Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2022
BankingRegulation [Abstract]  
Huntington and the Bank are subject to certain risk-based capital and leverage ratio requirements under the U.S. Basel III capital rules adopted by the Federal Reserve, for Huntington, and by the OCC, for the Bank. These rules implement the Basel III international regulatory capital standards in the United States, as well as certain provisions of the Dodd-Frank Act. These quantitative calculations are minimums, and the Federal Reserve and OCC may determine that a banking organization, based on its size, complexity, or risk profile, must maintain a higher level of capital in order to operate in a safe and sound manner. Under the U.S. Basel III capital rules, Huntington’s and the Bank’s assets, exposures and certain off-balance sheet items are subject to risk weights used to determine the institutions’ risk-weighted assets.
Failure to be well-capitalized or to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on our operations or financial condition. Failure to be well-capitalized or to meet minimum capital requirements could also result in restrictions on Huntington’s or the Bank’s ability to pay dividends or otherwise distribute capital or to receive regulatory approval of applications.
In addition to meeting the minimum capital requirements, under the U.S. Basel III capital rules Huntington and the Bank must also maintain the applicable capital buffer requirements, SCB or CCB, to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management.
As of December 31, 2022, Huntington’s and the Bank’s regulatory capital ratios were above the well-capitalized standards and met the applicable capital buffer requirements. Please refer to the table below for a summary of Huntington’s and the Bank’s regulatory capital ratios.
Minimum Minimum Ratio+ Basel III
Regulatory Capital Buffer (1) Well- At December 31,
Capital At December 31, Capitalized 2022 2021
(dollar amounts in millions) Ratios 2022 2021 Minimums Ratio Amount Ratio Amount
CET1 risk-based capital Consolidated 4.50  % 7.80  % 7.00  % N/A 9.36  % $ 13,290  9.33  % $ 12,249 
Bank 4.50  7.00  7.00  6.50  % 9.98  14,133  10.15  13,261 
Tier 1 risk-based capital Consolidated 6.00  9.30  8.50  6.00  10.90  15,467  10.99  14,426 
Bank 6.00  8.50  8.50  8.00  10.83  15,334  11.06  14,445 
Total risk-based capital Consolidated 8.00  11.30  10.50  10.00  13.09  18,573  13.14  17,246 
Bank 8.00  10.50  10.50  10.00  12.47  17,647  12.58  16,427 
Tier 1 leverage Consolidated 4.00  N/A N/A N/A 8.60  15,467  8.56  14,426 
Bank 4.00  N/A N/A 5.00  8.54  15,334  8.60  14,445 
(1)    The SCB, applicable to Huntington, was 3.3% and 2.5% at December 31, 2022 and December 31, 2021, respectively. The CCB, applicable to the Bank, was 2.5% at both December 31, 2022 and December 31, 2021.
Huntington and its subsidiaries are also subject to various regulatory requirements that impose restrictions on cash, debt, and dividends. The Bank is required to maintain cash reserves based on the level of certain of its deposits. This reserve requirement may be met by holding cash in banking offices or on deposit at the Federal Reserve Bank. At December 31, 2022, the balance of these deposits was $4.9 billion.
Under current Federal Reserve regulations, the Bank is limited as to the amount and type of loans it may make to the parent company and nonbank subsidiaries. At December 31, 2022, the Bank could lend $1.8 billion to a single affiliate, subject to the qualifying collateral requirements defined in the regulations.
Dividends from the Bank are one of the major sources of funds for the Company. These funds aid the Company in the payment of dividends to shareholders, expenses, and other obligations. Payment of dividends and/or return of capital to the parent company is subject to various legal and regulatory limitations. Also, there are statutory and regulatory limitations on the ability of national banks to pay dividends or make other capital distributions