HUNTINGTON BANCSHARES INC/MD0000049196false00000491962020-10-222020-10-220000049196us-gaap:CommonStockMember2020-10-222020-10-220000049196us-gaap:SeriesCPreferredStockMember2020-10-222020-10-220000049196us-gaap:SeriesDPreferredStockMember2020-10-222020-10-22

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) October 22, 2020
 ______________________________________________________________________________________________________________________________
HBAN-20201022_G1.JPG
Huntington Bancshares Incorporated
(Exact name of registrant as specified in its charter)
 _______________________________________________________________________________________________________________________________
Maryland 1-34073 31-0724920
(State or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
Registrant's address: 41 South High Street, Columbus, Ohio 43287
Registrant’s telephone number, including area code: (614) 480-2265
Not Applicable
(Former name or former address, if changed since last report.)

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):
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))
 _______________________________________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of class Trading
Symbol(s)
Name of exchange on which registered
Common Stock—Par Value $0.01 per Share HBAN NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 5.875% Series C Non-Cumulative, perpetual preferred stock) HBANN NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 6.250% Series D Non-Cumulative, perpetual preferred stock) HBANO NASDAQ
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
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 October 22, 2020, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended September 30, 2020. Also on October 22, 2020, 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 October 22, 2020, at 10:00 a.m. (Eastern 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 13709770. 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 October 30, 2020 at (877) 660-6853 or (201) 612-7415 conference ID 13709770.
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; the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition; 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; reform of LIBOR; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services including those 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 CFPB; 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 2019 Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q for the quarter ended March 31, 2020, and for the quarter ended June 30, 2020, 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 October 22, 2020.
Exhibit 99.2 – Quarterly Financial Supplement, September 30, 2020.



EXHIBIT INDEX
Exhibit No. Description
Exhibit 104
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
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: October 22, 2020 By:
/s/ Zachary Wasserman
Zachary Wasserman
Chief Financial Officer



Exhibit 99.1
HUNTINGTONLOGO1.JPG


October 22, 2020
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 2020 THIRD-QUARTER EARNINGS
Results Include 5% Revenue Growth, 7% Average Loan Growth, and 14% Average Core Deposit Growth
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN; www.huntington.com) reported net income for the 2020 third quarter of $303 million, a 19% decrease from the year-ago quarter. Earnings per common share for the 2020 third quarter were $0.27, down 21% from the year-ago quarter. Tangible book value per common share as of 2020 third quarter-end was $8.43, a 2% year-over-year increase. Return on average assets was 1.01%, return on average common equity was 10.2%, and return on average tangible common equity was 13.2%. Third-quarter results were impacted by elevated credit provisioning related to the ongoing uncertain economic outlook.

CEO Commentary:
“Our colleagues remain highly engaged and focused on our customers and, as a result, delivered solid third-quarter results in a challenging economic environment. Our underlying earnings power remains strong. We grew revenues 5% in the face of material headwinds and actively managed our expense base to fund investments across our businesses for future growth,” said Steve Steinour, chairman, president, and CEO. "I am particularly pleased with the 7% average loan growth and the robust 14% average core deposit growth as we continue to add and deepen customer relationships across the Bank."
"Our past experience of helping customers in difficult economic moments builds long-term relationships which fuel our growth. During the third quarter, we extended 24-hour Grace for consumers to our business customers. We also introduced our no-fee overdraft $50 Safety Zone for consumers and businesses. These innovative features, among others, help position Huntington as an industry leader in looking out for our customers and advance our vision to make peoples' lives better, help businesses thrive, and strengthen the communities we serve. This is consistent with Huntington's strategy to build the leading People-First, Digitally-Powered bank."
"As we look forward, we are optimistic that business activity and the economic recovery will continue to improve. Small businesses will be essential to the recovery, and we are pleased once again to be the largest SBA 7(a) lender in the nation in fiscal year 2020. During the third quarter, we originated a new record amount of residential mortgages, helping customers realize their dreams of home ownership or refinancing their existing mortgages to help solidify their financial well-being. We also continued to work with customers who have been challenged by the pandemic and are encouraged by the substantial number of customers exiting deferrals."



