0000049196false00000491962024-07-192024-07-190000049196us-gaap:SeriesHPreferredStockMember2024-07-192024-07-190000049196hban:SeriesIPreferredStockMember2024-07-192024-07-190000049196hban:SeriesJPreferredStockMember2024-07-192024-07-190000049196us-gaap:CommonStockMember2024-07-192024-07-19
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 19, 2024
______________________________________________________________________________________________________________________________
Huntington Bancshares Incorporated
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________________________________________________
| | | | | | | | |
Maryland | 1-34073 | 31-0724920 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Registrant's address: 41 South High Street, Columbus, Ohio 43287
Registrant’s telephone number, including area code: (614) 480-2265
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| | | | | |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
_______________________________________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of class | Trading Symbol(s) | Name of exchange on which registered |
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 |
| | | | | | | | | | | | | | | | | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§24012b-2). |
| | | | | |
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Item 2.02. Results of Operations and Financial Condition.
On July 19, 2024, Huntington Bancshares Incorporated (“Huntington”) posted a news release announcing its earnings for the quarter ended June 30, 2024. Also on July 19, 2024, 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 19, 2024, at 8:00 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 #13747594. 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 26, 2024 at (877) 660-6853 or (201) 612-7415; conference ID #13747594.
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 and other catastrophic events or disasters on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from bank failures and other volatility, including potential increased regulatory requirements and costs, such as FDIC special assessments, long-term debt requirements and heightened capital requirements, 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; changing 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; 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, 2023 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, 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 19, 2024.
Exhibit 99.2 – Quarterly Financial Supplement, June 30, 2024.
EXHIBIT INDEX
| | | | | |
Exhibit No. | Description |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Exhibit 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | | | | | | | | | | |
| | | HUNTINGTON BANCSHARES INCORPORATED |
| | | |
Date: | July 19, 2024 | | By: | | /s/ Zachary Wasserman |
| | | |
| | | | | Zachary Wasserman |
| | | | | Chief Financial Officer |
Exhibit 99.1
July 19, 2024
Analysts: Tim Sedabres (timothy.sedabres@huntington.com), 952.745.2766
Media: Tracy Pesho (corpmedia@huntington.com), 216.276.3301
HUNTINGTON BANCSHARES INCORPORATED REPORTS 2024 SECOND-QUARTER EARNINGS
Q2 Results Highlighted by Expansion of Net Interest Income and Fee Revenues, Accelerating Loan and Deposit Growth, and Strong Credit Quality
2024 Second-Quarter Highlights:
•Earnings per common share (EPS) for the quarter were $0.30, higher by $0.04 from the prior quarter, and lower by $0.05 from the year-ago quarter.
•Net interest income increased $25 million, or 2%, from the prior quarter, and decreased $34 million, or 3%, from the year-ago quarter.
•Noninterest income increased $24 million, or 5%, from the prior quarter, to $491 million.
•Cash and cash equivalents and available contingent borrowing capacity totaled $95 billion at June 30, 2024, and represented 204% of estimated uninsured deposits.
•Average total deposits increased $2.9 billion, or 2%, from the prior quarter and $8.0 billion, or 6%, from the year-ago quarter.
◦Ending total deposits increased $1.1 billion, or 1%, from the prior quarter and $6.3 billion, or 4%, from the year-ago quarter.
•Average total loans and leases increased $1.4 billion, or 1%, from the prior quarter to $123.4 billion, and increased $2.0 billion, or 2%, from the year-ago quarter.
◦Average consumer loans increased $757 million and average commercial loans and leases increased $689 million from the prior quarter.
◦Ending total loans increased $1.7 billion, or 1% from the prior quarter and $3.2 billion, or 3%, from the year-ago quarter.
•Net charge-offs of 0.29% of average total loans and leases for the quarter.
•Nonperforming asset ratio of 0.63% at quarter end.
•Allowance for credit losses (ACL) of $2.4 billion, or 1.95% of total loans and leases, at quarter end.
•Common Equity Tier 1 (CET1) risk-based capital ratio was 10.4%, at June 30, 2024, up from 10.2% in the prior quarter. Adjusted Common Equity Tier 1, including the effect of AOCI, was 8.6%, up from 8.5% in the prior quarter.
•Tangible common equity (TCE) ratio of 6.0%, stable from the prior quarter and up from 5.8% a year ago.
•Tangible book value per share of $7.89, up $0.12 or 2% from the prior quarter and $0.56 or 8% from a year ago.
•Huntington completed a $478 million Credit Linked Note ("CLN") transaction during the second quarter related to an approximately $4 billion reference pool of on-balance sheet prime indirect auto loans as part of the company's capital optimization strategy. The transaction reduced risk-weighted assets by approximately $3.0 billion, representing a 76% reduction in the risk-weighting on the selected pool of assets.
•Huntington was recognized by Freddie Mac as a 2024 Home Possible RISE (Recognizing Individuals for Sustained Excellence) Award Winner for excellence with Freddie Mac's affordable lending solutions.
COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2024 second quarter of $474 million, or $0.30 per common share, an increase of $55 million, or $0.04, from the prior quarter, and a decrease of $85 million, or $0.05, from the year-ago quarter.
Return on average assets was 0.98%, return on average common equity was 10.4%, and return on average tangible common equity (ROTCE) was 16.1%.
CEO Commentary:
“Our second quarter results were highlighted by an expansion in revenue from the prior quarter, including in both net interest income and noninterest income,” said Steve Steinour, chairman, president, and CEO. “We delivered accelerated loan growth in the quarter and continued our trend of increasing deposit balances.
"Huntington is operating from a position of strength given the disciplined management actions the company has sustained over many years. Our liquidity and capital profile is robust and supports our continued focus on executing organic growth initiatives. This proactive approach allows us to support our clients and expand our banking relationships. Over the past three quarters we have invested considerably into numerous new revenue producing opportunities, and these investments are delivering organic growth trends."
"Credit quality continued to perform very well in the quarter and we were pleased with the recent CCAR stress test results which were highlighted by our top quartile performance for stressed credit losses. For nearly a decade Huntington has maintained CCAR credit loss estimates in the top quartile compared to peers with low relative loss estimates. This demonstrates the benefit of our consistent management of our aggregate moderate-to-low risk appetite."
"We are focused on delivering on our long-term strategic goals. Our solid capital levels and robust liquidity profile enable us to continue to deliver accelerated loan growth. This outlook is supported by both our existing and new teams across the company and is expected to drive higher revenues over the second half of the year, with continued momentum into 2025 and beyond."
Table 1 – Earnings Performance Summary
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 |
(in millions, except per share data) | Second | | First | | Fourth | | Third | | Second |
Quarter | | Quarter | | Quarter | | Quarter | | Quarter |
Net income attributable to Huntington | $ | 474 | | | $ | 419 | | | $ | 243 | | | $ | 547 | | | $ | 559 | |
Diluted earnings per common share | 0.30 | | | 0.26 | | | 0.15 | | | 0.35 | | | 0.35 | |
| | | | | | | | | |
Return on average assets | 0.98 | % | | 0.89 | % | | 0.51 | % | | 1.16 | % | | 1.18 | % |
Return on average common equity | 10.4 | | | 9.2 | | | 5.2 | | | 12.4 | | | 12.7 | |
Return on average tangible common equity | 16.1 | | | 14.2 | | | 8.4 | | | 19.5 | | | 19.9 | |
Net interest margin | 2.99 | | | 3.01 | | | 3.07 | | | 3.20 | | | 3.11 | |
Efficiency ratio | 60.8 | | | 63.7 | | | 77.0 | | | 57.0 | | | 55.9 | |
| | | | | | | | | |
Tangible book value per common share | $ | 7.89 | | | $ | 7.77 | | | $ | 7.79 | | | $ | 7.12 | | | $ | 7.33 | |
Cash dividends declared per common share | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | |
| | | | | | | | | |
Average earning assets | $ | 178,062 | | | $ | 173,764 | | | $ | 171,360 | | | $ | 170,948 | | | $ | 174,909 | |
Average loans and leases | 123,376 | | | 121,930 | | | 121,229 | | | 120,784 | | | 121,345 | |
Average core deposits | 147,393 | | | 144,960 | | | 144,384 | | | 143,110 | | | 140,736 | |
| | | | | | | | | |
Tangible common equity / tangible assets ratio | 6.0 | % | | 6.0 | % | | 6.1 | % | | 5.7 | % | | 5.8 | % |
Common equity Tier 1 risk-based capital ratio (1) | 10.4 | | | 10.2 | | | 10.2 | | | 10.1 | | | 9.8 | |
| | | | | | | | | |
NCOs as a % of average loans and leases | 0.29 | % | | 0.30 | % | | 0.31 | % | | 0.24 | % | | 0.16 | % |
NAL ratio | 0.59 | | | 0.58 | | | 0.55 | | | 0.49 | | | 0.42 | |
ACL as a % of total loans and leases | 1.95 | | | 1.97 | | | 1.97 | | | 1.96 | | | 1.93 | |
(1)June 30, 2024 figure is estimated.
Table 2 lists certain items that we believe are important to understanding corporate performance and trends (see Basis of Presentation).
Table 2 – Notable Items Influencing Earnings
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pretax Impact (1) | | After-tax Impact (1) |
($ in millions, except per share) | Amount | | | Net Income | | EPS (2) | | |
Three Months Ended June 30, 2024 | | | | $ | 474 | | | $ | 0.30 | | | |
• | | FDIC Deposit Insurance Fund (DIF) special assessment (3) | $ | (6) | | | | $ | (5) | | | — | | | |
| | | | | | | | | | |
Three Months Ended March 31, 2024 | | | | $ | 419 | | | 0.26 | | | |
• | | FDIC DIF special assessment (3) | $ | (32) | | | | $ | (25) | | | $ | (0.02) | | | |
• | | Staffing efficiencies expense (4) | (7) | | | | (5) | | | — | | | |
| | | | | | | | | | |
Three Months Ended December 31, 2023 | | | | $ | 243 | | | $ | 0.15 | | | |
• | | FDIC DIF special assessment (3) | $ | (214) | | | | $ | (169) | | | $ | (0.11) | | | |
• | | Staffing efficiencies and corporate real estate consolidation expense (4) | (12) | | | | (9) | | | (0.01) | | | |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
(1)Favorable (unfavorable) impact.
(2)EPS reflected on a fully diluted basis.
(3)The fourth quarter of 2023 included the initial estimate of the FDIC DIF special assessment, related to 2023 FDIC closures. The first and second quarters of 2024 included expense related to updated estimates on the uninsured deposit losses and recoverable assets. The expense is recorded in deposit and other insurance expense.
(4)Staffing efficiencies includes severance expense recorded in personnel costs.
Net Interest Income, Net Interest Margin, and Average Balance Sheet
Table 3 – Net Interest Income and Net Interest Margin Performance Summary
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | | | | |
($ in millions) | Second | | First | | Fourth | | Third | | Second | | Change (%) | |
Quarter | | Quarter | | Quarter | | Quarter | | Quarter | LQ | | YOY | |
Net interest income | $ | 1,312 | | | $ | 1,287 | | | $ | 1,316 | | | $ | 1,368 | | | $ | 1,346 | | | 2 | % | | (3) | % | |
FTE adjustment | 13 | | | 13 | | | 11 | | | 11 | | | 11 | | | — | | | 18 | | |
Net interest income - FTE | 1,325 | | | 1,300 | | | 1,327 | | | 1,379 | | | 1,357 | | | 2 | | | (2) | | |
Noninterest income | 491 | | | 467 | | | 405 | | | 509 | | | 495 | | | 5 | | | (1) | | |
Total revenue - FTE | $ | 1,816 | | | $ | 1,767 | | | $ | 1,732 | | | $ | 1,888 | | | $ | 1,852 | | | 3 | % | | (2) | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | | | |
| Second | | First | | Fourth | | Third | | Second | | Change (bp) |
Yield / Cost | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Total earning assets | 5.62 | % | | 5.54 | % | | 5.47 | % | | 5.39 | % | | 5.13 | % | | 8 | | | 49 | |
Total loans and leases | 6.01 | | | 5.92 | | | 5.82 | | | 5.76 | | | 5.51 | | | 9 | | | 50 | |
Total securities | 4.29 | | | 4.19 | | | 4.23 | | | 4.15 | | | 3.82 | | | 10 | | | 47 | |
Total interest-bearing liabilities | 3.34 | | | 3.23 | | | 3.09 | | | 2.88 | | | 2.66 | | | 11 | | | 68 | |
Total interest-bearing deposits | 2.94 | | | 2.85 | | | 2.71 | | | 2.45 | | | 2.06 | | | 9 | | | 88 | |
| | | | | | | | | | | | | |
Net interest rate spread | 2.28 | | | 2.31 | | | 2.38 | | | 2.51 | | | 2.47 | | | (3) | | | (19) | |
Impact of noninterest-bearing funds on margin | 0.71 | | | 0.70 | | | 0.69 | | | 0.69 | | | 0.64 | | | 1 | | | 7 | |
Net interest margin | 2.99 | % | | 3.01 | % | | 3.07 | % | | 3.20 | % | | 3.11 | % | | (2) | | | (12) | |
See Page 9 of Quarterly Financial Supplement for additional detail.Fully-taxable equivalent (FTE) net interest income for the 2024 second quarter decreased $32 million, or 2%, from the 2023 second quarter. The results primarily reflect a 12 basis point decrease in the net interest margin (NIM) to 2.99% and a $7.8 billion, or 6%, increase in average interest-bearing liabilities, partially offset by a $3.2 billion, or 2%, increase in average earning assets. The lower NIM was primarily driven by higher cost of funds given the higher interest rate environment as well as $13.0 billion in average interest-bearing deposit growth, partially offset by higher loan and lease and investment security yields.
Compared to the 2024 first quarter, FTE net interest income increased $25 million, or 2%, driven by an increase average earnings assets of $4.3 billion, or 2%, partially offset by an increase in average interest-bearing liabilities of $4.4 billion, or 3%. The NIM decreased 2 basis points during the quarter driven by higher average interest bearing deposits held at the Federal Reserve Bank.
