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)
|
¨
|
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 24, 2018
|
|
By:
|
|
/s/ Howell D. McCullough III
|
|
|
|
|
|
Howell D. McCullough III
|
|
|
|
|
|
Chief Financial Officer
|
|
|
|
•
|
$36 million
, or
3%
, year-over-year increase in fully-taxable equivalent revenue, comprised of a
$34 million
, or
5%
, increase in fully-taxable equivalent net interest income and a
$2 million
, or
1%
,
increase
in noninterest income
|
•
|
Net interest margin of
3.30%
, unchanged from the year-ago quarter
|
•
|
$74 million
, or
10%
, year-over-year
decrease
in noninterest expense, as the year-ago quarter included $73 million of acquisition-related expense
|
•
|
Effective tax rate of 15.3%, down from 22.2% in the year-ago quarter, reflecting the impact of federal tax reform
|
•
|
$3.5 billion
, or
5%
, year-over-year
increase
in average loans and leases, including a
$3.2 billion
, or
10%
,
increase
in consumer loans
|
•
|
$1.9 billion
, or
3%
, year-over-year
increase
in average core deposits, driven by a
$2.0 billion
, or
11%
,
increase
in money market deposits
|
•
|
Net charge-offs equated to
0.21%
of average loans and leases, representing the fifteenth consecutive quarter below the long-term target range of 0.35% to 0.55%
|
•
|
Nonperforming asset ratio of
0.59%
, down from
0.68%
a year ago
|
•
|
Repurchase of $48 million of common stock (3.0 million shares at an average cost of $15.83 per share), completing the $308 million buyback authorization under our 2017 CCAR plan
|
•
|
Conversion of $363 million of 8.5% Series A preferred equity into common shares, and the subsequent issuance of $500 million of 5.7% Series E preferred equity
|
•
|
Common Equity Tier 1 (CET1) risk-based capital ratio of
10.51%
, up from
9.74%
a year ago and above our 9% to 10% operating guideline
|
•
|
Tangible book value per common share (TBVPS) increased $0.57, or
9%
, year-over-year to
$7.12
|
|
2018
|
|
2017
|
||||||||||||||||
(in millions, except per share data)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|||||||||||
Net Income
|
$
|
326
|
|
|
$
|
432
|
|
|
$
|
275
|
|
|
$
|
272
|
|
|
$
|
208
|
|
Diluted earnings per common share
|
0.28
|
|
|
0.37
|
|
|
0.23
|
|
|
0.23
|
|
|
0.17
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.27
|
%
|
|
1.67
|
%
|
|
1.08
|
%
|
|
1.09
|
%
|
|
0.84
|
%
|
|||||
Return on average common equity
|
13.0
|
|
|
17.0
|
|
|
10.5
|
|
|
10.6
|
|
|
8.2
|
|
|||||
Return on average tangible common equity
|
17.5
|
|
|
22.7
|
|
|
14.1
|
|
|
14.4
|
|
|
11.3
|
|
|||||
Net interest margin
|
3.30
|
|
|
3.30
|
|
|
3.29
|
|
|
3.31
