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)
|
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
|
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.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits.
|
|
|
|
HUNTINGTON BANCSHARES INCORPORATED
|
||
|
|
|
|
|
|
Date:
|
July 25, 2019
|
|
By:
|
|
/s/ Howell D. McCullough III
|
|
|
|
|
|
Howell D. McCullough III
|
|
|
|
|
|
Chief Financial Officer
|
|
|
•
|
Fully-taxable equivalent total revenue
increased
$66 million
, or
6%
.
|
•
|
Fully-taxable equivalent net interest income
increased
$28 million
, or
4%
.
|
•
|
Net interest margin
increased
2
basis points to
3.31%
.
|
•
|
Noninterest income
increased
$38 million
, or
11%
, including a $15 million gain on the sale of the Wisconsin retail branches.
|
•
|
Noninterest expense
increased
$48 million
, or
7%
.
|
•
|
Efficiency ratio of
57.6%
,
up
from
56.6%
.
|
•
|
Average loans and leases
increased
$3.0 billion
, or
4%
, year-over-year, including a
$1.7 billion
, or
5%
,
increase
in consumer loans and a
$1.3 billion
, or
4%
,
increase
in commercial loans.
|
•
|
Average core deposits
increased
$3.3 billion
, or
4%
, year-over-year, driven by a
$2.4 billion
, or
11%
,
increase
in money market deposits and a
$2.1 billion
, or
54%
,
increase
in core certificates of deposit.
|
•
|
Net charge-offs equated to
0.25%
of average loans and leases,
up
from
0.16%
.
|
•
|
Nonperforming asset ratio of
0.61%
,
up
from
0.57%
.
|
•
|
Common Equity Tier 1 (CET1) risk-based capital ratio of
9.88%
,
down
from
10.53%
and within our 9% to 10% operating guideline.
|
•
|
Tangible common equity (TCE) ratio of
7.80%
,
up
from
7.78%
.
|
•
|
Tangible book value per common share
increased
$0.70
, or
10%
, to
$7.97
.
|
•
|
Repurchased $152 million of common stock (11.3 million shares at an average price of $13.40 per share).
|
|
2019
|
|
2018
|
||||||||||||||||
(in millions, except per share data)
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|||||||||||
Net Income
|
$
|
364
|
|
|
$
|
358
|
|
|
$
|
334
|
|
|
$
|
378
|
|
|
$
|
355
|
|
Diluted earnings per common share
|
0.33
|
|
|
0.32
|
|
|
0.29
|
|
|
0.33
|
|
|
0.30
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.36
|
%
|
|
1.35
|
%
|
|
1.25
|
%
|
|
1.42
|
%
|
|
1.36
|
%
|
|||||
Return on average common equity
|
13.5
|
|
|
13.8
|
|
|
12.9
|
|
|
14.3
|
|
|
13.2
|
|
|||||
Return on average tangible common equity
|
17.7
|
|
|
18.3
|
|
|
17.3
|
|
|
19.0
|
|
|
17.6
|
|
|||||
Net interest margin
|
3.31
|
|
|
3.39
|
|
|
3.41
|
|
|
3.32
|
|
|
3.29
|
|
|||||
Efficiency ratio
|
57.6
|
|
|
55.8
|
|
|
58.7
|
|
|
55.3
|
|
|
