0.9 billion
, or
11%
,
increase
in average Automobile loans. The 2016 first quarter represented the ninth consecutive quarter of greater than $1.0 billion in Automobile loan originations, while maintaining our underwriting consistency and discipline.
|
|
2016
|
|
2015
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in billions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Demand deposits - noninterest-bearing
|
$
|
16.3
|
|
|
$
|
17.2
|
|
|
$
|
17.0
|
|
|
$
|
15.9
|
|
|
$
|
15.3
|
|
|
(5
|
)%
|
|
7
|
%
|
Demand deposits - interest-bearing
|
7.8
|
|
|
6.9
|
|
|
6.6
|
|
|
6.6
|
|
|
6.2
|
|
|
12
|
|
|
26
|
|
|||||
Total demand deposits
|
24.1
|
|
|
24.1
|
|
|
23.6
|
|
|
22.5
|
|
|
21.5
|
|
|
—
|
|
|
12
|
|
|||||
Money market deposits
|
19.7
|
|
|
19.8
|
|
|
19.5
|
|
|
18.8
|
|
|
19.4
|
|
|
(1
|
)
|
|
2
|
|
|||||
Savings and other domestic deposits
|
5.3
|
|
|
5.2
|
|
|
5.2
|
|
|
5.3
|
|
|
5.2
|
|
|
3
|
|
|
3
|
|
|||||
Core certificates of deposit
|
2.3
|
|
|
2.4
|
|
|
2.5
|
|
|
2.6
|
|
|
2.8
|
|
|
(7
|
)
|
|
(19
|
)
|
|||||
Total core deposits
|
51.4
|
|
|
51.5
|
|
|
50.8
|
|
|
49.2
|
|
|
48.9
|
|
|
—
|
|
|
5
|
|
|||||
Other domestic deposits of $250,000 or more
|
0.5
|
|
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
7
|
|
|
133
|
|
|||||
Brokered deposits and negotiable CDs
|
2.9
|
|
|
2.9
|
|
|
2.8
|
|
|
2.7
|
|
|
2.6
|
|
|
(1
|
)
|
|
11
|
|
|||||
Other deposits
|
0.3
|
|
|
0.4
|
|
|
0.5
|
|
|
0.6
|
|
|
0.6
|
|
|
(34
|
)
|
|
(53
|
)
|
|||||
Total deposits
|
$
|
55.1
|
|
|
$
|
55.2
|
|
|
$
|
54.3
|
|
|
$
|
52.7
|
|
|
$
|
52.3
|
|
|
(1
|
)%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
1.1
|
|
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
$
|
2.2
|
|
|
$
|
1.9
|
|
|
118
|
%
|
|
(39
|
)%
|
Long-term debt
|
7.2
|
|
|
6.8
|
|
|
6.0
|
|
|
5.1
|
|
|
4.4
|
|
|
6
|
|
|
65
|
|
|||||
Total debt
|
$
|
8.3
|
|
|
$
|
7.3
|
|
|
$
|
6.8
|
|
|
$
|
7.3
|
|
|
$
|
6.3
|
|
|
14
|
%
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total interest-bearing liabilities
|
$
|
47.0
|
|
|
$
|
45.5
|
|
|
$
|
44.3
|
|
|
$
|
44.0
|
|
|
$
|
43.1
|
|
|
3
|
%
|
|
9
|
%
|
•
|
$2.1 billion, or 34%, increase in average total debt, reflecting the issuance of $4.1 billion of senior debt over the past five quarters, including $1.0 billion issued during the 2016 first quarter, as well as debt assumed in the HTF acquisition at the end of the 2015 first quarter, partially offset by a
$0.7 billion
, or
39%
, decrease in average short-term borrowings.
|
•
|
$2.7 billion, or
12%
, increase in average demand deposits, including a
$1.6 billion
, or
26%
, increase in average interest-bearing demand deposits and a
$1.1 billion
, or
7%
, increase in average noninterest-bearing demand deposits. The increase in average total demand deposits was comprised of a $1.7 billion, or 13%, increase in average commercial demand deposits and a $0.9 billion, or 12%, increase in average consumer demand deposits.
