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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31,June 30, 2021
hban-20210630_g1.jpg
Huntington Bancshares Incorporated
(Exact name of registrant as specified in its charter)
Maryland1-3407331-0724920
(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
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 5.875% Series C Non-Cumulative, perpetual preferred stock)HBANNNASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 6.250% Series D Non-Cumulative, perpetual preferred stock)HBANONASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 4.500% Series H Non-Cumulative, perpetual preferred stock)HBANPNASDAQ
Depositary Shares (each representing a 1/100th interest in a share of 5.70% Series I Non-Cumulative, perpetual preferred stock)HBANMNASDAQ
Common Stock—Par Value $0.01 per ShareHBANNASDAQ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.     x  Yes    ☐  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     x  Yes    ☐  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerxAccelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     ☐  Yes    x  No
There were 1,018,052,9231,476,557,426 shares of the registrant’s common stock ($0.01 par value) outstanding on March 31,June 30, 2021.

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HUNTINGTON BANCSHARES INCORPORATED
INDEX
 
Item 1. Financial Statements (Unaudited)
4147
Condensed Consolidated Balance Sheets at March 31,June 30, 2021 and December 31, 2020
4147
Condensed Consolidated Statements of Income for the three months and six months ended March 31,June 30, 2021 and 2020
4248
Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended March 31,June 30, 2021 and 2020
4349
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months and six months ended March 31,June 30, 2021 and 2020
4450
Condensed Consolidated Statements of Cash Flows for the threesix months ended March 31,June 30, 2021 and 2020
4552
Notes to Unaudited Condensed Consolidated Financial Statements
4754
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
5
Executive Overview
5
Discussion of Results of Operations
7
Risk Management and Capital:
1520
Credit Risk
1621
Market Risk
2330
Liquidity Risk
2733
Operational Risk
2935
Compliance Risk
3036
Capital
3036
Business Segment Discussion
3238
Additional Disclosures
3643
Item 3. Quantitative and Qualitative Disclosures about Market Risk
81100
Item 4. Controls and Procedures
81100
Item 1. Legal Proceedings
81100
Item 1A. Risk Factors
81100
Item 6. Exhibits
82102
83103
2 Huntington Bancshares Incorporated
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Glossary of Acronyms and Terms

The following listing provides a comprehensive reference of common acronyms and terms used throughout the document:
 
ACL  Allowance for Credit Losses
AFS  Available-for-Sale
ALLL  Allowance for Loan and Lease Losses
AOCIAccumulated Other Comprehensive Income
ASC  Accounting Standards Codification
AULC  Allowance for Unfunded LoanLending Commitments
Basel III  Refers to the final rule issued by the FRB and OCC and published in the Federal Register on October 11, 2013
CARES ActCoronavirus Aid, Relief, and Economic Security Act, as amended
C&I  Commercial and Industrial
CCARComprehensive Capital Analysis and Review
CDs  Certificates of Deposit
CDICore Deposit Intangible
CECLCurrent Expected Credit Loss
CET1Common Equity Tier 1 on a Basel III basis
CFPB  Bureau of Consumer Financial Protection
CMO  Collateralized Mortgage Obligations
COVID-19Coronavirus Disease 2019
CRE  Commercial Real Estate
EADExposure at Default
EVE  Economic Value of Equity
FASBFinancial Accounting Standards Board
FDIC  Federal Deposit Insurance Corporation
FHLB  Federal Home Loan Bank of Cincinnati
FICO  Fair Isaac Corporation
FRB  Federal Reserve Board
FTE  Fully-Taxable Equivalent
FTP  Funds Transfer Pricing
FVOFair Value Option
GAAP  Generally Accepted Accounting Principles in the United States of America
HTM  Held-to-Maturity
IRS  Internal Revenue Service
Last-of-LayerLast-of-layer is a fair value hedge of the interest rate risk of a portfolio of similar prepayable assets whereby the last dollar amount within the portfolio of assets is identified as the hedged item
LCRLGDLiquidity Coverage RatioLoss Given Default
LIBOR  London Interbank Offered Rate
LIHTC  Low Income Housing Tax Credit
MBS  Mortgage-Backed Securities
MD&A  Management’s Discussion and Analysis of Financial Condition and Results of Operations
MSR  Mortgage Servicing Right
NAICS  North American Industry Classification System
NALs  Nonaccrual Loans
NCO  Net Charge-off
NII  NoninterestNet Interest Income
NIM  Net Interest Margin
NPAs  Nonperforming Assets
2021 1Q Form 10-Q 3

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OCC  Office of the Comptroller of the Currency
OCI  Other Comprehensive Income (Loss)
2021 2Q Form 10-Q 3

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OLEM  Other Loans Especially Mentioned
OREOOther Real Estate Owned
PCDPurchased-Credit-DeterioratedPurchased Credit Deteriorated
PDProbability of Default
PPPPaycheck Protection Program
PPPLFPaycheck Protection Program Liquidity Facility
RBHPCG  Regional Banking and The Huntington Private Client Group
ROCRisk Oversight Committee
SBASmall Business Administration
SEC  Securities and Exchange Commission
TCFTCF Financial Corporation
TDR  Troubled Debt Restructuring
U.S. Treasury  U.S. Department of the Treasury
UCSUPBUniform Classification SystemUnpaid principal balance
VIE  Variable Interest Entity
XBRL  eXtensible Business Reporting Language

4 Huntington Bancshares Incorporated
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PART I. FINANCIAL INFORMATION
When we refer to “we”, “our”, and “us”, “Huntington”, and “the Company” in this report, we mean Huntington Bancshares Incorporated and our consolidated subsidiaries, unless the context indicates that we refer only to the parent company, Huntington Bancshares Incorporated. When we refer to the “Bank” in this report, we mean our only bank subsidiary, The Huntington National Bank, and its subsidiaries.
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations
INTRODUCTION
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, inventory finance, investment management, trust services, brokerage services, insurance products and services, and other financial products and services. Our 8141,239 full-service branches and private client group offices are primarily located in Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, South Dakota, West Virginia and West Virginia.Wisconsin. 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.
On December 13, 2020, we announced the signing of a definitive merger agreement (the “TCF/Huntington Merger Agreement”). Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, TCF Financial Corporation, the parent company of TCF National Bank will merge into Huntington in an all-stock transaction. TCF is a financial holding company headquartered in Detroit, Michigan with reported total assets of $47.8 billion based on their balance sheet at December 31, 2020.
Under the terms of the Merger Agreement, TCF shareholders will receive 3.0028 shares of Huntington common stock for each share of TCF common stock. Holders of TCF common stock will also receive cash in lieu of fractional shares. Each outstanding share of 5.70% Series C Non-Cumulative Perpetual Preferred Stock of TCF will be converted into the right to receive one share of a newly created series of preferred stock of Huntington.
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 2020 Annual Report on Form 10-K should be read in conjunction with this MD&A as this discussion provides only material updates to the 2020 Annual Report on 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.
EXECUTIVE OVERVIEW
Acquisition of TCF Financial Corporation
On June 9, 2021, Huntington closed the acquisition of TCF Financial Corporation in an all-stock transaction valued at $7.2 billion. TCF was a financial holding company headquartered in Detroit, Michigan with operations across the Midwest. The acquisition added depth in existing markets and new markets for expansion and brings complimentary businesses together to drive synergies and growth. Historical periods prior to June 9, 2021 reflect results of legacy Huntington operations. Subsequent to closing, results reflect all post-acquisition activity. For further information, refer to Note 2 “Acquisition of TCF Financial Corporation” of the Notes to Unaudited Condensed Consolidated Financial Statements.
Summary of 2021 FirstSecond Quarter Results Compared to 2020 FirstSecond Quarter
For the quarter, we reported net loss of $15 million, compared with net income of $532$150 million or $0.48in the year-ago quarter. Loss per common share compared with $48 million, or $0.03for the 2021 second quarter was ($0.05), down $0.18 from earnings of $0.13 per common share, in the year-ago quarter. The reported net loss was impacted by TCF acquisition-related expenses totaling $269 million, or $218 million, after tax ($(0.19) per common share), in addition to the TCF acquisition initial provision for credit losses of $294 million, or $239 million after tax ($(0.21) per common share).
Fully-taxable equivalentNet interest income was $838 million, up $46 million, or 6% from the year-ago quarter. FTE net interest income was $978$844 million, up $182$47 million, or 23%6%, from the year-ago quarter. ThisThe increase in FTE net interest income reflected the benefit from the $12.3$18.4 billion, or 12%17%, increase in average earning assets, andpartially offset by a 3428 basis point increasedecrease in the FTE net interest margin to 3.48%2.66%. Average earning asset growth included a $7.2 billion, or 9%, increase in average loans and leases and a $6.5 billion, or 27% increase in average securities, both of which were impacted by the late-quarter TCF acquisition.
The provision for credit losses decreased $501$116 million year-over-year to $(60)$211 million in the 2021 firstsecond quarter. Net charge-offs decreased $53 million to $64 million. Both Commercial NCOs of $49 million and Consumer NCOs of $15 million were down on both a year-over-year basis. Total NCOs represented an annualized 0.32% of average loans and leasesThe decrease reflected the benefit from improvement in the current quarter, down from 0.62%macro economic forecast and reduction in risk profiles, partially offset by $294 million of TCF acquisition initial provision for credit losses for the year-ago quarter.
Noninterest income was $395 million, up $34 million, or 9%, from the year ago quarter. Mortgage banking income increased $42 million, or 72%. Partially offsetting these increases, service charges on deposit accounts decreased $18 million, or 21%.acquired non-PCD loan and
2021 1Q2Q Form 10-Q 5

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lease portfolio and unfunded lending commitments. NCOs decreased $45 million to $62 million. Both Commercial NCOs of $59 million and Consumer NCOs of $3 million were down on a year-over-year basis. Total NCOs represented an annualized 0.28% of average loans and leases in the current quarter, down from 0.54% in the year-ago quarter.
Noninterest expense for the 2021 first quarter increased $141income was $444 million, up $53 million, or 22%14%, and noninterest expense increased $397 million, or 59%, from the year-ago quarter Personnel costs increased $73 million, or 18%. Outside data processingyear ago quarter. The increases in both noninterest income and other services increased $30 million, or 35%. Other noninterest expense increased $22 million, or 43%,were primarily reflecting a $25 million donation to The Columbus Foundation.impacted by the late-quarter acquisition of TCF.
Common Equity Tier 1 risk-based capital ratio was 10.33%9.97%, up from 9.47%9.84% a year ago. The regulatory Tier 1 risk-based capital ratio was 13.32%12.24% compared to 10.81%11.79% at March 31,June 30, 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 impact on regulatory capital ratiosas a result of the TCF acquisition was largely offset by athe common stock issued related to the acquisition, net of goodwill and intangibles, as well as the change in asset mix during 2020 related to the PPP loans and elevated deposits at the Federal Reserve bothBank (both of which are 0% risk weighted.weighted). The regulatory Tier 1 risk-based capital ratioand total risk-based capital ratios also reflectsreflect the issuance of $500 million of Series F preferred stock, $500 million of Series G preferred stock andin the 2020 third quarter, $500 million of Series H preferred stock in the 2020 second quarter, 2020 third quarter, and 2021 first quarter, respectively.and the issuance of $175 million of Series I preferred stock in the 2021 second quarter resulting from the conversion of TCF preferred stock.
Subsequent to quarter end, Huntington redeemed $600 million of Series D preferred stock on July 15, 2021, which represented all of the Series D preferred stock issued and outstanding.
In addition, subsequent to quarter end, the Board approved the repurchase of up to $800 million of common shares over the next four quarters. Purchases of common stock under the authorization may include open market purchases, privately negotiated transactions, and accelerated share repurchase programs.
Business Overview
General
Our general business objectives are:
•ConsistentPursue consistent organic revenue and balance sheet growth.
•Invest in our businesses, particularly technology and risk management.
•Deliver positive long-term operating leverage.
•Maintain aggregate moderate-to-low risk appetite.
•DisciplinedExecute disciplined capital management.
COVID-19
The COVID-19 pandemic continues to cause significant, unprecedented disruption that affects daily living and negatively impacts the economy. As further discussed in “Discussion of Results of Operations,” the current interest rate environment, borrowervolatility in the markets and counterparty credit quality and market volatility, among other factors,lingering economic uncertainty caused by the pandemic continue to impact our performance. Though we are unable to estimate the magnitude, we expect the pandemic and the resulting economic environment will continue to affect our future operating results.
Huntington was able to react quickly to the changes required by the pandemic because of the commitment and flexibility of its workforce coupled with well-prepared business continuity plans. While state and local governmentsOur branches have eased temporary business closuresreopened and we have openedare making plans for colleagues to safely return to our branches, we expect our colleagues who have been operating remotelyoffices in a phased approach. We continue to continue formonitor the impact of the resurgence of the virus and evolving guidelines which contributes a periodlevel of time. While the approved vaccines are being administered throughout our footprint, it remains unknownuncertainty to when or if, there will be a return to historical norms of economic and social activity.
We continue to workThroughout the pandemic, we worked 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”),SBA 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”).Act. Several subsequent congressional acts have reopened and extended the PPP loan program. During the 2021 firstsecond quarter, we continued to work with our customers who applied for and received PPP loan forgiveness. Through June 2021, $5.5 billion of the PPP loans have processed over 17,000 applications totaling approximately $1.8been forgiven by the SBA of the original $11.4 billion under the reopened PPP.
Pending acquisition of TCF Financial Corporation
In late March 2021,PPP loans originated by both Huntington and TCF shareholders approved the proposed merger of TCF with and into Huntington. The integration planning continuesprior to proceed as expected. We expect that the transaction will be completed late in the second quarter of 2021, subject to regulatory approval and the satisfaction of other customary closing conditions set forth in the merger agreement.acquisition.
Economy
Our firstsecond quarter results reflected a very strong beginning to what will be an important year for Huntington. The economic recovery continues to gain its footing, and wesolid fundamental performance. We are seeing encouraging signs across our footprintof the economic recovery, and our individual businesses.customer activity is starting to normalize. Our lending pipelines are uphave continued to grow across the board, and customer sentiment is improving —supporting our view of increased loan demand later this year.
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supporting our confidence in more robust loan demand later in the year. Additionally, we continue to see strong core deposit inflows and expect this elevated level of liquidity will remain for some time.
DISCUSSION OF RESULTS OF OPERATIONS
This section provides a review of financial performance from a consolidated perspective. It also includes a “Significant Items” section (See Non-GAAP Financial Measures) that summarizes key issues important for a complete understanding of performance trends. Key Unaudited Condensed Consolidated Balance Sheet and Unaudited Condensed Statement of Income trends are discussed. All earnings per share data are reported on a diluted basis. For additional insight on financial performance, please read this section in conjunction with the “Business Segment Discussion”.
2021 1Q2Q Form 10-Q 7

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Table 1 - Selected Quarterly Income Statement DataTable 1 - Selected Quarterly Income Statement DataTable 1 - Selected Quarterly Income Statement Data
Three Months Ended Three Months Ended
March 31,December 31,September 30,June 30,March 31,June 30,March 31,June 30,
(amounts in millions, except per share data)(amounts in millions, except per share data)20212020202020202020(amounts in millions, except per share data)202120212020
Interest incomeInterest income$869 $878 $892 $902 $975 Interest income$935 $869 $902 
Interest expenseInterest expense(103)53 75 110 185 Interest expense97 (103)110 
Net interest incomeNet interest income972 825 817 792 790 Net interest income838 972 792 
Provision for credit losses(60)103 177 327 441 
Net interest income after provision for credit losses1,032 722 640 465 349 
Provision (benefit) for credit lossesProvision (benefit) for credit losses211 (60)327 
Net interest income after provision (benefit) for credit lossesNet interest income after provision (benefit) for credit losses627 1,032 465 
Mortgage banking incomeMortgage banking income100 90 122 96 58 Mortgage banking income67 100 96 
Service charges on deposit accountsService charges on deposit accounts69 78 76 60 87 Service charges on deposit accounts88 69 60 
Card and payment processing incomeCard and payment processing income65 65 66 59 58 Card and payment processing income80 65 59 
Trust and investment management servicesTrust and investment management services52 49 48 45 47 Trust and investment management services56 52 45 
Leasing revenueLeasing revenue12 4 7 
Capital markets feesCapital markets fees29 34 27 31 33 Capital markets fees35 29 31 
Insurance incomeInsurance income27 25 24 25 23 Insurance income25 27 25 
Bank owned life insurance incomeBank owned life insurance income16 14 17 17 16 Bank owned life insurance income16 16 17 
Gain on sale of loansGain on sale of loans3 13 13 8 8 Gain on sale of loans3 3 8 
Net (losses) gains on sales of securities— — — (1)— 
Net gains (losses) on sales of securitiesNet gains (losses) on sales of securities10 — (1)
Other noninterest incomeOther noninterest income34 41 37 51 31 Other noninterest income52 30 44 
Total noninterest incomeTotal noninterest income395 409 430 391 361 Total noninterest income444 395 391 
Personnel costsPersonnel costs468 426 453 418 395 Personnel costs592 468 418 
Outside data processing and other servicesOutside data processing and other services115 111 98 90 85 Outside data processing and other services162 115 90 
EquipmentEquipment46 49 44 46 41 Equipment55 46 46 
Net occupancyNet occupancy42 39 40 39 40 Net occupancy72 42 39 
Lease financing equipment depreciationLease financing equipment depreciation5 — 1 
Professional servicesProfessional services17 21 12 11 11 Professional services48 17 11 
Amortization of intangiblesAmortization of intangibles10 10 10 10 11 Amortization of intangibles11 10 10 
MarketingMarketing14 15 9 5 9 Marketing15 14 5 
Deposit and other insurance expenseDeposit and other insurance expense8 8 6 9 9 Deposit and other insurance expense8 8 9 
Other noninterest expenseOther noninterest expense73 77 40 47 51 Other noninterest expense104 73 46 
Total noninterest expenseTotal noninterest expense793 756 712 675 652 Total noninterest expense1,072 793 675 
Income before income taxes634 375 358 181 58 
(Loss) income before income taxes(Loss) income before income taxes(1)634 181 
Provision for income taxesProvision for income taxes102 59 55 31 10 Provision for income taxes14 102 31 
Net income532 316 303 150 48 
(Loss) income after income taxes(Loss) income after income taxes(15)532 150 
Income attributable to non-controlling interestIncome attributable to non-controlling interest— — — 
Net (loss) income attributable to Huntington Bancshares IncNet (loss) income attributable to Huntington Bancshares Inc(15)532 150 
Dividends on preferred sharesDividends on preferred shares31 35 28 19 18 Dividends on preferred shares43 31 19 
Net income applicable to common shares$501 $281 $275 $131 $30 
Net (loss) income applicable to common sharesNet (loss) income applicable to common shares$(58)$501 $131 
Average common shares—basicAverage common shares—basic1,018 1,017 1,017 1,016 1,018 Average common shares—basic1,125 1,018 1,016 
Average common shares—dilutedAverage common shares—diluted1,041 1,036 1,031 1,029 1,035 Average common shares—diluted1,125 1,041 1,029 
Net income per common share—basic$0.49 $0.28 $0.27 $0.13 $0.03 
Net income per common share—diluted0.48 0.27 0.27 0.13 0.03 
Net (loss) income per common share—basicNet (loss) income per common share—basic$(0.05)$0.49 $0.13 
Net (loss) income per common share—dilutedNet (loss) income per common share—diluted(0.05)0.48 0.13 
Return on average total assetsReturn on average total assets1.76 %1.04 %1.01 %0.51 %0.17 %Return on average total assets(0.05)%1.76 %0.51 %
Return on average common shareholders’ equityReturn on average common shareholders’ equity18.7 10.4 10.2 5.0 1.1 Return on average common shareholders’ equity(1.9)18.7 5.0 
Return on average tangible common shareholders’ equity (1)Return on average tangible common shareholders’ equity (1)23.7 13.3 13.2 6.7 1.8 Return on average tangible common shareholders’ equity (1)(2.1)23.7 6.7 
Net interest margin (2)Net interest margin (2)3.48 2.94 2.96 2.94 3.14 Net interest margin (2)2.66 3.48 2.94 
Efficiency ratio (3)Efficiency ratio (3)57.0 60.2 56.1 55.9 55.4 Efficiency ratio (3)83.1 57.0 55.9 
Effective tax rateEffective tax rate16.1 15.8 15.2 17.2 17.0 Effective tax rate(2,353.3)16.1 17.2 
Revenue—FTE
Revenue and Net Interest Income—FTE (Non-GAAP)Revenue and Net Interest Income—FTE (Non-GAAP)
Net interest incomeNet interest income$972 $825 $817 $792 $790 Net interest income$838 $972 $792 
FTE adjustmentFTE adjustment6 5 5 5 6 FTE adjustment6 6 5 
Net interest income (2)978 830 822 797 796 
Net interest income, FTE (non-GAAP) (2)Net interest income, FTE (non-GAAP) (2)844 978 797 
Noninterest incomeNoninterest income395 409 430 391 361 Noninterest income444 395 391 
Total revenue (2)$1,373 $1,239 $1,252 $1,188 $1,157 
Total revenue, FTE (non-GAAP) (2)Total revenue, FTE (non-GAAP) (2)$1,288 $1,373 $1,188 
(1)Net (loss) income excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 21% tax rate.
(2)On an FTE basis assuming a 21% tax rate.
(3)Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains.gains (losses).
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Significant Items
Table 2 list certain items that we believe are significant to understanding corporate performance and trends (See Non-GAAP Financial Measures included in “Additional Disclosures” section). There was one Significant Item in the 2021 first quarter: $21 million of noninterest expense related to the pending acquisition of TCF. This resulted in a negative impact of $(0.02) per common share. There were no Significant Items in the other periods presented.
Table 2 - Significant Items Influencing Earnings Performance Comparison
 Three Months Ended
March 31, 2021
(dollar amounts in millions, share amounts in thousands)AmountEPS (1)
Net income$532 
Earnings per share, after-tax$0.48 
Significant Items—favorable (unfavorable) impact:EarningsEPS (1)
Mergers and acquisitions, net expenses$(21)
Tax impact4 
Mergers and acquisitions, after tax$(17)$(0.02)
Table 2 - Selected Year to Date Income Statements
 Six Months Ended June 30,Change
(amounts in millions, except per share data)20212020AmountPercent
Interest income$1,804 $1,877 $(73)(4)%
Interest expense(6)295 (301)(102)
Net interest income1,810 1,582 228 14 
Provision for credit losses151 768 (617)(80)
Net interest income after provision for credit losses1,659 814 845 104 
Mortgage banking income167 154 13 8 
Service charges on deposit accounts157 148 9 6 
Card and payment processing income145 117 28 24 
Trust and investment management services108 92 16 17 
Leasing revenue16 10 6 60 
Capital markets fees64 64 — — 
Insurance income52 48 4 8 
Bank owned life insurance income32 32 — — 
Gain on sale of loans6 17 (11)(65)
Net gains (losses) on sales of securities10 (1)11 1,100 
Other noninterest income82 71 11 15 
Total noninterest income839 752 87 12 
Personnel costs1,060 814 246 30 
Outside data processing and other services277 175 102 58 
Equipment101 87 14 16 
Net occupancy114 79 35 44 
Lease financing equipment depreciation5 1 4 400 
Professional services65 22 43 195 
Amortization of intangibles21 21 — — 
Marketing29 14 15 107 
Deposit and other insurance expense16 18 (2)(11)
Other noninterest expense177 96 81 84 
Total noninterest expense1,865 1,327 538 41 
Income before income taxes633 239 394 165 
Provision for income taxes116 41 75 183 
Income after income taxes517 198 319 161 
Income attributable to non-controlling interest— — — — 
Net income attributable to Huntington Bancshares Inc517 198 319 161 
Dividends declared on preferred shares74 37 37 100 
Net income applicable to common shares$443 $161 $282 175 %
Average common shares—basic1,071 1,017 54 5 %
Average common shares—diluted1,094 1,032 62 6 
Net income per common share—basic$0.41 $0.16 $0.25 156 
Net income per common share—diluted0.40 0.16 0.24 150 
Revenue and Net Interest Income—FTE (Non-GAAP)
Net interest income$1,810 $1,582 $228 14 %
FTE adjustment12 11 1 9 
Net interest income, FTE (non-GAAP) (1)1,822 1,593 229 14 
Noninterest income839 752 87 12 
Total revenue, FTE (non-GAAP) (1)$2,661 $2,345 $316 13 %
(1)Based upon the quarterly average outstanding diluted common shares.On an FTE basis assuming a 21% tax rate.


2021 1Q2Q Form 10-Q 9

Table of Contents
Net Interest Income / Average Balance Sheet
The following tables detail the change in our average balance sheet and the net interest margin:
Table 3 - Consolidated Average Balance Sheet and Net Interest Margin AnalysisTable 3 - Consolidated Average Balance Sheet and Net Interest Margin AnalysisTable 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis
Average Balances Average Balances
Three Months EndedChangeThree Months EndedChangeChange
March 31,December 31,September 30,June 30,March 31,1Q21 vs. 1Q20June 30,March 31,June 30,2Q21 vs. 2Q202Q21 vs. 1Q21
(dollar amounts in millions)(dollar amounts in millions)20212020202020202020AmountPercent(dollar amounts in millions)202120212020AmountPercentAmountPercent
Assets:Assets:Assets:
Interest-bearing deposits in Federal Reserve Bank$6,065 $5,507 $5,857 $3,413 $680 $5,385 792 %
Interest-bearing deposits at Federal Reserve BankInterest-bearing deposits at Federal Reserve Bank$7,636 $6,065 $3,413 $4,223 124 %$1,571 26 %
Interest-bearing deposits in banksInterest-bearing deposits in banks177 205 177 169 150 27 18 Interest-bearing deposits in banks319 177 169 150 89 142 80 
Securities:Securities:Securities:
Trading account securitiesTrading account securities52 53 49 39 95 (43)(45)Trading account securities48 52 39 9 23 (4)(8)
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
TaxableTaxable14,827 12,048 10,670 11,179 11,671 3,156 27 Taxable20,096 14,827 11,179 8,917 80 5,269 36 
Tax-exemptTax-exempt2,650 2,710 2,749 2,728 2,753 (103)(4)Tax-exempt2,832 2,650 2,728 104 4 182 7 
Total available-for-sale securitiesTotal available-for-sale securities17,477 14,758 13,419 13,907 14,424 3,053 21 Total available-for-sale securities22,928 17,477 13,907 9,021 65 5,451 31 
Held-to-maturity securities—taxableHeld-to-maturity securities—taxable8,269 8,844 8,932 9,798 9,428 (1,159)(12)Held-to-maturity securities—taxable7,280 8,269 9,798 (2,518)(26)(989)(12)
Other securitiesOther securities412 420 430 474 445 (33)(7)Other securities479 412 474 5 1 67 16 
Total securitiesTotal securities26,210 24,075 22,830 24,218 24,392 1,818 7 Total securities30,735 26,210 24,218 6,517 27 4,525 17 
Loans held for saleLoans held for sale1,392 1,319 1,259 1,039 865 527 61 Loans held for sale1,294 1,392 1,039 255 25 (98)(7)
Loans and leases: (3)(1)Loans and leases: (3)(1)Loans and leases: (3)(1)
Commercial:Commercial:Commercial:
Commercial and industrialCommercial and industrial34,352 34,850 34,669 35,284 30,849 3,503 11 Commercial and industrial34,126 32,153 32,975 1,151 3 1,973 6 
Commercial real estate:Commercial real estate:Commercial real estate:
ConstructionConstruction1,053 1,085 1,175 1,201 1,165 (112)(10)Construction1,310 1,053 1,201 109 9 257 24 
CommercialCommercial6,122 6,092 6,045 5,885 5,566 556 10 Commercial7,773 6,122 5,885 1,888 32 1,651 27 
Commercial real estateCommercial real estate7,175 7,177 7,220 7,086 6,731 444 7 Commercial real estate9,083 7,175 7,086 1,997 28 1,908 27 
Lease financingLease financing2,798 2,199 2,309 489 21 599 27 
Total commercialTotal commercial41,527 42,027 41,889 42,370 37,580 3,947 11 Total commercial46,007 41,527 42,370 3,637 9 4,480 11 
Consumer:Consumer:Consumer:
AutomobileAutomobile12,665 12,857 12,889 12,681 12,924 (259)(2)Automobile12,793 12,665 12,681 112 1 128 1 
Residential mortgageResidential mortgage13,768 12,094 11,463 2,305 20 1,674 14 
Home equityHome equity8,809 8,919 8,878 8,897 9,026 (217)(2)Home equity9,375 8,809 8,897 478 5 566 6 
Residential mortgage12,094 12,100 11,817 11,463 11,391 703 6 
RV and marineRV and marine4,193 4,181 4,020 3,706 3,590 603 17 RV and marine4,447 4,193 3,706 741 20 254 6 
Other consumerOther consumer973 1,032 1,049 1,082 1,185 (212)(18)Other consumer1,047 973 1,082 (35)(3)74 8 
Total consumerTotal consumer38,734 39,089 38,653 37,829 38,116 618 2 Total consumer41,430 38,734 37,829 3,601 10 2,696 7 
Total loans and leasesTotal loans and leases80,261 81,116 80,542 80,199 75,696 4,565 6 Total loans and leases87,437 80,261 80,199 7,238 9 7,176 9 
Allowance for loan and lease lossesAllowance for loan and lease losses(1,809)(1,804)(1,720)(1,557)(1,239)(570)(46)Allowance for loan and lease losses(1,828)(1,809)(1,557)(271)(17)(19)(1)
Net loans and leasesNet loans and leases78,452 79,312 78,822 78,642 74,457 3,995 5 Net loans and leases85,609 78,452 78,642 6,967 9 7,157 9 
Total earning assetsTotal earning assets114,105 112,222 110,665 109,038 101,783 12,322 12 Total earning assets127,421 114,105 109,038 18,383 17 13,316 12 
Cash and due from banksCash and due from banks1,080 1,113 1,173 1,299 914 166 18 Cash and due from banks1,106 1,080 1,299 (193)(15)26 2 
Intangible assets2,176 2,185 2,195 2,206 2,217 (41)(2)
Goodwill and other intangible assetsGoodwill and other intangible assets3,055 2,176 2,206 849 38 879 40 
All other assetsAll other assets7,443 7,279 7,216 7,205 6,472 971 15 All other assets8,076 7,443 7,205 871 12 633 9 
Total assetsTotal assets$122,995 $120,995 $119,529 $118,191 $110,147 $12,848 12 %Total assets$137,830 $122,995 $118,191 $19,639 17 %$14,835 12 %
Liabilities and Shareholders’ Equity:Liabilities and Shareholders’ Equity:Liabilities and Shareholders’ Equity:
Interest-bearing deposits:Interest-bearing deposits:Interest-bearing deposits:
Demand deposits—interest-bearingDemand deposits—interest-bearing$26,812 $25,094 23,865 $23,878 $21,202 $5,610 26 %Demand deposits—interest-bearing$29,729 $26,812 $23,878 $5,851 25 %$2,917 11 %
Money market depositsMoney market deposits26,247 26,144 26,200 25,728 24,697 1,550 6 Money market deposits28,124 26,247 25,728 2,396 9 1,877 7 
Savings and other domestic depositsSavings and other domestic deposits12,277 11,468 11,157 10,609 9,632 2,645 27 Savings and other domestic deposits15,190 12,277 10,609 4,581 43 2,913 24 
Core certificates of deposit (4)1,384 1,479 2,035 3,003 3,943 (2,559)(65)
Other domestic time deposits of $250,000 or more115 139 175 230 321 (206)(64)
Brokered deposits and negotiable CDs3,355 4,100 4,182 4,114 2,884 471 16 
Core certificates of deposit (2)Core certificates of deposit (2)1,832 1,384 3,003 (1,171)(39)448 32 
Other domestic deposits of $250,000 or moreOther domestic deposits of $250,000 or more259 115 230 29 13 144 125 
Negotiable CDs, brokered and other depositsNegotiable CDs, brokered and other deposits2,986 3,355 4,114 (1,128)(27)(369)(11)
Total interest-bearing depositsTotal interest-bearing deposits70,190 68,424 67,614 67,562 62,679 7,511 12 Total interest-bearing deposits78,120 70,190 67,562 10,558 16 7,930 11 
Short-term borrowingsShort-term borrowings208 239 162 826 3,383 (3,175)(94)Short-term borrowings241 208 826 (585)(71)33 16 
Long-term debtLong-term debt7,766 8,799 9,318 9,802 10,076 (2,310)(23)Long-term debt6,887 7,766 9,802 (2,915)(30)(879)(11)
Total interest-bearing liabilitiesTotal interest-bearing liabilities78,164 77,462 77,094 78,190 76,138 2,026 3 Total interest-bearing liabilities85,248 78,164 78,190 7,058 9 7,084 9 
Demand deposits—noninterest-bearingDemand deposits—noninterest-bearing29,095 28,140 27,435 25,660 20,054 9,041 45 Demand deposits—noninterest-bearing34,558 29,095 25,660 8,898 35 5,463 19 
All other liabilitiesAll other liabilities2,412 2,452 2,322 2,396 2,319 93 4 All other liabilities2,608 2,412 2,396 212 9 196 8 
Shareholders’ equity13,324 12,941 12,678 11,945 11,636 1,688 15 
Total Huntington Bancshares Inc shareholders’ equityTotal Huntington Bancshares Inc shareholders’ equity15,410 13,324 11,945 3,465 29 2,086 16 
Non-controlling interestNon-controlling interest6 — — 6 100 6 100 
Total equityTotal equity15,416 13,324 11,945 3,471 29 2,092 16 
Total liabilities and shareholders’ equityTotal liabilities and shareholders’ equity$122,995 $120,995 $119,529 $118,191 $110,147 $12,848 12 %Total liabilities and shareholders’ equity$137,830 $122,995 $118,191 $19,639 17 %$14,835 12 %
(3)(1)For purposes of this analysis, NALs are reflected in the average balances of loans.loans and leases.
(4)(2)Includes consumer certificates of deposit of $250,000 or more.
10 Huntington Bancshares Incorporated
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Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)Table 3 - Consolidated Average Balance Sheet and Net Interest Margin Analysis (Continued)
Average Yield Rates (2) Average Yield Rates (1)
Three Months Ended Three Months Ended
March 31,December 31,September 30,June 30,March 31,June 30,March 31,June 30,
Fully-taxable equivalent basis (1)(2)Fully-taxable equivalent basis (1)(2)20212020202020202020Fully-taxable equivalent basis (1)(2)202120212020
Assets:Assets:Assets:
Interest-bearing deposits in Federal Reserve Bank0.10 %0.10 %0.10 %0.10 %1.08 %
Interest-bearing deposits at Federal Reserve BankInterest-bearing deposits at Federal Reserve Bank0.11 %0.10 %0.10 %
Interest-bearing deposits in banksInterest-bearing deposits in banks0.08 0.12 0.13 0.33 1.52 Interest-bearing deposits in banks0.01 0.08 0.33 
Securities:Securities:Securities:
Trading account securitiesTrading account securities3.64 3.65 3.18 1.99 3.21 Trading account securities2.96 3.64 1.99 
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
TaxableTaxable1.32 1.53 1.89 2.30 2.62 Taxable1.34 1.32 2.30 
Tax-exemptTax-exempt2.52 2.59 2.71 2.75 3.30 Tax-exempt2.42 2.52 2.75 
Total available-for-sale securitiesTotal available-for-sale securities1.50 1.72 2.06 2.39 2.75 Total available-for-sale securities1.47 1.50 2.39 
Held-to-maturity securities—taxableHeld-to-maturity securities—taxable2.02 2.11 2.28 2.39 2.50 Held-to-maturity securities—taxable1.94 2.02 2.39 
Other securitiesOther securities1.66 1.85 1.23 0.57 2.07 Other securities1.72 1.66 0.57 
Total securitiesTotal securities1.67 1.87 2.13 2.35 2.64 Total securities1.59 1.67 2.35 
Loans held for saleLoans held for sale2.64 2.96 2.82 3.22 3.39 Loans held for sale2.79 2.64 3.22 
Loans and leases: (3)Loans and leases: (3)Loans and leases: (3)
Commercial:Commercial:Commercial:
Commercial and industrialCommercial and industrial3.99 3.64 3.67 3.62 4.12 Commercial and industrial3.70 3.91 3.50 
Commercial real estate:Commercial real estate:Commercial real estate:
ConstructionConstruction3.41 3.36 3.40 3.66 4.75 Construction3.57 3.41 3.66 
CommercialCommercial2.64 2.62 2.63 2.94 4.00 Commercial3.06 2.64 2.94 
Commercial real estateCommercial real estate2.75 2.73 2.75 3.06 4.13 Commercial real estate3.13 2.75 3.06 
Lease financingLease financing5.00 5.18 5.32 
Total commercialTotal commercial3.78 3.48 3.52 3.53 4.12 Total commercial3.67 3.78 3.53 
Consumer:Consumer:Consumer:
AutomobileAutomobile3.71 3.88 3.93 3.84 4.05 Automobile3.62 3.71 3.84 
Residential mortgageResidential mortgage3.04 3.13 3.51 
Home equityHome equity3.71 3.76 3.79 3.73 4.75 Home equity3.79 3.71 3.73 
Residential mortgage3.13 3.27 3.41 3.51 3.70 
RV and marineRV and marine4.30 4.53 4.60 4.71 4.91 RV and marine4.13 4.30 4.71 
Other consumerOther consumer11.17 11.12 11.23 11.10 12.39 Other consumer10.17 11.17 11.10 
Total consumerTotal consumer3.78 3.93 4.00 4.00 4.45 Total consumer3.69 3.78 4.00 
Total loans and leasesTotal loans and leases3.78 3.70 3.75 3.75 4.29 Total loans and leases3.68 3.78 3.75 
Total earning assetsTotal earning assets3.11 3.13 3.22 3.35 3.88 Total earning assets2.96 3.11 3.35 
Liabilities:Liabilities:Liabilities:
Interest-bearing deposits:Interest-bearing deposits:Interest-bearing deposits:
Demand deposits—interest-bearingDemand deposits—interest-bearing0.04 0.04 0.05 0.07 0.43 Demand deposits—interest-bearing0.04 0.04 0.07 
Money market depositsMoney market deposits0.06 0.10 0.28 0.40 0.81 Money market deposits0.06 0.06 0.40 
Savings and other domestic depositsSavings and other domestic deposits0.04 0.05 0.06 0.10 0.17 Savings and other domestic deposits0.04 0.04 0.10 
Core certificates of deposit (4)Core certificates of deposit (4)0.51 0.56 1.03 1.55 1.91 Core certificates of deposit (4)0.19 0.51 1.55 
Other domestic time deposits of $250,000 or more0.22 0.51 0.92 1.25 1.56 
Brokered deposits and negotiable CDs0.18 0.19 0.19 0.18 1.22 
Other domestic deposits of $250,000 or moreOther domestic deposits of $250,000 or more0.26 0.22 1.25 
Negotiable CDs, brokered and other depositsNegotiable CDs, brokered and other deposits0.16 0.18 0.18 
Total interest-bearing depositsTotal interest-bearing deposits0.06 0.08 0.18 0.28 0.68 Total interest-bearing deposits0.06 0.06 0.28 
Short-term borrowingsShort-term borrowings0.19 0.26 0.30 0.47 1.46 Short-term borrowings0.47 0.19 0.47 
Long-term debt (5)Long-term debt (5)(5.88)1.72 1.87 2.58 2.70 Long-term debt (5)4.97 (5.88)2.58 
Total interest-bearing liabilitiesTotal interest-bearing liabilities(0.53)0.27 0.39 0.57 0.98 Total interest-bearing liabilities0.45 (0.53)0.57 
Net interest rate spreadNet interest rate spread3.64 2.86 2.83 2.78 2.90 Net interest rate spread2.51 3.64 2.78 
Impact of noninterest-bearing funds on marginImpact of noninterest-bearing funds on margin(0.16)0.08 0.13 0.16 0.24 Impact of noninterest-bearing funds on margin0.15 (0.16)0.16 
Net interest marginNet interest margin3.48 %2.94 %2.96 %2.94 %3.14 %Net interest margin2.66 %3.48 %2.94 %
(1)FTE yields are calculated assuming a 21% tax rate.
(2)    Average yield rates include the impact of applicable derivatives. Loan and lease and deposit average yield rates also include impact of applicable non-deferrable and amortized fees.
(2)    FTE yields are calculated assuming a 21% tax rate.
(3)    For purposes of this analysis, NALs are reflected in the average balances of loans.
(4)    Includes consumer certificates of deposit of $250,000 or more.
(5)    Reflects the net mark-to-market impact of interest rate caps of a detriment of $55 million, or 318 bps, and a benefit of $144 million, or 741 bps, for 2Q 2021 and $5 million or 23 bps for 1Q 2021, and 4Q 2020, respectively. There was no impact for 2Q 2020.
2021 1Q2Q Form 10-Q 11