56.6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share
|
$
|
7.97
|
|
|
$
|
7.67
|
|
|
$
|
7.34
|
|
|
$
|
7.06
|
|
|
$
|
7.27
|
|
Cash dividends declared per common share
|
0.14
|
|
|
0.14
|
|
|
0.14
|
|
|
0.14
|
|
|
0.11
|
|
|||||
Average diluted shares outstanding
|
1,060
|
|
|
1,066
|
|
|
1,073
|
|
|
1,104
|
|
|
1,123
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average earning assets
|
$
|
99,188
|
|
|
$
|
99,212
|
|
|
$
|
97,752
|
|
|
$
|
96,753
|
|
|
$
|
96,363
|
|
Average loans and leases
|
74,932
|
|
|
74,775
|
|
|
73,822
|
|
|
72,751
|
|
|
71,887
|
|
|||||
Average core deposits
|
78,723
|
|
|
79,033
|
|
|
79,078
|
|
|
77,680
|
|
|
75,386
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity / tangible assets ratio
|
7.80
|
%
|
|
7.57
|
%
|
|
7.21
|
%
|
|
7.25
|
%
|
|
7.78
|
%
|
|||||
Common equity Tier 1 risk-based capital ratio
|
9.88
|
|
|
9.84
|
|
|
9.65
|
|
|
9.89
|
|
|
10.53
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NCOs as a % of average loans and leases
|
0.25
|
%
|
|
0.38
|
%
|
|
0.27
|
%
|
|
0.16
|
%
|
|
0.16
|
%
|
|||||
NAL ratio
|
0.57
|
|
|
0.56
|
|
|
0.45
|
|
|
0.50
|
|
|
0.52
|
|
|||||
ALLL as a % of total loans and leases
|
1.03
|
|
|
1.02
|
|
|
1.03
|
|
|
1.04
|
|
|
1.02
|
|
|
2019
|
|
2018
|
|
|
|
|
||||||||||||||||||
($ in millions)
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
LQ
|
|
YOY
|
||||||||||||||
Net interest income
|
$
|
812
|
|
|
$
|
822
|
|
|
$
|
833
|
|
|
$
|
802
|
|
|
$
|
784
|
|
|
(1
|
)%
|
|
4
|
%
|
FTE adjustment
|
7
|
|
|
7
|
|
|
8
|
|
|
8
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|||||
Net interest income - FTE
|
819
|
|
|
829
|
|
|
841
|
|
|
810
|
|
|
791
|
|
|
(1
|
)
|
|
4
|
|
|||||
Noninterest income
|
374
|
|
|
319
|
|
|
329
|
|
|
342
|
|
|
336
|
|
|
17
|
|
|
11
|
|
|||||
Total revenue - FTE
|
$
|
1,193
|
|
|
$
|
1,148
|
|
|
$
|
1,170
|
|
|
$
|
1,152
|
|
|
$
|
1,127
|
|
|
4
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Change (bp)
|
|||||||||
Yield / Cost
|
|
|
|
|
|
|
|
|
|
|
LQ
|
|
YOY
|
|||||||
Total earning assets
|
4.35
|
%
|
|
4.40
|
%
|
|
4.32
|
%
|
|
4.16
|
%
|
|
4.07
|
%
|
|
(5
|
)
|
|
28
|
|
Total loans and leases
|
4.80
|
|
|
4.85
|
|
|
4.76
|
|
|
4.60
|
|
|
4.49
|
|
|
(5
|
)
|
|
31
|
|
Total securities
|
2.79
|
|
|
2.86
|
|
|
2.84
|
|
|
2.73
|
|
|
2.71
|
|
|
(7
|
)
|
|
8
|
|
Total interest-bearing liabilities
|
1.39
|
|
|
1.35
|
|
|
1.23
|
|
|
1.13
|
|
|
1.05
|
|
|
4
|
|
|
34
|
|
Total interest-bearing deposits
|
0.97
|
|
|
0.94
|
|
|
0.84
|
|
|
0.73
|
|
|
0.59
|
|
|
3
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest rate spread
|
2.96
|
|
|
3.05
|
|
|
3.09
|
|
|
3.03