1


2020 Third-Quarter Highlights compared with 2019 Third Quarter:
Fully-taxable equivalent total revenue increased $58 million, or 5%.
Fully-taxable equivalent net interest income increased $17 million, or 2%.
Net interest margin decreased 24 basis points to 2.96%.
Noninterest income increased $41 million, or 11%, driven by a $68 million, or 126%, increase in mortgage banking income.
Noninterest expense increased $45 million, or 7%, including approximately $15 million of expense related to the implementation of position reductions and planned branch consolidations.
Efficiency ratio of 56.1%, up from 54.7%.
Average loans and leases increased $5.4 billion, or 7%, including a $4.3 billion, or 12%, increase in average commercial loans and a $1.1 billion, or 3%, increase in average consumer loans.
Average core deposits increased $11.4 billion, or 14%, including an $11.6 billion, or 29%, increase in average demand deposits.
Net charge-offs equated to 0.56% of average loans and leases, up from 0.39%.
Nonperforming asset ratio of 0.74%, up from 0.64%.
Provision for credit losses increased $95 million year-over-year to $177 million.
Allowance for loan and lease losses (ALLL) increased $1.0 billion to $1.8 billion, or 2.21% of total loans and leases; allowance for credit losses (ACL) increased to $1.9 billion, or 2.31% of total loans and leases.
Common Equity Tier 1 (CET1) risk-based capital ratio of 9.89%, down from 10.02% and consistent with our 9% to 10% operating guideline.
Tangible common equity (TCE) ratio of 7.27%, down from 8.00%.
Tangible book value per common share increased $0.18, or 2%, to $8.43.
In September, Huntington announced the planned consolidation of 27 branches, which are expected to be completed in the 2021 first quarter.


2


Table 1 – Earnings Performance Summary
2020 2019
(in millions, except per share data) Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
Net Income $ 303  $ 150  $ 48  $ 317  $ 372 
Diluted earnings per common share 0.27  0.13  0.03  0.28  0.34 
Return on average assets 1.01  % 0.51  % 0.17  % 1.15  % 1.37  %
Return on average common equity 10.2  5.0  1.1  11.1  13.4 
Return on average tangible common equity 13.2  6.7  1.8  14.3  17.3 
Net interest margin 2.96  2.94  3.14  3.12  3.20 
Efficiency ratio 56.1  55.9  55.4  58.4  54.7 
Tangible book value per common share $ 8.43  $ 8.32  $ 8.28  $ 8.25  $ 8.25 
Cash dividends declared per common share 0.15  0.15  0.15  0.15  0.15 
Average diluted shares outstanding 1,031  1,029  1,035  1,047  1,051 
Average earning assets $ 110,665  $ 109,038  $ 101,783  $ 100,062  $ 99,692 
Average loans and leases 80,542  80,199  75,696  75,103  75,096 
Average core deposits 90,692  88,878  79,528  79,690  79,335 
Tangible common equity / tangible assets ratio 7.27  % 7.28  % 7.52  % 7.88  % 8.00  %
Common equity Tier 1 risk-based capital ratio 9.89  9.84  9.47  9.88  10.02 
NCOs as a % of average loans and leases 0.56  % 0.54  % 0.62  % 0.39  % 0.39  %
NAL ratio 0.70  0.81  0.72  0.62  0.58 
ACL as a % of total loans and leases 2.31  2.27  2.05  1.18  1.18 




3


Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 2 – Net Interest Income and Net Interest Margin Performance Summary – Year-over-Year Increase in Average Earning Assets Outpaced Net Interest Margin Compression
2020 2019
($ in millions) Third Second First Fourth Third Change (%)
Quarter Quarter Quarter Quarter Quarter LQ YOY
Net interest income $ 817  $ 792  $ 790  $ 780  $ 799  % %
FTE adjustment (17)
Net interest income - FTE 822  797  796  786  805 
Noninterest income 430  391  361  372  389  10  11 
Total revenue - FTE $ 1,252  $ 1,188  $ 1,157  $ 1,158  $ 1,194  % %
Change (bp)
Yield / Cost LQ YOY
Total earning assets 3.22  % 3.35  % 3.88  % 4.03  % 4.21  % (13) (99)
Total loans and leases 3.75  3.75  4.29  4.47  4.67  —  (92)
Total securities 2.13  2.35  2.64  2.68  2.74  (22) (61)
Total interest-bearing liabilities 0.39  0.57  0.98  1.24  1.36  (18) (97)
Total interest-bearing deposits 0.18  0.28  0.68  0.87  0.98  (10) (80)
Net interest rate spread 2.83  2.78  2.90  2.79  2.85  (2)
Impact of noninterest-bearing funds on margin 0.13  0.16  0.24  0.33  0.35  (3) (22)
Net interest margin 2.96  % 2.94  % 3.14  % 3.12  % 3.20  % (24)
See Pages 7-9 of Quarterly Financial Supplement for additional detail.