|
|
|
3.30
|
|
|||||
Efficiency ratio
|
56.8
|
|
|
54.9
|
|
|
60.5
|
|
|
62.9
|
|
|
65.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share
|
$
|
7.12
|
|
|
$
|
6.97
|
|
|
$
|
6.85
|
|
|
$
|
6.74
|
|
|
$
|
6.55
|
|
Cash dividends declared per common share
|
0.11
|
|
|
0.11
|
|
|
0.08
|
|
|
0.08
|
|
|
0.08
|
|
|||||
Average diluted shares outstanding
|
1,125
|
|
|
1,130
|
|
|
1,106
|
|
|
1,109
|
|
|
1,109
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average earning assets
|
$
|
95,412
|
|
|
$
|
93,937
|
|
|
$
|
92,849
|
|
|
$
|
91,728
|
|
|
$
|
91,139
|
|
Average loans and leases
|
70,484
|
|
|
68,940
|
|
|
68,276
|
|
|
67,345
|
|
|
66,981
|
|
|||||
Average core deposits
|
73,392
|
|
|
73,946
|
|
|
73,549
|
|
|
72,291
|
|
|
71,500
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity / tangible assets ratio
|
7.70
|
%
|
|
7.34
|
%
|
|
7.42
|
%
|
|
7.41
|
%
|
|
7.28
|
%
|
|||||
Common equity Tier 1 risk-based capital ratio
|
10.51
|
|
|
10.01
|
|
|
9.94
|
|
|
9.88
|
|
|
9.74
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NCOs as a % of average loans and leases
|
0.21
|
%
|
|
0.24
|
%
|
|
0.25
|
%
|
|
0.21
|
%
|
|
0.24
|
%
|
|||||
NAL ratio
|
0.54
|
|
|
0.50
|
|
|
0.49
|
|
|
0.54
|
|
|
0.60
|
|
|||||
ALLL as a % of total loans and leases
|
1.01
|
|
|
0.99
|
|
|
0.98
|
|
|
0.98
|
|
|
1.00
|
|
|||||
ACL as a % of total loans and leases
|
1.13
|
|
|
1.11
|
|
|
1.10
|
|
|
1.11
|
|
|
1.14
|
|
Three Months Ended
|
Pre-Tax
Impact |
|
After-Tax Impact
|
||||||||||
($ in millions, except per share)
|
Amount
|
|
Amount
(1)
|
|
EPS
(2)
|
||||||||
March 31, 2018 – net income
|
|
|
$
|
326
|
|
|
$
|
0.28
|
|
||||
•
|
|
None
|
N/A
|
|
|
—
|
|
|
—
|
|
|||
December 31, 2017 – net income
|
|
|
$
|
432
|
|
|
$
|
0.37
|
|
||||
•
|
|
Federal tax reform-related estimated tax benefit (3)
|
N/A
|
|
|
123
|
|
|
0.11
|
|
|||
September 30, 2017 – net income
|
|
|
$
|
275
|
|
|
$
|
0.23
|
|
||||
•
|
|
Merger and acquisition-related net expenses
|
$
|
(31
|
)
|
|
(20
|
)
|
|
(0.02
|
)
|
||
June 30, 2017 – net income
|
|
|
$
|
272
|
|
|
$
|
0.23
|
|
||||
•
|
|
Merger and acquisition-related net expenses
|
$
|
(50
|
)
|
|
(33
|
)
|
|
(0.03
|
)
|
||
March 31, 2017 – net income
|
|
|
$
|
208
|
|
|
$
|
0.17
|
|
||||
•
|
|
Merger and acquisition-related net expenses
|
$
|
(71
|
)
|
|
(46
|
)
|
|
(0.04
|
)
|
(1)
|
Favorable (unfavorable) impact on net income.
|
(2)
|
EPS reflected on a fully diluted basis.
|
(3)
|
Represents the reasonable estimated impact of tax reform as of December 31, 2017. The estimate could be adjusted in future periods during the measurement period ending December 22, 2018.