|
|
|
3.02
|
|
|
(9
|
)
|
|
(6
|
)
|
Impact of noninterest-bearing funds on margin
|
0.35
|
|
|
0.34
|
|
|
0.32
|
|
|
0.29
|
|
|
0.27
|
|
|
1
|
|
|
8
|
|
Net interest margin
|
3.31
|
%
|
|
3.39
|
%
|
|
3.41
|
%
|
|
3.32
|
%
|
|
3.29
|
%
|
|
(8
|
)
|
|
2
|
|
|
2019
|
|
2018
|
|
|
|
|
||||||||||||||||||
($ in billions)
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
LQ
|
|
YOY
|
||||||||||||||
Commercial and industrial
|
$
|
30.6
|
|
|
$
|
30.5
|
|
|
$
|
29.6
|
|
|
$
|
28.9
|
|
|
$
|
28.9
|
|
|
0
|
%
|
|
6
|
%
|
Commercial real estate
|
6.9
|
|
|
6.9
|
|
|
6.9
|
|
|
7.2
|
|
|
7.4
|
|
|
1
|
|
|
(6
|
)
|
|||||
Total commercial
|
37.5
|
|
|
37.4
|
|
|
36.5
|
|
|
36.0
|
|
|
36.2
|
|
|
0
|
|
|
4
|
|
|||||
Automobile
|
12.2
|
|
|
12.4
|
|
|
12.4
|
|
|
12.4
|
|
|
12.3
|
|
|
(1
|
)
|
|
0
|
|
|||||
Home equity
|
9.5
|
|
|
9.6
|
|
|
9.8
|
|
|
9.9
|
|
|
9.9
|
|
|
(2
|
)
|
|
(5
|
)
|
|||||
Residential mortgage
|
11.0
|
|
|
10.8
|
|
|
10.6
|
|
|
10.2
|
|
|
9.6
|
|
|
2
|
|
|
14
|
|
|||||
RV and marine
|
3.4
|
|
|
3.3
|
|
|
3.2
|
|
|
3.0
|
|
|
2.7
|
|
|
4
|
|
|
28
|
|
|||||
Other consumer
|
1.3
|
|
|
1.3
|
|
|
1.3
|
|
|
1.2
|
|
|
1.2
|
|
|
(2
|
)
|
|
9
|
|
|||||
Total consumer
|
37.4
|
|
|
37.4
|
|
|
37.3
|
|
|
36.7
|
|
|
35.7
|
|
|
0
|
|
|
5
|
|
|||||
Total loans and leases
|
74.9
|
|
|
74.8
|
|
|
73.8
|
|
|
72.8
|
|
|
71.9
|
|
|
0
|
|
|
4
|
|
|||||
Total securities
|
22.9
|
|
|
23.1
|
|
|
22.7
|
|
|
23.2
|
|
|
23.8
|
|
|
(1
|
)
|
|
(4
|
)
|
|||||
Held-for-sale and other earning assets
|
1.4
|
|
|
1.3
|
|
|
1.3
|
|
|
0.8
|
|
|
0.7
|
|
|
6
|
|
|
97
|
|
|||||
Total earning assets
|
$
|
99.2
|
|
|
$
|
99.2
|
|
|
$
|
97.8
|
|
|
$
|
96.8
|
|
|
$
|
96.4
|
|
|
0
|
%
|
|
3
|
%
|
|
2019
|
|
2018
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in billions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Demand deposits - noninterest-bearing
|
$
|
19.8
|
|
|
$
|
19.9
|
|
|
$
|
20.4
|
|
|
$
|
20.2
|
|
|
$
|
20.4
|
|
|
(1
|
)%
|
|
(3
|
)%
|
Demand deposits - interest-bearing
|
19.7
|
|
|
19.8
|
|
|
19.9
|
|
|
19.6
|
|
|
19.1
|
|
|
0
|
|
|
3
|
|
|||||
Total demand deposits
|
39.5
|
|
|
39.7
|
|
|
40.3
|
|
|
39.8
|
|
|
39.5
|
|
|
(1
|
)
|
|
0
|
|
|||||
Money market deposits
|
23.3
|
|
|
22.9
|
|
|
22.6
|
|
|
21.5
|
|
|
20.9
|
|
|
2
|
|
|
11
|
|
|||||
Savings and other domestic deposits
|
10.1
|
|
|
10.3
|
|
|
10.5
|
|
|
11.4
|
|
|
11.1
|
|
|
(2
|
)
|
|
(9
|
)
|
|||||
Core certificates of deposit
|
5.9
|
|
|
6.1
|
|
|
5.7
|
|
|
4.9
|
|
|
3.8
|
|
|
(3
|
)
|
|
54
|
|
|||||
Total core deposits
|
78.7
|
|
|
79.0
|
|
|
79.1
|
|
|
77.7
|
|
|
75.4
|
|
|
0
|
|
|
4
|
|
|||||
Other domestic deposits of $250,000 or more