Table 4 – Average Earning Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | | | |
($ in billions) | Second | | First | | Fourth | | Third | | Second | | Change (%) |
Quarter | | Quarter | | Quarter | | Quarter | | Quarter | LQ | | YOY |
Commercial and industrial | $ | 51.7 | | | $ | 50.6 | | | $ | 49.9 | | | $ | 49.4 | | | $ | 50.2 | | | 2 | % | | 3 | % |
Commercial real estate | 12.2 | | | 12.6 | | | 12.6 | | | 13.0 | | | 13.3 | | | (3) | | | (9) | |
Lease financing | 5.1 | | | 5.1 | | | 5.1 | | | 5.1 | | | 5.2 | | | — | | | (2) | |
Total commercial | 69.0 | | | 68.3 | | | 67.6 | | | 67.5 | | | 68.7 | | | 1 | | | — | |
| | | | | | | | | | | | | |
Residential mortgage | 23.9 | | | 23.7 | | | 23.6 | | | 23.3 | | | 22.8 | | | 1 | | | 5 | |
Automobile | 13.0 | | | 12.6 | | | 12.6 | | | 12.7 | | | 12.9 | | | 3 | | | — | |
Home equity | 10.1 | | | 10.1 | | | 10.1 | | | 10.1 | | | 10.2 | | | — | | | (1) | |
RV and marine | 6.0 | | | 5.9 | | | 5.9 | | | 5.8 | | | 5.5 | | | 1 | | | 9 | |
Other consumer | 1.5 | | | 1.4 | | | 1.4 | | | 1.4 | | | 1.3 | | | 4 | | | 13 | |
Total consumer | 54.4 | | | 53.7 | | | 53.7 | | | 53.3 | | | 52.7 | | | 1 | | | 3 | |
Total loans and leases | 123.4 | | | 121.9 | | | 121.2 | | | 120.8 | | | 121.3 | | | 1 | | | 2 | |
Total securities | 43.0 | | | 41.6 | | | 39.5 | | | 40.0 | | | 41.7 | | | 3 | | | 3 | |
Interest-earning deposits with banks | 11.1 | | | 9.8 | | | 10.0 | | | 9.5 | | | 11.3 | | | 14 | | | (1) | |
Other earning assets | 0.6 | | | 0.5 | | | 0.6 | | | 0.6 | | | 0.6 | | | 25 | | | 2 | |
Total earning assets | $ | 178.1 | | | $ | 173.8 | | | $ | 171.4 | | | $ | 170.9 | | | $ | 174.9 | | | 2 | % | | 2 | % |
See Page 7 of Quarterly Financial Supplement for additional detail.
Average earning assets for the 2024 second quarter increased $3.2 billion, or 2%, from the year-ago quarter, primarily reflecting a $2.0 billion, or 2%, increase in average total loans and leases and a $1.3 billion, or 3%, increase in total securities. Average loan and lease balance increases were led by growth in average consumer loans of $1.8 billion, or 3%, primarily driven by a $1.1 billion, or 5%, increase in average residential mortgage loans. Additionally, average commercial loans and leases increased by $267 million, primarily driven by a $1.5 billion, or 3%, increase in average commercial and industrial loans, partially offset by a $1.2 billion, or 9%, decrease in average commercial real estate loans.
Compared to the 2024 first quarter, average earning assets increased $4.3 billion, or 2%, primarily reflecting a $1.4 billion, or 1%, increase in average total loans and leases, a $1.4 billion, or 3%, increase in average securities, and a $1.4 billion, or 14%, increase in average interest-earning deposits with banks. Average loan and lease balance increases were driven by an increase in consumer loan balances of $757 million or 1%, primarily a result of an increase in auto loans. Commercial loans also increased $689 million or 1%, primarily due to an increase in commercial and industrial balances as a result of new initiatives, auto floorplan, and regional and business banking balances, partially offset by a decrease in commercial real estate balances.
Table 5 – Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) |
($ in billions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Average balances: | | | | | | | | | | | | | |
Demand deposits - noninterest-bearing | $ | 29.6 | | | $ | 29.9 | | | $ | 31.2 | | | $ | 32.8 | | | $ | 34.6 | | | (1) | % | | (14) | % |
Demand deposits - interest-bearing | 39.1 | | | 38.5 | | | 39.1 | | | 39.8 | | | 39.7 | | | 2 | | | (2) | |
Total demand deposits | 68.7 | | | 68.4 | | | 70.3 | | | 72.6 | | | 74.3 | | | — | | | (8) | |
Money market deposits | 48.3 | | | 46.1 | | | 44.0 | | | 41.4 | | | 38.8 | | | 5 | | | 25 | |
Savings and other domestic deposits | 16.4 | | | 16.6 | | | 16.9 | | | 17.8 | | | 18.8 | | | (1) | | | (13) | |
Core certificates of deposit | 14.0 | | | 13.9 | | | 13.1 | | | 11.3 | | | 8.8 | | | 1 | | | 59 | |
Total core deposits | 147.4 | | | 145.0 | | | 144.4 | | | 143.1 | | | 140.7 | | | 2 | | | 5 | |
Other domestic deposits of $250,000 or more | 0.4 | | | 0.4 | | | 0.4 | | | 0.4 | | | 0.3 | | | (3) | | | 40 | |
Negotiable CDs, brokered and other deposits | 5.7 | | | 5.3 | | | 4.8 | | | 4.6 | | | 4.6 | | | 8 | | | 27 | |
| | | | | | | | | | | | | |
Total deposits | $ | 153.5 | | | $ | 150.7 | | | $ | 149.6 | | | $ | 148.1 | | | $ | 145.6 | | | 2 | % | | 6 | % |
| | | | | | | | | | | | | |
Short-term borrowings | $ | 1.2 | | | $ | 1.3 | | | $ | 1.9 | | | $ | 0.9 | | | $ | 5.2 | | | (7) | % | | (77) | % |
Long-term debt | 15.1 | | | 13.8 | | | 12.2 | | | 13.8 | | | 16.3 | | | 10 | | | (7) | |
Total debt | $ | 16.3 | | | $ | 15.1 | | | $ | 14.1 | | | $ | 14.7 | | | $ | 21.5 | | | 9 | % | | (24) | % |
| | | | | | | | | | | | | |
Total interest-bearing liabilities | $ | 140.3 | | | $ | 135.9 | | | $ | 132.6 | | | $ | 130.0 | | | $ | 132.5 | | | 3 | % | | 6 | % |
Total liabilities | 175.3 | | | 171.0 | | | 169.2 | | | 167.8 | | | 171.8 | | | 2 | | | 2 | |
| | | | | | | | | | | | | |
Period end balances: | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total core deposits | $ | 147.5 | | | $ | 147.3 | | | $ | 145.5 | | | $ | 144.2 | | | $ | 142.9 | | | — | % | | 3 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other deposits | 6.9 | | | 5.9 | | | 5.7 | | | 4.7 | | | 5.1 | | | 15 | | | 33 | |
Total deposits | $ | 154.4 | | | $ | 153.2 | | | $ | 151.2 | | | $ | 148.9 | | | $ | 148.0 | | | 1 | % | | 4 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
See Pages 6-7 of Quarterly Financial Supplement for additional detail.
Average total liabilities for the 2024 second quarter increased $3.4 billion, or 2%, from the year-ago quarter. Average total deposits increased $8.0 billion, or 6%, primarily driven by an increase in average total core deposits of $6.7 billion, or 5%. Average total debt decreased $5.1 billion, or 24%, as part of normal management of funding needs.
Compared to the 2024 first quarter, average total liabilities increased $4.2 billion, or 2%. Average total deposits increased $2.9 billion, or 2%, including average total core deposits increasing $2.4 billion, or 2%. Average total debt increased $1.3 billion, or 9%, primarily driven by the 2024 first quarter auto loan securitization transaction and higher FHLB advances outstanding.
Noninterest Income
Table 6 – Noninterest Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Payments and cash management revenue | $ | 154 | | | $ | 146 | | | $ | 150 | | | $ | 152 | | | $ | 146 | | | 5 | % | | 5 | % |
Wealth and asset management revenue | 90 | | | 88 | | | 86 | | | 79 | | | 83 | | | 2 | | | 8 | |
Customer deposit and loan fees | 83 | | | 77 | | | 80 | | | 80 | | | 76 | | | 8 | | | 9 | |
Capital markets and advisory fees | 73 | | | 56 | | | 69 | | | 52 | | | 62 | | | 30 | | | 18 | |
Leasing revenue | 19 | | | 22 | | | 29 | | | 32 | | | 25 | | | (14) | | | (24) | |
Mortgage banking income | 30 | | | 31 | | | 23 | | | 27 | | | 33 | | | (3) | | | (9) | |
Insurance income | 18 | | | 19 | | | 19 | | | 18 | | | 18 | | | (5) | | | — | |
Bank owned life insurance income | 17 | | | 16 | | | 16 | | | 18 | | | 16 | | | 6 | | | 6 | |
Gain on sale of loans | 2 | | | 5 | | | 1 | | | 2 | | | 8 | | | (60) | | | (75) | |
Net gains (losses) on sales of securities | — | | | — | | | (3) | | | — | | | (5) | | | — | | | NM |
Other noninterest income | 5 | | | 7 | | | (65) | | | 49 | | | 33 | | | (29) | | | (85) | |
Total noninterest income | $ | 491 | | | $ | 467 | | | $ | 405 | | | $ | 509 | | | $ | 495 | | | 5 | % | | (1) | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Additional information: | | | | | | | | | | | | | |
Impact of mark-to-market on pay-fixed swaptions (other noninterest income) | $ | — | | | $ | — | | | $ | (74) | | | $ | 33 | | | $ | 18 | | | — | | NM |
| | | | | | | | | | | | | |
NM - Not Meaningful
Total noninterest income for the 2024 second quarter decreased $4 million, or 1%, from the year-ago quarter. Capital markets and advisory fees increased $11 million, or 18%, due to higher merger and acquisition advisory service fees. Payments and cash management revenue increased by $8 million, or 5%, reflecting higher debit card transaction revenue and higher commercial treasury management revenue. Customer deposit and loan fees increased $7 million, or 9%, primarily due to higher deposit fees. Wealth and asset management revenue increased by $7 million, or 8%, reflecting higher fixed annuity commissions as well as higher assets under management. Offsetting these increases, other noninterest income decreased $28 million and gain on sale of loans decreased $6 million. Other noninterest income in the 2023 second quarter included an $18 million mark-to-market benefit on pay-fixed swaptions, while the 2024 second quarter included $9 million of contra-revenue related to premium costs and mark-to-market associated with credit risk transfer transactions, inclusive of the CLN transaction during the second quarter.
Total noninterest income increased $24 million, or 5%, to $491 million for the 2024 second quarter, compared to $467 million for the 2024 first quarter. Capital markets and advisory fees increased $17 million, or 30%, due to higher merger and acquisition advisory service fees. Payments and cash management revenue increased by $8 million, or 5%, reflecting higher debit card transaction revenue and higher commercial treasury management revenue. Customer deposit and loan fees increased $6 million, or 8%, due to higher deposit service charges and loan fees. Partially offsetting these increases, other noninterest income included a $7 million increase in contra-revenue related to premium costs and mark-to-market in the 2024 second quarter compared to the 2024 first quarter associated with credit risk transfer transactions, inclusive of the CLN transaction during the second quarter.
Noninterest Expense
Table 7 – Noninterest Expense
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY |
Personnel costs | $ | 663 | | | $ | 639 | | | $ | 645 | | | $ | 622 | | | $ | 613 | | | 4 | % | | 8 | % |
Outside data processing and other services | 165 | | | 166 | | | 157 | | | 149 | | | 148 | | | (1) | | | 11 | |
Deposit and other insurance expense | 25 | | | 54 | | | 234 | | | 25 | | | 23 | | | (54) | | | 9 | |
Equipment | 62 | | | 70 | | | 70 | | | 65 | | | 64 | | | (11) | | | (3) | |
Net occupancy | 51 | | | 57 | | | 65 | | | 67 | | | 54 | | | (11) | | | (6) | |
Marketing | 27 | | | 28 | | | 29 | | | 29 | | | 32 | | | (4) | | | (16) | |
Professional services | 26 | | | 25 | | | 35 | | | 27 | | | 21 | | | 4 | | | 24 | |
Amortization of intangibles | 12 | | | 12 | | | 12 | | | 12 | | | 13 | | | — | | | (8) | |
Lease financing equipment depreciation | 4 | | | 4 | | | 5 | | | 6 | | | 8 | | | — | | | (50) | |
Other noninterest expense | 82 | | | 82 | | | 96 | | | 88 | | | 74 | | | — | | | 11 | |
Total noninterest expense | $ | 1,117 | | | $ | 1,137 | | | $ | 1,348 | | | $ | 1,090 | | | $ | 1,050 | | | (2) | % | | 6 | % |
(in thousands) | | | | | | | | | | | | | |
Average full-time equivalent employees | 19.9 | | | 19.7 | | | 19.6 | | | 19.8 | | | 20.2 | | | 1 | % | | (1) | % |
Table 8 - Impact of Notable Items
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | |
| Second | | First | | Fourth | | Third | | Second | |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | |
Personnel costs | $ | — | | | $ | 7 | | | $ | 2 | | | $ | 8 | | | $ | — | | |
| | | | | | | | | | |
Deposit and other insurance expense | 6 | | | 32 | | | 214 | | | — | | | — | | |
Equipment | — | | | — | | | 1 | | | — | | | — | | |
Net occupancy | — | | | — | | | 8 | | | 7 | | | — | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Other noninterest expense | — | | | — | | | 1 | | | — | | | — | | |
Total noninterest expense | $ | 6 | | | $ | 39 | | | $ | 226 | | | $ | 15 | | | $ | — | | |
Table 9 - Adjusted Noninterest Expense (Non-GAAP)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | | |
| Second | | First | | Fourth | | Third | | Second | | Change (%) | |
($ in millions) | Quarter | | Quarter | | Quarter | | Quarter | | Quarter | | LQ | | YOY | |
Personnel costs | $ | 663 | | | $ | 632 | | | $ | 643 | | | $ | 614 | | | $ | 613 | | | 5 | % | | 8 | % | |
Outside data processing and other services | 165 | | | 166 | | | 157 | | | 149 | | | 148 | | | (1) | | | 11 | | |
Deposit and other insurance expense | 19 | | | 22 | | | 20 | | | 25 | | | 23 | | | (14) | | | (17) | | |
Equipment | 62 | | | 70 | | | 69 | | | 65 | | | 64 | | | (11) | | | (3) | | |
Net occupancy | 51 | | | 57 | | | 57 | | | 60 | | | 54 | | | (11) | | | (6) | | |
Marketing | 27 | | | 28 | | | 29 | | | 29 | | | 32 | | | (4) | | | (16) | | |
Professional services | 26 | | | 25 | | | 35 | | | 27 | | | 21 | | | 4 | | | 24 | | |
Amortization of intangibles | 12 | | | 12 | | | 12 | | | 12 | | | 13 | | | — | | | (8) | | |
Lease financing equipment depreciation | 4 | | | 4 | | | 5 | | | 6 | | | 8 | | | — | | | (50) | | |
Other noninterest expense | 82 | | | 82 | | | 95 | | | 88 | | | 74 | | | — | | | 11 | | |
Total adjusted noninterest expense | $ | 1,111 | | | $ | 1,098 | | | $ | 1,122 | | | $ | 1,075 | | | $ | 1,050 | | | 1 | % | | 6 | % | |
Reported total noninterest expense for the 2024 second quarter increased $67 million, or 6%, from the year-ago quarter. Excluding the impact from Notable Items, noninterest expense increased $61 million, or 6%, primarily driven by higher personnel costs of $50 million, or 8%, primarily due to higher salary, incentive compensation, and benefit expense, and an increase in outside data processing and other services of $17 million, or 11%, reflecting higher technology and data expense.
Reported total noninterest expense decreased $20 million, or 2%, from the 2024 first quarter. Excluding the impact from Notable Items, noninterest expense increased $13 million, or 1%, primarily driven by higher personnel costs of $31 million, or 5%, due primarily to higher revenue-driven compensation and higher salary expense, inclusive of merit. Partially offsetting this increase, equipment expense was lower by $8 million, or 11%, and net occupancy expense was $6 million, or 11%, lower.
Huntington recognized expenses attributable to the FDIC deposit insurance fund special assessment of $6 million in the 2024 second quarter, $32 million in the 2024 first quarter, and $214 million in the 2023 fourth quarter related to 2023 FDIC closures. These expenses are included within Notable Items for each respective quarter.
