LOANS AND LEASES

v3.24.3

LOANS AND LEASES	9 Months Ended
	Sep. 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 September 30, 2024 At December 31, 2023 Commercial loan and lease portfolio: Commercial and industrial $ 53,601  $ 50,657  Commercial real estate 11,543  12,422  Lease financing 5,342  5,228  Total commercial loan and lease portfolio 70,486  68,307  Consumer loan portfolio: Residential mortgage 24,100  23,720  Automobile 14,003  12,482  Home equity 10,129  10,113  RV and marine 6,042  5,899  Other consumer 1,627  1,461  Total consumer loan portfolio 55,901  53,675  Total loans and leases (1)(2) 126,387  121,982  Allowance for loan and lease losses (2,235) (2,255) Net loans and leases $ 124,152  $ 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 $348 million and $323 million at September 30, 2024 and December 31, 2023, respectively. (2)The total amount of accrued interest recorded for these loans and leases at September 30, 2024 was $314 million and $229 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 September 30, 2024 At December 31, 2023 Lease payments receivable $ 5,091  $ 4,980  Estimated residual value of leased assets 868  804  Gross investment in lease financing receivables 5,959  5,784  Deferred origination costs 53  54  Deferred fees, unearned income and other (670) (610) Total lease financing receivables $ 5,342  $ 5,228  The carrying value of residual values guaranteed was $513 million and $478 million as of September 30, 2024 and December 31, 2023, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at September 30, 2024, totaled $5.1 billion and were due as follows: $818 million in 2024, $775 million in 2025, $781 million in 2026, $813 million in 2027, $851 million in 2028, and $1.1 billion thereafter. Interest income recognized for these types of leases was $86 million and $73 million for the three-month periods ended September 30, 2024 and 2023, respectively. For the nine-month periods ended September 30, 2024 and 2023, interest income recognized for these types of leases was $246 million and $211 million, respectively. Nonaccrual and Past Due Loans and Leases The following table presents NALs by class. At September 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 $ 86  $ 408  $ 66  $ 344  Commercial real estate 39  132  64  140  Lease financing —  9  3  14  Residential mortgage —  82  —  72  Automobile —  5  —  4  Home equity —  100  —  91  RV and marine —  2  —  2  Total nonaccrual loans and leases $ 125  $ 738  $ 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 September 30, 2024 Commercial and industrial $ 83  $ 34  $ 172  $ 289  $ 53,312  $ —  $ 53,601  $ 6  (2) Commercial real estate 9  13  39  61  11,482  —  11,543  —  Lease financing 30  10  17  57  5,285  —  5,342  16  Residential mortgage 198  77  214  489  23,436  175  24,100  164  (3) Automobile 96  24  13  133  13,870  —  14,003  10  Home equity 60  34  86  180  9,949  —  10,129  20  RV and marine 22  6  4  32  6,010  —  6,042  3  Other consumer 13  6  5  24  1,603  —  1,627  5  Total loans and leases $ 511  $ 204  $ 550  $ 1,265  $ 124,947  $ 175  $ 126,387  $ 224  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 September 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 $ 11,336  $ 8,855  $ 7,091  $ 2,722  $ 1,695  $ 1,938  $ 16,729  $ 6  $ 50,372  OLEM 94  157  152  50  13  28  215  —  709  Substandard 354  396  409  169  100  184  895  —  2,507  Doubtful —  5  7  —  —  1  —  —  13  Total Commercial and industrial $ 11,784  $ 9,413  $ 7,659  $ 2,941  $ 1,808  $ 2,151  $ 17,839  $ 6  $ 53,601  Commercial real estate Credit Quality Indicator (1): Pass $ 934  $ 1,166  $ 3,076  $ 1,425  $ 996  $ 1,999  $ 571  $ —  $ 10,167  OLEM 8  