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
0.2
|
|
|
(7
|
)
|
|
28
|
|
|||||
Brokered deposits and negotiable CDs
|
2.7
|
|
|
3.4
|
|
|
3.5
|
|
|
3.5
|
|
|
3.7
|
|
|
(21
|
)
|
|
(27
|
)
|
|||||
Total deposits
|
$
|
81.7
|
|
|
$
|
82.7
|
|
|
$
|
82.9
|
|
|
$
|
81.5
|
|
|
$
|
79.3
|
|
|
(1
|
)%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
3.2
|
|
|
$
|
2.3
|
|
|
$
|
1.0
|
|
|
$
|
1.7
|
|
|
$
|
3.1
|
|
|
36
|
%
|
|
3
|
%
|
Long-term debt
|
8.9
|
|
|
9.0
|
|
|
8.9
|
|
|
8.9
|
|
|
9.2
|
|
|
(1
|
)
|
|
(3
|
)
|
|||||
Total debt
|
$
|
12.1
|
|
|
$
|
11.3
|
|
|
$
|
9.9
|
|
|
$
|
10.6
|
|
|
$
|
12.3
|
|
|
7
|
%
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total interest-bearing liabilities
|
$
|
74.0
|
|
|
$
|
74.1
|
|
|
$
|
72.4
|
|
|
$
|
71.9
|
|
|
$
|
71.2
|
|
|
0
|
%
|
|
4
|
%
|
|
2019
|
|
2018
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Service charges on deposit accounts
|
$
|
92
|
|
|
$
|
87
|
|
|
$
|
94
|
|
|
$
|
93
|
|
|
$
|
91
|
|
|
6
|
%
|
|
1
|
%
|
Card and payment processing income
|
63
|
|
|
56
|
|
|
58
|
|
|
57
|
|
|
56
|
|
|
13
|
|
|
13
|
|
|||||
Trust and investment management services
|
43
|
|
|
44
|
|
|
42
|
|
|
43
|
|
|
42
|
|
|
(2
|
)
|
|
2
|
|
|||||
Mortgage banking income
|
34
|
|
|
21
|
|
|
23
|
|
|
31
|
|
|
28
|
|
|
62
|
|
|
21
|
|
|||||
Capital markets fees
|
34
|
|
|
22
|
|
|
34
|
|
|
26
|
|
|
26
|
|
|
55
|
|
|
31
|
|
|||||
Insurance income
|
23
|
|
|
21
|
|
|
21
|
|
|
19
|
|
|
21
|
|
|
10
|
|
|
10
|
|
|||||
Bank owned life insurance income
|
15
|
|
|
16
|
|
|
16
|
|
|
19
|
|
|
17
|
|
|
(6
|
)
|
|
(12
|
)
|
|||||
Gain on sale of loans and leases
|
13
|
|
|
13
|
|
|
16
|
|
|
16
|
|
|
15
|
|
|
0
|
|
|
(13
|
)
|
|||||
Securities gains (losses)
|
(2
|
)
|
|
0
|
|
|
(19
|
)
|
|
(2
|
)
|
|
0
|
|
|
NM
|
|
|
NM
|
|
|||||
Other income
|
59
|
|
|
39
|
|
|
44
|
|
|
40
|
|
|
40
|
|
|
51
|
|
|
48
|
|
|||||
Total noninterest income
|
$
|
374
|
|
|
$
|
319
|
|
|
$
|
329
|
|
|
$
|
342
|
|
|
$
|
336
|
|
|
17
|
%
|
|
11
|
%
|
|
2019
|
|
2018
|
|
|
||||||||||||||||||||
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
Change (%)
|
||||||||||||||
($ in millions)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
LQ
|
|
YOY
|
||||||||||||
Personnel costs
|
$
|
428
|
|
|
$
|
394
|
|
|
$
|
399
|
|
|
$
|
388
|
|
|
$
|
396
|
|
|
9
|
%
|
|
8
|
%
|
Outside data processing and other services
|
89
|
|
|
81
|
|
|
83
|
|
|
69
|
|
|
69
|
|
|
10
|
|
|
29
|
|
|||||
Net occupancy
|
38
|
|
|
42
|
|
|
70
|
|
|
38
|
|
|
35
|
|
|
(10
|
)
|
|
9
|
|
|||||
Equipment
|
40
|
|
|
40
|
|
|
48
|
|
|
38
|
|
|
38
|
|
|
0
|
|
|
5
|
|
|||||