Credit Quality
Table 10 – Credit Quality Metrics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 |
($ in millions) | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
Total nonaccrual loans and leases | $ | 733 | | | $ | 716 | | | $ | 667 | | | $ | 592 | | | $ | 510 | |
Total other real estate, net | 10 | | | 10 | | | 10 | | | 14 | | | 18 | |
Other NPAs (1) | 37 | | | 12 | | | 34 | | | 28 | | | 29 | |
Total nonperforming assets | 780 | | | 738 | | | 711 | | | 634 | | | 557 | |
Accruing loans and leases past due 90+ days | 175 | | | 183 | | | 189 | | | 163 | | | 169 | |
NPAs + accruing loans & leases past due 90+ days | $ | 955 | | | $ | 921 | | | $ | 900 | | | $ | 797 | | | $ | 726 | |
NAL ratio (2) | 0.59 | % | | 0.58 | % | | 0.55 | % | | 0.49 | % | | 0.42 | % |
NPA ratio (3) | 0.63 | | | 0.60 | | | 0.58 | | | 0.52 | | | 0.46 | |
(NPAs+90 days)/(Loans+OREO) | 0.77 | | | 0.75 | | | 0.74 | | | 0.66 | | | 0.60 | |
| | | | | | | | | |
| | | | | | | | | |
Provision for credit losses | $ | 100 | | | $ | 107 | | | $ | 126 | | | $ | 99 | | | $ | 92 | |
Net charge-offs | 90 | | | 92 | | | 94 | | | 73 | | | 49 | |
Net charge-offs / Average total loans and leases | 0.29 | % | | 0.30 | % | | 0.31 | % | | 0.24 | % | | 0.16 | % |
Allowance for loans and lease losses (ALLL) | $ | 2,304 | | | $ | 2,280 | | | $ | 2,255 | | | $ | 2,208 | | | $ | 2,177 | |
Allowance for unfunded lending commitments | 119 | | | 135 | | | 145 | | | 160 | | | 165 | |
Allowance for credit losses (ACL) | $ | 2,423 | | | $ | 2,415 | | | $ | 2,400 | | | $ | 2,368 | | | $ | 2,342 | |
ALLL as a % of: | | | | | | | | | |
Total loans and leases | 1.85 | % | | 1.86 | % | | 1.85 | % | | 1.83 | % | | 1.80 | % |
NALs | 314 | | | 318 | | | 338 | | | 373 | | | 427 | |
NPAs | 296 | | | 309 | | | 317 | | | 348 | | | 391 | |
ACL as a % of: | | | | | | | | | |
Total loans and leases | 1.95 | % | | 1.97 | % | | 1.97 | % | | 1.96 | % | | 1.93 | % |
NALs | 331 | | | 337 | | | 360 | | | 400 | | | 459 | |
NPAs | 311 | | | 327 | | | 337 | | | 373 | | | 420 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
(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 $780 million, or 0.63%, of total loans and leases, OREO and other NPAs, compared to $557 million, or 0.46%, a year-ago. Nonaccrual loans and leases (NALs) were $733 million, or 0.59% of total loans and leases, compared to $510 million, or 0.42% of total loans and leases, a year-ago. The increase in NPAs was driven by increases in commercial real estate and commercial and industrial NALs. On a linked quarter basis, NPAs increased $42 million, or 6%, and NALs increased $17 million, or 2%. The increase in NPAs was primarily driven by increase in commercial real estate NALs.
The provision for credit losses increased $8 million year-over-year and decreased $7 million quarter-over-quarter to $100 million in the 2024 second quarter. Net charge-offs (NCOs) increased $41 million year-over-year and decreased $2 million quarter-over-quarter to $90 million. NCOs represented an annualized 0.29% of average loans and leases in the current quarter, up from 0.16% in the year-ago quarter and down from 0.30% 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 were 0.33% and 0.24%, respectively, for the 2024 second quarter.
The allowance for loan and lease losses (ALLL) increased $127 million from the year-ago quarter to $2.3 billion, or 1.85% of total loans and leases. The allowance for credit losses (ACL) increased by $81 million from the year-ago quarter to $2.4 billion, or 1.95% of total loans and leases. The ACL increase is driven by loan and lease growth and a modest overall coverage ratio build that is reflective of the current macroeconomic environment. On a linked quarter basis, the ACL increased $8 million, driven by loan growth. The ACL coverage ratio was 1.95%, 2 basis points lower than the prior quarter, reflective of the current macroeconomic environment.
Capital
Table 11 – Capital Ratios
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2024 | | 2023 |
($ in billions) | | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
Tangible common equity / tangible assets ratio | | 6.0 | % | | 6.0 | % | | 6.1 | % | | 5.7 | % | | 5.8 | % |
Common equity tier 1 risk-based capital ratio (1) | | 10.4 | | | 10.2 | | | 10.2 | | | 10.1 | | | 9.8 | |
Regulatory Tier 1 risk-based capital ratio (1) | | 12.1 | | | 12.0 | | | 12.0 | | | 11.9 | | | 11.6 | |
Regulatory Total risk-based capital ratio (1) | | 14.3 | | | 14.1 | | | 14.2 | | | 14.1 | | | 13.8 | |
Total risk-weighted assets (1) | | $ | 139.4 | | | $ | 139.6 | | | $ | 138.7 | | | $ | 140.7 | | | $ | 141.4 | |
(1)June 30, 2024 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 June 30, 2024 and March 31, 2024, 75% of the cumulative CECL deferral has been phased in. As of December 31, 2023, September 30, 2023, and June 30, 2023, 50% 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 6.0% at both June 30, 2024 and March 31, 2024, as an increase in tangible common equity from current period earnings, net of dividends, was offset by an increase in tangible assets. Common Equity Tier 1 (CET1) risk-based capital ratio increased to 10.4%, compared to the prior quarter of 10.2%, due primarily to current period earnings, net of dividends. In addition, risk-weighted assets were modestly lower during the quarter, driven by the CLN transaction, partially offset by loan growth.
Income Taxes
The provision for income taxes was $106 million in the 2024 second quarter compared to $86 million in the 2024 first quarter. The effective tax rates for the 2024 second quarter and 2024 first quarter were 18.2% and 16.8%, respectively. The variance to the linked quarter effective tax rate relates primarily to higher pre-tax income and the impact of discrete tax benefits recognized in the prior quarter.
At June 30, 2024, we had a net federal deferred tax asset of $693 million and a net state deferred tax asset of $114 million.
Conference Call / Webcast Information
Huntington’s senior management will host an earnings conference call on July 19, 2024, at 8:00 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 #13747594. 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 26, 2024 at (877) 660-6853 or (201) 612-7415; conference ID #13747594.
Please see the 2024 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 $196 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 approximately 970 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 and other catastrophic events or disasters on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from bank failures and other volatility, including potential increased regulatory requirements and costs, such as FDIC special assessments, long-term debt requirements and heightened capital requirements, 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; changing 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; 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, 2023 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, 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 items 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, 2024
Table of Contents
| | | | | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Quarterly Accruing Past Due Loans and Leases | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
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.
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. |
2024 | | 2024 | | 2023 | | | 1Q24 | | 2Q23 |
Net interest income (1) | $ | 1,325 | | | $ | 1,300 | | | $ | 1,357 | | | | 2 | % | | (2) | % |
FTE adjustment | (13) | | | (13) | | | (11) | | | | — | | | (18) | |
Net interest income | 1,312 | | | 1,287 | | | 1,346 | | | | 2 | | | (3) | |
Provision for credit losses | 100 | | | 107 | | | 92 | | | | (7) | | | 9 | |
Noninterest income | 491 | | | 467 | | | 495 | | | | 5 | | | (1) | |
Noninterest expense | 1,117 | | | 1,137 | | | 1,050 | | | | (2) | | | 6 | |
Income before income taxes | 586 | | | 510 | | | 699 | | | | 15 | | | (16) | |
Provision for income taxes | 106 | | | 86 | | | 134 | | | | 23 | | (21) |
Income after income taxes | 480 | | | 424 | | | 565 | | | | 13 | | | (15) | |
Income attributable to non-controlling interest | 6 | | | 5 | | | 6 | | | | 20 | | | — | |
Net income attributable to Huntington | 474 | | | 419 | | | 559 | | | | 13 | | | (15) | |
Dividends on preferred shares | 35 | | | 36 | | | 40 | | | | (3) | | | (13) | |
| | | | | | | | | | |
Net income applicable to common shares | $ | 439 | | | $ | 383 | | | $ | 519 | | | | 15 | % | | (15) | |
| | | | | | | | | | |
Net income per common share - diluted | $ | 0.30 | | | $ | 0.26 | | | $ | 0.35 | | | | 15 | % | | (14) | % |
Cash dividends declared per common share | 0.155 | | | 0.155 | | | 0.155 | | | | — | | | — | |
Tangible book value per common share at end of period | 7.89 | | | 7.77 | | | 7.33 | | | | 2 | | | 8 | |
| | | | | | | | | | |
Average common shares - basic | 1,451 | | | 1,448 | | | 1,446 | | | | — | | | — | |
Average common shares - diluted | 1,474 | | | 1,473 | | | 1,466 | | | | — | | | 1 | |
Ending common shares outstanding | 1,452 | | | 1,449 | | | 1,448 | | | | — | | | — | |
Return on average assets | 0.98 | % | | 0.89 | % | | 1.18 | % | | | | | |
Return on average common shareholders’ equity | 10.4 | | | 9.2 | | | 12.7 | | | | | | |
Return on average tangible common shareholders’ equity (2) | 16.1 | | | 14.2 | | | 19.9 | | | | | | |
Net interest margin (1) | 2.99 | | | 3.01 | | | 3.11 | | | | | | |
Efficiency ratio (3) | 60.8 | | | 63.7 | | | 55.9 | | | | | | |
Effective tax rate | 18.2 | | | 16.8 | | | 19.3 | | | | | | |
Average total assets | $ | 194,558 | | | $ | 190,306 | | | $ | 190,746 | | | | 2 | | | 2 | |
Average earning assets | 178,062 | | | 173,764 | | | 174,909 | | | | 2 | | | 2 | |
Average loans and leases | 123,376 | | | 121,930 | | | 121,345 | | | | 1 | | | 2 | |
| | | | | | | | | | |
Average total deposits | $ | 153,578 | | | $ | 150,728 | | | $ | 145,559 | | | | 2 | | | 6 | |
Average core deposits (4) | 147,393 | | | 144,960 | | | 140,736 | | | | 2 | | | 5 | |
| | | | | | | | | | |
Average Huntington shareholders’ equity | 19,254 | | | 19,213 | | | 18,844 | | | | — | | | 2 | |
Average common total shareholders' equity | 16,861 | | | 16,819 | | | 16,359 | | | | — | | | 3 | |
Average tangible common shareholders' equity | 11,201 | | | 11,151 | | | 10,662 | | | | — | | | 5 | |
Total assets at end of period | 196,310 | | | 193,519 | | | 188,505 | | | | 1 | | | 4 | |
Total Huntington shareholders’ equity at end of period | 19,515 | | | 19,322 | | | 18,788 | | | | 1 | | | 4 | |
| | | | | | | | | | |
NCOs as a % of average loans and leases | 0.29 | % | | 0.30 | % | | 0.16 | % | | | | | |
NAL ratio | 0.59 | | | 0.58 | | | 0.42 | | | | | | |
NPA ratio (5) | 0.63 | | | 0.60 | | | 0.46 | | | | | | |
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period | 1.85 | | | 1.86 | | | 1.80 | | | | | | |
Allowance for credit losses (ACL) as a % of total loans and leases at the end of period | 1.95 | | | 1.97 | | | 1.93 | | | | | | |
Common equity tier 1 risk-based capital ratio (6) | 10.4 | | | 10.2 | | | 9.8 | | | | | | |
Tangible common equity / tangible asset ratio (7) | 6.0 | | | 6.0 | | | 5.8 | | | | | | |
NM - Not Meaningful
See Notes to the Quarterly and Year to Date 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) | 2024 | | 2023 | | Amount | | Percent |
Net interest income (1) | $ | 2,625 | | | $ | 2,775 | | | $ | (150) | | | (5) | % |
FTE adjustment | (26) | | | (20) | | | (6) | | | (30) | |
Net interest income | 2,599 | | | 2,755 | | | (156) | | | (6) | |
Provision for credit losses | 207 | | | 177 | | | 30 | | | 17 | |
Noninterest income | 958 | | | 1,007 | | | (49) | | | (5) | |
Noninterest expense | 2,254 | | | 2,136 | | | 118 | | | 6 | |
Income before income taxes | 1,096 | | | 1,449 | | | (353) | | | (24) | |
Provision for income taxes | 192 | | | 278 | | | (86) | | | (31) | |
Income after income taxes | 904 | | | 1,171 | | | (267) | | | (23) | |
Income attributable to non-controlling interest | 11 | | | 10 | | | 1 | | | 10 | |
Net income attributable to Huntington | 893 | | | 1,161 | | | (268) | | | (23) | |
Dividends on preferred shares | 71 | | | 69 | | | 2 | | | 3 | |
| | | | | | | |
Net income applicable to common shares | $ | 822 | | | $ | 1,092 | | | $ | (270) | | | (25) | % |
| | | | | | | |
Net income per common share - diluted | $ | 0.56 | | | $ | 0.74 | | | $ | (0.18) | | | (24) | % |
Cash dividends declared per common share | 0.31 | | | 0.31 | | | — | | | — | |
| | | | | | | |
Average common shares - basic | 1,450 | | | 1,445 | | | 5 | | | — | |
Average common shares - diluted | 1,474 | | | 1,468 | | | 6 | | | — | |
| | | | | | | |
Return on average assets | 0.93 | % | | 1.25 | % | | | | |
Return on average common shareholders’ equity | 9.8 | | | 13.6 | | | | | |
Return on average tangible common shareholders’ equity (2) | 15.1 | | | 21.5 | | | | | |
Net interest margin (1) | 3.00 | | | 3.25 | | | | | |
Efficiency ratio (3) | 62.2 | | | 55.7 | | | | | |
Effective tax rate | 17.5 | | | 19.2 | | | | | |
| | | | | | | |
Average total assets | $ | 192,432 | | | $ | 187,836 | | | $ | 4,596 | | | 2 | % |
Average earning assets | 175,913 | | | 172,026 | | | 3,887 | | | 2 | |
Average loans and leases | 122,653 | | | 120,885 | | | 1,768 | | | 1 | |
Average total deposits | 152,153 | | | 145,850 | | | 6,303 | | | 4 | |
Average core deposits (4) | 146,177 | | | 140,906 | | | 5,271 | | | 4 | |
Average Huntington shareholders’ equity | 19,234 | | | 18,539 | | | 695 | | | 4 | |
Average common total shareholders' equity | 16,840 | | | 16,167 | | | 673 | | | 4 | |
Average tangible common shareholders' equity | 11,176 | | | 10,459 | | | 717 | | | 7 | |
| | | | | | | |
NCOs as a % of average loans and leases | 0.30 | % | | 0.17 | % | | | | |
NAL ratio | 0.59 | | | 0.42 | | | | | |
NPA ratio (5) | 0.63 | | | 0.46 | | | | | |
NM - Not Meaningful
See Notes to the Quarterly and Year to Date Key Statistics.
