UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _____________________________________________________________________________________________________
FORM 8-K
 _____________________________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 25, 2019
 _____________________________________________________________________________________________________
HUNTINGTONLOGOA26.JPG
HUNTINGTON BANCSHARES INCORPORATED
(Exact name of registrant as specified in its charter)  
 _____________________________________________________________________________________________________
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)

(614) 480-2265
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
_______________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of class
Trading
Symbol(s)
Name of exchange on which registered
5.875% Series C Non-Cumulative, perpetual preferred stock
HBANN

Nasdaq
6.250% Series D Non-Cumulative, perpetual preferred stock
HBANO

Nasdaq
Common Stock—Par Value $0.01 per Share
HBAN
Nasdaq
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§24012b-2).
 
 
 
 
 
 
 
Emerging growth company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item  2.02.
Results of Operations and Financial Condition.
On April 25, 2019 , Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended March 31, 2019 . Also on April 25, 2019 , Huntington made a Quarterly Financial Supplement available in the Investor Relations section of Huntington’s website. Copies of Huntington's news release and quarterly financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference in this Item 2.02.
Huntington’s senior management will host an earnings conference call on April 25, 2019 , at 9:00 a.m. (Eastern Daylight Time). The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington’s website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029 ; Conference ID 13688990 . Slides will be available in the Investor Relations section of Huntington’s website about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s website. A telephone replay will be available approximately two hours after the completion of the call through May 10, 2019 at (877) 660-6853 or (201) 612-7415 conference ID 13688990 .
The information contained or incorporated by reference in this Current Report on Form 8-K contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; movements in interest rates; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and BCFP; and other factors that may affect our future results. Additional factors that could cause results to differ materially from those described above can be found in our 2018 Annual Report on Form 10-K, as well as our subsequent Securities and Exchange Commission ("SEC") filings, which are on file with the SEC and available in the “Investor Relations” section of our website, http://www.huntington.com , under the heading “Publications and Filings.”
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We do not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

The information contained or incorporated by reference in Item 2.02 of this Form 8-K shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item  9.01.
Financial Statements and Exhibits.
The exhibits referenced below shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

(d)
Exhibits.

Exhibit 99.1 – News release of Huntington Bancshares Incorporated, dated April 25, 2019.

Exhibit 99.2 – Quarterly Financial Supplement, March 2019.





EXHIBIT INDEX

Exhibit No.    Description
Exhibit 99.1      News release of Huntington Bancshares Incorporated, dated April 25, 2019
Exhibit 99.2      Quarterly Financial Supplement, March 2019

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
HUNTINGTON BANCSHARES INCORPORATED
 
 
 
 
 
 
Date:
April 25, 2019
 
By:
 
/s/ Howell D. McCullough III
 
 
 
 
 
Howell D. McCullough III
 
 
 
 
 
Chief Financial Officer






Exhibit 99.1
 
HUNTINGTONLOGOA18.JPG

FOR IMMEDIATE RELEASE
April 25, 2019
Analysts: Mark Muth (mark.muth@huntington.com), 614.480.4720
Media: Matt Samson (matt.b.samson@huntington.com), 312.263.0203

HUNTINGTON BANCSHARES INCORPORATED REPORTS 2019 FIRST QUARTER EARNINGS OF $0.32 PER COMMON SHARE
Results Represent 14% Year-Over-Year Increase in Earnings Per Common Share
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN; www.huntington.com) reported net income for the 2019 first quarter of $358 million , an increase of 10% from the year-ago quarter. Earnings per common share (EPS) for the 2019 first quarter were $0.32 , up 14% from the year-ago quarter. Tangible book value per common share as of 2019 first quarter -end was $7.67 , an 8% year-over-year increase. Return on average assets was 1.35% , return on average common equity was 13.8% , and return on average tangible common equity (ROTCE) was 18.3% .
“We had a solid start to the year and are encouraged by the strong balance sheet growth in the first quarter, reflecting the underlying growth of the economies in our footprint,” said Steve Steinour, chairman, president, and CEO. “Huntington is performing well as EPS increased 14% and total revenue increased 5% from the year-ago quarter. We are executing on our strategies and continue to make meaningful investments to drive organic revenue growth and to better serve our customers with enhanced digital technology.”
"Average loan growth of 6% year-over-year was driven by both consumer and commercial lending. Commercial and industrial lending remained strong in the first quarter, building on momentum from year-end. Average deposits increased 8% year-over-year as we remain focused on funding growth with core deposits."
"Overall economic activity in our footprint continues to reflect a favorable outlook for both consumers and businesses. Our balance sheet growth expectations for 2019 remain unchanged. Our commercial loan pipelines are steady, and we are seeing the normal seasonal build in our consumer pipelines. Competition for loans and deposits is rational. We do not foresee a recession in the near term; however, our core earnings power, strong capital, aggregate moderate-to-low risk appetite, and long-term strategic alignment position us to withstand economic headwinds,” Steinour said.

2019 First Quarter Highlights compared with 2018 First Quarter :
Fully-taxable equivalent total revenue increased $57 million , or 5% .
Fully-taxable equivalent net interest income increased $52 million , or 7% .
Net interest margin increased 9 basis points to 3.39% .
Noninterest income increased $5 million , or 2% .
Noninterest expense increased $20 million , or 3% .
Efficiency ratio of 55.8% , down from 56.8% .
Average loans and leases increased $4.3 billion , or 6% , year-over-year, including a $2.5 billion , or 7% , increase in consumer loans and a $1.8 billion , or 5% , increase in commercial loans.