Fully-taxable equivalent (FTE) net interest income for the 2020 third quarter increased $17 million, or 2%, from the 2019 third quarter. This increase reflected the benefit of an $11.0 billion, or 11%, increase in average earning assets, partially offset by a 24 basis point decrease in the FTE net interest margin (NIM) to 2.96%. The NIM compression reflected a 99 basis point year-over-year decrease in average earning asset yields and a 22 basis point decrease in the benefit from noninterest-bearing funds, partially offset by a 97 basis point decrease in average interest-bearing liability costs. The decrease in earning asset yields was primarily driven by the impact of lower interest rates on commercial loan, home equity loan, and security yields and elevated deposits at the Federal Reserve Bank. The decrease in average interest-bearing liability costs primarily reflected lower interest-bearing deposit costs (down 80 basis points) and lower long-term debt costs (down 172 basis points), both due to the impact of lower interest rates.
Compared to the 2020 second quarter, FTE net interest income increased $25 million, or 3%, reflecting a 1% increase in average earning assets and 2 basis points of NIM expansion. The NIM expansion reflected an 18 basis point decrease in average interest-bearing liability costs, partially offset by a 13 basis point decrease in average earning asset yields and a 3 basis point decrease in the benefit from noninterest-bearing funds. The decrease in average interest-bearing liability costs primarily reflects lower interest-bearing deposit costs (down 10 basis points) and lower long-term borrowings costs (down 71 basis points), both due to the impact of lower interest rates. The decrease in earning asset yields was primarily driven by the impact of lower interest rates on securities yields as well as elevated deposits at the Federal Reserve Bank.

4


Table 3 – Average Earning Assets – Commercial & Industrial Loans and Elevated Deposits at the Federal Reserve Bank Drive Year-Over-Year Earning Asset Growth
2020 2019
($ in billions) Third Second First Fourth Third Change (%)
Quarter Quarter Quarter Quarter Quarter LQ YOY
Commercial and industrial $ 34.7  $ 35.3  $ 30.8  $ 30.4  $ 30.6  (2) % 13  %
Commercial real estate 7.2  7.1  6.7  6.8  6.9 
Total commercial 41.9  42.4  37.6  37.2  37.6  (1) 12 
Automobile 12.9  12.7  12.9  12.6  12.2 
Home equity 8.9  8.9  9.0  9.2  9.4  (5)
Residential mortgage 11.8  11.5  11.4  11.3  11.2 
RV and marine 4.0  3.7  3.6  3.6  3.5  14 
Other consumer 1.0  1.1  1.2  1.2  1.3  (3) (17)
Total consumer 38.7  37.8  38.1  37.9  37.5 
Total loans and leases 80.5  80.2  75.7  75.1  75.1 
Total securities 22.8  24.2  24.4  23.2  23.1  (6) (1)
Held-for-sale and other earning assets 7.3  4.6  1.7  1.8  1.5  58  374 
Total earning assets $ 110.7  $ 109.0  $ 101.8  $ 100.1  $ 99.7  % 11  %
See Page 7 of Quarterly Financial Supplement for additional detail.

Average earning assets for the 2020 third quarter increased $11.0 billion, or 11%, from the year-ago quarter, primarily reflecting a $5.4 billion, or 7%, increase in average total loans and leases and a $5.3 billion, or 1039%, increase in interest-bearing deposits at the Federal Reserve Bank. Average commercial & industrial (C&I) loans increased $4.0 billion, or 13%, primarily reflecting the $6.1 billion of average Payroll Protection Program (PPP) loans. Average automobile loans increased $0.7 billion, or 6%, driven by strong production over the past year. Average residential mortgage loans increased $0.6 billion, or 5%, reflecting continued robust portfolio mortgage production. Average RV and marine loans increased $0.5 billion, or 14%, reflecting strong consumer demand and continued strong production levels. Partially offsetting these increases, average home equity loans and lines of credit decreased $0.5 billion, or 5%, reflecting a shift in consumer preferences.
Compared to the 2020 second quarter, average earning assets increased $1.6 billion, or 1%, primarily reflecting a $2.4 billion, or 72%, increase in interest-bearing deposits at the Federal Reserve Bank. Partially offsetting this increase, average securities decreased $1.4 billion, or 6%, reflecting accelerated cash flows within the existing portfolio. Average C&I loans decreased $0.6 billion, or 2%, primarily reflecting lower commercial utilization rates, mainly within dealer floorplan, partially offset by the full quarter impact of $6.1 billion of PPP loans.
While not affecting quarterly average balances, Huntington completed the acquisition of a $0.5 billion equipment finance loan portfolio on September 30, 2020.


