Quarterly report pursuant to Section 13 or 15(d)

LOANS / LEASES

v3.22.1
LOANS / LEASES
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
LOANS / LEASES LOANS AND LEASES
The following table provides a detailed listing of Huntington’s loan and lease portfolio at March 31, 2022 and December 31, 2021.
(dollar amounts in millions) March 31, 2022 December 31, 2021
Commercial loan and lease portfolio:
Commercial and industrial $ 42,236  $ 41,688 
Commercial real estate 15,391  14,961 
Lease financing 4,978  5,000 
Total commercial loan and lease portfolio 62,605  61,649 
Consumer loan portfolio:
Residential mortgage 19,942  19,256 
Automobile 13,480  13,434 
Home equity 10,343  10,550 
RV and marine 5,191  5,058 
Other consumer 1,256  1,320 
Total consumer loan portfolio 50,212  49,618 
Total loans and leases (1) (2) 112,817  111,267 
Allowance for loan and lease losses (2,018) (2,030)
Net loans and leases $ 110,799  $ 109,237 
(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 $11 million and $111 million at March 31, 2022 and December 31, 2021, respectively.
(2)The total amount of accrued interest recorded for these loans and leases at March 31, 2022, was $142 million and $147 million of commercial and consumer loan and lease portfolios, respectively, and at December 31, 2021, was $148 million and $150 million of commercial and consumer loan and lease portfolios, respectively. Accrued interest is presented in accrued income and other receivables within the Condensed Consolidated Balance Sheets.
Lease Financing
Huntington leases equipment to customers, and substantially all such arrangements are classified as either sales-type or direct financing leases, which are included in commercial loans and leases. These leases are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, and any initial direct costs incurred to originate these leases.
Huntington assesses net investments in leases (including residual values) for impairment and recognizes any impairment losses in accordance with the impairment guidance for financial instruments. As such, net investments in leases may be reduced by an ACL, with changes recognized as provision expense.
The following table presents net investments in lease financing receivables by category at March 31, 2022 and December 31, 2021.
(dollar amounts in millions) March 31,
2022		 December 31,
2021
Lease payments receivable $ 4,596  $ 4,620 
Estimated residual value of leased assets 768  774 
Gross investment in lease financing receivables 5,364  5,394 
Deferred origination costs 37  36 
Deferred fees, unearned income and other (423) (430)
Total lease financing receivables $ 4,978  $ 5,000 
The carrying value of residual values guaranteed was $426 million and $473 million as of March 31, 2022 and December 31, 2021, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at March 31, 2022, totaled $4.6 billion and were due as follows: $903 million in 2022, $898 million in 2023, $905 million in 2024, $782 million in 2025, $642 million in 2026, and $466 million thereafter. Interest income recognized for these types of leases was $38 million and $24 million for the three-month periods ended March 31, 2022 and 2021, respectively.
Nonaccrual and Past Due Loans and Leases
The following table presents NALs by class at March 31, 2022 and December 31, 2021:
March 31, 2022 December 31, 2021
(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 $ 57  $ 323  $ 81  $ 370 
Commercial real estate 82  114  80  104 
Lease financing 9  38  3  48 
Residential mortgage —  117  —  111 
Automobile —  4  —  3 
Home equity —  84  —  79 
RV and marine —  2  —  1 
Total nonaccrual loans and leases $ 148  $ 682  $ 164  $ 716 
The following table presents an aging analysis of loans and leases, by class at March 31, 2022 and December 31, 2021:
March 31, 2022
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
Commercial and industrial $ 61  $ 19  $ 125  $ 205  $ 42,031  $ —  $ 42,236  $ 10 
Commercial real estate 34  15  9  58  15,333  —  15,391  — 
Lease financing 38  19  17  74  4,904  —  4,978  12  (3)
Residential mortgage 132  48  312  492  19,279  171  19,942  237  (4)
Automobile 69  14  8  91  13,389  —  13,480  6 
Home equity 41  17  71  129  10,213  1  10,343  12 
RV and marine 11  3  2  16  5,175  —  5,191  1 
Other consumer 11  2  2  15  1,241  —  1,256  2 
Total loans and leases $ 397  $ 137  $ 546  $ 1,080  $ 111,565  $ 172  $ 112,817  $ 280 
December 31, 2021
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
Commercial and industrial $ 72  $ 69  $ 107  $ 248  $ 41,440  $ —  $ 41,688  $ 13  (2)
Commercial real estate 9  1  9  19  14,942  —  14,961  — 
Lease financing 39  13  17  69  4,931  —  5,000  11  (3)
Residential mortgage 151  49  233  433  18,653  170  19,256  157  (4)
Automobile 79  18  8  105  13,329  —  13,434  6 
Home equity 48  35  76  159  10,390  1  10,550  17 
RV and marine 14  4  3  21  5,037  —  5,058  3 
Other consumer 13  2  3  18  1,302  —  1,320  3 
Total loans and leases $ 425  $ 191  $ 456  $ 1,072  $ 110,024  $ 171  $ 111,267  $ 210 
(1)NALs are included in this aging analysis based on the loan’s past due status.