75  259  142  —  65  —  —  549  Substandard 222  37  269  123  4  161  11  —  827  Total Commercial real estate $ 1,164  $ 1,278  $ 3,604  $ 1,690  $ 1,000  $ 2,225  $ 582  $ —  $ 11,543  Lease financing Credit Quality Indicator (1): Pass $ 1,349  $ 1,728  $ 990  $ 610  $ 400  $ 185  $ —  $ —  $ 5,262  OLEM 1  2  3  2  6  1  —  —  15  Substandard 2  14  29  6  6  8  —  —  65  Total Lease financing $ 1,352  $ 1,744  $ 1,022  $ 618  $ 412  $ 194  $ —  $ —  $ 5,342  Residential mortgage Credit Quality Indicator (2): 750+ $ 1,148  $ 2,354  $ 4,010  $ 5,733  $ 3,068  $ 2,649  $ —  $ —  $ 18,962  650-749 592  617  746  800  452  818  —  —  4,025  <650 36  55  110  106  67  564  —  —  938  Total Residential mortgage $ 1,776  $ 3,026  $ 4,866  $ 6,639  $ 3,587  $ 4,031  $ —  $ —  $ 23,925  Automobile Credit Quality Indicator (2): 750+ $ 3,249  $ 1,817  $ 1,503  $ 1,065  $ 432  $ 167  $ —  $ —  $ 8,233  650-749 1,872  1,138  827  544  201  82  —  —  4,664  <650 217  258  267  227  87  50  —  —  1,106  Total Automobile $ 5,338  $ 3,213  $ 2,597  $ 1,836  $ 720  $ 299  $ —  $ —  $ 14,003  Home equity Credit Quality Indicator (2): 750+ $ 154  $ 350  $ 388  $ 464  $ 482  $ 212  $ 4,543  $ 230  $ 6,823  650-749 57  98  82  52  47  82  2,039  220  2,677  <650 2  7  10  4  4  42  422  138  629  Total Home equity $ 213  $ 455  $ 480  $ 520  $ 533  $ 336  $ 7,004  $ 588  $ 10,129  RV and marine Credit Quality Indicator (2): 750+ $ 805  $ 956  $ 850  $ 745  $ 499  $ 745  $ —  $ —  $ 4,600  650-749 201  293  208  213  130  240  —  —  1,285  <650 4  19  22  32  22  58  —  —  157  Total RV and marine $ 1,010  $ 1,268  $ 1,080  $ 990  $ 651  $ 1,043  $ —  $ —  $ 6,042  Other consumer Credit Quality Indicator (2): 750+ $ 228  $ 110  $ 56  $ 26  $ 12  $ 52  $ 430  $ 2  $ 916  650-749 104  64  26  10  3  10  407  8  632  <650 5  10  5  2  1  2  45  9  79  Total Other consumer $ 337  $ 184  $ 87  $ 38  $ 16  $ 64  $ 882  $ 19  $ 1,627  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 September 30, 2024 Commercial and industrial $ 1  $ 7  $ 30  $ 13  $ 1  $ 2  $ 8  $ 1  $ 63  Commercial real estate 2  2  —  1  —  —  4  —  9  Lease financing —  1  —  1  —  —  —  —  2  Residential mortgage —  —  —  —  —  —  —  —  —  Automobile 2  5  4  3  1  1  —  —  16  Home equity —  —  —  —  —  1  —  1  2  RV and marine —  1  1  2  1  2  —  —  7  Other consumer 5  6  4  2  1  4  —  8  30  Total $ 10  $ 22  $ 39  $ 22  $ 4  $ 10  $ 12  $ 10  $ 129  Nine months ended September 30, 2024 Commercial and industrial $ 1  $ 17  $ 60  $ 35  $ 12  $ 6  $ 28  $ 2  $ 161  Commercial real estate 11  4  30  3  —  24  4  —  76  Lease financing —  2  1  2  —  1  —  —  6  Residential mortgage —  —  —  —  —  2  —  —  2  Automobile 2  13  13  10  4  3  —  —  45  Home equity —  —  —  —  —  1  1  4  6  RV and marine —  2  3  5  3  8  —  —  21  Other consumer 8  19  12  6  3  11  —  26  85  Total $ 22  $ 57  $ 119  $ 61  $ 22  $ 56  $ 33  $ 32  $ 402  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 September 30, 2023 Commercial and industrial $ 2  $ 21  $ 6  $ 6  $ 15  $ 1  $ 3  $ —  $ 54  Commercial real estate 5  6  —  —  10  —  7  —  28  Lease financing —  3  —  —  —  —  —  —  3  Residential mortgage —  —  —  —  —  1  —  —  1  Automobile 1  5  3  1  1  1  —  —  12  Home equity —  —  —  —  —  1  —  1  2  RV and marine —  —  1  1  1  2  —  —  5  Other consumer 5  5  3  1  1  4  —  7  26  Total $ 13  $ 40  $ 13  $ 9  $ 28  $ 10  $ 10  $ 8  $ 131  Nine months ended September 30, 2023 Commercial and industrial $ 4  $ 39  $ 23  $ 13  $ 26  $ 11  $ 7  $ 1  $ 124  Commercial real estate 5  9  19  —  15  5  7  —  60  Lease financing —  3  1  1  —  1  —  —  6  Residential mortgage —  —  1  —  —  3  —  —  4  Automobile 