Huntington Bancshares Incorporated · NASDAQ:HBAN

Huntington Bancshares — Q3 2023 Earnings Presentation

60 slides from Huntington Bancshares's earnings presentation, Oct 20, 2023

  1. Slide 1: 2023 Third Quarter Earnings Review

    Welcome.® 2023 Third Quarter Earnings Review October 20, 2023 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2023 Huntington Bancshares Incorporated.

  2. Slide 2: Disclaimer

    Disclaimer CAUTION REGARDING FORWARD-LOOKING STATEMENTS The information contained or incorporated by reference in this presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical fa

  3. Slide 3: Huntington: A Purpose-Driven Company

    Huntington: A Purpose-Driven Company OUR PURPOSE OUR VISION We make people’s lives To be the leading better, help businesses People-First, thrive, and strengthen the Digitally Powered Bank communities we serve Purpose and Vision Linked to Business Strategies Guided by Through-the-Cycle Aggregate Mod

  4. Slide 4: Key Messages

    Key Messages Well positioned to manage through the evolving economic landscape, leveraging 1 position of strength to capitalize on opportunities to win in the market 2 Top quartile CET1 capital ratio inclusive of AOCI; capital expanding through 2024 Distinguished deposit base, with core deposit grow

  5. Slide 5: Well Positioned to Thrive and Manage Through the Dynamic Environment

    Well Positioned to Thrive and Manage Through the Dynamic Environment Adj. CET1(1) HBAN  Expanding adjusted CET1 through YE24 8.0% 8.0% Adj. CET1 Top Quartile Peers (2Q) 6.9% Top Quartile vs peers  Optimizing balance sheet to generate the Capital highest returns Deposit Growth since 4Q21(2) 70% Ins

  6. Slide 6: 2023 Third Quarter Financial Performance

    2023 Third Quarter Financial Performance Key Metrics Highlights  GAAP EPS of $0.35; adjusted EPS of $0.36 excluding Notable Items: EPS $0.35 $0.36 Adjusted  $0.01 Notable Items from expenses related to staffing GAAP efficiencies and corporate real estate consolidations  Sustained momentum in core

  7. Slide 7: Loans and Leases | Loan Growth Optimized for Return

    Loans and Leases | Loan Growth Optimized for Return Average Loan and Lease Balances Highlights vs Linked Quarter +3.3%  Average balances down $0.6 billion, or -0.5%, QoQ $120.4 $121.3 $120.8 driven by lower commercial loan balances due to $117.0 $118.9 seasonality and optimization efforts, partiall

  8. Slide 8: Sustained Deposit Growth

    Sustained Deposit Growth +1.5% ADB +1.8% EOP $148.2 $148.9 $147.9 $148.0 $146.0 $146.3 $145.7 $146.1 $145.6 $145.3 0.25% 0.64% 1.13% 1.57% 1.91% 3Q22 4Q22 1Q23 2Q23 3Q23 ADB EOP Total cost of deposits Note: $ in billions unless otherwise noted 2023 Third Quarter Earnings Review 8

  9. Slide 9: Deposits | Continued Sequential Growth

    Deposits | Continued Sequential Growth Deposit Balance Trend Highlights End of Period Monthly Averages vs Linked Quarter Total $148.0 $148.9 $147.4 $148.2 $148.8  Ending total deposits increased $0.9 billion, or $145.3 $144.9 $145.1 $146.7 0.6%  Core deposit balances represented nearly all net dep

  10. Slide 10: Non-Interest Bearing (NIB) Deposit Mix

    Non-Interest Bearing (NIB) Deposit Mix Total Deposits – Ending Balances Pre-TCF Acquisition $143 $142 $143 $147 $145 $146 $148 $145 $148 $149 Total Deposits $94 $95 $99 $102 $82 $81 $82 $82 $87 Interest Bearing 31.7% 31.4% 30.2% 29.8% 29.0% Non-Interest Bearing 30.6% 27.9% 25.9% 25.3% 22.5% 21.3% 24