Notes to the Quarterly and Year to Date Key Statistics
(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.
(2)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.
(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, 2024 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) | 2024 | | 2023 | | Percent Changes | | |
| (Unaudited) | | | | | | |
Assets | | | | | | | |
Cash and due from banks | $ | 1,333 | | | $ | 1,558 | | | (14) | % | | |
| | | | | | | |
| | | | | | | |
Interest-earning deposits with banks | 11,450 | | | 8,765 | | | 31 | | | |
Trading account securities | 154 | | | 125 | | | 23 | | | |
Available-for-sale securities | 27,454 | | | 25,305 | | | 8 | | | |
Held-to-maturity securities | 15,036 | | | 15,750 | | | (5) | | | |
| | | | | | | |
| | | | | | | |
Other securities | 844 | | | 725 | | | 16 | | | |
Loans held for sale | 668 | | | 516 | | | 29 | | | |
Loans and leases (1) | 124,422 | | | 121,982 | | | 2 | | | |
Allowance for loan and lease losses | (2,304) | | | (2,255) | | | (2) | | | |
Net loans and leases | 122,118 | | | 119,727 | | | 2 | | | |
Bank owned life insurance | 2,775 | | | 2,759 | | | 1 | | | |
Accrued income and other receivables | 1,591 | | | 1,646 | | | (3) | | | |
Premises and equipment | 1,095 | | | 1,109 | | | (1) | | | |
Goodwill | 5,561 | | | 5,561 | | | — | | | |
Servicing rights and other intangible assets | 673 | | | 672 | | | — | | | |
Other assets | 5,558 | | | 5,150 | | | 8 | | | |
Total assets | $ | 196,310 | | | $ | 189,368 | | | 4 | % | | |
| | | | | | | |
Liabilities and shareholders' equity | | | | | | | |
Liabilities | | | | | | | |
Deposits (2) | $ | 154,367 | | | $ | 151,230 | | | 2 | % | | |
Short-term borrowings | 187 | | | 620 | | | (70) | | | |
Long-term debt | 16,461 | | | 12,394 | | | 33 | | | |
Other liabilities | 5,732 | | | 5,726 | | | — | | | |
Total liabilities | 176,747 | | | 169,970 | | | 4 | | | |
| | | | | | | |
Shareholders' equity | | | | | | | |
Preferred stock | 2,394 | | | 2,394 | | | — | | | |
Common stock | 15 | | | 15 | | | — | | | |
Capital surplus | 15,425 | | | 15,389 | | | — | | | |
Less treasury shares, at cost | (90) | | | (91) | | | 1 | | | |
Accumulated other comprehensive income (loss) | (2,911) | | | (2,676) | | | (9) | | | |
Retained earnings | 4,682 | | | 4,322 | | | 8 | | | |
Total Huntington shareholders’ equity | 19,515 | | | 19,353 | | | 1 | | | |
Non-controlling interest | 48 | | | 45 | | | 7 | | | |
Total equity | 19,563 | | | 19,398 | | | 1 | | | |
Total liabilities and equity | $ | 196,310 | | | $ | 189,368 | | | 4 | % | | |
| | | | | | | |
Common shares authorized (par value of $0.01) | 2,250,000,000 | | | 2,250,000,000 | | | | | |
Common shares outstanding | 1,452,432,838 | | | 1,448,319,953 | | | | | |
Treasury shares outstanding | 7,322,727 | | | 7,403,008 | | | | | |
Preferred stock, authorized shares | 6,617,808 | | | 6,617,808 | | | | | |
Preferred shares outstanding | 881,587 | | | 881,587 | | | | | |
(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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Ending balances by type: | | | | | | | | | | | | | | | | | | | |
Total loans and leases | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 52,307 | | | 42 | % | | $ | 51,500 | | | 42 | % | | $ | 50,657 | | | 42 | % | | $ | 49,422 | | | 41 | % | | $ | 49,834 | | | 41 | % |
Commercial real estate: | | | | | | | | | | | | | | | | | | | |
Commercial | 10,997 | | | 9 | | | 11,339 | | | 9 | | | 11,092 | | | 9 | | | 11,365 | | | 10 | | | 11,750 | | | 10 | |
Construction | 936 | | | 1 | | | 1,003 | | | 1 | | | 1,330 | | | 1 | | | 1,303 | | | 1 | | | 1,416 | | | 1 | |
Commercial real estate | 11,933 | | | 10 | | | 12,342 | | | 10 | | | 12,422 | | | 10 | | | 12,668 | | | 11 | | | 13,166 | | | 11 | |
Lease financing | 5,202 | | | 4 | | | 5,133 | | | 4 | | | 5,228 | | | 4 | | | 5,161 | | | 4 | | | 5,143 | | | 4 | |
Total commercial | 69,442 | | | 56 | | | 68,975 | | | 56 | | | 68,307 | | | 56 | | | 67,251 | | | 56 | | | 68,143 | | | 56 | |
Consumer: | | | | | | | | | | | | | | | | | | | |
Residential mortgage | 24,069 | | | 19 | | | 23,744 | | | 20 | | | 23,720 | | | 20 | | | 23,427 | | | 19 | | | 23,138 | | | 19 | |
Automobile | 13,233 | | | 11 | | | 12,662 | | | 10 | | | 12,482 | | | 10 | | | 12,724 | | | 11 | | | 12,819 | | | 11 | |
Home equity | 10,076 | | | 8 | | | 10,047 | | | 8 | | | 10,113 | | | 8 | | | 10,118 | | | 8 | | | 10,135 | | | 8 | |
RV and marine | 6,042 | | | 5 | | | 5,887 | | | 5 | | | 5,899 | | | 5 | | | 5,937 | | | 5 | | | 5,640 | | | 5 | |
Other consumer | 1,560 | | | 1 | | | 1,452 | | | 1 | | | 1,461 | | | 1 | | | 1,396 | | | 1 | | | 1,350 | | | 1 | |
Total consumer | 54,980 | | | 44 | | | 53,792 | | | 44 | | | 53,675 | | | 44 | | | 53,602 | | | 44 | | | 53,082 | | | 44 | |
Total loans and leases | $ | 124,422 | | | 100 | % | | $ | 122,767 | | | 100 | % | | $ | 121,982 | | | 100 | % | | $ | 120,853 | | | 100 | % | | $ | 121,225 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Ending balances by business segment: | | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 69,328 | | | 56 | % | | $ | 67,512 | | | 55 | % | | $ | 67,108 | | | 55 | % | | $ | 66,202 | | | 55 | % | | $ | 65,374 | | | 54 | % |
Commercial Banking | 54,941 | | | 44 | | | 54,994 | | | 45 | | | 54,743 | | | 45 | | | 54,451 | | | 45 | | | 55,672 | | | 46 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 153 | | | — | | | 261 | | | — | | | 131 | | | — | | | 200 | | | — | | | 179 | | | — | |
Total loans and leases | $ | 124,422 | | | 100 | % | | $ | 122,767 | | | 100 | % | | $ | 121,982 | | | 100 | % | | $ | 120,853 | | | 100 | % | | $ | 121,225 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Average balances by business segment: | | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 68,405 | | | 56 | % | | $ | 67,136 | | | 55 | % | | $ | 66,638 | | | 55 | % | | $ | 65,738 | | | 55 | % | | $ | 64,782 | | | 54 | % |
Commercial Banking | 54,748 | | | 44 | | | 54,584 | | | 45 | | | 54,395 | | | 45 | | | 54,873 | | | 45 | | | 56,375 | | | 46 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 223 | | | — | | | 210 | | | — | | | 196 | | | — | | | 173 | | | — | | | 188 | | | — | |
Total loans and leases | $ | 123,376 | | | 100 | % | | $ | 121,930 | | | 100 | % | | $ | 121,229 | | | 100 | % | | $ | 120,784 | | | 100 | % | | $ | 121,345 | | | 100 | % |
Huntington Bancshares Incorporated
Deposits Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Ending balances: | | | | | | | | | | | | | | | | | | | |
Total deposits by type: | | | | | | | | | | | | | | | | | | | |
Demand deposits - noninterest-bearing | $ | 28,636 | | | 19 | % | | $ | 29,739 | | | 19 | % | | $ | 30,967 | | | 20 | % | | $ | 31,666 | | | 21 | % | | $ | 33,340 | | | 23 | % |
Demand deposits - interest-bearing | 39,913 | | | 26 | | | 39,200 | | | 26 | | | 39,190 | | | 26 | | | 39,822 | | | 27 | | | 40,387 | | | 28 | |
Money market deposits | 49,182 | | | 32 | | | 47,520 | | | 31 | | | 44,947 | | | 30 | | | 42,996 | | | 29 | | | 40,534 | | | 27 | |
Savings and other domestic deposits | 16,175 | | | 10 | | | 16,728 | | | 11 | | | 16,722 | | | 11 | | | 17,350 | | | 12 | | | 18,294 | | | 12 | |
Core certificates of deposit (1) | 13,605 | | | 9 | | | 14,082 | | | 9 | | | 13,626 | | | 9 | | | 12,372 | | | 8 | | | 10,314 | | | 7 | |
Total core deposits | 147,511 | | | 96 | | | 147,269 | | | 96 | | | 145,452 | | | 96 | | | 144,206 | | | 97 | | | 142,869 | | | 97 | |
Other domestic deposits of $250,000 or more | 444 | | | — | | | 487 | | | — | | | 447 | | | — | | | 446 | | | — | | | 381 | | | — | |
Negotiable CDS, brokered and other deposits | 6,412 | | | 4 | | | 5,469 | | | 4 | | | 5,331 | | | 4 | | | 4,215 | | | 3 | | | 4,778 | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Total deposits | $ | 154,367 | | | 100 | % | | $ | 153,225 | | | 100 | % | | $ | 151,230 | | | 100 | % | | $ | 148,867 | | | 100 | % | | $ | 148,028 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Total core deposits: | | | | | | | | | | | | | | | | | | | |
Commercial | $ | 61,359 | | | 42 | % | | $ | 60,184 | | | 41 | % | | $ | 60,547 | | | 42 | % | | $ | 61,379 | | | 43 | % | | $ | 61,450 | | | 43 | % |
Consumer | 86,152 | | | 58 | | | 87,085 | | | 59 | | | 84,905 | | | 58 | | | 82,827 | | | 57 | | | 81,419 | | | 57 | |
Total core deposits | $ | 147,511 | | | 100 | % | | $ | 147,269 | | | 100 | % | | $ | 145,452 | | | 100 | % | | $ | 144,206 | | | 100 | % | | $ | 142,869 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Total deposits by business segment: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 110,913 | | | 72 | % | | $ | 112,032 | | | 73 | % | | $ | 110,157 | | | 73 | % | | $ | 108,183 | | | 73 | % | | $ | 106,502 | | | 72 | % |
Commercial Banking | 38,110 | | | 25 | | | 35,619 | | | 23 | | | 35,466 | | | 23 | | | 36,023 | | | 24 | | | 36,459 | | | 25 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 5,344 | | | 3 | | | 5,574 | | | 4 | | | 5,607 | | | 4 | | | 4,661 | | | 3 | | | 5,067 | | | 3 | |
Total deposits | $ | 154,367 | | | 100 | % | | $ | 153,225 | | | 100 | % | | $ | 151,230 | | | 100 | % | | $ | 148,867 | | | 100 | % | | $ | 148,028 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Average balances: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total core deposits: | | | | | | | | | | | | | | | | | | | |
Commercial | $ | 61,491 | | | 42 | % | | $ | 60,260 | | | 42 | % | | $ | 61,782 | | | 43 | % | | $ | 62,070 | | | 43 | % | | $ | 61,304 | | | 44 | % |
Consumer | 85,902 | | | 58 | | | 84,700 | | | 58 | | | 82,602 | | | 57 | | | 81,040 | | | 57 | | | 79,432 | | | 56 | |
Total core deposits | $ | 147,393 | | | 100 | % | | $ | 144,960 | | | 100 | % | | $ | 144,384 | | | 100 | % | | $ | 143,110 | | | 100 | % | | $ | 140,736 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | |
Average deposits by business segment: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer & Regional Banking | $ | 110,819 | | | 72 | % | | $ | 109,263 | | | 73 | % | | $ | 108,198 | | | 72 | % | | $ | 106,300 | | | 72 | % | | $ | 104,593 | | | 71 | % |
Commercial Banking | 36,765 | | | 24 | | | 35,656 | | | 23 | | | 35,886 | | | 24 | | | 36,673 | | | 25 | | | 35,752 | | | 25 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Treasury / Other | 5,994 | | | 4 | | | 5,809 | | | 4 | | | 5,570 | | | 4 | | | 5,177 | | | 3 | | | 5,214 | | | 4 | |
Total deposits | $ | 153,578 | | | 100 | % | | $ | 150,728 | | | 100 | % | | $ | 149,654 | | | 100 | % | | $ | 148,150 | | | 100 | % | | $ | 145,559 | | | 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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | | 1Q24 | | 2Q23 |
Assets | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Interest-earning deposits with banks | $ | 11,116 | | | $ | 9,761 | | | $ | 10,019 | | | $ | 9,547 | | | $ | 11,281 | | | | 14 | % | | (1) | % |
Securities: | | | | | | | | | | | | | | |
Trading account securities | 143 | | | 133 | | | 125 | | | 128 | | | 34 | | | | 8 | | | NM |
Available-for-sale securities: | | | | | | | | | | | | | | |
Taxable | 24,184 | | | 22,515 | | | 20,056 | | | 19,834 | | | 20,920 | | | | 7 | | | 16 | |
Tax-exempt | 2,684 | | | 2,676 | | | 2,686 | | | 2,807 | | | 2,745 | | | | — | | | (2) | |
Total available-for-sale securities | 26,868 | | | 25,191 | | | 22,742 | | | 22,641 | | | 23,665 | | | | 7 | | | 14 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Held-to-maturity securities - taxable | 15,211 | | | 15,567 | | | 15,947 | | | 16,356 | | | 16,762 | | | | (2) | | | (9) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Other securities | 776 | | | 724 | | | 727 | | | 859 | | | 1,263 | | | | 7 | | | (39) | |
Total securities | 42,998 | | | 41,615 | | | 39,541 | | | 39,984 | | | 41,724 | | | | 3 | | | 3 | |
