LOANS / LEASES

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

LOANS / LEASES

LOANS AND LEASES

The following table provides a detailed listing of Huntington’s loan and lease portfolio at September 30, 2022 and December 31, 2021.

(dollar amounts in millions)	September 30, 2022		December 31, 2021
Commercial loan and lease portfolio:
Commercial and industrial	$	44,144	$	41,688
Commercial real estate	16,456		14,961
Lease financing	5,093		5,000
Total commercial loan and lease portfolio	65,693		61,649
Consumer loan portfolio:
Residential mortgage	21,816		19,256
Automobile	13,430		13,434
Home equity	10,440		10,550
RV and marine	5,436		5,058
Other consumer	1,332		1,320
Total consumer loan portfolio	52,454		49,618
Total loans and leases (1)(2)	118,147		111,267
Allowance for loan and lease losses	(2,110)		(2,030)
Net loans and leases	$	116,037	$	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 $42 million and $111 million at September 30, 2022 and December 31, 2021, respectively.

(2)The total amount of accrued interest recorded for these loans and leases at September 30, 2022, was $190 million and $167 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 September 30, 2022 and December 31, 2021.

(dollar amounts in millions)	September 30, 2022		December 31, 2021
Lease payments receivable	$	4,740	$	4,620
Estimated residual value of leased assets	769		774
Gross investment in lease financing receivables	5,509		5,394
Deferred origination costs	42		36
Deferred fees, unearned income and other	(458)		(430)
Total lease financing receivables	$	5,093	$	5,000

The carrying value of residual values guaranteed was $454 million and $473 million as of September 30, 2022 and December 31, 2021, respectively. The future lease rental payments due from customers on sales-type and direct financing leases at September 30, 2022, totaled $4.7 billion and were due as follows: $838 million in 2022, $820 million in 2023, $815 million in 2024, $733 million in 2025, $688 million in 2026, and $846 million thereafter. Interest income recognized for these types of leases was $41 million and $73 million for the three-month periods ended September 30, 2022 and 2021, respectively. For the nine-month periods ended September 30, 2022 and 2021, interest income recognized for these types of leases was $117 million and $154 million.

Nonaccrual and Past Due Loans and Leases

The following table presents NALs by class at September 30, 2022 and December 31, 2021:

	September 30, 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	$	73	$	288	$	81	$	370
Commercial real estate	85		110		80		104
Lease financing	7		30		3		48
Residential mortgage	—		94		—		111
Automobile	—		4		—		3
Home equity	—		75		—		79
RV and marine	—		1		—		1
Total nonaccrual loans and leases	$	165	$	602	$	164	$	716

The following table presents an aging analysis of loans and leases, by class at September 30, 2022 and December 31, 2021:

	September 30, 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	$	92	$	49	$	117	$	258	$	43,886	$	—	$	44,144	$	29	(2)
Commercial real estate	24		4		32		60		16,396		—		16,456		—
Lease financing	57		45		21		123		4,970		—		5,093		18		(3)
Residential mortgage	196		65		203		464		21,171		181		21,816		153		(4)
Automobile	72		18		9		99		13,331		—		13,430		6
Home equity	47		21		61		129		10,310		1		10,440		12
RV and marine	12		4		2		18		5,418		—		5,436		2
Other consumer	13		3		3		19		1,313		—		1,332		3
Total loans and leases	$	513	$	209	$	448	$	1,170	$	116,795	$	182	$	118,147	$	223

	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 (SBA guaranteed) 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 September 30, 2022 and December 31, 2021 respectively:

