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:
|
July 21, 2017
|
|
By:
|
|
/s/ Howell D. McCullough III
|
|
|
|
|
|
Howell D. McCullough III
|
|
|
|
|
|
Chief Financial Officer
|
|
|
|
•
|
$295 million
, or
37%
, year-over-year increase in fully-taxable equivalent revenue, comprised of a
$241 million
, or
47%
, increase in fully-taxable equivalent net interest income and a
$54 million
, or
20%
,
increase
in noninterest income
|
•
|
Net interest margin of
3.31%
, an increase of
25
basis points from the year-ago quarter
|
•
|
$171 million
, or
33%
, year-over-year
increase
in noninterest expense, including a net increase of $29 million of FirstMerit acquisition-related expense
|
•
|
$15.4 billion
, or
30%
, year-over-year
increase
in average loans and leases, comprised of an
$8.5 billion
, or
32%
,
increase
in commercial loans and a
$6.9 billion
, or
27%
,
increase
in consumer loans
|
•
|
$8.5 billion
, or
56%
, year-over-year increase in average securities, including a net increase of $0.6 billion of direct purchase municipal instruments in our Commercial Banking segment
|
•
|
$20.4 billion
, or
39%
, year-over-year
increase
in average core deposits, driven by a
$9.0 billion
, or
107%
, increase in interest-bearing demand deposits, a
$6.5 billion
, or
120%
,
increase
in savings and other domestic deposits, and a
$5.1 billion
, or
31%
,
increase
in noninterest-bearing demand deposits
|
◦
|
Consumer deposits from FirstMerit customers and branches increased 2% between August 2016 and June 2017
|
•
|
Net charge-offs equated to
0.21%
of average loans and leases, representing the thirteenth consecutive quarter below the long-term target range of 0.35% to 0.55%
|
•
|
Nonperforming asset ratio of
0.61%
, down from
0.68%
a quarter ago and
0.93%
a year ago
|
◦
|
Automobile loans continue to perform well, with net charge-offs down 16 basis points sequentially to 0.29% and nonaccrual loans down 22% to $4 million, or 0.03% of Automobile loans
|
•
|
$0.55, or
8%
, year-over-year decrease, but $0.19, or 3%, linked-quarter increase in tangible book value per common share (TBVPS) to
$6.74
|
|
2017
|
|
2016
|
||||||||||||||||
($ in millions, except per share data)
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|||||||||||
Net Income
|
$
|
272
|
|
|
$
|
208
|
|
|
$
|
239
|
|
|
$
|
127
|
|
|
$
|
175
|
|
Diluted earnings per common share
|
0.23
|
|
|
0.17
|
|
|
0.20
|
|
|
0.11
|
|
|
0.19
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.09
|
%
|
|
0.84
|
%
|
|
0.95
|
%
|
|
0.58
|
%
|
|
0.96
|
%
|
|||||
Return on average common equity
|
10.6
|
|
|
8.2
|
|
|
9.4
|
|
|
5.4
|
|
|
9.6
|
|
|||||
Return on average tangible common equity
|
14.4
|
|
|
11.3
|
|
|
12.9
|
|
|
7.0
|
|
|
11.0
|
|
|||||
Net interest margin
|
3.31
|
|
|
3.30
|
|
|
3.25
|
|
|
3.18
|
|
|
3.06
|
|
|||||
Efficiency ratio
|
62.9
|
|
|
65.7
|
|
|
61.6
|
|
|
75.0
|
|
|
66.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share
|
$
|
6.74
|
|
|
$
|
6.55
|
|
|
$
|
6.43
|
|
|
$
|
6.48
|
|
|
$
|
7.29
|
|
Cash dividends declared per common share
|
0.08
|
|
|
0.08
|
|
|
0.08
|
|
|
0.07
|
|
|
0.07
|
|
|||||
Average diluted shares outstanding (000’s)
|
1,108,527
|
|
|
1,108,617
|
|
|
1,104,358
|
|
|
952,081
|
|
|
810,371
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average earning assets
|
$
|
91,728
|
|
|
$
|
91,139
|
|
|
$
|
91,463
|
|
|
$
|
79,687
|
|
|
$
|
67,863
|
|
Average loans and leases
|
67,345
|
|
|
66,981
|
|
|
66,405
|
|
|
60,722
|
|
|
51,932
|
|
|||||
Average core deposits
|
72,291
|
|
|
71,500
|
|
|
72,070
|
|
|
62,022
|
|
|
51,895
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity / tangible assets ratio
|
7.41
|
%
|
|
7.28
|
%
|
|
7.16
|
%
|
|
7.14
|
%
|
|
7.96
|
%
|
|||||
Common equity Tier 1 risk-based capital ratio
|
9.88
|
|
|
9.74
|
|
|
9.56
|
|
|
9.09
|
|
|
9.80
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NCOs as a % of average loans and leases
|
0.21
|
%
|
|
0.24
|
%
|
|
0.26
|
%
|
|
0.26
|
%
|
|
0.13
|
%
|
|||||
NAL ratio
|
0.54
|
|
|
0.60
|
|
|
0.63
|
|
|
0.61
|
|
|
0.88
|
|
|||||
ACL as a % of total loans and leases
|
1.11
|
|
|
1.14
|
|
|
1.10
|
|
|
1.06
|
|
|
1.33
|
|
(1)
|
Favorable (unfavorable) impact on net income.