Table of Contents
2021 FirstSecond Quarter versus 2020 FirstSecond Quarter
FTE netNet interest income for the 2021 firstsecond quarter increased $182$46 million, or 23%6%, from the 2020 firstsecond quarter. ThisFTE net interest income, a non-GAAP financial measure, for the 2021 second quarter increased $47 million, or 6%, from the 2020 second quarter. The increase in FTE net interest income reflected a $12.3$18.4 billion, or 12%17%, increase in average earning assets, andpartially offset by a 3428 basis point increasedecrease in the FTE net interest margin to 3.48%2.66%. Net interest income in the 2021 firstsecond quarter was impacted by the late-quarter acquisition of TCF and also included a $144$55 million net mark-to-market of interest rate caps, which favorablynegatively impacted the NIM by approximately 5117 basis points (and long-term debt costs by approximately 741318 basis points), and $45$30 million of deferred PPP loan fees recognized upon receipt of forgiveness payments from the SBA, which favorably impacted the NIM by approximately 169 basis points. The year-over-year decreasedecreases in earning asset yields and average liability costs also reflected the impact of lower interest rates and changes in balance sheet mix, including elevated deposits at the Federal Reserve Bank.
Average earning assets for the 2021 firstsecond quarter increased $12.3$18.4 billion, or 12%17%, from the year-ago quarter, primarily reflecting a $5.4$7.2 billion, or 792%, increase in interest-bearing deposits at the Federal Reserve Bank, a $4.6 billion, or 6%9%, increase in average total loans and leases and a $1.8$6.5 billion, or 7%27%, increase in average securities. Average C&I loans increased $3.5The $7.2 billion, or 11%9%, primarily reflectingincrease in average total loans and leases was impacted by the $5.8 billion ofTCF acquisition late in the 2021 second quarter, an increase in average PPP loans partially offset by lower C&I and dealer floorplan utilization rates. Average residential mortgage loans increased $0.7 billion, or 6%, reflecting continued robust portfolio mortgage production.production . Average RVsecurities increased $6.5 billion, or 27%, primarily due to the late-quarter TCF acquisition and marine loans increased $0.6 billion, or 17%, reflecting strong consumer demand and continued strong production levels.the purchase of securities to deploy excess liquidity.
Average total interest-bearing liabilities for the 2021 firstsecond quarter increased $2.0$7.1 billion, or 3%9%, from the year-ago quarter. Average total deposits increased $16.6$19.5 billion, or 20%21%, while average total core deposits increased $16.3$20.6 billion, or 20%23%. The increase in average total core deposits was primarily driven by increased liquidity levelselevated balances in reaction to the economic downturn, businessboth consumer and commercial growth related to the PPP loans, consumer growthcore deposits largely related to government stimulus, increased consumerimproved retention, and business banking account production, and reduced attrition.the impact of the late-quarter TCF acquisition. Specifically within core deposits, average total demand deposits increased $14.7 billion, or 36%30%, average savings and other domestic deposits increased $2.6$4.6 billion, or 27%43%, and average money market deposits increased $1.6$2.4 billion, or 6%9%. Partially offsetting these increases, average core CDs decreased $2.6$1.2 billion, or 65%39%, primarily reflecting the maturity of balances related to the 2018 consumer deposit growth initiatives. Average total debt decreased $5.5$3.5 billion, or 41%33%, primarily reflecting the repayment of short-term borrowings, therepayment and maturity and issuance of $3.2 billion and $1.3$3.3 billion of long-term debt respectively, over the past five quarters, and the purchase of $0.5 billion of long-term debt under the tender offer completed in November 2020, all due to the strong core deposit growth.growth, partially offset by $2.8 billion of debt assumed in the late-quarter TCF acquisition.
2021 Second Quarter versus 2021 First Quarter versus 2020 Fourth Quarter
ComparedNet interest income decreased $134 million, or 14%, compared to the 2020 fourth quarter,2021 first quarter. FTE net interest income, increased $148a non-GAAP financial measure, decreased $134 million, or 18%14%, compared to the 2021 first quarter, reflecting an 82 basis point decrease in the FTE net interest margin, partially offset by a $1.9$13.3 billion, or 2%12% increase in average earning assets and 54 basis points of NIM expansion.assets. Both the net interest income increasedecrease and the NIM expansion primarilydecrease reflected the net impacts of the mark-to-market of interest rate caps and the decrease in deferred PPP loan fees recognized upon receipt of forgiveness payments from the SBA. The mark-to-market of interest rate caps was a detriment of $55 million in the 2021 second quarter compared to a benefit of $144 million in the 2021 first quarter compared to $5 million in the 2020 fourth quarter. The accelerated recognition of deferred PPP loan fees were $30 million in the 2021 second quarter compared to $45 million in the 2021 first quarter. In addition, 2021 second quarter compared to $5 million inFTE net interest income was impacted by the 2020 fourth quarter.late-quarter TCF acquisition.
Average earning assets increased $1.9$13.3 billion, or 2%12%, primarily reflecting a $2.1$7.2 billion, or 9%, increase in average securities, partially offset byloans and leases and a $0.9$4.5 billion, or 1%17%, decreaseincrease in average loans and leases.securities. Average balances across earning assets categories reflect the late-quarter TCF acquisition. The increase in average loan and lease growth was partially offset by the reduction of PPP loans due to forgiveness. The increase in average securities additionally reflected the purchase of securities to deploy excess liquidity. Average C&I loans decreased $0.5 billion, or 1%, primarily reflecting the $0.4 billion decrease in average PPP loans.
12 Huntington Bancshares Incorporated
Table of Contents
Average total interest-bearing liabilities increased $0.7$7.1 billion, or 1%9%, when compared to the 2020 fourth2021 first quarter. Average total deposits increased $2.7$13.4 billion, or 3%13%, and average total core deposits increased $3.5$13.6 billion, or 4%14%. The increase in average total coreinterest-bearing liabilities and deposits was primarily drivenimpacted by consumer growth largely related to government stimulus, increased liquidity levels among our commercial customers, seasonality in government banking, and improved consumer and business banking account retention.the late-quarter TCF acquisition. Specifically, within core deposits, average total demand deposits increased $2.7$8.4 billion, or 5%15%. Average total debt decreased $1.1$0.8 billion, or 12%11%, primarily reflecting repayment of short-term borrowings and the repayment and maturity of $1.1$2.4 billion of long-term debt during the purchase of $0.5last two quarters, partially offset by $2.8 billion of long-term debt underassumed in the tender offer completed in November 2020, and the repayment of short-term borrowings, all due to the strong core deposit growth.late-quarter TCF acquisition.
122021 2Q Form 10-Q Huntington Bancshares Incorporated13

Table of Contents
Table 4 - Consolidated YTD Average Balance Sheets and Net Interest Margin Analysis
(dollar amounts in millions)
 YTD Average BalancesYTD Average Rates (1)
Six Months Ended June 30,ChangeSix Months Ended June 30,
Fully-taxable equivalent basis (2)20212020AmountPercent20212020
Assets:
Interest-bearing deposits at Federal Reserve Bank$6,855 $2,047 $4,808 235 %0.11 %0.26 %
Interest-bearing deposits in banks248 159 89 56 0.03 0.89 
Securities:
Trading account securities50 67 (17)(25)3.32 2.86 
Available-for-sale securities:
Taxable17,476 11,425 6,051 53 1.33 2.46 
Tax-exempt2,742 2,740 2 — 2.46 3.03 
Total available-for-sale securities20,218 14,165 6,053 43 1.48 2.57 
Held-to-maturity securities—taxable7,772 9,613 (1,841)(19)1.98 2.44 
Other securities447 460 (13)(3)1.69 1.30 
Total securities28,487 24,305 4,182 17 1.63 2.50 
Loans held for sale1,343 952 391 41 2.71 3.30 
Loans and leases: (3)
Commercial:
Commercial and industrial33,145 30,753 2,392 8 3.80 3.74 
Commercial real estate:
Construction1,182 1,183 (1)— 3.50 4.19 
Commercial6,952 5,726 1,226 21 2.87 3.45 
Commercial real estate8,134 6,909 1,225 18 2.96 3.58 
Lease financing2,500 2,313 187 8 5.08 5.41 
Total commercial43,779 39,975 3,804 10 3.72 3.81 
Consumer:
Automobile12,729 12,803 (74)(1)3.67 3.95 
Residential mortgage12,936 11,427 1,509 13 3.08 3.60 
Home equity9,093 8,961 132 1 3.75 4.24 
RV and marine4,320 3,648 672 18 4.21 4.81 
Other consumer1,010 1,133 (123)(11)10.65 11.77 
Total consumer40,088 37,972 2,116 6 3.73 4.23 
Total loans and leases83,867 77,947 5,920 8 3.72 4.01 
Allowance for loan and lease losses(1,818)(1,398)(420)(30)
Net loans and leases82,049 76,549 5,500 7 
Total earning assets120,800 105,410 15,390 15 3.03 %3.60 %
Cash and due from banks1,093 1,106 (13)(1)
Goodwill and other intangible assets2,618 2,211 407 18 
All other assets7,761 6,840 921 13 
Total assets$130,454 $114,169 $16,285 14 %
Liabilities and Shareholders’ Equity:
Interest-bearing deposits:
Demand deposits—interest-bearing$28,279 $22,540 $5,739 25 %0.04 %0.24 %
Money market deposits27,190 25,213 1,977 8 0.06 0.60 
Savings and other domestic deposits13,743 10,120 3,623 36 0.04 0.14 
Core certificates of deposit (4)1,487 3,028 (1,541)(51)0.36 1.71 
Other domestic deposits of $250,000 or more309 720 (411)(57)0.15 1.81 
Negotiable CDs, brokered and other deposits3,169 3,499 (330)(9)0.17 0.61 
Total interest-bearing deposits74,177 65,120 9,057 14 0.06 0.47 
Short-term borrowings224 2,105 (1,881)(89)0.34 1.26 
Long-term debt7,324 9,939 (2,615)(26)(0.78)2.64 
Total interest-bearing liabilities81,725 77,164 4,561 6 (0.02)0.77 
Demand deposits—noninterest-bearing31,841 22,857 8,984 39 — — 
All other liabilities2,512 2,358 154 7 
Total Huntington Bancshares Inc shareholders’ equity14,376 11,790 2,586 22 
Non-controlling interest— — — — 
Total Equity14,376 11,790 2,586 22 
Total liabilities and shareholders’ equity$130,454 $114,169 $16,285 14 %
Net interest rate spread3.05 2.83 
Impact of noninterest-bearing funds on margin(0.01)0.21 
Net interest margin3.04 %3.04 %
(1)Average yield rates include the impact of applicable derivatives. Loan and lease and deposit average yield rates also include impact of applicable non-deferrable and amortized fees.
(2)FTE yields are calculated assuming a 21% tax rate.
(3)For purposes of this analysis, NALs are reflected in the average balances of loans.
(4)Includes consumer certificates of deposit of $250,000 or more.
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2021 First Six Months versus 2020 First Six Months
Net interest income for the first six-month period of 2021 increased $228 million, or 14%. FTE net interest income, a non-GAAP financial measure, for the first six-month period of 2021 increased $229 million, or 14%. The increase in FTE net interest income reflected the benefit of a $15.4 billion, or 15%, increase in average total earning assets. FTE NIM was unchanged at 3.04%. Average loans and leases increased $5.9 billion, or 8%, primarily reflecting an increase in average C&I loans, inclusive of an increase in average PPP loans, and an increase in average residential mortgage loans and commercial real estate loans. Average earning asset yields decreased 57 basis points due to lower interest rates on loans (down 29 basis points), a decline in securities yields and elevated deposits at the Federal Reserve Bank. Average funding costs decreased 79 basis points, primarily driven by lower cost of interest-bearing deposits (down 41 basis points) and the net impact of the mark-to-market of interest rate caps (benefit of 15 basis points). The benefit from noninterest-bearing funding declined 22 basis points.
Provision for Credit Losses
(This section should be read in conjunction with the “Credit Risk” section.)
The provision for credit losses is the expense necessary to maintain the ALLL and the AULC at levels appropriate to absorb our estimate of credit losses expected over the life of the loan and lease portfolio and the portfolio of unfunded loan commitments and letters of credit.lending commitments.
The provision for credit losses for the 2021 firstsecond quarter was $(60)$211 million, a decrease of $501$116 million, or 114%35%, compared to the 2020 second quarter. On a year-to-date basis, provision for credit losses for the first quarter.six-month period of 2021 was $151 million, a decrease of $617 million, or 80%, compared to the year-ago period. The reduction in provision expense over the prior year quarter and the prior year-to-date was primarily attributed to the improvement in the forecasted macroeconomic environment resulting from anticipated lower unemployment and higher GDP.GDP, partially offset by the TCF acquisition initial provision for credit losses of $294 million ($234 million from non-PCD loans and leases and $60 million from acquired unfunded lending commitments) (See Credit Quality discussion).
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Noninterest Income
The following table reflects noninterest income for each of the periods presented: 
Table 4 - Noninterest Income
Table 5 - Noninterest IncomeTable 5 - Noninterest Income
Three Months Ended1Q21 vs. 1Q201Q21 vs. 4Q20Three Months Ended2Q21 vs. 2Q202Q21 vs. 1Q21
March 31,December 31,March 31,ChangeChangeJune 30,March 31,June 30,ChangeChange
(dollar amounts in millions)(dollar amounts in millions)202120202020AmountPercentAmountPercent(dollar amounts in millions)202120212020AmountPercentAmountPercent
Mortgage banking incomeMortgage banking income$100 $90 $58 $42 72 %$10 11 %Mortgage banking income$67 $100 $96 $(29)(30)%$(33)(33)%
Service charges on deposit accountsService charges on deposit accounts69 78 87 (18)(21)(9)(12)Service charges on deposit accounts88 69 60 28 47 19 28 
Card and payment processing incomeCard and payment processing income65 65 58 7 12 — — Card and payment processing income80 65 59 21 36 15 23 
Trust and investment management servicesTrust and investment management services52 49 47 5 11 3 6 Trust and investment management services56 52 45 11 24 4 8 
Leasing revenueLeasing revenue12 4 7 5 71 8 200 
Capital markets feesCapital markets fees29 34 33 (4)(12)(5)(15)Capital markets fees35 29 31 4 13 6 21 
Insurance incomeInsurance income27 25 23 4 17 2 8 Insurance income25 27 25 — — (2)(7)
Bank owned life insurance incomeBank owned life insurance income16 14 16 — — 2 14 Bank owned life insurance income16 16 17 (1)(6)— — 
Gain on sale of loansGain on sale of loans3 13 8 (5)(63)(10)(77)Gain on sale of loans3 3 8 (5)(63)— — 
Net (losses) gains on sales of securities— — — — — — — 
Net gains (losses) on sales of securitiesNet gains (losses) on sales of securities10 — (1)11 1,100 10 100 
Other noninterest incomeOther noninterest income34 41 31 3 10 (7)(17)Other noninterest income52 30 44 8 18 22 73 
Total noninterest incomeTotal noninterest income$395 $409 $361 $34 9 %$(14)(3)%Total noninterest income$444 $395 $391 $53 14 %$49 12 %
2021 FirstSecond Quarter versus 2020 FirstSecond Quarter
Total noninterest income for the 2021 firstsecond quarter increased $34$53 million, or 9%14%, from the year-ago quarter. Mortgage banking incomeService charges on deposit accounts increased $42$28 million, or 72%47%, primarily reflecting an 89% increasenormalization of customer activity versus fee waivers due to COVID-19 in salable mortgage originations and higher secondary marketing spreads offset by lower net mortgage servicing income.the year-ago quarter. Card and payment processing income increased $7$21 million, or 12%36%, primarily reflecting higher debit card usage. Trust and investment management services increased $5$11 million, or 11%24%, reflecting recordcontinued strong net asset flows and positive equity market performance over the prior twelve months. Net gains (losses) on sales of securities increased $11 million, reflecting securities portfolio optimization. Partially offsetting these increases, service charges on deposit accountsmortgage banking income, decreased $18$29 million, or 21%30%, primarily reflecting reduced customer activitylower secondary marketing spreads and elevated deposits. Gain on salea decrease in salable mortgage originations, in addition to lower net mortgage servicing income. In addition to these changes, 2021 second quarter noninterest income across categories was impacted by the late-quarter acquisition of loans decreased $5 million, or 63%, primarily reflecting the lower SBA loan sales resulting from the strategic decision to retain SBA loans on the balance sheet.TCF.
2021 FirstSecond Quarter versus 2020 Fourth2021 First Quarter
Compared to the 2020 fourth2021 first quarter, total noninterest income decreased $14increased $49 million, or 3%12%. GainOther noninterest income increased $22 million, or 73%, primarily reflecting the unfavorable Visa Class B derivative fair value adjustment in the prior quarter, increased amortization of upfront card-related contract renewal fees, and increased mezzanine investment income. Service charges on deposit accounts increased $19 million, or 28%, primarily reflecting normalization of customer activity. Card and payment processing income increased $15 million, or 23%, primarily reflecting higher debit card usage. Gains on sales of securities increased $10 million, reflecting securities portfolio optimization. Partially offsetting these increases, mortgage banking income decreased $33 million, or 33%, primarily reflecting a decrease in salable mortgage originations, lower secondary marketing spreads, and a decrease in net MSR risk management activities. In addition to these changes, 2021 second quarter noninterest income across categories was impacted by the late-quarter acquisition of TCF.
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Table 6 - Noninterest Income—2021 First Six Months Ended vs. 2020 First Six Months Ended
 Six Months Ended June 30,Change
(dollar amounts in millions)20212020AmountPercent
Mortgage banking income$167 $154 $13 8 %
Service charges on deposit accounts157 148 9 6 
Card and payment processing income145 117 28 24 
Trust and investment management services108 92 16 17 
Leasing revenue16 10 6 60 
Capital markets fees64 64 — — 
Insurance income52 48 4 8 
Bank owned life insurance income32 32 — — 
Gain on sale of loans6 17 (11)(65)
Net gains (losses) on sales of securities10 (1)11 1,100 
Other noninterest income82 71 11 15 
Total noninterest income$839 $752 $87 12 %
Noninterest income for the first six-month period of 2021 increased $87 million, or 12%, from the year-ago period. Card and payment processing income increased $28 million, or 24%, primarily reflecting an increase in debit card usage largely from reduced customer activity as a result of the pandemic stay-at-home orders in the prior year period. Trust and investment management services increased $16 million, or 17%, primarily reflecting higher sales production and overall market performance. Mortgage banking increased $13 million, or 8%, reflecting increased salable volume partially offset by lower secondary marketing spreads. Service charges on deposit accounts increased $9 million, or 6%, as the prior year period reflected pandemic-related fee waivers. Other income increased $11 million or 15% primarily reflecting increased mezzanine investment income and increased amortization of upfront card-related contract renewal fees, partially offset by an unfavorable Visa Class B derivative fair value adjustment in the current year, as well as the gain on the annuitization of a retiree health plan in the prior year period. Net gains (losses) on sales of securities increased $11 million, reflecting securities portfolio optimization. These increases were offset by an $11 million decrease in gain on sale of loans decreased $10 million, or 77%, primarily reflecting lower SBA loan sales resulting from the strategic decision to retain SBA loans on the balance sheet. Service charges on deposit accounts decreased $9 million, or 12%, primarily reflecting reduced customer activity and elevated deposits. OtherIn addition to these changes, first six-month period of 2021 noninterest income decreased $7 million, or 17%, primarily reflecting a $6 million reduction inacross categories was impacted by the Visa Class B derivative fair value adjustment. Capital markets fees decreased $5 million, or 15%, reflecting lower loan syndication fees and customer derivatives activity. Partially offsetting these decreases, mortgage banking income increased $10 million, or 11%, primarily reflecting a $10 million increase in net MSR risk management activities.late-quarter acquisition of TCF.
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Noninterest Expense
The following table reflects noninterest expense for each of the periods presented: 
Table 5 - Noninterest Expense
Table 7 - Noninterest ExpenseTable 7 - Noninterest Expense
Three Months Ended1Q21 vs. 1Q201Q21 vs. 4Q20Three Months Ended2Q21 vs. 2Q202Q21 vs. 1Q21
March 31,December 31,March 31,ChangeChangeJune 30,March 31,June 30,ChangeChange
(dollar amounts in millions)(dollar amounts in millions)202120202020AmountPercentAmountPercent(dollar amounts in millions)202120212020AmountPercentAmountPercent
Personnel costsPersonnel costs$468 $426 $395 $73 18 %$42 10 %Personnel costs$592 $468 $418 $174 42 %$124 26 %
Outside data processing and other servicesOutside data processing and other services115 111 85 30 35 4 4 Outside data processing and other services162 115 90 72 80 47 41 
EquipmentEquipment46 49 41 5 12 (3)(6)Equipment55 46 46 9 20 9 20 
Net occupancyNet occupancy42 39 40 2 5 3 8 Net occupancy72 42 39 33 85 30 71 
Lease financing equipment depreciationLease financing equipment depreciation5 — 1 4 400 5 100 
Professional servicesProfessional services17 21 11 6 55 (4)(19)Professional services48 17 11 37 336 31 182 
Amortization of intangiblesAmortization of intangibles10 10 11 (1)(9)— — Amortization of intangibles11 10 10 1 10 1 10 
MarketingMarketing14 15 9 5 56 (1)(7)Marketing15 14 5 10 200 1 7 
Deposit and other insurance expenseDeposit and other insurance expense8 8 9 (1)(11)— — Deposit and other insurance expense8 8 9 (1)(11)— — 
Other noninterest expenseOther noninterest expense73 77 51 22 43 (4)(5)Other noninterest expense104 73 46 58 126 31 42 
Total noninterest expenseTotal noninterest expense$793 $756 $652 $141 22 %$37 5 %Total noninterest expense$1,072 $793 $675 $397 59 %$279 35 %
Number of employees (average full-time equivalent)Number of employees (average full-time equivalent)15,449 15,477 15,386 63 — %(28)— %Number of employees (average full-time equivalent)17,018 15,449 15,703 1,315 8 %1,569 10 %
Impacts of Significant Items:TCF acquisition-related net expenses:
Three Months Ended
March 31,December 31,March 31,
(dollar amounts in millions)202120202020
Outside data processing and other services8 — — 
Net occupancy3 — — 
Equipment1 — — 
Professional services8 — — 
Other noninterest expense1 — — 
Total noninterest expense adjustments$21 $— $— 
Adjusted Noninterest Expense (See Non-GAAP Financial Measures in the Additional Disclosures section):
Three Months Ended1Q21 vs. 1Q201Q21 vs. 4Q20Three Months Ended
March 31,December 31,March 31,ChangeChangeJune 30,March 31,June 30,
(dollar amounts in millions)(dollar amounts in millions)202120202020AmountPercentAmountPercent(dollar amounts in millions)202120212020
Personnel costsPersonnel costs$468 $426 $395 $73 18 %$42 10 %Personnel costs$110 $— $— 
Outside data processing and other servicesOutside data processing and other services107 111 85 22 26 (4)(4)Outside data processing and other services33 8 — 
Net occupancyNet occupancy39 39 40 (1)(3)— — Net occupancy35 3 — 
EquipmentEquipment45 49 41 4 10 (4)(8)Equipment3 1 — 
Deposit and other insurance expense8 8 9 (1)(11)— — 
Professional servicesProfessional services9 21 11 (2)(18)(12)(57)Professional services36 8 — 
MarketingMarketing14 15 9 5 56 (1)(7)Marketing— — — 
Amortization of intangibles10 10 11 (1)(9)— — 
Other noninterest expenseOther noninterest expense72 77 51 21 41 (5)(6)Other noninterest expense52 1 — 
Total adjusted noninterest expense (Non-GAAP)$772 $756 $652 $120 18 %$16 2 %
Total noninterest expense adjustmentsTotal noninterest expense adjustments$269 $21 $— 
2021 FirstSecond Quarter versus 2020 FirstSecond Quarter
Total noninterest expense for the 2021 firstsecond quarter increased $141$397 million or 22%59%, from the year-ago quarter. Personnel costs increased $73$174 million, or 18%42%, primarily reflecting increasedTCF acquisition-related expense and higher salaries and incentives related to an 8% increase in average full-time equivalent employees, and commissions, a timing change implementedan increase in medical insurance expense due to lower costs in the 2021 first quarter with respect to moving forward the annual grant of equity compensation from May to March, and higher benefits costs.prior year. Outside data processing and other services increased $30$72 million, or 35%80%, reflecting technology investments to support our strategic growth initiatives and $8 million of TCF acquisition-related expense. Professional services expense increased $37 million, or 336%, and net occupancy expense increased $33 million, or 85%, both primarily due to TCF acquisition-related expense. Marketing expense increased $10 million, or 200%, reflecting an increase in brand marketing in new markets and a return to pre-pandemic spend levels. Other noninterest expense increased $22$58 million, or 43%126%, primarily reflecting a $25 million donationdue to The Columbus Foundation. Professional servicesTCF acquisition-related expense increased $6 million, or 55%, reflecting $8 millionand an increase in foundation donations. In addition to these changes, 2021 second quarter noninterest expense across categories was impacted by the late-quarter acquisition of acquisition-related legal expense. Equipment expense increased $5 million, or 12%, primarily reflectingTCF.
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technology investments. Marketing expense increased $5 million, or 56%, reflecting a return to pre-pandemic levels and additional investment in strategic marketing initiatives including new Fair Play product launches.
2021 FirstSecond Quarter versus 2020 Fourth2021 First Quarter
Total noninterest expense increased $37$279 million, or 5%35%, from the 2020 fourth2021 first quarter. Personnel costs increased $42$124 million, or 10%26%, outside data processing and other services increased $47 million, or 41%, professional services increased $31 million, or 182%, and net occupancy increased $30 million, or 71%, primarily due to an increase in TCF acquisition-related expenses. Other noninterest expense increased $31 million, or 42%, primarily due to TCF acquisition-related expense and an increase in foundation donations. In addition to these changes, 2021 second quarter noninterest expense across categories was impacted by the late-quarter acquisition of TCF.

Table 8 - Noninterest Expense—2021 First Six Months Ended vs. 2020 First Six Months Ended
 Six Months Ended June 30,Change
(dollar amounts in millions)20212020AmountPercent
Personnel costs$1,060 $814 $246 30 %
Outside data processing and other services277 175 102 58 
Equipment101 87 14 16 
Net occupancy114 79 35 44 
Lease financing equipment depreciation5 1 4 400 
Professional services65 22 43 195 
Amortization of intangibles21 21 — — 
Marketing29 14 15 107 
Deposit and other insurance expense16 18 (2)(11)
Other noninterest expense177 96 81 84 
Total noninterest expense$1,865 $1,327 $538 41 %
Impacts of TCF acquisition-related net expenses:
 Six Months Ended June 30,
(dollar amounts in millions)20212020
Personnel costs$110 $— 
Outside data processing and other services41 — 
Net occupancy38 — 
Equipment4 — 
Professional services44 — 
Marketing— — 
Other noninterest expense53 — 
Total noninterest expense adjustments$290 $— 
Noninterest expense increased $538 million, or 41%, from the year-ago period. Personnel costs increased $246 million, or 30%, primarily reflecting TCF acquisition-related expense, increased salaries, incentives and commissions, and medical insurance expense. Outside data processing and other services increased $102 million, or 58%, primarily reflecting TCF acquisition-related expense and technology investments. Professional services expense increased $43 million, or 195%, and net occupancy expense increased $35 million, or 44%, primarily reflecting TCF acquisition-related expense. Marketing expense increased $15 million, or 107%, primarily reflecting investment in new product launches and brand marketing in new markets and a timing change implementedreturn to pre-pandemic levels. Other noninterest expense increased $81 million, or 84%, primarily as a result of TCF acquisition-related expense and increase in foundation donations. In addition to these changes, first six-month period of 2021 noninterest expense across categories was impacted by the 2021 first quarter with respect to moving forward the annual grantlate-quarter acquisition of equity compensation from May to March, and higher benefits costs.TCF.
Provision for Income Taxes
The provision for income taxes in the 2021 firstsecond quarter was $102$14 million, compared with $31 million in the 2020 second quarter and $102 million in the 2021 first quarter. The provision for income taxes of $10for the six-month periods ended June 30, 2021 and June 30, 2020 was $116 million in the 2020 first quarter and $59$41 million, in the 2020 fourth quarter.respectively. All periods included the benefits from tax-exempt income, tax-advantaged investments, general business credits, investments in qualified affordable housing projects, and capital losses. The effective tax rates for the 2021 firstsecond quarter, 2020 first
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second quarter, and 2020 fourth quarter were 16.1%, 17.0%, and 15.8%, respectively. The variance between the 2021 first quarter compared towere (2,353.3)%, 17.2%, and 16.1%, respectively. Excluding TCF acquisition-related expenses of $269 million, the 2020 firstrelated tax benefit of $51 million and discrete tax expenses of $16 million, the 2021 second quarter and 2020 fourth quarter provision for income taxes andeffective tax rate would have been 18.8%. The effective tax rates relates primarily to higher pre-tax incomefor the six-month periods ended June 30, 2021 and the impact of stock-based compensation. June 30, 2020 were 18.5% and 17.2%, respectively.
The net federal deferred tax liability was $149$179 million and the net state deferred tax asset was $24$27 million at March 31,June 30, 2021.
We file income tax returns with the IRS and various state, city, and cityforeign jurisdictions. Federal income tax audits have been completed for tax years through 2009. The 2010 and 2011 tax years remain under exam by the IRS. While the statute of limitations remains open for tax years 2012 through 2019, the IRS has advised that tax years 2012 through 2014 will not be audited and is currently examining the 2015 and 2016 federal income tax returns. Also, with few exceptions, the Company is no longer subject to state and local income tax examinations for tax years before 2016.
RISK MANAGEMENT AND CAPITAL
We use a multi-faceted approach to risk governance. It begins with the Board of Directors defining our risk appetite as aggregate moderate-to-low. Risk awareness, identification and assessment, reporting, and active management are key elements in overall risk management. Controls include, among others, effective segregation of duties, access, and authorization and reconciliation procedures, as well as staff education and a disciplined assessment process.
We believe that our primary risk exposures are credit, market, liquidity, operational and compliance. More information on risk can be found in the Risk Factors section included in Item 1A of our 2020 Annual Report on Form 10-K and subsequent filings with the SEC. The MD&A included in our 2020 Annual Report on Form 10-K should be read in conjunction with this MD&A as this discussion provides only material updates to the 2020 Annual Report on 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. Our definition, philosophy, and approach to risk management have not materially changed from the discussion presented in the 2020 Annual Report on Form 10-K.
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Credit Risk
Credit risk is the risk of financial loss if a counterparty is not able to meet the agreed upon terms of the financial obligation. The majority of our credit risk is associated with lending activities, as the acceptance and management of credit risk is central to profitable lending. We also have credit risk associated with our investment securities portfolios (see(see Note 3 “Investment Securities and Other Securities” of the Notes to the Unaudited Condensed Consolidated Financial Statements). We engage with other financial counterparties for a variety of purposes including investing, asset and liability management, mortgage banking, and trading activities. A variety of derivative financial instruments, principally interest rate swaps, caps, floors, and collars, are used in asset and liability management activities to protect against the risk of adverse price or interest rate movements. We also use derivatives, principally loan sale commitments, in hedging our mortgage loan interest rate lock commitments and its mortgage loans held for sale. While there is credit risk associated with derivative activity, we believe this exposure is minimal.
We focus on the early identification, monitoring, and management of all aspects of our credit risk. In addition to the traditional credit risk mitigation strategies of credit policies and processes, market risk management activities, and portfolio diversification, we use quantitative measurement capabilities utilizing external data sources, enhanced modeling technology, and internal stress testing processes. Our ongoing expansion of portfolio management resources is central to our commitment to maintaining an aggregate moderate-to-low risk profile. In our efforts to identify risk mitigation techniques, we have focused on product design features, origination policies, and solutions for delinquent or stressed borrowers.
Over the course of 2020 and into 2021, we have assessed the impact of the COVID-19 pandemic on our loan portfolio, as we would with any natural disaster or significant economic decline. The longer term impact of our response is dependent upon a number of variables, including the prolonged impact of the COVID-19 pandemic and its impact on the economic recovery. Continued weakness in the labor market could lead to increased delinquencies and defaults in our consumer portfolio. Additionally, increased economic deterioration could lead to elevated default rates in our Commercial portfolio, especially for industries highly impacted by the COVID-19 pandemic.
The payment deferral program that Huntington initiated for its customers in March 2020 has largely ended, with less than 1% of the total deferrals remaining in place as of March 31, 2021. The remaining deferrals in the Consumer portfolio are in the Residential secured portfolio, consistent with the longer term payment deferral time frames available on those loans. For the few commercial borrowers requiring additional financial help, the expired deferrals were replaced with modified terms and conditions as we continue to work closely with our customers. The post deferral payment activity has been positive across both the Commercial and Consumer portfolios to date.
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Loan and Lease Credit Exposure Mix
Refer to the “Loan and Lease Credit Exposure Mix” section of our 2020 Annual Report on Form 10-K for a brief description of each portfolio segment.
The table below provides the composition of our total loan and lease portfolio: 
Table 6 - Loan and Lease Portfolio Composition
Table 9 - Loan and Lease Portfolio CompositionTable 9 - Loan and Lease Portfolio Composition
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
Commercial:Commercial:Commercial:
Commercial and industrialCommercial and industrial$34,464 43 %$35,373 43 %$34,895 43 %$34,879 44 %$32,959 42 %Commercial and industrial$41,900 38 %$33,151 40 %
Commercial real estate:Commercial real estate:Commercial real estate:
ConstructionConstruction1,083 1 1,035 1 1,154 1 1,200 1 1,180 2 Construction1,926 2 1,035 1 
CommercialCommercial6,096 8 6,164 8 6,055 7 5,979 7 5,793 7 Commercial12,848 11 6,164 8 
Commercial real estateCommercial real estate7,179 9 7,199 9 7,209 8 7,179 8 6,973 9 Commercial real estate14,774 13 7,199 9 
Lease financingLease financing5,027 4 2,222 3 
Total commercialTotal commercial41,643 52 42,572 52 42,104 51 42,058 52 39,932 51 Total commercial61,701 55 42,572 52 
Consumer:Consumer:Consumer:
AutomobileAutomobile12,591 16 12,778 16 12,925 17 12,678 16 12,907 17 Automobile13,174 12 12,778 16 
Home equity8,727 11 8,894 11 8,904 11 8,866 11 9,010 11 
Residential mortgageResidential mortgage12,092 15 12,141 15 12,031 15 11,621 15 11,398 15 Residential mortgage18,729 17 12,141 15 
Home EquityHome Equity11,317 10 8,894 11 
RV and marineRV and marine4,218 5 4,190 5 4,146 5 3,843 5 3,643 5 RV and marine4,960 4 4,190 5 
Other consumerOther consumer959 1 1,033 1 1,046 1 1,073 1 1,145 1 Other consumer2,024 2 1,033 1 
Total consumerTotal consumer38,587 48 39,036 48 39,052 49 38,081 48 38,103 49 Total consumer50,204 45 39,036 48 
Total loans and leasesTotal loans and leases$80,230 100 %$81,608 100 %$81,156 100 %$80,139 100 %$78,035 100 %Total loans and leases$111,905 100 %$81,608 100 %
Our loan portfolio is a managed mix of consumer and commercial credits. At the corporate level, weWe manage the overall credit exposure and portfolio composition via a credit concentration policy. The policy designates specific loan types, collateral types, and loan structures to be formally tracked and assigned maximum exposure limits as a percentage of capital. C&I lending by NAICS categories, specific limits for CRE project types, loans secured by residential real estate, large dollar exposures, and designated high risk loan categories represent examples of specifically tracked
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components of our concentration management process. There are no identified concentrations that exceed the assigned exposure limit. Our concentration management policy is approved by the ROC of the Board of Directors and is used to ensure a high quality, well diversified portfolio that is consistent with our overall objective of maintaining an aggregate moderate-to-low risk profile. Changes to existing concentration limits, incorporating specific information relating to the potential impact on the overall portfolio composition and performance metrics, require the approval of the ROC prior to implementation.
Commercial Credit
Refer to the “Commercial Credit” section of our 2020 Annual Report on Form 10-K for our commercial credit underwriting and on-going credit management processes.
Consumer Credit
Refer to the “Consumer Credit” section of our 2020 Annual Report on Form 10-K for our consumer credit underwriting and on-going credit management processes.
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The table below provides our total loan and lease portfolio segregated by industry type. The changes in the industry composition from December 31, 2020 are consistentprimarily relate to the TCF acquisition along with the portfolio growth metrics.growth.
Table 7 - Loan and Lease Portfolio by Industry Type
Table 10 - Loan and Lease Portfolio by Industry TypeTable 10 - Loan and Lease Portfolio by Industry Type
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
Commercial loans and leases:Commercial loans and leases:Commercial loans and leases:
Real estate and rental and leasingReal estate and rental and leasing$6,854 9 %$6,962 9 %$7,056 9 %$7,117 9 %$6,991 9 %Real estate and rental and leasing$13,944 12 %$6,962 9 %
ManufacturingManufacturing5,523 7 5,556 7 5,658 7 6,147 8 5,846 7 Manufacturing7,243 6 5,556 7 
Retail trade (1)Retail trade (1)4,694 6 5,111 6 4,922 6 5,053 6 5,886 8 Retail trade (1)6,106 5 5,111 6 
Health care and social assistanceHealth care and social assistance3,672 5 3,646 4 3,566 4 3,534 4 2,815 4 Health care and social assistance5,249 5 3,646 4 
Accommodation and food servicesAccommodation and food services4,047 4 3,100 4 
Finance and insuranceFinance and insurance3,343 4 3,389 4 3,197 4 3,345 4 3,670 5 Finance and insurance4,017 4 3,389 4 
Accommodation and food services3,281 4 3,100 4 3,012 4 2,877 4 2,081 3 
Wholesale tradeWholesale trade2,545 3 2,652 3 2,529 3 2,352 3 2,555 3 Wholesale trade3,755 3 2,652 3 
Transportation and warehousingTransportation and warehousing3,250 3 1,401 2 
ConstructionConstruction2,340 2 1,389 2 
Professional, scientific, and technical servicesProfessional, scientific, and technical services1,972 2 2,051 3 2,086 3 2,177 3 1,615 2 Professional, scientific, and technical services2,099 2 2,051 3 
Other servicesOther services1,578 2 1,613 2 1,641 2 1,510 2 1,358 2 Other services1,928 2 1,613 2 
Construction1,412 2 1,389 2 1,425 2 1,492 2 962 1 
Transportation and warehousing1,307 2 1,401 2 1,408 2 1,338 2 1,211 2 
Arts, entertainment, and recreationArts, entertainment, and recreation1,578 1 744 1 
Admin./Support/Waste Mgmt. and Remediation ServicesAdmin./Support/Waste Mgmt. and Remediation Services949 1 975 1 932 1 916 1 693 1 Admin./Support/Waste Mgmt. and Remediation Services1,482 1 975 1 
Educational servicesEducational services846 1 735 1 
InformationInformation793 1 829 1 817 1 759 1 728 1 Information812 2 829 1 
Public administrationPublic administration776 1 662 1 
UtilitiesUtilities754 1 793 1 647 1 573 1 629 1 Utilities766 1 793 1 
Arts, entertainment, and recreation725 1 744 1 738 1 732 1 694 1 
Educational services686 1 735 1 752 — 559 — 465 — 
Public administration640 1 662 1 645 — 302 — 259 — 
Mining, quarrying, and oil and gas extractionMining, quarrying, and oil and gas extraction511 — 601 — 674 1 930 1 1,162 1 Mining, quarrying, and oil and gas extraction561 — 601 — 
Agriculture, forestry, fishing and huntingAgriculture, forestry, fishing and hunting139 — 157 — 158 — 140 — 141 — Agriculture, forestry, fishing and hunting451 — 157 — 
Unclassified/OtherUnclassified/Other316 — 62 — 
Management of companies and enterprisesManagement of companies and enterprises123 — 144 — 132 — 115 — 104 — Management of companies and enterprises135 — 144 — 
Unclassified/Other142 — 62 — 109 — 90 — 67 — 
Total commercial loans and leases by industry categoryTotal commercial loans and leases by industry category41,643 52 42,572 52 42,104 51 42,058 52 39,932 51 Total commercial loans and leases by industry category61,701 55 42,572 52 
AutomobileAutomobile12,591 16 12,778 16 12,925 17 12,678 16 12,907 17 Automobile13,174 12 12,778 16 
Home Equity8,727 11 8,894 11 8,904 11 8,866 11 9,010 11 
Residential Mortgage12,092 15 12,141 15 12,031 15 11,621 15 11,398 15 
Residential mortgageResidential mortgage18,729 17 12,141 15 
Home equityHome equity11,317 10 8,894 11 
RV and marineRV and marine4,218 5 4,190 5 4,146 5 3,843 5 3,643 5 RV and marine4,960 4 4,190 5 
Other consumer loansOther consumer loans959 1 1,033 1 1,046 1 1,073 1 1,145 1 Other consumer loans2,024 2 1,033 1 
Total loans and leasesTotal loans and leases$80,230 100 %$81,608 100 %$81,156 100 %$80,139 100 %$78,035 100 %Total loans and leases$111,905 100 %$81,608 100 %
(1)    Amounts include $2.0 billion, $2.4 billion, $2.2 billion, $2.8$1.3 billion and $4.0$2.4 billion of auto dealer services loans at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 20202021 and MarchDecember 31, 2020, respectively.
Credit Quality
(This section should be read in conjunction with Note 4 “Loans / Leases” and Note 5 “Allowance for Credit Losses” of the Notes to Unaudited Condensed Consolidated Financial Statements.)
We believe the most meaningful way to assess overall credit quality performance is through an analysis of specific performance ratios. This approach forms the basis of the discussion in the sections immediately following: NPAs, NALs, TDRs, ACL, and NCOs. In addition, we utilize delinquency rates, risk distribution and migration patterns, product segmentation, and origination trends in the analysis of our credit quality performance.
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Credit quality performance in the 2021 firstsecond quarter reflected total NCOs as a percent of average loans, annualized, of 0.32%0.28%, ana decrease from 0.55%0.32% in the prior quarter. Total NCOs were $64$62 million, a decrease of $48$2 million from the prior quarter, driven by a $41 million decrease in Commercial NCOs, and a $7$12 million decrease in Consumer NCOs, partially offset by a $10 million increase in Commercial NCOs. NPAs decreasedincreased from the prior quarter by $19$470 million or 3%86%, largely driven by reductions in the commercial portfolio.TCF acquisition.
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NPAs, NALs, AND TDRs
(This section should be read in conjunction with Note 45 “Loans / Leases” and Note 56 “Allowance for Credit Losses” of the Notes to Unaudited Condensed Consolidated Financial Statements and “Credit Quality” section of ourappearing in Huntington’s 2020 Annual Report on Form 10-K.)
NPAs and NALs
Commercial loans are placed on nonaccrual status at 90-days past due, or earlier if repayment of principal and interest is in doubt. Of the $351$748 million of commercial related NALs at March 31,June 30, 2021, $241$526 million, or 69%70%, represented loans that were less than 30-days past due, demonstrating our continued commitment to proactive credit risk management.
The following table reflects period-end NALs and NPAs detail for each of the last five quarters:
Table 8 - Nonaccrual Loans and Leases and Nonperforming Assets
Table 11 - Nonaccrual Loans and Leases and Nonperforming AssetsTable 11 - Nonaccrual Loans and Leases and Nonperforming Assets
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
Nonaccrual loans and leases (NALs):Nonaccrual loans and leases (NALs):Nonaccrual loans and leases (NALs):
Commercial and industrialCommercial and industrial$343 $353 $388 $485 $396 Commercial and industrial$591 $349 
Commercial real estateCommercial real estate8 15 16 28 30 Commercial real estate83 15 
Lease financingLease financing74 4 
AutomobileAutomobile3 4 5 8 6 Automobile3 4 
Residential mortgageResidential mortgage130 88 
Home equityHome equity71 70 71 59 58 Home equity91 70 
Residential mortgage90 88 88 66 66 
RV and marineRV and marine1 2 1 2 2 RV and marine5 2 
Other consumerOther consumer— — — — — Other consumer— — 
Total nonaccrual loans and leasesTotal nonaccrual loans and leases516 532 569 648 558 Total nonaccrual loans and leases977 532 
Other real estate, net:Other real estate, net:Other real estate, net:
ResidentialResidential2 4 4 5 8 Residential5 4 
CommercialCommercial— — 1 2 2 Commercial2 — 
Total other real estate, netTotal other real estate, net2 4 5 7 10 Total other real estate, net7 4 
Other NPAs (1)Other NPAs (1)26 27 28 58 18 Other NPAs (1)30 27 
Total nonperforming assetsTotal nonperforming assets$544 $563 $602 $713 $586 Total nonperforming assets$1,014 $563 
Nonaccrual loans and leases as a % of total loans and leasesNonaccrual loans and leases as a % of total loans and leases0.64 %0.65 %0.70 %0.81 %0.72 %Nonaccrual loans and leases as a % of total loans and leases0.87 %0.65 %
NPA ratio (2)NPA ratio (2)0.68 0.69 0.74 0.89 0.75 NPA ratio (2)0.91 0.69 
(1)    Other nonperforming assets include certain impaired investment securities and/or nonaccrual loans held-for-sale.
(2)    Nonperforming assets divided by the sum of loans and leases, other real estate owned, and other NPAs.
2021 FirstSecond Quarter versus 2020 Fourth Quarter.
Total NPAs decreased $19increased $451 million, or 3%80%, compared with December 31, 2020, largely driven by driven by reductions in C&I and CRE nonaccrual loans.the TCF acquisition.
TDR Loans
(This section should be read in conjunction with Note 45 “Loans / Leases” of the Notes to Unaudited Condensed Consolidated Financial Statements and TDR Loans section of ourappearing in Huntington’s 2020 Annual Report on Form 10-K.)
Over the past five quarters, the accruing component of the total TDR balance has been consistently over 75%, indicating there is no identified credit loss and the borrowers continue to make their monthly payments. As of March 31,June 30, 2021, over 81% of the $428$419 million of accruing TDRs secured by residential real estate (residential mortgage and home equity in Table 9)12) are current on their required payments, with over 55%58% of the accruing pool
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having had no delinquency in the past 12 months. There is limited migration from the accruing to nonaccruing components, and virtually all of the charge-offs come from the nonaccruing TDR balances.
TDRs identified by TCF prior to acquisition date are not included in our TDR disclosures as all such loans and leases were recorded at fair value as of the acquisition date. Subsequent modifications are evaluated for potential treatment as TDRs in accordance with Huntington’s accounting policies.
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The table below presents our accruing and nonaccruing TDRs at period-end for each of the past five quarters:
Table 9 - Accruing and Nonaccruing Troubled Debt Restructured Loans (1)
(dollar amounts in millions)March 31,
2021		December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020
TDRs—accruing:
Commercial and industrial$127 $193 $189 $192 $219 
Commercial real estate32 33 34 35 37 
Automobile51 50 53 52 42 
Home equity179 187 199 209 219 
Residential mortgage249 248 256 229 227 
RV and marine7 6 6 6 3 
Other consumer8 9 10 10 11 
Total TDRs—accruing653 726 747 733 758 
TDRs—nonaccruing:
Commercial and industrial101 95 146 169 119 
Commercial real estate3 3 3 3 4 
Automobile2 2 2 2 2 
Home equity30 30 29 26 25 
Residential mortgage51 51 48 43 42 
RV and marine1 1 1 1 2 
Total TDRs—nonaccruing188 182 229 244 194 
Total TDRs$841 $908 $976 $977 $952 