  11. Slide 11: Net Interest Income | Driving Growth Over Time

    Net Interest Income | Driving Growth Over Time Net Interest Income (FTE)(1) Net Interest Income, ex PAA and PPP Purchase Accounting Accretion (PAA) & CAGR (3Q21-3Q23) Paycheck Protection Program (PPP) 8.7% $1,412 $1,471 $1,418 $1,379 $1,357 $1,267 $20 $12 $10 $8 $6 $1,167 $1, 400.0 0 $1,138 $1,154 $

  12. Slide 12: Deposit Costs | Continued Disciplined Execution

    Deposit Costs | Continued Disciplined Execution Deposit Cost vs Fed Funds Target Rate Current 3Q15-2Q19 Tightening Fed Cycle (+225) 2Q19-4Q21 Easing Fed Cycle (-225) Cycle 5.25 5.50 5.00 4.50 3.25 2.50 2.50 2.00 2.25 2.00 1.75 1.91 1.75 1.75 1.57 1.50 1.00 1.25 0.73 0.75 0.66 0.51 0.50 1.13 0.50 0.2

  13. Slide 13: Loan Yields | Benefitting From Fixed Rate Re-Pricing

    Loan Yields | Benefitting From Fixed Rate Re-Pricing Loan Portfolio Composition (as of 3Q23) Highlights  Positioned the balance sheet to benefit from asset sensitivity and higher interest rates Fixed  Both variable rate and short-term loan portfolios benefited from asset 31% Variable repricing 48%

  14. Slide 14: Securities Portfolio

    Securities Portfolio Average Securities + Cash(1) Highlights Average Securities Cash EOP $54.4  Securities duration 4.5 years; net of hedging 3.6 years $49.6 $50.8 $52.0 $50.3 $47.5 $47.3  Strategically lowered portfolio duration since 2021 $7.7 $12.7 $10.8 $11.1 $4.9 $6.3 $11.4  Securities yield

  15. Slide 15: Diversified Sources of Liquidity

    Diversified Sources of Liquidity Robust Level of Available Liquidity(1) Highlights $ in billions  Peer leading available liquidity as a percent of $88 $91 uninsured deposits highlighting the proactive $11 $11 Cash approach to liquidity risk management and strength of $61 our granular deposit base $

  16. Slide 16: Balance Sheet Management Strategy

    Balance Sheet Management Strategy Hedging Program Overview Weighted Notional WAL Program Avg Rate Description 3Q23 Actions ($) (Years) (%) Capital Protection: PF Swaps $11.7 1.48 3.76 Protects capital if rates increase No material actions Designed to protect capital Economic Hedges: 6-month/1-year s

  17. Slide 17: Noninterest Income | Diversified Fee Revenues

    Noninterest Income | Diversified Fee Revenues Noninterest Income Highlights Noninterest Income Notable Items MTM-PF Swaptions vs Linked Quarter excl. Notable Items & MTM PF Swaptions  Noninterest income increased $14 million QoQ driven by $498 $499 $512 $495 $509 positive MTM on PF swaptions as wel

  18. Slide 18: Strategic Fee Focus Areas | Continued Momentum in Fees

    Strategic Fee Focus Areas | Continued Momentum in Fees Capital Markets Fees Balanced Revenue Mix(1) Advisory / Customer Risk  Building incremental product capabilities M&A Management 34% 31%  Bolstered by Capstone to drive synergies in Capital the core business Markets  Challenging operating envi

  19. Slide 19: Noninterest Expense | Disciplined Expense Management

    Noninterest Expense | Disciplined Expense Management Noninterest Expense (NIE) Highlights vs Linked Quarter $1,053 $1,077 $1,086 $1,090  Reported NIE increased $40 million QoQ $1,050 $15  $15 million of Notable Items includes expenses related to staffing $10 $42 $15 efficiencies and corporate real

  20. Slide 20: Capital Positioning | Building Over the Year

    Capital Positioning | Building Over the Year Common Equity Tier 1 (CET1) Ratio Highlights Target operating range 9 – 10% Strong Capital Position  CET1 continues to grow on a reported basis (+28 bps QoQ) 10.10%  Inclusive of AOCI, CET1 declined QoQ (-12 bps) driven by 9.82% movement of rates 9.55%