5


Table 4 – Average Liabilities – Demand Deposits Drive Robust Year-over-Year Growth in Core Deposits
2020 2019
Third Second First Fourth Third Change (%)
($ in billions) Quarter Quarter Quarter Quarter Quarter LQ YOY
Demand deposits - noninterest-bearing $ 27.4  $ 25.7  $ 20.1  $ 20.6  $ 19.9  % 38  %
Demand deposits - interest-bearing 23.9  23.9  21.2  20.1  19.8  21 
Total demand deposits 51.3  49.6  41.3  40.7  39.7  29 
Money market deposits 26.2  25.7  24.7  24.6  24.3 
Savings and other domestic deposits 11.2  10.6  9.6  9.6  9.7  15 
Core certificates of deposit 2.0  3.0  3.9  4.8  5.7  (32) (64)
Total core deposits 90.7  88.9  79.5  79.7  79.3  14 
Other domestic deposits of $250,000 or more 0.2  0.2  0.3  0.3  0.3  (24) (44)
Brokered deposits and negotiable CDs 4.2  4.1  2.9  2.6  2.6  61 
Total deposits $ 95.1  $ 93.2  $ 82.7  $ 82.6  $ 82.2  % 16  %
Short-term borrowings $ 0.2  $ 0.8  $ 3.4  $ 2.0  $ 2.3  (80) % (93) %
Long-term debt 9.3  9.8  10.1  9.9  9.5  (5) (2)
Total debt $ 9.5  $ 10.6  $ 13.5  $ 11.9  $ 11.8  (11) % (20) %
Total interest-bearing liabilities $ 77.1  $ 78.2  $ 76.1  $ 73.8  $ 74.2  (1) % %
See Page 7 of Quarterly Financial Supplement for additional detail.

Average total interest-bearing liabilities for the 2020 third quarter increased $2.9 billion, or 4%, from the year-ago quarter. Average total deposits increased $12.8 billion, or 16%, while average total core deposits increased $11.4 billion, or 14%. The increase in average total core deposits was primarily driven by business and commercial growth related to the PPP loans and increased liquidity levels in reaction to the economic downturn, consumer growth largely related to government stimulus, increased consumer and business banking account production, and reduced attrition. Specifically within core deposits, average total demand deposits increased $11.6 billion, or 29%, average money market deposits increased $1.9 billion, or 8%, and average savings and other domestic deposits increased $1.5 billion, or 15%. Partially offsetting these increases, average core certificates of deposit (CDs) decreased $3.6 billion, or 64%, reflecting the maturity of balances related to the 2018 consumer deposit growth initiatives. Average brokered deposits and negotiable CDs increased $1.6 billion, or 61%, reflecting balance growth in new and existing brokered deposit accounts. Average total debt decreased $2.4 billion, or 20%, reflecting the repayment of short-term borrowings due to the strong core deposit growth.
Compared to the 2020 second quarter, average total interest-bearing liabilities decreased $1.1 billion, or 1%. Both average total deposits and average total core deposits increased $1.8 billion, or 2%. The increase in average total core deposits was primarily driven by increased consumer and business banking account production, low attrition, increased liquidity levels among our business banking customers, and the seasonal increase in public funds. Specifically within core deposits, average total demand deposits increased $1.8 billion, or 4%, average money market deposits increased $0.5 billion, or 2%, and average savings and other domestic deposits increased $0.5 billion, or 5%. Partially offsetting these increases, average core CDs decreased $1.0 billion, or 32%, reflecting the maturity of balances related to the 2018 consumer deposit growth initiatives. Average total debt decreased $1.1 billion, or 11%, due to the repayment of short-term borrowings as a result of the strong core deposit inflows and a $500 million long-term debt maturity in the 2020 third quarter.


6


Noninterest Income
Table 5 – Noninterest Income – Record Mortgage Banking Income Drives Growth in Noninterest Income
2020 2019
Third Second First Fourth Third Change (%)
($ in millions) Quarter Quarter Quarter Quarter Quarter LQ YOY
Service charges on deposit accounts $ 76  $ 60  $ 87  $ 95  $ 98  27  % (22) %
Card and payment processing income 66  59  58  64  64  12 
Mortgage banking income 122  96  58  58  54  27  126 
Trust and investment management services 48  45  47  47  44 
Insurance income 24  25  23  24  20  (4) 20 
Capital markets fees 27  31  33  31  36  (13) (25)
Bank owned life insurance income 17  17  16  17  18  (6)
Gain on sale of loans and leases 13  16  13  63 
Net (losses) gains on sales of securities (1) (22) NM NM
Other noninterest income 37  51  31  42  42  (27) (12)
Total noninterest income $ 430  $ 391  $ 361  $ 372  $ 389  10  % 11  %
See Pages 10-11 of Quarterly Financial Supplement for additional detail.