Table 12 - Accruing and Nonaccruing Troubled Debt Restructured Loans (1)
(dollar amounts in millions)June 30,
2021		December 31,
2020
TDRs—accruing:
Commercial and industrial$130 $193 
Commercial real estate26 33 
Lease financing— — 
Automobile48 50 
Residential mortgage247 248 
Home equity172 187 
RV and marine7 6 
Other consumer8 9 
Total TDRs—accruing638 726 
TDRs—nonaccruing:
Commercial and industrial92 95 
Commercial real estate2 3 
Lease financing— — 
Automobile2 2 
Residential mortgage51 51 
Home equity27 30 
RV and marine1 1 
Total TDRs—nonaccruing175 182 
Total TDRs$813 $908 
(1)Loan modifications under the CARES Act, as amended and interagency regulatory guidance are not considered TDRs.
Overall TDRs decreased in the quarter, primarily related to a decline in the C&I portfolio. Huntington continues to proactively work with our borrowing relationships that require assistance. The resulting loan structures enable our borrowers to meet their commitments and Huntington to retain earning assets. The accruing TDRs meet the well secured definition and have demonstrated a period of satisfactory payment performance.
ACL
(This section should be read in conjunction with Note 5 “Allowance for Credit Losses” of the Notes to Unaudited Condensed Consolidated Financial Statements.)
Our total credit reserveACL is comprised of two different components, both of which in our judgment are appropriate to absorb lifetime expected credit losses in our loan and lease portfolio: the ALLL and the AULC. Combined, these reserves comprise the total ACL.
The models used within our loan and lease portfolio incorporate historical loss experience, as well as current and future economic conditions over a reasonable and supportable period beyond the balance sheet date. We make various judgments combined with historical loss experience to generate a loss rate that is applied to the outstanding loan or receivable balance to produce a reserve for expected credit losses.
We use a combination of statistically-based models that utilize assumptions about current and future economic conditions throughout the contractual life of the loan. The process of estimating expected credit losses is based on several key parameters: Probability of Default (PD), Exposure at Default (EAD),PD, EAD, and Loss Given Default (LGD).LGD. Beyond the reasonable and supportable period (two to three years), the economic variables revert to a historical equilibrium at a pace dependent on the state of the economy reflected within the economic scenario.
These three parameters, PD, EAD, and LGD are utilized to estimate the cumulative credit losses over the remaining expected life of the loan. We also consider the likelihood a previously charged-off account will be recovered. This calculation is dependent on how long ago the account was charged-off and future economic conditions, which estimate the likelihood and magnitude of recovery. Our models are developed using internal historical loss experience covering the full economic cycle and consider the impact of account characteristics on expected losses.
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Future economic conditions consider multiple macroeconomic scenarios provided to us by an independent third party and are reviewed through the appropriate committee governance channels discussed below. These
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macroeconomic scenarios contain certain geography based variables that are influential to our modeling process, the most significant being unemployment rates and Gross Domestic Product (GDP). The probability weights assigned to each scenario are generally expected to be consistent from period to period. Any changes in probability weights must be supported by appropriate documentation and approval of senior management. Additionally, we consider whether to adjust the modeled estimates to address possible limitations within the models or factors not captured within the macroeconomic scenarios. Lifetime losses for most of our loans and receivablesleases are evaluated collectively based on similar risk characteristics, risk ratings, origination credit bureau scores, delinquency status, and remaining months within loan agreements, among other factors.
The macroeconomic scenarios evaluated by Huntington during the 2021 firstsecond quarter continued to reflect the impact of the COVID-19 pandemic. The baseline scenario used for the quarter assumes that the worst of the economic disruption from the pandemic has passed, with the expectation that subsequent waves of the virus will not carry the same level of economic disruption experienced to date. The unemployment variable is incorporated within our models as both a rate of change variable and an absolute level variable. Historically, changes in unemployment have taken gradual paths resulting in more measured impacts each quarter.
The table below is intended to show how the forecasted path of these key macroeconomic variables has changed since the end of 2020:
Table 10 - Forecasted Key Macroeconomic Variables
Table 13 - Forecasted Key Macroeconomic VariablesTable 13 - Forecasted Key Macroeconomic Variables
Baseline scenario forecastBaseline scenario forecast202020212022Baseline scenario forecast202020212022
Q4Q2Q4Q2Q4Q4Q2Q4Q2Q4
Unemployment rate (1)Unemployment rate (1)Unemployment rate (1)
4Q 20204Q 20207.2 %7.5 %7.2 %6.4 %5.5 %4Q 20207.2 %7.5 %7.2 %6.4 %5.5 %
1Q 20211Q 2021N/A6.3 5.7 5.0 4.5 1Q 2021N/A6.3 5.7 5.0 4.5 
2Q 20212Q 2021N/A5.9 4.5 3.7 3.5 
Gross Domestic Product (1)Gross Domestic Product (1)Gross Domestic Product (1)
4Q 20204Q 20203.0 %3.8 %5.8 %4.4 %3.9 %4Q 20203.0 %3.8 %5.8 %4.4 %3.9 %
1Q 20211Q 2021N/A5.2 5.8 5.3 3.5 1Q 2021N/A5.2 5.8 5.3 3.5 
2Q 20212Q 2021N/A10.6 6.5 2.7 1.9 
(1) Values reflect the baseline scenario forecast inputs for each period presented, not updated for subsequent actual amounts.(1) Values reflect the baseline scenario forecast inputs for each period presented, not updated for subsequent actual amounts.(1) Values reflect the baseline scenario forecast inputs for each period presented, not updated for subsequent actual amounts.
The uncertainty related to the COVID-19 pandemic prompted management to continue to assess the macroeconomic environment through the end of the quarter. Management considered multiple macroeconomic forecasts that reflected a range of possible outcomes in order to capture the severity of and the economic disruption associated with the pandemic. While we have incorporated our estimated impact of COVID-19 into our allowance for credit losses (“ACL”),ACL, the ultimate impact of COVID-19 is stillremains uncertain, including how long economic activities will be impacted and what effect the unprecedented levels of government fiscal and monetary actions will have on the economy and our credit losses.
Given significant COVID-19 specific government relief programs and additional stimulus spending enacted into law during the first quarter 2021, as well as certain limitations of our models in the current economic environment particularly the level of unemployment, management developed additional analytics to support adjustments to our modeled results. The Bank’sOur governance committees reviewed model results of each economic scenario for appropriate usage, concluding that the quantitative transactional reserve (collectively assessed) will continue to utilize the scenario weighting approach established in prior quarters. Given the impact of the unemployment variable utilized within the models and the uncertainty associated with key economic scenario assumptions, the March 31,June 30, 2021 ACL included a material general reserve component as well as additional industry specific risk profiles to capture economic uncertainty not addressed within the quantitative transaction reserve.
Our ACL methodology committee is responsible for developing the methodology, assumptions and estimates used in the calculation, as well as determining the appropriateness of the ACL. The ALLL represents the estimate of lifetime expected losses in the loan and lease portfolio at the reported date. The loss modeling process uses an EAD concept to calculate total expected losses on both funded balances and unfunded lending commitments, where appropriate. Losses related to the unfunded lending commitments are then recorded as AULC within other liabilities
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Losses related to the unfunded commitments are then recorded as AULC within other liabilities in the Unaudited Condensed Consolidated Balance Sheet. A liability for expected credit losses for off-balance sheet credit exposures is recognized if Huntington has a present contractual obligation to extend the credit and the obligation is not unconditionally cancelable.
The table below reflects the allocation of our ALLL among our various loan categories during each of the past five quarters: 
Table 11 - Allocation of Allowance for Credit Losses (1)
Table 14 - Allocation of Allowance for Credit Losses (1)Table 14 - Allocation of Allowance for Credit Losses (1)
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
ALLLALLLALLL
CommercialCommercialCommercial
Commercial and industrialCommercial and industrial$865 43 %$939 43 %$912 43 %$923 44 %$837 42 %Commercial and industrial$1,030 38 %$879 40 %
Commercial real estateCommercial real estate332 9 297 9 351 8 246 8 159 9 Commercial real estate499 13 297 9 
Lease financingLease financing89 4 60 3 
Total commercialTotal commercial1,197 52 1,236 52 1,263 51 1,169 52 996 51 Total commercial1,618 55 1,236 52 
ConsumerConsumerConsumer
AutomobileAutomobile156 16 166 16 163 17 177 16 148 17 Automobile141 12 166 16 
Residential mortgageResidential mortgage125 17 79 15 
Home equityHome equity90 11 124 11 103 11 105 11 120 11 Home equity140 10 124 11 
Residential mortgage73 15 79 15 69 15 44 15 53 15 
RV and marineRV and marine114 5 129 5 116 5 125 5 97 5 RV and marine114 4 129 5 
Other consumerOther consumer73 1 80 1 82 1 82 1 90 1 Other consumer80 2 80 1 
Total consumerTotal consumer506 48 578 48 533 49 533 48 508 49 Total consumer600 45 578 48 
Total ALLLTotal ALLL1,703 100 %1,814 100 %1,796 100 %1,702 100 %1,504 100 %Total ALLL2,218 100 %1,814 100 %
AULCAULC38 52 82 119 99 AULC104 52 
Total ACLTotal ACL$1,741 $1,866 $1,878 $1,821 $1,603 Total ACL$2,322 $1,866 
Total ALLL as a % ofTotal ALLL as a % ofTotal ALLL as a % of
Total loans and leasesTotal loans and leases2.12%2.22%2.21%2.12%1.93%Total loans and leases1.98%2.22%
Nonaccrual loans and leasesNonaccrual loans and leases330341316263270Nonaccrual loans and leases227341
NPAsNPAs313323298239257NPAs219323
Total ACL as % ofTotal ACL as % ofTotal ACL as % of
Total loans and leasesTotal loans and leases2.17%2.29%2.31%2.27%2.06%Total loans and leases2.08%2.29%
Nonaccrual loans and leasesNonaccrual loans and leases338351330281287Nonaccrual loans and leases238351
NPAsNPAs320332311255273NPAs229332
(1)Percentages represent the percentage of each loan and lease category to total loans and leases.
2021 FirstSecond Quarter versus 2020 Fourth Quarter
At March 31,June 30, 2021, the ALLL was $1.7$2.2 billion, a decreasean increase of $111$404 million compared to the December 31, 2020 balance of $1.8 billion.billion reflecting the impact of the TCF acquisition. The ALLL to total loans and leases ratio decreased 1024 basis points to 2.12%1.98%
The ACL to total loans and leases ratio was 2.17%2.08% at March 31,June 30, 2021 compared to 2.29% at December 31, 2020. The decrease was primarily related to a reduction in credit reserves reflectingreflects an improvement in the economic outlook.
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NCOs
Table 12 - Quarterly Net Charge-off Analysis
Table 15 - Quarterly Net Charge-off AnalysisTable 15 - Quarterly Net Charge-off Analysis
Three Months EndedThree Months Ended
March 31,December 31,March 31,June 30,March 31,June 30,
(dollar amounts in millions)(dollar amounts in millions)202120202020(dollar amounts in millions)202120212020
Net charge-offs (recoveries) by loan and lease type:Net charge-offs (recoveries) by loan and lease type:Net charge-offs (recoveries) by loan and lease type:
Commercial:Commercial:Commercial:
Commercial and industrialCommercial and industrial$52 $58 $84 Commercial and industrial$37 $28 $80 
Commercial real estate:Commercial real estate:Commercial real estate:
ConstructionConstruction— — — Construction— — 1 
CommercialCommercial(3)32 (1)Commercial17 (3)(1)
Commercial real estateCommercial real estate(3)32 (1)Commercial real estate17 (3)— 
Lease FinancingLease Financing5 24 — 
Total commercialTotal commercial49 90 83 Total commercial59 49 80 
Consumer:Consumer:Consumer:
AutomobileAutomobile2 6 7 Automobile(4)2 10 
Residential mortgageResidential mortgage— — — 
Home equityHome equity— 1 5 Home equity(1)— — 
Residential mortgage— 1 1 
RV and marineRV and marine3 2 2 RV and marine— 3 4 
Other consumerOther consumer10 12 19 Other consumer8 10 13 
Total consumerTotal consumer15 22 34 Total consumer3 15 27 
Total net charge-offs$64 $112 $117 
Total net charge-offs (1)Total net charge-offs (1)$62 $64 $107 
Net charge-offs (recoveries) - annualized percentages:Net charge-offs (recoveries) - annualized percentages:Net charge-offs (recoveries) - annualized percentages:
Commercial:Commercial:Commercial:
Commercial and industrialCommercial and industrial0.60 %0.67 %1.09 %Commercial and industrial0.43 %0.35 %0.96 %
Commercial real estate:Commercial real estate:Commercial real estate:
ConstructionConstruction(0.04)(0.04)0.08 Construction(0.04)(0.04)(0.01)
CommercialCommercial(0.17)2.14 (0.06)Commercial0.81 (0.17)(0.03)
Commercial real estateCommercial real estate(0.15)1.81 (0.03)Commercial real estate0.69 (0.15)(0.03)
Lease financingLease financing0.93 4.32 0.01 
Total commercialTotal commercial0.47 0.86 0.89 Total commercial0.51 0.47 0.75 
Consumer:Consumer:Consumer:
AutomobileAutomobile0.05 0.21 0.22 Automobile(0.13)0.05 0.31 
Residential mortgageResidential mortgage— 0.01 0.02 
Home equityHome equity0.02 0.01 0.19 Home equity(0.08)0.02 0.08 
Residential mortgage0.01 0.05 0.02 
RV and marineRV and marine0.29 0.21 0.27 RV and marine0.02 0.29 0.37 
Other consumerOther consumer3.99 4.35 6.45 Other consumer3.13 3.99 4.80 
Total consumerTotal consumer0.16 0.22 0.35 Total consumer0.02 0.16 0.30 
Net charge-offs as a % of average loans0.32 %0.55 %0.62 %
Net charge-offs as a % of average loans (1)Net charge-offs as a % of average loans (1)0.28 %0.32 %0.54 %

(1)Loan and lease charge-offs for the three months ended June 30, 2021 exclude $80 million of charge-offs recognized upon completion of the TCF acquisition related to required purchase accounting treatment. The initial ALLL recognized on PCD assets included these amounts and after charging these amounts off upon acquisition, the net impact was $432 million of additional ALLL for PCD loans and leases.
2021 FirstSecond Quarter versus 2020 Fourth2021 First Quarter
NCOs were an annualized 0.32%0.28% of average loans and leases in the current quarter, decreasing from 0.55%0.32% in the 2020 fourth2021 first quarter, and below our average through-the-cycle target range of 0.35% - 0.55%. Annualized NCOs for the commercial portfolios were 0.47%0.51% in the current quarter compared to 0.86%0.47% in the 2020 fourth2021 first quarter. Consumer charge-offs were lower for the quarter, across the consumer portfolio,all products, consistent with our expectations.expectations and reflecting strong recoveries.

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The table below reflects NCO detail for the six-month periods ended June 30, 2021 and 2020:
Table 16 - Year to Date Net Charge-off Analysis
(dollar amounts in millions)
Six months ended June 30,
20212020
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial$65 $163 
Commercial real estate:
Construction— 1 
Commercial14 (2)
Commercial real estate14 (1)
Lease financing29 1 
Total commercial108 163 
Consumer:
Automobile(2)17 
Residential mortgage— 1 
Home equity(1)5 
RV and marine3 6 
Other consumer18 32 
Total consumer18 61 
Total net charge-offs (1)$126 $224 
Six months ended June 30,
20212020
Net charge-offs (recoveries) - annualized percentages:
Commercial:
Commercial and industrial0.39 %1.06 %
Commercial real estate:
Construction(0.04)0.04 
Commercial0.38 (0.04)
Commercial real estate0.32 (0.03)
Lease financing2.42 0.11 
Total commercial0.49 0.81 
Consumer:
Automobile(0.04)0.26 
Residential mortgage0.01 0.02 
Home equity(0.03)0.14 
RV and marine0.15 0.32 
Other consumer3.54 5.66 
Total consumer0.09 0.33 
Net charge-offs as a % of average loans (1)0.30 %0.58 %
(1)Loan and lease charge-offs for the six month period ended June 30, 2021 exclude $80 million of charge-offs recognized upon completion of the TCF acquisition related to required purchase accounting treatment. The initial ALLL recognized on PCD assets included these amounts and after charging these amounts off upon acquisition, the net impact was $432 million of additional ALLL for PCD loans.
2021 First Six Months versus 2020 First Six Months
NCOs decreased $98 million in the first six-month period of 2021 to $126 million. The decrease was evident across both the Commercial and Consumer portfolios.The Commercial decrease was primarily a function of elevated losses associated within the oil and gas portfolio in 2020, while the Consumer improvement was broad based.
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Market Risk
(This section should be read in conjunction with the “Market Risk” section of ourappearing in Huntington’s 2020 Annual Report on Form 10-K for our on-going market risk management processes.)
Market risk refers to potential losses arising from changes in interest rates, foreign exchange rates, equity prices and commodity prices, including the correlation among these factors and their volatility.When the value of an instrument is tied to such external factors, the holder faces market risk.We are primarily exposed to interest rate risk as a result of offering a wide array of financial products to our customers and secondarily to price risk from trading securities, securities owned by our broker-dealer subsidiaries, foreign exchange positions, equity
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investments, and investments in securities backed by mortgage loans.
Huntington measures market risk exposure via financial simulation models, which provide management with insights on the potential impact to net interest income and other key metrics as a result of changes in market interest rates.Models are used to simulate cash flows and accrual characteristics of the balance sheet based on assumptions regarding the slope or shape of the yield curve, the direction and volatility of interest rates, and the changing composition and characteristics of the balance sheet resulting from strategic objectives and customer behavior.Assumptions and models provide insight on forecasted balance sheet growth and composition, and the pricing and maturity characteristics of current and future business.
In measuring the financial risks associated with interest rate sensitivity in Huntington’s balance sheet, Huntington compares a set of alternative interest rate scenarios to the results of a base case scenario derived using market forward rates.The market forward reflects the market consensus regarding the future level and slope of the yield curve across a range of tenor points.The standard set of interest rate scenarios includes two types: “shock” scenarios which are instantaneous parallel rate shifts, and “ramp” scenarios where the parallel shift is applied gradually over the first 12 months of the forecast on a pro rata basis.In both shock and ramp scenarios with falling rates, Huntington presumes that market rates cannot go below 0%.The forecasted scenarios are inclusive of realized income ofall executed interest rate risk hedging activities.Forward starting hedges are included to the extent that they have been transacted and that they start within the measurement horizon.
Table 14 - Net Interest Income at Risk
Table 17 - Net Interest Income at RiskTable 17 - Net Interest Income at Risk
Net Interest Income at Risk (%) Net Interest Income at Risk (%)
Basis point change scenarioBasis point change scenario-25+100+200Basis point change scenario-25+100+200
Board policy limitsBoard policy limits-1.3 %-2.0 %-4.0 %Board policy limits-1.3 %-2.0 %-4.0 %
March 31, 2021-0.6 3.0 6.6 
June 30, 2021June 30, 2021-1.0 2.9 6.2 
December 31, 2020December 31, 2020-1.1 3.4 7.3 December 31, 2020-1.1 3.4 7.3 
The NII at Risk results included in the table above reflect the analysis used monthly by management. It models gradual (“ramp” as defined above) +100 and +200 basis point parallel shifts in market interest rates, implied by the forward yield curve over the next twelve months as well as an instantaneous parallel shock of -25 basis points.
OurHuntington’s NII at Risk is within ourthe Board of Directors’ policy limits for the -25, +100 and +200 basis point scenarios.The NII at Risk shows that ourthe balance sheet is asset sensitive at both March 31,June 30, 2021, and December 31, 2020. The change in sensitivity is primarily driven by changes in market rate expectations, and the size and mix of the balance sheet.
Table 15 - Economic Value of Equity at Risk
Table 18 - Economic Value of Equity at RiskTable 18 - Economic Value of Equity at Risk
Economic Value of Equity at Risk (%) Economic Value of Equity at Risk (%)
Basis point change scenarioBasis point change scenario-25+100+200Basis point change scenario-25+100+200
Board policy limitsBoard policy limits-1.5 %-6.0 %-12.0 %Board policy limits-1.5 %-6.0 %-12.0 %
March 31, 2021— -1.3 -4.4 
June 30, 2021June 30, 20210.1 -2.0 -6.1 
December 31, 2020December 31, 2020-0.7 1.4 -0.1 December 31, 2020-0.7 1.4 -0.1 
The EVE results included in the table above reflect the analysis used monthly by management. It models immediate -25, +100 and +200 basis point parallel shifts (“shocks” as defined above) in market interest rates.
We are
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Huntington is within ourthe Board of Directors’ policy limits for the -25, +100 and +200 basis point scenarios. As of March 31st,June 30, 2021, EVE depicts a liability sensitive (long duration) balance sheet profile. The change in sensitivity from December 31st31, 2020’s asset sensitive (short duration) position was driven primarily by changes in the spot market rate curve impacting forecasted runoff expectations, and the size and shapecomposition of the balance sheet.
24 Huntington Bancshares Incorporated

Tablesheet as a result of Contentsthe TCF acquisition.
Use of Derivatives to Manage Interest Rate Risk
An integral component of our interest rate risk management strategy is use of derivative instruments to minimize significant fluctuations in earnings caused by changes in market interest rates. Examples of derivative instruments that we may use as part of our interest rate risk management strategy include interest rate swaps, caps and floors, forward contracts, and forward starting interest rate swaps.
Table 1619 shows all swap, floor and cap positions that are utilized for purposes of managing our exposures to the variability of interest rates. The interest rates variability may impact either the fair value of the assets and liabilities or impact the cash flows attributable to net interest margin. These positions are used to protect the fair value of asset and liabilities by converting the contractual interest rate on a specified amount of assets and liabilities (i.e., notional amounts) to another interest rate index. The positions are also used to hedge the variability in cash flows attributable to the contractually specified interest rate by converting the variable rate index into a fixed rate. The volume, maturity and mix of derivative positions change frequently as we adjust our broader interest rate risk management objectives and the balance sheet positions to be hedged. For further information, including the notional amount and fair values of these derivatives, refer to Note 1214 “Derivative Financial Instruments” of the Notes to Unaudited Condensed Consolidated Financial Statements.
The following table presents additional information about the interest rate swaps, caps and floors used in Huntington’s asset and liability management activities at March 31,June 30, 2021 and December 31, 2020.
Table 16 - Weighted-Average Maturity, Receive Rate and LIBOR Reset Rate on Asset Liability Management Instruments
Table 19 - Weighted-Average Maturity, Receive Rate and LIBOR Reset Rate on Asset Liability Management InstrumentsTable 19 - Weighted-Average Maturity, Receive Rate and LIBOR Reset Rate on Asset Liability Management Instruments
March 31, 2021June 30, 2021
 Average Maturity (years)
Weighted-Average
Fixed Rate
Weighted-Average
LIBOR Reset Rate
 Average Maturity (years)
Weighted-Average
Fixed Rate
Weighted-Average
LIBOR Reset Rate
(dollar amounts in millions)(dollar amounts in millions)Notional ValueFair Value(dollar amounts in millions)Notional ValueFair Value
Asset conversion swapsAsset conversion swapsAsset conversion swaps
Receive Fixed - Pay 1 month LIBORReceive Fixed - Pay 1 month LIBOR$6,525 1.78 $219 1.81 %0.11 %Receive Fixed - Pay 1 month LIBOR$7,275 1.66 $187 1.75 %0.08 %
Pay Fixed - Receive 1 month LIBOR (1)Pay Fixed - Receive 1 month LIBOR (1)2,957 2.48 38 0.22 0.11 Pay Fixed - Receive 1 month LIBOR (1)817 8.40 25 0.76 0.09 
Receive Fixed - Pay 1 month LIBOR - forward starting (2)750 3.04 18 1.24 — 
Pay Fixed - Receive 1 month LIBOR - forward starting (3)(2)Pay Fixed - Receive 1 month LIBOR - forward starting (3)(2)233 9.35 9 1.12 Pay Fixed - Receive 1 month LIBOR - forward starting (3)(2)4,384 4.72 16 0.82 
Liability conversion swapsLiability conversion swapsLiability conversion swaps
Receive Fixed - Pay 1 month LIBORReceive Fixed - Pay 1 month LIBOR5,397 1.77 217 2.28 0.11 Receive Fixed - Pay 1 month LIBOR4,651 1.80 190 2.21 0.08 
Receive Fixed - Pay 3 month LIBORReceive Fixed - Pay 3 month LIBOR150 3.66 10 4.60 2.58 
Basis SwapsBasis SwapsBasis Swaps
Pay SOFR- Receive Fed Fund (economic hedges) (4)(3)Pay SOFR- Receive Fed Fund (economic hedges) (4)(3)230 4.41 — 0.07 0.02 Pay SOFR- Receive Fed Fund (economic hedges) (4)(3)230 4.16 — 0.10 0.06 
Pay Fed Fund - Receive SOFR (economic hedges) (4)(3)Pay Fed Fund - Receive SOFR (economic hedges) (4)(3)41 1.73 — 0.01 0.07 Pay Fed Fund - Receive SOFR (economic hedges) (4)(3)41 1.48 — 0.05 0.10 
Total swap portfolioTotal swap portfolio$16,133 $501 Total swap portfolio$17,548 $428 
March 31, 2021June 30, 2021
 Average Maturity (years)Weighted-Average Strike
Weighted-Average
LIBOR Reset Rate
 Average Maturity (years)Weighted-Average Strike
Weighted-Average
LIBOR Reset Rate
(dollar amounts in millions)(dollar amounts in millions)Notional ValueFair Value(dollar amounts in millions)Notional ValueFair Value
Interest rate floorsInterest rate floorsInterest rate floors
Purchased Interest Rate Floors - 1 month LIBORPurchased Interest Rate Floors - 1 month LIBOR$6,175 0.15 $28 1.76 %0.11 %Purchased Interest Rate Floors - 1 month LIBOR$475 0.44 $5 1.95 %0.09 %
Purchased Floor Spread - 1 month LIBORPurchased Floor Spread - 1 month LIBOR525 1.57 8 2.50 / 1.500.11 Purchased Floor Spread - 1 month LIBOR2,700 3.07 67 0.76 / 1.710.09 
Purchased Floor Spread - 1 month LIBOR forward starting (5)2,375 3.56 59 1.56 / 0.65— 
Purchased Floor Spread - 1 month LIBOR (economic hedges)Purchased Floor Spread - 1 month LIBOR (economic hedges)1,000 2.04 16 1.75 / 1.000.11 Purchased Floor Spread - 1 month LIBOR (economic hedges)1,200 1.70 17 1.08 / 1.880.08 
Interest rate caps
Purchased Cap - 1 month LIBOR (economic hedges)5,000 6.66 244 0.98 0.11 
Written Cap - 1 month LIBOR (economic hedges)1,500 6.58 (25)2.94 0.11 
Written Cap - 1 month LIBOR forward starting (economic hedges) (2)1,500 6.59 (24)3.00 — 
Total floors and caps portfolioTotal floors and caps portfolio$18,075 $306 Total floors and caps portfolio$4,375 $89 
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December 31, 2020December 31, 2020
 Average Maturity (years)
Weighted-Average
Fixed Rate
Weighted-Average
LIBOR Reset Rate
 Average Maturity (years)
Weighted-Average
Fixed Rate
Weighted-Average
LIBOR Reset Rate
(dollar amounts in millions)(dollar amounts in millions)Notional ValueFair Value(dollar amounts in millions)Notional ValueFair Value
Asset conversion swapsAsset conversion swapsAsset conversion swaps
Receive Fixed - Pay 1 month LIBORReceive Fixed - Pay 1 month LIBOR$6,525 2.03 $231 1.81 %0.15 %Receive Fixed - Pay 1 month LIBOR$6,525 2.03 $231 1.81 %0.15 %
Pay Fixed - Receive 1 month LIBOR (1)Pay Fixed - Receive 1 month LIBOR (1)3,076 1.99 3 0.17 0.15 Pay Fixed - Receive 1 month LIBOR (1)3,076 1.99 3 0.17 0.15 
Receive Fixed - Pay 1 month LIBOR - forward starting (2)(4)Receive Fixed - Pay 1 month LIBOR - forward starting (2)(4)750 3.29 23 1.24 — Receive Fixed - Pay 1 month LIBOR - forward starting (2)(4)750 3.29 23 1.24 — 
Pay Fixed - Receive 1 month LIBOR - forward starting (6)(5)Pay Fixed - Receive 1 month LIBOR - forward starting (6)(5)408 9.08 2 0.68 — Pay Fixed - Receive 1 month LIBOR - forward starting (6)(5)408 9.08 2 0.68 — 
Liability conversion swapsLiability conversion swapsLiability conversion swaps
Receive Fixed - Pay 1 month LIBORReceive Fixed - Pay 1 month LIBOR5,397 2.02 262 2.28 0.15 Receive Fixed - Pay 1 month LIBOR5,397 2.02 262 2.28 0.15 
Receive Fixed - Pay 3 month LIBORReceive Fixed - Pay 3 month LIBOR800 0.21 5 1.31 0.22 Receive Fixed - Pay 3 month LIBOR800 0.21 5 1.31 0.22 
Basis SwapsBasis SwapsBasis Swaps
Pay SOFR- Receive Fed Fund (economic hedges) (4)(3)Pay SOFR- Receive Fed Fund (economic hedges) (4)(3)230 4.66 — 0.09 0.10 Pay SOFR- Receive Fed Fund (economic hedges) (4)(3)230 4.66 — 0.09 0.10 
Pay Fed Fund - Receive SOFR (economic hedges) (4)(3)Pay Fed Fund - Receive SOFR (economic hedges) (4)(3)41 1.98 — 0.09 0.09 Pay Fed Fund - Receive SOFR (economic hedges) (4)(3)41 1.98 — 0.09 0.09 
Total swap portfolioTotal swap portfolio$17,227 $526 Total swap portfolio$17,227 $526 
December 31, 2020December 31, 2020
 Average Maturity (years)
Weighted-Average
Floor Strike
Weighted-Average
LIBOR Reset Rate
 Average Maturity (years)
Weighted-Average
Floor Strike
Weighted-Average
LIBOR Reset Rate
(dollar amounts in millions)(dollar amounts in millions)Notional ValueFair Value(dollar amounts in millions)Notional ValueFair Value
Interest rate floorsInterest rate floorsInterest rate floors
Purchased Interest Rate Floors - 1 month LIBORPurchased Interest Rate Floors - 1 month LIBOR$7,200 0.37 $59 1.81 %0.15 %Purchased Interest Rate Floors - 1 month LIBOR$7,200 0.37 $59 1.81 %0.15 %
Purchased Floor Spread - 1 month LIBORPurchased Floor Spread - 1 month LIBOR400 1.74 7  2.50 / 1.500.15 Purchased Floor Spread - 1 month LIBOR400 1.74 7  2.50 / 1.500.15 
Purchased Floor Spread - 1 month LIBOR forward starting (7)(6)Purchased Floor Spread - 1 month LIBOR forward starting (7)(6)2,500 3.72 76  1.65 / 0.70— Purchased Floor Spread - 1 month LIBOR forward starting (7)(6)2,500 3.72 76  1.65 / 0.70— 
Purchased Floor Spread - 1 month LIBOR (economic hedges)Purchased Floor Spread - 1 month LIBOR (economic hedges)1,000 2.2918  1.75 / 1.000.16 Purchased Floor Spread - 1 month LIBOR (economic hedges)1,000 2.2918  1.75 / 1.000.16 
Interest rate capsInterest rate capsInterest rate caps
Purchased Cap - 1 month LIBOR (economic hedges)Purchased Cap - 1 month LIBOR (economic hedges)5,000 6.9191 0.98 0.15 Purchased Cap - 1 month LIBOR (economic hedges)5,000 6.9191 0.98 0.15 
Total floors and caps portfolioTotal floors and caps portfolio$16,100 $251 Total floors and caps portfolio$16,100 $251 
(1)Amounts include interest rate swaps as fair value hedges of fixed-rate investment securities using the last-of-layer method.
(2)Forward starting swaps and caps effective starting in April 2021.
(3)Forward starting swaps effective starting from AprilJuly 2021 to May 2021.August 2022.
(4)(3)Swaps have variable pay and variable receive resets. Weighted Average Fixed Rate column represents pay rate reset.
(5)(4)Forward starting floor spreads becomeswaps and caps effective starting fromin April 2021 to June 2021.
(6)(5)Forward starting swaps become effective starting from January 2021 to May 2021.
(7)(6)Forward starting floors become effective starting from March 2021 to June 2021.
During the fourth quarter of 2020, we purchased (long) $5.0 billion notional of interest rate caps with an average strike price of 98 basis points to reduce the impact on capital from rising rates and designated them as economic hedges of interest rate risk attributable to our long-term debt. Subsequently, in the first quarter of 2021, we entered into an incremental $3.0 billion notional of written (short) interest rates caps with an average strike price of 297 basis points and created a collar-like position for hedging our interest rate risk.
Net interest income in the current quarter included a $144$55 million negative mark-to-market of interest rate caps (including caps written in the first quarter of 2021).caps. The mark-to-market is not included in the NII at Risk calculations above. As these positions are marked-to-market throughThe interest rate caps were terminated in the current quarter with a net positive impact of $89 million for the first six-month period ended June 30, 2021, and were replaced with $4.0 billion of forward starting interest income each quarter, we expect impact in our reported net interest margin. However, the partial collar-like positionrate swaps that was created by selling the interest caps is expected to dampen those impacts.qualify for hedge accounting.
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MSRs
(This section should be read in conjunction with Note 6 “Mortgage Loan Sales and Servicing Rights” of Notes to the Unaudited Condensed Consolidated Financial Statements.)
At March 31,June 30, 2021, we had a total of $274$327 million of capitalized MSRs representing the right to service $24$30 billion in mortgage loans.
MSR fair values are sensitive to movements in interest rates as expected future net servicing income depends on the projected outstanding principal balances of the underlying loans, which can be reduced by prepayments.prepayments and declines in credit quality. Prepayments usually increase when mortgage interest rates decline and decrease when mortgage interest rates rise. We also employ hedging strategies to reduce the risk of MSR fair value changes or impairment. However, volatile changes in interest rates can diminish the effectiveness of these economic hedges. We report changes in the MSR value net of hedge-related trading activity in the mortgage banking income category of noninterest income.
MSR assets are included in servicing rights and other intangible assets in the Unaudited Condensed Consolidated Financial Statements.
Price Risk
Price risk represents the risk of loss arising from adverse movements in the prices of financial instruments that are carried at fair value and are subject to fair value accounting. We have price risk from trading securities, securities owned by our broker-dealer subsidiaries, foreign exchange positions, derivative instruments, and equity investments. We have established loss limits on the trading portfolio, on the amount of foreign exchange exposure that can be maintained, and on the amount of marketable equity securities that can be held.
Liquidity Risk
(This section should be read in conjunction with the “Liquidity Risk” section of ourappearing in Huntington’s 2020 Annual Report on Form 10-K for our on-going liquidity risk management processes.)
Our primary source of liquidity is our core deposit base. Core deposits comprised approximately 97% of total deposits at March 31,June 30, 2021. We also have available unused wholesale sources of liquidity, including advances from the FHLB, issuance through dealers in the capital markets, and access to certificates of deposit issued through brokers. Liquidity is further provided by unencumbered, or unpledged, investment securities that totaled $13.4$14.3 billion as of March 31,June 30, 2021.
Bank Liquidity and Sources of Funding
Our primary sources of funding for the Bank are retail and commercial core deposits. At March 31,June 30, 2021, these core deposits funded 79% of total assets (124% of total loans). Other sources of liquidity include non-core deposits, FHLB advances, wholesale debt instruments, and securitizations. Demand deposit overdrafts that have been reclassified as loan balances were $16$25 million and $14 million at March 31,June 30, 2021 and December 31, 2020, respectively.
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The following table reflects deposit composition detail for each of the last five quarters:
Table 17 - Deposit Composition
Table 20 - Deposit CompositionTable 20 - Deposit Composition
March 31,December 31,September 30,June 30,March 31,June 30,December 31,
(dollar amounts in millions)(dollar amounts in millions)20212020202020202020(dollar amounts in millions)2021 (1)2020
By Type:By Type:By Type:
Demand deposits—noninterest-bearingDemand deposits—noninterest-bearing$31,226 30 %$28,553 29 %$27,466 29 %$27,574 29 %$21,039 24 %Demand deposits—noninterest-bearing$45,249 32 %$28,553 29 %
Demand deposits—interest-bearingDemand deposits—interest-bearing27,493 27 26,757 27 24,242 25 22,961 25 23,115 27 Demand deposits—interest-bearing34,938 24 26,757 27 
Money market depositsMoney market deposits26,268 26 26,248 27 26,230 28 25,312 27 25,068 29 Money market deposits33,616 24 26,248 27 
Savings and other domestic depositsSavings and other domestic deposits13,115 13 11,722 12 11,268 12 11,034 12 9,845 11 Savings and other domestic deposits20,876 15 11,722 12 
Core certificates of deposit (1)(2)Core certificates of deposit (1)(2)1,329 1 1,425 1 1,586 2 2,478 3 3,599 4 Core certificates of deposit (1)(2)3,537 2 1,425 1 
Total core deposits:Total core deposits:99,431 97 94,705 96 90,792 96 89,359 96 82,666 95 Total core deposits:138,216 97 94,705 96 
Other domestic deposits of $250,000 or moreOther domestic deposits of $250,000 or more105 — 131 — 156 — 209 — 276 — Other domestic deposits of $250,000 or more675 — 131 — 
Brokered deposits and negotiable CDs2,648 3 4,112 4 4,206 4 4,123 4 3,888 5 
Negotiable CDs, brokered and other depositsNegotiable CDs, brokered and other deposits3,914 3 4,112 4 
Total depositsTotal deposits$102,184 100 %$98,948 100 %$95,154 100 %$93,691 100 %$86,830 100 %Total deposits$142,805 100 %$98,948 100 %
Total core deposits:Total core deposits:Total core deposits:
CommercialCommercial$46,539 47 %$44,698 47 %$43,018 47 %$41,630 47 %$38,064 46 %Commercial$61,055 44 %$44,698 47 %
ConsumerConsumer52,892 53 50,007 53 47,774 53 47,729 53 44,602 54 Consumer77,161 56 50,007 53 
Total core depositsTotal core deposits$99,431 100 %$94,705 100 %$90,792 100 %$89,359 100 %$82,666 100 %Total core deposits$138,216 100 %$94,705 100 %
(1)Includes $488 million of noninterest-bearing and $439 million of interest-bearing deposits classified as held-for-sale at June 30, 2021.
(2)Includes consumer certificates of deposit of $250,000 or more.
The Bank maintains borrowing capacity at the FHLB and the Federal Reserve Bank Discount Window. The Bank does not consider borrowing capacity from the Federal Reserve Bank Discount Window as a primary source of liquidity. Total loans and securities pledged to the Federal Reserve Bank Discount Window and the FHLB are $48.2$54.1 billion and $53.4 billion at March 31,June 30, 2021 and December 31, 2020, respectively.
At March 31,June 30, 2021, the market value of investment securities pledged to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, and security repurchase agreements totaled $4.8$5.8 billion. There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at March 31,June 30, 2021.
To the extent we are unable to obtain sufficient liquidity through core deposits, we may meet our liquidity needs through sources of wholesale funding, asset securitization or sale. Sources of wholesale funding include other domestic deposits of $250,000 or more, brokered deposits and negotiable CDs, brokered and other deposits, short-term borrowings, and long-term debt. At March 31,June 30, 2021, total wholesale funding was $10.2$12.3 billion, a decrease from $12.8 billion at December 31, 2020. The decrease from year-end is due to a decrease in negotiable CDs, brokered deposits and negotiable CDother deposits and long-term debt.
At March 31,June 30, 2021, we believe the Bank has sufficient liquidity to meet its cash flow obligations for the foreseeable future.
Parent Company Liquidity
The parent company’s funding requirements consist primarily of dividends to shareholders, debt service, income taxes, operating expenses, funding of nonbank subsidiaries, repurchases of our stock, and acquisitions. The parent company obtains funding to meet obligations from dividends and interest received from the Bank, interest and dividends received from direct subsidiaries, net taxes collected from subsidiaries included in the federal consolidated tax return, fees for services provided to subsidiaries, and the issuance of debt securities.
During the 2021 first quarter, Huntington issued $500 million of Series H Preferred Stock. On June 9, 2021, each share of TCF’s Series C Non-Cumulative Perpetual Preferred Stock was converted into a share of a Series I Preferred Stock of Huntington having substantially the same terms as TCF’s preferred stock. See Note 810 “Shareholders’ Equity” and Note 14 of ourappearing in Huntington’s 2020 Annual Report on Form 10-K for further information.
At March 31,both June 30, 2021 and December 31, 2020, the parent company had $4.1 billion and $4.4 billion respectively, in cash and cash equivalents.
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On AprilJuly 21, 2021, the Board of Directors declared a quarterly common stock cash dividend of $0.15 per common share. The dividend is payable on JulyOctober 1, 2021, to shareholders of record on JuneSeptember 17, 2021. Based on the
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current quarterly dividend of $0.15 per common share, cash demands required for common stock dividends are estimated to be approximately $153$221 million per quarter. On AprilJune 9, 2021, the Board of Directors declared a quarterly dividend for the newly created Series I Preferred Stock payable on September 1, 2021 to shareholders of record on August 15, 2021. Additionally, on July 21, 2021, the Board of Directors also declared a quarterly Series B, Series C, Series D, Series E, Series F, Series G and Series H Preferred Stock dividend payable on JulyOctober 15, 2021 to shareholders of record on JulyOctober 1, 2021. Total cash demands required for Series B, Series C, Series D, Series E, Series F, Series G, Series H and Series HI are expected to be approximately $37$30 million per quarter.
During the first threesix months of 2021, the Bank paid preferred and common dividends of $11$22 million and $0.3 billion,$625 million, respectively. To meet any additional liquidity needs, the parent company may issue debt or equity securities from time to time.
Off-Balance Sheet Arrangements
In the normal course of business, we enter into various off-balance sheet arrangements. These arrangements include commitments to extend credit, interest rate swaps, floors and caps, financial guarantees contained in standby letters-of-credit issued by the Bank, and commitments by the Bank to sell mortgage loans.
Operational Risk
Operational risk is the risk of loss due to human error, third-party performance failures, inadequate or failed internal systems and controls, including the use of financial or other quantitative methodologies that may not adequately predict future results; violations of, or noncompliance with, laws, rules, regulations, prescribed practices, or ethical standards; and external influences such as market conditions, fraudulent activities, disasters, failed business contingency plans and security risks. We continuously strive to strengthen our system of internal controls to ensure compliance with significant contracts, agreements, laws, rules, and regulations, and to improve the oversight of our operational risk.
We actively monitor cyberattacks such as attempts related to online deception and loss of sensitive customer data. We evaluate internal systems, processes and controls to mitigate loss from cyber-attacks and, to date, have not experienced any material losses. Cybersecurity threats have increased, primarily through COVID-19 themed phishing campaigns.  We are actively monitoring our email gateways for malicious phishing email campaigns.  We have also increased our cybersecurity and fraud monitoring activities through the implementation of specific monitoring of remote connections by geography and volume of connections to detect anomalous remote logins, since a significant portion of our workforce is now working remotely. 
Our objective for managing cyber security risk is to avoid or minimize the impacts of external threat events or other efforts to penetrate our systems. We work to achieve this objective by hardening networks and systems against attack, and by diligently managing visibility and monitoring controls within our data and communications environment to recognize events and respond before the attacker has the opportunity to plan and execute on its own goals. To this end we employ a set of defense in-depth strategies, which include efforts to make us less attractive as a target and less vulnerable to threats, while investing in threat analytic capabilities for rapid detection and response. Potential concerns related to cyber security may be escalated to our board-level Technology Committee, as appropriate. As a complement to the overall cyber security risk management, we use a number of internal training methods, both formally through mandatory courses and informally through written communications and other updates. Internal policies and procedures have been implemented to encourage the reporting of potential phishing attacks or other security risks. We also use third-party services to test the effectiveness of our cyber security risk management framework, and any such third parties are required to comply with our policies regarding information security and confidentiality.
To mitigate operational risks, we have an Operational Risk Committee, a Legal, Regulatory, and Compliance Committee, a Funds Movement Committee, and a Third Party Risk Management Committee. The responsibilities of these committees, among other duties, include establishing and maintaining management information systems to monitor material risks and to identify potential concerns, risks, or trends that may have a significant impact and ensuring that recommendations are developed to address the identified issues. In addition, we have a Model Risk Oversight Committee that is responsible for policies and procedures describing how model risk is evaluated and
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managed and the application of the governance process to implement these practices throughout the enterprise. These committees report any significant findings and remediation recommendations to the Risk Management Committee. Potential concerns may be escalated to our ROC and the Audit Committee, as appropriate. Significant findings or issues are escalated by the Third Party Risk Management Committee to the Technology Committee of the
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Board, as appropriate. A
The TCF integration is inherently large and complex. Our objective for managing execution risk is to minimize impact to daily operations. We have an established Integration Management Office led by senior management. Responsibilities include central management, reporting, and escalation of key integration deliverables. In addition, a separate Board Committee on Conversions and Integration is in place to assist in the oversight and to monitor the integration activities, risks and progress of the TCF merger.acquisition.
The goal of this framework is to implement effective operational risk monitoring techniques and strategies; minimize operational, fraud, and legal losses; minimize the impact of inadequately designed models and enhance our overall performance.
Compliance Risk
Financial institutions are subject to many laws, rules, and regulations at both the federal and state levels. These broad-based laws, rules, and regulations include, but are not limited to, expectations relating to anti-money laundering, lending limits, client privacy, fair lending, prohibitions against unfair, deceptive or abusive acts or practices, protections for military members as they enter active duty, and community reinvestment. The volume and complexity of recent regulatory changes have increased our overall compliance risk. As such, we utilize various resources to help ensure expectations are met, including a team of compliance experts dedicated to ensuring our conformance with all applicable laws, rules, and regulations. Our colleagues receive training for several broad-based laws and regulations including, but not limited to, anti-money laundering and customer privacy. Additionally, colleagues engaged in lending activities receive training for laws and regulations related to flood disaster protection, equal credit opportunity, fair lending, and/or other courses related to the extension of credit. We set a high standard of expectation for adherence to compliance management and seek to continuously enhance our performance.
Capital
Both regulatory capital and shareholders’ equity are managed at the Bank and on a consolidated basis. We have an active program for managing capital and maintain a comprehensive process for assessing the Company’s overall capital adequacy. We believe our current levels of both regulatory capital and shareholders’ equity are adequate.
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The following table presents certain regulatory capital data at both the consolidated and Bank levels for each of the periods presented:
Table 18 - Regulatory Capital Data (1)
Table 21 - Regulatory Capital Data (1)Table 21 - Regulatory Capital Data (1)
 Basel III  Basel III
(dollar amounts in millions)(dollar amounts in millions) March 31, 2021December 31, 2020March 31, 2020(dollar amounts in millions) June 30, 2021December 31,
2020
Total risk-weighted assetsTotal risk-weighted assetsConsolidated$89,494 $88,878 $90,193 Total risk-weighted assetsConsolidated$126,241 $88,878 
Bank89,140 88,601 90,016 Bank125,864 88,601 
CET I risk-based capitalCET I risk-based capitalConsolidated9,240 8,887 8,538 CET I risk-based capitalConsolidated12,596 8,887 
Bank9,667 9,438 9,887 Bank13,108 9,438 
Tier 1 risk-based capitalTier 1 risk-based capitalConsolidated11,920 11,083 9,746 Tier 1 risk-based capitalConsolidated15,462 11,083 
Bank10,831 10,601 10,760 Bank14,292 10,601 
Tier 2 risk-based capitalTier 2 risk-based capitalConsolidated1,729 1,774 1,746 Tier 2 risk-based capitalConsolidated2,407 1,774 
Bank1,436 1,431 1,481 Bank2,097 1,431 
Total risk-based capitalTotal risk-based capitalConsolidated13,649 12,856 11,492 Total risk-based capitalConsolidated17,869 12,856 
Bank12,267 12,032 12,241 Bank16,389 12,032 
CET I risk-based capital ratioCET I risk-based capital ratioConsolidated10.32 %10.00 %9.47 %CET I risk-based capital ratioConsolidated9.98 %10.00 %
Bank10.85 10.65 10.98 Bank10.41 10.65 
Tier 1 risk-based capital ratioTier 1 risk-based capital ratioConsolidated13.32 12.47 10.81 Tier 1 risk-based capital ratioConsolidated12.25 12.47 
Bank12.15 11.97 11.95 Bank11.36 11.97 
Total risk-based capital ratioTotal risk-based capital ratioConsolidated15.25 14.46 12.74 Total risk-based capital ratioConsolidated14.15 14.46 
Bank13.76 13.58 13.60 Bank13.02 13.58 
Tier 1 leverage ratioTier 1 leverage ratioConsolidated9.85 9.32 9.01 Tier 1 leverage ratioConsolidated11.65 9.32 
Bank8.98 8.94 9.98 Bank10.84 8.94 
(1)    Capital ratios reflect Huntington's election of a five-year transition to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The CECL transition amount includes the impact of Huntington’s adoption of the new CECL accounting standards on January 1, 2020 and 25% for the cumulative change in the reported ACL since adopting CECL, excluding the allowance established at acquisition for purchased credit deteriorated loans.
At March 31,June 30, 2021, we maintained Basel III capital ratios in excess of the well-capitalized standards established by the FRB. The increasedecrease in capital ratios since December 31, 2020 was driven by earnings,the balance sheet growth as a result of the TCF acquisition offset by the common stock issued related to the acquisition, net of goodwill and other intangibles. Earnings for the first six-month period of 2021, 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
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dividends. The balance sheet growth impact on regulatory capital ratios was largely offset by a change in asset mix during 2020 related to PPP loans and elevated deposits at the Federal Reserve Bank (both of which are 0% risk weighted).cash dividends. The year-over-year change in regulatory Tier 1 risk-based capital and total risk-based capital ratios for the first six-month period of 2021 also reflect 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, 2020 third quarter and 2021 first quarter respectively.and the issuance of Series I preferred stock in conjunction with the TCF acquisition.
Shareholders’ Equity
We generate shareholders’ equity primarily through the retention of earnings, net of dividends and share repurchases. Other potential sources of shareholders’ equity include issuances of common and preferred stock. Our objective is to maintain capital at an amount commensurate with our risk profile and risk tolerance objectives, to meet both regulatory and market expectations, and to provide the flexibility needed for future growth and business opportunities.
Shareholders’ equity totaled $13.6$20.5 billion at March 31,June 30, 2021, an increase of $0.6$7.5 billion or 5%58% when compared with December 31, 2020.
On February 2, 2021, Huntington issued $500 million of preferred stock. Huntington issued 20,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 4.50% Series H Non-Cumulative Perpetual Preferred Stock (Preferred H Stock), par value $0.01 per share, with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share).
On June 25, 2020, we were notified by9, 2021, each share of TCF Financial Corporation 5.70% Series C Non-Cumulative Perpetual Preferred Stock, $0.01 par value per share, outstanding immediately prior to acquisition of TCF Financial Corporation was converted into the FRB that that certain large BHCs, includingright to receive a share of the newly created Huntington were required to update and resubmit their capital plans because changes in financial markets and5.70% Series I Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share.
Given the macroeconomic outlook that could havepending acquisition of TCF Financial Corporation, Huntington determined there would be a material impact onchange in the BHC’sfirm’s risk profile, and financial condition, required the use of updated scenarios. On December 18, 2020, we were notified by the FRB that under both of the severely adverse and the alternative severely adverse economic stress scenariosor corporate structure (as defined in the supervisory stress tests, our modeledFRB’s capital ratios would continue to exceed the minimum requirements under the FRB'srule) and
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resubmitted its capital adequacy rules. In addition, the FRB also announced that certain large BHCs, including Huntington, will be permitted to make both dividend and share repurchases during the first quarter of 2021, subject to limits based on the amount of dividends paidplan in the second quarter of 2020 and the Bank's average net income for the four preceding quarters and that the2021. The FRB was extending through March 31, 2021, the time period for the FRB to notify certain large BHCs, including Huntington, whether the FRB will recalculate a large BHC’s stress capital buffer.
On March 25, 2021, we were notified by the FRB that certain large BHCs, including Huntington, would continue to be permitted to make both dividend and share repurchases during the second quarter of 2021, subject to limits based on the amount of dividends paid in the second quarter of 2020 and the Bank's average net income for the four preceding quarters. Our second quarter dividend that was declared by the Board of Directors on April 22, 2021 complies with these limits. In addition, the FRB announced that it was extending,also extended, through June 30, 2021, the time period for the FRB to notify certain large BHCs including Huntington whether the FRB will recalculate a large BHCsits stress capital buffer.buffer (SCB) requirement.
WhileOn June 24, 2021, we were notified by the FRB reservesthat Huntington’s SCB requirement would not be recalculated and that beginning on July 1, 2021, Huntington was authorized to make capital distributions that are consistent with the authority to revoke or amendrequirements in the amountFRB’s capital rule, inclusive of the distributions, orfinal SCB requirement of 2.5% provided to further extend the restrictionsHuntington on second quarter capital distributions to future quarters,August 7, 2020. In addition, the FRB announced, on March 25,notified us that our preliminary SCB effective for the period October 1, 2021, that for a bank, such as Huntington, thatuntil September 30, 2022 would remain at 2.5%, which is not subject to the supervisoryminimum under the stress test in 2021 and on a two-year supervisory stress testing cycle, the restrictions on capital distributions will end after June 30, 2021 and the Bank’s SCB requirements based on the June 2020 stress test will remain in place.buffer framework.
Dividends
We consider disciplined capital management as a key objective, with dividends representing one component. Our strong capital ratios position us to take advantage of additional capital management opportunities.
Share Repurchases
From time to time the Board of Directors authorizes the Company to repurchase shares of our common stock. Although we announce when the Board of Directors authorizes share repurchases, we typically do not give any public notice before we repurchase our shares. Future stock repurchases may be private or open-market
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repurchases, including block transactions, accelerated or delayed block transactions, forward transactions, and similar transactions. Various factors determine the amount and timing of our share repurchases, including our capital requirements, the number of shares we expect to issue for employee benefit plans and acquisitions, market conditions (including the trading price of our stock), and regulatory and legal considerations.