  21. Slide 21: Asset Quality and Reserve | Top Tier Reserve Profile

    Asset Quality and Reserve | Top Tier Reserve Profile Net Charge-off Ratio Allowance for Credit Losses (ACL) Through the Cycle Target NCO Range (25 – 45 bps) HBAN Peer Median 2.17% 2.09% 2.01% 1.96% 1.89% 1.87% 1.87% 1.89% 1.90% 1.90% 1.93% 0.32% 1.70% 2.00% 0.28% 0.24% 1.80% 0.20% 1.69% 0.15% 0.17%

  22. Slide 22: 4Q23 Outlook

    4Q23 Outlook 4Q23 vs. 3Q23 Guidance Commentary As of 10/20/23 Average Loans Managing balance sheet to support capital accretion Up ~1% 3Q23 Baseline = $120.8 billion and highest return loan growth Average Deposits Up ~1% Acquiring and deepening primary bank relationships 3Q23 Baseline = $148.2 billi

  23. Slide 23: 2024 Management Priorities

    2024 Management Priorities  Driving continued capital expansion and optimizing asset growth for the highest return opportunities  Sustaining deposit momentum with continued focus on acquiring and deepening primary bank customer relationships, delivering disciplined management of deposit betas  Co

  24. Slide 24: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Pre-Provision Net Revenue (PPNR), Earnings Per Share (EPS) Pre-Provision Net Revenue 3Q22 4Q22 1Q23 2Q23 3Q23 ($ in millions) Total revenue $1,902 $1,961 $1,921 $1,841 $1,877 FTE adjustment 8 9 9 11 11 Total revenue (FTE) A 1,910 1,970 1,930 1,852 1,888 Less: gain on sale of

  25. Slide 25: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Average tangible common equity, ROTCE ($ in millions) 3Q22 4Q22 1Q23 2Q23 3Q23 Average common shareholders’ equity $16,150 $15,292 $15,973 $16,359 $16,256 Less: intangible assets and goodwill 5,781 5,771 5,759 5,734 5,722 Add: net tax effect of intangible assets 43 42 40 36 3

  26. Slide 26: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Efficiency Ratio, Noninterest Expense Efficiency Ratio ($ in millions) – Pre-tax 3Q22 4Q22 1Q23 2Q23 3Q23 Noninterest expense (GAAP) $1,053 $1,077 $1,086 $1,050 $1,090 Less: intangible amortization 13 13 13 13 12 Noninterest expense less amortization of intangibles (A) $1,040

  27. Slide 27: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Net Interest Margin%, Common Equity Tier 1 (CET1) Net Interest Margin (in percent) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Net Interest Margin (GAAP) 2.91% 2.85% 2.88% 3.15% 3.42% 3.52% 3.40% 3.11% 3.20% Less: Purchase Accounting Accretion (0.09%) (0.06%) (0.05%) (0.04%)

  28. Slide 28: Non-GAAP Reconciliation

    Non-GAAP Reconciliation Tangible common equity ratio, Tangible book value per share Tangible Common Equity Ratio ($ in millions) 3Q22 4Q22 1Q23 2Q23 3Q23 Huntington shareholders’ equity $17,136 $17,731 $18,758 $18,788 $18,483 Less: preferred stock 2,167 2,167 2,484 2,484 2,484 Common shareholders’ e

  29. Slide 29: Appendix

    Appendix 2023 Third Quarter Earnings Review 29

  30. Slide 30: Basis of Presentation

    Basis of Presentation Use of Non-GAAP Financial Measures This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, th

  31. Slide 31: Basis of Presentation

    Basis of Presentation Rounding Please note that columns of data in this document may not add due to rounding. Notable Items From time to time, revenue, expenses, or taxes are impacted by items judged by management to be outside of ordinary banking activities and/or by items that, while they may be a

  32. Slide 32: Table of Contents

    Table of Contents Driving Sustained Profitability 33 Credit and Capital 53 Medium-Term Financial Targets 34 CET1 Comparison 54 Purchase Accounting Detail 35 Commercial Credit 55 Digital Metrics 36 Consumer Credit 56 Mortgage Banking Noninterest Income 37 Delinquencies 58 Balance Sheet 38 Criticized

  33. Slide 33: Driving Sustained Profitability

    Driving Sustained Profitability Pre-Provision Net Revenue (PPNR) PPNR (GAAP) PPNR (Adjusted for Notable Items) $867 $893 $908 $857 $844 $828 $813 $802 $807 $798 3Q22 4Q22 1Q23 2Q23 3Q23 Return on Tangible Common Equity % Notable Items ROTCE (GAAP) Adj. ROTCE ex AOCI 26.5% 22.2% 26.0% 22.7% 23.1% 19.

