Huntington Bancshares Incorporated · NASDAQ:HBAN
Huntington Bancshares — Q4 2023 Earnings Presentation
64 slides from Huntington Bancshares's earnings presentation, Jan 19, 2024
Slide 1: 2023 Fourth Quarter Earnings Review
Welcome.® 2023 Fourth Quarter Earnings Review January 19, 2024 The Huntington National Bank is Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2024 Huntington Bancshares Incorporated.
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
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
Slide 4: Key Messages
Key Messages Capitalizing on position of strength, leveraging robust capital base, and executing 1 growth initiatives Generating outperformance in core deposits through acquiring and deepening primary bank 2 relationships, and delivering high-quality loan growth 3 Driving revenue trends, including i
Slide 5: 2023 Review | Performing Through a Dynamic Environment
2023 Review | Performing Through a Dynamic Environment Loan Growth Deposit Growth Revenue Awarded YoY (EOP) YoY (EOP) FY23 Expertise $2.5B $3.3B $7.4B #1 Customer Satisfaction - J.D. Power(1) +2.1% +2.2% +1.6% #1 Mobile App - J.D. Power(1) Consumer +2.2% Net Interest Income #1 SBA Lender Natio
Slide 6: 2024 Management Focus
2024 Management Focus Operate Leverage strong capital base to support balance sheet growth from Position of Strength Seize opportunities to attract talented bankers in new verticals and regions Accelerate high-quality loan growth with attractive return profile Drive Revenue Power fee revenue
Slide 7: 2023 Fourth Quarter Financial Performance
2023 Fourth Quarter Financial Performance Key Metrics Highlights GAAP Adjusted(1) EPS $0.15 $0.27 GAAP EPS of $0.15; adjusted EPS of $0.27 excluding Notable Items Notable Items: $0.12 related to the FDIC special assessment, staffing efficiencies, and GAAP Adjusted(1) corporate real estate consol
Slide 8: 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 +2.0% Average balances increased $0.4 billion, or 0.4% $118.9 $120.4 $121.3 $120.8 $121.2 Average commercial balances increased $0.1 billion, or 0.2% Average consumer balances incre
Slide 9: Sustained Deposit Growth
Sustained Deposit Growth +2.7% ADB YoY +2.2% EOP YoY $151.2 $149.7 $147.9 $148.0 $148.2 $148.9 $145.7 $146.1 $145.3 $145.6 $143.3 $142.3 1.13% 1.57% 1.91% 2.14% 0.03% 0.64% 4Q21 4Q22 1Q23 2Q23 3Q23 4Q23 ADB EOP Total cost of deposits Total Average Deposit Growth 2-Year CAGR +2.6% Note: $ in billions
Slide 10: Deposits | Continued Sequential Growth
Deposits | Continued Sequential Growth Deposit Balance Trend Deposit Highlights End of Period Monthly Averages Core balances represented majority of net growth since YE22 $151.2 $149.8 $150.5 Core average consumer have increased $148.0 $148.9 $147.4 $148.2 $148.8 $148.7 $146.7 $145.3 $144.9 $145
Slide 11: 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 $151 Total Deposits $99 $102 $94 $95 $82 $87 Interest Bearing 31.7% 31.4% 30.2% 29.8% 29.0% 27.9% 25.9% 25.3% 24.6% 24.2% 29.4% 28.9% 28.9% 30.6% 22.5% 21.3%
Slide 12: 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 (4Q21-4Q23) Paycheck Protection Program (PPP) 8.0% $1,412 $1,471 $1,418 $1,357 $1,379 $1,327 $1,267 $20 $12 $10 $6 $1,138 $1,154 $8 $7 $1, 400.0
Slide 13: Loan Yields | Benefitting From Fixed Rate Re-Pricing
Loan Yields | Benefitting From Fixed Rate Re-Pricing Loan Portfolio Composition (as of 4Q23) Highlights Both variable rate and short-term loan portfolios benefited from Fixed asset repricing 31% Variable Auto portfolio weighted-average life (WAL) less than 2 years 48% Residential mortgage-ARM
Slide 14: Net Interest Income Outlook
Net Interest Income Outlook Drivers of Net Interest Income Net Interest Income $ in millions Range of net interest income growth 1 Continued Loan Growth dependent on level of interest rates and pace of loan growth Expect acceleration of loans in 2024 Broad-based organic growth opportunities, foc