Loans held for sale | 572 | | | 458 | | | 571 | | | 633 | | | 559 | | | | 25 | | | 2 | |
Loans and leases: (2) | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | 51,724 | | | 50,625 | | | 49,882 | | | 49,448 | | | 50,194 | | | | 2 | | | 3 | |
Commercial real estate: | | | | | | | | | | | | | | |
Commercial | 11,247 | | | 11,365 | | | 11,309 | | | 11,624 | | | 12,062 | | | | (1) | | | (7) | |
Construction | 916 | | | 1,198 | | | 1,285 | | | 1,331 | | | 1,280 | | | | (24) | | | (28) | |
Commercial real estate | 12,163 | | | 12,563 | | | 12,594 | | | 12,955 | | | 13,342 | | | | (3) | | | (9) | |
Lease financing | 5,071 | | | 5,081 | | | 5,102 | | | 5,050 | | | 5,155 | | | | — | | | (2) | |
Total commercial | 68,958 | | | 68,269 | | | 67,578 | | | 67,453 | | | 68,691 | | | | 1 | | | — | |
Consumer: | | | | | | | | | | | | | | |
Residential mortgage | 23,909 | | | 23,710 | | | 23,573 | | | 23,278 | | | 22,765 | | | | 1 | | | 5 | |
Automobile | 12,989 | | | 12,553 | | | 12,612 | | | 12,747 | | | 12,927 | | | | 3 | | | — | |
Home equity | 10,056 | | | 10,072 | | | 10,107 | | | 10,108 | | | 10,154 | | | | — | | | (1) | |
RV and marine | 5,966 | | | 5,892 | | | 5,934 | | | 5,813 | | | 5,478 | | | | 1 | | | 9 | |
Other consumer | 1,498 | | | 1,434 | | | 1,425 | | | 1,385 | | | 1,330 | | | | 4 | | | 13 | |
Total consumer | 54,418 | | | 53,661 | | | 53,651 | | | 53,331 | | | 52,654 | | | | 1 | | | 3 | |
Total loans and leases | 123,376 | | | 121,930 | | | 121,229 | | | 120,784 | | | 121,345 | | | | 1 | | | 2 | |
Total earning assets | 178,062 | | | 173,764 | | | 171,360 | | | 170,948 | | | 174,909 | | | | 2 | | | 2 | |
Cash and due from banks | 1,340 | | | 1,493 | | | 1,508 | | | 1,559 | | | 1,639 | | | | (10) | | | (18) | |
Goodwill and other intangible assets | 5,685 | | | 5,697 | | | 5,710 | | | 5,722 | | | 5,734 | | | | — | | | (1) | |
All other assets | 11,773 | | | 11,619 | | | 11,607 | | | 10,576 | | | 10,638 | | | | 1 | | | 11 | |
Allowance for loan and lease losses | (2,302) | | | (2,267) | | | (2,223) | | | (2,206) | | | (2,174) | | | | (2) | | | (6) | |
Total assets | $ | 194,558 | | | $ | 190,306 | | | $ | 187,962 | | | $ | 186,599 | | | $ | 190,746 | | | | 2 | % | | 2 | % |
Liabilities and shareholders' equity | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | |
Demand deposits - interest-bearing | $ | 39,082 | | | $ | 38,488 | | | $ | 39,138 | | | $ | 39,757 | | | $ | 39,772 | | | | 2 | % | | (2) | % |
Money market deposits | 48,263 | | | 46,100 | | | 44,022 | | | 41,445 | | | 38,753 | | | | 5 | | | 25 | |
Savings and other domestic deposits | 16,387 | | | 16,595 | | | 16,944 | | | 17,774 | | | 18,826 | | | | (1) | | | (13) | |
Core certificates of deposit (3) | 14,031 | | | 13,867 | | | 13,107 | | | 11,348 | | | 8,820 | | | | 1 | | | 59 | |
| | | | | | | | | | | | | | |
Other domestic deposits of $250,000 or more | 449 | | | 461 | | | 435 | | | 406 | | | 320 | | | | (3) | | | 40 | |
Negotiable CDS, brokered and other deposits | 5,736 | | | 5,307 | | | 4,834 | | | 4,634 | | | 4,502 | | | | 8 | | | 27 | |
| | | | | | | | | | | | | | |
Total interest-bearing deposits | 123,948 | | | 120,818 | | | 118,480 | | | 115,364 | | | 110,993 | | | | 3 | | | 12 | |
Short-term borrowings | 1,214 | | | 1,300 | | | 1,906 | | | 859 | | | 5,242 | | | | (7) | | | (77) | |
Long-term debt | 15,146 | | | 13,777 | | | 12,205 | | | 13,772 | | | 16,252 | | | | 10 | | | (7) | |
Total interest-bearing liabilities | 140,308 | | | 135,895 | | | 132,591 | | | 129,995 | | | 132,487 | | | | 3 | | | 6 | |
Demand deposits - noninterest-bearing | 29,630 | | | 29,910 | | | 31,174 | | | 32,786 | | | 34,566 | | | | (1) | | | (14) | |
All other liabilities | 5,314 | | | 5,239 | | | 5,435 | | | 5,028 | | | 4,796 | | | | 1 | | | 11 | |
Total liabilities | 175,252 | | | 171,044 | | | 169,200 | | | 167,809 | | | 171,849 | | | | 2 | | | 2 | |
Total Huntington shareholders’ equity | 19,254 | | | 19,213 | | | 18,713 | | | 18,741 | | | 18,844 | | | | — | | | 2 | |
Non-controlling interest | 52 | | | 49 | | | 49 | | | 49 | | | 53 | | | | 6 | | | (2) | |
Total equity | 19,306 | | | 19,262 | | | 18,762 | | | 18,790 | | | 18,897 | | | | — | | | 2 | |
Total liabilities and equity | $ | 194,558 | | | $ | 190,306 | | | $ | 187,962 | | | $ | 186,599 | | | $ | 190,746 | | | | 2 | % | | 2 | % |
(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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Assets | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Interest-earning deposits with banks | $ | 154 | | | $ | 134 | | | $ | 139 | | | $ | 131 | | | $ | 146 | |
Securities: | | | | | | | | | |
Trading account securities | 2 | | | 2 | | | 2 | | | 1 | | | 1 | |
Available-for-sale securities: | | | | | | | | | |
Taxable | 322 | | | 296 | | | 273 | | | 259 | | | 252 | |
Tax-exempt | 34 | | | 34 | | | 33 | | | 37 | | | 33 | |
Total available-for-sale securities | 356 | | | 330 | | | 306 | | | 296 | | | 285 | |
Held-to-maturity securities - taxable | 93 | | | 95 | | | 98 | | | 99 | | | 102 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Other securities | 10 | | | 9 | | | 13 | | | 19 | | | 11 | |
Total securities | 461 | | | 436 | | | 419 | | | 415 | | | 399 | |
Loans held for sale | 10 | | | 7 | | | 10 | | | 10 | | | 8 | |
Loans and leases: | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | 829 | | | 801 | | | 783 | | | 776 | | | 746 | |
Commercial real estate: | | | | | | | | | |
Commercial | 214 | | | 215 | | | 216 | | | 225 | | | 217 | |
Construction | 19 | | | 25 | | | 27 | | | 28 | | | 26 | |
Commercial real estate | 233 | | | 240 | | | 243 | | | 253 | | | 243 | |
Lease financing | 82 | | | 79 | | | 77 | | | 73 | | | 71 | |
Total commercial | 1,144 | | | 1,120 | | | 1,103 | | | 1,102 | | | 1,060 | |
Consumer: | | | | | | | | | |
Residential mortgage | 232 | | | 227 | | | 222 | | | 213 | | | 200 | |
Automobile | 172 | | | 158 | | | 153 | | | 145 | | | 134 | |
Home equity | 196 | | | 195 | | | 197 | | | 195 | | | 187 | |
RV and marine | 76 | | | 74 | | | 77 | | | 73 | | | 63 | |
Other consumer | 44 | | | 42 | | | 41 | | | 40 | | | 39 | |
Total consumer | 720 | | | 696 | | | 690 | | | 666 | | | 623 | |
Total loans and leases | 1,864 | | | 1,816 | | | 1,793 | | | 1,768 | | | 1,683 | |
Total earning assets | $ | 2,489 | | | $ | 2,393 | | | $ | 2,361 | | | $ | 2,324 | | | $ | 2,236 | |
| | | | | | | | | |
Liabilities | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | |
Demand deposits - interest-bearing | $ | 206 | | | $ | 200 | | | $ | 204 | | | $ | 199 | | | $ | 167 | |
Money market deposits | 442 | | | 413 | | | 381 | | | 327 | | | 255 | |
Savings and other domestic deposits | 12 | | | 10 | | | 8 | | | 6 | | | 6 | |
Core certificates of deposit (3) | 166 | | | 160 | | | 145 | | | 119 | | | 83 | |
| | | | | | | | | |
Other domestic deposits of $250,000 or more | 5 | | | 5 | | | 5 | | | 4 | | | 2 | |
Negotiable CDS, brokered and other deposits | 76 | | | 69 | | | 65 | | | 58 | | | 57 | |
| | | | | | | | | |
Total interest-bearing deposits | 907 | | | 857 | | | 808 | | | 713 | | | 570 | |
Short-term borrowings | 19 | | | 19 | | | 28 | | | 17 | | | 74 | |
Long-term debt | 238 | | | 217 | | | 198 | | | 215 | | | 235 | |
Total interest-bearing liabilities | 1,164 | | | 1,093 | | | 1,034 | | | 945 | | | 879 | |
Net interest income | $ | 1,325 | | | $ | 1,300 | | | $ | 1,327 | | | $ | 1,379 | | | $ | 1,357 | |
(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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Assets | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Interest-earning deposits with banks | 5.55 | | | 5.50 | | | 5.59 | | | 5.48 | | | 5.17 | |
Securities: | | | | | | | | | |
Trading account securities | 5.10 | | | 5.15 | | | 5.40 | | | 4.98 | | | 4.92 | |
Available-for-sale securities: | | | | | | | | | |
Taxable | 5.33 | | | 5.26 | | | 5.43 | | | 5.22 | | | 4.82 | |
Tax-exempt | 5.07 | | | 5.05 | | | 5.01 | | | 5.08 | | | 4.87 | |
Total available-for-sale securities | 5.30 | | | 5.24 | | | 5.38 | | | 5.20 | | | 4.83 | |
Held-to-maturity securities - taxable | 2.44 | | | 2.44 | | | 2.45 | | | 2.43 | | | 2.42 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Other securities | 5.21 | | | 5.23 | | | 7.04 | | | 9.22 | | | 3.47 | |
Total securities | 4.29 | | | 4.19 | | | 4.23 | | | 4.15 | | | 3.82 | |
Loans held for sale | 6.81 | | | 6.51 | | | 6.95 | | | 6.42 | | | 6.05 | |
Loans and leases: (2) | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | 6.33 | | | 6.26 | | | 6.14 | | | 6.15 | | | 5.87 | |
Commercial real estate: | | | | | | | | | |
Commercial | 7.53 | | | 7.49 | | | 7.48 | | | 7.55 | | | 7.14 | |
Construction | 8.41 | | | 8.23 | | | 8.40 | | | 8.30 | | | 7.96 | |
Commercial real estate | 7.60 | | | 7.56 | | | 7.57 | | | 7.63 | | | 7.22 | |
Lease financing | 6.41 | | | 6.13 | | | 5.90 | | | 5.60 | | | 5.45 | |
Total commercial | 6.56 | | | 6.49 | | | 6.39 | | | 6.39 | | | 6.10 | |
Consumer: | | | | | | | | | |
Residential mortgage | 3.89 | | | 3.83 | | | 3.76 | | | 3.66 | | | 3.51 | |
Automobile | 5.34 | | | 5.05 | | | 4.82 | | | 4.51 | | | 4.17 | |
Home equity | 7.86 | | | 7.77 | | | 7.70 | | | 7.66 | | | 7.42 | |
RV and marine | 5.11 | | | 5.04 | | | 5.13 | | | 4.96 | | | 4.59 | |
Other consumer | 11.75 | | | 11.91 | | | 11.67 | | | 11.67 | | | 11.59 | |
Total consumer | 5.32 | | | 5.20 | | | 5.12 | | | 4.97 | | | 4.74 | |
Total loans and leases | 6.01 | | | 5.92 | | | 5.82 | | | 5.76 | | | 5.51 | |
Total earning assets | 5.62 | | | 5.54 | | | 5.47 | | | 5.39 | | | 5.13 | |
Liabilities | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | |
Demand deposits - interest-bearing | 2.11 | | | 2.09 | | | 2.06 | | | 1.98 | | | 1.68 | |
Money market deposits | 3.68 | | | 3.61 | | | 3.44 | | | 3.12 | | | 2.64 | |
Savings and other domestic deposits | 0.30 | | | 0.24 | | | 0.19 | | | 0.15 | | | 0.11 | |
Core certificates of deposit (3) | 4.77 | | | 4.64 | | | 4.40 | | | 4.17 | | | 3.78 | |
| | | | | | | | | |
Other domestic deposits of $250,000 or more | 4.44 | | | 4.18 | | | 4.20 | | | 3.78 | | | 3.27 | |
Negotiable CDS, brokered and other deposits | 5.35 | | | 5.19 | | | 5.33 | | | 4.93 | | | 5.07 | |
| | | | | | | | | |
Total interest-bearing deposits | 2.94 | | | 2.85 | | | 2.71 | | | 2.45 | | | 2.06 | |
Short-term borrowings | 6.31 | | | 5.95 | | | 5.84 | | | 7.60 | | | 5.70 | |
Long-term debt | 6.28 | | | 6.30 | | | 6.46 | | | 6.27 | | | 5.79 | |
Total interest-bearing liabilities | 3.34 | | | 3.23 | | | 3.09 | | | 2.88 | | | 2.66 | |
| | | | | | | | | |
Net interest rate spread | 2.28 | | | 2.31 | | | 2.38 | | | 2.51 | | | 2.47 | |
Impact of noninterest-bearing funds on margin | 0.71 | | | 0.70 | | | 0.69 | | | 0.69 | | | 0.64 | |
Net interest margin | 2.99 | % | | 3.01 | % | | 3.07 | % | | 3.20 | % | | 3.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial Loan Derivative Impact | | | | | | | | | |
(Unaudited) | Quarterly Average Rates |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
Fully-taxable equivalent basis (1) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Commercial loans (2)(4) | 7.29 | % | | 7.22 | % | | 7.14 | % | | 7.09 | % | | 6.82 | % |
Impact of commercial loan derivatives | (0.73) | | | (0.73) | | | (0.75) | | | (0.70) | | | (0.72) | |
Total commercial - as reported | 6.56 | % | | 6.49 | % | | 6.39 | % | | 6.39 | % | | 6.10 | % |
Average 1 Month LIBOR | | | | | | | | | 5.09 | % |
Average SOFR | 5.32 | % | | 5.32 | % | | 5.32 | % | | 5.23 | % | | 4.97 | % |
(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 10 for the FTE adjustment. (2)Includes nonaccrual loans and leases.
(3)Includes consumer certificates of deposit of $250,000 or more.