1  11  11  5  4  3  —  —  35  Home equity —  —  —  —  —  1  1  4  6  RV and marine —  1  2  2  2  5  —  —  12  Other consumer 8  18  11  4  4  10  —  20  75  Total $ 18  $ 81  $ 68  $ 25  $ 51  $ 39  $ 15  $ 25  $ 322  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 September 30, 2024 Commercial and industrial $ 22  $ 165  $ —  $ 17  $ 204  0.38  % Commercial real estate —  168  —  11  179  1.55  Residential mortgage —  15  1  1  17  0.07  Automobile —  3  —  —  3  0.02  Home equity —  1  —  3  4  0.04  Other consumer 1  —  —  —  1  0.06  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 23  $ 352  $ 1  $ 32  $ 408  0.34  % Three months ended September 30, 2023 Commercial and industrial $ 1  $ 147  $ —  $ 1  $ 149  0.30  % Commercial real estate —  52  —  4  56  0.44  Residential mortgage —  15  —  1  16  0.07  Automobile —  4  —  —  4  0.03  Home equity —  —  —  3  3  0.03  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 1  $ 218  $ —  $ 9  $ 228  0.20  % Nine months ended September 30, 2024 Commercial and industrial $ 42  $ 240  $ —  $ 63  $ 345  0.64  % Commercial real estate —  228  —  25  253  2.19  Residential mortgage —  37  5  3  45  0.19  Automobile —  10  —  1  11  0.08  Home equity —  4  —  9  13  0.13  RV and marine —  1  —  —  1  0.02  Other consumer 1  —  —  —  1  0.06  Total loans to borrowers experiencing financial difficulty in which modifications were made $ 43  $ 520  $ 5  $ 101  $ 669  0.55  % Nine months ended September 30, 2023 Commercial and industrial $ 33  $ 291  $ —  $ 4  $ 328  0.66  % Commercial real estate —  138  —  4  142  1.12  Residential mortgage —  50  2  3  55  0.23  Automobile —  11  —  1  12  0.09  Home equity —  1  —  8  9  0.09  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 $ 34  $ 492  $ 2  $ 20  $ 548  0.47  % (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 September 30, 2024 Commercial and industrial 7.81  % 6.56  % 0.7 Commercial real estate 8.60  % 7.96  % 1.0 Residential mortgage 5.8 Three months ended September 30, 2023 Commercial and industrial     1.0 Commercial real estate     0.6 Residential mortgage     8.4 Nine months ended September 30, 2024 Commercial and industrial 8.80  % 7.60  % 0.8 Commercial real estate 8.26  % 7.90  % 1.0 Residential mortgage 6.9 Automobile 1.6 Home equity 12.7 Nine months ended September 30, 2023 Commercial and industrial 7.96  % 7.25  % 1.0 Commercial real estate     0.7 Residential mortgage     7.6 Automobile     2.0 (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 September 30, 2024 Commercial and industrial $ 1  $ 2  $ 4  $ 7  $ 418  $ 425  Commercial real estate 9  —  5  14  245  259  Residential mortgage 10  4  11  25  29  54  Automobile 2  1  —  3  12  15  Home equity 1  —  4  5  11  16  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 September 30, 2024 $ 23  $ 7  $ 24  $ 54  $ 718  $ 772  At September 30, 2023 (1) Commercial and industrial $ 2  $ 1  $ 3  $ 6  $ 322  $ 328  Commercial real estate —  5  1  6  136  142  Residential mortgage 10  5  7  22  33  55  Automobile 1  —  —  1  11  12  Home equity —  —  1  1  8  9  RV and marine —  —  —  —  1  1  Other consumer —  —  —  —  1  1  Total loans to borrowers experiencing financial difficulty in which modifications were made in the nine months ended September 30, 2023 (1) $ 13  $ 11  $ 12  $ 36  $ 512  $ 548  (1)     Huntington adopted ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023, therefore, the September 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 September 30, 2024 and December 31, 2023, loans and leases totaling $102.2 billion and $101.8 billion, respectively, were pledged to the Federal Reserve and FHLB for access to these contingent funding sources.