1



Average core deposits increased $5.6 billion , or 8% , year-over-year, driven by a $3.8 billion , or 164% , increase in core certificates of deposit and a $2.3 billion , or 11% , increase in money market deposits.
Net charge-offs equated to 0.38% of average loans and leases, up from 0.21% .
Nonperforming asset ratio of 0.61% , up from 0.59% .
Common Equity Tier 1 (CET1) risk-based capital ratio of 9.84% , down from 10.45% and within our 9% to 10% operating guideline.
Tangible common equity (TCE) ratio of 7.57% , down from 7.70% .
Tangible book value per common share increased $ 0.55 , or 8% , to $7.67 .
Repurchased $25 million of common stock (1.8 million shares at an average price of $13.64 per share).


Table 1 – Earnings Performance Summary (GAAP)
 
2019
 
2018
(in millions, except per share data)
First
 
Fourth
 
Third
 
Second
 
First
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
Net Income
$
358

 
$
334

 
$
378

 
$
355

 
$
326

Diluted earnings per common share
0.32

 
0.29

 
0.33

 
0.30

 
0.28

 
 
 
 
 
 
 
 
 
 
Return on average assets
1.35
%
 
1.25
%
 
1.42
%
 
1.36
%
 
1.27
%
Return on average common equity
13.8

 
12.9

 
14.3

 
13.2

 
13.0

Return on average tangible common equity
18.3

 
17.3

 
19.0

 
17.6

 
17.5

Net interest margin
3.39

 
3.41

 
3.32

 
3.29

 
3.30

Efficiency ratio
55.8

 
58.7

 
55.3

 
56.6

 
56.8

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
7.67

 
$
7.34

 
$
7.06

 
$
7.27

 
$
7.12

Cash dividends declared per common share
0.14

 
0.14

 
0.14

 
0.11

 
0.11

Average diluted shares outstanding
1,066

 
1,073

 
1,104

 
1,123

 
1,125

 
 
 
 
 
 
 
 
 
 
Average earning assets
$
99,212

 
$
97,752

 
$
96,753

 
$
96,363

 
$
95,412

Average loans and leases
74,775

 
73,822

 
72,751

 
71,887

 
70,484

Average core deposits
79,033

 
79,078

 
77,680

 
75,386

 
73,392

 
 
 
 
 
 
 
 
 
 
Tangible common equity / tangible assets ratio
7.57
%
 
7.21
%
 
7.25
%
 
7.78
%
 
7.70
%
Common equity Tier 1 risk-based capital ratio
9.84

 
9.65

 
9.89

 
10.53

 
10.45

 
 
 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.38
%
 
0.27
%
 
0.16
%
 
0.16
%
 
0.21
%
NAL ratio
0.56

 
0.45

 
0.50

 
0.52

 
0.54

ALLL as a % of total loans and leases
1.02

 
1.03

 
1.04

 
1.02

 
1.01




2



Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 2 – Net Interest Income and Net Interest Margin Performance Summary – Inherent Asset Sensitivity Drove NIM Expansion
 
2019
 
2018
 
 
 
 
($ in millions)
First
 
Fourth
 
Third
 
Second
 
First
 
Change (%)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
LQ
 
YOY
Net interest income
$
822

 
$
833

 
$
802

 
$
784

 
$
770

 
(1
)%
 
7
%
FTE adjustment
7

 
8

 
8

 
7

 
7

 
(13
)
 

Net interest income - FTE
829

 
841

 
810

 
791

 
777

 
(1
)
 
7

Noninterest income
319

 
329

 
342

 
336

 
314

 
(3
)
 
2

Total revenue - FTE
$
1,148

 
$
1,170

 
$
1,152

 
$
1,127

 
$
1,091

 
(2
)%
 
5
%
 
 
 
 
 
 
 
 
 
 
 
Change (bp)
Yield / Cost
 
 
 
 
 
 
 
 
 
 
LQ
 
YOY
Total earning assets
4.43
%
 
4.34
%
 
4.16
%
 
4.07
%
 
3.91
%
 
9

 
52

Total loans and leases
4.85

 
4.76

 
4.60

 
4.49

 
4.32

 
9

 
53

Total securities
2.86

 
2.84

 
2.73

 
2.71

 
2.62

 
2

 
24

Total interest-bearing liabilities
1.35

 
1.23

 
1.13

 
1.05

 
0.82

 
12

 
53

Total interest-bearing deposits
0.94

 
0.84

 
0.73

 
0.59

 
0.43

 
10

 
51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest rate spread
3.08

 
3.11

 
3.03

 
3.02

 
3.09

 
(3
)
 
(1
)
Impact of noninterest-bearing funds on margin
0.31

 
0.30

 
0.29

 
0.27

 
0.21

 
1

 
10

Net interest margin
3.39
%
 
3.41
%
 
3.32
%
 
3.29
%
 
3.30
%
 
(2
)
 
9

See Pages 6-8 of Quarterly Financial Supplement for additional detail.

