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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) July 21, 2023
______________________________________________________________________________________________________________________________
Huntington Bancshares Incorporated
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________________________________________________
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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):
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☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ | 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:
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Title of class | Trading Symbol(s) | Name of exchange on which registered |
Depositary Shares (each representing a 1/40th interest in a share of 4.500% Series H Non-Cumulative, perpetual preferred stock) | HBANP | NASDAQ |
Depositary Shares (each representing a 1/1000th interest in a share of 5.70% Series I Non-Cumulative, perpetual preferred stock) | HBANM | NASDAQ |
Depositary Shares (each representing a 1/40th interest in a share of 6.875% Series J Non-Cumulative, perpetual preferred stock) | HBANL | NASDAQ |
Common Stock—Par Value $0.01 per Share | HBAN | NASDAQ |
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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). |
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| 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 July 21, 2023, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended June 30, 2023. Also on July 21, 2023, 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 July 21, 2023, at 9:00 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 #13739594. 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 July 29, 2023 at (877) 660-6853 or (201) 612-7415; conference ID #13739594.
The information contained or incorporated by reference in this Press Release on Form 8-K 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; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the impact of pandemics, including the COVID-19 pandemic and related variants and mutations, and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from recent bank failures and other volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of uninsured deposits which may require us to sell investment securities at a loss; rising interest rates which could negatively impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could negatively impact market perceptions of us and could lead to deposit withdrawals; the effects of social media on market perceptions of us and banks generally; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital and credit markets; movements in interest rates; transition away from 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 the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which are on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does 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 July 21, 2023.
Exhibit 99.2 – Quarterly Financial Supplement, June 30, 2023.
EXHIBIT INDEX
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Exhibit No. | Description |
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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.
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| | | HUNTINGTON BANCSHARES INCORPORATED |
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Date: | July 21, 2023 | | By: | | /s/ Zachary Wasserman |
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| | | | | Zachary Wasserman |
| | | | | Chief Financial Officer |
Exhibit 99.1
July 21, 2023
Analysts: Tim Sedabres (timothy.sedabres@huntington.com), 952.745.2766
Media: Tracy Pesho (corpmedia@huntington.com), 216.206.1525
HUNTINGTON BANCSHARES INCORPORATED REPORTS 2023 SECOND-QUARTER EARNINGS
Solid Q2 Results Reflect Continued Momentum Demonstrated by Deposit Growth,
Expansion of Capital, and Exceptional Credit Performance
2023 Second-Quarter Highlights:
•Earnings per common share (EPS) for the quarter were $0.35, a decrease of $0.04 from the prior quarter, and flat from the year-ago quarter.
•Net interest income decreased $63 million, or 4%, from the prior quarter, and increased $85 million, or 7%, from the year-ago quarter.
•Pre-Provision Net Revenue (PPNR) decreased $42 million, or 5%, from the prior quarter to $802 million, and increased $68 million, or 9%, from the year-ago quarter. Excluding Notable Items, adjusted PPNR decreased $21 million, or 3%, from the prior quarter to $807 million, and increased $49 million, or 6%, from the year-ago quarter.
•Cash and cash equivalents and available contingent borrowing capacity of $88 billion at June 30, 2023, representing 205% of uninsured deposits.
•Ending total deposits increased $2.7 billion from the prior quarter and $2.6 billion from the year-ago quarter. Average total deposits decreased $585 million from the prior quarter and $551 million from the year-ago quarter.
◦Ending core deposits increased $2.5 billion from the prior quarter reflecting continued momentum in consumer deposit gathering and ongoing focus on acquiring and deepening primary bank relationships.
•Average total loans and leases increased $925 million, or 1%, from the prior quarter to $121.3 billion, and increased $7.4 billion, or 6%, from the year-ago quarter.
◦Average total commercial loans and leases increased $772 million, or 1%, and average total consumer loans increased $153 million from the prior quarter.
•Net charge-offs of 0.16% of average total loans and leases for the quarter.
•Nonperforming assets have declined for eight consecutive quarters to 0.46%.
•Allowance for credit losses (ACL) of $2.3 billion, or 1.93%, of total loans and leases at quarter end.
•Common Equity Tier 1 (CET1) risk-based capital ratio increased 27 basis points to 9.82%, continuing the trend of capital build.
•Tangible common equity (TCE) ratio increased 3 basis points to 5.80%.
•Huntington was ranked number one among regional banks in the J.D. Power 2023 U.S. Banking Mobile App Satisfaction Study for the fifth consecutive year.
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2023 second quarter of $559 million, or $0.35 per common share, an increase of $20 million, or flat per common share, from the year-ago quarter.
Return on average assets was 1.18%, return on average common equity was 12.7%, return on average tangible common equity (ROTCE) was 19.9%.
CEO Commentary:
"We are pleased to deliver solid financial performance for the second quarter,” said Steve Steinour, chairman, president, and CEO. “These results reflect the continued execution of our strategy and the strength of our balance sheet. We delivered sustained deposit growth, drove capital ratios higher and managed credit exceptionally well.
“Huntington's foundation has been built over many years reflecting our disciplined approach and consistent adherence to our aggregate moderate-to-low risk appetite. This position of strength enables us to outperform and capture opportunities that may arise given the current environment.
“Finally, we were honored to again be recognized by J.D. Power as the highest in customer satisfaction among regional banks for our mobile app for the fifth consecutive year. This accolade demonstrates our focus on customers and our innovative digital capabilities along with a differentiated customer experience. We believe our long-standing focus on improving the customer experience is a differentiator and positions us for continued growth."
Table 1 – Earnings Performance Summary
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| 2023 | | 2022 |
(in millions, except per share data) | Second | | First | | Fourth | | Third | | Second |
Quarter | | Quarter | | Quarter | | Quarter | | Quarter |
Net income attributable to Huntington | $ | 559 | | | $ | 602 | | | $ | 645 | | | $ | 594 | | | $ | 539 | |
Diluted earnings per common share | 0.35 | | | 0.39 | | | 0.42 | | | 0.39 | | | 0.35 | |
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Return on average assets | 1.18 | % | | 1.32 | % | | 1.41 | % | | 1.31 | % | | 1.22 | % |
Return on average common equity | 12.7 | | | 14.6 | | | 16.0 | | | 13.9 | | | 12.8 | |
Return on average tangible common equity | 19.9 | | | 23.1 | | | 26.0 | | | 21.9 | | | 19.9 | |
Net interest margin | 3.11 | | | 3.40 | | | 3.52 | | | 3.42 | | | 3.15 | |
Efficiency ratio | 55.9 | | | 55.6 | | | 54.0 | | | 54.4 | | | 57.3 | |
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Tangible book value per common share | $ | 7.33 | | | $ | 7.32 | | | $ | 6.82 | | | $ | 6.40 | | | $ | 6.96 | |
Cash dividends declared per common share | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | |
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Average earning assets | $ | 174,909 | | | $ | 169,112 | | | $ | 165,545 | | | $ | 164,024 | | | $ | 161,225 | |
Average loans and leases | 121,345 | | | 120,420 | | | 118,907 | | | 116,964 | | | 113,949 | |
Average core deposits | 140,736 | | | 141,077 | | | 140,696 | | | 141,691 | | | 141,802 | |
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Tangible common equity / tangible assets ratio | 5.80 | % | | 5.77 | % | | 5.55 | % | | 5.32 | % | | 5.80 | % |
Common equity Tier 1 risk-based capital ratio | 9.82 | | | 9.55 | | | 9.36 | | | 9.27 | | | 9.05 | |
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NCOs as a % of average loans and leases | 0.16 | % | | 0.19 | % | | 0.17 | % | | 0.15 | % | | 0.03 | % |
NAL ratio | 0.42 | | | 0.44 | | | 0.48 | | | 0.51 | | | 0.57 | |
ACL as a % of total loans and leases | 1.93 | | | 1.90 | | | 1.90 | | | 1.89 | | | 1.87 | |
Table 2 lists certain items that we believe are important to understanding corporate performance and trends (see Basis of Presentation). There were no Notable Items in the three months ended June 30, 2023.
Table 2 – Notable Items Influencing Earnings
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| Pretax Impact (1) | | After-tax Impact (1) |
($ in millions, except per share) | Amount | | | Net Income | | EPS (2) | | |
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Three Months Ended March 31, 2023 | | | | $ | 602 | | | $ | 0.39 | | | |
• | | RPS sale (noninterest income) | $ | 57 | | | | $ | 44 | | | $ | 0.03 | | | |
• | | Voluntary retirement program and organizational realignment expense (noninterest expense) (3) | (42) | | | | (34) | | | (0.02) | | | |
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Three Months Ended June 30, 2022 | | | | $ | 539 | | | $ | 0.35 | | | |
• | | Acquisition-related expenses (4) | $ | (24) | | | | $ | (19) | | | $ | (0.01) | | | |
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(1)Favorable (unfavorable) impact.
(2)EPS reflected on a fully diluted basis.
(3)Voluntary retirement program ($36 million) and organizational realignment expense ($6 million).
(4)Includes TCF and Capstone acquisition-related expenses.
Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 3 – Net Interest Income and Net Interest Margin Performance Summary
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| 2023 | | 2022 | | | | | |
($ in millions) | Second | | First | | Fourth | | Third | | Second | | Change (%) | |
Quarter | | Quarter | | Quarter | | Quarter | | Quarter | LQ | | YOY | |
Net interest income | $ | 1,346 | | | $ | 1,409 | | | $ | 1,462 | | | $ | 1,404 | | | $ | 1,261 | | | (4) | % | | 7 | % | |
FTE adjustment | 11 | | | 9 | | | 9 | | | 8 | | | 6 | | | 22 | | | 83 | | |
Net interest income - FTE | 1,357 | | | 1,418 | | | 1,471 | | | 1,412 | | | 1,267 | | | (4) | | | 7 | | |
Noninterest income | 495 | | | 512 | | | 499 | | | 498 | | | 485 | | | (3) | | | 2 | | |
Total revenue - FTE | $ | 1,852 | | | $ | 1,930 | | | $ | 1,970 | | | $ | 1,910 | | | $ | 1,752 | | | (4) | % | | 6 | % | |
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| 2023 | | 2022 | | | | |
| Second | | First | | Fourth | | Third | | Second | | Change (bp) |
Yield / Cost | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Total earning assets | 5.13 | % | | 4.89 | % | | 4.46 | % | | 3.86 | % | | 3.33 | % | | 24 | | | 180 | |
Total loans and leases | 5.51 | | | 5.27 | | | 4.86 | | | 4.28 | | | 3.77 | | | 24 | | | 174 | |
Total securities | 3.82 | | | 3.56 | | | 3.26 | | | 2.74 | | | 2.24 | | | 26 | | | 158 | |
Total interest-bearing liabilities | 2.66 | | | 2.02 | | | 1.31 | | | 0.64 | | | 0.25 | | | 64 | | | 241 | |
Total interest-bearing deposits | 2.06 | | | 1.52 | | | 0.88 | | | 0.35 | | | 0.10 | | | 54 | | | 196 | |
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Net interest rate spread | 2.47 | | | 2.87 | | | 3.15 | | | 3.22 | | | 3.08 | | | (40) | | | (61) | |
Impact of noninterest-bearing funds on margin | 0.64 | | | 0.53 | | | 0.37 | | | 0.20 | | | 0.07 | | | 11 | | | 57 | |
Net interest margin | 3.11 | % | | 3.40 | % | | 3.52 | % | | 3.42 | % | | 3.15 | % | | (29) | | | (4) | |
See Pages 8-9 of Quarterly Financial Supplement for additional detail.
Fully-taxable equivalent (FTE) net interest income for the 2023 second quarter increased $90 million, or 7%, from the 2022 second quarter. The results primarily reflect a $13.7 billion, or 8%, increase in average earning assets, partially offset by a 4 basis point decrease in the net interest margin (NIM) to 3.11% and increase in average interest-bearing liabilities. The growth in average earning assets was primarily driven by higher cash balances and an increase in average loans and leases. The NIM compression was primarily driven by higher cost of funds and a 14 basis point impact from higher cash balances, partially offset by the higher rate environment driving an increase in loan and lease and investment security yields. Net interest income in the 2023 second quarter included $8 million of net interest income from purchase accounting accretion, compared to $16 million in the 2022 second quarter.
Compared to the 2023 first quarter, FTE net interest income decreased $61 million, or 4%, reflecting a 29 basis point decrease in NIM and higher average interest-bearing liabilities, partially offset by higher average earnings assets. The NIM decrease was driven by higher cost of funds and an 8 basis point impact from higher cash balances, partially offset by higher loan and lease and investment security yields. Net interest income in the 2023 first quarter included $10 million of net interest income from purchase accounting accretion.
Table 4 – Average Earning Assets (1)
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| 2023 | | 2022 | | | | |
($ in billions) | Second | | First | | Fourth | | Third | | Second | | Change (%) |
Quarter | | Quarter | | Quarter | | Quarter | | Quarter | LQ | | YOY |
Commercial and industrial | $ | 50.2 | | | $ | 49.0 | | | $ | 47.5 | | | $ | 46.0 | | | $ | 44.8 | | | 2 | % | | 12 | % |
Commercial real estate | 13.3 | | | 13.7 | | | 13.9 | | | 13.7 | | | 13.2 | | | (2) | | | 1 | |
Lease financing | 5.2 | | | 5.2 | | | 5.1 | | | 5.0 | | | 4.9 | | | (1) | | | 5 | |
Total commercial | 68.7 | | | 67.9 | | | 66.4 | | | 64.7 | | | 62.9 | | | 1 | | | 9 | |
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Residential mortgage | 22.8 | | | 22.3 | | | 22.0 | | | 21.6 | | | 20.5 | | | 2 | | | 11 | |
Automobile | 12.9 | | | 13.2 | | | 13.3 | | | 13.5 | | | 13.6 | | | (2) | | | (5) | |
Home equity | 10.2 | | | 10.3 | | | 10.4 | | | 10.4 | | | 10.4 | | | (1) | | | (2) | |
RV and marine | 5.5 | | | 5.4 | | | 5.4 | | | 5.5 | | | 5.3 | | | 2 | | | 3 | |
Other consumer | 1.3 | | | 1.3 | | | 1.3 | | | 1.3 | | | 1.3 | | | 2 | | | 3 | |
Total consumer | 52.7 | | | 52.5 | | | 52.5 | | | 52.3 | | | 51.1 | | | — | | | 3 | |
Total loans and leases | 121.3 | | | 120.4 | | | 118.9 | | | 117.0 | | | 113.9 | | | 1 | | | 6 | |
Total securities | 41.7 | | | 41.9 | | | 41.1 | | | 42.6 | | | 42.6 | | | — | | | (2) | |
Interest-bearing deposits at Federal Reserve Bank | 11.1 | | | 6.1 | | | 4.6 | | | 3.2 | | | 3.5 | | | 81 | | | 213 | |
Other earning assets | 0.8 | | | 0.7 | | | 0.9 | | | 1.2 | | | 1.2 | | | 14 | | | (33) | |
Total earning assets | $ | 174.9 | | | $ | 169.1 | | | $ | 165.5 | | | $ | 164.0 | | | $ | 161.2 | | | 3 | % | | 8 | % |
See Page 7 of Quarterly Financial Supplement for additional detail.
(1)During the 2023 second quarter, Huntington revised its process for assessing and monitoring the risk and performance of non-real estate secured commercial loans, primarily loans to REITs. These loans were reclassified from commercial real estate to the commercial and industrial loan category to align reporting with this process revision. All prior period results have been adjusted to conform to the current presentation.
Average earning assets for the 2023 second quarter increased $13.7 billion, or 8%, from the year-ago quarter, primarily reflecting a $7.5 billion, or 213%, increase in deposits at Federal Reserve Bank and a $7.4 billion, or 6%, increase in average total loans and leases, partially offset by a $826 million, or 2%, decrease in average securities. Average loan and lease balance increases were led by growth in average commercial loans and leases of $5.8 billion, or 9%, primarily driven by a $5.4 billion, or 12% increase in average commercial and industrial loans. Also, average consumer loans increased $1.6 billion, or 3%.