Subsequent to quarter end, the Board approved the repurchase of up to $800 million of common shares over the next four quarters. Purchases of common stock under the authorization may include open market purchases, privately negotiated transactions, and accelerated share repurchase programs.
BUSINESS SEGMENT DISCUSSION
Overview
Our business segments are based on our internally-aligned segment leadership structure, which is how we monitor results and assess performance. We have four major business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group (RBHPCG). The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
Business segment results are determined based upon our management practices, which assigns balance sheet and income statement items to each of the business segments. The process is designed around our organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions.
Revenue Sharing
Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is recorded to allocate portions of such revenue to other business segments involved in selling to or providing service to customers. Results of operations for the business segments reflect these fee sharing allocations.
Expense Allocation
The management process that develops the business segment reporting utilizes various estimates and allocation methodologies to measure the performance of the business segments. Expenses are allocated to business segments using a two-phase approach. The first phase consists of measuring and assigning unit costs (activity-based costs) to activities related to product origination and servicing. These activity-based costs are then extended, based on volumes, with the resulting amount allocated to business segments that own the related products. The second phase consists of the allocation of overhead costs to all four business segments from Treasury / Other. We utilize a full-allocation methodology, where all Treasury / Other expenses, except reported Significant Items,acquisition-related net expenses, if any, and a small amount of other residual unallocated expenses, are allocated to the four business segments.
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Funds Transfer Pricing (FTP)
We use an active and centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury / Other function where it can be centrally monitored and managed. The Treasury / Other function charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The FTP rate is based on prevailing market interest rates for comparable duration assets (or liabilities).
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Net Income (Loss) by Business Segment
Net income (loss) by business segment for the past three-monthsix-month periods ending March 31,June 30, 2021 and March 31,June 30, 2020 is presented in the following table:
Table 19 - Net Income by Business Segment
Table 22 - Net Income (Loss) by Business SegmentTable 22 - Net Income (Loss) by Business Segment
Three Months Ended March 31, Six Months Ended June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)20212020
Consumer and Business BankingConsumer and Business Banking$111 $60 Consumer and Business Banking$105 $165 
Commercial BankingCommercial Banking118 (86)Commercial Banking167 (115)
Vehicle FinanceVehicle Finance76 11 Vehicle Finance161 9 
RBHPCGRBHPCG25 24 RBHPCG37 50 
Treasury / OtherTreasury / Other202 39 Treasury / Other47 89 
Net incomeNet income$532 $48 Net income$517 $198 
Treasury / Other
The Treasury / Other function includes revenue and expense related to assets, liabilities, derivatives (including the mark-to-market of interest rate caps), and equity not directly assigned or allocated to one of the four business segments. Assets include investment securities and bank owned life insurance.
Net interest income includes the impact of administering our investment securities portfolios, the net impact of derivatives used to hedge interest rate sensitivity as well as the financial impact associated with our FTP methodology, as described above. Noninterest income includes miscellaneous fee income not allocated to other business segments, such as bank owned life insurance income and securities and trading asset gains or losses. Noninterest expense includes certain TCF acquisition-related expenses in the current period, certain corporate administrative, and other miscellaneous expenses not allocated to other business segments. The provision for income taxes for the business segments is calculated at a statutory 21% tax rate, although our overall effective tax rate is lower.

Consumer and Business Banking
Table 20 - Key Performance Indicators for Consumer and Business Banking
 Three Months Ended March 31,Change
(dollar amounts in millions)20212020AmountPercent
Net interest income$337 $364 $(27)(7)%
Provision for credit losses(36)82 (118)(144)
Noninterest income236 212 24 11 
Noninterest expense469 418 51 12 
Provision for income taxes29 16 13 81 
Net income$111 $60 $51 85 %
Number of employees (average full-time equivalent)7,808 7,769 39 1 %
Total average assets$30,718 $24,677 $6,041 24 
Total average loans/leases27,069 21,593 5,476 25 
Total average deposits62,333 51,296 11,037 22 
Net interest margin2.16 %2.81 %(0.65)%(23)
NCOs$14 $32 $(18)(56)
NCOs as a % of average loans and leases0.21 %0.60 %(0.39)%(65)
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Consumer and Business Banking
Table 23 - Key Performance Indicators for Consumer and Business Banking
 Six Months Ended June 30,Change
(dollar amounts in millions)20212020AmountPercent
Net interest income$703 $733 $(30)(4)%
Provision for credit losses63 114 (51)(45)
Noninterest income477 430 47 11 
Noninterest expense984 840 144 17 
Provision for income taxes28 44 (16)(36)
Net income$105 $165 $(60)(36)%
Number of employees (average full-time equivalent)8,160 7,871 289 4 %
Total average assets$31,834 $26,815 $5,019 19 
Total average loans/leases28,014 23,486 4,528 19 
Total average deposits67,702 54,077 13,625 25 
Net interest margin2.06 %2.69 %(0.63)%(23)
NCOs$41 $56 $(15)(27)
NCOs as a % of average loans and leases0.30 %0.47 %(0.17)%(36)
2021 First ThreeSix Months versus 2020 First ThreeSix Months
Consumer and Business Banking, including Home Lending, reported net income of $111$105 million in the first three-monthsix-month period of 2021, an increasea decrease of $51$60 million, or 85%36%, compared to the year-ago period. Segment net interest income decreased $27$30 million, or 7%4%, due to decreased spread on deposits and decreased loan margin, partially offset by PPP revenues. The provision for credit losses decreased $118$51 million, or 144%45%, primarily due to changes in the forecasted economic outlook compared to the year-ago period.period, partially offset by the TCF acquisition initial provision for credit losses. Noninterest income increased $24$47 million, or 11%, primarily due to increased card interchange income as a result of higher debit card usage, mortgage banking income, and increased debit and ATM interchange from higher
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transaction volumes, partially offset by lower service charge income reflecting reduced customer overdrafts. investment revenue. Noninterest expense increased $51$144 million, or 12%17%, mostly due to increased allocated expense and personnel and incentivescosts as a result of higher levels of production and origination volume.volume as well as the late-quarter TCF acquisition.
Home Lending, an operating unit of Consumer and Business Banking, reflects the result of the origination, sale, and servicing of mortgage loans less referral fees and net interest income for mortgage banking products distributed by the retail branch network and other business segments. Home Lending reported net income of $24$23 million in the first three-monthsix-month period of 2021, compared with net income of $11$42 million in the year-ago period. Noninterest income increased $32decreased $11 million, driven primarily by an increase inhigher referral fee income distributed to the branch network and other segments, partially offset by higher salable mortgage originations and higher secondary marketing spreads.originations. Noninterest expense increased $21$24 million due to higher personnel expense as a result of the late-quarter TCF acquisition and higher origination volumes.

Commercial Banking
Table 21 - Key Performance Indicators for Commercial Banking
 Three Months Ended March 31,Change
(dollar amounts in millions)20212020AmountPercent
Net interest income$199 $232 $(33)(14)%
Provision for credit losses5 298 (293)(98)
Noninterest income88 86 2 2 
Noninterest expense133 129 4 3 
Provision for income taxes31 (23)54 235 
Net income (loss)$118 $(86)$204 237 %
Number of employees (average full-time equivalent)1,271 1,273 (2)— %
Total average assets$35,918 $34,810 $1,108 3 
Total average loans/leases26,694 27,238 (544)(2)
Total average deposits25,100 21,525 3,575 17 
Net interest margin2.78 %3.15 %(0.37)%(12)
NCOs$46 $75 $(29)(39)
NCOs as a % of average loans and leases0.68 %1.11 %(0.43)%(39)
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Commercial Banking
Table 24 - Key Performance Indicators for Commercial Banking
 Six Months Ended June 30,Change
(dollar amounts in millions)20212020AmountPercent
Net interest income$457 $472 $(15)(3)%
Provision for credit losses143 523 (380)(73)
Noninterest income203 170 33 19 
Noninterest expense306 265 41 15 
Provision for income taxes44 (31)75 242 
Net income (loss)$167 $(115)$282 245 %
Number of employees (average full-time equivalent)1,424 1,281 143 11 %
Total average assets$34,370 $35,535 $(1,165)(3)
Total average loans/leases29,309 27,706 1,603 6 
Total average deposits26,242 22,970 3,272 14 
Net interest margin2.90 %3.14 %(0.24)%(8)
NCOs$84 $146 $(62)(42)
NCOs as a % of average loans and leases0.57 %1.06 %(0.49)%(46)
2021 First ThreeSix Months versus 2020 First ThreeSix Months
Commercial Banking reported net income of $118$167 million in the first three-monthsix-month period of 2021, compared to a net loss of $86$115 million in the year-ago period. The provision for credit losses decreased $293$380 million, or 98%73%, primarily due to changes in the forecasted economic outlook compared to the year-ago period.period, partially offset by the TCF acquisition initial provision for credit losses. Segment net interest income decreased $33$15 million, or 14%3%, due to a 3724 basis point decrease in net interest margin driven by a sharp decline in the benefit of deposits. Noninterest income increased $2$33 million, or 2%19%, reflecting the late-quarter TCF acquisition, largely driven by an increase in commitment and other loan fees including increased loan syndication fees, treasury management related revenue reflecting the impact of lower earnings credit rates on commercial deposits, partially offset by a declinedeposit service charges, and an increase in capital markets driven by decline in interest rate derivative income.mezzanine gains. Noninterest expense increased $4$41 million, or 3%15%, primarily due to personnel expense, reflecting the late-quarter TCF acquisition, largely driven by an increase in salaries and sales incentives, partially offset by a reduction in business development expense primarily reflecting reduced travel stemming from the COVID-19 pandemic. allocated overhead, and outside data processing. 

Vehicle Finance
Table 25 - Key Performance Indicators for Vehicle Finance
 Six Months Ended June 30,Change
(dollar amounts in millions)20212020AmountPercent
Net interest income$217 $206 $11 5 %
Provision (benefit) for credit losses(53)131 (184)(140)
Noninterest income6 5 1 20 
Noninterest expense72 69 3 4 
Provision for income taxes43 2 41 2,050 
Net income$161 $9 $152 1,689 %
Number of employees (average full-time equivalent)258 267 (9)(3)%
Total average assets$19,383 $19,941 $(558)(3)
Total average loans/leases19,641 20,064 (423)(2)
Total average deposits903 506 397 78 
Net interest margin2.22 %2.05 %0.17 %8 
NCOs$1 $23 $(22)(96)
NCOs as a % of average loans and leases0.01 %0.23 %(0.22)%(96)
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Vehicle Finance
Table 22 - Key Performance Indicators for Vehicle Finance
 Three Months Ended March 31,Change
(dollar amounts in millions)20212020AmountPercent
Net interest income$107 $106 $1 1 %
Provision for credit losses(22)60 (82)(137)
Noninterest income3 3 — — 
Noninterest expense35 35 — — 
Provision for income taxes21 3 18 600 
Net income$76 $11 $65 591 %
Number of employees (average full-time equivalent)254 263 (9)(3)%
Total average assets$19,468 $20,215 $(747)(4)
Total average loans/leases19,735 20,307 (572)(3)
Total average deposits768 366 402 110 
Net interest margin2.20 %2.08 %0.12 %6 
NCOs$5 $10 $(5)(50)
NCOs as a % of average loans and leases0.10 %0.19 %(0.09)%(47)
2021 First ThreeSix Months versus 2020 First ThreeSix Months
Vehicle Finance reported net income of $76$161 million in the first three-monthsix-month period of 2021, an increase of $65$152 million, or 591%, compared to the year-ago period. The provision for credit losses decreased $82$184 million due to changes in the forecasted economic outlook as compared to the year ago period. Segment net interest income increased $1$11 million, or 1%5%, due to a 1217 basis point increase in the net interest margin, partially offset by a 3%2% decrease in average loan balances. The decrease in average loanloans and leases balances of $0.6$0.4 billion iscontinues to be driven by average commercial balances which were $1 billion lower than a year ago as dealership inventory levels and the resulting floor plan line utilization remain low. Additionally,Partially offsetting the decline in commercial balances, RV / Marine balances increased $0.6$0.7 billion year over year, reflecting strong production levels over the past year, partially offset by a decline of $0.3 billion of auto balances.year. Noninterest income and expense were bothwas comparable to year ago levels.while the increase in noninterest expense was largely attributable to higher production related costs.

Regional Banking and The Huntington Private Client GroupRegional Banking and The Huntington Private Client GroupRegional Banking and The Huntington Private Client Group
Table 23 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
Table 26 - Key Performance Indicators for Regional Banking and The Huntington Private Client GroupTable 26 - Key Performance Indicators for Regional Banking and The Huntington Private Client Group
Three Months Ended March 31,Change Six Months Ended June 30,Change
(dollar amounts in millions)(dollar amounts in millions)20212020AmountPercent(dollar amounts in millions)20212020AmountPercent
Net interest incomeNet interest income$34 $43 $(9)(21)%Net interest income$70 $83 $(13)(16)%
Provision for credit losses(7)1 (8)(800)
Provision (benefit) for credit lossesProvision (benefit) for credit losses(2)— (2)(100)
Noninterest incomeNoninterest income53 50 3 6 Noninterest income107 105 2 2 
Noninterest expenseNoninterest expense62 62 — — Noninterest expense132 124 8 6 
Provision for income taxesProvision for income taxes7 6 1 17 Provision for income taxes10 14 (4)(29)
Net incomeNet income$25 $24 $1 4 %Net income$37 $50 $(13)(26)%
Number of employees (average full-time equivalent)Number of employees (average full-time equivalent)998 1,025 (27)(3)%Number of employees (average full-time equivalent)1,018 1,027 (9)(1)%
Total average assetsTotal average assets$6,815 $6,707 $108 2 Total average assets$6,958 $6,744 $214 3 
Total average loans/leasesTotal average loans/leases6,568 6,415 153 2 Total average loans/leases6,705 6,457 248 4 
Total average depositsTotal average deposits7,059 6,100 959 16 Total average deposits7,313 6,333 980 15 
Net interest marginNet interest margin1.92 %2.69 %(0.77)%(29)Net interest margin1.89 %2.53 %(0.64)%(25)
NCOsNCOs$— $— $— — NCOs$— $— $— — 
NCOs as a % of average loans and leasesNCOs as a % of average loans and leases— %— %— %— NCOs as a % of average loans and leases— %— %— %— 
Total assets under management (in billions)—eopTotal assets under management (in billions)—eop$20.7 $15.8 $4.9 31 Total assets under management (in billions)—eop$24.0 $17.4 $6.6 38 
Total trust assets (in billions)—eopTotal trust assets (in billions)—eop136.0 123.7 12.3 10 Total trust assets (in billions)—eop146.7 127.4 19.3 15 
eop - End of Period.
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2021 First ThreeSix Months versus 2020 First ThreeSix Months
RBHPCG reported net income of $25$37 million for the first three-monthsix-month period of 2021, an increasea decrease of $1$13 million, or 4%26%, compared to the year-ago period. Results were impacted by the late-quarter TCF acquisition. Segment net interest income decreased $9$13 million, or 21%16%, due to a 7764 basis point decrease in net interest margin, reflecting both lower deposit and loan spreads. Average loans and leases increased $0.2 billion, or 2%4%, primarily due to residential real estate mortgage loans, and average deposits increased $1.0 billion, or 16%15%, primarily related to PPP, stimulus, and higher customer liquidity levels. Noninterest income increased $3$2 million, or 6%,2%. The comparable period in 2020 included the sale of Retirement Plan Services recordkeeping and administrative services. Total trust assets increased 38% due to a 31% increase in assets under management reflecting recordpositive net asset flows and positive equity markets. In addition,Noninterest expense increased $8 million primarily due to decreased origination rates and higher personnel expense as a result of higher incentives in the title insuranceWealth business, reported record fee income. Noninterest expenses were flat to prior year reflectingpartially offset by lower discretionary expense and continued cost controls.
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ADDITIONAL DISCLOSURES
Forward-Looking Statements
This report, including MD&A, contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; movements in interest rates; reform of LIBOR; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services including those implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital reforms, as well as those involving the OCC, Federal Reserve, FDIC, and CFPB; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Huntington and TCF; the outcome of any legal proceedings that may be instituted against Huntington or TCF; delays in completing the transaction; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); the failure to satisfy any of the conditions to the transaction on a timely basis or at all; the possibility that the anticipated benefits of the transaction with TCF are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Huntington and TCF dodoes business; the possibility that the transactionproposed branch divestiture will not close when expected or at all because required regulatory approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; the possibility that the branch divestiture may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; the ability to complete the transaction and integration of Huntington and TCF successfully; the dilution caused by Huntington’s issuance of additional shares of its capital stock in connection with the transaction;branch divestiture; and other factors that may affect the future results of Huntington and TCF.Huntington.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Huntington nor TCF assumesdoes 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.
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Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding our 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 herein.
Significant 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 “Significant Items”. Most often, these Significant Items result from factors originating outside the Company; e.g., regulatory actions / assessments, windfall gains, one-time tax assessments / refunds, litigation actions, etc. In other cases, they may result from Management decisions associated with significant corporate actions outside of the ordinary course of business; e.g., merger / restructuring charges, recapitalization actions, goodwill impairment, etc.
Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not define a Significant Item. For example, changes in the provision for credit losses, gains / losses from investment activities, asset valuation writedowns, etc., reflect ordinary banking activities and are, therefore, typically excluded from consideration as a Significant Item.
Management believes the disclosure of Significant Items, when appropriate, aids analysts/investors in better understanding corporate performance and trends so that they can ascertain which of such items, if any, they may wish to include/exclude from their analysis of the company’s performance - i.e., within the context of determining how that performance differed from their expectations, as well as how, if at all, to adjust their estimates of future performance accordingly. To this end, Management has adopted a practice of listing “Significant Items” in its external disclosure documents (e.g., earnings press releases, quarterly performance discussions, investor presentations, Forms 10-Q and 10-K).
Significant Items for any particular period are not intended to be a complete list of items that may materially impact current or future period performance.
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 an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a federal statutory tax rate of 21 percent. We encourage readers to
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consider the Unaudited Condensed Consolidated Financial Statements and other financial information contained in this Form 10-Q in their entirety, and not to rely on any single financial measure.
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,
•Tangible equity to tangible assets, and
•Tangible common equity to risk-weighted assets using Basel III definitions.
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 our capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes goodwill and other intangible assets, 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 are considered non-GAAP financial measures.
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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, we encourage readers to consider the Unaudited Condensed Consolidated Financial Statements and other financial information contained in this Form 10-Q in their entirety, and not to rely on any single financial measure.
Risk Factors
More information on risk can be found in Item 1A Risk Factors below and in the Risk Factors section included in Item 1A of our 2020 Annual Report on Form 10-K. Additional information regarding risk factors can also be found in the Risk Management and Capital discussion of this report.
Critical Accounting Policies and Use of Significant Estimates
Our Consolidated Financial Statements are prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires us to establish accounting policies and make estimates that affect amounts reported in our Consolidated Financial Statements. Note 1 of the Notes to Consolidated Financial Statements included in our December 31, 2020 Annual Report on Form 10-K, as supplemented by this report including this MD&A, describes the significant accounting policies we used in our Consolidated Financial Statements.
An accounting estimate requires assumptions and judgments about uncertain matters that could have a material effect on the Consolidated Financial Statements. Estimates are made under facts and circumstances at a point in time, and changes in those facts and circumstances could produce results substantially different from those estimates. Our most significant accounting policies and estimates and their related application are discussed in our December 31, 2020 Annual Report on Form 10-K.
Allowance for Credit Losses
Our ACL at March 31,June 30, 2021 represents our current estimate of the lifetime credit losses expected from our loan and lease portfolio and our unfunded loan commitments and letters of credit.lending commitments. Management estimates the allowance for credit lossesACL by projecting probability of default, loss given default and exposure at default conditional on economic parameters, for the remaining contractual term. Internal factors that impact the quarterly allowance estimate include the level of outstanding balances, the portfolio performance and assigned risk ratings.
One of the most significant judgments influencing the allowance for credit lossesACL estimate is the macro-economic forecasts. Key external economic parameters that directly impact our loss modeling framework include forecasted footprint unemployment rates and Gross Domestic Product. Changes in the economic forecasts could significantly affect the estimated credit losses, which could potentially lead to materially different allowance levels from one reporting period to the next.
Given the dynamic relationship between macro-economic variables within our modeling framework, it is difficult to estimate the impact of a change in any one individual variable on the allowance. As a result, management uses a
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probability-weighted approach that incorporates a baseline, an adverse and a more favorable economic scenario when formulating the quantitative estimate.
However, to illustrate a hypothetical sensitivity analysis, management calculated a quantitative allowance using a 100% weighting applied to an adverse scenario. This scenario includes assumptions around new infections and COVID-19 deaths being significantly above the baseline projections, leading to a much slower re-opening of the economy. Under this scenario, as an example, the unemployment rate remains elevated for a prolonged period and is estimated to remain at 8.0%7.3% and 6.5% at the end of 2022 and 2023, respectively. These numbers represent approximately 3.5%3.8% and 3% higher unemployment estimates than baseline scenario projections of 4.5%3.5% and 4.2%3.5%, respectively for the same time periods.
To demonstrate the sensitivity to key economic parameters used in the calculation of our ACL at June 30, 2021, management calculated the difference between a 100% baseline weightingour quantitative ACL and a 100% adverse scenario weighting for modeled results. Thisscenario. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in an incremental quantitative allowance impacta hypothetical increase in our ACL of approximately $600 million.
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$1.1 billion at June 30, 2021.
The resulting difference is not intended to represent an expected increase in allowance levels for a number of reasons including the following:
•Management uses a weighted approach applied to multiple economic scenarios for its allowance estimation process;
•The highly uncertain economic environment;
•The difficulty in predicting the inter-relationships between the economic parameters used in the various economic scenarios; and
•The sensitivity estimate does not account for any general reserve components and associated risk profile adjustments incorporated by management as part of its overall allowance framework.
We regularly review our ACL for appropriateness by performing on-going evaluations of the loan and lease portfolio. In doing so, we consider factors such as the differing economic risks associated with each loan category, the financial condition of specific borrowers, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any guarantees or other documented support. We also evaluate the impact of changes in key economic parameters and overall economic conditions on the ability of borrowers to meet their financial obligations when quantifying our exposure to credit losses and assessing the appropriateness of our ACL at each reporting date. There is no certainty that our ACL will be appropriate over time to cover losses in our portfolio as economic and market conditions may ultimately differ from our reasonable and supportable forecast. Additionally, events adversely affecting specific customers, industries, or our markets such as the current COVID-19 pandemic, could severely impact our current expectations. If the credit quality of our customer base materially deteriorates or the risk profile of a market, industry, or group of customers changes materially, our net income and capital could be materially adversely affected which, in turn could have a material adverse effect on our financial condition and results of operations. The extent to which the current COVID-19 pandemic will continue to negatively impact our businesses, financial condition, liquidity and results will depend on future developments, which are highly uncertain and cannot be forecasted with precision at this time. For more information, see Note 4 “Loans and Leases” and Note 5 “Allowance for Credit Losses” of the Notes to Unaudited Condensed Consolidated Financial Statements.
Acquisition Method of Accounting
The acquisition method of accounting requires that acquired assets and liabilities in a business combination are recorded at their fair values as of the date of acquisition. This method often involves estimates based on third party valuations or internal valuations based on discounted cash flow analyses or other valuation techniques, all of which are inherently subjective. Acquisition-related restructuring costs are expensed as incurred. The acquisition method of accounting does allow for a measurement period to make adjustments to acquisition accounting for up to one year after the acquisition date, for new information that existed at the acquisition date but may not have been known or available at that time. For further information, refer to Note 2 “Acquisition of TCF Financial Corporation” of the Notes to Unaudited Condensed Consolidated Financial Statements.
Fair Value Measurement
Certain assets and liabilities are measured at fair value on a recurring basis, including securities, and derivative instruments. Assets and liabilities carried at fair value inherently include subjectivity and may require the use of
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significant assumptions, adjustments and judgment including, among others, discount rates, rates of return on assets, cash flows, default rates, loss rates, terminal values and liquidation values. A significant change in assumptions may result in a significant change in fair value, which in turn, may result in a higher degree of financial statement volatility and could result in significant impact on our results of operations, financial condition or disclosures of fair value information.
In addition to the above mentioned on-going fair value measurements, fair value is also used for recording business combinations and measuring other non-recurring financial assets and liabilities. At June 9, 2021, approximately $46 billion of our assets and $43 billion of our liabilities were recorded at fair value as a result of applying the acquisition method of accounting.
The fair value hierarchy requires use of observable inputs first and subsequently unobservable inputs when observable inputs are not available. Our fair value measurements involve various valuation techniques and models, which involve inputs that are observable (Level 1 or Level 2 in fair value hierarchy), when available. The level of judgment required to determine fair value is dependent on the methods or techniques used in the process. Assets and liabilities that are measured at fair value using quoted prices in active markets (Level 1) do not require significant judgment while the valuation of assets and liabilities when quoted market prices are not available (Levels 2 and 3) may require significant judgment to assess whether observable or unobservable inputs for those assets and liabilities provide reasonable determination of fair value. The fair values measured at each level of the fair value hierarchy, additional discussion regarding fair value measurements, and a brief description of how fair value is determined for categories that have unobservable inputs, can be found in Note 1113 “Fair Values of Assets and Liabilities” of the Notes to Unaudited Condensed Consolidated Financial Statements.
Goodwill and Other Intangible Assets
The acquisition method of accounting requires that acquired assets and liabilities are recorded at their fair values as of the date of acquisition. This often involves estimates based on third party valuations or internal valuations based on discounted cash flow analyses or other valuation techniques, all of which are inherently subjective. Acquisitions typically result in goodwill, the amount by which the cost of net assets acquired in a business combination exceeds their fair value, which is subject to impairment testing at least annually. The
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amortization of identified intangible assets recognized in a business combination is based upon the estimated economic benefits to be received over their economic life, which is also subjective. Customer attrition rates that are based on historical experience are used to determine the estimated economic life of certain intangibles assets, including but not limited to, customer deposit intangibles.

