HUNTINGTON BANCSHARES INC MD
For the period ended Mar 31, 2024. Filed Apr 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 30, 2024
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Loans and Leases
- LOANS AND LEASES
The following table provides a detailed listing of Huntington’s loan and lease portfolio.
| (dollar amounts in millions) | At March 31, 2024 | At December 31, 2023 |
|---|---|---|
| Commercial loan and lease portfolio: | ||
| Commercial and industrial | $51,500 | $50,657 |
| Commercial real estate | 12,342 | 12,422 |
| Lease financing | 5,133 | 5,228 |
| Total commercial loan and lease portfolio | 68,975 | 68,307 |
| Consumer loan portfolio: | ||
| Residential mortgage | 23,744 | 23,720 |
| Automobile | 12,662 | 12,482 |
| Home equity | 10,047 | 10,113 |
| RV and marine | 5,887 | 5,899 |
| Other consumer | 1,452 | 1,461 |
| Total consumer loan portfolio | 53,792 | 53,675 |
| Total loans and leases (1)(2) | 122,767 | 121,982 |
| Allowance for loan and lease losses | (2,280) | (2,255) |
| Net loans and leases | $120,487 | $119,727 |
(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 of $349 million and $323 million at March 31, 2024 and December 31, 2023, respectively.
(2)The total amount of accrued interest recorded for these loans and leases at March 31, 2024, was $340 million and $222 millionof commercial and consumer loan and lease portfolios, respectively, and at December 31, 2023, was $333 million and $220 millionof commercial and consumer loan and lease portfolios, respectively. Accrued interest is presented in accrued income and other receivables within the Unaudited Consolidated Balance Sheets.
Lease Financing
The following table presents net investments in lease financing receivables by category.
| (dollar amounts in millions) | At March 31, 2024 | At December 31, 2023 |
|---|---|---|
| Lease payments receivable | $4,880 | $4,980 |
| Estimated residual value of leased assets | 803 | 804 |
| Gross investment in lease financing receivables | 5,683 | 5,784 |
| Deferred origination costs | 54 | 54 |
| Deferred fees, unearned income and other | (604) | (610) |
| Total lease financing receivables | $5,133 | $5,228 |
The carrying value of residual values guaranteed was $475 million and $478 million as of March 31, 2024 and December 31, 2023, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at March 31, 2024, totaled $4.9 billion and were due as follows: $782 million in 2024, $902 million in 2025, $859 million in 2026, $859 million in 2027, $794 million in 2028, and $684 million thereafter. Interest income recognized for these types of leases was $79 million and $68 million for the three-month periods ended March 31, 2024 and 2023, respectively.
2024 1Q Form 10-Q 45
Nonaccrual and Past Due Loans and Leases
The following table presents NALs by class.
| At March 31, 2024 | At December 31, 2023 | |||
|---|---|---|---|---|
| (dollar amounts in millions) | Nonaccrual loans and leases with no ACL | Total nonaccrual loans and leases | Nonaccrual loans and leases with no ACL | Total nonaccrual loans and leases |
| Commercial and industrial | $68 | $376 | $66 | $344 |
| Commercial real estate | 37 | 154 | 64 | 140 |
| Lease financing | — | 10 | 3 | 14 |
| Residential mortgage | — | 75 | — | 72 |
| Automobile | — | 4 | — | 4 |
| Home equity | — | 96 | — | 91 |
| RV and marine | — | 1 | — | 2 |
| Total nonaccrual loans and leases | $105 | $716 | $133 | $667 |
The following tables present an aging analysis of loans and leases, by class.