Compared to the 2023 first quarter, average earning assets increased $5.8 billion primarily reflecting a $5.0 billion, or 81%, increase in deposits at Federal Reserve Bank and a $925 million, or 1%, increase in average total loans and leases. Average loan and lease balance increases were primarily due to higher average commercial loans and leases of $772 million, or 1%, reflecting modest growth aligned with our optimization of loan growth focused on highest returns.
Table 5 – Liabilities
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| 2023 | | 2022 | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) |
($ in billions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Average balances: | | | | | | | | | | | | | |
Demand deposits - noninterest-bearing | $ | 34.6 | | | $ | 37.5 | | | $ | 39.9 | | | $ | 42.1 | | | $ | 42.4 | | | (8) | % | | (18) | % |
Demand deposits - interest-bearing | 39.7 | | | 40.7 | | | 42.7 | | | 42.1 | | | 41.7 | | | (2) | | | (5) | |
Total demand deposits | 74.3 | | | 78.2 | | | 82.6 | | | 84.2 | | | 84.1 | | | (5) | | | (12) | |
Money market deposits | 38.8 | | | 37.3 | | | 34.4 | | | 34.1 | | | 33.8 | | | 4 | | | 15 | |
Savings and other domestic deposits | 18.8 | | | 19.9 | | | 20.8 | | | 21.4 | | | 21.7 | | | (5) | | | (13) | |
Core certificates of deposit | 8.8 | | | 5.7 | | | 2.9 | | | 2.0 | | | 2.2 | | | 53 | | | 296 | |
Total core deposits | 140.7 | | | 141.1 | | | 140.7 | | | 141.7 | | | 141.8 | | | — | | | (1) | |
Other domestic deposits of $250,000 or more | 0.3 | | | 0.2 | | | 0.2 | | | 0.2 | | | 0.2 | | | 27 | | | 42 | |
Negotiable CDs, brokered and other deposits | 4.6 | | | 4.8 | | | 4.8 | | | 4.1 | | | 3.0 | | | (7) | | | 51 | |
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Total deposits | $ | 145.6 | | | $ | 146.1 | | | $ | 145.7 | | | $ | 146.0 | | | $ | 145.0 | | | — | % | | — | % |
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Short-term borrowings | $ | 5.2 | | | $ | 4.4 | | | $ | 0.5 | | | $ | 2.6 | | | $ | 2.1 | | | 20 | % | | 149 | % |
Long-term debt | 16.3 | | | 11.0 | | | 12.7 | | | 8.3 | | | 7.0 | | | 47 | | | 131 | |
Total debt | $ | 21.5 | | | $ | 15.4 | | | $ | 13.2 | | | $ | 10.9 | | | $ | 9.1 | | | 39 | % | | 135 | % |
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Total interest-bearing liabilities | $ | 132.5 | | | $ | 124.1 | | | $ | 119.0 | | | $ | 114.8 | | | $ | 111.7 | | | 7 | % | | 19 | % |
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Period end balances: | | | | | | | | | | | | | |
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Total core deposits | $ | 142.9 | | | $ | 140.4 | | | $ | 142.1 | | | $ | 141.6 | | | $ | 141.5 | | | 2 | % | | 1 | % |
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Other deposits | 5.1 | | | 4.9 | | | 5.8 | | | 4.7 | | | 3.9 | | | 6 | | | 31 | |
Total deposits | $ | 148.0 | | | $ | 145.3 | | | $ | 147.9 | | | $ | 146.3 | | | $ | 145.4 | | | 2 | % | | 2 | % |
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See Pages 6-7 of Quarterly Financial Supplement for additional detail.
Average total interest-bearing liabilities for the 2023 second quarter increased $20.7 billion, or 19%, from the year-ago quarter. Average total debt increased $12.4 billion, or 135%, driven by higher long and short-term Federal Home Loan Bank (FHLB) borrowings and new debt issuances reflecting actions taken as part of normal management of funding needs. Average total deposits increased $551 million, while average total core deposits decreased $1.1 billion, or 1%. The average total core deposit decrease was driven by lower average commercial core deposits of $2.6 billion, or 4%, partially offset by higher average consumer deposits of $1.6 billion, or 2%.
Compared to the 2023 first quarter, average total interest-bearing liabilities increased $8.4 billion, or 7%. Average total debt increased $6.1 billion, or 39%, driven by higher long and short-term FHLB borrowings reflecting management of funding needs. Average total deposits decreased $585 million, and average total core deposits decreased $341 million. The average total core deposit decrease was primarily driven by lower average commercial core deposits of $2.1 billion, or 3%, partially offset by higher average consumer core deposits of $1.8 billion, or 2%.
Ending total deposits as of June 30, 2023 increased $2.6 billion, or 2%, compared to a year-ago. The increase was driven by a $3.5 billion, or 5%, increase in core consumer deposits and a $1.2 billion, or 31%, increase in other deposits, partially offset by a $2.2 billion, or 3%, decrease in core commercial deposits.
Compared to March 31, 2023, ending total deposits increased $2.7 billion, or 2%. The increase was driven by a $2.1 billion, or 3%, increase in consumer core deposits, $318 million, or 1%, increase in commercial core deposits and a $300 million increase in other deposits.
Noninterest Income
Table 6 – Noninterest Income
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| 2023 | | 2022 | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Service charges on deposit accounts | $ | 87 | | | $ | 83 | | | $ | 89 | | | $ | 93 | | | $ | 105 | | | 5 | % | | (17) | % |
Card and payment processing income | 102 | | | 93 | | | 96 | | | 96 | | | 96 | | | 10 | | | 6 | |
Capital markets fees | 57 | | | 59 | | | 83 | | | 73 | | | 54 | | | (3) | | | 6 | |
Trust and investment management services | 68 | | | 62 | | | 61 | | | 60 | | | 63 | | | 10 | | | 8 | |
Mortgage banking income | 33 | | | 26 | | | 25 | | | 26 | | | 44 | | | 27 | | | (25) | |
Leasing revenue | 25 | | | 26 | | | 35 | | | 29 | | | 27 | | | (4) | | | (7) | |
Insurance income | 30 | | | 34 | | | 31 | | | 28 | | | 27 | | | (12) | | | 11 | |
Gain on sale of loans | 8 | | | 3 | | | 2 | | | 15 | | | 12 | | | 167 | | | (33) | |
Bank owned life insurance income | 16 | | | 16 | | | 15 | | | 13 | | | 11 | | | 0 | | | 45 | |
Net (losses) gains on sales of securities | (5) | | | 1 | | | — | | | — | | | — | | | (600) | | | (100) | |
Other noninterest income | 74 | | | 109 | | | 62 | | | 65 | | | 46 | | | (32) | | | 61 | |
Total noninterest income | $ | 495 | | | $ | 512 | | | $ | 499 | | | $ | 498 | | | $ | 485 | | | (3) | % | | 2 | % |
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Impact of Notable Item: | | | | | | | | | | | | | |
RPS sale (other noninterest income) | $ | — | | | $ | 57 | | | $ | — | | | $ | — | | | $ | — | | | (100) | | | — | |
Total adjusted noninterest income (Non-GAAP) | $ | 495 | | | $ | 455 | | | $ | 499 | | | $ | 498 | | | $ | 485 | | | 9 | % | | 2 | % |
See Page 11 of Quarterly Financial Supplement for additional detail.
Reported total noninterest income for the 2023 second quarter increased $10 million, or 2%, from the year-ago quarter primarily reflecting higher other noninterest income driven by an $18 million increase from favorable mark-to-market on pay-fixed swaptions. Additional increases include, higher card and payments processing of $6 million, or 6%, an increase in bank owned life insurance of $5 million, or 45%, and an increase in trust and investment management services of $5 million, or 8%. Partially offsetting these increases was a decrease in service charges on deposit accounts of $18 million, or 17%, primarily reflecting the impact from deposit pricing and program changes. Also, mortgage banking income decreased $11 million, or 25%, primarily reflecting lower net MSR risk management.
Total noninterest income decreased $17 million, or 3%, to $495 million for the 2023 second quarter, compared to $512 million for the 2023 first quarter. The decrease was primarily driven by the $57 million gain associated with the sale of the RPS business recognized in the 2023 first quarter. Partially offsetting this decrease was a $19 million increase from favorable mark-to-market on pay-fixed swaptions. Card and payment processing increased $9 million, or 10%, primarily driven by higher debit card usage. Mortgage banking income increased $7 million, or 27%, due to increases in origination volume, partially offset by lower saleable spreads. Trust and investment management services increased $6 million, or 10%.
Noninterest Expense
Table 7 – Noninterest Expense
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| 2023 | | 2022 | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Personnel costs | $ | 613 | | | $ | 649 | | | $ | 630 | | | $ | 614 | | | $ | 577 | | | (6) | % | | 6 | % |
Outside data processing and other services | 148 | | | 151 | | | 147 | | | 145 | | | 153 | | | (2) | | | (3) | |
Equipment | 64 | | | 64 | | | 67 | | | 60 | | | 61 | | | 0 | | | 5 | |
Net occupancy | 54 | | | 60 | | | 61 | | | 63 | | | 58 | | | (10) | | | (7) | |
Marketing | 32 | | | 25 | | | 22 | | | 24 | | | 24 | | | 28 | | | 33 | |
Professional services | 21 | | | 16 | | | 21 | | | 18 | | | 19 | | | 31 | | | 11 | |
Deposit and other insurance expense | 23 | | | 20 | | | 14 | | | 15 | | | 20 | | | 15 | | | 15 | |
Amortization of intangibles | 13 | | | 13 | | | 13 | | | 13 | | | 13 | | | — | | | — | |
Lease financing equipment depreciation | 8 | | | 8 | | | 9 | | | 11 | | | 11 | | | — | | | (27) | |
Other noninterest expense | 74 | | | 80 | | | 93 | | | 90 | | | 82 | | | (8) | | | (10) | |
Total noninterest expense | $ | 1,050 | | | $ | 1,086 | | | $ | 1,077 | | | $ | 1,053 | | | $ | 1,018 | | | (3) | % | | 3 | % |
(in thousands) | | | | | | | | | | | | | |
Average full-time equivalent employees | 20.2 | | | 20.2 | | | 20.0 | | | 20.0 | | | 19.9 | | | — | % | | 2 | % |
Table 8 - Impact of Notable Items
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| 2023 | | 2022 | |
| Second | | First | | Fourth | | Third | | Second | |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | |
Personnel costs | $ | — | | | $ | 42 | | | $ | — | | | $ | 1 | | | $ | 2 | | |
Outside data processing and other services | — | | | — | | | 2 | | | 2 | | | 12 | | |
Equipment | — | | | — | | | 2 | | | 1 | | | — | | |
Net occupancy | — | | | — | | | 10 | | | 6 | | | 6 | | |
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Professional services | — | | | — | | | 1 | | | — | | | 1 | | |
Deposit and other insurance expense | — | | | — | | | — | | | — | | | 1 | | |
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Other noninterest expense | — | | | — | | | — | | | — | | | 2 | | |
Total noninterest expense | $ | — | | | $ | 42 | | | $ | 15 | | | $ | 10 | | | $ | 24 | | |
Table 9 - Adjusted Noninterest Expense (Non-GAAP)
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| 2023 | | 2022 | | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) | |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY | |
Personnel costs | $ | 613 | | | $ | 607 | | | $ | 630 | | | $ | 613 | | | $ | 575 | | | 1 | % | | 7 | % | |
Outside data processing and other services | 148 | | | 151 | | | 145 | | | 143 | | | 141 | | | (2) | | | 5 | | |
Equipment | 64 | | | 64 | | | 65 | | | 59 | | | 61 | | | — | | | 5 | | |
Net occupancy | 54 | | | 60 | | | 51 | | | 57 | | | 52 | | | (10) | | | 4 | | |
Marketing | 32 | | | 25 | | | 22 | | | 24 | | | 24 | | | 28 | | | 33 | | |
Professional services | 21 | | | 16 | | | 20 | | | 18 | | | 18 | | | 31 | | | 17 | | |
Deposit and other insurance expense | 23 | | | 20 | | | 14 | | | 15 | | | 19 | | | 15 | | | 21 | | |
Amortization of intangibles | 13 | | | 13 | | | 13 | | | 13 | | | 13 | | | — | | | — | | |
Lease financing equipment depreciation | 8 | | | 8 | | | 9 | | | 11 | | | 11 | | | — | | | (27) | | |
Other noninterest expense | 74 | | | 80 | | | 93 | | | 90 | | | 80 | | | (8) | | | (8) | | |
Total adjusted noninterest expense | $ | 1,050 | | | $ | 1,044 | | | $ | 1,062 | | | $ | 1,043 | | | $ | 994 | | | 1 | % | | 6 | % | |
Reported total noninterest expense for the 2023 second quarter increased $32 million, or 3%, from the year-ago quarter. Excluding the impact from Notable Items, noninterest expense increased $56 million, or 6%, primarily driven by higher personnel costs of $38 million, or 7%, due to the full quarter impact of the Capstone acquisition and merit, higher marketing of $8 million, or 33%, reflecting actions taken to deepen and acquire new customer relationships, and higher outside data processing and other services of $7 million, or 5%, driven by higher technology investments.
Reported total noninterest expense decreased $36 million, or 3%, from the 2023 first quarter. Excluding the impact from Notable Items, noninterest expense increased $6 million, or 1%, primarily driven by an increase in marketing of $7 million, or 28%, reflecting actions taken to deepen and acquire new customer relationships, in addition to higher personnel costs of $6 million, or 1%, due to full quarter impact of merit increase, partially offset by lower payroll taxes. Partially offsetting these increases was a decrease of $6 million, or 10%, in net occupancy driven by seasonally lower maintenance and utilities.
Credit Quality
Table 10 – Credit Quality Metrics
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| 2023 | | 2022 |
($ in millions) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
Total nonaccrual loans and leases | $ | 510 | | | $ | 533 | | | $ | 569 | | | $ | 602 | | | $ | 657 | |
Total other real estate, net | 18 | | | 20 | | | 11 | | | 11 | | | 11 | |
Other NPAs (1) | 29 | | | 25 | | | 14 | | | 14 | | | 14 | |
Total nonperforming assets | 557 | | | 578 | | | 594 | | | 627 | | | 682 | |
Accruing loans and leases past due 90+ days | 173 | | | 185 | | | 207 | | | 223 | | | 212 | |
NPAs + accruing loans & leases past due 90+ days | $ | 730 | | | $ | 763 | | | $ | 801 | | | $ | 850 | | | $ | 894 | |
NAL ratio (2) | 0.42 | % | | 0.44 | % | | 0.48 | % | | 0.51 | % | | 0.57 | % |
NPA ratio (3) | 0.46 | | | 0.48 | | | 0.50 | | | 0.53 | | | 0.59 | |
(NPAs+90 days)/(Loans+OREO) | 0.60 | | | 0.63 | | | 0.67 | | | 0.72 | | | 0.77 | |
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Provision for credit losses | $ | 92 | | | $ | 85 | | | $ | 91 | | | $ | 106 | | | $ | 67 | |
Net charge-offs | 49 | | | 57 | | | 50 | | | 44 | | | 8 | |
Net charge-offs / Average total loans and leases | 0.16 | % | | 0.19 | % | | 0.17 | % | | 0.15 | % | | 0.03 | % |
Allowance for loans and lease losses (ALLL) | $ | 2,177 | | | $ | 2,142 | | | $ | 2,121 | | | $ | 2,110 | | | $ | 2,074 | |
Allowance for unfunded lending commitments | 165 | | | 157 | | | 150 | | | 120 | | | 94 | |
Allowance for credit losses (ACL) | $ | 2,342 | | | $ | 2,299 | | | $ | 2,271 | | | $ | 2,230 | | | $ | 2,168 | |
ALLL as a % of: | | | | | | | | | |
Total loans and leases | 1.80 | % | | 1.77 | % | | 1.77 | % | | 1.79 | % | | 1.78 | % |
NALs | 427 | | | 402 | | | 373 | | | 351 | | | 316 | |
NPAs | 391 | | | 371 | | | 357 | | | 336 | | | 304 | |
ACL as a % of: | | | | | | | | | |
Total loans and leases | 1.93 | % | | 1.90 | % | | 1.90 | % | | 1.89 | % | | 1.87 | % |
NALs | 459 | | | 431 | | | 400 | | | 371 | | | 330 | |
NPAs | 420 | | | 398 | | | 382 | | | 355 | | | 318 | |
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(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.