|
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||
($ in millions)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
LQ
|
|
YOY
|
||||||||||||||
Net interest income
|
$
|
770
|
|
|
$
|
770
|
|
|
$
|
758
|
|
|
$
|
745
|
|
|
$
|
730
|
|
|
—
|
%
|
|
5
|
%
|
FTE adjustment
|
7
|
|
|
12
|
|
|
13
|
|
|
12
|
|
|
13
|
|
|
(42
|
)
|
|
(46
|
)
|
|||||
Net interest income - FTE
|
777
|
|
|
782
|
|
|
771
|
|
|
757
|
|
|
743
|
|
|
(1
|
)
|
|
5
|
|
|||||
Noninterest income
|
314
|
|
|
340
|
|
|
330
|
|
|
325
|
|
|
312
|
|
|
(8
|
)
|
|
1
|
|
|||||
Total revenue - FTE
|
$
|
1,091
|
|
|
$
|
1,122
|
|
|
$
|
1,101
|
|
|
$
|
1,082
|
|
|
$
|
1,055
|
|
|
(3
|
)%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Change bp
|
|||||||||
Yield / Cost
|
|
|
|
|
|
|
|
|
|
|
LQ
|
|
YOY
|
|||||||
Total earning assets
|
3.91
|
%
|
|
3.83
|
%
|
|
3.78
|
%
|
|
3.75
|
%
|
|
3.70
|
%
|
|
8
|
|
|
21
|
|
Total loans and leases
|
4.32
|
|
|
4.23
|
|
|
4.20
|
|
|
4.15
|
|
|
4.07
|
|
|
9
|
|
|
25
|
|
Total securities
|
2.62
|
|
|
2.64
|
|
|
2.55
|
|
|
2.55
|
|
|
2.54
|
|
|
(2
|
)
|
|
8
|
|
Total interest-bearing liabilities
|
0.82
|
|
|
0.73
|
|
|
0.68
|
|
|
0.61
|
|
|
0.54
|
|
|
9
|
|
|
28
|
|
Total interest-bearing deposits
|
0.43
|
|
|
0.37
|
|
|
0.35
|
|
|
0.31
|
|
|
0.26
|
|
|
6
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest rate spread
|
3.09
|
|
|
3.10
|
|
|
3.10
|
|
|
3.14
|
|
|
3.16
|
|
|
(1
|
)
|
|
(7
|
)
|
Impact of noninterest-bearing funds on margin
|
0.21
|
|
|
0.20
|
|
|
0.19
|
|
|
0.17
|
|
|
0.14
|
|
|
1
|
|
|
7
|
|
Net interest margin
|
3.30
|
%
|
|
3.30
|
%
|
|
3.29
|
%
|
|
3.31
|
%
|
|
3.30
|
%
|
|
—
|
|
|
—
|
|
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||
($ in billions)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
LQ
|
|
YOY
|
||||||||||||||
Commercial and industrial
|
$
|
28.2
|
|
|
$
|
27.4
|
|
|
$
|
27.6
|
|
|
$
|
28.0
|
|
|
$
|
27.9
|
|
|
3
|
%
|
|
1
|
%
|
Commercial real estate
|
7.3
|
|
|
7.2
|
|
|
7.2
|
|
|
7.1
|
|
|
7.4
|
|
|
2
|
|
|
—
|
|
|||||
Total commercial
|
35.6
|
|
|
34.6
|
|
|
34.9
|
|
|
35.1
|
|
|
35.3
|
|
|
3
|
|
|
1
|
|
|||||
Automobile
|
12.1
|
|
|
12.0
|
|
|
11.7
|
|
|
11.3
|
|
|
11.1
|
|
|
1
|
|
|
9
|
|
|||||
Home equity
|
10.0
|
|
|
10.0
|
|
|
10.0
|
|
|
10.0
|
|
|
10.1
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
9.2
|
|
|
8.8
|
|
|
8.4
|
|
|
8.0
|
|
|
7.8
|
|
|
4
|
|
|
18
|
|
|||||
RV and marine finance
|
2.5
|
|
|
2.4
|
|
|
2.3
|
|
|
2.0
|
|
|
1.9
|
|
|
3
|
|
|
32
|
|
|||||
Other consumer
|
1.1
|
|
|
1.1
|
|
|
1.0
|
|
|
1.0
|
|
|
0.9
|
|
|
2
|
|
|
21
|
|
|||||
Total consumer
|
34.9
|
|
|
34.3
|
|
|
33.4
|
|
|
32.3
|
|
|
