SEGMENT REPORTING

9 Months Ended

Sep. 30, 2020

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 four 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 24 -

Segment Reporting to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.

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 September 30, 2020, December 31, 2019, and September 30, 2019, reported results by business segment.



	Three Months Ended September 30,
Income Statements	Consumer & Business Banking		Commercial Banking		Vehicle Finance		RBHPCG		Treasury / Other		Huntington Consolidated
(dollar amounts in millions)
2020
Net interest income	$	367	$	221	$	110	$	39	$	80	$	817
Provision (benefit) for credit losses	87		87		(12)		15		—		177
Noninterest income	274		90		2		47		17		430
Noninterest expense	450		135		34		56		37		712
Provision (benefit) for income taxes	22		19		19		3		(8)		55
Net income (loss)	$	82	$	70	$	71	$	12	$	68	$	303
2019
Net interest income	$	433	$	263	$	100	$	48	$	(45)	$	799
Provision (benefit) for credit losses	35		36		12		(1)		—		82
Noninterest income	223		101		4		47		14		389
Noninterest expense	421		142		36		63		5		667
Provision (benefit) for income taxes	42		39		12		7		(33)		67
Net income (loss)	$	158	$	147	$	44	$	26	$	(3)	$	372


	Nine Months Ended September 30,
Income Statements	Consumer & Business Banking		Commercial Banking		Vehicle Finance		RBHPCG		Treasury / Other		Huntington Consolidated
(dollar amounts in millions)
2020
Net interest income	$	1,099	$	693	$	316	$	122	$	169	$	2,399
Provision (benefit) for credit losses	200		611		118		16		—		945
Noninterest income	704		261		7		151		59		1,182
Noninterest expense	1,288		400		103		181		67		2,039
Provision (benefit) for income taxes	66		(12)		21		16		5		96
Net income (loss)	$	249	$	(45)	$	81	$	60	$	156	$	501
2019
Net interest income	$	1,371	$	798	$	291	$	153	$	(180)	$	2,433
Provision (benefit) for credit losses	81		103		27		(3)		—		208
Noninterest income	596		266		9		147		64		1,082
Noninterest expense	1,247		427		112		193		41		2,020
Provision (benefit) for income taxes	134		113		33		23		(110)		193
Net income (loss)	$	505	$	421	$	128	$	87	$	(47)	$	1,094


	Assets at				Deposits at
(dollar amounts in millions)	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
Consumer & Business Banking	$	30,966	$	25,073	$	59,302	$	51,675
Commercial Banking	35,503		34,337		23,599		20,762
Vehicle Finance	19,664		20,155		777		376
RBHPCG	6,934		6,665		6,623		6,370
Treasury / Other	27,049		22,772		4,853		3,164
Total	$	120,116	$	109,002	$	95,154	$	82,347