Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
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. The Company has four major business segments: Commercial Banking, Consumer and Business Banking, Vehicle Finance, Regional Banking and The Huntington Private Client Group (RBHPCG). The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
Business segment results are determined based upon Huntington’s management reporting system, 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 all four 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 four 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. Accordingly, certain amounts have been reclassified to conform to the current period presentation.
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 matched 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).
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 corporate (greater than $2 billion in revenue) across a national footprint. The Commercial Banking segment leverages internal partnerships for wealth management, trust, insurance, payments, and treasury management capabilities. The segment is divided into five business units: (1) Middle Market Banking, (2) Corporate, Specialty, and Government Banking, (3) Asset Finance, (4) Commercial Real Estate Banking, and (5) Capital Markets.
Consumer and Business Banking - The Consumer and Business Banking segment provides a wide array of financial products and services to consumer and small business customers including, but not limited to, checking accounts, savings accounts, money market accounts, CDs, investments, consumer loans, credit cards, and small business loans. Other financial services available to customers include mortgages, insurance, interest rate risk protection, foreign exchange, and treasury management. Business Banking is defined as serving companies with revenues up to $20 million. Consumer and Business Banking also supports origination and servicing of consumer loans and mortgages for customers who are generally located in our primary banking markets across all segments.
Vehicle Finance - Our products and services include providing financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, marine craft, and powersports at franchised and other select dealerships, and providing financing to franchised dealerships for the acquisition of new and used inventory. Products and services are delivered through highly specialized relationship-focused bankers and product partners.
Regional Banking and The Huntington Private Client Group - The core business of The Huntington Private Client Group is The Huntington Private Bank, which consists of Private Banking, Wealth & Investment Management, and Retirement Plan Services. The Huntington Private Bank provides high net-worth customers with deposit, lending (including specialized lending options), and banking services. The Huntington Private Bank also delivers wealth management and legacy planning through investment and portfolio management, fiduciary administration, and trust services. This group also provides retirement plan services to corporate businesses. The Huntington Private Client Group provides corporate trust services and institutional and mutual fund custody services.
Listed in the table below is certain operating basis financial information reconciled to Huntington’s, reported results by business segment.
Income Statements
(dollar amounts in millions)
 Commercial Banking Consumer & Business Banking Vehicle Finance RBHPCG Treasury / Other
Huntington
Consolidated
Year Ended December 31, 2022
Net interest income $ 1,879  $ 2,577  $ 477  $ 232  $ 108  $ 5,273 
Provision for credit losses 28  161  83  17  —  289 
Noninterest income 670  1,017  13  239  42  1,981 
Noninterest expense 1,061  2,434  165  320  221  4,201 
Provision (benefit) for income taxes 307  210  51  28  (81) 515 
Income attributable to non-controlling interest 10  —  —  —  1  11 
Net income attributable to Huntington Bancshares Inc $ 1,143  $ 789  $ 191  $ 106  $ 9  $ 2,238 
Year Ended December 31, 2021
Net interest income $ 1,284  $ 1,667  $ 468  $ 159  $ 524  $ 4,102 
Provision for credit losses 4  91  (86) 16  —  25 
Noninterest income 523  1,045  13  227  81  1,889 
Noninterest expense 791  2,231  163  300  890  4,375 
Provision (benefit) for income taxes 212  82  85  15  (100) 294 
Income attributable to non-controlling interest 2  —  —  —  —  2 
Net income attributable to Huntington Bancshares Inc $ 798  $ 308  $ 319  $ 55  $ (185) $ 1,295 
Year Ended December 31, 2020
Net interest income $ 903  $ 1,436  $ 430  $ 160  $ 295  $ 3,224 
Provision for credit losses 626  265  146  11  —  1,048 
Noninterest income 364  945  9  201  72  1,591 
Noninterest expense 542  1,774  141  243  95  2,795 
Provision for income taxes 21  72  32  22  8  155 
Net income $ 78  $ 270  $ 120  $ 85  $ 264  $ 817 
 
Assets at
December 31,
Deposits at
December 31,
(dollar amounts in millions) 2022 2021 2022 2021
Commercial Banking $ 63,812  $ 57,071  $ 37,509  $ 31,845 
Consumer & Business Banking 38,561  39,929  93,676  95,352 
Vehicle Finance 21,461  20,752  1,136  1,401 
RBHPCG 10,045  8,325  9,550  10,162 
Treasury / Other 49,027  47,987  6,043  4,503 
Total $ 182,906  $ 174,064  $ 147,914  $ 143,263