|
•
|
$0.5 billion
, or
19%
, decrease in average core certificates of deposit due to the continued strategic focus on changing the funding sources to low- and no-cost demand, savings, and money market deposits.
|
|
2016
|
|
2015
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Service charges on deposit accounts
|
$
|
70
|
|
|
$
|
73
|
|
|
$
|
75
|
|
|
$
|
70
|
|
|
$
|
62
|
|
|
(4
|
)%
|
|
13
|
%
|
Cards and payment processing income
|
36
|
|
|
38
|
|
|
37
|
|
|
36
|
|
|
33
|
|
|
(3
|
)
|
|
12
|
|
|||||
Mortgage banking income
|
19
|
|
|
31
|
|
|
19
|
|
|
39
|
|
|
23
|
|
|
(41
|
)
|
|
(19
|
)
|
|||||
Trust services
|
23
|
|
|
25
|
|
|
25
|
|
|
27
|
|
|
29
|
|
|
(10
|
)
|
|
(21
|
)
|
|||||
Insurance income
|
16
|
|
|
16
|
|
|
16
|
|
|
18
|
|
|
16
|
|
|
4
|
|
|
2
|
|
|||||
Brokerage income
|
16
|
|
|
14
|
|
|
15
|
|
|
15
|
|
|
16
|
|
|
7
|
|
|
—
|
|
|||||
Capital markets fees
|
13
|
|
|
14
|
|
|
13
|
|
|
13
|
|
|
14
|
|
|
(6
|
)
|
|
(6
|
)
|
|||||
Bank owned life insurance income
|
14
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
1
|
|
|
4
|
|
|||||
Gain on sale of loans
|
5
|
|
|
10
|
|
|
6
|
|
|
12
|
|
|
5
|
|
|
(47
|
)
|
|
18
|
|
|||||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100
|
)
|
|
NM
|
|
|||||
Other income
|
30
|
|
|
37
|
|
|
35
|
|
|
39
|
|
|
22
|
|
|
(19
|
)
|
|
37
|
|
|||||
Total noninterest income
|
$
|
242
|
|
|
$
|
272
|
|
|
$
|
253
|
|
|
$
|
282
|
|
|
$
|
232
|
|
|
(11
|
)%
|
|
4
|
%
|
•
|
$8 million
, or
37%
,
increase
in other income, primarily reflecting equipment operating lease income related to HTF.
|
•
|
$8 million
, or
13%
,
increase
in service charges on deposit accounts, reflecting the benefit of continued new customer acquisition including a 4% increase in consumer checking households and a 2% increase in commercial checking relationships.
|
•
|
$4 million
, or
12%
,
increase
in cards and payment processing income, due to higher card related income and underlying customer growth.
|
•
|
$6 million
, or
21%
,
decrease
in trust services, primarily related to the sale of HAA, HASI, and Unified, and the transition of the remaining Huntington Funds at the end of the 2015 fourth quarter.
|
•
|
$4 million
, or
19%
,
decrease
in mortgage banking income, primarily as a result of a 5% reduction in mortgage volume and a $2 million impact from net MSR activity.
