LOANS AND LEASES

v3.24.2

LOANS AND LEASES	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
LOANS AND LEASES	LOANS AND LEASES The following table provides a detailed listing of Huntington’s loan and lease portfolio. (dollar amounts in millions) At June 30, 2024 At December 31, 2023 Commercial loan and lease portfolio: Commercial and industrial $ 52,307  $ 50,657  Commercial real estate 11,933  12,422  Lease financing 5,202  5,228  Total commercial loan and lease portfolio 69,442  68,307  Consumer loan portfolio: Residential mortgage 24,069  23,720  Automobile 13,233  12,482  Home equity 10,076  10,113  RV and marine 6,042  5,899  Other consumer 1,560  1,461  Total consumer loan portfolio 54,980  53,675  Total loans and leases (1)(2) 124,422  121,982  Allowance for loan and lease losses (2,304) (2,255) Net loans and leases $ 122,118  $ 119,727  (1)Loans and leases are reported at principal amount outstanding including unamortized purchase premiums and discounts, unearned income, and net direct fees and costs associated with originating and acquiring loans and leases. The aggregate amount of these loan and lease adjustments was a net discount of $354 million and $323 million at June 30, 2024 and December 31, 2023, respectively. (2)The total amount of accrued interest recorded for these loans and leases at June 30, 2024 was $325 million and $221 million of commercial and consumer loan and lease portfolios, respectively, and at December 31, 2023 was $333 million and $220 million of commercial and consumer loan and lease portfolios, respectively. Accrued interest is presented in accrued income and other receivables within the Unaudited Consolidated Balance Sheets. Lease Financing The following table presents net investments in lease financing receivables by category. (dollar amounts in millions) At June 30, 2024 At December 31, 2023 Lease payments receivable $ 4,976  $ 4,980  Estimated residual value of leased assets 813  804  Gross investment in lease financing receivables 5,789  5,784  Deferred origination costs 54  54  Deferred fees, unearned income and other (641) (610) Total lease financing receivables $ 5,202  $ 5,228  The carrying value of residual values guaranteed was $479 million and $478 million as of June 30, 2024 and December 31, 2023, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at June 30, 2024, totaled $5.0 billion and were due as follows: $557 million in 2024, $895 million in 2025, $855 million in 2026, $865 million in 2027, $875 million in 2028, and $929 million thereafter. Interest income recognized for these types of leases was $81 million and $70 million for the three-month periods ended June 30, 2024 and 2023, respectively. For the six-month periods ended June 30, 2024 and 2023, interest income recognized for these types of leases was $160 million and $138 million, respectively. Nonaccrual and Past Due Loans and Leases The following table presents NALs by class. At June 30, 2024 At December 31, 2023 (dollar amounts in millions) Nonaccrual loans and leases with no ACL Total nonaccrual loans and leases Nonaccrual loans and leases with no ACL Total nonaccrual loans and leases Commercial and industrial $ 68  $ 346  $ 66  $ 344  Commercial real estate 69  194  64  140  Lease financing —  13  3  14  Residential mortgage —  80  —  72  Automobile —  4  —  4  Home equity —  95  —  91  RV and marine —  1  —  2  Total nonaccrual loans and leases $ 137  $ 733  $ 133  $ 667  The following tables present an aging analysis of loans and leases, by class. Past Due (1)  Loans Accounted for Under FVO Total Loans and Leases 90 or more days past due and accruing (dollar amounts in millions) 30-59  Days 60-89  Days 90 or  more days Total Current At June 30, 2024 Commercial and industrial $ 80  $ 35  $ 141  $ 256  $ 52,051  $ —  $ 52,307  $ 1  (2) Commercial real