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Item 1: Financial Statements
Huntington Bancshares Incorporated
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,December 31,
(dollar amounts in millions)20212020
Assets
Cash and due from banks$1,096 $1,319 
Interest-bearing deposits at Federal Reserve Bank7,493 5,276 
Interest-bearing deposits in banks52 117 
Trading account securities51 62 
Available-for-sale securities19,375 16,485 
Held-to-maturity securities7,815 8,861 
Other securities411 418 
Loans held for sale (includes $1,531 and $1,198 respectively, measured at fair value)(1)1,537 1,275 
Loans and leases (includes $118 and $94 respectively, measured at fair value)(1)80,230 81,608 
Allowance for loan and lease losses(1,703)(1,814)
Net loans and leases78,527 79,794 
Bank owned life insurance2,581 2,577 
Premises and equipment747 757 
Goodwill1,990 1,990 
Servicing rights and other intangible assets480 428 
Other assets3,613 3,679 
Total assets$125,768 $123,038 
Liabilities and shareholders’ equity
Liabilities
Deposits$102,184 $98,948 
Short-term borrowings219 183 
Long-term debt7,210 8,352 
Other liabilities2,555 2,562 
Total liabilities112,168 110,045 
Commitments and Contingent Liabilities (Note 14)00
Shareholders’ equity
Preferred stock2,676 2,191 
Common stock10 10 
Capital surplus8,806 8,781 
Less treasury shares, at cost(59)(59)
Accumulated other comprehensive (loss) gain(56)192 
Retained earnings2,223 1,878 
Total shareholders’ equity13,600 12,993 
Total liabilities and shareholders’ equity$125,768 $123,038 
Common shares authorized (par value of $0.01)1,500,000,000 1,500,000,000 
Common shares outstanding1,018,052,923 1,017,196,776 
Treasury shares outstanding5,041,104 5,062,054 
Preferred stock, authorized shares6,617,808 6,617,808 
Preferred shares outstanding1,250,500 750,500 

June 30,December 31,
(dollar amounts in millions)20212020
Assets
Cash and due from banks$1,479 $1,319 
Interest-bearing deposits at Federal Reserve Bank11,776 5,276 
Interest-bearing deposits in banks671 117 
Trading account securities93 62 
Available-for-sale securities22,915 16,485 
Held-to-maturity securities11,415 8,861 
Other securities692 418 
Loans held for sale (includes $1,141 and $1,198 respectively, measured at fair value)(1)1,391 1,275 
Loans and leases (includes $131 and $94 respectively, measured at fair value)(1)111,905 81,608 
Allowance for loan and lease losses(2,218)(1,814)
Net loans and leases109,687 79,794 
Bank owned life insurance2,763 2,577 
Premises and equipment1,128 757 
Goodwill5,316 1,990 
Servicing rights and other intangible assets619 428 
Other assets5,227 3,679 
Total assets$175,172 $123,038 
Liabilities and shareholders’ equity
Liabilities
Deposits:
Demand deposits—noninterest-bearing (includes $488 at June 30, 2021 classified as held-for-sale)$45,249 $28,553 
Interest-bearing (includes $439 at June 30, 2021 classified as held-for-sale)97,556 70,395 
Total deposits142,805 98,948 
Short-term borrowings391 183 
Long-term debt7,342 8,352 
Other liabilities4,103 2,562 
Total liabilities154,641 110,045 
Commitments and Contingent Liabilities (Note 16)00
Shareholders’ equity
Preferred stock2,851 2,191 
Common stock15 10 
Capital surplus15,830 8,781 
Less treasury shares, at cost(105)(59)
Accumulated other comprehensive (loss) gain(19)192 
Retained earnings1,939 1,878 
Total Huntington Bancshares Inc shareholders’ equity20,511 12,993 
Non-controlling interest20 0 
Total equity20,531 12,993 
Total liabilities and shareholders’ equity$175,172 $123,038 
Common shares authorized (par value of $0.01)2,250,000,000 1,500,000,000 
Common shares outstanding1,476,557,426 1,017,196,776 
Treasury shares outstanding8,056,484 5,062,054 
Preferred stock, authorized shares6,617,808 6,617,808 
Preferred shares outstanding1,257,500 750,500 
(1)Amounts represent loans for which Huntington has elected the fair value option. See Note 1113 “Fair Values of Assets and Liabilities”.
See Notes to Unaudited Condensed Consolidated Financial Statements
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Huntington Bancshares IncorporatedHuntington Bancshares IncorporatedHuntington Bancshares Incorporated
Condensed Consolidated Statements of IncomeCondensed Consolidated Statements of IncomeCondensed Consolidated Statements of Income
(Unaudited)(Unaudited)(Unaudited)
Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions, except per share data, share count in thousands)(dollar amounts in millions, except per share data, share count in thousands)20212020(dollar amounts in millions, except per share data, share count in thousands)2021202020212020
Interest and fee income:Interest and fee income:Interest and fee income:
Loans and leasesLoans and leases$752 $809 Loans and leases$806 $754 $1,558 $1,563 
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
TaxableTaxable49 76 Taxable67 64 116 141 
Tax-exemptTax-exempt13 18 Tax-exempt13 15 26 33 
Held-to-maturity securities—taxableHeld-to-maturity securities—taxable42 59 Held-to-maturity securities—taxable35 59 77 117 
Other securities—taxableOther securities—taxable2 2 Other securities—taxable2 1 4 3 
OtherOther11 11 Other12 9 23 20 
Total interest incomeTotal interest income869 975 Total interest income935 902 1,804 1,877 
Interest expense:Interest expense:Interest expense:
DepositsDeposits11 105 Deposits12 46 23 151 
Short-term borrowingsShort-term borrowings0 12 Short-term borrowings0 1 0 13 
Long-term debtLong-term debt(114)68 Long-term debt85 63 (29)131 
Total interest expenseTotal interest expense(103)185 Total interest expense97 110 (6)295 
Net interest incomeNet interest income972 790 Net interest income838 792 1,810 1,582 
Provision for credit lossesProvision for credit losses(60)441 Provision for credit losses211 327 151 768 
Net interest income after provision for credit lossesNet interest income after provision for credit losses1,032 349 Net interest income after provision for credit losses627 465 1,659 814 
Mortgage banking incomeMortgage banking income100 58 Mortgage banking income67 96 167 154 
Service charges on deposit accountsService charges on deposit accounts69 87 Service charges on deposit accounts88 60 157 148 
Card and payment processing incomeCard and payment processing income65 58 Card and payment processing income80 59 145 117 
Trust and investment management servicesTrust and investment management services52 47 Trust and investment management services56 45 108 92 
Leasing revenueLeasing revenue12 7 16 10 
Capital markets feesCapital markets fees29 33 Capital markets fees35 31 64 64 
Insurance incomeInsurance income27 23 Insurance income25 25 52 48 
Bank owned life insurance incomeBank owned life insurance income16 16 Bank owned life insurance income16 17 32 32 
Gain on sale of loansGain on sale of loans3 8 Gain on sale of loans3 8 6 17 
Net gains (losses) on sales of securitiesNet gains (losses) on sales of securities10 (1)10 (1)
Other noninterest incomeOther noninterest income34 31 Other noninterest income52 44 82 71 
Total noninterest incomeTotal noninterest income395 361 Total noninterest income444 391 839 752 
Personnel costsPersonnel costs468 395 Personnel costs592 418 1,060 814 
Outside data processing and other servicesOutside data processing and other services115 85 Outside data processing and other services162 90 277 175 
EquipmentEquipment46 41 Equipment55 46 101 87 
Net occupancyNet occupancy42 40 Net occupancy72 39 114 79 
Lease financing equipment depreciationLease financing equipment depreciation5 1 5 1 
Professional servicesProfessional services17 11 Professional services48 11 65 22 
Amortization of intangiblesAmortization of intangibles10 11 Amortization of intangibles11 10 21 21 
MarketingMarketing14 9 Marketing15 5 29 14 
Deposit and other insurance expenseDeposit and other insurance expense8 9 Deposit and other insurance expense8 9 16 18 
Other noninterest expenseOther noninterest expense73 51 Other noninterest expense104 46 177 96 
Total noninterest expenseTotal noninterest expense793 652 Total noninterest expense1,072 675 1,865 1,327 
Income before income taxes634 58 
(Loss) income before income taxes(Loss) income before income taxes(1)181 633 239 
Provision for income taxesProvision for income taxes102 10 Provision for income taxes14 31 116 41 
Net income532 48 
(Loss) income after income taxes(Loss) income after income taxes(15)150 517 198 
Income attributable to non-controlling interestIncome attributable to non-controlling interest0 0 0 0 
Net (loss) income attributable to Huntington Bancshares IncNet (loss) income attributable to Huntington Bancshares Inc(15)150 517 198 
Dividends on preferred sharesDividends on preferred shares31 18 Dividends on preferred shares43 19 74 37 
Net income applicable to common shares$501 $30 
Net (loss) income applicable to common sharesNet (loss) income applicable to common shares$(58)$131 $443 $161 
Average common shares—basicAverage common shares—basic1,017,512 1,017,643 Average common shares—basic1,125,039 1,016,259 1,071,276 1,016,951 
Average common shares—dilutedAverage common shares—diluted1,041,003 1,034,576 Average common shares—diluted1,125,039 1,028,683 1,094,474 1,031,629 
Per common share:Per common share:Per common share:
Net income—basic$0.49 $0.03 
Net income—diluted0.48 0.03 
Net (loss) income—basicNet (loss) income—basic$(0.05)$0.13 $0.41 $0.16 
Net (loss) income—dilutedNet (loss) income—diluted(0.05)0.13 0.40 0.16 
See Notes to Unaudited Condensed Consolidated Financial Statements
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Huntington Bancshares Incorporated
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
March 31,		 Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)2021202020212020
Net income$532 $48 
Net (loss) income attributable to Huntington Bancshares IncNet (loss) income attributable to Huntington Bancshares Inc$(15)$150 $517 $198 
Unrealized net gains (losses) on available-for-sale securities arising during the period, net of reclassification for net realized gains and losses(216)173 
Net unrealized gains (losses) on available-for-sale securitiesNet unrealized gains (losses) on available-for-sale securities78 62 (138)235 
Change in fair value related to cash flow hedgesChange in fair value related to cash flow hedges(34)308 Change in fair value related to cash flow hedges(39)11 (73)319 
Translation adjustments, net of hedgesTranslation adjustments, net of hedges(6)0 (6)0 
Change in accumulated unrealized gains (losses) for pension and other post-retirement obligationsChange in accumulated unrealized gains (losses) for pension and other post-retirement obligations2 2 Change in accumulated unrealized gains (losses) for pension and other post-retirement obligations4 (10)6 (8)
Other comprehensive income, net of tax(248)483 
Other comprehensive income (loss), net of taxOther comprehensive income (loss), net of tax37 63 (211)546 
Comprehensive incomeComprehensive income$284 $531 Comprehensive income$22 $213 $306 $744 
See Notes to Unaudited Condensed Consolidated Financial Statements

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Huntington Bancshares Incorporated
Condensed Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(dollar amounts in millions, share amounts in thousands)(dollar amounts in millions, share amounts in thousands)Preferred StockCommon StockCapital SurplusTreasury StockAccumulated Other Comprehensive Gain (Loss)Retained Earnings (dollar amounts in millions, share amounts in thousands)Preferred StockCommon StockCapital SurplusTreasury StockAccumulated Other Comprehensive Gain (Loss)Retained EarningsNon-controllingTotal
AmountSharesAmountSharesAmountTotalAmountSharesAmountSharesAmountTotalinterestEquity
Three Months Ended March 31, 2021
Three Months Ended June 30, 2021Three Months Ended June 30, 2021
Balance, beginning of periodBalance, beginning of period$2,191 1,022,258 $10 $8,781 (5,062)$(59)$192 $1,878 $12,993 Balance, beginning of period$2,676 1,023,094 $10 $8,806 (5,041)$(59)$(56)$2,223 $13,600 $0 $13,600 
Net lossNet loss(15)(15)— (15)
Other comprehensive income, net of taxOther comprehensive income, net of tax37 37 37 
TCF Financial Corp acquisition:TCF Financial Corp acquisition:
Issuance of common stockIssuance of common stock458,171 5 6,993 (37)6,961 6,961 
Issuance of Series I preferred stockIssuance of Series I preferred stock175 10 185 185 
Net proceeds from issuance of Preferred StockNet proceeds from issuance of Preferred Stock0 — 0 
Net income532 532 
Other comprehensive income (loss), net of tax(248)(248)
Net proceeds from issuance of Series H Preferred Stock485 485 
Cash dividends declared:Cash dividends declared:Cash dividends declared:
Common ($0.15 per share)Common ($0.15 per share)(156)(156)Common ($0.15 per share)(224)(224)(224)
PreferredPreferred(31)(31)Preferred(43)(43)(43)
Recognition of the fair value of share-based compensationRecognition of the fair value of share-based compensation28 28 Recognition of the fair value of share-based compensation38 38 38 
Other share-based compensation activityOther share-based compensation activity836 — (3)— (3)Other share-based compensation activity3,349 0 (17)0 (17)(17)
OtherOther21 — — — Other— (3,015)(9)(2)(11)20 9 
Balance, end of periodBalance, end of period$2,676 1,023,094 $10 $8,806 (5,041)$(59)$(56)$2,223 $13,600 Balance, end of period$2,851 1,484,614 $15 $15,830 (8,056)$(105)$(19)$1,939 $20,511 $20 $20,531 
Three Months Ended March 31, 2020
Three Months Ended June 30, 2020Three Months Ended June 30, 2020
Balance, beginning of periodBalance, beginning of period$1,203 1,024,541 $10 $8,806 (4,537)$(56)$(256)$2,088 $11,795 Balance, beginning of period$1,203 1,018,752 $10 $8,728 (4,534)$(56)$227 $1,657 $11,769 $0 $11,769 
Cumulative-effect adjustment (ASU 2016-01)(306)(306)
Net incomeNet income48 48 Net income150 150 — 150 
Other comprehensive income (loss), net of tax483 483 
Other comprehensive income, net of taxOther comprehensive income, net of tax63 63 63 
Net proceeds from issuance of preferred stockNet proceeds from issuance of preferred stock494494 494 
Repurchase of common stock(7,088)— (88)(88)
Cash dividends declared:Cash dividends declared:Cash dividends declared:
Common ($0.15 per share)Common ($0.15 per share)(155)(155)Common ($0.15 per share)(155)(155)(155)
PreferredPreferred(18)(18)Preferred(19)(19)(19)
Recognition of the fair value of share-based compensationRecognition of the fair value of share-based compensation15 15 Recognition of the fair value of share-based compensation25 25 25 
Other share-based compensation activityOther share-based compensation activity1,299 — (5)— (5)Other share-based compensation activity3,557 0 (10)0 (10)(10)
OtherOther3 — — Other(465)(3)0(3)(3)
Balance, end of periodBalance, end of period$1,203 1,018,752 $10 $8,728 (4,534)$(56)$227 $1,657 $11,769 Balance, end of period$1,697 1,022,309 $10 $8,743 (4,999)$(59)$290 $1,633 $12,314 $0 $12,314 
See Notes to Unaudited Condensed Consolidated Financial Statements
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(dollar amounts in millions, share amounts in thousands)Preferred StockCommon StockCapital SurplusTreasury StockAccumulated Other Comprehensive Gain (Loss)Retained EarningsNon-controlling 
AmountSharesAmountSharesAmountTotalinterestTotal
Six Months Ended June 30, 2021
Balance, beginning of period$2,191 1,022,258 $10 $8,781 (5,062)$(59)$192 $1,878 $12,993 $0 $12,993 
Net income517 517 — 517 
Other comprehensive income (loss), net of tax(211)(211)(211)
TCF Financial Corp acquisition:— 
Issuance of common stock458,171 5 6,993 (37)6,961 6,961 
Issuance of Series I preferred stock175 10 185 185 
Net proceeds from issuance of preferred stock485 485 485 
Cash dividends declared:
Common ($0.30 per share)(380)(380)(380)
Preferred(74)(74)(74)
Recognition of the fair value of share-based compensation66 66 66 
Other share-based compensation activity4,185 0 (20)0 (20)(20)
Other0 (2,994)(9)0 (2)(11)209 
Balance, end of period$2,851 1,484,614 $15 $15,830 (8,056)$(105)$(19)$1,939 $20,511 $20 $20,531 
Six Months Ended June 30, 2020
Balance, beginning of period$1,203 1,024,541 $10 $8,806 (4,537)$(56)$(256)$2,088 $11,795 $0 $11,795 
Cumulative-effect of change in accounting principle, net of tax(306)(306)(306)
Net income198 198 — 198 
Other comprehensive income (loss), net of tax546 546 546 
Net proceeds from issuance of preferred stock494 494 494 
Repurchases of common stock(7,088)0(88)(88)(88)
Cash dividends declared:
Common ($0.30 per share)(310)(310)(310)
Preferred(37)(37)(37)
Recognition of the fair value of share-based compensation40 40 40 
Other share-based compensation activity4,856 0 (15)0 (15)(15)
Other000 (462)(3)0(3)(3)
Balance, end of period$1,697 1,022,309 $10 $8,743 (4,999)$(59)$290 $1,633 $12,314 $0 $12,314 
See Notes to Unaudited Condensed Consolidated Financial Statements
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Huntington Bancshares Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31, Six Months Ended June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)20212020
Operating activitiesOperating activitiesOperating activities
Net incomeNet income$532 $48 Net income$517 $198 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit lossesProvision for credit losses(60)441 Provision for credit losses151 768 
Depreciation and amortizationDepreciation and amortization71 119 Depreciation and amortization274 178 
Share-based compensation expenseShare-based compensation expense28 15 Share-based compensation expense66 40 
Deferred income tax expense (benefit)Deferred income tax expense (benefit)61 (37)Deferred income tax expense (benefit)34 (66)
Net change in:Net change in:Net change in:
Trading account securitiesTrading account securities11 63 Trading account securities(31)54 
Loans held for saleLoans held for sale(406)(20)Loans held for sale50 (181)
Other assetsOther assets80 (1,023)Other assets(416)(1,032)
Other liabilitiesOther liabilities(428)892 Other liabilities261 755 
Net cash (used in) provided by operating activities(111)498 
Other, netOther, net82 (4)
Net cash provided by operating activitiesNet cash provided by operating activities988 710 
Investing activitiesInvesting activitiesInvesting activities
Change in interest bearing deposits in banksChange in interest bearing deposits in banks189 (26)Change in interest bearing deposits in banks415 (27)
Net cash received from business combinationNet cash received from business combination466 0 
Proceeds from:Proceeds from:Proceeds from:
Maturities and calls of available-for-sale securitiesMaturities and calls of available-for-sale securities1,758 669 Maturities and calls of available-for-sale securities3,683 1,947 
Maturities and calls of held-to-maturity securitiesMaturities and calls of held-to-maturity securities1,043 398 Maturities and calls of held-to-maturity securities1,995 1,173 
Maturities and calls of other securitiesMaturities and calls of other securities0 65 
Sales of available-for-sale securitiesSales of available-for-sale securities10 19 Sales of available-for-sale securities5,838 390 
Purchases of available-for-sale securitiesPurchases of available-for-sale securities(4,857)(2,476)Purchases of available-for-sale securities(10,285)(2,744)
Purchases of held-to-maturity securitiesPurchases of held-to-maturity securities(1,547)0 
Purchases of other securitiesPurchases of other securities0 (62)
Net proceeds from sales of portfolio loans158 191 
Net proceeds from sales of portfolio loans and leasesNet proceeds from sales of portfolio loans and leases334 416 
Principal payments received under direct finance and sales-type leasesPrincipal payments received under direct finance and sales-type leases188 171 Principal payments received under direct finance and sales-type leases408 346 
Net loan and lease activity, excluding sales and purchasesNet loan and lease activity, excluding sales and purchases1,402 (2,926)Net loan and lease activity, excluding sales and purchases3,153 (5,443)
Purchases of premises and equipmentPurchases of premises and equipment(22)(11)Purchases of premises and equipment(99)(49)
Purchases of loans and leasesPurchases of loans and leases(266)(311)Purchases of loans and leases(493)(402)
Other, netOther, net21 (20)Other, net118 21 
Net cash used in investing activities(376)(4,322)
Net cash provided by (used in) investing activitiesNet cash provided by (used in) investing activities3,986 (4,369)
Financing activitiesFinancing activitiesFinancing activities
Increase in depositsIncrease in deposits3,236 4,483 Increase in deposits5,194 11,344 
Increase in short-term borrowings53 458 
Decrease in short-term borrowingsDecrease in short-term borrowings(1,152)(2,293)
Net proceeds from issuance of long-term debtNet proceeds from issuance of long-term debt35 1,286 Net proceeds from issuance of long-term debt59 1,321 
Maturity/redemption of long-term debtMaturity/redemption of long-term debt(1,135)(1,540)Maturity/redemption of long-term debt(2,526)(1,634)
Dividends paid on preferred stockDividends paid on preferred stock(35)(18)Dividends paid on preferred stock(66)(37)
Dividends paid on common stockDividends paid on common stock(153)(155)Dividends paid on common stock(308)(307)
Repurchases of common stockRepurchases of common stock0 (88)Repurchases of common stock0 (88)
Net proceeds from issuance of preferred stockNet proceeds from issuance of preferred stock485 0 Net proceeds from issuance of preferred stock485 494 
Payments related to tax-withholding for share based compensation awards(5)(6)
Other, netOther, net0 1 Other, net0 (18)
Net cash provided by financing activitiesNet cash provided by financing activities2,481 4,421 Net cash provided by financing activities1,686 8,782 
Increase in cash and cash equivalentsIncrease in cash and cash equivalents1,994 597 Increase in cash and cash equivalents6,660 5,123 
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period6,595 1,170 Cash and cash equivalents at beginning of period6,595 1,170 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$8,589 $1,767 Cash and cash equivalents at end of period$13,255 $6,293 
2021 1Q Form 10-Q 5245 Huntington Bancshares Incorporated

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Three Months Ended March 31, Six Months Ended June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)20212020
Supplemental disclosures:Supplemental disclosures:Supplemental disclosures:
Interest paidInterest paid$49 $197 Interest paid$87 $297 
Income taxes paidIncome taxes paid3 2 Income taxes paid200 10 
Non-cash activitiesNon-cash activitiesNon-cash activities
Loans transferred to held-for-sale from portfolioLoans transferred to held-for-sale from portfolio84 313 Loans transferred to held-for-sale from portfolio190589
Loans transferred to portfolio from held-for-saleLoans transferred to portfolio from held-for-sale37 4 Loans transferred to portfolio from held-for-sale6023
Transfer of securities from available-for-sale to held-to-maturityTransfer of securities from available-for-sale to held-to-maturity0 1,520 Transfer of securities from available-for-sale to held-to-maturity3,007 1,520 
Business CombinationBusiness Combination
Fair value of tangible assets acquiredFair value of tangible assets acquired46,256 0 
Goodwill and other intangible assetsGoodwill and other intangible assets3,483 0 
Liabilities assumedLiabilities assumed42,534 0 
Preferred stock issued in business combinationPreferred stock issued in business combination185 0 
Common Stock issued in business combinationCommon Stock issued in business combination6,998 0 
See Notes to Unaudited Condensed Consolidated Financial Statements


462021 2Q Form 10-Q Huntington Bancshares Incorporated53

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Huntington Bancshares Incorporated
Notes to Unaudited Condensed Consolidated Financial Statements
1. BASIS OF PRESENTATION
The accompanying Unaudited Condensed Consolidated Financial Statements of Huntington reflect all adjustments consisting of normal recurring accruals which are, in the opinion of Management,management, necessary for a fair statement of the consolidated financial position, the results of operations, and cash flows for the periods presented. These Unaudited Condensed Consolidated Financial Statements have been prepared according to the rules and regulations of the SEC and, therefore, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted. The Notes to Consolidated Financial Statements appearing in Huntington’s 2020 Annual Report on Form 10-K, which include descriptions of significant accounting policies, as updated by the information contained in this report, should be read in conjunction with these interim financial statements.
For statement of cash flow purposes, cash and cash equivalents are defined as the sum of cash and due from banks and interest-bearing deposits at Federal Reserve Bank.
Certain prior period amounts have been reclassified to conform to current year’s presentation.
In conjunction with applicable accounting standards, all material subsequent events have been either recognized in the Unaudited Condensed Consolidated Financial Statements or disclosed in the Notes to Unaudited Condensed Consolidated Financial Statements. No subsequent events were disclosed for the current period.
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2. PENDING ACQUISITION OF TCF FINANCIAL CORPORATION
On December 13, 2020,June 9, 2021, Huntington announcedclosed the signingacquisition of a definitive merger agreement (the “ Merger Agreement”). Under the terms of the Merger Agreement, which was unanimously approved by the boards of directors of both companies, TCF Financial Corporation (“TCF”), the parent company of TCF National Bank, will merge into Huntington in an all-stock transaction valued at approximately $6.0 billion based on the closing stock price on the day preceding the announcement.$7.2 billion. TCF iswas a financial holding company headquartered in Detroit, Michigan with reported total assets of $47.8 billion based on their balance sheet at December 31, 2020.operations across the Midwest. The acquisition added depth in existing markets and new markets for expansion and brings complimentary businesses together to drive synergies and growth.
Under the terms of the Merger Agreement,agreement, TCF shareholders will receivereceived 3.0028 shares of Huntington common stock for each share of TCF common stock. Holders of TCF common stock will also receivereceived cash in lieu of fractional shares. EachIn addition, each outstanding share of 5.70% Series C Non-Cumulative Perpetual Preferred Stock of TCF will bewas converted into the right to receive 1 share of a newly created series of preferred stock of Huntington.Huntington, Series I Preferred Stock.
The acquisition of TCF has been accounted for as a business combination. We recorded the estimate of fair value based on initial valuations available at June 9, 2021. Due to the timing of the transaction closing date and Huntington’s quarterly report on Form 10-Q, these estimated fair values are considered preliminary as of June 30, 2021, and subject to adjustment for up to one year after June 9, 2021. While we believe that the information available on June 9, 2021 provided a reasonable basis for estimating fair value, we expect that we may obtain additional information and evidence during the measurement period that would result in changes to the estimated fair value amounts. Valuations subject to change include, but are not limited to, loans and leases, certain deposits, deferred tax assets and liabilities and certain other assets and other liabilities.

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The following table provides a preliminary allocation of consideration paid for the fair value of assets acquired and liabilities and equity assumed from TCF as of June 9, 2021.
TCF
(dollar amounts in millions)UPBFair Value
Assets acquired:
Cash and due from banks$466 
Interest-bearing deposits at Federal Reserve Bank719 
Interest-bearing deposits in banks312 
Available-for-sale securities8,900 
Other securities358 
Loans held for sale363 
Loans and leases:
Commercial:
Commercial and industrial$12,726 12,441 
Commercial real estate8,125 7,869 
Lease financing2,929 2,912 
Total commercial23,780 23,222 
Consumer:
Automobile322 317 
Residential mortgage6,267 6,273 
Home equity2,644 2,607 
RV and marine581 570 
Other consumer179 167 
Total consumer9,993 9,934 
Total loans and leases$33,773 33,156 
Bank owned life insurance181 
Premises and equipment360 
Core deposit intangible92 
Other intangible assets6 
Servicing rights59 
Servicing rights and other intangible assets157 
Other assets1,441 
Total assets acquired46,413 
Liabilities and equity assumed:
Deposits38,663 
Short-term borrowings1,306 
Long-term debt1,516 
Other liabilities1,049 
Total liabilities42,534 
Non-controlling interest22 
Net assets acquired$3,857 
Consideration:
Fair value of common stock issued$6,998 
Fair value of preferred stock exchange185 
Total consideration$7,183 
Goodwill$3,326 
In connection with the acquisition, the Company recorded approximately $3.3 billion of goodwill. The goodwill was the result of expected synergies, operational efficiencies and other factors. Information regarding the allocation of goodwill recorded as a result of the acquisition to the Company’s reportable segments, as well as the carrying amounts and amortization of core deposit and other intangible assets, are provided in Note 7 “Goodwill and Other Intangible Assets” of the Notes to Unaudited Condensed Consolidated Financial Statements.
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The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above.
Cash and due from banks and interest-bearing deposits in banks: The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.
Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair value estimates are based on observable inputs including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market. In the absence of observable inputs, fair value is estimated based on pricing models and/or discounted cash flow methodologies.
Loans and leases: Fair values for loans and leases were based on a discounted cash flow methodology that considered factors including the type of loan and lease and related collateral, classification status, fixed or variable interest rate, term, amortization status and current discount rates. Loans and leases were grouped together according to similar characteristics when applying various valuation techniques. The discount rates used for loans and leases are based on current market rates for new originations of comparable loans and leases and include adjustments for liquidity. The discount rate does not include a factor for credit losses as that has been included as a reduction to the estimated cash flows.
CDI: This intangible asset represents the low cost of funding acquired core deposits provide relative to the Company’s marginal cost of funds. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds, and the interest costs associated with customer deposits. The CDI is being amortized over 10 years based upon the period over which estimated economic benefits are estimated to be received.
Deposits: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits.
Debt: The fair values of long-term debt instruments are estimated based on quoted market prices for the instrument if available, or for similar instruments if not available, or by using discounted cash flow analyses, based on current incremental borrowing rates for similar types of instruments.
Premises and equipment: The fair values of premises were based on a market approach, with Huntington obtaining third-party appraisals and broker opinions of value for land, office and branch space.
Servicing rights: Servicing rights are valued using an option-adjusted spread valuation model to project cash flows over multiple interest rate scenarios which are then discounted at risk-adjusted rates. The model considers portfolio characteristics, prepayment rates, delinquency rates, contractually specified servicing fees, late charges, other ancillary revenue, costs to service and other economic factors. Fair value estimates and assumptions are compared to industry benchmarks, recent market activity, historical portfolio experience and, when available, other observable market data.
PCD loans and leases
Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ALLL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the TCF acquisition with credit deterioration at acquisition:
(dollar amounts in millions)CommercialConsumerTotal
Par value (UPB)$7,931 $1,333 $9,264 
ALLL at acquisition(374)(58)(432)
Non-credit (discount)(219)(68)(287)
Fair value$7,338 $1,207 $8,545 
Huntington's operating results for the quarter and year-to-date periods ended June 30, 2021 include the operating results of the acquired assets and assumed liabilities of TCF Financial Corporation subsequent to the acquisition on June 9, 2021. Due to the various conversions of TCF systems during the second quarter 2021, as well
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as other streamlining and integration of the operating activities into those of the Company, historical reporting for the former TCF operations is impracticable and thus disclosures of the revenue from the assets acquired and income before income taxes is impracticable for the period subsequent to acquisition.
The following table presents unaudited pro forma information as if the acquisition of TCF had occurred on January 1, 2020 under the “Unaudited Pro Forma” columns. The pro forma adjustments give effect to any change in interest income due to the accretion of the discount (premium) associated with the fair value adjustments to acquired loans and leases, any change in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustment to acquired interest-bearing deposits and long-term debt and the amortization of the CDI that would have resulted had the deposits been acquired as of January 1, 2020. Pro forma results include Huntington acquisition-related expenses which primarily included, but were not limited to, severance costs, professional services, data processing fees, marketing and advertising expenses totaling $269 million and $290 million for the three and six-months ended June 30, 2021, respectively. Pro forma results also include adjustments for the elimination of TCF’s accretion of the discount (premium) associated with the fair value adjustments to acquired loans and leases, deposits and long-term debt, elimination of TCF's intangible amortization expense, and related income tax effects. The pro forma information does not necessarily reflect the results of operations that would have occurred had Huntington acquired TCF on January 1, 2020. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the pro forma amounts.
Unaudited Pro Forma for
Three months endedSix months ended
June 30,June 30,
(dollar amounts in millions)2021202020212020
Net interest income$1,120 $1,184 $2,482 $2,381 
Noninterest income529 529 1,062 1,032 
Net income attributable to Huntington Bancshares Inc235 189 901 69 
Branch divestiture:On MarchMay 25, 2021, Huntington and TCF shareholders approvedannounced that, in conjunction with the merger.acquisition, Huntington anticipateswill sell 14 acquired branches and certain related assets and deposit liabilities to Horizon Bank. The sale is in connection with an agreement reached with the U.S. Department of Justice in order to resolve its competitive concerns about Huntington’s acquisition of TCF. Total deposits and loans to be divested to Horizon Bank for the transaction willtotaled approximately $927 million and $275 million, respectively, as of June 30, 2021, with the actual amount to be completed latetransferred determined as of the date the transaction closes. These amounts are included in deposits and loans held for sale, respectively, in the secondUnaudited Condensed Consolidated Balance Sheets. The transaction is expected to close by the end of the 2021 third quarter, of 2021, subject to regulatory approval and the satisfaction of other customary closing conditions set forth in the Merger Agreement.conditions.
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3. INVESTMENT SECURITIES AND OTHER SECURITIES
Debt securities purchased in which Huntington has the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other debt and equity securities are classified as either available-for-sale or other securities.
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at March 31,June 30, 2021 and December 31, 2020:
UnrealizedUnrealized
(dollar amounts in millions)(dollar amounts in millions)Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value(dollar amounts in millions)Amortized
Cost (1)		Gross
Gains		Gross
Losses		Fair Value
March 31, 2021
June 30, 2021June 30, 2021
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
U.S. TreasuryU.S. Treasury$5 $0 $0 $5 U.S. Treasury$5 $0 $0 $5 
Federal agencies:Federal agencies:Federal agencies:
Residential CMOResidential CMO$3,081 $100 $(9)$3,172 Residential CMO2,576 81 (8)2,649 
Residential MBSResidential MBS10,708 61 (124)10,645 Residential MBS13,219 52 (74)13,197 
Commercial MBSCommercial MBS1,277 13 (63)1,227 Commercial MBS1,377 15 (24)1,368 
Other agenciesOther agencies44 2 0 46 Other agencies283 1 0 284 
Total U.S. Treasury, federal agency and other agency securitiesTotal U.S. Treasury, federal agency and other agency securities15,115 176 (196)15,095 Total U.S. Treasury, federal agency and other agency securities17,460 149 (106)17,503 
Municipal securitiesMunicipal securities3,050 91 (19)3,122 Municipal securities3,589 89 (17)3,661 
Private-label CMOPrivate-label CMO50 0 0 50 Private-label CMO142 0 0 142 
Asset-backed securitiesAsset-backed securities244 4 (1)247 Asset-backed securities298 4 (1)301 
Corporate debtCorporate debt888 0 (31)857 Corporate debt1,309 8 (13)1,304 
Other securities/Sovereign debtOther securities/Sovereign debt4 0 0 4 Other securities/Sovereign debt4 0 0 4 
Total available-for-sale securitiesTotal available-for-sale securities$19,351 $271 $(247)$19,375 Total available-for-sale securities$22,802 $250 $(137)$22,915 
Held-to-maturity securities:Held-to-maturity securities:Held-to-maturity securities:
Federal agencies:Federal agencies:Federal agencies:
Residential CMOResidential CMO$1,604 $74 $0 $1,678 Residential CMO$2,228 $65 $0 $2,293 
Residential MBSResidential MBS3,259 69 (18)3,310 Residential MBS6,259 61 (12)6,308 
Commercial MBSCommercial MBS2,719 114 0 2,833 Commercial MBS2,705 102 0 2,807 
Other agenciesOther agencies230 8 0 238 Other agencies220 10 0 230 
Total federal agency and other agency securitiesTotal federal agency and other agency securities7,812 265 (18)8,059 Total federal agency and other agency securities11,412 238 (12)11,638 
Municipal securitiesMunicipal securities3 0 0 3 Municipal securities3 0 0 3 
Total held-to-maturity securitiesTotal held-to-maturity securities$7,815 $265 $(18)$8,062 Total held-to-maturity securities$11,415 $238 $(12)$11,641 
Other securities, at cost:Other securities, at cost:Other securities, at cost:
Non-marketable equity securities:Non-marketable equity securities:Non-marketable equity securities:
Federal Home Loan Bank stockFederal Home Loan Bank stock$52 $0 $0 $52 Federal Home Loan Bank stock$201 $0 $0 $201 
Federal Reserve Bank stockFederal Reserve Bank stock300 0 0 300 Federal Reserve Bank stock425 0 0 425 
Other securities, at fair valueOther securities, at fair valueOther securities, at fair value
Mutual fundsMutual funds42 0 0 42 Mutual funds42 0 0 42 
Equity securitiesEquity securities16 1 0 17 Equity securities24 0 0 24 
Total other securitiesTotal other securities$410 $1 $0 $411 Total other securities$692 $0 $0 $692 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At March 31,June 30, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $40$48 million and $18$25 million, respectively.
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Unrealized
(dollar amounts in millions)Amortized
Cost (1)		Gross
Gains		Gross
Losses		Fair Value
December 31, 2020
Available-for-sale securities:
U.S. Treasury$5 $0 $0 $5 
Federal agencies:
Residential CMO$3,550 $121 $(5)$3,666 
Residential MBS7,843 97 (5)7,935 
Commercial MBS1,151 21 (9)1,163 
Other agencies60 2 0 62 
Total U.S. Treasury, federal agency and other agency securities12,609 241 (19)12,831 
Municipal securities2,928 91 (15)3,004 
Private-label CMO9 0 0 9 
Asset-backed securities185 7 0 192 
Corporate debt440 5 0 445 
Other securities/Sovereign debt4 0 0 4 
Total available-for-sale securities$16,175 $344 $(34)$16,485 
Held-to-maturity securities:
Federal agencies:
Residential CMO$1,779 $88 $0 $1,867 
Residential MBS3,715 103 0 3,818 
Commercial MBS3,118 191 0 3,309 
Other agencies246 12 0 258 
Total federal agency and other agency securities8,858 394 0 9,252 
Municipal securities3 0 0 3 
Total held-to-maturity securities$8,861 $394 $0 $9,255 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock$60 $0 $0 $60 
Federal Reserve Bank stock299 0 0 299 
Other securities, at fair value
Mutual funds50 0 0 50 
Equity securities8 1 0 9 
Total other securities$417 $1 $0 $418 

Unrealized
(dollar amounts in millions)Amortized
Cost (1)		Gross
Gains		Gross
Losses		Fair Value
December 31, 2020
Available-for-sale securities:
U.S. Treasury$5 $0 $0 $5 
Federal agencies:
Residential CMO3,550 121 (5)3,666 
Residential MBS7,843 97 (5)7,935 
Commercial MBS1,151 21 (9)1,163 
Other agencies60 2 0 62 
Total U.S. Treasury, federal agency and other agency securities12,609 241 (19)12,831 
Municipal securities2,928 91 (15)3,004 
Private-label CMO9 0 0 9 
Asset-backed securities185 7 0 192 
Corporate debt440 5 0 445 
Other securities/Sovereign debt4 0 0 4 
Total available-for-sale securities$16,175 $344 $(34)$16,485 
Held-to-maturity securities:
Federal agencies:
Residential CMO$1,779 $88 $0 $1,867 
Residential MBS3,715 103 0 3,818 
Commercial MBS3,118 191 0 3,309 
Other agencies246 12 0 258 
Total federal agency and other agency securities8,858 394 0 9,252 
Municipal securities3 0 0 3 
Total held-to-maturity securities$8,861 $394 $0 $9,255 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock$60 $0 $0 $60 
Federal Reserve Bank stock299 0 0 299 
Other securities, at fair value
Mutual funds50 0 0 50 
Equity securities8 1 0 9 
Total other securities$417 $1 $0 $418 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At December 31, 2020, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $32 million and $20 million, respectively.
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The following table provides the amortized cost and fair value of securities by contractual maturity at March 31,June 30, 2021 and December 31, 2020. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
March 31, 2021December 31, 2020June 30, 2021December 31, 2020
(dollar amounts in millions)(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Under 1 yearUnder 1 year$366 $357 $308 $304 Under 1 year$389 $384 $308 $304 
After 1 year through 5 yearsAfter 1 year through 5 years1,228 1,237 1,145 1,154 After 1 year through 5 years1,590 1,597 1,145 1,154 
After 5 years through 10 yearsAfter 5 years through 10 years2,127 2,144 1,607 1,654 After 5 years through 10 years2,583 2,624 1,607 1,654 
After 10 yearsAfter 10 years15,630 15,637 13,115 13,373 After 10 years18,240 18,310 13,115 13,373 
Total available-for-sale securitiesTotal available-for-sale securities$19,351 $19,375 $16,175 $16,485 Total available-for-sale securities$22,802 $22,915 $16,175 $16,485 
Held-to-maturity securities:Held-to-maturity securities:Held-to-maturity securities:
After 1 year through 5 yearsAfter 1 year through 5 years$142 $148 $160 $169 After 1 year through 5 years$500 $507 $160 $169 
After 5 years through 10 yearsAfter 5 years through 10 years121 126 131 138 After 5 years through 10 years98 103 131 138 
After 10 yearsAfter 10 years7,552 7,788 8,570 8,948 After 10 years10,817 11,031 8,570 8,948 
Total held-to-maturity securitiesTotal held-to-maturity securities$7,815 $8,062 $8,861 $9,255 Total held-to-maturity securities$11,415 $11,641 $8,861 $9,255 
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position at March 31,June 30, 2021 and December 31, 2020:
Less than 12 MonthsOver 12 MonthsTotalLess than 12 MonthsOver 12 MonthsTotal
(dollar amounts in millions)(dollar amounts in millions)Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses		(dollar amounts in millions)Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses
March 31, 2021
June 30, 2021June 30, 2021
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Federal agencies:Federal agencies:Federal agencies:
Residential CMOResidential CMO$413 $(9)$0 $0 $413 $(9)Residential CMO321 (8)0 0 321 (8)
Residential MBSResidential MBS7,919 (124)0 0 7,919 (124)Residential MBS8,170 (74)0 0 8,170 (74)
Commercial MBSCommercial MBS761 (63)0 0 761 (63)Commercial MBS671 (24)0 0 671 (24)
Other agenciesOther agencies207 0 0 0 207 0 
Total federal agency and other agency securitiesTotal federal agency and other agency securities9,093 (196)0 0 9,093 (196)Total federal agency and other agency securities9,369 (106)0 0 9,369 (106)
Municipal securitiesMunicipal securities163 (7)463 (12)626 (19)Municipal securities218 (5)427 (12)645 (17)
Private-label CMOPrivate-label CMO28000280
Asset-backed securitiesAsset-backed securities65 (1)0 0 65 (1)Asset-backed securities75 (1)8 0 83 (1)
Corporate debtCorporate debt816 (31)0 0 816 (31)Corporate debt643 (13)0 0 643 (13)
Total temporarily impaired available-for-sale securitiesTotal temporarily impaired available-for-sale securities$10,137 $(235)$463 $(12)$10,600 $(247)Total temporarily impaired available-for-sale securities$10,333 $(125)$435 $(12)$10,768 $(137)
Held-to-maturity securities:Held-to-maturity securities:Held-to-maturity securities:
Federal agencies:Federal agencies:Federal agencies:
Residential MBSResidential MBS$1,235 (18)0 0 1,235 (18)Residential MBS$1,408 $(12)$0 $0 $1,408 $(12)
Total federal agency and other agency securitiesTotal federal agency and other agency securities1,408 (12)0 0 1,408 (12)
Total temporarily impaired held-to-maturity securitiesTotal temporarily impaired held-to-maturity securities$1,235 $(18)$0 $0 $1,235 $(18)Total temporarily impaired held-to-maturity securities$1,408 $(12)$0 $0 $1,408 $(12)
2021 1Q2Q Form 10-Q 5161