31.7
|
|
|
2
|
|
|
10
|
|
|||||
Total loans and leases
|
70.5
|
|
|
68.9
|
|
|
68.3
|
|
|
67.3
|
|
|
67.0
|
|
|
2
|
|
|
5
|
|
|||||
Total securities
|
24.4
|
|
|
24.3
|
|
|
23.8
|
|
|
23.8
|
|
|
23.6
|
|
|
—
|
|
|
3
|
|
|||||
Held-for-sale and other earning assets
|
0.6
|
|
|
0.7
|
|
|
0.8
|
|
|
0.6
|
|
|
0.5
|
|
|
(17
|
)
|
|
10
|
|
|||||
Total earning assets
|
$
|
95.4
|
|
|
$
|
93.9
|
|
|
$
|
92.8
|
|
|
$
|
91.7
|
|
|
$
|
91.1
|
|
|
2
|
%
|
|
5
|
%
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in billions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Demand deposits - noninterest-bearing
|
$
|
20.6
|
|
|
$
|
21.7
|
|
|
$
|
21.7
|
|
|
$
|
21.6
|
|
|
$
|
21.7
|
|
|
(5
|
)%
|
|
(5
|
)%
|
Demand deposits - interest-bearing
|
18.6
|
|
|
18.2
|
|
|
17.9
|
|
|
17.4
|
|
|
16.8
|
|
|
3
|
|
|
11
|
|
|||||
Total demand deposits
|
39.2
|
|
|
39.9
|
|
|
39.6
|
|
|
39.0
|
|
|
38.5
|
|
|
(2
|
)
|
|
2
|
|
|||||
Money market deposits
|
20.7
|
|
|
20.7
|
|
|
20.3
|
|
|
19.2
|
|
|
18.7
|
|
|
—
|
|
|
11
|
|
|||||
Savings and other domestic deposits
|
11.2
|
|
|
11.3
|
|
|
11.6
|
|
|
11.9
|
|
|
12.0
|
|
|
(1
|
)
|
|
(6
|
)
|
|||||
Core certificates of deposit
|
2.3
|
|
|
1.9
|
|
|
2.0
|
|
|
2.1
|
|
|
2.3
|
|
|
18
|
|
|
(2
|
)
|
|||||
Total core deposits
|
73.4
|
|
|
73.9
|
|
|
73.5
|
|
|
72.2
|
|
|
71.5
|
|
|
(1
|
)
|
|
3
|
|
|||||
Other domestic deposits of $250,000 or more
|
0.2
|
|
|
0.4
|
|
|
0.4
|
|
|
0.5
|
|
|
0.5
|
|
|
(38
|
)
|
|
(47
|
)
|
|||||
Brokered deposits and negotiable CDs
|
3.3
|
|
|
3.4
|
|
|
3.6
|
|
|
3.8
|
|
|
4.0
|
|
|
(2
|
)
|
|
(17
|
)
|
|||||
Total deposits
|
$
|
76.9
|
|
|
$
|
77.7
|
|
|
$
|
77.5
|
|
|
$
|
76.5
|
|
|
$
|
76.0
|
|
|
(1
|
)%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
5.2
|
|
|
$
|
2.8
|
|
|
$
|
2.4
|
|
|
$
|
2.7
|
|
|
$
|
3.8
|
|
|
84
|
%
|
|
38
|
%
|
Long-term debt
|
9.0
|
|
|
9.2
|
|
|
8.9
|
|
|
8.7
|
|
|
8.5
|
|
|
(3
|
)
|
|
5
|
|
|||||
Total debt
|
$
|
14.2
|
|
|
$
|
12.0
|
|
|
$
|
11.3
|
|
|
$
|
11.4
|
|
|
$
|
12.3
|
|
|
18
|
%
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total interest-bearing liabilities
|
$
|
70.6
|
|
|
$
|
68.1
|
|
|
$
|
67.2
|
|
|
$
|
66.4
|
|
|
$
|
66.5
|
|
|
4
|
%
|
|
6
|
%
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Service charges on deposit accounts
|
$
|
86
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
88
|
|
|
$
|
83
|
|
|
(5
|
)%
|
|
4
|
%
|
Cards and payment processing income
|
53
|
|
|
53
|
|
|
54
|
|
|
52
|
|
|
47
|
|
|
—
|
|
|
13
|
|
|||||
Trust and investment management services
|
44
|
|
|
41
|
|
|
39
|
|
|
37
|
|
|
39
|
|
|
7
|
|
|
13
|
|
|||||
Mortgage banking income