|
|
2016
|
|
2015
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
285
|
|
|
$
|
289
|
|
|
$
|
286
|
|
|
$
|
282
|
|
|
$
|
265
|
|
|
(1
|
)%
|
|
8
|
%
|
Outside data processing and other services
|
62
|
|
|
64
|
|
|
59
|
|
|
59
|
|
|
51
|
|
|
(3
|
)
|
|
22
|
|
|||||
Equipment
|
33
|
|
|
32
|
|
|
31
|
|
|
32
|
|
|
30
|
|
|
3
|
|
|
8
|
|
|||||
Net occupancy
|
31
|
|
|
33
|
|
|
29
|
|
|
29
|
|
|
31
|
|
|
(4
|
)
|
|
1
|
|
|||||
Marketing
|
12
|
|
|
12
|
|
|
12
|
|
|
15
|
|
|
13
|
|
|
2
|
|
|
(5
|
)
|
|||||
Professional services
|
14
|
|
|
13
|
|
|
12
|
|
|
13
|
|
|
13
|
|
|
4
|
|
|
6
|
|
|||||
Deposit and other insurance expense
|
11
|
|
|
11
|
|
|
12
|
|
|
12
|
|
|
10
|
|
|
1
|
|
|
10
|
|
|||||
Amortization of intangibles
|
4
|
|
|
4
|
|
|
4
|
|
|
10
|
|
|
10
|
|
|
(2
|
)
|
|
(64
|
)
|
|||||
Other expense
|
39
|
|
|
42
|
|
|
82
|
|
|
41
|
|
|
36
|
|
|
(6
|
)
|
|
8
|
|
|||||
Total noninterest expense
|
$
|
491
|
|
|
$
|
499
|
|
|
$
|
527
|
|
|
$
|
492
|
|
|
$
|
459
|
|
|
(2
|
)%
|
|
7
|
%
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Number of employees (Average full-time equivalent)
|
12.4
|
|
|
12.4
|
|
|
12.4
|
|
|
12.3
|
|
|
11.9
|
|
|
—
|
%
|
|
4
|
%
|
|
2016
|
|
2015
|
||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||||
Personnel costs
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Outside data processing and other services
|
—
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|||||
Equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net occupancy
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Marketing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
4
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|||||
Other expense
|
1
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|||||
Total noninterest expense
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
43
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
2016
|
|
2015
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
285
|
|
|
$
|
287
|
|
|
$
|
283
|
|
|
$
|
282
|
|
|
$
|
265
|
|
|
(1
|
)%
|
|
8
|
%
|
Outside data processing and other services
|
62
|
|
|
62
|
|
|
57
|
|
|
58
|
|
|
50
|
|
|
—
|
|
|
24
|
|
|||||
Equipment
|
33
|
|
|
32
|
|
|
31
|
|
|
32
|
|
|
30
|
|
|
3
|
|
|
10
|
|
|||||
Net occupancy
|
31
|
|
|
28
|
|
|
29
|
|
|
29
|
|
|
31
|
|
|
11
|
|
|
—
|
|
|||||
Marketing
|
12
|
|
|
12
|
|
|
12
|
|
|
15
|
|
|
13
|
|
|
—
|
|
|
(8
|
)
|
|||||
Professional services
|
9
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
9
|
|
|
(25
|
)
|
|
—
|
|
|||||
Deposit and other insurance expense
|
11
|
|
|
11
|
|
|
12
|
|
|
12
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
Amortization of intangibles
|
4
|
|
|
4
|
|
|
4
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
(60
|
)
|
|||||
Other expense
|
38
|
|
|
41
|
|
|
43
|
|
|
41
|
|
|
36
|
|
|
(7
|
)
|
|
6
|
|
|||||
Total noninterest expense
|
$
|
485
|
|
|
$
|
488
|
|
|
$
|
483
|
|
|
$
|
490
|
|
|
$
|
456
|
|
|
(1
|
)%
|
|
6
|
%
|
•
|
$20 million
, or
8%
,
increase
in personnel costs, primarily reflecting a $16 million increase in salaries and a $4 million increase in benefits expense. These increases are the result of the May 2015 implementation of annual merit increases, the addition of HTF, and a 4% increase in the number of average full-time equivalent employees, largely related to the build-out of the in-store strategy.
|
•
|
$11 million
, or
22%
,
increase
in outside data processing and other services expense, primarily related to ongoing technology investments.
|
•
|
$6 million
, or
64%
,
decrease
in amortization of intangibles reflecting the full amortization of the core deposit intangible from the Sky Financial acquisition at the end of the 2015 second quarter.