Deposit and other insurance expense
|
8
|
|
|
8
|
|
|
9
|
|
|
18
|
|
|
18
|
|
|
0
|
|
|
(56
|
)
|
|||||
Professional services
|
12
|
|
|
12
|
|
|
17
|
|
|
17
|
|
|
15
|
|
|
0
|
|
|
(20
|
)
|
|||||
Marketing
|
11
|
|
|
7
|
|
|
15
|
|
|
12
|
|
|
18
|
|
|
57
|
|
|
(39
|
)
|
|||||
Amortization of intangibles
|
12
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
(8
|
)
|
|
(8
|
)
|
|||||
Other expense
|
62
|
|
|
56
|
|
|
57
|
|
|
58
|
|
|
50
|
|
|
11
|
|
|
24
|
|
|||||
Total noninterest expense
|
$
|
700
|
|
|
$
|
653
|
|
|
$
|
711
|
|
|
$
|
651
|
|
|
$
|
652
|
|
|
7
|
%
|
|
7
|
%
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average full-time equivalent employees
|
15.8
|
|
|
15.7
|
|
|
15.7
|
|
|
15.8
|
|
|
15.7
|
|
|
1
|
%
|
|
1
|
%
|
|
2019
|
|
2018
|
||||||||||||||||
($ in millions)
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
Total nonaccrual loans and leases
|
$
|
425
|
|
|
$
|
417
|
|
|
$
|
340
|
|
|
$
|
370
|
|
|
$
|
378
|
|
Total other real estate
|
14
|
|
|
18
|
|
|
23
|
|
|
27
|
|
|
28
|
|
|||||
Other NPAs (1)
|
21
|
|
|
26
|
|
|
24
|
|
|
6
|
|
|
6
|
|
|||||
Total nonperforming assets
|
460
|
|
|
461
|
|
|
387
|
|
|
403
|
|
|
412
|
|
|||||
Accruing loans and leases past due 90 days or more
|
152
|
|
|
147
|
|
|
170
|
|
|
154
|
|
|
132
|
|
|||||
NPAs + accruing loans and lease past due 90 days or more
|
$
|
612
|
|
|
$
|
608
|
|
|
$
|
557
|
|
|
$
|
557
|
|
|
$
|
544
|
|
NAL ratio (2)
|
0.57
|
%
|
|
0.56
|
%
|
|
0.45
|
%
|
|
0.50
|
%
|
|
0.52
|
%
|
|||||
NPA ratio (3)
|
0.61
|
|
|
0.61
|
|
|
0.52
|
|
|
0.55
|
|
|
0.57
|
|
|||||
(NPAs+90 days)/(Loans+OREO)
|
0.82
|
|
|
0.81
|
|
|
0.74
|
|
|
0.76
|
|
|
0.75
|
|
|||||
Provision for credit losses
|
$
|
59
|
|
|
$
|
67
|
|
|
$
|
60
|
|
|
$
|
53
|
|
|
$
|
56
|
|
Net charge-offs
|
48
|
|
|
71
|
|
|
50
|
|
|
29
|
|
|
28
|
|
|||||
Net charge-offs / Average total loans
|
0.25
|
%
|
|
0.38
|
%
|
|
0.27
|
%
|
|
0.16
|
%
|
|
0.16
|
%
|
|||||
Allowance for loans and lease losses (ALLL)
|
$
|
774
|
|
|
$
|
764
|
|
|
$
|
772
|
|
|
$
|
761
|
|
|
$
|
741
|
|
Allowance for unfunded loan commitments and letters of credit
|
101
|
|
|
100
|
|
|
96
|
|
|
97
|
|
|
93
|
|
|||||
Allowance for credit losses (ACL)
|
$
|
875
|
|
|
$
|
864
|
|
|
$
|
868
|
|
|
$
|
858
|
|
|
$
|
834
|
|
ALLL as a % of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
1.03
|
%
|
|
1.02
|
%
|
|
1.03
|
%
|
|
1.04
|
%
|
|
1.02
|
%
|
|||||
NALs
|
182
|
|
|
183
|
|
|
228
|
|
|
206
|
|
|
197
|
|
|||||
NPAs
|
168
|
|
|
166
|
|
|
200
|
|
|
189
|
|
|
180
|
|
(1)
|
Other nonperforming assets include certain impaired 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.