|
26
|
|
|
33
|
|
|
34
|
|
|
32
|
|
|
32
|
|
|
(21
|
)
|
|
(19
|
)
|
|||||
Insurance income
|
21
|
|
|
21
|
|
|
18
|
|
|
22
|
|
|
20
|
|
|
—
|
|
|
5
|
|
|||||
Capital markets fees
|
19
|
|
|
23
|
|
|
22
|
|
|
17
|
|
|
14
|
|
|
(17
|
)
|
|
36
|
|
|||||
Bank owned life insurance income
|
15
|
|
|
18
|
|
|
16
|
|
|
15
|
|
|
18
|
|
|
(17
|
)
|
|
(17
|
)
|
|||||
Gain on sale of loans
|
8
|
|
|
17
|
|
|
14
|
|
|
12
|
|
|
13
|
|
|
(53
|
)
|
|
(38
|
)
|
|||||
Securities gains (losses)
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
|||||
Other Income
|
42
|
|
|
47
|
|
|
42
|
|
|
50
|
|
|
46
|
|
|
(11
|
)
|
|
(9
|
)
|
|||||
Total noninterest income
|
$
|
314
|
|
|
$
|
340
|
|
|
$
|
330
|
|
|
$
|
325
|
|
|
$
|
312
|
|
|
(8
|
)%
|
|
1
|
%
|
|
2018
|
|
2017
|
||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||||
Service charges on deposit accounts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cards and payment processing income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Trust and investment management services
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage banking income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Insurance income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Capital markets fees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Bank owned life insurance income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Gain on sale of loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total noninterest income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Service charges on deposit accounts
|
$
|
86
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
88
|
|
|
$
|
83
|
|
|
(5
|
)%
|
|
4
|
%
|
Cards and payment processing income
|
53
|
|
|
53
|
|
|
54
|
|
|
52
|
|
|
47
|
|
|
—
|
|
|
13
|
|
|||||
Trust and investment management services
|
44
|
|
|
41
|
|
|
39
|
|
|
37
|
|
|
39
|
|
|
7
|
|
|
13
|
|
|||||
Mortgage banking income
|
26
|
|
|
33
|
|
|
34
|
|
|
32
|
|
|
32
|
|
|
(21
|
)
|
|
(19
|
)
|
|||||
Insurance income
|
21
|
|
|
21
|
|
|
18
|
|
|
22
|
|
|
20
|
|
|
—
|
|
|
5
|
|
|||||
Capital markets fees
|
19
|
|
|
23
|
|
|
22
|
|
|
17
|
|
|
14
|
|
|
(17
|
)
|
|
36
|
|
|||||
Bank owned life insurance income
|
15
|
|
|
18
|
|
|
16
|
|
|
15
|
|
|
18
|
|
|
(17
|
)
|
|
(17
|
)
|
|||||
Gain on sale of loans
|
8
|
|
|
17
|
|
|
14
|
|
|
12
|
|
|
13
|
|
|
(53
|
)
|
|
(38
|
)
|
|||||
Securities gains (losses)
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
|||||
Other Income
|
42
|
|
|
47
|
|
|
42
|
|
|
50
|
|
|
44
|
|
|
(11
|
)
|
|
(5
|
)
|
|||||
Total noninterest income
|
$
|
314
|
|
|
$
|
340
|
|
|
$
|
330
|
|
|
$
|
325
|