Fully-taxable equivalent (FTE) net interest income for the 2019 first quarter increased $52 million , or 7% , from the 2018 first quarter . This reflected the benefit from the $3.8 billion , or 4% , increase in average earning assets coupled with a 9 basis point increase in the FTE net interest margin (NIM) to 3.39% . Average earning asset yields increased 52 basis points year-over-year, driven by a 53 basis point improvement in loan yields. Average interest-bearing liability costs increased 53 basis points, primarily driven by a 51 basis point increase in average interest-bearing deposit costs. The cost of short-term borrowings and long-term debt increased 94 basis points and 106 basis points, respectively. The benefit from noninterest-bearing funds improved 10 basis points versus the year-ago quarter. Embedded within these yields and costs, FTE net interest income during the 2019 first quarter included $15 million, or approximately 6 basis points, of purchase accounting impact compared to $19 million, or approximately 8 basis points, in the year-ago quarter.
Compared to the 2018 fourth quarter , FTE net interest income decreased $12 million , or 1% , primarily reflecting the NIM compression of 2 basis points, more than offsetting the benefit from the $1.5 billion , or 1% , increase in average earning assets. Average earning asset yields increased 9 basis points sequentially, driven by a 9 basis point increase in loan yields. Average interest-bearing liability costs increased 12 basis points, primarily driven by a 10 basis point increase in average interest-bearing deposit costs. The benefit of noninterest-bearing funding improved 1 basis point linked quarter. The purchase accounting impact on the net interest margin was approximately 6 basis points in the 2019 first quarter , down 1 basis point from the prior quarter. The 2018 fourth quarter included an approximately 2 basis point impact from higher commercial interest recoveries.


3



Table 3 – Average Earning Assets – Broad-based Consumer and C&I Loan Growth Reflects Underlying Economic Strength of the Footprint
 
2019
 
2018
 
 
 
 
($ in billions)
First
 
Fourth
 
Third
 
Second
 
First
 
Change (%)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
LQ
 
YOY
Commercial and industrial
$
30.5

 
$
29.6

 
$
28.9

 
$
28.9

 
$
28.2

 
3
 %
 
8
 %
Commercial real estate
6.9

 
6.9

 
7.2

 
7.4

 
7.3

 
(1
)
 
(6
)
Total commercial
37.4

 
36.5

 
36.0

 
36.2

 
35.6

 
2

 
5

Automobile
12.4

 
12.4

 
12.4

 
12.3

 
12.1

 
0

 
2

Home equity
9.6

 
9.8

 
9.9

 
9.9

 
10.0

 
(2
)
 
(4
)
Residential mortgage
10.8

 
10.6

 
10.2

 
9.6

 
9.2

 
2

 
18

RV and marine
3.3

 
3.2

 
3.0

 
2.7

 
2.5

 
2

 
33

Other consumer
1.3

 
1.3

 
1.2

 
1.2

 
1.1

 
(1
)
 
15

Total consumer
37.4

 
37.3

 
36.7

 
35.7

 
34.9

 
0

 
7

Total loans and leases
74.8

 
73.8

 
72.8

 
71.9

 
70.5

 
1

 
6

Total securities
23.1

 
22.7

 
23.2

 
23.8

 
24.4

 
2

 
(5
)
Held-for-sale and other earning assets
1.3

 
1.3

 
0.8

 
0.7

 
0.6

 
3

 
131

Total earning assets
$
99.2

 
$
97.8

 
$
96.8

 
$
96.4

 
$
95.4

 
1
 %
 
4
 %
See Page 6 of Quarterly Financial Supplement for additional detail.

Average earning assets for the 2019 first quarter increased $3.8 billion , or 4% , from the year-ago quarter, primarily reflecting a $4.3 billion , or 6% , increase in average loans and leases. Average commercial and industrial (C&I) loans increased $2.3 billion , or 8% , reflecting growth in corporate banking, asset finance, dealer floorplan, and middle market banking. Average residential mortgage loans increased $1.6 billion , or 18% , driven by the successful expansion of our home lending business over the past two years. Average RV and marine loans increased $0.8 billion , or 33% , primarily reflecting the success of the well-managed geographic expansion over the past two years, while maintaining our commitment to super prime originations. Held-for-sale and other earning assets increased $0.7 billion , or 131% , primarily due to the inclusion of deposits in Federal Reserve Bank balances. These balances were treated as non-earning assets prior to the fourth quarter 2018. As of March 31, 2019 , approximately $126 million of loans were included in held-for-sale related to the previously-announced sale of our Wisconsin branches, which is expected to close in the 2019 second quarter. Average securities decreased $1.2 billion , or 5% , primarily due to runoff in the portfolio in 2018.
Compared to the 2018 fourth quarter , average earning assets increased $1.5 billion , or 1% , primarily reflecting the $1.0 billion , or 1% , increase in average loans and leases. Average C&I loans increased $1.0 billion , or 3% , reflecting growth in corporate banking, asset finance, dealer floorplan, and broad-based growth across the specialty lending verticals. Average securities increased $0.5 billion , or 2% , primarily reflecting the timing of purchases in anticipation of future cash flows.


4



Table 4 – Average Liabilities – Growth in Core Deposits Drove Reduction in Wholesale Funding
 
2019
 
2018
 
 
 
First
 
Fourth
 
Third
 
Second
 
First
 
Change (%)
($ in billions)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
LQ
 
YOY
Demand deposits - noninterest-bearing
$
19.9

 
$
20.4

 
$
20.2

 
$
20.4

 
$
20.6

 
(2
)%
 
(3
)%
Demand deposits - interest-bearing
19.8

 
19.9

 
19.6

 
19.1

 
18.6

 
0

 
6

Total demand deposits
39.7

 
40.3

 
39.8

 
39.5

 
39.2

 
(1
)
 
1

Money market deposits
22.9

 
22.6

 
21.5

 
20.9

 
20.7

 
2

 
11

Savings and other domestic deposits
10.3

 
10.5

 
11.4

 
11.1

 
11.2

 
(2
)
 