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 $93 uninsured deposits highlighting the proactive $11 $10 Cash $11 approach to liquidity risk management and strength of $61 our granular deposi
Slide 16: Securities Portfolio
Securities Portfolio Average Securities + Cash(1) Highlights Average Securities Cash EOP $54.4 Reinitiated securities re-investing in Q4, purchased $49.6 $50.8 $50.8 $50.3 $52.0 $47.3 $3.0 billion at a 5.40% yield $7.7 $12.7 $10.8 $11.3 $11.4 $10.1 $6.3 Incremental growth in short duration Treas
Slide 17: Accumulated Other Comprehensive Income Dollars
Accumulated Other Comprehensive Income Dollars AOCI Recapture(1) Highlights $ in billions Projecting ~44% total AOCI accretion by YE26 AOCI recaptured to date represents 52bps of tangible common equity $3.6 Dynamically managing hedge position subject to risk profile and market conditions $2.7
Slide 18: Balance Sheet Management Strategy
Balance Sheet Management Strategy Hedging Program Overview Weighted Notional WAL Program Avg Rate Description 4Q23 Actions ($) (Years) (%) Capital Protection: PF Swaps $11.6 1.49 3.53 Protects capital if rates increase No actions Designed to protect capital Economic Hedges: 6-month/1-year swaptions
Slide 19: Noninterest Income | Aligned Reporting to Key Fee Areas
Noninterest Income | Aligned Reporting to Key Fee Areas Fee Revenue Mix (4Q23)(1) 1 Capital Markets & Advisory Capital Markets & Advisory Fees $ in millions Poised for reacceleration as risk to $88 All Other Payments & Cash higher interest rates subsides $65 $62 $69 Noninterest Management $52 Bu
Slide 20: Noninterest Income | Diversified Fee Revenues
Noninterest Income | Diversified Fee Revenues Noninterest Income Noninterest Income by Category (1)(2) Notable Items MTM-PF Swaptions CRT $512 $509 $499 $495 $499 $512 $495 $509 $405 $405 $57 $18 $33 Notable Items $57 $18 $33 $88 $62 $52 $69 Capital Markets $65 & Advisory $499 $455 $477 $476 $481 $1
Slide 21: Noninterest Expense
Noninterest Expense Noninterest Expense (NIE) Highlights NIE excluding Notable Items Notable Items vs Linked Quarter $1,348 Reported NIE increased $258 million $226 million of Notable Items include expenses related to the $1,077 $1,086 $1,090 $226 $1,050 FDIC DIF special assessment, continued st
Slide 22: Capital Positioning | Robust Capital Generation Power
Capital Positioning | Robust Capital Generation Power CET1 Ratio Highlights (1) CET1 Adj. AOCI Adj. for Cash Flow Hedges Target operating range 9–10% Inclusive of AOCI and one-time actions, adjusted CET1 increased QoQ (+58 bps) 9.55% 9.82% 10.10% 10.25% 9.36% Capital Priorities include 1.67% 1.6
Slide 23: 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% 1.97% 1.89% 1.87% 1.87% 1.89% 1.90% 1.90% 1.93% 0.32% 1.70% 0.28% 0.31% 2.00% 0.24% 1.80% 0.20% 0.19%
Slide 24: 2024 Outlook
2024 Outlook FY24 vs. FY23 Guidance Commentary As of 1/19/24 Average Loans Reflective of accelerated loan growth, while Up 3% - 5% FY23 Baseline = $120.9 billion supporting capital accretion Average Deposits Up 2% - 4% Acquiring and deepening primary bank relationships FY23 Baseline = $147.4 billion
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-Provision Net Revenue (PPNR), Earnings Per Share (EPS) Pre-Provision Net Revenue 4Q22 1Q23 2Q23 3Q23 4Q23 ($ in millions) Total revenue (GAAP) $1,961 $1,921 $1,841 $1,877 $1,721 FTE adjustment 9 9 11 11 11 Total revenue (FTE) A 1,970 1,930 1,852 1,888 1,732 Less: gain on
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Average Tangible Common Equity, ROTCE ($ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 FY 2023 Average common shareholders’ equity $15,292 $15,973 $16,359 $16,256 $16,275 $16,217 Less: intangible assets and goodwill 5,771 5,759 5,734 5,722 5,710 5,731 Add: net tax effect of intangibl