| Past Due (1) · Loans Accounted for Under FVO · Total Loansand Leases · 90 ormore dayspast dueand accruing | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollar amounts in millions) · 30-59 Days · 60-89 Days · 90 or more days · Total · Current | |||||||||
| Commercial and industrial | $57 | $36 | $137 | $230 | $51,270 | $— | $51,500 | $1 | (2) |
| Commercial real estate | 18 | 32 | 96 | 146 | 12,196 | — | 12,342 | — | |
| Lease financing | 27 | 14 | 5 | 46 | 5,087 | — | 5,133 | 3 | |
| Residential mortgage | 205 | 68 | 195 | 468 | 23,101 | 175 | 23,744 | 148 | (3) |
| Automobile | 75 | 17 | 10 | 102 | 12,560 | — | 12,662 | 8 | |
| Home equity | 56 | 29 | 83 | 168 | 9,879 | — | 10,047 | 17 | |
| RV and marine | 17 | 4 | 3 | 24 | 5,863 | — | 5,887 | 2 | |
| Other consumer | 11 | 4 | 4 | 19 | 1,433 | — | 1,452 | 4 | |
| Total loans and leases | $466 | $204 | $533 | $1,203 | $121,389 | $175 | $122,767 | $183 | |
| Commercial and industrial | $90 | $48 | $90 | $228 | $50,429 | $— | $50,657 | $1 | (2) |
| Commercial real estate | 28 | 20 | 32 | 80 | 12,342 | — | 12,422 | — | |
| Lease financing | 35 | 15 | 9 | 59 | 5,169 | — | 5,228 | 4 | |
| Residential mortgage | 205 | 88 | 193 | 486 | 23,060 | 174 | 23,720 | 146 | (3) |
| Automobile | 89 | 23 | 12 | 124 | 12,358 | — | 12,482 | 9 | |
| Home equity | 66 | 32 | 83 | 181 | 9,932 | — | 10,113 | 22 | |
| RV and marine | 17 | 5 | 4 | 26 | 5,873 | — | 5,899 | 3 | |
| Other consumer | 13 | 4 | 4 | 21 | 1,440 | — | 1,461 | 4 | |
| Total loans and leases | $543 | $235 | $427 | $1,205 | $120,603 | $174 | $121,982 | $189 | |
(1)NALs are included in this aging analysis based on the loan’s past due status.
(2)Amounts include SBA loans and leases.
(3)Amounts include mortgage loans insured by U.S. government agencies.
Credit Quality Indicators
See Note 5 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2023 Annual Report on Form 10-K for a description of the credit quality indicators Huntington utilizes for monitoring credit quality and for determining an appropriate ACL level.
For all classes within the consumer loan portfolios, borrower credit bureau scores are monitored as an indicator of credit quality. 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.
46 Huntington Bancshares Incorporated
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.
The following tables present the amortized cost basis of loans and leases by vintage and credit quality indicator.
| Term Loans Amortized Cost Basis by Origination Year · Revolver Total at Amortized Cost Basis · Revolver Total Converted to Term Loans | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollar amounts in millions) · 2024 · 2023 · 2022 · 2021 · 2020 · Prior · Total | |||||||||
| Commercial and industrial | |||||||||
| Credit Quality Indicator (1): | |||||||||
| Pass | $4,493 | $12,002 | $8,692 | $3,364 | $1,976 | $2,458 | $15,168 | $5 | $48,158 |
| OLEM | 25 | 211 | 243 | 74 | 30 | 37 | 256 | — | 876 |
| Substandard | 118 | 380 | 428 | 230 | 148 | 209 | 952 | — | 2,465 |
| Doubtful | — | — | — | — | — | 1 | — | — | 1 |
| Total Commercial and industrial | $4,636 | $12,593 | $9,363 | $3,668 | $2,154 | $2,705 | $16,376 | $5 | $51,500 |
| Commercial real estate | |||||||||
| Credit Quality Indicator (1): | |||||||||
| Pass | $356 | $1,264 | $3,235 | $1,674 | $1,011 | $2,286 | $557 | $— | $10,383 |
| OLEM | 11 | 80 | 410 | 133 | 55 | 121 | 60 | — | 870 |
| Substandard | 17 | 213 | 379 | 176 | 24 | 264 | 16 | — | 1,089 |
| Total Commercial real estate | $384 | $1,557 | $4,024 | $1,983 | $1,090 | $2,671 | $633 | $— | $12,342 |
| Lease financing | |||||||||
| Credit Quality Indicator (1): | |||||||||