  34. Slide 34: Medium-Term Financial Targets

    Medium-Term Financial Targets PPNR ROTCE Positive Growth Operating 6 – 9% 20%+ Leverage ROTCE ex-AOCI 17% – 19%  CET1 Ratio: 9 – 10% Operating  Net Charge-offs: 25 – 45 bps through the cycle Assumptions  Tax Rate: 19 – 21% 2023 Third Quarter Earnings Review 34

  35. Slide 35: Impact of Purchase Accounting

    Impact of Purchase Accounting Purchase Accounting Accretion (PAA) Summary Actuals Projected ($ in millions) 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Loans and Leases $12 $10 $8 $5 $5 $3 $3 $4 $3 Long-term Debt 3 3 3 3 3 3 3 3 3 Deposits -- -- -- -- -- -- -- -- -- Other 0 (2) (1) 0 (2) 0 0 0 0 Su

  36. Slide 36: Consumer and Business Banking Digital Metrics

    Consumer and Business Banking Digital Metrics Digital Engagement Digital Originations Average Monthly Active Digital Users(1) New Consumer Deposit Accounts(3) (Millions) Includes Checking, Savings, MMA 3.34 3.36 3.44 3.42 3.45 42% 43% 40% 38% 36% 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 Ave

  37. Slide 37: Mortgage Banking Noninterest Income Summary

    Mortgage Banking Noninterest Income Summary Mortgage Banking Income (MBI) Salable Production Mix $100 11% 10% 10% 6% 8% $80 1.89% 1.71% 1.75% 1.75% 1.41% $60 89% 90% 90% 94% 92% $40 $33 $26 $25 $26 $27 $11 $20 $1 $9 $10 $11 $25 $22 $16 $16 $16 $- 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 MBI

  38. Slide 38: Balance Sheet

    Balance Sheet 2023 Third Quarter Earnings Review 38

  39. Slide 39: Loans and Leases | Loan Growth Optimized for Return

    Loans and Leases | Loan Growth Optimized for Return Commercial Average Loan and Lease Balances Highlights vs Linked Quarter +4.4% $68.7  Average balances decreased $1.2 billion, or $67.9 $67.5 $66.4 -1.8% QoQ $64.7 vs Prior Year  Average balances increased $2.8 billion, or 4.4% YoY 3Q22 4Q22 1Q23

  40. Slide 40: Commercial Real Estate (CRE) Overview

    Commercial Real Estate (CRE) Overview CRE Loans as % of Total Loans Portfolio Characteristics Peer Median: 15% Peers at 2Q23  Well diversified portfolio with rigorous client selection Peer 1 9%  CRE reserve coverage 3.8% vs peer median of 2% (2Q23) Peer 2 9%  Office reserve coverage of >9% HBAN 1

  41. Slide 41: Minimal Exposure to Leveraged Lending

    Minimal Exposure to Leveraged Lending Loan Portfolio Composition Highlights  $3.1 billion, or 2.5% of total loan balances, with a defined All Other portfolio concentration limit 97.5%  HNB leveraged defined as: Senior leverage 3.0x, total leverage 4.0x  The portfolio is built around our relations

  42. Slide 42: High Quality, Granular Deposit Franchise

    High Quality, Granular Deposit Franchise Leading Percent of Insured Deposits(1) Diversification by Business Lines.. Banks at 2Q23 HBAN 70% Consumer Bank 1 63% As of 1Q23 BAC 63% 51% Bank 2 60% 25% Commercial Bank 3 59% C 59% Bank 4 59% 4% 13% Bank 5 6% 58% Other Business Banking 1% Bank 6 58% Vehicl