Nonperforming assets (NPAs) were $557 million, or 0.46%, of total loans and leases, OREO and other NPAs, compared to $682 million, or 0.59%, a year-ago. Nonaccrual loans and leases (NALs) were $510 million, or 0.42% of total loans and leases, compared to $657 million, or 0.57% of total loans and leases, a year-ago. On a linked quarter basis, NPAs decreased $21 million, or 4%, and NALs decreased $23 million, or 4%.
The provision for credit losses increased $25 million year-over-year and increased $7 million quarter-over-quarter to $92 million in the 2023 second quarter. Net charge-offs (NCOs) increased $41 million year-over-year and decreased $8 million quarter-over-quarter to $49 million. NCOs represented an annualized 0.16% of average loans and leases in the current quarter, up from 0.03% in the year-ago quarter and down from 0.19% in the prior quarter. The increase in NCOs year-over-year reflects the continued normalization of net charge-offs. Commercial and consumer net charge-offs remained low at 0.16% and 0.17%, respectively, for the 2023 second quarter.
The allowance for loan and lease losses (ALLL) increased $103 million from the year-ago quarter to $2.2 billion, or 1.80%, and allowance for credit losses (ACL) increased by $174 million from the year-ago quarter to $2.3 billion, or 1.93% of total loans and leases, primarily driven by loan and lease growth but also reflective of near-term recessionary risks. On a linked quarter basis, the ACL increased $43 million, resulting in the ACL coverage ratio increasing 3 basis points, to 1.93%.
Capital
Table 11 – Capital Ratios
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| | 2023 | | 2022 |
($ in billions) | | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
Tangible common equity / tangible assets ratio | | 5.80 | % | | 5.77 | % | | 5.55 | % | | 5.32 | % | | 5.80 | % |
Common equity tier 1 risk-based capital ratio (1) | | 9.82 | | | 9.55 | | | 9.36 | | | 9.27 | | | 9.05 | |
Regulatory Tier 1 risk-based capital ratio (1) | | 11.58 | | | 11.30 | | | 10.90 | | | 10.84 | | | 10.63 | |
Regulatory Total risk-based capital ratio (1) | | 13.82 | | | 13.53 | | | 13.09 | | | 13.05 | | | 12.81 | |
Total risk-weighted assets (1) | | $ | 141.4 | | | $ | 142.3 | | | $ | 141.9 | | | $ | 138.8 | | | $ | 137.8 | |
(1)June 30, 2023 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. The capital ratios reflect Huntington’s 2020 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. As of March 31, 2023 and June 30, 2023, 50% of the cumulative CECL deferral has been phased in. As of June 30, 2022, September 30, 2022, and December 31, 2022, 25% of the cumulative CECL deferral has been phased in.
See Page 16 of Quarterly Financial Supplement for additional detail.
The tangible common equity to tangible assets ratio was 5.80% at June 30, 2023, up 3 basis points from last quarter due primarily to current period earnings. Common Equity Tier 1 (CET1) risk-based capital ratio was 9.82%, up from 9.55% from the prior quarter. The increase in regulatory capital ratios was primarily driven by current period earnings.
Income Taxes
The provision for income taxes was $134 million in the 2023 second quarter compared to $144 million in the 2023 first quarter. The effective tax rate for the 2023 second quarter and 2023 first quarter were 19.3% and 19.2%, respectively. The variance to the linked quarter effective tax rate relates primarily to a reduction in capital losses, offset by an increase in tax credits and the impact of stock-based compensation.
At June 30, 2023, we had a net federal deferred tax asset of $383 million and a net state deferred tax asset of $87 million.
Conference Call / Webcast Information
Huntington’s senior management will host an earnings conference call on July 21, 2023, at 9:00 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 #13739594. 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 July 29, 2023 at (877) 660-6853 or (201) 612-7415; conference ID #13739594.
Please see the 2023 Second 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 $189 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates more than 1,000 branches in 11 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.
Caution regarding Forward-Looking Statements
The information contained or incorporated by reference in this Press Release on Form 8-K 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; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the impact of pandemics, including the COVID-19 pandemic and related variants and mutations, and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from recent bank failures and other volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of uninsured deposits which may require us to sell investment securities at a loss; rising interest rates which could negatively impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could negatively impact market perceptions of us and could lead to deposit withdrawals; the effects of social media on market perceptions of us and banks generally; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital and credit markets; movements in interest rates; transition away from 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 the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which are on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does 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, the financial supplement, 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.
Notable Items
From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management at that time to be infrequent or short term in nature. We refer to such items as “Notable Items.” Management believes it is useful to consider certain financial metrics with and without Notable Items, in order to enable a better understanding of company results, increase comparability of period-to-period results, and to evaluate and forecast those results.
Exhibit 99.2
HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Supplement
June 30, 2023
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.
During the 2023 second quarter, Huntington revised its process for assessing and monitoring the risk and performance of non-real estate secured commercial loans, primarily loans to REITs. These loans were reclassified from commercial real estate to the commercial and industrial loan category to align reporting with this process revision. All prior period results have been adjusted to conform to the current presentation.
To align with our strategic priorities, during the second quarter 2023, we completed an organizational realignment and now report on two business segments: Consumer & Regional Banking and Commercial Banking. The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense. Huntington’s business segments are based on our internally-aligned segment leadership structure, which is how management monitors results and assesses performance. The organizational realignment primarily involved consolidating our previously reported Consumer and Business Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group, into one new business segment called Consumer & Regional Banking. All prior period results have been adjusted to conform to the new segment 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%.
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) | June 30, | | March 31, | | June 30, | | | Percent Changes vs. |
2023 | | 2023 | | 2022 | | | 1Q23 | | 2Q22 |
Net interest income (2) | $ | 1,357 | | | $ | 1,418 | | | $ | 1,267 | | | | (4) | % | | 7 | % |
FTE adjustment | (11) | | | (9) | | | (6) | | | | (22) | | | (83) | |
Net interest income | 1,346 | | | 1,409 | | | 1,261 | | | | (4) | | | 7 | |
Provision for credit losses | 92 | | | 85 | | | 67 | | | | 8 | | | 37 | |
Noninterest income | 495 | | | 512 | | | 485 | | | | (3) | | | 2 | |
Noninterest expense | 1,050 | | | 1,086 | | | 1,018 | | | | (3) | | | 3 | |
Income before income taxes | 699 | | | 750 | | | 661 | | | | (7) | | | 6 | |
Provision for income taxes | 134 | | | 144 | | | 120 | | | | (7) | | | 12 | |
Income after income taxes | 565 | | | 606 | | | 541 | | | | (7) | | | 4 | |
Income attributable to non-controlling interest | 6 | | | 4 | | | 2 | | | | 50 | | | 200 | |
Net income attributable to Huntington | 559 | | | 602 | | | 539 | | | | (7) | | | 4 | |
Dividends on preferred shares | 40 | | | 29 | | | 28 | | | | 38 | | | 43 | |
| | | | | | | | | | |
Net income applicable to common shares | $ | 519 | | | $ | 573 | | | $ | 511 | | | | (9) | % | | 2 | |
| | | | | | | | | | |
Net income per common share - diluted | $ | 0.35 | | | $ | 0.39 | | | $ | 0.35 | | | | (10) | % | | — | % |
Cash dividends declared per common share | 0.155 | | | 0.155 | | | 0.155 | | | | — | | | — | |
Tangible book value per common share at end of period | 7.33 | | | 7.32 | | | 6.96 | | | | — | | | 5 | |
| | | | | | | | | | |
Average common shares - basic | 1,446 | | | 1,443 | | | 1,441 | | | | — | | | — | |
Average common shares - diluted | 1,466 | | | 1,469 | | | 1,463 | | | | — | | | — | |
Ending common shares outstanding | 1,448 | | | 1,444 | | | 1,442 | | | | — | | | — | |
Return on average assets | 1.18 | % | | 1.32 | % | | 1.22 | % | | | | | |
Return on average common shareholders’ equity | 12.7 | | | 14.6 | | | 12.8 | | | | | | |
Return on average tangible common shareholders’ equity (1) | 19.9 | | | 23.1 | | | 19.9 | | | | | | |
Net interest margin (2) | 3.11 | | | 3.40 | | | 3.15 | | | | | | |
Efficiency ratio (3) | 55.9 | | | 55.6 | | | 57.3 | | | | | | |
Effective tax rate | 19.3 | | | 19.2 | | | 18.1 | | | | | | |
Average total assets | $ | 190,746 | | | $ | 184,894 | | | $ | 176,561 | | | | 3 | | | 8 | |
Average earning assets | 174,909 | | | 169,112 | | | 161,225 | | | | 3 | | | 8 | |
Average loans and leases | 121,345 | | | 120,420 | | | 113,949 | | | | 1 | | | 6 | |
Average loans and leases - linked quarter annualized growth rate | 3.1 | % | | 5.1 | % | | 10.1 | % | | | | | |
Average total deposits | $ | 145,559 | | | $ | 146,144 | | | $ | 145,008 | | | | — | | | — | |
Average core deposits (4) | 140,736 | | | 141,077 | | | 141,802 | | | | — | | | (1) | |
| | | | | | | | | | |
Average Huntington shareholders’ equity | 18,844 | | | 18,231 | | | 18,228 | | | | 3 | | | 3 | |
Average common total shareholders' equity | 16,359 | | | 15,973 | | | 16,062 | | | | 2 | | | 2 | |
Average tangible common shareholders' equity | 10,662 | | | 10,253 | | | 10,496 | | | | 4 | | | 2 | |
Total assets at end of period | 188,505 | | | 189,070 | | | 178,782 | | | | — | | | 5 | |
Total Huntington shareholders’ equity at end of period | 18,788 | | | 18,758 | | | 17,950 | | | | — | | | 5 | |
| | | | | | | | | | |
NCOs as a % of average loans and leases | 0.16 | % | | 0.19 | % | | 0.03 | % | | | | | |
NAL ratio | 0.42 | | | 0.44 | | | 0.57 | | | | | | |
NPA ratio (5) | 0.46 | | | 0.48 | | | 0.59 | | | | | | |
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period | 1.80 | | | 1.77 | | | 1.78 | | | | | | |
Allowance for credit losses (ACL) as a % of total loans and leases at the end of period | 1.93 | | | 1.90 | | | 1.87 | | | | | | |
Common equity tier 1 risk-based capital ratio (6) | 9.82 | | | 9.55 | | | 9.05 | | | | | | |
Tangible common equity / tangible asset ratio (7) | 5.80 | | | 5.77 | | | 5.80 | | | | | | |
See Notes to the Quarterly Key Statistics.
Huntington Bancshares Incorporated
Year to Date Key Statistics
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, | | Change |
(dollar amounts in millions, except per share data) | 2023 | | 2022 | | Amount | | Percent |
Net interest income (2) | $ | 2,775 | | | $ | 2,421 | | | $ | 354 | | | 15 | % |
FTE adjustment | (20) | | | (14) | | | (6) | | | (43) | |
Net interest income | 2,755 | | | 2,407 | | | 348 | | | 14 | |
Provision for credit losses | 177 | | | 92 | | | 85 | | | 92 | |
Noninterest income | 1,007 | | | 984 | | | 23 | | | 2 | |
Noninterest expense | 2,136 | | | 2,071 | | | 65 | | | 3 | |
Income before income taxes | 1,449 | | | 1,228 | | | 221 | | | 18 | |
Provision for income taxes | 278 | | | 225 | | | 53 | | | 24 | |
Income after income taxes | 1,171 | | | 1,003 | | | 168 | | | 17 | |
Income attributable to non-controlling interest | 10 | | | 4 | | | 6 | | | 150 | |
Net income attributable to Huntington | 1,161 | | | 999 | | | 162 | | | 16 | |
Dividends on preferred shares | 69 | | | 56 | | | 13 | | | 23 | |
| | | | | | | |
Net income applicable to common shares | $ | 1,092 | | | $ | 943 | | | $ | 149 | | | 16 | % |
| | | | | | | |
Net income per common share - diluted | $ | 0.74 | | | $ | 0.64 | | | $ | 0.10 | | | 16 | % |
Cash dividends declared per common share | 0.31 | | | 0.31 | | | — | | | — | |
| | | | | | | |
Average common shares - basic | 1,445 | | | 1,440 | | | 5 | | | — | |
Average common shares - diluted | 1,468 | | | 1,464 | | | 4 | | | — | |
| | | | | | | |
Return on average assets | 1.25 | % | | 1.14 | % | | | | |
Return on average common shareholders’ equity | 13.6 | | | 11.5 | | | | | |
Return on average tangible common shareholders’ equity (1) | 21.5 | | | 17.8 | | | | | |
Net interest margin (2) | 3.25 | | | 3.02 | | | | | |
Efficiency ratio (3) | 55.7 | | | 60.0 | | | | | |
Effective tax rate | 19.2 | | | 18.3 | | | | | |
| | | | | | | |
Average total assets | $ | 187,836 | | | $ | 177,084 | | | $ | 10,752 | | | 6 | % |
Average earning assets | 172,026 | | | 161,816 | | | 10,210 | | | 6 | |
Average loans and leases | 120,885 | | | 112,553 | | | 8,332 | | | 7 | |
Average total deposits | 145,850 | | | 143,968 | | | 1,882 | | | 1 | |
Average core deposits (4) | 140,906 | | | 140,482 | | | 424 | | | — | |
Average Huntington shareholders’ equity | 18,539 | | | 18,644 | | | (105) | | | (1) | |
Average common total shareholders' equity | 16,167 | | | 16,478 | | | (311) | | | (2) | |
Average tangible common shareholders' equity | 10,459 | | | 10,927 | | | (468) | | | (4) | |
| | | | | | | |
NCOs as a % of average loans and leases | 0.17 | % | | 0.05 | % | | | | |
NAL ratio | 0.42 | | | 0.57 | | | | | |
NPA ratio (5) | 0.46 | | | 0.59 | | | | | |
NM - Not Meaningful
See Notes to the Year to Date and Quarterly Key Statistics.
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)June 30, 2023, 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.
