Quarterly report pursuant to Section 13 or 15(d)

LOANS AND LEASES (Tables)

v3.23.1
LOANS AND LEASES (Tables)
3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Loan and Lease Portfolio
The following table provides a detailed listing of Huntington’s loan and lease portfolio at March 31, 2023 and December 31, 2022.
(dollar amounts in millions) At March 31, 2023 At December 31, 2022
Commercial loan and lease portfolio:
Commercial and industrial $ 47,049  $ 45,127 
Commercial real estate 16,377  16,634 
Lease financing 5,244  5,252 
Total commercial loan and lease portfolio 68,670  67,013 
Consumer loan portfolio:
Residential mortgage 22,472  22,226 
Automobile 13,187  13,154 
Home equity 10,166  10,375 
RV and marine 5,404  5,376 
Other consumer 1,280  1,379 
Total consumer loan portfolio 52,509  52,510 
Total loans and leases (1)(2) 121,179  119,523 
Allowance for loan and lease losses (2,142) (2,121)
Net loans and leases $ 119,037  $ 117,402 
(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) premium of $(12) million and $3 million at March 31, 2023 and December 31, 2022, respectively.
(2)The total amount of accrued interest recorded for these loans and leases at March 31, 2023, was $305 million and $187 million of commercial and consumer loan and lease portfolios, respectively, and at December 31, 2022, was $274 million and $186 million of commercial and consumer loan and lease portfolios, respectively. Accrued interest is presented in accrued income and other receivables within the Consolidated Balance Sheets.
Direct Financing Lease, Lease Income
The following table presents net investments in lease financing receivables by category at March 31, 2023 and December 31, 2022.
(dollar amounts in millions) At March 31, 2023 At December 31, 2022
Lease payments receivable $ 4,928  $ 4,916 
Estimated residual value of leased assets 784  788 
Gross investment in lease financing receivables 5,712  5,704 
Deferred origination costs 49  46 
Deferred fees, unearned income and other (517) (498)
Total lease financing receivables $ 5,244  $ 5,252 
NALs and Past Due Loans
The following table presents NALs by class at March 31, 2023 and December 31, 2022:
At March 31, 2023 At December 31, 2022
(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 $ 37  $ 273  $ 49  $ 288 
Commercial real estate 37  86  63  92 
Lease financing —  14  —  18 
Residential mortgage —  81  —  90 
Automobile —  — 
Home equity —  74  —  76 
RV and marine —  — 
Total nonaccrual loans and leases $ 74  $ 533  $ 112  $ 569 
Aging analysis of loans and leases
The following tables present an aging analysis of loans and leases, by class at March 31, 2023 and December 31, 2022:
At March 31, 2023
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 $ 37  $ 23  $ 90  $ 150  $ 46,899  $ —  $ 47,049  $ 12  (2)
Commercial real estate 31  42  82  16,295  —  16,377  — 
Lease financing 34  35  12  81  5,163  —  5,244  10  (3)
Residential mortgage 196  61  181  438  21,848  186  22,472  134  (4)
Automobile 78  16  103  13,084  —  13,187 
Home equity 49  27  68  144  10,021  10,166  18 
RV and marine 13  18  5,386  —  5,404 
Other consumer 13  1,267  —  1,280 
Total loans and leases $ 446  $ 210  $ 373  $ 1,029  $ 119,963  $ 187  $ 121,179  $ 185 
At December 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 $ 53  $ 19  $ 108  $ 180  $ 44,947  $ —  $ 45,127  $ 23  (2)
Commercial real estate 12  16,622  —  16,634  — 
Lease financing 36  18  10  64  5,188  —  5,252  (3)
Residential mortgage 246  69  199  514  21,528  184  22,226  146  (4)
Automobile 88  20  11  119  13,035  —  13,154 
Home equity 56  30  66  152  10,222  10,375  15 
RV and marine 15  23  5,353  —  5,376 
Other consumer 13  19  1,360  —  1,379 
Total loans and leases $ 509  $ 165  $ 409  $ 1,083  $ 118,255  $ 185  $ 119,523  $ 207 
(1)NALs are included in this aging analysis based on the loan’s past due status.