(2)Amounts include PPP and other SBA loans and leases.
(3)Amounts include Huntington Technology Finance administrative lease delinquencies.
(4)Amounts include mortgage loans insured by U.S. government agencies.
Credit Quality Indicators
See Note 5 “Loans/Leases” to the Consolidated Financial Statements appearing in Huntington’s 2021 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.
To facilitate the monitoring of credit quality for commercial loans, and for purposes of determining an appropriate ACL level for these loans, Huntington utilizes the following internally defined categories of credit grades:
•Pass - Higher quality loans that do not fit any of the other categories described below.
•OLEM - The credit risk may be relatively minor yet represents a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the loan may weaken or the collateral may be inadequate to protect Huntington’s position in the future. For these reasons, Huntington considers the loans to be potential problem loans.
•Substandard - Inadequately protected loans resulting from the borrower’s ability to repay, equity, and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. It is likely Huntington will sustain some loss if any identified weaknesses are not mitigated.
•Doubtful - Loans that have all of the weaknesses inherent in those loans classified as Substandard, with the added elements of the full collection of the loan is improbable and that the possibility of loss is high.
Loans are generally assigned a category of “Pass” rating upon initial approval and subsequently updated as appropriate based on the borrower’s financial performance.
Commercial loans categorized as OLEM, Substandard, or Doubtful are considered Criticized loans. Commercial loans categorized as Substandard or Doubtful are both considered Classified loans.
For all classes within the consumer loan portfolios, loans are assigned pool level PD factors based on the FICO range within which the borrower’s credit bureau score falls. 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 March 31, 2022 and December 31, 2021 respectively:
As of March 31, 2022
Term Loans Amortized Cost Basis by Origination Year Revolver Total at Amortized Cost Basis Revolver Total Converted to Term Loans
(dollar amounts in millions) 2022 2021 2020 2019 2018 Prior Total
Commercial and industrial
Credit Quality Indicator (1):
Pass $ 5,981  $ 11,288  $ 4,865  $ 3,041  $ 1,596  $ 1,877  $ 10,896  $ 3  $ 39,547 
OLEM 12  113  134  141  79  73  116  —  668 
Substandard 79  315  235  292  188  304  604  —  2,017 
Doubtful —  1  1  —  2  —  —  —  4 
Total Commercial and industrial $ 6,072  $ 11,717  $ 5,235  $ 3,474  $ 1,865  $ 2,254  $ 11,616  $ 3  $ 42,236 
Commercial real estate
Credit Quality Indicator (1):
Pass $ 1,221  $ 3,858  $ 2,307  $ 2,359  $ 1,393  $ 1,629  $ 1,088  $ —  $ 13,855 
OLEM —  63  39  47  51  49  —  —  249 
Substandard 32  255  291  417  112  150  29  —  1,286 
Doubtful —  —  —  —  1  —  —  —  1 
Total Commercial real estate $ 1,253  $ 4,176  $ 2,637  $ 2,823  $ 1,557  $ 1,828  $ 1,117  $ —  $ 15,391 
Lease financing
Credit Quality Indicator (1):
Pass $ 469  $ 1,715  $ 1,332  $ 720  $ 343  $ 284  $ —  $ —  $ 4,863 
OLEM 3  9  27  10  3  2  —  —  54 
Substandard 3  5  19  19  3  12  —  —  61 