| Pass | $384 | $1,924 | $1,159 | $724 | $502 | $272 | $— | $— | $4,965 |
| OLEM | — | 15 | 19 | 3 | 1 | 10 | — | — | 48 |
| Substandard | 1 | 26 | 46 | 22 | 13 | 12 | — | — | 120 |
| Total Lease financing | $385 | $1,965 | $1,224 | $749 | $516 | $294 | $— | $— | $5,133 |
| Residential mortgage | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $212 | $2,257 | $4,041 | $5,995 | $3,252 | $2,877 | $— | $— | $18,634 |
| 650-749 | 88 | 781 | 903 | 894 | 471 | 901 | — | — | 4,038 |
| <650 | 7 | 43 | 84 | 97 | 74 | 592 | — | — | 897 |
| Total Residential mortgage | $307 | $3,081 | $5,028 | $6,986 | $3,797 | $4,370 | $— | $— | $23,569 |
| Automobile | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $1,045 | $2,156 | $1,831 | $1,372 | $630 | $339 | $— | $— | $7,373 |
| 650-749 | 412 | 1,493 | 1,092 | 753 | 300 | 160 | — | — | 4,210 |
| <650 | 31 | 274 | 303 | 273 | 114 | 84 | — | — | 1,079 |
| Total Automobile | $1,488 | $3,923 | $3,226 | $2,398 | $1,044 | $583 | $— | $— | $12,662 |
| Home equity | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $43 | $393 | $414 | $496 | $517 | $247 | $4,404 | $226 | $6,740 |
| 650-749 | 20 | 107 | 95 | 62 | 53 | 96 | 2,035 | 225 | 2,693 |
| <650 | — | 4 | 9 | 5 | 4 | 46 | 413 | 133 | 614 |
| Total Home equity | $63 | $504 | $518 | $563 | $574 | $389 | $6,852 | $584 | $10,047 |
| RV and marine | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $226 | $1,059 | $934 | $816 | $557 | $847 | $— | $— | $4,439 |
| 650-749 | 38 | 353 | 232 | 246 | 147 | 284 | — | — | 1,300 |
| <650 | — | 13 | 19 | 30 | 23 | 63 | — | — | 148 |
| Total RV and marine | $264 | $1,425 | $1,185 | $1,092 | $727 | $1,194 | $— | $— | $5,887 |
| Other consumer | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $69 | $141 | $70 | $34 | $16 | $56 | $409 | $1 | $796 |
| 650-749 | 29 | 82 | 37 | 14 | 5 | 14 | 386 | 12 | 579 |
| <650 | 1 | 9 | 6 | 3 | 1 | 2 | 41 | 14 | 77 |
| Total Other consumer | $99 | $232 | $113 | $51 | $22 | $72 | $836 | $27 | $1,452 |
2024 1Q Form 10-Q 47
| Term Loans Amortized Cost Basis by Origination Year · Revolver Total at Amortized Cost Basis · Revolver Total Converted to Term Loans | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollar amounts in millions) · 2023 · 2022 · 2021 · 2020 · 2019 · Prior · Total | |||||||||
| Commercial and industrial | |||||||||
| Credit Quality Indicator (1): | |||||||||
| Pass | $14,677 | $9,889 | $3,673 | $2,151 | $1,187 | $1,431 | $14,563 | $3 | $47,574 |
| OLEM | 213 | 239 | 64 | 20 | 12 | 20 | 462 | — | 1,030 |
| Substandard | 393 | 305 | 188 | 150 | 83 | 184 | 750 | — | 2,053 |
| Total Commercial and industrial | $15,283 | $10,433 | $3,925 | $2,321 | $1,282 | $1,635 | $15,775 | $3 | $50,657 |
| Commercial real estate | |||||||||
| Credit Quality Indicator (1): | |||||||||
| Pass | $1,395 | $3,253 | $1,774 | $1,063 | $1,152 | $1,288 | $585 | $— | $10,510 |
| OLEM | 163 | 406 | 112 | 65 | 32 | 54 | 60 | — | 892 |
| Substandard | 164 | 404 | 176 | 10 | 137 | 114 | 15 | — | 1,020 |
| Total Commercial real estate | $1,722 | $4,063 | $2,062 | $1,138 | $1,321 | $1,456 | $660 | $— | $12,422 |
| Lease financing | |||||||||
| Credit Quality Indicator (1): | |||||||||
| Pass | $1,973 | $1,284 | $828 | $583 | $243 | $106 | $— | $— | $5,017 |
| OLEM | 16 | 22 | 6 | 5 | 2 | 9 | — | — | 60 |
| Substandard | 20 | 66 | 31 | 16 | 13 | 5 | — | — | 151 |
| Total Lease financing | $2,009 | $1,372 | $865 | $604 | $258 | $120 | $— | $— | $5,228 |
| Residential mortgage | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $2,077 | $3,963 | $6,028 | $3,292 | $749 | $2,191 | $— | $— | $18,300 |
| 650-749 | 950 | 1,024 | 964 | 510 | 186 | 775 | — | — | 4,409 |
