ハンチントンバンクシェアーズの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________________________________________________________________________________________________

FORM 8-K

_______________________________________________________________________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 19, 2024

______________________________________________________________________________________________________________________________

Huntington Bancshares Incorporated

(Exact name of registrant as specified in its charter)

_______________________________________________________________________________________________________________________________


Maryland	1-34073	31-0724920
(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

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

_______________________________________________________________________________________________________________________________

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 4.500% Series H Non-Cumulative, perpetual preferred stock)	HBANP	NASDAQ
Depositary Shares (each representing a 1/1000th interest in a share of 5.70% Series I Non-Cumulative, perpetual preferred stock)	HBANM	NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 6.875% Series J Non-Cumulative, perpetual preferred stock)	HBANL	NASDAQ
Common Stock—Par Value $0.01 per Share	HBAN	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§24012b-2).

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. o

Item 2.02. Results of Operations and Financial Condition.

On January 19, 2024, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended December 31, 2023. Also on January 19, 2024, Huntington made a Quarterly Financial Supplement available in the Investor Relations section of Huntington’s website. Copies of Huntington's news release and quarterly financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference in this Item 2.02.

Huntington’s senior management will host an earnings conference call on January 19, 2024, at 9:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast at the Investor Relations section of Huntington’s website, www.huntington.com, or through a dial-in telephone number at (877) 407-8029; Conference ID #13743211. Slides will be available in the Investor Relations section of Huntington’s website about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s website. A telephone replay will be available approximately two hours after the completion of the call through January 27, 2024 at (877) 660-6853 or (201) 612-7415; conference ID #13743211.

The information contained or incorporated by reference in this Press Release on Form 8-K 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; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the impact of pandemics, including the COVID-19 pandemic and related variants and mutations, and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from recent bank failures and other volatility, including potential increased regulatory requirements and costs, such as FDIC special assessments, long-term debt requirements and heightened capital requirements, and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of uninsured deposits which may require us to sell investment securities at a loss; rising interest rates which could negatively impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could negatively impact market perceptions of us and could lead to deposit withdrawals; the effects of social media on market perceptions of us and banks generally; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital and credit markets; movements in interest rates; 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; and other factors that may affect the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2022 and in subsequent Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, each of which are on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. Huntington does 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.

The information contained or incorporated by reference in Item 2.02 of this Form 8-K shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 9.01. Financial Statements and Exhibits.

The exhibits referenced below shall be treated as “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

(d)Exhibits.

Exhibit 99.1 – News release of Huntington Bancshares Incorporated, dated January 19, 2024.

Exhibit 99.2 – Quarterly Financial Supplement, December 31, 2023.

EXHIBIT INDEX


Exhibit No.			Description

Exhibit 99.1			News release of Huntington Bancshares Incorporated, dated January 19, 2024
Exhibit 99.2			Quarterly Financial Supplement, December 31, 2023






Exhibit 104			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HUNTINGTON BANCSHARES INCORPORATED

Date:

January 19, 2024

By:

/s/ Zachary Wasserman

Zachary Wasserman

Chief Financial Officer

EX-99.1 2 hban20231231_8kex991.htm EX-99.1 Document

Exhibit 99.1

January 19, 2024

Analysts: Tim Sedabres (timothy.sedabres@huntington.com), 952.745.2766

Media: Tracy Pesho (corpmedia@huntington.com), 216.276.3301

HUNTINGTON BANCSHARES INCORPORATED REPORTS 2023 FOURTH-QUARTER EARNINGS

Q4 Results Highlighted by Sustained Deposit and Loan Growth, Capital Expansion, and Strong Credit Quality

2023 Fourth-Quarter Highlights:

•Earnings per common share (EPS) for the quarter were $0.15, lower by $0.20 from the prior quarter, and were lower by $0.27 from the year-ago quarter. Excluding the after tax impact of Notable Items, primarily related to the FDIC Deposit Insurance Fund special assessment, adjusted earnings per common share were $0.27. Additionally, the mark-to-market of the pay-fixed swaptions hedging program during the quarter reduced pre-tax income by $74 million, or $0.04 on an EPS basis.

•Net interest income decreased $52 million, or 4%, from the prior quarter, and decreased $146 million, or 10%, from the year-ago quarter.

•Noninterest income decreased $104 million, or 20%, from the prior quarter, to $405 million. Noninterest income in the fourth quarter was reduced by $74 million, compared to an increase of $33 million in the third quarter due to the mark-to-market on pay-fixed swaptions. Excluding the impact of mark-to-market on pay-fixed swaptions, noninterest income increased $3 million compared to the prior quarter.

•Cash and cash equivalents and available contingent borrowing capacity totaled $93 billion at December 31, 2023, and represented 206% of uninsured deposits.

•Average total deposits increased $1.5 billion, or 1%, from the prior quarter and $4.0 billion, or 3%, from the year-ago quarter.

◦Ending total deposits increased $2.4 billion, or 2%, from the prior quarter and $3.3 billion, or 2%, from the year-ago quarter.

◦Ending core deposits increased $1.2 billion, or 1%, from the prior quarter reflecting continued momentum in consumer deposit gathering and ongoing focus on acquiring and deepening primary bank relationships.

•Average total loans and leases increased $445 million from the prior quarter to $121.2 billion, and increased $2.3 billion, or 2%, from the year-ago quarter.

◦Average total consumer loans increased $320 million and average total commercial loans and leases increased $125 million from the prior quarter.

•Net charge-offs of 0.31% of average total loans and leases for the quarter.

•Nonperforming asset ratio of 0.58%.

•Allowance for credit losses (ACL) of $2.4 billion, or 1.97%, of total loans and leases at quarter end.

•Common Equity Tier 1 (CET1) risk-based capital ratio increased 15 basis points to 10.25%, continuing the trend of capital expansion. Adjusted Common Equity Tier 1, including the effect of AOCI, was 8.58%, an increase of 58 basis points from the prior quarter.

•Tangible common equity (TCE) ratio increased 44 basis points from the prior quarter to 6.14% and increased 59 basis points from a year ago.

•As previously announced, Huntington completed a synthetic Credit Risk Transfer ("CRT") transaction during the fourth quarter related to an approximately $3 billion portfolio of on-balance sheet prime indirect auto loans as part of the company's capital optimization strategy. The transaction reduced risk-weighted assets by approximately $2.4 billion, with the risk-weight moving from 100% to 20% on the selected pool of assets.

COLUMBUS, Ohio – Huntington Bancshares Incorporated (Nasdaq: HBAN) reported net income for the 2023 fourth quarter of $243 million, or $0.15 per common share, a decrease of $402 million, or $0.27, from the year-ago quarter. Adjusted earnings per common share were $0.27, excluding $0.12 per common share of after-tax Notable Items, in the 2023 fourth quarter compared to $0.43, excluding $0.01 of after-tax Notable Items, in the year-ago quarter.

Return on average assets was 0.51%, return on average common equity was 5.2%, and return on average tangible common equity (ROTCE) was 8.4%.

CEO Commentary:

"We are pleased to deliver fourth quarter results highlighted by the continuation of our organic growth efforts with sustained deposit and loan growth as well as the further expansion of common equity tier 1 capital,” said Steve Steinour, chairman, president, and CEO. “We are entering the new year from a position of strength with robust liquidity and capital, which allows us to remain focused on executing our growth strategy and serving our customers. We are maintaining our disciplined approach to managing credit quality, consistent with our aggregate moderate-to-low risk appetite, and believe Huntington is well-positioned as we operate through this dynamic environment.

"2023 was marked by the successful execution of key strategic initiatives, as Huntington outperformed during a dynamic environment for the banking sector. The company delivered sustained deposit growth over the course of the year, bolstered capabilities across our payments and other fee revenue areas, and completed the re-alignment of business segments to enhance our focus on the customer and drive efficiencies. Additionally, we bolstered our specialty banking expertise through the addition of new teams and expanded our commercial and regional bank into the Carolinas.

"While the macro outlook continues to play out, we believe the operating environment today is generally more constructive compared to last quarter. Customers are generally well positioned and are continuing to invest in their businesses.

"As a result, we are seeing attractive growth opportunities as we move into 2024, and are positioned to accelerate our loan growth forecast given these dynamics. We are leveraging our leading brand and trust metrics, to build on our growth momentum. We intend to capitalize on our position of strength and to further acquire and deepen customer relationships. These efforts will result in continued growth of revenue and profitability over the course of the year and beyond." Table 2 lists certain items that we believe are important to understanding corporate performance and trends (see Basis of Presentation).

Table 1 – Earnings Performance Summary


	2023												2022
(in millions, except per share data)	Fourth			Third			Second			First			Fourth
	Quarter			Quarter			Quarter			Quarter			Quarter
Net income attributable to Huntington	$	243		$	547		$	559		$	602		$	645
Diluted earnings per common share	0.15			0.35			0.35			0.39			0.42

Return on average assets	0.51		%	1.16		%	1.18		%	1.32		%	1.41		%
Return on average common equity	5.2			12.4			12.7			14.6			16.0
Return on average tangible common equity	8.4			19.5			19.9			23.1			26.0
Net interest margin	3.07			3.20			3.11			3.40			3.52
Efficiency ratio	77.0			57.0			55.9			55.6			54.0

Tangible book value per common share	$	7.79		$	7.12		$	7.33		$	7.32		$	6.82
Cash dividends declared per common share	0.155			0.155			0.155			0.155			0.155

Average earning assets	$	171,360		$	170,948		$	174,909		$	169,112		$	165,545
Average loans and leases	121,229			120,784			121,345			120,420			118,907
Average core deposits	144,384			143,110			140,736			141,077			140,696

Tangible common equity / tangible assets ratio	6.14		%	5.70		%	5.80		%	5.77		%	5.55		%
Common equity Tier 1 risk-based capital ratio	10.25			10.10			9.82			9.55			9.36

NCOs as a % of average loans and leases	0.31		%	0.24		%	0.16		%	0.19		%	0.17		%
NAL ratio	0.55			0.49			0.42			0.44			0.48
ACL as a % of total loans and leases	1.97			1.96			1.93			1.90			1.90

There were no Notable Items in the three months ended June 30, 2023.

Table 2 – Notable Items Influencing Earnings


		Pretax Impact (1)		After-tax Impact (1)
($ in millions, except per share)		Amount			Net Income		EPS (2)

Three Months Ended December 31, 2023					$	243	$	0.15
•	FDIC Deposit Insurance Fund (DIF) special assessment	$	(214)		$	(169)	$	(0.11)
•	Staffing efficiencies and corporate real estate consolidation expense (3)	(12)			(9)		(0.01)

Three Months Ended September 30, 2023					$	547	$	0.35
•	Staffing efficiencies and corporate real estate consolidation expense (3)	$	(15)		$	(12)	$	(0.01)

Three Months Ended March 31, 2023					$	602	$	0.39
•	RPS sale (noninterest income)	$	57		$	44	$	0.03
•	Voluntary retirement program and organizational realignment expense (noninterest expense) (4)	(42)			(34)		(0.02)








Three Months Ended December 31, 2022					$	645	$	0.42
•	Acquisition-related expenses (5)	$	(15)		$	(12)	$	(0.01)

(1)Favorable (unfavorable) impact.

(2)EPS reflected on a fully diluted basis.

(3)Staffing efficiencies and corporate real estate consolidation expense includes corporate real estate consolidation expense recorded in net occupancy expense, equipment, and other of $8 million, $1 million, and $1 million, respectively, and $2 million of severance expense recorded in personnel costs in the three months ended December 31, 2023, and $8 million of severance related expense recorded in personnel costs and $7 million of corporate real estate consolidation expense recorded in net occupancy expense in the three months ended September 30, 2023.

(4)Voluntary retirement program ($36 million) and organizational realignment expense ($6 million).

(5)Includes TCF and Capstone acquisition-related expenses.

