We are a multi-state diversified regional bank holding company organized under Maryland law in 1966 and headquartered in Columbus, Ohio. Through the Bank, we have over 150 years of servicing the financial needs of our customers. Through our subsidiaries, we provide full-service commercial and consumer banking services, mortgage banking services, automobile financing, recreational vehicle and marine financing, equipment financing, investment management, trust services, brokerage services, insurance products and services, and other financial products and services. Our 839814 full-service branches and private client group offices are located in Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. Select financial services and other activities are also conducted in various other states. International banking services are available through the headquarters office in Columbus, Ohio. Our foreign banking activities, in total or with any individual country, are not significant.

This MD&A provides information we believe necessary for understanding our financial condition, changes in financial condition, results of operations, and cash flows. The MD&A included in our 20192020 Form 10-K should be read in conjunction with this MD&A as this discussion provides only material updates to the 20192020 Form 10-K. This MD&A should also be read in conjunction with the Unaudited Condensed Consolidated Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, and other information contained in this report.

For the quarter, we reported net income of $150$532 million, or $0.13$0.48 per common share, compared with $364$48 million, or $0.33$0.03 per common share, in the year-ago quarter.

Fully-taxable equivalent net interest income was $797$978 million, down $22up $182 million, or 3%.23%, from the year-ago quarter. This increase reflected the benefit from the $12.3 billion, or 12%, increase in average earning assets and a 3734 basis point decreaseincrease in the FTE net interest margin to 2.94%, partially offset by the benefit from the $9.9 billion, or 10%, increase in average earning assets.3.48%.

The provision for credit losses increased $268decreased $501 million year-over-year to $327$(60) million in the 2020 second2021 first quarter. Net charge-offs increased $59decreased $53 million to $107$64 million. The oilBoth Commercial NCOs of $49 million and gas portfolio accounted for approximately $60 million of the $80 million of commercial NCOs, nearly all of which resulted from charge-offs on loans sold in the quarter or under contract to be sold. Consumer NCOs of $27$15 million were down on both a year-over-year and linked quarter basis. Total NCOs represented an annualized 0.54%0.32% of average loans and leases in the current quarter, updown from 0.25%0.62% in the year-ago quarter.

Noninterest income was $391$395 million, up $17$34 million, or 5%9%, from the year ago quarter. Mortgage banking income increased $62$42 million, or 182%72%. Partially offsetting this increase,these increases, service charges on deposit accounts decreased $32$18 million, or 35%, other noninterest income decreased $8 million, or 14%, and gain on sale21%.

Noninterest expense for the 2020 second2021 first quarter decreased $25increased $141 million, or 4%22%, from the year-ago quarter.quarter Personnel costs increased $73 million, or 18%. Outside data processing and other services increased $30 million, or 35%. Other noninterest expense decreased $15increased $22 million, or 24%43%, and personnel costs decreased $10primarily reflecting a $25 million or 2%.

Common Equity Tier 1 risk-based capital ratio was 9.84%10.33%, downup from 9.88%9.47% a year ago. The regulatory Tier 1 risk-based capital ratio was 11.79%13.32% compared to 11.28%10.81% at June 30, 2019.March 31, 2020. The increase in regulatory capital ratios was driven by earnings, adjusted for the CECL transition, offset by the repurchase of $5 million of common stock over the last four quarters (all during 2020 fourth quarter) and cash dividends. The balance sheet growth we experiencedimpact on regulatory capital ratios was driven predominatelylargely offset by a change in asset mix during 2020 related to the PPP loans and elevated deposits at the Federal Reserve, both of which are 0% risk weighted, and as such did not have a material impact on the regulatory capital ratios. The capital impact of the repurchase of $352 million of common stock over the last four quarters (none in the 2020 second quarter) and cash dividends effectively offset earnings, adjusted for the CECL transition, on a year-over-year basis.weighted. The regulatory Tier 1 risk-based capital ratio also reflects the issuance of $500 million of Series F preferred stock, $500 million of Series G preferred stock and $500 million of Series H preferred stock in the 2020 second quarter.quarter, 2020 third quarter, and 2021 first quarter, respectively.

The COVID-19 pandemic has caused and continues to cause significant, unprecedented disruption that affects daily living and negatively impacts the global economy. The pandemic has resulted in temporary closures of many businesses and the institution of social distancing and shelter in place requirements in many states and communities, increasing unemployment levels and causing volatility in the financial markets. As further discussed in “Discussion of Results of Operations,” the reduction incurrent interest rates,rate environment, borrower and counterparty credit deteriorationquality and market volatility, among other factors, had negativecontinue to impact on our current quarter performance. Though we are unable to estimate the magnitude, we expect the pandemic and related globalthe resulting economic crisisenvironment will adverselycontinue to affect our future operating results.

Huntington was able to react quickly to thesethe changes required by the pandemic because of the commitment and flexibility of its workforce coupled with well-prepared business continuity plans. To ensure the safety of our branch colleagues, while still meeting the needs of our customers, we moved to use of branches with drive-thru only, with in-person meetings by appointment during shelter-in-place orders. For other colleagues, we have implemented a work-from-home approach with increased communication to keep them informed, engaged, productive and connected. Additional benefits have been provided, including medical, emergency paid time off and other programs for those whose families have been directly impacted by the virus. While state and local governments have started to easeeased temporary business closures and shelter in place requirements and we have opened our branches, we expect a large portion of our colleagues who have been operating remotely to continue for a period of time. While the approved vaccines are being administered throughout our footprint, it remains unknown when, or if, there will continuebe a return to operate remotely.historical norms of economic and social activity.

For our customers, we have established a variety of temporary relief programs which include loan payment deferrals, late fee and overdraft waivers and the suspension of foreclosure and repossessions. We continue to work with our customers to originate and renew business loans as well as originate loans made available through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), a lending program established as part of the relief to American consumers and businesses in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Several subsequent congressional acts have reopened and extended the PPP loan program. During the 2021 first quarter, we have processed over 17,000 applications totaling approximately $1.8 billion under the reopened PPP.