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

Annual report pursuant to Section 13 and 15(d)

BORROWINGS

BORROWINGS

12 Months Ended

Dec. 31, 2024

Borrowings with original maturities of one year or less are classified as short-term and were comprised of the following.


	At December 31,
(dollar amounts in millions)	2024		2023
Securities sold under agreements to repurchase	$	142	$	618

Other borrowings	57		2
Total short-term borrowings	$	199	$	620

The carrying value of assets pledged as collateral against repurchase agreements totaled $224 million and $840 million as of December 31, 2024 and December 31, 2023, respectively. Assets pledged as collateral are reported in available-for-sale securities and held-to-maturity securities on the Consolidated Balance Sheets. The repurchase agreements have maturities within 60 days. No amounts have been offset against the agreements.

Huntington’s long-term debt, which consists of borrowings with an initial maturity of greater than one year, is included in the following table. The interest rate disclosed represents the contractual rate as of the most recent period end.


	At December 31,
(dollar amounts in millions)	2024		2023
The Parent Company:
Senior Notes:
2.63% Huntington Bancshares Incorporated senior notes due 2024	$	—	$	719
4.00% Huntington Bancshares Incorporated senior notes due 2025	465		457
4.44% Huntington Bancshares Incorporated senior notes due 2028	718		716
6.21% Huntington Bancshares Incorporated senior notes due 2029	1,237		1,266
2.55% Huntington Bancshares Incorporated senior notes due 2030	685		692
5.27% Huntington Bancshares Incorporated senior notes due 2031	1,138		—
5.02% Huntington Bancshares Incorporated senior notes due 2033	371		383
5.71% Huntington Bancshares Incorporated senior notes due 2035	1,222		—
Subordinated Notes:

Huntington Capital I Trust Preferred 5.55% junior subordinated debentures due 2027 (1)	70		69
Huntington Capital II Trust Preferred 5.25% junior subordinated debentures due 2028 (2)	32		32
Sky Financial Capital Trust III 5.99% junior subordinated debentures due 2036 (3)	72		72
Sky Financial Capital Trust IV 6.25% junior subordinated debentures due 2036 (3)	74		74
2.49% Huntington Bancshares Incorporated subordinated notes due 2036	501		513

6.14% Huntington Bancshares Incorporated subordinated notes due 2039	592		—
Total notes issued by the Parent Company	7,177		4,993
The Bank:
Senior Notes:

6.59% Huntington National Bank senior notes due 2025	—		278
4.01% Huntington National Bank senior notes due 2025	—		467
5.70% Huntington National Bank senior notes due 2025	—		1,060
4.55% Huntington National Bank senior notes due 2028	776		776
5.65% Huntington National Bank senior notes due 2030	878		899
Subordinated Notes:
4.60% Huntington National Bank subordinated notes due 2025	130		129
4.27% Huntington National Bank subordinated notes due 2026	224		223
4.13% Huntington National Bank subordinated notes due 2029	—		156
5.50% Huntington National Bank subordinated notes due 2030	161		154
Total notes issued by the Bank	2,169		4,142
FHLB Advances:
4.64% weighted average rate, varying maturities	4,696		2,731
Auto Loan Securitization Trust (4)	1,023		—
Credit Linked Notes (5)	821		—
Other:
Huntington Technology Finance nonrecourse debt, 5.96% weighted average interest rate, varying maturities	353		343


7.64% Huntington Preferred Capital II - Class I securities (6)	—		50
7.19% Huntington Preferred Capital II - Class J securities (7)	75		75
7.69% Huntington Preferred Capital II - Class L securities (8)	60		60

Total long-term debt	$	16,374	$	12,394

(1)Variable effective rate at December 31, 2024, based on three-month SOFR +0.96%.

(2)Variable effective rate at December 31, 2024, based on three-month SOFR +0.886%.

(3)Variable effective rate at December 31, 2024, based on three-month SOFR +1.66%.

(4)Represents secured borrowings collateralized by auto loans with a weighted average rate of 5.31% due through 2029. See Note 20 - “Variable Interest Entities” for additional information.

(5)See details of credit linked notes in the following table.

(6)Variable effective rate at December 31, 2024, based on three-month SOFR +2.00%.

(7)Variable effective rate at December 31, 2024, based on three-month SOFR +2.60%.

(8)Variable effective rate at December 31, 2024, based on three-month SOFR +3.10%.

Amounts above are net of unamortized discounts and adjustments related to hedging with derivative financial instruments. We use interest rate swaps to hedge interest rate risk of certain fixed-rate debt by converting the debt to a variable rate.

Huntington entered into two CLN transactions during 2024 that effectively transfer the risk of first losses on certain reference pools of the Company’s auto-secured loans. Huntington has elected the fair value option for these notes. See Note 18 - “Fair Values of Assets and Liabilities” for additional information. To the extent losses exceed certain thresholds, the principal and interest payable on the notes may be reduced by a portion of the Company’s aggregate net losses on the reference pool of loans, with losses allocated to note classes in reverse order of payment priority. Additional information about Huntington’s CLN issuances is as follows.


	At December 31, 2024
(dollar amounts in millions)	Weighted Average Interest Rate		Reference Pool Net Balance		Principal Outstanding

CLN 2024-1 due 2032 (1)	6.66	%	$	3,014	$	366
CLN 2024-2 due 2032 (2)	6.03		3,740		451
Total			$	6,754	$	817
Fair value adjustment					4
Carrying value					$	821

(1)Consists of multiple classes of loans. One note class bears interest at a fixed rate of 6.15% and the remaining four note classes bear interest at SOFR plus a spread rate that ranges from 1.40% to 8.25% (weighted average spread of 3.04%).

(2)Consists of multiple classes of loans. One note class bears interest at a fixed rate of 5.44% and the remaining four note classes bear interest at SOFR plus a spread rate that ranges from 1.35% to 7.50% (weighted average spread of 2.99%).

Long-term debt maturities, based upon the par values and contractual maturities of the long-term debt, for the next five years and thereafter are as follows.


(dollar amounts in millions)	2025		2026		2027		2028		2029		Thereafter		Total
The Parent Company:
Senior notes	$	468	$	—	$	—	$	750	$	1,250	$	3,550	$	6,018
Subordinated notes	—		—		70		32		—		1,307		1,409
The Bank:
Senior notes	—		—		—		800		—		900		1,700
Subordinated notes	130		—		239		—		—		150		519
FHLB advances	200		3,500		500		500		—		1		4,701
Auto loan securitization trust (1)	—		—		349		—		678		—		1,027
Credit linked notes (1)	—		—		—		—		—		817		817
Other	28		52		139		163		99		7		488
Total	$	826	$	3,552	$	1,297	$	2,245	$	2,027	$	6,732	$	16,679

(1) The contractual maturities are in the years presented, however, the underlying loans will pay down through the contractual maturities. In addition, there is an optional redemption date in which Huntington has the right to redeem the notes after the period in which the aggregate principal balance is less than or equal to 10% of the original principal balance.

The terms of certain long-term debt obligations contain various restrictive covenants including limitations on the acquisition of additional debt, dividend payments, and the disposition of subsidiaries. As of December 31, 2024, Huntington was in compliance with all such covenants.