|
(2)
|
EPS reflected on a fully diluted basis.
|
|
2017
|
|
2016
|
|
|
|
|||||||||||||||||||
($ in millions)
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
LQ
|
|
YOY
|
||||||||||||||
Net interest income
|
$
|
745
|
|
|
$
|
730
|
|
|
$
|
735
|
|
|
$
|
625
|
|
|
$
|
506
|
|
|
2
|
%
|
|
47
|
%
|
FTE adjustment
|
12
|
|
|
12
|
|
|
13
|
|
|
11
|
|
|
10
|
|
|
—
|
|
|
20
|
|
|||||
Net interest income - FTE
|
757
|
|
|
742
|
|
|
748
|
|
|
636
|
|
|
516
|
|
|
2
|
|
|
47
|
|
|||||
Noninterest income
|
325
|
|
|
312
|
|
|
334
|
|
|
302
|
|
|
271
|
|
|
4
|
|
|
20
|
|
|||||
Total revenue - FTE
|
$
|
1,082
|
|
|
$
|
1,054
|
|
|
$
|
1,082
|
|
|
$
|
938
|
|
|
$
|
787
|
|
|
3
|
%
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Change bp
|
|||||||||
Yield / Cost
|
|
|
|
|
|
|
|
|
|
|
LQ
|
|
YOY
|
|||||||
Total earning assets
|
3.75
|
%
|
|
3.70
|
%
|
|
3.60
|
%
|
|
3.52
|
%
|
|
3.41
|
%
|
|
5
|
|
|
34
|
|
Total loans and leases
|
4.15
|
|
|
4.07
|
|
|
3.95
|
|
|
3.81
|
|
|
3.63
|
|
|
8
|
|
|
52
|
|
Total securities
|
2.55
|
|
|
2.54
|
|
|
2.58
|
|
|
2.47
|
|
|
2.56
|
|
|
1
|
|
|
(1
|
)
|
Total interest-bearing liabilities
|
0.61
|
|
|
0.54
|
|
|
0.48
|
|
|
0.49
|
|
|
0.50
|
|
|
7
|
|
|
11
|
|
Total interest-bearing deposits
|
0.31
|
|
|
0.26
|
|
|
0.23
|
|
|
0.22
|
|
|
0.23
|
|
|
5
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest rate spread
|
3.14
|
|
|
3.16
|
|
|
3.12
|
|
|
3.03
|
|
|
2.91
|
|
|
(2
|
)
|
|
23
|
|
Impact of noninterest-bearing funds on margin
|
0.17
|
|
|
0.14
|
|
|
0.13
|
|
|
0.15
|
|
|
0.15
|
|
|
3
|
|
|
2
|
|
Net interest margin
|
3.31
|
%
|
|
3.30
|
%
|
|
3.25
|
%
|
|
3.18
|
%
|
|
3.06
|
%
|
|
1
|
|
|
25
|
|
|
2017
|
|
2016
|
|
|
|
|
||||||||||||||||||
($ in billions)
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
LQ
|
|
YOY
|
||||||||||||||
Commercial and industrial
|
$
|
28.0
|
|
|
$
|
27.9
|
|
|
$
|
27.7
|
|
|
$
|
25.0
|
|
|
$
|
21.3
|
|
|
—
|
%
|
|
31
|
%
|
Commercial real estate
|
7.1
|
|
|
7.4
|
|
|
7.2
|
|
|
6.4
|
|
|
5.2
|
|
|
(4
|
)
|
|
35
|
|
|||||
Total commercial
|
35.1
|
|
|
35.3
|
|
|
34.9
|
|
|
31.3
|
|
|
26.6
|
|
|
(1
|
)
|
|
32
|
|
|||||
Automobile
|
11.3
|
|
|
11.1
|
|
|
10.9
|
|
|
11.4
|
|
|
10.1
|
|
|
2
|
|
|
12
|
|
|||||
Home equity
|
10.0
|
|
|
10.1
|
|
|
10.1
|
|
|
9.3
|
|
|
8.4
|
|
|
(1
|
)
|
|
18
|
|
|||||
Residential mortgage
|
8.0
|
|
|
7.8
|
|
|
7.7
|
|
|
7.0
|
|
|
6.2
|
|
|
3
|
|
|
29
|
|
|||||
RV and marine finance
|
2.0
|
|
|
1.9
|
|
|
1.8
|
|
|
0.9
|
|
|
—
|
|
|
9
|
|
|
NM
|
|
|||||
Other consumer
|
1.0
|
|
|
0.9
|
|
|
1.0
|
|
|
0.8
|
|
|
0.6
|
|
|
7
|
|
|
60
|
|
|||||
Total consumer
|
32.3
|
|
|
31.7
|
|
|
31.5
|
|
|
29.4
|
|
|
25.4
|