(4)Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
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, |
2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Interest income | $ | 2,476 | | | $ | 2,380 | | | $ | 2,350 | | | $ | 2,313 | | | $ | 2,225 | |
Interest expense | 1,164 | | | 1,093 | | | 1,034 | | | 945 | | | 879 | |
Net interest income | 1,312 | | | 1,287 | | | 1,316 | | | 1,368 | | | 1,346 | |
Provision for credit losses | 100 | | | 107 | | | 126 | | | 99 | | | 92 | |
Net interest income after provision for credit losses | 1,212 | | | 1,180 | | | 1,190 | | | 1,269 | | | 1,254 | |
Payments and cash management revenue | 154 | | | 146 | | | 150 | | | 152 | | | 146 | |
Wealth and asset management revenue | 90 | | | 88 | | | 86 | | | 79 | | | 83 | |
Customer deposit and loan fees | 83 | | | 77 | | | 80 | | | 80 | | | 76 | |
Capital markets and advisory fees | 73 | | | 56 | | | 69 | | | 52 | | | 62 | |
Leasing revenue | 19 | | | 22 | | | 29 | | | 32 | | | 25 | |
Mortgage banking income | 30 | | | 31 | | | 23 | | | 27 | | | 33 | |
Insurance income | 18 | | | 19 | | | 19 | | | 18 | | | 18 | |
Bank owned life insurance income | 17 | | | 16 | | | 16 | | | 18 | | | 16 | |
Gain on sale of loans | 2 | | | 5 | | | 1 | | | 2 | | | 8 | |
Net gains (losses) on sales of securities | — | | | — | | | (3) | | | — | | | (5) | |
Other noninterest income | 5 | | | 7 | | | (65) | | | 49 | | | 33 | |
Total noninterest income | 491 | | | 467 | | | 405 | | | 509 | | | 495 | |
Personnel costs | 663 | | | 639 | | | 645 | | | 622 | | | 613 | |
Outside data processing and other services | 165 | | | 166 | | | 157 | | | 149 | | | 148 | |
Deposit and other insurance expense | 25 | | | 54 | | | 234 | | | 25 | | | 23 | |
Equipment | 62 | | | 70 | | | 70 | | | 65 | | | 64 | |
Net occupancy | 51 | | | 57 | | | 65 | | | 67 | | | 54 | |
Marketing | 27 | | | 28 | | | 29 | | | 29 | | | 32 | |
Professional services | 26 | | | 25 | | | 35 | | | 27 | | | 21 | |
Amortization of intangibles | 12 | | | 12 | | | 12 | | | 12 | | | 13 | |
Lease financing equipment depreciation | 4 | | | 4 | | | 5 | | | 6 | | | 8 | |
Other noninterest expense | 82 | | | 82 | | | 96 | | | 88 | | | 74 | |
Total noninterest expense | 1,117 | | | 1,137 | | | 1,348 | | | 1,090 | | | 1,050 | |
Income before income taxes | 586 | | | 510 | | | 247 | | | 688 | | | 699 | |
Provision (benefit) for income taxes | 106 | | | 86 | | | (1) | | | 136 | | | 134 | |
Income after income taxes | 480 | | | 424 | | | 248 | | | 552 | | | 565 | |
Income attributable to non-controlling interest | 6 | | | 5 | | | 5 | | | 5 | | | 6 | |
Net income attributable to Huntington | 474 | | | 419 | | | 243 | | | 547 | | | 559 | |
Dividends on preferred shares | 35 | | | 36 | | | 36 | | | 37 | | | 40 | |
Impact of preferred stock repurchases | — | | | — | | | (8) | | | — | | | — | |
Net income applicable to common shares | $ | 439 | | | $ | 383 | | | $ | 215 | | | $ | 510 | | | $ | 519 | |
| | | | | | | | | |
Average common shares - basic | 1,451 | | | 1,448 | | | 1,448 | | | 1,448 | | | 1,446 | |
Average common shares - diluted | 1,474 | | | 1,473 | | | 1,469 | | | 1,468 | | | 1,466 | |
| | | | | | | | | |
Per common share | | | | | | | | | |
Net income - basic | $ | 0.30 | | | $ | 0.26 | | | $ | 0.15 | | | $ | 0.35 | | | $ | 0.36 | |
Net income - diluted | 0.30 | | | 0.26 | | | 0.15 | | | 0.35 | | | 0.35 | |
Cash dividends declared | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | | | 0.155 | |
| | | | | | | | | |
Revenue - fully-taxable equivalent (FTE) | | | | | | | | | |
Net interest income | $ | 1,312 | | | $ | 1,287 | | | $ | 1,316 | | | $ | 1,368 | | | $ | 1,346 | |
FTE adjustment | 13 | | | 13 | | | 11 | | | 11 | | | 11 | |
Net interest income (1) | 1,325 | | | 1,300 | | | 1,327 | | | 1,379 | | | 1,357 | |
Noninterest income | 491 | | | 467 | | | 405 | | | 509 | | | 495 | |
Total revenue (1) | $ | 1,816 | | | $ | 1,767 | | | $ | 1,732 | | | $ | 1,888 | | | $ | 1,852 | |
(1)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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | | 1Q24 | | 2Q23 |
Net origination and secondary marketing income | $ | 17 | | | $ | 16 | | | $ | 12 | | | $ | 18 | | | $ | 23 | | | | 6 | % | | (26) | % |
Net mortgage servicing income | | | | | | | | | | | | | | |
Loan servicing income | 25 | | | 25 | | | 24 | | | 24 | | | 23 | | | | — | | | 9 | |
Amortization of capitalized servicing | (14) | | | (11) | | | (13) | | | (13) | | | (12) | | | | (27) | | | (17) | |
Operating income | 11 | | | 14 | | | 11 | | | 11 | | | 11 | | | | (21) | | | — | |
MSR valuation adjustment (1) | 11 | | | 20 | | | (34) | | | 38 | | | 15 | | | | (45) | | | (27) | |
(Losses) gains due to MSR hedging | (10) | | | (19) | | | 34 | | | (38) | | | (15) | | | | 47 | | | 33 | |
Net MSR risk management | 1 | | | 1 | | | — | | | — | | | — | | | | — | | | 100 | |
Total net mortgage servicing income | $ | 12 | | | $ | 15 | | | $ | 11 | | | $ | 11 | | | $ | 11 | | | | (20) | % | | 9 | % |
All other | 1 | | | — | | | — | | | (2) | | | (1) | | | | 100 | | | 200 | |
Mortgage banking income | $ | 30 | | | $ | 31 | | | $ | 23 | | | $ | 27 | | | $ | 33 | | | | (3) | % | | (9) | % |
| | | | | | | | | | | | | | |
Mortgage origination volume | $ | 2,164 | | | $ | 1,276 | | | $ | 1,666 | | | $ | 2,020 | | | $ | 2,504 | | | | 70 | % | | (14) | % |
Mortgage origination volume for sale | 1,191 | | | 834 | | | 962 | | | 1,195 | | | 1,239 | | | | 43 | | | (4) | |
| | | | | | | | | | | | | | |
Third party mortgage loans serviced (2) | 33,404 | | | 33,303 | | | 33,237 | | | 32,965 | | | 32,712 | | | | — | | | 2 | |
Mortgage servicing rights (2) | 543 | | | 534 | | | 515 | | | 547 | | | 505 | | | | 2 | | | 8 | |
MSR % of investor servicing portfolio (2) | 1.63 | % | | 1.60 | % | | 1.55 | % | | 1.66 | % | | 1.55 | % | | | 2 | % | | 5 | % |
(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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Allowance for loan and lease losses, beginning of period | $ | 2,280 | | | $ | 2,255 | | | $ | 2,208 | | | $ | 2,177 | | | $ | 2,142 | |
| | | | | | | | | |
Loan and lease charge-offs | (145) | | | (128) | | | (132) | | | (131) | | | (92) | |
Recoveries of loans and leases previously charged-off | 55 | | | 36 | | | 38 | | | 58 | | | 43 | |
Net loan and lease charge-offs | (90) | | | (92) | | | (94) | | | (73) | | | (49) | |
Provision for loan and lease losses | 114 | | | 117 | | | 141 | | | 104 | | | 84 | |
| | | | | | | | | |
| | | | | | | | | |
Allowance for loan and lease losses, end of period | 2,304 | | | 2,280 | | | 2,255 | | | 2,208 | | | 2,177 | |
Allowance for unfunded lending commitments, beginning of period | 135 | | | 145 | | | 160 | | | 165 | | | 157 | |
| | | | | | | | | |
Provision for unfunded lending commitments | (16) | | | (10) | | | (15) | | | (5) | | | 8 | |
| | | | | | | | | |
| | | | | | | | | |
Allowance for unfunded lending commitments, end of period | 119 | | | 135 | | | 145 | | | 160 | | | 165 | |
Total allowance for credit losses, end of period | $ | 2,423 | | | $ | 2,415 | | | $ | 2,400 | | | $ | 2,368 | | | $ | 2,342 | |
Allowance for loan and lease losses (ALLL) as % of: | | | | | | | | | |
Total loans and leases | 1.85 | % | | 1.86 | % | | 1.85 | % | | 1.83 | % | | 1.80 | % |
Nonaccrual loans and leases (NALs) | 314 | | | 318 | | | 338 | | | 373 | | | 427 | |
Nonperforming assets (NPAs) | 296 | | | 309 | | | 317 | | | 348 | | | 391 | |
Total allowance for credit losses (ACL) as % of: | | | | | | | | | |
Total loans and leases | 1.95 | % | | 1.97 | % | | 1.97 | % | | 1.96 | % | | 1.93 | % |
Nonaccrual loans and leases (NALs) | 331 | | | 337 | | | 360 | | | 400 | | | 459 | |
Nonperforming assets (NPAs) | 311 | | | 327 | | | 337 | | | 373 | | | 420 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Allocation of allowance for credit losses | | | | | | | | | |
Commercial | | | | | | | | | |
Commercial and industrial | $ | 995 | | | $ | 974 | | | $ | 993 | | | $ | 973 | | | $ | 994 | |
Commercial real estate | 542 | | | 564 | | | 522 | | | 483 | | | 442 | |
Lease financing | 50 | | | 51 | | | 48 | | | 48 | | | 47 | |
Total commercial | 1,587 | | | 1,589 | | | 1,563 | | | 1,504 | | | 1,483 | |
Consumer | | | | | | | | | |
Residential mortgage | 199 | | | 163 | | | 188 | | | 200 | | | 194 | |
Automobile | 127 | | | 146 | | | 142 | | | 143 | | | 144 | |
Home equity | 142 | | | 137 | | | 114 | | | 115 | | | 119 | |
RV and marine | 146 | | | 148 | | | 148 | | | 151 | | | 145 | |
Other consumer | 103 | | | 97 | | | 100 | | | 95 | | | 92 | |
Total consumer | 717 | | | 691 | | | 692 | | | 704 | | | 694 | |
Total allowance for loan and lease losses | 2,304 | | | 2,280 | | | 2,255 | | | 2,208 | | | 2,177 | |
Allowance for unfunded lending commitments | 119 | | | 135 | | | 145 | | | 160 | | | 165 | |
Total allowance for credit losses | $ | 2,423 | | | $ | 2,415 | | | $ | 2,400 | | | $ | 2,368 | | | $ | 2,342 | |
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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Net charge-offs (recoveries) by loan and lease type: | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | $ | 21 | | | $ | 42 | | | $ | 39 | | | $ | 32 | | | $ | 20 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Commercial real estate | 36 | | | 13 | | | 21 | | | 11 | | | 7 | |
Lease financing | — | | | — | | | (3) | | | 2 | | | — | |
Total commercial | 57 | | | 55 | | | 57 | | | 45 | | | 27 | |
Consumer: | | | | | | | | | |
Residential mortgage | 1 | | | — | | | — | | | 1 | | | 1 | |
Automobile | 6 | | | 9 | | | 9 | | | 4 | | | 3 | |
Home equity | — | | | — | | | — | | | — | | | — | |
RV and marine | 4 | | | 5 | | | 5 | | | 3 | | | 2 | |
Other consumer | 22 | | | 23 | | | 23 | | | 20 | | | 16 | |
Total consumer | 33 | | | 37 | | | 37 | | | 28 | | | 22 | |
Total net charge-offs | $ | 90 | | | $ | 92 | | | $ | 94 | | | $ | 73 | | | $ | 49 | |
| | | | | | | | | |
| | | | | | | | | |
| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Net charge-offs (recoveries) - annualized percentages: | | | | | | | | | |
Commercial: | | | | | | | | | |
Commercial and industrial | 0.16 | % | | 0.33 | % | | 0.32 | % | | 0.26 | % | | 0.15 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Commercial real estate | 1.19 | | | 0.41 | | | 0.65 | | | 0.35 | | | 0.23 | |
Lease financing | 0.02 | | | 0.01 | | | (0.24) | | | 0.12 | | | — | |
Total commercial | 0.33 | | | 0.32 | | | 0.34 | | | 0.27 | | | 0.16 | |
Consumer: | | | | | | | | | |
Residential mortgage | 0.01 | | | — | | | 0.01 | | | 0.01 | | | 0.01 | |
Automobile | 0.20 | | | 0.27 | | | 0.27 | | | 0.14 | | | 0.10 | |
Home equity | (0.01) | | | 0.01 | | | 0.01 | | | (0.01) | | | (0.02) | |
RV and marine | 0.25 | | | 0.36 | | | 0.34 | | | 0.16 | | | 0.13 | |
Other consumer | 5.98 | | | 6.39 | | | 6.48 | | | 6.09 | | | 5.17 | |
Total consumer | 0.24 | | | 0.28 | | | 0.28 | | | 0.21 | | | 0.17 | |
Net charge-offs as a % of average loans and leases | 0.29 | % | | 0.30 | % | | 0.31 | % | | 0.24 | % | | 0.16 | % |
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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Nonaccrual loans and leases (NALs): | | | | | | | | | |
Commercial and industrial | $ | 346 | | | $ | 376 | | | $ | 344 | | | $ | 314 | | | $ | 267 | |
Commercial real estate | 194 | | | 154 | | | 140 | | | 102 | | | 75 | |
Lease financing | 13 | | | 10 | | | 14 | | | 14 | | | 15 | |
Residential mortgage | 80 | | | 75 | | | 72 | | | 75 | | | 73 | |
Automobile | 4 | | | 4 | | | 4 | | | 4 | | | 4 | |
Home equity | 95 | | | 96 | | | 91 | | | 82 | | | 75 | |
RV and marine | 1 | | | 1 | | | 2 | | | 1 | | | 1 | |
| | | | | | | | | |
Total nonaccrual loans and leases | 733 | | | 716 | | | 667 | | | 592 | | | 510 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Other real estate, net | 10 | | | 10 | | | 10 | | | 14 | | | 18 | |
Other NPAs (1) | 37 | | | 12 | | | 34 | | | 28 | | | 29 | |
Total nonperforming assets | $ | 780 | | | $ | 738 | | | $ | 711 | | | $ | 634 | | | $ | 557 | |
| | | | | | | | | |
Nonaccrual loans and leases as a % of total loans and leases | 0.59 | % | | 0.58 | % | | 0.55 | % | | 0.49 | % | | 0.42 | % |
NPA ratio (2) | 0.63 | | | 0.60 | | | 0.58 | | | 0.52 | | | 0.46 | |
(NPA+90days)/(Loan+OREO) (3) | 0.77 | | | 0.75 | | | 0.74 | | | 0.66 | | | 0.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Nonperforming assets, beginning of period | $ | 738 | | | $ | 711 | | | $ | 634 | | | $ | 557 | | | $ | 578 | |
New nonperforming assets | 316 | | | 263 | | | 300 | | | 252 | | | 188 | |
| | | | | | | | | |
| | | | | | | | | |
Returns to accruing status | (55) | | | (68) | | | (47) | | | (23) | | | (34) | |
Charge-offs | (82) | | | (64) | | | (73) | | | (62) | | | (42) | |
Payments | (135) | | | (102) | | | (98) | | | (85) | | | (118) | |
Sales | (2) | | | (2) | | | (5) | | | (5) | | | (15) | |
| | | | | | | | | |
Nonperforming assets, end of period | $ | 780 | | | $ | 738 | | | $ | 711 | | | $ | 634 | | | $ | 557 | |
(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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Accruing loans and leases past due 90+ days: | | | | | | | | | |
Commercial and industrial | $ | 1 | | | $ | 1 | | | $ | 1 | | | $ | — | | | $ | 7 | |
| | | | | | | | | |
Lease financing | 4 | | | 3 | | | 4 | | | 7 | | | 12 | |
Residential mortgage (excluding loans guaranteed by the U.S. Government) | 22 | | | 26 | | | 27 | | | 22 | | | 18 | |
Automobile | 8 | | | 8 | | | 9 | | | 8 | | | 6 | |
Home equity | 18 | | | 17 | | | 22 | | | 19 | | | 18 | |
RV and marine | 3 | | | 2 | | | 3 | | | 2 | | | 2 | |
Other consumer | 3 | | | 4 | | | 4 | | | 3 | | | 3 | |
Total, excl. loans guaranteed by the U.S. Government | 59 | | | 61 | | | 70 | | | 61 | | | 66 | |
Add: loans guaranteed by U.S. Government | 116 | | | 122 | | | 119 | | | 102 | | | 103 | |
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government | $ | 175 | | | $ | 183 | | | $ | 189 | | | $ | 163 | | | $ | 169 | |
| | | | | | | | | |
Ratios: | | | | | | | | | |
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.05 | % | | 0.05 | % | | 0.06 | % | | 0.05 | % | | 0.05 | % |
Guaranteed by U.S. Government, as a percent of total loans and leases | 0.09 | | | 0.10 | | | 0.10 | | | 0.08 | | | 0.08 | |
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases | 0.14 | | | 0.15 | | | 0.15 | | | 0.14 | | | 0.14 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