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Noninterest Expense, Efficiency Efficiency Ratio ($ in millions) – Pre-tax 4Q22 1Q23 2Q23 3Q23 4Q23 Noninterest expense (GAAP) $1,077 $1,086 $1,050 $1,090 $1,348 Less: intangible amortization 13 13 13 12 12 Noninterest expense less amortization of intangibles (A) $1,
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Interest Margin%, Common Equity Tier 1 (CET1) Net Interest Margin (in percent) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Net Interest Margin (GAAP) 2.85% 2.88% 3.15% 3.42% 3.52% 3.40% 3.11% 3.20% 3.07% Less: Purchase Accounting Accretion (0.06%) (0.05%) (0.04%) (0.04%)
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible common equity ratio, Tangible book value per share Tangible Common Equity Ratio ($ in millions) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Huntington shareholders’ equity $19,297 $18,452 $17,950 $17,136 $17,731 $18,758 $18,788 $18,483 $19,353 Less: preferred stock
Slide 30: Appendix
Appendix 2023 Fourth Quarter Earnings Review 30
Slide 31: 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
Slide 32: 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
Slide 33: Table of Contents
Table of Contents Driving Sustained Profitability 34 Credit and Capital 55 Noninterest Income Presentation 35 CET1 Comparison 56 Medium-Term Financial Targets 36 Commercial Credit 57 Purchase Accounting Detail 37 Consumer Credit 58 Preferred Dividends 38 Delinquencies 60 Digital Metrics 39 Criticize
Slide 34: Driving Sustained Profitability
Driving Sustained Profitability Pre-Provision Net Revenue (PPNR) PPNR (GAAP) PPNR (Adjusted for Notable Items) $893 $908 $844 $828 $802 $807 $798 $813 $613 $384 4Q22 1Q23 2Q23 3Q23 4Q23 Return on Tangible Common Equity % Notable Items ROTCE (GAAP) Adj. ROTCE ex AOCI 26.5% 22.7% 26.0% 19.9% 20.0% 23.
Slide 35: Noninterest Income | Strategically Realigning Categories
Noninterest Income | Strategically Realigning Categories Noninterest Income ($ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 Description Credit and debit interchange fees and fees earned from providing cash management Payments and cash management revenue $142 $137 $146 $152 $150 services to corporate deposi
Slide 36: Medium-Term Financial Targets
Medium-Term Financial Targets PPNR ROTCE Positive Growth 20%+ Operating 6 – 9% Leverage ROTCE ex-AOCI 17% – 19% Adjusted CET1 Ratio: 9 – 10% Operating Net Charge-offs: 25 – 45 bps through the cycle Assumptions Tax Rate: 19 – 21% 2023 Fourth Quarter Earnings Review 36
Slide 37: Impact of Purchase Accounting
Impact of Purchase Accounting Purchase Accounting Accretion (PAA) Summary Actuals Projected ($ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Loans and Leases $10 $8 $5 $5 $4 $3 $4 $3 $3 Long-term Debt 3 3 3 3 3 3 3 3 3 Deposits -- -- -- -- -- -- -- -- -- Other (2) (1) 0 (2) 0 0 0 0 0 Sub
Slide 38: Estimated Preferred Dividends
Estimated Preferred Dividends Actuals Projected(1) ($ in millions) 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 FY2024 Dividends on preferred shares $37 $36 $36 $35 $35 $35 $141 Impact of preferred stock repurchases - (8) - - - - - Net preferred dividends and impact of preferred stock repurchases $37 $28 $36 $35 $
Slide 39: 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 3.36 3.44 3.42 3.45 3.48 44% 42% 43% 40% 36% 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 Ave
Slide 40: Mortgage Banking Noninterest Income Summary