|
|
|
2019
|
|
2018
|
||||||||||||||||
($ in billions)
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
Tangible common equity / tangible assets ratio
|
|
7.80
|
%
|
|
7.57
|
%
|
|
7.21
|
%
|
|
7.25
|
%
|
|
7.78
|
%
|
|||||
Common equity tier 1 risk-based capital ratio
(1)
|
|
9.88
|
%
|
|
9.84
|
%
|
|
9.65
|
%
|
|
9.89
|
%
|
|
10.53
|
%
|
|||||
Regulatory Tier 1 risk-based capital ratio
(1)
|
|
11.28
|
%
|
|
11.25
|
%
|
|
11.06
|
%
|
|
11.33
|
%
|
|
11.99
|
%
|
|||||
Regulatory Total risk-based capital ratio
(1)
|
|
13.13
|
%
|
|
13.11
|
%
|
|
12.98
|
%
|
|
13.36
|
%
|
|
13.97
|
%
|
|||||
Total risk-weighted assets
(1)
|
|
$
|
86.3
|
|
|
$
|
86.0
|
|
|
$
|
85.7
|
|
|
$
|
83.6
|
|
|
$
|
83.0
|
|
(1)
|
June 30, 2019
figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Tangible common equity to tangible assets, and
|
•
|
Tangible common equity to risk-weighted assets using Basel III definition.
|
|
Three Months Ended
|
|
|
|
|
|
||||||||||||
(dollar amounts in millions, except per data, share count in thousands)
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
Percent Changes vs.
|
||||||||||
2019
|
|
2019
|
|
2018
|
|
|
1Q19
|
|
2Q18
|
|||||||||
Net interest income (2)
|
$
|
819
|
|
|
$
|
829
|
|
|
$
|
791
|
|
|
|
(1
|
)%
|
|
4
|
%
|
FTE adjustment
|
(7
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
|
—
|
|
|
—
|
|
|||
Net interest income
|
812
|
|
|
822
|
|
|
784
|
|
|
|
(1
|
)
|
|
4
|
|
|||
Provision for credit losses
|
59
|
|
|
67
|
|
|
56
|
|
|
|
(12
|
)
|
|
5
|
|
|||
Noninterest income
|
374
|
|
|
319
|
|
|
336
|
|
|
|
17
|
|
|
11
|
|
|||
Noninterest expense
|
700
|
|
|
653
|
|
|
652
|
|
|
|
7
|
|
|
7
|
|
|||
Income before income taxes
|
427
|
|
|
421
|
|
|
412
|
|
|
|
1
|
|
|
4
|
|
|||
Provision for income taxes
|
63
|
|
|
63
|
|
|
57
|
|
|
|
—
|
|
|
11
|
|
|||
Net income
|
364
|
|
|
358
|
|
|
355
|
|
|
|
2
|
|
|
3
|
|
|||
Dividends on preferred shares
|
18
|
|
|
19
|
|
|
21
|
|
|
|
(5
|
)
|
|
(14
|
)
|
|||
Net income applicable to common shares
|
$
|
346
|
|
|
$
|
339
|
|
|
$
|
334
|
|
|
|
2
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income per common share - diluted
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
|
3
|
%
|
|
10
|
%
|
Cash dividends declared per common share
|
0.14
|
|
|
0.14
|
|
|
0.11
|
|
|
|
—
|
|
|
27
|
|
|||
Tangible book value per common share at end of period
|
7.97
|
|
|
7.67
|
|
|
7.27
|
|
|
|
4
|
|
|
10
|
|
|||
Number of common shares repurchased
|
11,344
|
|
|
1,833
|
|
|
—
|
|
|
|
519
|
|
|
100
|
|
|||
Average common shares - basic
|
1,044,802
|
|
|
1,046,995
|
|
|
1,103,337
|
|
|
|
—
|
|
|
(5
|
)
|
|||
Average common shares - diluted
|
1,060,280
|
|
|
1,065,638
|
|
|
1,122,612
|
|
|
|
(1
|
)
|
|
(6
|
)
|
|||
Ending common shares outstanding
|
1,037,841
|
|
|
1,046,440
|
|
|