(2)Amounts include SBA loans and leases.
(3)Amounts include Huntington Technology Finance administrative lease delinquencies.
(4)Amounts include mortgage loans insured by U.S. government agencies.
Loan and lease balances by credit quality indicator
The following tables present the amortized cost basis of loans and leases by vintage and credit quality indicator at March 31, 2023 and December 31, 2022 respectively:
At March 31, 2023
Term Loans Amortized Cost Basis by Origination Year Revolver Total at Amortized Cost Basis Revolver Total Converted to Term Loans
(dollar amounts in millions) 2023 2022 2021 2020 2019 Prior Total
Commercial and industrial
Credit Quality Indicator (1):
Pass $ 5,651  $ 13,501  $ 5,680  $ 2,891  $ 1,760  $ 1,956  $ 13,043  $ $ 44,486 
OLEM 33  207  123  52  19  92  170  —  696 
Substandard 58  341  158  199  179  356  575  —  1,866 
Doubtful —  —  —  —  —  —  — 
Total Commercial and industrial $ 5,742  $ 14,049  $ 5,961  $ 3,142  $ 1,958  $ 2,405  $ 13,788  $ $ 47,049 
Commercial real estate
Credit Quality Indicator (1):
Pass $ 620  $ 5,544  $ 2,995  $ 1,438  $ 1,508  $ 1,750  $ 1,509  $ —  $ 15,364 
OLEM 147  46  34  42  —  —  282 
Substandard 65  147  107  39  158  213  —  731 
Total Commercial real estate $ 690  $ 5,838  $ 3,148  $ 1,485  $ 1,700  $ 2,005  $ 1,511  $ —  $ 16,377 
Lease financing
Credit Quality Indicator (1):
Pass $ 471  $ 1,777  $ 1,176  $ 817  $ 409  $ 261  $ —  $ —  $ 4,911 
OLEM 31  28  24  15  —  —  113 
Substandard 71  44  60  21  15  —  —  219 
Doubtful —  —  —  —  —  —  — 
Total Lease financing $ 510  $ 1,876  $ 1,230  $ 901  $ 445  $ 282  $ —  $ —  $ 5,244 
Residential mortgage
Credit Quality Indicator (2):
750+ $ 331  $ 3,774  $ 6,244  $ 3,493  $ 816  $ 2,452  $ —  $ —  $ 17,110 
650-749 137  1,323  1,142  613  216  878  —  —  4,309 
<650 60  73  67  93  572  —  —  867 
Total Residential mortgage
$ 470  $ 5,157  $ 7,459  $ 4,173  $ 1,125  $ 3,902  $ —  $ —  $ 22,286 
Automobile
Credit Quality Indicator (2):
750+ $ 911  $ 2,471  $ 2,021  $ 1,097  $ 655  $ 276  $ —  $ —  $ 7,431 
650-749 422  1,850  1,333  591  308  159  —  —  4,663 
<650 36  351  349  169  105  83  —  —  1,093 
Total Automobile
$ 1,369  $ 4,672  $ 3,703  $ 1,857  $ 1,068  $ 518  $ —  $ —  $ 13,187 
Home equity
Credit Quality Indicator (2):
750+ $ 96  $ 463  $ 557  $ 592  $ 21  $ 298  $ 4,562  $ 240  $ 6,829 
650-749 44  122  83  65  121  2,097  245  2,786 
<650 —  51  354  133  550 
Total Home equity $ 140  $ 588  $ 643  $ 661  $ 32  $ 470  $ 7,013  $ 618  $ 10,165 
RV and marine
Credit Quality Indicator (2):
750+ $ 250  $ 1,080  $ 981  $ 685  $ 339  $ 733  $ —  $ —  $ 4,068 
650-749 33  305  303  193  116  270  —  —  1,220 
<650 —  20  18  16  53  —  —  116 
Total RV and marine $ 283  $ 1,394  $ 1,304  $ 896  $ 471  $ 1,056  $ —  $ —  $ 5,404 
Other consumer