  43. Slide 43: Balance Sheet Management

    Balance Sheet Management Asset Sensitivity (+100 bp ramp) NII at risk +100 2.8% 2.9% 2Q23 3Q23 Loan Portfolio Composition (as of 3Q23) Fixed 31% Variable 48% ARMs 10% Indirect Auto 11% 2023 Third Quarter Earnings Review 43

  44. Slide 44: Stable, Diversified Sources of Wholesale Funds

    Stable, Diversified Sources of Wholesale Funds Historical issuance, smooth runoff profile and optimization of funding costs Wholesale Funding Issuances and Maturities Quarterly Wholesale Maturities through 2025 ($ in billions) ($ in billions) HoldCo Sr HoldCo Sub Bank Sr Bank Sub $0.5 2021 $0.5 ($0.

  45. Slide 45: Commercial Deposit Relationships Bolstered by Off Balance Sheet Liquidity Management Solutions

    Commercial Deposit Relationships Bolstered by Off Balance Sheet Liquidity Management Solutions Commercial Off B/S Overview Total Commercial Banking Segment Liquidity (Average) 2019: Enhanced off balance sheet liquidity YoY Annually $58.1 $60.0 solutions for commercial customers $55.1 $56.9 Total +15

  46. Slide 46: Auto – Production Trend

    Auto – Production Trend Originations 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 Amount ($ in billions) $1.4 $1.1 $1.5 $1.2 $1.4 $1.8 $1.7 $1.8 $1.8 % new vehicles 35% 42% 43% 39% 35% 38% 41% 40% 38% Avg. LTV 86% 87% 87% 85% 84% 84% 84% 84% 85% Avg. FICO 778 776 781 779 777 778 774 776 772 Vintage

  47. Slide 47: Auto – Proven Track Record of Strategic Growth

    Auto – Proven Track Record of Strategic Growth Optimize through the Cycle Know when to pull and press on production to maximize returns Indirect Auto Production ($B) and New Origination Yield $1.9 $1.9 7.1% $1.8 $1.8 $1.8 6.9% $1.7 $1.7 6.3% $1.6 $1.6 $1.6 $1.6 $1.5 5.9% $1.5 $1.4 $1.4 $1.4 $1.4 $1.

  48. Slide 48: Auto – Strong Credit Performance Through the Cycle

    Auto – Strong Credit Performance Through the Cycle Key Highlights of Credit Strength Auto % of Total Loans $13.6 $13.4 $13.2 $13.2 $12.8 $12.7 $12.2 $12.5 $12.9 $12.9 Strong Credit Quality $11.0 Auto Loans and % $8.7 $9.5  Industry knowledge and focus on of Total Loans $6.7 18.3% 18.8% 16.4% 17.5%

  49. Slide 49: Vehicle Finance – Origination Trends

    Vehicle Finance – Origination Trends Auto Loans: 2023 YTD 2022 2021 2020 2019 2018 2017 2016 Originations ($ in billions) $4.0 $6.1 $6.9 $5.9 $6.1 $5.8 $6.2 $5.8 % new vehicles 40% 38% 43% 47% 46% 47% 50% 49% Avg. LTV(1) 86% 84% 85% 89% 90% 89% 88% 89% Avg. FICO 778 777 772 775 772 766 767 765 Weigh

  50. Slide 50: Residential Mortgage and Home Equity Origination Trends

    Residential Mortgage and Home Equity Origination Trends Residential Mortgage: 2023 YTD 2022 2021 2020 2019 2018 2017 2016 Originations ($ in billions) $2.6 $5.4 $6.6 $4.7 $2.9 $2.9 $2.7 $1.9 Avg. LTV 86% 81% 76% 77% 81% 83% 84% 84% Avg. FICO 765 765 768 767 761 758 760 751 Home Equity: 2023 YTD 2022

  51. Slide 51: Change in Common Shares Outstanding

    Change in Common Shares Outstanding Share count in millions 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Beginning shares outstanding 1,448 1,444 1,443 1,443 1,443 1,439 1,438 1,446 Employee equity compensation 0 4 1 0 0 4 1 1 Share repurchases - - - - - - - (10) Ending shares outstanding 1,448 1,448 1,4