(8
)
Core certificates of deposit
6.1

 
5.7

 
4.9

 
3.8

 
2.3

 
6

 
164

Total core deposits
79.0

 
79.1

 
77.6

 
75.4

 
73.4

 
0

 
8

Other domestic deposits of $250,000 or more
0.3

 
0.3

 
0.3

 
0.2

 
0.2

 
(3
)
 
36

Brokered deposits and negotiable CDs
3.4

 
3.5

 
3.5

 
3.7

 
3.3

 
(3
)
 
3

Total deposits
$
82.7

 
$
82.9

 
$
81.4

 
$
79.3

 
$
76.9

 
0
 %
 
8
 %

 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
$
2.3

 
$
1.0

 
$
1.7

 
$
3.1

 
$
5.2

 
131
 %
 
(56
)%
Long-term debt
9.0

 
8.9

 
8.9

 
9.2

 
9.0

 
1

 
0

Total debt
$
11.3

 
$
9.9

 
$
10.6

 
$
12.3

 
$
14.2

 
14
 %
 
(20
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
$
74.1

 
$
72.4

 
$
71.9

 
$
71.2

 
$
70.6

 
2
 %
 
5
 %
See Page 6 of Quarterly Financial Supplement for additional detail.

Average total interest-bearing liabilities for the 2019 first quarter increased $3.6 billion , or 5% , from the year-ago quarter. Average total deposits increased $5.8 billion , or 8% , from the year-ago quarter, while average total core deposits increased $5.6 billion , or 8% . Average core certificates of deposit increased $3.8 billion , or 164% , reflecting consumer deposit growth initiatives primarily in the first three quarters of 2018. Average money market deposits increased $2.3 billion , or 11% , reflecting the shift in promotional pricing to consumer money market accounts in mid-2018. Average interest-bearing demand deposits increased $1.1 billion , or 6% , primarily driven by the shift in commercial balances from noninterest-bearing to interest-bearing checking. Savings and other domestic deposits decreased $0.9 billion , or 8% , primarily reflecting a continued shift in consumer product mix. Average noninterest-bearing demand deposits decreased $0.6 billion , or 3% , primarily driven by the aforementioned shift in commercial checking balances, partially offset by continued growth in consumer noninterest-bearing checking. Average short-term borrowings decreased $2.9 billion , or 56% , as growth in core deposits reduced reliance on wholesale funding. As of March 31, 2019 , approximately $845 million of deposits are held-for-sale associated with the previously-mentioned pending Wisconsin branch sale (included in total deposits in Table 4 above).
Compared to the 2018 fourth quarter , average total interest-bearing liabilities increased $1.7 billion , or 2% . Average short-term borrowings increased $1.3 billion , or 131% , as loan growth and seasonality in deposits drove increased borrowings in the quarter.



5



Noninterest Income
Table 5 – Noninterest Income – Modest Year-over-Year Growth, While Linked Quarter Comparisons Impacted by Normal Seasonality
 
2019
 
2018
 
 
 
First
 
Fourth
 
Third
 
Second
 
First
 
Change (%)
($ in millions)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
LQ
 
YOY
Service charges on deposit accounts
$
87

 
$
94

 
$
93

 
$
91

 
$
86

 
(7
)%
 
1
 %
Card and payment processing income
56

 
58

 
57

 
56

 
53

 
(3
)
 
6

Trust and investment management services
44

 
42

 
43

 
42

 
44

 
5

 
0

Mortgage banking income
21

 
23

 
31

 
28

 
26

 
(9
)
 
(19
)
Capital markets fees
22

 
34

 
26

 
26

 
21

 
(35
)
 
5

Insurance income
21

 
21

 
19

 
21

 
21

 
0

 
0

Bank owned life insurance income
16

 
16

 
19

 
17

 
15

 
0

 
7

Gain on sale of loans and leases
13

 
16

 
16

 
15

 
8

 
(19
)
 
63

Securities gains (losses)
0

 
(19
)
 
(2
)
 
0

 
0

 
NM

 
NM

Other income
39

 
44

 
40

 
40

 
40

 
(11
)
 
(3
)
Total noninterest income
$
319

 
$
329

 
$
342

 
$
336

 
$
314

 
(3
)%
 
2
 %
See Pages 9-10 of Quarterly Financial Supplement for additional detail.

Total noninterest income for the 2019 first quarter increased $5 million , or 2% , from the year-ago quarter. Gain on sale of loans and leases increased $5 million , or 63% , primarily reflecting the gain on the sale of asset finance leases and higher SBA sales. Mortgage banking income decreased $5 million , or 19% , primarily reflecting net mortgage servicing rights (MSR) risk management-related activities and lower origination volume.
Compared to the 2018 fourth quarter , total noninterest income decreased $10 million , or 3% . Securities losses were less than $1 million compared to $19 million in the prior quarter, reflecting the portfolio repositioning completed in the 2018 fourth quarter. Capital market fees decreased $12 million , or 35% , primarily driven by $6 million of unfavorable commodities derivatives mark-to-market adjustments related to a commercial customer default and decreased interest rate derivative and syndication activity. Service charges on deposit accounts decreased $7 million , or 7% , primarily reflecting seasonality. Other income decreased $5 million , or 11% , primarily reflecting lower income on terminated asset finance leases.