Credit Quality Indicator (2):
750+ $ 66  $ 111  $ 55  $ 29  $ 28  $ 60  $ 363  $ $ 715 
650-749 21  63  26  10  12  16  339  15  502 
<650 —  34  13  63 
Total Other consumer $ 87  $ 179  $ 85  $ 41  $ 43  $ 78  $ 736  $ 31  $ 1,280 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
At December 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 $ 16,480  $ 6,597  $ 3,279  $ 2,040  $ 1,068  $ 1,163  $ 12,077  $ $ 42,707 
OLEM 108  139  72  21  49  26  112  —  527 
Substandard 364  181  189  212  141  255  550  —  1,892 
Doubtful —  —  —  —  —  —  — 
Total Commercial and industrial $ 16,952  $ 6,917  $ 3,540  $ 2,273  $ 1,258  $ 1,445  $ 12,739  $ $ 45,127 
Commercial real estate
Credit Quality Indicator (1):
Pass $ 5,634  $ 3,260  $ 1,616  $ 1,728  $ 917  $ 1,044  $ 1,502  $ —  $ 15,701 
OLEM 61  53  43  —  —  173 
Substandard 235  118  105  75  85  140  —  760 
Total Commercial real estate $ 5,930  $ 3,431  $ 1,722  $ 1,846  $ 1,008  $ 1,193  $ 1,504  $ —  $ 16,634 
Lease financing
Credit Quality Indicator (1):
Pass $ 1,930  $ 1,291  $ 952  $ 447  $ 186  $ 143  $ —  $ —  $ 4,949 
OLEM 32  15  18  —  —  83 
Substandard 65  37  74  24  11  —  —  220 
Total Lease financing $ 2,027  $ 1,337  $ 1,041  $ 489  $ 201  $ 157  $ —  $ —  $ 5,252 
Residential mortgage
Credit Quality Indicator (2):
750+ $ 3,666  $ 6,274  $ 3,566  $ 846  $ 469  $ 2,070  $ —  $ —  $ 16,891 
650-749 1,394  1,172  617  211  137  777  —  —  4,308 
<650 49  68  61  95  90  480  —  —  843 
Total Residential mortgage $ 5,109  $ 7,514  $ 4,244  $ 1,152  $ 696  $ 3,327  $ —  $ —  $ 22,042 
Automobile
Credit Quality Indicator (2):
750+ $ 2,770  $ 2,212  $ 1,243  $ 777  $ 289  $ 98  $ —  $ —  $ 7,389 
650-749 1,944  1,508  683  367  162  52  —  —  4,716 
<650 307  352  173  115  67  35  —  —  1,049 
Total Automobile $ 5,021  $ 4,072  $ 2,099  $ 1,259  $ 518  $ 185  $ —  $ —  $ 13,154 
Home equity
Credit Quality Indicator (2):
750+ $ 463  $ 573  $ 611  $ 23  $ 20  $ 301  $ 4,787  $ 252  $ 7,030 
650-749 131  88  68  122  2,129  261  2,816 
<650 51  335  129  528 
Total Home equity $ 597  $ 664  $ 682  $ 34  $ 30  $ 474  $ 7,251  $ 642  $ 10,374 
RV and marine
Credit Quality Indicator (2):
750+ $ 1,148  $ 1,031  $ 731  $ 361  $ 354  $ 438  $ —  $ —  $ 4,063 
650-749 290  315  200  118  113  169  —  —  1,205 
<650 18  15  17  17  36  —  —  108 
Total RV and marine $ 1,443  $ 1,364  $ 946  $ 496  $ 484  $ 643  $ —  $ —  $ 5,376 
Other consumer
Credit Quality Indicator (2):
750+ $ 207  $ 64  $ 35  $ 34  $ 13  $ 52  $ 393  $ $ 801 
650-749 71  30  12  15  14  355  16  517 
<650 33  14  61 
Total Other consumer $ 281  $ 97  $ 49  $ 52  $ 18  $ 68  $ 781  $ 33  $ 1,379 
(1)Consistent with the credit quality disclosures, indicators for the Commercial portfolio are based on internally defined categories of credit grades.