Net Interest Income, Net Interest Margin, and Average Balance Sheet

Table 3 – Net Interest Income and Net Interest Margin Performance Summary


	2023								2022
($ in millions)	Fourth		Third		Second		First		Fourth		Change (%)
	Quarter		Quarter		Quarter		Quarter		Quarter		LQ		YOY
Net interest income	$	1,316	$	1,368	$	1,346	$	1,409	$	1,462	(4)	%	(10)	%
FTE adjustment	11		11		11		9		9		—		22
Net interest income - FTE	1,327		1,379		1,357		1,418		1,471		(4)		(10)
Noninterest income	405		509		495		512		499		(20)		(19)
Total revenue - FTE	$	1,732	$	1,888	$	1,852	$	1,930	$	1,970	(8)	%	(12)	%


	2023								2022
	Fourth		Third		Second		First		Fourth		Change (bp)
Yield / Cost	Quarter		Quarter		Quarter		Quarter		Quarter		LQ	YOY
Total earning assets	5.47	%	5.39	%	5.13	%	4.89	%	4.46	%	8	101
Total loans and leases	5.82		5.76		5.51		5.27		4.86		6	96
Total securities	4.23		4.15		3.82		3.56		3.26		8	97
Total interest-bearing liabilities	3.09		2.88		2.66		2.02		1.31		21	178
Total interest-bearing deposits	2.71		2.45		2.06		1.52		0.88		26	183

Net interest rate spread	2.38		2.51		2.47		2.87		3.15		(13)	(77)
Impact of noninterest-bearing funds on margin	0.69		0.69		0.64		0.53		0.37		—	32
Net interest margin	3.07	%	3.20	%	3.11	%	3.40	%	3.52	%	(13)	(45)

See Page 9 of Quarterly Financial Supplement for additional detail.

Fully-taxable equivalent (FTE) net interest income for the 2023 fourth quarter decreased $144 million, or 10%, from the 2022 fourth quarter. The results primarily reflect a 45 basis point decrease in the net interest margin (NIM) to 3.07% and a $13.6 billion, or 11%, increase in average interest-bearing liabilities, partially offset by a $5.8 billion, or 4%, increase in average earning assets. The lower NIM was primarily driven by higher cost of funds given the higher interest rate environment and an increase in deposits held at the Federal Reserve Bank, partially offset by higher loan and lease and investment security yields. The growth in average earning assets was primarily driven by higher interest-earning deposits with banks and an increase in average loans and leases, partially offset by a decrease in average total securities. Net interest income in the 2023 fourth quarter included $7 million of net interest income from purchase accounting accretion, compared to $11 million in the 2022 fourth quarter.

Compared to the 2023 third quarter, FTE net interest income decreased $52 million, or 4%, reflecting a 13 basis point decrease in NIM and an increase in average interest-bearing liabilities, partially offset by higher average earning assets. The NIM decrease was driven by higher cost of funds, partially offset by higher loan and lease and investment security yields. Net interest income in the 2023 third quarter included $6 million of net interest income from purchase accounting accretion.

Table 4 – Average Earning Assets


	2023								2022
($ in billions)	Fourth		Third		Second		First		Fourth		Change (%)
	Quarter		Quarter		Quarter		Quarter		Quarter		LQ		YOY
Commercial and industrial	$	49.9	$	49.4	$	50.2	$	49.0	$	47.5	1	%	5	%
Commercial real estate	12.6		13.0		13.3		13.7		13.9		(3)		(9)
Lease financing	5.1		5.1		5.2		5.2		5.1		1		0
Total commercial	67.6		67.5		68.7		67.9		66.4		—		2

Residential mortgage	23.6		23.3		22.8		22.3		22.0		1		7
Automobile	12.6		12.7		12.9		13.2		13.3		(1)		(5)
Home equity	10.1		10.1		10.2		10.3		10.4		—		(3)
RV and marine	5.9		5.8		5.5		5.4		5.4		2		10
Other consumer	1.4		1.4		1.3		1.3		1.3		3		6
Total consumer	53.7		53.3		52.7		52.5		52.5		1		2
Total loans and leases	121.2		120.8		121.3		120.4		118.9		—		2
Total securities	39.5		40.0		41.7		41.9		41.1		(1)		(4)
Interest earning deposits with banks	10.0		9.5		11.3		6.4		4.9		5		104
Other earning assets	0.6		0.6		0.6		0.5		0.6		(10)		(10)
Total earning assets	$	171.4	$	170.9	$	174.9	$	169.1	$	165.5	—	%	4	%

See Page 7 of Quarterly Financial Supplement for additional detail.

Average earning assets for the 2023 fourth quarter increased $5.8 billion, or 4%, from the year-ago quarter, primarily reflecting a $5.1 billion, or 104%, increase in average deposits with banks and a $2.3 billion, or 2%, increase in average total loans and leases, partially offset by a $1.5 billion, or 4%, decrease in average securities. Average loan and lease balance increases were led by growth in average consumer loans of $1.2 billion, or 2%. Additionally, average commercial loans and leases increased by $1.1 billion, or 2%, primarily driven by a $2.4 billion, or 5% increase in average commercial and industrial loans, partially offset by a $1.3 billion, or 9%, decrease in average commercial real estate loans.

Compared to the 2023 third quarter, average earning assets increased $412 million primarily reflecting a $472 million, or 5%, increase in average deposits with banks and a $445 million increase in average total loans and leases, partially offset by a $443 million, or 1%, decrease in average securities. Average loan and lease balance increases were driven by both higher total consumer loans as well as higher total commercial loans. Consumer loan growth, which increased $320 million, or 1%, was primarily driven by growth in residential mortgage loans. Commercial loan growth was primarily driven by higher C&I loan balances, as a result of higher auto floorplan and distribution finance balances, partially offset by lower commercial real estate loan balances which declined by $361 million from the prior quarter.

Table 5 – Liabilities


	2023								2022
	Fourth		Third		Second		First		Fourth		Change (%)
($ in billions)	Quarter		Quarter		Quarter		Quarter		Quarter		LQ		YOY
Average balances:
Demand deposits - noninterest-bearing	$	31.2	$	32.8	$	34.6	$	37.5	$	39.9	(5)	%	(22)	%
Demand deposits - interest-bearing	39.1		39.8		39.7		40.7		42.7		(2)		(8)
Total demand deposits	70.3		72.6		74.3		78.2		82.6		(3)		(15)
Money market deposits	44.0		41.4		38.8		37.3		34.4		6		28
Savings and other domestic deposits	16.9		17.8		18.8		19.9		20.8		(5)		(19)
Core certificates of deposit	13.1		11.3		8.8		5.7		2.9		16		348
Total core deposits	144.4		143.1		140.7		141.1		140.7		1		3
Other domestic deposits of $250,000 or more	0.4		0.4		0.3		0.2		0.2		7		120
Negotiable CDs, brokered and other deposits	4.8		4.6		4.6		4.8		4.8		4		1

Total deposits	$	149.6	$	148.1	$	145.6	$	146.1	$	145.7	1	%	3	%

Short-term borrowings	$	1.9	$	0.9	$	5.2	$	4.4	$	0.5	122	%	250	%
Long-term debt	12.2		13.8		16.3		11.0		12.7		(11)		(4)
Total debt	$	14.1	$	14.7	$	21.5	$	15.4	$	13.2	(4)	%	7	%

Total interest-bearing liabilities	$	132.6	$	130.0	$	132.5	$	124.1	$	119.0	2	%	11	%
Total liabilities	169.2		167.8		171.8		166.6		163.8		1		3

Period end balances:






Total core deposits	$	145.5	$	144.2	$	142.9	$	140.4	$	142.1	1	%	2	%



Other deposits	5.8		4.7		5.1		4.9		5.8		24		0
Total deposits	$	151.2	$	148.9	$	148.0	$	145.3	$	147.9	2	%	2	%

See Pages 6-7 of Quarterly Financial Supplement for additional detail.

Average total liabilities for the 2023 fourth quarter increased $5.4 billion, or 3%, from the year-ago quarter. Average total deposits increased $4.0 billion, or 3%, primarily driven by an increase in average total core deposits of $3.7 billion, or 3%. Average total debt increased $916 million, or 7%, as part of normal management of funding needs.

Compared to the 2023 third quarter, average total liabilities increased $1.4 billion, or 1%. Average total deposits increased $1.5 billion, or 1.0%, including average total core deposits increasing $1.3 billion, or 1%. Average total debt decreased $520 million, or 4%, driven by lower long-term FHLB borrowings reflecting management of funding needs.

Ending total deposits as of December 31, 2023 increased $3.3 billion, or 2%, compared to a year-ago. The increase was driven by a $6.9 billion, or 9%, increase in core consumer deposits, partially offset by a $3.6 billion, or 6%, decrease in core commercial deposits.

Compared to September 30, 2023, ending total deposits increased $2.4 billion, or 2%. The increase was driven by a $1.3 billion, or 1%, increase in core deposits and a $1.1 billion, or 24%, increase in other deposits.

Noninterest Income

During the 2023 fourth quarter, the Company updated the presentation of noninterest income categories to be based on product and service type. A description of each updated noninterest income category is included within the Notes to the Quarterly Financial Supplement. All prior period results have been adjusted to conform to the current presentation.

Table 6 – Noninterest Income


	2023								2022
	Fourth		Third		Second		First		Fourth		Change (%)
($ in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		LQ		YOY
Payments and cash management revenue	$	150	$	152	$	146	$	137	$	142	(1)	%	6	%
Wealth and asset management revenue	86		79		83		80		76		9		13
Customer deposit and loan fees	80		80		76		76		84		—		(5)
Capital markets and advisory fees	69		52		62		65		88		33		(22)
Leasing revenue	29		32		25		26		35		(9)		(17)
Mortgage banking income	23		27		33		26		25		(15)		(8)
Insurance income	19		18		18		19		18		6		6
Bank owned life insurance income	16		18		16		16		15		(11)		7
Gain on sale of loans	1		2		8		3		2		(50)		(50)
Net gains (losses) on sales of securities	(3)		—		(5)		1		—		NM		NM
Other noninterest income	(65)		49		33		63		14		NM		NM
Total noninterest income	$	405	$	509	$	495	$	512	$	499	(20)	%	(19)	%

Impact of Notable Item:
RPS sale (other noninterest income)	$	—	$	—	$	—	$	57	$	—	—		—
Total adjusted noninterest income (Non-GAAP)	$	405	$	509	$	495	$	455	$	499	(20)	%	(19)	%

Additional information:
Impact of mark-to-market on pay-fixed swaptions (other noninterest income)	$	(74)	$	33	$	18	$	(1)	$	—	NM		NM

NM - Not Meaningful

See Page 11 of Quarterly Financial Supplement for additional detail.

Reported total noninterest income for the 2023 fourth quarter decreased $94 million, or 19%, from the year-ago quarter primarily reflecting $74 million of unfavorable mark-to-market on termination of the pay-fixed swaptions program during the fourth quarter, included within other noninterest income. Cumulatively for the full-year, the net unfavorable mark-to-market on the pay-fixed swaptions program totaled $24 million. Capital markets and advisory fees decreased $19 million, or 22%, primarily due to lower advisory and syndication fees. Partially offsetting these decreases, wealth and asset management revenue increased by $10 million, or 13%, reflecting higher fixed annuity commissions, and payments and cash management revenue increased by $8 million, or 6%, reflecting higher debit card transaction revenue and higher commercial treasury management revenue.

Total noninterest income decreased $104 million, or 20%, to $405 million for the 2023 fourth quarter, compared to $509 million for the 2023 third quarter. The decrease was primarily driven by the $74 million unfavorable mark-to-market on the termination of the pay-fixed swaptions program during the fourth quarter, compared to a $33 million favorable mark-to-market in the third quarter. Additionally, capital markets and advisory fees increased $17 million, or 33%, due to higher advisory, trading, and underwriting fees.

