Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.24.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Huntington’s business segments are based on our internally-aligned segment leadership structure, which is how management monitors results and assesses performance. Huntington completed an organizational realignment during the 2023 second quarter and now reports on two business segments: Consumer & Regional Banking and Commercial Banking. The organizational realignment primarily involved consolidating our previously reported Consumer and Business Banking, Vehicle Finance and RBHPCG, into one new business segment called Consumer & Regional Banking. Prior period results have been adjusted to conform to the new segment presentation.
The following is a description of our business segments and the Treasury / Other function:
Consumer & Regional Banking - Consumer & Regional Banking offers a comprehensive set of digitally powered consumer and business financial solutions to Consumer Lending, Regional Banking, Branch Banking, and Wealth Management customers. The Consumer & Regional Banking segment provides a wide array of financial products and services to consumer and business customers including, but not limited to, deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services. We serve our customers through our network of channels, including branches and ATMs, online and mobile banking, and through our customer call centers.
Commercial Banking - The Commercial Banking segment provides expertise through bankers, capabilities, and digital channels, which include a comprehensive set of product offerings. Our target clients span from mid-market to large corporates across a national footprint. The Commercial Banking segment leverages internal partnerships for wealth management, trust, insurance, payments, and treasury management capabilities. In particular, our payment capabilities continue to expand as we develop unique solutions for our diverse client segments, including Huntington ChoicePay. This segment includes customers in Middle Market Banking, Corporate, Specialty, and Government Banking, Asset Finance, Commercial Real Estate Banking, and Capital Markets.
Treasury / Other - The Treasury / Other function includes technology and operations, and other unallocated assets, liabilities, revenue, and expense.
Business segment results are determined based upon Huntington’s management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.
Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is recorded to allocate portions of such revenue to other business segments involved in selling to, or providing service to, customers. Results of operations for the business segments reflect these fee sharing allocations.
The management process that develops the business segment reporting utilizes various estimates and allocation methodologies to measure the performance of the business segments. Expenses are allocated to business segments using a two-phase approach. The first phase consists of measuring and assigning unit costs (activity-based costs) to activities related to product origination and servicing. These activity-based costs are then extended, based on volumes, with the resulting amount allocated to business segments that own the related products. The second phase consists of the allocation of overhead costs to the business segments from Treasury / Other. Huntington utilizes a full-allocation methodology, where all Treasury / Other expenses, except reported acquisition-related net expenses, if any, and a small amount of other residual unallocated expenses, are allocated to the business segments.
The management policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures result in changes in reported segment financial data.
Huntington uses an active and centralized FTP methodology to attribute appropriate net interest income to the business segments. The intent of the FTP methodology is to transfer interest rate risk from the business segments by providing matched duration funding of assets and liabilities. The result is to centralize the financial impact, management, and reporting of interest rate risk in the Treasury / Other function where it can be centrally monitored and managed. The Treasury / Other function charges (credits) an internal cost of funds for assets held in (or pays for funding provided by) each business segment. During the fourth quarter of 2023, we revised our FTP methodology for non-maturity deposits, which has been enhanced to consider the internally modeled weighted average life by non-maturity deposit type. Prior period results have been adjusted to conform to the revised FTP methodology.
Listed in the table below is certain operating basis financial information reconciled to Huntington’s, reported results by business segment.
Income Statements
(dollar amounts in millions)
 Consumer & Regional Banking Commercial Banking Treasury / Other
Huntington
Consolidated
Year Ended December 31, 2023
Net interest income (loss) $ 3,717  $ 2,162  $ (440) $ 5,439 
Provision for credit losses 246  156  —  402 
Noninterest income 1,257  646  18  1,921 
Noninterest expense 3,064  1,134  376  4,574 
Provision (benefit) for income taxes 349  319  (255) 413 
Income attributable to non-controlling interest —  20  —  20 
Net income (loss) attributable to Huntington Bancshares Inc $ 1,315  $ 1,179  $ (543) $ 1,951 
Year Ended December 31, 2022
Net interest income $ 3,213  $ 1,807  $ 253  $ 5,273 
Provision for credit losses 260  29  —  289 
Noninterest income 1,272  667  42  1,981 
Noninterest expense 2,924  1,056  221  4,201 
Provision (benefit) for income taxes 274  292  (51) 515 
Income attributable to non-controlling interest —  10  1  11 
Net income attributable to Huntington Bancshares Inc $ 1,027  $ 1,087  $ 124  $ 2,238 
Year Ended December 31, 2021
Net interest income (loss) $ 3,103  $ 1,483  $ (484) $ 4,102 
Provision for credit losses 2  23  —  25 
Noninterest income 1,289  519  81  1,889 
Noninterest expense 2,698  787  890  4,375 
Provision (benefit) for income taxes 355  251  (312) 294 
Income attributable to non-controlling interest —  2  —  2 
Net income (loss) attributable to Huntington Bancshares Inc $ 1,337  $ 939  $ (981) $ 1,295 
 
Assets at
December 31,
Deposits at
December 31,
(dollar amounts in millions) 2023 2022 2023 2022
Consumer & Regional Banking $ 73,082  $ 70,268  $ 110,157  $ 105,064 
Commercial Banking 63,377  63,611  35,466  36,807 
Treasury / Other 52,909  49,027  5,607  6,043 
Total $ 189,368  $ 182,906  $ 151,230  $ 147,914