(2)Consistent with the credit quality disclosures, indicators for the Consumer portfolio are based on updated customer credit scores refreshed at least quarterly.
The following tables present the gross charge-offs of loans and leases by vintage.
Term Loans Gross Charge-offs by Origination Year
Revolver Gross Charge-offs
Revolver Converted to Term Loans Gross Charge-offs
(dollar amounts in millions) 2023 2022 2021 2020 2019 Prior Total
Three Months Ended March 31, 2023
Commercial and industrial
$ $ 14  $ $ $ $ —  $ $ —  $ 32 
Commercial real estate
—  —  19  —  —  —  —  —  19 
Lease Financing
—  —  —  —  —  —  — 
Residential mortgage
—  —  —  —  —  — 
Automobile
—  —  —  12 
Home equity
—  —  —  —  —  — 
RV and marine
—  —  —  — 
Other consumer
—  27 
Total
$ $ 25  $ 33  $ 10  $ $ $ $ $ 99 
Summary of modifications
The following table summarizes the amortized cost basis of loans modified during the reporting period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification.
Amortized Cost
(dollar amounts in millions) Interest rate reduction Term extension Combo - interest rate reduction and term extension Total % of total loan class (1)
Three months ended March 31, 2023
Commercial and industrial $ 35  $ 124  $ $ 162  0.34  %
Commercial real estate —  48  —  48  0.29 
Residential mortgage —  23  24  0.11 
Automobile —  —  0.02 
Home equity —  —  0.03 
RV and marine —  —  0.02 
Total loans made to borrowers experiencing financial difficulty in which modifications were made $ 35  $ 199  $ $ 241 
(1)Represents the amortized cost of loans modified during the reporting period as a percentage of the period-end loan balance by class.
The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty.
Interest Rate Reduction Term Extension
Weighted-average contractual interest rate Weighted-average years added to the life
From To
Three months ended March 31, 2023
Commercial and industrial 7.60  % 6.80  % 0.9
Commercial real estate     0.6
Residential mortgage 5.36  4.14  6.3
Automobile     2.1
Home equity 8.13  5.59  16.6
RV and marine     3.1
The following table depicts the performance of loans that have been modified during the reporting period.
At March 31, 2023
Past Due
(dollar amounts in millions) 30-59
 Days
60-89
 Days
90 or 
more days
Total Current Total
Commercial and industrial $ —  $ —  $ —  $ —  $ 162  $ 162 
Commercial real estate —  —  —  —  48  48 
Residential mortgage —  16  24 
Automobile —  —  —  — 
Home equity —  —  —  — 
RV and marine —  —  —  — 
Total loans made to borrowers experiencing financial difficulty in which modifications were made in the three months ended March 31, 2023 $ $ $ —  $ $ 233  $ 241 
Summary of Troubled Debt Restructuring Note, Debtor
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 period ended March 31, 2022.
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 concession Amortization or maturity date change Chapter 7 bankruptcy Total
Commercial and industrial 53  $ 11  $ $ —  $ 14 
Commercial real estate —  —  —  — 
Residential mortgage 207  —  28  29 
Automobile 625  — 
Home equity 42  — 
RV and marine 39  —  — 
Other consumer 30  —  —  —  — 
Total new TDRs 997  $ 11  $ 37  $ $ 51 
(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.