Huntington Bancshares Incorporated
Consolidated Balance Sheets
| | | | | | | | | | | | | | | | | | | |
| June 30, | | December 31, | | | | |
(dollar amounts in millions) | 2023 | | 2022 | | Percent Changes | | |
| (Unaudited) | | | | | | |
Assets | | | | | | | |
Cash and due from banks | $ | 1,636 | | | $ | 1,796 | | | (9) | % | | |
Interest-bearing deposits at Federal Reserve Bank | 9,443 | | | 4,908 | | | 92 | | | |
Interest-bearing deposits in banks | 210 | | | 214 | | | (2) | | | |
Trading account securities | 128 | | | 19 | | | 574 | | | |
Available-for-sale securities | 23,233 | | | 23,423 | | | (1) | | | |
Held-to-maturity securities | 16,578 | | | 17,052 | | | (3) | | | |
| | | | | | | |
| | | | | | | |
Other securities | 975 | | | 854 | | | 14 | | | |
Loans held for sale | 545 | | | 529 | | | 3 | | | |
Loans and leases (1) | 121,225 | | | 119,523 | | | 1 | | | |
Allowance for loan and lease losses | (2,177) | | | (2,121) | | | (3) | | | |
Net loans and leases | 119,048 | | | 117,402 | | | 1 | | | |
Bank owned life insurance | 2,757 | | | 2,753 | | | — | | | |
Accrued income and other receivables | 1,471 | | | 1,573 | | | (6) | | | |
Premises and equipment | 1,128 | | | 1,156 | | | (2) | | | |
Goodwill | 5,561 | | | 5,571 | | | — | | | |
Servicing rights and other intangible assets | 690 | | | 712 | | | (3) | | | |
Other assets | 5,102 | | | 4,944 | | | 3 | | | |
Total assets | $ | 188,505 | | | $ | 182,906 | | | 3 | % | | |
| | | | | | | |
Liabilities and shareholders' equity | | | | | | | |
Liabilities | | | | | | | |
Deposits (2) | $ | 148,028 | | | $ | 147,914 | | | — | % | | |
Short-term borrowings | 1,680 | | | 2,027 | | | (17) | | | |
Long-term debt | 14,711 | | | 9,686 | | | 52 | | | |
Other liabilities | 5,248 | | | 5,510 | | | (5) | | | |
Total liabilities | 169,667 | | | 165,137 | | | 3 | | | |
| | | | | | | |
Shareholders' equity | | | | | | | |
Preferred stock | 2,484 | | | 2,167 | | | 15 | | | |
Common stock | 15 | | | 14 | | | 7 | | | |
Capital surplus | 15,335 | | | 15,309 | | | — | | | |
Less treasury shares, at cost | (92) | | | (80) | | | (15) | | | |
Accumulated other comprehensive income (loss) | (3,006) | | | (3,098) | | | 3 | | | |
Retained earnings | 4,052 | | | 3,419 | | | 19 | | | |
Total Huntington shareholders’ equity | 18,788 | | | 17,731 | | | 6 | | | |
Non-controlling interest | 50 | | | 38 | | | 32 | | | |
Total equity | 18,838 | | | 17,769 | | | 6 | | | |
Total liabilities and equity | $ | 188,505 | | | $ | 182,906 | | | 3 | % | | |
| | | | | | | |
Common shares authorized (par value of $0.01) | 2,250,000,000 | | | 2,250,000,000 | | | | | |
Common shares outstanding | 1,447,882,434 | | | 1,443,068,036 | | | | | |
Treasury shares outstanding | 7,429,675 | | | 6,322,052 | | | | | |
Preferred stock, authorized shares | 6,617,808 | | | 6,617,808 | | | | | |
Preferred shares outstanding | 882,500 | | | 557,500 | | | | | |
(1)See page 5 for detail of loans and leases. (2)See page 6 for detail of deposits.
Huntington Bancshares Incorporated
Loans and Leases Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Ending balances by type: | | | | | | | | | | | | | | | | | | | |
Total loans and leases | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 49,834 | | | 41 | % | | $ | 50,039 | | | 42 | % | | $ | 48,121 | | | 41 | % | | $ | 46,724 | | | 40 | % | | $ | 45,653 | | | 40 | % |
Commercial real estate: | | | | | | | | | | | | | | | | | | | |
Commercial | 11,750 | | | 10 | | | 12,132 | | | 10 | | | 12,138 | | | 10 | | | 12,137 | | | 10 | | | 11,960 | | | 10 | |
Construction | 1,416 | | | 1 | | | 1,255 | | | 1 | | | 1,502 | | | 1 | | | 1,739 | | | 2 | | | 1,522 | | | 1 | |
Commercial real estate | 13,166 | | | 11 | | | 13,387 | | | 11 | | | 13,640 | | | 11 | | | 13,876 | | | 12 | | | 13,482 | | | 11 | |
Lease financing | 5,143 | | | 4 | | | 5,244 | | | 4 | | | 5,252 | | | 4 | | | 5,093 | | | 4 | | | 5,043 | | | 4 | |
Total commercial | 68,143 | | | 56 | | | 68,670 | | | 57 | | | 67,013 | | | 56 | | | 65,693 | | | 56 | | | 64,178 | | | 55 | |
Consumer: | | | | | | | | | | | | | | | | | | | |
Residential mortgage | 23,138 | | | 19 | | | 22,472 | | | 19 | | | 22,226 | | | 19 | | | 21,816 | | | 18 | | | 21,220 | | | 18 | |
Automobile | 12,819 | | | 11 | | | 13,187 | | | 11 | | | 13,154 | | | 11 | | | 13,430 | | | 11 | | | 13,622 | | | 12 | |
Home equity | 10,135 | | | 8 | | | 10,166 | | | 8 | | | 10,375 | | | 9 | | | 10,440 | | | 9 | | | 10,426 | | | 9 | |
RV and marine | 5,640 | | | 5 | | | 5,404 | | | 4 | | | 5,376 | | | 4 | | | 5,436 | | | 5 | | | 5,453 | | | 5 | |
Other consumer | 1,350 | | | 1 | | | 1,280 | | | 1 | | | 1,379 | | | 1 | | | 1,332 | | | 1 | | | 1,322 | | | 1 | |
Total consumer | 53,082 | | | 44 | | | 52,509 | | | 43 | | | 52,510 | | | 44 | | | 52,454 | | | 44 | | | 52,043 | | | 45 | |
Total loans and leases | $ | 121,225 | | | 100 | % | | $ | 121,179 | | | 100 | % | | $ | 119,523 | | | 100 | % | | $ | 118,147 | | | 100 | % | | $ | 116,221 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Ending balances by business segment: | | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 65,374 | | | 54 | % | | $ | 64,387 | | | 53 | % | | $ | 64,080 | | | 54 | % | | $ | 63,603 | | | 54 | % | | $ | 63,355 | | | 55 | % |
Commercial Banking | 55,672 | | | 46 | | | 56,599 | | | 47 | | | 55,304 | | | 46 | | | 54,320 | | | 46 | | | 52,663 | | | 45 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 179 | | | — | | | 193 | | | — | | | 139 | | | — | | | 224 | | | — | | | 203 | | | — | |
Total loans and leases | $ | 121,225 | | | 100 | % | | $ | 121,179 | | | 100 | % | | $ | 119,523 | | | 100 | % | | $ | 118,147 | | | 100 | % | | $ | 116,221 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Average balances by business segment: | | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 64,782 | | | 54 | % | | $ | 64,209 | | | 54 | % | | $ | 63,836 | | | 54 | % | | $ | 63,468 | | | 55 | % | | $ | 62,484 | | | 55 | % |
Commercial Banking | 56,375 | | | 46 | | | 55,919 | | | 46 | | | 54,789 | | | 46 | | | 53,067 | | | 45 | | | 51,109 | | | 45 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 188 | | | — | | | 292 | | | — | | | 282 | | | — | | | 429 | | | — | | | 356 | | | — | |
Total loans and leases | $ | 121,345 | | | 100 | % | | $ | 120,420 | | | 100 | % | | $ | 118,907 | | | 100 | % | | $ | 116,964 | | | 100 | % | | $ | 113,949 | | | 100 | % |
Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Ending balances: | | | | | | | | | | | | | | | | | | | |
Total deposits by type: | | | | | | | | | | | | | | | | | | | |
Demand deposits - noninterest-bearing | $ | 33,340 | | | 23 | % | | $ | 36,789 | | | 25 | % | | $ | 38,242 | | | 26 | % | | $ | 40,762 | | | 28 | % | | $ | 42,131 | | | 29 | % |
Demand deposits - interest-bearing | 40,387 | | | 27 | | | 39,827 | | | 28 | | | 43,136 | | | 29 | | | 43,673 | | | 30 | | | 41,433 | | | 28 | |
Money market deposits | 40,534 | | | 28 | | | 37,276 | | | 26 | | | 36,082 | | | 24 | | | 33,811 | | | 23 | | | 34,257 | | | 24 | |
Savings and other domestic deposits | 18,294 | | | 12 | | | 19,546 | | | 13 | | | 20,357 | | | 14 | | | 21,274 | | | 15 | | | 21,583 | | | 15 | |
Core certificates of deposit (1) | 10,314 | | | 7 | | | 6,981 | | | 5 | | | 4,324 | | | 3 | | | 2,115 | | | 1 | | | 2,103 | | | 1 | |
Total core deposits | 142,869 | | | 97 | | | 140,419 | | | 97 | | | 142,141 | | | 96 | | | 141,635 | | | 97 | | | 141,507 | | | 97 | |
Other domestic deposits of $250,000 or more | 381 | | | — | | | 282 | | | — | | | 220 | | | — | | | 186 | | | — | | | 221 | | | — | |
Negotiable CDS, brokered and other deposits | 4,778 | | | 3 | | | 4,577 | | | 3 | | | 5,553 | | | 4 | | | 4,492 | | | 3 | | | 3,707 | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Total deposits | $ | 148,028 | | | 100 | % | | $ | 145,278 | | | 100 | % | | $ | 147,914 | | | 100 | % | | $ | 146,313 | | | 100 | % | | $ | 145,435 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Total core deposits: | | | | | | | | | | | | | | | | | | | |
Commercial | $ | 61,450 | | | 43 | % | | $ | 61,132 | | | 44 | % | | $ | 64,107 | | | 45 | % | | $ | 65,151 | | | 46 | % | | $ | 63,629 | | | 45 | % |
Consumer | 81,419 | | | 57 | | | 79,287 | | | 56 | | | 78,034 | | | 55 | | | 76,484 | | | 54 | | | 77,878 | | | 55 | |
Total core deposits | $ | 142,869 | | | 100 | % | | $ | 140,419 | | | 100 | % | | $ | 142,141 | | | 100 | % | | $ | 141,635 | | | 100 | % | | $ | 141,507 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Total deposits by business segment: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 106,502 | | | 72 | % | | $ | 105,339 | | | 72 | % | | $ | 105,064 | | | 71 | % | | $ | 104,716 | | | 72 | % | | $ | 106,967 | | | 74 | % |
Commercial Banking | 36,459 | | | 25 | | | 34,660 | | | 24 | | | 36,807 | | | 25 | | | 36,487 | | | 25 | | | 33,913 | | | 23 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 5,067 | | | 3 | | | 5,279 | | | 4 | | | 6,043 | | | 4 | | | 5,110 | | | 3 | | | 4,555 | | | 3 | |
Total deposits | $ | 148,028 | | | 100 | % | | $ | 145,278 | | | 100 | % | | $ | 147,914 | | | 100 | % | | $ | 146,313 | | | 100 | % | | $ | 145,435 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Average balances: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total core deposits: | | | | | | | | | | | | | | | | | | | |
Commercial | $ | 61,304 | | | 44 | % | | $ | 63,423 | | | 45 | % | | $ | 65,128 | | | 46 | % | | $ | 65,278 | | | 46 | % | | $ | 63,921 | | | 45 | % |
Consumer | 79,432 | | | 56 | | | 77,654 | | | 55 | | | 75,568 | | | 54 | | | 76,414 | | | 54 | | | 77,881 | | | 55 | |
Total core deposits | $ | 140,736 | | | 100 | % | | $ | 141,077 | | | 100 | % | | $ | 140,696 | | | 100 | % | | $ | 141,692 | | | 100 | % | | $ | 141,802 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Average deposits by business segment: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 104,593 | | | 71 | % | | $ | 104,151 | | | 71 | % | | $ | 103,820 | | | 71 | % | | $ | 105,174 | | | 72 | % | | $ | 106,801 | | | 73 | % |
Commercial Banking | 35,752 | | | 25 | | | 36,288 | | | 25 | | | 36,260 | | | 25 | | | 35,880 | | | 25 | | | 34,368 | | | 24 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 5,214 | | | 4 | | | 5,705 | | | 4 | | | 5,592 | | | 4 | | | 4,954 | | | 3 | | | 3,839 | | | 3 | |
Total deposits | $ | 145,559 | | | 100 | % | | $ | 146,144 | | | 100 | % | | $ | 145,672 | | | 100 | % | | $ | 146,008 | | | 100 | % | | $ | 145,008 | | | 100 | % |
(1)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Average Balances (1) | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | | Percent Changes vs. |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 | | | 1Q23 | | 2Q22 |
Assets | | | | | | | | | | | | | | |
Interest-bearing deposits at Federal Reserve Bank | $ | 11,052 | | | $ | 6,101 | | | $ | 4,615 | | | $ | 3,204 | | | $ | 3,532 | | | | 81 | | | 213 | |
Interest-bearing deposits in banks | 229 | | | 249 | | | 305 | | | 260 | | | 161 | | | | (8) | | | 42 | |
Securities: | | | | | | | | | | | | | | |
Trading account securities | 34 | | | 21 | | | 29 | | | 24 | | | 30 | | | | 62 | | | 13 | |
Available-for-sale securities: | | | | | | | | | | | | | | |
Taxable | 20,920 | | | 21,368 | | | 20,467 | | | 21,677 | | | 21,672 | | | | (2) | | | (3) | |
Tax-exempt | 2,745 | | | 2,640 | | | 2,706 | | | 2,917 | | | 2,859 | | | | 4 | | | (4) | |
Total available-for-sale securities | 23,665 | | | 24,008 | | | 23,173 | | | 24,594 | | | 24,531 | | | | (1) | | | (4) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Held-to-maturity securities - taxable | 16,762 | | | 16,977 | | | 17,022 | | | 17,188 | | | 17,234 | | | | (1) | | | (3) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Other securities | 1,263 | | | 886 | | | 857 | | | 804 | | | 755 | | | | 43 | | | 67 | |
Total securities | 41,724 | | | 41,892 | | | 41,081 | | | 42,610 | | | 42,550 | | | | — | | | (2) | |
Loans held for sale | 559 | | | 450 | | | 637 | | | 986 | | | 1,033 | | | | 24 | | | (46) | |
Loans and leases: (2) | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | 50,194 | | | 49,028 | | | 47,505 | | | 46,029 | | | 44,763 | | | | 2 | | | 12 | |
Commercial real estate: | | | | | | | | | | | | | | |
Commercial | 12,062 | | | 12,282 | | | 12,179 | | | 11,974 | | | 11,442 | | | | (2) | | | 5 | |
Construction | 1,280 | | | 1,400 | | | 1,676 | | | 1,697 | | | 1,760 | | | | (9) | | | (27) | |
Commercial real estate | 13,342 | | | 13,682 | | | 13,855 | | | 13,671 | | | 13,202 | | | | (2) | | | 1 | |
Lease financing | 5,155 | | | 5,209 | | | 5,080 | | | 4,981 | | | 4,919 | | | | (1) | | | 5 | |
Total commercial | 68,691 | | | 67,919 | | | 66,440 | | | 64,681 | | | 62,884 | | | | 1 | | | 9 | |
Consumer: | | | | | | | | | | | | | | |
Residential mortgage | 22,765 | | | 22,327 | | | 22,011 | | | 21,552 | | | 20,527 | | | | 2 | | | 11 | |
Automobile | 12,927 | | | 13,245 | | | 13,284 | | | 13,514 | | | 13,557 | | | | (2) | | | (5) | |
Home equity | 10,154 | | | 10,258 | | | 10,417 | | | 10,431 | | | 10,373 | | | | (1) | | | (2) | |
RV and marine | 5,478 | | | 5,366 | | | 5,408 | | | 5,454 | | | 5,317 | | | | 2 | | | 3 | |
Other consumer | 1,330 | | | 1,305 | | | 1,347 | | | 1,332 | | | 1,291 | | | | 2 | | | 3 | |
Total consumer | 52,654 | | | 52,501 | | | 52,467 | | | 52,283 | | | 51,065 | | | | — | | | 3 | |
Total loans and leases | 121,345 | | | 120,420 | | | 118,907 | | | 116,964 | | | 113,949 | | | | 1 | | | 6 | |
Total earning assets | 174,909 | | | 169,112 | | | 165,545 | | | 164,024 | | | 161,225 | | | | 3 | | | 8 | |
Cash and due from banks | 1,639 | | | 1,598 | | | 1,650 | | | 1,697 | | | 1,669 | | | | 3 | | | (2) | |
Goodwill and other intangible assets | 5,734 | | | 5,759 | | | 5,771 | | | 5,781 | | | 5,613 | | | | — | | | 2 | |
All other assets | 10,638 | | | 10,568 | | | 10,458 | | | 10,154 | | | 10,107 | | | | 1 | | | 5 | |
Allowance for loan and lease losses | (2,174) | | | (2,143) | | | (2,132) | | | (2,099) | | | (2,053) | | | | (1) | | | (6) | |
Total assets | $ | 190,746 | | | $ | 184,894 | | | $ | 181,292 | | | $ | 179,557 | | | $ | 176,561 | | | | 3 | % | | 8 | % |
Liabilities and shareholders' equity | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | |
Demand deposits - interest-bearing | $ | 39,772 | | | $ | 40,654 | | | $ | 42,705 | | | $ | 42,038 | | | $ | 41,712 | | | | (2) | % | | (5) | % |
Money market deposits | 38,753 | | | 37,301 | | | 34,390 | | | 34,058 | | | 33,791 | | | | 4 | | | 15 | |
Savings and other domestic deposits | 18,826 | | | 19,877 | | | 20,831 | | | 21,439 | | | 21,683 | | | | (5) | | | (13) | |
Core certificates of deposit (3) | 8,820 | | | 5,747 | | | 2,926 | | | 2,040 | | | 2,228 | | | | 53 | | | 296 | |
| | | | | | | | | | | | | | |
Other domestic deposits of $250,000 or more | 320 | | | 252 | | | 198 | | | 193 | | | 225 | | | | 27 | | | 42 | |
Negotiable CDS, brokered and other deposits | 4,502 | | | 4,815 | | | 4,777 | | | 4,124 | | | 2,981 | | | | (7) | | | 51 | |
| | | | | | | | | | | | | | |
Total interest-bearing deposits | 110,993 | | | 108,646 | | | 105,827 | | | 103,892 | | | 102,620 | | | | 2 | | | 8 | |
Short-term borrowings | 5,242 | | | 4,371 | | | 545 | | | 2,609 | | | 2,103 | | | | 20 | | | 149 | |
Long-term debt | 16,252 | | | 11,047 | | | 12,650 | | | 8,251 | | | 7,024 | | | | 47 | | | 131 | |
Total interest-bearing liabilities | 132,487 | | | 124,064 | | | 119,022 | | | 114,752 | | | 111,747 | | | | 7 | | | 19 | |
Demand deposits - noninterest-bearing | 34,566 | | | 37,498 | | | 39,845 | | | 42,116 | | | 42,388 | | | | (8) | | | (18) | |
All other liabilities | 4,796 | | | 5,056 | | | 4,929 | | | 4,340 | | | 4,168 | | | | (5) | | | 15 | |
Total liabilities | 171,849 | | | 166,618 | | | 163,796 | | | 161,208 | | | 158,303 | | | | 3 | | | 9 | |
Total Huntington shareholders’ equity | 18,844 | | | 18,231 | | | 17,458 | | | 18,317 | | | 18,228 | | | | 3 | | | 3 | |
Non-controlling interest | 53 | | | 45 | | | 38 | | | 32 | | | 30 | | | | 18 | | | 77 | |
Total equity | 18,897 | | | 18,276 | | | 17,496 | | | 18,349 | | | 18,258 | | | | 3 | | | 3 | |
Total liabilities and equity | $ | 190,746 | | | $ | 184,894 | | | $ | 181,292 | | | $ | 179,557 | | | $ | 176,561 | | | | 3 | % | | 8 | % |
(1)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)Includes nonaccrual loans and leases.