|
|
2
|
|
|
27
|
|
|||||
Total loans and leases
|
67.3
|
|
|
67.0
|
|
|
66.4
|
|
|
60.7
|
|
|
51.9
|
|
|
1
|
|
|
30
|
|
|||||
Total securities
|
23.8
|
|
|
23.6
|
|
|
22.4
|
|
|
18.2
|
|
|
15.3
|
|
|
—
|
|
|
56
|
|
|||||
Held-for-sale and other earning assets
|
0.6
|
|
|
0.5
|
|
|
2.6
|
|
|
0.8
|
|
|
0.7
|
|
|
22
|
|
|
(6
|
)
|
|||||
Total earning assets
|
$
|
91.7
|
|
|
$
|
91.1
|
|
|
$
|
91.5
|
|
|
$
|
79.7
|
|
|
$
|
67.9
|
|
|
1
|
%
|
|
35
|
%
|
|
2017
|
|
2016
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in billions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Demand deposits - noninterest-bearing
|
$
|
21.6
|
|
|
$
|
21.7
|
|
|
$
|
23.2
|
|
|
$
|
20.0
|
|
|
$
|
16.5
|
|
|
(1
|
)%
|
|
31
|
#160;%
|
Demand deposits - interest-bearing
|
17.4
|
|
|
16.8
|
|
|
15.3
|
|
|
12.4
|
|
|
8.4
|
|
|
4
|
|
|
107
|
|
|||||
Total demand deposits
|
39.0
|
|
|
38.5
|
|
|
38.5
|
|
|
32.4
|
|
|
24.9
|
|
|
1
|
|
|
56
|
|
|||||
Money market deposits
|
19.2
|
|
|
18.7
|
|
|
18.6
|
|
|
18.5
|
|
|
19.5
|
|
|
3
|
|
|
(2
|
)
|
|||||
Savings and other domestic deposits
|
11.9
|
|
|
12.0
|
|
|
12.3
|
|
|
8.9
|
|
|
5.4
|
|
|
(1
|
)
|
|
120
|
|
|||||
Core certificates of deposit
|
2.1
|
|
|
2.3
|
|
|
2.6
|
|
|
2.3
|
|
|
2.0
|
|
|
(8
|
)
|
|
7
|
|
|||||
Total core deposits
|
72.2
|
|
|
71.5
|
|
|
72.0
|
|
|
62.1
|
|
|
51.8
|
|
|
1
|
|
|
39
|
|
|||||
Other domestic deposits of $250,000 or more
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
|
2
|
|
|
19
|
|
|||||
Brokered deposits and negotiable CDs
|
3.8
|
|
|
4.0
|
|
|
4.3
|
|
|
3.9
|
|
|
2.9
|
|
|
(5
|
)
|
|
30
|
|
|||||
Deposits in foreign offices
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
-
|
|
|
(100
|
)
|
|||||
Total deposits
|
$
|
76.5
|
|
|
$
|
76.0
|
|
|
$
|
76.9
|
|
|
$
|
66.6
|
|
|
$
|
55.3
|
|
|
1
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
2.7
|
|
|
$
|
3.8
|
|
|
$
|
2.6
|
|
|
$
|
1.3
|
|
|
$
|
1.0
|
|
|
(29
|
)%
|
|
160
|
%
|
Long-term debt
|
8.7
|
|
|
8.5
|
|
|
8.6
|
|
|
8.5
|
|
|
7.9
|
|
|
2
|
|
|
11
|
|
|||||
Total debt
|
$
|
11.4
|
|
|
$
|
12.3
|
|
|
$
|
11.2
|
|
|
$
|
9.8
|
|
|
$
|
8.9
|
|
|
(7
|
)%
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total interest-bearing liabilities
|
$
|
66.4
|
|
|
$
|
66.5
|
|
|
$
|
64.9
|
|
|
$
|
56.3
|
|
|
$
|
47.8
|
|
|
—
|
%
|
|
39
|
%
|
|
2017
|
|
2016
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Service charges on deposit accounts
|
$
|
88
|
|
|
$
|
83
|
|
|
$
|
92
|
|
|
$
|
87
|
|
|
$
|
76
|
|
|
5
|
%
|
|
16
|
%
|
Cards and payment processing income
|
52
|
|
|
47
|
|
|
49
|
|
|
44
|
|
|
39
|
|
|
11
|
|
|
34
|
|
|||||
Mortgage banking income
|
32
|
|
|
32
|
|
|
38