|
|
2016
|
|
2015
|
||||||||||||||||
($ in thousands)
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
||||||||||
Total nonaccrual loans and leases
|
$
|
498,734
|
|
|
$
|
371,581
|
|
|
$
|
356,477
|
|
|
$
|
364,339
|
|
|
$
|
364,413
|
|
Total other real estate, net
|
26,132
|
|
|
27,342
|
|
|
24,910
|
|
|
29,232
|
|
|
33,951
|
|
|||||
Other NPAs
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,440
|
|
|
2,440
|
|
|||||
Total nonperforming assets
|
524,866
|
|
|
398,923
|
|
|
381,387
|
|
|
396,011
|
|
|
400,804
|
|
|||||
Accruing loans and leases past due 90 days or more
|
105,812
|
|
|
105,790
|
|
|
105,608
|
|
|
106,878
|
|
|
112,935
|
|
|||||
NPAs + accruing loans and lease past due 90 days or more
|
$
|
630,678
|
|
|
$
|
504,713
|
|
|
$
|
486,995
|
|
|
$
|
502,889
|
|
|
$
|
513,739
|
|
NAL ratio
(2)
|
0.97
|
%
|
|
0.74
|
%
|
|
0.72
|
%
|
|
0.75
|
%
|
|
0.76
|
%
|
|||||
NPA ratio
(3) (4)
|
1.02
|
|
|
0.79
|
|
|
0.77
|
|
|
0.81
|
|
|
0.84
|
|
|||||
(NPAs+90 days)/(Loans+OREO)
|
1.22
|
|
|
1.00
|
|
|
0.98
|
|
|
1.03
|
|
|
1.08
|
|
|||||
Provision for credit losses
|
$
|
27,582
|
|
|
$
|
36,468
|
|
|
$
|
22,476
|
|
|
$
|
20,419
|
|
|
$
|
20,591
|
|
Net charge-offs
|
8,552
|
|
|
21,823
|
|
|
16,163
|
|
|
25,375
|
|
|
24,432
|
|
|||||
Net charge-offs / Average total loans
|
0.07
|
%
|
|
0.18
|
%
|
|
0.13
|
%
|
|
0.21
|
%
|
|
0.20
|
%
|
|||||
Allowance for loans and lease losses
|
$
|
613,719
|
|
|
$
|
597,843
|
|
|
$
|
591,938
|
|
|
$
|
599,542
|
|
|
$
|
605,126
|
|
Allowance for unfunded loan commitments and letters of credit
|
75,325
|
|
|
72,081
|
|
|
64,223
|
|
|
55,371
|
|
|
54,742
|
|
|||||
Allowance for credit losses (ACL)
|
$
|
689,044
|
|
|
$
|
669,924
|
|
|
$
|
656,161
|
|
|
$
|
654,913
|
|
|
$
|
659,868
|
|
ACL as a % of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
1.34
|
%
|
|
1.33
|
%
|
|
1.32
|
%
|
|
1.34
|
%
|
|
1.38
|
%
|
|||||
NALs
|
138
|
|
|
180
|
|
|
184
|
|
|
180
|
|
|
181
|
|
|||||
NPAs
|
131
|
|
|
168
|
|
|
172
|
|
|
165
|
|
|
165
|
|
(1)
|
Other nonperforming assets include certain impaired investment securities.
|
(2)
|
Total NALs as a % of total loans and leases.
|
(3)
|
Total NPAs as a % of sum of loans and leases and net other real estate.
|
(4)
|
Excludes nonaccruing troubled debt restructured home equity loans previously transferred to held-for-sale.
|
|
|
2016
|
|
2015
|
||||||||||||||||
($ in millions)
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
March 31,
|
||||||||||
Tangible common equity / tangible assets ratio
|
|
7.89
|
%
|
|
7.82
|
%
|
|
7.89
|
%
|
|
7.92
|
%
|
|
7.95
|
%
|
|||||
Common equity tier 1 risk-based capital ratio
(1)
|
|
9.73
|
%
|
|
9.79
|
%
|
|
9.72
|
%
|
|
9.65
|
%
|
|
9.51
|
%
|
|||||
Regulatory Tier 1 risk-based capital ratio
(1)
|
|
10.99
|
%
|
|
10.53
|
%
|
|
10.49
|
%
|
|
10.41
|
%
|
|
10.22
|
%
|
|||||
Regulatory Total risk-based capital ratio
(1)
|
|
13.17
|
%
|
|
12.64
|
%
|
|
12.70
|
%
|
|
12.62
|
%
|
|
12.48
|
%
|
|||||
Total risk-weighted assets
(1)
|
|
$
|
59,798
|
|
|
$
|
58,420
|
|
|
$
|
57,839
|
|
|
$
|
57,850
|
|
|
$
|
57,840
|
|
(1)
|
Figures are estimated and are presented on a Basel III basis, including the standardized approach for calculating risk-weighted assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Tangible equity to tangible assets,
|
•
|
Tangible common equity to tangible assets, and
|
•
|
Tangible common equity to risk-weighted assets using Basel III definition.