Noninterest Expense

Table 7 – Noninterest Expense


	2023								2022
	Fourth		Third		Second		First		Fourth		Change (%)
($ in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		LQ		YOY
Personnel costs	$	645	$	622	$	613	$	649	$	630	4	%	2	%
Outside data processing and other services	157		149		148		151		147		5		7
Deposit and other insurance expense	234		25		23		20		14		836		1,571
Equipment	70		65		64		64		67		8		4
Net occupancy	65		67		54		60		61		(3)		7
Marketing	29		29		32		25		22		0		32
Professional services	35		27		21		16		21		30		67
Amortization of intangibles	12		12		13		13		13		—		(8)
Lease financing equipment depreciation	5		6		8		8		9		(17)		(44)
Other noninterest expense	96		88		74		80		93		9		3
Total noninterest expense	$	1,348	$	1,090	$	1,050	$	1,086	$	1,077	24	%	25	%
(in thousands)
Average full-time equivalent employees	19.6		19.8		20.2		20.2		20.0		(1)	%	(2)	%

Table 8 - Impact of Notable Items


	2023								2022
	Fourth		Third		Second		First		Fourth
($ in millions)	Quarter		Quarter		Quarter		Quarter		Quarter
Personnel costs	$	2	$	8	$	—	$	42	$	—
Outside data processing and other services	—		—		—		—		2
Deposit and other insurance expense	214		—		—		—		—
Equipment	1		—		—		—		2
Net occupancy	8		7		—		—		10

Professional services	—		—		—		—		1


Other noninterest expense	1		—		—		—		—
Total noninterest expense	$	226	$	15	$	—	$	42	$	15

Table 9 - Adjusted Noninterest Expense (Non-GAAP)


	2023								2022
	Fourth		Third		Second		First		Fourth		Change (%)
($ in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		LQ		YOY
Personnel costs	$	643	$	614	$	613	$	607	$	630	5	%	2	%
Outside data processing and other services	157		149		148		151		145		5		8
Deposit and other insurance expense	20		25		23		20		14		(20)		43
Equipment	69		65		64		64		65		6		6
Net occupancy	57		60		54		60		51		(5)		12
Marketing	29		29		32		25		22		—		32
Professional services	35		27		21		16		20		30		75
Amortization of intangibles	12		12		13		13		13		—		(8)
Lease financing equipment depreciation	5		6		8		8		9		(17)		(44)
Other noninterest expense	95		88		74		80		93		8		2
Total adjusted noninterest expense	$	1,122	$	1,075	$	1,050	$	1,044	$	1,062	4	%	6	%

Reported total noninterest expense for the 2023 fourth quarter increased $271 million, or 25%, from the year-ago quarter. Excluding the impact from Notable Items, noninterest expense increased $60 million, or 6%, primarily driven by increases in professional services expenses of $15 million, or 75%, reflecting higher consulting expense as well as $4 million of expenses related to the CRT transaction, personnel costs of $13 million, or 2%, primarily due to higher salary expense, and outside data processing of $12 million, or 8%. Additionally, the 2023 fourth quarter included $5 million of expenses related to the previously announced branch consolidations, reflected in a combination of net occupancy, equipment, and other noninterest expense.

Reported total noninterest expense increased $258 million, or 24%, from the 2023 third quarter. Excluding the impact from Notable Items, noninterest expense increased $47 million, or 4%, primarily driven by increases in personnel costs of $29 million, or 5%, due to higher benefit costs and incentive compensation, outside data processing of $8 million, or 5%, and higher professional services of $8 million, or 30%, which included $4 million of expenses related to the CRT transaction in the quarter. Additionally, the fourth quarter included $5 million of expenses and the third quarter included $2 million of expenses related to the previously announced branch consolidations.

Credit Quality

Table 10 – Credit Quality Metrics


	2023												2022
($ in millions)	December 31,			September 30,			June 30,			March 31,			December 31,
Total nonaccrual loans and leases	$	667		$	592		$	510		$	533		$	569
Total other real estate, net	10			14			18			20			11
Other NPAs (1)	34			28			29			25			14
Total nonperforming assets	711			634			557			578			594
Accruing loans and leases past due 90+ days	189			163			169			185			207
NPAs + accruing loans & leases past due 90+ days	$	900		$	797		$	726		$	763		$	801
NAL ratio (2)	0.55		%	0.49		%	0.42		%	0.44		%	0.48		%
NPA ratio (3)	0.58			0.52			0.46			0.48			0.50
(NPAs+90 days)/(Loans+OREO)	0.74			0.66			0.60			0.63			0.67


Provision for credit losses	$	126		$	99		$	92		$	85		$	91
Net charge-offs	94			73			49			57			50
Net charge-offs / Average total loans and leases	0.31		%	0.24		%	0.16		%	0.19		%	0.17		%
Allowance for loans and lease losses (ALLL)	$	2,255		$	2,208		$	2,177		$	2,142		$	2,121
Allowance for unfunded lending commitments	145			160			165			157			150
Allowance for credit losses (ACL)	$	2,400		$	2,368		$	2,342		$	2,299		$	2,271
ALLL as a % of:
Total loans and leases	1.85		%	1.83		%	1.80		%	1.77		%	1.77		%
NALs	338			373			427			402			373
NPAs	317			348			391			371			357
ACL as a % of:
Total loans and leases	1.97		%	1.96		%	1.93		%	1.90		%	1.90		%
NALs	360			400			459			431			400
NPAs	337			373			420			398			382

(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.

(2)Total NALs as a % of total loans and leases.

(3)Total NPAs as a % of sum of loans and leases, other real estate owned, and other NPAs.

See Pages 12-15 of Quarterly Financial Supplement for additional detail.

Nonperforming assets (NPAs) were $711 million, or 0.58%, of total loans and leases, OREO and other NPAs, compared to $594 million, or 0.50%, a year-ago. Nonaccrual loans and leases (NALs) were $667 million, or 0.55% of total loans and leases, compared to $569 million, or 0.48% of total loans and leases, a year-ago. On a linked quarter basis, NPAs increased $77 million, or 12%, and NALs increased $75 million, or 13%, driven by an increase in commercial NALs.

The provision for credit losses increased $35 million year-over-year and increased $27 million quarter-over-quarter to $126 million in the 2023 fourth quarter. Net charge-offs (NCOs) increased $44 million year-over-year and increased $21 million quarter-over-quarter to $94 million. NCOs represented an annualized 0.31% of average loans and leases in the current quarter, up from 0.17% in the year-ago quarter and from 0.24% in the prior quarter. The increase in NCOs year-over-year reflects the continued normalization of net charge-offs. Commercial and consumer net charge-offs were 0.34% and 0.28%, respectively, for the 2023 fourth quarter.

The allowance for loan and lease losses (ALLL) increased $134 million from the year-ago quarter to $2.3 billion, or 1.85%, and allowance for credit losses (ACL) increased by $129 million from the year-ago quarter to $2.4 billion, or 1.97% of total loans and leases, driven by a combination of loan and lease growth and modest overall coverage ratios builds throughout 2023 that are reflective of the current macroeconomic environment including recognition of near-term recessionary risks. On a linked quarter basis, the ACL increased $32 million, resulting in the ACL coverage ratio increasing 1 basis point, to 1.97%.

Capital

Table 11 – Capital Ratios


	2023												2022
($ in billions)	December 31,			September 30,			June 30,			March 31,			December 31,
Tangible common equity / tangible assets ratio	6.14		%	5.70		%	5.80		%	5.77		%	5.55		%
Common equity tier 1 risk-based capital ratio (1)	10.25			10.10			9.82			9.55			9.36
Regulatory Tier 1 risk-based capital ratio (1)	11.98			11.87			11.58			11.30			10.90
Regulatory Total risk-based capital ratio (1)	14.17			14.11			13.82			13.53			13.09
Total risk-weighted assets (1)	$	138.7		$	140.7		$	141.4		$	142.3		$	141.9

(1)December 31, 2023 figures are estimated. Amounts are presented on a Basel III standardized approach basis for calculating risk-weighted assets. The capital ratios reflect Huntington’s 2020 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. As of March 31, 2023, June 30, 2023, September 30, 2023, and December 31, 2023 50% of the cumulative CECL deferral has been phased in. As of December 31, 2022, 25% of the cumulative CECL deferral has been phased in.

See Page 16 of Quarterly Financial Supplement for additional detail.

The tangible common equity to tangible assets ratio was 6.14% at December 31, 2023, an increase of 44 basis points from last quarter due primarily to accumulated other comprehensive income changes and current period earnings, net of dividends, partially offset by higher tangible assets. Common Equity Tier 1 (CET1) risk-based capital ratio was 10.25%, up from 10.10% from the prior quarter primarily due to a decrease in risk-weighted assets driven by the CRT transaction, and was also favorably impacted by current period earnings, offset by dividends.

Income Taxes

The provision for income taxes was a benefit of $1 million in the 2023 fourth quarter compared to expense of $136 million in the 2023 third quarter. The effective tax rates for the 2023 fourth quarter and 2023 third quarter were (0.5%) and 19.7%, respectively. The variance to the linked quarter provision for income taxes and effective tax rate relates primarily to lower pre-tax income as a result of notable items, and discrete tax benefits recognized in the 2023 fourth quarter. Excluding the expenses related to notable items of $226 million, the related tax benefit of $48 million and discrete tax benefits of $33 million, the effective tax rate would have been 16.7%.

At December 31, 2023, we had a net federal deferred tax asset of $616 million and a net state deferred tax asset of $94 million.

Conference Call / Webcast Information

Please see the 2023 Fourth Quarter Quarterly Financial Supplement for additional detailed financial performance metrics. This document can be found on the Investor Relations section of Huntington's website, http://www.huntington.com.

About Huntington

Huntington Bancshares Incorporated is a $189 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle‐market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates approximately 1,000 branches in 11 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.

Caution regarding Forward-Looking Statements

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; deterioration in business and economic conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the impact of pandemics, including the COVID-19 pandemic and related variants and mutations, and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; the impacts related to or resulting from recent bank failures and other volatility, including potential increased regulatory requirements and costs, such as FDIC special assessments, long-term debt requirements and heightened capital requirements, and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital; unexpected outflows of uninsured deposits which may require us to sell investment securities at a loss; rising interest rates which could negatively impact the value of our portfolio of investment securities; the loss of value of our investment portfolio which could negatively impact market perceptions of us and could lead to deposit withdrawals; the effects of social media on market perceptions of us and banks generally; cybersecurity risks; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve; volatility and disruptions in global capital and credit markets; movements in interest rates; 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; and other factors that may affect the future results of Huntington. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023, which are on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Huntington’s website http://www.huntington.com, under the heading “Publications and Filings” and in other documents Huntington files with the SEC.

Basis of Presentation

Use of Non-GAAP Financial Measures

This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s 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 in this document, the financial supplement, conference call slides, or the Form 8-K related to this document, all of which can be found in the Investor Relations section of Huntington’s website, http://www.huntington.com.

Annualized Data

Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. For example, loan and deposit growth rates, as well as net charge-off percentages, are most often expressed in terms of an annual rate like 8%. As such, a 2% growth rate for a quarter would represent an annualized 8% growth rate.

Fully-Taxable Equivalent Interest Income and Net Interest Margin

Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of competitors.

Rounding

Please note that columns of data in this document may not add due to rounding.

Notable 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 “Notable Items.” Management believes it is useful to consider certain financial metrics with and without Notable Items, in order to enable a better understanding of company results, increase comparability of period-to-period results, and to evaluate and forecast those results.

EX-99.2 3 hban20231231_8kex992.htm EX-99.2 Document

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Supplement

December 31, 2023

Table of Contents


Quarterly Key Statistics			1

Year to Date Key Statistics			2

Consolidated Balance Sheets			4

Loans and Leases Composition			5

Deposits Composition			6

Consolidated Quarterly Average Balance Sheets			7

Consolidated Quarterly Net Interest Margin - Interest Income / Expense			8

Consolidated Quarterly Net Interest Margin - Yield			9

Selected Quarterly Income Statement Data			10

Quarterly Mortgage Banking Noninterest Income			11

Quarterly Credit Reserves Analysis			12

Quarterly Net Charge-Off Analysis			13

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			14

Quarterly Accruing Past Due Loans and Leases			15

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data			16

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data			17





















Consolidated Annual Average Balance Sheets			18

Consolidated Annual Net Interest Margin - Interest Income / Expense			19

Consolidated Annual Net Interest Margin - Yield			20

Selected Annual Income Statement Data			21

Annual Mortgage Banking Noninterest Income			22

Annual Credit Reserves Analysis			23

Annual Net Charge-Off Analysis			24

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)			25

Notes:

The preparation of financial statement data in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect amounts reported. Actual results could differ from those estimates.