estate 4  10  94  108  11,825  —  11,933  —  Lease financing 40  12  5  57  5,145  —  5,202  4  Residential mortgage 218  79  187  484  23,410  175  24,069  138  (3) Automobile 88  20  11  119  13,114  —  13,233  8  Home equity 65  29  80  174  9,902  —  10,076  18  RV and marine 19  5  4  28  6,014  —  6,042  3  Other consumer 13  5  4  22  1,538  —  1,560  3  Total loans and leases $ 527  $ 195  $ 526  $ 1,248  $ 122,999  $ 175  $ 124,422  $ 175  At December 31, 2023 Commercial and industrial $ 90  $ 48  $ 90  $ 228  $ 50,429  $ —  $ 50,657  $ 1  (2) Commercial real estate 28  20  32  80  12,342  —  12,422  —  Lease financing 35  15  9  59  5,169  —  5,228  4  Residential mortgage 205  88  193  486  23,060  174  23,720  146  (3) Automobile 89  23  12  124  12,358  —  12,482  9  Home equity 66  32  83  181  9,932  —  10,113  22  RV and marine 17  5  4  26  5,873  —  5,899  3  Other consumer 13  4  4  21  1,440  —  1,461  4  Total loans and leases $ 543  $ 235  $ 427  $ 1,205  $ 120,603  $ 174  $ 121,982  $ 189  (1)NALs are included in this aging analysis based on the loan’s past due status. (2)Amounts include SBA loans and leases. (3)Amounts include mortgage loans insured by U.S. government agencies. Credit Quality Indicators See Note 5 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2023 Annual Report on Form 10-K for a description of the credit quality indicators Huntington utilizes for monitoring credit quality and for determining an appropriate ACL level. For all classes within the consumer loan portfolios, borrower credit bureau scores are monitored as an indicator of credit quality. A credit bureau score is a credit score developed by FICO based on data provided by the credit bureaus. The credit bureau score is widely accepted as the standard measure of consumer credit risk used by lenders, regulators, rating agencies, and consumers. The higher the credit bureau score, the higher likelihood of repayment and therefore, an indicator of higher credit quality. Huntington assesses the risk in the loan portfolio by utilizing numerous risk characteristics. The classifications described above, and also presented in the table below, represent one of those characteristics that are closely monitored in the overall credit risk management processes. The following tables present the amortized cost basis of loans and leases by vintage and credit quality indicator. At June 30, 2024 Term Loans Amortized Cost Basis by Origination Year Revolver Total at Amortized Cost Basis Revolver Total Converted to Term Loans (dollar amounts in millions) 2024 2023 2022 2021 2020 Prior Total Commercial and industrial Credit Quality Indicator (1): Pass $ 8,164  $ 10,077  $ 7,883  $ 2,992  $ 1,870  $ 2,137  $ 15,943  $ 5  $ 49,071  OLEM 66  242  123  53  17  30  259  —  790  Substandard 205  372  495  176  101  197  900  —  2,446  Total Commercial and industrial $ 8,435  $ 10,691  $ 8,501  $ 3,221  $ 1,988  $ 2,364  $ 17,102  $ 5  $ 52,307  Commercial real estate Credit Quality Indicator (1): Pass $ 625  $ 1,246  $ 3,119  $ 1,490  $ 1,058  $ 2,134  $ 531  $ —  $ 10,203  OLEM 25  25  387  173  1  81  60  —  752  Substandard 126  174  249  174  23  217  15  —  978  Total Commercial real estate $ 776  $ 1,445  $ 3,755  $ 1,837  $ 1,082  $ 2,432  $ 606  $ —  $ 11,933  Lease financing Credit Quality Indicator (1): Pass $ 851  $ 1,804  $ 1,072  $ 674  $ 449  $ 221  $ —  $ —  $ 5,071  OLEM 1  14  16  3  6  9  —  —  49  Substandard 1  17  34  12  7  11  —  —  82  Total Lease financing $ 853  $ 1,835  $ 1,122  $ 689  $ 462  $ 241  $ —  $ —  $ 5,202  Residential mortgage Credit Quality Indicator (2): 750+ $ 802  $ 2,379  $ 4,048  $ 5,872  $ 3,167  $ 2,771  $ —  $ —  $ 19,039  650-749 343  651  809  840  462  855  —  —  3,960  <650 21  43  98  102  64  567  —  —  895  Total Residential mortgage $ 1,166  $ 3,073  $ 4,955  $ 6,814  $ 3,693  $ 4,193  $ —  $ —  $ 23,894  Automobile Credit Quality Indicator (2): 750+ $ 2,155  $ 1,997  $ 1,683  $ 1,230  $ 532  $ 246  $ —  $ —  $ 7,843  650-749 1,078  1,302  947  639  246  117  —  —  4,329  <650 114  259  279  245  99  65  —  —  1,061  Total Automobile $ 3,347  $ 3,558  $ 2,909  $ 2,114  $ 877  $ 428  $ —  $ —  $ 13,233  Home equity Credit Quality Indicator (2): 750+ $ 99  $ 376  $ 405  $ 483  $ 502  $ 228  $ 4,487  $ 227  $ 6,807  650-749 41  102  86  54  48  89  2,019  223  2,662  <650 1  5  9  5  4  43  409  131  607  Total Home equity $ 141  $ 483  $ 500  $ 542  $ 554  $ 360  $ 6,915  $ 581  $ 10,076  RV and marine Credit Quality Indicator (2): 750+ $ 605  $ 1,010  $ 897  $ 784  $ 529  $ 799  $ —  $ —  $ 4,624  650-749 117  317  216  224  136  258  —  —  1,268  <650 1  16  20  32  22  59  —  —  150  Total RV and marine $ 723  $ 1,343  $ 1,133  $ 1,040  $ 687  $ 1,116  $ —  $ —  $ 6,042  Other consumer Credit Quality Indicator (2): 750+ $ 160  $ 126  $ 65  $ 30  $ 14  $ 54  $ 435  $ —  $ 884  650-749 66  72  30  12  3  12  393  11  599  <650 2  9  6  2  1  2  41  14  77  Total Other consumer $ 228  $ 207  $ 101  $ 44  $ 18  $ 68  $ 869  $ 25  $ 1,560  At December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolver Total at Amortized Cost Basis Revolver Total Converted to Term Loans (dollar amounts in millions) 2023 2022 2021 2020 2019 Prior Total Commercial and industrial Credit Quality Indicator (1): Pass $ 14,677  $ 9,889  $ 3,673  $ 2,151  $ 1,187  $ 1,431  $ 14,563  $ 3  $ 47,574  OLEM 213  239  64  20  12  20  462  —  1,030  Substandard 393  305  188  150  83  184  750  —  2,053  Total Commercial and industrial $ 15,283  $ 10,433  $ 3,925  $ 2,321  $ 1,282  $ 1,635  $ 15,775  $ 3  $ 50,657  Commercial real estate Credit Quality Indicator (1): Pass $ 1,395  $ 3,253  $ 1,774  $ 1,063  $ 1,152  $ 1,288  $ 585  $ —  $ 10,510  OLEM 163  406  112  65  32  54  60  —  892  Substandard 164  404  176  10  137  114  15  —  1,020  Total Commercial real estate $ 1,722  $ 4,063  $ 2,062  $ 1,138  $ 1,321  $ 1,456  $ 660  $ —  $ 12,422  Lease financing Credit Quality Indicator (1): Pass $ 1,973  $ 1,284  $ 828  $ 583  $ 243  $ 106  $ —  $ —  $ 5,017  OLEM 16  22  6  5  2  9  —  —  60  Substandard 20  66  31  16  13  5  —  —  151  Total Lease financing $ 2,009  $ 1,372  $ 865  $ 604  $ 258  $ 120  $ —  $ —  $ 5,228  Residential mortgage Credit Quality Indicator (2): 750+ $ 2,077  $ 3,963  $ 6,028  $ 3,292  $ 749  $ 2,191  $ —  $ —  $ 18,300  650-749 950  1,024  964  510  186  775  —  —  4,409  <650 24  79  82  64  85  503  —  —  837  Total Residential mortgage $ 3,051  $ 5,066  $ 7,074  $ 3,866  $ 1,020  $ 3,469  $ —  $ —  $ 23,546  Automobile Credit Quality Indicator (2): 750+ $ 2,624  $ 1,964  $ 1,525  $ 740  $ 367  $ 85  $ —  $ —  $ 7,305  650-749 1,438  1,305  907  370  168  53  —  —  4,241  <650 170  281  266  118  64  37  —  —  936  Total Automobile $ 4,232  $ 3,550  $ 2,698  $ 1,228  $ 599  $ 175  $ —  $ —  $ 12,482  Home equity Credit Quality Indicator (2): 750+ $ 381  $ 429  $ 512  $ 534  $ 17  $ 244  $ 4,454  $ 233  $ 6,804  650-749 136  100  65  57  7  101  2,083  230  2,779  <650 2  6  3  3  2  43  344  127  530  Total Home equity $ 519  $ 535  $ 580  $ 594  $ 26  $ 388  $ 6,881  $ 590  $ 10,113  RV and marine Credit Quality Indicator (2): 750+ $ 1,206  $ 971  $ 867  $ 588  $ 295  $ 612  $ —  $ —  $ 4,539  650-749 289  248  252  158  91  210  —  —  1,248  <650 4  12  21  18  14  43  —  —  112  Total RV and marine $ 1,499  $ 1,231  $ 1,140  $ 764  $ 400  $ 865  $ —  $ —  $ 5,899  Other consumer Credit Quality Indicator (2): 750+ $ 186  $ 80  $ 39  $ 19  $ 17  $ 48  $ 424  $ 3  $ 816  650-749 98  43  17  6  5  12  383  13  577  <650 4  5  3  1  1  1  39  14  68  Total Other consumer $ 288  $ 128  $ 59  $ 26  $ 23  $ 61  $ 846  $ 30  $ 1,461  (1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades. (2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly. The following tables present the gross charge-offs of loans and leases by vintage. Term Loans Gross Charge-offs by Origination Year Revolver Gross Charge-offs Revolver Converted to Term Loans Gross Charge-offs (dollar amounts in millions) 2024 2023 2022 2021 2020 Prior Total Three months ended June 30, 2024 Commercial and industrial $ —  $ 5  $ 19  $ 7  $ —  $ 2  $ 10  $ —  $ 43  Commercial real estate 9  1  21  1  —  18  —  —  50  Lease financing —  1  1  —  —  —  —  —  2  Residential mortgage —  —  —  —  —  1  —  —  1  Automobile —  4  4  3  1  2  —  —  14  Home equity —  —  —  —  —  —  1  1  2  RV and marine —  —  1  1  1  3  —  —  6  Other consumer 2  6  3  2  1  4  —  9  27  Total $ 11  $ 17  $ 49  $ 14  $ 3  $ 30  $ 11  $ 10  $ 145  Six months ended June 30, 2024 Commercial and industrial $ —  $ 10  $ 30  $ 22  $ 11  $ 4  $ 20  $ 1  $ 98  Commercial real estate 9  2  30  2  —  24  —  —  67  Lease financing —  1  1  1  —  1  —  —  4  Residential mortgage —  —  —  —  —  2  —  —  2  Automobile —  8  9  7  3  2  —  —  29  Home equity —  —  —  —  —  —  1  3  4  RV and marine —  1  2  3  2  6  —  —  14  Other consumer 3  13  8  4  2  7  —  18  55  Total $ 12  $ 35  $ 80  $ 39  $ 18  $ 46  $ 21  $ 22  $ 273  Term Loans Gross Charge-offs by Origination Year Revolver Gross Charge-offs Revolver Converted to Term Loans Gross Charge-offs (dollar amounts in millions) 2023 2022 2021 2020 2019 Prior Total Three months ended June 30, 2023 Commercial and industrial $ 1  $ 4  $ 14  $ —  $ 8  $ 10  $ —  $ 1  $ 38  Commercial real estate —  3  —  —  5  5  —  —  13  Lease Financing —  1  1  —  —  —  —  —  2  Residential mortgage —  —  —  —  —  1  —  —  1  Automobile —  3  4  2  2  —  —  —  11  Home equity —  —  —  —  —  1  —  1  2  RV and marine —  1  —  —  —  3  —  —  4  Other consumer 2  5  3  2  2  1  —  6  21  Total $ 3  $ 17  $ 22  $ 4  $ 17  $ 21  $ —  $ 8  $ 92  Six months ended June 30, 2023 Commercial and industrial $ 2  $ 18  $ 17  $ 6  $ 12  $ 10  $ 4  $ 1  $ 70  Commercial real estate —  3  19  —  5  5  —  —  32  Lease financing —  1  1  —  —  1  —  —  3  Residential mortgage —  —  1  —  —  2  —  —  3  Automobile —  6  8  4  3  2  —  —  23  Home equity —  —  —  —  —  1  1  2  4  RV and marine —  1  1  1  1  4  —  —  8  Other consumer 3  13  8  3  3  5  —  13  48  Total $ 5  $ 42  $ 55  $ 14  $ 24  $ 30  $ 5  $ 16  $ 191  Modifications to Debtors Experiencing Financial Difficulty See Note 5 - “Loans and Leases” to the Consolidated Financial Statements appearing in Huntington’s 2023 Annual Report on Form 10-K for a description of reported modification types and the impact on credit quality of borrowers experiencing financial difficulty. The following table summarizes the amortized cost basis of loans modified during the reporting period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification. Amortized Cost (dollar amounts in millions) Interest rate reduction Term extension Payment deferral Combo - interest rate reduction and term extension Total % of total loan class (1) Three months ended June 30, 2024 Commercial and industrial $ 34  $ 116  $ —  $ 41  $ 191  0.37  % Commercial real estate —  184  —  14  198  1.66  Residential mortgage —  15  1  1  17  0.07  Automobile —  4  —  —  4  0.03  Home equity —  2  —  2  4  0.04  Other consumer 1  —  —  —  1  0.06  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 35  $ 321  $ 1  $ 58  $ 415  0.33  % Three months ended June 30, 2023 Commercial and industrial $ —  $ 138  $ —  $ —  $ 138  0.28  % Commercial real estate —  134  —  —  134  1.02  Residential mortgage —  12  2  1  15  0.06  Automobile —  4  —  1  5  0.04  Home equity —  1  —  3  4  0.04  Other consumer 1  —  —  —  