Total Lease financing $ 475  $ 1,729  $ 1,378  $ 749  $ 349  $ 298  $ —  $ —  $ 4,978 
Residential mortgage
Credit Quality Indicator (2):
750+ $ 903  $ 6,036  $ 3,754  $ 910  $ 519  $ 2,387  $ —  $ —  $ 14,509 
650-749 284  1,704  811  318  200  984  —  —  4,301 
<650 2  73  69  107  125  585  —  —  961 
Total Residential mortgage
 $ 1,189  $ 7,813  $ 4,634  $ 1,335  $ 844  $ 3,956  $ —  $ —  $ 19,771 
Automobile
Credit Quality Indicator (2):
750+ $ 786  $ 2,802  $ 1,731  $ 1,202  $ 550  $ 340  $ —  $ —  $ 7,411 
650-749 567  2,280  1,060  621  313  160  —  —  5,001 
<650 49  431  225  166  114  83  —  —  1,068 
Total Automobile
 $ 1,402  $ 5,513  $ 3,016  $ 1,989  $ 977  $ 583  $ —  $ —  $ 13,480 
Home equity
Credit Quality Indicator (2):
750+ $ 155  $ 611  $ 673  $ 29  $ 28  $ 384  $ 4,788  $ 283  $ 6,951 
650-749 43  120  88  12  9  152  2,118  294  2,836 
<650 —  2  2  3  3  67  331  147  555 
Total Home equity $ 198  $ 733  $ 763  $ 44  $ 40  $ 603  $ 7,237  $ 724  $ 10,342 
RV and marine
Credit Quality Indicator (2):
750+ $ 415  $ 1,150  $ 864  $ 431  $ 433  $ 549  $ —  $ —  $ 3,842 
650-749 44  419  255  157  144  221  —  —  1,240 
<650 —  12  14  16  20  47  —  —  109 
Total RV and marine $ 459  $ 1,581  $ 1,133  $ 604  $ 597  $ 817  $ —  $ —  $ 5,191 
Other consumer
Credit Quality Indicator (2):
750+ $ 135  $ 100  $ 52  $ 55  $ 19  $ 58  $ 318  $ 3  $ 740 
650-749 20  43  21  28  8  25  294  21  460 
<650 —  3  2  5  2  2  27  15  56 
Total Other consumer $ 155  $ 146  $ 75  $ 88  $ 29  $ 85  $ 639  $ 39  $ 1,256 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
As of December 31, 2021
Term Loans Amortized Cost Basis by Origination Year Revolver Total at Amortized Cost Basis Revolver Total Converted to Term Loans
(dollar amounts in millions) 2021 2020 2019 2018 2017 Prior Total
Commercial and industrial
Credit Quality Indicator (1):
Pass $ 15,435  $ 5,677  $ 3,682  $ 1,983  $ 1,080  $ 1,134  $ 9,945  $ 3  $ 38,939 
OLEM 183  178  87  83  38  73  166  —  808 
Substandard 336  203  344  206  125  167  552  —  1,933 
Doubtful 5  1  1  1  —  —  —  —  8 
Total Commercial and industrial $ 15,959  $ 6,059  $ 4,114  $ 2,273  $ 1,243  $ 1,374  $ 10,663  $ 3  $ 41,688 
Commercial real estate
Credit Quality Indicator (1):
Pass $ 4,144  $ 2,367  $ 2,593  $ 1,456  $ 761  $ 1,124  $ 798  $ —  $ 13,243 
OLEM 76  48  42  83  73  19  —  —  341 
Substandard 224  362  448  115  151  46  30  —  1,376 
Doubtful —  —  —  1  —  —  —  —  1 
Total Commercial real estate $ 4,444  $ 2,777  $ 3,083  $ 1,655  $ 985  $ 1,189  $ 828  $ —  $ 14,961 
Lease financing
Credit Quality Indicator (1):
Pass $ 1,851  $ 1,441  $ 809  $ 417  $ 226  $ 131  $ —  $ —  $ 4,875 
OLEM 8  32  12  4  2  —  —  —  58 
Substandard 6  23  19  2  9  8  —  —  67 
Total Lease financing $ 1,865  $ 1,496  $ 840  $ 423  $ 237  $ 139  $ —  $ —  $ 5,000 
Residential mortgage
Credit Quality Indicator (2):
750+ $ 5,532  $ 3,857  $ 978  $ 554  $ 687  $ 1,704  $ —  $ —  $ 13,312 
650-749 1,862  993  409  269  254  1,028  —  —  4,815 
<650 48  56  104  120  99  532  —  —  959 
Total Residential mortgage $ 7,442  $ 4,906  $ 1,491  $ 943  $ 1,040  $ 3,264  $ —  $ —  $ 19,086 
Automobile
Credit Quality Indicator (2):