During the 2023 fourth quarter, the presentation of our noninterest income categories were updated to align with product and service type and now report our noninterest revenue categories as: (1) Payments and cash management revenue, (2) Wealth and asset management revenue, (3) Customer deposit and loan fees, (4) Capital markets and advisory fees, (5) Mortgage banking income, (6) Leasing revenue, (7) Insurance income, (8) Bank owned life insurance income, (9) Gain on sales of loans, (10) Net gains (losses) on sales of securities, and (11) Other noninterest income. A description of each updated noninterest income category is included below. All prior period results have been adjusted to conform to the current presentation.

•Payments and cash management revenue primarily includes interchange fees earned on debit cards and credit cards and fees earned from providing cash management services to corporate deposit customers.

•Wealth and asset management revenue primarily includes fee income generated from providing wealth and asset management services to personal, corporate, and institutional customers, including, but not limited to, fees and commissions earned from trust and investment management services, sales of annuity products, and tax reporting services.

•Customer deposit and loan fees primarily includes fees and other charges Huntington receives related to service charges on deposit accounts, loan commitments and standby letters of credits, and other deposit and lending activity.

•Capital markets and advisory fees primarily includes advisory fees for merger, acquisition and capital markets activity, interest rate derivative fees, underwriting fees, foreign exchange fees, loan syndication fees, and fees earned from customer-related sales activity.

•Mortgage banking income primarily includes the gain and loss of sale of mortgages, mortgage servicing revenue and mortgage servicing rights valuation adjustments.

•Leasing revenue primarily includes income from operating lease payments and termination of leases.

•Insurance income primarily includes agency commissions from the sale of insurance premiums to customers.

•Bank owned life insurance income includes changes in surrender value of life insurance policies and recognition of death benefits.

•Gain on sales of loans includes recognition of the net gain on sales of loans.

•Net gains (losses) on sales of securities includes recognition of the net gain (loss) on sales of securities.

•Other noninterest income includes a variety of other revenue streams including mezzanine investment income, mark-to-market adjustments on derivative instruments, and other fees earned not included in above categories.

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 a more accurate 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%.

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, and

•Tangible common equity to risk-weighted assets using Basel III definition.

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 the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes preferred securities, 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 may be considered non-GAAP financial measures.

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, the Company encourages readers to consider the consolidated financial statements and other financial information contained in the related press release in their entirety, and not to rely on any single financial measure.

Huntington Bancshares Incorporated

Quarterly Key Statistics

(Unaudited)


	Three Months Ended
(dollar amounts in millions, except per share data)	December 31,			September 30,			December 31,			Percent Changes vs.
	2023			2023			2022			3Q23		4Q22
Net interest income (1)	$	1,327		$	1,379		$	1,471		(4)	%	(10)	%
FTE adjustment	(11)			(11)			(9)			—		(22)
Net interest income	1,316			1,368			1,462			(4)		(10)
Provision for credit losses	126			99			91			27		38
Noninterest income	405			509			499			(20)		(19)
Noninterest expense	1,348			1,090			1,077			24		25
Income before income taxes	247			688			793			(64)		(69)
Provision (benefit) for income taxes	(1)			136			144			NM		NM
Income after income taxes	248			552			649			(55)		(62)
Income attributable to non-controlling interest	5			5			4			—		25
Net income attributable to Huntington	243			547			645			(56)		(62)
Dividends on preferred shares	36			37			28			(3)		29
Impact of preferred stock repurchases	(8)			—			—			NM		NM
Net income applicable to common shares	$	215		$	510		$	617		(58)	%	(65)

Net income per common share - diluted	$	0.15		$	0.35		$	0.42		(57)	%	(64)	%
Cash dividends declared per common share	0.155			0.155			0.155			—		—
Tangible book value per common share at end of period	7.79			7.12			6.82			9		14

Average common shares - basic	1,448			1,448			1,443			—		—
Average common shares - diluted	1,469			1,468			1,468			—		—
Ending common shares outstanding	1,448			1,448			1,443			—		—
Return on average assets	0.51		%	1.16		%	1.41		%
Return on average common shareholders’ equity	5.2			12.4			16.0
Return on average tangible common shareholders’ equity (2)	8.4			19.5			26.0
Net interest margin (1)	3.07			3.20			3.52
Efficiency ratio (3)	77.0			57.0			54.0
Effective tax rate	(0.5)			19.7			18.2
Average total assets	$	187,962		$	186,599		$	181,292		1		4
Average earning assets	171,360			170,948			165,545			—		4
Average loans and leases	121,229			120,784			118,907			—		2

Average total deposits	$	149,654		$	148,150		$	145,672		1		3
Average core deposits (4)	144,384			143,110			140,696			1		3

Average Huntington shareholders’ equity	18,713			18,741			17,458			—		7
Average common total shareholders' equity	16,275			16,256			15,292			—		6
Average tangible common shareholders' equity	10,597			10,568			9,563			—		11
Total assets at end of period	189,368			186,650			182,906			1		4
Total Huntington shareholders’ equity at end of period	19,353			18,483			17,731			5		9

NCOs as a % of average loans and leases	0.31		%	0.24		%	0.17		%
NAL ratio	0.55			0.49			0.48
NPA ratio (5)	0.58			0.52			0.50
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period	1.85			1.83			1.77
Allowance for credit losses (ACL) as a % of total loans and leases at the end of period	1.97			1.96			1.90
Common equity tier 1 risk-based capital ratio (6)	10.25			10.10			9.36
Tangible common equity / tangible asset ratio (7)	6.14			5.70			5.55

NM - Not Meaningful

See Notes to the Quarterly and Year to Date Key Statistics.

Huntington Bancshares Incorporated

Annual Key Statistics

(Unaudited)


	Year Ended December 31,						Change
(dollar amounts in millions, except per share data)	2023			2022			Amount		Percent
Net interest income (1)	$	5,481		$	5,304		$	177	3	%
FTE adjustment	(42)			(31)			(11)		(35)
Net interest income	5,439			5,273			166		3
Provision for credit losses	402			289			113		39
Noninterest income	1,921			1,981			(60)		(3)
Noninterest expense	4,574			4,201			373		9
Income before income taxes	2,384			2,764			(380)		(14)
Provision for income taxes	413			515			(102)		(20)
Income after income taxes	1,971			2,249			(278)		(12)
Income attributable to non-controlling interest	20			11			9		82
Net income attributable to Huntington	1,951			2,238			(287)		(13)
Dividends on preferred shares	142			113			29		26
Impact of preferred stock repurchases	(8)			—			(8)		NM
Net income applicable to common shares	$	1,817		$	2,125		$	(308)	(14)	%

Net income per common share - diluted	$	1.24		$	1.45		$	(0.21)	(14)	%
Cash dividends declared per common share	0.62			0.62			—		—

Average common shares - basic	1,446			1,441			5		—
Average common shares - diluted	1,468			1,465			3		—

Return on average assets	1.04		%	1.25		%
Return on average common shareholders’ equity	11.2			13.2
Return on average tangible common shareholders’ equity (2)	17.6			20.7
Net interest margin (1)	3.19			3.25
Efficiency ratio (3)	61.0			56.9
Effective tax rate	17.3			18.6

Average total assets	$	187,556		$	178,768		$	8,788	5	%
Average earning assets	171,586			163,313			8,273		5
Average loans and leases	120,946			115,266			5,680		5
Average total deposits	147,388			144,912			2,476		2
Average core deposits (4)	142,338			140,841			1,497		1
Average Huntington shareholders’ equity	18,634			18,263			371		2
Average common total shareholders' equity	16,217			16,096			121		1
Average tangible common shareholders' equity	10,521			10,454			67		1

NCOs as a % of average loans and leases	0.23		%	0.11		%
NAL ratio	0.55			0.48
NPA ratio (5)	0.58			0.50

NM - Not Meaningful

See Notes to the Quarterly and Year to Date Key Statistics.

Notes to the Quarterly and Year to Date Key Statistics

(1)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.

(2)Net income applicable to common shares 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.

(3)Noninterest expense less amortization of intangibles divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

(4)Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.

(5)NPAs include other nonperforming assets, which includes certain impaired securities and/or nonaccrual loans held for sale, and other real estate owned.

(6)December 31, 2023, figures are estimated.

(7)Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, calculated at a 21% tax rate.

Huntington Bancshares Incorporated

Consolidated Balance Sheets


	December 31,		December 31,
(dollar amounts in millions)	2023		2022		Percent Changes
	(Unaudited)
Assets
Cash and due from banks	$	1,558	$	1,796	(13)	%


Interest-earning deposits with banks	8,765		5,122		71
Trading account securities	125		19		558
Available-for-sale securities	25,305		23,423		8
Held-to-maturity securities	15,750		17,052		(8)


Other securities	725		854		(15)
Loans held for sale	516		529		(2)
Loans and leases (1)	121,982		119,523		2
Allowance for loan and lease losses	(2,255)		(2,121)		(6)
Net loans and leases	119,727		117,402		2
Bank owned life insurance	2,759		2,753		—
Accrued income and other receivables	1,646		1,573		5
Premises and equipment	1,109		1,156		(4)
Goodwill	5,561		5,571		—
Servicing rights and other intangible assets	672		712		(6)
Other assets	5,150		4,944		4
Total assets	$	189,368	$	182,906	4	%

Liabilities and shareholders' equity
Liabilities
Deposits (2)	$	151,230	$	147,914	2	%
Short-term borrowings	620		2,027		(69)
Long-term debt	12,394		9,686		28
Other liabilities	5,726		5,510		4
Total liabilities	169,970		165,137		3

Shareholders' equity
Preferred stock	2,394		2,167		10
Common stock	15		14		7
Capital surplus	15,389		15,309		1
Less treasury shares, at cost	(91)		(80)		(14)
Accumulated other comprehensive income (loss)	(2,676)		(3,098)		14
Retained earnings	4,322		3,419		26
Total Huntington shareholders’ equity	19,353		17,731		9
Non-controlling interest	45		38		18
Total equity	19,398		17,769		9
Total liabilities and equity	$	189,368	$	182,906	4	%

Common shares authorized (par value of $0.01)	2,250,000,000		2,250,000,000
Common shares outstanding	1,448,319,953		1,443,068,036
Treasury shares outstanding	7,403,008		6,322,052
Preferred stock, authorized shares	6,617,808		6,617,808
Preferred shares outstanding	881,587		557,500

(1)See page 5 for detail of loans and leases.

(2)See page 6 for detail of deposits.

Huntington Bancshares Incorporated

Loans and Leases Composition

(Unaudited)


	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2023				2023				2023				2023				2022
Ending balances by type:
Total loans and leases
Commercial:
Commercial and industrial	$	50,657	42	%	$	49,422	41	%	$	49,834	41	%	$	50,039	42	%	$	48,121	41	%
Commercial real estate:
Commercial	11,092		9		11,365		10		11,750		10		12,132		10		12,138		10
Construction	1,330		1		1,303		1		1,416		1		1,255		1		1,502		1
Commercial real estate	12,422		10		12,668		11		13,166		11		13,387		11		13,640		11
Lease financing	5,228		4		5,161		4		5,143		4		5,244		4		5,252		4
Total commercial	68,307		56		67,251		56		68,143		56		68,670		57		67,013		56
Consumer:
Residential mortgage	23,720		20		23,427		19		23,138		19		22,472		19		22,226		19
Automobile	12,482		10		12,724		11		12,819		11		13,187		11		13,154		11
Home equity	10,113		8		10,118		8		10,135		8		10,166		8		10,375		9
RV and marine	5,899		5		5,937		5		5,640		5		5,404		4		5,376		4
Other consumer	1,461		1		1,396		1		1,350		1		1,280		1		1,379		1
Total consumer	53,675		44		53,602		44		53,082		44		52,509		43		52,510		44
Total loans and leases	$	121,982	100	%	$	120,853	100	%	$	121,225	100	%	$	121,179	100	%	$	119,523	100	%


	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2023				2023				2023				2023				2022
Ending balances by business segment:
Consumer & Regional Banking	$	67,108	55	%	$	66,202	55	%	$	65,374	54	%	$	64,387	53	%	$	64,080	54	%
Commercial Banking	54,743		45		54,451		45		55,672		46		56,599		47		55,304		46



Treasury / Other	131		—		200		—		179		—		193		—		139		—
Total loans and leases	$	121,982	100	%	$	120,853	100	%	$	121,225	100	%	$	121,179	100	%	$	119,523	100	%