6



Noninterest Expense
Table 6 – Noninterest Expense – Continued Thoughtful Investment in Colleagues and Digital Technology
 
2019
 
2018
 
 
 
First
 
Fourth
 
Third
 
Second
 
First
 
Change (%)
($ in millions)
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
LQ
 
YOY
Personnel costs
$
394

 
$
399

 
$
388

 
$
396

 
$
376

 
(1
)%
 
5
 %
Outside data processing and other services
81

 
83

 
69

 
69

 
73

 
(2
)
 
11

Net occupancy
42

 
70

 
38

 
35

 
41

 
(40
)
 
2

Equipment
40

 
48

 
38

 
38

 
40

 
(17
)
 
0

Deposit and other insurance expense
8

 
9

 
18

 
18

 
18

 
(11
)
 
(56
)
Professional services
12

 
17

 
17

 
15

 
11

 
(29
)
 
9

Marketing
7

 
15

 
12

 
18

 
8

 
(53
)
 
(13
)
Amortization of intangibles
13

 
13

 
13

 
13

 
14

 
0

 
(7
)
Other expense
56

 
57

 
58

 
50

 
52

 
(2
)
 
8

Total noninterest expense
$
653

 
$
711

 
$
651

 
$
652

 
$
633

 
(8
)%
 
3
 %
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Average full-time equivalent employees
15.7

 
15.7

 
15.8

 
15.7

 
15.6

 
0
 %
 
1
 %
See Page 9 of Quarterly Financial Supplement for additional detail.

Total noninterest expense for the 2019 first quarter increased $20 million , or 3% , from the year-ago quarter. Personnel costs increased $18 million , or 5% , primarily reflecting strategic hiring, the implementation of annual merit increases in the 2018 second quarter, and increased benefits costs. Outside data processing and other services increased $8 million , or 11% , primarily driven by higher technology investment costs. Deposit and other insurance expense decreased $10 million , or 56% , due to the discontinuation of the FDIC surcharge in the 2018 fourth quarter.
Total noninterest expense decreased $58 million , or 8% , from the 2018 fourth quarter . Net occupancy decreased $28 million , or 40% , reflecting $28 million of branch and facility consolidation-related expense in the 2018 fourth quarter. Equipment decreased $8 million , or 17% , reflecting $7 million of branch and facility consolidation-related expense in the 2018 fourth quarter. Marketing expense decreased $8 million , or 53% , reflecting the timing of marketing campaigns and deposit promotions. Personnel costs decreased $5 million , or 1% , primarily reflecting lower performance-based incentive compensation.



7



Table 7 – Credit Quality Metrics – NCOs Near Low End of Average Through-the-Cycle Target Range
 
2019
 
2018
($ in millions)
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
Total nonaccrual loans and leases
$
417

 
$
340

 
$
370

 
$
378

 
$
383

Total other real estate
18

 
23

 
27

 
28

 
30

Other NPAs (1)
26

 
24

 
6

 
6

 
7

Total nonperforming assets
461

 
387

 
403

 
412

 
420

Accruing loans and leases past due 90 days or more
147

 
170

 
154

 
132

 
106

NPAs + accruing loans and lease past due 90 days or more
$
608

 
$
557

 
$
557

 
$
544

 
$
526

NAL ratio (2)
0.56
%
 
0.45
%
 
0.50
%
 
0.52
%
 
0.54
%
NPA ratio (3)
0.61

 
0.52

 
0.55

 
0.57

 
0.59

(NPAs+90 days)/(Loans+OREO)
0.81

 
0.74

 
0.76

 
0.75

 
0.74

Provision for credit losses
$
67

 
$
60

 
$
53

 
$
56

 
$
66

Net charge-offs
71

 
50

 
29

 
28

 
38

Net charge-offs / Average total loans
0.38
%
 
0.27
%
 
0.16
%
 
0.16
%
 
0.21
%
Allowance for loans and lease losses (ALLL)
$
764

 
$
772

 
$
761

 
$
741

 
$
721

Allowance for unfunded loan commitments and letters of credit
100

 
96

 
97

 
93

 
85

Allowance for credit losses (ACL)
$
864

 
$
868

 
$
858

 
$
834

 
$
806

ALLL as a % of:
 
 
 
 
 
 
 
 
 
Total loans and leases
1.02
%
 
1.03
%
 
1.04
%
 
1.02
%
 
1.01
%
NALs
183

 
228

 
206

 
197

 
188

NPAs
166

 
200

 
189

 
180

 
172

(1)
Other nonperforming assets include certain impaired investment securities and/or nonaccrual loans held-for-sale.
(2)
Total NALs as a % of total loans and leases.
(3)
Total NPAs as a % of sum of loans and leases, other real estate owned, and other NPAs.
See Pages 11-14 of Quarterly Financial Supplement for additional detail.

Overall asset quality performance remained consistent with prior periods although there was some volatility in the commercial portfolio. The consumer portfolio metrics continue to reflect our focus on high quality borrowers, and a modest seasonal impact evident across our portfolios.  The commercial portfolios show higher net charge-offs (NCOs) and nonaccrual loans and leases (NALs) in the first quarter associated with a small number of specific borrowers, but has generally performed consistently, with some quarter-to-quarter volatility as a result of the absolute low level of problem loans.
Nonperforming assets (NPAs) increased to $461 million , or 0.61% of total loans and leases and OREO. Nonaccrual loans and leases increased $34 million , or 9% , from the year-ago quarter to $417 million , or 0.56% of total loans and leases. The year-over-year increase was centered in the C&I portfolio, partially offset by a decrease in the commercial real estate, residential mortgage, and home equity portfolios. OREO balances decreased $12 million , or 40% , primarily reflecting a continued reduction in residential properties. On a year-over-year basis, there is also an increase in Other NPAs associated with the investment portfolio. On a linked quarter basis, NALs increased $77 million , or 23% , while NPAs increased $74 million , or 19% .
The provision for credit losses increased $1 million year-over-year to $67 million in the 2019 first quarter . Net charge-offs increased $33 million to $71 million . The increase was centered in two specific commercial credit relationships. Consumer charge-offs have remained consistent over the past year. NCOs represented an annualized 0.38% of average loans and leases in the current quarter, up from 0.27% in the prior quarter and up from 0.21% in the year-ago quarter. We remain confident in the long-term performance of our credit portfolios.
The allowance for loan and lease losses as a percentage of total loans and leases increased to 1.02% compared to 1.01% a year ago, while the ALLL as a percentage of period-end total NALs decreased to 183% from 188% over the same period. The increase in the ALLL is primarily the result of loan growth. We believe the level