750+ $ 2,993  $ 1,927  $ 1,381  $ 666  $ 345  $ 129  $ —  $ —  $ 7,441 
650-749 2,393  1,237  736  380  168  55  —  —  4,969 
<650 380  234  178  128  70  34  —  —  1,024 
Total Automobile $ 5,766  $ 3,398  $ 2,295  $ 1,174  $ 583  $ 218  $ —  $ —  $ 13,434 
Home equity
Credit Quality Indicator (2):
750+ $ 645  $ 701  $ 32  $ 31  $ 34  $ 387  $ 4,772  $ 272  $ 6,874 
650-749 129  94  15  13  13  161  2,324  324  3,073 
<650 3  2  2  1  1  67  361  165  602 
Total Home equity $ 777  $ 797  $ 49  $ 45  $ 48  $ 615  $ 7,457  $ 761  $ 10,549 
RV and marine
Credit Quality Indicator (2):
750+ $ 1,257  $ 933  $ 470  $ 468  $ 268  $ 319  $ —  $ —  $ 3,715 
650-749 393  273  171  157  106  150  —  —  1,250 
<650 6  11  13  18  18  27  —  —  93 
Total RV and marine $ 1,656  $ 1,217  $ 654  $ 643  $ 392  $ 496  $ —  $ —  $ 5,058 
Other consumer
Credit Quality Indicator (2):
750+ $ 211  $ 34  $ 50  $ 13  $ 10  $ 27  $ 326  $ 3  $ 674 
650-749 88  52  50  23  17  41  295  24  590 
<650 2  2  5  2  —  1  27  17  56 
Total Other consumer $ 301  $ 88  $ 105  $ 38  $ 27  $ 69  $ 648  $ 44  $ 1,320 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades which are generally refreshed at least semi-annually.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
TDR Loans
TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided would not otherwise be considered. However, not all loan modifications are TDRs. See Note 5 “Loans / Leases” to the Consolidated Financial Statements appearing in Huntington’s 2021 Annual Report on Form 10-K for an additional discussion of TDRs.
The following table presents, by class and modification type, the number of contracts, post-modification outstanding balance, and the financial effects of the modification for the three-month periods ended March 31, 2022 and 2021.
New Troubled Debt Restructurings (1)
Three Months Ended March 31, 2022
Number of
Contracts		 Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions) Interest rate reduction Amortization or maturity date change Chapter 7 bankruptcy Other Total
Commercial and industrial 53  $ 11  $ 3  $ —  $ —  $ 14 
Commercial real estate 1  —  —  —  —  — 
Residential mortgage 207  —  28  1  —  29 
Automobile 625  —  4  1  —  5 
Home equity 42  —  1  1  —  2 
RV and marine 39  —  1  —  —  1 
Other consumer 30  —  —  —  —  — 
Total new TDRs 997  $ 11  $ 37  $ 3  $ —  $ 51 
Three Months Ended March 31, 2021
Number of
Contracts		 Post-modification Outstanding Recorded Investment (2)
(dollar amounts in millions) Interest rate reduction Amortization or maturity date change Chapter 7 bankruptcy Other Total
Commercial and industrial 12  $ —  $ 5  $ —  $ —  $ 5 
Commercial real estate —  —  —  —  —  — 
Residential mortgage 86  —  13  1  —  14 
Automobile 902  —  7  1  —  8 
Home equity 62  —  1  2  —  3 
RV and marine 49  —  1  —  —  1 
Other consumer 97  —  —  —  1  1 
Total new TDRs 1,208  $ —  $ 27  $ 4  $ 1  $ 32 
(1)TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower.
(2)Post-modification balances approximate pre-modification balances.
Pledged Loans
The Bank has access to the Federal Reserve’s discount window and advances from the FHLB. As of March 31, 2022 and December 31, 2021, these borrowings and advances are secured by $60.9 billion and $61.1 billion, respectively, of loans.