(3)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Interest Income / Expense |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Assets | | | | | | | | | |
Interest-bearing deposits at Federal Reserve Bank | $ | 141 | | | $ | 71 | | | $ | 46 | | | $ | 19 | | | $ | 7 | |
Interest-bearing deposits in banks | 5 | | | 5 | | | 5 | | | 2 | | | 1 | |
Securities: | | | | | | | | | |
Trading account securities | 1 | | | — | | | — | | | — | | | 1 | |
Available-for-sale securities: | | | | | | | | | |
Taxable | 252 | | | 232 | | | 198 | | | 165 | | | 123 | |
Tax-exempt | 33 | | | 29 | | | 28 | | | 25 | | | 19 | |
Total available-for-sale securities | 285 | | | 261 | | | 226 | | | 190 | | | 142 | |
Held-to-maturity securities - taxable | 102 | | | 102 | | | 100 | | | 95 | | | 90 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Other securities | 11 | | | 10 | | | 9 | | | 7 | | | 6 | |
Total securities | 399 | | | 373 | | | 335 | | | 292 | | | 239 | |
Loans held for sale | 8 | | | 7 | | | 8 | | | 13 | | | 10 | |
Loans and leases: | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | 746 | | | 686 | | | 613 | | | 515 | | | 427 | |
Commercial real estate: | | | | | | | | | |
Commercial | 217 | | | 207 | | | 185 | | | 144 | | | 103 | |
Construction | 26 | | | 26 | | | 28 | | | 21 | | | 16 | |
Commercial real estate | 243 | | | 233 | | | 213 | | | 165 | | | 119 | |
Lease financing | 71 | | | 68 | | | 66 | | | 63 | | | 61 | |
Total commercial | 1,060 | | | 987 | | | 892 | | | 743 | | | 607 | |
Consumer: | | | | | | | | | |
Residential mortgage | 200 | | | 190 | | | 183 | | | 174 | | | 158 | |
Automobile | 134 | | | 129 | | | 125 | | | 120 | | | 115 | |
Home equity | 187 | | | 181 | | | 172 | | | 143 | | | 115 | |
RV and marine | 63 | | | 58 | | | 61 | | | 59 | | | 55 | |
Other consumer | 39 | | | 36 | | | 36 | | | 32 | | | 30 | |
Total consumer | 623 | | | 594 | | | 577 | | | 528 | | | 473 | |
Total loans and leases | 1,683 | | | 1,581 | | | 1,469 | | | 1,271 | | | 1,080 | |
Total earning assets | $ | 2,236 | | | $ | 2,037 | | | $ | 1,863 | | | $ | 1,597 | | | $ | 1,337 | |
| | | | | | | | | |
Liabilities | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | |
Demand deposits - interest-bearing | $ | 167 | | | $ | 132 | | | $ | 102 | | | $ | 42 | | | $ | 11 | |
Money market deposits | 255 | | | 172 | | | 75 | | | 25 | | | 8 | |
Savings and other domestic deposits | 6 | | | 3 | | | 2 | | | 1 | | | 1 | |
Core certificates of deposit (3) | 83 | | | 43 | | | 10 | | | 1 | | | — | |
| | | | | | | | | |
Other domestic deposits of $250,000 or more | 2 | | | 2 | | | 1 | | | — | | | — | |
Negotiable CDS, brokered and other deposits | 57 | | | 54 | | | 45 | | | 23 | | | 5 | |
| | | | | | | | | |
Total interest-bearing deposits | 570 | | | 406 | | | 235 | | | 92 | | | 25 | |
Short-term borrowings | 74 | | | 60 | | | 10 | | | 22 | | | 7 | |
Long-term debt | 235 | | | 153 | | | 147 | | | 71 | | | 38 | |
Total interest-bearing liabilities | 879 | | | 619 | | | 392 | | | 185 | | | 70 | |
Net interest income | $ | 1,357 | | | $ | 1,418 | | | $ | 1,471 | | | $ | 1,412 | | | $ | 1,267 | |
(1)Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 10 for the FTE adjustment. (2)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin - Yield
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Average Rates |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
Fully-taxable equivalent basis (1) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Assets | | | | | | | | | |
Interest-bearing deposits at Federal Reserve Bank | 5.12 | % | | 4.65 | % | | 3.99 | % | | 2.39 | % | | 0.80 | % |
Interest-bearing deposits in banks | 7.79 | | | 8.50 | | | 5.72 | | | 3.31 | | | 1.32 | |
Securities: | | | | | | | | | |
Trading account securities | 4.92 | | | 5.37 | | | 5.45 | | | 4.12 | | | 3.99 | |
Available-for-sale securities: | | | | | | | | | |
Taxable | 4.82 | | | 4.34 | | | 3.87 | | | 3.06 | | | 2.25 | |
Tax-exempt | 4.87 | | | 4.40 | | | 4.21 | | | 3.39 | | | 2.71 | |
Total available-for-sale securities | 4.83 | | | 4.35 | | | 3.91 | | | 3.09 | | | 2.30 | |
Held-to-maturity securities - taxable | 2.42 | | | 2.41 | | | 2.34 | | | 2.21 | | | 2.10 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Other securities | 3.47 | | | 4.35 | | | 4.15 | | | 3.21 | | | 3.62 | |
Total securities | 3.82 | | | 3.56 | | | 3.26 | | | 2.74 | | | 2.24 | |
Loans held for sale | 6.05 | | | 5.85 | | | 5.42 | | | 4.98 | | | 4.08 | |
Loans and leases: (3) | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | 5.87 | | | 5.60 | | | 5.06 | | | 4.37 | | | 3.78 | |
Commercial real estate: | | | | | | | | | |
Commercial | 7.14 | | | 6.73 | | | 5.93 | | | 4.72 | | | 3.53 | |
Construction | 7.96 | | | 7.40 | | | 6.54 | | | 4.95 | | | 3.70 | |
Commercial real estate | 7.22 | | | 6.80 | | | 6.01 | | | 4.75 | | | 3.56 | |
Lease financing | 5.45 | | | 5.25 | | | 5.02 | | | 4.95 | | | 4.98 | |
Total commercial | 6.10 | | | 5.82 | | | 5.25 | | | 4.50 | | | 3.83 | |
Consumer: | | | | | | | | | |
Residential mortgage | 3.51 | | | 3.41 | | | 3.33 | | | 3.23 | | | 3.09 | |
Automobile | 4.17 | | | 3.94 | | | 3.74 | | | 3.53 | | | 3.40 | |
Home equity | 7.42 | | | 7.14 | | | 6.57 | | | 5.43 | | | 4.44 | |
RV and marine | 4.59 | | | 4.42 | | | 4.45 | | | 4.29 | | | 4.12 | |
Other consumer | 11.59 | | | 11.18 | | | 10.38 | | | 9.55 | | | 9.08 | |
Total consumer | 4.74 | | | 4.57 | | | 4.37 | | | 4.02 | | | 3.70 | |
Total loans and leases | 5.51 | | | 5.27 | | | 4.86 | | | 4.28 | | | 3.77 | |
Total earning assets | 5.13 | | | 4.89 | | | 4.46 | | | 3.86 | | | 3.33 | |
Liabilities | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | |
Demand deposits - interest-bearing | 1.68 | | | 1.32 | | | 0.94 | | | 0.40 | | | 0.10 | |
Money market deposits | 2.64 | | | 1.87 | | | 0.86 | | | 0.29 | | | 0.09 | |
Savings and other domestic deposits | 0.11 | | | 0.07 | | | 0.03 | | | 0.02 | | | 0.02 | |
Core certificates of deposit (4) | 3.78 | | | 3.01 | | | 1.42 | | | 0.10 | | | 0.07 | |
| | | | | | | | | |
Other domestic deposits of $250,000 or more | 3.27 | | | 2.45 | | | 1.31 | | | 0.35 | | | 0.23 | |
Negotiable CDS, brokered and other deposits | 5.07 | | | 4.56 | | | 3.74 | | | 2.25 | | | 0.72 | |
| | | | | | | | | |
Total interest-bearing deposits | 2.06 | | | 1.52 | | | 0.88 | | | 0.35 | | | 0.10 | |
Short-term borrowings | 5.70 | | | 5.56 | | | 7.71 | | | 3.31 | | | 1.40 | |
Long-term debt | 5.79 | | | 5.52 | | | 4.66 | | | 3.40 | | | 2.16 | |
Total interest-bearing liabilities | 2.66 | | | 2.02 | | | 1.31 | | | 0.64 | | | 0.25 | |
| | | | | | | | | |
Net interest rate spread | 2.47 | | | 2.87 | | | 3.15 | | | 3.22 | | | 3.08 | |
Impact of noninterest-bearing funds on margin | 0.64 | | | 0.53 | | | 0.37 | | | 0.20 | | | 0.07 | |
Net interest margin | 3.11 | % | | 3.40 | % | | 3.52 | % | | 3.42 | % | | 3.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial Loan Derivative Impact | | | | | | | | | |
(Unaudited) | Average Rates |
| 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Fully-taxable equivalent basis (1) | Second | | First | | Fourth | | Third | | Second |
Commercial loans (2)(3) | 6.82 | % | | 6.42 | % | | 5.68 | % | | 4.62 | % | | 3.69 | % |
Impact of commercial loan derivatives | (0.72) | | | (0.60) | | | (0.43) | | | (0.12) | | | 0.14 | |
Total commercial - as reported | 6.10 | % | | 5.82 | % | | 5.25 | % | | 4.50 | % | | 3.83 | % |
Average 1 Month LIBOR | 5.09 | % | | 4.62 | % | | 3.89 | % | | 2.46 | % | | 1.01 | % |
Average SOFR | 4.97 | % | | 4.50 | % | | 3.61 | % | | 2.14 | % | | 0.70 | % |
(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 10 for the FTE adjustment. (2)Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)Includes nonaccrual loans and leases.