|
|
$
|
310
|
|
|
(8
|
)%
|
|
1
|
%
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
376
|
|
|
$
|
373
|
|
|
$
|
377
|
|
|
$
|
392
|
|
|
$
|
382
|
|
|
1
|
%
|
|
(2
|
)%
|
Outside data processing and other services
|
73
|
|
|
71
|
|
|
80
|
|
|
75
|
|
|
87
|
|
|
3
|
|
|
(16
|
)
|
|||||
Net occupancy
|
41
|
|
|
36
|
|
|
55
|
|
|
53
|
|
|
68
|
|
|
14
|
|
|
(40
|
)
|
|||||
Equipment
|
40
|
|
|
36
|
|
|
45
|
|
|
43
|
|
|
47
|
|
|
11
|
|
|
(15
|
)
|
|||||
Deposit and other insurance expense
|
18
|
|
|
19
|
|
|
19
|
|
|
20
|
|
|
20
|
|
|
(5
|
)
|
|
(10
|
)
|
|||||
Professional services
|
11
|
|
|
18
|
|
|
15
|
|
|
18
|
|
|
18
|
|
|
(39
|
)
|
|
(39
|
)
|
|||||
Marketing
|
8
|
|
|
10
|
|
|
17
|
|
|
19
|
|
|
14
|
|
|
(20
|
)
|
|
(43
|
)
|
|||||
Amortization of intangibles
|
14
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|||||
Other expense
|
52
|
|
|
56
|
|
|
58
|
|
|
60
|
|
|
57
|
|
|
(7
|
)
|
|
(9
|
)
|
|||||
Total noninterest expense
|
$
|
633
|
|
|
$
|
633
|
|
|
$
|
680
|
|
|
$
|
694
|
|
|
$
|
707
|
|
|
—
|
%
|
|
(10
|
)%
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average full-time equivalent employees
|
15.6
|
|
|
15.4
|
|
|
15.5
|
|
|
15.9
|
|
|
16.3
|
|
|
1
|
%
|
|
(4
|
)%
|
|
2018
|
|
2017
|
||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||||
Personnel costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
18
|
|
|
$
|
20
|
|
Outside data processing and other services
|
—
|
|
|
—
|
|
|
4
|
|
|
6
|
|
|
14
|
|
|||||
Net occupancy
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
23
|
|
|||||
Equipment
|
—
|
|
|
—
|
|
|
6
|
|
|
4
|
|
|
6
|
|
|||||
Deposit and other insurance expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Professional services
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|||||
Marketing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Amortization of intangibles
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other expense
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|||||
Total noninterest expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
$
|
50
|
|
|
$
|
73
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||||
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
376
|
|
|
$
|
373
|
|
|
$
|
373
|
|
|
$
|
374
|
|
|
$
|
362
|
|
|
1
|
%
|
|
4
|
%
|
Outside data processing and other services
|
73
|
|
|
71
|
|
|
76
|
|
|
69
|
|
|
73
|
|
|
3
|
|
|
—
|
|
|||||
Net occupancy
|
41
|
|
|
36
|
|
|
41
|
|
|
39
|
|
|
45
|
|
|
(12
|
)
|
|
(14
|
)
|
|||||
Equipment
|
40
|
|
|
36
|
|
|
39
|
|
|
39
|
|
|
41
|
|
|
11
|
|
|
(2
|
)
|
|||||
Deposit and other insurance expense
|
18
|
|
|
19
|
|
|
19
|
|
|