8



of the ALLL and ACL are appropriate given the low level of problem loans and the current composition of the overall loan and lease portfolio.

Capital
Table 8 – Capital Ratios – Managing Capital Ratios within Targeted Ranges
 
 
2019
 
2018
($ in billions)
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
Tangible common equity / tangible assets ratio
 
7.57
%
 
7.21
%
 
7.25
%
 
7.78
%
 
7.70
%
Common equity tier 1 risk-based capital ratio (1)
 
9.84
%
 
9.65
%
 
9.89
%
 
10.53
%
 
10.45
%
Regulatory Tier 1 risk-based capital ratio (1)
 
11.25
%
 
11.06
%
 
11.33
%
 
11.99
%
 
11.94
%
Regulatory Total risk-based capital ratio (1)
 
13.11
%
 
12.98
%
 
13.36
%
 
13.97
%
 
13.92
%
Total risk-weighted assets (1)
 
$
86.0

 
$
85.7

 
$
83.6

 
$
83.0

 
$
81.4

(1)
March 31, 2019 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets.
See Pages 15-16 of Quarterly Financial Supplement for additional detail.

The tangible common equity to tangible assets ratio was 7.57% at March 31, 2019 , down 13 basis points from a year ago. Common Equity Tier 1 (CET1) risk-based capital ratio was 9.84% , down from 10.45% a year ago. The regulatory Tier 1 risk-based capital ratio was 11.25% compared to 11.94% at March 31, 2018 . All capital ratios were impacted by the repurchase of 60.5 million common shares over the last four quarters. The Company repurchased $25 million of common stock during the 2019 first quarter at an average cost of $13.64 per share. There is $152 million of share repurchase authorization remaining under the 2018 Capital Plan.

Income Taxes
The provision for income taxes was $63 million in the 2019 first quarter compared to $59 million in the 2018 first quarter . The effective tax rates for the 2019 first quarter and 2018 first quarter were 15.0% and 15.3% , respectively. The 2019 first quarter and 2018 first quarter included $2 million and $3 million, respectively, of tax benefits related to stock-based compensation.
At March 31, 2019 , we had a net federal deferred tax liability of $159 million and a net state deferred tax asset of $35 million.

Expectations - 2019
With the assumption of no interest rate hikes in 2019, full-year revenue is expected to increase approximately 4% to 7%. The full-year NIM is expected to remain relatively flat on a GAAP basis versus 2018, inclusive of the anticipated reduction in the benefit of purchase accounting and the cost of the hedging strategy we began implementing in the 2019 first quarter. The full-year core NIM is expected to expand modestly. Full-year noninterest expense is expected to increase approximately 2% to 4%.
Average loans and leases are expected to increase approximately 4% to 6% on an annual basis. Average total deposits are expected to increase approximately 4% to 6% on an annual basis.
Asset quality metrics are expected to remain better than our average through-the-cycle target ranges, with some moderate quarterly volatility.
The effective tax rate for 2019 is expected to be in the range of 15.5% to 16.5%.
Conference Call / Webcast Information


9



Huntington’s senior management will host an earnings conference call on April 25, 2019 , at 9:00 a.m. (Eastern Daylight Time). The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington’s website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029 ; Conference ID # 13688990 . Slides will be available in the Investor Relations section of Huntington’s website about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s website. A telephone replay will be available approximately two hours after the completion of the call through May 10, 2019 at (877) 660-6853 or (201) 612-7415 ; conference ID # 13688990 .
Please see the 2019 First Quarter Quarterly Financial Supplement for additional detailed financial performance metrics. This document can be found on the Investor Relations section of Huntington's website,             http://www.huntington.com.

About Huntington
Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio, with $108 billion of assets and a network of 898 full-service branches, including 12 Private Client Group offices, and 1,727 ATMs across eight Midwestern states. Founded in 1866, The Huntington National Bank and its affiliates provide consumer, small business, commercial, treasury management, wealth management, brokerage, trust, and insurance services. Huntington also provides vehicle finance, equipment finance, national settlement, and capital market services that extend beyond its core states. Visit huntington.com for more information.