|
|
|
41
|
|
|
32
|
|
|
2
|
|
|
2
|
|
|||||
Trust and investment management services
|
32
|
|
|
34
|
|
|
34
|
|
|
29
|
|
|
22
|
|
|
(5
|
)
|
|
43
|
|
|||||
Insurance income
|
16
|
|
|
15
|
|
|
16
|
|
|
16
|
|
|
16
|
|
|
4
|
|
|
(1
|
)
|
|||||
Brokerage income
|
16
|
|
|
16
|
|
|
17
|
|
|
15
|
|
|
15
|
|
|
3
|
|
|
12
|
|
|||||
Capital markets fees
|
17
|
|
|
14
|
|
|
19
|
|
|
15
|
|
|
13
|
|
|
19
|
|
|
29
|
|
|||||
Bank owned life insurance income
|
15
|
|
|
18
|
|
|
17
|
|
|
14
|
|
|
13
|
|
|
(13
|
)
|
|
22
|
|
|||||
Gain on sale of loans
|
12
|
|
|
13
|
|
|
25
|
|
|
8
|
|
|
9
|
|
|
(6
|
)
|
|
30
|
|
|||||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
NM
|
|
|
NM
|
|
|||||
Other Income
|
44
|
|
|
41
|
|
|
30
|
|
|
33
|
|
|
36
|
|
|
9
|
|
|
22
|
|
|||||
Total noninterest income
|
$
|
325
|
|
|
$
|
312
|
|
|
$
|
334
|
|
|
$
|
302
|
|
|
$
|
271
|
|
|
4
|
%
|
|
20
|
%
|
|
2017
|
|
2016
|
|
||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
||||||||||
Service charges on deposit accounts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cards and payment processing income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Mortgage banking income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Trust and investment management services
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Insurance income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Brokerage income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Capital markets fees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Bank owned life insurance income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Gain on sale of loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
Other Income
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Total noninterest income
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
2017
|
|
2016
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Service charges on deposit accounts
|
$
|
88
|
|
|
$
|
83
|
|
|
$
|
92
|
|
|
$
|
87
|
|
|
$
|
76
|
|
|
5
|
%
|
|
16
|
%
|
Cards and payment processing income
|
52
|
|
|
47
|
|
|
49
|
|
|
44
|
|
|
39
|
|
|
11
|
|
|
34
|
|
|||||
Mortgage banking income
|
32
|
|
|
32
|
|
|
38
|
|
|
41
|
|
|
32
|
|
|
2
|
|
|
2
|
|
|||||
Trust and investment management services
|
32
|
|
|
34
|
|
|
34
|
|
|
29
|
|
|
22
|
|
|
(5
|
)
|
|
43
|
|
|||||
Insurance income
|
16
|
|
|
15
|
|
|
16
|
|
|
16
|
|
|
16
|
|
|
4
|
|
|
(1
|
)
|
|||||
Brokerage income
|
16
|
|
|
16
|
|
|
17
|
|
|
15
|
|
|
15
|
|
|
3
|
|
|
12
|
|
|||||
Capital markets fees
|
17
|
|
|
14
|
|
|
19
|
|
|
15
|
|
|
13
|
|
|
19
|
|
|
29
|
|
|||||
Bank owned life insurance income
|
15
|
|
|
18
|
|
|