Total noninterest income for the 2020 third quarter increased $41 million, or 11%, from the year-ago quarter. Mortgage banking income increased $68 million, or 126%, primarily reflecting higher secondary marketing spreads and a 73% increase in salable mortgage originations. Partially offsetting this increase, service charges on deposit accounts decreased $22 million, or 22%, primarily reflecting reduced customer activity and elevated deposits. Capital markets fees decreased $9 million, or 25%, primarily reflecting reduced customer derivatives activity.
Compared to the 2020 second quarter, total noninterest income increased $39 million, or 10%. Mortgage banking income increased $26 million, or 27%, primarily reflecting higher secondary marketing spreads and a 6% increase in salable mortgage originations. Service charges on deposit accounts increased $16 million, or 27%, primarily reflecting a rebound in customer activity and pandemic-related fee waivers in the prior quarter. Card and payment processing income increased $7 million, or 12%, primarily reflecting increased debit card and ATM usage. Partially offsetting these increases, other noninterest income decreased $14 million, or 27%, primarily reflecting the $13 million gain on the annuitization of a retiree health plan and $5 million gain on the sale of the retirement plan services recordkeeping business, both in the prior quarter.


7


Noninterest Expense
Table 6 – Noninterest Expense – Continued Investment in Talent and Technology Drive Noninterest Expense
2020 2019
Third Second First Fourth Third Change (%)
($ in millions) Quarter Quarter Quarter Quarter Quarter LQ YOY
Personnel costs $ 453  $ 418  $ 395  $ 426  $ 406  % 12  %
Outside data processing and other services 98  90  85  89  87  13 
Equipment 44  46  41  42  41  (4)
Net occupancy 40  39  40  41  38 
Professional services 12  11  11  14  16  (25)
Amortization of intangibles 10  10  11  12  12  (17)
Marketing 10  80  (10)
Deposit and other insurance expense 10  (33) (25)
Other noninterest expense 40  47  51  58  49  (15) (18)
Total noninterest expense $ 712  $ 675  $ 652  $ 701  $ 667  % %
(in thousands)
Average full-time equivalent employees 15.7  15.7  15.4  15.5  15.7  % %
See Page 10 of Quarterly Financial Supplement for additional detail.

Total noninterest expense for the 2020 third quarter increased $45 million, or 7%, from the year-ago quarter. Personnel costs increased $47 million, or 12%, primarily reflecting increased incentives and commissions, contract help, overtime, and equity compensation expense as well as $11 million of expense related to position reductions. Outside data processing and other services increased $11 million, or 13%, primarily reflecting the impact of increased technology costs. Partially offsetting these increases, other noninterest expense decreased $9 million, or 18%, primarily as a result of lower travel and business development expense and a $7 million insurance recovery.
Total noninterest expense increased $37 million, or 5%, from the 2020 second quarter. Personnel costs increased $35 million, or 8%, primarily reflecting increased incentive compensation as well as $11 million of expense related to position reductions.


8


Table 7 – Credit Quality Metrics – Further Deterioration in Economic Outlook Drives Increase in Allowance
2020 2019
($ in millions) September 30, June 30, March 31, December 31, September 30,
Total nonaccrual loans and leases $ 569  $ 648  $ 558  $ 468  $ 438 
Total other real estate 10  11  12 
Other NPAs (1) 28  58  18  19  32 
Total nonperforming assets 602  713  586  498  482 
Accruing loans and leases past due 90+ days 175  194  167  171  163 
NPAs + accruing loans & leases past due 90+ days $ 777  $ 907  $ 753  $ 669  $ 645 
NAL ratio (2) 0.70  % 0.81  % 0.72  % 0.62  % 0.58  %
NPA ratio (3) 0.74  0.89  0.75  0.66  0.64 
(NPAs+90 days)/(Loans+OREO) 0.96  1.13  0.96  0.89  0.86 
Provision for credit losses $ 177  $ 327  $ 441  $ 79  $ 82 
Net charge-offs 113  107  117  73  73 
Net charge-offs / Average total loans 0.56  % 0.54  % 0.62  % 0.39  % 0.39  %
Allowance for loans and lease losses (ALLL) $ 1,796  $ 1,702  $ 1,504  $ 783  $ 783 
Allowance for unfunded loan commitments and letters of credit 82  119  99  104  101 
Allowance for credit losses (ACL) $ 1,878  $ 1,821  $ 1,603  $ 887  $ 884 
ALLL as a % of:
Total loans and leases 2.21  % 2.12  % 1.93  % 1.04  % 1.05  %
NALs 316  263  270  167  179 
NPAs 298  239  257  157  163 
ACL as a % of:
Total loans and leases 2.31  % 2.27  % 2.05  % 1.18  % 1.18  %
NALs 330  281  287  190  202 
NPAs 311  255  273  178  184 
(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.
See Pages 12-15 of Quarterly Financial Supplement for additional detail.