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Less than 12 MonthsOver 12 MonthsTotalLess than 12 MonthsOver 12 MonthsTotal
(dollar amounts in millions)(dollar amounts in millions)Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses		(dollar amounts in millions)Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses		Fair
Value		Gross Unrealized
Losses
December 31, 2020December 31, 2020December 31, 2020
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Federal agencies:Federal agencies:Federal agencies:
Residential CMOResidential CMO$302 $(5)$0 $0 $302 $(5)Residential CMO$302 $(5)$0 $0 $302 $(5)
Residential MBSResidential MBS1,633 (5)0 0 1,633 (5)Residential MBS1,633 (5)0 0 1,633 (5)
Commercial MBSCommercial MBS321 (9)0 0 321 (9)Commercial MBS321 (9)0 0 321 (9)
Total federal agency and other agency securitiesTotal federal agency and other agency securities2,256 (19)0 0 2,256 (19)Total federal agency and other agency securities2,256 (19)0 0 2,256 (19)
Municipal securitiesMunicipal securities110 (3)490 (12)600 (15)Municipal securities110 (3)490 (12)600 (15)
Private-label CMOPrivate-label CMO0 0 0 0 0 0 
Asset-backed securitiesAsset-backed securities15 0 0 0 15 0 Asset-backed securities15 0 0 0 15 0 
Corporate debtCorporate debt51 0 0 0 51 0 Corporate debt51 0 0 0 51 0 
Total temporarily impaired available-for-sale securitiesTotal temporarily impaired available-for-sale securities$2,432 $(22)$490 $(12)$2,922 $(34)Total temporarily impaired available-for-sale securities$2,432 $(22)$490 $(12)$2,922 $(34)
During the 2021 second quarter, Huntington transferred $3.0 billion of securities from the AFS portfolio to the HTM portfolio. At the time of the transfer, AOCI included $2 million of unrealized gains attributed to these securities. This gain will be amortized into interest income over the remaining life of the securities.
At March 31,June 30, 2021 and December 31, 2020, the carrying value of investment securities pledged to secure public and trust deposits, trading account liabilities, U.S. Treasury demand notes, security repurchase agreements and to support borrowing capacity totaled $13.9$19.9 billion and $14.4 billion, respectively. There were no securities of a single issuer, which were not governmental or government-sponsored, that exceeded 10% of shareholders’ equity at either March 31,June 30, 2021 or December 31, 2020. At March 31,June 30, 2021, all HTM debt securities are considered AAA rated. In addition, there were no HTM debt securities considered past due at March 31,June 30, 2021.
AFS Securities Impairment/HTM Securities Allowance for Credit Losses
Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability, Huntington has concluded that it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. As such, no allowance or impairment is recorded with respect to securities as of March 31,June 30, 2021 and December 31, 2020.
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4. LOANS /AND LEASES
Loans and leases which Huntington has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified in the Unaudited Condensed Consolidated Balance Sheets as loans and leases. The total balance of unamortized premiums, discounts, fees, and costs, recognized as part of loans and leases, was a net premium of $473 million and $491 million at March 31, 2021 and December 31, 2020, respectively.
Loan and Lease Portfolio Composition
The following table provides a detailed listing of Huntington’s loan and lease portfolio at March 31,June 30, 2021 and December 31, 2020.
(dollar amounts in millions)(dollar amounts in millions)March 31, 2021December 31, 2020(dollar amounts in millions)June 30, 2021December 31, 2020
Loans and leases:
Commercial loan and lease portfolio:Commercial loan and lease portfolio:
Commercial and industrialCommercial and industrial$34,464 $35,373 Commercial and industrial$41,900 $33,151 
Commercial real estateCommercial real estate7,179 7,199 Commercial real estate14,774 7,199 
Lease financingLease financing5,027 2,222 
Total commercial loan and lease portfolioTotal commercial loan and lease portfolio61,701 42,572 
Consumer loan portfolio:Consumer loan portfolio:
AutomobileAutomobile12,591 12,778 Automobile13,174 12,778 
Residential mortgageResidential mortgage18,729 12,141 
Home equityHome equity8,727 8,894 Home equity11,317 8,894 
Residential mortgage12,092 12,141 
RV and marineRV and marine4,218 4,190 RV and marine4,960 4,190 
Other consumerOther consumer959 1,033 Other consumer2,024 1,033 
Loans and leases$80,230 $81,608 
Total consumer loan portfolioTotal consumer loan portfolio50,204 39,036 
Total loans and leases (1) (2)Total loans and leases (1) (2)111,905 81,608 
Allowance for loan and lease lossesAllowance for loan and lease losses(1,703)(1,814)Allowance for loan and lease losses(2,218)(1,814)
Net loans and leasesNet loans and leases$78,527 $79,794 Net loans and leases$109,687 $79,794 
Equipment Leases(1)Loans and leases are reported at principal amount outstanding including unamortized purchase premiums and discounts, unearned income, and net direct fees and costs associated with originating and acquiring loans and leases. The aggregate amount of these loan and lease adjustments was a net (discount) premium of $(184) million and $171 million at June 30, 2021 and December 31, 2020, respectively.
(2)The total amount of accrued interest recorded for these loans and leases at June 30, 2021,was $157 million and $145 million of commercial and consumer loan and lease portfolios, respectively, and at December 31, 2020, was $146 million and $123 million of commercial and consumer loan and lease portfolios, respectively. Accrued interest is presented in other assets within the Condensed Consolidated Balance Sheets.
Lease Financing
Huntington leases equipment to customers, and substantially all such arrangements are classified as either sales-type or direct financing leases, which are included in C&I loans.commercial loans and leases. These leases are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, and any initial direct costs incurred to originate these leases.
Huntington assesses net investments in leases (including residual values) for impairment and recognizes any impairment losses in accordance with the impairment guidance for financial instruments. As such, net investments in leases may be reduced by an allowance for credit losses,ACL, with changes recognized as provision expense.
The following table presents net investments in lease financing receivables by category at March 31,June 30, 2021 and December 31, 2020.
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
Commercial and industrial:
Lease payments receivableLease payments receivable$1,714 $1,737 Lease payments receivable$4,680 $1,737 
Estimated residual value of leased assetsEstimated residual value of leased assets622 664 Estimated residual value of leased assets771 664 
Gross investment in commercial and industrial lease financing receivables2,336 2,401 
Gross investment in lease financing receivablesGross investment in lease financing receivables5,451 2,401 
Deferred origination costsDeferred origination costs21 21 Deferred origination costs21 21 
Deferred fees(190)(200)
Total net investment in commercial and industrial lease financing receivables$2,167 $2,222 
Deferred fees, unearned income and otherDeferred fees, unearned income and other(445)(200)
Total lease financing receivablesTotal lease financing receivables$5,027 $2,222 
The carrying value of residual values guaranteed was $77$448 million and $93 million as of March 31,June 30, 2021 and December 31, 2020, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at March 31,June 30, 2021, totaled $1.7$4.7 billion and were due as follows: $0.6$0.8 billion in 2021, $0.4$0.8 billion in 2022, $0.3$0.8 billion in 2023, $0.2$0.9 billion in 2024, $0.1$0.7 billion in 2025, and $0.1$0.7 billion thereafter. Interest income recognized for these types of leases was $24$56 million and $27$28 million for the three-month periods ended March 31,June 30, 2021 and 2020, respectively. For the six-month periods ended June 30, 2021 and 2020, interest income recognized was $81 million and $55 million, respectively.
2021 1Q2Q Form 10-Q 5363

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Nonaccrual and Past Due Loans and Leases
The following table presents NALs by loan class at March 31,June 30, 2021 and December 31, 2020 (1):2020:
March 31, 2021December 31, 2020
(dollar amounts in millions)Nonaccrual loans with no ACLTotal nonaccrual loansNonaccrual loans with no ACLTotal nonaccrual loans
Commercial and industrial$103 $343 $69 $353 
Commercial real estate0 8 8 15 
Automobile0 3 0 4 
Home equity0 71 0 70 
Residential mortgage0 90 0 88 
RV and marine0 1 0 2 
Total nonaccrual loans$103 $516 $77 $532 
(1)    Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.
June 30, 2021December 31, 2020
(dollar amounts in millions)Nonaccrual loans and leases with no ACLTotal nonaccrual loans and leasesNonaccrual loans and leases with no ACLTotal nonaccrual loans and leases
Commercial and industrial$157 $591 $69 $349 
Commercial real estate0 83 8 15 
Lease financing3 74 0 4 
Automobile0 3 0 4 
Residential mortgage0 130 0 88 
Home equity0 91 0 70 
RV and marine0 5 0 2 
Other consumer0 0 0 0 
Total nonaccrual loans$160 $977 $77 $532 
The following table presents an aging analysis of loans and leases, including past due loans and leases, by loan class at March 31,June 30, 2021 and December 31, 2020:
March 31, 2021June 30, 2021
Past Due (1) Loans Accounted for Under FVOTotal Loans
and Leases		90 or
more days
past due
and accruing		Past Due (1) Loans Accounted for Under FVOTotal Loans
and Leases		90 or
more days
past due
and accruing
(dollar amounts in millions)(dollar amounts in millions)30-59
Days		60-89
 Days		90 or 
more days		TotalCurrent(dollar amounts in millions)30-59
 Days		60-89
 Days		90 or 
more days		TotalCurrent
Commercial and industrialCommercial and industrial$37 $20 $96 $153 $34,311 $0 $34,464 $8 (3)Commercial and industrial$75 $33 $92 $200 $41,700 $0 $41,900 $1 
Commercial real estateCommercial real estate1 1 2 4 7,175 0 7,179 0 Commercial real estate24 6 22 52 14,722 0 14,774 0 
Lease financingLease financing34 18 22 74 4,953 0 5,027 14 (3)
AutomobileAutomobile50 12 6 68 12,523 0 12,591 5 Automobile53 12 6 71 13,103 0 13,174 4 
Residential mortgageResidential mortgage105 31 195 331 18,268 130 18,729 117 (4)
Home equityHome equity23 11 58 92 8,634 1 8,727 10 Home equity40 16 65 121 11,195 1 11,317 9 
Residential mortgage78 26 194 298 11,677 117 12,092 128 (4)
RV and marineRV and marine11 3 2 16 4,202 0 4,218 1 RV and marine10 2 2 14 4,946 0 4,960 1 
Other consumerOther consumer6 2 2 10 949 0 959 2 Other consumer7 3 2 12 2,012 0 2,024 2 
Total loans and leasesTotal loans and leases$206 $75 $360 $641 $79,471 $118 $80,230 $154 Total loans and leases$348 $121 $406 $875 $110,899 $131 $111,905 $148 
December 31, 2020December 31, 2020
Past Due (1)(2) Loans Accounted for Under FVOTotal Loans
and Leases		90 or
more days
past due
and accruing		Past Due (1)(2) Loans Accounted for Under FVOTotal Loans
and Leases		90 or
more days
past due
and accruing
(dollar amounts in millions)(dollar amounts in millions)30-59
Days		60-89
 Days		90 or 
more days		TotalCurrent(dollar amounts in millions)30-59
 Days		60-89
 Days		90 or 
more days		TotalCurrent Loans Accounted for Under FVOTotal Loans
and Leases		90 or
more days
past due
and accruing
Commercial and industrialCommercial and industrial$60 $38 $95 $193 $35,180 $0 $35,373 $10 (3)Commercial and industrial$38 $33 $82 $153 $32,998 $0 $33,151 $0 
Commercial real estateCommercial real estate0 1 11 12 7,187 0 7,199 0 Commercial real estate0 1 11 12 7,187 0 7,199 0 
Lease financingLease financing22 5 13 40 2,182 0 2,222 10 (3)
AutomobileAutomobile84 22 12 118 12,660 0 12,778 9 Automobile84 22 12 118 12,660 0 12,778 9 
Residential mortgageResidential mortgage114 38 194 346 11,702 93 12,141 132 (4)
Home equityHome equity35 15 61 111 8,782 1 8,894 14 Home equity35 15 61 111 8,782 1 8,894 14 
Residential mortgage114 38 194 346 11,702 93 12,141 132 (4)
RV and marineRV and marine17 3 3 23 4,167 0 4,190 3 RV and marine17 3 3 23 4,167 0 4,190 3 
Other consumerOther consumer9 4 3 16 1,017 0 1,033 3 Other consumer9 4 3 16 1,017 0 1,033 3 
Total loans and leasesTotal loans and leases$319 $121 $379 $819 $80,695 $94 $81,608 $171 Total loans and leases$319 $121 $379 $819 $80,695 $94 $81,608 $171 
(1)NALs are included in this aging analysis based on the loan’s past due status.
(2)The principal balance of loans in payment deferral programs offered in response to the COVID-19 pandemic which are performing according to their modified terms are generally not considered delinquent.
(3)Amounts include Huntington Technology Finance administrative lease delinquencies.
(4)Amounts include mortgage loans insured by U.S. government agencies.
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Credit Quality Indicators
See Note 5 “Loans / Leases and Allowance for Credit Losses”“Loans/Leases” to the Consolidated Financial Statements of theappearing in Huntington’s 2020 Annual Report on Form 10-K for the year ended December 31, 2020 for a description of the credit quality indicators Huntington utilizes for monitoring credit quality and for determining an appropriate ACL level.
To facilitate the monitoring of credit quality for commercial loans, and for purposes of determining an appropriate ACL level for these loans, Huntington utilizes the following internally defined categories of credit grades:
•Pass - Higher quality loans that do not fit any of the other categories described below.
•OLEM - The credit risk may be relatively minor yet represents a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans.
•Substandard - Inadequately protected loans resulting from the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.
•Doubtful - Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.
Loans are generally assigned a category of “Pass” rating upon initial approval and subsequently updated as appropriate based on the borrower’s financial performance.
Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans categorized as Substandard or Doubtful are both considered Classified loans.
For all classes within the consumer loan portfolios, loans are assigned pool level PD factors based on the FICO range within which the borrower’s credit bureau score falls. A credit bureau score is a credit score developed by FICO based on data provided by the credit bureaus. The credit bureau score is widely accepted as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality.
Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above, and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk management processes.
2021 1Q2Q Form 10-Q 5565

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The following tables present each loanthe amortized cost basis of loans and lease classleases by vintage and credit quality indicator at March 31,June 30, 2021 and December 31, 2020 respectively:
As of March 31, 2021As of June 30, 2021
Term Loans Amortized Cost Basis by Origination YearRevolver Total at Amortized Cost BasisRevolver Total Converted to Term LoansTerm Loans Amortized Cost Basis by Origination YearRevolver Total at Amortized Cost BasisRevolver Total Converted to Term Loans
(dollar amounts in millions)(dollar amounts in millions)20212020201920182017PriorTotal (3)(dollar amounts in millions)20212020201920182017PriorTotal
Commercial and industrialCommercial and industrialCommercial and industrial
Credit Quality Indicator (1):Credit Quality Indicator (1):Credit Quality Indicator (1):
PassPass$4,040 $10,291 $4,087 $2,369 $1,215 $1,605 $8,656 $2 $32,265 Pass$9,173 $8,710 $4,979 $2,692 $1,400 $1,601 $10,720 $3 $39,278 
OLEMOLEM122 282 98 91 41 92 128 0 854 OLEM161 197 174 133 57 78 157 0 957 
SubstandardSubstandard54 216 110 176 184 212 386 0 1,338 Substandard148 190 218 239 190 210 467 0 1,662 
DoubtfulDoubtful1 4 0 1 0 0 1 0 7 Doubtful1 0 0 1 0 1 0 0 3 
Total Commercial and industrialTotal Commercial and industrial$4,217 $10,793 $4,295 $2,637 $1,440 $1,909 $9,171 $2 $34,464 Total Commercial and industrial$9,483 $9,097 $5,371 $3,065 $1,647 $1,890 $11,344 $3 $41,900 
Commercial real estateCommercial real estateCommercial real estate
Credit Quality Indicator (1):Credit Quality Indicator (1):Credit Quality Indicator (1):
PassPass$406 $1,605 $1,475 $1,077 $454 $999 $624 $0 $6,640 Pass$1,445 $3,083 $3,331 $2,207 $1,069 $1,518 $507 $0 $13,160 
OLEMOLEM2 88 31 62 68 35 1 0 287 OLEM158 216 163 130 99 63 1 0 830 
SubstandardSubstandard4 23 114 7 27 38 39 0 252 Substandard119 154 202 60 115 100 34 0 784 
Total Commercial real estateTotal Commercial real estate$412 $1,716 $1,620 $1,146 $549 $1,072 $664 $0 $7,179 Total Commercial real estate$1,722 $3,453 $3,696 $2,397 $1,283 $1,681 $542 $0 $14,774 
Lease financingLease financing
Credit Quality Indicator (1):Credit Quality Indicator (1):
PassPass$949 $1,830 $1,016 $588 $338 $224 $0 $0 $4,945 
OLEMOLEM6 6 7 4 6 1 0 0 30 
SubstandardSubstandard2 14 20 1 5 10 0 0 52 
Total Lease financingTotal Lease financing$957 $1,850 $1,043 $593 $349 $235 $0 $0 $5,027 
AutomobileAutomobileAutomobile
Credit Quality Indicator (2):Credit Quality Indicator (2):Credit Quality Indicator (2):
750+750+$771 $2,381 $1,817 $991 $608 $279 $0 $0 $6,847 750+$1,525 $2,319 $1,779 $929 $555 $223 $0 $0 $7,330 
650-749650-749479 1,895 1,161 642 315 163 0 0 4,655 650-7491,245 1,669 1,013 547 266 121 0 0 4,861 
<650<65044 336 271 216 132 90 0 0 1,089 <650154 267 220 172 106 64 0 0 983 
Total AutomobileTotal Automobile$1,294 $4,612 $3,249 $1,849 $1,055 $532 $0 $0 $12,591 Total Automobile$2,924 $4,255 $3,012 $1,648 $927 $408 $0 $0 $13,174 
Residential mortgageResidential mortgage
Credit Quality Indicator (2):Credit Quality Indicator (2):
750+750+$2,984 $4,680 $1,477 $840 $969 $2,431 $0 $0 $13,381 
650-749650-749958 1,052 462 344 307 1,098 0 0 4,221 
<650<65022 57 107 133 111 567 0 0 997 
Total Residential mortgageTotal Residential mortgage$3,964 $5,789 $2,046 $1,317 $1,387 $4,096 $0 $0 $18,599 
Home equityHome equityHome equity
Credit Quality Indicator (2):Credit Quality Indicator (2):Credit Quality Indicator (2):
750+750+$187 $780 $21 $22 $28 $479 $4,201 $189 $5,907 750+$486 $861 $125 $85 $67 $522 $4,957 $201 $7,304 
650-749650-74937 137 8 6 8 171 1,810 176 2,353 650-749112 177 112 70 46 260 2,392 173 3,342 
<650<6501 1 1 1 2 74 286 100 466 <6502 8 33 32 27 128 347 93 670 
Total Home equityTotal Home equity$225 $918 $30 $29 $38 $724 $6,297 $465 $8,726 Total Home equity$600 $1,046 $270 $187 $140 $910 $7,696 $467 $11,316 
Residential mortgage
Credit Quality Indicator (2):
750+$963 $3,204 $1,143 $727 $883 $1,723 $1 $0 $8,644 
650-749254 836 355 255 249 621 0 0 2,570 
<6507 37 90 113 106 408 0 0 761 
Total Residential mortgage$1,224 $4,077 $1,588 $1,095 $1,238 $2,752 $1 $0 $11,975 
RV and marineRV and marineRV and marine
Credit Quality Indicator (2):Credit Quality Indicator (2):Credit Quality Indicator (2):
750+750+$267 $1,050 $491 $547 $311 $375 $0 $0 $3,041 750+$716 $1,051 $542 $571 $330 $401 $0 $0 $3,611 
650-749650-74946 351 193 182 126 176 0 0 1,074 650-749190 336 207 184 132 190 0 0 1,239 
<650<6500 8 15 21 22 37 0 0 103 <6501 11 17 23 21 37 0 0 110 
Total RV and marineTotal RV and marine$313 $1,409 $699 $750 $459 $588 $0 $0 $4,218 Total RV and marine$907 $1,398 $766 $778 $483 $628 $0 $0 $4,960 
Other consumerOther consumerOther consumer
Credit Quality Indicator (2):Credit Quality Indicator (2):Credit Quality Indicator (2):
750+750+$22 $59 $52 $21 $6 $16 $319 $2 $497 750+$341 $206 $223 $83 $33 $67 $530 $2 $1,485 
650-749650-7499 30 46 15 4 4 264 28 400 650-74943 36 55 17 7 10 281 26 475 
<650<6500 2 7 3 1 1 25 23 62 <6500 3 8 3 2 3 25 20 64 
Total Other consumerTotal Other consumer$31 $91 $105 $39 $11 $21 $608 $53 $959 Total Other consumer$384 $245 $286 $103 $42 $80 $836 $48 $2,024 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
66 Huntington Bancshares Incorporated

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As of December 31, 2020
Term Loans Amortized Cost Basis by Origination YearRevolver Total at Amortized Cost BasisRevolver Total Converted to Term Loans
(dollar amounts in millions)20202019201820172016PriorTotal
Commercial and industrial
Credit Quality Indicator (1):
Pass$12,599 $4,161 $2,537 $1,192 $837 $815 $8,894 $2 $31,037 
OLEM415 112 65 24 32 22 124 0 794 
Substandard195 125 181 203 41 147 423 0 1,315 
Doubtful2 0 1 0 0 1 1 0 5 
Total Commercial and industrial$13,211 $4,398 $2,784 $1,419 $910 $985 $9,442 $2 $33,151 
Commercial real estate
Credit Quality Indicator (1):
Pass$1,742 $1,610 $1,122 $507 $507 $539 $633 $0 $6,660 
OLEM94 78 63 37 28 14 4 0 318 
Substandard27 46 10 29 58 14 36 0 220 
Doubtful0 0 0 0 0 1 0 0 1 
Total Commercial real estate$1,863 $1,734 $1,195 $573 $593 $568 $673 $0 $7,199 
Lease financing
Credit Quality Indicator (1):
Pass$1,158 $364 $221 $155 $137 $101 $0 $0 $2,136 
OLEM6 4 4 6 1 0 0 0 21 
Substandard1 19 7 21 5 12 0 0 65 
Total Lease financing$1,165 $387 $232 $182 $143 $113 $0 $0 $2,222 
Automobile
Credit Quality Indicator (2):
750+$2,670 $2,013 $1,144 $742 $317 $81 $0 $0 $6,967 
650-7491,965 1,343 755 386 175 52 0 0 4,676 
<650312 301 244 157 84 37 0 0 1,135 
Total Automobile$4,947 $3,657 $2,143 $1,285 $576 $170 $0 $0 $12,778 
Residential mortgage
Credit Quality Indicator (2):
750+$3,269 $1,370 $891 $1,064 $762 $1,243 $1 $0 $8,600 
650-749991 435 307 278 171 495 0 0 2,677 
<65034 89 111 108 81 348 0 0 771 
Total Residential mortgage$4,294 $1,894 $1,309 $1,450 $1,014 $2,086 $1 $0 $12,048 
Home equity
Credit Quality Indicator (2):
750+$793 $26 $26 $32 $89 $451 $4,373 $192 $5,982 
650-749147 9 8 11 27 157 1,906 181 2,446 
<6501 1 1 1 6 70 286 99 465 
Total Home equity$941 $36 $35 $44 $122 $678 $6,565 $472 $8,893 
RV and marine
Credit Quality Indicator (2):
750+$1,136 $525 $589 $337 $153 $254 $0 $0 $2,994 
650-749348 215 201 136 64 129 0 0 1,093 
<6504 15 21 22 12 29 0 0 103 
Total RV and marine$1,488 $755 $811 $495 $229 $412 $0 $0 $4,190 
Other consumer
Credit Quality Indicator (2):
750+$69 $58 $26 $8 $4 $14 $340 $2 $521 
650-74936 56 17 5 2 3 294 30 443 
<6502 8 3 1 0 1 26 28 69 
Total Other consumer$107 $122 $46 $14 $6 $18 $660 $60 $1,033 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
(3)The total amount of accrued interest recorded for these loans at March 31, 2021, presented in other assets within the Condensed Consolidated Balance Sheets, was $140 million and $119 million of commercial and consumer, respectively.

56 Huntington Bancshares Incorporated

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As of December 31, 2020
Term Loans Amortized Cost Basis by Origination YearRevolver Total at Amortized Cost BasisRevolver Total Converted to Term Loans
(dollar amounts in millions)20202019201820172016PriorTotal (3)
Commercial and industrial
Credit Quality Indicator (1):
Pass$13,757 $4,525 $2,758 $1,347 $974 $916 $8,894 $2 $33,173 
OLEM421 116 69 30 33 22 124 0 815 
Substandard196 144 188 224 46 159 423 0 1,380 
Doubtful2 0 1 0 0 1 1 0 5 
Total Commercial and industrial$14,376 $4,785 $3,016 $1,601 $1,053 $1,098 $9,442 $2 $35,373 
Commercial real estate
Credit Quality Indicator (1):
Pass$1,742 $1,610 $1,122 $507 $507 $539 $633 $0 $6,660 
OLEM94 78 63 37 28 14 4 0 318 
Substandard27 46 10 29 58 14 36 0 220 
Doubtful0 0 0 0 0 1 0 0 1 
Total Commercial real estate$1,863 $1,734 $1,195 $573 $593 $568 $673 $0 $7,199 
Automobile
Credit Quality Indicator (2):
750+$2,670 $2,013 $1,144 $742 $317 $81 $0 $0 $6,967 
650-7491,965 1,343 755 386 175 52 0 0 4,676 
<650312 301 244 157 84 37 0 0 1,135 
Total Automobile$4,947 $3,657 $2,143 $1,285 $576 $170 $0 $0 $12,778 
Home equity
Credit Quality Indicator (2):
750+$793 $26 $26 $32 $89 $451 $4,373 $192 $5,982 
650-749147 9 8 11 27 157 1,906 181 2,446 
<6501 1 1 1 6 70 286 99 465 
Total Home equity$941 $36 $35 $44 $122 $678 $6,565 $472 $8,893 
Residential mortgage
Credit Quality Indicator (2):
750+$3,269 $1,370 $891 $1,064 $762 $1,243 $1 $0 $8,600 
650-749991 435 307 278 171 495 0 0 2,677 
<65034 89 111 108 81 348 0 0 771 
Total Residential mortgage$4,294 $1,894 $1,309 $1,450 $1,014 $2,086 $1 $0 $12,048 
RV and marine
Credit Quality Indicator (2):
750+$1,136 $525 $589 $337 $153 $254 $0 $0 $2,994 
650-749348 215 201 136 64 129 0 0 1,093 
<6504 15 21 22 12 29 0 0 103 
Total RV and marine$1,488 $755 $811 $495 $229 $412 $0 $0 $4,190 
Other consumer
Credit Quality Indicator (2):
750+$69 $58 $26 $8 $4 $14 $340 $2 $521 
650-74936 56 17 5 2 3 294 30 443 
<6502 8 3 1 0 1 26 28 69 
Total Other consumer$107 $122 $46 $14 $6 $18 $660 $60 $1,033 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
(3)The total amount of accrued interest recorded for these loans at December 31, 2020, presented in other assets within the Condensed Consolidated Balance Sheets, was $146 million and $123 million of commercial and consumer, respectively.

2021 1Q2Q Form 10-Q 5767

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TDR Loans
TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided would not otherwise be considered. However, not all loan modifications are TDRs. See Note 5 “Loans / Leases and Allowance for Credit Losses”Leases” to the Consolidated Financial Statements of theappearing in Huntington’s 2020 Annual Report on Form 10-K for the year ended December 31, 2020 for an additional discussion of TDRs.
The following table presents, by class and modification type, the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the three-month and six-month periods ended March 31,June 30, 2021 and 2020.
New Troubled Debt Restructurings (1)New Troubled Debt Restructurings (1)
Three Months Ended March 31, 2021Three Months Ended June 30, 2021
Number of
Contracts		Post-modification Outstanding Recorded Investment (2)Number of
Contracts		Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)(dollar amounts in millions)Interest rate reductionAmortization or maturity date changeChapter 7 bankruptcyOtherTotal(dollar amounts in millions)Number of
Contracts		Interest rate reductionAmortization or maturity date changeChapter 7 bankruptcyOtherTotal
Commercial and industrialCommercial and industrial12 $0 $5 $0 $0 $5 25 $15 $14 $0 $0 $29 
AutomobileAutomobile902 0 7 1 0 8 Automobile514 0 3 1 0 4 
Residential mortgageResidential mortgage72 0 11 1 0 12 
Home equityHome equity62 0 1 2 0 3 Home equity51 0 1 1 0 2 
Residential mortgage86 0 13 1 0 14 
RV and marineRV and marine49 0 1 0 0 1 RV and marine35 1 0 0 0 1 
Other consumerOther consumer97 0 0 0 1 1 Other consumer68 0 0 0 0 0 
Total new TDRsTotal new TDRs1,208 $0 $27 $4 $1 $32 Total new TDRs765 $16 $29 $3 $0 $48 
Three Months Ended March 31, 2020Three Months Ended June 30, 2020
Number of
Contracts		Post-modification Outstanding Recorded Investment (2)Number of
Contracts		Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)(dollar amounts in millions)Interest rate reductionAmortization or maturity date changeChapter 7 bankruptcyOtherTotal(dollar amounts in millions)Number of
Contracts		Interest rate reductionAmortization or maturity date changeChapter 7 bankruptcyOtherTotal
Commercial and industrialCommercial and industrial140 $0 $62 $0 $0 $62 Commercial and industrial98 $0 $26 $0 $52 $78 
Commercial real estateCommercial real estate7 0 2 0 0 2 Commercial real estate2 0 1 0 0 1 
AutomobileAutomobile798 0 6 2 0 8 Automobile1,058 0 14 2 0 16 
Residential mortgageResidential mortgage105 0 12 2 0 14 
Home equityHome equity63 0 1 2 0 3 Home equity63 0 2 1 0 3 
Residential mortgage101 0 9 2 0 11 
RV and marineRV and marine28 0 1 0 0 1 RV and marine68 0 3 0 0 3 
Other consumerOther consumer249 1 0 0 0 1 Other consumer142 1 0 0 0 1 
Total new TDRsTotal new TDRs1,386 $1 $81 $6 $0 $88 Total new TDRs1,536 $1 $58 $5 $52 $116 
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New Troubled Debt Restructurings (1)
Six Months Ended June 30, 2021
Number of
Contracts		Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)Interest rate reductionAmortization or maturity date changeChapter 7 bankruptcyOtherTotal
Commercial and industrial37 $15 $19 $0 $0 $34 
Automobile1,416 0 10 2 0 12 
Residential mortgage158 0 24 2 0 26 
Home equity113 0 2 3 0 5 
RV and marine finance84 1 1 0 0 2 
Other consumer165 0 0 0 1 1 
Total new TDRs1,973 $16 $56 $7 $1 $80 
Six Months Ended June 30, 2020
Number of
Contracts		Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions)Interest rate reductionAmortization or maturity date changeChapter 7 bankruptcyOtherTotal
Commercial and industrial238 $0 $88 $0 $58 $146 
Commercial real estate9 0 3 0 0 3 
Automobile1,856 0 20 4 0 24 
Residential mortgage206 0 21 4 0 25 
Home equity126 0 3 3 0 6 
RV and marine finance96 0 4 0 0 4 
Other consumer391 2 0 0 0 2 
Total new TDRs2,922 $2 $139 $11 $58 $210 
(1)TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
(2)Post-modification balances approximate pre-modification balances.
The financial effects of modification on the provision for loan and lease losses for the three-month periods ended March 31, 2021 and 2020, were less than $1 million and $9 million, respectively.
Pledged Loans
The Bank has access to the Federal Reserve’s discount window and advances from the FHLB. As of March 31,June 30, 2021 and December 31, 2020, these borrowings and advances are secured by $44.1$45.6 billion and $43.0 billion, respectively, of loans.
582021 2Q Form 10-Q Huntington Bancshares Incorporated69

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5. ALLOWANCE FOR CREDIT LOSSES
Allowance for Loan and Lease Losses and Allowance for Credit Losses - Roll-forward
The following tables present ALLL and AULCACL activity by portfolio segment for the three-month and six-month periods ended March 31,June 30, 2021 and 2020.
(dollar amounts in millions)CommercialConsumerTotal
Three-month period ended March 31, 2021:
ALLL balance, beginning of period$1,236 $578 $1,814 
Loan charge-offs(61)(34)(95)
Recoveries of loans previously charged-off12 19 31 
Provision for loan and lease losses10 (57)(47)
ALLL balance, end of period$1,197 $506 $1,703 
AULC balance, beginning of period$34 $18 $52 
Provision (reduction in allowance) for unfunded loan commitments and letters of credit(6)(7)(13)
Unfunded commitment losses(1)0 (1)
AULC balance, end of period$27 $11 $38 
ACL balance, end of period$1,224 $517 $1,741 

(dollar amounts in millions)(dollar amounts in millions)CommercialConsumerTotal(dollar amounts in millions)CommercialConsumerTotal
Three-month period ended March 31, 2020:
Three-month period ended June 30, 2021:Three-month period ended June 30, 2021:
ALLL balance, beginning of periodALLL balance, beginning of period$552 $231 $783 ALLL balance, beginning of period$1,197 $506 $1,703 
Cumulative-effect of change in accounting principle for financial instruments - credit losses (1)180211391
Loan charge-offs(88)(48)(136)
Recoveries of loans previously charged-off5 14 19 
Loan and lease charge-offs (1)Loan and lease charge-offs (1)(78)(24)(102)
Recoveries of loans and leases previously charged-offRecoveries of loans and leases previously charged-off19 21 40 
Provision for loan and lease losses(2)Provision for loan and lease losses(2)347 100 447 Provision for loan and lease losses(2)106 39 145 
Allowance on loans and leases purchased with credit deteriorationAllowance on loans and leases purchased with credit deterioration374 58 432 
ALLL balance, end of periodALLL balance, end of period$996 $508 $1,504 ALLL balance, end of period$1,618 $600 $2,218 
AULC balance, beginning of periodAULC balance, beginning of period$102 $2 $104 AULC balance, beginning of period$27 $11 $38 
Cumulative-effect of change in accounting principle for financial instruments - credit losses (1)(38)40 2 
Provision (reduction in allowance) for unfunded loan commitments and letters of credit(5)(1)(6)
Unfunded commitment losses(1)0 (1)
Provision for unfunded lending commitments (3)Provision for unfunded lending commitments (3)49 17 66 
AULC balance, end of periodAULC balance, end of period$58 $41 $99 AULC balance, end of period$76 $28 $104 
ACL balance, end of periodACL balance, end of period$1,054 $549 $1,603 ACL balance, end of period$1,694 $628 $2,322 
Six-month period ended June 30, 2021:Six-month period ended June 30, 2021:
ALLL balance, beginning of periodALLL balance, beginning of period$1,236 $578 $1,814 
Loan and lease charge-offs (1)Loan and lease charge-offs (1)(139)(58)(197)
Recoveries of loans and leases previously charged-offRecoveries of loans and leases previously charged-off31 40 71 
Provision for loan and lease losses (2)Provision for loan and lease losses (2)116 (18)98 
Allowance on loans and leases purchased with credit deteriorationAllowance on loans and leases purchased with credit deterioration374 58 432 
ALLL balance, end of periodALLL balance, end of period$1,618 $600 $2,218 
AULC balance, beginning of periodAULC balance, beginning of period$34 $18 $52 
Provision for unfunded lending commitments (3)Provision for unfunded lending commitments (3)43 10 53 
Unfunded lending commitment lossesUnfunded lending commitment losses(1)0 (1)
AULC balance, end of periodAULC balance, end of period$76 $28 $104 
ACL balance, end of periodACL balance, end of period$1,694 $628 $2,322 

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(dollar amounts in millions)CommercialConsumerTotal
Three-month period ended June 30, 2020:
ALLL balance, beginning of period$996 $508 $1,504 
Loan and lease charge-offs(84)(39)(123)
Recoveries of loans and leases previously charged-off4 12 16 
Provision for loan and lease losses253 52 305 
ALLL balance, end of period$1,169 $533 $1,702 
AULC balance, beginning of period$58 $41 $99 
Provision (reduction in allowance) for unfunded lending commitments25 (3)22 
Unfunded lending commitment losses(2)0 (2)
AULC balance, end of period$81 $38 $119 
ACL balance, end of period$1,250 $571 $1,821 
Six-month period ended June 30, 2020:
ALLL balance, beginning of period$552 $231 $783 
Cumulative-effect of change in accounting principle for financial instruments - credit losses (4)180 211 391 
Loan and lease charge-offs(172)(87)(259)
Recoveries of loans and leases previously charged-off9 26 35 
Provision for loan and lease losses600 152 752 
ALLL balance, end of period$1,169 $533 $1,702 
AULC balance, beginning of period$102 $2 $104 
Cumulative-effect of change in accounting principle for financial instruments - credit losses (4)2 0 2 
Provision (reduction in allowance) for unfunded lending commitments(20)36 16 
Unfunded lending commitment losses(3)0 (3)
AULC balance, end of period$81 $38 $119 
ACL balance, end of period$1,250 $571 $1,821 
(1)Loan and lease charge-offs for the three and six-month periods ended June 30, 2021 exclude $80 million of charge-offs recognized upon completion of the TCF acquisition related to required purchase accounting treatment. The initial ALLL recognized on PCD assets included these amounts and after charging these amounts off upon acquisition, the net impact was $432 million of additional ALLL for PCD loans.
(2)Includes $234 million of TCF acquisition initial provision for credit losses related to non-PCD loans and leases.
(3)Includes $60 million from acquired unfunded lending commitments.
(4)Relates to day one impact of the CECL adjustment as a result of the implementation of ASU 2016-13.
At March 31,June 30, 2021, the ACL was $1.7$2.3 billion, a decreasean increase of $125$456 million from the December 31, 2020 balance of $1.9 billion. The decreaseincrease was primarily related to a reduction inthe addition of $432 million of allowance for loans purchased with credit reserves reflecting andeterioration and the TCF acquisition initial provision for credit losses of $294 million ($234 million from non-PCD loans and leases and $60 million from acquired unfunded lending commitments), partially offset by improvement in the economic outlook. NCOs decreased $48 million, or 43%, in for the three-month period ended March 31, 2021. The decrease was driven by both commercialforecasted macroeconomic environment resulting from anticipated lower unemployment and consumer NCOs.higher GDP.
The suite of CECL models are generally dependent on the rate of change in unemployment rather than the absolute unemployment levels. Additionally, the economic scenarios used in the March 31,June 30, 2021 ACL determination contained significant judgmental assumptions around the ultimate numberimpact of COVID-19 cases and the economic impact of additional stimulus spending enacted into law during the first quarter.quarter 2021. Given the impact of the unemployment variable utilized within the models and the uncertainty associated with key economic scenario assumptions, the March 31,June 30, 2021 ACL included a material general reserve component as well as additional industry specific risk profiles to capture economic uncertainty not addressed within the quantitative transaction reserve.
2021 1Q2Q Form 10-Q 5971

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6. MORTGAGE LOAN SALES AND SERVICING RIGHTS
Residential Mortgage Portfolio
The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month and six-month periods ended March 31,June 30, 2021 and 2020:
Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)2021202020212020
Residential mortgage loans sold with servicing retainedResidential mortgage loans sold with servicing retained$2,256 $1,428 Residential mortgage loans sold with servicing retained$2,748 $2,287 $5,004 $3,715 
Pretax gains resulting from above loan sales (1)Pretax gains resulting from above loan sales (1)93 39 Pretax gains resulting from above loan sales (1)101 59 194 98 
(1)Recorded in mortgage banking incomeincome.
The following table summarizes the changes in MSRs recorded using the fair value method for the three-month and six-month periods ended March 31,June 30, 2021 and 2020 (1):2020:
Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020 (1)(dollar amounts in millions)2021202020212020
Fair value, beginning of periodFair value, beginning of period$210 $7 Fair value, beginning of period$274 $165 $210 $7 
Fair value election for servicing assets previously measured using the amortized method(1)Fair value election for servicing assets previously measured using the amortized method(1)— 205 Fair value election for servicing assets previously measured using the amortized method(1)— — — 205 
Servicing assets obtained in acquisitionServicing assets obtained in acquisition59 ``0 59 0 
New servicing assets createdNew servicing assets created33 14 New servicing assets created38 26 72 40 
Change in fair value during the period due to:Change in fair value during the period due to:Change in fair value during the period due to:
Time decay (2)Time decay (2)(3)(2)Time decay (2)(4)(2)(7)(4)
Payoffs (3)Payoffs (3)(17)(6)Payoffs (3)(16)(10)(33)(16)
Changes in valuation inputs or assumptions (4)Changes in valuation inputs or assumptions (4)51 (53)Changes in valuation inputs or assumptions (4)(24)(7)26 (60)
Fair value, end of periodFair value, end of period$274 $165 Fair value, end of period$327 $172 $327 $172 
Weighted-average life (years)Weighted-average life (years)7.06.4Weighted-average life (years)6.96.56.96.5
(1)Prior to January 1, 2020, substantially all of Huntington’s MSR assets were recorded at amortized cost.
(2)Represents decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.
(3)Represents decrease in value associated with loans that paid off during the period.
(4)Represents change in value resulting primarily from market-driven changes in interest rates.
MSRs do not trade in an active, open market with readily observable prices. Therefore, the fair value of MSRs is estimated using a discounted future cash flow model. Changes in the assumptions used may have a significant impact on the valuation of MSRs. MSR values are highly sensitive to movement in interest rates as expected future net servicing income depends on the projected outstanding principal balances of the underlying loans, which can be greatly impacted by the level of prepayments.
For MSRs under the fair value method, a summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at March 31,June 30, 2021, and December 31, 2020 follows:
March 31, 2021December 31, 2020 (1)
Decline in fair value due toDecline in fair value due to
(dollar amounts in millions)Actual10%
adverse
change		20%
adverse
change		Actual10%
adverse
change		20%
adverse
change
Constant prepayment rate (annualized)
12.30 %$(15)$(28)17.36 %$(12)$(23)
Spread over forward interest rate swap rates509 bps(6)(12)519 bps(4)(8)
(1)Prior to January 1, 2020, substantially all of Huntington’s MSR assets were recorded at amortized cost.
June 30, 2021December 31, 2020
Decline in fair value due toDecline in fair value due to
(dollar amounts in millions)Actual10%
adverse
change		20%
adverse
change		Actual10%
adverse
change		20%
adverse
change
Constant prepayment rate (annualized)
12.94 %$(15)$(29)17.36 %$(12)$(23)
Spread over forward interest rate swap rates535 bps(7)(14)519 bps(4)(8)
Total servicing, late fees and other ancillary fees included in mortgage banking income was $18$17 million and $17$14 million for the three-month periods ended March 31,June 30, 2021 and 2020, respectively. For the six-month periods ended June 30, 2021 and 2020, total servicing, late fees and other ancillary fees included in mortgage banking income was $35 million and $31 million, respectively.
The unpaid principal balance of residential mortgage loans serviced for third parties was $23.6$30.3 billion and $23.5 billion at March 31,June 30, 2021 and December 31, 2020, respectively.
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7. GOODWILL AND OTHER INTANGIBLE ASSETS
Business segments are based on segment leadership structure, which reflects how segment performance is monitored and assessed. We have 4 major business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group (RBHPCG). The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
A rollforward of goodwill by business segment for the first six-month period of 2021 is presented in the table below.
(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington
Consolidated
Balance, December 31, 2020$1,393 $427 $0 $170 $0 $1,990 
TCF acquisition2,006 1,260 0 60 0 3,326 
Balance, June 30, 2021$3,399 $1,687 $0 $230 $0 $5,316 
For additional information on the acquisition, refer to Note 2 “Acquisition of TCF Financial Corporation”.
At June 30, 2021 and December 31, 2020, Huntington’s other intangible assets consisted of the following:
(dollar amounts in millions)Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value
June 30, 2021
Core deposit intangible$402 $(166)$236 
Customer relationship108 (75)33 
Total other intangible assets$510 $(241)$269 
December 31, 2020
Core deposit intangible$310 $(150)$160 
Customer relationship101 (70)31 
Total other intangible assets$411 $(220)$191 
The estimated amortization expense of other intangible assets for the remainder of 2021 and the next five years is as follows:
(dollar amounts in millions)
Amortization
Expense
2021$28 
202253 
202349 
202445 
202542 
202629 
2021 2Q Form 10-Q 73

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8. BORROWINGS
Borrowings with original maturities of one year or less are classified as short-term and were comprised of the following at June 30, 2021 and December 31, 2020, respectively:
(dollar amounts in millions)June 30,
2021		December 31,
2020
Federal funds purchased and securities sold under agreements to repurchase$255 $71 
Other borrowings136 112 
Total short-term borrowings$391 $183 
Huntington’s long-term debt consisted of the following at June 30, 2021 and December 31, 2020, respectively:

(dollar amounts in millions)June 30,
2021		December 31,
2020
The Parent Company:
Senior Notes$2,807 $3,635 
Subordinated Notes526 507 
Total notes issued by the parent3,333 4,142 
The Bank:
Senior Notes2,461 3,533 
Subordinated Notes850 233 
Total notes issued by the bank3,311 3,766 
FHLB Advances214 3 
Other484 441 
Total long-term debt$7,342 $8,352 