(4)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
(dollar amounts in millions, except per share data) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Interest income | $ | 2,225 | | | $ | 2,028 | | | $ | 1,854 | | | $ | 1,589 | | | $ | 1,331 | |
Interest expense | 879 | | | 619 | | | 392 | | | 185 | | | 70 | |
Net interest income | 1,346 | | | 1,409 | | | 1,462 | | | 1,404 | | | 1,261 | |
Provision for credit losses | 92 | | | 85 | | | 91 | | | 106 | | | 67 | |
Net interest income after provision for credit losses | 1,254 | | | 1,324 | | | 1,371 | | | 1,298 | | | 1,194 | |
Service charges on deposit accounts | 87 | | | 83 | | | 89 | | | 93 | | | 105 | |
Card and payment processing income | 102 | | | 93 | | | 96 | | | 96 | | | 96 | |
Capital markets fees | 57 | | | 59 | | | 83 | | | 73 | | | 54 | |
Trust and investment management services | 68 | | | 62 | | | 61 | | | 60 | | | 63 | |
Mortgage banking income | 33 | | | 26 | | | 25 | | | 26 | | | 44 | |
Leasing revenue | 25 | | | 26 | | | 35 | | | 29 | | | 27 | |
Insurance income | 30 | | | 34 | | | 31 | | | 28 | | | 27 | |
Gain on sale of loans | 8 | | | 3 | | | 2 | | | 15 | | | 12 | |
Bank owned life insurance income | 16 | | | 16 | | | 15 | | | 13 | | | 11 | |
Net (losses) gains on sales of securities | (5) | | | 1 | | | — | | | — | | | — | |
Other noninterest income | 74 | | | 109 | | | 62 | | | 65 | | | 46 | |
Total noninterest income | 495 | | | 512 | | | 499 | | | 498 | | | 485 | |
Personnel costs | 613 | | | 649 | | | 630 | | | 614 | | | 577 | |
Outside data processing and other services | 148 | | | 151 | | | 147 | | | 145 | | | 153 | |
Equipment | 64 | | | 64 | | | 67 | | | 60 | | | 61 | |
Net occupancy | 54 | | | 60 | | | 61 | | | 63 | | | 58 | |
Marketing | 32 | | | 25 | | | 22 | | | 24 | | | 24 | |
Professional services | 21 | | | 16 | | | 21 | | | 18 | | | 19 | |
Deposit and other insurance expense | 23 | | | 20 | | | 14 | | | 15 | | | 20 | |
Amortization of intangibles | 13 | | | 13 | | | 13 | | | 13 | | | 13 | |
Lease financing equipment depreciation | 8 | | | 8 | | | 9 | | | 11 | | | 11 | |
Other noninterest expense | 74 | | | 80 | | | 93 | | | 90 | | | 82 | |
Total noninterest expense | 1,050 | | | 1,086 | | | 1,077 | | | 1,053 | | | 1,018 | |
Income before income taxes | 699 | | | 750 | | | 793 | | | 743 | | | 661 | |
Provision for income taxes | 134 | | | 144 | | | 144 | | | 146 | | | 120 | |
Income after income taxes | 565 | | | 606 | | | 649 | | | 597 | | | 541 | |
Income attributable to non-controlling interest | 6 | | | 4 | | | 4 | | | 3 | | | 2 | |
Net income attributable to Huntington | 559 | | | 602 | | | 645 | | | 594 | | | 539 | |
Dividends on preferred shares | 40 | | | 29 | | | 28 | | | 29 | | | 28 | |
| | | | | | | | | |
Net income applicable to common shares | $ | 519 | | | $ | 573 | | | $ | 617 | | | $ | 565 | | | $ | 511 | |
| | | | | | | | | |
Average common shares - basic | 1,446 | | | 1,443 | | | 1,443 | | | 1,443 | | | 1,441 | |
Average common shares - diluted | 1,466 | | | 1,469 | | | 1,468 | | | 1,465 | | | 1,463 | |
| | | | | | | | | |
Per common share | | | | | | | | | |
Net income - basic | $ | 0.36 | | | $ | 0.40 | | | $ | 0.43 | | | $ | 0.39 | | | $ | 0.35 | |
Net income - diluted | 0.35 | | | 0.39 | | | 0.42 | | | 0.39 | | | 0.35 | |
Cash dividends declared | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | |
| | | | | | | | | |
Revenue - fully-taxable equivalent (FTE) | | | | | | | | | |
Net interest income | $ | 1,346 | | | $ | 1,409 | | | $ | 1,462 | | | $ | 1,404 | | | $ | 1,261 | |
FTE adjustment | 11 | | | 9 | | | 9 | | | 8 | | | 6 | |
Net interest income (1) | 1,357 | | | 1,418 | | | 1,471 | | | 1,412 | | | 1,267 | |
Noninterest income | 495 | | | 512 | | | 499 | | | 498 | | | 485 | |
Total revenue (1) | $ | 1,852 | | | $ | 1,930 | | | $ | 1,970 | | | $ | 1,910 | | | $ | 1,752 | |
On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
Huntington Bancshares Incorporated
Quarterly Mortgage Banking Noninterest Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | | Percent Changes vs. |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 | | | 1Q23 | | 2Q22 |
Net origination and secondary marketing income | $ | 23 | | | $ | 16 | | | $ | 16 | | | $ | 25 | | | $ | 27 | | | | 44 | % | | (15) | % |
Net mortgage servicing income | | | | | | | | | | | | | | |
Loan servicing income | 23 | | | 23 | | | 22 | | | 22 | | | 22 | | | | — | | | 5 | |
Amortization of capitalized servicing | (12) | | | (10) | | | (11) | | | (14) | | | (16) | | | | (20) | | | 25 | |
Operating income | 11 | | | 13 | | | 11 | | | 8 | | | 6 | | | | (15) | | | 83 | |
MSR valuation adjustment (1) | 15 | | | (12) | | | 2 | | | 17 | | | 44 | | | | 225 | | | (66) | |
(Losses) gains due to MSR hedging | (15) | | | 9 | | | (4) | | | (24) | | | (34) | | | | (267) | | | 56 | |
Net MSR risk management | — | | | (3) | | | (2) | | | (7) | | | 10 | | | | 100 | | | (100) | |
Total net mortgage servicing income | $ | 11 | | | $ | 10 | | | $ | 9 | | | $ | 1 | | | $ | 16 | | | | 10 | % | | (31) | % |
All other | (1) | | | — | | | — | | | — | | | 1 | | | | (100) | | | (200) | |
Mortgage banking income | $ | 33 | | | $ | 26 | | | $ | 25 | | | $ | 26 | | | $ | 44 | | | | 27 | % | | (25) | % |
| | | | | | | | | | | | | | |
Mortgage origination volume | $ | 2,504 | | | $ | 1,412 | | | $ | 1,719 | | | $ | 2,491 | | | $ | 3,366 | | | | 77 | % | | (26) | % |
Mortgage origination volume for sale | 1,239 | | | 809 | | | 889 | | | 1,339 | | | 1,263 | | | | 53 | | | (2) | |
| | | | | | | | | | | | | | |
Third party mortgage loans serviced (2) | 32,712 | | | 32,496 | | | 32,354 | | | 31,988 | | | 31,704 | | | | 1 | | | 3 | |
Mortgage servicing rights (2) | 505 | | | 485 | | | 494 | | | 486 | | | 463 | | | | 4 | | | 9 | |
MSR % of investor servicing portfolio (2) | 1.55 | % | | 1.49 | % | | 1.53 | % | | 1.52 | % | | 1.46 | % | | | 4 | % | | 6 | % |
(1)The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)At period end.
Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Allowance for loan and lease losses, beginning of period | $ | 2,142 | | | $ | 2,121 | | | $ | 2,110 | | | $ | 2,074 | | | $ | 2,018 | |
| | | | | | | | | |
Loan and lease charge-offs | (92) | | | (99) | | | (97) | | | (83) | | | (52) | |
Recoveries of loans and leases previously charged-off | 43 | | | 42 | | | 47 | | | 39 | | | 44 | |
Net loan and lease charge-offs | (49) | | | (57) | | | (50) | | | (44) | | | (8) | |
Provision for loan and lease losses | 84 | | | 78 | | | 61 | | | 80 | | | 64 | |
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Allowance for loan and lease losses, end of period | 2,177 | | | 2,142 | | | 2,121 | | | 2,110 | | | 2,074 | |
Allowance for unfunded lending commitments, beginning of period | 157 | | | 150 | | | 120 | | | 94 | | | 91 | |
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Provision for unfunded lending commitments | 8 | | | 7 | | | 30 | | | 26 | | | 3 | |
| | | | | | | | | |
| | | | | | | | | |
Allowance for unfunded lending commitments, end of period | 165 | | | 157 | | | 150 | | | 120 | | | 94 | |
Total allowance for credit losses, end of period | $ | 2,342 | | | $ | 2,299 | | | $ | 2,271 | | | $ | 2,230 | | | $ | 2,168 | |
Allowance for loan and lease losses (ALLL) as % of: | | | | | | | | | |
Total loans and leases | 1.80 | % | | 1.77 | % | | 1.77 | % | | 1.79 | % | | 1.78 | % |
Nonaccrual loans and leases (NALs) | 427 | | | 402 | | | 373 | | | 351 | | | 316 | |
Nonperforming assets (NPAs) | 391 | | | 371 | | | 357 | | | 336 | | | 304 | |
Total allowance for credit losses (ACL) as % of: | | | | | | | | | |
Total loans and leases | 1.93 | % | | 1.90 | % | | 1.90 | % | | 1.89 | % | | 1.87 | % |
Nonaccrual loans and leases (NALs) | 459 | | | 431 | | | 400 | | | 371 | | | 330 | |
Nonperforming assets (NPAs) | 420 | | | 398 | | | 382 | | | 355 | | | 318 | |
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| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Allocation of allowance for credit losses | | | | | | | | | |
Commercial | | | | | | | | | |
Commercial and industrial | $ | 994 | | | $ | 967 | | | $ | 939 | | | $ | 914 | | | $ | 838 | |
Commercial real estate | 442 | | | 440 | | | 433 | | | 450 | | | 464 | |
Lease financing | 47 | | | 50 | | | 52 | | | 50 | | | 40 | |
Total commercial | 1,483 | | | 1,457 | | | 1,424 | | | 1,414 | | | 1,342 | |
Consumer | | | | | | | | | |
Residential mortgage | 194 | | | 176 | | | 187 | | | 178 | | | 177 | |
Automobile | 144 | | | 151 | | | 141 | | | 118 | | | 146 | |
Home equity | 119 | | | 118 | | | 105 | | | 126 | | | 131 | |
RV and marine | 145 | | | 144 | | | 143 | | | 127 | | | 147 | |
Other consumer | 92 | | | 96 | | | 121 | | | 147 | | | 131 | |
Total consumer | 694 | | | 685 | | | 697 | | | 696 | | | 732 | |
Total allowance for loan and lease losses | 2,177 | | | 2,142 | | | 2,121 | | | 2,110 | | | 2,074 | |
Allowance for unfunded lending commitments | 165 | | | 157 | | | 150 | | | 120 | | | 94 | |
Total allowance for credit losses | $ | 2,342 | | | $ | 2,299 | | | $ | 2,271 | | | $ | 2,230 | | | $ | 2,168 | |
Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Net charge-offs (recoveries) by loan and lease type: | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | $ | 20 | | | $ | 16 | | | $ | 9 | | | $ | 16 | | | $ | (4) | |
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Commercial real estate | 7 | | | 18 | | | 7 | | | (3) | | | (4) | |
Lease financing | — | | | (5) | | | 5 | | | 2 | | | (3) | |
Total commercial | 27 | | | 29 | | | 21 | | | 15 | | | (11) | |
Consumer: | | | | | | | | | |
Residential mortgage | 1 | | | — | | | — | | | (1) | | | (1) | |
Automobile | 3 | | | 5 | | | 3 | | | 3 | | | — | |
Home equity | — | | | (1) | | | — | | | (2) | | | (2) | |
RV and marine | 2 | | | 2 | | | 2 | | | 2 | | | 1 | |
Other consumer | 16 | | | 22 | | | 24 | | | 27 | | | 21 | |
Total consumer | 22 | | | 28 | | | 29 | | | 29 | | | 19 | |
Total net charge-offs | $ | 49 | | | $ | 57 | | | $ | 50 | | | $ | 44 | | | $ | 8 | |
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| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Net charge-offs (recoveries) - annualized percentages: | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | 0.15 | % | | 0.13 | % | | 0.08 | % | | 0.14 | % | | (0.04) | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Commercial real estate | 0.23 | | | 0.51 | | | 0.20 | | | (0.07) | | | (0.13) | |
Lease financing | — | | | (0.37) | | | 0.40 | | | 0.17 | | | (0.24) | |
Total commercial | 0.16 | | | 0.17 | | | 0.13 | | | 0.10 | | | (0.07) | |
Consumer: | | | | | | | | | |
Residential mortgage | 0.01 | | | 0.01 | | | (0.01) | | | (0.02) | | | (0.02) | |
Automobile | 0.10 | | | 0.14 | | | 0.12 | | | 0.07 | | | — | |
Home equity | (0.02) | | | (0.02) | | | (0.04) | | | (0.07) | | | (0.08) | |
RV and marine | 0.13 | | | 0.18 | | | 0.15 | | | 0.17 | | | 0.10 | |
Other consumer | 5.17 | | | 6.37 | | | 7.08 | | | 8.09 | | | 6.60 | |
Total consumer | 0.17 | | | 0.21 | | | 0.22 | | | 0.22 | | | 0.15 | |
Net charge-offs as a % of average loans and leases | 0.16 | % | | 0.19 | % | | 0.17 | % | | 0.15 | % | | 0.03 | % |
Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (1)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Nonaccrual loans and leases (NALs): | | | | | | | | | |
Commercial and industrial | $ | 267 | | | $ | 273 | | | $ | 288 | | | $ | 288 | | | $ | 324 | |
Commercial real estate | 75 | | | 86 | | | 92 | | | 110 | | | 117 | |
Lease financing | 15 | | | 14 | | | 18 | | | 30 | | | 22 | |
Residential mortgage | 73 | | | 81 | | | 90 | | | 94 | | | 111 | |
Automobile | 4 | | | 4 | | | 4 | | | 4 | | | 4 | |
Home equity | 75 | | | 74 | | | 76 | | | 75 | | | 78 | |
RV and marine | 1 | | | 1 | | | 1 | | | 1 | | | 1 | |
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Total nonaccrual loans and leases | 510 | | | 533 | | | 569 | | | 602 | | | 657 | |
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Other real estate, net | 18 | | | 20 | | | 11 | | | 11 | | | 11 | |
Other NPAs (1) | 29 | | | 25 | | | 14 | | | 14 | | | 14 | |
Total nonperforming assets | $ | 557 | | | $ | 578 | | | $ | 594 | | | $ | 627 | | | $ | 682 | |
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Nonaccrual loans and leases as a % of total loans and leases | 0.42 | % | | 0.44 | % | | 0.48 | % | | 0.51 | % | | 0.57 | % |
NPA ratio (2) | 0.46 | | | 0.48 | | | 0.50 | | | 0.53 | | | 0.59 | |
(NPA+90days)/(Loan+OREO) (3) | 0.60 | | | 0.63 | | | 0.67 | | | 0.72 | | | 0.77 | |
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| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Nonperforming assets, beginning of period | $ | 578 | | | $ | 594 | | | $ | 627 | | | $ | 682 | | | $ | 708 | |
New nonperforming assets | 188 | | | 237 | | | 251 | | | 119 | | | 181 | |
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Returns to accruing status | (34) | | | (73) | | | (84) | | | (42) | | | (81) | |
Charge-offs | (42) | | | (54) | | | (54) | | | (39) | | | (26) | |
Payments | (118) | | | (124) | | | (144) | | | (89) | | | (97) | |
Sales | (15) | | | (2) | | | (2) | | | (4) | | | (3) | |
| | | | | | | | | |
Nonperforming assets, end of period | $ | 557 | | | $ | 578 | | | $ | 594 | | | $ | 627 | | | $ | 682 | |
(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(3)The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.
Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Accruing loans and leases past due 90+ days: | | | | | | | | | |
Commercial and industrial | $ | 7 | | | $ | 12 | | | $ | 23 | | | $ | 29 | | | $ | 11 | |
| | | | | | | | | |
Lease financing | 16 | | | 10 | | | 9 | | | 18 | | | 10 | |
Residential mortgage (excluding loans guaranteed by the U.S. Government) | 18 | | | 20 | | | 21 | | | 17 | | | 14 | |
Automobile | 6 | | | 7 | | | 9 | | | 6 | | | 6 | |
Home equity | 18 | | | 18 | | | 15 | | | 12 | | | 13 | |
RV and marine | 2 | | | 2 | | | 3 | | | 2 | | | 2 | |
Other consumer | 3 | | | 2 | | | 2 | | | 3 | | | 2 | |
Total, excl. loans guaranteed by the U.S. Government | 70 | | | 71 | | | 82 | | | 87 | | | 58 | |
Add: loans guaranteed by U.S. Government | 103 | | | 114 | | | 125 | | | 136 | | | 154 | |
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government | $ | 173 | | | $ | 185 | | | $ | 207 | | | $ | 223 | | | $ | 212 | |
| | | | | | | | | |
Ratios: | | | | | | | | | |
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.06 | % | | 0.06 | % | | 0.07 | % | | 0.07 | % | | 0.05 | % |
Guaranteed by U.S. Government, as a percent of total loans and leases | 0.08 | | | 0.09 | | | 0.10 | | | 0.12 | | | 0.13 | |
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.14 | | | 0.15 | | | 0.17 | | | 0.19 | | | 0.18 | |
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Huntington Bancshares Incorporated
Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Common equity tier 1 risk-based capital ratio: (1) | | | | | | | | | |
Total Huntington shareholders’ equity | $ | 18,788 | | | $ | 18,758 | | | $ | 17,731 | | | $ | 17,136 | | | $ | 17,950 | |
Regulatory capital adjustments: | | | | | | | | | |
CECL transitional amount (2) | 219 | | | 219 | | | 328 | | | 328 | | | 328 | |
Shareholders’ preferred equity and related surplus | (2,494) | | | (2,494) | | | (2,177) | | | (2,177) | | | (2,177) | |
Accumulated other comprehensive loss | 3,006 | | | 2,755 | | | 3,098 | | | 3,276 | | | 2,098 | |
Goodwill and other intangibles, net of taxes | (5,620) | | | (5,636) | | | (5,663) | | | (5,675) | | | (5,686) | |
Deferred tax assets from tax loss and credit carryforwards | (14) | | | (14) | | | (27) | | | (29) | | | (36) | |
Common equity tier 1 capital | 13,885 | | | 13,588 | | | 13,290 | | | 12,859 | | | 12,477 | |
Additional tier 1 capital | | | | | | | | | |
Shareholders’ preferred equity and related surplus | 2,494 | | | 2,494 | | | 2,177 | | | 2,177 | | | 2,177 | |
| | | | | | | | | |
| | | | | | | | | |
Tier 1 capital | 16,379 | | | 16,082 | | | 15,467 | | | 15,036 | | | 14,654 | |
Long-term debt and other tier 2 qualifying instruments | 1,394 | | | 1,395 | | | 1,424 | | | 1,441 | | | 1,462 | |
Qualifying allowance for loan and lease losses | 1,767 | | | 1,779 | | | 1,682 | | | 1,637 | | | 1,541 | |
Tier 2 capital | 3,161 | | | 3,174 | | | 3,106 | | | 3,078 | | | 3,003 | |
Total risk-based capital | $ | 19,540 | | | $ | 19,256 | | | $ | 18,573 | | | $ | 18,114 | | | $ | 17,657 | |
Risk-weighted assets (RWA)(1) | $ | 141,432 | | | $ | 142,335 | | | $ | 141,940 | | | $ | 138,759 | | | $ | 137,841 | |
Common equity tier 1 risk-based capital ratio (1) | 9.82 | % | | 9.55 | % | | 9.36 | % | | 9.27 | % | | 9.05 | % |
Other regulatory capital data: | | | | | | | | | |
Tier 1 leverage ratio (1) | 9.01 | | | 8.79 | | | 8.60 | | | 8.51 | | | 8.46 | |
Tier 1 risk-based capital ratio (1) | 11.58 | | | 11.30 | | | 10.90 | | | 10.84 | | | 10.63 | |
Total risk-based capital ratio (1) | 13.82 | | | 13.53 | | | 13.09 | | | 13.05 | | | 12.81 | |
Non-regulatory capital data: | | | | | | | | | |
Tangible common equity / RWA ratio (1) | 7.50 | | | 7.43 | | | 6.93 | | | 6.66 | | | 7.28 | |
(1)June 30, 2023, figures are estimated.
(2)Upon adoption in 2020, Huntington elected to temporarily delay certain effects of CECL on regulatory capital, utilizing a two-year delay followed by a three-year transition period. January 1, 2022 began the three-year transition period, whereby 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL will be recognized over the three-year transition period. As of March 31, 2023 and June 30, 2023, 50% of the cumulative CECL deferral has been phased in. As of June 30, 2022, September 30, 2022, and December 31, 2022, 25% of the cumulative CECL deferral has been phased in.
Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data
(Unaudited)
Quarterly common stock summary
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
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Cash dividends declared per common share | $ | 0.155 | | | $ | 0.155 | | | $ | 0.155 | | | $ | 0.155 | | | $ | 0.155 | |
Common shares outstanding (in millions) | | | | | | | | | |
Average - basic | 1,446 | | | 1,443 | | | 1,443 | | | 1,443 | | | 1,441 | |
Average - diluted | 1,466 | | | 1,469 | | | 1,468 | | | 1,465 | | | 1,463 | |
Ending | 1,448 | | | 1,444 | | | 1,443 | | | 1,443 | | | 1,442 | |
Tangible book value per common share (1) | $ | 7.33 | | | $ | 7.32 | | | $ | 6.82 | | | $ | 6.40 | | | $ | 6.96 | |
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Non-regulatory capital
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2023 | | 2023 | | 2022 | | 2022 | | 2022 |
Calculation of tangible equity / asset ratio: | | | | | | | | | |
Total Huntington shareholders’ equity | $ | 18,788 | | | $ | 18,758 | | | $ | 17,731 | | | $ | 17,136 | | | $ | 17,950 | |
Goodwill and other intangible assets | (5,728) | | | (5,741) | | | (5,766) | | | (5,775) | | | (5,788) | |
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Deferred tax liability on other intangible assets (1) | 35 | | | 38 | | | 41 | | | 43 | | | 46 | |
Total tangible equity | 13,095 | | | 13,055 | | | 12,006 | | | 11,404 | | | 12,208 | |
Preferred equity | (2,484) | | | (2,484) | | | (2,167) | | | (2,167) | | | (2,167) | |
Total tangible common equity | $ | 10,611 | | | $ | 10,571 | | | $ | 9,839 | | | $ | 9,237 | | | $ | 10,041 | |
Total assets | $ | 188,505 | | | $ | 189,070 | | | $ | 182,906 | | | $ | 179,402 | | | $ | 178,782 | |
Goodwill and other intangible assets | (5,728) | | | (5,741) | | | (5,766) | | | (5,775) | | | (5,788) | |
Deferred tax liability on other intangible assets (1) | 35 | | | 38 | | | 41 | | | 43 | | | 46 | |
Total tangible assets | $ | 182,812 | | | $ | 183,367 | | | $ | 177,181 | | | $ | 173,670 | | | $ | 173,040 | |
Tangible equity / tangible asset ratio | 7.16 | % | | 7.12 | % | | 6.78 | % | | 6.57 | % | | 7.06 | % |
Tangible common equity / tangible asset ratio | 5.80 | | | 5.77 | | | 5.55 | | | 5.32 | | | 5.80 | |
Other data: | | | | | | | | | |
Number of employees (Average full-time equivalent) | 20,200 | | | 20,198 | | | 20,007 | | | 19,997 | | | 19,866 | |
Number of domestic full-service branches (2) | 1,001 | | | 1,001 | | | 1,032 | | | 1,032 | | | 1,032 | |
ATM Count | 1,641 | | | 1,668 | | | 1,695 | | | 1,715 | | | 1,731 | |
(1)Deferred tax liability related to other intangible assets is calculated at a 21% tax rate.
(2)Includes Regional Banking and The Huntington Private Client Group offices.
Huntington Bancshares Incorporated
Consolidated Year To Date Average Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| YTD Average Balances (1) |
| Six Months Ended June 30, | | Change |
(dollar amounts in millions) | 2023 | | 2022 | | Amount | | Percent |
Assets | | | | | | | |
Interest-bearing deposits at Federal Reserve Bank | $ | 8,590 | | | $ | 5,354 | | | $ | 3,236 | | | 60 | % |
Interest-bearing deposits in banks | 239 | | | 168 | | | 71 | | | 42 | |
Securities: | | | | | | | |
Trading account securities | 27 | | | 38 | | | (11) | | | (29) | |
Available-for-sale securities: | | | | | | | |
Taxable | 21,143 | | | 22,931 | | | (1,788) | | | (8) | |
Tax-exempt | 2,693 | | | 2,873 | | | (180) | | | (6) | |
Total available-for-sale securities | 23,836 | | | 25,804 | | | (1,968) | | | (8) | |
| | | | | | | |
| | | | | | | |
Held-to-maturity securities - taxable | 16,869 | | | 15,902 | | | 967 | | | 6 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other securities | 1,075 | | | 860 | | | 215 | | | 25 | |
Total securities | 41,807 | | | 42,604 | | | (797) | | | (2) | |
Loans held for sale | 505 | | | 1,137 | | | (632) | | | (56) | |
Loans and leases: (2) | | | | | | | |
Commercial: | | | | | | | |
Commercial and industrial | 49,615 | | | 43,937 | | | 5,678 | | | 13 | |
Commercial real estate: | | | | | | | |
Commercial | 12,171 | | | 11,462 | | | 709 | | | 6 | |
Construction | 1,340 | | | 1,818 | | | (478) | | | (26) | |
Commercial real estate | 13,511 | | | 13,280 | | | 231 | | | 2 | |
Lease financing | 5,181 | | | 4,915 | | | 266 | | | 5 | |
Total commercial | 68,307 | | | 62,132 | | | 6,175 | | | 10 | |
Consumer: | | | | | | | |
Residential mortgage | 22,547 | | | 20,019 | | | 2,528 | | | 13 | |
Automobile | 13,085 | | | 13,510 | | | (425) | | | (3) | |
Home equity | 10,206 | | | 10,394 | | | (188) | | | (2) | |
RV and marine | 5,422 | | | 5,210 | | | 212 | | | 4 | |
Other consumer | 1,318 | | | 1,288 | | | 30 | | | 2 | |
Total consumer | 52,578 | | | 50,421 | | | 2,157 | | | 4 | |
Total loans and leases | 120,885 | | | 112,553 | | | 8,332 | | | 7 | |
Total earning assets | 172,026 | | | 161,816 | | | 10,210 | | | 6 | |
Cash and due from banks | 1,619 | | | 1,659 | | | (40) | | | (2) | |
Goodwill and other intangible assets | 5,747 | | | 5,598 | | | 149 | | | 3 | |
All other assets | 10,602 | | | 10,061 | | | 541 | | | 5 | |
Allowance for loan and lease losses | (2,158) | | | (2,050) | | | (108) | | | (5) | |
Total assets | $ | 187,836 | | | $ | 177,084 | | | $ | 10,752 | | | 6 | % |
Liabilities and shareholders' equity | | | | | | | |
Interest-bearing deposits: | | | | | | | |
Demand deposits - interest-bearing | $ | 40,211 | | | $ | 41,176 | | | $ | (965) | | | (2) | % |
Money market deposits | 38,031 | | | 33,235 | | | 4,796 | | | 14 | |
Savings and other domestic deposits | 19,348 | | | 21,501 | | | (2,153) | | | (10) | |
Core certificates of deposit (3) | 7,292 | | | 2,393 | | | 4,899 | | | NM |
| | | | | | | |
Other domestic deposits of $250,000 or more | 286 | | | 270 | | | 16 | | | 6 | |
Negotiable CDS, brokered and other deposits | 4,659 | | | 3,216 | | | 1,443 | | | 45 | |
| | | | | | | |
Total interest-bearing deposits | 109,827 | | | 101,791 | | | 8,036 | | | 8 | |
Short-term borrowings | 4,809 | | | 3,408 | | | 1,401 | | | 41 | |
Long-term debt | 13,664 | | | 6,969 | | | 6,695 | | | 96 | |
Total interest-bearing liabilities | 128,300 | | | 112,168 | | | 16,132 | | | 14 | |
Demand deposits - noninterest-bearing | 36,023 | | | 42,177 | | | (6,154) | | | (15) | |
All other liabilities | 4,925 | | | 4,068 | | | 857 | | | 21 | |
Total Liabilities | 169,248 | | | 158,413 | | | 10,835 | | | 7 | |
Total Huntington shareholders’ equity | 18,539 | | | 18,644 | | | (105) | | | (1) | |
Non-controlling interest | 49 | | | 27 | | | 22 | | | 81 | |
Total equity | $ | 18,588 | | | $ | 18,671 | | | $ | (83) | | | — | |
Total liabilities and equity | $ | 187,836 | | | $ | 177,084 | | | $ | 21,587 | | | 6 | |
NM - Not Meaningful
(1)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)Includes nonaccrual loans and leases.
(3)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Consolidated Year To Date Net Interest Margin - Interest Income / Expense (1)(2)
(Unaudited)
| | | | | | | | | | | |
| YTD Interest Income / Expense |
| Six Months Ended June 30, |
(dollar amounts in millions) | 2023 | | 2022 |
Assets | | | |
Interest-bearing deposits at Federal Reserve Bank | $ | 212 | | | $ | 10 | |
Interest-bearing deposits in banks | 10 | | | 1 | |
Securities: | | | |
Trading account securities | 1 | | | 1 | |
Available-for-sale securities: | | | |
Taxable | 484 | | | 213 | |
Tax-exempt | 62 | | | 41 | |
Total available-for-sale securities | 546 | | | 254 | |
Held-to-maturity securities - taxable | 204 | | | 156 | |
| | | |
| | | |
| | | |
Other securities | 21 | | | 11 | |
Total securities | 772 | | | 422 | |
Loans held for sale | 15 | | | 20 | |
Loans and leases: | | | |
Commercial: | | | |
Commercial and industrial | 1,432 | | | 828 | |
Commercial real estate: | | | |
Commercial | 424 | | | 191 | |
Construction | 52 | | | 33 | |
Commercial real estate | 476 | | | 224 | |
Lease financing | 139 | | | 122 | |
Total commercial | 2,047 | | | 1,174 | |
Consumer: | | | |
Residential mortgage | 390 | | | 304 | |
Automobile | 263 | | | 227 | |
Home equity | 368 | | | 217 | |
RV and marine | 121 | | | 107 | |
Other consumer | 75 | | | 58 | |
Total consumer | 1,217 | | | 913 | |
Total loans and leases | 3,264 | | | 2,087 | |
Total earning assets | $ | 4,273 | | | $ | 2,540 | |
Liabilities | | | |
Interest-bearing deposits: | | | |
Demand deposits - interest-bearing | $ | 299 | | | $ | 14 | |
Money market deposits | 427 | | | 12 | |
Savings and other domestic deposits | 9 | | | 2 | |
Core certificates of deposit (3) | 126 | | | 1 | |
| | | |
Other domestic deposits of $250,000 or more | 4 | | | — | |
Negotiable CDS, brokered and other deposits | 111 | | | 7 | |
| | | |
Total interest-bearing deposits | 976 | | | 36 | |
Short-term borrowings | 134 | | | 14 | |
Long-term debt | 388 | | | 69 | |
Total interest-bearing liabilities | 1,498 | | | 119 | |
| | | |
Net interest income | $ | 2,775 | | | $ | 2,421 | |
(1)Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.
(2)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Consolidated Year To Date Net Interest Margin - Yield
(Unaudited)
| | | | | | | | | | | |
| YTD Average Rates |
| Six Months Ended June 30, |
Fully-taxable equivalent basis (1) | 2023 | | 2022 |
Assets | | | |
Interest-bearing deposits at Federal Reserve Bank | 4.95 | % | | 0.38 | % |
Interest-bearing deposits in banks | 8.16 | | | 0.71 | |
Securities: | | | |
Trading account securities | 5.09 | | | 3.63 | |
Available-for-sale securities: | | | |
Taxable | 4.58 | | | 1.85 | |
Tax-exempt | 4.64 | | | 2.86 | |
Total available-for-sale securities | 4.59 | | | 1.96 | |
Held-to-maturity securities - taxable | 2.42 | | | 1.97 | |
| | | |
| | | |
| | | |
Other securities | 3.83 | | | 2.64 | |
Total securities | 3.69 | | | 1.98 | |
Loans held for sale | 5.96 | | | 3.58 | |
Loans and leases: (3) | | | |
Commercial: | | | |
Commercial and industrial | 5.74 | | | 3.75 | |
Commercial real estate: | | | |
Commercial | 6.93 | | | 3.31 | |
Construction | 7.67 | | | 3.61 | |
Commercial real estate | 7.01 | | | 3.35 | |
Lease financing | 5.35 | | | 4.95 | |
Total commercial | 5.96 | | | 3.76 | |
Consumer: | | | |
Residential mortgage | 3.46 | | | 3.04 | |
Automobile | 4.05 | | | 3.39 | |
Home equity | 7.28 | | | 4.21 | |
RV and marine | 4.51 | | | 4.14 | |
Other consumer | 11.39 | | | 9.02 | |
Total consumer | 4.66 | | | 3.64 | |
Total loans and leases | 5.39 | | | 3.71 | |
Total earning assets | 5.01 | % | | 3.17 | % |
Liabilities | | | |
Interest-bearing deposits: | | | |
Demand deposits - interest-bearing | 1.50 | % | | 0.07 | % |
Money market deposits | 2.27 | | | 0.07 | |
Savings and other domestic deposits | 0.09 | | | 0.02 | |
Core certificates of deposit (4) | 3.48 | | | 0.10 | |
| | | |
Other domestic deposits of $250,000 or more | 2.91 | | | 0.19 | |
Negotiable CDS, brokered and other deposits | 4.81 | | | 0.42 | |
| | | |
Total interest-bearing deposits | 1.79 | | | 0.07 | |
Short-term borrowings | 5.64 | | | 0.83 | |
Long-term debt | 5.67 | | | 1.99 | |
Total interest-bearing liabilities | 2.35 | | | 0.21 | |
| | | |
Net interest rate spread | 2.66 | | | 2.96 | |
Impact of noninterest-bearing funds on margin | 0.59 | | | 0.06 | |
Net interest margin | 3.25 | % | | 3.02 | % |
| | | | | | | | | | | |
Commercial Loan Derivative Impact | | | |
(Unaudited) | | | |
| YTD Average Rates |
| Six Months Ended June 30, |
Fully-taxable equivalent basis (1) | 2023 | | 2022 |
Commercial loans (2)(3) | 6.62 | % | | 3.58 | % |
Impact of commercial loan derivatives | (0.66) | | | 0.18 | |
Total commercial - as reported | 5.96 | % | | 3.76 | % |
Average 1 Month LIBOR | 4.85 | % | | 0.61 | % |
Average SOFR | 4.73 | % | | 0.40 | % |
(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.