Average balances by business segment:
Consumer & Regional Banking	$	66,638	55	%	$	65,738	55	%	$	64,782	54	%	$	64,209	54	%	$	63,836	54	%
Commercial Banking	54,395		45		54,873		45		56,375		46		55,919		46		54,789		46



Treasury / Other	196		—		173		—		188		—		292		—		282		—
Total loans and leases	$	121,229	100	%	$	120,784	100	%	$	121,345	100	%	$	120,420	100	%	$	118,907	100	%

Huntington Bancshares Incorporated

Deposits Composition

(Unaudited)


	December 31,				September 30,				June 30,				March 31,				December 31,
(dollar amounts in millions)	2023				2023				2023				2023				2022
Ending balances:
Total deposits by type:
Demand deposits - noninterest-bearing	$	30,967	20	%	$	31,666	21	%	$	33,340	23	%	$	36,789	25	%	$	38,242	26	%
Demand deposits - interest-bearing	39,190		26		39,822		27		40,387		27		39,827		28		43,136		29
Money market deposits	44,947		30		42,996		29		40,534		28		37,276		26		36,082		24
Savings and other domestic deposits	16,722		11		17,350		12		18,294		12		19,546		13		20,357		14
Core certificates of deposit (1)	13,626		9		12,372		8		10,314		7		6,981		5		4,324		3
Total core deposits	145,452		96		144,206		97		142,869		97		140,419		97		142,141		96
Other domestic deposits of $250,000 or more	447		—		446		—		381		—		282		—		220		—
Negotiable CDS, brokered and other deposits	5,331		4		4,215		3		4,778		3		4,577		3		5,553		4

Total deposits	$	151,230	100	%	$	148,867	100	%	$	148,028	100	%	$	145,278	100	%	$	147,914	100	%

Total core deposits:
Commercial	$	60,547	42	%	$	61,379	43	%	$	61,450	43	%	$	61,132	44	%	$	64,107	45	%
Consumer	84,905		58		82,827		57		81,419		57		79,287		56		78,034		55
Total core deposits	$	145,452	100	%	$	144,206	100	%	$	142,869	100	%	$	140,419	100	%	$	142,141	100	%

Total deposits by business segment:

Consumer & Regional Banking	$	110,157	73	%	$	108,183	73	%	$	106,502	72	%	$	105,339	72	%	$	105,064	71	%
Commercial Banking	35,466		23		36,023		24		36,459		25		34,660		24		36,807		25


Treasury / Other	5,607		4		4,661		3		5,067		3		5,279		4		6,043		4
Total deposits	$	151,230	100	%	$	148,867	100	%	$	148,028	100	%	$	145,278	100	%	$	147,914	100	%

Average balances:


Total core deposits:
Commercial	$	61,782	43	%	$	62,070	43	%	$	61,304	44	%	$	63,423	45	%	$	65,128	46	%
Consumer	82,602		57		81,040		57		79,432		56		77,654		55		75,568		54
Total core deposits	$	144,384	100	%	$	143,110	100	%	$	140,736	100	%	$	141,077	100	%	$	140,696	100	%

Average deposits by business segment:

Consumer & Regional Banking	$	108,198	72	%	$	106,300	72	%	$	104,593	71	%	$	104,151	71	%	$	103,820	71	%
Commercial Banking	35,886		24		36,673		25		35,752		25		36,288		25		36,260		25


Treasury / Other	5,570		4		5,177		3		5,214		4		5,705		4		5,592		4
Total deposits	$	149,654	100	%	$	148,150	100	%	$	145,559	100	%	$	146,144	100	%	$	145,672	100	%

(1)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets

(Unaudited)


	Quarterly Average Balances (1)
	December 31,		September 30,		June 30,		March 31,		December 31,		Percent Changes vs.
(dollar amounts in millions)	2023		2023		2023		2023		2022		3Q23		4Q22
Assets


Interest-earning deposits with banks	$	10,019	$	9,547	$	11,281	$	6,350	$	4,920	5	%	104	%
Securities:
Trading account securities	125		128		34		21		29		(2)		331
Available-for-sale securities:
Taxable	20,056		19,834		20,920		21,368		20,467		1		(2)
Tax-exempt	2,686		2,807		2,745		2,640		2,706		(4)		(1)
Total available-for-sale securities	22,742		22,641		23,665		24,008		23,173		—		(2)


Held-to-maturity securities - taxable	15,947		16,356		16,762		16,977		17,022		(3)		(6)





Other securities	727		859		1,263		886		857		(15)		(15)
Total securities	39,541		39,984		41,724		41,892		41,081		(1)		(4)
Loans held for sale	571		633		559		450		637		(10)		(10)
Loans and leases: (2)
Commercial:
Commercial and industrial	49,882		49,448		50,194		49,028		47,505		1		5
Commercial real estate:
Commercial	11,309		11,624		12,062		12,282		12,179		(3)		(7)
Construction	1,285		1,331		1,280		1,400		1,676		(3)		(23)
Commercial real estate	12,594		12,955		13,342		13,682		13,855		(3)		(9)
Lease financing	5,102		5,050		5,155		5,209		5,080		1		—
Total commercial	67,578		67,453		68,691		67,919		66,440		—		2
Consumer:
Residential mortgage	23,573		23,278		22,765		22,327		22,011		1		7
Automobile	12,612		12,747		12,927		13,245		13,284		(1)		(5)
Home equity	10,107		10,108		10,154		10,258		10,417		—		(3)
RV and marine	5,934		5,813		5,478		5,366		5,408		2		10
Other consumer	1,425		1,385		1,330		1,305		1,347		3		6
Total consumer	53,651		53,331		52,654		52,501		52,467		1		2
Total loans and leases	121,229		120,784		121,345		120,420		118,907		—		2
Total earning assets	171,360		170,948		174,909		169,112		165,545		—		4
Cash and due from banks	1,508		1,559		1,639		1,598		1,650		(3)		(9)
Goodwill and other intangible assets	5,710		5,722		5,734		5,759		5,771		—		(1)
All other assets	11,607		10,576		10,638		10,568		10,458		10		11
Allowance for loan and lease losses	(2,223)		(2,206)		(2,174)		(2,143)		(2,132)		(1)		(4)
Total assets	$	187,962	$	186,599	$	190,746	$	184,894	$	181,292	1	%	4	%
Liabilities and shareholders' equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	39,138	$	39,757	$	39,772	$	40,654	$	42,705	(2)	%	(8)	%
Money market deposits	44,022		41,445		38,753		37,301		34,390		6		28
Savings and other domestic deposits	16,944		17,774		18,826		19,877		20,831		(5)		(19)
Core certificates of deposit (3)	13,107		11,348		8,820		5,747		2,926		16		348

Other domestic deposits of $250,000 or more	435		406		320		252		198		7		120
Negotiable CDS, brokered and other deposits	4,834		4,634		4,502		4,815		4,777		4		1

Total interest-bearing deposits	118,480		115,364		110,993		108,646		105,827		3		12
Short-term borrowings	1,906		859		5,242		4,371		545		122		250
Long-term debt	12,205		13,772		16,252		11,047		12,650		(11)		(4)
Total interest-bearing liabilities	132,591		129,995		132,487		124,064		119,022		2		11
Demand deposits - noninterest-bearing	31,174		32,786		34,566		37,498		39,845		(5)		(22)
All other liabilities	5,435		5,028		4,796		5,056		4,929		8		10
Total liabilities	169,200		167,809		171,849		166,618		163,796		1		3
Total Huntington shareholders’ equity	18,713		18,741		18,844		18,231		17,458		—		7
Non-controlling interest	49		49		53		45		38		—		29
Total equity	18,762		18,790		18,897		18,276		17,496		—		7
Total liabilities and equity	$	187,962	$	186,599	$	190,746	$	184,894	$	181,292	1	%	4	%

(1)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(2)Includes nonaccrual loans and leases.

(3)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Interest Income / Expense (1)(2)

(Unaudited)


	Quarterly Interest Income / Expense
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollar amounts in millions)	2023		2023		2023		2023		2022
Assets


Interest-earning deposits with banks	$	139	$	131	$	146	$	76	$	51
Securities:
Trading account securities	2		1		1		—		—
Available-for-sale securities:
Taxable	273		259		252		232		198
Tax-exempt	33		37		33		29		28
Total available-for-sale securities	306		296		285		261		226
Held-to-maturity securities - taxable	98		99		102		102		100



Other securities	13		19		11		10		9
Total securities	419		415		399		373		335
Loans held for sale	10		10		8		7		8
Loans and leases:
Commercial:
Commercial and industrial	783		776		746		686		613
Commercial real estate:
Commercial	216		225		217		207		185
Construction	27		28		26		26		28
Commercial real estate	243		253		243		233		213
Lease financing	77		73		71		68		66
Total commercial	1,103		1,102		1,060		987		892
Consumer:
Residential mortgage	222		213		200		190		183
Automobile	153		145		134		129		125
Home equity	197		195		187		181		172
RV and marine	77		73		63		58		61
Other consumer	41		40		39		36		36
Total consumer	690		666		623		594		577
Total loans and leases	1,793		1,768		1,683		1,581		1,469
Total earning assets	$	2,361	$	2,324	$	2,236	$	2,037	$	1,863

Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	204	$	199	$	167	$	132	$	102
Money market deposits	381		327		255		172		75
Savings and other domestic deposits	8		6		6		3		2
Core certificates of deposit (3)	145		119		83		43		10

Other domestic deposits of $250,000 or more	5		4		2		2		1
Negotiable CDS, brokered and other deposits	65		58		57		54		45

Total interest-bearing deposits	808		713		570		406		235
Short-term borrowings	28		17		74		60		10
Long-term debt	198		215		235		153		147
Total interest-bearing liabilities	1,034		945		879		619		392
Net interest income	$	1,327	$	1,379	$	1,357	$	1,418	$	1,471

(1)Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.

(2)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin - Yield

(Unaudited)


	Quarterly Average Rates
	December 31,		September 30,		June 30,		March 31,		December 31,
Fully-taxable equivalent basis (1)	2023		2023		2023		2023		2022
Assets


Interest-earning deposits with banks	5.59		5.48		5.17		4.81		4.10
Securities:
Trading account securities	5.40		4.98		4.92		5.37		5.45
Available-for-sale securities:
Taxable	5.43		5.22		4.82		4.34		3.87
Tax-exempt	5.01		5.08		4.87		4.40		4.21
Total available-for-sale securities	5.38		5.20		4.83		4.35		3.91
Held-to-maturity securities - taxable	2.45		2.43		2.42		2.41		2.34



Other securities	7.04		9.22		3.47		4.35		4.15
Total securities	4.23		4.15		3.82		3.56		3.26
Loans held for sale	6.95		6.42		6.05		5.85		5.42
Loans and leases: (2)
Commercial:
Commercial and industrial	6.14		6.15		5.87		5.60		5.06
Commercial real estate:
Commercial	7.48		7.55		7.14		6.73		5.93
Construction	8.40		8.30		7.96		7.40		6.54
Commercial real estate	7.57		7.63		7.22		6.80		6.01
Lease financing	5.90		5.60		5.45		5.25		5.02
Total commercial	6.39		6.39		6.10		5.82		5.25
Consumer:
Residential mortgage	3.76		3.66		3.51		3.41		3.33
Automobile	4.82		4.51		4.17		3.94		3.74
Home equity	7.70		7.66		7.42		7.14		6.57
RV and marine	5.13		4.96		4.59		4.42		4.45
Other consumer	11.67		11.67		11.59		11.18		10.38
Total consumer	5.12		4.97		4.74		4.57		4.37
Total loans and leases	5.82		5.76		5.51		5.27		4.86
Total earning assets	5.47		5.39		5.13		4.89		4.46
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	2.06		1.98		1.68		1.32		0.94
Money market deposits	3.44		3.12		2.64		1.87		0.86
Savings and other domestic deposits	0.19		0.15		0.11		0.07		0.03
Core certificates of deposit (3)	4.40		4.17		3.78		3.01		1.42

Other domestic deposits of $250,000 or more	4.20		3.78		3.27		2.45		1.31
Negotiable CDS, brokered and other deposits	5.33		4.93		5.07		4.56		3.74

Total interest-bearing deposits	2.71		2.45		2.06		1.52		0.88
Short-term borrowings	5.84		7.60		5.70		5.56		7.71
Long-term debt	6.46		6.27		5.79		5.52		4.66
Total interest-bearing liabilities	3.09		2.88		2.66		2.02		1.31

Net interest rate spread	2.38		2.51		2.47		2.87		3.15
Impact of noninterest-bearing funds on margin	0.69		0.69		0.64		0.53		0.37
Net interest margin	3.07	%	3.20	%	3.11	%	3.40	%	3.52	%


Commercial Loan Derivative Impact
(Unaudited)	Quarterly Average Rates
	December 31,		September 30,		June 30,		March 31,		December 31,
Fully-taxable equivalent basis (1)	2023		2023		2023		2023		2022
Commercial loans (2)(4)	7.14	%	7.09	%	6.82	%	6.42	%	5.68	%
Impact of commercial loan derivatives	(0.75)		(0.70)		(0.72)		(0.60)		(0.43)
Total commercial - as reported	6.39	%	6.39	%	6.10	%	5.82	%	5.25	%
Average 1 Month LIBOR					5.09	%	4.62	%	3.89	%
Average SOFR	5.32	%	5.23	%	4.97	%	4.50	%	3.61	%

(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 10 for the FTE adjustment.