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) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Common equity tier 1 risk-based capital ratio: (1) | | | | | | | | | |
Total Huntington shareholders’ equity | $ | 19,515 | | | $ | 19,322 | | | $ | 19,353 | | | $ | 18,483 | | | $ | 18,788 | |
Regulatory capital adjustments: | | | | | | | | | |
CECL transitional amount (2) | 109 | | | 109 | | | 219 | | | 219 | | | 219 | |
Shareholders’ preferred equity and related surplus | (2,404) | | | (2,404) | | | (2,404) | | | (2,494) | | | (2,494) | |
Accumulated other comprehensive loss | 2,911 | | | 2,879 | | | 2,676 | | | 3,622 | | | 3,006 | |
Goodwill and other intangibles, net of taxes | (5,561) | | | (5,575) | | | (5,591) | | | (5,605) | | | (5,620) | |
Deferred tax assets from tax loss and credit carryforwards | (49) | | | (48) | | | (41) | | | (14) | | | (14) | |
Common equity tier 1 capital | 14,521 | | | 14,283 | | | 14,212 | | | 14,211 | | | 13,885 | |
Additional tier 1 capital | | | | | | | | | |
Shareholders’ preferred equity and related surplus | 2,404 | | | 2,404 | | | 2,404 | | | 2,494 | | | 2,494 | |
| | | | | | | | | |
| | | | | | | | | |
Tier 1 capital | 16,925 | | | 16,687 | | | 16,616 | | | 16,705 | | | 16,379 | |
Long-term debt and other tier 2 qualifying instruments | 1,278 | | | 1,279 | | | 1,306 | | | 1,383 | | | 1,394 | |
Qualifying allowance for loan and lease losses | 1,743 | | | 1,747 | | | 1,735 | | | 1,758 | | | 1,767 | |
Tier 2 capital | 3,021 | | | 3,026 | | | 3,041 | | | 3,141 | | | 3,161 | |
Total risk-based capital | $ | 19,946 | | | $ | 19,713 | | | $ | 19,657 | | | $ | 19,846 | | | $ | 19,540 | |
Risk-weighted assets (RWA)(1) | $ | 139,374 | | | $ | 139,622 | | | $ | 138,706 | | | $ | 140,688 | | | $ | 141,432 | |
Common equity tier 1 risk-based capital ratio (1) | 10.4 | % | | 10.2 | % | | 10.2 | % | | 10.1 | % | | 9.8 | % |
Other regulatory capital data: | | | | | | | | | |
Tier 1 leverage ratio (1) | 8.8 | | | 8.9 | | | 9.3 | | | 9.4 | | | 9.0 | |
Tier 1 risk-based capital ratio (1) | 12.1 | | | 12.0 | | | 12.0 | | | 11.9 | | | 11.6 | |
Total risk-based capital ratio (1) | 14.3 | | | 14.1 | | | 14.2 | | | 14.1 | | | 13.8 | |
Non-regulatory capital data: | | | | | | | | | |
Tangible common equity / RWA ratio (1) | 8.2 | | | 8.1 | | | 8.1 | | | 7.3 | | | 7.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Reconciliation of Non-GAAP Measure (3) | | | | | | | | | |
Common equity tier 1 (CET1) capital (A) | $ | 14,521 | | | $ | 14,283 | | | $ | 14,212 | | | $ | 14,211 | | | $ | 13,885 | |
Add: Accumulated other comprehensive income (loss) (AOCI) | (2,911) | | | (2,879) | | | (2,676) | | | (3,622) | | | (3,006) | |
Less: AOCI cash flow hedge | (399) | | | (436) | | | (363) | | | (662) | | | (612) | |
Adjusted common equity tier 1 (B) | 12,009 | | | 11,840 | | | 11,899 | | | 11,251 | | | 11,491 | |
Risk weighted assets (C) | 139,374 | | | 139,622 | | | 138,706 | | | 140,688 | | | 141,432 | |
| | | | | | | | | |
CET1 ratio (A/C) | 10.4 | % | | 10.2 | % | | 10.2 | % | | 10.1 | % | | 9.8 | % |
Adjusted CET1 ratio (B/C) | 8.6 | | | 8.5 | | | 8.6 | | | 8.0 | | | 8.1 | |
(1)June 30, 2024 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 June 30, 2024 and March 31, 2024, 75% of the cumulative CECL deferral has been phased in. As of December 31, 2023, September 30, 2023, and June 30, 2023, 50% of the cumulative CECL deferral has been phased in.
(3)Huntington believes certain non-GAAP financial measures to be helpful in understanding Huntington’s results of operations. The following provides the comparable regulatory financial measure, as well as the reconciliation to the comparable regulatory financial measure.
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, |
| 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Cash dividends declared per common share | $ | 0.155 | | | $ | 0.155 | | | $ | 0.155 | | | $ | 0.155 | | | $ | 0.155 | |
Common shares outstanding (in millions): | | | | | | | | | |
Average - basic | 1,451 | | | 1,448 | | | 1,448 | | | 1,448 | | | 1,446 | |
Average - diluted | 1,474 | | | 1,473 | | | 1,469 | | | 1,468 | | | 1,466 | |
Ending | 1,452 | | | 1,449 | | | 1,448 | | | 1,448 | | | 1,448 | |
Tangible book value per common share (1) | $ | 7.89 | | | $ | 7.77 | | | $ | 7.79 | | | $ | 7.12 | | | $ | 7.33 | |
| | | | | | | | | |
| | | | | | | | | |
Non-regulatory capital
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
(dollar amounts in millions) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Calculation of tangible equity / asset ratio: | | | | | | | | | |
Total Huntington shareholders’ equity | $ | 19,515 | | | $ | 19,322 | | | $ | 19,353 | | | $ | 18,483 | | | $ | 18,788 | |
Goodwill and other intangible assets | (5,680) | | | (5,692) | | | (5,704) | | | (5,716) | | | (5,728) | |
| | | | | | | | | |
Deferred tax liability on other intangible assets (1) | 25 | | | 28 | | | 30 | | | 33 | | | 35 | |
Total tangible equity | 13,860 | | | 13,658 | | | 13,679 | | | 12,800 | | | 13,095 | |
Preferred equity | (2,394) | | | (2,394) | | | (2,394) | | | (2,484) | | | (2,484) | |
Total tangible common equity | $ | 11,466 | | | $ | 11,264 | | | $ | 11,285 | | | $ | 10,316 | | | $ | 10,611 | |
Total assets | $ | 196,310 | | | $ | 193,519 | | | $ | 189,368 | | | $ | 186,650 | | | $ | 188,505 | |
Goodwill and other intangible assets | (5,680) | | | (5,692) | | | (5,704) | | | (5,716) | | | (5,728) | |
Deferred tax liability on other intangible assets (1) | 25 | | | 28 | | | 30 | | | 33 | | | 35 | |
Total tangible assets | $ | 190,655 | | | $ | 187,855 | | | $ | 183,694 | | | $ | 180,967 | | | $ | 182,812 | |
Tangible equity / tangible asset ratio | 7.3 | % | | 7.3 | % | | 7.4 | % | | 7.1 | % | | 7.2 | % |
Tangible common equity / tangible asset ratio | 6.0 | % | | 6.0 | % | | 6.1 | % | | 5.7 | % | | 5.8 | % |
Other data: | | | | | | | | | |
Number of employees (Average full-time equivalent) | 19,889 | | | 19,719 | | | 19,612 | | | 19,826 | | | 20,200 | |
Number of domestic full-service branches (2) | 972 | | | 969 | | | 999 | | | 1,001 | | | 1,001 | |
ATM Count | 1,603 | | | 1,606 | | | 1,630 | | | 1,631 | | | 1,641 | |
(1)Deferred tax liability related to other intangible assets is calculated at a 21% tax rate.
(2)Includes Regional Banking and The Huntington Private Bank 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) | 2024 | | 2023 | | Amount | | Percent |
Assets | | | | | | | |
| | | | | | | |
| | | | | | | |
Interest-earning deposits with banks | $ | 10,439 | | | $ | 8,829 | | | $ | 1,610 | | | 18 | % |
Securities: | | | | | | | |
Trading account securities | 138 | | | 27 | | | 111 | | | NM |
Available-for-sale securities: | | | | | | | |
Taxable | 23,349 | | | 21,143 | | | 2,206 | | | 10 | |
Tax-exempt | 2,680 | | | 2,693 | | | (13) | | | — | |
Total available-for-sale securities | 26,029 | | | 23,836 | | | 2,193 | | | 9 | |
| | | | | | | |
| | | | | | | |
Held-to-maturity securities - taxable | 15,389 | | | 16,869 | | | (1,480) | | | (9) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other securities | 750 | | | 1,075 | | | (325) | | | (30) | |
Total securities | 42,306 | | | 41,807 | | | 499 | | | 1 | |
Loans held for sale | 515 | | | 505 | | | 10 | | | 2 | |
Loans and leases: (2) | | | | | | | |
Commercial: | | | | | | | |
Commercial and industrial | 51,175 | | | 49,615 | | | 1,560 | | | 3 | |
Commercial real estate: | | | | | | | |
Commercial | 11,306 | | | 12,171 | | | (865) | | | (7) | |
Construction | 1,057 | | | 1,340 | | | (283) | | | (21) | |
Commercial real estate | 12,363 | | | 13,511 | | | (1,148) | | | (8) | |
Lease financing | 5,076 | | | 5,181 | | | (105) | | | (2) | |
Total commercial | 68,614 | | | 68,307 | | | 307 | | | — | |
Consumer: | | | | | | | |
Residential mortgage | 23,809 | | | 22,547 | | | 1,262 | | | 6 | |
Automobile | 12,771 | | | 13,085 | | | (314) | | | (2) | |
Home equity | 10,064 | | | 10,206 | | | (142) | | | (1) | |
RV and marine | 5,929 | | | 5,422 | | | 507 | | | 9 | |
Other consumer | 1,466 | | | 1,318 | | | 148 | | | 11 | |
Total consumer | 54,039 | | | 52,578 | | | 1,461 | | | 3 | |
Total loans and leases | 122,653 | | | 120,885 | | | 1,768 | | | 1 | |
Total earning assets | 175,913 | | | 172,026 | | | 3,887 | | | 2 | |
Cash and due from banks | 1,416 | | | 1,619 | | | (203) | | | (13) | |
Goodwill and other intangible assets | 5,691 | | | 5,747 | | | (56) | | | (1) | |
All other assets | 11,697 | | | 10,602 | | | 1,095 | | | 10 | |
Allowance for loan and lease losses | (2,285) | | | (2,158) | | | (127) | | | (6) | |
Total assets | $ | 192,432 | | | $ | 187,836 | | | $ | 4,596 | | | 2 | % |
Liabilities and shareholders' equity | | | | | | | |
Interest-bearing deposits: | | | | | | | |
Demand deposits - interest-bearing | $ | 38,786 | | | $ | 40,211 | | | $ | (1,425) | | | (4) | % |
Money market deposits | 47,181 | | | 38,031 | | | 9,150 | | | 24 | |
Savings and other domestic deposits | 16,491 | | | 19,348 | | | (2,857) | | | (15) | |
Core certificates of deposit (3) | 13,949 | | | 7,292 | | | 6,657 | | | 91 | |
| | | | | | | |
Other domestic deposits of $250,000 or more | 455 | | | 286 | | | 169 | | | 59 | |
Negotiable CDS, brokered and other deposits | 5,521 | | | 4,659 | | | 862 | | | 19 | |
| | | | | | | |
Total interest-bearing deposits | 122,383 | | | 109,827 | | | 12,556 | | | 11 | |
Short-term borrowings | 1,257 | | | 4,809 | | | (3,552) | | | (74) | |
Long-term debt | 14,461 | | | 13,664 | | | 797 | | | 6 | |
Total interest-bearing liabilities | 138,101 | | | 128,300 | | | 9,801 | | | 8 | |
Demand deposits - noninterest-bearing | 29,770 | | | 36,023 | | | (6,253) | | | (17) | |
All other liabilities | 5,277 | | | 4,925 | | | 352 | | | 7 | |
Total Liabilities | 173,148 | | | 169,248 | | | 3,900 | | | 2 | |
Total Huntington shareholders’ equity | 19,234 | | | 18,539 | | | 695 | | | 4 | |
Non-controlling interest | 50 | | | 49 | | | 1 | | | 2 | |
Total equity | $ | 19,284 | | | $ | 18,588 | | | $ | 696 | | | 4 | |
Total liabilities and equity | $ | 192,432 | | | $ | 187,836 | | | $ | 8,496 | | | 2 | % |
(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) | 2024 | | 2023 |
Assets | | | |
| | | |
| | | |
Interest-earning deposits with banks | $ | 288 | | | $ | 222 | |
Securities: | | | |
Trading account securities | 4 | | | 1 | |
Available-for-sale securities: | | | |
Taxable | 618 | | | 484 | |
Tax-exempt | 68 | | | 62 | |
Total available-for-sale securities | 686 | | | 546 | |
Held-to-maturity securities - taxable | 188 | | | 204 | |
| | | |
| | | |
| | | |
Other securities | 19 | | | 21 | |
Total securities | 897 | | | 772 | |
Loans held for sale | 17 | | | 15 | |
Loans and leases: | | | |
Commercial: | | | |
Commercial and industrial | 1,630 | | | 1,432 | |
Commercial real estate: | | | |
Commercial | 429 | | | 424 | |
Construction | 44 | | | 52 | |
Commercial real estate | 473 | | | 476 | |
Lease financing | 161 | | | 139 | |
Total commercial | 2,264 | | | 2,047 | |
Consumer: | | | |
Residential mortgage | 459 | | | 390 | |
Automobile | 330 | | | 263 | |
Home equity | 391 | | | 368 | |
RV and marine | 150 | | | 121 | |
Other consumer | 86 | | | 75 | |
Total consumer | 1,416 | | | 1,217 | |
Total loans and leases | 3,680 | | | 3,264 | |
Total earning assets | $ | 4,882 | | | $ | 4,273 | |
Liabilities | | | |
Interest-bearing deposits: | | | |
Demand deposits - interest-bearing | $ | 406 | | | $ | 299 | |
Money market deposits | 855 | | | 427 | |
Savings and other domestic deposits | 22 | | | 9 | |
Core certificates of deposit (3) | 326 | | | 126 | |
| | | |
Other domestic deposits of $250,000 or more | 10 | | | 4 | |
Negotiable CDS, brokered and other deposits | 145 | | | 111 | |
| | | |
Total interest-bearing deposits | 1,764 | | | 976 | |
Short-term borrowings | 38 | | | 134 | |
Long-term debt | 455 | | | 388 | |
Total interest-bearing liabilities | 2,257 | | | 1,498 | |
| | | |
Net interest income | $ | 2,625 | | | $ | 2,775 | |
(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) | 2024 | | 2023 |
Assets | | | |
| | | |
| | | |
Interest-earning deposits with banks | 5.53 | % | | 5.03 | % |
Securities: | | | |
Trading account securities | 5.12 | | | 5.09 | |
Available-for-sale securities: | | | |
Taxable | 5.29 | | | 4.58 | |
Tax-exempt | 5.06 | | | 4.64 | |
Total available-for-sale securities | 5.27 | | | 4.59 | |
Held-to-maturity securities - taxable | 2.44 | | | 2.42 | |
| | | |
| | | |
| | | |
Other securities | 5.22 | | | 3.83 | |
Total securities | 4.24 | | | 3.69 | |
Loans held for sale | 6.68 | | | 5.96 | |
Loans and leases: (2) | | | |
Commercial: | | | |
Commercial and industrial | 6.29 | | | 5.74 | |
Commercial real estate: | | | |
Commercial | 7.51 | | | 6.93 | |
Construction | 8.31 | | | 7.67 | |
Commercial real estate | 7.58 | | | 7.01 | |
Lease financing | 6.27 | | | 5.35 | |
Total commercial | 6.52 | | | 5.96 | |
Consumer: | | | |
Residential mortgage | 3.86 | | | 3.46 | |
Automobile | 5.20 | | | 4.05 | |
Home equity | 7.81 | | | 7.28 | |
RV and marine | 5.08 | | | 4.51 | |
Other consumer | 11.83 | | | 11.39 | |
Total consumer | 5.26 | | | 4.66 | |
Total loans and leases | 5.97 | | | 5.39 | |
Total earning assets | 5.58 | % | | 5.01 | % |
Liabilities | | | |
Interest-bearing deposits: | | | |
Demand deposits - interest-bearing | 2.10 | % | | 1.50 | % |
Money market deposits | 3.65 | | | 2.27 | |
Savings and other domestic deposits | 0.27 | | | 0.09 | |
Core certificates of deposit (3) | 4.71 | | | 3.48 | |
| | | |
Other domestic deposits of $250,000 or more | 4.31 | | | 2.91 | |
Negotiable CDS, brokered and other deposits | 5.27 | | | 4.81 | |
| | | |
Total interest-bearing deposits | 2.90 | | | 1.79 | |
Short-term borrowings | 6.12 | | | 5.64 | |
Long-term debt | 6.29 | | | 5.67 | |
Total interest-bearing liabilities | 3.29 | | | 2.35 | |
| | | |
Net interest rate spread | 2.29 | | | 2.66 | |
Impact of noninterest-bearing funds on margin | 0.71 | | | 0.59 | |
Net interest margin | 3.00 | % | | 3.25 | % |
| | | | | | | | | | | |
Commercial Loan Derivative Impact | | | |
(Unaudited) | | | |
| YTD Average Rates |
| Six Months Ended June 30, |
Fully-taxable equivalent basis (1) | 2024 | | 2023 |
Commercial loans (2)(4) | 7.25 | % | | 6.62 | % |
Impact of commercial loan derivatives | (0.73) | | | (0.66) | |
Total commercial - as reported | 6.52 | % | | 5.96 | % |
Average 1 Month LIBOR | | | 4.85 | % |
Average SOFR | 5.32 | % | | 4.73 | % |
(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.