(2)Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)Includes the impact of nonaccrual loans and leases.
(4)Includes consumer certificates of deposit of $250,000 or more.
Huntington Bancshares Incorporated
Selected Year To Date Income Statement Data
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, | | Change |
(dollar amounts in millions, except per share data) | 2023 | | 2022 | | Amount | | Percent |
Interest income | $ | 4,253 | | | $ | 2,526 | | | $ | 1,727 | | | 68 | % |
Interest expense | 1,498 | | | 119 | | | 1,379 | | | NM |
Net interest income | 2,755 | | | 2,407 | | | 348 | | | 14 | |
Provision for credit losses | 177 | | | 92 | | | 85 | | | 92 | |
Net interest income after provision for credit losses | 2,578 | | | 2,315 | | | 263 | | | 11 | |
Service charges on deposit accounts | 170 | | | 202 | | | (32) | | | (16) | |
Card and payment processing income | 195 | | | 182 | | | 13 | | | 7 | |
Capital markets fees | 116 | | | 96 | | | 20 | | | 21 | |
Trust and investment management services | 130 | | | 128 | | | 2 | | | 2 | |
Mortgage banking income | 59 | | | 93 | | | (34) | | | (37) | |
Leasing revenue | 51 | | | 62 | | | (11) | | | (18) | |
Insurance income | 64 | | | 58 | | | 6 | | | 10 | |
Gain on sale of loans | 11 | | | 40 | | | (29) | | | (73) | |
Bank owned life insurance income | 32 | | | 28 | | | 4 | | | 14 | |
Net (losses) gains on sales of securities | (4) | | | — | | | (4) | | | (100) | |
Other noninterest income | 183 | | | 95 | | | 88 | | | 93 | |
Total noninterest income | 1,007 | | | 984 | | | 23 | | | 2 | |
Personnel costs | 1,262 | | | 1,157 | | | 105 | | | 9 | |
Outside data processing and other services | 299 | | | 318 | | | (19) | | | (6) | |
Equipment | 128 | | | 142 | | | (14) | | | (10) | |
Net occupancy | 114 | | | 122 | | | (8) | | | (7) | |
Marketing | 57 | | | 45 | | | 12 | | | 27 | |
Professional services | 37 | | | 38 | | | (1) | | | (3) | |
Deposit and other insurance expense | 43 | | | 38 | | | 5 | | | 13 | |
Amortization of intangibles | 26 | | | 27 | | | (1) | | | (4) | |
Lease financing equipment depreciation | 16 | | | 25 | | | (9) | | | (36) | |
Other noninterest expense | 154 | | | 159 | | | (5) | | | (3) | |
Total noninterest expense | 2,136 | | | 2,071 | | | 65 | | | 3 | |
Income before income taxes | 1,449 | | | 1,228 | | | 221 | | | 18 | |
Provision for income taxes | 278 | | | 225 | | | 53 | | | 24 | |
Income after income taxes | 1,171 | | | 1,003 | | | 168 | | | 17 | |
Income attributable to non-controlling interest | 10 | | | 4 | | | 6 | | | 150 | |
Net income attributable to Huntington | 1,161 | | | 999 | | | 162 | | | 16 | |
Dividends on preferred shares | 69 | | | 56 | | | 13 | | | 23 | |
| | | | | | | |
Net income applicable to common shares | $ | 1,092 | | | $ | 943 | | | $ | 149 | | | 16 | % |
Average common shares - basic | 1,445 | | | 1,440 | | | 5 | | | — | |
Average common shares - diluted | 1,468 | | | 1,464 | | | 4 | | | — | |
Per common share | | | | | | | |
Net income - basic | $ | 0.76 | | | $ | 0.65 | | | $ | 0.11 | | | 17 | % |
Net income - diluted | 0.74 | | | 0.64 | | | 0.10 | | | 16 | |
Cash dividends declared | 0.31 | | | 0.31 | | | — | | | — | |
Revenue - fully taxable equivalent (FTE) | | | | | | | |
Net interest income | $ | 2,755 | | | $ | 2,407 | | | $ | 348 | | | 14 | % |
FTE adjustment | 20 | | | 14 | | | 6 | | | 43 | |
Net interest income (1) | 2,775 | | | 2,421 | | | 354 | | | 15 | |
Noninterest income | 1,007 | | | 984 | | | 23 | | | 2 | |
Total revenue (1) | $ | 3,782 | | | $ | 3,405 | | | $ | 377 | | | 11 | % |
NM - Not Meaningful
(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
Huntington Bancshares Incorporated
Year To Date Mortgage Banking Noninterest Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, | | Change |
(dollar amounts in millions) | 2023 | | 2022 | | Amount | | Percent |
Net origination and secondary marketing income | $ | 39 | | | $ | 64 | | | $ | (25) | | | (39) | % |
Net mortgage servicing income | | | | | | | |
Loan servicing income | 46 | | | 44 | | | 2 | | | 5 | |
Amortization of capitalized servicing | (22) | | | (31) | | | 9 | | | 29 | |
Operating income | 24 | | | 13 | | | 11 | | | 85 | |
MSR valuation adjustment (1) | 3 | | | 95 | | | (92) | | | (97) | |
(Losses) gains due to MSR hedging | (6) | | | (81) | | | 75 | | | 93 | |
Net MSR risk management | (3) | | | 14 | | | (17) | | | — | |
Total net mortgage servicing income | $ | 21 | | | $ | 27 | | | $ | (6) | | | (22) | % |
All other | (1) | | | 2 | | | (3) | | | (150) | |
Mortgage banking income | $ | 59 | | | $ | 93 | | | $ | (34) | | | (37) | % |
| | | | | | | |
Mortgage origination volume | $ | 3,916 | | | $ | 6,247 | | | $ | (2,331) | | | (37) | % |
Mortgage origination volume for sale | 2,048 | | | 2,782 | | | (734) | | | (26) | |
| | | | | | | |
Third party mortgage loans serviced (2) | 32,712 | | | 31,704 | | | 1,008 | | | 3 | |
Mortgage servicing rights (2) | 505 | | | 463 | | | 42 | | | 9 | |
MSR % of investor servicing portfolio (2) | 1.55 | % | | 1.46 | % | | 0.09 | % | | 6 | % |
NM - Not Meaningful
(1)The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)At period end.
Huntington Bancshares Incorporated
Year To Date Credit Reserves Analysis
(Unaudited)
| | | | | | | | | | | |
| Six Months Ended June 30, |
(dollar amounts in millions) | 2023 | | 2022 |
Allowance for loan and lease losses, beginning of period | $ | 2,121 | | | $ | 2,030 | |
| | | |
Loan and lease charge-offs | (191) | | | (133) | |
Recoveries of loans and leases previously charged off | 85 | | | 106 | |
Net loan and lease charge-offs | (106) | | | (27) | |
Provision for loan and lease losses | 162 | | | 71 | |
| | | |
| | | |
Allowance for loan and lease losses, end of period | 2,177 | | | 2,074 | |
Allowance for unfunded lending commitments, beginning of period | $ | 150 | | | $ | 77 | |
| | | |
Provision for unfunded lending commitments | 15 | | | 17 | |
| | | |
| | | |
Allowance for unfunded lending commitments, end of period | 165 | | | 94 | |
Total allowance for credit losses, end of period | $ | 2,342 | | | $ | 2,168 | |
Allowance for loan and lease losses (ALLL) as % of: | | | |
Total loans and leases | 1.80 | % | | 1.78 | % |
Nonaccrual loans and leases (NALs) | 427 | | | 316 | |
Nonperforming assets (NPAs) | 391 | | | 304 | |
Total allowance for credit losses (ACL) as % of: | | | |
Total loans and leases | 1.93 | % | | 1.87 | % |
Nonaccrual loans and leases (NALs) | 459 | | | 330 | |
Nonperforming assets (NPAs) | 420 | | | 318 | |
Huntington Bancshares Incorporated
Year To Date Net Charge-Off Analysis
(Unaudited)
| | | | | | | | | | | |
| Six Months Ended June 30, |
(dollar amounts in millions) | 2023 | | 2022 |
Net charge-offs (recoveries) by loan and lease type: | | | |
Commercial: | | | |
Commercial and industrial | $ | 36 | | | $ | (27) | |
| | | |
| | | |
| | | |
Commercial real estate | 25 | | | 4 | |
Lease financing | (5) | | | 2 | |
Total commercial | 56 | | | (21) | |
Consumer: | | | |
Residential mortgage | 1 | | | (1) | |
Automobile | 8 | | | — | |
Home equity | (1) | | | (3) | |
RV and marine | 4 | | | 4 | |
Other consumer | 38 | | | 48 | |
Total consumer | 50 | | | 48 | |
Total net charge-offs | $ | 106 | | | $ | 27 | |
| | | |
| | | |
| Six Months Ended June 30, |
| 2023 | | 2022 |
Net charge-offs (recoveries) - annualized percentages: | | | |
Commercial: | | | |
Commercial and industrial | 0.14 | % | | (0.12) | % |
| | | |
| | | |
| | | |
Commercial real estate | 0.37 | | | 0.06 | |
Lease financing | (0.19) | | | 0.08 | |
Total commercial | 0.16 | | | (0.07) | |
Consumer: | | | |
Residential mortgage | 0.01 | | | (0.01) | |
Automobile | 0.12 | | | — | |
Home equity | (0.02) | | | (0.05) | |
RV and marine | 0.16 | | | 0.15 | |
Other consumer | 5.76 | | | 7.53 | |
Total consumer | 0.19 | | | 0.19 | |
Net charge-offs as a % of average loans | 0.17 | % | | 0.05 | % |
Huntington Bancshares Incorporated
Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
| | | | | | | | | | | |
| June 30, |
(dollar amounts in millions) | 2023 | | 2022 |
Nonaccrual loans and leases (NALs): | | | |
Commercial and industrial | $ | 267 | | | $ | 324 | |
Commercial real estate | 75 | | | 117 | |
Lease financing | 15 | | | 22 | |
Residential mortgage | 73 | | | 111 | |
Automobile | 4 | | | 4 | |
Home equity | 75 | | | 78 | |
RV and marine | 1 | | | 1 | |
| | | |
Total nonaccrual loans and leases | 510 | | | 657 | |
| | | |
| | | |
| | | |
Other real estate, net | 18 | | | 11 | |
Other NPAs (1) | 29 | | | 14 | |
Total nonperforming assets (3) | $ | 557 | | | $ | 682 | |
| | | |
Nonaccrual loans and leases as a % of total loans and leases | 0.42 | % | | 0.57 | % |
NPA ratio (2) | 0.46 | | | 0.59 | |
| | | | | | | | | | | |
| Six Months Ended June 30, |
(dollar amounts in millions) | 2023 | | 2022 |
Nonperforming assets, beginning of period | $ | 594 | | | $ | 750 | |
New nonperforming assets | 425 | | | 385 | |
| | | |
| | | |
Returns to accruing status | (107) | | | (138) | |
Charge-offs | (96) | | | (58) | |
Payments | (242) | | | (252) | |
Sales and held-for-sale transfers | (17) | | | (5) | |
Nonperforming assets, end of period (2) | $ | 557 | | | $ | 682 | |
(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
(3)Nonaccruing troubled debt restructured loans are included in the total nonperforming assets balance.
Huntington Bancshares Incorporated
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Huntington believes certain non-GAAP financial measures to be helpful in understanding Huntington’s results of operations. The following tables provide the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | | | | | |
| | June 30, | | March 31, | | June 30, | | Percent Changes vs. | | | | |
($ in millions) | | 2023 | | 2023 | | 2022 | | 1Q23 | | 2Q22 | | | | |
Pre-Provision Net Revenue (PPNR) | | | | | | | | | | | | | | | |
Total revenue (GAAP) | | $ | 1,841 | | | $ | 1,921 | | | $ | 1,746 | | | | | | | | | | |
FTE adjustment | | 11 | | | 9 | | | 6 | | | | | | | | | | |
Total revenue (FTE) (a) | | 1,852 | | | 1,930 | | | 1,752 | | | | | | | | | | |
Less: net (loss)/gain on securities | | (5) | | | 1 | | | — | | | | | | | | | | |
Less: Notable items | | — | | | 57 | | | — | | | | | | | | | | |
Total revenue (FTE), excluding net gain/(loss) on securities and notable items (b) | | 1,857 | | | 1,872 | | | 1,752 | | | | | | | | | | |
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Noninterest expense (GAAP) (c) | | 1,050 | | | 1,086 | | | 1,018 | | | | | | | | | | |
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Less: Notable items | | — | | | 42 | | | 24 | | | | | | | | | | |
Noninterest expense, excluding notable items (d) | | 1,050 | | | 1,044 | | | 994 | | | | | | | | | | |
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PPNR (a-c) | | 802 | | | 844 | | | 734 | | | (5) | % | | 9 | % | | | | | |
PPNR, adjusted (b-d) | | 807 | | | 828 | | | 758 | | | (3) | % | | 6 | % | | | | | |
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v3.23.2
Cover Page
|
Jul. 21, 2023 |
Entity Information [Line Items] |
|
Document Type |
8-K
|
Document Period End Date |
Jul. 21, 2023
|
Entity Registrant Name |
Huntington Bancshares Incorporated
|
Entity Incorporation, State or Country Code |
MD
|
Entity File Number |
1-34073
|
Entity Tax Identification Number |
31-0724920
|
Entity Address, Address Line One |
41 South High Street
|
Entity Address, City or Town |
Columbus
|
Entity Address, State or Province |
OH
|
Entity Address, Postal Zip Code |
43287
|
City Area Code |
614
|
Local Phone Number |
480-2265
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Entity Central Index Key |
0000049196
|
Amendment Flag |
false
|
Common Stock-Par Value $0.01 per share |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Common Stock—Par Value $0.01 per Share
|
Trading Symbol |
HBAN
|
Security Exchange Name |
NASDAQ
|
Series H Preferred Stock |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares (each representing a 1/40th interest in a share of 4.500% Series H Non-Cumulative, perpetual preferred stock)
|
Trading Symbol |
HBANP
|
Security Exchange Name |
NASDAQ
|
Series I Preferred Stock |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares (each representing a 1/1000th interest in a share of 5.70% Series I Non-Cumulative, perpetual preferred stock)
|
Trading Symbol |
HBANM
|
Security Exchange Name |
NASDAQ
|
Series J Preferred Stock |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares (each representing a 1/40th interest in a share of 6.875% Series J Non-Cumulative, perpetual preferred stock)
|
Trading Symbol |
HBANL
|
Security Exchange Name |
NASDAQ
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Huntington Bancshares (NASDAQ:HBANP)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Huntington Bancshares (NASDAQ:HBANP)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024