20
|
|
|
20
|
|
|
(5
|
)
|
|
(10
|
)
|
|||||
Professional services
|
11
|
|
|
18
|
|
|
13
|
|
|
14
|
|
|
14
|
|
|
(39
|
)
|
|
(21
|
)
|
|||||
Marketing
|
8
|
|
|
10
|
|
|
17
|
|
|
19
|
|
|
13
|
|
|
(20
|
)
|
|
(38
|
)
|
|||||
Amortization of intangibles
|
14
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|||||
Other expense
|
52
|
|
|
56
|
|
|
58
|
|
|
56
|
|
|
52
|
|
|
(7
|
)
|
|
—
|
|
|||||
Total noninterest expense
|
$
|
633
|
|
|
$
|
633
|
|
|
$
|
650
|
|
|
$
|
644
|
|
|
$
|
634
|
|
|
—
|
%
|
|
—
|
%
|
|
2018
|
|
2017
|
||||||||||||||||
($ in millions)
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||||
Total nonaccrual loans and leases
|
$
|
383
|
|
|
$
|
349
|
|
|
$
|
338
|
|
|
$
|
364
|
|
|
$
|
401
|
|
Total other real estate
|
30
|
|
|
33
|
|
|
42
|
|
|
44
|
|
|
50
|
|
|||||
Other NPAs
(1)
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|||||
Total nonperforming assets
|
420
|
|
|
389
|
|
|
387
|
|
|
415
|
|
|
458
|
|
|||||
Accruing loans and leases past due 90 days or more
|
106
|
|
|
115
|
|
|
119
|
|
|
136
|
|
|
128
|
|
|||||
NPAs + accruing loans and lease past due 90 days or more
|
$
|
526
|
|
|
$
|
504
|
|
|
$
|
506
|
|
|
$
|
551
|
|
|
$
|
586
|
|
NAL ratio
(2)
|
0.54
|
%
|
|
0.50
|
%
|
|
0.49
|
%
|
|
0.54
|
%
|
|
0.60
|
%
|
|||||
NPA ratio
(3)
|
0.59
|
|
|
0.55
|
|
|
0.56
|
|
|
0.61
|
|
|
0.68
|
|
|||||
(NPAs+90 days)/(Loans+OREO)
|
0.74
|
|
|
0.72
|
|
|
0.74
|
|
|
0.81
|
|
|
0.87
|
|
|||||
Provision for credit losses
|
$
|
66
|
|
|
$
|
65
|
|
|
$
|
43
|
|
|
$
|
25
|
|
|
$
|
68
|
|
Net charge-offs
|
38
|
|
|
41
|
|
|
43
|
|
|
36
|
|
|
39
|
|
|||||
Net charge-offs / Average total loans
|
0.21
|
%
|
|
0.24
|
%
|
|
0.25
|
%
|
|
0.21
|
%
|
|
0.24
|
%
|
|||||
Allowance for loans and lease losses
|
$
|
721
|
|
|
$
|
691
|
|
|
$
|
675
|
|
|
$
|
668
|
|
|
$
|
673
|
|
Allowance for unfunded loan commitments and letters of credit
|
85
|
|
|
87
|
|
|
79
|
|
|
85
|
|
|
92
|
|
|||||
Allowance for credit losses (ACL)
|
$
|
806
|
|
|
$
|
778
|
|
|
$
|
754
|
|
|
$
|
753
|
|
|
$
|
765
|
|
ALLL as a % of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
1.01
|
%
|
|
0.99
|
%
|
|
0.98
|
%
|
|
0.98
|
%
|
|
1.00
|
%
|
|||||
NALs
|
188
|
|
|
198
|
|
|
200
|
|
|
183
|
|
|
168
|
|
|||||
NPAs
|
172
|
|
|
178
|
|
|
175
|
|
|
161
|
|
|
147
|
|
|||||
ACL as a % of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
1.13
|
%
|
|
1.11
|
%
|
|
1.10
|
%
|
|
1.11
|
%
|
|
1.14
|
%
|
|||||
NALs
|
210
|
|
|
223
|
|
|
223
|
|
|
207
|
|
|
190
|
|
|||||
NPAs
|
192
|
|
|
200
|
|
|
195
|
|
|
181
|
|
|
167
|
|
(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 other real estate.