Asset quality performance continues to be impacted by our oil and gas portfolio, while the remainder of the commercial portfolio has performed in line with expectations. The favorable consumer portfolio metrics continue to reflect our focus on high quality borrowers, who have held up well over the past two quarters.
Nonperforming assets (NPAs) increased to $602 million, or 0.74% of total loans and leases and OREO, from $482 million, or 0.64%, a year ago. Nonaccrual loans and leases (NALs) increased $131 million, or 30%, to $569 million, or 0.70% of total loans and leases. The year-over-year increase was primarily in the commercial portfolio, particularly the oil and gas portfolio. OREO balances decreased $7 million, or 58%, from the year-ago quarter. On a linked quarter basis, NALs decreased $79 million, or 12%, while NPAs decreased $111 million, or 16%.
The provision for credit losses increased $95 million year-over-year to $177 million in the 2020 third quarter. Net charge-offs (NCOs) increased $40 million to $113 million. The oil and gas portfolio accounted for approximately 44% of the $89 million of commercial NCOs, nearly all of which resulted from charge-offs on loans sold in the quarter or under contract to be sold. Consumer NCOs of $24 million were down on both a year-over-year and linked quarter basis, consistent with our expectations. NCOs represented an annualized 0.56% of average loans and leases in the current quarter, up from 0.54% in the prior quarter and up from 0.39% in the year-ago quarter. We remain confident in the long-term credit performance of our loan portfolios.
The allowance for loan and lease losses (ALLL) increased $1.0 billion from the year-ago quarter to $1.8 billion, or 2.21% of total loans and leases. The ALLL as a percentage of period-end total NALs increased to 316% from 179% over the same period. The allowance for credit losses (ACL) increased by $994 million from the year-

9


ago quarter to $1.9 billion, or 2.31% of total loans and leases. On a linked quarter basis, the ACL increased $57 million. We believe the levels of the ALLL and ACL are appropriate given the current level of problem loans and the economic outlook.


Capital
Table 8 – Capital Ratios – Ratios Remain within Targeted Operating Ranges
2020 2019
($ in billions) September 30, June 30, March 31, December 31, September 30,
Tangible common equity / tangible assets ratio 7.27  % 7.28  % 7.52  % 7.88  % 8.00  %
Common equity tier 1 risk-based capital ratio (1)
9.89  % 9.84  % 9.47  % 9.88  % 10.02  %
Regulatory Tier 1 risk-based capital ratio (1)
12.37  % 11.79  % 10.81  % 11.26  % 11.41  %
Regulatory Total risk-based capital ratio (1)
14.39  % 13.84  % 12.74  % 13.04  % 13.29  %
Total risk-weighted assets (1)
$ 88.4  $ 87.3  $ 90.2  $ 87.5  $ 86.7 
(1)September 30, 2020 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. The 2020 capital ratios reflect Huntington’s election of a five-year transition to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. 
See Pages 16-17 of Quarterly Financial Supplement for additional detail.

The tangible common equity to tangible assets ratio was 7.27% at September 30, 2020, down 73 basis points from a year ago due to year-over-year balance sheet growth. Common Equity Tier 1 (CET1) risk-based capital ratio was 9.89%, down from 10.02% a year ago. The regulatory Tier 1 risk-based capital ratio was 12.37% compared to 11.41% at September 30, 2019. The balance sheet growth impact on regulatory capital ratios was largely offset by a change in asset mix during 2020 related to the PPP loans and elevated deposits at the Federal Reserve (both of which are 0% risk weighted). The capital impact of the repurchase of $284 million of common stock over the last four quarters (none in the 2020 second quarter or 2020 third quarter) and cash dividends effectively offset earnings, adjusted for the CECL transition, on a year-over-year basis.  The regulatory Tier 1 risk-based capital and total risk-based capital ratios also reflect the issuance of $500 million of Series F preferred stock in the 2020 second quarter and $500 million of Series G preferred stock in the 2020 third quarter.
The Board has authorized the repurchase of common shares during the 2020 fourth quarter to offset compensation plan-related share issuances as permitted by the Federal Reserve Board. We may, at our discretion, repurchase common shares as permitted by this Board authorization. Purchases of common shares under the authorization may include open market purchases, privately negotiated transactions, and accelerated share repurchase programs. We currently expect to repurchase approximately $5 million of common shares during the 2020 fourth quarter to offset compensation plan-related share issuances.