Caution regarding Forward-Looking Statements
This communication contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; movements in interest rates; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and BCFP; and other factors that may affect our future results. Additional factors that could cause results to differ materially from those described above can be found in our 2018 Annual Report on Form 10-K, as well as our subsequent Securities and Exchange Commission ("SEC") filings, which are on file with the SEC and available in the “Investor Relations” section of our website, http://www.huntington.com , under the heading “Publications and Filings.”
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We do not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
Basis of Presentation


10



Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, conference call slides, or the Form 8-K related to this document, all of which can be found in the Investor Relations section of Huntington’s website,
http://www.huntington.com.
Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. For example, loan and deposit growth rates, as well as net charge-off percentages, are most often expressed in terms of an annual rate like 8%. As such, a 2% growth rate for a quarter would represent an annualized 8% growth rate.
Fully-Taxable Equivalent Interest Income and Net Interest Margin
Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. This adjustment puts all earning assets, most notably tax-exempt municipal securities and certain lease assets, on a common basis that facilitates comparison of results to results of competitors.
Earnings per Share Equivalent Data
Significant income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total corporate earnings per share performance excluding the impact of such items. Investors may also find this information helpful in their evaluation of the company’s financial performance against published earnings per share mean estimate amounts, which typically exclude the impact of Significant Items. Earnings per share equivalents are usually calculated by applying an effective tax rate to a pre-tax amount to derive an after-tax amount, which is divided by the average shares outstanding during the respective reporting period. Occasionally, when the item involves special tax treatment, the after-tax amount is disclosed separately, with this then being the amount used to calculate the earnings per share equivalent.
Rounding
Please note that columns of data in this document may not add due to rounding.
Significant Items
From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management at that time to be infrequent or short term in nature. We refer to such items as “Significant Items”. Most often, these Significant Items result from factors originating outside the company – e.g., regulatory actions/assessments, windfall gains, changes in accounting principles, one-time tax assessments/refunds, and litigation actions. In other cases they may result from management decisions associated with significant corporate actions out of the ordinary course of business – e.g., merger/restructuring charges, recapitalization actions, and goodwill impairment.
Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not define a Significant Item. For example, changes in the provision for credit losses, gains/losses from investment activities, and asset valuation write-downs reflect ordinary banking activities and are, therefore, typically excluded from consideration as a Significant Item.
Management believes the disclosure of “Significant Items”, when appropriate, aids analysts/investors in better understanding corporate performance and trends so that they can ascertain which of such items, if any, they may wish to include/exclude from their analysis of the company’s performance - i.e., within the context of determining how that performance differed from their expectations, as well as how, if at all, to adjust their estimates of future performance accordingly. To this end, Management has adopted a practice of listing


11



“Significant Items” in its external disclosure documents (e.g., earnings press releases, quarterly performance discussions, investor presentations, and Forms 10-Q and 10-K).
“Significant Items” for any particular period are not intended to be a complete list of items that may materially impact current or future period performance. A number of items could materially impact these periods, including those which may be described from time to time in Huntington’s filings with the Securities and Exchange Commission.


###


12


Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
March 31, 2019
Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Notes:
The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation.
Fully-Taxable Equivalent Basis
Interest income, yields, and ratios on a FTE basis are considered non-GAAP financial measures.  Management believes net interest income on a FTE basis provides a more accurate picture of the interest margin for comparison purposes.  The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources.  The FTE basis assumes a federal statutory tax rate of 21 percent.
Non-Regulatory Capital Ratios
In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:
Tangible common equity to tangible assets, and
Tangible common equity to risk-weighted assets using Basel III definition.
These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these ratios allows readers to compare the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.
Because there are no standardized definitions for these non-regulatory capital ratios, the Company’s calculation methods may differ from those used by other financial services companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure.




Huntington Bancshares Incorporated
Quarterly Key Statistics
(Unaudited)
 
Three Months Ended
 
 
 
 
 
(dollar amounts in millions, except per data, share count in thousands)
March 31,
 
December 31,
 
March 31,
 
 
Percent Changes vs.
2019
 
2018
 
2018
 
 
4Q18
 
1Q18
Net interest income(2)
$
829


$
841


$
777

 
 
(1
)%
 
7
 %
FTE adjustment
(7
)
 
(8
)
 
(7
)
 
 
13

 

Net interest income
822

 
833

 
770

 
 
(1
)
 
7

Provision for credit losses
67

 
60

 
66

 
 
12

 
2

Noninterest income
319

 
329

 
314

 
 
(3
)
 
2

Noninterest expense
653

 
711

 
633

 
 
(8
)
 
3

Income before income taxes
421

 
391

 
385

 
 
8

 
9

Provision for income taxes
63

 
57

 
59

 
 
11

 
7

Net income
358

 
334

 
326

 
 
7

 
10

Dividends on preferred shares
19

 
19

 
12

 
 

 
58

Net income applicable to common shares
$
339

 
$
315

 
$
314

 
 
8
 %
 
8
 %
 
 
 
 
 
 
 
 


 


Net income per common share - diluted
$
0.32

 
$
0.29

 
$
0.28

 
 
10
 %
 
14
 %
Cash dividends declared per common share
0.14

 
0.14

 
0.11

 
 

 
27

Tangible book value per common share at end of period
7.67

 
7.34

 
7.12

 
 
4

 
8

Number of common shares repurchased
1,833

 
14,967

 
3,007

 
 
(88
)
 
(39
)
Average common shares - basic
1,046,995

 
1,054,460

 
1,083,836

 
 
(1
)
 
(3
)
Average common shares - diluted
1,065,638

 
1,073,055

 
1,124,778

 
 
(1
)
 
(5
)
Ending common shares outstanding
1,046,440

 
1,046,767

 
1,101,796

 
 

 
(5
)
Return on average assets
1.35
 %
 
1.25
%
 
1.27
 %
 
 


 


Return on average common shareholders’ equity
13.8

 
12.9

 
13.0

 
 


 


Return on average tangible common shareholders’ equity(1)
18.3

 
17.3

 
17.5

 
 


 


Net interest margin(2)
3.39

 
3.41

 
3.30

 
 


 


Efficiency ratio(3)
55.8

 
58.7

 
56.8

 
 


 


Effective tax rate
15.0

 
14.6

 
15.3

 
 