(2)Includes the impact of nonaccrual loans and leases.
(3)Includes consumer certificates of deposit of $250,000 or more.
(4)Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.
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) | 2024 | | 2023 | | Amount | | Percent |
Interest income | $ | 4,856 | | | $ | 4,253 | | | $ | 603 | | | 14 | % |
Interest expense | 2,257 | | | 1,498 | | | 759 | | | 51 | |
Net interest income | 2,599 | | | 2,755 | | | (156) | | | (6) | |
Provision for credit losses | 207 | | | 177 | | | 30 | | | 17 | |
Net interest income after provision for credit losses | 2,392 | | | 2,578 | | | (186) | | | (7) | |
Payments and cash management revenue | 300 | | | 283 | | | 17 | | | 6 | |
Wealth and asset management revenue | 178 | | | 163 | | | 15 | | | 9 | |
Customer deposit and loan fees | 160 | | | 152 | | | 8 | | | 5 | |
Capital markets and advisory fees | 129 | | | 127 | | | 2 | | | 2 | |
Leasing revenue | 41 | | | 51 | | | (10) | | | (20) | |
Mortgage banking income | 61 | | | 59 | | | 2 | | | 3 | |
Insurance income | 37 | | | 37 | | | — | | | — | |
Bank owned life insurance income | 33 | | | 32 | | | 1 | | | 3 | |
Gain on sale of loans | 7 | | | 11 | | | (4) | | | (36) | |
Net gains (losses) on sales of securities | — | | | (4) | | | 4 | | | 100 | |
Other noninterest income | 12 | | | 96 | | | (84) | | | (88) | |
Total noninterest income | 958 | | | 1,007 | | | (49) | | | (5) | |
Personnel costs | 1,302 | | | 1,262 | | | 40 | | | 3 | |
Outside data processing and other services | 331 | | | 299 | | | 32 | | | 11 | |
Deposit and other insurance expense | 79 | | | 43 | | | 36 | | | 84 | |
Equipment | 132 | | | 128 | | | 4 | | | 3 | |
Net occupancy | 108 | | | 114 | | | (6) | | | (5) | |
Marketing | 55 | | | 57 | | | (2) | | | (4) | |
Professional services | 51 | | | 37 | | | 14 | | | 38 | |
Amortization of intangibles | 24 | | | 26 | | | (2) | | | (8) | |
Lease financing equipment depreciation | 8 | | | 16 | | | (8) | | | (50) | |
Other noninterest expense | 164 | | | 154 | | | 10 | | | 6 | |
Total noninterest expense | 2,254 | | | 2,136 | | | 118 | | | 6 | |
Income before income taxes | 1,096 | | | 1,449 | | | (353) | | | (24) | |
Provision for income taxes | 192 | | | 278 | | | (86) | | | (31) | |
Income after income taxes | 904 | | | 1,171 | | | (267) | | | (23) | |
Income attributable to non-controlling interest | 11 | | | 10 | | | 1 | | | 10 | |
Net income attributable to Huntington | 893 | | | 1,161 | | | (268) | | | (23) | |
Dividends on preferred shares | 71 | | | 69 | | | 2 | | | 3 | |
| | | | | | | |
Net income applicable to common shares | $ | 822 | | | $ | 1,092 | | | $ | (270) | | | (25) | % |
Average common shares - basic | 1,450 | | | 1,445 | | | 5 | | | — | |
Average common shares - diluted | 1,474 | | | 1,468 | | | 6 | | | — | |
Per common share | | | | | | | |
Net income - basic | $ | 0.57 | | | $ | 0.76 | | | $ | (0.19) | | | (25) | % |
Net income - diluted | 0.56 | | | 0.74 | | | (0.18) | | | (24) | |
Cash dividends declared | 0.31 | | | 0.31 | | | — | | | — | |
Revenue - fully taxable equivalent (FTE) | | | | | | | |
Net interest income | $ | 2,599 | | | $ | 2,755 | | | $ | (156) | | | (6) | % |
FTE adjustment | 26 | | | 20 | | | 6 | | | 30 | |
Net interest income (1) | 2,625 | | | 2,775 | | | (150) | | | (5) | |
Noninterest income | 958 | | | 1,007 | | | (49) | | | (5) | |
Total revenue (1) | $ | 3,583 | | | $ | 3,782 | | | $ | (199) | | | (5) | % |
(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) | 2024 | | 2023 | | Amount | | Percent |
Net origination and secondary marketing income | $ | 33 | | | $ | 39 | | | $ | (6) | | | (15) | % |
Net mortgage servicing income | | | | | | | |
Loan servicing income | 50 | | | 46 | | | 4 | | | 9 | |
Amortization of capitalized servicing | (25) | | | (22) | | | (3) | | | (14) | |
Operating income | 25 | | | 24 | | | 1 | | | 4 | |
MSR valuation adjustment (1) | 31 | | | 3 | | | 28 | | | 933 | |
(Losses) gains due to MSR hedging | (29) | | | (6) | | | (23) | | | (383) | |
Net MSR risk management | 2 | | | (3) | | | 5 | | | — | |
Total net mortgage servicing income | 27 | | | 21 | | | 6 | | | 29 | |
All other | 1 | | | (1) | | | 2 | | | 200 | |
Mortgage banking income | $ | 61 | | | $ | 59 | | | $ | 2 | | | 3 | % |
| | | | | | | |
Mortgage origination volume | $ | 3,440 | | | $ | 3,916 | | | $ | (476) | | | (12) | % |
Mortgage origination volume for sale | 2,025 | | | 2,048 | | | (23) | | | (1) | |
| | | | | | | |
Third party mortgage loans serviced (2) | 33,404 | | | 32,712 | | | 692 | | | 2 | |
Mortgage servicing rights (2) | 543 | | | 505 | | | 38 | | | 8 | |
MSR % of investor servicing portfolio (2) | 1.63 | % | | 1.55 | % | | 0.08 | % | | 5 | % |
(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) | 2024 | | 2023 |
Allowance for loan and lease losses, beginning of period | $ | 2,255 | | | $ | 2,121 | |
| | | |
Loan and lease charge-offs | (273) | | | (191) | |
Recoveries of loans and leases previously charged off | 91 | | | 85 | |
Net loan and lease charge-offs | (182) | | | (106) | |
Provision for loan and lease losses | 231 | | | 162 | |
| | | |
| | | |
Allowance for loan and lease losses, end of period | 2,304 | | | 2,177 | |
Allowance for unfunded lending commitments, beginning of period | $ | 145 | | | $ | 150 | |
| | | |
Provision for unfunded lending commitments | (26) | | | 15 | |
| | | |
| | | |
Allowance for unfunded lending commitments, end of period | 119 | | | 165 | |
Total allowance for credit losses, end of period | $ | 2,423 | | | $ | 2,342 | |
Allowance for loan and lease losses (ALLL) as % of: | | | |
Total loans and leases | 1.85 | % | | 1.80 | % |
Nonaccrual loans and leases (NALs) | 314 | | | 427 | |
Nonperforming assets (NPAs) | 296 | | | 391 | |
Total allowance for credit losses (ACL) as % of: | | | |
Total loans and leases | 1.95 | % | | 1.93 | % |
Nonaccrual loans and leases (NALs) | 331 | | | 459 | |
Nonperforming assets (NPAs) | 311 | | | 420 | |
Huntington Bancshares Incorporated
Year To Date Net Charge-Off Analysis
(Unaudited)
| | | | | | | | | | | |
| Six Months Ended June 30, |
(dollar amounts in millions) | 2024 | | 2023 |
Net charge-offs (recoveries) by loan and lease type: | | | |
Commercial: | | | |
Commercial and industrial | $ | 63 | | | $ | 36 | |
| | | |
| | | |
| | | |
Commercial real estate | 49 | | | 25 | |
Lease financing | — | | | (5) | |
Total commercial | 112 | | | 56 | |
Consumer: | | | |
Residential mortgage | 1 | | | 1 | |
Automobile | 15 | | | 8 | |
Home equity | — | | | (1) | |
RV and marine | 9 | | | 4 | |
Other consumer | 45 | | | 38 | |
Total consumer | 70 | | | 50 | |
Total net charge-offs | $ | 182 | | | $ | 106 | |
| | | |
| | | |
| Six Months Ended June 30, |
| 2024 | | 2023 |
Net charge-offs (recoveries) - annualized percentages: | | | |
Commercial: | | | |
Commercial and industrial | 0.24 | % | | 0.14 | % |
| | | |
| | | |
| | | |
Commercial real estate | 0.79 | | | 0.37 | |
Lease financing | 0.01 | | | (0.19) | |
Total commercial | 0.33 | | | 0.16 | |
Consumer: | | | |
Residential mortgage | 0.01 | | | 0.01 | |
Automobile | 0.24 | | | 0.12 | |
Home equity | — | | | (0.02) | |
RV and marine | 0.31 | | | 0.16 | |
Other consumer | 6.18 | | | 5.76 | |
Total consumer | 0.26 | | | 0.19 | |
Net charge-offs as a % of average loans | 0.30 | % | | 0.17 | % |
Huntington Bancshares Incorporated
Year To Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)
| | | | | | | | | | | |
| June 30, |
(dollar amounts in millions) | 2024 | | 2023 |
Nonaccrual loans and leases (NALs): | | | |
Commercial and industrial | $ | 346 | | | $ | 267 | |
Commercial real estate | 194 | | | 75 | |
Lease financing | 13 | | | 15 | |
Residential mortgage | 80 | | | 73 | |
Automobile | 4 | | | 4 | |
Home equity | 95 | | | 75 | |
RV and marine | 1 | | | 1 | |
| | | |
Total nonaccrual loans and leases | 733 | | | 510 | |
| | | |
| | | |
| | | |
Other real estate, net | 10 | | | 18 | |
Other NPAs (1) | 37 | | | 29 | |
Total nonperforming assets (2) | $ | 780 | | | $ | 557 | |
| | | |
Nonaccrual loans and leases as a % of total loans and leases | 0.59 | % | | 0.42 | % |
NPA ratio (3) | 0.63 | | | 0.46 | |
| | | | | | | | | | | |
| Six Months Ended June 30, |
(dollar amounts in millions) | 2024 | | 2023 |
Nonperforming assets, beginning of period | $ | 711 | | | $ | 594 | |
New nonperforming assets | 579 | | | 425 | |
| | | |
| | | |
Returns to accruing status | (123) | | | (107) | |
Charge-offs | (146) | | | (96) | |
Payments | (237) | | | (242) | |
Sales | (4) | | | (17) | |
Nonperforming assets, end of period (3) | $ | 780 | | | $ | 557 | |
(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.
(2)Nonaccruing troubled debt restructured loans are included in the total nonperforming assets balance.
(3)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.
v3.24.2
Cover Page
|
Jul. 19, 2024 |
Entity Information [Line Items] |
|
Document Type |
8-K
|
Document Period End Date |
Jul. 19, 2024
|
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
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_SeriesHPreferredStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=hban_SeriesIPreferredStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=hban_SeriesJPreferredStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
Huntington Bancshares (NASDAQ:HBANP)
過去 株価チャート
から 6 2024 まで 7 2024
Huntington Bancshares (NASDAQ:HBANP)
過去 株価チャート
から 7 2023 まで 7 2024