|
|
Three months ended
|
|
|
|
|
|
||||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
Percent Changes vs.
|
||||||||||
(dollar amounts in thousands, except as noted)
|
2016
|
|
2015
|
|
2015
|
|
|
4Q15
|
|
1Q15
|
||||||||
Net interest income (3)
|
$
|
512,225
|
|
|
$
|
505,336
|
|
|
$
|
475,245
|
|
|
|
1
|
%
|
|
8
|
%
|
FTE adjustment
|
(9,159
|
)
|
|
(8,425
|
)
|
|
(7,560
|
)
|
|
|
9
|
|
|
21
|
|
|||
Net interest income
|
503,066
|
|
|
496,911
|
|
|
467,685
|
|
|
|
1
|
|
|
8
|
|
|||
Provision for credit losses
|
27,582
|
|
|
36,468
|
|
|
20,591
|
|
|
|
(24
|
)
|
|
34
|
|
|||
Noninterest income
|
241,867
|
|
|
272,215
|
|
|
231,623
|
|
|
|
(11
|
)
|
|
4
|
|
|||
Noninterest expense
|
491,080
|
|
|
498,766
|
|
|
458,857
|
|
|
|
(2
|
)
|
|
7
|
|
|||
Income before income taxes
|
226,271
|
|
|
233,892
|
|
|
219,860
|
|
|
|
(3
|
)
|
|
3
|
|
|||
Provision for income taxes
|
54,957
|
|
|
55,583
|
|
|
54,006
|
|
|
|
(1
|
)
|
|
2
|
|
|||
Net income
|
171,314
|
|
|
178,309
|
|
|
165,854
|
|
|
|
(4
|
)
|
|
3
|
|
|||
Dividends on preferred shares
|
7,998
|
|
|
7,972
|
|
|
7,965
|
|
|
|
—
|
|
|
—
|
|
|||
Net income applicable to common shares
|
$
|
163,316
|
|
|
$
|
170,337
|
|
|
$
|
157,889
|
|
|
|
(4
|
)%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share - diluted
|
$
|
0.20
|
|
|
$
|
0.21
|
|
|
$
|
0.19
|
|
|
|
(5
|
)%
|
|
5
|
%
|
Cash dividends declared per common share
|
0.07
|
|
|
0.07
|
|
|
0.06
|
|
|
|
—
|
|
|
17
|
|
|||
Tangible book value per common share at end of period
|
7.12
|
|
|
6.91
|
|
|
6.62
|
|
|
|
3
|
|
|
8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Number of common shares repurchased
|
—
|
|
|
2,490
|
|
|
4,949
|
|
|
|
(100
|
)
|
|
(100
|
)
|
|||
Average common shares - basic
|
795,755
|
|
|
796,095
|
|
|
809,778
|
|
|
|
—
|
|
|
(2
|
)
|
|||
Average common shares - diluted
|
808,349
|
|
|
810,143
|
|
|
823,809
|
|
|
|
—
|
|
|
(2
|
)
|
|||
Ending common shares outstanding
|
796,689
|
|
|
794,929
|
|
|
808,528
|
|
|
|
—
|
|
|
(1
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets
|
0.96
|
%
|
|
1.00
|
%
|
|
1.02
|
%
|
|
|
|
|
|
|
||||
Return on average common shareholders’ equity
|
10.4
|
|
|
10.8
|
|
|
10.6
|
|
|
|
|
|
|
|
||||
Return on average tangible common shareholders’ equity(2)
|
11.9
|
|
|
12.4
|
|
|
12.2
|
|
|
|
|
|
|
|
||||
Net interest margin(3)
|
3.11
|
|
|
3.09
|
|
|
3.15
|
|
|
|
|
|
|
|
||||
Efficiency ratio(4)
|
64.6
|
|
|
63.7
|
|
|
63.5
|
|
|
|
|
|
|
|
||||
Effective tax rate
|
24.3
|
|
|
23.8
|
|
|
24.6
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Average total assets (
millions
)
|
$
|
71,596
|
|
|
$
|
70,801
|
|
|
$
|
66,235
|
|
|
|
1
|
|
|
8
