Huntington Bancshares Incorporated Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

VIEs (Tables)

VIEs (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Carrying amount and classification of the trusts assets and liabilities, and affordable housing tax credit investments

The following tables provide a summary of the assets and liabilities included in Huntington’s Consolidated Financial Statements, as well as the maximum exposure to losses, associated with its interests related to unconsolidated VIEs for which Huntington holds an interest in, but is not the primary beneficiary of, the VIE at December 31, 2021, and 2020:


	December 31, 2021
(dollar amounts in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss

Affordable Housing Tax Credit Partnerships	$	1,652	$	949	$	1,652
Trust Preferred Securities	14		248		—
Other Investments	484		146		484
Total	$	2,150	$	1,343	$	2,136


	December 31, 2020
(dollar amounts in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
Affordable Housing Tax Credit Partnerships	$	956	$	500	$	956
Trust Preferred Securities	14		252		—

Other Investments	308		72		308
Total	$	1,278	$	824	$	1,264

The following table presents the balances of Huntington’s affordable housing tax credit investments and related unfunded commitments at December 31, 2021 and 2020.


(dollar amounts in millions)	December 31, 2021		December 31, 2020
Affordable housing tax credit investments	$	2,376	$	1,568
Less: amortization	(724)		(612)
Net affordable housing tax credit investments	$	1,652	$	956
Unfunded commitments	$	949	$	500

The following table presents other information relating to Huntington’s affordable housing tax credit investments for the years ended December 31, 2021, 2020, and 2019:


	Year Ended December 31,
(dollar amounts in millions)	2021		2020		2019
Tax credits and other tax benefits recognized	$	144	$	113	$	98
Proportional amortization expense included in provision for income taxes	126		97		84

There were no sales of affordable housing tax credit investments during the years ended December 31, 2021 and 2020, and 2019. There was no impairment recognized for the years ended December 31, 2021 and 2020, and 2019.

Summary of outstanding trust preferred securities

Huntington’s long-term debt consisted of the following:


	At December 31,
(dollar amounts in millions)	2021		2020
The Parent Company:
Senior Notes:
3.19% Huntington Bancshares Incorporated medium-term notes due 2021	$	—	$	802
2.33% Huntington Bancshares Incorporated senior notes due 2022	—		699
2.67% Huntington Bancshares Incorporated senior notes due 2024	812		838
4.05% Huntington Bancshares Incorporated senior notes due 2025	527		553
2.60% Huntington Bancshares Incorporated senior notes due 2030	744		743
Subordinated Notes:
3.55% Huntington Bancshares Incorporated subordinated notes due 2023	227		256
Huntington Capital I Trust Preferred 0.91% junior subordinated debentures due 2027 (1)	69		69
Huntington Capital II Trust Preferred 0.83% junior subordinated debentures due 2028 (2)	32		32
Sky Financial Capital Trust III 1.61% junior subordinated debentures due 2036 (3)	72		72
Sky Financial Capital Trust IV 1.61% junior subordinated debentures due 2036 (3)	74		74
2.54% Huntington Bancshares Incorporated subordinated notes due 2036	554		—
Camco Financial Statutory Trust I 1.57% due 2037	—		4
Total notes issued by the parent	3,111		4,142
The Bank:
Senior Notes:
0.79% Huntington National Bank senior notes due 2021	—		298
3.33% Huntington National Bank senior notes due 2021	—		752
2.55% Huntington National Bank senior notes due 2022	703		710
3.16% Huntington National Bank senior notes due 2022	500		511
1.83% Huntington National Bank senior notes due 2023	483		489
3.60% Huntington National Bank senior notes due 2023	748		773

Subordinated Notes:

0.64% Huntington National Bank subordinated notes due 2022	113		—
0.96% Huntington National Bank subordinated notes due 2025	142		—
3.86% Huntington National Bank subordinated notes due 2026	226		233
3.03% Huntington National Bank subordinated notes due 2029	161		—
3.75% Huntington National Bank subordinated notes due 2030	169		—
Total notes issued by the bank	3,245		3,766
FHLB Advances:
1.04% weighted average rate, varying maturities greater than one year	215		3
Other:
Huntington Technology Finance nonrecourse debt, 3.15% weighted average interest rate, varying maturities	287		266

2.09% Huntington Preferred Capital II - Class F securities (4)	75		75
2.09% Huntington Preferred Capital II - Class G securities (4)	50		50
2.21% Huntington Preferred Capital II - Class I securities (5)	50		50
2.65% Huntington Preferred Capital II - Class J Securities (6)	75		—

Total long-term debt	$	7,108	$	8,352

(1)Variable effective rate at December 31, 2021, based on three-month LIBOR +0.70%

(2)Variable effective rate at December 31, 2021, based on three-month LIBOR +0.625%

(3)Variable effective rate at December 31, 2021, based on three-month LIBOR +1.40%

(4)Variable effective rate at December 31, 2021, based on three-month LIBOR +1.88%

(5)Variable effective rate at December 31, 2021, based on three-month LIBOR +2.00%

(6)Variable effective rate at December 31, 2021 based on three-month SOFR +2.60%

The trust securities are the obligations of the trusts, and as such, are not consolidated within Huntington’s Consolidated Financial Statements.

A list of trust-preferred securities outstanding at December 31, 2021 follows:


(dollar amounts in millions)	Rate			Principal amount of subordinated note/ debenture issued to trust (1)		Investment in unconsolidated subsidiary
Huntington Capital I	0.91	%	(2)	$	70	$	7
Huntington Capital II	0.83		(3)	32		3
Sky Financial Capital Trust III	1.61		(4)	72		2
Sky Financial Capital Trust IV	1.61		(4)	74		2

Total				$	248	$	14

(1)Represents the principal amount of debentures issued to each trust, including unamortized original issue discount.

(2)Variable effective rate at December 31, 2021, based on three-month LIBOR + 0.70%.

(3)Variable effective rate at December 31, 2021, based on three-month LIBOR + 0.625%.

(4)Variable effective rate at December 31, 2021, based on three-month LIBOR + 1.40%.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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