HUNTINGTON BANCSHARES INC MD

For the period ended Dec 31, 2023. Filed Feb 16, 2024.

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FY2023 · Filed Feb 16, 2024

HBANL$24.78+0.0%Stored close · as of Nov 9, 2026

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Other Regulatory Matters

OTHER REGULATORY MATTERS

Huntington and the Bank are subject to certain risk-based capital and leverage ratio requirements under the U.S. Basel III capital rules adopted by the Federal Reserve, for Huntington, and by the OCC, for the Bank. These rules implement the Basel III international regulatory capital standards in the U.S., as well as certain provisions of the Dodd-Frank Act. These quantitative calculations are minimums, and the Federal Reserve and OCC may determine that a banking organization, based on its size, complexity, or risk profile, must maintain a higher level of capital in order to operate in a safe and sound manner. Under the U.S. Basel III capital rules, Huntington’s and the Bank’s assets, exposures and certain off-balance sheet items are subject to risk weights used to determine the institutions’ risk-weighted assets.

Failure to be well-capitalized or to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on our operations or financial condition. Failure to be well-capitalized or to meet minimum capital requirements could also result in restrictions on Huntington’s or the Bank’s ability to pay dividends or otherwise distribute capital or to receive regulatory approval of applications.

In addition to meeting the minimum capital requirements under the U.S. Basel III capital rules, Huntington and the Bank must also maintain the applicable capital buffer requirements, SCB or CCB, to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management.

155 Huntington Bancshares Incorporated

As of December 31, 2023, Huntington’s and the Bank’s regulatory capital ratios were above the well-capitalized standards and met the applicable capital buffer requirements. Please refer to the table below for a summary of Huntington’s and the Bank’s regulatory capital ratios.

Minimum · Minimum Ratio+ · Basel III
Regulatory · Capital Buffer (1) · Well- · At December 31,
Capital · At December 31, · Capitalized · 2023 · 2022
(dollar amounts in millions) · Ratios · 2023 · 2022 · Minimums · Ratio · Amount · Ratio · Amount
CET1 risk-based capital	Consolidated	4.50%	7.70%		7.80%		N/A		10.25%			$14,212		9.36%			$13,290
	Bank	4.50	7.00		7.00		6.50%			10.60		14,671		9.98		14,133
Tier 1 risk-based capital	Consolidated	6.00	9.20		9.30		6.00			11.98		16,616		10.90		15,467
	Bank	6.00	8.50		8.50		8.00			11.47		15,879		10.83		15,334
Total risk-based capital	Consolidated	8.00	11.20		11.30		10.00			14.17		19,657		13.09		18,573
	Bank	8.00	10.50		10.50		10.00			13.09		18,126		12.47		17,647
Tier 1 leverage	Consolidated	4.00	N/A	N/A		N/A	9.32			16,616		8.60		15,467
	Bank	4.00	N/A	N/A		5.00		8.51			15,879		8.54		15,334

(1) The SCB, applicable to Huntington, was 3.2% and 3.3% at December 31, 2023 and December 31, 2022, respectively. The CCB, applicable to the Bank, was 2.5% at both December 31, 2023 and December 31, 2022.

Under current Federal Reserve regulations, the Bank is limited as to the amount and type of loans it may make to the parent company and nonbank subsidiaries. At December 31, 2023, the Bank could lend $1.8 billion to a single affiliate, subject to the qualifying collateral requirements defined in the regulations.

Dividends from the Bank are one of the major sources of funds for the Company. These funds aid the Company in the payment of dividends to shareholders, expenses, and other obligations. Payment of dividends and/or return of capital to the parent company is subject to various legal and regulatory limitations. Also, there are statutory and regulatory limitations on the ability of national banks to pay dividends or make other capital distributions.

PARENT-ONLY FINANCIAL STATEMENTS

The parent-only financial statements, which include transactions with subsidiaries, are as follows:

Balance Sheets	At December 31,
(dollar amounts in millions)	2023	2022
Assets
Cash and due from banks	$4,001	$3,525
Due from The Huntington National Bank	2,163	969
Due from non-bank subsidiaries	25	25
Investment in The Huntington National Bank	18,388	17,384
Investment in non-bank subsidiaries	263	242
Accrued interest receivable and other assets	718	664
Total assets	$25,558	$22,809
Liabilities and shareholders’ equity
Long-term borrowings	$4,993	$3,980
Dividends payable, accrued expenses, and other liabilities	1,212	1,098
Total liabilities	6,205	5,078
Shareholders’ equity (1)	19,353	17,731
Total liabilities and shareholders’ equity	$25,558	$22,809

(1)See Consolidated Statements of Changes in Shareholders’ Equity.

2023 Form 10-K 156

Statements of Income	Year Ended December 31,
(dollar amounts in millions)	2023	2022	2021
Income
Dividends from:
The Huntington National Bank	$1,706	$1,566	$1,394
Non-bank subsidiaries	27	19	19
Interest from:
The Huntington National Bank	77	16	3
Non-bank subsidiaries	2	1	1
Other	(1)	(1)	—
Total income	1,811	1,601	1,417
Expense
Personnel costs	5	8	6
Interest on borrowings	252	107	60
Other	191	169	230
Total expense	448	284	296
Income before income taxes and equity in undistributed net income of subsidiaries	1,363	1,317	1,121
Provision (benefit) for income taxes	(75)	(44)	(56)
Income before equity in undistributed net income of subsidiaries	1,438	1,361	1,177
Increase in undistributed net income of:
The Huntington National Bank	486	853	97
Non-bank subsidiaries	27	24	21
Net income	$1,951	$2,238	$1,295
Other comprehensive income (loss)(1)	422	(2,869)	(421)
Comprehensive income (loss)	$2,373	$(631)	$874

(1)See Consolidated Statements of Comprehensive Income for other comprehensive (loss) income detail.

Statements of Cash Flows	Year Ended December 31,
(dollar amounts in millions)	2023	2022	2021
Operating activities
Net income	$1,951	$2,238	$1,295
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(513)	(877)	(118)
Depreciation and amortization	—	(22)	23
Other, net	192	(55)	(217)
Net cash provided by operating activities	1,630	1,284	983
Investing activities
Repayments from subsidiaries	503	14	8
Advances to subsidiaries	(1,753)	(503)	(59)
Net purchases of securities	—	(20)	(28)
Net cash (paid) received from business combination	—	(194)	248
Other, net	(10)	(1)	—
Net cash (used for) provided by investing activities	(1,260)	(704)	169
Financing activities
Proceeds from issuance of long-term debt	1,250	1,144	513
Payment of long-term debt	(323)	—	(1,508)
Dividends paid on common and preferred stock	(1,034)	(1,010)	(888)
Repurchases of common stock	—	—	(650)
Net proceeds from issuance of preferred stock	317	—	486
Repurchase/redemption of preferred stock	(82)	—	(700)
Other, net	(22)	(21)	(39)
Net cash provided by (used for) financing activities	106	113	(2,786)
Increase (decrease) in cash and cash equivalents	476	693	(1,634)
Cash and cash equivalents at beginning of year	3,525	2,832	4,466
Cash and cash equivalents at end of year	$4,001	$3,525	$2,832
Supplemental disclosure: Interest paid	$228	$89	$71

157 Huntington Bancshares Incorporated

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