As a result of the TCF acquisition, Huntington assumed long-term debt totaling $1.5 billion, of which a FHLB advance of $214 million and subordinated notes of $637 million remain outstanding at June 30, 2021. The assumed long-term FHLB advance has a maturity date in 2025 and carried interest rate of 1.03% at June 30, 2021. The assumed subordinated notes included $21 million of parent company obligations due in 2032 to 2035 carrying variable interest rates based on three-month LIBOR plus 0.15% to 3.50% and $616 million of Bank obligations due in 2022 to 2030 carrying interest rates ranging from 0.64% to 3.75%.
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9. OTHER COMPREHENSIVE INCOME
The components of Huntington’s OCI for the three-month and six-month periods ended March 31,June 30, 2021 and 2020, were as follows:
Three Months Ended
March 31, 2021		Three Months Ended
June 30, 2021
Tax (expense)Tax (expense)
(dollar amounts in millions)(dollar amounts in millions)PretaxBenefitAfter-tax(dollar amounts in millions)PretaxBenefitAfter-tax
Unrealized gains (losses) on available-for-sale securities arising during the period$(287)$64 $(223)
Unrealized gains on available-for-sale securities arising during the periodUnrealized gains on available-for-sale securities arising during the period$88 $(20)$68 
Less: Reclassification adjustment for realized net losses (gains) included in net incomeLess: Reclassification adjustment for realized net losses (gains) included in net income9 (2)7 Less: Reclassification adjustment for realized net losses (gains) included in net income13 (3)10 
Net change in unrealized holding gains (losses) on available-for-sale securitiesNet change in unrealized holding gains (losses) on available-for-sale securities(278)62 (216)Net change in unrealized holding gains (losses) on available-for-sale securities101 (23)78 
Net change in fair value on cash flow hedgesNet change in fair value on cash flow hedges(44)10 (34)Net change in fair value on cash flow hedges(48)9 (39)
Translation adjustments, net of hedges (1)Translation adjustments, net of hedges (1)(6)0 (6)
Net change in pension and other post-retirement obligationsNet change in pension and other post-retirement obligations3 (1)2 Net change in pension and other post-retirement obligations3 1 4 
Total other comprehensive income (loss)$(319)$71 $(248)
Total other comprehensive incomeTotal other comprehensive income$50 $(13)$37 
Three Months Ended
March 31, 2020		Three Months Ended
June 30, 2020
Tax (expense)Tax (expense)
(dollar amounts in millions)(dollar amounts in millions)PretaxBenefitAfter-tax(dollar amounts in millions)PretaxBenefitAfter-tax
Unrealized gains (losses) on available-for-sale securities arising during the period$217 $(48)$169 
Unrealized gains on available-for-sale securities arising during the periodUnrealized gains on available-for-sale securities arising during the period$57 $(13)$44 
Less: Reclassification adjustment for realized net losses (gains) included in net incomeLess: Reclassification adjustment for realized net losses (gains) included in net income5 (1)4 Less: Reclassification adjustment for realized net losses (gains) included in net income23 (5)18 
Net change in unrealized gains (losses) on available-for-sale securitiesNet change in unrealized gains (losses) on available-for-sale securities222 (49)173 Net change in unrealized gains (losses) on available-for-sale securities80 (18)62 
Net change in fair value on cash flow hedgesNet change in fair value on cash flow hedges396 (88)308 Net change in fair value on cash flow hedges14 (3)11 
Net change in pension and other post-retirement obligationsNet change in pension and other post-retirement obligations2 0 2 Net change in pension and other post-retirement obligations(12)2 (10)
Total other comprehensive income (loss)$620 $(137)$483 
Total other comprehensive incomeTotal other comprehensive income$82 $(19)$63 
Six Months Ended
June 30, 2021
Tax (expense)
(dollar amounts in millions)PretaxBenefitAfter-tax
Unrealized gains (losses) on available-for-sale securities arising during the period$(199)$44 $(155)
Less: Reclassification adjustment for realized net losses (gains) included in net income22 (5)17 
Net change in unrealized holding gains (losses) on available-for-sale securities(177)39 (138)
Net change in fair value on cash flow hedges(92)19 (73)
Translation adjustments, net of hedges (1)(6)0 (6)
Net change in pension and other post-retirement obligations6 0 6 
Total other comprehensive loss$(269)$58 $(211)
Six Months Ended
June 30, 2020
Tax (expense)
(dollar amounts in millions)PretaxBenefitAfter-tax
Unrealized gains (losses) on available-for-sale securities arising during the period$274 $(61)$213 
Less: Reclassification adjustment for realized net losses (gains) included in net income28 (6)22 
Net change in unrealized holding gains (losses) on available-for-sale securities302 (67)235 
Net change in fair value on cash flow hedges409 (90)319 
Net change in pension and other post-retirement obligations(10)2 (8)
Total other comprehensive income$701 $(155)$546 
(1)Foreign investments are deemed to be permanent in nature and, therefore, Huntington does not provide for taxes on foreign currency translation adjustments.
2021 2Q Form 10-Q 75

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Activity in accumulated OCI for the three-month and six-month periods ended March 31,June 30, 2021 and 2020, were as follows:
(dollar amounts in millions)(dollar amounts in millions)
Unrealized gains (losses) on
debt securities (1)
Change in fair value related to cash flow hedges
Unrealized gains
(losses) for
pension and
other post-
retirement
obligations (2)
Total(dollar amounts in millions)
Unrealized
 gains (losses) on
debt securities (1)
Change in fair value related to cash flow hedgesTranslation adjustments, net of hedges
Unrealized
 gains
(losses) for
pension and
other post-
retirement
obligations (2)
Total
Three Months Ended March 31, 2021
Three Months Ended June 30, 2021Three Months Ended June 30, 2021
Balance, beginning of periodBalance, beginning of period$188 $257 $(253)$192 Balance, beginning of period$(28)$223 $0 $(251)$(56)
Other comprehensive income before reclassifications(223)(34)0 (257)
Other comprehensive income (loss) before reclassificationsOther comprehensive income (loss) before reclassifications68 (39)(6)0 23 
Amounts reclassified from accumulated OCI to earningsAmounts reclassified from accumulated OCI to earnings7 0 2 9 Amounts reclassified from accumulated OCI to earnings10 0 0 4 14 
Period changePeriod change(216)(34)2 (248)Period change78 (39)(6)4 37 
Balance, end of periodBalance, end of period$(28)$223 $(251)$(56)Balance, end of period$50 $184 $(6)$(247)$(19)
Three Months Ended March 31, 2020
Three Months Ended June 30, 2020Three Months Ended June 30, 2020
Balance, beginning of periodBalance, beginning of period$(28)$23 $(251)$(256)Balance, beginning of period$145 $331 $0 $(249)$227 
Other comprehensive income before reclassificationsOther comprehensive income before reclassifications169 308 0 477 Other comprehensive income before reclassifications44 11 0 0 55 
Amounts reclassified from accumulated OCI to earningsAmounts reclassified from accumulated OCI to earnings4 0 2 6 Amounts reclassified from accumulated OCI to earnings18 0 0 (10)8 
Period changePeriod change173 308 2 483 Period change62 11 0 (10)63 
Balance, end of periodBalance, end of period$145 $331 $(249)$227 Balance, end of period$207 $342 $0 $(259)$290 
(dollar amounts in millions)
Unrealized
 gains (losses) on
debt securities (1)
Change in fair value related to cash flow hedgesTranslation adjustments, net of hedges
Unrealized 
gains
(losses) for
pension and
other post-
retirement
obligations (2)
Total
Six Months Ended June 30, 2021
Balance, beginning of period$188 $257 $0 $(253)$192 
Other comprehensive loss before reclassifications(155)(73)(6)0 (234)
Amounts reclassified from accumulated OCI to earnings17 0 0 6 23 
Period change(138)(73)(6)6 (211)
Balance, end of period$50 $184 $(6)$(247)$(19)
Six Months Ended June 30, 2020
Balance, beginning of period$(28)$23 $0 $(251)$(256)
Other comprehensive income before reclassifications213 319 0 0 532 
Amounts reclassified from accumulated OCI to earnings22 0 0 (8)14 
Period change235 319 0 (8)546 
Balance, end of period$207 $342 $0 $(259)$290 
(1)AOCI amounts at March 31,June 30, 2021 December 31, 2020 and March 31,June 30, 2020 include $60 million, $69$48 million and $87$81 million, respectively, net of unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.

2021 1Q Form 10-Q 7661 Huntington Bancshares Incorporated

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8.10. SHAREHOLDERS’ EQUITY
Preferred Stock
The following is a summary of Huntington’s non-cumulative, non-voting, perpetual preferred stock outstanding as of March 31,June 30, 2021.
(dollar amounts in millions)(dollar amounts in millions)(dollar amounts in millions)
SeriesSeriesIssuance DateTotal Shares OutstandingCarrying AmountDividend RateEarliest Redemption DateSeriesIssuance DateTotal Shares OutstandingCarrying AmountDividend RateEarliest Redemption Date
Series BSeries B12/28/201135,500 $23 3-mo. LIBOR + 270 bps1/15/2017Series B12/28/201135,500 $23 3-mo. LIBOR + 270 bps1/15/2017
Series DSeries D3/21/2016400,000 386 6.25 %4/15/2021Series D3/21/2016400,000 386 6.25 %4/15/2021
Series DSeries D5/5/2016200,000 199 6.25 %4/15/2021Series D5/5/2016200,000 199 6.25 %4/15/2021
Series CSeries C8/16/2016100,000 100 5.875 %10/15/2021Series C8/16/2016100,000 100 5.875 %10/15/2021
Series ESeries E2/27/20185,000 495 5.700 %4/15/2023Series E2/27/20185,000 495 5.700 %4/15/2023
Series FSeries F5/27/20205,000 494 5.625 %7/15/2030Series F5/27/20205,000 494 5.625 %7/15/2030
Series GSeries G8/3/20205,000 494 4.450 %10/15/2027Series G8/3/20205,000 494 4.450 %10/15/2027
Series HSeries H2/2/2021500,000 485 4.500 %4/15/2026Series H2/2/2021500,000 485 4.500 %4/15/2026
Series ISeries I6/9/20217,000 175 5.700 %12/01/2022
TotalTotal1,250,500 $2,676 Total1,257,500 $2,851 
Series B, D, C and H of preferred stock have a liquidation value and redemption price per share of $1,000, plus any declared and unpaid dividends. Series E, F, G, and GI stock have a liquidation value and redemption price per share of $100,000, plus any declared and unpaid dividends. All preferred stock has no stated maturity and redemption is solely at ourHuntington’s option. Under current rules, any redemption of the preferred stock is subject to prior approval of the FRB.
On July 15, 2021, all 24,000,000 outstanding depositary shares, each representing a 1/40th interest in a share of Huntington’s 6.250% Series D Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, were redeemed. The depositary shares were redeemed at a price of $25.00 per depositary share (equivalent to $1,000 per share of Series D Preferred Stock) plus declared and unpaid dividends of $0.390625 per depositary share (equivalent to $15.625 per share of Series D Preferred Stock) for the period beginning on April 15, 2021 to, but not including, July 15, 2021. All dividends on the shares of Series D Preferred Stock will cease to accrue.
Preferred Series I Stock issued and outstanding
On June 9, 2021, each share of TCF Financial Corporation 5.70% Series C Non-Cumulative Perpetual Preferred Stock, $0.01 par value per share, outstanding immediately prior to the acquisition of TCF Financial Corporation was converted into the right to receive a share of the newly created Huntington 5.70% Series I Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share.
The following table presents the dividends declared for each series of Preferred shares for the three-month and six-month periods ended March 31,June 30, 2021 and 2020:
Three Months Ended March 31,Three Months Ended June 30,Six months ended June 30,
20212020
(amounts in millions, except per share data)(amounts in millions, except per share data)2021202020212020
(amounts in millions, except per share data)Cash Dividend Declared Per ShareCash Dividend Declared Per ShareCash Dividend Declared Per ShareCash Dividend Declared Per ShareCash Dividend Declared Per ShareCash Dividend Declared Per Share
Preferred SeriesPreferred SeriesAmount ($)Amount ($)Preferred SeriesAmount ($)Amount ($)Amount ($)Amount ($)
Series BSeries B$7.35 $0 $11.33 $(1)Series B7.21 $0 9.80 $0 14.56 $0 21.13 $(1)
Series CSeries C14.69 (2)14.69 (1)Series C14.69 (1)14.69 (2)29.38 (3)29.38 (3)
Series DSeries D15.63 (9)15.63 (9)Series D15.63 (9)15.63 (10)31.25 (18)31.25 (19)
Series ESeries E1,425.00 (7)1,425.00 (7)Series E1,425.00 (7)1,425.00 (7)2,850.00 (14)2,850.00 (14)
Series FSeries F1,406.25 (7)0 0 Series F1,406.25 (7)0 0 2,812.50 (14)0 0 
Series GSeries G1,112.50 (6)0 0 Series G1,112.50 (6)0 0 2,225.00 (12)0 0 
Series HSeries H19.50 (10)0 0 19.50 (10)0 0 
Series ISeries I356.25 (3)0 0 356.25 (3)0 0 
TotalTotal$(31)$(18)Total$(43)$(19)$(74)$(37)
2021 2Q Form 10-Q 77

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Change in Common Shares Authorized
During the second quarter of 2021, Huntington amended its charter to increase the number of authorized shares of common stock from 1.5 billion shares to 2.25 billion shares.
Treasury shares
Treasury shares includes shares held for deferred compensation plans, at cost, of $(105) million at June 30, 2021 and $(59) million at December 31, 2020.
Non-controlling Interest in Subsidiaries
Through the acquisition of TCF, Huntington acquired a joint venture with The Toro Company ("Toro") called Red Iron Acceptance, LLC ("Red Iron"). Red Iron provides U.S. distributors and dealers and select Canadian distributors of the Toro and Exmark branded products with sources of financing. Huntington and Toro maintain a 55% and 45% ownership interest, respectively, in Red Iron. As Huntington has a controlling financial interest in Red Iron, its financial results are consolidated in Huntington's financial statements. Toro's interest is reported as a non-controlling interest within equity.
9.11. (LOSS) EARNINGS PER SHARE
Basic (loss) earnings per share is the amount of (loss) earnings (adjusted for dividends declared on preferred stock) available to each share of common stock outstanding during the reporting period. Diluted (loss) earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options, restricted stock units and awards, and distributions from deferred compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive.
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The calculation of basic and diluted (loss) earnings per share for the three-month and six-month periods ended March 31,June 30, 2021 and 2020 was as follows:
Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions, except per share data, share count in thousands)(dollar amounts in millions, except per share data, share count in thousands)20212020(dollar amounts in millions, except per share data, share count in thousands)2021202020212020
Basic earnings per common share:Basic earnings per common share:Basic earnings per common share:
Net income$532 $48 
Net (loss) income attributable to Huntington Bancshares IncNet (loss) income attributable to Huntington Bancshares Inc$(15)$150 $517 $198 
Preferred stock dividendsPreferred stock dividends(31)(18)Preferred stock dividends43 19 74 37 
Net income available to common shareholders$501 $30 
Net (loss) income available to common shareholdersNet (loss) income available to common shareholders$(58)$131 $443 $161 
Average common shares issued and outstandingAverage common shares issued and outstanding1,017,512 1,017,643 Average common shares issued and outstanding1,125,039 1,016,259 1,071,276 1,016,951 
Basic earnings per common share$0.49 $0.03 
Basic (loss) earnings per common shareBasic (loss) earnings per common share$(0.05)$0.13 $0.41 $0.16 
Diluted earnings per common share:Diluted earnings per common share:Diluted earnings per common share:
Dilutive potential common shares:Dilutive potential common shares:Dilutive potential common shares:
Stock options and restricted stock units and awardsStock options and restricted stock units and awards18,397 12,363 Stock options and restricted stock units and awards0 7,516 17,667 9,939 
Shares held in deferred compensation plansShares held in deferred compensation plans5,094 4,570 Shares held in deferred compensation plans0 4,908 5,531 4,739 
Dilutive potential common sharesDilutive potential common shares23,491 16,933 Dilutive potential common shares0 12,424 23,198 14,678 
Total diluted average common shares issued and outstandingTotal diluted average common shares issued and outstanding1,041,003 1,034,576 Total diluted average common shares issued and outstanding1,125,039 1,028,683 1,094,474 1,031,629 
Diluted earnings per common share$0.48 $0.03 
Diluted (loss) earnings per common shareDiluted (loss) earnings per common share$(0.05)$0.13 $0.40 $0.16 
Anti-dilutive awards (1)Anti-dilutive awards (1)1,666 8,045 Anti-dilutive awards (1)26,895 17,200 2,738 12,291 
(1)Reflects the total number of shares related to outstanding options and awards that have been excluded from the computation of diluted earnings per share because the impact would have been anti-dilutive.

10.Due to the loss attributable to common shareholders for the three months ended June 30, 2021, no additional potentially dilutive shares were included in loss per share calculation as including such shares in the calculation would have reduced the reported loss per share.
78 Huntington Bancshares Incorporated

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12. NONINTEREST INCOME
Huntington earns a variety of revenue including interest and fees from customers as well as revenues from non-customers. Certain sources of revenue are recognized within interest or fee income and are outside of the scope of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Other sources of revenue fall within the scope of ASC 606 and are generally recognized within noninterest income. These revenues are included within various sections of the Unaudited Condensed Consolidated Financial Statements. The following table shows Huntington’s total noninterest income segregated between contracts with customers within the scope of ASC 606 and those within the scope of other GAAP Topics.
(dollar amounts in millions)Three Months Ended March 31,
Noninterest income20212020
Noninterest income from contracts with customers$222 $227 
Noninterest income within the scope of other GAAP topics173 134 
Total noninterest income$395 $361 
2021 1Q Form 10-Q 63

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(dollar amounts in millions)Three Months Ended June 30,Six Months Ended June 30,
Noninterest income2021202020212020
Noninterest income from contracts with customers$257 $201 $479 $428 
Noninterest income within the scope of other GAAP topics187 190 360 324 
Total noninterest income$444 $391 $839 $752 
The following table illustrates the disaggregation by operating segment and major revenue stream and reconciles disaggregated revenue to segment revenue presented in Note 1517 “Segment Reporting”.
Three Months Ended March 31, 2021Three Months Ended June 30, 2021
(dollar amounts in millions)(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated
Major Revenue StreamsMajor Revenue StreamsMajor Revenue Streams
Service charges on deposit accountsService charges on deposit accounts$48 $19 $2 $0 $0 $69 Service charges on deposit accounts$64 $22 $1 $1 $0 $88 
Card and payment processing incomeCard and payment processing income58 4 0 0 0 62 Card and payment processing income68 4 0 0 0 72 
Trust and investment management servicesTrust and investment management services13 1 0 38 0 52 Trust and investment management services15 0 0 40 0 55 
Insurance incomeInsurance income12 2 0 13 0 27 Insurance income14 1 0 9 1 25 
Other noninterest incomeOther noninterest income6 2 1 1 2 12 Other noninterest income5 7 0 4 1 17 
Net revenue from contracts with customersNet revenue from contracts with customers$137 $28 $3 $52 $2 $222 Net revenue from contracts with customers$166 $34 $1 $54 $2 $257 
Noninterest income within the scope of
other GAAP topics
Noninterest income within the scope of
other GAAP topics
99 60 0 1 13 173 
Noninterest income within the scope of
other GAAP topics
77 80 1 0 29 187 
Total noninterest incomeTotal noninterest income$236 $88 $3 $53 $15 $395 Total noninterest income$243 $114 $2 $54 $31 $444 
Three Months Ended March 31, 2020Three Months Ended June 30, 2020
(dollar amounts in millions)(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated
Major Revenue StreamsMajor Revenue StreamsMajor Revenue Streams
Service charges on deposit accountsService charges on deposit accounts$68 $17 $1 $1 $0 $87 Service charges on deposit accounts$39 $18 $1 $1 $0 $59 
Card and payment processing incomeCard and payment processing income52 4 0 0 0 56 Card and payment processing income52 3 0 0 0 55 
Trust and investment management servicesTrust and investment management services10 1 0 36 0 47 Trust and investment management services10 1 0 34 0 45 
Insurance incomeInsurance income8 2 0 12 1 23 Insurance income12 1 0 11 1 25 
Other noninterest incomeOther noninterest income8 3 1 1 1 14 Other noninterest income4 5 0 7 1 17 
Net revenue from contracts with customersNet revenue from contracts with customers$146 $27 $2 $50 $2 $227 Net revenue from contracts with customers$117 $28 $1 $53 $2 $201 
Noninterest income within the scope of
other GAAP topics
Noninterest income within the scope of
other GAAP topics
66 59 1 0 8 134 
Noninterest income within the scope of
other GAAP topics
101 57 1 1 30 190 
Total noninterest incomeTotal noninterest income$212 $86 $3 $50 $10 $361 Total noninterest income$218 $85 $2 $54 $32 $391 
2021 2Q Form 10-Q 79

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Six Months Ended June 30, 2021
(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated
Major Revenue Streams
Service charges on deposit accounts$112 $41 $3 $1 $0 $157 
Card and payment processing income126 8 0 0 0 134 
Trust and investment management services28 1 0 78 0 107 
Insurance income26 3 0 22 1 52 
Other noninterest income11 9 1 5 3 29 
Net revenue from contracts with customers$303 $62 $4 $106 $4 $479 
Noninterest income within the scope of
other GAAP topics
174 141 2 1 42 360 
Total noninterest income$477 $203 $6 $107 $46 $839 
Six Months Ended June 30, 2020
(dollar amounts in millions)Consumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated
Major Revenue Streams
Service charges on deposit accounts$107 $35 $2 $2 $0 $146 
Card and payment processing income104 7 0 0 0 111 
Trust and investment management services20 2 0 70 0 92 
Insurance income20 3 0 23 2 48 
Other noninterest income12 8 1 8 2 31 
Net revenue from contracts with customers$263 $55 $3 $103 $4 $428 
Noninterest income within the scope of
other GAAP topics
167 115 2 2 38 324 
Total noninterest income$430 $170 $5 $105 $42 $752 
Huntington generally provides services for customers in which it acts as principal. Payment terms and conditions vary amongst services and customers, and thus impact the timing and amount of revenue recognition. Some fees may be paid before any service is rendered and accordingly, such fees are deferred until the obligations pertaining to those fees are satisfied. Most Huntington contracts with customers are cancelable by either party without penalty or they are short-term in nature, with a contract duration of less than one year. Accordingly, most revenue deferred for the reporting period ended March 31,June 30, 2021 is expected to be earned within one year. Huntington does not have significant balances of contract assets or contract liabilities and any change in those balances during the reporting period ended March 31,June 30, 2021 was determined to be immaterial.
64 Huntington Bancshares Incorporated

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11.13. FAIR VALUES OF ASSETS AND LIABILITIES
See Note 20 “Fair Value of Assets and Liabilities” to the Consolidated Financial Statements of theappearing in Huntington’s 2020 Annual Report on Form 10-K for the year ended December 31, 2020 for a description of the valuation methodologies used for instruments measured at fair value. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. There were no such transfers during the three-month and six-month periods ended March 31,June 30, 2021 and 2020.
Assets and Liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis at March 31,June 30, 2021 and December 31, 2020 are summarized below:
Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)March 31, 2021
(dollar amounts in millions)Level 1Level 2Level 3
Assets
Trading account securities:
Municipal securities$0 $48 $0 $— $48 
Corporate debt0 3 0 — 3 
0 51 0 — 51 
Available-for-sale securities:
U.S. Treasury securities5 0 0 — 5 
Residential CMOs0 3,172 0 — 3,172 
Residential MBS0 10,645 0 — 10,645 
Commercial MBS0 1,227 0 — 1,227 
Other agencies0 46 0 — 46 
Municipal securities0 52 3,070 — 3,122 
Private-label CMO0 39 11 — 50 
Asset-backed securities0 200 47 — 247 
Corporate debt0 857 0 — 857 
Other securities/sovereign debt0 4 0 — 4 
5 16,242 3,128 — 19,375 
Other securities42 17 0 — 59 
Loans held for sale0 1,531 0 — 1,531 
Loans held for investment0 96 22 — 118 
MSRs0 0 274 — 274 
Derivative assets0 1,808 21 (816)1,013 
Liabilities
Derivative liabilities0 863 11 (703)171 
2021 1Q Form 10-Q 8065 Huntington Bancshares Incorporated

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Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)December 31, 2020Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)June 30, 2021
(dollar amounts in millions)(dollar amounts in millions)Level 1Level 2Level 3(dollar amounts in millions)Level 1Level 2Level 3
AssetsAssetsAssets
Trading account securities:Trading account securities:Trading account securities:
Municipal securitiesMunicipal securities$0 $62 $0 $— $62 Municipal securities$0 $92 $0 $— $92 
Corporate debtCorporate debt0 1 0 — 1 
0 93 0 — 93 
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
U.S. Treasury securitiesU.S. Treasury securities5 0 0 — 5 U.S. Treasury securities5 0 0 — 5 
Residential CMOsResidential CMOs0 3,666 0 — 3,666 Residential CMOs0 2,649 0 — 2,649 
Residential MBSResidential MBS0 7,935 0 — 7,935 Residential MBS0 13,197 0 — 13,197 
Commercial MBSCommercial MBS0 1,163 0 — 1,163 Commercial MBS0 1,368 0 — 1,368 
Other agenciesOther agencies0 62 0 — 62 Other agencies0 284 0 — 284 
Municipal securitiesMunicipal securities0 53 2,951 — 3,004 Municipal securities0 52 3,609 — 3,661 
Private-label CMOPrivate-label CMO0 0 9 — 9 Private-label CMO0 124 18 — 142 
Asset-backed securitiesAsset-backed securities0 182 10 — 192 Asset-backed securities0 255 46 — 301 
Corporate debtCorporate debt0 445 0 — 445 Corporate debt0 1,304 0 — 1,304 
Other securities/sovereign debtOther securities/sovereign debt0 4 0 — 4 Other securities/sovereign debt0 4 0 — 4 
5 13,510 2,970 — 16,485 5 19,237 3,673 — 22,915 
Other securitiesOther securities59 0 0 — 59 Other securities42 24 0 — 66 
Loans held for saleLoans held for sale0 1,198 0 — 1,198 Loans held for sale0 1,141 0 — 1,141 
Loans held for investmentLoans held for investment0 71 23 — 94 Loans held for investment0 110 21 — 131 
MSRsMSRs0 0 210 — 210 MSRs0 0 327 — 327 
Other assets:Other assets:
Derivative assetsDerivative assets0 1,903 43 (889)1,057 Derivative assets0 1,655 29 (732)952 
Assets held in trust for deferred compensation plansAssets held in trust for deferred compensation plans130 0 0 — 130 
LiabilitiesLiabilitiesLiabilities
Other liabilities:Other liabilities:
Derivative liabilitiesDerivative liabilities0 1,031 2 (917)116 Derivative liabilities0 1,042 6 (875)173 
2021 2Q Form 10-Q 81

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Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)December 31, 2020
(dollar amounts in millions)Level 1Level 2Level 3
Assets
Trading account securities:
Municipal securities$0 $62 $0 $— $62 
Available-for-sale securities:
U.S. Treasury securities5 0 0 — 5 
Residential CMOs0 3,666 0 — 3,666 
Residential MBS0 7,935 0 — 7,935 
Commercial MBS0 1,163 0 — 1,163 
Other agencies0 62 0 — 62 
Municipal securities0 53 2,951 — 3,004 
Private-label CMO0 0 9 — 9 
Asset-backed securities0 182 10 — 192 
Corporate debt0 445 0 — 445 
Other securities/sovereign debt0 4 0 — 4 
5 13,510 2,970 — 16,485 
Other securities59 0 0 — 59 
Loans held for sale0 1,198 0 — 1,198 
Loans held for investment0 71 23 — 94 
MSRs0 0 210 — 210 
Other assets:
Derivative assets0 1,903 43 (889)1,057 
Assets held in trust for deferred compensation plans73 0 0 — 73 
Liabilities
Other liabilities:
Derivative liabilities0 1,031 2 (917)116 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
The tables below present a rollforward of the balance sheet amounts for the three-month and six-month periods ended March 31,June 30, 2021 and 2020, for financial instruments measured on a recurring basis and classified as Level 3. The classification of an item as Level 3 is based on the significance of the unobservable inputs to the overall fair value measurement. However, Level 3 measurements may also include observable components of value that can be validated externally. Accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology.
Level 3 Fair Value Measurements
Three Months Ended March 31, 2021
Available-for-sale securitiesLoans held for investment
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Private-
label CMO
Asset-backed
securities
Opening balance$210 $41 $2,951 $9 $10 $23 
Transfers out of Level 3 (1)0 (39)0 0 0 0 
Total gains/losses for the period:
Included in earnings51 8 0 0 0 0 
Included in OCI0 0 (4)0 0 0 
Purchases/originations33 0 209 2 37 0 
Repayments0 0 0 0 0 (1)
Settlements(20)0 (86)0 0 0 
Closing balance$274 $10 $3,070 $11 $47 $22 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$51 $(26)$— $— $— $0 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period— — (5)0 0 — 
6682 Huntington Bancshares Incorporated

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Level 3 Fair Value Measurements
Three Months Ended March 31, 2020		Level 3 Fair Value Measurements
Three Months Ended June 30, 2021
MSRs
Derivative
instruments
Available-for-sale securitiesLoans held for investmentAvailable-for-sale securitiesLoans held for investment
(dollar amounts in millions)(dollar amounts in millions)
Municipal
securities
Private-
label
CMO
Asset-backed
securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Private-
label CMO
Asset-backed
securities
Opening balanceOpening balance$7 $6 $2,999 $2 $48 $26 Opening balance$274 $10 $3,070 $11 $47 $22 
Fair value election for servicing assets previously measured using the amortized method205 — — — — — 
Transfers out of Level 3 (1)Transfers out of Level 3 (1)0 (20)0 0 0 0 Transfers out of Level 3 (1)0 (31)0 0 0 0 
Total gains/losses for the period:Total gains/losses for the period:Total gains/losses for the period:
Included in earningsIncluded in earnings(47)53 (1)0 0 0 Included in earnings(24)37 0 0 0 0 
Included in OCIIncluded in OCI0 0 (68)0 0 0 Included in OCI0 0 (1)0 0 0 
Purchases/originations0 0 73 0 27 0 
Purchases/originations/acquisitionsPurchases/originations/acquisitions97 7 1,144 6 38 0 
SalesSales— — (352)— — — 
RepaymentsRepayments0 0 0 0 0 (1)
SettlementsSettlements0 0 (66)0 (6)0 Settlements(20)0 (252)1 (39)0 
Closing balanceClosing balance$165 $39 $2,937 $2 $69 $26 Closing balance$327 $23 $3,609 $18 $46 $21 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting dateChange in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$(47)$34 $— $— $— $0 Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$(24)$5 $— $— $— $0 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting periodChange in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period$— $— (68)$0 0$0 $— Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period— — (1)0 0 — 
Level 3 Fair Value Measurements
Three Months Ended June 30, 2020
MSRs
Derivative
instruments
Available-for-sale securitiesLoans held for investment
(dollar amounts in millions)
Municipal
securities
Private-
label
CMO
Asset-backed
securities
Opening balance$165 $39 $2,937 $2 $69 $26 
Transfers out of Level 3 (1)0 (55)0 0 0 0 
Total gains/losses for the period:
Included in earnings7 56 0 0 0 0 
Included in OCI0 0 69 0 0 0 
Purchases/originations0 0 264 3 0 0 
Repayments0 0 0 0 0 (1)
Settlements0 0 (168)0 (13)0 
Closing balance$172 $40 $3,102 $5 $56 $25 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$7 $0 $— $— $— $0 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period— — (20)0 0 — 
2021 2Q Form 10-Q 83

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Level 3 Fair Value Measurements
Six Months Ended June 30, 2021
Available-for-sale securitiesLoans held for investment
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Private- label CMO
Asset-backed
securities
Opening balance$210 $41 $2,951 $9 $10 $23 
Transfers out of Level 3 (1)0 (70)0 0 0 0 
Total gains/losses for the period:
Included in earnings27 45 0 0 0 0 
Included in OCI0 0 (5)0 0 0 
Purchases/originations/acquisitions130 7 1,353 8 75 0 
Sales— — (352)— — — 
Repayments0 0 0 0 0 (2)
Settlements(40)0 (338)1 (39)0 
Closing balance$327 $23 $3,609 $18 $46 $21 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$27 $(21)$— $— $— $0 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period— — (4)0 0 — 
Level 3 Fair Value Measurements
Six Months Ended June 30, 2020
Available-for-sale securitiesLoans held for investment
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Private-
label
CMO
Asset-
backed
securities
Opening balance$7 $6 $2,999 $2 $48 $26 
Fair value election for servicing assets previously measured using the amortized method205 — — — — — 
Transfers out of Level 3 (1)0 (75)0 0 0 0 
Total gains/losses for the period:
Included in earnings(40)109 (1)0 0 0 
Included in OCI0 0 1 0 0 0 
Purchases/originations0 0 338 3 28 0 
Repayments0 0 0 0 0 (1)
Settlements0 0 (235)0 (20)0 
Closing balance$172 $40 $3,102 $5 $56 $25 
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date$(40)$34 $— $— $— $0 
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period— — 2 — 0 0 — 
(1)Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2.
The tables below summarize the classification of gains and losses due to changes in fair value, recorded in earnings for Level 3 assets and liabilities for the three-month and six-month periods ended March 31,June 30, 2021 and 2020:
Level 3 Fair Value Measurements
Three Months Ended March 31, 2021
(dollar amounts in millions)MSRs
Derivative
instruments
Classification of gains and losses in earnings:
Mortgage banking income$51 $8 
Total$51 $8 
Level 3 Fair Value Measurements
Three Months Ended March 31, 2020
Available-for-sale securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Classification of gains and losses in earnings:
Mortgage banking income$(47)$53 $0 
Interest and fee income0 0 (1)
Total$(47)$53 $(1)
2021 1Q Form 10-Q 8467 Huntington Bancshares Incorporated

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Level 3 Fair Value Measurements
Three Months Ended June 30, 2021
(dollar amounts in millions)MSRs
Derivative
instruments
Classification of gains and losses in earnings:
Mortgage banking income$(24)$37 
Total$(24)$37 
Level 3 Fair Value Measurements
Three Months Ended June 30, 2020
(dollar amounts in millions)MSRs
Derivative
instruments
Classification of gains and losses in earnings:
Mortgage banking income$7 $56 
Total$7 $56 
Level 3 Fair Value Measurements
Six Months Ended June 30, 2021
(dollar amounts in millions)MSRs
Derivative
instruments
Classification of gains and losses in earnings:
Mortgage banking income$27 $45 
Total$27 $45 
Level 3 Fair Value Measurements
Six Months Ended June 30, 2020
Available-for-sale securities
(dollar amounts in millions)MSRs
Derivative
instruments
Municipal
securities
Classification of gains and losses in earnings:
Mortgage banking income$(40)$109 $0 
Interest and fee income0 0 (1)
Total$(40)$109 $(1)
Assets and liabilities under the fair value option
The following tables present the fair value and aggregate principal balance of certain assets and liabilities under the fair value option:
March 31, 2021June 30, 2021
(dollar amounts in millions)(dollar amounts in millions)Total LoansLoans that are 90 or more days past due(dollar amounts in millions)Total LoansLoans that are 90 or more days past due
AssetsAssets
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
DifferenceAssets
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Loans held for saleLoans held for sale$1,531 $1,501 $30 $0 $0 $0 Loans held for sale$1,141 $1,100 $41 $0 $0 $0 
Loans held for investmentLoans held for investment118 123 (5)4 5 (1)Loans held for investment131 136 (5)3 4 (1)
December 31, 2020
(dollar amounts in millions)Total LoansLoans that are 90 or more days past due
Assets
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Fair value
carrying
amount
Aggregate
unpaid
principal
Difference
Loans held for sale$1,198 $1,134 $64 $2 $2 $0 
Loans held for investment94 99 (5)7 8 (1)
The following table present the net gains (losses) from fair value changes for the three-month and six-month
2021 2Q Form 10-Q 85

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periods ended March 31,June 30, 2021 and 2020.
Net gains (losses) from fair value changesNet gains (losses) from fair value changes
(dollar amounts in millions)(dollar amounts in millions)Three Months Ended March 31,(dollar amounts in millions)Three Months Ended June 30,Six Months Ended June 30,
AssetsAssets20212020Assets2021202020212020
Loans held for sale (1)Loans held for sale (1)$(34)$19 Loans held for sale (1)$11 $3 $(23)$22 
(1)The net gains (losses) from fair value changes are included in Mortgage banking income on the Unaudited Condensed Consolidated Statements of Income.
Assets and Liabilities measured at fair value on a nonrecurring basis
Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The amounts presented represent the fair value on the various measurement dates throughout the period. The gains (losses) represent the amounts recorded during the period regardless of whether the asset is still held at period end.
The amounts measured at fair value on a nonrecurring basis at March 31,June 30, 2021 were as follows:
Fair Value Measurements UsingFair Value Measurements Using
(dollar amounts in millions)(dollar amounts in millions)Fair Value
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Total
Gains/(Losses)
Three Months Ended
March 31, 2021
(dollar amounts in millions)Fair Value
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Total
Gains/(Losses)
 Six Months Ended
June 30, 2021
Collateral-dependent loansCollateral-dependent loans12 0 0 12 (1)Collateral-dependent loans17 0 0 17 (2)
Loans held for saleLoans held for sale15 — — 15 2 
Huntington records nonrecurring adjustments of collateral-dependent loans held for investment. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Appraisals are generally obtained to support the fair value of the collateral and incorporate measures such as recent sales prices for comparable properties and cost of construction. Periodically, in cases where the carrying value exceeds the fair value of the collateral less cost to sell, an impairment charge is recognized in the form of a charge-off.