17
|
|
|
14
|
|
|
13
|
|
|
(13
|
)
|
|
22
|
|
|||||
Gain on sale of loans
|
12
|
|
|
13
|
|
|
25
|
|
|
8
|
|
|
9
|
|
|
(6
|
)
|
|
30
|
|
|||||
Securities gains (losses)
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
NM
|
|
|
NM
|
|
|||||
Other Income
|
44
|
|
|
39
|
|
|
31
|
|
|
33
|
|
|
36
|
|
|
13
|
|
|
22
|
|
|||||
Total noninterest income
|
$
|
325
|
|
|
$
|
310
|
|
|
$
|
335
|
|
|
$
|
302
|
|
|
$
|
271
|
|
|
5
|
%
|
|
20
|
%
|
|
2017
|
|
2016
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
392
|
|
|
$
|
382
|
|
|
$
|
360
|
|
|
$
|
405
|
|
|
$
|
299
|
|
|
3
|
%
|
|
31
|
%
|
Outside data processing and other services
|
75
|
|
|
87
|
|
|
89
|
|
|
91
|
|
|
63
|
|
|
(14
|
)
|
|
19
|
|
|||||
Equipment
|
43
|
|
|
47
|
|
|
60
|
|
|
41
|
|
|
32
|
|
|
(8
|
)
|
|
35
|
|
|||||
Net occupancy
|
53
|
|
|
68
|
|
|
49
|
|
|
41
|
|
|
31
|
|
|
(22
|
)
|
|
71
|
|
|||||
Professional services
|
18
|
|
|
18
|
|
|
23
|
|
|
47
|
|
|
21
|
|
|
(1
|
)
|
|
(15
|
)
|
|||||
Marketing
|
19
|
|
|
14
|
|
|
21
|
|
|
14
|
|
|
15
|
|
|
35
|
|
|
28
|
|
|||||
Deposit and other insurance expense
|
20
|
|
|
20
|
|
|
16
|
|
|
15
|
|
|
12
|
|
|
2
|
|
|
68
|
|
|||||
Amortization of intangibles
|
14
|
|
|
14
|
|
|
14
|
|
|
9
|
|
|
4
|
|
|
(1
|
)
|
|
296
|
|
|||||
Other expense
|
60
|
|
|
57
|
|
|
49
|
|
|
48
|
|
|
47
|
|
|
5
|
|
|
27
|
|
|||||
Total noninterest expense
|
$
|
694
|
|
|
$
|
707
|
|
|
$
|
681
|
|
|
$
|
712
|
|
|
$
|
524
|
|
|
(2
|
)%
|
|
33
|
%
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Number of employees (Average full-time equivalent)
|
16.1
|
|
|
16.3
|
|
|
16.0
|
|
|
14.5
|
|
|
12.4
|
|
|
(1
|
)%
|
|
30
|
%
|
|
2017
|
|
2016
|
||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||||
Personnel costs
|
$
|
18
|
|
|
$
|
20
|
|
|
$
|
(5
|
)
|
|
$
|
76
|
|
|
$
|
5
|
|
Outside data processing and other services
|
6
|
|
|
14
|
|
|
15
|
|
|
28
|
|
|
3
|
|
|||||
Equipment
|
4
|
|
|
6
|
|
|
20
|
|
|
5
|
|
|
—
|
|
|||||
Net occupancy
|
14
|
|
|
23
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|||||
Professional services
|
4
|
|
|
4
|
|
|
9
|
|
|
34
|
|
|
11
|
|
|||||
Marketing
|
—
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|||||
Deposit and other insurance expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Amortization of intangibles
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other expense
|
4
|
|
|
5
|
|
|
3
|
|
|
8
|
|
|
2
|
|
|||||
Total noninterest expense
|
$
|
50
|
|
|
$
|
73
|
|
|
$
|
53
|
|
|
$
|
159
|
|
|
$
|
21
|
|
|
2017
|
|
2016
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
374
|
|
|
$
|
362
|
|
|
$
|
365
|
|
|
$
|
329
|
|
|
$
|
294
|
|
|
3
|
%
|
|
27
|
%