Mortgage Banking Noninterest Income Summary Mortgage Banking Income (MBI) Total Production Mix(2) $120 10% 10% 6% 8% 8% $100 1.89% 1.75% 1.75% $80 $60 1.41% 1.07% 90% 90% 94% 92% 92% $40 $33 $25 $26 $27 $11 $23 $9 $10 $11 $11 $20 $16 $16 $22 $16 $- $12 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q
Slide 41: Balance Sheet
Balance Sheet 2023 Fourth Quarter Earnings Review 41
Slide 42: 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 +1.7% Average balances increased $0.1 billion, or 0.2% $67.9 $68.7 $67.6 $66.4 $67.5 vs Prior Year Average balances increased $1.1 billion, or 1.7% 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 43: Commercial Real Estate (CRE) Overview
Commercial Real Estate (CRE) Overview CRE Loans as % of Total Loans Portfolio Characteristics Peer Median: 15% Peers at 3Q23 Well diversified portfolio with rigorous client selection Peer 1 9% CRE reserve coverage 4.2% vs peer median of 2% (3Q23) Peer 2 9% HBAN 10% Office reserve coverage of ~
Slide 44: Minimal Exposure to Leveraged Lending
Minimal Exposure to Leveraged Lending Loan Portfolio Composition (4Q23) Highlights $2.9 billion, or 2.4% of total loan balances, with a defined All Other portfolio concentration limit 97.6% HNB leveraged defined as: Senior leverage 3.0x, total leverage 4.0x The portfolio is built around our re
Slide 45: High Quality, Granular Deposit Franchise
High Quality, Granular Deposit Franchise Leading Percent of Insured Deposits(1) Diversification by Business Lines (4Q23) Banks at 3Q23 HBAN (4Q23) 70% Consumer Bank 1 As of 1Q23 64% 52% BAC 63% 24% Commercial Bank 2 62% Bank 3 59% Bank 4 59% 13% C 58% 4% 6% Other Business Banking Bank 5 57% 1% Vehic
Slide 46: Stable, Diversified Sources of Wholesale Funds
Stable, Diversified Sources of Wholesale Funds Historical issuance, smooth runoff profile and optimization of funding costs Wholesale Funding Issuances and Maturities Quarterly Wholesale Maturities through 2025 ($ in billions) ($ in billions) HoldCo Sr HoldCo Sub Bank Sr Bank Sub $0.5 $0.5 2021 ($0.
Slide 47: 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 solutions for commercial customers $62.2 $58.1 $60.0 Total +13% $55.
Slide 48: Auto – Production Trend
Auto – Production Trend Originations 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Amount ($ in billions) $1.2 $1.4 $1.1 $1.5 $1.2 $1.4 $1.8 $1.7 $1.8 % new vehicles 43% 35% 42% 43% 39% 35% 38% 41% 40% Avg. LTV 84% 86% 87% 87% 85% 84% 84% 84% 84% Avg. FICO 782 778 776 781 779 777 778 774 776 Vintage
Slide 49: Auto – Proven Track Record of Strategic Growth
Auto – Proven Track Record of Strategic Growth Optimize through the Cycle Know when to pull and press on production to maximize returns Indirect Auto Production ($B) and New Origination Yield 7.1% 7.2% $1.9 $1.9 6.9% $1.8 $1.8 $1.8 6.3% $1.7 $1.7 $1.6 $1.6 $1.6 $1.6 5.9% $1.5 $1.5 $1.4 $1.4 $1.4 $1.
Slide 50: 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 $13.2 $13.2 $12.8 $12.7 $12.2 $12.5 $12.9 $12.9 $12.5 Strong Credit Quality $11.0 Auto Loans and % $8.7 $9.5 Industry knowledge and focus on of Total Loans $6.7 18.3% 18.8% 16.4% 17.5%
Slide 51: Vehicle Finance – Origination Trends
Vehicle Finance – Origination Trends Auto Loans: 2023 2022 2021 2020 2019 2018 2017 2016 Originations ($ in billions) $5.2 $6.1 $6.9 $5.9 $6.1 $5.8 $6.2 $5.8 % new vehicles 40% 38% 43% 47% 46% 47% 50% 49% Avg. LTV(1) 86% 84% 85% 89% 90% 89% 88% 89% Avg. FICO 779 777 772 775 772 766 767 765 Weighted
Slide 52: Residential Mortgage and Home Equity Origination Trends
Residential Mortgage and Home Equity Origination Trends Residential Mortgage: 2023 2022 2021 2020 2019 2018 2017 2016 Originations ($ in billions) $3.4 $5.4 $6.6 $4.7 $2.9 $2.9 $2.7 $1.9 Avg. LTV 85% 81% 76% 77% 81% 83% 84% 84% Avg. FICO 765 765 768 767 761 758 760 751 Home Equity: 2023 2022 2021 20
Slide 53: Change in Common Shares Outstanding