(2)Includes nonaccrual loans and leases.

(3)Includes consumer certificates of deposit of $250,000 or more.

(4)Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data (1)

(Unaudited)


	Three Months Ended
(dollar amounts in millions, except per share data)	December 31,		September 30,		June 30,		March 31,		December 31,
	2023		2023		2023		2023		2022
Interest income	$	2,350	$	2,313	$	2,225	$	2,028	$	1,854
Interest expense	1,034		945		879		619		392
Net interest income	1,316		1,368		1,346		1,409		1,462
Provision for credit losses	126		99		92		85		91
Net interest income after provision for credit losses	1,190		1,269		1,254		1,324		1,371
Payments and cash management revenue	150		152		146		137		142
Wealth and asset management revenue	86		79		83		80		76
Customer deposit and loan fees	80		80		76		76		84
Capital markets and advisory fees	69		52		62		65		88
Leasing revenue	29		32		25		26		35
Mortgage banking income	23		27		33		26		25
Insurance income	19		18		18		19		18
Bank owned life insurance income	16		18		16		16		15
Gain on sale of loans	1		2		8		3		2
Net gains (losses) on sales of securities	(3)		—		(5)		1		—
Other noninterest income	(65)		49		33		63		14
Total noninterest income	405		509		495		512		499
Personnel costs	645		622		613		649		630
Outside data processing and other services	157		149		148		151		147
Deposit and other insurance expense	234		25		23		20		14
Equipment	70		65		64		64		67
Net occupancy	65		67		54		60		61
Marketing	29		29		32		25		22
Professional services	35		27		21		16		21
Amortization of intangibles	12		12		13		13		13
Lease financing equipment depreciation	5		6		8		8		9
Other noninterest expense	96		88		74		80		93
Total noninterest expense	1,348		1,090		1,050		1,086		1,077
Income before income taxes	247		688		699		750		793
Provision (benefit) for income taxes	(1)		136		134		144		144
Income after income taxes	248		552		565		606		649
Income attributable to non-controlling interest	5		5		6		4		4
Net income attributable to Huntington	243		547		559		602		645
Dividends on preferred shares	36		37		40		29		28
Impact of preferred stock repurchases	(8)		—		—		—		—
Net income applicable to common shares	$	215	$	510	$	519	$	573	$	617

Average common shares - basic	1,448		1,448		1,446		1,443		1,443
Average common shares - diluted	1,469		1,468		1,466		1,469		1,468

Per common share
Net income - basic	$	0.15	$	0.35	$	0.36	$	0.40	$	0.43
Net income - diluted	0.15		0.35		0.35		0.39		0.42
Cash dividends declared	0.155		0.155		0.155		0.155		0.155

Revenue - fully-taxable equivalent (FTE)
Net interest income	$	1,316	$	1,368	$	1,346	$	1,409	$	1,462
FTE adjustment	11		11		11		9		9
Net interest income (2)	1,327		1,379		1,357		1,418		1,471
Noninterest income	405		509		495		512		499
Total revenue (2)	$	1,732	$	1,888	$	1,852	$	1,930	$	1,970

(1)During the 2023 fourth quarter, our noninterest income categories were updated to be based on product and service type. A description of each updated noninterest income category is included within the Notes to this Quarterly Financial Supplement. All prior period results have been adjusted to conform to the current presentation.

(2)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.

Huntington Bancshares Incorporated

Quarterly Mortgage Banking Noninterest Income

(Unaudited)


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			Percent Changes vs.
(dollar amounts in millions)	2023			2023			2023			2023			2022			3Q23		4Q22
Net origination and secondary marketing income	$	12		$	18		$	23		$	16		$	16		(33)	%	(25)	%
Net mortgage servicing income
Loan servicing income	24			24			23			23			22			—		9
Amortization of capitalized servicing	(13)			(13)			(12)			(10)			(11)			—		(18)
Operating income	11			11			11			13			11			—		—
MSR valuation adjustment (1)	(34)			38			15			(12)			2			(189)		(1,800)
(Losses) gains due to MSR hedging	34			(38)			(15)			9			(4)			189		950
Net MSR risk management	—			—			—			(3)			(2)			—		100
Total net mortgage servicing income	$	11		$	11		$	11		$	10		$	9		—	%	22	%
All other	—			(2)			(1)			—			—			100		—
Mortgage banking income	$	23		$	27		$	33		$	26		$	25		(15)	%	(8)	%

Mortgage origination volume	$	1,666		$	2,020		$	2,504		$	1,412		$	1,719		(18)	%	(3)	%
Mortgage origination volume for sale	962			1,195			1,239			809			889			(19)		8

Third party mortgage loans serviced (2)	33,237			32,965			32,712			32,496			32,354			1		3
Mortgage servicing rights (2)	515			547			505			485			494			(6)		4
MSR % of investor servicing portfolio (2)	1.55		%	1.66		%	1.55		%	1.49		%	1.53		%	(7)	%	1	%

(1)The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

(2)At period end.

Huntington Bancshares Incorporated

Quarterly Credit Reserves Analysis

(Unaudited)


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2023			2023			2023			2023			2022
Allowance for loan and lease losses, beginning of period	$	2,208		$	2,177		$	2,142		$	2,121		$	2,110

Loan and lease charge-offs	(132)			(131)			(92)			(99)			(97)
Recoveries of loans and leases previously charged-off	38			58			43			42			47
Net loan and lease charge-offs	(94)			(73)			(49)			(57)			(50)
Provision for loan and lease losses	141			104			84			78			61


Allowance for loan and lease losses, end of period	2,255			2,208			2,177			2,142			2,121
Allowance for unfunded lending commitments, beginning of period	160			165			157			150			120

Provision for unfunded lending commitments	(15)			(5)			8			7			30


Allowance for unfunded lending commitments, end of period	145			160			165			157			150
Total allowance for credit losses, end of period	$	2,400		$	2,368		$	2,342		$	2,299		$	2,271
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.85		%	1.83		%	1.80		%	1.77		%	1.77		%
Nonaccrual loans and leases (NALs)	338			373			427			402			373
Nonperforming assets (NPAs)	317			348			391			371			357
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.97		%	1.96		%	1.93		%	1.90		%	1.90		%
Nonaccrual loans and leases (NALs)	360			400			459			431			400
Nonperforming assets (NPAs)	337			373			420			398			382


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollar amounts in millions)	2023		2023		2023		2023		2022
Allocation of allowance for credit losses
Commercial
Commercial and industrial	$	993	$	973	$	994	$	967	$	939
Commercial real estate	522		483		442		440		433
Lease financing	48		48		47		50		52
Total commercial	1,563		1,504		1,483		1,457		1,424
Consumer
Residential mortgage	188		200		194		176		187
Automobile	142		143		144		151		141
Home equity	114		115		119		118		105
RV and marine	148		151		145		144		143
Other consumer	100		95		92		96		121
Total consumer	692		704		694		685		697
Total allowance for loan and lease losses	2,255		2,208		2,177		2,142		2,121
Allowance for unfunded lending commitments	145		160		165		157		150
Total allowance for credit losses	$	2,400	$	2,368	$	2,342	$	2,299	$	2,271

Huntington Bancshares Incorporated

Quarterly Net Charge-Off Analysis

(Unaudited)


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2023			2023			2023			2023			2022
Net charge-offs (recoveries) by loan and lease type:
Commercial:
Commercial and industrial	$	39		$	32		$	20		$	16		$	9



Commercial real estate	21			11			7			18			7
Lease financing	(3)			2			—			(5)			5
Total commercial	57			45			27			29			21
Consumer:
Residential mortgage	—			1			1			—			—
Automobile	9			4			3			5			3
Home equity	—			—			—			(1)			—
RV and marine	5			3			2			2			2
Other consumer	23			20			16			22			24
Total consumer	37			28			22			28			29
Total net charge-offs	$	94		$	73		$	49		$	57		$	50


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2023			2023			2023			2023			2022
Net charge-offs (recoveries) - annualized percentages:
Commercial:
Commercial and industrial	0.32		%	0.26		%	0.15		%	0.13		%	0.08		%



Commercial real estate	0.65			0.35			0.23			0.51			0.20
Lease financing	(0.24)			0.12			—			(0.37)			0.40
Total commercial	0.34			0.27			0.16			0.17			0.13
Consumer:
Residential mortgage	0.01			0.01			0.01			0.01			(0.01)
Automobile	0.27			0.14			0.10			0.14			0.12
Home equity	0.01			(0.01)			(0.02)			(0.02)			(0.04)
RV and marine	0.34			0.16			0.13			0.18			0.15
Other consumer	6.48			6.09			5.17			6.37			7.08
Total consumer	0.28			0.21			0.17			0.21			0.22
Net charge-offs as a % of average loans and leases	0.31		%	0.24		%	0.16		%	0.19		%	0.17		%

Huntington Bancshares Incorporated

Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (1)

(Unaudited)


	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2023			2023			2023			2023			2022
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	344		$	314		$	267		$	273		$	288
Commercial real estate	140			102			75			86			92
Lease financing	14			14			15			14			18
Residential mortgage	72			75			73			81			90
Automobile	4			4			4			4			4
Home equity	91			82			75			74			76
RV and marine	2			1			1			1			1

Total nonaccrual loans and leases	667			592			510			533			569



Other real estate, net	10			14			18			20			11
Other NPAs (1)	34			28			29			25			14
Total nonperforming assets	$	711		$	634		$	557		$	578		$	594

Nonaccrual loans and leases as a % of total loans and leases	0.55		%	0.49		%	0.42		%	0.44		%	0.48		%
NPA ratio (2)	0.58			0.52			0.46			0.48			0.50
(NPA+90days)/(Loan+OREO) (3)	0.74			0.66			0.60			0.63			0.67


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollar amounts in millions)	2023		2023		2023		2023		2022
Nonperforming assets, beginning of period	$	634	$	557	$	578	$	594	$	627
New nonperforming assets	300		252		188		237		251


Returns to accruing status	(47)		(23)		(34)		(73)		(84)
Charge-offs	(73)		(62)		(42)		(54)		(54)
Payments	(98)		(85)		(118)		(124)		(144)
Sales	(5)		(5)		(15)		(2)		(2)

Nonperforming assets, end of period	$	711	$	634	$	557	$	578	$	594

(1)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.

(2)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.

(3)The sum of nonperforming assets and total accruing loans and leases past due 90 days or more divided by the sum of loans and leases and other real estate.