| <650 | 24 | 79 | 82 | 64 | 85 | 503 | — | — | 837 |
| Total Residential mortgage | $3,051 | $5,066 | $7,074 | $3,866 | $1,020 | $3,469 | $— | $— | $23,546 |
| Automobile | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $2,624 | $1,964 | $1,525 | $740 | $367 | $85 | $— | $— | $7,305 |
| 650-749 | 1,438 | 1,305 | 907 | 370 | 168 | 53 | — | — | 4,241 |
| <650 | 170 | 281 | 266 | 118 | 64 | 37 | — | — | 936 |
| Total Automobile | $4,232 | $3,550 | $2,698 | $1,228 | $599 | $175 | $— | $— | $12,482 |
| Home equity | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $381 | $429 | $512 | $534 | $17 | $244 | $4,454 | $233 | $6,804 |
| 650-749 | 136 | 100 | 65 | 57 | 7 | 101 | 2,083 | 230 | 2,779 |
| <650 | 2 | 6 | 3 | 3 | 2 | 43 | 344 | 127 | 530 |
| Total Home equity | $519 | $535 | $580 | $594 | $26 | $388 | $6,881 | $590 | $10,113 |
| RV and marine | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $1,206 | $971 | $867 | $588 | $295 | $612 | $— | $— | $4,539 |
| 650-749 | 289 | 248 | 252 | 158 | 91 | 210 | — | — | 1,248 |
| <650 | 4 | 12 | 21 | 18 | 14 | 43 | — | — | 112 |
| Total RV and marine | $1,499 | $1,231 | $1,140 | $764 | $400 | $865 | $— | $— | $5,899 |
| Other consumer | |||||||||
| Credit Quality Indicator (2): | |||||||||
| 750+ | $186 | $80 | $39 | $19 | $17 | $48 | $424 | $3 | $816 |
| 650-749 | 98 | 43 | 17 | 6 | 5 | 12 | 383 | 13 | 577 |
| <650 | 4 | 5 | 3 | 1 | 1 | 1 | 39 | 14 | 68 |
| Total Other consumer | $288 | $128 | $59 | $26 | $23 | $61 | $846 | $30 | $1,461 |
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
48 Huntington Bancshares Incorporated
The following tables present the gross charge-offs of loans and leases by vintage.
| Term Loans Gross Charge-offs by Origination Year · Revolver Gross Charge-offs · Revolver Converted to Term Loans Gross Charge-offs | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollar amounts in millions) · 2024 · 2023 · 2022 · 2021 · 2020 · Prior · Total | ||||||||||||||
| Commercial and industrial | $— | $5 | $11 | $15 | $11 | $2 | $10 | $1 | $55 | |||||
| Commercial real estate | — | 1 | 9 | 1 | — | 6 | — | — | 17 | |||||
| Lease Financing | — | — | — | 1 | — | 1 | — | — | 2 | |||||
| Residential mortgage | — | — | — | — | — | 1 | — | — | 1 | |||||
| Automobile | — | 4 | 5 | 4 | 2 | — | — | — | 15 | |||||
| Home equity | — | — | — | — | — | — | — | 2 | 2 | |||||
| RV and marine | — | 1 | 1 | 2 | 1 | 3 | — | — | 8 | |||||
| Other consumer | 1 | 7 | 5 | 2 | 1 | 3 | — | 9 | 28 | |||||
| Total | $1 | $18 | $31 | $25 | $15 | $16 | $10 | $12 | $128 | |||||
| Term Loans Gross Charge-offs by Origination Year · Revolver Gross Charge-offs · Revolver Converted to Term Loans Gross Charge-offs | ||||||||||||||
| Three months ended March 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||
| Commercial and industrial | $1 | $14 | $3 | $6 | $4 | $— | $4 | $— | $32 | |||||
| Commercial real estate | — | — | 19 | — | — | — | — | — | 19 | |||||
| Lease Financing | — | — | — | — | — | 1 | — | — | 1 | |||||
| Residential mortgage | — | — | 1 | — | — | 1 | — | — | 2 | |||||
| Automobile | — | 3 | 4 | 2 | 1 | 2 | — | — | 12 | |||||
| Home equity | — | — | — | — | — | — | 1 | 1 | 2 | |||||
| RV and marine | — | — | 1 | 1 | 1 | 1 | — | — | 4 | |||||
| Other consumer | 1 | 8 | 5 | 1 | 1 | 4 | — | 7 | 27 | |||||
| Total | $2 | $25 | $33 | $10 | $7 | $9 | $5 | $8 | $99 | |||||
Modifications to Debtors Experiencing Financial Difficulty
See Note 5 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2023 Annual Report on Form 10-K for a description of reported modification types and the impact on credit quality of borrowers experiencing financial difficulty.