|
Outside data processing and other services
|
69
|
|
|
73
|
|
|
73
|
|
|
63
|
|
|
60
|
|
|
(5
|
)
|
|
15
|
|
|||||
Equipment
|
39
|
|
|
41
|
|
|
40
|
|
|
36
|
|
|
32
|
|
|
(5
|
)
|
|
22
|
|
|||||
Net occupancy
|
38
|
|
|
44
|
|
|
42
|
|
|
34
|
|
|
30
|
|
|
(14
|
)
|
|
27
|
|
|||||
Professional services
|
14
|
|
|
14
|
|
|
14
|
|
|
13
|
|
|
11
|
|
|
—
|
|
|
27
|
|
|||||
Marketing
|
19
|
|
|
13
|
|
|
17
|
|
|
14
|
|
|
15
|
|
|
46
|
|
|
27
|
|
|||||
Deposit and other insurance expense
|
20
|
|
|
20
|
|
|
16
|
|
|
15
|
|
|
12
|
|
|
2
|
|
|
68
|
|
|||||
Amortization of intangibles
|
14
|
|
|
14
|
|
|
14
|
|
|
9
|
|
|
4
|
|
|
(1
|
)
|
|
296
|
|
|||||
Other expense
|
56
|
|
|
52
|
|
|
47
|
|
|
40
|
|
|
46
|
|
|
8
|
|
|
22
|
|
|||||
Total noninterest expense
|
$
|
644
|
|
|
$
|
634
|
|
|
$
|
628
|
|
|
$
|
553
|
|
|
$
|
503
|
|
|
2
|
%
|
|
28
|
%
|
|
2017
|
|
2016
|
||||||||||||||||
($ in millions)
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
Total nonaccrual loans and leases
|
$
|
364
|
|
|
$
|
401
|
|
|
$
|
423
|
|
|
$
|
404
|
|
|
$
|
461
|
|
Total other real estate
|
44
|
|
|
50
|
|
|
51
|
|
|
71
|
|
|
29
|
|
|||||
Other NPAs
(1)
|
7
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
415
|
|
|
458
|
|
|
481
|
|
|
475
|
|
|
490
|
|
|||||
Accruing loans and leases past due 90 days or more
|
136
|
|
|
128
|
|
|
129
|
|
|
135
|
|
|
99
|
|
|||||
NPAs + accruing loans and lease past due 90 days or more
|
$
|
551
|
|
|
$
|
586
|
|
|
$
|
610
|
|
|
$
|
610
|
|
|
$
|
589
|
|
NAL ratio
(2)
|
0.54
|
%
|
|
0.60
|
%
|
|
0.63
|
%
|
|
0.61
|
%
|
|
0.88
|
%
|
|||||
NPA ratio
(3)
|
0.61
|
|
|
0.68
|
|
|
0.72
|
|
|
0.72
|
|
|
0.93
|
|
|||||
(NPAs+90 days)/(Loans+OREO)
|
0.81
|
|
|
0.87
|
|
|
0.91
|
|
|
0.92
|
|
|
1.12
|
|
|||||
Provision for credit losses
|
$
|
25
|
|
|
$
|
68
|
|
|
$
|
75
|
|
|
$
|
64
|
|
|
$
|
25
|
|
Net charge-offs
|
36
|
|
|
39
|
|
|
44
|
|
|
40
|
|
|
17
|
|
|||||
Net charge-offs / Average total loans
|
0.21
|
%
|
|
0.24
|
%
|
|
0.26
|
%
|
|
0.26
|
%
|
|
0.13
|
%
|
|||||
Allowance for loans and lease losses
|
$
|
668
|
|
|
$
|
673
|
|
|
$
|
638
|
|
|
$
|
617
|
|
|
$
|
623
|
|
Allowance for unfunded loan commitments and letters of credit
|
85
|
|
|
92
|
|
|
98
|
|
|
88
|
|
|
74
|
|
|||||
Allowance for credit losses (ACL)
|
$
|
753
|
|
|
$
|
765
|
|
|
$
|
736
|
|
|
$
|
705
|
|
|
$
|
697
|
|
ACL as a % of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
1.11
|
%
|
|
1.14
|
%
|
|
1.10
|
%
|
|
1.06
|
%
|
|
1.33
|
%
|
|||||
NALs
|
207
|
|
|
190
|
|
|
174
|
|
|
174
|
|
|
151
|
|
|||||
NPAs
|
181
|
|
|
167
|
|
|
153
|
|
|
148
|
|
|
142
|
|
(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.