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Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis
The table below presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at March 31,June 30, 2021 and December 31, 2020:
Quantitative Information about Level 3 Fair Value Measurements at March 31, 2021 (1) (1)Quantitative Information about Level 3 Fair Value Measurements at June 30, 2021 (1)
(dollar amounts in millions)(dollar amounts in millions)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average(dollar amounts in millions)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Measured at fair value on a recurring basis:Measured at fair value on a recurring basis:Measured at fair value on a recurring basis:
MSRsMSRs$274 Discounted cash flowConstant prepayment rate6 %-22%12 %MSRs$327 Discounted cash flowConstant prepayment rate7 %-21%13 %
Spread over forward interest rate swap rates3 %-11%5 %Spread over forward interest rate swap rates4 %-11%5.35 %
Derivative assetsDerivative assets21 Consensus PricingNet market price(5)%-12%1 %Derivative assets29 Consensus PricingNet market price(14)%-12%2 %
Estimated Pull through %6 %-100%90 %Estimated Pull through %1 %-100%89 %
Municipal securitiesMunicipal securities3,070 Discounted cash flowDiscount rate0 %-2%1 %Municipal securities3,609 Discounted cash flowDiscount rate0 %-2%1 %
Asset-backed securitiesAsset-backed securities47 Cumulative default0 %-39%4 %Asset-backed securities46 Cumulative default0 %-39%4 %
Loss given default5 %-80%25 %Loss given default5 %-90%24 %
Measured at fair value on a nonrecurring basis:Measured at fair value on a nonrecurring basis:Measured at fair value on a nonrecurring basis:
Collateral-dependent loansCollateral-dependent loans12 Appraisal valueN/AN/ACollateral-dependent loans17 Appraisal valueN/AN/A
Loans held for saleLoans held for sale15 Appraisal valueN/AN/A
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Quantitative Information about Level 3 Fair Value Measurements at December 31, 2020 (1)
(dollar amounts in millions)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Measured at fair value on a recurring basis:
MSRs$210 Discounted cash flowConstant prepayment rate8 %-24%17 %
Spread over forward interest rate swap rates4 %-11%5 %
Derivative assets43 Consensus PricingNet market price(4)%-11%3 %
Estimated Pull through %1 %-100%88 %
Municipal securities2,951 Discounted cash flowDiscount rate0 %1%1 %
Asset-backed securities10 Cumulative default0 %39%4 %
Loss given default5 %80%25 %
Measured at fair value on a nonrecurring basis:
Collateral-dependent loans144 Appraisal valueN/ANA
(1)     Certain disclosures related to quantitative level 3 fair value measurements do not include those deemed to be immaterial.
The following provides a general description of the impact of a change in an unobservable input on the fair value measurement and the interrelationship between unobservable inputs, where relevant/significant. Interrelationships may also exist between observable and unobservable inputs.
Credit loss estimates, such as probability of default, constant default, cumulative default, loss given default, cure given deferral, and loss severity, are driven by the ability of the borrowers to pay their loans and the value of the underlying collateral and are impacted by changes in macroeconomic conditions, typically increasing when economic conditions worsen and decreasing when conditions improve. An increase in the estimated prepayment rate typically results in a decrease in estimated credit losses and vice versa. Higher credit loss estimates generally result in lower fair values. Credit spreads generally increase when liquidity risks and market volatility increase and decrease when liquidity conditions and market volatility improve.
Discount rates and spread over forward interest rate swap rates typically increase when market interest rates increase and/or credit and liquidity risks increase and decrease when market interest rates decline and/or credit and liquidity conditions improve. Higher discount rates and credit spreads generally result in lower fair market values.
Net market price and pull through percentages generally increase when market interest rates increase and decline when market interest rates decline. Higher net market price and pull through percentages generally result in higher fair values.
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Fair values of financial instruments
The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments at March 31,June 30, 2021 and December 31, 2020:
March 31, 2021June 30, 2021
(dollar amounts in millions)(dollar amounts in millions)Amortized CostLower of Cost or Market
Fair Value or
Fair Value Option
Total Carrying AmountEstimated Fair Value(dollar amounts in millions)Amortized CostLower of Cost or Market
Fair Value or
Fair Value Option
Total Carrying AmountEstimated Fair Value
Financial AssetsFinancial AssetsFinancial Assets
Cash and short-term assetsCash and short-term assets$8,641 $— $— $8,641 $8,641 Cash and short-term assets$13,926 $— $— $13,926 $13,926 
Trading account securitiesTrading account securities— — 51 51 51 Trading account securities— — 93 93 93 
Available-for-sale securitiesAvailable-for-sale securities— — 19,375 19,375 19,375 Available-for-sale securities— — 22,915 22,915 22,915 
Held-to-maturity securitiesHeld-to-maturity securities7,815 — — 7,815 8,062 Held-to-maturity securities11,415 — — 11,415 11,641 
Other securitiesOther securities352 — 59 411 411 Other securities626 — 66 692 692 
Loans held for saleLoans held for sale— 6 1,531 1,537 1,537 Loans held for sale— 250 1,141 1,391 1,393 
Net loans and leases (1)Net loans and leases (1)78,409 — 118 78,527 78,603 Net loans and leases (1)109,556 — 131 109,687 109,878 
Derivative assetsDerivative assets— — 1,013 1,013 1,013 Derivative assets— — 952 952 952 
Assets held in trust for deferred compensation plansAssets held in trust for deferred compensation plans— — 130 130 130 
Financial LiabilitiesFinancial LiabilitiesFinancial Liabilities
DepositsDeposits102,184 — — 102,184 102,231 Deposits142,805 — — 142,805 142,804 
Short-term borrowingsShort-term borrowings219 — — 219 219 Short-term borrowings391 — — 391 391 
Long-term debtLong-term debt7,210 — — 7,210 7,305 Long-term debt7,342 — — 7,342 7,433 
Derivative liabilitiesDerivative liabilities— — 171 171 171 Derivative liabilities— — 173 173 173 
December 31, 2020December 31, 2020
(dollar amounts in millions)(dollar amounts in millions)Amortized CostLower of Cost or Market
Fair Value or
Fair Value Option
Total Carrying AmountEstimated Fair Value(dollar amounts in millions)Amortized CostLower of Cost or Market
Fair Value or
Fair Value Option
Total Carrying AmountEstimated Fair Value
Financial AssetsFinancial AssetsFinancial Assets
Cash and short-term assetsCash and short-term assets$6,712 $— $— $6,712 $6,712 Cash and short-term assets$6,712 $— $— $6,712 $6,712 
Trading account securitiesTrading account securities— — 62 62 62 Trading account securities— — 62 62 62 
Available-for-sale securitiesAvailable-for-sale securities— — 16,485 16,485 16,485 Available-for-sale securities— — 16,485 16,485 16,485 
Held-to-maturity securitiesHeld-to-maturity securities8,861 — — 8,861 9,255 Held-to-maturity securities8,861 — — 8,861 9,255 
Other securitiesOther securities359 — 59 418 418 Other securities359 — 59 418 418 
Loans held for saleLoans held for sale— 77 1,198 1,275 1,275 Loans held for sale— 77 1,198 1,275 1,275 
Net loans and leases (1)Net loans and leases (1)79,700 — 94 79,794 80,477 Net loans and leases (1)79,700 — 94 79,794 80,477 
Derivative assetsDerivative assets— — 1,057 1,057 1,057 Derivative assets— — 1,057 1,057 1,057 
Assets held in trust for deferred compensation plansAssets held in trust for deferred compensation plans— — 73 73 73 
Financial LiabilitiesFinancial LiabilitiesFinancial Liabilities
DepositsDeposits98,948 — — 98,948 99,021 Deposits98,948 — — 98,948 99,021 
Short-term borrowingsShort-term borrowings183 — — 183 183 Short-term borrowings183 — — 183 183 
Long-term debtLong-term debt8,352 — — 8,352 8,568 Long-term debt8,352 — — 8,352 8,568 
Derivative liabilitiesDerivative liabilities— — 116 116 116 Derivative liabilities— — 116 116 116 
(1)Includes collateral-dependent loans.
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The following table presents the level in the fair value hierarchy for the estimated fair values at March 31,June 30, 2021 and December 31, 2020:
Estimated Fair Value Measurements at Reporting Date UsingNetting Adjustments (1) March 31, 2021Estimated Fair Value Measurements at Reporting Date UsingNetting Adjustments (1) June 30, 2021
(dollar amounts in millions)(dollar amounts in millions)Level 1Level 2Level 3(dollar amounts in millions)Level 1Level 2Level 3
Financial AssetsFinancial AssetsFinancial Assets
Trading account securitiesTrading account securities$0 $51 $0 $51 Trading account securities$0 $93 $0 $93 
Available-for-sale securitiesAvailable-for-sale securities5 16,242 3,128 19,375 Available-for-sale securities5 19,237 3,673 22,915 
Held-to-maturity securitiesHeld-to-maturity securities0 8,062 0 8,062 Held-to-maturity securities0 11,641 0 11,641 
Other securities (2)Other securities (2)42 17 0 59 Other securities (2)42 24 0 66 
Loans held for saleLoans held for sale0 1,531 6 1,537 Loans held for sale0 1,141 252 1,393 
Net loans and direct financing leasesNet loans and direct financing leases0 96 78,507 78,603 Net loans and direct financing leases0 110 109,768 109,878 
Derivative assetsDerivative assets0 1,808 21 $(816)1,013 Derivative assets0 1,655 29 $(732)952 
Financial LiabilitiesFinancial LiabilitiesFinancial Liabilities
DepositsDeposits0 99,998 2,233 102,231 Deposits0 136,863 5,941 142,804 
Short-term borrowingsShort-term borrowings0 219 0 219 Short-term borrowings0 391 0 391 
Long-term debtLong-term debt0 6,736 569 7,305 Long-term debt0 6,655 778 7,433 
Derivative liabilitiesDerivative liabilities0 863 11 (703)171 Derivative liabilities0 1,042 6 (875)173 
Estimated Fair Value Measurements at Reporting Date UsingNetting Adjustments (1)December 31, 2020
(dollar amounts in millions)Level 1Level 2Level 3
Financial Assets
Trading account securities$0 $62 $0 $62 
Available-for-sale securities5 13,510 2,970 16,485 
Held-to-maturity securities0 9,255 0 9,255 
Other securities (2)59 0 0 59 
Loans held for sale0 1,198 77 1,275 
Net loans and direct financing leases0 71 80,406 80,477 
Derivative assets0 1,903 43 $(889)1,057 
Financial Liabilities
Deposits0 96,656 2,365 99,021 
Short-term borrowings0 183 0 183 
Long-term debt0 7,999 569 8,568 
Derivative liabilities0 1,031 2 (917)116 
(1)Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties.
(2)Excludes securities without readily determinable fair values.
The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include trading account securities, customers’ acceptance liabilities, short-term borrowings, bank acceptances outstanding, FHLB advances, and cash and short-term assets, which include cash and due from banks, interest-bearing deposits in banks, interest-bearing deposits at Federal Reserve Bank, federal funds sold, and securities purchased under resale agreements. Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses that limit Huntington’s exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.
Certain assets, the most significant being operating lease assets, bank owned life insurance, and premises and equipment, do not meet the definition of a financial instrument and are excluded from this disclosure. Similarly, mortgage servicing rights, deposit base, and other customer relationship intangibles are not considered financial instruments and are not included above. Accordingly, this fair value information is not intended to, and does not,
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represent Huntington’s underlying value. Many of the assets and liabilities subject to the disclosure requirements are not actively traded, requiring fair values to be estimated by Management.management. These estimations necessarily involve
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the use of judgment about a wide variety of factors, including but not limited to, relevancy of market prices of comparable instruments, expected future cash flows, and appropriate discount rates.
12.14. DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are recorded in the Unaudited Condensed Consolidated Balance Sheets as either an asset or a liability (in other assets or other liabilities, respectively) and measured at fair value.
Derivative financial instruments can be designated as accounting hedges under GAAP. Designating a derivative as an accounting hedge allows Huntington to recognize gains and losses on the hedging instruments in the income statement line item where the gains and losses on the hedged item are recognized. Gains and losses on derivatives that are not designated in an effective hedge relationship under GAAP immediately impact earnings within the period they occur.
The following table presents the fair values and notional values of all derivative instruments included in the Unaudited Condensed Consolidated Balance Sheets at March 31,June 30, 2021 and December 31, 2020. Amounts in the table below are presented gross without the impact of any net collateral arrangements.
March 31, 2021December 31, 2020June 30, 2021December 31, 2020
(dollar amounts in millions)(dollar amounts in millions)Notional ValueAssetLiabilityNotional ValueAssetLiability(dollar amounts in millions)Notional ValueAssetLiabilityNotional ValueAssetLiability
Derivatives designated as Hedging InstrumentsDerivatives designated as Hedging InstrumentsDerivatives designated as Hedging Instruments
Interest rate contractsInterest rate contracts$24,937 $638 $42 $27,056 $719 $51 Interest rate contracts$20,452 $541 $41 $27,056 $719 $51 
Foreign exchange contractsForeign exchange contracts220 5 1 0 0 0 
Derivatives not designated as Hedging InstrumentsDerivatives not designated as Hedging InstrumentsDerivatives not designated as Hedging Instruments
Interest rate contractsInterest rate contracts55,792 1,034 686 44,495 1,074 828 Interest rate contracts53,363 871 745 44,495 1,074 828 
Foreign exchange contractsForeign exchange contracts2,737 44 42 2,718 46 47 Foreign exchange contracts3,101 48 45 2,718 46 47 
Commodities contractsCommodities contracts1,660 101 98 1,952 107 103 Commodities contracts1,614 214 210 1,952 107 103 
Equity contractsEquity contracts502 12 6 517 0 4 Equity contracts694 5 6 517 0 4 
Total ContractsTotal Contracts$85,628 $1,829 $874 $76,738 $1,946 $1,033 Total Contracts$79,444 $1,684 $1,048 $76,738 $1,946 $1,033 
The following table presents the amount of gain or loss recognized in income for derivatives not designated as hedging instruments under ASC Subtopic 815-10 in the Unaudited Condensed Consolidated Income Statement for the three-month and six-month periods ended March 31,June 30, 2021 and 2020, respectively.
Location of Gain or (Loss) Recognized in Income
on Derivative
Amount of Gain or (Loss) Recognized in Income on Derivative
Location of Gain or (Loss) Recognized in Income
on Derivative
Amount of Gain or (Loss) Recognized in Income on Derivative
Three Months Ended
March 31,
Location of Gain or (Loss) Recognized in Income
on Derivative
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020
Location of Gain or (Loss) Recognized in Income
on Derivative
2021202020212020
Interest rate contracts:Interest rate contracts:
CustomerCustomerCapital markets fees$12 $18 Customer$12 $12 $24 $29 
Mortgage BankingMortgage banking income(6)96 
Mortgage bankingMortgage bankingMortgage banking income(23)6 (29)63 
Interest rate floorsInterest rate floorsInterest and fee income on loans and leases(2)0 Interest rate floorsInterest and fee income on loans and leases(2)0 (4)0 
Interest rate capsInterest rate capsInterest expense on long-term debt144 0 Interest rate capsInterest expense on long-term debt(55)0 89 0 
Foreign exchange contractsForeign exchange contractsCapital markets fees6 6 Foreign exchange contractsCapital markets fees7 6 13 12 
Commodities contractsCommodities contractsCapital markets fees0 2 Commodities contractsCapital markets fees0 1 0 3 
Equity contractsEquity contractsOther noninterest expense(7)(2)Equity contractsOther noninterest expense3 (1)(4)(3)
TotalTotal$147 $120 Total$(58)$24 $89 $104 
Derivatives used in asset and liability management activities
Huntington engages in balance sheet hedging activity, principally for asset and liability management purposes. Balance sheet hedging activity is generally arranged to receive hedge accounting treatment that can be classified as either fair value or cash flow hedges. Fair value hedges are executed to hedge changes in fair value of outstanding fixed-rate debt and investment securities caused by fluctuations in market interest rates. Cash flow hedges are
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executed to modify interest rate characteristics of designated commercial loans in order to reduce the impact of changes in future cash flows due to market interest rate changes.
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The following table presents the gross notional values of derivatives used in Huntington’s asset and liability management activities at March 31,June 30, 2021 and December 31, 2020, identified by the underlying interest rate-sensitive instruments.
March 31, 2021June 30, 2021
(dollar amounts in millions)(dollar amounts in millions)Fair Value HedgesCash Flow HedgesEconomic HedgesTotal(dollar amounts in millions)Fair Value HedgesCash Flow HedgesEconomic HedgesTotal
Instruments associated with:Instruments associated with:Instruments associated with:
Investment securitiesInvestment securities$3,190 $0 $0 $3,190 Investment securities$5,201 $0 $0 $5,201 
LoansLoans0 16,350 1,271 17,621 Loans0 10,450 1,471 11,921 
Long-term debtLong-term debt5,397 0 8,000 13,397 Long-term debt4,801 0 0 4,801 
Total notional value at March 31, 2021$8,587 $16,350 $9,271 $34,208 
Total notional value at June 30, 2021Total notional value at June 30, 2021$10,002 $10,450 $1,471 $21,923 
December 31, 2020December 31, 2020
(dollar amounts in millions)(dollar amounts in millions)Fair Value HedgesCash Flow HedgesEconomic HedgesTotal(dollar amounts in millions)Fair Value HedgesCash Flow HedgesEconomic HedgesTotal
Instruments associated with:Instruments associated with:Instruments associated with:
Investment securitiesInvestment securities$3,484 $0 $0 $3,484 Investment securities$3,484 $0 $0 $3,484 
LoansLoans0 17,375 1,271 18,646 Loans0 17,375 1,271 18,646 
Long-term debtLong-term debt6,197 0 5,000 11,197 Long-term debt6,197 0 5,000 11,197 
Total notional value at December 31, 2020Total notional value at December 31, 2020$9,681 $17,375 $6,271 $33,327 Total notional value at December 31, 2020$9,681 $17,375 $6,271 $33,327 
These derivative financial instruments were entered into for the purpose of managing the interest rate risk of assets and liabilities. Net amounts receivable or payable on contracts hedging either interest earning assets or interest bearing liabilities were accrued as an adjustment to either interest income or interest expense. Also, recorded as an adjustmentAdjustments to interest income were also recorded for the amounts related to the amortization of floors and forward-starting floors that were excluded from the hedge effectiveness, changes in the fair value of economic hedges, as well as the amounts related to terminated hedges reclassified from AOCI. The net amounts resulted in an increase (decrease) to net interest income of $225$5 million and $16$52 million for the three-month periods ended March 31,June 30, 2021, and 2020, respectively. For the six-month periods ended June 30, 2021, and 2020, the net amounts resulted in an increase to net interest income of $230 million and $68 million, respectively.
Fair Value Hedges
The changes in fair value of the fair value hedges are recorded through earnings and offset against changes in the fair value of the hedged item.
Huntington has designated $2.8$4.8 billion of interest rate swaps as fair value hedges of fixed-rate investment securities using the last-of-layer method. This approach allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows. The fair value basis adjustment on our hedged mortgage-backed securities is included in available-for-sale securities on our Unaudited Condensed Consolidated Statements of Financial Condition. Huntington has also designated $0.4 billion of interest rate swaps as fair value hedges of fixed-rate corporate bonds.
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The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting change in fair value on the hedged item for the three-month and six-month periods ended March 31,June 30, 2021 and 2020.
Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)2021202020212020
Interest rate contractsInterest rate contractsInterest rate contracts
Change in fair value of interest rate swaps hedging investment securities (1)Change in fair value of interest rate swaps hedging investment securities (1)$43 $0 Change in fair value of interest rate swaps hedging investment securities (1)$(6)$(1)$37 $(1)
Change in fair value of hedged investment securities (1)Change in fair value of hedged investment securities (1)(44)0 Change in fair value of hedged investment securities (1)4 1 (40)1 
Change in fair value of interest rate swaps hedging long-term debt (2)Change in fair value of interest rate swaps hedging long-term debt (2)(50)200 Change in fair value of interest rate swaps hedging long-term debt (2)(23)(5)(73)196 
Change in fair value of hedged long term debt (2)Change in fair value of hedged long term debt (2)52 (190)Change in fair value of hedged long term debt (2)22 (4)74 (195)
(1)Recognized in Interest income—available-for-sale securities—taxable in the Unaudited Condensed Consolidated Statements of Income
(2)Recognized in Interest expense—long-term debt in the Unaudited Condensed Consolidated Statements of Income.
As of March 31,June 30, 2021, and December 31, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges.
Amortized CostCumulative Amount of Fair Value Hedging Adjustment To Hedged ItemsAmortized CostCumulative Amount of Fair Value Hedging Adjustment To Hedged Items
(dollar amounts in millions)(dollar amounts in millions)March 31, 2021December 31, 2020March 31, 2021December 31, 2020(dollar amounts in millions)June 30, 2021December 31, 2020June 30, 2021December 31, 2020
AssetsAssetsAssets
Investment securities (1)Investment securities (1)$5,713 $6,637 $1 $3 Investment securities (1)$11,960 $6,637 $(1)$3 
LiabilitiesLiabilitiesLiabilities
Long-term debtLong-term debt5,538 6,383 180 232 Long-term debt4,947 6,383 158 232 
(1)Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of March 31,June 30, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $5.3$11.5 billion, the cumulative basis adjustments associated with these hedging relationships was $1 million, and the amounts of the designated hedged itemshedging instruments were $2.8$4.8 billion.
The cumulative amount of fair value hedging adjustments remaining for any hedged assets and liabilities for which hedge accounting has been discontinued was $(50)$(48) million and $(62) million at March 31,June 30, 2021 and December 31, 2020, respectively.
Cash Flow Hedges
At March 31,June 30, 2021, Huntington has $16.4$10.5 billion of interest rate floors, floor spreads and swaps. These are designated as cash flow hedges for variable rate commercial loans indexed to LIBOR. The change in the fair value of a derivative instrument designated as a cash flow hedge is initially recognized in OCI and is reclassified into income when the hedged item impacts earnings. The initial premium paid for the interest rate floor contracts represents the time value of the contracts and is not included in the measurement of hedge effectiveness. Any change in fair value related to time value is recognized in OCI. The initial premium paid is amortized on a straight line basis as a reduction to interest income over the contractual life of these contracts.
Gains and (losses) on interest rate floors, floor spreads, and swaps recognized in other comprehensive income were $(34)$(39) million and $308$11 million for the three-monthsthree-month periods ended March 31,June 30, 2021 and 2020, respectively. For the six-month periods ended June 30, 2021 and 2020, gains and losses on interest rate floors and swaps recognized in other comprehensive income were $(73) million and $319 million, respectively.
Net investment Hedges
Huntington has entered into forward foreign exchange contracts to hedge the value of the Company’s investments in non-U.S. dollar functional currency entities. The total notional amount of forward foreign exchange contracts at June 30, 2021 was $220 million.
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Derivatives used in mortgage banking activities
Mortgage loan origination hedging activity
Huntington’s mortgage origination hedging activity is related to economically hedging Huntington’s mortgage pricing commitments to customers and the secondary sale to third parties. The value of a newly originated mortgage is not firm until the interest rate is committed or locked. Forward commitments to sell economically hedge the possible loss on interest rate lock commitments due to interest rate change. The net asset position of these derivatives at March 31,June 30, 2021 and December 31, 2020 are $65$21 million and $26 million, respectively. At March 31,June 30, 2021 and December 31, 2020, Huntington had commitments to sell residential real estate loans of $2.9$2.3 billion and $2.9 billion, respectively. These contracts mature in less than one year.
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MSR hedging activity
Huntington’s MSR economic hedging activity uses securities and derivatives to manage the value of the MSR asset and to mitigate the various types of risk inherent in the MSR asset, including risks related to duration, basis, convexity, volatility, and yield curve. The hedging instruments include forward commitments, TBA securities, Treasury futures contracts, interest rate swaps, and options on interest rate swaps.
The notional value of the derivative financial instruments, the corresponding net asset (liability) position recognized in other assets and/or other liabilities, and net trading gains (losses) related to MSR hedging activity is summarized in the following table:
(dollar amounts in millions)March 31,
2021		December 31,
2020
Notional value$875 $1,170 
Trading assets9 43 

Three Months Ended
March 31, 2021
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)June 30,
2021		December 31,
2020
Trading gains$(46)$57 
Notional valueNotional value$1,193 $1,170 
Trading assetsTrading assets24 43 

Three Months Ended
June 30, 2021		Six Months Ended
June 30, 2021
(dollar amounts in millions)2021202020212020
Trading gains$22 $6 $(24)$63 
MSR hedging trading assets and liabilities are included in other assets and other liabilities, respectively, in the Unaudited Condensed Balance Sheets. Trading gains (losses) are included in mortgage banking income in the Unaudited Condensed Consolidated Statement of Income.
Derivatives used in customer related activities
Various derivative financial instruments are offered to enable customers to meet their financing and investing objectives and for their risk management purposes. Derivative financial instruments used in trading activities consist of commodity, interest rate, and foreign exchange contracts. Huntington enters into offsetting third-party contracts with approved, reputable counterparties with substantially matching terms and currencies in order to economically hedge significant exposure related to derivatives used in trading activities.
The interest rate or price risk of customer derivatives is mitigated by entering into similar derivatives having offsetting terms with other counterparties. The credit risk to these customers is evaluated and included in the calculation of fair value. Foreign currency derivatives help the customer hedge risk and reduce exposure to fluctuations in exchange rates. Transactions are primarily in liquid currencies with Canadian dollars and Euros comprising a majority of all transactions. Commodity derivatives help the customer hedge risk and reduce exposure to fluctuations in the price of various commodities. Hedging of energy-related products and base metals comprise the majority of these transactions.
The net fair values of these derivative financial instruments, for which the gross amounts are included in other assets or other liabilities at both March 31,June 30, 2021 and December 31, 2020, were $73$74 million and $70 million, respectively. The total notional values of derivative financial instruments used by Huntington on behalf of customers, including offsetting derivatives, were $46$51 billion and $37 billion at March 31,June 30, 2021 and December 31, 2020, respectively. Huntington’s credit risk from customer derivatives was $593$853 million and $882 million at the same dates, respectively.
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Financial assets and liabilities that are offset in the Unaudited Condensed Consolidated Balance Sheets
Huntington records derivatives at fair value as further described in Note 1113 “Fair Values of Assets and Liabilities”.
Derivative balances are presented on a net basis taking into consideration the effects of legally enforceable master netting agreements. Additionally, collateral exchanged with counterparties is also netted against the applicable derivative fair values. Huntington enters into derivative transactions with 2 primary groups: broker-dealers and banks, and Huntington’s customers. Different methods are utilized for managing counterparty credit exposure and credit risk for each of these groups.
Huntington enters into transactions with broker-dealers and banks for various risk management purposes. These types of transactions generally are high dollar volume. Huntington enters into collateral and master netting agreements with these counterparties, and routinely exchanges cash and high quality securities collateral.
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Huntington enters into transactions with customers to meet their financing, investing, payment and risk management needs. These types of transactions generally are low dollar volume. Huntington enters into master netting agreements with customer counterparties; however, collateral is generally not exchanged with customer counterparties.
In addition to the customer derivative credit exposure, aggregate credit risk associated with broker-dealer and bank derivative transactions, net of collateral that has been pledged by the counterparty, was $420$99 million and $175 million at March 31,June 30, 2021 and December 31, 2020, respectively. The credit risk associated with derivatives is calculated after considering master netting agreements.
At March 31,June 30, 2021, Huntington pledged $69$458 million of investment securities and cash collateral to counterparties, while other counterparties pledged $434$303 million of investment securities and cash collateral to Huntington to satisfy collateral netting agreements. In the event of credit downgrades, Huntington would not be required to provide additional collateral.
The following tables present the gross amounts of these assets and liabilities with any offsets to arrive at the net amounts recognized in the Unaudited Condensed Consolidated Balance Sheets at March 31,June 30, 2021 and December 31, 2020.
Offsetting of Financial Assets and Derivative Assets
Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets		Net amounts of
assets
presented in
the unaudited condensed
consolidated
balance sheets		Gross amounts not offset in the
unaudited condensed consolidated
balance sheets		Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets		Net amounts of
assets
presented in
the unaudited condensed
consolidated
balance sheets		Gross amounts not offset in the
unaudited condensed consolidated
balance sheets
(dollar amounts in millions)(dollar amounts in millions)
Gross amounts
of recognized
assets
Financial
instruments
Cash collateral
received
Net amount(dollar amounts in millions)
Gross amounts
of recognized
assets
Financial
instruments
Cash collateral
received
Net amount
March 31, 2021$1,829 $(816)$1,013 $(82)$(190)$741 
June 30, 2021June 30, 2021$1,684 $(732)$952 $(82)$(146)$724 
December 31, 2020December 31, 20201,946 (889)1,057 (112)(142)803 December 31, 20201,946 (889)1,057 (112)(142)803 
Offsetting of Financial Liabilities and Derivative Liabilities
Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets
Net amounts of
liabilities
presented in
the unaudited condensed
consolidated
balance sheets
Gross amounts not offset in the
unaudited condensed consolidated
balance sheets
Gross amounts
offset in the unaudited
condensed
consolidated
balance sheets
Net amounts of
liabilities
presented in
the unaudited condensed
consolidated
balance sheets
Gross amounts not offset in the
unaudited condensed consolidated
balance sheets
(dollar amounts in millions)(dollar amounts in millions)
Gross amounts
of recognized
liabilities
Financial
instruments
Cash collateral
delivered
Net amount(dollar amounts in millions)
Gross amounts
of recognized
liabilities
Financial
instruments
Cash collateral
delivered
Net amount
March 31, 2021$874 $(703)$171 $(17)$(173)$(19)
June 30, 2021June 30, 2021$1,048 $(875)$173 $0 $(173)$0 
December 31, 2020December 31, 20201,033 (917)116 (9)(105)2 December 31, 20201,033 (917)116 (9)(105)2 
94 Huntington Bancshares Incorporated

13.
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15. VIEs
Unconsolidated VIEs
The following tables provide a summary of the assets and liabilities included in Huntington’s Unaudited Condensed Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related to unconsolidated VIEs for which Huntington holds an interest in, but is not the primary beneficiary, of the VIE at March 31,June 30, 2021, and December 31, 2020:
March 31, 2021
(dollar amounts in millions)Total AssetsTotal LiabilitiesMaximum Exposure to Loss
Trust Preferred Securities$14 $253 $0 
Affordable Housing Tax Credit Partnerships945 445 945 
Other Investments329 72 329 
Total$1,288 $770 $1,274 
76 Huntington Bancshares Incorporated

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June 30, 2021
(dollar amounts in millions)Total AssetsTotal LiabilitiesMaximum Exposure to Loss
Trust Preferred Securities$14 $274 $0 
Affordable Housing Tax Credit Partnerships1,293 644 1,293 
Other Investments422 105 422 
Total$1,729 $1,023 $1,715 
December 31, 2020
(dollar amounts in millions)Total AssetsTotal LiabilitiesMaximum Exposure to Loss
Trust Preferred Securities$14 $252 $0 
Affordable Housing Tax Credit Partnerships956 500 956 
Other Investments308 72 308 
Total$1,278 $824 $1,264 
Trust-Preferred Securities
Huntington has certain wholly-owned trusts whose assets, liabilities, equity, income, and expenses are not included within Huntington’s Unaudited Condensed Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing trust-preferred securities, from which the proceeds are then invested in Huntington junior subordinated debentures, which are reflected in Huntington’s Unaudited Condensed Consolidated Balance Sheet as long-term debt. The trust securities are the obligations of the trusts, and as such, are not consolidated within Huntington’s Unaudited Condensed Consolidated Financial Statements.
A list of trust preferred securities outstanding at March 31,June 30, 2021 follows:
(dollar amounts in millions)(dollar amounts in millions)Rate
Principal amount of
subordinated note/
debenture issued to trust (1)
Investment in
unconsolidated
subsidiary
(dollar amounts in millions)Rate
Principal amount of
subordinated note/
debenture issued to trust (1)
Investment in
unconsolidated
subsidiary
Huntington Capital IHuntington Capital I0.81 %(2)$70 $6 Huntington Capital I0.85 %(2)$70 $6 
Huntington Capital IIHuntington Capital II0.74 (3)32 3 Huntington Capital II0.77 (3)32 3 
Sky Financial Capital Trust IIISky Financial Capital Trust III1.51 (4)72 2 Sky Financial Capital Trust III1.55 (4)72 2 
Sky Financial Capital Trust IVSky Financial Capital Trust IV1.51 (4)74 2 Sky Financial Capital Trust IV1.55 (4)74 2 
Camco Financial TrustCamco Financial Trust1.44 (5)5 1 Camco Financial Trust1.48 (5)5 1 
First Huron TrustFirst Huron Trust5.07 5 0 
First Place Capital Trust IFirst Place Capital Trust I3.00 (6)4 0 
First Place Capital Trust IIFirst Place Capital Trust II6.45 4 0 
First Place Capital Trust IIIFirst Place Capital Trust III5.69 8 0 
TotalTotal$253 $14 Total$274 $14 
(1)Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.
(2)Variable effective rate at March 31,June 30, 2021, based on three-month LIBOR +0.70%.
(3)Variable effective rate at March 31,June 30, 2021, based on three-month LIBOR +0.625%.
(4)Variable effective rate at March 31,June 30, 2021, based on three-month LIBOR +1.40%.
(5)Variable effective rate at March 31,June 30, 2021, based on three-month LIBOR +1.33%.
(6)Variable effective rate at June 30, 2021, based on three-month LIBOR +2.85%.
Each issue of the junior subordinated debentures has an interest rate equal to the corresponding trust securities distribution rate. Huntington has the right to defer payment of interest on the debentures at any time, or from time-to-time for a period not exceeding five years provided that no extension period may extend beyond the stated
2021 2Q Form 10-Q 95

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maturity of the related debentures. During any such extension period, distributions to the trust securities will also be deferred and Huntington’s ability to pay dividends on its common stock will be restricted. Periodic cash payments and payments upon liquidation or redemption with respect to trust securities are guaranteed by Huntington to the extent of funds held by the trusts. The guarantee ranks subordinate and junior in right of payment to all indebtedness of the Company to the same extent as the junior subordinated debt. The guarantee does not place a limitation on the amount of additional indebtedness that may be incurred by Huntington.
Affordable Housing Tax Credit Partnerships
Huntington makes certain equity investments in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity.
Huntington uses the proportional amortization method to account for a majority of its investments in these entities. These investments are included in other assets. Investments that do not meet the requirements of the proportional amortization method are accounted for using the equity method. Investment losses related to these investments are included in noninterest income in the Unaudited Condensed Consolidated Statements of Income.
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The following table presents the balances of Huntington’s affordable housing tax credit investments and related unfunded commitments at March 31,June 30, 2021 and December 31, 2020.
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
Affordable housing tax credit investmentsAffordable housing tax credit investments$1,582 $1,568 Affordable housing tax credit investments$1,957 $1,568 
Less: amortizationLess: amortization(637)(612)Less: amortization(664)(612)
Net affordable housing tax credit investmentsNet affordable housing tax credit investments$945 $956 Net affordable housing tax credit investments$1,293 $956 
Unfunded commitmentsUnfunded commitments$445 $500 Unfunded commitments$644 $500 
The following table presents other information relating to Huntington’s affordable housing tax credit investments for the three-month and six-month periods ended March 31,June 30, 2021 and 2020.
Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
(dollar amounts in millions)(dollar amounts in millions)20212020(dollar amounts in millions)2021202020212020
Tax credits and other tax benefits recognizedTax credits and other tax benefits recognized$33 $29 Tax credits and other tax benefits recognized$44 $30 $77 $59 
Proportional amortization expense included in provision for income taxesProportional amortization expense included in provision for income taxes28 25 Proportional amortization expense included in provision for income taxes30 25 58 50 
There were no sales of affordable housing tax credit investments during the three-month and six-month periods ended March 31,June 30, 2021 and 2020. There was no impairment recognized for the three-month and six-month periods ended March 31,June 30, 2021 and 2020.
Other investments
Other investments determined to be VIE’s include investments in Small Business Investment Companies, Historic Tax Credit Investments, certain equity method investments, renewable energy financings, and other miscellaneous investments.
96 Huntington Bancshares Incorporated
14.
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16. COMMITMENTS AND CONTINGENT LIABILITIES
Commitments to extend credit
In the ordinary course of business, Huntington makes various commitments to extend credit that are not reflected in the Unaudited Condensed Consolidated Financial Statements. The contract amounts of these financial agreements at March 31,June 30, 2021 and December 31, 2020, were as follows:
(dollar amounts in millions)(dollar amounts in millions)March 31,
2021		December 31,
2020		(dollar amounts in millions)June 30,
2021		December 31,
2020
Contract amount representing credit riskContract amount representing credit riskContract amount representing credit risk
Commitments to extend credit:Commitments to extend credit:Commitments to extend credit:
CommercialCommercial$21,580 $20,701 Commercial$31,990 $20,701 
ConsumerConsumer14,966 14,808 Consumer19,704 14,808 
Commercial real estateCommercial real estate1,315 1,313 Commercial real estate2,287 1,313 
Standby letters of credit632 581 
Standby letters of credit and guarantees on industrial revenue bondsStandby letters of credit and guarantees on industrial revenue bonds714 581 
Commercial letters of creditCommercial letters of credit12 21 Commercial letters of credit17 21 
Commitments to extend credit generally have fixed expiration dates, are variable-rate, and contain clauses that permit Huntington to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in the customer’s credit quality. These arrangements normally require the payment of a fee by the customer, the pricing of which is based on prevailing market conditions, credit quality, probability of funding, and other relevant factors. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. The interest rate risk arising from these financial instruments is insignificant as a result of their predominantly short-term, variable-rate nature.
78 Huntington Bancshares Incorporated

Table Collateral to secure any funding of Contents
these commitments predominately consists of residential and commercial real estate mortgage loans.
Standby letters-of-credit and guarantees on industrial revenue bonds are conditional commitments issued to guarantee the performance of a customer to a third-party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Most of these arrangements mature within two years. Since the conditions under which Huntington is required to fund these commitments may not materialize, the cash requirements are expected to be less than the total outstanding commitments. The carrying amount of deferred revenue associated with these guarantees was $6 million and $5 million at March 31,June 30, 2021 and December 31, 2020, respectively.
Commercial letters-of-credit represent short-term, self-liquidating instruments that facilitate customer trade transactions and generally have maturities of no longer than 90 days. The goods or cargo being traded normally secure these instruments.
Litigation and Regulatory Matters
In the ordinary course of business, Huntington is routinely a defendant in or party to pending and threatened legal and regulatory actions and proceedings.
In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, Huntington generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each matter may be.
Huntington establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Huntington thereafter continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established.
For certain matters, Huntington is able to estimate a range of possible loss. In cases in which Huntington possesses information to estimate a range of possible loss, that estimate is aggregated and disclosed below. There may be other matters for which a loss is probable or reasonably possible but such an estimate of the range of possible loss may not be possible. For those matters where an estimate of the range of possible loss is possible, management currently estimates the aggregate range of reasonably possible loss is $0 to $10$15 million at March 31, June 30,
2021 2Q Form 10-Q 97

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2021 in excess of the accrued liability (if any) related to those matters. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. The estimated range of possible loss does not represent Huntington’s maximum loss exposure.
Based on current knowledge, management does not believe that loss contingencies arising from pending matters will have a material adverse effect on the consolidated financial position of Huntington. Further, management believes that amounts accrued are adequate to address Huntington’s contingent liabilities. However, in light of the inherent uncertainties involved in these matters, some of which are beyond Huntington’s control, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to Huntington’s results of operations for any particular reporting period.
15.17. SEGMENT REPORTING
Huntington’s business segments are based on our internally-aligned segment leadership structure, which is how management monitors results and assesses performance. The Company has 4 major business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, Regional Banking and The Huntington Private Client Group (RBHPCG). The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense. For a description of our business segments, see Note 26 - Segment Reporting to the Consolidated Financial Statements of the Corporation’sappearing in Huntington’s 2020 Annual Report on Form 10-K.
2021 1Q Form 10-Q 9879 Huntington Bancshares Incorporated

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Business segment results are determined based upon Huntington’s management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.
Huntington uses an active and centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury / Other function where it can be centrally monitored and managed. The Treasury / Other function charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. The FTP rate is based on prevailing market interest rates for comparable duration assets (or liabilities).
Listed in the table below is certain operating basis financial information reconciled to Huntington’s March 31,June 30, 2021, December 31, 2020, and March 31,June 30, 2020, reported results by business segment.
Three Months Ended March 31,Three Months Ended June 30,
Income StatementsIncome StatementsConsumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington ConsolidatedIncome StatementsConsumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated
(dollar amounts in millions)(dollar amounts in millions)(dollar amounts in millions)
202120212021
Net interest incomeNet interest income$337 $199 $107 $34 $295 $972 Net interest income$366 $258 $109 $37 $68 $838 
Provision (benefit) for credit lossesProvision (benefit) for credit losses(36)5 (22)(7)0 (60)Provision (benefit) for credit losses100 137 (31)5 0 211 
Noninterest incomeNoninterest income236 88 3 53 15 395 Noninterest income243 114 2 54 31 444 
Noninterest expenseNoninterest expense469 133 35 62 94 793 Noninterest expense513 173 37 72 277 1,072 
Provision (benefit) for income taxesProvision (benefit) for income taxes29 31 21 7 14 102 Provision (benefit) for income taxes0 13 21 3 (23)14 
Net income (loss)$111 $118 $76 $25 $202 $532 
Net (loss) incomeNet (loss) income$(4)$49 $84 $11 $(155)$(15)
202020202020
Net interest incomeNet interest income$364 $232 $106 $43 $45 $790 Net interest income$368 $240 $100 $40 $44 $792 
Provision (benefit) for credit losses82 298 60 1 0 441 
Provision for credit lossesProvision for credit losses31 226 70 0 0 327 
Noninterest incomeNoninterest income212 86 3 50 10 361 Noninterest income218 85 2 54 32 391 
Noninterest expenseNoninterest expense418 129 35 62 8 652 Noninterest expense422 136 34 62 21 675 
Provision (benefit) for income taxesProvision (benefit) for income taxes16 (23)3 6 8 10 Provision (benefit) for income taxes27 (7)0 6 5 31 
Net income (loss)Net income (loss)$60 $(86)$11 $24 $39 $48 Net income (loss)$106 $(30)$(2)$26 $50 $150 
Assets atDeposits at
(dollar amounts in millions)March 31,
2021		December 31,
2020		March 31,
2021		December 31,
2020
Consumer & Business Banking$30,627 $30,758 $65,437 $60,910 
Commercial Banking36,797 36,311 25,420 24,766 
Vehicle Finance19,208 19,789 849 722 
RBHPCG6,837 7,064 7,163 7,635 
Treasury / Other32,299 29,116 3,315 4,915 
Total$125,768 $123,038 $102,184 $98,948 
Six months ended June 30,
Income StatementsConsumer & Business BankingCommercial BankingVehicle FinanceRBHPCGTreasury / OtherHuntington Consolidated
(dollar amounts in millions)
2021
Net interest income$703 $457 $217 $70 $363 $1,810 
Provision (benefit) for credit losses63 143 (53)(2)0 151 
Noninterest income477 203 6 107 46 839 
Noninterest expense984 306 72 132 371 1,865 
Provision (benefit) for income taxes28 44 43 10 (9)116 
Net income$105 $167 $161 $37 $47 $517 
2020
Net interest income$733 $472 $206 $83 $88 $1,582 
Provision for credit losses114 523 131 0 0 768 
Noninterest income430 170 5 105 42 752 
Noninterest expense840 265 69 124 29 1,327 
Provision (benefit) for income taxes44 (31)2 14 12 41 
Net income (loss)$165 $(115)$9 $50 $89 $198 
Assets atDeposits at
(dollar amounts in millions)June 30,
2021		December 31,
2020		June 30,
2021		December 31,
2020
Consumer & Business Banking$43,250 $30,758 $95,693 $60,910 
Commercial Banking54,053 36,311 32,624 24,766 
Vehicle Finance19,998 19,789 1,155 722 
RBHPCG7,763 7,064 8,416 7,635 
Treasury / Other50,108 29,116 4,917 4,915 
Total$175,172 $123,038 $142,805 $98,948 

802021 2Q Form 10-Q Huntington Bancshares Incorporated99

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Item 3: Quantitative and Qualitative Disclosures about Market Risk
Quantitative and qualitative disclosures for the current period can be found in the Market Risk section of this report, which includes changes in market risk exposures from disclosures presented in Huntington’s 2020 Annual Report on Form 10-K.
Item 4: Controls and Procedures
Disclosure Controls and Procedures
Huntington maintains disclosure controls and procedures designed to ensure that the information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the Exchange Act), are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Huntington’s Management,management, with the participation of its Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of Huntington’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31,June 30, 2021. Based upon such evaluation, Huntington’s Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31,June 30, 2021, Huntington’s disclosure controls and procedures were effective.
TCF was acquired on June 9, 2021. We have extended oversight and monitoring processes that support internal control over financial reporting to include the acquired operations. There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31,June 30, 2021, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
PART II. OTHER INFORMATION
In accordance with the instructions to Part II, the other specified items in this part have been omitted because they are not applicable or the information has been previously reported.
Item 1: Legal Proceedings
Information required by this item is set forth in Note 1416 “Commitments and Contingent Liabilities” of the Notes to Unaudited Condensed Consolidated Financial Statements under the caption “Litigation and Regulatory Matters” and is incorporated into this Item by reference.
Item 1A: Risk Factors
Information required by this item is set forth in Part 1 Item 2- Management’s Discussion and Analysis of FinancialCondition and Results of Operations of this report and incorporated herein by reference.
100 Huntington Bancshares Incorporated

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
(a) and (b)
Not Applicable
(c)
PeriodTotal Number of Shares Purchased (1)Average
Price Paid
Per Share		Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs (2)
JanuaryApril 1, 2021 to JanuaryApril 30, 2021— — — 
May 1, 2020 to May 31, 2021— — — 
February 1, 2020 to February 28, 2021— — — 
MarchJune 1, 2021 to March 31,June 30, 2021— — — 
Total— $— $— 
(1)The reported shares were repurchased pursuant to Huntington’s publicly-announced share repurchase authorization.
(2)The number shown represents, as of the end of each period, the approximate dollar value of Common Stock that may yet be purchased under publicly-announced share repurchase authorizations. The shares may be purchased, from time-to-time, depending on market conditions.
Subsequent to quarter end, the Board approved the repurchase of up to $800 million of common shares over the next four quarters. Purchases of common stock under the authorization may include open market purchases, privately negotiated transactions, and accelerated share repurchase programs.
2021 1Q2Q Form 10-Q 81101

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Item 6. Exhibits
Exhibit Index
This report incorporates by reference the documents listed below that we have previously filed with the SEC. The SEC allows us to incorporate by reference information in this document. The information incorporated by reference is considered to be a part of this document, except for any information that is superseded by information that is included directly in this document.
The SEC maintains an Internet web site that contains reports, proxy statements, and other information about issuers, like us, who file electronically with the SEC. The address of the site is http://www.sec.gov. The reports and other information filed by us with the SEC are also available free of charge at our internet web site. The address of the site is http://www.huntington.com. Except as specifically incorporated by reference into this Quarterly Report on Form 10-Q, information on those web sites is not part of this report. You also should be able to inspect reports, proxy statements, and other information about us at the offices of the Nasdaq National Market at 33 Whitehall Street, New York, New York 10004.
Exhibit
Number		Exhibit
Number		Document DescriptionReport or Registration StatementSEC File or
Registration
Number		Exhibit
Reference		Exhibit
Number		Document DescriptionReport or Registration StatementSEC File or
Registration
Number		Exhibit
Reference
3.13.1
3.1
3.1
3.1
3.23.2
3.2
3.2
3.2
3.33.3
3.1
3.3
3.1
3.43.4
3.1
3.4
3.1
3.53.5
3.3
3.5
3.3
3.63.6
3.1
3.6
3.1
3.73.7
3.1
3.83.8
3.2
10.110.1
Appendix B
10.1
Appendix B
4.1(P)4.1(P)Instruments defining the Rights of Security Holders—reference is made to Articles Fifth, Eighth, and Tenth of Articles of Restatement of Charter, as amended and supplemented. Instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission upon request.4.1(P)Instruments defining the Rights of Security Holders—reference is made to Articles Fifth, Eighth, and Tenth of Articles of Restatement of Charter, as amended and supplemented. Instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission upon request.
31.131.131.1
31.231.231.2
32.132.132.1
32.232.232.2
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The following material from Huntington’s Form 10-Q Report for the quarterly period ended March 31,June 30, 2021 formatted in Inline XBRL: (1) Unaudited Condensed Consolidated Balance Sheets, (2) Unaudited Condensed Consolidated Statements of Income, (3) Unaudited Condensed Consolidated Statements of Comprehensive Income (4) Unaudited Condensed Consolidated Statement of Changes in Shareholders’ Equity, (5) Unaudited Condensed Consolidated Statements of Cash Flows, and (6) the Notes to Unaudited Condensed Consolidated Financial Statements.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HUNTINGTON BANCSHARES INCORPORATED
(Registrant)
 
Date:April 30,August 6, 2021 /s/ Stephen D. Steinour
 Stephen D. Steinour
 Chairman, President, and Chief Executive Officer (Principal Executive Officer)
Date:April 30,August 6, 2021 /s/ Zachary Wasserman
 Zachary Wasserman
 
Chief Financial Officer
(Principal Financial Officer)

2021 1Q2Q Form 10-Q 83103