 


Average total assets
$
107,511

 
$
105,877

 
$
103,848

 
 
2

 
4

Average earning assets
99,212

 
97,752

 
95,412

 
 
1

 
4

Average loans and leases
74,775

 
73,822

 
70,484

 
 
1

 
6

Average loans and leases - linked quarter annualized growth rate
5.2
 %
 
5.9
%
 
9.0
 %
 
 


 


Average total deposits
$
82,772

 
$
82,931

 
$
76,946

 
 

 
8

Average core deposits(4)
79,033

 
79,078

 
73,392

 
 

 
8

Average core deposits - linked quarter annualized growth rate
(0.2
)%
 
7.2
%
 
(3.0
)%
 
 


 


Average shareholders’ equity
11,156

 
10,889

 
10,855

 
 
2

 
3

Average common total shareholders' equity
9,953

 
9,686

 
9,794

 
 
3

 
2

Average tangible common shareholders' equity
7,746

 
7,460

 
7,533

 
 
4

 
3

Total assets at end of period
108,203

 
108,781

 
104,246

 
 
(1
)
 
4

Total shareholders’ equity at end of period
11,432

 
11,102

 
11,308

 
 
3

 
1

 
 
 
 
 
 
 
 
 
 
 
NCOs as a % of average loans and leases
0.38
 %
 
0.27
%
 
0.21
 %
 
 
 
 
 
NAL ratio
0.56

 
0.45

 
0.54

 
 
 
 
 
NPA ratio(5)
0.61

 
0.52

 
0.59

 
 


 


Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
1.02

 
1.03

 
1.01

 
 
 
 
 
Common equity tier 1 risk-based capital ratio(6)
9.84

 
9.65

 
10.45

 
 
 
 
 
Tangible common equity / tangible asset ratio(7)
7.57

 
7.21

 
7.70

 
 
 
 
 
See Notes to the Quarterly Key Statistics.

1














Key Statistics Footnotes
(1)
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 21% tax rate.
(2)
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
(3)
Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
(4)
Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.
(5)
NPAs include other real estate owned.
(6)
March 31, 2019 , figures are estimated.
(7)
Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.



2














Huntington Bancshares Incorporated
Consolidated Balance Sheets
 
March 31,
 
December 31,
 

(dollar amounts in millions)
2019
 
2018
 
Percent Changes
 
(Unaudited)
 

 
 
Assets
 
 
 
 
 
Cash and due from banks
$
804

 
$
1,108

 
(27
)%
Interest-bearing deposits in Federal Reserve Bank
532

 
1,564

 
(66
)
Interest-bearing deposits in banks
147

 
53

 
177

Trading account securities
166

 
105

 
58

Available-for-sale securities
13,982

 
13,780

 
1

Held-to-maturity securities
8,747

 
8,565

 
2

Other securities
486

 
565

 
(14
)
Loans held for sale
693

 
804

 
(14
)
Loans and leases(1)
75,079

 
74,900

 

Allowance for loan and lease losses
(764
)
 
(772
)
 
1

Net loans and leases
74,315

 
74,128

 

Bank owned life insurance
2,516

 
2,507

 

Premises and equipment
784

 
790

 
(1
)
Goodwill
1,990

 
1,989

 

Service rights and other intangible assets
513

 
535

 
(4
)
Other assets
2,528

 
2,288

 
10

Total assets
$
108,203

 
$
108,781

 
(1
)%
 
 
 
 
 


Liabilities and shareholders’ equity
 
 
 
 


Liabilities
 
 
 
 


Deposits(2)
$
82,155

 
$
84,774

 
(3
)%
Short-term borrowings
2,862

 
2,017

 
42

Long-term debt
9,400

 
8,625

 
9

Other liabilities
2,354

 
2,263

 
4

Total liabilities
96,771

 
97,679

 
(1
)
 
 
 
 
 


Shareholders' equity
 
 
 
 


Preferred stock
1,203

 
1,203

 

Common stock
11

 
11

 

Capital surplus
9,167

 
9,181

 

Less treasury shares, at cost
(45
)
 
(45
)
 

Accumulated other comprehensive loss
(455
)
 
(609
)
 
25

Retained earnings (deficit)
1,551

 
1,361

 
14

Total shareholders’ equity
11,432

 
11,102

 
3

Total liabilities and shareholders’ equity
$
108,203

 
$
108,781

 
(1
)%
 
 
 
 
 
 
Common shares authorized (par value of $0.01)
1,500,000,000

 
1,500,000,000

 
 
Common shares outstanding
1,046,440,116

 
1,046,767,252

 
 
Treasury shares outstanding
3,813,304

 
3,817,385

 
 
Preferred stock, authorized shares
6,617,808

 
6,617,808

 
 
Preferred shares outstanding
740,500

 
740,500

 
 
(1)
See page 4 for detail of loans and leases.
(2)
See page 5 for detail of deposits.

3














Huntington Bancshares Incorporated
Loans and Leases Composition
(Unaudited)
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
(dollar amounts in millions)
2019
 
2018
 
2018
 
2018
 
2018
Ending Balances by Type:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
30,972

 
41
%
 
$
30,605

 
41
%
 
$
29,196

 
40
%
 
$
28,850

 
40
%
 
$
28,622

 
40
%
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
1,152

 
2

 
1,185

 
2

 
1,111

 
2

 
1,083

 
1

 
1,167

 
2

Commercial
5,643

 
8

 
5,657

 
8

 
5,962

 
8

 
6,118

 
8

 
6,245

 
9

Commercial real estate