|
|
Average earning assets (
millions
)
|
66,234
|
|
|
64,961
|
|
|
61,193
|
|
|
|
2
|
|
|
8
|
|
|||
Average loans and leases (
millions
)
|
50,618
|
|
|
49,827
|
|
|
47,780
|
|
|
|
2
|
|
|
6
|
|
|||
Average loans and leases - linked quarter annualized growth rate
|
6.4
|
%
|
|
6.4
|
%
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|||
Average total deposits (
millions
)
|
$
|
54,979
|
|
|
$
|
55,338
|
|
|
$
|
52,129
|
|
|
|
(1
|
)
|
|
5
|
|
Average core deposits(5) (
millions
)
|
51,363
|
|
|
51,585
|
|
|
48,777
|
|
|
|
—
|
|
|
5
|
|
|||
Average core deposits - linked quarter annualized growth rate
|
(1.7
|
)%
|
|
5.4
|
%
|
|
9.6
|
%
|
|
|
|
|
|
|
||||
Average shareholders’ equity (
millions
)
|
$
|
6,755
|
|
|
$
|
6,636
|
|
|
$
|
6,416
|
|
|
|
2
|
|
|
5
|
|
Average tangible common shareholders' equity (
millions
)
|
5,610
|
|
|
5,536
|
|
|
5,461
|
|
|
|
1
|
|
|
3
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets at end of period (
millions
)
|
72,645
|
|
|
71,018
|
|
|
67,984
|
|
|
|
2
|
|
|
7
|
|
|||
Total shareholders’ equity at end of period (
millions
)
|
7,158
|
|
|
6,595
|
|
|
6,462
|
|
|
|
9
|
|
|
11
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
NCOs as a % of average loans and leases
|
0.07
|
%
|
|
0.18
|
%
|
|
0.20
|
%
|
|
|
|
|
|
|||||
NAL ratio
|
0.97
|
|
|
0.74
|
|
|
0.76
|
|
|
|
|
|
|
|||||
NPA ratio(6)
|
1.02
|
|
|
0.79
|
|
|
0.84
|
|
|
|
|
|
|
|
|
|||
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
|
1.19
|
|
|
1.19
|
|
|
1.27
|
|
|
|
|
|
|
|||||
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period
|
1.34
|
|
|
1.33
|
|
|
1.38
|
|
|
|
|
|
|
|||||
ACL as a % of NALs
|
138
|
|
|
180
|
|
|
181
|
|
|
|
|
|
|
|||||
ACL as a % of NPAs
|
131
|
|
|
168
|
|
|
165
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common equity tier 1 risk-based capital ratio(7)
|
9.73
|
|
|
9.79
|
|
|
9.51
|
|
|
|
|
|
|
|||||
Tangible common equity / tangible asset ratio(8)
|
7.89
|
|
|
7.82
|
|
|
7.95
|
|
|
|
|
|
|
(1)
|
Comparisons for all presented periods are impacted by a number of factors. Refer to Significant Items.
|
(2)
|
Net income applicable to common shares 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 35% tax rate.
|
(3)
|
On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
|
(4)
|
Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
|
(5)
|
Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.
|
(6)
|
NPAs include other real estate owned.
|
(7)
|
March 31, 2016, figures are estimated.
|
(8)
|
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
|
|
March 31,
|
|
December 31,
|
|
|
|||||
(dollar amounts in thousands, except number of shares)
|
2016
|
|