Change in Common Shares Outstanding Share Count (In millions) 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 Beginning shares outstanding 1,448 1,448 1,444 1,443 1,443 1,443 1,439 1,438 Employee equity compensation 0 0 4 1 0 0 4 1 Share repurchases - - - - - - - - Ending shares outstanding 1,448 1,448 1,44
Slide 54: Tangible Book Value (TBV) per Share
Tangible Book Value (TBV) per Share Tangible Book Value per Share TBVPS Adjusted TBVPS, ex AOCI $9.63 $9.64 $9.40 $9.23 $8.96 $8.67 $8.38 $8.42 $8.22 $8.06 $7.79 $7.47 $7.32 $7.33 $6.96 $7.12 $6.82 $6.40 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Adjusted TBV per Share CAGR +8.3% (4Q21-4Q23) See r
Slide 55: Credit and Capital
Credit and Capital 2023 Fourth Quarter Earnings Review 55
Slide 56: CET1 Comparison versus Peers
CET1 Comparison versus Peers CET1 (Reported and Adjusted for ACL) Peers at 3Q23 12.3% 12.0% 11.8% 11.7% 11.7% 11.6% 11.3% 11.3% 11.3% 11.1% 11.0% 11.0% 1.4% 1.7% 1.7% 0.9% 1.3% 1.3% CET1 + ACL 1.6% 1.1% 1.5% 1.3% 1.1% 1.2% ACL Impact 10.9% 10.3% 10.8% 10.4% 10.3% 10.1% 9.7% 10.2% 9.8% 9.8% 9.9% 9.8%
Slide 57: Commercial Credit Quality Review
Commercial Credit Quality Review Commercial and Industrial: 4Q23 3Q23 2Q23 1Q23 4Q22 Period end balance(1) ($ in billions) $50.7 $49.4 $49.8 $50.0 $48.1 30+ days PD and accruing 0.15% 0.11% 0.08% 0.09% 0.14% 90+ days PD and accruing 0.00% 0.00% 0.01% 0.02% 0.05% NCOs (annualized) 0.32% 0.26% 0.15% 0
Slide 58: Consumer Credit Quality Review
Consumer Credit Quality Review Home Equity: 4Q23 3Q23 2Q23 1Q23 4Q22 Period end balance ($ in billions) $10.1 $10.1 $10.1 $10.2 $10.4 30+ days PD and accruing 1.09% 0.92% 0.89% 0.86% 0.91% 90+ days PD and accruing 0.21% 0.18% 0.17% 0.17% 0.14% NCOs (annualized) 0.01% -0.01% -0.02% -0.02% -0.04% NALs
Slide 59: Consumer Credit Quality Review, continued
Consumer Credit Quality Review, continued Automobile: 4Q23 3Q23 2Q23 1Q23 4Q22 Period end balance ($ in billions) $12.5 $12.7 $12.8 $13.2 $13.2 30+ days PD and accruing 0.96% 0.86% 0.78% 0.76% 0.89% 90+ days PD and accruing 0.07% 0.06% 0.05% 0.05% 0.07% NCOs (annualized) 0.27% 0.14% 0.10% 0.14% 0.12
Slide 60: Delinquencies
Delinquencies Commercial (30+ Days(1)) Commercial (90+ Days(1)) 0.43% 0.39% 0.33% 0.32% 0.30% 0.26% 0.23% 0.19% 0.20% 0.19% 0.07% 0.15% 0.05% 0.12% 0.04% 0.04% 0.03% 0.03% 0.03% 0.03% 0.02% 0.02% 0.01% 0.01% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q
Slide 61: Criticized Commercial Loan Analysis
Criticized Commercial Loan Analysis End of Period ($ in millions) 4Q23 3Q23 2Q23 1Q23 4Q22 Criticized beginning-of-period $4,534 $3,870 $3,886 $3,700 $3,843 Additions / increases 1,484 1,555 851 893 859 Advances 180 178 149 159 167 Upgrades to “Pass” (280) (504) (448) (323) (484) Paydowns (610) (486
Slide 62: Capital Hedging Program
Capital Hedging Program Capital Protection Hedge Program – PF Swaptions In March 2023, Huntington began implementing a pay-fixed swaption program (“the Program”) to protect securities market value in scenarios where interest rates increased substantially (+200/+300 basis points). As of September 3
Slide 63: Credit Risk Transfer (CRT) Transaction
Credit Risk Transfer (CRT) Transaction CRT Transaction On December 19, 2023, Huntington completed a synthetic Credit Risk Transfer (“CRT”) transaction related to an approximately $3 billion portfolio of on-balance sheet prime indirect auto loans The transaction reduced risk-weighted assets by ap
Slide 64: Notes
Notes Slide 5: (1) For J.D. Power 2023 award information, visit jdpower.com/awards (2) By number (units) of 7(a) loans nationally Slide 11: (1) Average size data as of 11/30/2023. Excludes deposits classified as corporate and other Slide 12: (1) 4Q21 - $25M PAA and $29M PPP, 1Q22 - $19M PAA and $17M
Huntington Bancshares — Q4 2023 Earnings Presentation on 6ix