Huntington Bancshares Incorporated

Quarterly Accruing Past Due Loans and Leases

(Unaudited)


	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2023			2023			2023			2023			2022
Accruing loans and leases past due 90+ days:
Commercial and industrial	$	1		$	—		$	7		$	12		$	23

Lease financing	4			7			12			10			9
Residential mortgage (excluding loans guaranteed by the U.S. Government)	27			22			18			20			21
Automobile	9			8			6			7			9
Home equity	22			19			18			18			15
RV and marine	3			2			2			2			3
Other consumer	4			3			3			2			2
Total, excl. loans guaranteed by the U.S. Government	70			61			66			71			82
Add: loans guaranteed by U.S. Government	119			102			103			114			125
Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government	$	189		$	163		$	169		$	185		$	207

Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.06		%	0.05		%	0.05		%	0.06		%	0.07		%
Guaranteed by U.S. Government, as a percent of total loans and leases	0.10			0.08			0.08			0.09			0.10
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases	0.15			0.14			0.14			0.15			0.17

Huntington Bancshares Incorporated

Quarterly Capital Under Current Regulatory Standards (Basel III) and Other Capital Data

(Unaudited)


	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2023			2023			2023			2023			2022
Common equity tier 1 risk-based capital ratio: (1)
Total Huntington shareholders’ equity	$	19,353		$	18,483		$	18,788		$	18,758		$	17,731
Regulatory capital adjustments:
CECL transitional amount (2)	219			219			219			219			328
Shareholders’ preferred equity and related surplus	(2,404)			(2,494)			(2,494)			(2,494)			(2,177)
Accumulated other comprehensive loss	2,676			3,622			3,006			2,755			3,098
Goodwill and other intangibles, net of taxes	(5,591)			(5,605)			(5,620)			(5,636)			(5,663)
Deferred tax assets from tax loss and credit carryforwards	(41)			(14)			(14)			(14)			(27)
Common equity tier 1 capital	14,212			14,211			13,885			13,588			13,290
Additional tier 1 capital
Shareholders’ preferred equity and related surplus	2,404			2,494			2,494			2,494			2,177


Tier 1 capital	16,616			16,705			16,379			16,082			15,467
Long-term debt and other tier 2 qualifying instruments	1,306			1,383			1,394			1,395			1,424
Qualifying allowance for loan and lease losses	1,735			1,758			1,767			1,779			1,682
Tier 2 capital	3,041			3,141			3,161			3,174			3,106
Total risk-based capital	$	19,657		$	19,846		$	19,540		$	19,256		$	18,573
Risk-weighted assets (RWA)(1)	$	138,686		$	140,688		$	141,432		$	142,335		$	141,940
Common equity tier 1 risk-based capital ratio (1)	10.25		%	10.10		%	9.82		%	9.55		%	9.36		%
Other regulatory capital data:
Tier 1 leverage ratio (1)	9.32			9.43			9.01			8.79			8.60
Tier 1 risk-based capital ratio (1)	11.98			11.87			11.58			11.30			10.90
Total risk-based capital ratio (1)	14.17			14.11			13.82			13.53			13.09
Non-regulatory capital data:
Tangible common equity / RWA ratio (1)	8.14			7.33			7.50			7.43			6.93

(1)December 31, 2023, figures are estimated.

(2)Upon adoption in 2020, Huntington elected to temporarily delay certain effects of CECL on regulatory capital, utilizing a two-year delay followed by a three-year transition period. January 1, 2022 began the three-year transition period, whereby 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL will be recognized over the three-year transition period. As of March 31, 2023, June 30, 2023, September 30, 2023, and December 31, 2023, 50% of the cumulative CECL deferral has been phased in. As of December 31, 2022, 25% of the cumulative CECL deferral has been phased in.

Huntington Bancshares Incorporated

Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data

(Unaudited)

Quarterly common stock summary


	December 31,		September 30,		June 30,		March 31,		December 31,
	2023		2023		2023		2023		2022






Cash dividends declared per common share	$	0.155	$	0.155	$	0.155	$	0.155	$	0.155
Common shares outstanding (in millions)
Average - basic	1,448		1,448		1,446		1,443		1,443
Average - diluted	1,469		1,468		1,466		1,469		1,468
Ending	1,448		1,448		1,448		1,444		1,443
Tangible book value per common share (1)	$	7.79	$	7.12	$	7.33	$	7.32	$	6.82

Non-regulatory capital


	December 31,			September 30,			June 30,			March 31,			December 31,
(dollar amounts in millions)	2023			2023			2023			2023			2022
Calculation of tangible equity / asset ratio:
Total Huntington shareholders’ equity	$	19,353		$	18,483		$	18,788		$	18,758		$	17,731
Goodwill and other intangible assets	(5,704)			(5,716)			(5,728)			(5,741)			(5,766)

Deferred tax liability on other intangible assets (1)	30			33			35			38			41
Total tangible equity	13,679			12,800			13,095			13,055			12,006
Preferred equity	(2,394)			(2,484)			(2,484)			(2,484)			(2,167)
Total tangible common equity	$	11,285		$	10,316		$	10,611		$	10,571		$	9,839
Total assets	$	189,368		$	186,650		$	188,505		$	189,070		$	182,906
Goodwill and other intangible assets	(5,704)			(5,716)			(5,728)			(5,741)			(5,766)
Deferred tax liability on other intangible assets (1)	30			33			35			38			41
Total tangible assets	$	183,694		$	180,967		$	182,812		$	183,367		$	177,181
Tangible equity / tangible asset ratio	7.45		%	7.07		%	7.16		%	7.12		%	6.78		%
Tangible common equity / tangible asset ratio	6.14			5.70			5.80			5.77			5.55
Other data:
Number of employees (Average full-time equivalent)	19,612			19,826			20,200			20,198			20,007
Number of domestic full-service branches (2)	999			1,001			1,001			1,001			1,032
ATM Count	1,630			1,631			1,641			1,668			1,695

(1)Deferred tax liability related to other intangible assets is calculated at a 21% tax rate.

(2)Includes Regional Banking and The Huntington Private Bank offices.

Huntington Bancshares Incorporated

Consolidated Annual Average Balance Sheets

(Unaudited)


	Annual Average Balances (1)
			Change from 2022						Change from 2021
(dollar amounts in millions)	2023		Amount		Percent		2022		Amount		Percent		2021
Assets


Interest-earning deposits with banks	$	9,309	$	4,457	92	%	$	4,852	$	(3,649)	(43)	%	$	8,501
Securities:
Trading account securities	77		45		141		32		(18)		(36)		50
Available-for-sale securities:
Taxable	20,539		(1,455)		(7)		21,994		2,227		11		19,767
Tax-exempt	2,720		(122)		(4)		2,842		(74)		(3)		2,916
Total available-for-sale securities	23,259		(1,577)		(6)		24,836		2,153		9		22,683


Held-to-maturity securities - taxable	16,507		(2)		—		16,509		6,509		65		10,000


Other securities	933		88		10		845		289		52		556
Total securities	40,776		(1,446)		(3)		42,222		8,933		27		33,289
Loans held for sale	554		(419)		(43)		973		(425)		(30)		1,398
Loans and leases:(2)
Commercial:
Commercial and industrial	49,640		4,278		9		45,362		7,068		18		38,294
Commercial real estate:

Commercial	11,816		43		—		11,773		3,257		38		8,516
Construction	1,324		(427)		(24)		1,751		251		17		1,500
Commercial real estate	13,140		(384)		(3)		13,524		3,508		35		10,016
Lease financing	5,128		154		3		4,974		1,235		33		3,739
Total commercial	67,908		4,048		6		63,860		11,811		23		52,049
Consumer:
Residential mortgage	22,990		2,083		10		20,907		4,954		31		15,953
Automobile	12,881		(573)		(4)		13,454		446		3		13,008
Home equity	10,156		(253)		(2)		10,409		391		4		10,018
RV and marine	5,650		328		6		5,322		650		14		4,672
Other consumer	1,362		48		4		1,314		196		18		1,118
Total consumer	53,039		1,633		3		51,406		6,637		15		44,769
Total loans and leases	120,947		5,681		5		115,266		18,448		19		96,818
Total earning assets	171,586		8,273		5		163,313		23,307		17		140,006
Cash and due from banks	1,576		(90)		(5)		1,666		310		23		1,356
Goodwill and other intangible assets	5,731		43		1		5,688		1,580		38		4,108
All other assets	10,850		666		7		10,184		1,380		16		8,804
Allowance for loan and lease losses	(2,187)		(104)		(5)		(2,083)		(90)		(5)		(1,993)
Total assets	$	187,556	$	8,788	5	%	$	178,768	$	26,487	17	%	$	152,281
Liabilities and equity
Interest-bearing deposits:
Demand deposits - interest-bearing	$	39,826	$	(1,953)	(5)	%	$	41,779	$	9,071	28	%	$	32,708
Money market deposits	40,401		6,668		20		33,733		3,694		12		30,039
Savings and other domestic deposits	18,345		(2,971)		(14)		21,316		3,959		23		17,357
Core certificates of deposit (3)	9,780		7,341		301		2,439		71		3		2,368

Other domestic deposits of $250,000 or more	354		121		52		233		(120)		(34)		353
Negotiable CDs, brokered and other deposits	4,697		859		22		3,838		313		9		3,525

Total interest-bearing deposits	113,403		10,065		10		103,338		16,988		20		86,350
Short-term borrowings	3,081		596		24		2,485		2,207		794		278
Long-term debt	13,324		4,600		53		8,724		1,245		17		7,479
Total interest-bearing liabilities	129,808		15,261		13		114,547		20,440		22		94,107
Demand deposits - noninterest-bearing	33,985		(7,589)		(18)		41,574		3,614		10		37,960
All other liabilities	5,080		727		17		4,353		1,148		36		3,205
Total Huntington shareholders’ equity	18,634		371		2		18,263		1,266		7		16,997
Non-controlling interest	49		18		58		31		19		158		12
Total Equity	$	18,683	$	389	2		$	18,294	$	1,285	8		$	17,009
Total liabilities and equity	$	187,556	$	8,788	5	%	$	178,768	$	26,487	17	%	$	152,281

(1)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(2)Includes nonaccrual loans.

(3)Includes consumer certificates of deposit of $250,000 or more.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Interest Income / Expense(1)(2)

(Unaudited)


	Annual Interest Income / Expense
(dollar amounts in millions)	2023		2022		2021
Assets


Interest-earning deposits with banks	$	492	$	83	$	12
Securities:
Trading account securities	4		1		1
Available-for-sale securities:
Taxable	1,016		576		261
Tax-exempt	132		94		71
Total available-for-sale securities	1,148		670		332
Held-to-maturity securities - taxable	401		351		174
Other securities	53		27		10
Total securities	1,606		1,049		517
Loans held for sale	35		41		41
Loans and leases:
Commercial:
Commercial and industrial	2,991		1,956		1,476
Commercial real estate:
Commercial	865		520		277
Construction	107		82		55
Commercial real estate	972		602		332
Lease Financing	289		251		186
Total commercial	4,252		2,809		1,994
Consumer:
Residential mortgage	825		661		479
Automobile	561		472		471
Home equity	760		532		391
RV and marine	271		227		199
Other consumer	156		126		112
Total consumer	2,573		2,018		1,652
Total loans and leases	6,825		4,827		3,646
Total earning assets	$	8,958	$	6,000	$	4,216
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	$	702	$	158	$	12
Money market deposits	1,135		112		21
Savings and other domestic deposits	23		5		5
Core certificates of deposit	390		12		1

Other domestic deposits of $250,000 or more	13		1		1
Negotiable CDS, brokered and other deposits	234		75		5

Total interest-bearing deposits	2,497		363		45
Short-term borrowings	179		46		1
Long-term debt	801		287		43
Total interest-bearing liabilities	3,477		696		89
Net interest income	$	5,481	$	5,304	$	4,127

(1)Fully-taxable equivalent (FTE) income and expense calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.