1,104,227
|
|
|
|
(1
|
)
|
|
(6
|
)
|
|||
Return on average assets
|
1.36
|
%
|
|
1.35
|
%
|
|
1.36
|
%
|
|
|
|
|
|
|
|
|||
Return on average common shareholders’ equity
|
13.5
|
|
|
13.8
|
|
|
13.2
|
|
|
|
|
|
|
|
|
|||
Return on average tangible common shareholders’ equity (1)
|
17.7
|
|
|
18.3
|
|
|
17.6
|
|
|
|
|
|
|
|
|
|||
Net interest margin (2)
|
3.31
|
|
|
3.39
|
|
|
3.29
|
|
|
|
|
|
|
|
|
|||
Efficiency ratio (3)
|
57.6
|
|
|
55.8
|
|
|
56.6
|
|
|
|
|
|
|
|
|
|||
Effective tax rate
|
14.6
|
|
|
15.0
|
|
|
13.8
|
|
|
|
|
|
|
|
|
|||
Average total assets
|
$
|
107,479
|
|
|
$
|
107,511
|
|
|
$
|
104,821
|
|
|
|
—
|
|
|
3
|
|
Average earning assets
|
99,188
|
|
|
99,212
|
|
|
96,363
|
|
|
|
—
|
|
|
3
|
|
|||
Average loans and leases
|
74,932
|
|
|
74,775
|
|
|
71,887
|
|
|
|
—
|
|
|
4
|
|
|||
Average loans and leases - linked quarter annualized growth rate
|
0.8
|
%
|
|
5.2
|
%
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|||
Average total deposits
|
$
|
81,718
|
|
|
$
|
82,772
|
|
|
$
|
79,290
|
|
|
|
(1
|
)
|
|
3
|
|
Average core deposits (4)
|
78,723
|
|
|
79,033
|
|
|
75,386
|
|
|
|
—
|
|
|
4
|
|
|||
Average core deposits - linked quarter annualized growth rate
|
(1.6
|
)%
|
|
(0.2
|
)%
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|||
Average shareholders’ equity
|
11,475
|
|
|
11,156
|
|
|
11,333
|
|
|
|
3
|
|
|
1
|
|
|||
Average common total shareholders' equity
|
10,272
|
|
|
9,953
|
|
|
10,130
|
|
|
|
3
|
|
|
1
|
|
|||
Average tangible common shareholders' equity
|
8,075
|
|
|
7,746
|
|
|
7,880
|
|
|
|
4
|
|
|
2
|
|
|||
Total assets at end of period
|
108,247
|
|
|
108,203
|
|
|
105,358
|
|
|
|
—
|
|
|
3
|
|
|||
Total shareholders’ equity at end of period
|
11,668
|
|
|
11,432
|
|
|
11,472
|
|
|
|
2
|
|
|
2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
NCOs as a % of average loans and leases
|
0.25
|
%
|
|
0.38
|
%
|
|
0.16
|
%
|
|
|
|
|
|
|||||
NAL ratio
|
0.57
|
|
|
0.56
|
|
|
0.52
|
|
|
|
|
|
|
|||||
NPA ratio (5)
|
0.61
|
|
|
0.61
|
|
|
0.57
|
|
|
|
|
|
|
|
|
|||
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
|
1.03
|
|
|
1.02
|
|
|
1.02
|
|
|
|
|
|
|
|||||
Common equity tier 1 risk-based capital ratio (6)
|
9.88
|
|
|
9.84
|
|
|
10.53
|
|
|
|
|
|
|
|||||
Tangible common equity / tangible asset ratio (7)
|
7.80
|
|
|
7.57
|
|
|
7.78
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
(dollar amounts in millions, except per data, share count in thousands)
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Net interest income (2)
|
$
|
1,648
|
|
|
$
|
1,568
|
|
|
$
|
80
|
|
|
5
|
%
|
FTE adjustment
|
(14
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|||
Net interest income
|
1,634
|
|
|
1,554
|
|
|
80
|
|
|
5
|
|
|||
Provision for credit losses
|
126
|
|
|
122
|
|
|
4
|
|
|
3
|
|
|||
Noninterest income