Income Taxes
The provision for income taxes was $55 million in the 2020 third quarter and $67 million in the 2019 third quarter. The effective tax rates for the 2020 third quarter and 2019 third quarter were 15.2% and 15.4%, respectively. The variance between the 2020 third quarter and the 2019 third quarter provision for income taxes and effective tax rates relates primarily to lower pre-tax income and the impact of stock-based compensation.
At September 30, 2020, we had a net federal deferred tax liability of $155 million and a net state deferred tax asset of $32 million.




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Expectations - 2020
Full year 2020 revenue is expected to increase approximately 3.0% to 3.5% from the prior year. Full year 2020 noninterest expense is expected to increase approximately 2.0% to 2.5% year-over-year.
Average loans and leases are expected to increase approximately 6% year-over-year. Average total deposits are expected to increase approximately 10% compared to full year 2019.
Asset quality metrics are expected to continue to be impacted by COVID-19 and other broader economic conditions. Full year results have been impacted by the oil & gas portfolio. Net charge-offs are expected to be approximately 50 to 55 basis points for the full year 2020.

Conference Call / Webcast Information
Huntington’s senior management will host an earnings conference call on October 22, 2020, at 10:00 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 #13709770. 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 October 30, 2020 at (877) 660-6853 or (201) 612-7415; conference ID #13709770.
Please see the 2020 Third 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 $120 billion of assets and a network of 839 full-service branches, including 11 Private Client Group offices, and 1,330 ATMs across seven 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; the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition; 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

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credit markets; movements in interest rates; reform of LIBOR; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services including those 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 CFPB; 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 2019 Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q for the quarter ended March 31, 2020, and for the quarter ended June 30, 2020, 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
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.
Rounding
Please note that columns of data in this document may not add due to rounding.

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Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
September 30, 2020
Table of Contents
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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 share data) September 30, June 30, September 30,
Percent Changes vs.
2020 2020 2019 2Q20 3Q19
Net interest income (2)
$ 822  $ 797  $ 805  % %
FTE adjustment
(5) (5) (6) —  17 
Net interest income
817  792  799 
Provision for credit losses
177  327  82  (46) 116 
Noninterest income
430  391  389  10  11 
Noninterest expense
712  675  667 
Income before income taxes
358  181  439  98  (18)
Provision for income taxes
55  31  67  77  (18)
Net income
303  150  372  102  (19)
Dividends on preferred shares
28  19  18  47  56 
Net income applicable to common shares
$ 275  $ 131  $ 354  110  % (22) %
Net income per common share - diluted
$ 0.27  $ 0.13  $ 0.34  108  % (21) %
Cash dividends declared per common share
0.15  0.15  0.15  —  — 
Tangible book value per common share at end of period
8.43  8.32  8.25 
Number of common shares repurchased
—  —  5,213  —  (100)
Average common shares - basic
1,017  1,016  1,035  —  (2)
Average common shares - diluted
1,031  1,029  1,051  —  (2)
Ending common shares outstanding
1,017  1,017  1,033  —  (2)
Return on average assets
1.01  % 0.51  % 1.37  %
Return on average common shareholders’ equity
10.2  5.0  13.4 
Return on average tangible common shareholders’ equity (1)
13.2  6.7  17.3 
Net interest margin (2)
2.96  2.94  3.20 
Efficiency ratio (3)
56.1  55.9  54.7 
Effective tax rate
15.2  17.2  15.4 
Average total assets
$ 119,529  $ 118,191  $ 108,166  11 
Average earning assets
110,665  109,038  99,692  11 
Average loans and leases
80,542  80,199  75,096  — 
Average loans and leases - linked quarter annualized growth rate
1.7  % 23.8  % 0.9  %
Average total deposits
$ 95,049  $ 93,222  $ 82,249  16 
Average core deposits (4)
90,692  88,878  79,335  14 
Average core deposits - linked quarter annualized growth rate
8.2  % 47.0  % 3.1  %
Average shareholders’ equity
12,678  11,945  11,714 
Average common total shareholders' equity
10,701  10,590  10,510 
Average tangible common shareholders' equity
8,549  8,429  8,323 
Total assets at end of period
120,116  118,425  108,735  10 
Total shareholders’ equity at end of period
12,917  12,314  11,909 
NCOs as a % of average loans and leases
0.56  % 0.54  % 0.39  %
NAL ratio
0.70  0.81  0.58 
NPA ratio (5)
0.74  0.89  0.64 
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period
2.21  2.12  1.05 
Common equity tier 1 risk-based capital ratio (6)
9.89  9.84  10.02 
Tangible common equity / tangible asset ratio (7)
7.27  7.28  8.00 
See Notes to the Quarterly Key Statistics.
1


