Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.25.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
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 reports on two business segments: Consumer & Regional Banking and Commercial Banking.
Huntington’s CEO is the CODM for each of our business segments. The CODM primarily utilizes net interest income and net income attributable to Huntington to assess segment performance and to allocate resources to meet our business objectives. The CODM considers budget-to-actual variances for these profit measures when making decisions about allocating resources, comparing performance among the segments, and determining compensation of certain colleagues.
The following is a description of our business segments:
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 regional banking and national specialty finance channels, including branches and ATMs, online and mobile banking, our customer call centers, and strategic national partnerships.
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.
All other items not included within our two business segments are reported within the Treasury / Other function, which primarily includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
Business segment results are determined based upon Huntington’s management practices, 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 modeled 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. The FTP rate is based on prevailing market interest rates for comparable duration assets (or liabilities). The primary components of the FTP rate include a base (market) rate, a liquidity premium, contingent liquidity and collateral charges, and option cost.
The following tables present certain operating basis financial information for each reportable business segment reconciled to Huntington’s consolidated financial results.
Income Statements
(dollar amounts in millions)
 Consumer & Regional Banking Commercial Banking Treasury / Other
Huntington
Consolidated
Year Ended December 31, 2024
Net interest income (loss) $ 4,070  $ 2,123  $ (848) $ 5,345 
Provision for credit losses 284  136  —  420 
Net interest income (loss) after provision for credit losses
 3,786  1,987  (848) 4,925 
Noninterest income 1,301  716  23  2,040 
Noninterest expense:
Direct personnel costs
 1,135  607  959  2,701 
Other noninterest expense, including corporate allocations
 2,038  611  (788) 1,861 
Total noninterest expense
 3,173  1,218  171  4,562 
Income (loss) before income taxes
 1,914  1,485  (996) 2,403 
Provision (benefit) for income taxes 402  312  (271) 443 
Income attributable to non-controlling interest —  20  —  20 
Net income (loss) attributable to Huntington
 $ 1,512  $ 1,153  $ (725) $ 1,940 
Year Ended December 31, 2023
Net interest income (loss)
 $ 3,717  $ 2,162  $ (440) $ 5,439 
Provision for credit losses 246  156  —  402 
Net interest income (loss) after provision for credit losses
 3,471  2,006  (440) 5,037 
Noninterest income 1,257  646  18  1,921 
Noninterest expense:
Direct personnel costs
 1,138  502  889  2,529 
Other noninterest expense, including corporate allocations
 1,926  632  (513) 2,045 
Total noninterest expense
 3,064  1,134  376  4,574 
Income (loss) before income taxes
 1,664  1,518  (798) 2,384 
Provision (benefit) for income taxes 349  319  (255) 413 
Income attributable to non-controlling interest —  20  —  20 
Net income attributable to Huntington
 $ 1,315  $ 1,179  $ (543) $ 1,951 
Year Ended December 31, 2022
Net interest income (loss) $ 3,213  $ 1,807  $ 253  $ 5,273 
Provision for credit losses 260  29  —  289 
Net interest income (loss) after provision for credit losses
 2,953  1,778  253  4,984 
Noninterest income 1,272  667  42  1,981 
Noninterest expense:
Direct personnel costs
 1,124  444  833  2,401 
Other noninterest expense, including corporate allocations
 1,800  612  (612) 1,800 
Total noninterest expense
 2,924  1,056  221  4,201 
Income (loss) before income taxes
 1,301  1,389  74  2,764 
Provision (benefit) for income taxes 274  292  (51) 515 
Income attributable to non-controlling interest —  10  1  11 
Net income (loss) attributable to Huntington
 $ 1,027  $ 1,087  $ 124  $ 2,238 
 
Assets at
December 31,
Deposits at
December 31,
(dollar amounts in millions) 2024 2023 2024 2023
Consumer & Regional Banking $ 78,841  $ 73,082  $ 111,390  $ 110,157 
Commercial Banking 66,919  63,377  43,366  35,466 
Treasury / Other 58,470  52,909  7,692  5,607 
Total $ 204,230  $ 189,368  $ 162,448  $ 151,230