2024 1Q Form 10-Q 49
The following table summarizes the amortized cost basis of loans modified during the reporting period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification.
| Amortized Cost | ||||||
|---|---|---|---|---|---|---|
| (dollar amounts in millions) | Interest rate reduction | Term extension | Payment deferral | Combo - interest rate reduction and term extension | Total | % of total loan class (1) |
| Commercial and industrial | $87 | $154 | $— | $7 | $248 | 0.48% |
| Commercial real estate | — | 31 | — | — | 31 | 0.25 |
| Residential mortgage | — | 10 | 3 | 1 | 14 | 0.06 |
| Automobile | — | 4 | — | — | 4 | 0.03 |
| Home equity | — | 1 | — | 4 | 5 | 0.05 |
| Total loans to borrowers experiencing financial difficulty in which modifications were made | $87 | $200 | $3 | $12 | $302 | 0.25% |
| Commercial and industrial | $35 | $124 | $— | $3 | $162 | 0.32% |
| Commercial real estate | — | 48 | — | — | 48 | 0.36 |
| Residential mortgage | — | 23 | — | 1 | 24 | 0.11 |
| Automobile | — | 3 | — | — | 3 | 0.02 |
| Home equity | — | — | — | 3 | 3 | 0.03 |
| RV and marine | — | 1 | — | — | 1 | 0.02 |
| Total loans to borrowers experiencing financial difficulty in which modifications were made | $35 | $199 | $— | $7 | $241 | 0.21% |
(1)Represents the amortized cost of loans modified during the reporting period as a percentage of the period-end loan balance by class.
The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty.
| Interest Rate Reduction (1) · Term Extension (1) | |||
|---|---|---|---|
| Weighted-average contractual interest rate · Weighted-average years added to the life | |||
| From · To | |||
| Commercial and industrial | 8.24% | 7.28% | 0.4 |
| Commercial real estate | 0.6 | ||
| Residential mortgage | 7.25 | 5.20 | 8.6 |
| Commercial and industrial | 7.60% | 6.80% | 0.9 |
| Commercial real estate | 0.6 | ||
| Residential mortgage | 5.36 | 4.14 | 6.3 |
(1) Certain disclosures related to financial effects of modifications do not include those deemed to be immaterial.
50 Huntington Bancshares Incorporated
The performance of loans made to borrowers experiencing financial difficulty in which modifications were made is closely monitored to understand the effectiveness of modification efforts. Loans are considered to be in payment default at 90 or more days past due. The following table depicts the performance of loans that have been modified during the identified period.
| At March 31, 2024 | ||||||
|---|---|---|---|---|---|---|
| Past Due | ||||||
| (dollar amounts in millions) | 30-59 Days | 60-89 Days | 90 or more days | Total | Current | Total |
| Commercial and industrial | $2 | $11 | $11 | $24 | $449 | $473 |
| Commercial real estate | 2 | 7 | — | 9 | 118 | 127 |
| Residential mortgage | 8 | 5 | 9 | 22 | 31 | 53 |
| Automobile | 2 | — | — | 2 | 14 | 16 |
| Home equity | 1 | 1 | 1 | 3 | 11 | 14 |
| RV and marine | — | — | — | — | 1 | 1 |
| Total loans to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended March 31, 2024 | $15 | $24 | $21 | $60 | $624 | $684 |
| At March 31, 2023 (1) | ||||||
|---|---|---|---|---|---|---|
| Past Due | ||||||
| (dollar amounts in millions) | 30-59 Days | 60-89 Days | 90 or more days | Total | Current | Total |
| Commercial and industrial | $— | $— | $— | $— | $162 | $162 |
| Commercial real estate | — | — | — | — | 48 | 48 |
| Residential mortgage | 4 | 4 | — | 8 | 16 | 24 |
| Automobile | — | — | — | — | 3 | 3 |
| Home equity | — | — | — | — | 3 | 3 |
| RV and marine | — | — | — | — | 1 | 1 |
| Total loans to borrowers experiencing financial difficulty in which modifications were made in the three months ended March 31, 2023 | $4 | $4 | $— | $8 | $233 | $241 |
(1) Huntington adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023, therefore, the at March 31, 2023 presentation only includes loans since guidance became effective.
Pledged Loans
The Bank has access to secured borrowings from the Federal Reserve’s discount window and advances from the FHLB. As of March 31, 2024 and December 31, 2023, loans and leases totaling $99.5 billion and $101.8 billion, respectively, were pledged to the Federal Reserve and FHLB for access to these contingent funding sources.
2024 1Q Form 10-Q 51
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.