Annual report pursuant to Section 13 and 15(d)

BENEFIT PLANS

v3.25.0.1
BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
BENEFIT PLANS BENEFIT PLANS
Huntington sponsors a non-contributory defined benefit pension plan covering substantially all employees hired or rehired prior to January 1, 2010. The Plan no longer accrues service benefits to participants and provides benefits based upon length of service and compensation levels. Huntington’s funding policy is to contribute an annual amount that is at least equal to the minimum funding requirements but not more than the amount deductible under the Internal Revenue Code. There were no required minimum contributions during 2024.
The following table shows the weighted-average assumptions used to determine the benefit obligation and the net periodic benefit cost.
At December 31,
2024 2023
Weighted-average assumptions used to determine benefit obligations:
Discount rate 5.67  % 5.15  %
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate 5.15  5.41 
Expected return on plan assets 5.50  5.00 
The following table reconciles the beginning and ending balances of the benefit obligation of the Plan with the amounts recognized in the consolidated balance sheets.
At December 31,
(dollar amounts in millions) 2024 2023
Projected benefit obligation at beginning of measurement year $ 687  $ 692 
Changes due to:
Service cost 3  3 
Interest cost 34  36 
Benefits paid (34) (33)
Settlements (9) (16)
Actuarial (losses) gains
 (35) 5 
Total changes (41) (5)
Projected benefit obligation at end of measurement year $ 646  $ 687 
The following table reconciles the beginning and ending balances of the fair value of Plan assets.
At December 31,
(dollar amounts in millions) 2024 2023
Fair value of plan assets at beginning of measurement year $ 729  $ 740 
Changes due to:
Actual return on plan assets (8) 39 
Settlements (9) (17)
Benefits paid (34) (33)
Total changes (51) (11)
Fair value of plan assets at end of measurement year $ 678  $ 729 
As of December 31, 2024, the difference between the accumulated benefit obligation and the fair value of Plan assets was $32 million and is recorded in other assets.
The following table shows the components of net periodic benefit costs recognized.
Year Ended December 31, (1)
(dollar amounts in millions) 2024 2023 2022
Service cost $ 3  $ 3  $ 3 
Interest cost 34  36  22 
Expected return on plan assets (46) (43) (41)
Amortization of loss 2  1  9 
Settlements 4  7  15 
Benefit costs $ (3) $ 4  $ 8 
(1)    Pension costs are recognized in other noninterest income in the Consolidated Statements of Income.
At December 31, 2024 and 2023, Northern Trust, as trustee, held all Plan assets. The Plan assets consisted of investments in a variety of cash equivalent, corporate and government fixed income, and equity investments as follows.
Fair Value at December 31,
(dollar amounts in millions) 2024 2023
Cash equivalents:
Mutual funds-money market $ 11  2  % $ 17  2  %
Fixed income:
Corporate obligations 212  31  234  32 
U.S. Government obligations 69  10  70  10 
Municipal obligations 1  —  1  — 
Collective trust funds 273  40  297  42 
Equities:
Limited liability companies 11  2  10  1 
Collective trust funds 78  12  76  10 
Limited partnerships 23  3  24  3 
Fair value of plan assets $ 678  100  % $ 729  100  %
Investments of the Plan are reported at fair value. The valuation methodologies used to measure the fair value of pension plan assets vary depending on the type of asset. At December 31, 2024, mutual money market funds are valued at the closing price reported from an actively traded exchange and are classified as Level 1. Fixed income investments are valued using unadjusted quoted prices from active markets for similar assets are classified as Level 2. Collective trust funds and limited liability companies are valued at net asset value per unit as a practical expedient, which is calculated based on the fair values of the underlying investments held by the fund less its liabilities as reported by the issuer of the fund. The investment in the limited partnerships is reported at net asset value per share as determined by the general partners of each limited partnership, based on their proportionate share of the partnership’s fair value as recorded in the partnership’s audited financial statements.
The investment objective of the Plan is to maximize the return on Plan assets over a long-time period, while meeting the Plan obligations. At December 31, 2024, Plan assets had an average duration of 11.9 years on investments. The estimated life of benefit obligations was 9.7 years. Although it may fluctuate with market conditions, Huntington has targeted a long-term allocation of Plan assets of 90% in bond investments and 10% in equity investments.
At December 31, 2024, the following table shows when benefit payments are expected to be paid.
(dollar amounts in millions) Pension Benefits
2025 $ 53 
2026 54 
2027 54 
2028 53 
2029 53 
2030 through 2034 252 
Huntington has a defined contribution plan that is available to eligible employees. Huntington’s expense related to the defined contribution plans for the years ended December 31, 2024, 2023, and 2022 was $61 million, $61 million, and $58 million, respectively.
The following table shows the number of shares, market value, and dividends received on shares of Huntington stock held by the defined contribution plan.
At December 31,
(dollar amounts in millions, share amounts in thousands) 2024 2023
Shares in Huntington common stock 10,910  11,899 
Market value of Huntington common stock $ 178  $ 151 
Dividends received on shares of Huntington stock 7  7