|
693
|
|
|
650
|
|
|
43
|
|
|
7
|
|
|||
Noninterest expense
|
1,353
|
|
|
1,285
|
|
|
68
|
|
|
5
|
|
|||
Income before income taxes
|
848
|
|
|
797
|
|
|
51
|
|
|
6
|
|
|||
Provision for income taxes
|
126
|
|
|
116
|
|
|
10
|
|
|
9
|
|
|||
Net Income
|
722
|
|
|
681
|
|
|
41
|
|
|
6
|
|
|||
Dividends on preferred shares
|
37
|
|
|
33
|
|
|
4
|
|
|
12
|
|
|||
Net income applicable to common shares
|
$
|
685
|
|
|
$
|
648
|
|
|
$
|
37
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Net income per common share - diluted
|
$
|
0.64
|
|
|
$
|
0.58
|
|
|
$
|
0.06
|
|
|
10
|
%
|
Cash dividends declared per common share
|
0.28
|
|
|
0.22
|
|
|
0.06
|
|
|
27
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Average common shares - basic
|
1,045,899
|
|
|
1,093,587
|
|
|
(47,688
|
)
|
|
(4
|
)
|
|||
Average common shares - diluted
|
1,062,959
|
|
|
1,123,646
|
|
|
(60,687
|
)
|
|
(5
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||||
Return on average assets
|
1.35
|
%
|
|
1.32
|
%
|
|
|
|
|
|
||||
Return on average common shareholders’ equity
|
13.7
|
|
|
13.1
|
|
|
|
|
|
|
||||
Return on average tangible common shareholders’ equity (1)
|
18.0
|
|
|
17.5
|
|
|
|
|
|
|
||||
Net interest margin (2)
|
3.35
|
|
|
3.30
|
|
|
|
|
|
|
||||
Efficiency ratio (3)
|
56.7
|
|
|
56.7
|
|
|
|
|
|
|
||||
Effective tax rate
|
14.8
|
|
|
14.6
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Average total assets
|
$
|
107,495
|
|
|
$
|
104,337
|
|
|
$
|
3,158
|
|
|
3
|
|
Average earning assets
|
99,200
|
|
|
95,890
|
|
|
3,310
|
|
|
3
|
|
|||
Average loans and leases
|
74,853
|
|
|
71,190
|
|
|
3,663
|
|
|
5
|
|
|||
Average total deposits
|
82,242
|
|
|
78,125
|
|
|
4,117
|
|
|
5
|
|
|||
Average core deposits (4)
|
78,877
|
|
|
74,395
|
|
|
4,482
|
|
|
6
|
|
|||
Average shareholders’ equity
|
11,317
|
|
|
11,095
|
|
|
222
|
|
|
2
|
|
|||
Average common total shareholders' equity
|
10,113
|
|
|
9,963
|
|
|
150
|
|
|
2
|
|
|||
Average tangible common shareholders' equity
|
7,912
|
|
|
7,708
|
|
|
204
|
|
|
3
|
|
|||
|
|
|
|
|
|
|
|
|||||||
NCOs as a % of average loans and leases
|
0.32
|
%
|
|
0.19
|
%
|
|
|
|
|
|
|
|||
NAL ratio
|
0.57
|
|
|
0.52
|
|
|
|
|
|
|
|
|||
NPA ratio (5)
|
0.61
|
|
|
0.57
|
|
|
|
|
|
|
|
(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)
|
June 30, 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.
|
|
June 30,
|
|
December 31,
|
|
|
|||||
(dollar amounts in millions)
|
2019
|
|
2018
|
|
Percent Changes
|
|||||
|
(Unaudited)
|
|
|
|
|
|||||
Assets
|
|
|
|
|
|
|||||
Cash and due from banks
|
$
|
870
|
|
|
$
|
1,108
|
|
|
(21
|
)%
|
Interest-bearing deposits in Federal Reserve Bank
|
728
|
|
|
1,564
|
|
|
(53
|
)
|
||
Interest-bearing deposits in banks
|
149
|
|
|
53
|
|
|
181
|
|
||
Trading account securities
|
176
|