(2)Amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin - Yield

(Unaudited)


	Annual Average Rates(2)
Fully-taxable equivalent basis(1)	2023		2022		2021
Assets


Interest-earning deposits with banks	5.30	%	1.70	%	0.13	%
Securities:
Trading account securities	5.14		4.14		3.32
Available-for-sale securities:
Taxable	4.95		2.62		1.32
Tax-exempt	4.84		3.32		2.42
Total available-for-sale securities	4.93		2.70		1.46
Held-to-maturity securities - taxable	2.43		2.13		1.74
Other securities	5.70		3.16		1.75
Total securities	3.94		2.48		1.55
Loans held for sale	6.34		4.24		2.96
Loans and leases: (4)
Commercial:
Commercial and industrial	6.03		4.31		3.86
Commercial real estate:
Commercial	7.32		4.41		3.25
Construction	8.12		4.71		3.67
Commercial real estate	7.40		4.45		3.31
Lease financing	5.63		5.04		4.98
Total commercial	6.26		4.40		3.83
Consumer:
Residential mortgage	3.59		3.16		3.00
Automobile	4.36		3.51		3.62
Home equity	7.48		5.11		3.90
RV and marine	4.79		4.26		4.27
Other consumer	11.53		9.51		10.04
Total consumer	4.85		3.92		3.69
Total loans and leases	5.64		4.19		3.77
Total earning assets	5.22		3.67		3.01
Liabilities
Interest-bearing deposits:
Demand deposits - interest-bearing	1.76	%	0.38	%	0.04	%
Money market deposits	2.81		0.33		0.07
Savings and other domestic deposits	0.13		0.02		0.03
Core certificates of deposit (4)	3.99		0.50		0.03

Other domestic deposits of $250,000 or more	3.56		0.47		0.21
Negotiable CDS, brokered and other deposits	4.98		1.96		0.16

Total interest-bearing deposits	2.20		0.35		0.05
Short-term borrowings	5.81		1.86		0.20
Long-term debt	6.01		3.29		0.57
Total interest bearing liabilities	2.68		0.61		0.09

Net interest rate spread	2.54		3.06		2.92
Impact of noninterest-bearing funds on margin	0.65		0.19		0.03
Net interest margin	3.19	%	3.25	%	2.95	%


Commercial Loan Derivative Impact
(Unaudited)
	Annual Average Rates
Fully-taxable equivalent basis(1)	2023		2022		2021
Commercial loans (2)(3)	6.95	%	4.45	%	3.50	%
Impact of commercial loan derivatives	(0.69)		(0.05)		0.33
Total commercial - as reported	6.26	%	4.40	%	3.83	%

Average 1 Month LIBOR			1.91	%	0.10	%
Average SOFR	5.00	%	1.63	%

(1)Fully-taxable equivalent (FTE) yields are calculated assuming a 21% tax rate. See page 21 for the FTE adjustment.

(2)Yield/rates exclude the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3)Includes the impact of nonaccrual loans.

(4)Includes consumer certificates of deposits of $250,000 or more.

Huntington Bancshares Incorporated

Selected Annual Income Statement Data (1)

(Unaudited)


	Year Ended December 31,
(dollar amounts in millions, except per share data)			Change						Change
	2023		Amount		Percent		2022		Amount		Percent		2021
Interest income	$	8,916	$	2,947	49	%	$	5,969	$	1,778	42	%	$	4,191
Interest expense	3,477		2,781		400		696		607		682		89
Net interest income	5,439		166		3		5,273		1,171		29		4,102
Provision for credit losses	402		113		39		289		264		1,056		25
Net interest income after provision for credit losses	5,037		53		1		4,984		907		22		4,077
Payments and cash management revenue	585		24		4		561		60		12		501
Wealth and asset management revenue	328		28		9		300		31		12		269
Customer deposit and loan fees	312		(38)		(11)		350		40		13		310
Capital markets and advisory fees	248		(17)		(6)		265		109		70		156
Leasing revenue	112		(14)		(11)		126		27		27		99
Mortgage banking income	109		(35)		(24)		144		(165)		(53)		309
Insurance income	74		(5)		(6)		79		(3)		(4)		82
Bank owned life insurance income	66		10		18		56		(13)		(19)		69
Gain on sale of loans	14		(43)		(75)		57		48		533		9
Net gains (losses) on sales of securities	(7)		(7)		NM		—		(9)		NM		9
Other noninterest income	80		37		86		43		(33)		(43)		76
Total noninterest income	1,921		(60)		(3)		1,981		92		5		1,889
Personnel costs	2,529		128		5		2,401		66		3		2,335
Outside data processing and other services	605		(5)		(1)		610		(240)		(28)		850
Deposit and other insurance expense	302		235		351		67		16		31		51
Equipment	263		(6)		(2)		269		21		8		248
Net occupancy	246		—		—		246		(31)		(11)		277
Marketing	115		24		26		91		2		2		89
Professional services	99		22		29		77		(36)		(32)		113
Amortization of intangibles	50		(3)		(6)		53		5		10		48
Lease financing equipment depreciation	27		(18)		(40)		45		4		10		41
Other noninterest expense	338		(4)		(1)		342		19		6		323
Total noninterest expense	4,574		373		9		4,201		(174)		(4)		4,375
Income before income taxes	2,384		(380)		(14)		2,764		1,173		74		1,591
Provision for income taxes	413		(102)		(20)		515		221		75		294
Income after income taxes	1,971		(278)		(12)		2,249		952		73		1,297
Income attributable to non-controlling interest	20		9		82		11		9		450		2
Net income attributable to Huntington	1,951		(287)		(13)		2,238		943		73		1,295
Dividends on preferred shares	142		29		26		113		(18)		(14)		131
Impact of preferred stock redemption	(8)		(8)		NM		—		(11)		NM		11
Net income applicable to common shares	$	1,817	$	(308)	(14)	%	$	2,125	$	972	84	%	$	1,153
Average common shares - basic	1,446		5		—	%	1,441		179		14	%	1,262
Average common shares - diluted	1,468		3		—		1,465		178		14		1,287
Per common share
Net income - basic	$	1.26	$	(0.21)	(14)		$	1.47	$	0.56	62		$	0.91
Net income - diluted	1.24		(0.21)		(14)		1.45		0.55		61		0.90
Cash dividends declared	0.62		—		—		0.62		0.015		2		0.605
Revenue - fully taxable equivalent (FTE)
Net interest income	$	5,439	$	166	3		$	5,273	$	1,171	29		$	4,102
FTE adjustment (2)	42		11		35		31		6		24		25
Net interest income	5,481		177		3		5,304		1,177		29		4,127
Noninterest income	1,921		(60)		(3)		1,981		92		5		1,889
Total revenue (2)	$	7,402	$	117	2	%	$	7,285	$	1,269	21	%	$	6,016

NM - Not Meaningful

(2)On a fully-taxable equivalent (FTE) basis assuming a 21% tax rate.

Huntington Bancshares Incorporated

Annual Mortgage Banking Noninterest Income

(Unaudited)


	Year Ended December 31,
(dollar amounts in millions)	2023			2022			2021
Net origination and secondary marketing income	$	69		$	105		$	300
Net mortgage servicing income
Loan servicing income	94			88			77
Amortization of capitalized servicing	(48)			(56)			(81)
Operating income	46			32			(4)
MSR valuation adjustment (1)	7			114			27
Gains (losses) due to MSR hedging	(10)			(109)			(26)
Net MSR risk management	(3)			5			1
Total net mortgage servicing income (expense)	$	43		$	37		$	(3)
All other	(3)			2			12
Mortgage banking income	$	109		$	144		$	309

Mortgage origination volume	$	7,602		$	10,457		$	16,396
Mortgage origination volume for sale	4,205			5,010			9,828

Third party mortgage loans serviced (2)	33,237			32,354			31,017
Mortgage servicing rights (2)	515			494			351
MSR % of investor servicing portfolio	1.55		%	1.53		%	1.13		%

(1)The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.

(2)At period end.

Huntington Bancshares Incorporated

Annual Credit Reserves Analysis

(Unaudited)


	Year Ended December 31,
(dollar amounts in millions)	2023			2022			2021
Allowance for loan and lease losses, beginning of period	$	2,121		$	2,030		$	1,814

Loan and lease charge-offs (1)	(454)			(313)			(382)
Recoveries of loans and leases previously charged off	181			192			167
Net loan and lease charge-offs	(273)			(121)			(215)
Provision for loan and lease losses	407			212			(1)
Allowance on loans and leases purchased with credit deterioration	—			—			432

Allowance for loan and lease losses, end of period	2,255			2,121			2,030
Allowance for unfunded lending commitments, beginning of period	150			77			52

Provision for (reduction in) unfunded lending commitments	(5)			73			26

Unfunded lending commitment losses	—			—			(1)
Allowance for unfunded lending commitments, end of period	145			150			77
Total allowance for credit losses, end of period	$	2,400		$	2,271		$	2,107
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases	1.85		%	1.77		%	1.82		%
Nonaccrual loans and leases (NALs)	338			373			284
Nonperforming assets (NPAs)	317			357			271
Total allowance for credit losses (ACL) as % of:
Total loans and leases	1.97		%	1.90		%	1.89		%
Nonaccrual loans and leases (NALs)	360			400			294
Nonperforming assets (NPAs)	337			382			281

(1)Net charge-offs and associated metrics for the period ended December 31, 2021 exclude $80 million of charge-offs recognized immediately upon completion of the TCF acquisition and related to required purchase accounting treatment.


	Year Ended December 31,
(dollar amounts in millions)	2023		2022		2021
Allocation of allowance for credit losses
Commercial
Commercial and industrial	$	993	$	939	$	861
Commercial real estate	522		433		557
Lease financing	48		52		44
Total commercial	1,563		1,424		1,462
Consumer
Residential mortgage	188		187		145
Automobile	142		141		108
Home equity	114		105		88
RV and marine	148		143		105
Other consumer	100		121		122
Total consumer	692		697		568
Total allowance for loan and lease losses	2,255		2,121		2,030
Allowance for unfunded lending commitments	145		150		77
Total allowance for credit losses	$	2,400	$	2,271	$	2,107

Huntington Bancshares Incorporated

Annual Net Charge-Off Analysis

(Unaudited)


	Year Ended December 31,
(dollar amounts in millions)	2023			2022			2021
Net charge-offs (recoveries) by loan and lease type:
Commercial:
Commercial and industrial	$	107		$	(2)		$	99



Commercial real estate	57			8			17
Lease financing	(6)			9			44
Total commercial	158			15			160
Consumer:
Residential mortgage	2			(2)			(1)
Automobile	21			6			(6)
Home equity	(1)			(5)			(5)
RV and marine	12			8			5
Other consumer	81			99			62
Total consumer	115			106			55
Total net charge-offs	$	273		$	121		$	215

Net charge-offs (recoveries) - annualized percentages:
Commercial:
Commercial and industrial	0.22		%	—		%	0.26		%



Commercial real estate	0.43			0.06			0.16
Lease financing	(0.12)			0.18			1.18
Total commercial	0.23			0.03			0.31
Consumer:
Residential mortgage	0.01			(0.01)			—
Automobile	0.16			0.05			(0.05)
Home equity	(0.01)			(0.05)			(0.05)
RV and marine	0.21			0.15			0.10
Other consumer	6.03			7.55			5.56
Total consumer	0.22			0.21			0.12
Net charge-offs as a % of average loans	0.23		%	0.11		%	0.22		%

Huntington Bancshares Incorporated

Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (1)

(Unaudited)


	December 31,
(dollar amounts in millions)	2023			2022			2021
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	344		$	288		$	370
Commercial real estate	140			92			104
Lease financing	14			18			48
Residential mortgage	72			90			111
Automobile	4			4			3
Home equity	91			76			79
RV and marine	2			1			1

Total nonaccrual loans and leases	667			569			716

Other real estate, net:
Residential	10			11			8
Commercial	—			—			1
Total other real estate, net	10			11			9
Other NPAs (1)	34			14			25
Total nonperforming assets (2)	$	711		$	594		$	750

Nonaccrual loans and leases as a % of total loans and leases	0.55		%	0.48		%	0.64		%
NPA ratio (3)	0.58			0.50			0.67


	December 31,
(dollar amounts in millions)	2023		2022		2021
Nonperforming assets, beginning of period	$	594	$	750	$	563
New nonperforming assets	977		755		586
Returns to accruing status	(177)		(264)		(303)
Loan and lease losses	(231)		(151)		(215)
Payments	(425)		(485)		(416)
Sales and held-for-sale transfers	(27)		(11)		(94)
Acquired NPAs	—		—		629
Nonperforming assets, end of period (2)	$	711	$	594	$	750

(1)December 31, 2021 generally excludes loans and leases that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.

(2)Other nonperforming assets include certain impaired securities and/or nonaccrual loans held-for-sale.

(3)Nonperforming assets divided by the sum of loans and leases, net other real estate owned, and other NPAs.