1  0.07  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 1  $ 289  $ 2  $ 5  $ 297  0.26  % Six months ended June 30, 2024 Commercial and industrial $ 84  $ 144  $ —  $ 42  $ 270  0.52  % Commercial real estate —  198  —  14  212  1.78  Residential mortgage —  23  4  1  28  0.12  Automobile —  7  —  1  8  0.06  Home equity —  3  —  6  9  0.09  Other consumer 1  —  —  —  1  0.06  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 85  $ 375  $ 4  $ 64  $ 528  0.42  % Six months ended June 30, 2023 Commercial and industrial $ 35  $ 198  $ —  $ 3  $ 236  0.47  % Commercial real estate —  148  —  —  148  1.12  Residential mortgage —  35  2  2  39  0.17  Automobile —  7  —  1  8  0.06  Home equity —  1  —  5  6  0.06  RV and marine —  1  —  —  1  0.02  Other consumer 1  —  —  —  1  0.07  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 36  $ 390  $ 2  $ 11  $ 439  0.38  % (1)Represents the amortized cost of loans modified during the reporting period as a percentage of the period-end loan balance by class. The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty. Interest Rate Reduction (1) Term Extension (1) Weighted-average contractual interest rate Weighted-average years added to the life From To Three months ended June 30, 2024 Commercial and industrial 8.46  % 8.21  % 0.7 Commercial real estate 7.98  % 7.85  % 0.4 Residential mortgage 7.4 Three months ended June 30, 2023 Commercial and industrial 0.7 Commercial real estate 0.5 Residential mortgage 8.8 Six months ended June 30, 2024 Commercial and industrial 8.40  % 7.57  % 0.8 Commercial real estate 7.98  % 7.85  % 0.4 Residential mortgage 7.6 Automobile 1.6 Home equity 9.28  % 6.69  % 12.9 Six months ended June 30, 2023 Commercial and industrial 7.68  % 6.94  % 0.9 Commercial real estate 0.5 Residential mortgage 7.2 Automobile 2.0 Home equity 8.37  % 5.86  % 15.5 (1)     Certain disclosures related to financial effects of modifications do not include those deemed to be immaterial. The performance of loans made to borrowers experiencing financial difficulty in which modifications were made is closely monitored to understand the effectiveness of modification efforts. Loans are considered to be in payment default at 90 or more days past due. The following table depicts the performance of loans that have been modified during the identified period. Past Due (dollar amounts in millions) 30-59  Days 60-89  Days 90 or  more days Total Current Total At June 30, 2024 Commercial and industrial $ 16  $ 1  $ 7  $ 24  $ 396  $ 420  Commercial real estate —  —  4  4  244  248  Residential mortgage 9  6  8  23  29  52  Automobile 2  1  —  3  12  15  Home equity 1  1  2  4  11  15  RV and marine —  —  —  —  1  1  Other consumer —  —  —  —  2  2  Total loans to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended June 30, 2024 $ 28  $ 9  $ 21  $ 58  $ 695  $ 753  At June 30, 2023 (1) Commercial and industrial $ 1  $ 1  $ —  $ 2  $ 234  $ 236  Commercial real estate —  —  —  —  148  148  Residential mortgage 7  3  4  14  25  39  Automobile 1  —  —  1  7  8  Home equity 1  —  —  1  5  6  RV and marine —  —  —  —  1  1  Other consumer —  —  —  —  1  1  Total loans to borrowers experiencing financial difficulty in which modifications were made in the six months ended June 30, 2023 (1) $ 10  $ 4  $ 4  $ 18  $ 421  $ 439  (1)     Huntington adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023, therefore, the June 30, 2023 presentation only includes loans since guidance became effective. Pledged Loans The Bank has access to secured borrowings from the Federal Reserve’s discount window and advances from the FHLB. As of June 30, 2024 and December 31, 2023, loans and leases totaling $101.2 billion and $101.8 billion, respectively, were pledged to the Federal Reserve and FHLB for access to these contingent funding sources.