	As of September 30, 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	$	13,212	$	7,720	$	3,808	$	2,328	$	1,228	$	1,314	$	11,998	$	4	$	41,612
OLEM	128		204		130		43		61		39		139		—		744
Substandard	227		199		194		244		155		277		491		—		1,787
Doubtful	—		—		—		—		—		1		—		—		1
Total Commercial and industrial	$	13,567	$	8,123	$	4,132	$	2,615	$	1,444	$	1,631	$	12,628	$	4	$	44,144
Commercial real estate
Credit Quality Indicator (1):
Pass	$	4,638	$	3,544	$	1,821	$	1,892	$	1,075	$	1,186	$	1,325	$	—	$	15,481
OLEM	44		26		4		11		12		39		—		—		136
Substandard	195		126		121		128		129		137		3		—		839
Total Commercial real estate	$	4,877	$	3,696	$	1,946	$	2,031	$	1,216	$	1,362	$	1,328	$	—	$	16,456
Lease financing
Credit Quality Indicator (1):
Pass	$	1,391	$	1,424	$	1,069	$	546	$	229	$	177	$	—	$	—	$	4,836
OLEM	25		14		32		6		7		4		—		—		88
Substandard	37		25		56		28		9		14		—		—		169
Total Lease financing	$	1,453	$	1,463	$	1,157	$	580	$	245	$	195	$	—	$	—	$	5,093
Residential mortgage
Credit Quality Indicator (2):
750+	$	2,993	$	6,251	$	3,611	$	864	$	485	$	2,165	$	—	$	—	$	16,369
650-749	1,260		1,308		670		235		146		814		—		—		4,433
<650	29		60		60		90		94		500		—		—		833
Total Residential mortgage	$	4,282	$	7,619	$	4,341	$	1,189	$	725	$	3,479	$	—	$	—	$	21,635
Automobile
Credit Quality Indicator (2):
750+	$	2,358	$	2,366	$	1,381	$	898	$	362	$	154	$	—	$	—	$	7,519
650-749	1,641		1,733		785		436		205		77		—		—		4,877
<650	231		364		186		128		79		46		—		—		1,034
Total Automobile	$	4,230	$	4,463	$	2,352	$	1,462	$	646	$	277	$	—	$	—	$	13,430
Home equity
Credit Quality Indicator (2):
750+	$	359	$	588	$	633	$	25	$	23	$	323	$	4,891	$	265	$	7,107
650-749	104		95		69		10		8		130		2,124		269		2,809
<650	2		3		3		2		2		55		324		132		523
Total Home equity	$	465	$	686	$	705	$	37	$	33	$	508	$	7,339	$	666	$	10,439
RV and marine
Credit Quality Indicator (2):
750+	$	1,059	$	1,070	$	764	$	379	$	373	$	465	$	—	$	—	$	4,110
650-749	247		335		213		126		122		180		—		—		1,223
<650	3		16		14		16		16		38		—		—		103
Total RV and marine	$	1,309	$	1,421	$	991	$	521	$	511	$	683	$	—	$	—	$	5,436
Other consumer
Credit Quality Indicator (2):
750+	$	202	$	71	$	39	$	40	$	15	$	55	$	360	$	3	$	785
650-749	57		34		14		18		4		16		330		18		491
<650	2		3		2		3		1		2		30		13		56
Total Other consumer	$	261	$	108	$	55	$	61	$	20	$	73	$	720	$	34	$	1,332

(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 and nine-month periods ended September 30, 2022 and 2021.

	New Troubled Debt Restructurings (1)
	Three Months Ended September 30, 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	81	$	39	$	22	$	—	$	13	$	74
Commercial real estate	7	5		10		—		—		15
Residential mortgage	184	—		25		1		—		26
Automobile	697	—		6		1		—		7
Home equity	54	—		1		—		—		1
RV and marine	31	—		1		1		—		2
Other consumer	38	—		—		—		—		—
Total new TDRs	1,092	$	44	$	65	$	3	$	13	$	125
	Three Months Ended September 30, 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	16	$	—	$	3	$	—	$	—	$	3
Commercial real estate	4	—		—		—		—		—
Residential mortgage	74	—		7		2		—		9
Automobile	498	—		3		1		—		4
Home equity	42	—		1		1		—		2
RV and marine	19	—		—		—		—		—
Other consumer	49	—		—		—		—		—
Total new TDRs	702	$	—	$	14	$	4	$	—	$	18

	New Troubled Debt Restructurings (1)
	Nine Months Ended September 30, 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	222	$	69	$	37	$	—	$	14	$	120
Commercial real estate	12	42		10		—		—		52
Residential mortgage	629	—		85		5		—		90
Automobile	1,791	—		13		2		—		15
Home equity	166	—		5		3		—		8
RV and marine finance	105	—		2		1		—		3
Other consumer	91	—		—		—		—		—
Total new TDRs	3,016	$	111	$	152	$	11	$	14	$	288
	Nine Months Ended September 30, 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	53	$	15	$	23	$	—	$	—	$	38
Commercial real estate	4	—		—		—		—		—
Residential mortgage	232	—		31		4		—		35
Automobile	1,914	—		13		3		—		16
Home equity	155	—		3		5		—		8
RV and marine finance	103	1		1		1		—		3
Other consumer	214	—		—		—		1		1
Total new TDRs	2,675	$	16	$	71	$	13	$	1	$	101

(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 September 30, 2022 and December 31, 2021, these borrowings and advances are secured by $70.1 billion and $61.1 billion, respectively, of loans.