|
|
|
2018
|
|
2017
|
||||||||||||||||
($ in billions)
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||||
Tangible common equity / tangible assets ratio
|
|
7.70
|
%
|
|
7.34
|
%
|
|
7.42
|
%
|
|
7.41
|
%
|
|
7.28
|
%
|
|||||
Common equity tier 1 risk-based capital ratio
(1)
|
|
10.51
|
%
|
|
10.01
|
%
|
|
9.94
|
%
|
|
9.88
|
%
|
|
9.74
|
%
|
|||||
Regulatory Tier 1 risk-based capital ratio
(1)
|
|
11.99
|
%
|
|
11.34
|
%
|
|
11.30
|
%
|
|
11.24
|
%
|
|
11.11
|
%
|
|||||
Regulatory Total risk-based capital ratio
(1)
|
|
13.98
|
%
|
|
13.39
|
%
|
|
13.39
|
%
|
|
13.33
|
%
|
|
13.26
|
%
|
|||||
Total risk-weighted assets
(1)
|
|
$
|
81.5
|
|
|
$
|
80.3
|
|
|
$
|
78.6
|
|
|
$
|
78.4
|
|
|
$
|
77.6
|
|
(1)
|
Figures are estimated and are presented on a Basel III standardized approach basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
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.
|
||||||||||
(amounts in millions, except per share amounts)
|
2018
|
|
2017
|
|
2017
|
|
|
4Q17
|
|
1Q17
|
||||||||
Net interest income(3)
|
$
|
777
|
|
|
$
|
782
|
|
|
$
|
743
|
|
|
|
(1
|
)%
|
|
5
|
%
|
FTE adjustment
|
(7
|
)
|
|
(12
|
)
|
|
(13
|
)
|
|
|
42
|
|
|
46
|
|
|||
Net interest income
|
770
|
|
|
770
|
|
|
730
|
|
|
|
—
|
|
|
5
|
|
|||
Provision for credit losses
|
66
|
|
|
65
|
|
|
68
|
|
|
|
2
|
|
|
(3
|
)
|
|||
Noninterest income
|
314
|
|
|
340
|
|
|
312
|
|
|
|
(8
|
)
|
|
1
|
|
|||
Noninterest expense
|
633
|
|
|
633
|
|
|
707
|
|
|
|
—
|
|
|
(10
|
)
|
|||
Income before income taxes
|
385
|
|
|
412
|
|
|
267
|
|
|
|
(7
|
)
|
|
44
|
|
|||
Provision for income taxes
|
59
|
|
|
(20
|
)
|
|
59
|
|
|
|
395
|
|
|
—
|
|
|||
Net income
|
326
|
|
|
432
|
|
|
208
|
|
|
|
(25
|
)
|
|
57
|
|
|||
Dividends on preferred shares
|
12
|
|
|
19
|
|
|
19
|
|
|
|
(37
|
)
|
|
(37
|
)
|
|||
Net income applicable to common shares
|
$
|
314
|
|
|
$
|
413
|
|
|
$
|
189
|
|
|
|
(24
|
)%
|
|
66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share - diluted
|
$
|
0.28
|
|
|
$
|
0.37
|
|
|
$
|
0.17
|
|
|
|
(24
|
)%
|
|
65
|
%
|
Cash dividends declared per common share
|
0.11
|
|
|
0.11
|
|
|
0.08
|
|
|
|
—
|
|
|
38
|
|
|||
Tangible book value per common share at end of period
|
7.12
|
|
|
6.97
|
|
|
6.55
|
|
|
|
2
|
|
|
9
|
|
|||
Number of common shares repurchased (000)
|
3,007
|
|
|
9,785
|
|
|
—
|
|
|
|
(69
|
)
|
|
100
|
|
|||
Average common shares - basic
|
1,083,836
|
|
|
1,077,397
|
|
|
1,086,374
|
|
|
|
1
|
|
|
—
|
|
|||
Average common shares - diluted
|
1,124,778
|
|
|
1,130,117
|
|
|
1,108,617
|
|
|
|