  52. Slide 52: Tangible Book Value (TBV) per Share

    Tangible Book Value (TBV) per Share Tangible Book Value per Share TBVPS Adjusted TBVPS, ex AOCI $9.63 $9.40 $9.23 $8.96 $8.67 $7.32 $7.33 $7.12 $6.82 $6.40 3Q22 4Q22 1Q23 2Q23 3Q23 See reconciliation on slide 28 (TBV per Share) 2023 Third Quarter Earnings Review 52

  53. Slide 53: Credit and Capital

    Credit and Capital 2023 Third Quarter Earnings Review 53

  54. Slide 54: CET1 Comparison versus Peers

    CET1 Comparison versus Peers CET1 (Reported and Adjusted for ACL) Peer at 2Q23 11.9% 11.8% 11.6% 11.5% 11.3% 11.2% 11.1% 11.0% 10.8% 1.3% 10.7% 10.7% 10.4% CET1 + ACL 1.7% 1.3% 1.7% 1.3% 0.9% 1.1% 1.5% 1.3% 1.6% 1.1% 1.1% ACL Impact 10.6% 10.1% 10.3% 10.1% 10.3% 10.0% 9.8% 9.5% 9.5% 9.6% 9.3% CET1 R

  55. Slide 55: Commercial Credit Quality Review

    Commercial Credit Quality Review Commercial and Industrial: 3Q23 2Q23 1Q23 4Q22 3Q22 Period end balance(1) ($ in billions) $49.4 $49.8 $50.0 $48.1 $46.7 30+ days PD and accruing 0.11% 0.08% 0.09% 0.14% 0.32% 90+ days PD and accruing 0.00% 0.01% 0.02% 0.05% 0.06% NCOs (annualized) 0.26% 0.15% 0.13% 0

  56. Slide 56: Consumer Credit Quality Review

    Consumer Credit Quality Review Home Equity: 3Q23 2Q23 1Q23 4Q22 3Q22 Period end balance ($ in billions) $10.1 $10.1 $10.2 $10.4 $10.4 30+ days PD and accruing 0.92% 0.89% 0.86% 0.91% 0.71% 90+ days PD and accruing 0.18% 0.17% 0.17% 0.14% 0.11% NCOs (annualized) -0.01% -0.02% -0.02% -0.04% -0.07% NAL

  57. Slide 57: Consumer Credit Quality Review, continued

    Consumer Credit Quality Review, continued Automobile: 3Q23 2Q23 1Q23 4Q22 3Q22 Period end balance ($ in billions) $12.7 $12.8 $13.2 $13.2 $13.4 30+ days PD and accruing 0.86% 0.78% 0.76% 0.89% 0.71% 90+ days PD and accruing 0.06% 0.05% 0.05% 0.07% 0.05% NCOs (annualized) 0.14% 0.10% 0.14% 0.12% 0.07

  58. Slide 58: Delinquencies

    Delinquencies Commercial (30+ Days(1)) Commercial (90+ Days(1)) 0.43% 0.39% 0.33% 0.32% 0.30% 0.26% 0.23% 0.19% 0.20% 0.07% 0.15% 0.05% 0.12% 0.04% 0.04% 0.03% 0.03% 0.03% 0.03% 0.02% 0.02% 0.01% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23

  59. Slide 59: Criticized Commercial Loan Analysis

    Criticized Commercial Loan Analysis End of Period ($ in millions) 3Q23 2Q23 1Q23 4Q22 3Q22 Criticized beginning-of-period $3,870 $3,886 $3,700 $3,843 $4,206 Additions / increases 1,555 851 893 859 735 Advances 178 149 159 167 248 Upgrades to “Pass” (504) (448) (323) (484) (666) Paydowns (486) (515)

  60. Slide 60: Notes

    Notes Slide 5: (1) AOCI adjustment aligned to the GSIB reporting requirement - adjusted by adding back AOCI less cash flow hedges on loan portfolio; approach applied consistently to HBAN & peers. Includes all peers: CMA, FITB, ZION, KEY, MTB, PNC, RF, TFC, CFG, and USB. (2) Source: S&P Global – Incl

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