|
|
|
2017
|
|
2016
|
||||||||||||||||
($ in millions)
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
Tangible common equity / tangible assets ratio
|
|
7.41
|
%
|
|
7.28
|
%
|
|
7.16
|
%
|
|
7.14
|
%
|
|
7.96
|
%
|
|||||
Common equity tier 1 risk-based capital ratio
(1)
|
|
9.88
|
%
|
|
9.74
|
%
|
|
9.56
|
%
|
|
9.09
|
%
|
|
9.80
|
%
|
|||||
Regulatory Tier 1 risk-based capital ratio
(1)
|
|
11.24
|
%
|
|
11.11
|
%
|
|
10.92
|
%
|
|
10.40
|
%
|
|
11.37
|
%
|
|||||
Regulatory Total risk-based capital ratio
(1)
|
|
13.33
|
%
|
|
13.26
|
%
|
|
13.05
|
%
|
|
12.56
|
%
|
|
13.49
|
%
|
|||||
Total risk-weighted assets
(1)
|
|
$
|
78,369
|
|
|
$
|
77,559
|
|
|
$
|
78,263
|
|
|
$
|
80,513
|
|
|
$
|
60,721
|
|
(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
|
|
|
|
|
|
||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
Percent Changes vs.
|
||||||||||
(amounts in thousands, except per share amounts and as noted)
|
2017
|
|
2017
|
|
2016
|
|
|
1Q17
|
|
2Q16
|
||||||||
Net interest income (3)
|
$
|
756,581
|
|
|
$
|
742,033
|
|
|
$
|
515,972
|
|
|
|
2
|
%
|
|
47
|
%
|
FTE adjustment
|
(12,069
|
)
|
|
(12,058
|
)
|
|
(10,091
|
)
|
|
|
—
|
|
|
20
|
|
|||
Net interest income
|
744,512
|
|
|
729,975
|
|
|
505,881
|
|
|
|
2
|
|
|
47
|
|
|||
Provision for credit losses
|
24,978
|
|
|
67,638
|
|
|
24,509
|
|
|
|
(63
|
)
|
|
2
|
|
|||
Noninterest income
|
325,218
|
|
|
312,463
|
|
|
271,112
|
|
|
|
4
|
|
|
20
|
|
|||
Noninterest expense
|
694,364
|
|
|
707,422
|
|
|
523,661
|
|
|
|
(2
|
)
|
|
33
|
|
|||
Income before income taxes
|
350,388
|
|
|
267,378
|
|
|
228,823
|
|
|
|
31
|
|
|
53
|
|
|||
Provision for income taxes
|
78,647
|
|
|
59,284
|
|
|
54,283
|
|
|
|
33
|
|
|
45
|
|
|||
Net income
|
271,741
|
|
|
208,094
|
|
|
174,540
|
|
|
|
31
|
|
|
56
|
|
|||
Dividends on preferred shares
|
18,889
|
|
|
18,878
|
|
|
19,874
|
|
|
|
—
|
|
|
—
|
|
|||
Net income applicable to common shares
|
$
|
252,852
|
|
|
$
|
189,216
|
|
|
$
|
154,666
|
|
|
|
34
|
%
|
|
63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share - diluted
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
|
35
|
%
|
|
21
|
%
|
Cash dividends declared per common share
|
0.08
|
|
|
0.08
|
|
|
0.07
|
|
|
|
—
|
|
|
14
|
|
|||
Tangible book value per common share at end of period
|
6.74
|
|
|
6.55
|
|
|
|