Huntington Bancshares Incorporated
Year to Date Key Statistics
(Unaudited)
Nine Months Ended September 30,
Change
(dollar amounts in millions, except per share data) 2020 2019
Amount
Percent
Net interest income (2)
$ 2,415  $ 2,453  $ (38) (2) %
FTE adjustment
(16) (20) 20 
Net interest income
2,399  2,433  (34) (1)
Provision for credit losses
945  208  737  354 
Noninterest income
1,182  1,082  100 
Noninterest expense
2,039  2,020  19 
Income before income taxes
597  1,287  (690) (54)
Provision for income taxes
96  193  (97) (50)
Net Income
501  1,094  (593) (54)
Dividends on preferred shares
65  55  10  18 
Net income applicable to common shares
$ 436  $ 1,039  $ (603) (58) %
Net income per common share - diluted
$ 0.42  $ 0.98  $ (0.56) (57) %
Cash dividends declared per common share
0.45  0.43  0.02 
Average common shares - basic
1,017  1,042  (25) (2)
Average common shares - diluted
1,032  1,059  (27) (3)
Return on average assets
0.58  % 1.36  %
Return on average common shareholders’ equity
5.5  13.6 
Return on average tangible common shareholders’ equity (1)
7.3  17.7 
Net interest margin (2)
3.01  3.30 
Efficiency ratio (3)
55.8  56.0 
Effective tax rate
16.0  15.0 
Average total assets
$ 115,969  $ 107,721  $ 8,248 
Average earning assets
107,175  99,366  7,809 
Average loans and leases
78,818  74,936  3,882 
Average total deposits
90,352  82,244  8,108  10 
Average core deposits (4)
86,382  79,031  7,351 
Average shareholders’ equity
12,088  11,450  638 
Average common total shareholders' equity
10,575  10,247  328 
Average tangible common shareholders' equity
8,415  8,050  365 
NCOs as a % of average loans and leases
0.57  % 0.34  %
NAL ratio
0.70  0.58 
NPA ratio (5)
0.74  0.64 
See Notes to the Year to Date and Quarterly Key Statistics.

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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 nonperforming assets, which includes certain impaired securities and/or nonaccrual loans held for sale, and other real estate owned.
(6)September 30, 2020, 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.


3


Huntington Bancshares Incorporated
Consolidated Balance Sheets
September 30, December 31,
(dollar amounts in millions) 2020 2019
Percent Changes
(Unaudited)
Assets
Cash and due from banks
$ 1,029  $ 1,045  (2) %
Interest-bearing deposits in Federal Reserve Bank
5,246  125  4,097 
Interest-bearing deposits in banks
109  102 
Trading account securities
54  99  (45)
Available-for-sale securities
14,807  14,149 
Held-to-maturity securities
8,557  9,070  (6)
Other securities
421  441  (5)
Loans held for sale
1,303  877  49 
Loans and leases (1)
81,156  75,404 
Allowance for loan and lease losses
(1,796) (783) (129)
Net loans and leases
79,360  74,621 
Bank owned life insurance
2,567  2,542 
Premises and equipment
752  763  (1)
Goodwill
1,990  1,990  — 
Service rights and other intangible assets
419  475  (12)
Other assets
3,502  2,703  30 
Total assets
$ 120,116  $ 109,002  10  %
Liabilities and shareholders’ equity
Liabilities
Deposits (2)
$ 95,154  $ 82,347  16  %
Short-term borrowings
222  2,606  (91)
Long-term debt
9,174  9,849  (7)
Other liabilities
2,649  2,405  10 
Total liabilities
107,199  97,207  10 
Shareholders' equity
Preferred stock
2,191  1,203  82 
Common stock
10  10  — 
Capital surplus
8,766  8,806  — 
Less treasury shares, at cost
(59) (56) (5)
Accumulated other comprehensive gain (loss)
257  (256) 200 
Retained earnings (deficit)
1,752  2,088  (16)
Total shareholders’ equity
12,917  11,795  10 
Total liabilities and shareholders’ equity
$ 120,116  $ 109,002